For many companies, using Business Intelligence seems to be the answer to extending the capabilities of the company; however, all that glitters is not gold, and it is very common to make these key mistakes when implementing complex projects in businesses of all sizes.
In recent years, the implementation of Business Intelligence platforms as supporting tools for key decision-making in companies has increased significantly. Considering that currently the global value of Business Intelligence has grown significantly, we can observe its increasing relevance in current business management.
This impressive global increase, unfortunately, does not necessarily translate to absolute profitability for the companies deciding to implement BI projects across all their business areas. It is important not to misinterpret this fact, thinking that Business Intelligence is not a decisive factor for businesses; on the contrary, BI is the most resounding response when it comes to ensuring the success of companies.
The aim of this article is precisely to help companies pay attention to some of the 5 most common errors made when implementing BI projects, which usually result in increased costs, time, and effort.
1. Lack of clarity in objectives
While it may seem logical to assume that setting objectives is the foundation of any BI project, the reality is that many companies embark on the adventure of implementing new platforms and gradually define objectives along the way. They take into account very specific needs of certain users but fail to view the project as a whole, with its multiple interrelationships and overall processes.
A conscious Business Intelligence plan is based on having a proper strategy as its foundation. Objectives should not only be clear but defined with business analysis that addresses the organization’s needs. Additionally, they should be accompanied by a comprehensive implementation plan indicating how BI will integrate into essential business processes and decisions to ensure its ongoing effectiveness.
2. Thinking that Business Intelligence is an IT topic.
Unlike other projects that largely depend on the IT department, in the case of Business Intelligence, the responsibility for proper development actually lies with departments or areas responsible for making key business decisions.
This is because, essentially, what is sought through the implementation of a Business Intelligence project is to change the way decisions are made in the business, rather than simply automating a process that was already being carried out. Expecting the Systems or Information Technology department to lead the project is a very common mistake that, in the best-case scenario, leads to the implementation being prolonged indefinitely or, in the worst-case scenario, abandoned altogether.
Therefore, in implementing BI projects, there should be a synergy of working together, both from the business vision of the involved departments and the technical expertise of the IT department.
3. Bad selection of tools
Another common mistake is related to a poor selection of software and tools considered for implementation. It’s not that the tools themselves are not functional, but rather that more often than not, they are not the right ones based on the actual needs of the project. In our experience, this happens for two main reasons:
- PRICE. Nowadays, almost all technological tools are acquired through licenses; certain BI tools have a higher cost than others due to their market reputation, robustness, innovation, and user-friendliness. Considering these points, there are occasions when cost becomes a determining factor in the selection of a tool, often at the expense of its functionality and viability.
- LACK OF KNOWLEDGE OR SPECIALIZATION IN TOOLS. This often happens when there is a lack of understanding regarding the capabilities and limitations of BI tools or a deficiency in their specialization, making it challenging to decide which tool is appropriate to use according to the business needs. This situation may arise either from the commercial team selling the project or even within the IT team of the company implementing a BI solution.
4. Failure to consider user training
We in the IT field are well aware that nearly any implementation of a new tool involves high training costs for users to adopt and use it. However, in the case of BI projects, it becomes even more crucial. It’s not just a matter of switching from one tool to another; as mentioned earlier, Business Intelligence entails a new way of understanding and processing information for crucial decision-making.
Training is the sole guarantee of success in the realm of Business Intelligence. Exhausting the budget on software licenses without providing adequate training for users will hinder them from extracting the full potential of a tool that could otherwise provide significant value.
5. Single Point of Truth
Currently, it is more common to see companies storing and consuming information from different source systems. However, as we discussed in our previous Data Awareness blog, these information silos within this vast sea of data must be integrated into a single place where this data represents the sole corporate truth.
That being said, not applying this concept in implementing a BI project can lead to poor governance and traceability of information within the organization, different versions of strategic indicators, and a lack of ownership, creating user distrust in the information source. A clear example would be commercial sales versus financial sales.
In conclusion, implementing a Business Intelligence project is definitely a game-changer when it comes to transforming the way crucial business decisions are made. However, it is essential to consider basic elements that allow for the maximization of potential.
Reach out to Business Intelligence specialists who can guide you on this path toward transforming your business into a data-driven enterprise.
Contact us at admin@bimexanalytics.com so that we can help you evaluate your company’s level of Data Awareness, providing a clear picture of the direction the company should take to evolve.
