BI Strategy
BI Strategy
Title: Business Intelligence strategy
Imen FARAH
Higher Institute of Technological Studies of Gabès, Tunisia.
[email protected]
Abstract:
A Business Intelligence Strategy is a roadmap that enables businesses to measure their
performance and seek out competitive advantages. The implementation of a strategy that
aligns BI with organizational goals, business strategy and investments has become a priority
and essential concern. In this chapter, we present the BI concepts, tools, and Applications, the
BI transformation road map to try discover the crucial questions to answer when aligning a BI
strategy to an organization’s overall direction. Finally we identify essential components of the
BI strategy.
Key words: Business Intelligence, Strategy, BI transformation road map, components of the
BI strategy
Content:
Business Intelligence (BI) is an umbrella term that mixes architectures, databases, analytical
tools, applications, and methodologies.
There is no uniform and accepted definition of BI, leading to each author mostly defining the
term individually; however the final understanding of the term and what it consists of remains
quite similar between the various definitions. Here are some examples:
The Data Warehousing Institute (TDWI 2002) working definition of business intelligence:
“The processes, technologies, and tools needed to turn data into information, information
into knowledge, and knowledge into plans that drive profitable business action. Business
intelligence encompasses data warehousing, business analytic tools and content/knowledge
management”
The term BI was coined by the Gartner Group within the mid-1990s. However, the concept is
way older; it’s its roots witin the MIS reporting systems of the 1970s. During that period,
reporting systems were static, two dimensional, and had no analytical capabilities. This
definition is broad. BI encompasses not only applications, but also technologies and
processes. It includes not only “getting data out” (through tools and applications), but also
getting “data in” (to a data mart or warehouse).
Another definition: “Business Intelligence is the science of analyzing business data wherever
it exists within your organization or elsewhere in order to understand what has happened in
the past, why it happened in the first place and what can be expected to happen in the future
and why that might happen differently given different behavior.”
“BI is neither a product nor a system. It is a generic concept that blends infrastructure
databases and applications. It lets business users access, analyze and manipulate data,
whether it’s financial, sales, marketing, operational/ production, HR-related” (Hart 2005).
Its major objective is to enable interactive access (sometimes in real time) to data, enable
manipulation of these data, and to produce business managers and analysts the ability to
conduct appropriate analysis.
It is, like Decision Support Systems (DSS), a content-free expression, so it means different
things to different people.
• BI uses a data warehouse, whereas DSS can use any data source (including a data
warehouse).
• Most DSS are built to support decision making directly, whereas most BI systems are
built to supply information that it’s is believed will result in improved decision
making.
• BI contains strategy/executive orientation whereas DSS are usually oriented toward
analysts.
• BI systems tend to be developed with commercially available tools, whereas DSS tend
to use more custom programming to handle problems which will be unstructured.
• DSS methodologies and tools originated largely in academia, whereas BI arose largely
from the software industry. Many BI tools, like data mining and predictive analysis,
have come to be considered DSS tools yet.
1.3 BI Applications
To stay competitive, businesses need accurate and actionable information on key business
metrics. An effective BI application dynamically combines information to measure
performance and enable rapid and appropriate action by decision makers. In addition, they
must offer significant value to manage progress towards goals.
Business intelligence applications used for decision making can be broken into three main
types of applications each differing in the level of detail they offer and the analytics they
provide.
2. BI Strategy
A strategy of Business Intelligence refers to all stages to be undertaken to implement Business
Intelligence in a firm. It goes to the point of diving into the process of BI, defining the
essential parties and the main actors, assessing situation, defining objectives and finding the
indicators of performance which will help to measure efforts to reach these targets. Strategy is
defined in terms of vision, organization, process, architecture and resolutions, then draw a
movement order based on valuation, preference and practicability.
Business intelligence implementation is not an easy task, as it requires a lot of preparation
work beforehand, gathers many different actors and will involve expenses. But the rewards
outperform by far its costs. The costs of not implementing it are more damaging especially in
the long-term.
It's a challenge to design a successful BI business by selecting the right mix of people,
process, and technology. To overcome this challenge, we need to build an effective BI
strategy, which is guided by business goals, empowers stakeholders to have better decision-
making capabilities, and helps the business achieve desired goals. A good BI strategy should
ensure that company goals, business strategy, investments and BI are aligned. Businesses that
can link BI to overall business goals become smart businesses.
It requires a mindful approach, a mix of enterprise resources to provide a comprehensive,
consistent, and reliable source of information to fulfill the promise of BI. A BI initiative is of
no use if it is not driven by business goals. Implementing a BI solution should help the
business achieve its goal of moving the business forward with the best use of information. It
sounds easy, but in very few places this goal is achieved. Make sure that business
requirements and company goals drive the iterations. You need to strategize before
incorporating technology or techniques into the conversation.
The scope of BI should include the optimal use of information for strategic, tactical and
operational needs. The goal in developing the BI strategy is to help companies plan for the
long term, help middle management with tactical reporting, and help operations make day-to-
day decisions. to run the business effectively. BI is about giving people the information they
need to do their jobs more efficiently. A wide range of BI services must be provided to meet a
wide range of requirements. The scope of the BI strategy should be determined by the drivers
and business goals. Scope should always consider changing business requirements to keep BI
strategy aligned with the business.
