Strategic Intelligence with BI Competency Center

Rodica Maria Bogza1

Abstract. The paper is about the strategic impact of BI, the CRITERIA FOR TRUE BUSINESS
necessity for BI and how BI would drive the success of an
organization. It will continue emphasizing the way in which new INTELLIGENCE
technologies and ideas emerge in the business world. BREADTH: It integrates functions and technologies from
BI is a strategic initiative by which organizations measure and across the organization. Integrated BI integrates data from
drive the effectiveness of their competitive strategy. In achieving every corner of the organization – from
this grand goal, there is need for analyse, software, resources, operational/transactional systems, multiple databases in
technical leadership, process leadership, executive champions different formats, and all contact channels. The information
and much more. It is a long term process and it can be broken flow can transcend organizational boundaries, computing
down to goals, which are periodically analysed for a good platforms, and specialized tools.
manage of resources and growth. An effective way of creating
and managing BI is to start with a BI competency center. The BI
DEPTH: It reaches all who need it, in a way that is relevant
competency center's (BICC's) role is to champion the BI to them. A real BI solution provides appropriate interfaces and
technologies and define standards, as well as the business- tools for users at different levels of organization, who have
alignment, project prioritization, management and skills issues different needs. The results of analysis should be easily
associated with significant BI projects. disseminated across all functional areas and organizational
A BI competency center at least must have a BI leader levels.
dedicated to acceptance and success of the BI initiative. There COMPLETENESS: It is a comprehensive, end-to-end
must be at least three key leaders under the BI leader: data platform. BI is not just query and reporting. It depends on a
management leader, business process leader and project chain of applications and technologies working together from
management leader, each having their responsibilities and role.
In order to implement a competitive strategy, the executive team
a common data foundation to create a single version of truth.
establishes tactics and tasks that are materialized into several ADVANCED ANALYTICS: It delivers predictive insights,
projects across the organization. The effort of the BI competency not just hindsight. Online Analytical Processing (OLAP) is a
team is to identify the metrics and data sources relevant to the valuable part of the picture, but isn’t the only source of
matter, for obtaining the desired goal. The effort required to competitive differentiation. BI requires not only historical
accomplish these goals are above and beyond the responsibilities query and reporting, but predictive analytics, such as scenario
of a typical IT organization because involvement is needed from planning, forecasting, optimization and risk analysis.
other departments. BI competency centers bring additional boost DATA QUALITY: Data is vital to the decision making
to the productivity of the IT organization. As organizations are process, and ensuring that one has the right data is imperative.
facing several complex decisions every day, the investment in a
BI competency center becomes easily justifiable.
The quality of data affects directly the return on BI
Keywords: BI competency center, BI leader, Data Management investment.
leader, business process leader, project management leader INTELLIGENCE STORAGE: it meets the information
needs of intelligence applications. The data storage platform
must be able to draw on information from many sources,
BI VERSUS GUT FEEL prepare it for analysis, and deliver it quickly to the
The key to this vital knowledge lies in the huge amount of applications and platform that need it.
data that every organization already collects. BI uncovers a lot Bi is not only about software. The success of BI projects is
of competitive advantages by transforming that raw data into sustained by a proper environment for BI, which includes the
actionable intelligence and by creating knowledge to appropriate processes, the people with in-depth BI skills, and
implement winning strategies and deliver information that can an organizational culture focused on fact-based decision
be leveraged by the entire organization. making.
One of the greatest inhibitors to competitive advantage is
acting solely on ‘gut feel’ and ‘intuition’. The decisions based BICC
on what someone feels can not be measured , repeated, shared The challenges in exploiting Business Intelligence can be
or easily understood. The specialized knowledge needs to be defined in six categories :
joined with the data to improve future decision making and
• Data challenges
provide competitive advantage.
• Technology challenges
• Process challenges
1
• Strategy challenges
Bogza Rodica Maria, Phd. Ing. (ec.), Doctoral School 2006 ,
• Users’ challenges
Academy for Economic Studies Bucharest, Romania
• Cultural challenges

