Winning the BI RaceBI software vendors are heading in interesting directions, but deployment problems are still the main barrier to growthby Mark Smith Continued from Page 1 This challenge seems simple, but many vendors have been distracted by other investments (analytic applications, wireless, and ETL, for example) and by keeping up with rapidly changing technology and standards (Web-based architecture, J2EE, ASP/JSP, and so on). The result is less innovation through split product development investments. Some vendors — such as Actuate Corp., Crystal Decisions, and Information Builders Inc. — stick to the fundamental business of QRAP. Meanwhile, a different set of vendors — Cognos, Informatica Corp., and now Business Objects with its acquisition of Acta — leverage data integration to further their ability to deliver a real-time information access and delivery architecture that eliminates the traditional complexity and latency issues. The Drive Toward Performance ManagementThe major focus of the BI market has been on understanding the existing state of business through performance measurement technologies such as QRAP. The ability to support a complete "Decision Cycle" is the pinnacle of BI and the core of performance management. The existing performance management methodologies (Kaplan & Norton, EVA, and Six Sigma) are now beginning to get traction, and vendors such as Hyperion Solutions Corp. and SAS Institute that are creating the ability to embed their own methodologies are getting even more attention. One consequence is that enterprise forecasting and planning have begun to reshape IT's understanding of BI. Many organizations are attempting to integrate their reporting and analysis capabilities with separate planning tools and realizing the full value of products that comply to principles of performance management. Companies such as Adaytum Inc., Hyperion, and OutlookSoft Inc. have demonstrated the tremendous business value that can be achieved through integrated, Web-based planning and analysis tools. E.Intelligence Inc. has demonstrated that integrating the Decision Cycle can drive optimization in the demand chain for retailers and manufacturers. In the EndHas software for BI evolved to help decision makers be more effective in their organizations? Yes and no. Many organizations purchase more and more end-user licenses, but many have yet to deploy them. The basic deployability and scalability of functionality to business and user requirements still plagues most projects. The right level of project management and total cost of ownership skills can really ensure that you make wise BI investments. In the move to provide more complete BI systems that support performance management, a new race has begun. This software will provide seamless access to any information, enable collaboration throughout the business, and drive a simple but methodical approach to the decision-making processes. Be wary of vendor marketing terms (such as analytics or performance management) and be sure vendors keep their promises to give your business users what they need to drive better efficiency and quality for the entire business. Mark Smith [mark.smith@fullcirclestrategies.com] is president and founder of Full Circle Strategies and an industry analyst in the applied use of information by leveraging analytics, BI, and performance management. RESOURCESRelated Article at IntelligentEnterprise.com:
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