Thought Leadership

Driving Real Value from Business Intelligence Investments

Introduction

In recent years, organizations have recognized the increasing importance of enterprise dashboards, driven by advancements in data and business architectures. These dashboards are designed to provide organizational visibility and access to quantitative information, aligning with an organization’s growing focus on data-driven decision-making. However, despite their rising popularity, the effectiveness of these dashboards in practical scenarios often falls short of expectations.


The Problem

The common perception regarding the ineffectiveness of dashboards centers around issues with the data itself - it may not be complete, relevant, or accurate. Additionally, the manner in which information is presented, often criticized for the inappropriate use of widgets or unclear visualizations, is seen as another barrier. Yet, the core issue is more fundamental: dashboards, in their traditional form, fail because they are passive tools. They don’t actively engage in management processes but rather serve as static displays of data.

Typically, dashboards are filled with gauges, charts, and graphs that provide a snapshot of operations, which is a passive approach to management. This method is akin to monitoring without action, similar to observing factory gauges without any automated response system. In effective operational environments, such as manufacturing, alerts such as alarms or bells notify personnel when thresholds are exceeded - this active response mechanism is crucial.


The Value of Business Rules

In both corporate and public sector settings, the real utility comes from business rules. These rules are essential for implementing a management style known as "management by exception." Under this approach, leaders focus their attention not on the routine but on anomalies and exceptions to the established norms. Business rules help set these norms and define the thresholds which, when exceeded, should trigger alerts. This allows managers to concentrate on deviations from the expected patterns, which are more likely to require intervention and corrective actions.

Given the limitations of traditional dashboards and what drives real value from them, a strategic shift towards integrating workflows and business rule-oriented dashboards into management practices is imperative. This shift involves defining and automating processes that actively guide daily activities and making informed decisions based on highlighting exceptions rather than routine occurrences. Components of this approach include:

Implementing Effective Workflows
Workflow automation involves mapping out all processes and identifying key activities that need monitoring. This setup not only ensures efficiency but also embeds quality checks and balances throughout the process chain. Automating workflows reduces the reliance on manual oversight and enables a more agile response to issues.

Developing Robust Business Rules
Business rules dictate the operational thresholds and are integral in defining the parameters for exception management. These rules need to be clearly defined, contextually relevant, and aligned with organizational goals. They should facilitate automated responses or alerts that assist in real-time decision-making and problem-solving.

Developing the Dashboards so They Are Oriented Around Queues and Workflows
When developing dashboards, use visual frameworks that embed rules such as ‘red/yellow/green’ or similarly color-coded visuals such as percentages. Also include drill-down capabilities so that dashboard users can identify more detailed information for data or records that require attention.


An Example

Consider the role of an accounts payable (AP) manager in an organization. Traditionally, a dashboard might display real-time data on invoices processed per day. However, what truly adds value for the AP manager is visibility into exceptions, such as invoices that are overdue. For instance, a practical implementation would be setting up queues that highlight invoices not approved for more than 5 days (yellow queue) and those pending beyond 10 days without final approval (red queue). These queues directly support management by exception, providing clear indicators of potential issues that require immediate attention.


Summary

The evolution from traditional dashboards to a management system based on workflows and business rules represents a significant shift in how data is utilized in organizations. By focusing on exceptions rather than routine data, organizations can enhance their operational efficiency and decision-making capabilities. Investing in systems that prioritize actionable insights through automated rules and alerts will redefine organizational management and lead to more effective governance.

By reimagining the use of enterprise dashboards and embracing a more dynamic approach to data management, organizations can achieve greater transparency, faster response times, and more proactive governance. This strategic shift not only aligns with modern management practices but also leverages technological advancements to foster a more accountable and efficient organization.

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