{"id":6794,"date":"2013-09-04T09:05:13","date_gmt":"2013-09-04T14:05:13","guid":{"rendered":"http:\/\/www.mrc-productivity.com\/blog\/?p=6794"},"modified":"2017-03-20T15:22:17","modified_gmt":"2017-03-20T20:22:17","slug":"7-worst-practices-of-business-intelligence","status":"publish","type":"post","link":"https:\/\/www.mrc-productivity.com\/blog\/2013\/09\/7-worst-practices-of-business-intelligence\/","title":{"rendered":"7 worst practices of Business Intelligence"},"content":{"rendered":"

\"Education\"Imagine waking up at 2 a.m. to the sound of a screaming smoke alarm. Would you go back to bed? Of course not! You\u2019re scrambling to get up and get the family out of the house as fast as possible!<\/p>\n

Now, let’s compare that smoke alarm to your Business Intelligence (BI). Like a smoke alarm, a BI solution gathers data and alerts you to issues–but it ultimately falls on you to take action. This is where many businesses stumble. They either ignore the signals from their BI solution, or aren\u2019t prepared to act when an issue arises. It\u2019s like going back to bed when you hear the smoke alarm, or removing the battery so it won\u2019t wake you up anymore.<\/p>\n

I know that\u2019s an extreme example, but it illustrates just one common \u201cworst practice\u201d of BI–a topic that we\u2019re going to examine today. Now, chances are, you understand the concept and the value of BI. It helps you better understand your business and improves decision making, with the end goal of increased revenue.<\/p>\n

The problem is, many businesses misuse BI, rendering their Business Intelligence either less effective or completely ineffective. What are these mistakes, and how can you avoid them? To help you answer those questions, I\u2019ve compiled a list of 7 of the biggest \u201cworst practices\u201d of Business Intelligence, and outlined them below:
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1. Using BI to justify a pre-existing position<\/h3>\n

Many people use BI backwards. They make their decision first, and then go back and find data that justifies their decision. This is a mistake…and negates the entire purpose of BI.<\/p>\n

\n\u201cCompanies should avoid using BI outcomes to justify and underscore pre-existing positions,\u201d says Craig Fryar, Head of Global Business Intelligence at Wargaming<\/span><\/a>. \u201cBy doing so they just add a little analytical gravy as they consume their own dog food. Related to this is the tendency to use outcomes to reinforce competing agendas. It is important to remember that most often the competition is down the street, not down the hall.\u201d\n<\/p><\/blockquote>\n

2. Measuring unactionable data (or failing to take action)<\/h3>\n

\n\u201cRegarding business intel mistakes, one of the biggest is to not think through responsiveness–how well your organization can respond to the new information,\u201d explains Matt Gershoff, CEO and Co-Founder of Conductrics<\/span><\/a>. \u201cIf you think about it, value comes about after data is converted to information, and the information is then converted to action. If you are not agile enough to act, you won’t see any upside.\u201d\n<\/p><\/blockquote>\n

Now, you\u2019ll find two types of unactionable data. First, you have actionable data that your company isn\u2019t prepared to act on–as Gershoff describes above. Second, you have data that cannot drive action. Often referred to as \u201cvanity metrics\u201d, this data might make you feel good, but doesn\u2019t lead to change. Before you measure any metric, ask yourself, \u201cWhat are we going to do about this?\u201d <\/p>\n

3. Using Excel as a BI tool<\/h3>\n

Unfortunately, MS Excel is still the most commonly used \u201cBI tool\u201d in businesses today. I put that in quotation marks because I wouldn\u2019t classify Excel as a BI tool. What\u2019s so wrong with Excel? Here are a few reasons it should be avoided:
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photo credit: subflux<\/a> via photopin<\/a> cc<\/a><\/figcaption><\/figure><\/p>\n