Maturity Models for Business Intelligence

The assumption is that BI maturity assessment models (MMBI) should provide guidance on how to develop BI systems in an organization to achieve, e.g., competitive advantage and various benefits. It is asserted that MMBI should allow finding answers to questions such as the following:

■ Where are the reporting and analysis most often used in the organization?

■ Who uses business reports, analyses, and various organization assessment indicators?

■ What motivates organizations to use BI systems?

■ Which BI development strategies are used in the organization?

■ What added value do BI systems bring to the organization?

The further part of the study presents the characteristics and assessment of selected BI maturity models (Table 5-2).

Table 5.2 Overview of Bl Maturity Models

(Continued)

Table 5.2 Continued

Table 5.2 Continued

Source: Elaborated on: (Olszak, 2016).

TDWI’s Business Intelligence Model

TDWI’s Business Intelligence Model was developed by Eckerson in 2004 (Eckerson, 2004). It was originally created to assess the maturity of a data warehouse. Over time, along with the dynamic development of BI systems, it was adapted for BI assessment. The discussed model mainly focuses on technical aspects of maturity. The model consists of six stages, defined metaphorically: prenatal, infant, child, teenager, adult, and sage. Maturity evaluation is carried out in eight areas (dimensions): scope, analytic structure, executive perception, types of analytics, stewardship, funding, technology platforms, and change management and administration.

The documentation of the discussed maturity model is consistently modified and supplemented with new elements and can be found on the Internet. The model is particularly useful for assessing the maturity of BI systems from a technical point, but it definitely needs a wider-ranging update of elements related to culture and organization management. TDWI is one of the few firms that provide free questionnaires and evaluation criteria for BI systems.

Gartner’s Maturity Model

Tlie Gartner’s Maturity Model refers to three key areas (dimensions) of assessment: people, processes, and technology (Burton, 2009)- They are evaluated from the perspective of the following levels of maturity: unware, tactical, focused, strategic, and pervasive (Rayner & Schlegel, 2008). Level 1, referred to as unware, is characterized by incomplete and inconsistent data and a lack of knowledge in an organization about IT capabilities, especially BI. The second level means that firms are beginning to invest in BI tools and applications. However, there is still a problem of the so-called information silos and shortcomings in the field of efficient reporting and data analysis. Next, the level referred to as focused is identified with the creation of data warehouses for selected cells and departments of an organization. However, the problem of data integration and access remains unresolved at this stage. At the succeeding strategic level, organizations use BI to achieve strategic goals, i.e., those related to entering new markets, product placement, creating strategic alliances and supply chains, and HR management. Tlie last level of maturity means comprehensive dissemination of conducted BI analyses as well as using them to create new business models and establish competitive advantage.

This model is particularly suitable for assessing business maturity levels and individual departments. It largely relates to the technical aspects of BI. Compared with TDWIs, it enables the assessment of more elements of business nature. Model documentation is legible and correctly prepared. A series of questionnaires are proposed for BI assessment, although assessment criteria have not been defined in a clear manner. Most of the documentation is payable; only selected parts of it can be obtained on the Internet without paying for a subscription.

AMR Research’s Business Intelligence/Performance Management Maturity Model, version 2

AMR Research firm has developed a model to improve maturity in the area of BI and Performance Management (PM). Tlie model refers to three dimensions: technology, processes, and people, which are assessed from a four-level perspective: reacting, anticipating, collaborating, and orchestrating (Hagerty, 2011). Tlie first level means the implementation of projects (tactical), where the goal is to improve access to operational data and their better visualization. At this stage, users have the option of using desktop tools and simple queries for databases. At the second level of maturity, BI projects acquire a more strategic orientation. This is where, inter alia, the use of dashboards becomes important. Tlie third level is to consolidate business goals and resources within an organization. Users have at their disposal dashboards and Key Performance Indicators. The last level of maturity enables the implementation of strategic goals and integration of an organization with its environment, including the use of a balanced scorecard.

Business Information Maturity Model

The Business Information Maturity Model developed by Williams and Williams (2007) brings a new perspective and value to the issue of maturity of BI systems. There are six key areas (dimensions) based on which BI assessment is carried out:

(1) BI’s strategic position, (2) partnership between individual units and IT, (3) BI portfolio management, (4) quality of information and conducted analyses, (5) business culture, and (6) improvement of decision-making process and technical readiness (BI/DW) (Williams & Williams, 2007). The model consists of three levels of maturity. The first level enables the answer to the question what information should be made available for business needs; at the second level, the answers to the questions with whom, when, and where the information should be shared become important; and at the third level, answers are given on how to improve information. The model is well documented and has been equipped with a series of questionnaires to assist the user in self-assessment. The range of assessment ranges from 0 to 5 (0 is the lowest score, 3 is neutral, while 5 is highly mature).

