BI Management: Opportunities in the crisis

2^nd March 2009 | Category: BI Management

Whereas the economical effects of the crisis are reflected in reduced IT budgets, the new cost-awareness opens up opportunities for change to BI managers. 
The finance crisis is spreading and, following understandable reflexes, IT budgets are being cut back. It is hardly surprising that this is not always done on the basis of strategic priorities, but rather on the principle of “short back and sides for all”, and that Business Intelligence and Performance Management activities fall under the same pressure to save costs. The sense or otherwise of these budget cuts is open to discussion; but what is surprising is the realisation that the budget crisis also opens up an efficiency opportunity for BI management.

What does that mean? – Whereas in the past 5 years BI had established itself as a Top 10 Topic with a permanent place in the CF/IO agenda, recent years have seen the development of a persistent inefficiency, in which BI topics are assessed neither under ROI aspect nor from strategic standpoints. Instead, some BI implementations have developed sideways, remaining value-neutral, or have been decentralised for political reasons in critical areas, wiping out the synergies. Examples of this are: “A New Analysis Tool in Controlling” or “Marketing has now installed a database of its own.” In only a few cases has it been possible to establish BI as a centrally controlled business enabler in the company. The increasing technological complexity, the range of functions, but also the heterogeneousness of the established manufacturers’ platforms further feed this process. Reduced budgets now compel BI management to address efficiency aspects more emphatically again, before loss of control over development occurs. This all means that there is an opportunity not to implement any old idea that ignores strategic considerations and is fraught with long-term subsequent costs at the point of least resistance, especially when the added value of the insular solution is questionable from a business point of view.

The critical examination for relevance to business and BI strategy then allows the ROI of BI platform investments to be demonstrated again, both short-term and long-term. On the way there, one has a right to demand an answer to the question of discipline and support from management for strategic BI development. Changes to BI-relevant decision processes can be implemented, as can the search for BI efficiency potential in the company as a whole. Specific examples of this are: BI Governance projects, BI/DWH consolidation initiatives and BI sourcing strategies. Thus BI management can make an active contribution by identifying efficiency potential in their own area and beyond, laying the foundations for efficient growth after the crisis.

The Brightcon consultants will be pleased to show you where each typical case of potential lies, what leverage BI efficiency programs offer, and how the attention of top managements can be drawn to it.

Stefan Busch Management Consultant