View
215
Download
0
Category
Preview:
Citation preview
IN ASSOCIATION WITH:
BREAKTHROUGHBUSINESS INTELLIGENCE
HOW STRONGER GOVERNANCEBECOMES A FORCE FOR ENABLEMENT
Introduction/Key Findings
Part One: Companies Are Reporting Significant Benefits From Their BI Programs
CASE STUDY—CA Technologies: Look Forward and Outward (Not Inward and Backward)
Part Two: But There’s Much More to Be Done to Improve Business via BI
CASE STUDY—Bajaj Auto: Using Data to Deliver Remarkable Results
Part Three: Improving BI: The Key Catalyst Is Governance
CASE STUDY—MTS Sensor Technologies GmbH & Co.
CASE STUDY—Singapore Management University: Determining Which Data Is Useful
Part Four: Conclusion: Governance Enables Success
Methodology
Acknowledgments
CONTENTS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
2
4
7
8
11
12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
15
16
17
17
2 | BREAKTHROUGH BUSINESS INTELLIGENCE
INTRODUCTION
In research conducted by Forbes Insights, organizations report that they are obtaining breakthrough returns
from investments in business intelligence (BI). BI solutions are embedded throughout industry leaders across
the world. Meanwhile, with so many more data and self-service analysis solutions at their fingertips, executives
and their reports are being transformed from mere managers to true information workers. The success of these
programs is yielding substantial benefits, both tangible and intangible.
But despite such positive results, executives nonetheless recognize that there’s much more to be achieved.
Companies today are concerned they may be leaving too much potential BI-generated performance on the
table; fewer than half feel they are gaining full benefit from their programs. In particular, executives report that a
variety of issues remain a concern. Key among these: less than optimal adoption rates, lingering silos, multiple
“versions of the truth” and security.
The way forward? It may sound counterintuitive, but to achieve breakthrough performance in harnessing
insights from data, companies need to pay closer attention to data governance. Stronger governance helps
ensure not only consistent but also reliable and optimized results. This in turn delivers stronger data-driven
performance, leading to even greater awareness, momentum and adoption.
The challenge: developing governance processes that can co-exist with the need for greater data access and
flexibility among distributed knowledge workers.
3|COPYRIGHT © 2016 FORBES INSIGHTS
BI programs are today delivering remarkable business results. Four out of five organizations (81%) report that
they are experiencing “very significant” (45%) or significant (36%) business benefits from their BI programs.
These findings are consistent across industries and geographies.
But as e�ective as BI can be, a range of issues continue to plague the realization of its full potential, including
inconsistent data, multiple versions of the truth, inconsistent formulas/definitions and limited adoption across
the enterprise. The common thread: all can be addressed via better governance.
As a result, less than half of survey respondents (48%) feel their current approach is yielding full advantage of
the business improvement opportunities a�orded by BI.
In terms of benefits to date from BI, in three out of four cases, respondents say they are realizing a mix of
tangible and intangible benefits—in both instances substantial. The benefits also span a wide range of organi-
zational activities and business processes. These include improved customer metrics, accelerated time to
market, stronger product and service mixes, enhanced brand valuation and recognition, and higher
profitability.
Executives recognize the importance of governance in BI, as over three-quarters (78%) say data governance
is either vital or important to their BI operations, and 65% say governance is a useful means to empower
end-users to uncover new insights.
Most say they are taking important steps in governance, with 83% managing data access at the departmental
level, 81% assigning data access by role, and 76% mandating the use of specific BI solutions and dashboards.
Though such actions may moderate BI, in the broader context of operations, they tend to improve overall
outcomes.
Fifty-seven percent agree or strongly agree that end-users who acquired or developed their own BI systems
independent of a centralized BI or IT function are today turning to centralized IT or BI departments for
enhanced governance. This is yet another indication of the importance of governance in getting the most
from BI solutions.
Going forward, the structure of BI will feature:
Less IT control
An increase in standalone, independent BI functions
Greater structure, planning, and governance; fewer ad hoc characteristics
A greater mix of centralized/decentralized approaches
All amid a greater understanding of the vital role of governance in improving—not restricting—the perfor-
mance of BI.
