By: Dr. Tony Taylor, DM/IST, MBA, MCM, PMP, CSM, SA, Data Regulation Manager, The INS Companies
Business intelligence (“BI”) is software that ingests business data and presents it in user-friendly views such as reports, dashboards, charts, and graphs(1). BI tools enable business users to access different types of data – historical and current, third-party and in-house, as well as semi-structured data like social media. Users can analyze this information to gain insights into how the business is performing. BI works by collecting and transforming data from multiple sources (2). The transformed data uncovers trends and inconsistencies, and findings are presented using data visualization. The BI tool allows an organization to act on insights in real time, and it aggregates structured and unstructured data from multiple sources.
BI increases the visibility of business operations (3). It also offers insights that are actionable, enhances efficiency, and allows real-time access to data. BI supports marketing efforts and provides competitive advantages. It expands reporting capabilities, reveals trends in the market and increases revenue. In addition, BI augments the understanding of customers by offering an organization the ability to analyze patterns in customer behavior. BI users can create robust customer profiles and personas, segment customers and provide real-time customer feedback. The BI user can also evaluate product purchases and timing, offer custom discounts, and more.
BI is preferred over other methods. BI reduces the number of times a company will lose a customer, lose revenue or deal with inaccurate information or slow processes (4). BI is essential in gaining a competitive edge by allowing organizations to make faster and more accurate decisions by leveraging the existing data at the right time, and improve decision making.
Planning for a BI implementation is fundamental for success. Assembling a leadership team and executive sponsor is a vital initial step in planning to gather the support for the BI initiative (5). Additionally, objectives for the BI approach must be established with the key stakeholders. Planning efforts will also include assessment of the existing data infrastructure and availability and selection of the BI solution. The plan for execution of the BI strategy must be created, training must be delivered and the BI solution must be launched and then measured for effectiveness.
Choosing the BI tool that will be the best fit for analytics use in the organization is essential. Best practices for BI tool selection include evaluating the existing data stack, performing a proof of concept with a thorough evaluation of the BI tool, reviewing the platform growth of the tool and considering the intangibles during the evaluation (such as licensing and training) (6). The BI tool selection decision process may be assisted by consulting online reviews of preferred BI tools where BI tool capabilities are assessed and a broad representation of products are included, segmented, and scored based on their effectiveness. For example, one online BI tool review performed an evaluation of 879 products and segmented the BI tools based on advanced analytics, augmented analytics, as well as dashboarding and data visualization (7). Further areas of evaluation included data querying, embedded analytics, geospatial visualizations and analysis, Internet of Things (“IoT”) analytics, mobile BI, data sources connectivity, security, as well as overall functionality.
Measuring the success of the BI system implementation is crucial. At a minimum, the following must be attained in an effective BI solution implementation: insights are able to be found by employees quickly; employees are able to move easily between aggregate data and the underlying granular data; the data is accurate and trustworthy; the solution includes the right data that is broad enough in scope to provide a full picture; and the solution allows employees to visualize the data and communicate their insights effectively to others (8).
Organization leaders and practitioners are encouraged to prioritize the considerations of the success drivers and the inhibitors impacting a BI system initiative during the decision-making process to enhance the opportunity to realize the expected business outcomes (9). Some success drivers include: a clear understanding of the intentions and goals of the BI initiative, expertise to deliver the BI initiative, and the identification of champions and involvement from the business. To overcome the inhibitors, it is recommended to: confirm the data meaning and prioritize the quality of the data (as it is essential to ensure understanding is obtained and quality is achieved); confirm differentiation exists against competitors through an awareness of market offerings; confirm a complete deployment of the BI system initiative occurs to maximize value; and confirm understanding regarding the investment required versus the return on investment (“ROI”).
Notes
[4] See Advantages of Business Intelligence Tools [10 Insightful Points] (splashbi.com).
[6] See BI Tool Comparison to Choose the Best Analytics Tools Fit. January 18, 2024. https://www.analytics8.com.
[8] See Measuring the ROI of Business Intelligence (csgsolutions.com).
[9] See Taylor, A. J. (2019). Business Excellence and Intelligence in a Global Entertainment Company: An Exploratory Case Study (Order No. 22622726). Available from ProQuest Dissertations & Theses Global. (2309522452). https://www.proquest.com/dissertations-theses/business-excellence-intelligence-global/docview/2309522452/se-2
Dr. Tony Taylor serves as Data Regulation Manager with The INS Companies and possesses over 30 years of experience in the Information Technology industry. He earned an Associate’s degree in Computer Science (ACS); a Bachelor’s degree in Management/Computer Information Systems (BSM/CIS) and Departmental Honors in Computer Science with Summa Cum Laude distinction; a Master’s degree in Business Administration (MBA); and a Doctor of Management degree with an emphasis in Information Systems Technology (DM/IST). Dr. Taylor is a published author in the IT industry, and he is an experienced conference speaker. He is a member of the following organizations: Insurance Regulatory Examiners Society (IRES), Society of Financial Examiners (SOFE), Information Systems Audit and Control Association (ISACA), Delta Mu Delta Business Honor Society, National Society of Leadership and Success (NSLS), Project Management Institute (PMI®), Scrum Alliance®, and the Scaled Agile Framework (SAFe®) community. Dr. Taylor possesses the following certifications: Market Conduct Management (MCM®), Project Management Professional (PMP®), Certified Scrum Master (CSM®), and Certified SAFe® Agilist (SA®). He has taught over 300 combined online and in-person university courses in technology, leadership, and project management at the undergraduate and graduate levels and he is a Certified Advanced Facilitator with the university’s College of Business and Technology.
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