Monday, July 14

BI costs Fortune 500 millions

I don't normally like to bring bad news up, although the Business Intelligence industry desperately needs a new guiding light. However there is always something to be learned from failures and bad news. Just like the first "F" I received in university... a wake up call for me that kicked me in the ass!

Dynamic Markets did market research, posted by and found that "BI failed to impact decision making in US and UK companies." posts about industry risks and value creation. 218 operational execs and front line mgmt were surveyed. Some quick stats for you:
  • 76% were forced to make decisions because not all the info was available in time.
  • 63% believe that BI reports are simply reference documents used to justify after the decision is made.
  • 70% do not receive reports that provide predictions about problems or potential opportunities.
Okay, those aren't great stats for an industry that promotes itself as "providing timely, accurate results to make fact-based decisions." A more alarming stat is the cost to companies -- the impact of inadequate intelligence.

$478,868 in lost revenue!

That really hits home for me. That doesn't include the cost to implement a BI solution in the first place. Now if we take a step back and look at the industry. There are a plethora of tools, consultants, methodologies, and training courses but for the Fortune 500, BI is hurting companies more than it is helping.

Now there may be some very valid reasons for this. Fortune 500 companies are large, very complex business with multiple departments all intermingled. They have high volumes of data that BI needs to distribute over a large geography. Plus just understanding their business to build a BI solution would be a tremendous effort. But as my papi would say, "you're giving into excuses."

So if we assume these stats are true and speak to the Business Intelligence industry in generalities, then we should be trying to figure out, in big leaps and bounds, how to make this work. There needs to be a vision... perhaps many visions on taking BI forward. Other software industries have gone through regular change and come out better for it. Isn't it time for Business Intelligence to go through it's paradigm shift?

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