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Information Systems Management, 32:229–233, 2015

Copyright © Taylor & Francis Group, LLC


ISSN: 1058-0530 print / 1934-8703 online
DOI: 10.1080/10580530.2015.1044343

Business Intelligence Competency Center: Improving


Data and Decisions
Kyle Foster1, Gregory Smith2, Thilini Ariyachandra2, and Mark N. Frolick2
1
84.51, Cincinnati, Ohio, USA
2
Williams College of Business, Xavier University, Cincinnati, Ohio, USA

will incur and creating pricing models to cover these and


This article describes the development of a business intelligence operating costs. Many insurance and financial service organiza-
competency center at a multi-line insurance company in the tions utilize a process for creating predictions which consists of
Midwest. It outlines the organization’s problems which led to the two primary steps: data acquisition and analytical processing.
creation of the business intelligence competency center and the
steps taken to ensure a successful implementation. Through a While not unique, it allows for data consistency and integrity.
change in culture and use of an intermediary between end users Unfortunately, not all processes are successful or timely.
and the larger information technology area, a significant success In this article, New Tech Insurance is introduced, an insur-
was achieved for all involved. Resulting from this experience is ance company offering a vast array of insurance products. Like
a set of best practices for business intelligence competency cen- other insurers, New Tech Insurance employed a silo approach to
ter implementation that, if followed, can lead to success for any
company. data acquisition where it gathered data from several distinct sys-
tems. These different data sources often contained incomplete
Keywords business intelligence; business intelligence competency segments of the same data, as well as slightly different versions
center; data governance; data quality; IT of the same data. Unfortunately, New Tech Insurance was tasked
with processing and making important decisions with this poor
quality data.
INTRODUCTION In addition, New Tech Insurance struggled with data sourc-
Today’s competitive business environment requires com- ing problems. New Tech Insurance spent more time assimilating
panies to collect, analyze, and interpret enormous quantities data than analyzing due to a largely manual data integration
of data to enable better, more informed decision making. process. A main cause was the manual task of correcting data
Fortunately, there is an abundance of data available for most quality problems. At the same time, the company’s research and
companies. However, without proper data quality and gover- development area was hindered by the lack of proper analytic
nance guidelines, these data might prove useless. Data quality is tools, so advanced analytics were outsourced. In short, a consis-
a necessity when extracting meaningful information. For, with- tent enterprise-wide data collection and analysis approach was
out it, a company may be left guessing at a direction or making lacking.
skewed decisions based on flawed data. So, in order to achieve In order to better capitalize on the wealth of information
high quality, the data need to be accurate, available, under- being collected, as well as to correct its current data collection
standable, and relevant to the problem being solved. Ultimately, issues, New Tech Insurance decided to create and implement
impactful, data-driven decisions are necessary for organiza- a business intelligence competency center (BICC). This article
tional survival. Unfortunately, the decision making capabilities provides an overview of New Tech Insurance, discusses the rea-
of a company are made significantly more complicated when sons and plans for initiating its BICC, and examines the success
there is a lack of data confidence. This lack of confidence of the BICC.
adversely affects organizational performance. (IBM, 2008).
Among all industries, the insurance industry may be the
NEW TECH INSURANCE AND BICC
most reliant on quality data. Insurance companies derive their
profit by predicting the cost of future losses their insureds New Tech Insurance is an insurance company operating in
23 states and offering property, casualty, and automotive insur-
ances, as well as excess and surplus lines of insurance to its
Address correspondence to Thilini Ariyachandra, Williams College individual and business customers. The company was founded
of Business, Xavier University, 3800 Victory Parkway, Cincinnati, OH with the idea to make insurance a one-stop shop for cus-
45207, USA. E-mail: ariyachandrat@xavier.edu tomers and to operate through independent local agents. These
229
230 K. FOSTER ET AL.

