When it comes to using BI (Business Intelligence), critical thinking and strategy are involved. Bad data practices and tactical errors often hinder the effectiveness of a firm’s BI data strategy. However, these mistakes can be fixed. Managers know the importance of having high-quality, organized data when making business decisions. Not only should that data be organized, but also be accurate and in user-friendly formats. This can be a challenge for some businesses to accomplish. In such scenarios, this challenge is handed over to professional data specialists, who can help you set your targets straight, work on relevant data, keep it organized, and much more.
Although these hurdles are part of business development, some firms may not know what challenges they face. This is why we have listed the common ways businesses can fail at using BI strategy. If you are interested in determining what ways you as a business may be failing at BI, you have come to the right place. Let us delve into how businesses could fail at using BI strategies.
10 Reasons You May Be Failing at BI
1. Improper User Training
Training is mandatory for using BI, especially when new to the game. Lack of training throws a wrench into the system’s effectiveness. Without training, users applying BI strategies struggle to navigate the software, interpret insights, extract data, and more, which can lead to underutilized features. This further results in misinterpretations of graphs because of the lack of data visualization and literacy in the subject. Even if you own the most effective resources and advanced technology/software, using them can be seen as a waste of time without proper training and guidance. This kind of issue can be prevalent among young professionals and new users.
It takes knowledge and judgment to avoid this blunder. While inexperienced and eager Business Intelligence risk, the developing prospect in doing research can cause more mayhem to the firm. To prevent this, comprehensive training goes beyond say; it equips your team to ask the right questions, understand data visualizations, analyze data effectively, and communicate findings clearly. By investing in user proficiency, you empower them to become data champions, unlocking the true potential of BI and driving data-driven decisions throughout the organization.
2. Lack of Clear Targets
Setting a goal before starting anything helps you visualize and aim in the right direction. This is compulsory for an effective BI strategy. Without a well-defined goal, your targets will wander, leading to no actionable result but loss. Without clear goals, your BI strategy would either collect a vast amount of or less data. It is possible that the data collected isn’t even relevant to your industry. This results in unfocused analysis and findings; the data collected could be cluttered, and analyzing unguided data would be difficult to decipher. Not only will your precious time be wasted, but also you could get an overload of irrelevant data. Finally, with the irrelevant data gathered and no clear target for your goals, this would be a waste of resources. This lack of direction can lead to irritation and, ultimately, a decline in user adoption of the BI tools.
The remedy is pretty clear: your team assigned to use BI must be on the same page. Before hunting and researching the data, there has to be a goal set between the practitioners and the manager regarding this strategy. To gain actionable results, you must ensure that your team is on the same page and focused on the same target.
3. Applying Less Time and Money on Testing
While saving time and money is a dream for every business when you want to use an effective strategy for your development and further improvement, money and time must be invested for the greater good. While testing may seem irrelevant to some, it is a crucial factor and time-consuming, but it is worth it in the end. Limited testing might be lacking in uncovering the issues with the data visualizations. This can lead to misinterpretation of data.
To avoid this, learn about the software you use to track and manage your data. Study and educate yourself and your team to learn better about BI strategy, how it should be applied, what software is meant to be used, and whether any software has to be bought for the greater good. Researching and learning about the most effective strategy would help you get on top of the game, not by neglecting it. You must test to enhance your performance to avoid many errors that directly impact product delivery.
4. Doing What is Asked Instead of What is Needed
Prioritizing customer satisfaction is crucial for a company’s success. However, in the case of technology, business users may not always fully understand their requests. Additionally, they may try to dictate technical solutions.
Business intelligence failures often occur when companies implement what consumers want instead of what they truly need. Successful BI projects require the ability to validate BI findings and effectively elaborate and manage requirements properly. One useful approach for understanding consumers’ true needs is the “5 whys” method, which involves asking “why” five times to gain deeper insights into a problem. The “5 Whys” approach is a powerful method for finding the underlying needs behind customer requests. By repeatedly asking “why” about the problem or desired feature, you can peel back the layers and identify the core issue the customer is trying to solve.
5. Thinking Data Is Sufficient
Is it possible that having “more data” can unravel all of our business difficulties? Many aspects of business analytics and intelligence are based on this unspoken presumption. Simply presenting data to an executive and hoping for the best won’t work.
