Implementation of Business Intelligence Failure Causes

There are many several factors that should be avoided so that the implementation of business intelligence in organization's success. It is very important to note because the business intelligence implementation efforts will usually require the resources ( money , time, energy ) are relatively large . These factors are :

a. Planning undercooked implementation business intelligence can not succeed without careful planning . These conditions include a lack of consistency shown by the support of the leadership of the business intelligence project itself and the low level of cooperation between the parts in the organization in an effort to materialize the business intelligence.

In addition to the above, the lack of clarity of the information needs to be obtained from the business intelligence development also has the potential to reduce the level of success . Before implementation  the organization concerned must be able to define what information is needed , the data that need to be analyzed , and where are these data are managed . Then , who are associated with the needs analysis and how are they expected information . All of them must be clear before the start of the development of business intelligence.

b . Data quality is not good business intelligence will not be used properly if the data to be analyzed is the data that is not of good quality it . Data will result in unfavorable information in decision-making ( garbage in = garbage out concept)

c . The lack of anticipation of changes in the organization business intelligence system often - times and their implementation needs and organizational changes should anticipate this . Changes that occur in any organization also requires anticipating the business intelligence system used . For that organizations should take into account the resources needed.

d . Procurement business intelligence system that one stop shopping Up to now, there is no ready-made business intelligence system for all types of organizations that need them . For the procurement of business intelligence in organization requires a continuous improvement process and not just the purchase of a system that once purchased can be used permanently without improvement . Needs such as servers and network infrastructure must also be accommodated because it will continue to evolve to adjust the amount of data to be stored.

e . Just rely on the business intelligence development outsourcing the most crucial factor in the development of business intelligence in an organization is clear how the work processes of the

organization concerned and where the data and information stored or managed organization . In addition, a clear understanding of the goals and strategy of the organization , the history of its development , as well as the wearer profile also be important information . Outsourcing party ( vendor ) business intelligence is not possible to know the complete and detailed information download genai these things on their own without the help of employees of the organization concerned.

Business intelligence outsourcing party only acts as a force that helps make the system , but the shape of the system and the needs of what is needed only organization that knows well. See also Implementation of Business Intelligence.

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Implementation of Business Intelligence

Approach Implementation of Business Intelligence
In building and implementing Business Intelligence - right in an organization , there are three (3 ) approaches that can be used . Each of these approaches has strengths and weaknesses , where the choice of the strategy based on the condition and needs of the or
ganization that would lay awake Business Intelligence . The approach is as follows :

a. Top-down Approach
Top-down approach is very appropriate for an organization that will build business intelligence which at the same time or the organization of the well - be doing ineering thoroughly in all aspects of the organization . In this approach , a comprehensive data warehouse framework (enterprise data warehouse ) must be arranged in advance , and then followed by a departmental data warehouse ( data marts ) . Excess of this approach are : direct business intelligence. Development includes data throughout the organization - Business Intelligence Framework will be structure , not a combination of various data marts ( partial data ) - into a centralized data storage - Control can be done in a centralized information The weakness of this approach which must are : - a longer implementation time - a relatively high risk of failure because of its complexity

b . Bottom - up Approach
Contrary to the approach before her , in a bottom-up approach to business intelligence that will be compiled instead of the level of de - partemental ( departmental a data ware - house ) and then integrated into the data warehouse organization throughout the whole way. This approach is very appropriate for needs organization that prioritize the development of business intelligence in a department first. Then, after the success in the department will continue to other departments . The advantages of this approach are : implementation easier to manage and more quickly show results.

c . Tactical Approach
This approach combines all the previous two approaches to get the excess. In this approach , the development of business intelligence in an organization starts with planning and defining the architecture of the data warehouse needs of the organization as a whole ( standardization ) . Only then will are carried out a series of business intelligence making in each department in need. If you don’t know what is the business Intelligence please read Introduction to Business Intelligence.

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Business Intelligence Report

Business intelligence reporting and data warehousing are two different things but can hardly be separated . Data warehouse business intelligence  ways on how the data is stored in a large and diverse one repository and so arranged that facilitate the search , while the business intelligence is a technology used to present these data to facilitate analysis and decision-making Based on the accurate information of data source. A good Business intelligence solution requires a data source is a data warehouse .

Business intelligence reports was born to meet the challenges that can not be met by the reporting standards , which are related to four issues of accessibility , timeliness , format , data integrity . Business intelligence has a direct connection to the data warehouse so that accessibility and timeliness make things that can be done . Users always have access to the information needed ( accessibility ) quickly ( timeliness ) .

