Technology Evaluation CentersHow to Integrate BI and ERP—and Why You Should Do ItJorge García. Sr. AnalystBI and Data Mana...
OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different world...
OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different world...
1. What ERP users want from a BI solutionTechnology Evaluation CentersIt is very common to find that the data to support m...
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersMost ERP users look for BI and Analytics to improve ...
1. What ERP users want from a BI solutionTechnology Evaluation Centers“Concepts and methodologies for improvement of busin...
1. What ERP users want from a BI solutionTechnology Evaluation CentersBI is not just… BI is NOT just reporting BI is NOT...
1. What ERP users want from a BI solutionTechnology Evaluation CentersTransforming information into intelligence: Collect...
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersData andProcessIntegration !!Source: Technology Eval...
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
1. What ERP users want from a BI solutionTechnology Evaluation CentersFood for thought:• 53% of BI implementers cite end u...
OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different world...
2. ERP and BI, an overview of different worldsTechnology Evaluation CentersYou can have data without information, but you ...
2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
2. ERP and BI, an overview of different worldsTechnology Evaluation CentersApplication OperationalERP, CRM, legacy apps, ....
Technology Evaluation Centers2. ERP and BI, an overview of different worlds
Technology Evaluation Centers-Reporting-Dashboarding2. ERP and BI, an overview of different worlds
Technology Evaluation Centers1. Diversity. Data is being generated fromdifferent channels and its nature haschanged.2. Vol...
Technology Evaluation Centers1. Diversity. Data is being generated fromdifferent channels and its nature haschanged.2. Vol...
Technology Evaluation Centers1. Diversity. Data is being generated fromdifferent channels and its nature haschanged.2. Vol...
Technology Evaluation Centers2. ERP and BI, an overview of different worldsOperational BIERP / Bus Proc Man-Events-Process...
2. ERP and BI, an overview of different worldsTechnology Evaluation CentersTechnical- data consolidation- application inte...
OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different world...
3. Closing the ERP-BI gapTechnology Evaluation Centers…any given application can function perfectly well, evenwhen the dat...
3. Closing the ERP-BI gapTechnology Evaluation CentersWhy:Data Consolidation• Many private databases and excel spreadsheet...
3. Closing the ERP-BI gapTechnology Evaluation CentersWhy:Process Consolidation• No harmonized processes• Common business ...
3. Closing the ERP-BI gapTechnology Evaluation CentersWhy:Decision Consolidation• Management can follow the reporting andm...
3. Closing the ERP-BI gapTechnology Evaluation CentersHow:Establishing an integration strategy at different levels• Data- ...
3. Closing the ERP-BI gap (Data Integration)Technology Evaluation Centers
3. Closing the ERP-BI gap (Data Integration)Technology Evaluation CentersData Integration. Applications that enable users ...
3. Closing the ERP-BI gap (Data Integration)Technology Evaluation CentersMain Players:• Informatica• Pervasive Software• i...
3. Closing the ERP-BI gap (Data Integration)Technology Evaluation CentersAn increasing number of BI vendors are incorporat...
3. Closing the ERP-BI gap (Application Integration)Technology Evaluation Centers
3. Closing the ERP-BI gap (Application Integration)Technology Evaluation CentersEnterprise Application Integration (EAI) i...
3. Closing the ERP-BI gap (Application Integration)Technology Evaluation CentersEnterprise Application Integration (EAI) i...
Technology Evaluation CentersThrough a middleware solution, a couple of samples:SQL Server 2012 Business Intelligence and ...
3. Closing the ERP-BI gap (What to select)Technology Evaluation CentersApplication Integration Data IntegrationStrengths •...
3. Closing the ERP-BI gap (Technology plus the right business approach)Technology Evaluation CentersIntegration means usin...
OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different world...
4. Challenges and opportunitiesTechnology Evaluation CentersChallenges:• Agreeing on what data/information is relevant• Ap...
4. Challenges and opportunitiesTechnology Evaluation CentersBenefits:• Streamlined, accelerated and standardized business ...
OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different world...
5. Conclusion: a call to actionTechnology Evaluation Centers• Define clear sponsorship of the integration strategy at seni...
