The Profit Impact of Business Intelligence

Features

• Cover Type: Paperback with 240 pages
• Published by: Morgan Kaufmann
• Edition: 1st Edition December 5, 2006
• Written in: English
• ISBN 10 Number: 0123724996
• ISBN 13 Number: 978-0123724991
• Book Dimensions: 9.2 x 7.4 x 0.8 inches
• Weighs: 13.6 ounces

Reader Reviews
Steve and Nancy Williams have made a significant contribution to the Data Warehousing / Business Intelligence literature with this comprehensive and well organized argument for looking at Business Intelligence as an investment in building sustainable organizational value in either a for-profit or non-profit environment. The book provides a clear understanding of the need for Business Intelligence along with the challenges that have plagued many efforts in the past. In it they put forth a number of ideas to address these challenges while outlining a "value management" oriented methodology for overcoming them. In the process they point out that many of the TDWI Best Practices are completely consistent with the value oriented approach. The husband-wife team skillfully make the case that a successful Business Intelligence program needs to focus on building measurable and sustainable business value through coordinated change in workflow (business process), information flow (dashboards, scorecards, "reports", etc.), and decision structure. And that a Business Intelligence Program needs to be considered and managed as a "portfolio" consisting of multiple individual Business Intelligence projects, each characterized by both benefit and risk. They argue that for a BI (Business Intelligence) project to add value it needs to enhance the organization's ability to deliver greater value to its customers. Each BI project delivers some benefit, and always at some risk. Both the benefit and the risk need to be measured and managed. The existence of multiple projects gives rise to the need to manage a "portfolio" of BI projects with varying degrees of risk and reward. They point out that BI delivers information and that information is only beneficial if the information is useful to decision-makers. That is, it reduces the uncertainty surrounding a decision. Since the only thing information can do is alter a decision, one's need for information becomes a function of the decision and the business process to which it belongs. Thus new information often presents an opportunity to make a decision more efficiently bringing about a change in the way a decision is made (the decision structure). Furthermore, data used as input to one business process often originates in another. Hence, the need to consider possible changes in more than one business process in order to achieve the expected benefit from improved decision-making capability. Many of the challenges that have led to undesirable results in the past can be traced to the inability of the organization to deal effectively with this inter-related and often required simultaneous change in decision structure and work process. This inability is most likely attributable to focusing on specific technical objectives rather than the more encompassing value-building objectives of the investment. A value-focused approach helps anticipate this impact and resolve possible conflict. This is one book that should be within easy reach of every BI professional, team-lead, business analyst, supervisor, manager, and CIO interested in building a value oriented organization. Comment | | (Report this)