BIA NOTES
BUSINESS INTELLIGENCE OPPORTUNITY FRAMEWORK
● SWOT ANALYSIS
a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities and threats.
● PESTEL ANALYSIS
a framework or tool used by marketers to analyze and monitor the macro-environmental factors that have an impact on an
organization, company, or industry.
● PORTER’S ANALYSIS
Michael E. Porter’s Five Forces framework is one of the most widely regarded business strategy tools. Born out of his work in 1979,
this framework offers organizations a systematic approach to assessing their competitive environment and making strategic
decisions that can influence their long-term success.
The five forces include the factors that influence every industry. The five critical dimensions which shape the competitive business
landscape are:
Competitive Rivalry
Supplier Power
Buyer Power
Threat of Substitution
Threat of New Entrants
● Business Model Canvas
a business tool used to visualize all the building blocks when you want to start a business, including customers, route to
market, value proposition and finance.
● Value Proposition Canvas
framework which can help ensure that a product or service is positioned around what the customer values and needs.
● Product Performance Management System
Production management deals with decision-making related to production processes so that the resulting goods are produced
according to specification, in the amount and by the schedule demanded, and at minimum cost.
PPMS Application in Business Functions
• Tracking of Product Sales and Market Performance
Track sales volume across various regions and channels as the system gathers data on a daily, weekly, and monthly sales
performance which allows the company to identify which products are performing well and which may need further attention.
• Customer Feedback and Sentiment Analysis
PPMS integrates customer feedback data from multiple sources, including surveys, social media, and product reviews. And by using
sentiment analysis, the company can gauge customer satisfaction and detect dissatisfaction with particular products.
• Supporting Product Innovation and New Launches
The company can use PPMS to support product innovation by analyzing the success of new product launches and formulations to
help guide future product development.
• Optimizing Supply Chain and Inventory Management
The PPMS monitors inventory levels and distribution across various locations, ensuring that the right products are available in the
right places at the right time.
• Marketing and Promotional Effectiveness
The system helps the company optimize its advertising spend by identifying which marketing efforts yield the highest returns in
terms of product sales and brand awareness.
KEY COMPONENTS OF PPMS:
● Data Collection - gathering relevant information from various sources, such as sales records, customers feedback, and
product usage analytics.
● Data Analysis - Analyzing collected data to identify trends, patterns, and insights that can inform decision-making.
● Benchmarking - Comparing product performance against competitors or industry standards to identify areas for
improvement.
● Metrics and KPIs - These are specific measurements used to assess product performance.
● Reporting - Creating clear and short reports that summarizes key performance indicators and highlight areas for
improvement.
● Decision Making - using insights gained from data analysis to make informed decisions about product development ,
marketing, pricing and other strategic aspects.
Top-down BI opportunity analysis is a strategic methodology that starts by examining the overall business objectives and goals
before diving into specific data requirements. This approach ensures that BI initiatives align with the broader organizational strategy,
maximizing their impact and return on investment.
KEY COMPONENTS
● Global Economic Outlook: Assess the global economic landscape, including factors like interest rates, inflation, GDP
growth, and trade policies.
● Domestic Economic Conditions: Analyze the domestic economy, considering factors such as GDP growth, employment
rates, consumer spending, and government policies.
● Sectoral Analysis: Evaluate the performance of different economic sectors, such as manufacturing, services, and
agriculture.
● Industry Analysis: Examine specific industries within sectors to identify potential opportunities or risks.
Execution risks*
Project management risks
Poor project planning, inaccurate resource allocation, inadequate coordination, or failure to meet deadlines can lead to delays, cost
overruns, or the ultimate failure of a project.
Operational risks
Issues related to the day-to-day operations of a business, such as inefficient processes, supply chain disruptions, technology
failures, or human error, can hamper the execution of business strategies.
Financial risks
Insufficient funding, misallocation of financial resources, or unexpected financial constraints can impede the successful execution of
an investment strategy.
Market risks
Changes in market conditions, shifts in customer preferences, competitive pressures, or regulatory changes can create challenges
for executing a business strategy effectively.
External risks
Factors beyond an organisation's control, such as natural disasters, geopolitical events, economic downturns, or pandemics, can
significantly impact the execution of projects or strategies.
Human resources risks
Inadequate staffing, lack of necessary skills or expertise, employee turnover, or poor employee performance can hinder successful
project execution.
Business Intelligence Strategy
A business intelligence strategy is a plan for how a company can use its data to benefit from them. This data comes from various
sources like HR, supply chain, manufacturing, finance, and customer relationship management.
Key elements of a business intelligence strategy
Vision: Clearly define the goals of your BI strategy. For example, is it focused on reporting, analytics, or both? Make sure everyone
is aligned with this vision.
People: Get executive support for your BI strategy. Make sure leadership understands the benefits and ROI. Assign roles to staff
and determine what data each department needs.
Process: Review your current data setup and identify gaps. Outline the steps to move from your current state to the desired future
state. Use this to create a strategic roadmap.
Architecture: Establish the technical framework, including data requirements, security, and system integration.
Tools: Choose the right BI tools and software based on your company’s needs after defining your strategy and vision. These tools
will help bring your business intelligence strategy to life.
How to Develop a Business Intelligence Strategy: Key Steps
Step 1: Create a BI vision
To create a clear vision for your BI strategy, start by understanding your current situation. By analyzing where you stand and
connecting data from various sources, you’ll get a solid foundation.
