BI Program IT Mistake 4 - Outsourcing Your BI

First, I must qualify that in referring to outsourcing your BI capability I am NOT referring to using a BI SaaS or BIonDemand solution. The technology driving the BI capability is only just that - the technology. A total BI solution includes many other components including data, methodology, compliance etc. Any attempt to outsource your BI capability is madness. BI is the core of your competitive strategy - and I am sure you don't outsource that without good reason. It's like giving away the keys to the castle.

Outsourcing The Complete BI Requirement

BI cannot be outsourced any more than strategy. BI may appear as a a set of tactical processes that can be done by someone else, or may be considered too complex to deploy internally, but however attractive outsourcing may appear, BI is one capability that must be managed inhouse.

As BI becomes more widely adopted in the organization, any perceived cost of ownership gains related to outsouring are more than offset by the agility, efficiency, and competitive advantage experienced by those organizations that view BI as a core, inhouse strategic competency.

BI Business Solution

1. Adopt BI as a critical strategic asset to the business
2. Link BI into your:
   
   1. Corporate performance management system
   2. Business process management capability
   3. Strategic execution capability
3. Help the business understand the value of BI in supporting strategy, business process efficiency, decision making accuracy and problem solving capability

None of these core capabilities should be managed outside the business.

A BI solution provides measurable context to corporate strategy maps and scorecards, that can support automated processes and decisions and reveal insights and opportunties that are meaningful, and timely.

BI IT Solution

1. Outsource the provision and management of your BI technology but not your BI competency
2. Outsource data management - but not your competitive insights

Outsource only those things that are not a core competency or core business. Business strategy formulation and feedback on its results is be a core competency. And that is exactly what a BI solution provides.

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