KEY FINDINGS
4 | BREAKTHROUGH BUSINESS INTELLIGENCE
Speak with a range of executives and each will have
their own definition of business intelligence (BI). Still,
one of the most widely accepted general descrip-
tions comes from Gartner:
Business intelligence: An umbrella term that
includes the applications, infrastructure and tools,
and best practices that enable access to and analysis
of information to improve and optimize decisions and
performance.1
1Gartner IT glossary, http://www.gartner.com/it-glossary/?s=Business+intelligence
Figure 1. Across the full spectrum of industries and countries surveyed, BI delivers significant benefits
By Industry: By Country:
Business or Commercial Services
Retail
Banking
Insurance
Manufacturing
Healthcare
Financial Services
Automotive
Media & Entertainment
India
Italy
Netherlands
Germany
France
Japan
Spain
US
Consumer Packaged Goods
Sweden
Life Sciences
Energy
88%
86%
85%
85%
81%
81%
80%
76%
76%
75% 69%
92%
86%
86%
86%
84%
81%
81%
78%
72%
74%
68%
UK
I. Companies Are Reporting Significant Benefits From Their BI Programs
Regardless of the precise definition, BI programs are
today delivering remarkable business results.Four
out of five organizations (81%) report that they are
experiencing “very significant” (45%) or “significant”
(36%) business benefits from their BI programs.
Moreover, it doesn’t seem to matter which industry is
under the microscope—the results are still highly
positive. As Qlik’s Mike Saliter, VP of global industry
solutions, explains, “The beauty of analytics is that it
doesn’t matter whether it’s a [sole proprietor] pizza
shop, a [large-cap industrial] startup technology com-
pany or anything in between: done well, there can be
quantifiable benefits in any organization.”
[BI] helps us break down and continuously refine and improve our performance against processes that drive objectives.
—Kai Cheong LauCIO, Singapore Management University
“
5|COPYRIGHT © 2016 FORBES INSIGHTS
Benefits abound
Reported improvements, respondents say, are in
three out of four cases (76%) a mix of tangible and
intangible benefits—in both instances substantial.
The benefits also span a variety of organizational
activities ranging from stronger product/service
mixes, enhanced brand valuation/recognition and
higher profitability to improved customer metrics and
accelerated time to market.
For a strong example, consider New York-based
enterprise software developer CA Technologies.
Saum Mathur, SVP, big data analytics & information
management, says that the firm derives “enormous
benefits from our work in BI.” Mathur splits such
benefits into two key categories, strategic and tacti-
cal.
In terms of strategic benefits, big data and related
work “gives us a clearer idea of which sorts of com-
panies should buy from us; who are the most likely
prospects.” On a tactical level, BI helps the company
identify specific individuals within each company
who are the most likely buyers or influencers for CA
Technologies products and services. Mathur uses
data to sharpen the company’s marketing and sales
focus from “B2B” to “B2I—business to individual.”
B2I, says Mathur, reflects a seismic shift as “digital
transformation brings about the rise of the individu-
al.” In the rise of the “App economy,” traditional
means of engaging with B2B customers are disap-
pearing or “gone.” As Mathur continues, whether for
a business customer or an individual, “everything
happens online.” To hold on to a competitive advan-
tage, “companies must arm their sales and marketing
with new strategies that focus on knowing their
customers as individuals, and reaching them in ways
that will influence these key business decision
makers to buy.” As such, says Mathur, B2I is far more
precise, leading to benefits such “as greater sales-
force e�ectiveness and higher conversion rates.”
The value of intangibles
The true benefits of BI are likely even more signifi-
cant than most executives are able to measure. “It’s
relatively easy to measure how BI can help cut costs
and drive revenues. For example, conversion rates
improve, product cross-selling increases or expens-
es are reduced,” says Saliter. Far more di�cult: plac-
ing a value on benefits such as improving product
quality or making better decisions faster. Saliter
concludes, “The true business benefits of delivering
greater business insight into the hands of more
people—of empowering decision makers faster—is
likely far greater than most recognize.”
Kai Cheong Lau, CIO of Singapore Management
University, expresses complete agreement. BI drives
process improvements, certainly, but the true value
of BI, says Lau, “is that it can empower an organiza-
tion to achieve its core objectives.” For SMU, Lau
explains, “the two things that matter most are how
well we deliver our teaching and learning and how
e�ectively we create new knowledge and research.”
