Not Understanding Your Data Sources

Without a robust understanding of the data itself, decision-makers can’t hope to choose a platform that will meet business requirements.

In the previous chapter, we have discussed how failing to create and customize user profiles can be detrimental to your business, no matter how much you spend on your BI solutions or any BI tool for that matter.

Your business intelligence data source matters the most.

For information to be useful, you must know what you are accessing and why. Any number of factors can influence an organization’s success, but not all of those factors have equal impact. If you’re not making the right measurements or making measurements for the wrong reasons, it will affect processes, efficiencies, and profitability.

Not only must you understand what you need to measure, but you also have to know where that data is located, whether it is big data or for data analytics, and if the solution you are considering matches your needs. Is a cloud solution truly the best option for your business? Are your Excel spreadsheets as effective as they could be? Is your data structured or unstructured? Without a robust understanding of the data itself, decision-makers can’t hope to choose a platform that will meet business requirements.

When executives don’t have a firm handle on data profiles, they can overpay for implementation and consulting services that leave the organization with reports and dashboards that do not add any value to the business.

Other times, without a handle on data profiles, executives will pay for an enterprise solution to cover all data access scenarios. In reality, most businesses will see the biggest benefit and ROI by focusing on data profiles and choosing an appropriate solution that meets those specific needs, resulting in both upfront and ongoing costs savings. This will also maximize any business intelligence tool that you have for every business user.

Our Takeaway

With no idea how your data works, you will have no idea of the best practices to use your data to your advantage.

Therefore, you must learn and understand how data can tip the scales in your favor, even though it might require you some time to do so.

It would be best if you also understood how the whole business intelligence system works so that you eventually choose the best business intelligence software or any BI platform for smooth data integration, predictive analytics, business analytics, and so on. This will help you realize that your business intelligence solution is worth it, and your data analyst will thank you.

In the next chapter, you will learn how one-size-fits-all solutions will never work in business intelligence.