subject: There is often no Intelligence in Business [print this page] There is often no Intelligence in Business
Business Intelligence does not actually refer to the IQs of CEOs and VPs although there can be a correlation. Business Intelligence actually refers to modern techniques in computing that mine and analyze business related data, such as sales, revenue, customer volume, market share, etc. It involves a series of computer applications to dig deep into available data and get to the root of issues, determining what is statistically significant and may represent a trend, an outlier, or a predictor of future behavior. This output can be the lifeblood for a successful business. It represents an opportunity to gain an advantage on one's competitors.
Surprisingly, as much as we are willing to use technology in other aspects of our life, many companies do not use this technique in its decision making. While automation is becoming more common at the base levels, company heads are still often reluctant to put too much faith in technology when it comes to actually making decisions. They often see Business Intelligence as an expensive tool or just as a buzz word that will not be able to tell them anything that they cannot already see with their own two eyes. In reality, that is the exact purpose of Business Intelligence. Our eyes and ears are often deceiving (in addition to the fact that many companies' are run from ivory towers). When we are too close to a situation and/or have a personal stake in projects or products, we allow biases or preconceived notions to often cloud our judgment. The purpose of Business Intelligence is to cut past these prejudices and dig deep into the data to tell us what we are missing. Marketing is a big forest with a lot of trees and technology is a great tool to help us see through them.
None of this is to say that Business Intelligence should be used exclusively to make decisions. It is a tool to be used like any other. Besides, Business Intelligence computing is not the end in and of itself. It often provides noteworthy information, but it is up to talented individuals (or Business Intelligence Consulting firms) to determine what exactly this data means. For example, we can see a downward trend in sales in a select area of the country. But, analysts can tell us whether this was the result of a downward cycle, freak event, or actual indicator of poorly performing products. Companies need to find a balance between ignoring Business Intelligence results and being completely dependent on it to make their decisions for them.
Ultimately, the success of Business Intelligence lies in how it is implemented by management. There has to be a commitment to the process and how it is used in decision making. If decision makers put great faith in a poorly designed project, the results are going to awful. Likewise, if the design is flawless but the management team never puts any faith in its results, then it is serving no worthwhile purpose. Successful companies design good processes and use the results as a major factor in determining their strategy and tactics.
