Course Name: Business Intelligence
Year
: 2009
Business Intelligence Readiness
3rd - 4th Meeting
Source of this Material
(1).
Williams, Steve & Williams, Nancy (2007). The Profit
Impact of Business Intelligence. Chapter 3
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BI Readiness Overview
Using BI opportunity analysis and
the BI opportunity map
fundamentally changes the front
end analysis for BI and DW by
adding rigor to determination of how
the BI investment or investment are
going increase company’s profit.
Figure 3-1 shows the factors
correlated with an organization’s
ability to leverage BI to improve
business performance and deliver
business value.
BI readiness assessment can thus
be seen as a BI risk analysis tool
and as an implementation tool that,
with a modest investment of effort,
can greatly enhance the probability
of a strong payoff for a BI
investment.
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Figure 3-1
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BI Readiness, Business Risk, and Traditional
Development Methods
BI Readiness assessment is a tool designed to help overcome the limitations of
traditional development methods.
Business risk associated with BI investments is important.
Traditional development approaches, which make the leap of faith that the
combination of sponsor support, subject matter expert involvement and sound
technical and management methods.
• Manufacturing Company Example
Company A is a manufacturer of consumer and industrial products. Its consumer
product group had deployed a data mart with an online analytical processing (OLAP)
application used for managing revenue an profit. Its industrial products group
determined that a similar BI application would allow it to do a better job o managing
revenue and profits. The group used a traditional development method to design,
develop, and deploy the BI application. Although the BI application was ultimately
successful, there were several bumps in the road that the company could have
avoided via a comprehensive BI readiness assessment.
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BI Readiness, Business Risk, and Traditional
Development Methods (cont..)
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•
Continuous Process Improvement
The Culture Around Use of Information and Analytical Applications
The Culture Around Decision Making
The Business/IT Partnership Was Less than Ideal
Disability Insurance Company Example
Company B needs to optimize claims processing productivity and improve service
delivery. The company has embarked on a BI program aimed at providing all levels of
operations management with more timely and relevant business information. It has
funded a major project to ensure that it captures the business value of its investments
in BI. In terms of BI readiness,
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The Company Funded a Comprehensive Project to Ensure Strategic Alignment
The Company has a Record of Continuous Process Improvement
The Company Recognizes that it Will Have to Change The Culture
The Company Formally Assessed its BI and DW Technical Readiness
The Company Employs Effective IT Governance Mechanism that Promote an Effective
Business/IT partnership.
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BI Readiness Factors
•
Strategic Alignment
Consistency among business strategy, business organization and processes, IT
Strategy, IT Infrastructure, and IT Organization and processes.
•
Continuous Process Improvement Culture
Organizations that have created successful process improvement cultures are adept
at changing business processes, which prepares them to leverage BI effectively
within processes that have an economic impact.
•
Culture Around the Use of Information and Analytical Applications
Organizations that embrace the use of information and analytical application to
improve profits are better able to leverage investment in BI than are organizations
that do not embrace and reward such approaches to creating business value.
•
Business Intelligence Portfolio Management
BI applications can improve the performance of the units within a given company,
including some applications that help drive revenue growth and others that help
reduce costs and optimized profits.
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BI Readiness Factors (cont…)
Figure 3-2
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BI Readiness Factors (cont…)
•
Decision Process Engineering Culture
Structured decision processes can incorporate the use of information, analytical
applications, and/or quantitative methods as appropriate for type of decision to be
made.
•
Business Intelligence and Data Warehousing Technical Readiness
By indentifying technical risks up front, you can devise and execute appropriate plans
to mitigate them. Accordingly, an effective BI readiness assessment should assess BI
and DW technical readiness.
•
Effective Business/Information Technology Partnership for BI
Organizations that have been effective in using IT to improve business results are
more able to leverage BI to create value than are those whose practices do not
create effective business/IT partnerships.
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Case Study: BYTECO BI Readiness Assessment
BYTECO is a multi-billion-dollar global manufacturer and marketer of
semiconductor devices. Its products are key components used in a broad array
of electronic application, including personal computers, workstations, network
servers, mobile phones, flash memory cards, USB storage devices, digital still
cameras, MP3 players, and other consumer electronics product. BYTECO sells
its products into computing, consumer, networking, telecommunications, and
imaging markets. Approximately 45% of its net sales for 2005 were to the
computing markets, including desktop personal computers, notebooks, servers,
and workstations. The company markets its products primarily through its own
direct sales force and it maintains inventory at locations in close proximity to
certain key customers to facilitate rapid delivery of product shipments.
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The BI Readiness Assessment (BYTECO)
A BI readiness assessment can be a
good way to educate senior-level
business management about the critical
success factors needed for BI success
and to obtain their support for the
changes that are needed to improve the
odds of success.
The BI readiness assessment survey
that use contains 100 questions grouped
and scored across the seven BI
readiness factors. Assessment
participants are asked to respond to
various statements on a scare from 1 to
5, where 5 means “strongly agree,” 3
means “neutral,” and 1 means “strongly
disagree.” Figure 3-3 shown the results
of BYTECO assessment.
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Figure 3-3
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The BI Readiness Assessment BYTECO (cont…)
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•
•
The results at BYTECO indicated that there were BI readiness challenges
across the board. With a few slight exceptions, all groups were neutral to
slightly negative in their assessments of BYTECO’s BI readiness on the
seven BI readiness factors.
In general, respondents felt that BYTECO was the least ready in the areas
of partnership between business and IT, BI and DW technical readiness,
and managing BI as a portfolio.
Based on the results of the BI readiness assessment and other supporting
analyses, BYTECO developed a comprehensive program plan to move its
BI initiatives forward and manage its risks. Specially, BYTECO addressed
strategic alignment by elevating the importance of BI within BYTECO and
by changing from small, report focused projects to looking at BI as a multiyear program, or BI portfolio.
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“…Successful organizations can be distinguished by their ability to leverage IT capabilities to
transform their business (structures, processes, and roles) to obtain powerful sources of competitive
advantage in the marketplace.’”
-John Henderson and N. Venkatraman, Center for Information Systems Research, Sloan School
of Management, Massachusetts Institute of Technology, November 1990.
End of Slide
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