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 DATA CHALLENGES: Data are the heart of all BI goals is vital for the success of a BI implementation. A BICC
initiatives. The data required and the time and effort necessary can help to identify the different audiences, to understand
to collect the necessary data and to ensure their accuracy are their needs, to shape their requirements and training, and
often underestimated. Data issues are most costly element of coach them so that they can drive the right conclusion from
BI implementation. It takes a lot of time, resources, and effort the data available to them. The goal is to use BI to its greatest
to identify, map, and create the necessary rules and processes effect and to raise the overall maturity of the organization.
to ensure that data are used consistently and accurately across CULTURAL challenges: the culture that can be a great
the organization, promoting a single version of truth. inhibitor, needs to be such that it encourages fact-based
Usually, the disparate data sources don’t speak to each decision making- that is, people can get to the information
other, and each might be managed by different groups that they need to make their decisions in an easy and timely
report to different organizational entities. Once data have been fashion. The BICC can contribute to understand the culture of
correctly identified and collected, data quality has to be the organization and to leverage it for its best advantage, so
considered. Ignoring this would be a costly mistake. Analysis that the strategic use of information becomes a core
must take place to ensure that the data collected are correct competency for the organization.
and suitable for decision-making processes. It’s better to insert
a data quality process to the source of data. Resolving data WHAT IS A BICC?
quality issues requires communication and working together BICC is a cross-functional team, with a permanent, formal
with various groups and experts to resolve the root causes and organizational structure. It has employees from the
underlying issues. Therefore, one has to include a data organization itself, although some roles can be outsourced.
stewardship function into the BICC, where the data quality The BICC has the task of driving the use of BI throughout the
topics can be adequately addressed. organization, making it available to business users at different
Data storage is another obstacle for BI. Data often are levels and providing advice and support for all BI-related
stored in multiple formats, in multiple places, and in multiple questions, including assistance with the interpretation of
databases. Data must be accessed and consolidated into information.
consistent business views that support a fit-for-use approach A BICC enables the organization to coordinate and
for delivery despite storage complexities and limitations. complement existing efforts in the area of BI, while reducing
TECHNOLOGY CHALLENGES: The proliferation of redundancy and increasing effectiveness. The centralization of
disconnected information silos poses obstacles to the these efforts ensures that information and best practices are
successful creation of knowledge within an organization. communicated and shared through the entire organization so
Since individual departments have been run like separate that everyone can benefit from successes.
business and often used disparate hardware, platforms, system A central mandate for the BICC is to enable knowledge
standards and databases, the BICC has to provide means of transfer and enhance analytic skills and enable the business
addressing the whole information value chain. Often the units to meet their goals. The BICC can coach and train
success of a particular piece of BI technology rests not only business users to empower them with new skills that drive
on its use in the organization, but on what precedes it in the competitiveness. It can be instrumental in turning analysis into
value chain. Over time, organizations have accumulated a action and ensuring higher levels of ROI from BI.
complex set of heterogeneous tools and infrastructure Arguments for establishing a BICC
technologies that are not very well integrated. The BICC plays • Preserve and exploit the full value of technology
a key role in balancing corporate governance while providing investments
the flexibility required getting the job done. • Integrate and consolidate business and analytical
PROCESS CHALLENGES: BI is a process, not a software intelligence processes and initiatives
product. Processes can be changed and measured and are • Reduce overall risk of implementation projects and
documented, making them repeatable and able to adapt to project realization
changing business requirements. And the key to successful • Support business users in fully understanding data
processes is people. Organizations that marry their human and acting properly on analyses
capital, culture, knowledge processes, and infrastructure by • Ensure that BI knowledge (BI value, concepts and
creating a BICC are prepared and poised to meet the technology) is shared in the organization
continuously changing demands of their customers and The BICC should be the ‘center of gravitation’, where
maximize potential. different skill sets are combined for one common goal : to
STRATEGY CHALLENGE: The goal is to align all BI understand better the business and interpret current business
initiatives in order to support the organizational strategy. But, results and predict the future more accurately. In order to do
different groups in the organization have different BI needs this, a combination of business, IT, and analytical skills is
and start their own independent BI projects. The BI strategy required.
represents the way in which information delivery needs from Generally the BICC is placed in an organization in the IT
management and operations are addressed and met. division or in the MIS division, in both cases doing reports to
USERS’ CHALLENGES: BI can enhance everyone’s business management.
decision making across the organization. Understanding the AXES OF A BICC:
different audiences and their information needs, skills and • Business needs