Step 2: Build a BI team
The BI team is responsible for uncovering insights from data, analyzing it, and making it accessible to end-users. In large
companies, there are usually different BI roles, but if you’re on a tight budget, these roles can be combined into one position. If
you’re creating an in-house team, here are the key roles to consider:
BI Project Manager – acts as a link between business and tech teams.
BI Architect – designs the BI infrastructure by turning business needs into a data warehouse.
BI Analyst – mines and analyzes data to find valuable insights.
ETL Developer – manages the ETL processes that feed data into the warehouse.
Data Visualization Analyst – creates clear, informative visuals from the analyzed data.
System Administrator – sets up and monitors the hardware.
Step 3: Establish your BI architecture
Different architectural approaches are available depending on the required configurations. According to Chartio’s eBook Cloud Data
Management, four stages of data sophistication are relevant for building data management software:
Source data (siloed data from datasets like Excel spreadsheets, Salesforce, Hubspot, etc.)
Data lake (a single repository for storing unstructured data from data sources. Data in the lake is unstructured and is not ready
for analysis).
Data warehouse (it is a single source of truth where data is structured, cleaned, and ready for consumption).
Data mart (it is a data set designed for specific use cases).
Step 4: Choose the best software vendor for your business needs
We compiled several questions you need to ask your potential BI provider to evaluate their capabilities:
Can the software/tool be integrated with your company’s existing systems?
What deployment options does the solution offer: on-premises or cloud?
Are there flexible user permissions for data fields?
Is the software easy to use and navigate?
Do your business requirements correspond to the software you select?
Is the software scalable enough if your company’s demands will grow?
Are the dashboards customizable?
Does a vendor offer training to all the users, not only the tech team?
Step 5: Select the BI platform and environment
There are deployment options available: on-premise, cloud, and hybrid. To define which options will best suit your business goal,
let’s compare them.
On-premise is a model where infrastructure is installed locally so that it is under your total control. So, if you have a particular
use case and are concerned about high privacy and security – this type can be perfect for you.
The cloud environment is a model where data processing and management are performed by third-party providers in the
cloud which eliminates the expenditures on the hardware and infrastructure purchases. Data security threats are the main
ones constraining businesses from adopting cloud computing.
A hybrid cloud connects on-premises data centers and public clouds that are integrated. This solution best suits businesses
that want to store their critical workloads on-premises (much more secure) and less sensitive resources on a cloud
provider.
PRIORITIZING BI
Strategic Alignment: Evaluate BI opportunities based on their alignment with the organization’s strategic goals and objectives.
Prioritize those that support key business initiatives.
Impact Assessment: Assess the potential impact of each BI opportunity on business performance, including revenue growth, cost
savings, and operational efficiency. Focus on high-impact opportunities.
Data Availability: Consider the availability and quality of data needed for each opportunity. Prioritize opportunities where data is
readily accessible and reliable.
Feasibility Study: Analyze the technical and operational feasibility of implementing each BI opportunity. This includes assessing
required resources, technology, and expertise.
Stakeholder Input: Involve stakeholders from different departments to gather insights on their needs and pain points. Prioritize
opportunities that address their specific challenges.
Time Sensitivity: Identify opportunities that have time-sensitive benefits or risks. Prioritize those that require immediate action to
capitalize on trends or mitigate threats.
Cost-Benefit Analysis: Evaluate the costs associated with each BI opportunity against the expected benefits. Prioritize those with
the highest return on investment.
Competitive Advantage: Assess how each opportunity can enhance competitive positioning. Prioritize initiatives that can
differentiate the organization in the market.
Pilot Programs: Implement pilot programs for high-potential opportunities to test their effectiveness before full-scale rollout. This
can help refine prioritization based on real-world outcomes.
Continuous Review: Regularly revisit and reassess priorities based on changing business conditions, emerging technologies, and
evolving organizational needs.
BI PORTFOLIO MAP
X-Axis (Risk):
HIGH Risk (left) to LOW Risk (right).
This measures the level of uncertainty, cost, complexity, and difficulty associated with each project.
Y-Axis (Business Impact):
Low Business Impact (bottom) to High Business Impact (top).
This indicates how much value the BI project is expected to bring to the organization.
Key Components of a BI Opportunity Portfolio Map
1. High Impact / High Feasibility (HIGH RISK/REWARD) - PRIORITIZE
These are strategic projects with high potential for business impact but also come with considerable risk. They may require
complex data integration, significant investment, or advanced technical skills. However, if successfully implemented, they can
transform the business and provide major competitive advantages
2. High Impact / Low Feasibility (PLUMS) (STRATEGIC PROJECTS) - LONG TERM FOCUS
These are projects with high business value but relatively low risk. They are considered "Plums", which means they are attractive
opportunities that deliver substantial benefits with minimal challenges.
3. Low Impact / High Feasibility (WHY DO IT?) - OPTIONAL
These projects are both risky and offer little business value. They fall into the "Why Do It?" category, meaning that they should
generally be avoided because the potential costs and risks outweigh the benefits.
4. Low Impact / Low Feasibility (EASY WINS) (AVOID OR RETHINK) - AVOID INVESTMENT
These projects are simple and easy to implement, offering low risk but also low business impact. They are referred to as "Easy
Wins" because they can deliver some quick, small-scale improvements
Steps to Create a BI
Opportunity Portfolio Map
Identify Opportunities
Evaluate Business Impact
Assess Feasibility
Map Initiatives
Prioritize
Review and Update
