The Best Way to Turn Information into Knowledge
Many organizations find themselves in a paradoxical situation: virtually all of their work processes are computerized, and they operate a wide range of systems including ERP, CRM, budget control, and others, that support almost every aspect of their operations. Yet one important question remains: “Is management truly benefiting from the wealth of information that accumulates across the organization every day, and is the organization generating added value from all the investments it has made in technology?” In most organizations, the answer is either no, only partially, or simply unclear.
Technology undoubtedly helps organizations manage processes more effectively and enables reliable and efficient information flows between different functions. Information systems make it possible to issue invoices, manage inventory, and ensure that the right raw materials are available at the right time. These capabilities alone clearly justify the need for and investment in such systems. But is that the full value organizations can derive from them?
Research conducted by Vanson Bourne among CIOs found that while 88% of organizations consider information a strategic asset, in practice only one in twenty has integrated its information in a way that makes it accessible across the organization’s information systems.
Organizations that recognize that their real asset is the information available both inside and outside the organization, and know how to turn that information into meaningful value – can break away from conventional thinking and achieve significant results.
Focus and Improvement – Creating a Single View for Management
How can an organization ensure that its managers are aligned and moving in one clear direction?
Business Intelligence (BI) is a business strategy supported by tools and methodologies for collecting, integrating, and analyzing operational data and information relating to different business processes and activities. BI has become increasingly widespread and increasingly prominent in management discussions.
This is not simply a passing trend. BI is becoming an increasingly critical management capability. Different departments often use different tools and define “success” in different ways. As a result, there may be no organization-wide agreement on what success actually means.
In addition, the same data may exist in multiple systems, while different users define, interpret, and modify it independently. This creates conflicting definitions and terminology and, as a result, increases the potential for errors.
At its core, a BI project introduces an organization-wide framework for managing information, enabling business users to make better use of it while allowing IT teams to manage it more effectively. Among the key outcomes of a BI project are the creation of an organizational business glossary and the establishment of rules governing data and business processes. As a result, the organization can achieve:
- A single, consistent view of organizational performance
- Greater confidence in decision-making
- Improved information quality and more effective use of information across the organization
Like any implementation tool , BI demands professional expertise and proven experience, particularly given how strongly it affects the organization’s activity. It is therefore critically important to combine the technological implementation with business and strategic thinking, which is what allows maximum benefit to be extracted and delivers a strategic, operational and organizational breakthrough.
There are several ways to realize enterprise information through BI tools:
- Metrics and targets – continuous and consistent measurement designed to support the achievement of the organization’s business objectives.
- Operational BI – collecting information from multiple sources, including external sources, and providing a real-time view of organizational activity.
- Data Discovery – analyzing information in response to immediate and changing business needs.
- Mobile & Collaboration – providing mobile access and the ability to collaborate, conduct discussions, and share screens through existing systems. These capabilities significantly improve information visibility for decision-makers and make it easier to distribute and share information throughout the organization.
Realizing Information as a Strategic Asset, with the Potential to Transform the Business
By introducing a BI system, or by deepening its implementation, you can reach several levels of strategic advantage from information:
- Creating a single, reliable view of the organization – eliminating information silos, duplicate data, and unreliable information generated by different functions within the same organization. An important part of this process is establishing a common business language.
- Translating business strategy into execution across the organization – linking the organization’s top-level strategic metrics with the metrics defined for headquarters and operational units.
- Reducing the time required for data collection, analysis, and decision-making – creating consistent and systematic processes for analysis and decision-making in order to generate greater value from existing information.
- Identifying business opportunities and trends – analyzing information already available to the organization. BI-driven marketing enables organizations to analyze customers, trends, and needs and develop appropriate communication channels for different customer needs.
Many organizations have already implemented BI systems, but their implementation remains partial. As a result, they are still not realizing the full business potential of the information available to them and are generating only part of the value that BI can provide.
Organizations that have avoided implementing BI because they believe it is relevant only to large companies, or because they assume it is expensive and complex, are operating under a misconception.
Today’s BI market offers new and advanced tools that are simpler and faster to implement. A single solution can incorporate ETL, reporting, charts, analytics, alerts, and dashboards. Information can be delivered quickly, clearly, and in different formats to users throughout the organization – from the CEO to headquarters teams. Development times for these tools can be 80% shorter than those of traditional BI tools, while their implementation success rate is higher than the industry average.
By Orly Libertovsky, BI Specialist
