Business Intellignece the Next Generation of Innovation

7/28/2019 Business Intellignece the Next Generation of Innovation

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Business Intelligence: The NextGeneration of Innovation

Kurt Schlegel


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Business Intelligence Applications

Enterprise Applications (ERP, SCM and CRM)

Server and Storage Technologies (Virtualization)

Legacy Application Modernization

Security Technologies

Technical Infrastructure

Networking, Voice and Data Communications (VoIP)

Collaboration Technologies

Document Management

Service-Oriented Technologies (SOA and SOBA)

BI is the Most Important CIO Priority for 3 Years Running

**New question for 2007

To what extent will each of the followingtechnologies be a Top 5 priority for you in 2008?

11.20%

8.02%

8.45%5.79%

8.53%

4.67%

6.83%

7.75%

7.91%

6.71%

2008Increase*

1

2

34

5

6

7

8

9

10

Rank2008

1

2

53

6

8

4

10

9

7

Rank2007

1

**

910

2

12

8

4

**

6

Rank2006

Source: 2008 Gartner Executive Programs CIO Survey, January 10, 2008

2008 CIO Technology Priorities

* Unweighted average budget change


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Key Issues

1. How can BI evolve beyond reporting measuresto making great decisions?

2. How can IT leaders drive broader BI adoption?

3. How can the scope of BI initiatives move fromenterprise to industry wide?


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How to Build a Skyscraper and Why Does It Matter to BI?

Burj Dubai (YE08)Dubai

164 stories

Flatiron (1901)New York22 Stories

Monadnock (1891)Chicago

17 Stories
http://en.wikipedia.org/wiki/Image:Flatiron_crop_20040522_114306_1.jpghttp://upload.wikimedia.org/wikipedia/en/b/be/Burj_Dubai.jpg


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Todays BI Strategy: Urban Sprawl

BI focuses too much on Bottom Up reporting of performance measures. And the measures are not what your CEO or senior managers care about. Projects are built with little governance or alignment with corporate strategy.


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Portfolio of BI and PerformanceManagement Applications Expand

Result: Smarter Decisions

EnterpriseGoals

BusinessFunctions

BusinessProcess

StrategyDriven

Analyst/Management

Driven

ProcessDriven

Start withCorporateStrategy

Align KeyPerformanceIndicators (KPI)at Each Level

Focus on Root

Cause Analysisdown to theprocess level

The BI and Performance Management Continuum: DecisionMaking Becomes a Core Competency


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Key Steps to Evolve BI Beyond ReportingMeasures to Managing Decisions

IT DeliversReports & Dashboards

DecisionMakingas a corecompetency

Business Vision& Sponsorship Data Lineage,

Governance and Quality

CostQuality

Tradeoff Analysis

Linking Planning,Reporting & Analysis

Experimental Design

Cultural Change

Skills Development

New CapabilitiesModeling

Forecasting,Simulation,Optimization


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A Text Book Example: The Oakland As

"Moneyball: The Art of Winning anUnfair Game" written by Michael Lewis

- Account of Billy Bean, manager of theOakland Athletics baseball team

Used BI to manage processes

(e.g., scoring runs) and predictperformance (e.g., games won)

- Used "on base %" instead of "batting average" to draft players

- History showed, in the data, that the old"gut feelings" and adages were wrong

- Focused on avoiding outs instead of advancing the runner a major change to the business process of baseball.