The BI strategy should include a set of processes, technologies for collecting, integrating,
accessing and analyzing information in order to help the company make better business
decisions. BI solutions must allow users to quickly adapt to new business requirements and
changing information sources. Overall, BI visions should be planned out before implementing
any iteration. Establishing a BI vision is vital to ensure that the implementation of specific
components fits into the overall BI strategy. The BI strategy should articulate and document
the needs identified by stakeholders, highlighting how BI fits into the larger business vision.
The BI strategy must consider the right framework, methodology, processes, governance,
systems and technology to deliver value that aligns with business goals and priorities.
3. BI Transformation plan
Babies don't become grownups overnight. Enterprises won't move from to transformative
overnight either. This is strategy driven process.
A full assessment of processes, technology, and people in the current state should be done, as
they will be critical to the success of any changes to the current environment.
current information systems, technology, governance processes and procedures should be
documented. We detail how the organization currently uses BI, which should include a full
inventory of all platforms, technologies, and tools used to develop and deliver BI content.
The current state must include current users, user profiles and how users use information. It
should document current processes, information management structures.
These elements will help determine the viability of the options based on the overall business
objectives.
BI plans should be reviewed and evaluated to verify their consistency with predefined
objectives.
After the evaluation, a long-term program should be established by following the following
steps:
- The target state should reflect the vision to combine BI with the areas of business process
management, performance improvement, customer service, knowledge management, cross-
functional information exchange, etc. .
- Long-term business needs should allow the work of BI strategy to be broken down into
several phased projects.
- Prioritization of BI objectives to better understand how the BI environment will take shape
as you progress.
- Projects should be evaluated for their overall contribution to the BI strategy by determining
how a particular project helps move towards the BI strategy.
The biggest challenges in BI development are data issues. Analyzing the current and future
state of data helps build a transformation plan to bridge the gap between the current and future
state. The transformation plan establishes the guidelines necessary for the construction of the
proposed BI structures and associated technologies.
According to Pant (2009) a transformation plan needs to include actionable steps to move
from current state to a future state:
Transformation
Limited or no-data governance Effective data governance
Data in silos resulting in multiple BI initiatives align with the overall
unsynchronized reporting solutions enterprise goals
Each BI system has own set of BI adoption empowers all in the
governance and standards enterprise with better decision-making
abilities
Business collects data from multiple Standardized enterprise-wide BI/DW
systems and spends a lot of time in methodologies and tools
data processing
Lack of collaborative BI Data quality issues addressed in
environment holistic manner
transformation plan can start with a high-level
perspective, with details added to the plan as you progress. To move from the current state to
the desired future state, plans must include achievable steps, that is, it must define a set of
projects to be undertaken, establish governance and processes, define the 'conceptual, logical
and physical architecture, establish the main lines of the infrastructure, develop information
provision projects and integrate needs. When designing the transformation roadmap, you must
take into account the information needs of the users, how the users want to receive and
consume the information.
The transformation plan must take into account capacity, performance, data quality, data
security, metadata control, data retention policies, etc. The transformation plan should also
take into account the BI implementation schedule, the prioritization of individual BI projects,
and the availability of resources for BI-centric projects. A general policy describes the
transformation roadmap which helps define the details. For example, high-level decisions
made on data retention will impact data architecture such as data partitioning, as well as
technical architecture such as disk storage.
the transformation plan describe also high-level process issues, such as refresh rates, capacity
plan, backup, recovery, archive, workflow, and security. Topics should include criteria for
enterprise adherence and approval, criteria and plan for test data selection, capacity planning,
scalability of the BI solutions, high-level testing plans and overview of unit, integration,
performance, and user testing
These components should run in sync with the processes of the intelligent
organization:
Conclusion
BI is not a system that can be implemented quickly; difficulties may be encountered when
implementing BI. To meet the specific needs of each organization
and for the implementation to be successful, it is important to align BI
with internal business processes and organizational culture
It must be personalized.
According to Pant (2009), the following are critical in developing a successful a BI strategy:
• Create a business case and outline the expected benefits
• Have an enterprise-wide perspective and obtain buy in from stakeholders, especially
the senior executives
• Establish criteria for success
• Set up change management procedures and Adopt best practices and standards
• Treat information as an asset and align BI strategy with the overall IT strategy and
enterprise goals
• Do a current state, future state, and gap analysis
• Think actionable and baby steps, and Use iterative implementation approach with
parallel tracks
• Establish governance body and Assess BI readiness of the organization and identify
related gaps and issues
• Work with frameworks, adopt proven methodologies, and consider all BI components
• Document and analyze the constraints and assumptions
BI strategy should be designed to be agile and adaptive which can be continuously refined to
meet business goals. The BI strategy should focus on communicating what you plan to build,
how you plan to build it, and when users can expect their requirements to be met. It should
start with general policy statements, general guidelines and high level diagrams. As the BI
environment matures, the formal documentation and depth of detail identi fi ed in the BI
strategy will evolve. Plan to continually evaluate and reinvent BI based on changing business
needs. Consider current trends in BI as well as the emerging wave of forward-looking
approaches to build the successful BI strategy.