One of the biggest mistakes companies make in implementing business intelligence is in defining the scope of the implementation.

With data consolidation and management such a massive challenge to kick off any BI program, it is not surprising that most scopes are limited data and software [and the associated IT infrastructure].

Whilst software and data provide the tools and raw content for BI, a full business intelligence capability depends on a whole chain of processes, disciplines and working practices to be deliver value to the business. Having a piece of business analytical software tell you more about your business [dat] than you ever envisaged is a waste of effort if there is no mechanism to act upon that information.

There are at least three imperatives that need to be satisfied for BI tools to deliver real value:

1. Actionable business decisions that can be supported with relevant data. Without that follow-through, you are just staring at ’so-what’ and ‘what-if’ data
2. Management processes into which BI insights can be fed – that triggers some monitored action
3. A virtuous feedback loop that drives further query refinement and analysis – better questions deliver better answers which lead to smarter actions.

Whilst this may seem obvious when reading it on this page – the enormity of dealing with data and IT infrastructures to support BI tends to cloud over the obvious – how users interact with BI is more about how to use the software. Effective BI works tightly with Corporate Performance Management and Business Process Management systems.

Effective business intelligence users have:

1. Strategic Strength – a strong link between the vision and strategy of the organization and the practical provision of information
2. Tactical Action Plans – structured opportunities to drive performance and meet strategic goals
3. Measurable Targets – well-defined business aims integrated into a performance management framework and culture

Thus the logic delivered from BI tools must extend beyond the computer screen and into processes and performance management systems.

Get this part right and success will flow.