Choosing BI Platforms
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Choosing BI Platforms

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  • Did I miss anything here?
  • Fallacy of integration (e.g. ERPLink for MS and BOBJ on SAP)
  • Not good for MS
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Choosing BI Platforms Choosing BI Platforms Presentation Transcript

  • Choosing Business Intelligence Platforms
    Prepared For The:
    Microsoft Business Intelligence User Group of New York City
    Scott Stein
    scott.stein@insightspi.com
    +1 (609) 937-6107
    June 2011
  • How Do Companies Choose BI Platforms?
    • Features/Functionality
    • Cost
    • Vendor Roadmap
    • Incumbency & Vendor/Customer Relationships
    • Alignment With IT Strategy
    • Business Solutions
    • The MS Business Case
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Incumbency & Vendor Relationships
    Alignment With IT Strategy
    Business Solutions
    The Business Case for MS
    • MS does well when leading with analytics
    • AS is a superior mix of scalability and analytical functionality
    • Competitors do well at the “high end”
    • Advanced Visualizations
    • Data mining
    • “Big data”
    • Data quality
    • Features/functionality no longer a big factor in BI platform decisions
    • All BI vendors are comparable
    • There are no weak vendors any more
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Roadmap
    Incumbency & Vendor Relationships
    Alignment With IT Strategy
    Business Solutions
    The Business Case for MS
    Cost
    • Current economic climate requires minimal “time to value”
    • Doing more with less
    • Companies looking for quick wins (3 months) w/tangible results
    • Mandate to deliver projects that drive immediate bottom-line results i.e. this fiscal year
    • “Defend the Spend” with Self-funding incremental ROI
    • Focus back on Departmental BI
    • The rise of Self-Service BI
    • MS platform ~1/5 cost of competitors
    • Many already own it i.e. SQL Server, SharePoint, Office
    • MS TCO
    • Less complexity in implementation
    • 1 to 4 ratio of implementation man-hours compared to Hyperion, Cognos, OBIEE, others
    • M&S costs ranging from 15% to 25% of the license fee annually
    • Microsoft BI skills investment are ‘incremental’ to most organizations
    • MS “low-cost” plays well for…
    • Cost-constrained industries e.g. retail, healthcare
    • BI ‘re-starts’ or second surgery
    • When competing vendors enforce pricing changes
  • Case Studies:Investment Optimization & Analysis
    • Challenges
    • Couldn’t easily analyze impact of investment/discretionary spend on income statement & balance sheet
    • Financial and customer transaction data in disparate systems
    • Hyperion Planning/BI systems were
    • too rigid
    • took years and many millions to deliver
    • weren’t likely to rip and replace
    • …however didn’t want to invest more
    • Oracle was offering expensive data “connectors” requiring constant customizations and extensive config/dev
    • Solution
    • Owned SQL Server & minimal incremental cost for SharePoint
    • Implemented MS BI solution
    • Extract and integrate financials and customer data,in weeks, not many months
    • Designed models than plan/analyze their discretionary spend and enable investment optimization across the business
    • Used across 40+ American Expressbusiness segments
    • Has enabled the reallocation of tens of millions of dollars within and across the company
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Incumbency & Vendor Relationships
    Alignment With IT Strategy
    Business Solutions
    The Business Case for MS
    ?
  • How Do Companies Choose BI Platforms?
    Vendors & Their Users in a Recessionary World
    • Creative financing deals from vendors
    • Maintenance revenue is increasingly important for vendors
    • Pricing pressures and bundling
    • Infrastructure-light BI will benefit
    • Users will look at what they already have
    • Open source and SaaS will get a push
    • Repurposing of BI: Focus on the bottom line
    • Uncertain users investing tactically
    • Negotiating power is high (for customer) during initial acquisition; low for subsequent transactions
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Alignment With IT Strategy
    Business Solutions
    The Business Case for MS
    Incumbency & Vendor Relationships
    • Typically Bad for MS if the business drives the decisions
    • Oracle/Hyperion and IBM/Cognos have strong relationships with Finance
    • SAP/Oracle have strong industry relationships
    • ERP Vendors are now BI Vendors e.g. SAP, Oracle
    • “Own” the data
    • Selling BI into their install base
    • Interoperability of a vendor’s product lines should not be assumed
    • Align with customers’ vendor consolidation strategy
    • Typically good for MS if IT drives the decisions
    • IBM/Cognos is there too
    • Ubiquity of SharePoint in the enterprise
    • Significantly decrease barriers to entry
    • As long as they own it
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Incumbency & Vendor Relationships
    Business Solutions
    The Business Case for MS
    Alignment With IT Strategy
    “Typical” Organizational View of BI/PM . . .
    “Typical” Global 2000 Company
    Reporting: Crystal
    Reporting: Crystal
    Scorecarding: Excelsius
    OLAP:Cognos
    Data Mining: SAS
    Excel Hell!!
