“Data is the new Science”, “Big Data is the next revolution”, “Big Data is as big as the Internet!!!”
If you are a business decision maker, you might be hearing these quotes too often lately. Yes, data has swept this world and yes organizations are making a hell lot of money by monetizing their data. But, do you know what was the cost of Bad data in the US alone in 2016? It was $3.1 Trillion! (source)
Yes, you read it right. So what is this bad data? It is the data that you have collected and stored but you cannot extract any value out of it. All it does is it shoots the figures in the liability and expense sections of your balance sheet.
You might be thinking “What is the solution then?” Before we reveal that, understand that for any organization rather big or small, there must be a chain of data extraction that leads to at least value creation if not data monetization. An Ideal value chain for data is,
The problem with the market right now is majority of organizations make technological enhancements, but fail to implement supporting business practices and analytical skills. For a successful and intelligent business, you need to make sure that each and every person in your organization is on the same page and is contributing towards unified goal of value creation.
Okay, you know that you need to infuse Business Intelligence to monetize upon your data, BUT HOW? Just like every building needs an architecture blueprint, you need following building blocks to define your BI strategy:
1. Define Objectives:
First things first, you need to list down the objectives of your BI strategy and one (or more) end-goal that will be targeted. This will help you define the BI initiatives that you will require to fulfill the end-goal.
Also, defining objectives aids you in aligning your BI initiatives with your company initiatives and you can make sure you are unified and contributing towards your end-goal.
2. Business Challenges:
The next logical step is to define the business challenges your BI initiatives will solve to achieve the end-goal. You need to identify the business practice limitations, technological drawbacks and analytical inabilities that hinders the growth of your organization.
3. Business Cases:
Ultimately, every step taken by any organization must aid in increasing the profitability of that organization. Thus, your stakeholders will need justification for the investment that you are making in BI and what will be the ROI that they can expect out of it. So, the next step is to build a business case that can define the ROI of your BI initiatives.
Your Business Case must cover all the quantitative and qualitative costs that will be required and the estimated benefits that one can expect from those costs.
Technology is an adjoining link that connects whole organization. There are many different technologies that generates similar outcome, but you must choose a technology that compliments your business and can be easily adopted by the people of your organization. The problem is that majority of organizations opt “popular technology solutions” and then fail to integrate that technology with their businesses processes. While formulating your BI strategy, identify the suitable technological capabilities that you will require for smooth and effective transition towards a BI driven organization.
5. Formulating Business Intelligence Competency Centre (BICC):
The last step before you implement your BI strategy is to formulate a BICC i.e. a cross-functional team that consists of experts from different departments of your business to help you implement and establish sufficient governance to promote effective use of BI in your organization.
Once you build BI strategy based on above building blocks, you will be able to align Technology with your business and your stakeholders. Also, you will be able to justify the spending of your organization in BI. And lastly, an ideal BI strategy will lead to a positive impact on decision makers of all the three levels of an organization.
Now that you know why you need BI, how you can trigger BI and what you get from BI, what are you waiting for? Make your DREAM of a Billion Dollar Business, a BENCHMARKING REALITY! And if you need a technology expert to help you strategize and implement BI in your organization, just drop a mail at firstname.lastname@example.org.