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 • Organization and processes • Defining the BI and AI (analytical intelligence)
• Tools and application strategy and its link to the corporate strategy
• Data integration and management • Managing standards and templates for BI / analytical
NECESSARY SKILLS FOR A BICC: intelligence
• Establishing and monitoring key performance
indicators (ex : ROI) for the success of BI and BICC
• Business related consulting
• BI project office management
• Function specialization
• Service management
• Internal marketing of the BICC
• Knowledge management
• Metadata management
• BI-related security (common to all functional areas)
• Information quality
• Service level agreements (between the BICC and the
business units)
• Cooperation with corporate IT with regard to
hardware architecture, capacity planning, etc.
Data stewardship
• Metadata management ownership (technical
metadata only)
Fig.1 • Data standards
RESPONSIBILITY AREAS of a BICC • Definitions
Knowledge management • Data governance
Business-related consulting
• Data quality
Analytics
BI delivery
Data warehousing
• Front-end BI distribution (portal, channel delivery,
Enterprise data model management
etc.);
Training
Help desk • Front-end BI application development, warehouse-
Integration process management based applications (reporting, OLAP)
• Testing
FUNCTIONAL AREAS INSIDE THE BICC • Maintenance
* Business intelligence program • Technical consulting
* Data stewardship Data acquisition
* Support • Data integration / development/ testing/ maintenance
* BI delivery • Data store development / optimization / testing /
* Data acquisition maintenance
* Advanced analytics • Scheduling
* Training • Technical consulting
* Vendor contracts management • Integration processes
Advanced analytics
• Statistical analyses, modeling, forecasting,
optimization, etc.
• Data mining
• Research and experimenting
• Data preparation for analytical processes
Training
• Training development
• Training (business use)
• Training (product specific)
Fig.2 • Vendor contracts management
Detailed checklist for the functional areas in the BICC • User licenses
Business intelligence program • Service-level agreements with vendors (BI related)
Vendor management

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 • Product evaluation
• Interface to purchasing/ legal departments
RELATED FUNCTIONAL AREAS
The next function is generally not part of a BICC. They
exist in the organization for other purposes, but it is important
that these functions work closely with the BICC.
• Service desk/support :
• System administration
• Technical change management
• Database administration
Planning a Business Intelligence Competency Center :
using the Information Evolution Model
Four Critical Dimensions of the Information Evolution
Model

Fig.5

Fig.3
Five Levels of maturity in the information evolution model
Setting up and ensuring ongoing support
Business intelligence competency center setup

Fig.6

Fig.4

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 Fig.9

Fig.7

Fig.10

Recommendations for a Highly Effective Business

Intelligence Competency Center

Have a Vision for Business Intelligence

Executive management has to be convinced of the idea that
information is a highly valuable asset and needs to be
managed. Management must communicate to the rest of the
organization that BI can be used to drive business forward, by
assigning the BICC a prominent and influential place in the
organization. Management needs to commit to a culture of
fact-based decision making.
Create a Joint Venture between business and IT
The BICC needs to act as a broker that brings together
business understanding and technology expertise. The BICC,
by definition, tries to provide intelligence to the business.
It’s a process, not a project
Fig.8 The BICC shoud tay, once implemented. It should not be
treated as a project with a start and end date. Integrating BI

