Appendix B A business intelligence readiness assessment

This appendix gets you started with a basic assessment of your readiness to implement a business intelligence (BI) program.

B.1 Strategic Alignment

Readiness Factor	Description
1	Company leaders and managers have a keen awareness of the environmental factors that drive our business, e.g., regulations, competition, demand trends, innovations.
2	The relative importance of the environmental factors that drive our business is understood.
3	The relative importance of the environmental factors that drive our business is acted upon.
4	Our company has a clear, actionable strategy for our business.
5	Our company’s strategy’ is appropriate for our business.
6	The key management and business processes the company uses reinforce each other.
7	The key management and business processes the company uses effectively execute our strategy.
8	Everybody in our company understands how we compete.
9	The key management and business processes the company uses help us compete effectively.
10	Our company measures strategically relevant performance factors.
11	Our BI initiatives provide business information and analytical tools to make our management processes more effective.
12	Our BI initiatives provide business information and analytical tools to make our revenue generation processes more effective.
13	Our BI initiatives provide business information and analytical tools to make our operating processes more effective.
14	Our BI initiatives enable fact-based decision making.

B.2 Continuous Improvement Culture

Readiness Factor	Description
1	Our leaders and managers are adept at driving changes to our core business processes.
2	We consistently measure process costs.
3	We consistently measure process cycle times.
4	We consistently measure process quality.
5	We consistently measure customer service levels.
6	We consistently measure asset utilization.
7	We consistently measure process outputs.
8	We are always looking to improve our core business processes.
9	Our process performance information is organized for multidimensional analysis.
10	We use prior period performance information for process improvement initiatives.
11	We apply data-driven improvement techniques such as Six Sigma, Continuous Process Improvement, and/or Total Quality Management (TQM).
12	Our leaders and managers understand that “best practices” mature and are replaced over time.

Readiness Factor	Description
1	When typical operating decisions are required, we have enough relevant information to make fact-based decisions.
2	When our company develops forecasts, budgets, and plans, we use prior period performance information.
3	Our company is a heavy user of quantitative methods, e.g., linear programming, optimization, modeling and simulation, data mining, and collaborative filtering.
4	Our leaders and managers emphasize the use of analytical frameworks and fact-based decision making.
5	The sharpest analysts in the company are regularly involved in making presentations to our leaders and managers.
6	Our company has institutionalized the use of metrics for performance measurement and improvement. The management information used within our company is timely.
8	The management information used within our company is relevant.
9	Our company rewards the development and use of analytical tools.
10	Our company actively manages the use of information and analysis within our key business processes.

Readiness Factor	Description
1	We have identified major BI opportunities within our key functions and/or processes.
2	We have prioritized our major BI opportunities based on factors we believe are relevant, e.g., return on investment (ROI) and technical risk.
3	We manage our BI opportunities as a portfolio of projects, i.e., as a program.
4	Management understands that our BI program is a multi-year effort requiring consistent funding/resources and business involvement.
5	We use a BI roadmap or program plan to guide, coordinate, and integrate our BI initiatives.
6	We have strategies and/or methods for ensuring that new BI applications are used to improve business performance.
7	We are investing or have invested in developing core BI competencies.
8	We actively manage the business and technical risks associated with our BI projects.
9	Our BI program is adequately funded to achieve its goals.

Readiness Factor	Description
1	For any important operating decision, the relevant managers can tell you how the decision is made.
2	We routinely use information technology (TT)—e.g., groupware or workflow—to formally collaborate in decision making.
3	There is a standard decision-making routine for any well-structured problem situation we face.
4	There is a standard analytical routine for any well-structured problem situation we face.
5	There is a standard approach for any recurring and semi-recurring decisions we face.
6	Our company is data-driven in its key decisions.
7	Our company regularly uses models and/or simulations to support decision making.

Readiness Factor	Description
1	Our company can effectively build and operate a robust BI/data warehousing (DW) technical environment.
2	Our IT function uses an effective, repeatable methodology on all BI/DW projects.
3	We have mature BI/DW operating processes in place.
4	We have a strong, customer-oriented help-desk function.
5	We have a strong program for training business users to use available BI.
6	We have strong source system analysis skills.
7	We have strong data integration skills.
8	We have strong skills in at least one extract, transformation, and loading (ETL) tool.
9	We have strong data quality and stewardship skills.
10	We know how to work with business users to design what they see via BI applications.
11	We know how to manage meta-data.
12	We have strong skills in at least one query and reporting tool.
13	We have strong data architecture skills.
14	We have strong systems integration skills.
15	We have strong BI design skills.
16	The specific needs of BI and DW projects are effectively accommodated within our broader IT environment.

Readiness Factor	Description
1	Our leaders and managers spend at least 40 hours a month on IT.
2	Our leaders and managers are IT-savvy.
3	Our IT leaders and managers are business-savvy.
4	The responsibility for capturing the ROI on IT investments resides with the business units.
5	Business managers make the business case for IT investments with inputs from IT.
6	IT is a player at the strategic level of the firm.
7	The chief information officer reports to the chief executive officer.
8	Business people are actively involved in our BI projects.
9	The BI team meets regularly with the business sponsor.
10	Our BI (or IT) governance mechanisms are effective.

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