November 23rd, 2012

BI Strategy – Analytical BI vs. Operational BI

Not all business cases are the same and hence should not be treated similarly. Apart from the importance and affordability of the business sponsor, various other factors need to be taken into consideration to determine the implementation plan such as:

  • Business value
  • Expiry date for the business case
  • Frequency of use
  • Data complexity
  • Accuracy

Let’s assume that Jill Doe is important enough while Tommy is a Travel Analyst.

Case #1 – Jill needs a detailed information packet to support her vacation plans to Kenya with her spouse and 3 kids (13, 8 & 3 years old).

The information is valuable to have a good vacation. But it’s likely not going to be used again, so Tommy should not worry about creating a process to support this question ever again. This is Analytical BI.

Case #2 – Jill has a 20 minute commute every morning. However, depending on conditions, it is taking her 20 – 80 minutes for the same commute. She would like to receive an optimal “route map” every day from Tommy.

This information can save valuable time and is going to be used every single day. This is Operational BI and will most likely take months before Tommy can create a process to provide the best route on a daily basis with 100% consistency.

Jill should be willing to compromise on accuracy and process efficiency to get incrementally better data at the earliest while Tommy continuously improves the data and process, until it is 100% operationalized at acceptable accuracy.

BI teams can be much more successful, if they can differentiate Analytical BI vs. Operational BI and deliver quickly by compromising accuracy or scope.

 

 

 

Tags: analytics big data insights

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