|By Jean Huy||
|August 14, 2012 12:00 PM EDT||
The term "Business Intelligence" and its acronym "BI" are so pervasive in today's data-intensive lexicon that it's a challenge to know just what to make of it. If you add in all the new trendy terminology such as business process management (BPM), data mining, data warehousing, business process automation, decision support systems, query and reporting systems, enterprise performance management, executive information systems (EIS), business activity monitoring (BAM), modeling and visualization, and so forth, your head can start spinning.
Here is a workable definition of BI that was provided in a Technology Evaluation report from a January 10, 2005, Technology Evaluation Centers article by Mukhles Zaman entitled, "Business Intelligence: Its Ins and Outs":
"BI is neither a product nor a system. It is an umbrella term that combines architectures, applications, and databases. It enables the real-time, interactive access, analysis, and manipulation of information, which provides the business community with easy access to business data. BI analyzes historical data - the data businesses generate through transactions or by other kinds of business activities - and helps businesses by analyzing the past and present business situations and performances. By giving this valuable insight, BI helps decision-makers make more informed decisions and supplies end-users with critical business information on their customers or partners, including information on behaviors and trends."
To put it in simpler terms, BI makes the right information available in the right format to the right person at the right time. Given that virtually all small and midsized businesses (SMBs) crave better information, the kind of information typically provided by a BI tool, the real question is how much of this technology constitutes a good investment of time and energy? Most of the industrial-strength, BI-related tools cater more to the larger enterprises whose business structures are highly complex and whose budgets can accommodate the lofty implementation expenditures. While many of these vendors would like you to think that their pricey, high-end solutions are absolutely necessary for the SMB sector as well, our research indicates otherwise.
Based on the size of your company and budgetary constraints, your goal is to determine what BI tools you really need to drill down and extract the key performance data that will make your company more efficient and profitable.
To start, we recommend that you leverage your existing technology and find cost-effective, easy-to-use BI solutions that integrate with your Microsoft Office Suite. That should be quite sufficient to get you the intelligence you need to significantly boost your bottom line. The real question is how much of BI technology constitutes a good investment of time and energy?
Cutting Through BI Mythology and Hype
To distill the BI discussion to its simplest terms, what businesses need most is the ability to find and extract key information that identifies their strengths and weaknesses and helps them make better decisions. They also want this information to be presented in a timely fashion and in a way that business people can understand.
Given this modest objective, SMB companies must filter through the hype emanating from many BI application vendors who claim that they should invest in higher-priced, industrial-strength BI solutions to achieve their goals. Below, we will attempt to dispel some of these myths and offer some guidance on how to make the right purchasing and implementation decisions for your business.
Myth #1: You really need a "cube-based" OLAP BI solution
Many vendors want you to believe that in order to make the best possible business decisions;
Sure, this makes sense if you are a Fortune 1000 company with numerous divisions and databases and highly complex reporting requirements. Oh, and you've got mega-bucks to spend on trying out different BI solutions that will take a long time to implement and much more time to learn and use. We know that a cube-based OLAP tool does enable end-users to slice and dice their data, perform multi-dimensional analysis, present information in graphs and charts, and more. However, there is a high cost associated with maintaining these cube-based systems. For example, every time a new dimension is added to a multi-dimensional analysis, one has to make changes to all cubes that would use that dimension. Of course, one needs access to very high level programming skills to do that, not to mention the budget to support this approach.
On the other side of the equation are reporting tools such as Crystal Reports, FRx, and F9, which fall into the category of transaction system reporting. If you want to know your current inventory levels or the balance of a receivable account or even a comparison of these indicators over a specific period, these tools are fine. But if you're looking for actionable intelligence that will add considerable value to the decision-making process, you need more than simple reporting tools.
The best approach to BI for SMB companies lies somewhere between these two approaches. The optimal position is one of information balance, existing between formal cube-based systems and simple report writers. The right tool must be able to deliver multi-dimensional analysis, graphing, charting, and more, for a fraction of the cost of an expensive OLAP solution. Moreover, the tool should be modifiable by a user without requiring extensive programming skills.
Make no mistake - having access to an analytics tool can be a very powerful component of your BI plan. Analytics enable end-users to transform data into information, and then get that information into the right hands and in the correct format to facilitate timely decision-making. This can help companies increase customer satisfaction, decrease costs, and increase revenues. However, there is a misconception that SMB companies must invest a small fortune in industrial-strength analytics. In reality, these companies are more interested in the macro view of their business (which BI can deliver), rather than getting so close to the actual transactions that you lose the departmental or company-wide perspective (needed for smarter decision making).
For these companies, it's usually quite sufficient to perform data analysis covering predetermined periods of time - say, months, quarters, or years. Typically, you are examining trends or comparisons of results between periods, meaning that you really don't need to pay for overly expensive applications that deliver high-powered analytics. We contend that the level of investment required for an expensive analytics solution is more the province of the larger company than the SMB market.
