As an Entrepreneur, I’m fascinated with the concepts that have come to be known as Business Intelligence. Fundamentally business intelligence refers to a data-warehouse filled with information from all areas of the company. The data can then be presented in reports tying previously disparate information together. Take it a step further and you can mine the data looking for relationships not yet uncovered. Pretty awesome.

The Analytic in me thinks this is a dream come true. After all, one should be able to focus clearly in on what metrics drive performance then monitor, manage and reward based on them. It takes the complex process of managing a company and simplifies it. It removes the messiness of human folly. What you’re left with is clean, gorgeous graphs, delicious drill-downs and sublime dashboards. It’s every executive’s dream come true, isn’t it?

Here’s the thing: Before you can develop any meaningful B.I. implementation, you have to know where you want to go. So start by developing a strategy. Then you’ve got to work on determining what really is going to drive that strategy. So one must work with one’s management team to determine the core measures that will determine success. Then comes the daunting task of getting everybody on board. One has to manage internal politics, expectations, fear and misunderstanding. All of a sudden, this B.I. implementation has turned rather messy.

My point is that, as hard as you try, there’s no simple way to run a company. The technology is only a tool to help you stay on track and support you in your decision making. It’s your job to get the right people headed in the right direction, quickly. Don’t look to B.I. to do that for you.

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