Demystifying BI For Mid-Market Enterprises
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Transcript of Demystifying BI For Mid-Market Enterprises
• Info-Tech Research Group- Practical IT Research and advice for:
» Small and mid-market enterprises» Broader public sector» Technology leaders in large organizations
- Syndicated and Custom Research» 20,000 surveys and interviews conducted» Buyer and ecosystem behaviour
- Demand generation and lead nurturing» Licensed content» Custom campaigns
Presenter • Jamal S. Shah
Managing Director
Info-Tech Indaba
Who We Are
Today’s Topics.
Understanding Business Intelligence
How BI is Evolving
Insights from Experience of BI Implementations
Implementing BI in Mid-market Enterprises
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4
More Variety
• 500 billion gigabytes of data on the internet
• World's digital content equivalent to stack of books
stretching from Earth to Pluto 10 times
• 80% of new data growth is unstructured content:
email, documents, images, video and audio
• Unstructured data doubles every three months
• Automated transfer of instrumented data
• Smart meters, utilities, parking, traffic transponders
• Medical devices, operational instruments, telemetry,
sensors, mobile devices
An Explosion of Data
More Sources
More Data
The world is generating more data, in more forms, from more
sources than ever before.
The plethora of data provides challenges as well as
opportunities.
20Hours
24Peta-bytes
50Million
700Billion
1.3Exabyte
72.9Items
2.9Million
Number of Emails Sent
Every Second
Video Uploads to
YouTube Every Minute
Data Per Day Processed By
Tweets Per Day
Minutes Spent On Face-book
Each Month
Data Sent And Received
By Mobile Internet
Users
Products Ordered On Amazon Per
Second
The World of DATA
Instability in the global economy is increasing demand for
actionable insights from the vast stores of data.
Supplier pricing is less stable
Customer buying behavior is in flux
Competition from a wider variety of sources
Margins are shrinking
Foreign Exchange rates are affecting
profitsShareholder sentiment not always based on business
fundamentals
Social network sentiment can shift
overnight
Logical security is under attack
BA/BI
There is increasing pressure and opportunity to use Business Analytics / Intelligence to gain those insights and provide competitive advantage
Understanding BI
Single version of the truth
Actionable decisions based on facts
Reducing staff turnover
Servicing customers on
time
Informing sales
opportunities
Business Intelligence is about insights, not technology.
Insights based on facts vs.
``hunches``
Near real-time decision
making
Understanding BI
Organizations large and small are already creating business value
through insights from this data.
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Organization Distinctive Capability
Value Delivered
Macy’s Going Local $1bn revenue impact?
Harrah’s Casinos Customer and Loyalty Service
Increased market share from 36% to 43% between 1998 to 2004
Netflix Customer PreferencesAnalytics
Revenue increase from $5million in 1999 to $1.7billion in 2009
Marriott Hotels RevenueManagement
Actual revenue as percent of optimal rates increased from 83% to 91%
Blue Mountain Resort
Supply Chain and Yield Management
1,822% ROI by eliminating excess inventory, improved reporting, more strategic pricing decisions
Understanding BI
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2
3
4
5
6
9:00 AM 11:24 AM 1:48 PM 4:12 PM 6:36 PM 9:00 PM
Retail traffic during summer hours
# of shoppers
Data:
Weekly Avg.
Information:Insights:
Understanding BI
Business Intelligence is about insights.
Effort manual effort required
Role displays database content
Data Currency static
Data Quality bring your own rigor
Confidence the value ‘seems’ obvious
Scope point in time
Intent informational content
InsightData
Understanding BI
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Business intelligence is both a set of processes and technologies aimed at improving strategic and operational decision making by leveraging enterprise data.
What is BI?
A process ...involving the consolidation, analysis, and
communication of business information to assist business decision making.
A technology ...which consists of a variety of tools that automate data consolidation, analysis, and the presentation of business information to end users.
BI is the ability to understand the relationships between different aspects of
your company so that you can guide the company
toward specific goals
A BI capability consists of several layers.
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& Insights
Information
Extraction &
Visualization
Data Transformation,
Cleansing & Loading
Data Mapping
Reporting & QueriesSpreadsheets
ETL(Extract, Transform & Load)
• OLAP Servers
• Data Marts
• Customized Data Warehouse
Dashboards &
Scorecards
Complex
Resource Heavy
Simple
Resource Light
EPM & BI
Suites
Data Mining, Modelling, Prediction, Visualization Tools
• Actionable Information• Cause and effect• Impact
What is BI?