BI “helps us break down and continuously refine and
improve our performance against all of the process-
es that drive those two objectives.”
Similarly, Lau describes how BI is being used to
improve the curriculum for targeted sets of attend-
ees. The university, Lau explains, “gets its students
from many sources.” Using BI, “we can see how
di�erent [sets of] students are performing in various
classes.” From this, “we are able to do a more e�ec-
tive job of aligning classwork to be more appropriate
for specific groups of students.”
Going forward, says Lau, BI is catching on quickly at
SMU. Five or six years ago, when the program start-
ed, “it was di�cult for us to explain the benefits.”
Today, however, “we have many champions in the
[organization] who are [quite vocal],” and thus, says
Lau, “we are expanding our reach, developing more
dashboards for more business [units] all the time.”
The benefits of BI are a mix of tangible and intangible benefits—substantial in both cases
The benefits are primarily tangible
The benefits are primarily intangible 76%
17%
7%
Figure 2. BI drives substantial tangible and intangible benefits
Figure 3. Where is BI driving results?
Brandvaluation/
recognitionLogisticsPricingRevenuesEmployee
metricsProfitabilityTime tomarket
Customermetrics
Product/service mix
90% 71% 69% 67% 66% 61% 58% 58% 52%
6 | BREAKTHROUGH BUSINESS INTELLIGENCE
In this sense, says Lau, “BI is an essential and invalu-
able tool.” BI “leads to better decisions, more
e�cient processes and better coordination across
the university.” Though performance improvements
can indeed be measured in virtually “every instance
where we have applied BI [solutions],” overall, “you
cannot put a price that would equate with its real,
total value.”
Benefits from BI for SMU abound. For example,
productivity savings range from 30% to 50% in
analyzing student data and meeting statutory report-
ing requirements, thanks to clearer and more
e�cient access to data.
7|COPYRIGHT © 2016 FORBES INSIGHTS
CASE STUDY
Saum Mathur, SVP, big data analytics & information management, at CA Technologies, believes there is no ques-
tion that companies should be doing more to harness BI insights from their enterprise data. But traps to avoid,
adds Mathur, include focuses on purely internal or past data. The value of BI, says Mathur, stems from looking
“forward” and “outward.”
As Mathur explains, for some products, “historical data may be helpful.” But in technology, “our world changes
constantly.” So while historical enterprise data may be helpful to a degree, where the company derives its real
value from BI “is through the use of external data, showing us where the market is going.”
A key problem with enterprise data is that it can be “limited in its accuracy because the market, customer buying
patterns and products change so quickly in our industry,” says Mathur. In addition, “it only shows what [a custom-
er] buys or has bought from us.” But the more important questions, says Mathur, are “what are they buying in
total, from all sources, and what do they actually need?” CA Technologies knows the traits of those most likely
to buy its products. So by harnessing and analyzing external data, the company can build a more complete
picture of business at large in order to better identify, prioritize and target likely prospects.
Such analysis looks at current sales, but also develops a snapshot of a prospect’s propensity to buy based on
their strategies, interests and buying patterns. By taking a look “at their demand side—what are they procuring?”
for example, Mathur’s team is able to identify growth before it translates into published revenue or income state-
ments. Similarly, CA Technologies combs through external data sources such as social media data to identify
surges in interest and intent to purchase in any given company, often a signal of growth in the works. (Note: the
survey shows 42% respondents using social media in their BI programs, rising to 55% over the next 18 months.)
Overall, says Mathur, businesses that are experiencing strong growth, participating in the "App economy,"
and/or are undergoing digital transformation tend to be solid candidates for the company’s products. Conse-
quently, “we seek to build the whole picture to see if they fit the profile to be a buyer of our products and
improve our targeting.”
“—Saum Mathur
SVP, Big Data Analytics & Information Management, CA Technologies
[Enterprise data] only shows what [a customer] buys or has bought from us.” [The more important questions are] “what are they buying in total, from all sources, and what do they actually need?”