Business Intelligence Maturity Hierarchy

Tlie Business Intelligence Maturity Hierarchy Model is an approach describing the assessment of knowledge management in the organization. The model covers four levels ofBI maturity: data, information, knowledge, and wisdom (Deng, 2011). However, the levels are assessed from the technical point of view only. The available documentation is very brief and does not enable a deeper understanding of the concept of the model.

Infrastructure Optimization Maturity Model

The discussed model enables measuring the effectiveness of reporting, data analysis, and data warehouses (Rajteric, 2010). There are four levels: basic, standardized, rationalized (advanced), and dynamic. The model has three classes of infrastructure optimization known as core infrastructure optimization (core IO), business productivity infrastructure optimization (BPIO), and application platform infrastructure optimization (APIO). BI systems only refer to two classes: BPIO and APIO. The BPIO class concerns business processes, business management, and IT management, whereas APIO concerns decision-making. The model is mainly focused on the assessment of technical BI issues. It is relatively poorly documented and does not define, among others, criteria for assessing maturity levels.

Business Intelligence Development Model

The Business Intelligence Development Model (BIDM), proposed by Sacu and Spruit (2010), includes six levels of maturity, referred to as (1) predefined reporting,

(2) data marts, (3) corporate data warehouse, (4) predictive analysis, (5) operational BI, and (6) PM. The model has three dimensions that consist of people, processes and technology. Model documentation is not available on the Internet. Criteria for assessing maturity levels are also not defined.

Lauder of Business Intelligence

Lauder of Business Intelligence (LOBI) is a model that is suitable for planning and implementing IT in business (Cates, Gill, & Zeituny, 2005). It uses three dimensions: technology, processes, and people, which are considered within six levels of maturity: facts, data, information, knowledge, understanding, and intuition. The model mainly focuses on the IT perspective, not on specific BI components. It is also poorly documented, and maturity criteria have not been defined.

Hewlett Package Business Intelligence Maturity Model

The Hawlett Package Business Maturity Model consists of three dimensions, referred to as business, information technology, and strategy and program management (HP, 2011). The business dimension describes the types of business requirements and problems that are solved with the aid of BI. The dimension of information technology presents solutions that an organization adopts to meet various business needs. The last dimension, however, refers to management skills as a key element in implementing BI. The model is mainly used to assess technical BI issues.

Information Evaluation Model SAS

SAS company proposes a model that is intended to support the assessment of the use and management of information in the business (SAS, 2011). There are four dimensions: people, processes, culture, and infrastructure; five levels of maturity include operate, consolidate, integrate, optimize, and innovative. By understanding and improving the business in these dimensions, firms can maximize their value and the impact of information as a strategic resource on achieving competitive advantage. The concept of the model is not easy to understand, and the assessment is difficult to carry out without the help of SAS specialists.

Watson Model

Watson and his colleagues developed a maturity model for assessing data warehouses (Watson, Ariyachandra, & Matyska, 2011). The model is described from the perspective of three levels (initiation, growth, and maturity) and nine specific dimensions. It is based on solid theoretical foundations and refers to the concept of growth, the theory observation, and change.

The Teradata Maturity Model

The Teradata Model is used to assess the maturity of data warehouses and BI systems. It illustrates the increase in the complexity of BI solutions used in an organization, which include (Miller, Schiller, 8c Rhone, 2011) reporting, analyzing, predicting, operationalization, and operation in real mode (activating). It consists of six levels of maturity, referred to as operational activities (operate), understand, change, growth, compete, lead, and several dimensions comprising, inter alia, business management, performance management, business analytics, project management, decision support, data management, data acquisition and integration, communication, and training. The concept of maturity in this model is process oriented, ’[he model is relatively poorly documented and difficult to understand without the support of specialists.

Most of the discussed maturity models are oriented toward technical elements. This means that IT components, such as applications, data, and infrastructure, are assessed most often. The so-called soft elements, i.e., information needs, organization structure, staff, organization strategy, and processes, are assessed less frequently.