Different research show that Business intelligence fails, in most cases. Only 3,4 percent of the public sector is successful in implementing BI (Pensioned 2006, 2007 & 2008). According to the Consultancy guide 2010, 70 percent of ECM-projects (Enterprise Content Management) fail.
Where does it go wrong?
BI is still seen as an IT solution, a technical solution, an extra service from the IT department. However BI is nothing more than a tool to analyze the company generated information. BI users should use the tool to generated knowledge out of the received information, and experience to create business rules.
The wrong attitude
Most consumers make the mistake of buying the TV with the most functionalities and make the buy unnecessary expensive and complex. A lot of functionalities are actually never used, while it takes a lot of time to get to know them. Research the possibilities and decide which product is the best according to your needs. Everything you have that you don`t need is not only pure waste, but it is deadweight that will slow you down. In the case of BI this means that the manager has to analyze the available products, and the company for a possible marriage between the two. According to Daan van Beek from advies- en onderzoeksbureau Pensioned, the large number of failing BI projects is the result of buying a product which doesn`t match the company culture. It doesn`t make sense to implement tools to monitor the performance with the intention of increasing it, while the culture disables the conversation on bad performance.
The wrong image
Like I said before, for most managers BI is a gadget which is ‘cool’ to have. The possibilities are exciting. However, due to the extreme focus on the gadget the soft side, the human side of the story is forgotten. According to Pensioned (2006, 2007 & 2008) only 21 percent of the BI implementation had a good success, and only 6,6 percent a excellent success. Van Beek argues that we don’t need to get discouraged, we know now how to succeed. We need to focus more on the human side of PB and PM (Performance Management).
http://www.computable.nl/artikel/ict_topics/business_intelligence/3708485/1277145/de-toegevoegde-waarde-van-een-bicc.html
http://www.computable.nl/artikel/ict_topics/business_intelligence/2838407/1277145/publieke-sector-kan-geen-bi-implementeren.html
http://www.computable.nl/artikel/ict_topics/business_intelligence/2838407/1277145/publieke-sector-kan-geen-bi-implementeren.html
maandag 21 maart 2011
zondag 13 maart 2011
Business intelligence in practice
In the past blog I`ve promised to give some examples of Business intelligence in practice. I`ve divided this into two parts. This week it’s time for some success stories. The next blog will be about the disasters that BI can create, have fun!
The water company case
Most people do not realize that there is a complex system behind our water tap that allows us to drink fresh clean water. The water company in Groningen is one of the companies that are responsible for this. The water company is using BI (Business intelligence) to optimize their information system. To optimize the water distribution The water company started to use OPIR (Optimale Productie door Intelligente Regeling). This system logs the water use and predicts the water demand to optimize the use of distribution facilities.
In most companies the information system evolves into different segments; each department has its own information system. This decentralization disturbs the optimal use of the company’s information. Selecting and combining or connecting information sources according to the business processes (after optimizing/adjusting the processes to the business intelligence strategy) creates an environment where processes are optimized for the maximum use of the company generated information. For example: the water company`s logging system is connected to an digital map of Groningen which shows all points of interests (the locations of logging systems, costumers, production pumps, distribution pumps, calamity systems, activities). This makes it possible to run simulation to optimize the calamity processes. The implementation of a photo-based ‘location definer’ (see photo) makes it possible to recognize the points of interests better and hereby optimize the reparation time.
The Tilburg case
Just like the water company case Tilburg had a decentralized information system which made it impossible to operate as intelligent as they do now. This new system made it possible to combine information systems so that fraud is made visible. For example, whole families were getting welfare, in most cases for generation long, due to the incomplete information this fraud could never had been detected. An employee said that the business processes became very transparent. Due to this it is easier to maintain the efficiency, because of the ease to spot bottlenecks in the processes.
Besides the information system the workflow is also improved. For example, the number of applications put through, number of successful applications, reaction- and transit time are monitored for improvement. When employees fail to achieve certain targets, the management can ask the employee for explanation. http://www.informationbuilders.nl/applications/pdf/Gemeente_Tilburg.pdf
Besides the information system the workflow is also improved. For example, the number of applications put through, number of successful applications, reaction- and transit time are monitored for improvement. When employees fail to achieve certain targets, the management can ask the employee for explanation. http://www.informationbuilders.nl/applications/pdf/Gemeente_Tilburg.pdf
The hospital case
Thanks to BI the complex processes and expensive resources are continue monitored. Because of this, the hospital can get the maximum use out of rooms, employees and recourses. http://www.informationbuilders.nl/new/2009/business-intelligence-award.html
The police case
BI made it possible to combine different information systems, which resulted in putting policemen in the right place at the right time to increase the effectiveness of the police force. This can only be achieved when information about policemen availability, status of known criminals, committed crimes per location, time of committed crimes, etc. are combined into one leading system. http://www.computable.nl/artikel/ict_topics/business_intelligence/3085127/1277145/prijs-voor-bi-bij-politie-amsterdam.html
vrijdag 4 maart 2011
From Twitter to Business intelligence
After the past blog, which was about using the Twitter tool the right way, I decided to pay a little attention to the subject that really interests me: Business Intelligence (BI). How can Twitter be related to BI? Well, it’s all about concentrating information, like concentrating light with a magnifying glass, to form an interesting source of power. Most think that BI is a (software)tool that can be used to get the maximum effectiveness out of company generated information. For some companies BI is just that, due to the limitations it has to really implement BI. However, more and more companies implement the BI ideology whereby the way of steering the organization changes, like changing a boat for a car.
What is BI concretely ? Every organization has information and generates information about sales, costumers, products, etc. BI is the ‘dashboard’ of the organization which presents the current status. It is comparable with the dashboard of a car; its shows current speed, engine temperature, oil level, fuel level, etc.
Imagine a car without a dashboard or with a dashboard which only show the fuel level of last week…As illogic as it sounds that is the way many companies operate, they have to wait for reports which are outdate as soon as they leave the printer. The somewhat smarter managers extract information from databases which are presented in excel sheets and base their decisions on ad-hoc information that isn`t thought-trough properly. This could easily lead to wrong decisions, due to the complexity of most situations. The answer is a BI information system combined with the BI way of steering the organization.
The gasoline of the company is its information system whereby people act as the engine. Still many companies concentrate on improving the engine, while the quality of the gasoline could make a difference between optimal performances and jamming the engine.
In the next blog I will try to give some examples of companies that have implemented BI..
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