Selection of the right BI software

A few steps to the optimal solution

Seven steps to the best BI software

1. Kick-Off

In an initial meeting with your core team, you not only determine which steps should be taken to select the right software, but also define who, apart from your core team, should be involved in the software selection. Such a core team usually consists of the most important business users as well as the necessary colleagues from the IT department. Determine in the team whether the requirements for the software should be collected in workshops or in interviews and who should participate. Interviews provide the advantage that everyone involved has time to formulate their needs and requirements precisely. Workshops, on the other hand, often generate additional ideas due to group dynamics.

2. Analyse the current state and define requirements

In the following, take the time to analyse the current state in your company and to collect all the requirements that the new software must fulfil. Discuss how data is currently collected and analysed, where there are difficulties and how BI software can help. In this way, you can compile a catalogue of requirements. There are four categories:

• Functional Requirements:
  Compile a list of all desired functions. The software’s final scope of functionality will also be determined by its intended area of application. Many BI systems are versatile, but they tend to focus on specific areas or functions. Also clarify which functions are absolutely essential and which are optional.
• Technical Requirements:
  The technical requirements address topics such as data security, data protection, required performance, platforms, operating systems, and database technology. Necessary interfaces with currently used systems must also be taken into account to ensure that the selected software can be optimally integrated into your IT environment.
• Organizational Requirements:
  This section addresses topics such as permissions. Should all users have access to all features and data, or should there be different permissions for different user groups? How should permissions be managed?
• General Requirements:
  In addition, there may be general requirements; for example, it may be important that software support be offered in a specific language, that the provider be based in your home country, or that the provider provide references from a similar industry sector. The provider’s long-term viability or the estimated implementation time can also be important criteria.

It is important to involve all stakeholders in this step. Therefore, don’t just consider the future primary users of the software; also include management and users who only occasionally need information from the BI software or who are provided with ready-made reports. This is the only way to obtain a complete overview of the requirements.
Also keep in mind that requirements can change over time. Therefore, it may be helpful to analyze the requirements in an iterative process and update the list as needed.

3. Define criteria

Once you have identified all the requirements, you can convert them into criteria for selecting software. As you do so, weigh the importance of each criterion to determine which core criteria your future BI software must definitely include.
The final list of criteria should then be approved by all stakeholders.

4. Product research

You can now start looking for suitable BI solutions. This is not an easy task, as there are countless options on the market and the number is constantly growing. However, based on your core criteria, you can quickly narrow down whether a solution is generally eligible or not. In this way you get a long list with a maximum of 20 to 30 software solutions. You can then narrow down the list to a short list of three to five solutions by using the other criteria.

5. Evaluate suitability

To compare multiple BI solutions and select the best software for your company, you should now schedule demo sessions with the vendors on your shortlist. This will allow you to thoroughly assess how well the offered solution aligns with your requirements and see it in action. In some cases, this may allow you to narrow down your list even further.
Next, you should examine the remaining solutions in detail and thoroughly. Not only are the various features important here, but so is user-friendliness. Many providers offer a free trial or a pilot program. Alternatively, you can use a proof of concept (PoC). In this process, the software provider demonstrates, using a specific task from your company, how the required features are implemented in the software.
Our tip: Take plenty of time for this step and test the various options as thoroughly as possible. To do this, prepare test scenarios that will help you during testing or that you can share with the vendors for the PoC. An evaluation form based on the originally selected requirements criteria can also help you assess the options.

6. Estimate implementation effort and costs

The effort required to implement the software and the costs incurred by the software also play an important role in the selection process. Therefore, clarify the following points for all options:

• Time needed to implement the software
• Costs for hardware, possible hosting of the software or use in a cloud
• Time required for any installation of the software
• Licence costs
• Maintenance costs
• Costs for consulting services
• Costs and time for any necessary adjustments to the software
• Costs and time for training of managers and employees
• Costs for integrating the software into your IT environment

7. Selection

You and your core team can now make an informed decision on one of the software solutions. Consider carefully and in detail which option is best for your business.

Conclusion

The decision for a BI software should be made carefully, as your company should work with the same software in the long term in order to get the greatest possible benefit from the software. For this purpose, all necessary functional, technical, organisational and general requirements as well as the resulting effort should be critically assessed and all stakeholders should be included in the selection process. You should also bear in mind that requirements can change over time and that it should therefore be possible to adapt the software to them in future.

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