Delve beneath the marketing hype if you want to gain a clear understanding of BI dashboards.
Once again, marketing alchemists have cooked up a bowl of confusion with only a few simple ingredients. Everyone in the business intelligence (BI) space is wild about dashboards, but few proponents are talking about the same thing. This state of perplexity often occurs after the birth of a new buzzword. Around a decade ago, I remember asking my IBM account manager how IBM defined the new term in vogue at the time data warehousing. His response was classic and refreshingly honest: "By data warehousing, we mean whatever the customer thinks it means." In other words, no matter what data warehousing means to you, we do it (and are ready to accept your purchase order for it).
What is a dashboard? We need a useful definition since communication isn't possible without a common understanding. Defining something usually involves identifying the common characteristics observed in a population of examples. However, the name dashboard is used by diverse phenomena today. The only common threads are that dashboards appear on computer screens and involve information. That's hardly a useful definition. Take a look at the results from recent Internet research to see how the term is applied.
In "New Digital Dashboards Help Drive Decisions" (BtoB, July 14, 2003), Jeffrey Schwartz states:
"There are dozens of software packages that mine data repositories and present details on how a business is performing. Sometimes called analytics or business intelligence software, they aggregate data from disparate internal and external sources and display it in the form of customized views. The fashionable term for these views is digital dashboards."
Is a dashboard just the latest fashionable term for the "customized views" of "analytics or business intelligence software"?
When I visited DataWarehousingOnline.com and clicked on Executive Dashboard articles, I received 18 Web pages of links. The exact same links appeared when I separately clicked Balanced Scorecard, Data Quality and Integration, and Data Mining. Either the links weren't working properly, or this site believes that all these terms refer to the same thing. Sadly, this is a fairly accurate portrayal of how the term is used, but not a very useful definition.
Some ascribe a meaning to the term "dashboard" that is synonymous with the term "portal." The Free On-Line Dictionary of Computing defines "digital dashboard" as "a personalized desktop portal that focuses on business intelligence and knowledge management." I concede that dashboards can be used as portals, serving as launch pads to various sources of information, but to equate dashboards and portals is a misunderstanding that robs both of their unique character and contribution.
In contrast to those cited, the following description specifies very distinct characteristics of a dashboard:
"Able to universally connect to any XML or HTML data source, robust dashboard products intelligently gather and display data, providing business intelligence without interrupting work flow ... An enterprise dashboard is characterized by a collection of intelligent agents (or gauges), each performing frequent bidirectional communication with data sources. Like a virtual staff of 2437 analysts, each agent in the dashboard intelligently gathers, processes, and presents data, generating alerts and revising actions as conditions change." (Gregory L. Hovis, DM Direct, February 2002.)
The fact that a dashboard presents data is definitely central to the concept, but must it connect to any XML and HTML data source and be enabled by intelligent agents that never stop their feverish bidirectional communication with data sources? This specification strikes me as overly dependent on or biased toward particular technologies.
In my opinion, the best definition found by searching the Internet appears in a paper written by Dan Dubriwny and Kurt Rivards of Advizor Solutions: "Are You Drowning in BI Reports? Using Analytical Dashboards to Cut Through the Clutter."
"They provide visibility into key performance indicators (KPIs) through simple visual graphics such as gauges, charts and tables within a web browser. Dashboards are appealing because they:
Present a wide number of different metrics in a single consolidated view
Roll up details into high-level summaries
Provide intuitive indicators, such as gauges and stoplights, that are instantly understandable - for example, red bar means problem, green bar means everything is on plan.
In many respects a reporting dashboard can be likened to a dashboard in an automobile. It provides an 'at-a-glance view' of the current operational state of the vehicle."
Now we're getting somewhere. Characteristics such as "metrics in a single consolidated view," "high-level summaries," and "intuitive indicators ... that are instantly understandable" tell us something useful about the essential nature of dashboards.
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