The Multi-Tiered Gap in Business Intelligence

by Mike Psenka
June 12, 2008

The data needs of today's businesses are growing exponentially. With this demand for applications that can utilize and manage the steadily increasing amount of data generated, two distinct gaps have formed in the business intelligence (BI) market. First is the gap in functionality between simple desktop tools and enterprise-level systems. Second is the gap between the amount of data being produced and the number of decision-makers with the ability to access and leverage it. These gaps have materialized for many reasons but must be closed if organizations are to improve their efficiency. Using existing technology, the BI industry must redesign its systems to unlock the data inside organizations and deliver it to the masses.

Too often, choosing a BI tool means making sacrifices. Desktop applications are affordable, low-maintenance solutions that feature global ease-of-use and enterprise-wide accessibility. However, these simple applications lack the analysis capabilities and enterprise-level security necessary for handling large amounts of complex and sensitive data. Conversely, enterprise-level BI offerings are secure, powerful analysis and reporting tools that accommodate huge volumes of data. To successfully use these complex offerings, however, decision-makers must complete extensive training. Because only a limited number of decision-makers within each organization meet these requirements, access to critical business intelligence usually falls into the hands of a few.

Organizations cannot effectively manage and leverage growing amounts of enterprise data because accessibility is limited to this small, select group of decision-makers. The combination of functionality and accessibility shortcomings in today's BI offerings prevents organizations' from fully and effectively rolling out their investment and achieving their highest possible ROI.

Gap 1: Desktop Applications vs. Enterprise-Level Systems
Simple desktop applications are like walking. Walking is something most can do with ease. It is vital for completing many day-to-day tasks but limits the places you can visit and the distances you can travel. With their straightforward user interfaces (UIs), desktop applications such as spreadsheets and database management systems boast ease-of-use and enterprise-wide accessibility. They are affordable, easy-to-maintain solutions that play an important role in everyday business activities.

However, these applications limit the amount of information you can analyze and from where you can pull data. Simple desktop applications are not usually robust or effectively managed within businesses. Their lack of advanced features and their inability to empower employees throughout the organization with mission-critical data are serious weaknesses. Employees with front-line intelligence as well as those with deep behind-the-scenes knowledge cannot use these tools to effectively share their own expertise or leverage their colleagues'. Further, they lack the security and compliance features that enable this type of data transparency.

Enterprise-level systems and application-specific BI systems, such as ERP and decision support solutions, are on the other end of the spectrum. They are potent offerings with rich analysis capabilities. They can accommodate large volumes of data from different sources in a secure and compliant manner. But their power makes them as inaccessible to the average user as jet planes. Jet planes can take you wherever you want to go, but only a trained professional can operate them. This training is not transferable when staff turns over. Since most individuals don't need or want that kind of power on a day-to-day basis, the ability to access and leverage data remains reserved for a select group of decision-makers.

Functionality shortcomings of both simple desktop applications and enterprise-level systems all but negate the utility of and investment in BI. Despite recession fears, Gartner expects worldwide BI spending to rise by 11.2 percent in 2008, to $5.8 billion. A recent survey by the company also named BI as CIOs' top technology priority for the third consecutive year. Because of this sharp spike in spending, it is more critical than ever for organizations to fully realize their BI investments and demonstrate direct, immediate ROI as well as proven increases in productivity. These days, the stakes are high and no one has time or money to waste.

Gap 2: Data vs. Decision-Makers
Most organizations do not effectively balance their BI investments with their human resources. Some organizations have widely accessible BI tools but are not able to fuse the knowledge or data resources of different departments or hierarchical levels. Other organizations have BI tools that prohibit all but a few highly skilled users from taking advantage of the investment. Adding to the dilemma, the amount of annual data within the average business is increasing dramatically. Specifically, WinterCorp reported that the volume of data within the average organization is rising by between 150 and 250 percent per year. So while the pool of data grows, the group of decision-makers with access to BI analysis and reporting tools remains selective and inefficient.

