BI's motivating forces

As the business landscape becomes increasingly complex, managers not only want to, but need to know more about their business, customers and competitors to compete effectively.

With the fluctuating economy and the changing inflation rates, it is difficult to forecast business prosperity with segmented information - as it is only 'good quality' information that can guide a business in its strategy.

As such, businesses have begun to realise the need for decisions grounded in well-substantiated information. Where previously, businesses worried about the size of their data warehouse, today it is not about quantity but rather quality.

Managers are now looking at the value of the information so they can take advantage of the windows of business opportunity and ensure sustainability. Consequently, businesses are not only interested in data or information; they are searching for valuable intelligence on which to base key strategic decisions.

In response to this shift in perception, two key trends can be identified.

Businesses have begun to realise the need for decisions grounded in well-substantiated information.

Nitesh Vallabh is a director at PBT Group.

From a vendor perspective, the market is flooded with different products and businesses are making important decisions based on these products, instead of making the products work for them.

From a client perspective, business drivers for an intelligence solution need to be well-understood and there needs to be a vendor that drives a solution from a client point-of-view and not a technology one.

Despite this need, many businesses often fail to understand the organisational factors that are driving them towards information management and ultimately business intelligence. Although there are many drivers, managers should keep the method of identification simple.

At the basic level, operational information is required and, until this requisite is satisfied to some degree, it is impossible to discuss the strategic elements of the business. Once this level is in place, businesses need to understand the more complex driver - tactical - which includes all those factors that impact the effectiveness of short- to medium-term activities.

This driver is a difficult one to underpin as it often blurs with operational and the next level. Strategic drivers ensure the business is not only flexible enough to change with the high demands of the business environment, but also remains compliant with regulations.

It is these three drivers that underpin the organisation and its strategy - whether it's to increase profit or improve efficiency - these emphasise the information that is needed to implement such activities and ensure return on investment is justified.

The challenge, however, is to identify these business drivers, both direct and indirect, to ensure managers not only have an indication of what is happening in the industry, but in the business itself.

Subsequently, they will have the information at their fingertips to translate it into strategy accordingly. It is only then that a manager can be confident he/she truly understands the business and that the relevance of intelligence stays hand-in-hand with the organisation's requirements.

Consequently, when managers stop and ask the question - where is the value in our business information? - they begin to put the I back into the role of chief information officer (CIO) and drive business value-adds.

In essence, it is the strong business drive that justifies the BI investment and ensures managers acknowledge that without the information enabler, value-add could not be achieved. Companies need to challenge themselves to make full use of the CIO role, especially the 'I', and bring the role to the fore of the organisation to ensure the information that drives the organisation is based on a business and strategic focus rather than a technology one.

As the business landscape changes and organisations increasingly strive to acquire solid information to drive business strategy, the recognition of these business drivers has become critical. These drivers need to be identified, understood and integrated into every facet of the organisation; for it is only then that true intelligence can be gained and implemented - ultimately driving the organisation to success.