1. + Chapter 9: Management of Business Intelligence © Sabherwal & Becerra-Fernandez

2. + Outline Management of Business Intelligence Infrastructure Data Infrastructure Organizational Culture Structures Business Intelligence Governance Business Intelligence Competency Center Degree of Centralization of BI Processes Building the Business Case for BI Building Organizational Support Education Evaluation 2 © Sabherwal & Becerra-Fernandez

3. + Management of Business Intelligence Management of BI refers to the set of actions needed to obtain the most value from the organization’s various BI efforts. The set of actions related to management of BI can be viewed in terms of three broad categories: Infrastructure – enhancing the quality of the BI infrastructure to best support BI tools and solutions Structures – developing structures needed for management of BI Processes – establishing and using appropriate processes for the day-to-day management of BI The three aspects mutually affect each other (see figure on next slide) © Sabherwal & Becerra-Fernandez 3

4. + Management of Business Intelligence (contd.) An Overview of Management of Business Intelligence © Sabherwal & Becerra-Fernandez 4 Processes Creating a business case Building organizational support Education Evaluation Development Sourcing Structures Governance Competency center Degree of centralization Infrastructure Data infrastructure Organizational culture

5. + Infrastructure Two aspects Data infrastructure – success of BI depends considerably on the data available in an organization Organizational culture – some organizational cultures are more conducive to BI than others Both have considerable effects on: The impacts of BI tools and solutions The structure and processes associated with the management of BI © Sabherwal & Becerra-Fernandez 5

6. + Infrastructure - Data infrastructure … #1 Data drives BI Poor data infrastructure could be disastrous © Sabherwal & Becerra-Fernandez 6

7. + Infrastructure - Data infrastructure … #2 Data quality is one of the most important technical factors for successful BI. Data quality across following dimensions: Existence (whether the organization has the data) Validity (whether the data values fall within an acceptable range or domain) Consistency (whether the same piece of data stored in multiple locations contains the same values) Integrity (the completeness of relationships between data elements and across data sets) Accuracy (whether the data describes the properties of the object it is meant to model) Relevance (whether the data is the appropriate data to support the business objectives). © Sabherwal & Becerra-Fernandez 7

8. + Infrastructure – Organizational culture … #1 Organizational culture: the norms and beliefs that guide the behavior of the organization’s members. © Sabherwal & Becerra-Fernandez 8

9. + Infrastructure – Organizational culture… #2 A culture that values data and its utilization to pursue opportunities and make data-based decisions is more conducive to BI. The so called “analytics culture.” Technology PLUS Analytics Culture  Successful BI Analytics culture and Success with BI are mutually reinforcing © Sabherwal & Becerra-Fernandez 9 Analytics culture Success with BI

10. + Structures Three aspects Business Intelligence Governance Business Intelligence Competency center Degree of Centralization of Business Intelligence All play an important role in the management and impacts of BI © Sabherwal & Becerra-Fernandez 10

11. + Structures - Business Intelligence Governance … #1 Business Intelligence Governance: the guiding principles, decision-making bodies, decision areas and decision rights, and oversight mechanisms that are used to encourage desirable behavior in the management, development, and use of BI. © Sabherwal & Becerra-Fernandez 11

12. + Structures - Business Intelligence Governance … #2 Guiding principles: the overall beliefs for guiding the BI vision and goals. Decision-making bodies: identifying the individuals or groups that make the BI decisions, provide inputs and sponsorship, and how these the individuals or groups interact. Decision areas and decision rights: focus on the identification of key types of decisions and allocates rights for making those decisions to decision-making bodies. Oversight mechanisms: the formalized policies and procedures for implementing BI governance and evaluating progress. © Sabherwal & Becerra-Fernandez 12

13. + Structures - Business Intelligence Competency Center Business Intelligence Competency Center: a cross-functional team with specific tasks, roles, responsibilities and processes for supporting and promoting the effective use of business intelligence across the organization. A relatively permanent, organized entity Serves as a center for expertise related to BI Provides a central location for driving and supporting a company's overall information delivery strategy Coordinates an organization's BI solutions and tools Helps share best practices across the organization Helps with data stewardship Helps develop a standardized set of models across the organization © Sabherwal & Becerra-Fernandez 13

14. + Structures - Degree of Centralization of Business Intelligence May be viewed in two different ways: 1)Focus of the BI solutions at the organization BI solutions focused at the enterprise level: Greater Centralization BI solutions focused at the departmental level: Greater Decentralization 2)Extent to which the development of BI reports is centralized Reports are a standard part of the BI solution: Greater Centralization Reports are mainly user-developed: Greater Decentralization A balanced approach to development of reports is recommended © Sabherwal & Becerra-Fernandez 14

15. + Processes Building the Business Case for BI Building Organizational Support Education Evaluation Development Sourcing All play an important role in the management and impacts of BI © Sabherwal & Becerra-Fernandez 15 Discussed in Chapter 8

16. + Processes - Building the Business Case for BI BI efforts need resources. To get resources (and continue getting them) we need: A business case justifying investments in BI A business case may highlight organizational benefits from BI efforts. Can you list some of the benefits of BI that can be highlighted? May be difficult to calculate ROI in quantitative terms. (Why?) May instead focus on the fundamental value proposition of BI (examples?) © Sabherwal & Becerra-Fernandez 16

17. + Processes - Building Organizational Support Build, and maintain, organizational support for BI as people: might be skeptical of the benefits from BI might feel threatened may prefer making intuition or gut-feeling based decisions rather than decisions based on information and analysis be just resistant to change But how to build and sustain organizational support? Start with a solid business case (might also show importance of BI to users) Follow an incremental approach (remember Associated Grocers?) Redefine roles to show individuals how they would benefit from BI Recruit or assign "champions” Manage expectations by getting users involved from the onset © Sabherwal & Becerra-Fernandez 17

18. + Processes - Education For continued success of BI keep current and potential users of BI educated about its potential benefits, functionality, and use of BI solutions and tools. Training certainly helps but education about BI is broader than training and is ongoing… Keep updating the trained users’ BI knowledge by: Frequent communication Making education collaborative (e.g. web based sessions) Leveraging the BI competency center Both inform about and inculcate the value of data and analysis beyond mere training on use of BI tools and solutions. Remember it takes time and considerable learning to become proficient with BI but the payoffs could be high. © Sabherwal & Becerra-Fernandez 18

19. + Processes - Evaluation © Sabherwal & Becerra-Fernandez 19 Periodically revisit the expectations as per the business case and utilize them as the baseline to determine if BI initiatives are progressing as expected. That is, evaluate benefits and costs in terms of what was expected and what has happened. Be sure to include unexpected benefits and costs as well. Both solicited (e.g. via a survey) and unsolicited input from users about the value of information from BI may be useful in evaluation. The extent to which the BI projects are aligned with the business strategy is a potentially useful criterion for evaluation. Lookout for implications of BI beyond the organization (e.g. implications for customers and suppliers).

20. + Recap We have examined the various actions related to management of BI as part of three aspects which mutually affect each other. Each aspect entailed several components. © Sabherwal & Becerra-Fernandez 20 Processes Creating a business case Building organizational support Education Evaluation Development Sourcing Structures Governance Competency center Degree of centralization Infrastructure Data infrastructure Organizational culture

21. + Key Terms analytics culture business case for business intelligence business intelligence competency center business intelligence steering committee data infrastructure data-driven decision making 21 education about business intelligence evaluation of business intelligence management of business intelligence organizational support for business intelligence © Sabherwal & Becerra-Fernandez