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MI vs BI - the 'truth repository'MI vs BI
Using data from systems such as Finance, HR and other operational systems to manage the business on a day to day basis, whilst using a data warehouse with analysis tools, (to drive the business at a strategic level) is not intelligent. It makes it much harder to compare and contrast information, to make informed decisions, (it’s also labour intensive and costly). One multi-billion dollar subsidiary of a global business employs a team of 75 analysts who prepare the information for its monthly board meetings. When the board meets, half the meeting is spent arguing about which set of information is correct! But it’s not just senior decision makers that require information; there are customers and other important external bodies to consider, such as regulators, shareholders and analysts.
Nirvana
The answer is to create a ‘truth repository’ for your business, one set of information that is used for all management purposes and serves all audiences, fulfilling the needs of; strategic planning and analysis, performance management, operational management, customer and compliance information. Make your data warehouse the global repository and collect data from all systems and sources, cleanse, check and correlate the data (automating this as much as possible) and enable presentation of the output in different formats for each user’s needs. Executives want dashboards and scorecards, business analysts need tools for data mining and customers require specific information relating to their requirements. Regulatory users’ may need detailed reports; highlighting exceptions where goals were not met.
Overcoming challenges
Managers need timely, quality information in order to run the business – if they don’t get it, confidence in your BI/MI services is damaged. There’s an emotive element too, when bonuses are monitored by performance determined from your MI/BI service, so a global repository needs common business rules for cleansing, checking, analysing and interpreting data, with local adaptations where necessary. A cross-functional, effective governance structure must be implemented - led by the business not IT.
The true benefits of ‘the truth’
Get it wrong and confusion reigns, get it right and there are huge cost savings to be made; through rationalisation of systems, reduced numbers of support staff, accurate cross charging and allocation. One version of the truth, the right information provided rapidly and more accurately, giving confidence to your business, your people and your customers.