In the first two parts of this series (“Business Intelligence Fuels Operational Excellence” and “Purple Reigns: Bridging the Gap Between Business and IT”), we talked about how to best understand our functional business intelligence (BI) needs and the best way to govern and execute BI projects. In this final installment, we discuss criteria for deciding what solution to choose. The options range from “off the shelf” (OTS) implementations to fully bespoke platform builds. Each has its own advantages and disadvantages. For example, OTS systems are quicker to implement and cost less up front. Custom systems offer more flexibility and may have a lower total cost of ownership over a 10-year or longer lifetime.
There’s no single “correct” answer. The appropriate choice will vary with each company’s individual strategy, IT capabilities, and tolerance for various project risks.
Following are some key aspects to consider in deciding which route is best for your company:
• Core functionality. Do you need basic reporting and dashboards, or more advanced analytics, data mining, and even data-discovery tools? Many software salespeople are peddling more than you might need. If you want advanced analytics, there are many solutions available; however, if you just need reporting, dashboarding, and general ad hoc analysis capability, then focus on how the BI platform can pull data from disparate sources together and what kind of visualization tools will be at your disposal.
• User experience. Do you require a flexible user interface and custom reporting, or would a “fixed” interface and “canned” reports meet your needs? Most of us typically want some ability to create custom reports; however, overstating that need can lead to much more costly solutions.
• “Extensibility.” A key element of a robust BI platform is the ability to extend it to include more, and new, data sources. Are you willing to accept a vendor’s road map for when and how new data sources are added, or do you want the ability to extend your platform at will? This is often one of the key differences between industry OTS solutions and more-generalized BI platforms.
• Road map control. Does your operation need to “control its own destiny,” or can it leverage a vendor’s road map? The advantages of controlling your own destiny can be compelling, but they can also increase the cost, risk, and complexity of the “care and feeding” involved in a bespoke BI solution.
• Database size. This is one of the simpler elements in multifamily housing. Many BI software applications are built to handle large, multi-terabyte data stores. This is the “big” in “big data.” The reality is that our industry has more of a “small data” problem than a “big data” one, so don’t overengineer your solution.
• Breadth of use. Do you have many analysts or just a few? How many other users will interact with the system? Will they do so for analysis purposes or only to review reports? These answers obviously affect desired functionality, but they may also directly affect cost, particularly where user-based pricing models are in place.
• Data modeling. Will you control data definitions and reporting centrally, or do you want to allow analysts to create their own and share them? Most multifamily operators are fine with the former option, particularly since we don’t tend to have more than a handful of analysts. However, there are tools available now that allow for a much more decentralized approach to data modeling.
• Partner support. Will general professional services support suffice for you, or will you require tech help from specialists with multifamily housing expertise? Most general business solutions support only the former, and I find that most operators don’t have the combination of business and IT skill sets needed to support that kind of solution. It’s not that our people don’t know what they’re doing; it’s that most operators don’t invest in the talent needed for that kind of work. Fortunately, there are experts in the industry who can help you make BI work for your business.
• Time line. If you’re looking for quick implementations, OTS solutions can meet that need, but then you’re tied to that vendor’s model and road map. On the other hand, if you can wait for a phased rollout, adding capability every quarter, a custom solution will work well. Said differently, if you want all the capability and flexibility of a bespoke solution, you’ll have to accept a slower implementation.
• Cost model. The different approaches have very different cost-over-time profiles. OTS solutions that charge a per-unit per-month fee almost always have a smaller cost in the first few years; however, custom systems, with larger up-front development costs followed by smaller ongoing maintenance and enhancement costs, may minimize your total cost of ownership. Note that size matters, because large companies bear higher total costs for OTS solutions and can amortize bespoke systems over many more units.
As mentioned above, there’s no single BI approach that fits all companies. Nor can most companies get everything they want in one obvious choice. Like most complex needs, you must understand the trade-offs and home in on what’s most critical versus what constitutes your “wish list” that you can forgo.
As you embark on your BI journey, evaluating your needs will help you arrive at the best possible solution.