5. Conclusion: Questions?Technology Evaluation CentersIn the Age of Analytics, as products and services become ‘lighter’ (...
Jorge García, Sr. Analyst, BI and Data Managementjgarcia@technologyevaluation.comTwitter: @jgptecLinkedIn: http://www.link...
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Bi and erp integration

  1. 1. Technology Evaluation CentersHow to Integrate BI and ERP—and Why You Should Do ItJorge García. Sr. AnalystBI and Data Managementwww.technologyevaluation.comMSDynamicsWorld.com, April 2013
  2. 2. OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different worlds3. Closing the ERP-BI gap4. Challenges and opportunities5. Conclusion: a call to action6. Q&A
  3. 3. OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different worlds3. Closing the ERP-BI gap4. Challenges and opportunities5. Conclusion: a call to action6. Q&A
  4. 4. 1. What ERP users want from a BI solutionTechnology Evaluation CentersIt is very common to find that the data to support many ofthe business information needs is simply not available atthe levels required, or that it is of such bad quality that it isimpossible to use. Resolution of these types of issues oftenrequires fundamental changes to business processesAlison Newell
  5. 5. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  6. 6. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  7. 7. 1. What ERP users want from a BI solutionTechnology Evaluation CentersMost ERP users look for BI and Analytics to improve their:• Decision-making process (Strategy)And also to achieve:• Operational efficiency (Operations)• Better business performance (S and Op)
  8. 8. 1. What ERP users want from a BI solutionTechnology Evaluation Centers“Concepts and methodologies for improvement of businessdecisions using facts and information from supportingsystems.” (Howard Dresner, 2007)“Business Intelligence is the capability of the organization orcompany to explain, plan, predict, solve problems, think in anabstract way, understand, invent, and learn in order toincrease organizational knowledge, provide information to thedecision process, enable effective actions, and supportestablishing and achieving business goals.” (Wells 2008)Business Intelligence
  9. 9. 1. What ERP users want from a BI solutionTechnology Evaluation CentersBI is not just… BI is NOT just reporting BI is NOT just a data warehouse BI is NOT just about OLAP BI is NOT just a dashboard BI is NOT just for executives BI is NOT just for large companies BI is NOT just about technologyBI is a combination of People-Process-Technology that canadd value to an organization
  10. 10. 1. What ERP users want from a BI solutionTechnology Evaluation CentersTransforming information into intelligence: Collection Reporting Analytics VisualizationUnderstanding how data becomes information, and how information can then betransformed into intelligence, presented in a manner to support the decision makingprocess.
  11. 11. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  12. 12. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  13. 13. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  14. 14. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  15. 15. 1. What ERP users want from a BI solutionTechnology Evaluation CentersData andProcessIntegration !!Source: Technology Evaluation Centers, 2012
  16. 16. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  17. 17. 1. What ERP users want from a BI solutionTechnology Evaluation CentersSource: Technology Evaluation Centers, 2012
  18. 18. 1. What ERP users want from a BI solutionTechnology Evaluation CentersFood for thought:• 53% of BI implementers cite end useradoption as a challenge.• 37% of BI implementations run over theirprojected budgets.• For 74% of organizations, data that ismanually assembled and reconciled fromvarious sources used for enterprise reportingnegatively affects daily operations.(Source: Info-Tech)
  19. 19. OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different worlds3. Closing the ERP-BI gap4. Challenges and opportunities5. Conclusion: a call to action6. Q&A
  20. 20. 2. ERP and BI, an overview of different worldsTechnology Evaluation CentersYou can have data without information, but you cannot have information without data.Daniel Keys Moran
  21. 21. 2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
  22. 22. 2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
  23. 23. 2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
  24. 24. 2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
  25. 25. 2 ERP and BI, an overview of different worldsTechnology Evaluation Centers
  26. 26. 2. ERP and BI, an overview of different worldsTechnology Evaluation CentersApplication OperationalERP, CRM, legacy apps, ...Decision Support Systems, BusinessIntelligenceTypical users Staff Managers, ExecutivesPurpose Transaction registry AnalysisRefresh Immediate PeriodicData model Entity-relationship Multi-dimensionalSchema Normalized Not normalizedEmphasis Update Retrieval
