Hasta la vista baby! The Death of Federated BI

There is a clear trend happening: The death of federated BI. This model of Business Intelligence is failing because allowing individual departments to have their own IT systems and services is creating silos. Organizations cannot meet their goals and objectives through silos.

Centralized BI is saying “Hasta la vista baby!” to federated BI because when done correctly, it can simplify administrative tasks, improve data security, make data management and sharing a lot easier, and save the company a lot of money. There is a growing sense of urgency to abandon federated BI and deploy centralized BI.

The Death of Federated BI

Combined “Centralized & State of the Art BI”

To achieve the best results possible, we need to combine centralized and state of the art BI. Centralized is about governability. It provides a solution that is just one environment. Both power users and business users can log in to the same environment. Line managers keep the decision rights over what services should be delivered, but IT has the authority over how the services are delivered. This aligns the organization.

Centralized BI is critical, but enterprises also need state of the art BI. This means getting the most advanced technology possible. Nowadays we see this in automation of dashboards, automatic insights, and exceptions. Plus users have the ability to define their own thresholds, data anomalies, etc. Businesses need solutions that will notify them while monitoring KPIs and distribute reports automatically.

Centralized vs Federated

When comparing centralized and federated BI there are key points that come to light. First, centralized BI is about connection, all users work connected. In federated BI, users work in silos. This means that the findings or insights they get stay in their desktop, instead of sharing the knowledge. A centralized environment strives to achieve a single version of the truth. This is impossible in a federated environment; there are thousands of excels that are going across tables and being edited in different desktops, then they get shared and edited again. It is really complicated to merge this data.

When referring to the ability to maintain the system and scaling it with a specialized BI/IT team, there is no point of comparison. In federated BI there are too many desktops, too many different solutions, tech savvy businesses that don’t know how to scale BI to the whole enterprise. With centralized BI, organizations can keep costs down, because they are not overlapping staff, servers, licenses, and other things that are not necessary. Centralized BI is catered and pushes high usage. And it keeps the security on the domain of the experts of IT in a central and smart analytic platform. In terms of deployment, centralized BI is easier and simple. It allows users to draw a web deployment, there’s no scripting or installation on desktops, and it remains open to new users all the time because it can be scaled easily.

One Version of the Truth

One version of the truth is about the organization being aligned. The knowledge should not stay in just one department or get lost in excels across the organization. It should aggregate multiple areas to enable the company to get ahead of trends. The organization as a whole gets smarter as people work together.

Centralized BI ensures one version of the truth: with accurate data in the right context. It is also easier to connect people in a centralized BI solution, rather than having disconnected desktops around the organization. Everyone will see the same insights, the same numbers and data; instead of having the data stay in only one domain.

Centralized BI works at its best when using a fully web based solution that is easy for deployment and scalability and is going to help the organization transfer knowledge from domain to domain.

Secure and Governed BI

It is critical for enterprises to be able to determine who has access to which data and define private folders or public dashboards. To maintain security, it is important that IT should govern the tool in order to standardize it. When the same tool is used across the organization, different departments can allocate resources to help another department in need. It incentives people to use the solution and they know that they will be able to use it also in other departments in the organization.

Why Necto?

A good BI solution must provide an easy deployment, beautiful dashboards, top of the line analytics, automatic insights and KPI alerts; all in a centrally managed system. Users need to connect multiple data sources, consolidate and mashup all the data. They need to scale and deploy in a secure manner, in a centrally administered environment that does not require scripting. Users need to be able to automatically receive KPI alerts and notifications all the time to be aware of what is happening in the business.

Necto offers all that, enhanced in a platform that allows you to collaborate, share, and discuss your findings. It uncovers the hidden insights in your data and presents them in beautiful dashboards with infographics that users can understand better. It is an on premise solution with a web deployment, that is centrally managed and secured.

PS: There’s also a white paper available in case you want to download it. Just click here.

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