Delivering Better Business IntelligenceInformation surrounds us. But for many organizations, the sheer volume makes it difficult to establish an effective business intelligence program that delivers the right information to the right hands at the right time and place. Asking and answering three questions is a good place to start. Finding the best, most up-to-date information to support business decisions is a continual challenge. But for many executives, the "gap" isn't missing information. It is the ability to harness available information and deliver it in a relevant, timely, and actionable manner. Today's systems put more information than ever at our fingertips. Customer records. Financial and operational statistics. Point of sale data. Inventory. Competitive intelligence. Market and industry trends. Product facts. Supply chain information. Best practices. Workforce data. Closing the business intelligence gap requires finding a way to integrate information from across this array of internal and external sources and deliver it to decision makers in a way that helps them to identify trends, answer strategic questions, and make vital business decisions. Many organizations' business intelligence processes have developed over time, often in response to ad hoc information needs. But continually adapting systems to produce insights in this way can be a real drain of both time and dollars. How do you sort through the vast amount of intelligence available to deliver -- proactively -- the vital information needed to manage and grow your business? Answering three simple, but key, questions is a good place to start. By doing so, you can make sure that your time and effort that goes into creating business intelligence is efficient, responsive, and aligned with your organization's goals. 1. What are you measuring?Many organizations spend substantial time and effort figuring out how to get information and creating new systems and processes to make it happen. To make sure that you get the greatest return from the effort, step back and ask: What do you need to measure? An effective business intelligence program should flow directly from your organization's business strategy -- that is, it should establish financial and operational metrics and reporting processes that correspond directly with your key performance indicators. If, for example, one of your key business strategies is to pursue penetration of your product portfolio in a new geographic market, then your business intelligence systems and processes should be focused on producing accurate, up-to-the-moment data about: - Market volume and growth
- Pricing trends in that market
- Competitor share and marketing expenditures
- Return on market investment
- Market based profit and loss statements
- Channel costs
With your business strategy as a filter, you can focus intelligence efforts on the measures that matter. 2. Where will you get the information?The next step is to identify the most appropriate sources of data from the array of sources -- internal and external. In fact, one of the biggest barriers to generating relevant business intelligence is the ability to integrate data from disparate internal and external sources. A carefully defined set of metrics will clarify the most appropriate information sources. Many organizations have a tendency to collect and use data in a manner that follows organization structure -- that is, to the extent that they operate in functional, divisional, or geographic "silos," their organizational intelligence also resides within these groups. When information is managed in these silos, obtaining and aggregating it to analyze bigger-picture issues can be frustrating and time consuming. Aligning measures with business strategy not only provides the clarity necessary to focus and prioritize information gathering efforts; it provides the impetus for breaking down barriers and sharing information between units and divisions. 3. Who will use the information?Information is not useful and actionable until it reaches the user. Therefore, the third key element of an effective business intelligence strategy is to define how information is distributed -- in what forms and through what channels. Dynamic reporting enables us to generate (spit out does not sound good, maybe "generate") information in real time and in many forms -- from Internet-based management dashboards, to Blackberries, to cellular phones. What is best? Ask your users. Identify and interview your organization's key decision makers. Understand how they typically access information, how they use it, when they need it, and where. Their answers will provide you with a clear basis for designing your business intelligence delivery processes.
Evolving systems and software overnight to respond to critical information needs is difficult, if not unrealistic. But, starting with these key questions can help you align metrics, information sources and delivery mechanisms to close the intelligence gaps in your organization.
West Monroe Partners takes information reporting beyond functional needs to a new level that stretches across the enterprise, systems and external entities to capture the decision-supporting information that our clients need. For more information, please contact Rich Sypniewski.
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