15 Reasons You Need Business Intelligence Software

May 21, 2019

I read StrategyDriven’s “The Importance of Business Intelligence Software and Why It’s Integral for Business Success.” I found the laundry list interesting, but I asked myself, “If BI software is so important, why is it necessary to provide 15 reasons?”

I went through the list of items a couple of times.Some of the reasons struck me as a bit of a stretch. I had a teacher at the University of Illinois who loved the phrase “a bit of a stretch, right” when a graduate student proposed a wild and crazy hypothesis or drew a nutsy conclusion from data.

Let’s look at four of these reasons and see if there’s merit to my skepticism about delivering fish to a busy manager when the person wanted a fish sandwich.

Reason 1: Better business decisions. Really? If a BI system outputs data to a clueless person or uses flawed, incomplete, or stale data to present an output to a bright person, are better business decisions an outcome? In my experience, nope.

Reason 6. Accurate decision making. What the human does with the outputs is likely to result in a decision. That’s true. But accurate? Too many variables exist to create a one to one correlation with the assertion and what happens in a decider’s head or among a group of deciders who get together to figure out what to do. Example: Google has data. Google decided to pay a person accused of improper behavior millions of dollars. Accurate decision making? I suppose it depends on one’s point of view.

Reason 11. Reduced cost. I am confident when I say, “Most companies do not calculate or have the ability to assemble the information needed to produce fully loaded costs.” Consequently, the cost of a BI system is not the license fee. There are the associated directs and indirects. And when a decision from the BI system is wrong, there are some other costs as well. How are Facebook’s eDiscovery systems generating a payback today? Facebook has data, but the costs of its eDiscovery systems are not known, nor does anyone care as the legal hassles continue to flood the company’s executive suite.

Reason 13. High quality data. Whoa, hold your horses. The data cost is an issue in virtually every company with which I have experience. No one wants to invest to make certain that the information is complete, accurate, up to date, and maintained (indexed accurately and put in a consistent format). This is a pretty crazy assertion about BI when there is no guarantee that the data fed into the system is representative, comprehensive, accurate, and fresh.

Business intelligence is a tool. Use of a BI system does not generate guaranteed outcomes.

Stephen E Arnold, May 21, 2019


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