Figure 4. Social media on the rise
18%
12%
15%
12%
25%
21%
23%
37%
19%
18%
Now
Next 18 months
Not At All 2 3 4 5 • Extensively
CA TECHNOLOGIES:LOOK FORWARD AND OUTWARD (NOT INWARD AND BACKWARD)
For starters, less than half of survey respondents
(48%) feel their current approach is yielding full
advantage of the business improvement opportuni-
ties a�orded by BI.
Figure 5. Less than half are gaining full advantage of the business improvement opportunities a�orded by BI
By Industry:
Energy
Media & Entertainment
Services
Financial Services
Banking
Insurance
Retail
Consumer Packaged Goods
Pharma/life sciences
Germany
France
Netherlands
Italy
India
Spain
US
UK
Public sector/government
Japan
Technology (software)
Healthcare
64%
56%
52%
52%
52%
48%
45%
45%
44%
44% 33%
58%
57%
50%
53%
48%
48%
46%
41%
42%
41%
38%
By Country:
Sweden
8 | BREAKTHROUGH BUSINESS INTELLIGENCE
II. But There’s Much More to Be Done to Improve Business via BI
As positive as the preceding news may first appear,
the fact is, companies still have a long way to go if
they hope to extract optimal value from BI. There’s
no question that today’s programs are delivering
significant value. Nonetheless, the survey and the
interviews highlight an array of shortcomings.
The deeper the survey drills, the more shortcomings
are revealed. For example, companies report:
Inconsistent data sources Three out of five com-
panies (61%) say their organization experiences
significant instances where needed or useful data
isn’t always available. For various reasons, the
data source—which could be anything from a
supplier, partner, government agency or related
business unit—is on again/o� again or completely
shuts o�.
Incomplete data Nearly as large a percentage
(57%) say their BI operations su�er from occasion-
al bouts of incomplete data—a figure increasing to
73% among manufacturers.
Di�culty accessing data Less than half (46%) say
line-of-business leaders, business analysts,
customer-facing employees and those similarly
placed to create value for the business have
unencumbered access to all of the data and solu-
tions they need. Essentially, over half are saying
more attention is needed.
Lack of access to solutions Three out of five, 63%,
say they need to take more steps to place more
data and analysis solutions in the hands of deci-
sion makers.
Limited views into the business A mere 38%
agree or agree strongly (31% and 7%, respectively)
that their current set of BI solutions provides their
business units with a complete picture of their
operations. At best, this means 62% of companies
believe greater BI resources are needed in a
wider range of functions and processes. At worst,
those failing to express such agreement are
indicating that BI as currently practiced could in
fact be leading to false conclusions based on
incomplete data.
The issues hampering optimum e�ectiveness of BI
programs do not stop there. Asked to acknowledge
whether or not their organizations are experiencing
significant instances of a range of BI obstacles and
challenges, respondents frequently reported:
Only 45% say they are absolutely certain
(26%) or certain (18%) that all BI teams are
using the same data (33% healthcare, 32%
media and entertainment, 27% telecom).
Only 50% are absolutely certain (34%) or
certain (16%) that all end-users have access to
the latest updates to their datasets.
Only 45% are absolutely certain (25%) or
certain (20%) that their teams are using abso-
lutely consistent formulas, definitions and
terminology relating to key measures across
the enterprise (20% CPG).
9|COPYRIGHT © 2016 FORBES INSIGHTS
Data silos Fifty-six percent of organizations—rising
to 76% and 68%, respectively, among healthcare
and financial services firms—report instances when
data is inaccessible or not widely shared. This can
be caused by perceptions that privacy or regulato-
ry issues (such as HIPAA data in healthcare)
prevent such sharing. But in truth, says Saliter, “in
most cases, providing self-service BI capabilities
with governed data will result in greater sharing
and use.”
