Dashboards, Reporting & Business Intelligence

While the need for business intelligence is widely recognized, the use and implementation thereof can often be confusing, or misunderstood.

Most business intelligence initiatives start with the purpose of delivering the right information at the right time. This gives the correct priority to timeliness and accuracy of information, but does not indicate where said information should go. Though a real time BI software solution may deliver up to date information via dashboards or traditional reports, it may not be enough for employees who barely have time to log into their laptops when off visiting major customers. For such people, this information is not “real time” in the truest sense unless it is also readily accessible at the right place.

Another myth about business intelligence is that it provides analytical reporting while core transactional applications supply operational information. In actuality, a standard business intelligence software solution must meet both informational needs equally. Because information from both of these areas satisfies a diverse set of requirements, the most important ingredient for successful business intelligence implementation is getting the various parts of the organization properly aligned. It is critical that business analysts, in the early stages of implementation, interview all key stakeholders and document and reconcile critical business requirements from operational experts, analytical experts, line management, and staff management at multiple levels of the organization. Failure to understand internal customer requirements is one of the top reasons for failed business intelligence implementations.

Once requirements have been elicited and rationalized with each other, the proposed solution must be vetted with all stakeholders to ensure correctness and, even more importantly, drive buy-in so that all stakeholders will support and work towards a successful implementation rather than ignoring or, worse, actively resisting it. Once the initial requirements phase is complete, the next important step in an implementation is architecting a proposed solution and then piloting the solution on a small scale with key users to reduce any risks and prove out the implementation. During this phase, training plans can be created. A strategy for rolling out the implementation incrementally can be initiated and kinks in the implementation can be worked out.

Post-implementation, it is advisable to follow up with users to reinforce training and ensure that the full benefits of the business intelligence software solution are being realized. Any deferred features or capabilities can be addressed in the form of a small post-implementation revision project which takes an evolutionary approach towards continually improving the solution

With open source BI, users have access to the source code for the business intelligence software that they use. This gives them the ability to make changes and add applications in a way that they wouldn’t be able to with an out of the box platform. Commercial software does not give its users access to the original source code, nor does it give them any right to change or make modifications to the product. Users of commercial business intelligence must wait until the provider releases a new version of the platform or a new application to get added functionality for their system. With open source, users are able to make modifications to the code as needed as long as they adhere to the restrictions dictated by the license that governs the original code.

What is Open Source Code?

Open source code is software that has been written by a person or a company and copyrighted, but is also licensed to include a large user population, who is able to make changes and fix bugs in the code. As users need different applications from their open source software, they can change it to fit their demands without facing the repercussions of copyright infringement. There are a couple of different licenses that designate code as open source and users must adhere to the guidelines put forth by these licenses in order to use and modify the software.

Open Source Licenses

There is a variety of licenses that have been approved by the Open Source Initiative or OSI. Two common licenses are the Berkeley License and the GNU General Public License (GPL). The Berkeley License allows users to take the source code and make changes to it before releasing it again under a separate propriety license. With the Berkeley License, the original creators of the code would have to be acknowledged publicly when the new software is released. With GPL, if derivative software is created using the original code, it has to be made available as a GPL product, allowing other users access to the new code and allowing other users to modify it for their needs.

Freeware vs. Open Source

Open source is different from freeware, in that the actual code is made available to users, not just the software. Freeware is software that you can download for free for a trial period or permanently, but has to be used as is without any modifications. There is some very reliable freeware that can be downloaded permanently, but freeware is also used by commercial software providers to entice buyers to buy their product after the trial period is up.

Because they have ability to make changes to the code in open source, users can customize their business intelligence software to best serve their company. Users also have access, the majority of the time, to upgrades and applications that other users have developed, in addition to any bug fixes. This means that there is no waiting on the parent company to come out with an upgrade or develop add-ons.

For both software users and software creators, the advent of open source business intelligence has created much controversy. Since 1998, when the Open Source Initiative was formed, a steadily increasing wave of commercial and non-commercial licensed software has been developed and distributed over the internet. Currently, in the realm of open source BI software, over 60% of companies and governments are active users, with these numbers steadily rising. But even with such statistics, some potential users still prefer closed source software to its open source competition. On the other hand, some new software creators also prefer the world of closed source applications, with little interest in developing software for open source business intelligence.

For these closed source minded software users and creators, there are a few common misconceptions about open source software that should be examined more closely.

