You know the gut feeling that leads you to take a different route to work or accept one job over another? Those gut feelings may have led you on the right path, but they’re personal decisions where you have only so much information (a traffic report on the radio or both companies’ financials) and you would expect to make your decision based on gut instinct. These personal choices affect only you and potentially your family in the case of a new job. But relying on gut instinct alone in your business life is a mistake – there’s simply too much supporting evidence to take into account when making business decisions (decisions that affect much more than just yourself). Why play Russian roulette with these decisions when you’re surrounded by analytics?
Sound business decisions are based on facts, data analysis, trend spotting, or other complex calculations, and yes – a bit of intuition. But your instinct should be used as an indicator, not the basis for your decisions. In every business there are variables and unique scenarios that make planning and analysis imperative; neglecting these factors could have serious implications. Consider this example: The 2010 Report of Anton R. Valukas examined the demise of Lehman Brothers, a formerly dominant global financial institution that went bankrupt during the recent financial crisis. It revealed that the company excluded some assets from routine stress performance calculations (meaning the company couldn’t know how much money it was in a position to lose because it was not performing what-if analysis) and valued some real estate investments on a combination of financial projections and “gut feeling” according to a Lehman Brothers vice president. In essence, the company’s business practices lacked analytic insight, or at least the will to get it. There is no doubt that Lehman Brothers had access to multitudes of data on its assets, on the market, and on its level of risk. Armed with this information, I’d hope executives would have made better choices, taken on less risk, and valued their assets more realistically.
Howard Dresner’s Wisdom of Crowds Business Intelligence Market Study was created as a way to give a voice to those actually using BI solutions, creating a new and different perspective for measuring BI vendors and products in the market.
This year’s study is up and running and we invite BI users to participate! If you have 15 minutes between today and April 2nd, please visit the following link and give your feedback:
This year, you can rate up to 5 vendors. Simply loop back through the survey once you’re done to rate additional vendors.
In return, you’ll receive a copy of the study findings. Thank you for your participation!
Cost efficiency, flexibility, and availability of data are key advantages of cloud business intelligence
This year, cloud computing is set to dominate CeBIT, the international IT and telecommunications trade fair held each year near arcplan’s headquarters in Germany. According to a recent survey by the analyst firm IDC, cloud computing will account for 10% of global IT expenditure by the year 2013. While we have taken advantage of cloud offerings in our private lives without hesitation for years (just think of Google Maps and Gmail), businesses have only been comfortable with a few applications (like CRM) residing in the cloud. Many companies still have doubts when it comes to shifting applications into the cloud when security is critical, as it is with business intelligence. Concerns over data security breaches and their consequences are holding some businesses back; however, the advantages of cloud-based BI clearly outweigh the potential drawbacks. Here are our most important reasons for moving business intelligence applications into the cloud.
Cost efficiency is key
Among the greatest advantages of cloud BI are cost savings and reduced capital commitment. Upgrades, maintenance and administration of on-premise software are time-consuming and costly. If companies shift their BI solutions into the cloud, they will no longer have to budget for large, up-front purchases of software packages or carry out time-consuming updates on local servers. In the cloud, upgrades are installed directly by the service provider in near real-time. Using any kind of device (desktop computer, laptop, tablet PC, or smartphone), employees can access the most recent version of their BI solution, independent of location and without having to download upgrades or request updates from the IT department. Users can therefore focus completely on data consumption and analysis, getting the most from BI without having to deal with the infrastructure.
Large- and small-scale flexibility
Companies that manage their own BI systems on-premise have invested in their infrastructure to deal with ever-increasing quantities of data. To analyze data volumes amounting to petabytes or even exabytes and have a 360-degree view of data in real-time, immense processing power and extremely large amounts of memory are required. For processor-intensive BI applications, solutions running in-house can quickly reach their limits. This makes another of cloud BI’s advantages clear: the enormous flexibility afforded by cloud software deployment.