Multiple “versions of the truth” Over half, 53%
(rising to 68% in media and entertainment and 67%
in healthcare) say that their BI processes deliver
inconsistent or unreliable conclusions. This is most
often the result of a lack of BI oversight or gover-
nance, leading to di�erent groups using varying
formulas, definitions or datasets—all of which is
confirmed by these findings:
10 | BREAKTHROUGH BUSINESS INTELLIGENCE
Figure 6. Symptoms of less-than-optimal BI
61% 57% 56% 53%
Inconsistentdata sources
Incompletedata
Data silos Multiple “versionsof the truth”
Most frequent in…
69% 73% 76% 68% 68% 67%
Services Manufacturing Healthcare Financialservices
M&E Healthcare
Users are readily able to discover, use and build upon relevant work developed by other users
Our BI function has strong control of and insight into our BI processes and solutions
Our BI function rapidly and capably assimilates and disseminates techniques, applications, insights, visualizations and related advances developed by end-users
Users are readily able to produce faster/better results owing to access to ready-made applications/visualization/dashboards or related BI assets
Figure 7. There is room for significant improvement
The simple truth is that, as successful as BI is already proving, executives recognize that their organizations can
do better.
50%
34%
54%
56%
11|COPYRIGHT © 2016 FORBES INSIGHTS
CASE STUDY
Rajeev Jorapur is the VP of management information systems at India-based Bajaj Auto Limited. Upon joining
the firm in 2013, his “objective was to grow our BI function. We suspected we were sitting on a lot of valuable
data, but other than exporting data to a few spreadsheets and generating a few reports, we weren’t extracting
more value out of it.”
Indeed, the company had a number of enterprise-level BI assets in place. But “what we needed,” says Jorapur,
“were ways to more clearly visualize, assess the quality of and develop a better understanding of what data
would be the most actionable.”
After considering an array of what Jorapur refers to as “discovery [solutions and] tools,” the company settled
on o�erings from Qlik. Overall, says Jorapur, “Qlik was the most useful for visualization, formatting and discov-
ery, as well as easy to learn, which is [vital] to implementation and adoption.”
One of the first questions explored: how could the company use the data related to its retail business to
increase its domestic sales? As Jorapur recalls, “We were doing well in international markets, but not at home.”
Turning its BI focus to dealership performance, breakthrough insights soon followed. “We could see which deal-
ers performed well for us—and we were able to develop some good ideas about how they function.” From
there, it was a simple—but disciplined—matter of reconfiguring the network, taking steps such as upgrading
processes at underperforming dealerships.
Bajaj Auto now shares performance tracking as well as sales targeting data throughout its domestic dealership
network. In terms of governance, the data model, solutions and dashboards are “modeled centrally.” Mean-
while, individual dealerships “see only that data for which they are authorized via a secure network.”
Using data to improve dealer performance delivers “remarkable” results, says Jorapur. Dealers, for example,
were able to reduce administrative costs by 50%. Insights gained also enabled dealers to increase follow-up
calls to prospects and customers by more than 50%. Both moves, notes Jorapur, helped drive profitability for
the dealers. Overall, “it paved the way for data-driven marketing and service campaigns, enhanced warranty
analytics, gave real-time visibility into the performance of new-product launches—and increased the ease of
doing business.”
Nonetheless, the BI journey at Bajaj Auto is by no means at an end. As Jorapur concludes, “We are really just
at the beginning; there are many additional areas yet to be explored.”
—Rajeev Jorapur VP of Management Information Systems, Bajaj Auto Limited
What we needed were ways to more clearly visualize, assess the quality of and develop a better understanding of what data would be the most actionable.
BAJAJ AUTO:USING DATA TO DELIVER REMARKABLE RESULTS
“
12 | BREAKTHROUGH BUSINESS INTELLIGENCE
As e�ective as BI can be, think about all of the issues
that plague the realization of its full potential: incon-
sistent data, multiple “versions of the truth,” inconsis-
tent formulas and definitions, and limited adoption
across the enterprise. The common thread: all can be
addressed via better governance.
The term “governance” has a bad reputation at most
companies, says CA Technologies’ Mathur, “because
most people associate that term with strict control.”
Consequently, the term is “banned in association with
BI” at CA Technologies, where it has been replaced
with the term “enablement.” Indeed, says Mathur,
steps such as standardization of definitions and
formulas, improving data security and enabling
secure access—all steps typically associated with
governance—“are the means to enabling better BI.”
Venilla Vetrivillalan is senior manager, integrated
information technology services, at Singapore Man-
agement University (SMU). Vetrivillalan agrees that
the role of governance is to provide the “foundation,”
which in turn “improves the experience for users.”
This, she says, “drives adoption, success, innovation
and further improvements.”
