Business Intelligence: Feasible Or Feeble?
Just how useful are business-intelligence tools for your average manager or knowledge worker? Business-intelligence software vendors would have you believe their products are so effective and easy-to-use that a 3-year-old could use them to create a five-year sales-projection report. But critics say the tools are so difficult to use and underlying data so complex that only people with a Ph.D. in statistics can use them.
The truth, not surprisingly, is somewhere in between. When it comes to business-intelligence software, users still need lots of hand-holding by the IT department, putting a strain on already-thin resources, according to a January survey of 100 business-technology professionals conducted by InformationWeek Research and Optimize Magazine Research.
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When asked whether users can build their own queries and reports to access business data, 48% of respondents say no, users must rely on the IT department for help. Another 28% report that users could develop their own queries if they understood the underlying data structures--a rather tall order. Only 24% say users could accomplish the task with little or no technical knowledge.
All this can add to the IT workload. When business-intelligence tools are implemented within a company, the burden on IT staff increases, more than half of survey respondents say. Forty-six percent report that the move reduces the IT workload.
The key to successfully putting business-intelligence tools into the hands of users is cooperation among IT and business managers. When asked who drives the design and implementation of business-intelligence tools within their companies, 47% say projects are managed by a collaborative committee of IT and business managers. Thirty-five percent say business managers are the driving force, while only 18% say IT is behind the business-intelligence wheel.
Training is critical: 60% of respondents rate the usability of their companies' business-intelligence tools as not too difficult with training. Only 29% rate the tools' usability as challenging or nearly impossible. While at the other extreme, just 11% rate them intuitively easy.
How are business-intelligence tools being received at your company? Let us know at the address below.
Rick Whiting
Senior Editor
rwhiting@cmp.com
Many Sources
Managers are increasingly turning to business-intelligence tools to navigate their way through a tough economy. But what kinds of data are they analyzing and where are they getting it? Sales and marketing operations are key data sources for business-intelligence applications, according to the study by InformationWeek Research and Optimize Magazine Research. Seventy-six percent of respondents say sales is a source of data used for business-intelligence purposes, while nearly three in five cite marketing as a source. But managers are also relying on business intelligence to understand information about their company's operations; a little more than half of respondents cite finance as a data source, followed by 55% who analyze operations and logistics data. Only 10% use sales or inventory data from their supply chain, despite an increasing emphasis on making supply chains more efficient. |
Business Precedes IT
Most often it's business sense, not IT expertise, that shapes the design and implementation of business-intelligence tools. Four in five companies interviewed by InformationWeek Research and Optimize Magazine Research have either business-intelligence strategies headed by business managers or have business executives on joint business-intelligence committees of IT and business managers. IT's influence isn't as far-reaching. Only two-thirds of companies say IT executives are members of a joint business-intelligence committee of IT and business execs or that their IT departments are sole managers of their business-intelligence campaigns. |
Restrictions Prevail
Information sharing opens up companies to a variety of risks, including the potential theft of data and the possible corruption of data stores. Yet these hazards aren't deterring companies from supporting business-intelligence initiatives, and some are going so far as to offer data access to remote workers. While two in five business-technology professionals say ad hoc access to business data by remote users isn't permitted, a slim majority of companies interviewed--51%--are allowing limited remote access to information. Just 11% of sites have opened their data doors fully, with virtually all information available to remote users. |
Integration Issues Evident
Companies are partially responsible for some of the issues limiting access to data. Almost 60% of respondents blame data-retrieval problems on the way their companies store their files. Thirty-six percent of respondents say that although business data is kept in a centralized repository, different formats and languages make it almost impossible to compile data runs without assistance. Twenty-two percent of those responding experience integration issues because their companies' data stores consist of multiple, nonintegrated databases. The remaining 42% have successfully overcome these issues, reporting instead that regardless of where data is stored, virtually all of it is easily accessible without assistance. |
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