local agents are commissioned based and not employed by the time, the BICC collaborates within the business to improve
company. analytical capabilities and deliver information solutions in
Given their extensive data collection and analysis problems, support of its strategic objectives. The center was to serve
New Tech Insurance saw the need to assess their data gover- as a business-led, internal consulting, analysis, and support
nance policies related to data collection and analytics. This led organization.
to the creation of a BICC. Individuals with the right skill sets were essential to take
A BICC is a cross-disciplinary team assigned within a com- on a project of this size and importance. For the BICC to be
pany who is charged with championing “BI technologies and successful, the team required members to have the ability to
standards, as well as the business alignment, project prioritiza- communicate directly with business users as to gain a more
tion, management and skills issues associated with significant holistic understanding of their needs, both in terms of content
BI projects.” (Strange & Hostmann, 2003). The success or fail- and time. In addition, these individuals required a technological
ure of such a group is primarily dependent upon the composition background to understand how to accomplish the specific tasks
and skills of the team. required by the business users. Over 120 individuals within the
organization were interviewed for the BICC team. What started
as a team of one grew steadily as the responsibilities of the
The BICC Initiative BICC expanded.
Prior to the creation of its BICC, New Tech Insurance had The underlying mission of the BICC was to empower
a single IT organization known as the IT Data Management strategic decision makers to accomplish important business
Group. This unit managed all matters related to technology objectives through a structure with strict data governance and
including developing reports for business users. Given that the information delivery. The BICC was to act as a liaison between
IT Data Management Group managed all technology issues for analysts in the lines of business and the IT Data Management
the company, its workload steadily increased as the company group. In order for it to work, the BICC needed to be business
grew. centric, rather than IT centric. This allowed it to better meet the
In addition, a constraint developed in the report creation needs of the lines of business it supports.
process for business users. The problem centered on the IT Even though it was to be business oriented, the BICC still
Data Management Group not being able to create exactly what had technical responsibilities. Since there is overlap between
the business users truly needed in a timely manner. As such, the objectives of the IT Data Management and the BICC,
there appeared to be a communication gap between the IT Data there were varying opinions regarding roles and responsibili-
Management Group and the business users. This problem led ties. So, New Tech Insurance created guidelines regarding the
to the IT Data Management Group creating reports for business responsibilities of the newly created BICC and clarified the
users which were not used because the amount of time it took responsibilities already in place for the IT Data Management
to create the reports exceeded their usefulness. So, instead of Group (see Table 1). For example, the BICC was charged
using the generated reports, business users sought the skills of with developing the Cognos reports and dashboards, while the
experts within the organization to help generate reports which IT Data Management Group was charged with administering
led to a lack of confidence in the IT Data Management Group the created Cognos reports and dashboards. This separation
and its ability to deliver quality and timely data. of responsibilities was essential for two reasons. First, each
New Tech Insurance faced a difficult dilemma as it had group was able to follow its own mission and vision. Second,
several key problems to address. They included: the separation of powers easily pacified conflicts when dis-
crepancies surface. The BICC was aligned under the CFO in
• The ever growing work for the IT Data Management
order to keep its focus on improving the company’s competi-
Group;
tive business edge. The IT Data Management Group remained a
• The lack of effective communication between the IT
traditional IT team under the direction of the Chief Technology
Data Management Group and business users;
Officer.
• The lack of data quality standards;
The CFO saw the critical success factors for the BICC to
• The need for better analytic tools.
be its ability to effectively and efficiently manage its responsi-
So, in 2008 a multi-departmental committee was formed bilities and deliverables, while reducing the cost of providing
to combat these issues. This committee decided to dedicate information to the core analytic processes.
a team to bridge the gap between business users and the
IT Data Management Group while simultaneously improv-
ing the analytical capabilities of the company. With top- Addressing Key Issues of Analytical Processing and Data
down support from the Chief Financial Officer (CFO), the Governance
BICC was created. For New Tech Insurance, they see their The BICC helped to address several key challenges that New
BICC as a hybrid organization combining technical and func- Tech Insurance previously faced with its BI efforts under the IT
tional resources to manage information delivery. At the same Data Management Group.
BICC 231

TABLE 1
BICC/IT Responsibilities
BICC IT Data Management
Semantic layer design Semantic layer design and build
Cognos report and dashboard development Administration (SAS, Cognos, Infosphere)
Data profiling Data profiling
Data dictionary/Functional metadata Technical metadata
Business reporting requirements ETL (IDL, EDW, DQ, etc.)
Prioritizing change requests and development of (Cognos, Administrate EDW, IDL, Data marts
SAS, IDL, ETL, and EDW work)
Cognos/SAS end user training Cubes/OLAP development
Sandbox starter set design Starter sets creation
Data quality requirements for ETL Report scheduling
Data governance and quality process Sandbox environment support
Conceptual data model validation and design Conceptual/Logical/Physical data model creation, validation,
and design