Business intelligence provides our freedom to the users to define the format of the report will, while the data integrity met by business intelligence data warehouse where it is executed . One of the advantages of business intelligence is to pamper users with data structures that facilitate the creation of the report is self-service in terms of dimensions and measures .

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Business intelligence in the retail industry

Observing the growth of business intelligence in the retail industry, customer relationship management (CRM) as a primary driver in the astute business people to redesign their business intelligence focus on the customer. Retail companies generally have a large customer and the customer generally has different desires. 

With the implementation of CRM is the management can automate interactions with customers and sales teams and can analyze customer data obtained f
rom the POS transaction, customer service, and others so that management can gain insight to customer needs and develop a relationship of one-to-one with customers, design and promotion campaigns, optimization of product layout. Analytical CRM using business intelligence tools such as data warehousing, data mining, and OLAP.

Some use of analytical CRM is customer segmentation, analysis of the effectiveness of promotions, customer lifetime value, customer loyalty analysis, cross-selling, the price of the product, and target marketing (Hair, 2007). Some retailers started to invite the buyer who has not become a member by issuing a card, in collaboration with the bank by providing rebates, etc.

The management business intelligence in the retail industry started to realize the importance of getting a comprehensive customer data, where the data can provide information such as customer characteristics (age, sex, marital status, education, occupation, income per month). 

Customer behavior (input from customer-related products and services, customer recommendation of related products and services, substitute products are used by the customer, customer loyalty to the service of a brand of a product), and customer spending (purchase price, quantity, frequency of repeat purchases, customer wishes to buy other products and services from a particular manufacturer, etc.)

Based on customer segmentation performed by Shuwen Zhou and Guanghong Lei (2011) concluded that:

1.Category 1 are customers who work in offices as professionals and managers and have a fairly high education, have a house and a car. Based on the information obtained, customers in this category do not have a baby, the annual income is not too high, but they love to shop especially "fashion". Focus on the consumption of this category is high-quality cosmetics, original CDs, magazines and household products in general. In general, they are not interested in buying food and drinks because income is high enough. Marketing strategies suitable for this category is to provide quality products and services higher to attract customers because customers who are not too keen about this category at discounted prices.

2.Category 2 are customers who work in the factory as workers and mechanics, and has a fairly low income, some have a home, shopping for food, household, toddler products. most of the women who love to the supermarket to buy more stuff. In general they are interested in a promotional discount, so the advantage is not too high.

3.Category 3 are customers who have low education, low income which is almost the same as a factory worker. In general, they buy more commodities at the time of substantial discounts. Marketing strategy for this category is to provide promotional discount of commodities thus more attractive customers.

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7 advantages of business intelligence

There are 7 main advantage of business intelligence that will provide value to the company are as follows:

1. Consolidation of information with business intelligence run inside the company, the data will be processed in a single platform and distributed in the form of useful information (meaningful) to the entire organization. In the absence of information asymmetry, collaboration and consolidation in the enterprise can be strengthened. With consolidation, it was possible in the manufacture of cross-functional and corporate-wide reports. Though it must be admitted, is also able to benefit provided by the ERP software.

2. In-depth reporting Software Business Process Management (BPM) is able to provide reports and analysis, but it is quite simple and just opposite the internal condition. While the Bank is able to provide information on issues larger businesses at the strategic level.

3. Customized Graphic User Interface (GUI) Some ERP is trying to create a user friendly GUI, but business intelligence step further by providing a GUI customization facility. So that the GUI is far from being technically and provide views of the business in accordance with the wishes of each user.

4. It's a bit of a technical problem due to its user-friendly operating minimize the possibility of user error, and business intelligence is the only software on the top layer (information processing) and not the business process management.

5. Lower procurement costs because business intelligence software that works only on the top layer of information processing, its software prices are not as expensive as ERP. Acquisition costs became cheaper than the ERP. Moreover, today many are also supported by the open source business intelligence products.

6. Flexible business intelligence databases opened the possibility to collaborate with ERP as a supplier of databases that will be processed into reports and scorecards, but BI can also work from the database are made separately. Business intelligence also be open for use by professional analysts and researchers, the database is processed are secondary.

7. Responsiveness other business intelligence properties not owned by the ERP is in terms of speed (responsiveness). For example, in calculating the service level as one of the Key Performance Indicator (KPI). business intelligence functionality will alert the user before the lower limit in the service level (lower limit) is exceeded. As a result, the problem can be addressed before it actually surfaced. One example pad responsive nessa healthcare industry, the use of business intelligence credited with preventing the spread of a disease / epidemic widely (outbreak).

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