Over three-quarters (78%) say data governance
is either vital (60%) or important (18%) to their BI
operations, while 59% say governance is critical
to “all we do”
65% say governance is a useful means to
empower end-users to uncover new insights
53% say governance is a compliance require-
ment that limits agility (70% insurance; 64%
financial services; 62% telecommunications)
Moreover, most say they are taking important steps in
governance. For example, 83% manage data access
at the departmental level, while 81% assign data
access by role. Three out of four (76%) mandate the
use of specific BI solutions/dashboards. Note that
while such steps are important, they need to be
executed within the broader context of enhancing
the overall value of a BI program.
III. Improving BI: The Key Catalyst Is GovernanceThe survey indicates that companies indeed recog-
nize the critical role of governance within BI. Among
core findings:
MTS SENSOR TECHNOLOGIES GMBH & CO. CASE STUDY
Most executives say they are taking important steps in governance. The survey, for example, shows that 83%
manage data access at the departmental level, and 81% assign data access by role. Three out of four (76%) man-
date the use of specific BI solutions/dashboards. While such steps are important, they need to be executed
within the broader context of enhancing the overall value of a BI program.
Controlling who is able to see what data and when is actually a means to enabling broader general access to
data– this is an idea that absolutely resonates with Carolin Borchert, worldwide business systems analyst, data
warehouse & analytics, at Germany’s MTS Sensor Technologies GmbH & Co. “When customers have a question,
it is very important that our people can provide the correct answers,” says Borchert. But due to data privacy rules
and related considerations, access to customer data must be carefully managed.
So MTS uses Access Point, an application within QlikView, to control access to its Qlik-based solutions. “We have
very good control: there’s a single sign-on, but from there we can adjust what each person sees; the kinds of
data they can access.” For example, “a sales manager may only see customers in their own region.” Today, the
company has 110 users, but the workload to manage the program is still “quite small.” As Borchert explains: Qlik
“allows us to set easy rules using scripts to structure the data.” Overall, says Borchert, “governance is critical, but
it is because we have strong governance that we can provide our people with so much access to data.”
13|COPYRIGHT © 2016 FORBES INSIGHTS
Overall, three out of five companies (59%2), already
indicate that they believe their governance e�orts
are either e�ective (30%) or highly e�ective (30%)
within BI operations. However, the earlier mentioned
list of value-eroding/limiting challenges and
concerns remains inescapable. All are symptoms of
inadequate governance; all can be addressed via a
more consistent approach to governance.
Another key trend: 57% either agree or strongly agree (27% and 30%, respectively) that end-users who
acquired or developed their own BI systems independent of a centralized BI or IT function are today turning to
our centralized IT or BI department for enhanced governance. What this indicates is that while early e�orts
were no doubt successful, knowledge workers themselves are realizing their companies can go still further
with a more coordinated, disciplined e�ort. In short, this finding demonstrates end-users recognize that greater
governance can lead to better outcomes.
2Di�erence due to rounding.
“—Carolin Borchert
Worldwide Business Systems Analyst, Data Warehouse & Analytics, MTS Sensor Technologies GmbH & Co
Governance is critical, but it is because we have strong governance that we can provide our people with so much access to data.
Figure 8. Companies are taking important steps in governance
83% 81% 76%
manage data access at thedepartmental level
assign data access by role mandate the use of specificBI solutions/dashboards
Mandating specific dashboards, one of the core
governance steps revealed by the survey, can help
companies address challenges such as inconsistent
data, formats, formulas or similar problems. The most
experienced data executives do the background
work to ensure solution integrity and to provide the
lion’s share of core information, but end-user knowl-
edge workers have anytime, anywhere access along
with the flexibility to run their own analyses.
14 | BREAKTHROUGH BUSINESS INTELLIGENCE
The key: control amid balance
Though companies are recognizing the vital impor-
tance of sound governance practices, they are by no
means seeking to create any sort of inflexible BI
leviathan. Rather, the survey shows that more compa-
nies will be migrating BI from a function controlled by
IT into either (a) a dedicated BI function, or even more
so, (b) a more even mix of centralization/decentraliza-
tion. In general, BI is becoming less of an ad hoc
endeavor implemented by business units and more
of a well-planned and implemented group-wide strat-
egy. Fundamentally sound governance is vital to
these e�orts—but it is being implemented within an
ethos of enablement, not control.