Prior to the BICC, the IT group lacked timeliness with the charged with chairing a data stewardship committee which is
delivery of data requested by business users. As a result, busi- responsible for:
ness users would turn to select power users within their own
groups to assist in report creation. At first these power users • Defining data across the enterprise;
enjoyed the recognition of their sought after skills, but, in time, • Improving data quality;
it became too difficult to accomplish their own responsibilities • Resolving data integration issues;
with this additional burden. • Providing data usage policy and quality standards;
The BICC recognized that providing business users with • Determining data security;
data they requested in a timely manner and helping them with • Maintaining business rules applied to data and data
their specific reporting needs increased their satisfaction sig- retention criteria.
nificantly. The BICC also realized an opportunity to give the
business a self-service data reporting application when they In addition, a data glossary was developed and deployed to
implemented Cognos, a business intelligence and performance help increase quality. This directory helped to centralize the def-
management software suite. This software would ultimately inition of individual data elements and the business areas they
allow business users to satisfy their own reporting needs as it support.
provides novice users with the ability to extract, report, visu- New Tech Insurance also fell short with enterprise-wide
alize, and analyze data. This necessary acquisition helped to quality standards and assessments. This resulted in root cause
reduce business user dependency on the IT Data Management analysis and resolution being performed inconsistently and
Group and focused their attention to the BICC for their infor- largely unchecked. The BICC put forth a goal to have the data
mation reporting needs. quality processes be both proactive and reactive. Proactive pro-
Prior to the creation of the BICC, no enterprise wide cesses help prevent data quality issues from occurring as they
data governance policy existed. So, data analysts and busi- enable business process improvement and early involvement in
ness users experienced less than satisfactory results when new information systems initiatives. Reactive processes, such
analyzing data. Often, the development of reports and infor- as the collection and resolving of data quality issues, feed back
mation processing were delayed by the lack of consistent, into the proactive process by means of lessons learned.
well-defined data. The BICC put forth a strong governance Now, the BICC provides support to data creation areas based
process to aid in the creation of impactful enterprise deci- on the knowledge gained through data quality issue resolution.
sions. As such, the BICC sets-up and maintains definitions for It also prepares and publishes a data quality scorecard which
data collected from the company’s business insurance oper- enables the organization to gauge its progress on improving data
ations. It schedules and facilitates periodic meetings for its quality. The BICC also works with the data stewards to help
oversight committee, the Enterprise Data Governance Council. maintain data validation rules which enforce enterprise data
The Council ensures data stewards across multiple organiza- standards, achieve key quality goals, and ensure root causes are
tions are kept abreast of new and on-going changes to corporate addressed.
data. A Data Governance Manager, who works in the BICC, was Finally, the BICC addressed analytical process sharing. Prior
to the BICC, analysis performed throughout the organization
232 K. FOSTER ET AL.

