Performance management is about effective decision making, collaboration, and optimizing business processes. Every aspect of the patchwork, hodgepodge, or whatever you want to call a multitude of disparate tools, goes against the very essence of performance management. From the lost efficiencies of acquiring, deploying, and using many systems, to the loss of consistent, timely, and easily accessible information, to the lack of collaboration they create, the organization that does not act quickly to standardize its BI technology will be doomed.
Business intelligence technology has matured to a point where it is a key enabler for performance management. Ventana Research asserts that performance management will be the competitive differentiator for this decade.
Companies will either successfully deploy performance management initiatives or will suffer crippling competitive threats. Information is vital to improving performance and BI technology is critical for obtaining actionable information that represents the results of an organization. Ventana Research strongly advises our clients to consider standardizing/consolidating their BI systems to reduce cost, simplify their IT infrastructure, and, more importantly, to improve performance that will result in lasting value for the company.
Unfortunately, standardizing/consolidating is a complex undertaking. There are cultural issues, IT issues, and business issues. Potential BI pitfalls include planning and strategy issues surrounding standards setting, management issues regarding user support, and failure to manage software licenses properly. The result can be a fragmented BI implementation, lack of end-user adoption, and wasted resources.
Ventana Research recommends that proper preparation in project process development and creation of an experienced performance management initiative team to work with an IT Program Management Office (PMO) to oversee the process will go a long way toward ensuring the success of your standardization project.