Financial, operational and business performance information is held in multiple locations and multiple formats, according to an Economist Intelligence Unit (EIU) study.
This lack of consistency is making it difficult for companies to gain accurate information across the whole business and leads to bad decision-making.
Workers make poor decisions because of inadequate data, according to 40% of the 386 senior executives surveyed. Almost half the respondents say they use tools within individual departments or groups, without any central control.
Information rarely trickles down below senior or middle manager levels, even though 80% of the executives say it would improve performance if more people could see it, finds the report ‘Business Intelligence: Putting information to work’, sponsored by Intel and SAP.
“For effective business performance management, it is essential for operations-level employees to have full access to up-to-date analytical data,” says EIU report editor Rama Ramaswami.
“Unfortunately, companies have yet to integrate business intelligence tools into mainstream business processes and analysis or to co-ordinate them in a coherent way.”
More than a third of the companies use BI tools from two to three vendors and 14% are using tools from up to seven vendors, which can produce conflicting results and make managing the information very difficult.