was segregated by departmental units. By creating analytical applications. A self-service approach allows business users to
silos, the company increased the amount of conflicting mea- work more efficiently by completing tasks on their own and
sures, redundant efforts, and decision making based on inac- lifting the constraint on others who are often left to support
curate information. The BICC catalogs the analytics dispersed when assistance is needed. Through self-service, employees
throughout the company, validates the accuracy of the methods gain efficiency and essential skills while the company saves
and results, and posts the analyses to an online repository which money.
is available to all appropriate employees broadly. Fifth, it is important to define architecture for different
The BICC is also able to provide formatted data sets for sta- components of the BI infrastructure while continuously updat-
tistical analysis. This enables actuaries to easily model data and ing and maintaining data standards, methodologies, definitions,
design insurance lines with more precision. At the same time, processes, tools, and technologies required to support BI.
self-service reporting through Cognos has allowed underwriters Without companywide standards, it is a challenge for different
to decrease the amount of time needed to accomplish their tasks aspects of the company to work together.
from weeks to minutes. These accomplishments have saved the Sixth, a company needs to create a success roadmap with
company both time and money. metrics which measure both the implementation and ongoing
success of BI. It is also important to communicate successes
and demonstrate how the BICC is enabling the organization to
BICC BEST PRACTICES
meet its BI goals. A common scorecard should be created to
The implementation of the BICC at New Tech Insurance help visualize the progress made and the goals still unattained.
addressed several key data and process issues in data gover- Finally, for a proper and successful implementation of a
nance and practices. These translated into major tactical and BICC, soft skills prove to be more important than technical
financial gains for New Tech Insurance. The success of the skills. For, as Eckerson (2005) states, “Successful technical
BICC posits several best practices for organizations attempting teams score especially well on the ‘soft issues,’ such as the abil-
to implement BICCs.
ity to communicate technical issues clearly, respond to business
The first key is securing top down support from an executive requirements, and develop desired functionality.” The individu-
sponsor willing to champion the project. This executive sponsor als on the BICC team must possess the ability to communicate
must be directly engaged with the project. This will help elimi- and understand business users’ needs and translate those needs
nate barriers and keep the project on point during difficult times. into technical requirements.
For, without an executive sponsor, a project’s chance of failure
is much higher than with one.
The second key is assigning tasks to the BICC away from CONCLUSION
other units to avoid redundancy and ease process bottlenecking. Reflecting on the successes New Tech Insurance, it is clear
For New Tech Insurance, the transfer of responsibilities from that progress was due to the implementation of the BICC.
the IT Data Management Group to the BICC helped to reduce However, as with any organization, no goal or implementation is
data and task redundancy while allowing the BICC to take con- ever complete. As technology advances, the BICC will improve
trol of some responsibilities formally managed by the IT Data upon its accomplishments. As Zeid (2006, p. 20) states, “It is a
Management Group. The result was the BICC acting as the liai- journey, not a destination. Changing internal culture and knowl-
son between business users and traditional IT support. But, with edge mechanisms is a slow process. You are embarking on an
the BICC acquiring more responsibilities, another group must ongoing process that will pay significant dividends in the long
lose some. This shift of responsibilities may have a “stepping on term.”
toes” reaction by those groups losing some of their responsibili- As it evolves, the BICC would like to integrate its services
ties. However, in order for the BICC to achieve success, the shift companywide and steer away from a pool of select power users.
of responsibilities is absolutely necessary. Those losing respon- In order to accomplish this goal, the BICC is developing a user-
sibilities will gain capacity and acquire other responsibilities friendly dashboard system to replaces its current reporting tool.
which can be more focused to their core competencies. Dashboards will allow individual, novice users to manipulate
Third, organizations should seek and celebrate early wins. data and solve problems in real-time, thus alleviating the load
For a project of this magnitude, early wins allow for a gain on the power-users. Ultimately, this should free up the IT Data
in confidence in the BICC and its team. In addition, early Management Group to work on more important projects, and
wins also help improve the confidence of individuals within the give regular business users more freedom in their work.
BICC. “The most important implication of the progress prin-
ciple is this: By supporting people and their daily progress in
meaningful work, managers improve not only the inner work AUTHOR BIOS
lives of their employees but also the organization’s long-term Kyle Foster is a Data Solution Consultant at 84.51 (formerly
performance” (Amabile & Kramer, 2011, p. 12). dunnhumbyUSA). He is responsible for the implementation
Fourth, the organization must live the adage “teach them of data strategy and relationships clients. Prior to join-
how to fish.” Strive to empower business users with self-service ing dunnhumbyUSA, he worked as a consultant for Sogeti
BICC 233

USA. Mr. Foster earned a Master of business administration He is considered to be a leading authority on business intel-
with a concentration in business intelligence from Xavier ligence and has authored over 150 articles. His research
University. has appeared in such prestigious journals as MIS Quarterly,
Gregory Smith is an associate professor of MIS in the Williams Decision Sciences, Journal of Management Information
College of Business at Xavier University. His primary Systems, Decision Support Systems, and Information and
research areas are the application of artificial intelligence Management.
in predictive analytics and data mining. He has pub-
lished in the International Journal of Business Intelligence
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Forecasting. Business Review, 89(5), 70–80.
Thilini Ariyachandra is an associate professor of MIS at Eckerson, W. W. (2005). Assessing your organization’s readiness for
Williams College of Business at Xavier University. Her main performance dashboards. Business Intelligence Journal, 10(3),
17–19.
research area is BI and data warehousing. She has pub- International Business Machines. (2008). Building a business intelligence com-
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Review. Strange, K. H. & Hostmann, B. (2003). BI competency center is core to BI
success. Gartner Group White Paper. Retrieved from https://www.gartner.
Mark N. Frolick is a professor of MIS in the Williams College of com/doc/400976/bi-competency-center-core-bi
Business at Xavier University and the holder of the Western Zeid, A. (2006). Your BI competency center: A blueprint for successful
and Southern Chair in Management Information Systems. deployment. Business Intelligence Journal, 11(3), 14–20.
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