Just back from a business intelligence summit this week, I’ve been pondering the protestations of some business owners I know when the topic of BI solutions comes up. The most common responses I hear are:
1. We already have a great set of reports that I get on my Blackberry every day.
or
2. BI solutions are for multi-million dollar companies.
I have learned that if I hear either reaction, I am likely better off just smiling and changing the subject; although, I can’t help wanting to change the world for these business owners by educating them just a little.
There is a difference between information and intelligence. I can’t say that the owner who gets reports daily on his Blackberry doesn’t mine his data looking for answers to questions, but many times it is the case.
To best understand the difference between information and intelligence I think we should consider whether we as business owners are trying to change the bottom line or the top line.
In many cases controlling the bottom line comes from monitoring traditional key performance indicators for our industry or area of operations. This is where we rely on canned reports. The questions are already known, already predefined…the industry standard controls for the business process. That’s why they are canned reports. If that’s all the business is gleaning from it’s data, then there is no business intelligence initiative at work. Information. Monitoring.
Webster’s Dictionary defines intelligence as a (1) : the ability to learn or understand or to deal with new or trying situations : reason; also : the skilled use of reason (2) : the ability to apply knowledge to manipulate one’s environment or to think abstractly as measured by objective criteria (as tests)
Intelligence helps us apply knowledge and manipulate our business operations or climate dealing with new situations.
If we believe that innovation not only leads to success but also involves change, then how can we learn or understand about new situations if we don’t have the ability to ask questions of the data?
If all we have are the same canned reports that came with our software package, then how can we understand the results of the innovation that didn’t come in the box?
If we’re trying to improve top line performance, then we are designing the questions as we go. Each new answer usually prompts more questions. What is the root cause? What will happen if we…? Intelligence. Learning.
Without ad hoc query tools, answering such questions can be an expensive laborious effort which may kill growth initiatives.
Today there are tools for businesses at every stage that assist with business intelligence at the right cost and mix for the current stage of the organization. In my opinion they are critical tools for businesses that want to grow.