Why 90% of business analytics projects fail

Shocking Statistics: Most BI Projects Never Make It to Results

Companies invest billions of dollars annually in business intelligence, but in practice, it rarely becomes a driver of real change. Reports gather dust, dashboards are opened a few times a year, and key decisions continue to be made intuitively and by inertia.

According to Gartner’s forecast, by 2027, eight out of ten analytics projects will fail. In most cases, the reason lies in poorly defined business objectives and a lack of understanding about which specific decisions analytics should change.

BI affects the very logic of management: it determines how a company works with information, how quickly it responds to deviations, and what it bases its actions on. This systematic approach is what many organizations lack when they perceive an analytics system as a separate technological initiative rather than as part of their business model.

In this article, we’ll explore why business analytics fails, what warning signs appear at the start, how companies that achieve results operate differently, and how to build a BI solution that actually works.

7 Main Reasons Why BI Projects Fail

Let’s examine the key challenges of BI implementation that even experienced teams face.

Lack of Clear Vision and Strategy

Among the reasons for BI project failure, first place goes to launching without a clear management mandate. The decision to implement analytics is often made out of a desire to see numbers, but there’s rarely an understanding of what exactly should change once those numbers appear.

When it’s not defined from the start what specifically should improve and who’s responsible for using the analytics, BI becomes a technical project without business consequences. As a result, the analytics system starts living somewhere separately: teams collect data, build reports, visualize metrics, but none of this is integrated into decision-making processes.

Low Stakeholder Engagement

BI system development often happens too technically: analysts integrate sources, dashboards are built, while the actual business continues operating in its usual mode, barely participating in the process.

The problem is that effective analytics begins with properly formulated questions. When stakeholders join late or remain on the sidelines altogether, BI starts answering abstract or secondary queries. The data may look correct, reports logically constructed, but using them for real management decisions becomes quite difficult.

Ignoring Change Management

Any implementation of new approaches inevitably faces resistance or misunderstanding from teams. Some employees continue working with familiar schemes, others don’t fully understand how the new system affects their routine work. Without a prepared environment, business analytics easily remains a formal add-on to old processes.

Changes don’t take hold automatically, and if there’s no clear communication, training, and updated rules for data usage, the analytics system doesn’t integrate into daily actions. In such cases, BI exists separately: reports are available, but they don’t affect anything.

Focus on Technology Instead of People

When a BI project’s focus centers only on tools, a gap quickly emerges between the system and users. Data appears overloaded, the interface complicated, and the logic of metric formation remains understandable only to a narrow circle of specialists. In such situations, analytics becomes a closed expert zone.

BI’s value is determined by its ability to support daily management decisions. If it’s difficult for users to understand what exactly the numbers show and how to react to them, the system doesn’t embed into work processes. Analytics tools must be designed with the real needs of the people using them in mind.

Weak Communication and Lack of Collaboration

Effective business analytics implementation requires coordinated work between teams. When each department moves in its own direction with its own versions of reports, the analytics picture starts to fall apart.

The situation becomes more complicated when there’s no common understanding of key metrics in the company: the same indicator can be interpreted differently depending on the department, which undermines trust in the data and makes analytics unusable. Without a unified vision of the numbers, business analytics may only look convincing, but actually reinforces the confusion even more.

Insufficient Budget and Resource Shortage

BI is often underestimated, though it’s deep work with data at all levels. And when a company expects to manage in a few weeks with one person’s efforts, the result is usually predictably poor.

Such projects may look quite functional at the start: data gets pulled, dashboards open, something even gets used. But as soon as a more complex request appears or the load increases, the system starts falling apart.

Underfunded BI projects can be compared to a house built with cheap materials: it looks acceptable until it starts cracking from all sides during the first storm.

Quick Launch Without Proper Planning

There’s a temptation to start with something and figure it out along the way, but such a start rarely leads to a working result.

When there’s no holistic data model, understanding of future users, and map of dependencies between metrics, the system can’t withstand development. The slightest changes quickly break the logic of reports, and any complication turns into manual edits. Obviously, under such conditions, BI doesn’t scale and gradually loses value.

Warning Signs: How to Know Your BI Project Is at Risk

Most BI projects lose value slowly, but the first signals can usually be seen before the project is recognized as problematic.

