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Business Intelligence is well recognised for its ability to optimize both the cost and revenue activities in an organization. What is less recognized is the power of BI as a process transformational tool. Using a BI-driven design approach, enterprise transformation programs can dramatically increase their chances for attaining predefined business value.
This occurs at several levels:
By ensuring all processes are directly linked to strategic objectives
By embedding Information into processes to support evidence based decisions
To provide alerts and automated decision making to significantly speed up a deliverable cycle
By monitoring performance of processes via dashboards
By ensuring a continuous improvement cycle is effective
Thus, the value of BI extends far beyond the capability to extract, aggregate and analyze data.
Using BI to enable enterprise processes and other supporting technology can fundamentally change the way an enterprise responds to its organizational design challenges.
BI and the Enterprise
Most OD initiatives are driven by cost and revenue-optimization goals that support the recognition that to become leaner, more effective and more competitive, the organization must by defined by strategic value chains, rather than functional activity areas such as Finance, Marketing, Logistics, HR etc
With the massive volumes of data generated by companies today, integrating BI into Enterprise Resource Planning (ERP) and Enterprise Data Warehouse (EDW) technologies, enables this data can effectively release intelligence about the company's internal and external operations.
Building on the BI principle of 'one version of the truth', enterprises can meld BI with other corporate methodologies such as Balanced Scorecard and Six Sigma to provide a complete design, optimize and monitor framework.
BI-Driven Process Design
A BI-driven design approach supports enterprise goals of creating horizontal, standardized, streamlined and effective business processes.
This is achieved by:
Defining Processes into Logical 'Subject' Activity Areas
Identifying Business Value Drivers
Creating a Conceptual Model to support the business value drivers
Mapping High-level Requirements to the Dimensional Model to provide the various 'views' of the data used by different activities.
Identifying System Impacts - of the proposed model on current systems, and any required changes in configuration or capability in both technology and business processes.
Identify Master Data Issues - commonly a spin off project to manage issues around master data
Defining Detailed Requirements - that reflects both strategic and operational components.
By focusing the business on subject areas, and the data that supports it, organizational barriers are made invisible, helping to mitigate the normal 'territorial' change management issues that commonly arise in OD transformation. It also ensures that the organization is designed to meet its strategic objectives, and not driven by processes inherent in transaction systems.
By forcing the business to identify its unique Master Data, and the value it provides to many different areas of the business, boundaries between traditional functional areas are broken down and individuals become more aware of how the activities within their role sphere impact right across the organization. For many, this is highly motivational and often the first time they have had visibility of the value of their role within the entire scope of the enterprise.
Thus, the focus on building the enterprise Master data before any independent business transformation programs are initiated is absolutely critical to the overall success of such programs. The master data drives the architecture layer configuration, which in turn supports process transformation.
Governance
Establishing BI and Data Governance is absolutely essential to both the success of the transformation, but also to subsequent BI and technology enhancement. Whilst the logic of this approach is more evident to IT than to the business, once the 'light bulb' moment occurs, the barriers between IT and the business are also weakened, and a solid bridge of collaboration can be fostered.
Now that the business has delivered key information into master activity areas, business users are better equipped to make fast decisions with a much higher success rate. For many, this new evidence-based decision making is somewhat uncomfortable, in spite of studies confirming the high percentage of poor decision making based largely on the lack of current relevant information.
However, once the BI strategic framework is created, ongoing education helps to change the perspective around both the role BI plays in the transformation and in ongoing operational and strategic effectiveness.
This also helps to establish BI as more than just a media rich reporting solution.
Conclusion
Business Intelligence is a powerful framework for transforming businesses into more efficient, more effective and more competitive organizations.
Harnessing powerful business data to support processes and decision making, BI breaks down generations of barriers amongst organizational functions to focus the business on strategic value streams. This provides a dynamic and flexible framework that better equips the organization to respond to changes in the market place and ensures a more sustainable and highly competitive future.
The BI driven transformation dissolves many traditional change management challenges and is a powerful motivator towards self managing performance.

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