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Encouraging BI in government

Governments can learn a lesson from corporates in terms of BI.
Martin Rennhackkamp
By Martin Rennhackkamp, Business intelligence specialist of PBT Group.
Johannesburg, 09 Apr 2008

More than ever, citizens are demanding that the state and local governments display the attributes associated with the best corporations in the world: high levels of efficiency and execution, excellent customer service, and the ability to rapidly adapt to a changing world.

Like companies, governments cannot simply incur more costs to provide more services; they must increasingly provide these services in a cost-efficient manner.

By adopting business intelligence (BI) strategies similar to those used by corporations, governments can deliver better services to their citizens while improving efficiency and effectiveness and government-to-citizen communication.

There is much benefit to be gained from the process of implementing a strategic BI solution, especially as it is the public sector that is critically in need of the technology and the insight it brings to ensure decision-making is enhanced.

However, according to analyst firm Butler Group, private sector firms spend twice as much on BI than public sector bodies. In fact, only one in five public sector bodies in Europe and the US have already invested in BI, compared to two in five in the private sector, excluding small companies. Additionally, only 15% of public sector organisations plan to invest in BI in the next two years, compared to 28% of private companies.

Lacking BI

The importance of intelligence for government and all its levels and functions is incontestable.

Martin Rennhackkamp is COO of PBT.

These statistics are alarming, considering the fact that BI is an ideal tool for the public sector; to not only ensure operational efficiencies, and performance improvements, but to guarantee that each tier of government receives relevant and accurate statistics to inform them about the dynamics of the economy and society at large.

It must be stated, however, there have been a number of announcements about BI implementations in UK public sector organisations. This is encouraging, but how does SA's public sector compare and what needs to be examined to replicate this locally?

In short, SA is lagging behind and the BI competency centre of the country's public sector needs to evolve from a line of business function, where it stands currently, to an enterprise service. As such, BI needs to be removed from not only the business silos, but also from the IT centre, to facilitate the formation of an enterprise information service unit, which will allow for the creation of a data consolidation 'machine'.

This 'machine' will identify analytical silos wherever they may arise in the public sector and ensure they are immersed into the wider public sector BI environment.

Changing mindsets

Moreover, it is not only business and departmental silos that need to be eliminated; mental silos also need to be addressed where the mindset of public sector workers needs to change to understand the role that timely intelligence can play, with regards to the broad spectrum of governance functions.

Users and business unit leaders need to learn how to do a cross-functional analysis, which results in rich insights and enormous business value-adds.

Correctly implemented, BI systems provide executives, administrators, managers, outside contractors, and even individual citizens with the crucial information necessary to perform their jobs and make decisions more effectively, resulting in better government service and more productivity for every rand spent.

The importance of intelligence for government and all its levels and functions is incontestable as policies and the antecedent decision-making processes determine the quality and efficiency of government economic actions, including those actions designed to maintain power.

As such, intelligence should play an integral part in the day-to-day decision- and policy-making process taking place in government at all hierarchical levels, because without integrated information, a country runs the risk of economic failure.

Intelligence needs to be used by governments and the public sector alike, to protect citizens, enhance global economic competitiveness and development.

By adapting to the changed environment, the state will be able to prosper in the globalised economy and emerge from a developing or emerging nation to a First World country.

* Martin Rennhackkamp is COO of PBT.

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