Truth time: business intelligence doesn’t have a stellar reputation when it comes to its failure rate. Gartner says it’s as much as 70%, which is unacceptable in 2013. BI offers so many advantages to companies when implemented correctly, from process improvements to cost savings, and has an ROI of $10.66 for every dollar spent – when done right. This week arcplan put out a press release on the 5 project management reasons why many BI projects are doomed to fail. Check it out and let me know if you agree!
1. Not enough focus on business benefits
Before even evaluating software providers, companies should define the business benefits they want to achieve by implementing a BI solution. Is it to aggregate data in a central location, thereby saving the time and cost associated with manual data gathering and consolidation? Is it to achieve better insight into customer data so programs can be designed to increase profits through upselling? This question is, why are we implementing the solution in the first place? Whatever the reason, it should be defined before kick-off, refined during implementation, and measured afterwards. Any project can be considered a failure if its success criteria are not stated up-front. Management – with input from users – must agree on the criteria and the vendor and project sponsors must ensure that success is measured post-implementation or they risk a lack of user acceptance. arcplan, the #1 Large Enterprise Project vendor for Business Benefits Achieved according to The BI Survey 12 – the world’s largest independent survey of BI users – solicits feedback from a constituency of end users throughout implementation because if their expectations are not met, the BI solution will always underachieve.
2. Vague scope
Anyone with project management experience will say that defining the scope is the most crucial step; without clearly defined and agreed-upon project boundaries and deliverables, there is no chance for success…