For example, new reports are regularly created but rarely used in real conditions. In other words, analytics exists but doesn’t influence actions. This often means BI has detached from the business context and started living its own life.

Another signal is constant disputes about numbers. If different teams get different values for the same metrics, there’s no trust in the system. Under such conditions, BI stops being a reliable source of truth and becomes a subject of discussion.

It’s also worth being concerned if every new request requires manual refinements or temporary solutions. This indicates that the basic data model doesn’t support scaling, and migration has only transferred old problems to a new platform.

Finally, a serious indicator is declining interest from leadership. When business analytics stops being the foundation for strategic plans and is only used operationally.

BI that changes nothing can be compared to a painting in the office that’s already blended into the interior. Formally it exists, it was once chosen, paid for, and people even argued about the frame color. Then they got used to it, stopped noticing it, and all it does now is collect dust.

What the 10% Who Succeeded Look Like: Key BI Success Factors

A BI project can’t survive on intuition or enthusiasm alone. If it worked—it means the company did a number of fundamentally right things. And interestingly, most of them have nothing to do with technology.

Here are four factors that can be considered business analytics best practices:

1. Strong Leadership and Clear Management

Successful BI projects always have one or several owners who don’t delegate absolutely everything to the IT department, but clearly articulate why all this is being launched and keep the project in focus not only at the start, but daily.

This is personal responsibility for success. Where BI is a leadership priority, it survives and develops. And where it’s released for implementation without control, the project slowly stops, even if it formally continues to exist.

2. Flexible, Iterative Approach

Problems with BI often start with the desire to cover everything at once. The system is designed as a large universal solution that should answer all business questions. In reality, this almost always leads to extended timelines and loss of focus before the first tangible result.

Projects that survive move differently. They start with one specific scenario—where something doesn’t add up, money is being lost, or there’s no transparency.

This approach gives a quick and noticeable effect. Teams see that the system works, skepticism gradually disappears. And only after this do they start expanding BI—carefully, step by step, without breaking what’s already working. These iterations create the foundation for scaling, not the other way around.

3. Focus on Quick Wins

If the first tangible benefit from BI appears only after a year, the moment is already lost. During this time, interest fades, and the system starts being perceived as another prolonged project without a clear effect. Teams where BI takes root act differently: they show the first result within the first 30-60 days.

Of course, we’re not talking about a full-fledged system or coverage of all processes. One specific shift is enough that removes manual work, clarifies a metric, or simplifies a daily action. At this moment, the key sense of benefit appears. People see that analytics works and start asking new questions themselves.

4. Constant Measurement and Correction

Successful business analytics constantly changes along with the business: it refines, adjusts, corrects its own mistakes. What was useful a month ago may lose relevance today, and this is a normal state for an analytics system.

Analytics is regularly tested in practice. Teams return to users, look at what’s actually being used and what’s being ignored, review metrics and remove everything unnecessary. When processes change or new priorities appear—the data model is adjusted.

It’s also important that attention is directed not only at business metrics but also at the system itself. If BI stops updating, slows down, or loses trust, it becomes noticeable immediately. It’s precisely this constant feedback that allows analytics to remain part of operational work.

How Not to Repeat Others’ Mistakes: Step-by-Step Actions

There’s no magic button for making BI perfect. But there is a clear sequence of decisions that helps overcome key business analytics challenges.

Step 1. Define a Specific Business Problem

BI should start with a clear request. Understand a specific loss, blind spot, or inefficiency. One problem—one BI scenario—one real change.

Step 2. Assign Someone Responsible from the Business Side

The project must have an owner who has influence over the team and understands why BI is being launched.

Step 3. Build an MVP Around One Micro-Task

The first working case should appear quickly, preferably within 30 days. This can be one action or metric that becomes simpler or faster. This is the first victory, after which trust is born.

Step 4. Involve End Users Before Launch

Users must be part of the process; otherwise, there’s a high risk of getting dashboards that aren’t used.

Step 5. Define How BI Will Change Behavior

Every report should have a practical continuation and answer the question of what exactly is now done differently. If this doesn’t exist, the report has no value.

