Demystifying BI For Mid-Market Enterprises
- 2. • 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
- 3. Today’sTopics. Understanding Business Intelligence How BI is Evolving Insights from Experience of BI Implementations Implementing BI in Mid-market Enterprises 3
- 4. 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 Theworldisgeneratingmoredata,inmoreforms,frommore sourcesthaneverbefore.
- 5. Theplethoraofdataprovideschallengesaswellas opportunities. 20 Hours 24 Peta- bytes 50 Million 700 Billion 1.3 Exabyte 72.9 Items 2.9 Million 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
- 6. Instabilityintheglobaleconomyisincreasingdemandfor actionableinsightsfromthevaststoresofdata. 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
- 7. Single version of the truth Actionable decisions based on facts Reducing staff turnover Servicing customers on time Informing sales opportunities BusinessIntelligenceisaboutinsights,nottechnology. Insights based on facts vs. ``hunches`` Near real- time decision making Understanding BI
- 8. Organizationslargeandsmallarealreadycreatingbusinessvalue throughinsightsfromthisdata. 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 Preferences Analytics Revenue increase from $5million in 1999 to $1.7billion in 2009 Marriott Hotels Revenue Management 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
- 9. 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
- 10. BusinessIntelligenceisaboutinsights. 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. 11 Businessintelligenceisbothasetofprocessesandtechnologies aimedatimprovingstrategicandoperationaldecisionmakingby leveragingenterprisedata. 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
- 12. ABIcapabilityconsistsofseverallayers. 12 & 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 & Payments Products Customer Information System Sales Questions Key Questions: • What, Who, Where • When, How Much?
- 13. BIisNOT... 13 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?
- 14. Today’sTopics. Understanding Business Intelligence How BI is Evolving Insights from Experience of BI Implementations Implementing BI in Mid-market Enterprises 14
- 15. Ad-hocanalyticswasoncethedomainofspecialists,butnew toolshavemadeitmoreaccessibletoeveryoneelse. “… 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
- 16. BIcanbedeployedfasterandeasierthanever,thankstoBI appliancesandSaaSoptions. 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 IBM SAS SAP QlikView Birst 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
- 17. Mobileaccessinthebusinessworldisfuellingourappetitefor BIinsight. 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
- 18. HowwemeasuresuccessofBI implementationshaschanged. 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
- 19. Today’sTopics. Understanding Business Intelligence How BI is Evolving Insights from Experience of BI Implementations Implementing BI in Mid-market Enterprises 19
- 20. Smallandmid-sizedorganizationsfacedifferentchallenges thantheirlargercounterparts. • 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
- 21. SMEs’needscanoftenbeaddressedbysimplerBIsolutions. SME BI Vendor Landscape Range of investment: $50,000 to $300,00 for similar implementation scenarios Insights from BI Implementations
- 23. Source: Info-Tech Research Group N = 41 BIsuccessisdirectlyrelatedtothequalityoftheunderlying 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
- 24. Source: Info-Tech Research Group N = 41 BIneedshumancapitaltoconverttechnologyandopportunity costsintoinsightsandaction. 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
- 25. BIsuccessisdirectlyrelatedtothequalityofBIdistribution outsideoftheBIsystem. BI DistributionLow Low High High B I S u c c e s s Source: Info-Tech Research Group N = 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
- 26. Today’sTopics. Understanding Business Intelligence How BI is Evolving Insights from Experience of BI Implementations Implementing BI in Mid-market Enterprises 29
- 27. TheInfo-TechBusinessIntelligenceRoadmap. Business Intelligence Strategy BI Solution Selection Optimizing BI Implementing BI
- 28. TheInfo-TechBusinessIntelligenceRoadmap. 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
- 29. Assessyourorganization’sBImaturity–setyourobjectives appropriately. 32 Answer Improvement Needed 1 Other 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 Answer Areas for Improvement 5 The 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 9 The organization is attempting to embed BI as a component of regular work programs and business processes. Agree Answer Areas for Improvement 10 End users understand the value of BI and consider it an integral part of their ability to perform their jobs. Disagree 11 Management views information based or analytical approaches to decision making as critical to business success. Agree Answer Areas for Improvement 12 Repeatable 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 29 Processes are in place for metadata management to assist users with understanding how data applies to the business. Agree 30 Sufficient staff are in place to implement, support, and maintain any new BI deployments. Agree Answer Areas 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 33 IT follows up with end users after the initial deployment to ensure end users are satisfied with the BI tool. Agree Answer Areas 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 36 Planning for BI is a collaborative effort that is driven by the business and supported by IT. Strongly Disagree Answer Areas 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 39 The 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 42 We 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
- 30. 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 TheInfo-TechBusinessIntelligenceRoadmap. 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
- 31. Developafive-stepselectionstrategythataddressesbusiness& technologyrequirements,endusertraits,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
- 32. 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 TheInfo-TechBusinessIntelligenceRoadmap. 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
- 33. OptimizeaBIprograminthreeways:extendreach,enhance information&decreasethecosttoserve. 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
- 34. • 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 Keytakeaways. Implementing BI
- 36. Traditional Approach Cost Effective Alternative Reporting and Analysis Dedicated tools for basis reporting, analysis, dash-boarding Approx. $500 per seat Use existing Microsoft Excel features -Pivot tables -Data visualization Approx. $229 per seat Data Mining and OLAP Specialized, dedicated tools for multi-dimensional analysis and data mining Approx. $800 per named user Existing SQL Server Analysis Services: - OLAP -Data Mining Approx. $6,000 per processor BI Suites COTS packages, IBM Cognos, Oracle, QlikView, Microstrategy Approx. $100k to $500k Use Open source software -Pentaho -JasperSoft Approx. $10k to $15k per year Data Warehousing Customized data warehouse Price: 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
- 37. SMEs’needscanoftenbeaddressedbysimplerBI solutions. SME BI Vendor Landscape Value for Investment (Relative to Price Point) Range of investment: $50,000 to $300,00 for similar implementation scenarios Insights from BI Implementations