Demystifying BI For Mid-Market Enterprises

September 7, 2011

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

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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

3

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

Google

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.

8

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

0

1

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

11

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.


How BI is Evolving



14

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.


How BI is Evolving



19

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


BI for the Budget Conscious Enterprise.

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.



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.


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


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


Today’s Topics.


How BI is Evolving



29

The Info-Tech Business Intelligence Roadmap.

Business Intelligence Strategy

BI Solution Selection

Optimizing BI

Implementing BI


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


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




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


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




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

Questions?

Thank you for your participation.

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

SMEs’ needs can often be addressed by simpler BI solutions.

SME BI Vendor Landscape Value for Investment(Relative to Price Point)

Range of investment: $50,000 to $300,00 for similar implementation scenarios


Demystifying BI For Mid-Market Enterprises

Data & Analytics

explosion of data

minute data

gigabytes of data

world of data

month data

understanding bi

audio unstructured data

new data growth