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into business is an ongoing process. As business requirements standardized BI processes and initiatives; consistency of
change, there is a constant need for more advanced, or “a definitions, processes, and methodologies; and higher ROI
different kind” of intelligence. An intelligent company is from BI.
always accustomed to fact-based decision making and wants In order to set up properly a BICC one has to follow some
to use information in more and more of its business processes. steps:
Maintain clear vision, concrete objectives The BICC needs a clear mandate and strategy. It is not
The vision of creating and maintaining a BICC needs to be enough to say that the BICC is supposed to drive the BI
understood and supported by all the affected parties of an strategy in the organization if there is no clarity in strategy.
organization. In order to prove the tangible value of a BICC, it Some time and effort needs to be invested in understanding
is very important to define measurable and realistic objectives the BI requirements of the organization in support of the
that are transparent to the stakeholders and to the BICC, and corporate strategy.
then to translate them into concrete short-term achievements. The BICC needs support from the executive sponsorship.
Integrate and consolidate Otherwise it will not be visible and influential enough to play
The BICC should oversee all the BI-related initiatives on an the crucial role that it should assume. The aim has to be the
organizational level and guard against overlap, redundancy, alignment of BI goals across various functional areas, in
and information silos. It should evaluate which tools and support of the organization’s strategy.
technologies are fit for the purposes of the organization and it is important to staff the BICC with representatives from
drive standardization efforts while ensuring it is enabling the both IT and the business. This combination ensures that both
needs of the business. business understanding and IT know-how work together for
Practice effective change management answering the business’s BI requirements.
Change is the only constant, and the acceptance of change A BICC is an excellent forum for addressing tactical issues
is greatly increased by a thorough Change Management plan efficiently and effectively, but it is important to consider also
that caters to the impacts and highlights on the risks and the strategic value of a BICC. The BICC is the initial contact
benefits. In order to avoid any potential problem or conflict point in the organization for any questions or problems that
resulting from a change, it is very important to involve relate to BI strategy or software.
affected individuals as much as possible in the BICC setup
and by including them in a BI needs analysis. REFERENCES
Carry out staff induction, training, development [1.] www.wikipedia.com
It is essential that everyone in the BICC team is very clear [2.] www.sas.com
on roles and responsibilities and how they relate to other [3.] www.hbsp.harvard.edu – Harvard Business School Press
departments. A training assessment will also be required for [4.] http://en.wikipedia.org/wiki/Community of Practice
the business users. [5.] Alan Tiedrich, “The BI and Data Warehousing Tools
Deliver ongoing value Selection Process – A Recipe for Success”, Proceedings of
Gartner Business Intelligence Summit, London, 2005.8.
Once the BICC is setup, it has to demonstrate its value to [6.] Robert S. Kaplan, David P. Norton - The Strategy-Focused
the organization on an ongoing basis. The overall goal of a Organization – Harvard Business School Press, 2004
BICC is to provide ongoing value to the business by
supplying the intelligence needed to achieve corporate
objectives. The business should perceive this value all the
time. Therefore, an effective communication strategy is a vital
part of the BICC’s work, where the center talks about its
projects, successes, plans and achievements.
Ensure the infrastructure’s depth and breadth
A BI infrastructure needs to satisfy and support each
business area’s requirements for information of varying
complexity and allow for a timely delivery of that
information. The infrastructure should enable the bi strategy
to grow and develop over time and allow for sharing BI across
functional areas.
Use a multidimensional approach
Successful BICC’s understand that BI is not just about
technology. First-class infrastructure needs to be combined
with highly skilled people, transparent and efficient processes,
and a culture that use fact-based decision making.

CONCLUSIONS
A BICC can address a lot of issues – better use of BI across
the organization, greater alignment and collaboration between
units; a strategy that supports the corporate strategy;

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