Is Operational BI needed anyway? They do not contribute in profitability of business
Author: Vikram Kole, Head - Marketing
There has always been a debate, is there a need for operational BI. People seldom confuse MIS with Operational BI. They are right to some extent. However Operational BI differs from MIS in more than one way. MIS is generally static in nature, whereas BI is dynamic. It becomes difficult for a reader of MIS report, to confirm or verify the underlying data while reviewing reports. Operational BI not only provides that capability to the user, but also empowers the user to see the information in different formats.
Operational BI embeds analytical processes within the operational business structure to support near real-time decision making and collaboration. This characteristic fundamentally changes the way how data is used, where it exists and how it is accessed. Observes Wayne Eckerson, director of TDWI Research: ‘Operational BI merges analytical and operational processes into a unified whole’. This change is rapidly exposing the limitations of traditional analytical tools.
Operational BI helps businesses make more informed decisions and take more effective action in their daily business operations. It can be valuable in many areas of the business, including reducing fraud, decreasing loan processing times, and optimizing pricing.
Normally, BI / MIS are used by TOP executives of the organization. These are post fact review of the transaction. They help in understanding trends and planning a better strategy for future. Generally they are not capable to help in real time decision systems. Operational BI on the other hand provides Operational management with the power to review the information about the transactions near real time. It is not just a static report, but an analyzable cube or dashboard. This empowers the business users to take better decisions thereby increasing bottom-line of the business.
Large number of companies are profiting from the use of Operational BI, like 1KEY. These tools empower the users to take well informed decisions, and faster actions. Good and profitable decisions are generally ones taken after analysis of facts, and the same are possible due to the availability of BI structure within an organization.
Posted on February 2nd, 2008 by Vikram Kole
Filed under: Business Intelligence, View Points & Perspective
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