10 Business Intelligence Pitfalls to Avoid in the New Decade - Slide 7

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Indeed, BI is such a powerful tool that organizations are often simply overwhelmed by its potential. Like a child in a sweet shop, the temptation is sometimes to gorge on everything available. Try to concentrate on what’s relevant and useful rather than just measuring, recording and disseminating data for the sake of it, and remember not to lose sight of your objectives: The intention is to distill your raw data into meaningful, actionable information, not to create even more.

So keep it simple, and spend time choosing the right KPIs for your business, rather than simply tracking all available metrics. In a 2009 report on BI and performance management by analysts The Aberdeen Group, the authors claimed, “Businesses thrive or fail based on the effectiveness of their KPIs. Executives are increasingly feeling the pressure to establish the right metrics across all areas of their business [and] top performing companies are more than twice as likely to incorporate a review process into their KPI strategy.”

Business intelligence (BI) emerged 20 years ago as a tool for aiding decision-making. Originally seen as the preserve of analysts and board-level executives, it has slowly evolved into a more democratic medium as organizations have come to realize that decision-makers at all levels and in all departments need access to timely, relevant information. Today, a strong move toward the “consumerization” of BI is evident. Users are demanding the same speed and ease-of-use from their workplace software as ubiquitous tools like Google have delivered in their personal life.

In short, a new breed of BI tools is eschewing cumbersome, complex technology and instead focusing on making the process as intuitive and rewarding as possible. This latest wave of BI – BI 2.0 – is serving a generation of technologically savvy, information-hungry users. Characterized by pioneering features like in-memory and associative analysis, powerful BI 2.0 tools are making a more “self-service” approach to reporting and analysis possible. With them, non-technical users can combine previously disconnected information for a complete view and analysis on the fly – without help from the IT department.

So, BI software should be offering all the answers. But because many companies are still persevering with outdated BI 1.0 technologies, only 13 percent of UK companies polled in 2009 by NCC reported complete satisfaction with their BI projects. In fact, despite spending more than $7 billion on it in a year (IDC), businesses globally are in a worse shape than ever.

According to IDC, “the challenges that BI implementations present mean that many organizations still struggle to deploy BI pervasively”. QlikTech has identified 10 common pitfalls associated with BI 1.0 that prevent organizations from getting full value from their BI investments.

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Related Topics : Business Intelligence Vendors, Data Quality, Data Warehousing, Key Performance Indicators, Knowledge Management

 
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