    Forecasting: Hyperion
    Reporting: Siebel
    OLAP: Oracle
    Reporting: Actuate
    Query: Qlikview
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Incumbency & Vendor Relationships
    Business Solutions
    The Business Case for MS
    Alignment With IT Strategy
    • Standardization historically hasn’t worked
    • Business User Adoption/Rejection
    • Organizations need to focus standardization efforts more on defining the use case (i.e. how the tools should be used and why) and less on stipulating which tools are allowed
    • “More than half of enterprise BI users said they were dissatisfied with IT’s ability to deliver business intelligence functionality” (ComputerWorld, 5/4/2011)
    • Cost prohibitive & high entry barriers for enterprise deployment
    • Requires comprehensive data management strategies
    • MS vision for PERVASIVE BI
    • Increase BI usage from 20% to 80% in the enterprise
    • BI as a “feature”, not a specialization
    • Convergence of BI w/collaboration, search, content management
    • Address user adoption issues w/familiar tools i.e. Excel & SharePoint
    • Cost is no longer a barrier to entry
    • …still need to fill some gaps e.g. metadata, tool integration
  • Case Studies:Program Performance Management
    • Challenges
    • IT “standardized” on IBM/Cognos
    • Low business adoption
    • Unnecessary complexity i.e. overkill
    • Dependence on IT support
    • Low perceived ROI
    • Consequently, using “Clipboard” approach to program management
    • Unable to adequately sense & respond to Program issues
    • “Brute force” stovepipe management of financials, technical metrics and resource planning
    • Solution
    • Needed something between “clipboard” and “IT standard”
    • Low-cost scalable solution
    • Integrate with existing program rhythm
    • Provide visibility and enable program optimization
    • Already owned SQL Server & SharePoint
    • Rapid user adoption with familiar tools e.g. Excel
    • SharePoint dashboards + SQL Server MSAS + SQL ServerMSIS for data integration
    • Extendable across the org, planned for implementation as “single view” of Program metrics
  • How Do Companies Choose BI Platforms?
    Other MS negative IT perceptions . . .
    • Low-cost = “cheap”
    • Still new to BI
    • Emotional IT bigotry
    • The usual suspects…scalability and security
  • How Do Companies Choose BI Platforms?
    Role of SharePoint in MS BI decisions . . .
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Incumbency & Vendor Relationships
    Alignment With IT Strategy
    The Business Case for MS
    Business Solutions
    • Microsoft has a weak sales model for business solutions
    • Focus on IT, not BDMs
    • Need to shift conversations away from pure technology
    • Competitors out-spend MS, invest in sales cycle
    • Perception around competitor’s industry and functional solutions
    • Demo-ware positioned as industry “templates”, data models and “accelerators”
    • Finance/CFO often drive BI decisions with Performance Management
    • MS doesn’t sell to finance
    • PPS Planning failure
    • MS partner eco-system can be very effective
    • Planning/budgeting vendors like Tagetik, Prophix, SAP BPC (OutlookSoft)
    • Industry solutions & functional expertise
    • Departmental BI i.e. Shadow IT
    • Self-Service
    • QlikViewis user-friendly with mature feature tools and visualization
    • Mega-vendors following, Tableau is getting there
    • PowerPivotcatching up (but require upgrades, compatibility)
    • Creates huge data governance/management challenges for IT
    • Cloud/Hosted opportunities, particularly for industries with lots of data sources
  • Case Studies:Financial Analysis & Reporting
    • Challenges
    • Recently merged west coast and east coast companies
    • 2 financial transaction systems
    • Thousands of financial reports
    • Manual process for planning, budgeting, forecasting did not scale
    • Catch-22
    • Finance rejected IT ‘standards’ andwould not give up Excel for reporting
    • IT could not provide timely data access without enforcing standards
    • Solution
    • Robust integrated reporting and analysis
    • MS Integration Services + SME for data integration and data warehousing
    • Excel-based tools (SAP BPC e.g. OutlookSoft) for Planning/Budgeting
    • Integrated with dynamic reporting toolset
    • One version of the truth across the business
    • Aligned Business & IT Goals for flexibility, timeliness and standards-based approach
    • Linked corporate strategy to operational performance
    • Provided platform to plan/manage/analyze the business
    • Architecture enables other data sources to analyze profitability and productivity
  • How Do Companies Choose BI Platforms?
    Features / Fuctionality
    Cost
    Roadmap
    Incumbency & Vendor Relationships
    Alignment With IT Strategy
    Business Solutions
    The Business Case for MS
    • The current landscape for BI software vendors
    • Comes with high cost, high complexity and relatively long delivery and time-to-value
    • Targeted at a small set of users across the organization
    • Most are more sophisticated than Microsoft in their sales motions w/customers
    • Mega-vendors are already entrenched with their customers e.g. ERP
    • MS BI platform lowers barriers to entry & risk
    • Pricing and TCO is massively better than competition
    • Increase user adoption (#1 success driver and reason for BI project failures) with delivery of powerful solutions through familiar tools used in every-day business processes i.e. Office (the #1 business tool) and SharePoint
    • Incremental ROI i.e. quick time-to-value solutions and not “big bang” high-cost high-risk long timeframes like many competitive solutions
    • Robust third party ‘eco-system’ to round out MS solutions for specific functional areas of the org and specific industries
  • How Do Companies Choose BI Platforms?
    Questions?…Comments?
    Scott Stein
    scott.stein@insightspi.com
    +1 (609) 937-6107