Selecting a BI Service Provider

Boris Evelson of Forrester Research provides interesting tips on selecting a BI services partner.

As a Business Intelligence solution provider partner, The BI Builders usually experiences better project success when our clients have done some good thinking about the provider they choose, and the long run ‘journey’ of business intelligence. ‘Journey’ is Boris’s term, and I like it so I will use it again – it’s the recognition that BI implementation is never a discrete project. Business Intelligence touches so many facets of business, and is so dynamic, that implementation becomes an art, and does not fit into the usual project execution methodology. (See The BI Builders LiqUID methodology for background).

As a Boutique BI firm, we are sometimes called in to take over a failed project and turn it around. It’s satisfying to be able to achieve a turn-around, but it’s in the clients best interest that the project never fail in the first place. For this reason, we will sometimes turn down work if we do not feel that we can make the project succeed. It is important the both sides consider the best fit of skills to the project.

Organizations should employ a mix of resourcing options so as to take advantage of the various strengths of each. For instance, an organization may decide that they are best suited to use a vendor to implement, employees for development, and a boutique provider for solution maintenance/sustainment. Here’s my take on the different Business Intelligence Consulting and Implementation options:

• Direct Hires – This may be the lowest cost option, have clear long run wins, and good integration with the business. Consider though that return on investment will be lower if you have to train the resource, or if the project evolves beyond the skill-set you’ve hired. Direct hires are likely to have a lower variety of experience.
• Independent Consultants – Independent consultants will have worked on a variety of projects, making them adaptable to new environments, and will likely be a low-cost option. There is less overhead involved (as compared with hires.) Good local consultants may be hard to find, however, and their reputation difficult to establish.
• Staff Augmentation Agencies – Staff Augmentation agencies make finding contractors easy, and have a bit more accountability in that they will likely replace a resource if he/she doesn’t work out. Cost will be higher however, and the agency doesn’t take responsibility for managing the work.
• Boutique BI – Business Intelligence firms tend to have very strong experience in specific skillsets, industries or functional areas. Implementation is likely to be fast, managed by the provider, and can involve multiple resources per project. Expect very strong knowledge/relationships for the vendors whose tools they use. Reputation may be hard to establish, however, and hourly rates will be higher than independents.
• Large Professional Services Organizations – The broad skillset companies like Deloitte and Accenture bring to Business Intelligence projects mean a highly integrated solution can be delivered, using a large project team. The project is likely to be managed by the provider, and you can feasibly outsource the whole program to them. The cost is likely to be high, however, and you may not experience the level of visibility/control in the project that you would on your own.
• Vendor Professional Services – The main advantage of working directly with the vendor for implementations is accountability. Implementation is likely to be fast, managed by the vendor and may draw on multiple resources. Cost is likely to be higher, however, than working with a boutique BI firm or an independent consultant.

Iain Rogers
Sr. Marketing Manager – The BI Builders