This continues a series of guest columns from practitioners and bloggers I
respect. The category - The Real Deal describes them well.
I first met David Axson in 1996 when he was pioneering concepts around
process benchmarking at The Hackett Group and have stayed in touch. He is noted
author and speaker in business management and technology. He is currently
working with a number of organizations on the translation of technology promise
into tangible results – which should keep him busy for many years. He was also a
former Head of Corporate Planning for Bank of America.
"Remember when just a few years ago it appeared that SAP stood for Solves All
Problems? Well now the focus is squarely on the power of business intelligence
to drive increased competitiveness, value creation and any other appropriate
buzzword you care to mention – and SAP’s right there with their acquisitions of
Business Objects, Outlooksoft and Cartesis to its portfolio. Can their cure for
cancer be far behind?
Don’t get me wrong, I fully appreciate the potential of business intelligence
tools and applications to dramatically contribute to an organization’s
success,but I also see numerous initiatives disappoint. Why the gap between
expectation and realization?
Having observed and participated in numerous “BI” initiatives over the last
twenty years I think the problem is easy to understand. Take a look at the
exhibit below.
This is the David Axson view of all IT projects. It’s incredibly simplistic
and devoid of acronyms – not an OLAP or XML in sight; but it does encapsulate
the main elements of every BI program. First we collect data from somewhere;
then the structure it; before putting into an efficient and accessible storage
vehicle;the data can then be accessed in order to perform certain
transformations or analysis that can be automatic or user-defined; and finally
we use it to make decisions. Pretty simple really. However the disconnect comes
when one considers the relationship between cost/effort and value. In any BI
project, the first four steps consume 95% or more of the effort/cost. We spend
lots of time and money sourcing data, cleansing data, organizing data and
transforming data. However, when you adopt a value perspective close to 100% of
the value occurs in the fifth step when the resulting intelligence is actually
used to make a decision. Now in the average project plan and budget, consider
how much money or how many tasks are devoted to the first four steps versus the
fifth step. All too often the “training” line is minuscule and consists of
teaching users how to print and providing them with the number of the help desk
which is usually staffed by folks who know little or nothing about how to use
information to make better decisions. We deliver incredibly rich applications
with little or nig guidance on how to use them effectively. It’s the business
equivalent of giving your car keys to your sixteen year old and the only
guidance you offer is to, “Go have fun.”
Until we give at least equal weight to the use of information and the
associated skills, authority and confidence necessary to make better decisions
as we do to the “cool” technology we will continue to lament the disappointing
ROI on BI."
David can be contacted at [email protected] or at www.davidaxson.com.
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