Thursday, October 29, 2009

Why BI Projects fail to deliver ROI

One of the RCA's with SAP BW implementation is the Business content that SAP delivers with their BW. This is a beauty and a beast. At the time when everyone wanted to install BW, i.e. from 1999 to August 2008 the looming potential of a BI crisis was only on the horizon. From 2003 to August 2008 BI remained in the # 3 to #2 priority of worldwide CEO's as reported by Gartner, Forrester, AMR and Business Week. Then in Aug 2008 it dropped to the #8 position.

The idea of building BW 'Better, Faster, Cheaper' had failed to quite an extent.

Because so mush investment had been done, and companies still needed to report it moved down to #5. CEO's stated that even though they continued to invest large budgets they were not attaining Business Value in accordance to promises or their expectations.

ROI was just not there.

After 10.08 (October 2008) the world just melted. After that companies realized that good or bad they need reports and analytics. BW teams across the planet were put into high gear and by Feb 2009 BI was the # 1 priority of over 1,400 CEO's interviewed by Gartner.

The reason was that during this crisis analytics and risk analysis was imperative and most essential.

ROI demands reverberated across the plant and I tend to support it

1. Business must take back ownership and accountability of all BI implementations
2. Automation of any manual tasks must replace manual processes - higher quality at lower cost
3. Self-Service Queries are the goal of 2009-12 (which means faster query response)
4. Factory model solutions must be tried and implemented.

While it is important that every project must be delivered on time and in budget. It is more important that it delivers Business Value. It must also look to deliver into the strategic future of business. Quick hits are of little use if they delivery little or no business value.

The type of lead resources you employ will have a direct impact on the end result of the project. Your leads must come from business and application experience. It is more critical you hire the right business resources than ones that understand the technology totally and understand little of business. Winning the technology battle is of little use if it does not meet business requirements. Does this mean you can ignore technology, of course not.

Finding BVA is critical and technology is the catalyst that allows proactive management to achieve greater heights with proper business alignment while leveraging technology solutions.

No comments: