It was in the 1970 book Future Shock that Alvin Toffler first coined the term ‘Information Overload’. Almost four decades later the phrase has more meaning than ever before.
We are inundated with information in various forms and it is supplied to us in more possible ways than Toffler could have possibly imagined.
At the same time employees have to deal with constant interruptions – from incoming e-mails to RSS feed alerts, SMS’, and instant messaging. In such an environment, how can employees remain focused and still be efficient?
One way is to ensure that the systems that provide the information are capable of supporting us in ways that allow us to deal with the interruptions.
What we need are systems that provide the most accurate, topical and current information when we need it.
The systems must also be able to cope with the myriad technologies involved in creating, storing and supplying information.
Business Intelligence (BI) solutions are a proven method of streamlining this process of information management.
The core concept behind BI technologies is to consolidate all available data across a business into a single source — a reliable data warehouse from which information can be accessed for query and reporting purposes to facilitate decision making.
The Business Intelligence Enablement Loop is a practical five stage iterative process which addresses the use of BI technologies in organisations. It optimises the way information is used, enabling a nimble response in day-to-day decision making while always maintaining one eye of an organisation’s overall vision.
Stage 1: Set Direction Setting the direction is the most important stage of the BI Enablement Loop as this creates the basis for the future of the business.
BI systems are designed to deliver far more than mere financial data. Drawing information from every part of the business, and even from external sources such as marketing information and government-provided statistics, BI offers a holistic view of performance.
As an example, to identify the most valuable suppliers to a business, BI makes it possible to look beyond those suppliers who provide the lowest purchase cost material and to also consider those suppliers with least defects and lowest total cost.
The use of a well implemented (and well used) BI system at a planning stage builds on organisational knowledge, lowering risk as the overarching corporate vision is locked in.
Stage 2 Set Strategy and Measures With the business direction set it is time to consider the strategy and measures that will get you there.
Clearly stated performance measures should be implemented across the organisation to help monitor each strategic initiative.
Many organisations use methodologies such as the Balanced Scorecard to set the performance management framework but no matter how it is derived, the framework must incorporate all quantitative and abstract measures of true importance to the enterprise.
It is also important to recognise that a strategy is not a collection of key performance indicators (KPIs) and that unless aligned to the larger organisational direction, they become a potential distraction.
Only once the direction has been agreed can functional strategic initiatives and measures be set, creating a reporting environment that will act as a prompt to keep the business on track.
Stage 3 Perform With directions defined, strategic initiatives budgeted and planned for and corresponding measures all in alignment with the direction, the business is ready to perform.
It is now that the BI solution’s effectiveness can be tested by providing regular performance results in business friendly views.
To avoid the BI solution becoming yet another source of distraction for staff, security measures should be set up to ensure that each level of the organisation sees only the information relevant to their position. This means that some consideration must be given to keeping the information accurate, topical and current.
Business Dashboards are an excellent medium for operational information dissemination. Similar in concept to the dashboard on a car, a business dashboard is a single location where all the key measures of a stakeholder are displayed in real time.
The information is customised to suit each particular stakeholder’s needs, and can be “drilled down” into, so that viewers can access the underlying data.
As an example, a salesperson may see his current performance to quota, commissions, and team-based measures, whereas the regional sales manager will have access to consolidated team results, consolidated pipelines and even his region’s performance compared to national standards.
When a business is enabled with a BI system capable of presenting automated operational reports from a reliable and current data source, it frees up resources to concentrate on value-add activities. Managers receive information when they need it and when they want it.
IT staff are freed up to focus on other activities and business analysts get to spend more time analysing information rather than consolidating data.
Stage 4 Monitor with Measures The next step is to use the measures now being provided to keep the business focused on the right direction. A BI system with its targeted reports and personalised dashboards takes organisational communication to a higher level, allowing every staff member to see how they are performing.
This depth of communication can also be extended to external stakeholders. Using an extranet, the BI system can share information across the supply chain.
For example, suppliers can be provided with ongoing performance data that will help them to fine tune their product and service delivery.
Distributors, franchisees and even customers can be brought into this measurement process.
Stage 5 Learning By Stage 5, all that is left is the second most important part of the BI Enablement Loop – learning.
While learning should be a continuous process as an organisation moves through the BI Enablement Loop, it is important to periodically step back and evaluate where you have reached in comparison to where you wanted to go.
This is the time to study all aspects of overall performance and to reinvest this wisdom in the organisation in preparation for the next iteration of the Loop.
Every passage through the BI Enablement loop fine tunes the business processes by removing discrepancies. In theory, every iteration should take the business process one step closer to perfection. This is the same philosophy of most quality control mechanisms.
Summary
The BI Enablement Loop is a set of five stages that puts a structure to using BI technologies in any business process. It brings together proven scientific techniques with modern performance management thinking — powered by the efficiencies that a BI solution brings.
The five stages of the BI Enablement Loop can be used by any organisations, even if there is no formal BI solution in place. In fact, many companies have been doing just this for many years.
However, the overheads incurred in manual processes can be painfully slow, and are one of the main bottlenecks that BI solutions were designed to eradicate.
Adam Wright is Client Services Manager, ComOps
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