Briefs

Retrospective information arrives too late to impact daily operational processes leading to widespread dissatisfaction with current BI initiatives

Windsor, U.K. - October 3, 2007 - A study conducted by market research firm Dynamic Markets has today revealed that business intelligence systems are failing to improve operational performance, or impact-decision making within US and UK businesses. The research, based on interviews with 218 operational executives and front line management and conducted between November 2006 and August 2007, provides a snapshot of current use and satisfaction with Business Intelligence systems and their impact on operational performance.

Although many organizations have adopted BI tools in quantity, buying thousands of user licenses, results of this research show that the majority fall short in meeting the expectations of their promise. For example, in many cases, IT executives find themselves forced into a position where they have to make decisions before all the information they need is available (76 percent), believe that BI reports end up being simply reference documents to justify decisions that have already been made (63 percent), and do not receive reports that provide predictions about potential problems or provide potential opportunities (more than 70 percent).

The impact of inadequate intelligence on the business is huge. The average cost - discovered by the research ? in lost revenue to an organization is $478,686. In fact, one operations manager admitted to a direct $5,000,000 cost to his area of the business. By extrapolating this annual average as representative across the market, then the survey indicates that the Fortune 500 companies are losing approximately $250 million per year in missed business opportunities as a result of inadequate business intelligence.

A full research report is available on www.seewhy.com/bisurvey.