Myth #2: You need to toss out all your spreadsheets
With all the high-priced applications now available in the fragmented BI marketplace, it's easy to see why many vendors would scoff at the idea that your basic Microsoft Office Suite is quite adequate as a key component of your BI solution. They don't want you to know that the most widely used BI tool today is an Excel spreadsheet. Almost everyone in the corporate world is familiar with Excel, its minimal learning curve, and the fact that the application leverages a company's existing software solutions. Excel is often used to track expenses, create budgets and forecasts, and create reports from that data. Plus, Excel tools offer many useful features such as graphing, charting, and pivoting, which assist decision-making.
Since many of today's more affordable BI solutions integrate seamlessly with Excel, there is absolutely no reason to abandon this trusty tool that you have relied on for so long. As long as you can access the right data that can help you measure your company's operational performance, the spreadsheet is still the way to go. Of course, if you are accessing data from disparate databases whose information is out of sync, then it won't matter what BI solution you use; you're not going to get accurate results.
Myth #3: You really need to invest in a BI solution to achieve airtight compliance with Sarbanes-Oxley
The Public Company Accounting Reform and Investor Protection Act of 2002 (also known as the Sarbanes-Oxley Act of 2002) was passed by U.S. lawmakers to reinforce honest and transparent corporate practices in the wake of various public accounting scandals and corporate failures. As with any far-reaching legislation of this magnitude, there is plenty of hype that has emerged in connection with this law. Let's clear up the picture as it relates to BI software and compliance with Sarbanes-Oxley.
For starters, here are two facts to consider: 1) The Act applies only to U.S. public companies and, 2) There is no software application certification provided under the Act. This means that you can't achieve compliance with this Act by simply buying some BI tool. If you are concerned with Sarbanes-Oxley compliance or want to tighten your internal controls as a result of renewed focus on this area, there are software tools that you can utilize in concert with proper management of your internal processes, for reporting, auditing, and disclosure. In general, well thought-out applications can help you in your compliance efforts by making information more accessible and more transparent, and by highlighting anomalies.
A combination of accounting and BI-related reporting tools can serve as a vital part of your overall internal control compliance strategy. As you determine how to respond to the new challenges imposed by Sarbanes-Oxley, there is little doubt that much of your attention will be focused on managing, protecting, and reporting on the data that at some point passed through your accounting system.
One BI tool that can serve this process admirably is an "Alerts" solution that integrates with your accounting system. Using alerts and special triggers, your organization can automatically generate e-mails, launch reports, or generate system warnings without the need for human intervention.
While no software application alone will make you compliant, the right mix of accounting and BI applications can work in conjunction with your internal policies, compliance programs, and other technology investments to increase the transparency of financial events, ensure distribution of critical information in a timely manner, and provide the peace of mind you need on matters of security and access.
Guidelines for a High-Performance, Low-Cost BI Solution
Let's take a closer look at what really matters to small and midsized businesses as far as investing in a BI solution. We contend that most SMB companies need little more than their MS Office Suite and a mix of affordable, easy-to-use BI tools. These tools can help you drill down to the key performance indicators which identify your strengths and weaknesses in operational performance, marketing, and sales-the key components to optimizing efficiency and profitability.
Equally important, the BI tools you implement must be easy to use and learn and must be able to present data in a way that everyone can understand. If you have access to BI tools that can convert all of your key performance data into easy-to-understand terms that management can fully grasp, you have a tremendous opportunity to boost bottom-line performance and overall profitability.
Conversely, if your proposed BI solution is hard to grasp, it likely won't contribute much to your objective of locating and analyzing key, actionable data that can help your business run smarter. Whatever solution you choose, make sure that all of you can figure out how to get the most out of it without needing a PhD. This cannot be overemphasized!
Key Components of a Cost-Effective BI Solution
As you contemplate a cost-effective BI solution for your company, you should make sure that the integrated software delivers most, if not all, of the functions listed below at a price point that fits your company's budget:
Alerts: Alerts provide crucial monitoring, proactive notification, and automation capabilities that help your company adapt to changing conditions and avoid alarming scenarios pertaining to payables, receivables, budgets, sales, and inventory. With alerts functionality in place, you can pre-set a wide variety of benchmarks in all of these areas and protect yourself from missing key time- or date sensitive events or failing to respond to deviations from acceptable levels.
Inquiry: Having an easy-to-use inquiry tool enables you to drill down into a specific area and quickly extract data that is essential to your business. For example, if you need to examine sales trends by region over the last 12 months, identify the top 5 customers for the quarter, or locate the top 10 bestselling items for the last month, this type of BI tool will serve you well.
Multi-dimensional analysis tool: SMB companies want the ability to bring in data from multiple locations and still be able to see a unified macro view of the entire enterprise. Analysis software should help you achieve this goal - providing a quick snapshot of your business and enabling you to drill down into sales and purchasing trends, as well as perform budget analysis. Some of these solutions offer Dashboards - The term "dashboard" has become omnipresent in the ever expanding BI lexicon. An effective dashboard is a graphical snapshot of your business's health that is easy to understand. Some common categories of data (often from Excel) feeding the dashboard are revenues by period, product sales by category, actual vs. budgeted financial indicators, and expenses by category, just to name a few. The good news is that you can take full advantage of affordable BI solutions that offer this type of functionality.
