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How do you balance the trade-off between self-service and centralized BI?

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Business intelligence (BI) is the process of collecting, analyzing, and presenting data to support decision making and improve performance. However, BI is not a one-size-fits-all solution. Depending on your organization's needs, goals, and culture, you may face a trade-off between self-service and centralized BI. In this article, we will explore what these two approaches mean, what are their benefits and drawbacks, and how you can balance them effectively.

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1 What is self-service BI?

Self-service BI is a model that empowers end users to access, explore, and visualize data without relying on IT or data experts. Users can create their own reports, dashboards, and insights using intuitive tools and platforms. Self-service BI can increase agility, flexibility, and innovation, as users can respond quickly to changing business needs and questions. However, self-service BI also poses some challenges, such as data quality, governance, security, and consistency. Users may not have the skills, knowledge, or standards to ensure data accuracy, reliability, and compliance. Moreover, self-service BI can create silos and duplication, as users may not share or align their data and insights with others.

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2 What is centralized BI?

Centralized BI is a model that relies on a centralized team of IT or data experts to manage, control, and deliver data and insights to end users. Users can access predefined reports, dashboards, and insights that are consistent, standardized, and validated. Centralized BI can ensure data quality, governance, security, and consistency, as the data and insights are curated, verified, and approved by experts. Moreover, centralized BI can foster collaboration and alignment, as the data and insights are shared and communicated across the organization. However, centralized BI also has some drawbacks, such as lack of flexibility, agility, and innovation. Users may not be able to access the data and insights they need in a timely and relevant manner. Moreover, users may not have the autonomy or creativity to explore and discover new insights and opportunities.

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3 How to balance the trade-off?

Finding the optimal balance between self-service and centralized BI is not a simple answer, as it depends on various factors such as organization size, structure, and culture. However, there are some general principles to consider. Firstly, assess your current BI maturity and capabilities, such as data sources, tools, and processes. Secondly, define your BI vision and goals to ensure it aligns with the business strategy. Thirdly, adopt a hybrid BI approach that combines self-service and centralized BI with a governance framework. Finally, monitor and optimize your BI performance by tracking results and measuring impact. Collect feedback from users and stakeholders to identify what works well and what needs improvement. Adapt your approach to changing business needs and challenges for continuous optimization.

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David Herrington MA MCMI FRSA

Hi - I'm looking for a new role and would appreciate some help. My position as Senior Consultant/ Regional Implementation Lead came to an end on 17th December 2024. Feel free to get in touch.
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Having developed a BI hybrid for central and self service the best learning for me was to have defined core measures up front which are embedded in the central side initially and which must apply across the organisation. Self service is also defined. This is not what might be expected so I will explain. Self service can provide layers of insight and information for each part of the organisation from the operational centre to the C-Suite. Each will have their needs and these must be considered. With each layer should also be policy and training about how to use and where to apply the insight to create and share knowledge - and importantly to contribute to planning and decision making.

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Robert DeVall

Insights Leader | Quantitative and Qualitative Research | Statistical Analysis | Corporate Reputation | Data-Driven Strategy | Survey Design | Data Visualization
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I agree. I would also add that it's important to consider the resources available to manage and maintain the BI solution. Self-service BI may require more resources to manage, while centralized BI may require a dedicated team to maintain the infrastructure and ensure data quality. Ultimately, the decision between self-service and centralized BI should align with the overall business goals of the organization. The chosen BI approach should enable the organization to achieve its strategic objectives while balancing the trade-offs between self-service and centralized BI.

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4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Ankur Khare

Go-To-Market | Digital Adoption Leader | Sales and Business Development Strategies |Digital Transformation | Revenue Growth Contributor
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Balancing self-service and centralized BI involves evaluating business needs and resource availability. Self-service BI empowers users to access and analyze data independently, promoting agility and faster decision-making. However, it can lead to inconsistencies without proper governance. Centralized BI ensures data accuracy and compliance but may slow down response times. A hybrid approach, combining self-service for routine tasks and centralized BI for complex analyses, can optimize both flexibility and control, aligning with organizational goals.

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How do you balance the trade-off between self-service and centralized BI?

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1 What is self-service BI?

2 What is centralized BI?

3 How to balance the trade-off?

4 Here’s what else to consider

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