Concerns about Open Source Software

In the case of business intelligence, potential users may worry about the safety and security of software that is free for download over the internet. Would valuable and potentially damaging business intelligence information really be safely filtered through free software? Also, such potential users may also be worried about bugs within the open source software, or even a “back door” for the software creator to access the user’s information.

For software creators looking to tackle business intelligence, the open source software model may look like a worthless investment of time and expertise. Why would anybody make business intelligence software available as a completely free download? How would a software creator make any money if the source of his or her labor is freely distributed to anybody who owns a computer?

The Truth about Open Source Software

For those users worried about the safety capabilities of open source business intelligence software, they can rest easy. Since its inception, the creation of open source software has been targeted towards benefitting users, not scamming them. Also, there can be no such thing as a “back door” in open source software, because all of the software’s coding is fully available for everybody to see. If large companies and corporations are using open source business intelligence software, you can be sure that it is a safe and reliable alternative to any of the pricy closed source competition. In addition, open source business software allows users to come together over forums and discussions, where everybody can work together and troubleshoot to update the software into an even better free business intelligence tool.

Hesitant software creators should also realize that they can make big profits from creating something that everybody downloads for free. Unlike closed source companies, open source companies make money by shifting the commercial value away from their business intelligence software “product,” and instead, generate money from something called the “Product Halo.” This means software creators offer the open source software for free, but charge money for such valuable services such as tutorials, technical support, and system integration. Basically, if the open source business intelligence software creator is the most knowledgeable about his or her product, then users and companies will pay them for help in maintaining and updating the free software.

Though closed source software is here to stay, new software users and creators are wise to look into the benefits of the increasingly popular open source business intelligence software model.

Your business intelligence software will only ever be as good as your company’s attitude towards it. Here are a few ways that businesses end up sabotaging their own business intelligence initiatives:

• Unrealistic Expectations – Believing that just because the software has been paid for that you’ll have compliance to this new system across the board is, unfortunately, not enough. Before the software system is purchased, it is important that a core group be designated to lead the initiative and help achieve compliance. This group will be responsible for orchestrating the rollout of the business intelligence software and maintaining it moving forward, as well as eliminating any old systems of data collection that could cause duplication.
• Limiting Access to Results – In companies that allow limited access to reports, the sales team, marketing department, and other key teams and groups are left out of the loop and the business intelligence software is not used to its full potential. While business intelligence reports are very important during the decision making process at the corporate level, they can also help guide the teams that have the most face time with your customers, resulting in increased customer satisfaction and retention.
• Poor Data Quality – If the data your program is using is poor then the results it produces will be unreliable, no matter how excellent the business intelligence software is out of the box. No one will end up using the information during the decision making process or while interacting with customers after being burned by shoddy results. The initiative will crumble before it gets off the ground. By entrusting the core group with data quality, you can follow through with your program knowing that poor existing data will be cleaned up and that new data coming in will be quality from the get go.
• Resistance to Change – Business intelligence doesn’t exist in a vacuum. When you choose your business intelligence software, you need to find a vendor who can help you pick a product that can adapt to changing variables or that can support additional applications as time goes on. Both your customers and your employees will probably have some suggestions for how to improve your system within the first couple of months or even weeks of its launch, so you must be ready and willing to change your business intelligence program.
• Winging It – Without a clearly defined set of variables and objectives, any company will have a hard time finding value in their business intelligence software. The core group should be aware of what your company’s goals are and what will be the key milestones towards those goals. They should also know exactly what constitutes revenue and the specifics of other important variables when they process incoming data. With a clear view of what the business intelligence initiative was expected to accomplish, they will be able to help the system provide useful business intelligence for the entire company.

There’s no escaping it: these are tough economic times. Everywhere you go you hear about how bad the economy is doing, whether it’s news about the stock market, another major company in trouble, or the credit crisis. Making your business successful in times like these may sound like a daunting task, but with the help of business intelligence software, your company can still thrive.

The success of your business in any economy relies on a lot more than some data and statistics, but what you do with that data can greatly improve your company. The performance of your company is only as good as the performance of your projects, so having the data to analyze the performance and management of your projects is essential. Business intelligence software allows you to track the performance of your projects and make decisions for your company that will improve both the day-to-day tasks and the overall organization of the company. With the right information, you can make your projects and your company more efficient, focused, and successful, regardless of the economy.