Result: Able to win 90+ games per year withone-third the payroll of the New York Yankees


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Key Issues





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Driving BI Adoption

EmpoweringUsers With BI

Organizational EfficacyRequires the Proper Balance

Optimizing BusinessProcess With BI

BI Continuum

Decide ManageMeasure Optimize InnovateDiscover

Future Scenarios: Wide Ranging From Human- to Machine-Driven

Orchestration Business rules Predictive modeling

Search Visualization Empowerment

Alignment Transparency Collaboration


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Interactive Visualization

Source: Advizor Solutions


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BI Integrated with Search

User Interaction

Style withInformation

Structure, Qualification,Control of Information

Low

High

General toSpecific

AnalysisCentric

BI Content Search

Ad hoc query

ContentAnalytics

Specific toGeneral

Reporting/Dashboards

SearchCentric

Enterprise Search

Explore Data DimensionsAuto- Queries


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Unicredit (HypoVerinsbank AG):Accelerating Decision Processes

Metadata Management

Interface Layer Staging Area OperationalData StoreService -Layer Risk Models Data Marts

Reporting &Analysis

75 sources 370 jobs

127 labels

~ 2,000 columns

55 labels

1,660 columns

10 facts

48 dimensions

120 reports

150 users

operationalsystems

externaldatasources

Extracts

t r a nsfo rm a t i on

validated, integratedhistorical data

modelparameter

multidimensionaldata structure

& reporting views

HTMLPDFCSVXMLXLS

Browser MailFTP

SchedulingAlerting

E/Rmodel

risk & pricingmodels

businessrule engine

businessrules

Load

s t a r

m o d e l 0 20 40 60 80

100

1st 2nd 3rd 4th

Data Modeler ETL

Visual Rules

BI Platform


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Information Buffet: EuroDisney Challenge: Optimize customer satisfaction and reduce expenses Solution: Define KPIs, predict, publish and alert Results: +15% customer satisfaction; Higher staff efficiency Success factors: Distributed decisions aligned with business goals Lessons learned: Cultural change takes years, but it's worth it
http://images.google.com/imgres?imgurl=http://www.skywaysecurity.com/images/point_of_sale_image.jpg&imgrefurl=http://www.skywaysecurity.com/point_of_sale_DVR_integration.cfm&h=275&w=248&sz=12&hl=en&start=3&tbnid=37782U9t0828xM:&tbnh=114&tbnw=103&prev=/images%3Fq%3Dcash%2Bregister%26svnum%3D100%26hl%3Den%26lr%3D%26safe%3Doff%26rls%3Dcom.microsoft:en-US%26sa%3DN


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Key Issues





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Five Major Mutually ReinforcingDiscontinuities

Discontinuities Affect Business Unit Independence Vendor Balance of Power,

Distribution, Marketing andBusiness Models

Implementation Alternatives Rogue End-User Investments Governance, Authority and

Control Budgets Architectural Models

Softwareas a

Service

GlobalClassOpenSource

Web 2.0 Consum-erization


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Understand the Trade-Offs That SaaSPresents

Upsides- Pay for what you use- From an operational budget- Basic functionality that you

really need, not bells andwhistles that you might need

- No operational managementworries

- No infrastructureoverhead/management

- Medium-term lower TCO- Faster implementations- Easier integration*

Downsides- No asset value- Less central management of

the application portfolio- More basic functionality*

- Vendor management (incl.oversight of their operationalmanagement)

- Security concerns- Longer-term TCO

uncertainties- "OP2OD" (On Premise to OnDemand) integration

* Sometimes real, sometimes perceived * Theoretically; particularly of SaaS to SaaSapplications written with open APIs


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BI as a Service (BIaaS Not a Great name)Input: Detailed

data is provided toa trusted info

aggregator

BI CapabilitiesCombined with

Vertically SpecificInformation Servies

Neilsen

IMS

D&B

Thomson Reuters

Google

Catalina Marketing

NPD

IRI

Comscore

LoanPerformance

LexisNexis

Skytide

Output: Enriched

data fed back to DW

Dimensional slicing & dicing


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Thomson Healthcare


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3 Recommendations for 3 Innovations

BI initiatives are overly focused on reportingmeasures.Craft a BI strategy that makes decision making a core

competency across your company.

BI is too hard for 80% of users.- Craft a BI strategy that embraces emerging technologies

and embeds BI into business processes

BI initiatives lack an external perspective- Embrace the combination of BI capabilities and industry

specific information providers

Business Intellignece the Next Generation of Innovation

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