Data can be overlooked or overshadowed by belief if it isn’t analyzed and argued correctly. The significance of making a powerful case and crafting a compelling narrative can never be undervalued. The analysts in the field may understand the implications of data collection, but we can’t assume that those who are a few steps away from the data will comprehend that argument.
6. Depending Solely On BI Tools
While it may be more effective and fast to rely on BI tools, nothing can replace the human element. BI tools can act as an aid and should be taken advantage of rather than taking advantage of you. Focusing solely on technology can lead to repetition and a disconnect between data and action. Businesses need to promote a data-driven culture where employees understand how to interpret and leverage insights to make informed choices. When users depend entirely on BI tools, your results lack strategy.
To avoid this, BI tools must be seen as helping counterparts rather than your firm completely relying on them. Users must know that when they receive the data, it is time for them to make data-driven decisions. There has to be a balance between using BI software and incorporating human expertise.
7. Pursuing Pointless Analysis
Some may have powerful BI tools at their disposal. However, when there is a lack of direction, you could be working on pointless analysis. The result? Your time is being wasted. This failure is common among junior BI professionals. You may have a bunch of data with you, and you have a motive to provide impactful insights. But have you asked yourself if they are relevant according to the customer’s needs and your targets?
These mistakes should be avoided and are usually the result of a lack of training and guidance. Business leaders should study the concept of BI and its software together to ensure they are on the same page. You must ensure that your analysis is set on company goals and then continue pursuing that analysis.
8. Neglection of Tools Like Excel And SQL
This brings us back to the point that your BI strategy should not neglect the human element. While tools like Excel and SQL may sound time-consuming, they actually bring that human touch to your work. Excel is a familiar and accessible tool for many business users. This low barrier to entry allows for quick data manipulation, analysis, and initial exploration.
However, it is important to note that software such as Microsoft Power BI and Tableau are great for data visualization, user-friendly, and independently uncover insights from data. It is still important not to let go of the old tools; they help with backup and management, which is crucial for a successful BI strategy.
9. Being Defensive Toward Unsatisfied Customers
It is understandable that no tech expert expects irritated users, let alone deal with them. While system errors are a nuisance, these issues can occur. The way you respond to these issues will result in the success of your BI project. There are two common mistakes that BI users make. Providing your customers with the data they require to make decisions matters. Do you know what details they need? Is there an alternative to creating a new report to translate the problem? It’s preferable to focus on user criticisms based on their close relevance to your overall plan rather than simply disregarding them.
10. Weak Agent Management
While it is possible for your company not to have a Business Intelligence department, that is where you seek verified professionals to help you carry your success forward. For this, you need to understand who is working for you and, basically, what vendor you are asking help from. What do they specialize in? Understand their work and see if it works for you. Of course, it is important for them to introduce themselves the right way in order for you to get a clearer picture.
If a third party is involved, it is your duty to manage the problem and determine who is working on your behalf. Otherwise, you might experience a BI failure.
Over To You
If you are seeking professional help with business intelligence, BiExpertz is a profound BI consulting agency that can handle all your data requirements and present them to you in a completely organized and relevant manner. To avoid these challenges, hiring professional experts who know their way around data—basically, living and breathing data—can help your firm achieve higher ground. Contact our customer representatives today and gain an affordable solution to your BI strategy.
FAQ’s
What is the Failure Rate of BI?
There is effort required to collect, extract, correlate, and interpret valuable information or data from a firm’s data sets. A recent study states that between 70-80% of BI projects can result in failure when not done right.
What is a Business Intelligence Problem?
While many problems may arise in the field of BI, one that is highlighted is users’ lack of interest. Other problems include poor data analysis and governance, administrative problems, and query performance.
What are the Risks of not Having Business Intelligence?
Without BI, organizations can be more prone to poorly made decisions, experience operational problems, and miss out on opportunities that result in higher risks.
What things Should not be Avoided While Implementing Business Intelligence?
There is a list of things that must be avoided, such as:
- Neglecting the use of Excel
- Pursuing pointless Analysis
- Improper Training
- Lack of Clear Targets
- Applying less time and Money to Testing
- Doing what is Asked instead of Needed