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In the world of business, the landscape of data analysis has undergone a significant transformation. This metamorphosis can be traced back to the shift in the role of the IT department, which was once responsible for the selection, deployment, and management of business intelligence (BI) tools.
Historically, BI projects were primarily IT-led. However, a seismic shift has occurred, with more than half of new BI deployments now being driven by the business units themselves, according to Howard Dresner's annual 'Wisdom of Crowds' market survey. This change is a response to the growing need for agility and speed in data analysis, as businesses strive to stay competitive in today's rapidly evolving market.
The IT department's role has evolved, moving towards data management, integration, and governance. This shift allows business units to focus on tool selection, report writing, and query generation, tasks that are more aligned with their specific needs and expertise.
However, this shift does not mean that the IT department is redundant. On the contrary, they continue to play a crucial role in maintaining the consistency of data, imposing common data definitions, and incorporating new sources of data. This ensures that users have the data they need for their jobs, providing a solid foundation for informed decision-making.
The rise of user-driven BI has also highlighted the importance of data quality standards and a data governance framework. Lack of these can lead to poor quality data and misleading insights, undermining the effectiveness of BI initiatives. Therefore, it is essential for organisations to invest in data quality and governance practices to ensure the reliability and accuracy of their data.
The term 'business intelligence' is associated with a particular architecture: a central analytical database (data warehouse) combined with tools for report, dashboard, and graph compilation. However, the landscape of BI has expanded in recent years, with the emergence of cloud-based BI, mobile BI, social analytics, and visual analytics. These advancements, which Howard Dresner describes as 'the new BI', are driving a 'renaissance' in business intelligence.
The rise of business-led BI also places greater significance on the IT-to-business relationship. Collaboration and engagement in conversations around information management are now more important than ever, as both parties work together to ensure the success of BI projects.
Organisations that have successfully accommodated user-driven BI have reinvested the savings into data quality and governance practices. This approach not only ensures the reliability and accuracy of data but also fosters a culture of data-driven decision-making, contributing to the overall success of the organisation.
Business intelligence was coined by Howard Dresner in 1989, and since then, it has evolved significantly. As we move forward, it is clear that the future of BI lies in the hands of the business, with the IT department playing a supportive role in data management, integration, and governance. This shift towards user-driven BI is not just a trend; it is a paradigm shift that is here to stay.
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