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Business Intelligence Tips

Read these 107 Business Intelligence Tips in 12 categories ranging from Balanced Scorecard Reporting to Supply Chain Reporting. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Business Intelligence tips and hundreds of other topics. Become a Guru or Become an Advertiser.

Seven Principles For Effective Visual Presentations In Performance Reporting - #6: Make The Most Important Information To Your Message More Visually Salient.

Stephen Few, a respected IT innovator, consultant, and educator has studied the art and science of visual presentation for many years. In a White Paper prepared for Cognos Corporation, he presents seven principles for the effective display of quantitative information. The sixth of these is presented below:
“Not all information is created equal. It is often the case that some information is more important to your message than other information. You can communicate this fact in a graph by making those items that are most important more visually dominant (salient). It is your job, if you wish to communicate effectively, to direct people's eyes to the most important parts of the display, so they are sure to adequately focus on them. [If t]he title of [a] graph … clearly states at least part of its purpose[, say] to highlight what happened in March. This purpose [could be] visually reinforced by making the bars in March more salient than the others, … by placing borders around them.”

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Competing Priorities: How Performance Management Reporting Can Help.

Cognos.com Tip: A recurring dilemma in 21st century business involves finding ways to strike a balance among an organization's many competing priorities. Each corporate activity or function, e.g. marketing, operations, accounting, information, development, etc. presents myriad resource-intensive alternatives to meet challenges and exploit opportunities. Successful navigation of these waters is what separates high performing companies from the mundane.

Performance management (including performance management reporting) encompasses systems, methodologies, metrics, processes includes performance management software technologies to identify ways to improve overall business performance. Accordingly, achieving enhanced performance across the breadth of corporate functions becomes very complex. This sets the stage for incorporation of BI tools and technologies, especially reporting software, throughout the enterprise to aid in the balancing process.

Many business intelligence vendors offer enterprise solutions for reporting. When searching for technological help, information on executive and business dashboards and OLAP reporting may open the door.

Seven Principles For Effective Visual Presentations In Performance Reporting - #5: Avoid Visual Connection Of Discrete Values Thus Creating False Relationships In The Data.

Stephen Few, a respected IT innovator, consultant, and educator has studied the art and science of visual presentation for many years. In a White Paper prepared for Cognos Corporation, he presents seven principles for the effective display of quantitative information. The fifth of these is presented below:
“Values that we display in graphs are sometimes intimately related to one another and sometimes they are discrete. The way we visually display these values should make it easy to see, without effort, this distinction. […In such a] graph, lines connect values, suggesting a relationship between them that doesn't exist. [...Likewise, depicting data, such as geographic] regions North, East, South, and West are discrete, so values that measure something going on in these regions should be displayed as discrete. Connecting them with a line is misleading. Doing so forms a pattern of upwards and downwards slopes that are utterly meaningless.”

How Marketing Reporting Helps You Take The Pulse Of Your Business

Cognos.com Tip: The well-informed business manager uses many sources of information to keep up with trends, opportunities and pitfalls. Some of these are financial; many are technological; while still others are operational. Few sources of news are as pervasive and timely as your marketplace and a quality marketing department.

Using your marketing department as an “early detection system” will provide you with timely information on how changing market conditions can indicate needs for new products and services. This can extend to improvements in sales strategies and corporate policy development. Carefully selecting what information is best used for this purpose is a natural for a good marketing department.

Marketing reporting is the key and BI is the solution. Even a good marketing department must deal with reams of data that can only be gathered, analyzed, and reported in today's data-rich environment, through the judicious use of technology. For example, sudden reductions in demand for traditionally successful products or services could indicate competitor pressure, market shifts, and/or revenue trouble around the corner. In this example, the facts coupled with the marketing department's savvy can result in meaningful answers from a good business intelligence system.

Use BI software techniques, like the executive dashboard, scorecards and reporting. They will provide management insight best suited to query systems for market news information, asking questions like:

·Opportunity: What is the profit opportunity?

·Competition: What are the competitive risks to achieving it?

·Product Direction: What is the long-term value?

·Price: What is it worth?

·Demand: How do we reach and communicate value to customers?

Seven Principles For Effective Visual Presentations In Performance Reporting - #4: Visual Properties That Represent Values Should Accurately Correspond To The Actual Differences They Represent.

Stephen Few, a respected IT innovator, consultant, and educator has studied the art and science of visual presentation for many years. In a White Paper prepared for Cognos Corporation, he presents seven principles for the effective display of quantitative information. The fourth of these is presented below:
“Graphs are sometimes intentionally designed to deceive, to misrepresent the truth by visually encoding values in a way that does not correspond to the actual values themselves and the differences between them. Even more often, however, people unintentionally misrepresent data in this manner, simply because they don't understand this principle and how to follow it. The most common way that this occurs involves bar graphs with quantitative scales that don't begin at zero. Because the lengths of bars encode the values they represent, the full length of the bar must be displayed, beginning from zero, for the values to be encoded properly." Few refers to a graph and says "notice that actual sales in the East region appear to be twice as great as planned sales, but in fact, this is far from the truth. Actual sales are only 5 percent greater than the plan. When you use a graph to communicate, people should be able to look at the graphical representation alone to compare differences in values. If the graph doesn't support this operation, what's the point of using a graph?”

