As more apartment operators are embracing data and analytics, and desire making data-backed decisions, (rather than by mere observation or gut) the focus and discussion on Business Intelligence in general and BI software specifically is continually increasing. 

Having moved past the hype of “Big Data” and more to the realities of how much we can accomplish in our industry, I’ve seen that by mastering the “little data,” many more operators invest real dollars in BI initiatives. Unfortunately, we have also seen the road littered with BI projects that have failed—with hundreds of thousands, even millions, of dollars wasted on projects with disappointing results.

So what truly separates successful BI projects from mediocre ones (or, worse, from those that end up in the scrap bin)?

As the interest and importance of this question has gained increasing relevance, the search for answers has grown as well. I recently provided a perspective on this topic in a three-part series that appeared in Multifamily Executive.

Business Intelligence Fuels Operational Excellence, Collaboration

Part 1 of the series shares how to determine the right approach for your operation.  Far too often BI decisions are delegated to the IT department. On the surface this can make sense, since so much of BI execution revolves around IT. However, this tends to lead to significant challenges with BI adoption and ultimately dissatisfaction.

It’s crucial that the business operations team works in collaboration with IT to design the requirements for your approach to BI as well as determine the tools best suited to deliver on those requirements. Be sure to check the article out if you’re looking for the key questions to answer and criteria for a successful start to BI.

Purple Reigns: Bridging the Gap Between Business and IT

The primary cause of project failure in these types of projects is a fundamental culture gap between IT and business. The first, and perhaps biggest, challenge is that few businesspeople really understand and can “speak” IT. We’ve worked with many clients who have great operators and finance people but few (often no one) outside of IT who can talk technology. As a result, IT teams often experience frustration on large projects involving business operations. Conversely, most IT people are not as familiar with the business as they think they are.

If you think metaphorically of business associates as “blue” people and IT folks as “red” people, then what is clearly needed is more “purple” people—those who can span the boundary between the two. If you want to find out how to get your purple people, you’ll want to read the article.

Another issue that can lead to a BI program’s failure is that software salespeople generally peddle software solutions: They get rewarded for making sales—and making them now. So issues like project governance and change management, particularly if they introduce two- to four-month–long pre-project plans in place of the software implementation, are almost never discussed.

Business Intelligence Software: Finding the Best Fit for Your Company

In the final installment, I 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. In this article, I share the 10 points to consider to determine the right solution for you.

BI is fast becoming a core discipline for multifamily operators. Be sure your strategy and approach are in line to ensure success.