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Successful Business Intelligence: Unlock the Value of BI & Big Data

Cindi Howson · 2013

In a sentence

A practitioner's guide to why some organizations unlock extraordinary value from business intelligence and big data while others flounder, grounded in survey research and in-depth case studies.

Drawing on a survey of 634 BI professionals and in-depth case studies of leading organizations like Netflix, Macy's, Medtronic, FlightStats, Dow Chemical, and Constant Contact, Cindi Howson argues that successful business intelligence is far less about technology than about people, culture, executive support, business-IT partnership, data quality, relevance, and organizational agility. The book demystifies the technical architecture (data warehouses, ETL, Hadoop, analytic appliances, in-memory engines) and front-end tools (dashboards, visual data discovery, OLAP, mobile BI) just enough for business readers, then devotes its core to the human and organizational factors that catapult a BI initiative from moderate to wild success. With its 'LOFT effect' framework (Luck, Opportunity, Frustration, Threat) and ten secrets to success, the book offers both inspiration and practical lessons for anyone struggling to turn data into action and measurable business impact.

The four lenses

  • Science
  • Statistics
  • Systems
  • Strategy

The model

A model expressing how design levers (executive support, business-IT partnership, data foundation, relevance, agile development, tool fit, organizational structure) and contextual catalysts (the LOFT effect) drive psychological and behavioral states (analytic culture, fact-based decision-making, action on insight, BI adoption) that produce outcomes (BI success and business impact).

Executive Support and Sponsorshipdesign lever

The degree to which influential senior executives sponsor, champion, fund, and remove barriers for the BI initiative and use BI themselves to set an example, ideally sponsors with strong business influence.

Business-IT Partnership and Alignmentdesign lever

The extent to which business and IT personnel work as partners rather than adversaries, including the presence of hybrid business-IT professionals and alignment of BI strategy with business goals.

Data Foundation Quality and Breadthdesign lever

The breadth, quality, timeliness, and architectural soundness of the underlying data, including master data management and right-time data feeding the BI environment, recognizing data need not be perfect to be useful.

Relevance and Personalizationdesign lever

The degree to which BI delivers information that is meaningful and personalized for each user's job or task, extending reach beyond power users to frontline workers, customers, and suppliers.

Agile Development Practicesdesign lever

The use of agile, iterative, collaborative development techniques to deliver BI capabilities and improvements at a pace commensurate with business change, rather than slow waterfall approaches.

BI Organizational Structure and Talentdesign lever

How BI teams and experts are organized for success, including steering committees and competency centers, the balance of enterprise versus departmental BI, and the caliber of people on the team.

Right BI Tool for the Right Userdesign lever

The degree to which appropriate BI tools (query, visual discovery, dashboards, mobile, production reporting) are matched to user segments and operate within IT-supportable standards.

LOFT Effect (Luck, Opportunity, Frustration, Threat)contextual condition

Contextual catalysts—luck, business opportunity, organizational frustration or pain, and competitive or regulatory threat—that intensify motivation and propel a BI initiative from moderate to wild success.

Analytic, Fact-Based Culturepsychological state

An organizational culture that values data as a critical asset, fosters fact-based decision-making, openly shares performance data, and supports those who challenge the status quo.

Action on Insight (BI Adoption and Use)behavioral pattern

The behavioral pattern by which people across the organization access, interact with, analyze data, and actually take action on insights, reflected in adoption rates and active usage.

Perceived BI Successoutcome metric

The overall perceived success of the BI deployment, rated along a spectrum from mostly a failure to very successful, reflecting how well the BI solution meets expectations.

Business Impact and Performanceoutcome metric

The degree to which BI contributes to company performance and tangible outcomes such as revenue, cost savings, efficiency, customer service, patient outcomes, test scores, and ROI.

How they connect

  • executive support influences analytic culture
  • executive support predicts business impact
  • business it partnership predicts bi success
  • data foundation influences action on insight
  • relevance predicts action on insight
  • tool fit influences action on insight
  • agile development influences bi success
  • organizational structure influences bi success
  • analytic culture predicts action on insight
  • action on insight predicts business impact
  • bi success correlates business impact
  • loft catalyst moderates business impact
  • action on insight predicts bi success

A candidate measure

Successful Business Intelligence: Unlock the Value of BI & Big Data — derived measurement candidates

Executive Support and Sponsorship

Sponsor seniority/role; Sponsor on operating committee (yes/no); Budget approvals; Sponsor BI usage frequency

self-report suitability: high

Business-IT Partnership and Alignment

Count of hybrid roles; Perceived partnership quality; Alignment rating

self-report suitability: high

Data Foundation Quality and Breadth

Number of source systems; Update frequency; Data quality error rates; MDM presence

self-report suitability: medium

Relevance and Personalization

Self-reported relevance; Adoption rate by job type; Personalization features in use

self-report suitability: high

Agile Development Practices

Cycle time to deliver capability; Release frequency; Agile adoption indicator

self-report suitability: medium

BI Organizational Structure and Talent

BICC presence; Team skill assessment; Analytics function reporting line

self-report suitability: medium

Right BI Tool for the Right User

Ease-of-use rating; Adoption per tool by segment; Number of supported standards

self-report suitability: medium

LOFT Effect (Luck, Opportunity, Frustration, Threat)

Presence/absence of identified LOFT elements; SWOT opportunity/threat catalog

self-report suitability: medium

Analytic, Fact-Based Culture

Culture survey of fact-based norms; Frequency of data-cited decisions

self-report suitability: high

Action on Insight (BI Adoption and Use)

Percentage active users; Report access frequency; Adoption rate vs potential

self-report suitability: medium

Perceived BI Success

Success rating category; Stakeholder satisfaction

self-report suitability: high

Business Impact and Performance

Revenue/cost changes; Process time reductions; Outcome metrics (wait times, test scores); ROI

self-report suitability: medium

Run the assessment

The story

The reader A BI director, executive sponsor, or business-IT professional who wants to turn their organization's data into measurable business value and competitive advantage.

External problem

The organization has amassed data but is not exploiting it; BI usage remains modest and untapped potential is high.

Internal problem

They feel frustrated by information overload, organizational obstacles, and the inability to get relevant data to the people who need it.

Philosophical problem

It's just plain wrong for a company to be 'flying blind' and making gut-feel decisions when data could empower people to act, improve performance, and even make the world better.

The plan

  1. Measure success in multiple ways, using objective measures when available.
  2. Use the LOFT effect to identify high-impact BI applications.
  3. Garner and sustain executive support to foster an analytic culture.
  4. Align BI strategy with business goals via a strong business-IT partnership.
  5. Build a solid data foundation and improve it incrementally.
  6. Evangelize BI and find its relevance for every worker, customer, and supplier.
  7. Use agile development to deliver at the pace of business change.
  8. Organize BI teams for success and choose the right tools for the right users.

Success

  • BI reaches all corners of the organization—up to 100% of employees plus customers and suppliers.
  • People take action on insights to improve financial performance, customer service, efficiency, and outcomes.
  • The organization finds insights faster, does more with less, and works in a culture where everyone works as a team.

At stake

  • The organization sits on wells of untapped potential—'data wastelands'—and floods its people with useless information.
  • BI provides only limited value, and the company makes suboptimal, gut-feel decisions while competitors gain advantage.
  • BI initiatives stall amid political battles, frustration, and lack of executive vision.