Whenever you begin a complex project, no matter how big or small, you must first create a
high-level plan or architecture of what the ultimate product or environment will be. This
architecture acts as a road map, guiding the developer as to how all the parts and components
interact and cooperate together.
The Corporate
Information Factory (CIF)[see figure] is our high-level roadmap for supporting business
functions.
Getting started is not as difficult as you might think. However, there are a few things to think
about and to get agreement upon. Here are four success factors I find critically important to any
business wishing to develop Business Intelligence and Management functions.
A dependable architecture
Hopefully I have explained the need for an architecture roadmap so that you are comfortable with
this success factor. We have found over the years that the Corporate Information Factory is a sound
and proven starting point. It is easily created in an iterative fashion (one small section or part
at a time), gives you great flexibility in terms of handling the ever-changing enterprise, and is
sustainable for the long run.
Strong partnership between the Business Community and IT
For you to be successful, the business must have a compelling and solvable problem. Often the
business
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community does not understand its own needs and therefore cannot define them clearly to
the technical implementers. To simply state that you want BI systems is not enough.The Business must sponsor and commit resources to defining and implementing a solution. These sponsors must contribute their needs and domain knowledge, not stand back and trust IT to define the solution. The business must understand what it takes to make strategic decisions, when and where these systems will be used, how they will interface with the business processes using them, and so on. The business community must work hand-in-hand with the IT personnel to ensure that requirements are understood and time frames are reasonable. On the other hand, IT personnel must welcome the business community's input, listen carefully and understand the new business model.
Without doubt, problems will pop up with existing business processes and systems that impact data quality. The business must step up to this and be willing to fix critical data problems at their sources if necessary. It may mean changing an incentive program, retraining personnel on the new processes, analyzing the sources of problems and even changing the workflow.
The creation of the CIF requires a different methodology from the traditional software development life cycle one - it requires a prototyping or rapid development one in which the requirements may not be completely hammered out at the beginning of the project. Therefore, the business sponsors need to buy into this spiral methodology and not insist on a one-release project. They are prepared to get benefits a step at a time. It may also mean that a Program Management Office may be needed to prioritize and control the various projects undertaken.
Finally, the business must take ownership of the solution, and sponsor ongoing activities such as process changes, stewardship, data quality, and user training. Ultimately, the business must recognize these systems are the results of their input and cooperation. The business should take on the job of ensuring that all users of the systems are well versed in the processes and usages of these components.
Well-defined Business Problems
It is never easy for participants to come up with a proper scope for any of the CIF projects. It is a balancing act to deliver substantial benefit in a reasonable amount of time. I suggest that each project develop a formal scope document identifying the business problem to be solved, the systems involved (and those not involved!), the people involved, the timeframe for delivery, the major deliverables, the assumptions made, and the risks and contingencies specified. The scope document is a living and breathing document. As perturbations occur, the scope document should be reissued and re-approved.
One of the benefits of a formal scope document is that expectations are set appropriately. It is important that both IT and business personnel understand and accept the limitations as well as the benefits from each project. Remember - each project is just one step toward the goal of an integrated business.
Willingness to Accept Change
You are embarking on a very new way of doing business. It is difficult sometimes for people to understand and accept these new processes. How people relate to the enterprise and these new systems is changing. Maturity of enterprises places greater demand for skilled team members. Maturity of the global network increases the ability to distribute the work force. And increasing number of companies in the value chain changes the emphasis from employee to team member.
What you find is that knowledge work becomes distributed from the 'job of the few' to the 'task of the many'. This means that the move requires that IT and the business community work closely together, forming a new breed of cross-discipline professionals who understand both technology and the business.
Summary
This article discussed the differences between Business Operations, Business Intelligence and Business Management, emphasizing the difference between strategic and tactical decision-making. The Corporate Information Factory is an ideal architecture for a sustainable environment for both of these capabilities.
A number of critical success factors are discussed for getting started and developing this environment. There must be a well-defined business problem and a solid relationship between IT and the Business Community. Finally the enterprise must be willing to change the way it does business - to accept that today's business is not the same as it was yesterday.
Claudia Imhoff is the president of Intelligent Solutions, Inc. Imhoff is a popular speaker and internationally recognized expert on the Corporate Information Factory, business intelligence and CRM. She has co-authored four books and more than 40 articles on these topics.
This was first published in June 2002
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