How Do Business Intelligence Tools Provide Value?
Business intelligence tools provide value consisting of two sides, material and non-material.
Material value can be directly calculated from current and future maintenace costs of active reports scheduled for replacement with BI tools. Reasons for changing active reports from source systems can be:
- inadequate report performance
- inadequate data integration
- long reporting cycles
- human efforts costs
Non material value is definitively improvement of Decision Supporting Systems (DSS) and Business Intelligence as a core solution supporting company DSS.
List of non material values provided by business intelligence tools:
- New and valuable data about enterprise
- Control of data and information mess by channelization and unification of information flow.
- Better and consistent support of Decision Making Process, result in better decisions.
- Advanced report and security management
- Forecasting functionalities
One very important fact when talking about value from business intelligence systems has to highlighted, if business intelligence is designed and or implemented in wrong way it will not generate value. Business intelligence will generate in this cases significant losses. Not only project has to be carefully taken care of but also processes, users, management, expectations, internal marketing and many other things need to be taken care also about.
At the end, business intelligence can provide additional value if handled with care, otherwise it is costly exercise. Do not go into adventure without proper preparation.