bi_cornerstones_gartner

Gartner©2004Gartner,Inc.and/oritsAffiliates.AllRightsReserved.Reproductionofthispublicationinanyformwithoutpriorwrittenpermissionisforbidden.Theinformationcontainedhereinhasbeenobtainedfromsourcesbelievedtobereliable.Gartnerdisclaimsallwarrantiesastotheaccuracy,completenessoradequacyofsuchinformation.Gartnershallhavenoliabilityforerrors,omissionsorinadequaciesintheinformationcontainedhereinorforinterpretationsthereof.Thereaderassumessoleresponsibilityfortheselectionofthesematerialstoachieveitsintendedresults.Theopinionsexpressedhereinaresubjecttochangewithoutnotice.DecisionFramework,DF-21-9470T.Friedman,B.HostmannResearchNote26April2004TheCornerstonesofBusinessIntelligenceExcellenceBusinessvalueisthemeasureofsuccessofaBIinitiative.FocusingonthemetricsandalignmentdefinedbytheBIvalueframeworkandfollowingthebestpracticecornerstoneswillmaximizepaybackandminimizerisk.Successwithbusinessintelligence(BI)isdeterminedbythedegreeofbusinessvaluedelivered.ThemeasuresofbusinessvaluedefinethecornerstonesofBIexcellence.ThecornerstonesarepresentedinthecontextofanewBIvalueframework.TheBIvalueframeworkunitestheBIframework(seeTheBIFrameworkProvidesReturnonIntegration),whichenablesorganizationstoaligntheirvariousBIinitiatives,andthefivepillarsofbenefitsrealization,whichdefinetheconnectionsbetweenthebusinesscontextandITinvestments(seeTVOMethodology:ValuingITInvestmentsviatheGartnerBusinessPerformanceFramework).Thecombinedmodel,intheformoftheBIvalueframework,providesthebasisforpresentingthecornerstonesofBIexcellencemeasuredintermsofbusinessvaluedelivered:•TheopportunitytomaximizepaybackontheBIinvestmentThemandatetominimizeriskEachleveloftheframeworkhasmeasuresofbusinessvaluealongthesetwodimensions.Thehigherthelevelintheframework,thehigherthepotentialformaximizingpaybackandminimizingrisk(seeFigure1).However,atthehighestlevels,thebusinessvalueismorecomplexanddifficulttoquantifyaccurately.CoreTopicBusinessIntelligenceandDataWarehousing:BusinessIntelligenceKeyIssuesHowcanthevalueofbusinessintelligencebedeterminedandmeasured?Howcanbusinessintelligenceimprovethemeasurementandmanagementofproductivityandprofitability?Whatarethebestpracticesforbusinessintelligence?Whatstrategiesandmethodologieswillenterprisesadopttosucceedwithbusinessintelligence?©2004Gartner,Inc.and/oritsAffiliates.AllRightsReserved.DF-21-947026April20042StrategyLevel:HowdoesyourBIinitiativelinktostrategicbusinessobjectivesanddrivealignmentacrossbusinessprocessestowardthoseobjectives?AswithanyITinvestment,thedegreetowhichitsupportsthestrategicgoalsandobjectivesofthebusinessisacriticalfactorinthemagnitudeofthebusinessimpact,acceptanceandultimatesuccessoftheeffort.LinkagebetweenbusinessstrategyandBIstrategywilldrivealignmentacrossprocessestowardtheobjectivesofthebusiness.MaximizePayback:AlignmentAtthetacticallevel,BIcanhelpenterprisesoptimizetheirbusinessprocessesbyidentifyingwhattrends,anomaliesandbehaviorsneedmanagementaction.Atthestrategiclevel,BIcanprovidesignificantlymorebusinessvaluebyaligningmultiplebusinessprocesseswithstrategicbusinessobjectivesthroughintegratedperformancemanagementandanalysis.MostFigure1TheBIValueFrameworkInfrastructureDataWarehouse,OperationalDataStore,ETL,DataQuality,MetadataApplicationsandFunctionalityBISuites,BIPlatforms,ReportingStrategic/Operational/AnalyticalApplicationsOrganizationProcessStrategyGlobalization,Virtualization,TransparencyPerformanceMgmt.,MethodologySkills,BICompetencyCenterEfficiencyEffectivenessImpactAlignmentMaximizePaybackRigidityRedundancySilosLiabilityBIBusinessValueDriversTheBusinessIntelligenceFrameworkStakeholdersERPLegacyandOtherMinimizeRiskSCMCRMCRMcustomerrelationshipmanagementERPenterpriseresourceplanningETLextraction,transformationandloadingSCMsupplychainmanagementSource:GartnerResearch(April2004)©2004Gartner,Inc.and/oritsAffiliates.AllRightsReserved.DF-21-947026April20043businessschoolsviewthisalignmentandoptimizationasthekeytocompetitiveadvantage.CornerstonesDefineandagreetowell-articulatedbusinessobjectivesandkeyperformanceindicatorstomeasurebusinessprocessperformanceEstablishandenforceBIstandardsinstrategicprocesses(suchascorporateplanningandcontrol),aswellasoperationalbusinessprocessesIdentifyahigh-levelbusinesssponsororsteeringteamthatsetsthepriorities,governsandfundstheproject,commitstheresourcestomatchthescopeoftheproject,andauditstheresultsMinimizeRisk:ReduceExposuretoLiabilityInadditiontoimprovingalignment,anintegratedviewofkeyprocessesandmetricscanreduceliabilityexposurebyincreasingvisibility—thatis,therightpersonseestherightdataattherighttime.BIcanprovidebusinessvaluebyhelpingenterprisesidentifyrisksearlyandidentifyingmaterialchangesinbusinessconditionsthatrequireattention.Theresultisthatenterprisesimprovethequalityofinformationneededforregulatorycomplianceandstakeholdercommunications.CornerstonesIdentifyanddefinematerialrisksandassociatedprerequisiteeventsandconditions;assesstheorganization'stoleranceforaBIinitiativefailure,andidentifytheriskpointsforfailureorunderachievementEnsurethatkeyman