Step 6. Set Up Feedback and Adaptation

Launch is the beginning, not the finale. Regular review of what works and what doesn’t allows business analytics to remain alive and useful.

Case Studies: From Analytics Failures to Success

Let’s look at real examples. What results does business analytics deliver when it’s properly integrated into business processes?

Coca-Cola Bottling Company: Data Organization and Actionable Decisions

The company operates in an environment where delays quickly turn into losses. Production, logistics, inventory, and sales are distributed across regions, and decisions need to be made based on the current situation, not outdated reports.

Before implementing business analytics, Coca-Cola relied on manual reporting and spreadsheets. Data came from different systems, updated with delays, and didn’t provide a complete picture. Problems in production or deliveries became noticeable only after they affected results, and planning couldn’t keep up with demand changes.

The analytics system allowed them to collect key data into a single system and move from static reports to real-time metrics. Managers got direct access to information without constant dependence on IT.

As a result, the company reduced response time, made planning more accurate, and increased operational stability. BI stopped being a reporting tool and became part of daily operational work.

Business analytics provides the greatest value when it’s embedded in processes and helps act here and now, rather than just explaining what’s already happened.

How NYSHEX Accelerated Decisions Through BI

New York Shipping Exchange operates in international shipping, where speed of access to information directly impacts business efficiency. In 2019, the company grew rapidly, and with it, the problem of working with data became acute.

At that time, analytics was slow and closed. Data from the product and cloud services was manually consolidated in Excel, and most requests fell to the engineering team. Information existed, but access to it was limited, which slowed down decision-making.

The response was implementing BI with a focus on accessibility: data was centralized, and the analytics tool was made convenient for employees without a technical background. Teams gained the ability to independently work with metrics and quickly find answers to their questions.

As a result, data stopped being a resource for a narrow circle of specialists. Decisions started being made faster, and the engineering team could focus on product development. BI became the foundation of the company’s operational speed.

Business analytics has the greatest effect when it removes barriers between data and people and becomes a tool for the entire team’s daily work.

Starbucks: BI for Understanding the Customer

Starbucks has long perceived business analytics as part of daily decisions. Even choosing a location for a new coffee shop isn’t based on intuition here: the company analyzes demographics, population density, average income levels, traffic flows, proximity to public transportation, and types of businesses nearby. All this to understand whether a location truly has potential.

But BI at Starbucks doesn’t only work at the strategic decision level. Although the brand’s main menu is standardized, local offerings and marketing campaigns differ significantly depending on the region. During heat waves in Memphis, the company launched promotions with cold drinks, and in areas with higher alcohol consumption, it tested the Starbucks Evenings format, adapting to specific community habits.

The loyalty program plays a key role. Data about customer behavior allows them to predict when exactly a person is most likely to buy a drink and offer personalized offers at the right moment. As a result, BI creates the feeling that the brand senses the customer and responds to their needs on time.

American Express: Deep Understanding of Behavior Through Data

AMEX operates in a different industry but uses BI to better know its customer. Thanks to a closed payment system, the company receives data from both businesses and cardholders. This provides a unique, holistic view of exactly how purchases occur and how consumer behavior changes.

This analytics is used not only for financial control or fraud detection. BI is at the foundation of personalized privilege programs, where offers are formed taking into account the habits, interests, and spending style of the customer. AMEX goes even further, recommending restaurants, events, and services that are highly likely to interest a specific person.

BI plays a separate role in digital marketing. American Express was able to significantly increase customer engagement through online channels, reducing dependence on expensive offline campaigns. Data allowed them to more accurately target audiences, optimize costs, and simultaneously improve customer experience.

Get an Expert Assessment of Your BI Project

As you can see from the article, most BI projects go through the same problems; not everyone just manages to notice this in time. It happens that a business analytics system formally works, but at the same time, it’s almost never used in daily work. Not because the wrong tool was chosen, but because of how analytics is embedded in processes and what it’s actually used for.

In such situations, a new implementation or complete overhaul isn’t always needed. Often it’s enough to figure out what’s useful in the system and where it creates unnecessary complexity. And what changes can give a noticeable effect in a specific context.

If you want to understand where to start or what to review in your existing BI, you can get independent feedback by ordering a free workshop from IWIS.