Note that today, most companies (68%) say their BI
function exhibits a relatively even mix of centraliza-
tion and decentralization. Specifically:
Going forward, the structure of BI will feature less IT
control alongside an increase in standalone, inde-
pendent BI functions. In addition, BI will exhibit fewer
ad hoc characteristics while adopting a broader mix
of coordination between centralized and decentral-
ized approaches overall. Greater governance is
becoming evident. But at the same time, companies
are recognizing the importance of enabling greater
access to the field.
In the end, a key challenge of any self-service envi-
ronment is that executives are able to obtain access
to information very quickly. “Governance requires a
really fine balance—governing to the point where
consistency is assured, but flexibility remains,” says
Saliter. “There is no perfect formula, but finding the
right governance level within your organization’s
culture is a critical component to making the most of
BI opportunities.”
The face of BI is shifting… Today Next 18 months LESS IT CONTROL BI managed by IT 18% 11%
Dedicated BI function within IT 24% 14%
GREATER INDEPENDENCE Independent BI function 16% 24%
LESS AD HOCAd hoc/distributed (end-users handle) 21% 17%
GREATER COORDINATIONMix of centralized/distributed 21% 34%
“—Mike Saliter
VP, Global Industry Solutions, Qlik
Governance requires a really fine balance—governing to the point where consistency is assured, but flexibility remains.
Figure 9. Which of the following best describes your approach to BI?
19% of users obtain access to applications,
tools, dashboards, datasets and visualizations
that are centrally created/controlled
13% of users create their own applications,
tools, dashboards, datasets and visualizations
68% experience a relatively even mix of the two
15|COPYRIGHT © 2016 FORBES INSIGHTS
One of the key challenges in BI is determining what data can actually be useful. At Singapore Management
University (SMU), “we took a three-step approach” to initial development work, explains Venilla Vetrivillalan,
senior manager, integrated information technology services.
Although executives “need and use information,” says Vetrivillalan, “they often won’t be able to tell you what
their most important KPI might be.” So the IT manager begins the process with a “bottom up” study. Here, says
Vetrivillalan, “we categorize the data that is available, what is captured at the source and could be used later in
the process.”
Step two, “we work with the senior managers to get a clear idea of the kinds of decisions they are making and
need to make.” Armed with information about what might be made available, Vetrivillalan is in a strong position
to have a meaningful dialogue, adding value to the process. Here, the executive explains, “we begin prototyp-
ing the KPIs” that will be tracked on dashboards to come.
Step three “is where we work backward: we can see what data we have, we can see what the executives need,
and we can pinpoint any gaps in the data.” Missing pieces, says Vetrivillalan, are often surprisingly easy to fill
in. “About 30% to 40% of the time, it’s available in a spreadsheet somewhere that no one knew to [track down].”
Alternatively, “it could be lying on the desk of someone senior” who might not recognize its value to others.
Bottom line, says Vetrivillalan, “once we know what data we really need, we can break down the silos and get
it done.”
The role of governance
Governance, says Vetrivillalan, is critical. “We have to avoid incomplete data sets, corrupted data, [faulty defini-
tions and formulas] as well as [improper] access and [other breaches] of data privacy.” So SMU is careful to
designate an orthodoxy of data owners (ultimate authority), data stewards (shared responsibility) and data
users. “Who generates and authenticates the data, who can see it and use it—the rules are very clear and very
strict.”
But ultimately, says Vetrivillalan, governance is not so much a force for control, but rather a driver of success.
“If the data is no good, if the dashboards are ine�ective, then we obtain no value from BI.” Sound governance,
concludes the executive, is what turns BI from a hit-or-miss proposition to something capable of “sustainable
success.” Without sound governance, “you cannot build forward.”
“—Venilla Vetrivillalan
Senior Manager, Integrated Information Technology Services,Singapore Management University
If the data is no good, if the dashboards are ine�ective, then we obtain no value from BI.
CASE STUDY
SINGAPORE MANAGEMENT UNIVERSITY:DETERMINING WHICH DATA IS USEFUL
16 | BREAKTHROUGH BUSINESS INTELLIGENCE
The common thread among these and many related
issues is that they can all be addressed through
enhanced governance.
