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Business domains – will IT finally be managed effectively? 01 November 2009

Posted by Ola Wallinder in Architecture, BI management, Business Improvements, General.
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Following the discussions we´ve had of ERP and BI integration, it is natural to move into the domain thinking. The usual definition of a domain is a rather general interpretation, i.e. a territory, space, knowedge area but also including some kind of managerial or power.

Looking at the integration of ERP and BI, with a managerial perspective, it is interesting to discuss Business Domains, i.e. a domain of business with managerial power to improve the business value of information systems.

The tricky part here is the budgeting and governance part, i.e. the division of budget between IT, business units and a “virtual decision forum” of a Business Domain. The line of thinking leads us to the opportunity of actual movet budget from IT and business units to a new (virtual) managerial body – a Business Domain. By doing that, it is usually possible to gain more business value of the integration of ERP + BI. However, the major obstacle here is the knowledge level of the participants in the domain decision forums and the ability of those preparing decision proposals to present ERP and BI challenges at a management level.

There are a number of examples where the ability to take decisions needs to be improved:
- How do you present masterdata on management level for investments ?
- How do you understand the complexity of a target state ERP+BI landscape ?
- How do you present the performance and cost drivers of alternative BI target states ?
- How do you prioritize target group information need trade-offs vs. efficicent ERP installations ?
etc. etc.

The paradox where ERP+BI is squeezing out BICC 01 October 2009

Posted by Ola Wallinder in Business Improvements, ERP.
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A recent reflection from the market is that while ERP suppliers are integrating BI into their platforms – this opens up for a more coherent and common view of the IT strategy – which means that BICC will not have such as a strong position anymore.

The paradox is that while BI is stronger integrated into ERP platforms – this seems to mean that BICC is loosing momentum in IT departments and becomes a less independent unit.

The new challenge might rather be to deal with information management as a part of integrating operational ERP with management oriented BI and tie it all together in an IT strategy.

The new way would rather be to integrate the ERP and BI perspectives towards each business domain. The coherent and common view on IT from a business domain would (with this line of thinking) be better than sliced independent view of BI and ERP, respectively.

The new ERP system have a lot of reports – that will suit our management needs, or? 10 February 2009

Posted by Ola Wallinder in Stories from the field.
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Have you heard that before ? Luckily we hear those comments more seldom nowadays, even though the line of reasoning is still very common.

The very problem with this is that the ERP-system is optimized for operational processes and functions, not for managing the business. This means that key management needs of measures and dimensions often are missing in the end – implying millions to be invested and changed after the ERP-implementation.

For example, why can´t we find a report for delivery precision per product for our new delivery channel to customer X ? Because the delivery precision report can´t cope with both order objects and inventory objects. Or because we cant´t grasp the critical event of replenishment orderdate since there is no order in the ERP-system.

So, how can companies avoid the fallace and include the BI/management perspective already in the very prestudy of the ERP-project ?

What is applied business intelligence? 08 October 2008

Posted by Magnus Carlsson in Architecture, Business Improvements, General, Technology and products, Uncategorized.
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The term Applied Business Intelligence (BI) is about applying business inteligence in the right context, making a it an integrated part of how a company organization works.

I started to think about Applied business intelligence after been working on various business intelligence projects with many smart people. I do not claim to have invented the term, probably other people have thought about BI in this way before me. I will write about my thoughts on technology, business imrpovements and how information can play a significant role.

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