For some companies, being able to see the relationship between differing sets of data is just as important as the data itself. As business intelligence software continues to improve, the ability to analyze those data relationships is also improving. Using business intelligence to understand the complete picture, rather than just the separate pieces, is another tool to stay competitive in a tough economy and keep your business on the path to success.

All of that data isn’t very useful if the software interface isn’t very functional. Many business intelligence software companies are now offering Rich Internet Applications to improve that functionality. Features of such software often include web dashboards, interactive web reports, and the ability to automatically generate spreadsheets that everyone is familiar with.

Don’t let a volatile economy affect the success of your company. Business intelligence software is a key element to guiding your business through the coming months and years, improving performance, and keeping your company focused.

Finding the focus of your business and monitoring your success in that particular area is the key to success in today’s diverse market. You can monitor how well your company is maintaining strategic focus by defining your Key Performance Indicators and investing in a business intelligence software program that will help you keep track of your progress. Your Key Performance Indicators, or KPIs, can show you which areas you’re executing well and which need improvement.

Choosing Your KPIs

Depending on your business’ focus, your KPIs will be different. Once you narrow down which KPIs are important to your business you can set up your business intelligence software to start collecting the necessary data you need to keep track of your strategy.

· Cost-focused Businesses – The KPIs for cost-focused businesses include cost measurement, cycle time, ability to conform to market standards, quantity, and quality.

· Product-focused Businesses – You’ll be looking at new products in the pipeline, research and development, time to market, and product customization when you select your KPIs for a product-focused business.

· Customer-focused Businesses – Your KPIs will be knowledge of customers, environmental appearance, complaint management, employee empathy, product expertise, and responsiveness in a customer-focused business.

A cost-focused business might benefit from having some knowledge of its customers, but it is not an important KPI for the company overall, while the opposite is true for a customer-focused business. You can mix and match these KPIs if you find it necessary, but most of the time this categorization will hold true.

Setting Up Your Business Intelligence Software

Armed with KPIs specific to your business, you can set up your business intelligence software to collect the data that will show whether or not you are on track with your company strategy. For cost-focused businesses, you will need to collect data that shows cost for the entire process, from materials to labor. Product-focused businesses will need to collect data that shows how the company is moving forward with new products and customer-focused businesses will have to collect more information on customer satisfaction. This will require the business intelligence program to mine different data sources, depending on the information required.

It may even be useful for you to determine your KPIs before you purchase your business intelligence software. That way, you’ll be able to purchase the best package for your data tracking requirements knowing what you need to collect.

Data problems can severely affect the quality of your business intelligence analysis, but they are often hard to detect. Because they don’t stop your analysis process right away, they can slowly become more and more of a detriment until they finally destroy your BI project. Because of how destructive unreliable data can be, one of the most important things you can do to ensure that your business intelligence software runs correctly is to make sure that your data is easily accessible and accurate. If you have duplicate or incomplete information, you will end up with results and eventually initiatives that are baseless. If you use the information to reach out to your customers for marketing campaigns or up-selling opportunities, you run the risk of looking disorganized and incompetent.

You can fix your data problems by following these basic steps:

• Detect and correct potential issues before they do any damage. Before adding any raw data to your business intelligence software applications, use reconnaissance software tools to determine the quality and reliability of your new data. This software is usually more accurate than checking the data manually and can detect and correct mistakes before they get lost in your existing data.
• Eliminate duplicates and standardize all your data as it comes in. This will give you a more comprehensive view of what kind of data you are actually collecting from the get go. By establishing procedures for data processing as it comes in, you can standardize the data as it enters the system.
• Make sure that any new data that applies to and affects old data can be categorized with the older data to create a more complete information history on a specific topic, be it customer buying habits or updating ROI.
• Set up a data “dictionary” so that data from separate sources with different phrases that share the same meaning are identified as belonging to the same category. For example, “manager” and “mgr” are spelled differently, but share the same meaning and should be treated as such.
• Use the tools available to you to automatically extract data from different sources, interpret it, and transform it into a form that can be used by your business intelligence software. This will save you the time and money required to translate your data manually.

Once you know your data is in the right format and contains information that can be used successfully by your software, you can concentrate on the results of your business intelligence analysis and how they affect your company. Take a second look at how reliable your data is now, before the wrong information affects your investment in your BI program.