When defining its Business Intelligence (BI) strategy, an organization can take three different approaches, depending on which fits its needs. First, an organization can simply use the out-of-the-box (OOTB) tools that come “for free” with their ERP system. Other businesses may find that they need a third-party BI solution to get the results they are looking for from their BI initiative. Finally, organizations needing a more robust BI system can build their own custom solution.
The sticker price is obviously lowest on OOTB BI tools, and this may be enough for many businesses. A careful inquiry should be made into what data needs to be analyzed before deciding whether OOTB BI tools will be enough. But don’t underestimate the power that these OOTB tools provide. A solution like Dynamics AX comes with insightful KPIs and cubes to speed up reports and help make them easier to use. In fact, you may find the need to scale back on the functionality to remove unneeded dimensions, measures and measure groups. However, tools packaged with a solution like Dynamics AX are really focused and work well with data generated within the system, but may struggle to compare and analyze data from outside sources.
There is also a niche of third-party BI tools designed to extend or replace the OOTB tools. These providers eat, sleep, and breathe BI. And the good ones are very familiar with the ERP system they are designed to complement, which is important when needing to work with data generated by ERP system customizations. They tend to be more flexible than the OOTB offerings and can be configured more easily. In addition, the third-party tools come with BI professionals who can help an organization figure out exactly what they need to accomplish and how to reach those goals. However, don’t just assume that a third-party tool works better with outside data sources than the OOTB tools. Organizations must also consider the cost of licensing, implementing, and maintaining a separate piece of software.
The BI requirements of some organizations, mostly large global companies, are so demanding that ready-made BI tools cannot meet them. In these cases, a custom BI solution can be built. However, this is a huge initiative. It takes both technical and business experts to both build and maintain such a solution. The initial and ongoing cost of supporting a custom solution makes a strong case for using OOTB or third-party tools when those will do the job, which is why a company should do a very in-depth analysis of BI requirements before selecting any approach.
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