Managers Guide

to
BI Tools
By SearchCIO.in
Business intelligence (BI) has emerged as one of the fastest
growing disciplines in India.
This Managers !uide to BI tools co"ers the following topics#
What are BI tools?
What functions do BI tools perform?
BI deployment challenges (and how to overcome them)
BI tools Best practices
Top BI vendors and tools they offer
!urther reading
What are BI tools?
Business intelligence (BI) tools are software programs for
analysing and presenting data. This data is then used $y
organi%ations to ta&e $usiness decisions. The commonly'used
spreadsheet( for e)ample( is a BI tool.
BI tools include software for data mining( online analytical
processing (O*+,)( statistical analysis( and -uerying and
reporting tools such as dash$oards and scorecards. The data
used $y BI tools is often stored in a data warehouse or data
mart.
Organi%ations use BI tools to o$tain a comprehensi"e picture
of their current and past acti"ities and performance. BI tools
can aid day'to'day operations as well as future planning and
decision ma&ing.
What function do BI tools perform?
*isted $elow are si) important functions that BI tools help to
perform.
To report "usiness operations
The most $asic use for BI tools is &eeping trac& of e"eryday
$usiness operations. .ee&ly or monthly reports of a
companys acti"ities can $e easily generated using BI tools.
To trac# customer$"ehavior and sales patterns
Business intelligence gathered o"er time is useful in trac&ing
customer spending and product sales patterns. BI tools can
gi"e an all'round picture of customers and product sales $y
mar&et segment( region( time period( etc. This information is
"ital for estimating demand and planning product launches
and mar&eting campaigns.
To discern trends and relationships
/igital age $usinesses ha"e "ast -uantities of historical and
current data on their hands. /iscerning short'term and long'
term mar&et trends and mo"ements from that data is made
possi$le $y BI tools.
To measure the impact of mar#eting campaigns
BI tools can help trac& and measure the impact of mar&eting
campaigns in terms of product sales and customer
responses.
To present "usiness data
BI tool interfaces( such as dash$oards and scorecards( are
useful for presenting data to colleagues and sta&eholders
during meetings and $rainstorming sessions. 0ast -uantities
of data can $e -uic&ly -ueried and presented in the form of
easy to read charts and diagrams.
To aid future planning
1inally( BI tools are useful for long'term forecasting and
planning. BI tools ma&e it easier to wade through and study
the large -uantities of current and historical data held $y the
organi%ation. This &ind of analysis is "ital for forecasting and
future planning.
BI deployment challenges (and how to overcome
them)
+lthough BI tools are of great help in $usiness( there are a
few challenges associated with them. 2se these tips to deal
with challenges.
%nsure enterprise$wide participation in deployment
The participation of $oth management and employees is
essential to ma&e a BI tool implementation successful.
Business data needs to $e continually monitored(
updated( and archi"ed for it to $e of use to the company.
3nterprise'wide participation is essential to maintain the
accuracy and relia$ility of a"aila$le $usiness intelligence.
&ssess your "usiness needs first
The BI tools you pic& need to $e integrated with your
e)isting enterprise applications such as 34,( SCM( C4M(
etc.( to $e of "alue to your company. There are many BI
tools a"aila$le in the mar&et( $ut not all will $e a$le to
meet your specific needs. Its ad"isa$le to run a pilot and
user acceptance test $efore the pro5ect can $e made
enterprise'wide. /o consider hiring a consultant to help
you ma&e the $est choice.
!ocus on data 'uality and data integrity even "efore
deployment "egins
BI tools will not deli"er all the $enefits as promised unless
the data used is accurate and relia$le. BI tools will $e
processing "ast -uantities of data( and maintaining the
accuracy and integrity of this data is all'important to the
success of BI tool implementations.
&ppoint 'ualified personnel
The optimal use of BI tools re-uires -ualified personnel such
data architects( O*+, de"elopers( report writers( data
champions( etc.
They are the ones who will interpret the patterns and trends
re"ealed $y BI tools.2ntrained personnel may not $e a$le to
interpret the data correctly.
Currently( The /ata .arehousing Institute (T/.I) and /+M+
International offer certification and training in BI su$5ects.
Most BI "endors also offer training on BI tools they sell.
BI tools Best practices
BI tools are mere aids. They will help to analy%e data or to
indicate trends( $ut decisions need to $e made $y you.
Studying large -uantities of data may re"eal false trends that
ha"e no $asis in reality. + manager must continue to rely on
his $usiness instincts to ma&e the $est decisions.
1ollowing $est practices can $e handy to ensure ma)imum
returns on in"estments made on BI tools.
3nsure that the BI tool is integrated with e)isting apps.
,ic& BI tools that will e)pand as $usiness grows.
BI tools are e)pensi"e. Calculate the e)pected 4OI
$eforehand and regularly assess the actual 4OI that you
ha"e $een deri"ing from BI deployment.
BI tools can $e complicated. 3mployee training is a must.
6ire a consultant for ad"ice on the $est BI tool to pic&
and the $est way it can $e deployed enterprise'wide.
Top BI vendors and tools they offer
The $usiness intelligence (BI) tools mar&et is $ustling with
"endors and products. The top BI tool "endors include IBM(
Microsoft( Oracle( S+S Institute( and S+,. The one prominent
Indian BI tool "endor is M+I+ Intelligence.
(endor BI tool
IBM IBM Cognos Series 78
M+I+ Intelligence 793: +gile BI Suite
Microsoft Microsoft Integrated BI offering
Oracle Oracle Business Intelligence
3nterprise 3dition ,lus
S+S Institute S+S Business Intelligence
S+, S+, Business O$5ects(
S+, ;et.ea"er BI
!urther reading
/efinition# .hat is $usiness intelligence<
Tip 1i"e ways to 5ustify BI in"estment to your C1O
!eature BI 4OI calculation# Issues and methodology
Tutorial Business intelligence ( BI ) certification guide
)ews = predictions for the hottest BI trends in >877
)ews Outloo& for BI in the cloud
Tip Implement an open source BI tool ( head to toe
)ews Indian BI mar&et to grow $y 7=? in >877 !artner
)ews :ahoo deploys open source BI tool made in India
Tip .hy does BI e)cel reporting tools<