The Next Wave in BI: Decision Analysis

We’ve come a long way in business intelligence, but there are still plenty of miles to travel. We’ve gone through three distinct eras: Data Warehousing, Business Intelligence, and Performance Management. I think the next era is Decision Analysis.

In the 1990s, we focused on building repositories of integrated, historical data (i.e., the era of Data Warehousing); in the late 1990s and early 2000s, we focused on tools for reporting and analyzing information in our data warehouses (i.e., the era of Business Intelligence); in the late 2000s, we focused on using information to improve performance by monitoring key performance indicators (i.e., the era of Performance Management.)

The next decade will focus on improving the way we make decisions. There is a lot to say here, and I haven’t completely formulated all my thoughts, but this era will take a long time to bear fruit because it involves understanding how the human mind processes information and how people interact in social groups to make decisions. To take BI to the next level, we need better insights into human behavior and perception. In other words, it’s time to recruit psychologists onto our BI teams.

In 2010, you will see the first fruits of the era of Decision Analysis. Specifically, you’ll see more robust collaborative capabilities embedded within BI tools and the first attempts to deliver formalized methods for evaluating the effectiveness of decisions made with those tools.

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