BI in Action

Joe McKendrick

Taking People Out of the Equation

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"Why are enterprise applications so dumb?"

With an eye-grabbing headline like that, who could ignore our own James Taylor's latest message that true actionable analytics require the ability to respond automatically and intelligently to events?

Today's BI and analytics solutions actually have a long way to go before they truly begin to make a difference and deliver value to organizations. Why? Because enterprise applications still "rely on human intelligence."

Is this such a bad thing? Well, James provides a rundown on where the process gets slowed considerably: "Humans must use dashboards and reports to learn from their data, most decisions are managed with work lists, someone has to log on and act-on work list items before a process continues, and most alerting and monitoring functions are focused on telling someone what has happened rather than on doing something about it."

Even the hot tickets of the moment -- Complex Event Processing/Business Activity Monitoring -- will fall short, James warns, "unless systems can respond intelligently and automatically to most events and this means making decisions about how to act without this reliance on people."

I agree with James that automated decisions triggered by events are the next big step in analytics. However, it seems that this is a huge leap for many organizations to take. One, because it requires a great deal of trust in systems acting on an unattended basis. We are seeing a lot of rudimentary automated decisioning occurring at a systems and nuts-and-bolts levels -- with self-healing networks, for example, that can automatically reroute workloads if transaction demand spikes. Some e-commerce Websites will provide automated approvals for loans or other transaction elements.

But, again, it may take time before these automated pathways start being applied to critical business decisions that affect jobs and treasure.

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Globalization, shrinking business cycles, and increasing competitive pressures are placing demands on business managers to make faster and better decisions. Managers require both real-time visibility into their business operations and sophisticated analytical tools to help them navigate the increasingly fast paced and complex business environment.

Michael Dortch

Michael Dortch has been an analyst, consultant, speaker, writer, and 'information entrepreneur,' speaker, and writer about IT and 'the real world" for more than 30 years.

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. View more

Madan Sheina

Madan Sheina is principal analyst within Ovum's Software Applications group and is based in Northern California.

Madan has fifteen years' experience working in the IT industry both as an analyst and a journalist. His research covers a range of information management technologies, with a sharp focus on business intelligence, knowledge management and data integration software.

Madan is well respected in the IT industry for his clear, incisive and no-nonsense analysis style. He has advised leading ISVs on market positioning and product development strategy, IT users on product evaluation and selection, and the financial investment community on technology trends. View more

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