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Before initiating a BI project, it is crucial to understand that a well-implemented BI project never results in failure; and this is an established fact. It is just that RoIs are difficult to establish during the inception of the project. However, whatever the hiccups, the key imperative for IT managers is to initiate moves, which are thoughtfully planned, and suit enterprise needs. It revolves around right sizing of the solutions, having a structured vendor management policy in place to evaluate appropriate vendors, articulating the Service Level Agreements (SLA) unambiguously by using experts, and clearly spelling out the legal terms in the document, among others.
Size it Right
Most IT managers always face the challenge of choosing the right tools and solutions which can meet their specific requirement. Many times, business expansion and growth does put them in a situation where the assessment becomes difficult, as a CIO cannot approve a strategy deploying all solutions available.
IT managers could be overwhelmed by the idea of choosing a BI solution. The key is to choose a solution that can not only address the current need but also has the scalability to adapt to changing needs and future business expansion and upgrades. Depending on the maturity of the organisation, pre-packaged Business Intelligence solutions give a good head start in most cases. In a packaged model, customisation is made possible to meet business expectations and increase efficiency. Experience shows that using a pre-packaged solution along with customisation requires business users to spend much time in applying the BI to churn out the required information and bring out customised reports.
Dont Go by the Low Hanging Fruit
The first pre-requisite for selecting an appropriate BI solution or a vendor is to map the enterprises need. The selection would need IT heads to invite each vendor for an onsite presentation to explain their capability and features. After mapping current needs and tool/solution, an RFP should be sent out for selected vendors. A clear RFP with intricate details would win half the battle. A precise RFP must have the following elements:
* Introduction and Overview of the organisation
* Clear objective of RFP
* Description of desired solutions
*Keys dates (Date of proposal presentation, Pre-Proposal conference for clarification etc.)
* Solution/Vendor Evaluation criteria*Proposal Delivery Instructions and key contacts* Proposal Package Checklist* Pre-requisites for submitting the proposals
Based on the response, vendors should be shortlisted to the semi-finalist level; they should be given a detailed agenda with proven cases to demonstrate tool/solution capability, spanning a few days in an onsite meeting. During the meetings, IT heads, key decision makers, business users, technical and functional architects should be involved. The agenda should be drafted clearly, allowing each key individual to interact with the vendor teams. In most cases, a good vendor is key to the success associated with a good vendor management policy.
Best Foot Forward by the BI Vendor
Analysts such as Gartner, too, vouch that the CIOs primary challenge is selecting an appropriate vendor who has the capability to address the pain points. Gartners CIO survey indicated, Most of the CIOs believe their competitors make better use of information, and strengthening the information value chain is their number one challenge, and Business Intelligence tops priority.
The presentation or skill of the people in the room should not mesmerise the IT teams; rather, they should provide greater insights into resources, processes, methodologies and, most important, implementation strategies. Templates of past work could establish vendors work details and knowledge. At times, vendors do showcase similar case studies, but organisations should pay attention to the size of the client presented, scope of work and, most importantly, the vendors role. There have been cases where vendors have done just a staff augment in a similar industry, but project a glorified industry-use case, just to get an edge. Reference calls with the customer mentioned in the case is important to understand the detail of the work actually done. IT heads should question themselves or visit vendor websites to eliminate the most obvious misfits.
A good BI implementation vendor should bring in the following:
?A comprehensive experience in integrating silo technology components into a successful and usable BI platform
?Acomprehensive understanding of Business Intelligence solutions
?Domain and functional expertise in the desired BI solution
?Implementation processes, approaches, methodologies and accelerators
?Programme governance framework
?Project implementation methodologies
?Test and Quality Assurance processes
?Change management processes
?Communication plan details for executive briefing on a weekly, monthly and daily basis
Do not Succumb to Arm-twisting
Vendors tend to put in a lot of smaller clauses to cover any future liabilities, but enterprises should review the contract in detail and insist on periodic renewal rather than a long-term contract to avoid contract negotiation mistakes.Putting in place a vendor risk management policy is mandatory.There are no set rules or guidelines for any contract terms. Always have direct communication and channels open with all the key people involved. Acommon failure of vendor relationship is lack of communication and high expectations. Once the relationship is in place,don't assume everything will go according to plan and be executed exactly as specified in the contract. The vendor's performance must be monitored constantly in the beginning. This should include requirements that are most critical to your business. The time, money and energy used to nurture a positive vendor relationship cannot be measured directly against the company's bottom line. The vendor management process begins by selecting the right vendor for the right need. Squeezing a vendor on the price point would mean embarking on a journey where the vendor either provides low skilled talent or leaves the project halfway to accept a new project for a better deal. In either case, the enterprise would lose out. A periodic review of plans and deliverables with assured quality would always save the embarrassment of a failed relationship. At any point, organisations should not allow vendors to take the driving seat. There should be proper governance and periodic checks to validate the vendors work, responsibility and quality of delivery. Usually, organisations put in all efforts in selecting the vendor, but minimal or no effort in maintaining the relationship. It is incorrect to assume its only a vendors responsibility to keep the organisation happy; for a successful collaboration, it must be two-way. More importantly, its not just about the
Depending upon the size of outsourcing, having a Vendor Management Office (VMO) would be a good idea. If not prepared for a full-scale VMO, you can establish an IT governance or standards body of employees from across the company to oversee purchasing policies and assess new vendor technologies and other offerings.
Nuts & Bolts of an
SLAs are a contractual agreement between the Vendor and Client Company detailing the level of services which would be provided. For instance, if bugs are not responded to within four hours of opening, there could be an escalation channel; if it continues to remain open with no activation even after 24 hours, a vendor company could be monetarily penalised. Writing an SLA could be a daunting task; most vendors have their own
What is important?
IT heads or IT managers do face challenges while dealing with BI vendors. But making a detailed attempt in choosing a BI solution or vendor, based on that which best suits the business requirement with a detailed vendor management process and methodology would build a good relationship between organisations and vendors, leading to long-term success.
Sunil S Ranka, BI professional
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