Making Business Intelligence successful

In this report you will find the results of a three year study into the success factors of Business Intelligence and Performance management. The study was initiated to gain more insight into which factors actually determine the success (or otherwise) of these initiatives. In this clearly written report you will discover the secrets of success for Business Intelligence and Performance Management.

The "soft" factors are the most important

The initial analysis, looking at the first hundred questionnaires provided some surprises, suggesting that a performance related, analytic company culture could be an essential factor in providing better results with business intelligence. However at that stage the sample was too small to draw any reliable conclusions. Two years later with a sample of 389 large (more than 250 employees) organisations we can conclude with a high statistical reliability that the willingness to change aspects like behaviour and culture are indeed very important in achieving success.

Good technology and smart software are still necessary

It goes without saying that good technology and smart software are necessary to ensure that the data can be collected, processed, analysed and distributed efficiently and correctly. The technology however isn’t the factor that determines success or failure, just like the water in our human bodies. We consist of about 68% water, depending on age and sex. It is essential that we have sufficient water, just as organisations need to have modern technology to support their company’s processes. Water and technology in this context are essential. The problem is that just drinking water doesn’t lead to a successful career. Curiosity, perseverance and the ability to build a good network are more important; in short what we call the “soft factors”. We can buy as much technology as we like, and build bigger and bigger data warehouses, but that on its own won’t guarantee success: we need to combine both culture and technology to achieve success. 

Some of the results of the research

> Why is it so difficult to achieve outstanding results with BI
> The most successful companies are customer centric
> The added value is in the internal communication
> Public sector organisations have great difficulties with BI
> Balanced scorecard in itself does not improve performance
> Administrative procedures are an obstacle to BI success
> BI needs backing from the top to succeed!
> “Soft” factors are essential to achieving BI success
> Managers tend to panic if the dashboard turns red

Cooperation is important to achieve the results

Even though the cultural side is referred to as a "soft", culture is much more like concrete: inflexible and difficult to change. The challenge is inside your own organisation, ensuring that the people are the central factor in business intelligence. Large scale culture change within an organisation is often doomed to failure; some things just can't be achieved, like bending concrete. Sometimes we need to think big and start small, we need to persuade and coach small groups of managers and their staff to use the information ,insights and analysis that we can offer from business intelligence to improve what they are doing and provide the basis for innovation. This makes their work more interesting, and often simpler and more rewarding. This is what the management guru's call "Empowerment". That is the purpose of business intelligence, to improve the efficiency and effectivity of organisations, where people work together to achieve goals, and to let them see the value of their contribution.