Business Reporting Software – Striving For A Common Foundation

Cognos.com Tip: The challenge to the community of BI vendors is how to connect the universe of disparate data and information to provide a common business view of your company's operations. You've invested in tracking all of the salient transactions for sales, supply, manufacturing, and the like, yet how do you pull it together? A simplistic, though easily understood, analogy is found in the trusty spreadsheet. Old timers that started using Excel, Oracle, Lotus, or other similar software remember the early days when a sheet was just that set of information. Then came sheet linking and multi-dimensional spreadsheets. Business reporting software performs a similar function with all of your company's sources of data, but on a much faster and larger scale. Selection of the proper business reporting software can reliably lead to more value from your data investment and permit you to take advantage of emerging business opportunities with the right data, appropriate refresh timeliness and delivery characteristics.

Seven Principles For Effective Visual Presentations In Performance Reporting - #3: Use Lengths Or Other Dimensional Technique To Further Encode Quantitative Values In Graphs.

Stephen Few, a respected IT innovator, consultant, and educator has studied the art and science of visual presentation for many years. In a White Paper prepared for Cognos Corporation, he presents seven principles for the effective display of quantitative information. The third of these is presented below:
“There is an important set of visual properties that are called “preattentive attributes” of visual perception. They are preattentive in that the process of perceiving them does not involve conscious thought; it is automatic and immediate. This includes such properties as an object's length (for example, the length of bar in a bar graph), its 2-D location (for example, the position of a data point in a scatterplot), its size, its shape, its orientation, its hue, and so on. If objects in a graph vary from one another along one of these properties to a great enough degree to appear different, we see those differences immediately, without conscious effort. For example, if a single data point is orange in a scatterplot that contains 100 data points, 99 of which are black, the orange dot will stand out as different. We can use this knowledge to intentionally make particular items in a graph stand out as different or important.”

“Of the full set of preattentive attributes, a few are perceived quantitatively. By this I mean that we perceive differences between varying expressions of a visual property (for example, length, exhibited as long bars, short bars, medium-length bars, etc.) as greater than or less than one another. Apart from these preattentive attributes, those that are not perceived quantitatively are simply seen as different, such as the different hues of black, green, blue, orange, purple, and so on. Two of the preattentive attributes that are perceived quantitatively are also perceived with a fair amount of quantitative precision: length and 2-D position.”

The Elements Of An Effective Business Intelligence Software System

Cognos.com Tip: Development of a corporate performance management capability using a business intelligence tool can be complex and resource intensive. In order to make the right decisions when selecting the vendor and software that will, arguably, change the company forever, understanding the basic elements that should be included is valuable. According to a 2006 white paper from the vendor Cognos, there are five key elements incorporated into their product suite:

·Scorecarding - Link initiatives and projects to strategy with metrics and strategy maps. Use the same scorecard metrics to drive enterprise planning software for integrated performance management.

·Analysis - Explore and analyze large volumes of data covering all dimensions of the business, whether stored in OLAP or dimensionally aware relational sources.

·Reporting - Create any type of report, for any user, with any data.

·Dashboards - Deliver Web-based dashboards with information from different data sources in a single visual report. Provide an at-a-glance snapshot of the business.

·Business event management - Business event management goes beyond the basic notification functionality provided in other products to automate the decision-making process, launch business processes, and integrate with Business Process Management (BPM). Where human intervention is required, through decision-process automation, event management notifies the people who are accountable and provides the relevant information they need to resolve the issue.

Many vendors offer similar business intelligence tool groupings, both integrated (like Cognos) and tool-by-tool. Careful research will lead the procurement team in the enterprise planning necessary to acquire an effective system.

Seven Principles For Effective Visual Presentations In Performance Reporting - #2: Avoid Displaying Meaningless Differences.

Stephen Few, a respected IT innovator, consultant, and educator has studied the art and science of visual presentation for many years. In a White Paper prepared for Cognos Corporation, he presents seven principles for the effective display of quantitative information. The second of these is presented below:
“Because differences in visual properties, such as color, are used to communicate actual differences in the information itself, visual differences should never be used arbitrarily. When people notice visual differences, they try to discern the meaning of those differences. Don't confuse people and waste their time by including visual differences that are meaningless. Figure 5 shows a common example of how this rule is broken. What is the meaning of the different colors that appear on the bars? The answer is “nothing.” We already know what the bars represent, because they are labeled as years along the X-axis. Meaningless visual differences such as this gratuitous use of color not only cause people to search for meanings that don't exist, but in this case they clutter the graph with an eye-assaulting abundance of color.”

Seven Principles For Effective Visual Presentations In Performance Reporting - #1: Display Only That Which Is Relevant.

Stephen Few, a respected IT innovator, consultant, and educator has studied the art and science of visual presentation for many years. In a White Paper prepared for Cognos Corporation, he presents seven principles for the effective display of quantitative information. The first of these is presented below:
“When you wish to get your message across—any message—whether in conversation, in writing, or in a graph, irrelevant content is distracting. Don't make people wade through meaningless visual content in your display to find what really matters. It has become common today, even in business graphs, to include all sorts of nonsense, such as cute pictures in the background or the addition of a third dimension to bars, lines, and pies. Despite good intentions (if you consider attempts to entertain or impress good), visual content of this sort is something that people's eyes must scan and brains must process, without any payback, for it is meaningless.”

“Extraneous content not only wastes people's time, it makes it harder for them to get at the message.
The reverse is true as well. Don't design a display that doesn't contain everything people need to make sense of it. Include every piece of information that is part of your message—even notes to explain what might not be clear—otherwise you're communicating poorly. This principle is broken in many graphs today by adding a 3-D effect to bars, lines, data points, and pies.”





 
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