If my CRM or ERP already comes with analytics modules, why do I need a new tool?
This is not the first time, nor will it be the last, that we approach a client to discuss the company’s analytical culture, how to create it, with what policies and tools, and the debate often centers around the same topic. We usually agree on many aspects, although not always on how to implement them. As I often mention, the controversial topic arises regarding tools: “If my CRM or ERP already has analytics modules, why do I need a new tool?”
At first glance, it seems obvious; if I can save an investment… But as good analysts, let’s study this in more detail.
Management Systems and Analytical Systems
Management systems (like our CRM or ERP) are designed for daily operations: capturing data, automating processes, querying information, etc. These systems focus on efficiency, robust databases, mature processes, all in real-time online environments. The requirements for analytics are “a different story”: data transformation, quick queries, large volumes of information, multiple dimensions of analysis, ease of handling graphs and tables, highly visual interfaces, drill-down capabilities… These systems are focused on enabling easy, intuitive, fast, modern use and typically have daily updates (immediate updates are not necessary). Clearly, we are talking about different architectures, different functionalities, different usability standards, and different response times. In my view, mixing them is like asking for the impossible.
Management systems contain a part, whether large or small, but ultimately a part of my company’s data. Therefore, their analytical modules will allow us to delve partially into the problems of my company, without being able to cross-reference, for example, my financial data with my commercial data. Unless we ask one of the management systems to “load” the information from the other systems into its databases. If we choose this path, we are entering an endless tunnel; we should prepare to invest a lot of money and encounter many significant problems. Allow me the analogy: we are asking a vehicle designed for asphalt to drive on rocky paths. We are bypassing one of the basic premises of information systems by trying to adapt them to something for which they were not conceived. I have seen genuine disasters that are impossible to resolve: issues with data integrity, duplications, lack of information… it’s a drama!
The Implementation Project for the Analytical Solution
It seems that we are tipping the scales, and the investment is starting to make sense and become necessary. However, my project for implementing an analytical tool is not going to be easy; therefore, we must be sure that it is needed. And this is where, in my view, the scales tip definitively. The complexity of the implementation project matters to us as a company for many reasons:
- We are interested in having someone assume the role of “guardian” of our data, with a cross-functional vision, applying business logic and ensuring the quality of the process. Someone who understands our data. Someone who, once the project is executed, will oversee the adoption of the solution and its proper use.
- We want the data to be reliable at the source, accurate, complete, integral, updated, consistent, relevant, valid, and unique. We are obligated to pay off the technological debt associated with the data to turn it into a true asset for the company. We also want
to maintain a single standard of quality.
- We are interested in transforming and enriching the data so that analytics can be much richer in content and easier to interpret.
- We want to define indicators and dimensions of analysis with a unique, global perspective that is close to the business, structure levels of analysis, and present it in a way that makes analytics intuitive and easy.
The project of building an analytical solution, when well-focused, is the necessary step for our asset (the data) to become a tangible asset that is widespread throughout the organisation. It is the preliminary step to creating an analytical culture in our company.
Conclusion
I may be very radical, but maintaining an analytical solution within each management system is a short-term measure at best. At worst, it is a disease that will bring us many problems. Therefore, I am a firm advocate for building analytics in a single, specialised tool.
At Kiteris, we offer you our knowledge and experience in management analytical systems to collaboratively build the solution that best fits your analysis needs. – Learn more about Kiteris services.