Customer Orders
Invoicing &
PaymentsProducts
Customer Information
SystemSales
Questions Key Questions:• What, Who, Where• When, How Much?
BI is NOT ...
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A Source of Business Information
Reporting Alone
Content Intelligence (CI)
• BI tools do not create their own raw data
• They collect and work with data generated by other enterprise systems
• Tools must contribute toward business decision making
• Without strategic intent, a tool is just a tool, not BI
• BI works with standardized structured data
• CI tools provide insight into unstructured data
What is BI?
Today’s Topics.
Understanding Business Intelligence
How BI is Evolving
Insights from Experience of BI Implementations
Implementing BI in Mid-market Enterprises
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Ad-hoc analytics was once the domain of specialists, but new
tools have made it more accessible to everyone else.
“… not many executives are information-literate. They know how to get data. But most still have to learn how to use data.”
- Peter Drucker, 1992
More Flexible Data Access
Browser Interactive Solutions
Microsoft Drives Low Cost Analytics
IBM’s Analytics Quotient
How BI is Evolving
BI can be deployed faster and easier than ever, thanks to BI
appliances and SaaS options.
Appliances SaaS BI
- BI delivered via Software-as-a-Service (SaaS) and Data-as-a-Service (DaaS)
-Reduced capital cost requirements
-Compressed deployment timelines
-Faster to Implement
IBMSASSAP
QlikViewBirst
Jaspersoft
- Preconfigured hardware, data warehouse, and software bundles
that reduce BI deployment costs and timelines
IB WebFOCUS + Terradata
HP / Microsoft BI -SQL Server, SharePoint
IBM Netezza include petabyte-scale options
SAP – BI Accelerator
How BI is Evolving
Mobile access in the business world is fuelling our appetite for
BI insight.
RoambiPushBI
Transfer of static data to mobile device enables consumption through easy to use multi-touch UI’s.
Enterprise solutions are enabled via server connectivity for on-demand data refresh.
How BI is Evolving
How we measure success of BI implementations has changed.
BI technologies and practices have matured in recent years. Rather
than trying to force adoption, businesses are focusing on the
underlying drivers: Data Quality, Staffing, and Distribution
Two years ago, BI success came from a vague notion of adoption
Today, the success of BI is measured by how well it drives
decision-making
How BI is Evolving
Business Insights
Today’s Topics.
Understanding Business Intelligence
How BI is Evolving
Insights from Experience of BI Implementations
Implementing BI in Mid-market Enterprises
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Small and mid-sized organizations face different challenges
than their larger counterparts.
• Limited IT resources
• None or few dedicated business analysts
• Complex and expensive stack solutions out of range
• Multiple un-integrated data sources
Cost Effective: Self-service reporting Data visualization Data management ETL / Data integration Granular security Facilitated data management “Leading practice” processes Less complexity
Mid-Market Organization Challenges Mid-Market BI Needs
Insights from BI Implementations
SMEs’ needs can often be addressed by simpler BI solutions.
SME BI Vendor Landscape
Range of investment: $50,000 to $300,00 for similar implementation scenarios
Insights from BI Implementations
Source: Info-Tech Research GroupN = 41
BI success is directly related to the quality of the underlying
data.
BI Data Quality is a lack of:
• Data conflicts
• Data duplication
• Outdated data
• Incomplete data
• Inaccurate data.
Overall Data QualityLow
Low
High
High
B
I
S
u
c
c
e
s
s
BI initiatives depend on reliable, consistent, and current data to be successful
BI initiatives depend on reliable, consistent, and current data to be successful. If your data is de-centralized, incorporate Data Integration into your near-term BI plans.
Insights from BI Implementations
Source: Info-Tech Research GroupN = 41
BI needs human capital to convert technology and opportunity
costs into insights and action.
Formal assignment of responsibility for:
• BI help
• Training
• Report development
• Analytics consulting
• Executive accountability
• “Virtual BI Competency Centre”
The BI Competency Centre (BICC) provides a critical link between corporate strategy and BI, end-user support for data and tools-related questions, ad-hoc report development, analytics support, training, and Data Quality leadership.
Insights from BI Implementations
BI success is directly related to the quality of BI distribution
outside of the BI system.
BI DistributionLow
Low
High
High
B
I
S
u
c
c
e
s
s
Source: Info-Tech Research GroupN = 41
BI Distribution is the delivery of BI via email, mobile devices, web browsers, and integration with core transactional systems.
Distribution channels for BI:• Integrated into CRM, ERP, etc. to
provide decision support with prescriptive and directive insights
• Delivered via Email, either on a schedule or when triggered by business events.
