22nd Feb, 2019
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Since the business landscape is changing at a rapid pace, there is a need of new age Business Intelligence solutions that are faster, more accurate and reliable to deliver the insights that enable better customer engagement and retention strategy. Let us look at some of the critical business dynamics that are being impacted by a successful BI implementation.
How does Business Intelligence tools help in making critical business decisions? What is the current state of BI implementation across the industry?
Big data has been the founding stone of emergence of new technologies which in turn has been the harbinger of great opportunities for businesses.
Business Intelligence (BI) tools help in deriving valuable and actionable insights from a huge pile of available data right from internal operational processes to the entire industrial landscape in a structured format. With the help of Data Analytics, it further renders real-world intelligence enabling informed and swift decision-making.
Importance of BI has been recognized by industries globally with Gartner also predicting the growth of BI market to hit US$22.8 Billion by 2020. That said, there are not many examples of effective BI implementation.
Clearly, there exists some roadblocks as is evident by its low adoption rate and one of the main challenges can be due to poor cost-benefit analysis of BI adoption.
Does BI implementation follow a standard process? What is the cost involved in the implementation process?
At micro-level, BI implementation process varies basis the function and sector involved, however taking a macro-view we can look at the following steps:
- Firstly, arrange for data consolidation from different resources. Also known as data engineering, it is considered to be the most crucial and ground-laying task of the entire implementation process and requires much skill and therefore the demand of Data Engineers!
- The second step is about data visualization. Much of it is dependent on the selection of the right platform and the correct judgment in regards to the data structure selection. This necessitates human ‘expertise’ that plays a decisive role here.
- Thirdly, the description of visualization where human discretion holds a critical role.
- In the end, it is the Analytics application stage which is further followed by a Machine Learning (ML) application.
Quite evidently, every step requires human expertise and by virtue of this there is a cost involved on account of:
- Human errors
- Lost opportunities, given the delay in human expertise
However, comparing the relative costs of drawback on account of ‘human element’ vis-à-vis benefits of adopting BI solution, viz: better data quality, much impactful visualization, and insightful narratives along with intelligent analytics aiding informed decisions – BI wins undoubtedly.
What are the elements that should be considered for a substantial cost-benefit analysis?
We agree that BI cost analysis helps in gauging its business and operational needs thereby anticipating an organization’s roadblocks in future. It helps in identifying the right product, estimating its operational fit, final implementation, and the required resource training.
Typically, there are three aspects, which should be taken into consideration in BI implementation process.
A detailed cost-benefit analysis should consider the amount of data that will be generated down the line and invest in a platform accordingly.
here is no doubt that significant manpower will be required in the initial stages of implementation. However given that most modern BI tools are significantly automated, requirement of manpower shall only decline in the long run.
A BI platform should be able to seamlessly integrate with existing business processes without involving much or minimal cost. It is only then BI implementation can be claimed to have been done in the right manner.
Elaborate on the impact of successful BI adoption on business?
Understanding the impact of BI adoption helps in analysing its worth and also strengthens the understanding of BI implementation.
- Every business decision requires actionable market intelligence – BI provides that intelligence thereby improving decision making.
- BI helps in optimizing business processes – permitting stakeholders to observe and analyze data in real-time.
- BI delivers operational insights – making the processes efficient.
- BI is instrumental in mapping competition and industry landscape – helping stakeholders to identify and foresee industry trends.
- BI drive quick and data-driven solutions -assisting in reducing business challenges
- Last but not least, BI makes compliance management more competent.
No doubt that above-mentioned benefits are crucial for business success. So, the question no longer pertains to ‘if’ BI implementation is important? It is the detailed cost-benefit analysis encompassing impact on operational cost and if it is sustainable in the long run that requires most attention while undertaking BI implementation.