{"id":7514,"date":"2014-02-04T10:00:23","date_gmt":"2014-02-04T16:00:23","guid":{"rendered":"http:\/\/www.mrc-productivity.com\/blog\/?p=7514"},"modified":"2017-03-20T15:21:34","modified_gmt":"2017-03-20T20:21:34","slug":"9-most-common-business-intelligence-misconceptions","status":"publish","type":"post","link":"https:\/\/www.mrc-productivity.com\/blog\/2014\/02\/9-most-common-business-intelligence-misconceptions\/","title":{"rendered":"9 most common Business Intelligence misconceptions"},"content":{"rendered":"

\"Education\"Gartner recently predicted that Business Intelligence (BI) and Analytics will remain a top focus for CIOs through 2017<\/span><\/a>. As the benefits of a data-driven decision-making process become more evident, we\u2019ll see most businesses adopt a BI strategy in one form or another over the next few years. <\/p>\n

The only problem: Many businesses still don\u2019t quite understand BI. They have a general idea, but the concept remains clouded in misconceptions. These misconceptions keep many businesses from adopting BI, or from taking full advantage of its potential.<\/p>\n

Today, I\u2019d like to address these misconceptions, and explain why they\u2019re false. So, what are the biggest areas of confusion surrounding BI? While the list could be much larger, here are 9 of the most common BI misconceptions:
\n<\/a><\/p>\n

1. BI doesn\u2019t have value<\/h3>\n

While fading, this misconception is still alive and well among a small minority of business leaders. It\u2019s to be expected. Many people are quick to dismiss a trend without first understanding its value. Don\u2019t make that mistake with BI. As data plays an increasingly larger role in business, ignoring BI will put your company at a competitive disadvantage. As mentioned below, don\u2019t dismiss it until you truly understand its potential.<\/p>\n

\n\u201cI believe the biggest misconception of BI by CEO’s is the belief that it doesn’t have value,\u201d says Steve Cross, CEO of Infinite Synergy<\/span><\/a>. \u201cJust like anything in life, if people don’t understand something they are quick to either fear or dismiss it.\u201d\n<\/p><\/blockquote>\n

2. BI is only for (fill in the blank) organizations with (fill in the blank)<\/h3>\n

\u201cBusiness Intelligence is only for big organizations with big budgets.\u201d
\n\u201cBI is only for technology companies with lots of data.\u201d
\n\u201cIt\u2019s only for (fill in the blank) organizations with (fill in the blank).\u201d
\nThese are all common misconceptions that businesses use to rationalize their avoidance of BI. Are any of these statements accurate? Nope. These days, any business that has data can use Business Intelligence. <\/p>\n

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photo credit: paul bica<\/a> via photopin<\/a> cc<\/a><\/figcaption><\/figure>\n

\u201cEvery organization can embrace effective BI targets regardless of size, budgets or tenure,\u201d explains Sara Handel, Business Intelligence Services Lead at Excella Consulting<\/span><\/a>. \u201cEvery organization today collects or uses data in some fashion and can track data that is important to them in order to make effective decisions. While you may not be ready for a comprehensive tool, you can start with Excel and Google analytics and expand as your organization grows.\u201d<\/p>\n<\/blockquote>\n

3. Measuring data = successful BI<\/h3>\n

Many companies measure data. Few actually use BI successfully. For instance, many business leaders look over the numbers every day and assume they\u2019re using BI. But, unless that data drives action, they\u2019re measuring vanity metrics–data that makes them feel nice, but doesn\u2019t lead to change.<\/p>\n

\n\u201cMany businesses think that creating reports and reviewing the numbers is enough,\u201d explains Handel. \u201cTrue BI uses data, collected from different sources and analyzed in different ways, to make informed decisions over time. If you are just running the same report and looking at the same numbers but aren’t actually using that information to make decisions or alter your strategies, then you aren’t doing BI.\u201d\n<\/p><\/blockquote>\n

4. BI = reports and dashboards <\/h3>\n

BI isn\u2019t about sending a report to an executive on a daily basis. It\u2019s not about giving them a dashboard. It\u2019s about giving them the tools and resources needed to get the right information when they need it most. Sure, that could involve reports and\/or dashboards, but the point is this: BI shouldn\u2019t be limited by location, device, or time. If an executive needs sales numbers for the past month while walking into a meeting halfway around the world, he\/she should be able to get them instantly.<\/p>\n

\n\"Dashboard\"\u201cDespite the fact that reports and dashboards are standard tools of a classical BI, they do not define the value by themselves\u201d says Sergii Shelpuk, Data Science Group Director, SoftServe<\/span><\/a>. \u201cBI is a solution for delivering the right information to the right people at the right time. Business needs go first and specific tools for delivering such information should be picked after defining: what is the right information, who are the right people and when is the right time.\u201d\n<\/p><\/blockquote>\n

5. More data = better BI <\/h3>\n

\n\u201cThis is flat out wrong,\u201d says Anita Andrews, VP, Client Analytics Services at RJMetrics<\/span><\/a>. \u201cThe larger community is so quantity obsessed (of course it’s fun for some to solve the computational and processing problems associated with massive data sets), but it’s actually the case that if you can double your revenue with one column of data, you’d do it in a heartbeat.\u201d\n<\/p><\/blockquote>\n

With business intelligence, everything starts and ends with data quality–not quantity. Don\u2019t try to measure every piece of data possible. You\u2019ll only overwhelm yourself. Instead, focus your efforts on the data that matters. Make sure it\u2019s accessible, accurate, and reliable. Without data quality, you can\u2019t hope to accomplish anything with BI.<\/p>\n