If your proposed BI solution is hard to grasp, it likely won't contribute much to your objective of locating and analyzing key, actionable data that can help your business run smarter
Quick KPIs: Whether analyzing business performance vs. another company or between divisions within your company, quick access to key performance indicators enables you to see how your business is measuring up at any moment in time. This type of solution should possess the capability to compare financial models and actual performance vs. budget and forecast numbers for different time periods. In addition, it should enable you to quickly establish benchmarking of results vs. competitors over varying time periods. Finally, you should be able to export any KPI report or model to Microsoft Excel or Word.
Graphical presentations of data: Viewing data in graphical format makes the process of analyzing performance much quicker and easier. Make sure that your BI solution incorporates customizable graphical views of your data in grid, pivot table, and interactive chart formats. This should be a standard feature, not an accessory.
Flexible reporting capabilities: The ability to create and generate reports (including exception reports) that accurately reflect your company's key performance data is crucial as is the ability to customize these reports and display them graphically, if needed. In addition, you should be able to export these reports to an Excel worksheet or include Excel spreadsheet data in these reports.
Remote access: Most decision-makers conduct a significant portion of their business while out of the office. So, it is essential that they have remote access to a wide range of their company's vital business data any time they want via the Internet. Make sure your BI solution enables you to access your KPI's such as sales, product and customer analyses, income and balance sheets, and inventory reports whenever you are out of the office.
Report automation: In order to stay ahead of the competition, most SMB companies can't afford to sit back and wait for their IT or accounting departments to provide the information they need to make informed decisions. They must be proactive in automating their entire reporting process - from creation to generation to distribution of reports across the entire enterprise. Armed with streamlined, high volume reporting, these companies are equipped to respond to ever-changing market conditions and make the best possible decisions that impact the health of their business.
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carriers, thus providing a global perspective of the end-user experience. Site24x7 supports monitoring H...
Apr. 19, 2015 02:30 AM EDT Reads: 1,820
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
Apr. 19, 2015 02:15 AM EDT Reads: 2,386
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
Apr. 19, 2015 02:00 AM EDT Reads: 993
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
Apr. 19, 2015 02:00 AM EDT Reads: 3,140
SYS-CON Events announced today that Tufin, the market-leading provider of Security Policy Orchestration Solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. As the market leader of Security Policy Orchestration, Tufin automates and accelerates network configuration changes while maintaining security and compliance. Tufin's award-winning Orchestration Suite™ gives IT organizations the power and agility to enforce security policy across complex, multi-vendor enterprise networks. With more than 1...
Apr. 19, 2015 01:45 AM EDT Reads: 3,301
VoxImplant has announced full WebRTC support in the newest versions of its Android SDK and iOS SDK. The updated SDKs, which enable audio and video calls on mobile devices, are now compatible with the WebRTC standard to allow any mobile app to communicate with WebRTC-enabled browsers, including Google Chrome, Mozilla Firefox, Opera, and, when available, Microsoft Spartan. The WebRTC-updated SDKs represent VoxImplant's continued leadership in simplifying the development of real-time communications (RTC) services for app developers. VoxImplant (built by Zingaya, the real-time communication servi...
Apr. 19, 2015 01:45 AM EDT Reads: 1,817
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
Apr. 19, 2015 01:00 AM EDT Reads: 1,498
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables cloud service providers and enterprises to build reliable, affordable and scalable cloud storage solu...
Apr. 19, 2015 01:00 AM EDT Reads: 2,377
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Apr. 19, 2015 12:45 AM EDT Reads: 4,246
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
Apr. 19, 2015 12:00 AM EDT Reads: 4,924
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from ...
Apr. 18, 2015 11:30 PM EDT Reads: 2,357
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Apr. 18, 2015 11:15 PM EDT Reads: 5,602
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Apr. 18, 2015 11:00 PM EDT Reads: 3,672
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
Apr. 18, 2015 10:45 PM EDT Reads: 4,830
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Apr. 18, 2015 09:45 PM EDT Reads: 2,282
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Apr. 18, 2015 09:30 PM EDT Reads: 2,496
SYS-CON Events announced today that On the Avenue Marketing Group, a sales and marketing firm that utilizes events to market and sell products to consumers, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. On the Avenue Marketing Group (OTA) is a sales and marketing firm that utilizes events to market and sell products to consumers. On behalf of our clients, we attend thousands of fairs, festivals, expos, concerts, conferences, and sporting events annually, helping them reach millions of individuals ...
Apr. 18, 2015 09:15 PM EDT Reads: 3,141
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that prevent them from doing so. The Company is uniquely positioned to help address these challenges thro...
Apr. 18, 2015 09:00 PM EDT Reads: 2,735
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Apr. 18, 2015 08:45 PM EDT Reads: 2,423
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® and DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 18, 2015 08:30 PM EDT Reads: 1,760