The feature-saturated user interfaces (UIs) of most enterprise-level systems play a large role in preventing global accessibility of BI offerings. First-time, non-technical users are just as lost as airline passengers would be flying a jet plane. They are faced with an overwhelming number of features and functions, which, more often than not, are presented haphazardly. For example, compare your desktop applications today to those of ten years ago. The UI is covered in new features and functionality, but most of these additions are irrelevant to day-to-day tasks and only clutter the screen. This is often enough to overwhelm users. Similarly, if users can't implement BI solutions quickly and effectively upon first use, then they disregard it as worthless tool and don't revisit the software - they just don't have the time, resources, or interest in navigating cluttered UIs.

BI software must integrate a ridiculously obvious UI, using it as a gateway for powerful, yet secure, data access, analysis and reporting capabilities. So, what exactly is a ridiculously obvious UI? It's a clean, organized interface-one where features are progressively disclosed as user-confidence increases and where settings easily adapt to differing skill levels and job responsibilities. This allows users at all levels of the organization to easily engage with the software and eliminate the barrier of training.

Higher education is one of many business sectors facing this paradox of data growth and accessibility decline. Decision-makers within the university system are dealing with an ever-increasing body of data. Universities have funding coming in from diverse resources that all operate according to different fiscal calendars. Individuals at these organizations must also factor in important compliance-related information when making critical determinations. Central finance and department heads need to access, analyze, and report on this data for different means and in different ways.

If only a few analysts in central finance have access to data-mining and reporting tools, how exactly can specific department heads determine the status of their financial resources? And, how can central finance paint an accurate picture of the organization's annual budget if they don't have access to individual departments' off-ledger transactions, or secondary information that is not included in the main data repositories? All of this data must be reigned in from a multitude of disparate systems and fed into one application whose ease-of-use enables users in all roles to access and report on their data.

Since the amount of data within organizations is increasing, it's particularly important that the pool of decision-makers with the ability to leverage BI tools also expands and that these decision-makers have access to all data sources, including both primary and secondary sources. Global accessibility empowers employees at all levels of the organization and releases buried strategic knowledge. Combined with an intuitive UI, it allows also for users to self-service their BI software, instead of heavily relying on the IT department and further draining valuable resources.

Additionally, when primary and secondary data sources are universally accessible and presented as separate but equally important repositories, the business can identify a single source of truth within the data. Reports from across the organization can be easily checked for consistency and errors in reporting can be more easily identified.

But with widespread accessibility also comes concerns about security and compliance management. As they say, too many cooks spoil the soup. Most BI solutions already incorporate necessary safety and customization features to prevent data corruption - the industry just needs to integrate compliance seamlessly throughout their solutions. And, provide flexible security that is easy to maintain, but comprehensive enough to permit inter-organizational collaboration.

It's time to close the gaps. BI investments must demonstrate clear ROI and leverage existing platforms. The traditional industry model must change to achieve these results. To fulfill their job responsibilities effectively, individuals at all levels of the organization need access to the appropriate data, whether it's from a primary or secondary source, and they must be able to analyze and report on that data.

However, these individuals do not have time or the inclination for copious training, and their organizations do not have the resources to train all of them. The next generation of BI solutions must be easy to use and customizable, yet powerful enough to make a difference in allowing an individual to complete their day-to-day tasks. This solution must be affordable and require little to no training. It must leverage larger scale BI investments and integrate seamlessly into existing systems, distributing information in a secure and compliant manner.

This new BI solution is exactly like a car. Billions of people are able to drive cars. Driving does not require much training or knowledge of the technology under the hood. Drivers need only an understanding of how to operate the pedals, steering wheel and gear shift to have success. For most individuals, operating a car quickly becomes second nature - a relatively straightforward task that they perform on a daily basis. Even with today's high gas prices, a car is a lot more affordable than a jet plane and gives people the ability to travel further and faster than walking alone.

Just as drivers rely on their car as an easy, dependable way to get around, the BI market needs a symbolic mode of transportation that is engineering conscious but not garish. It's missing a safe, reliable car - one with a clean dashboard that hides the advanced technology of its engine, yet takes everyone where they need to go. By making BI easy to use and affordable on the surface but powerful behind the scenes organizations can truly realize their BI investments.

Mike Psenka
Mike Psenka is founder, president and CEO of eThority, a company with a 19-year history in business intelligence and data reporting.