6. All BI tools are the same<\/h3>\n

This misconception leads to disastrous consequences. Based on this flawed assumption, some businesses choose their BI tool based on popularity, not on business requirements. They assume that the most-hyped solution must be the best solution for them. This is a dangerous assumption.<\/p>\n

The fact is, every BI solution is different. They\u2019re built on different architecture. They offer different security features. They offer different capabilities. As explained below, the popular solution may not be the best fit for your company.<\/p>\n

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photo credit: lumaxart<\/a> via photopin<\/a> cc<\/a><\/figcaption><\/figure>\n

\u201cWhen it comes to BI, one size doesn\u2019t fit all,\u201d says Takashi Binns, Senior Manager, Solutions Delivery at arcplan<\/span><\/a>. \u201cThe hype surrounding the most popular solution does not necessarily translate to value for your organization. Business teams must evaluate whether the solution is compatible with their data architecture, whether it will address their team\u2019s specific requirements, and whether it is scalable for future development. Organizations set themselves up for failure when they solely buy into the hype of a BI tool. The best tool for your team just may be the underdog.\u201d<\/p>\n<\/blockquote>\n

7. We need \u2018big data\u2019 for BI to be meaningful <\/h3>\n

It seems like \u201cBig Data\u201d suffers from the same problem as HTML5<\/span><\/a>: everyone wants it, but few actually know what it is. Many falsely associate BI with Big Data, assuming they need both to extract any value from their data. In reality, BI and Big Data are two separate things. Sure, they may overlap in some areas, but you certainly don\u2019t need \u201cbig data\u201d with your BI.<\/p>\n

\n\u201cBig data hype has done a great thing \u2013 it has emphasized importance of integrating real-time and unstructured data into the decision-making process,\u201d explains Binns. \u201cBut don\u2019t get hung up on chasing big data as the only means of getting insight into your company\u2019s operations. Your company may not even have \u2013 and may never have a need for \u2013 big data. Business leaders can glean insight into business operations by performing various analytic techniques on their regular data to improve business processes, efficiency and profitability.\u201d\n<\/p><\/blockquote>\n

8. Business intelligence is an IT job<\/h3>\n
\"photo
photo credit: lumaxart<\/a> via photopin<\/a> cc<\/a><\/figcaption><\/figure>\n

\u201cHistorically, running queries and generating reports for the business team were back-office activities assigned to the IT department,\u201d says Binns. \u201cWith little communication between these two groups, obtaining valuable information was hit or miss. But organizations actually get the best value from BI when business and IT collaborate. Business leaders know what KPIs are most important, and the IT group has the technical acumen to assemble the right data using best practices. It takes communication between these two groups in order to achieve valuable business insight and yield a return on a BI software investment.\u201d<\/p>\n<\/blockquote>\n

I agree–proper BI requires collaboration between IT and the business, but I might even take that one step further. With modern BI solutions, business users can easily create their own analytic applications without even going through the IT department at all. Sure, IT still plays a role–they must control the data and user access–but they can now place much of the reporting duties in the hands of the users. <\/p>\n

9. BI Software = BI Strategy<\/h3>\n

The term \u201cBusiness Intelligence,\u201d is largely associated with software. But, it\u2019s much more than that. As mentioned in \u201cThe 4 P\u2019s of Business Intelligence Success<\/span><\/a>,\u201d software is just one part of the BI implementation process. As explained below, successful BI projects requires internal changes as well–which are typically more difficult than implementing software.<\/p>\n

\n\u201cSome people make the mistake of assuming having Business Intelligence software and technology means they have a Business Intelligence strategy,\u201d says James Ficarra & Adam Rene, Senior Project Managers & Engineers at ExcelAutomationHelp.com<\/span><\/a>. \u201cNothing could be further from the truth. While the BI software should provide timely information to support decisions, these decisions are ultimately made by humans. In addition to software, a successful BI implementation must include systematic changes to an organization’s culture, making them more data-driven. Strong cultures are identified through strong patterns of accountability which encourage and reward data-driven decision making.\u201d\n<\/p><\/blockquote>\n

So, what do you think? Would you add anything else to that list? If so, I\u2019d love to hear your thoughts in the comments.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gartner recently predicted that Business Intelligence (BI) and Analytics will remain a top focus for CIOs through 2017. As the benefits of a data-driven decision-making process become more evident, we\u2019ll see most businesses adopt a BI strategy in one form or another over the next few years. The only problem: Many businesses still don\u2019t quite …<\/p>\n

9 most common Business Intelligence misconceptions<\/span> Read More »<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","slim_seo":{"title":"9 most common Business Intelligence misconceptions - mrc's Cup of Joe Blog","description":"Gartner recently predicted that Business Intelligence (BI) and Analytics will remain a top focus for CIOs through 2017 . As the benefits of a data-driven decisi"},"footnotes":""},"categories":[8],"tags":[10],"class_list":["post-7514","post","type-post","status-publish","format-standard","hentry","category-education","tag-business-intelligence"],"_links":{"self":[{"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/posts\/7514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/comments?post=7514"}],"version-history":[{"count":11,"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/posts\/7514\/revisions"}],"predecessor-version":[{"id":8406,"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/posts\/7514\/revisions\/8406"}],"wp:attachment":[{"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/media?parent=7514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/categories?post=7514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mrc-productivity.com\/blog\/wp-json\/wp\/v2\/tags?post=7514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}