Business Intelligence leverages the data captured in ERP systems
When asked, business users will grudgingly concede that they have realized some value from their enterprise resource planning (ERP) investments. They have done so by standardizing global processes such as order-to-cash and procure-to-pay, and facilitating cost reductions through arduous business re-engineering efforts and major reorganization around shared services. However, these same business users get much more animated about the ability to analyze their business performance globally. In fact, the ability to analyze is always at or near the top priority of virtually every spending survey AMR Research conducts. Being able to quickly show how they can "slice and dice" all the data captured in their ERP systems leads to a much better understanding of myriad metrics such as which products are selling in each part of the world, average selling price, best- performing salespeople, contribution of each product to profitability, and other sales and financial performance measures.
Most Business Intelligence Looks In The Rearview Mirror
Running today's global manufacturing enterprise on ERP and traditionally implemented BI is like driving down the New Jersey Turnpike in reverse at 65 mph using only the rearview mirror. ERP architectures are optimized for transactional efficiencies rather than real-time reporting. In many cases, BI platforms must go through a time-consuming "extract, transform, load" process to turn ERP data into intelligence that can readily generate standard reports and facilitate the slicing and dicing that allows business users to analyze performance rather than spend 70% to 80% of their time collecting data, as they used to before ERP and BI. If you are always looking in the rearview mirror, you miss what is going on around you right now. That is a recipe for disaster in today's highly dynamic business environment. By the time you detect an operational problem in BI, you have already made poor-quality products and missed orders.
Checklist: How to decide if you need a business intelligence/operations intelligence solution
- Are critical business and operational data available to all rather than a select few?
- Do you know with certainty which customers/products/channels are most profitable?
- Do you know which suppliers have the best on-time delivery performance?
- Does your firm have complete visibility of manufacturing key performance indicators across the full enterprise?
- Can you effectively sense and respond to dynamic changes in demand and/or supply?
- Is there a definitive source of business and operational data that everyone uses?
- Can you use information today to predict performance tomorrow?
- Is the right data available at the right place at the right time?
- Are your real-time data needs being met today?
No comments:
Post a Comment