Build or Buy - Are custom Business Intelligence solutions here to stay?
A few reasons why customers prefer to stick to the "Build" direction of BI are listed below:
- Source data spread across multiple legacy applications
- No immediate roadmap for migrating the legacy platforms to the standard ERP or CRM packages from the market leaders
- Unavailability of common definitions of various metrics across the organization
- Lack of Business user preparedness for moving out of traditional reporting platform to an EDW
- BI solutions already existing in silos and no strategy of revamping the entire platform
- Challenges in history data migration into packaged BI models
Packaged BI solutions provide seamless integration with the standard ERP or CRM packages from market leaders. Having said that, there could still be certain factors that need to be considered before going for a packaged BI solution on top of the standard ERP or CRM applications. Standard ERP implementations are ideally considered for process improvements in an organization. But there could be situations where the business may not want to deviate from their existing business processes and plug heavy customizations into the ERP applications, there by having to apply the same level of customization into the packaged BI also. It should be noted that these customizations are highly likely to be requirements for analysis as well, as they are built in the source for a specific purpose. These customizations can be costly and along with the cost involved to buy the product, this could turn out to be more than building just what is needed.
In case of legacy applications, there wouldn't be any way to populate the prebuilt analytics. There are universal adapters provided which can reduce the cost or effort compared to doing a complete build but the perception is that the reduction is lesser than desired. In scenarios where a combination of both packaged ERP and legacy applications are used, the above points would still be applicable. In addition to this, there could also be Data Quality or standardization issues, which would impact both Build and Buy options.
The above mentioned points are few of the criteria, based on my experience, which could drive the decision towards a custom BI solution and there can be several others. Several large organizations, including the ones I am working on, are frequently kicking off custom BI projects. Despite all the benefits brought in by packaged BI solutions, I feel the above listed scenarios are quite common in various organizations and could tilt the decision towards building Custom BI solutions.
Hence, it is my view that 'Custom BI solutions are going to exist for several more years'. I would be interested to hear your opinions/ experiences on this topic. I would also share few more thoughts in my next blog entry on key success factors in custom BI implementations.
- Ravi S Kandarpa
Ravi S Kandarpa has over 12 years of IT experience. He has worked on several Business Intelligence implementations for leading telecom and manufacturing clients and has experience on various Business Intelligence tools. Currently Ravi is a Senior Technology Architect with Oracle BI practice in Infosys.