But if governance is to succeed, this cannot be the
traditional command-and-control approach of old.
Rather, to be widely successful—to engage all those
in the organization who stand to benefit from more
e�ective data analysis—any approach to governance
must adopt a sense of enablement.
IV. Conclusion: Governance Enables Success
It is indeed a grassroots data revolution. Better BI
solutions in the hands of more analysts and manag-
ers are delivering breakthroughs in business perfor-
mance. But as successful as such programs are prov-
ing, executives themselves recognize an array of
issues that are hampering further advances. Key
among these:
Inconsistent definitions and formulas
Limited adoption
Multiple “versions of the truth”
Silos
Data security and privacy
Leaders in this revolution are not seeking to limit
access to data, but rather, to actively promote its
value and usage.
It is within this context that BI teams should not only
develop but also work to help users understand the
importance of core governance practices. It is only
through sound governance that users will be able to
consistently rely on their own analysis and insights.
And, as more and more astute analysis prompts still
more business success, both adoption rates and
compliance with core policies become optimized. In
the end, sound governance really is the means to
optimized enablement.
17|COPYRIGHT © 2016 FORBES INSIGHTS
METHODOLOGY The insights and commentary found in this report are derived from both a global survey and one-on-one
interviews.
The survey ran from July to August 2016 and was completed by 437 respondents (see appendix below). Addi-
tional insight was obtained from interviews with a handful of executives. Those named in the research include:
Forbes Insights and Qlik are grateful to our named interviewees and survey respondents.
APPENDIX: SURVEY DEMOGRAPHICSLOCATION: U.S. (17%), EMEA (56%), APAC (24%)
EMEA: France (8%), Germany (8%), Italy (8%), Netherlands (8%), Spain (8%), Sweden (8%), U.K. (8%)
APAC: Japan (8%), India (8%), Australia (4%), New Zealand (4%)
TITLE: CIO (44%), VP/Business Unit Director (33%), CFO/Treasurer/Controller (9%), Chief Marketing O�cer (8%)
INDUSTRY: Automotive (6%), Banking (6%), Consumer Packaged Goods (5%), Energy (6%), Financial Services
(6%), Healthcare (5%), Insurance (6%), Manufacturing/Industrial (8%), Media & Entertainment (6%), Pharmaceuti-
cals/Life Sciences (6%), Public Sector/Government (6%), Technology/Software (6%), Telecommunications (6%),
Retail (7%), Services (10%)
To learn more, visit www.qlik.com/whole-story
Carolin Borchert, Worldwide Business Systems Analyst, Data Warehouse & Analytics, MTS Sensor
Technologies GMBH & Co
Rajeev Jorapur, VP Management Information Systems, Bajaj Auto Limited
Kai Cheong Lau, CIO, Singapore Management University
Saum Mathur, SVP, Big Data Analytics & Information Management, CA Technologies
Mike Saliter, VP, Global Industry Solutions, Qlik
Venilla Vetrivillalan, Senior Manager, Integrated Information Technology Services, Singapore
Management University
499 Washington Blvd., Jersey City, NJ 07310 | 212.367.2662 | www.forbes.com/forbesinsights
FORBES INSIGHTS
Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 75 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights conducts research on a host of topics of interest to C-level executives, senior marketing professionals, small business owners and those who aspire to positions of leadership, as well as providing deep insights into issues and trends surrounding wealth creation and wealth management.
ABOUTFORBES INSIGHTS
Bruce RogersChief Insights O�icer
Erika MaguireDirector of Programs
Andrea Nishi, Project ManagerSara Chin, Project Manager
SALES
North America
Brian McLeod, Commercial Directorbmcleod@forbes.comMatthew Muszala, ManagerWilliam Thompson, Manager
EMEA
Tibor Fuchsel, Manager
APAC
Serene Lee, Executive Director
EDITORIAL
Kasia Wandycz Moreno, DirectorHugo S. Moreno, DirectorWilliam Millar, Report AuthorKelly Stahley Crean, Designer
RESEARCH
Ross Gagnon, DirectorKimberly Kurata, Research Analyst
Recommended