• Available as self-serve reporting and analytics through a web browser.
• Accessible at any time on smart phones and tablets
Insights from BI Implementations
Today’s Topics.
Understanding Business Intelligence
How BI is Evolving
Insights from Experience of BI Implementations
Implementing BI in Mid-market Enterprises
29
The Info-Tech Business Intelligence Roadmap.
Business Intelligence Strategy
BI Solution Selection
Optimizing BI
Implementing BI
The Info-Tech Business Intelligence Roadmap.
Business Intelligence
Strategy
Develop Your BI Strategy
Focus on the biggest and highest value opportunities Identify the questions you will want answers to Understand how embedded insights will drive actions and deliver value Create a roadmap for building and enhancing your BI capabilities
Implementing BI
Assess your organization’s BI maturity – set your objectives
appropriately.
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AnswerImprovement
Needed
1Other business units (or lines of business) are requesting access to the BI toolset and
applications. Strongly Agree
3 The number of requests for ad hoc access to BI reporting tools is increasing.Agree
4 The number of requests for BI application projects for work programs is increasing.Agree
AnswerAreas for
Improvement
5The business intelligence program has a dedicated (continuous) budget/financing for
infrastructure and support. Strongly Disagree
6 Senior management has a vision for the future of BI in the organization.Disagree
7 Senior management views BI as key to meeting future enterprise goals.Disagree
8 The CEO and executive body understand BI and the business benefits it can bring.Agree
9The organization is attempting to embed BI as a component of regular work programs
and business processes. Agree
AnswerAreas for
Improvement
10End users understand the value of BI and consider it an integral part of their ability to
perform their jobs. Disagree
11Management views information based or analytical approaches to decision making as
critical to business success. Agree
AnswerAreas for
Improvement
12Repeatable processes are in place in the functional areas that have been targeted for
BI support. Agree
Fill in the Yellow Fields with "Strongly Agree," "Agree," "Disagree," or "Strongly Disagree" from the drop down menus. The tool will
automatically calculate your readiness score. Below, follow the Health Diagnosis analysis that corresponds with your score.
Process Maturity
BI Health Check
Demand for BI
Commitment to BI
Culture/Attitude Toward BI
29Processes are in place for metadata management to assist users with understanding
how data applies to the business. Agree
30Sufficient staff are in place to implement, support, and maintain any new BI
deployments. Agree
AnswerAreas for
Improvement
31 End users are involved in the planning process for new deployments.Agree
32 User acceptance testing is done prior to each major rollout.Agree
33IT follows up with end users after the initial deployment to ensure end users are
satisfied with the BI tool.Agree
AnswerAreas for
Improvement
34 BI is mentioned in the enterprise’s strategic plan.Disagree
35 The BI program is tightly integrated with business programs and objectives/goals.Disagree
36Planning for BI is a collaborative effort that is driven by the business and supported by
IT. Strongly Disagree
AnswerAreas for
Improvement
37 "Turf wars” over BI ownership have been addressed and rectified.Disagree
38 Data accuracy and integrity procedures have been put in place.Disagree
39The data for new BI report/application requests can normally be found in source
systems. Agree
40 End users trust the quality of the data.Agree
41 Data sources, transformations, and calculations are understood and documented.Disagree
42We have experience integrating data from disparate sources to create cross-
functional business views. Disagree
43 Frequently used reports are generated automatically by the BI system.Disagree
Answer
44 Development efforts for BI aim to create reusable components.Strongly Agree
45 Where possible, agile development techniques are used to deliver new applications.Agree
Application Development
Change Management
Business/IT Alignment
Data Management
3
Score Analysis Score
<0
The enterprise is not in a position to optimize BI at this time. It is likely that the
organization is suffering from a failed initial implementation. Ensure that there is a
commitment to BI in the organization and communicate the benefits of BI to key
stakeholders. Ensure that the business has repeatable and measurable processes in
those business units that are the target of the BI implementation. Establish a vision
for BI but build an incremental and scalable implementation strategy. Start by
improving basic reporting in those areas. Focus on the remaining areas in this
diagnostic that are identified as needing improvement.
Critical Condition
0 - 10
Up until this point, the enterprise's BI program has found some successes but is likely
affected by issues around organizational resistance, such as change management.
The BI toolset may be working as a point solution but is not delivering on its potential
value to other areas of business need. Reevaluate the areas indicated for
improvement in the diagnostic questionnaire. Attempt to leverage previous successes
and communicate those to the business while building a more comprehensive
optimization strategy.
