This described process of top-down performance indicator definition must also be defined, organized, and implemented. The need for suitable methodologies and organizational structures to achieve this has been recognized, and thus the topics BI organization and BI governance were right at the top of the agenda for this year’s European TDWI Conference.[3]

BI governance as success factor 

The task of BI governance is the organization and management of all BI activities and their alignment with the company’s general strategy. This task can, for example, be carried out by a BICC (business intelligence competency center) as an organizational unit. The BICC represents the decisive link between the corporate strategy and the architecture of the reporting and analysis systems oriented to this strategy.

The preparation and enforcement of guidelines for the data modeling, the master data and metadata management, and the introduction of responsibilities for a certain handling of the data (data governance) are among the many and varied duties of a BICC. Measures for the standardization and harmonization of current performance indicator systems and dimensions must be initiated. The increasing industrialization of business processes accompanied by standardization initiatives support such projects. SAP, for example, fits right in with this strategy by offering standardized report templates for the financial module SAP-CO.  

Yes, it is a question of subsequent regulations and clean-ups in established BI structures. Yes, it is necessary to overcome internal resistance, and frequently a balance of interests must be found if the necessary governance measures are to be implemented. But there are also examples of companies which have successfully mastered these challenges or are well on their way to doing so.

Moreover, it is the responsibility of the BICC to align the provision of information with the information requirements of the business processes in accordance with the corporate strategy. The iron-clad principle: no performance indicator which is not justified by business operations! Solid evidence that the requested information is necessary for the management of the company must be presented. Information is produced subject to the requirements, and its distribution is managed subject to the information needs. This reduces costs and creates transparency.
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