Over the past few decades rapid technological development has transformed the way organisations communicate information and carry out business processes. Computer systems have now replaced most manual operations, greatly speeding up business transactions, while the advent of email and the internet has generated an expectation of quick communication and instant access to information.
Modern organisations have vast amounts of data passing though their computer systems as they conduct business. Complex global supply networks, frequent regulatory change, increased mergers & acquisitions and ever changing customer preferences mean that the amount of data that needs to be considered in making business decisions increases each year. The sheer volume of this data can render it useless to a business unless it is presented in an understandable format and properly analysed. Business Intelligence (BI) tools are finally emerging that can put useful data at everyone’s fingertips, from the warehouse to the Chief Executive’s office.
What is Business Intelligence?
The term ‘business intelligence’ has come into mainstream use as organisations increasingly regard information as a key corporate asset. Business intelligence can be defined as any operational data that a business creates which could give it a strategic insight into where it is performing well and where performance could be improved. With proper analysis, sales and inventory data, for example, can provide winning insights into the current supply and demand climate.
Despite the mass of data that all organisations generate, many decision-makers do not have the information that they need to drive the company forward, sometimes making key decisions based on an incomplete or out-dated view of business performance. Many businesses feel that they have too much data and not enough information. Only once data is gathered and presented in such a way that it provides an insight can it truly be considered information.
Business intelligence software tools can go a long way towards helping decision-makers within an organisation formulate effective corporate strategy by providing information through gathering, analysing and presenting data.
How does a BI tool work?
BI tools use quantifiable measurements, such as key performance indicators (KPIs), which reflect the critical success factors of a particular organisation. For example, a manufacturing company may wish to monitor how often machines are running at full capacity, what percentage of products were produced correctly the first time, how often batches are delivered on-time etc. Such metric indicators are put in place at all levels to monitor how an organisation’s business units are performing. Information is gathered frequently and compiled into a format that can be easily reviewed.
BI tools can also create a centralised access point for document sharing and allow automated workflow management, enhancing communication and collaboration throughout an enterprise.
Decisions based on insights, not guesses…
Understanding how your organisation is performing is fundamental in enhancing current and future business success, gaining a competitive advantage and increasing profit. Leading organisations are investing in business intelligence systems that will enable them to effectively manage data, gain crucial predictive insights and drive business performance.
The problem for many small to medium sized businesses is that they are unclear as to what benefits they can expect from a BI tool and what they ought to be demanding from their IT investment. A properly integrated BI tool will reveal previously hidden inefficiencies, enable a more rational use of resources and provide a real-time overview of your company so that operations can be modified in accordance with business requirements.
But effective business performance management is not the only reason for implementing business intelligence; a good BI tool also helps provide a solid foundation for long and short term planning and allows for enhanced collaboration across an organisation.
What to look for in a good BI tool
It is important to find the right IT solution for your business. There are now several software applications available specifically designed to aid organisations in successfully harnessing their valuable corporate data. John Moses has condensed his experience as head of Syscom PLC into seven key aspects that businesses should look for in selecting their BI tool:
1. Select software that provides real-time analysis so that you can make business decisions based on up-to-date, accurate information.
“The business environment is fast-paced and constantly changing. Today’s high-speed business makes it crucial for organisations to adapt quickly to changing circumstances if they are to remain competitive. Having the right information at the right time is essential to making the right decisions to drive the business forward.
"Document management and collaboration systems that integrate with an Enterprise Resource Planning ERP system allow you to measure the performance of all business units and get a comprehensive, real-time view of your organisation. “For example, the integration of Microsoft Office SharePoint Server 2007 with Microsoft Dynamics GP allows for up-to-the-minute insight into customer behaviour and operational efficiency as well as helping you to monitor everything from production rates to sales performance.”
2. Choose functionality that enhances collaboration. Some software can help different areas of an organisation work together more effectively.
“Functions such as workflow management, for example, can help ensure that the right people complete their respective tasks in the appropriate sequence. Users can be assigned to a particular workflow, each of whom will be notified once the previous user has completed work on the item. What workflows are currently running, their progress and their associations can be made visible to selected staff throughout an organisation, enabling more effective decision making at all levels and allowing for a significant increase in collaboration.”
3. Make life easier for yourself. Choose software that will be easy to use, will be quickly taken up by staff and that you won’t have to replace in a few years time.
“Our customers like the Microsoft product suite because they have a familiar, logical interface and integrate with everyday tools such as Outlook and Excel. Not only is up-take usually quick, new staff only need minimal training to be able to use the system. And, of course, with the billions that Microsoft spend on research and development, customers know that they are investing in a system that will always be supported and updated.”
4. Opt for a system that will help you to meet the demands of regulatory compliance.
“Demands for corporate accountability and ever increasing regulatory controls require organisations to commit significant resources to compiling and auditing figures. Installing a product like SharePoint which enforces compliance unobtrusively and allows you to create custom auditing reports helps lighten the documentation burden.”
5. Demand clear and convenient reporting – If a BI tool is to contribute to informed decision making it needs to make data available in a useful format, whether that be a report, email or graphical analysis.
"It is imperative that a BI tool offers visually based summaries of corporate data to provide at-a-glance understanding of business conditions and that reports are available on both a scheduled and ad hoc basis. Your BI tool should also make this information easy to find – we all know how frustrating it is to waste time looking for information.”
6. Look for web-based tools.
"Modern tools support intranet, extranet and web applications across an enterprise within a single, integrated platform. These applications draw together information from disparate sources and provide a centralised reports centre where users access a single, shared location to find the latest spreadsheets, KPIs and reports. Such easy, enterprise-wide access to people, documents and information is vital in enabling effective communication.”
7. Keep your data safe.
“Make sure you have mechanisms in place to safe-guard your valuable business data. Choose an application that enables you to keep documents secure by automatically tracking content changes and allowing you to create unique document management policies to control user access rights at a per-item level.
“Armed with the proper tools, businesses can gain the insights that they need to make sound decisions and drive their business forward. The good news is for many businesses it's just a short step from currently used practices to an effective, integrated business intelligence and document management system.
"One thing’s for sure, BI is set to stay at the top of IT Managers’ shopping lists, no longer the afterthought it once was when considering the market for an ERP solution. Work smart and harness the power of business intelligence for your company.”