Serious Condition
11 - 34
The enterprise's BI program is in good condition but has some areas that require
attention in order to effectively optimize BI. It is likely that the growth of BI in the
organization has flatlined or is growing slowly. By addressing these issues, the
organization will be able to maximize the value provided by BI investments.
Stable Condition
>35
The enterprise is in an extremely healthy condition with respect to BI optimization.
Continue to look for opportunities to embed BI in regular work programs and transition
the entire organization towards a metrics and analysis business culture.
Healthy
Health Score
Health Diagnosis
Implementing BI
Develop Your BI Strategy
Focus on the biggest and highest value opportunities Identify the questions you will want answers to Understand and embed the insights that will drive actions and deliver value Create a roadmap for building and enhancing your BI capabilities
The Info-Tech Business Intelligence Roadmap.
Business Intelligence Strategy
BI Solution Selection
Midmarket BI Solutions
There is a wide array of less-costly, easier- to-implement BI solutions.
Microsoft’s BI Solution
Many organizations already have pieces of this solution implemented.
Enterprise BI Solutions
Enterprise BI solutions are getting more powerful and easier to use.
Implementing BI
Develop a five-step selection strategy that addresses business &
technology requirements, end user traits, affordability & staff
expertise.
1. Business Requirements
2. End User Considerations
3. Technology Requirements
4. Cost Considerations
5. Expertise
Meet business objectives with a thorough understanding of business processes and pain points.
Match technical and functional capabilities to how analysts will use the tool
Ensure candidate solution will be compatible with existing enterprise applications.
Prioritize features and functionality to match TCO. Out-year and hidden costs often exceed the purchase price
Assess IT staff proficiency and familiarity with available offerings
Implementing BI
Develop Your BI Strategy
Focus on the biggest and highest value opportunities Identify the questions you will want answers to Understand and embed the insights that will drive actions and deliver value Create a roadmap for building and enhancing your BI capabilities
The Info-Tech Business Intelligence Roadmap.
Business Intelligence Strategy
BI Solution Selection
Optimizing BI
Midmarket BI Solutions
There is a wide array of less-costly, easier- to-implement BI solutions.
Microsoft’s BI Solution
Many organizations already have pieces of this solution implemented.
Enterprise BI Solutions
Enterprise BI solutions are getting more powerful and easier to use.
Build a Data Warehouse
Feed the Business Intelligence tools timely and accurate views of the business.
Optimize Your BI
Continued BI success requires governance, leadership, and cost optimization.
Improve Data Quality
Establish a program for sustainable Data Quality to maintain confidence in BI.
Implementing BI
Optimize a BI program in three ways: extend reach, enhance
information & decrease the cost to serve.
An optimized BI program delivers improved functionality to more users at a lower cost
to serve
Three main optimization opportunities:
Increasing the reach of BI
- Make available to more groups/users (BI for the masses)
Enhancing information that is ready for use by improving the functional capabilities available to end users
Reducing the cost of delivering information to end users
Implementing BI
• Business Intelligence is maturing and has become a competitive necessity.
• Insight is the competitive necessity; technology is merely an enabler.
• BI does not need to break the bank:
- Microsoft offers compelling economics if you are already a Microsoft shop
- Less expensive mid-market and open source solutions also offer substantial robust capabilities for mid-market needs
- Identify your core needs and acceptable trade-offs in selection of the right tool set
• Make BI as self-serve oriented as possible to increase adoption rates.
• BI is far more likely to succeed when companies focus on the supporting principles of: Data Quality, Staffing, BI Distribution
Key takeaways.
Implementing BI
Traditional Approach Cost Effective Alternative
Reporting and Analysis
Dedicated tools for basis reporting, analysis, dash-boardingApprox. $500 per seat
Use existing Microsoft Excel features-Pivot tables
-Data visualizationApprox. $229 per seat
Data Mining and OLAP
Specialized, dedicated tools for multi-dimensional analysis and data
miningApprox. $800 per named user
Existing SQL Server Analysis Services:- OLAP
-Data MiningApprox. $6,000 per processor
BI SuitesCOTS packages, IBM Cognos,
Oracle, QlikView, MicrostrategyApprox. $100k to $500k
Use Open source software-Pentaho
-JasperSoftApprox. $10k to $15k per year
Data Warehousing
Customized data warehousePrice: varies greatly depending on implementation; often in $millions
Mid-market data W/H appliance-Netezza
-Sun Microsystems Greenplum-Dataupia
Approx. $20,000 to $50,000