  27. 27. Technology Evaluation Centers2. ERP and BI, an overview of different worlds
  28. 28. Technology Evaluation Centers-Reporting-Dashboarding2. ERP and BI, an overview of different worlds
  29. 29. Technology Evaluation Centers1. Diversity. Data is being generated fromdifferent channels and its nature haschanged.2. Volume. The increase in the number of datasources and the globalization anddiversification of businesses have led to theexponential growth of data.3. Velocity. As data volume increases, so mustthe speed at which data is captured andtransformed into its final form.4. Sophistication. With the increasingcomplexity of data, high data quality andsecurity are required to enable datacollection, transformation, and analysis toachieve expedient decision making.5. Applicability. These aforementioned factorscan compromise the applicability of the datato business process and performanceimprovements.-Reporting-Dashboarding2. ERP and BI, an overview of different worlds
  30. 30. Technology Evaluation Centers1. Diversity. Data is being generated fromdifferent channels and its nature haschanged.2. Volume. The increase in the number of datasources and the globalization anddiversification of businesses have led to theexponential growth of data.3. Velocity. As data volume increases, so mustthe speed at which data is captured andtransformed into its final form.4. Sophistication. With the increasingcomplexity of data, high data quality andsecurity are required to enable datacollection, transformation, and analysis toachieve expedient decision making.5. Applicability. These aforementioned factorscan compromise the applicability of the datato business process and performanceimprovements.2. ERP and BI, an overview of different worlds
  31. 31. Technology Evaluation Centers1. Diversity. Data is being generated fromdifferent channels and its nature haschanged.2. Volume. The increase in the number of datasources and the globalization anddiversification of businesses have led to theexponential growth of data.3. Velocity. As data volume increases, so mustthe speed at which data is captured andtransformed into its final form.4. Sophistication. With the increasingcomplexity of data, high data quality andsecurity are required to enable datacollection, transformation, and analysis toachieve expedient decision making.5. Applicability. These aforementioned factorscan compromise the applicability of the datato business process and performanceimprovements.2. ERP and BI, an overview of different worlds
  32. 32. Technology Evaluation Centers2. ERP and BI, an overview of different worldsOperational BIERP / Bus Proc Man-Events-Processes-DataBusiness Intelligence-Reports-Dashboards-OLAPBusiness Performance Management-Strategy-Goals-MetricsAnalytics- Predictive AnalyticsReal TimeHistorical Future
  33. 33. 2. ERP and BI, an overview of different worldsTechnology Evaluation CentersTechnical- data consolidation- application integrationBusiness- effective data usage- process, execution, and decision alignment- effective return on investment (ROI)IntegrationChallenges:
  34. 34. OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different worlds3. Closing the ERP-BI gap4. Challenges and opportunities5. Conclusion: a call to action6. Q&A
  35. 35. 3. Closing the ERP-BI gapTechnology Evaluation Centers…any given application can function perfectly well, evenwhen the data behind it is bad. It is only when we attemptto reuse that data for another purpose that we discoverhow inaccurate, outdated or irrelevant it is, and by then itis usually too lateLarry Burns
  36. 36. 3. Closing the ERP-BI gapTechnology Evaluation CentersWhy:Data Consolidation• Many private databases and excel spreadsheets allowdepartments to manipulate and produce their own numbers.• The same reports are produced in different departments andlevels and give significantly different numbers (e.g. sales andfinance departments are looking at different numbers).• The same KPIs to compare business units against each otherare calculated in different ways.• The authority for initiating report requests is not centralized.There is no distinction between business and IT.• Lack of upstream interest for downstream effort, no feedbackfrom the recipients.Data IntegrationConsolidation (ETL)Federation (EII)DeliveryProcess IntegrationApplication (EAI)
  37. 37. 3. Closing the ERP-BI gapTechnology Evaluation CentersWhy:Process Consolidation• No harmonized processes• Common business language (definitions)• No harmonized KPIs• Management routines are often not formallydefinedData IntegrationConsolidation (ETL)Federation (EII)DeliveryProcess IntegrationApplication (EAI)
  38. 38. 3. Closing the ERP-BI gapTechnology Evaluation CentersWhy:Decision Consolidation• Management can follow the reporting andmonitoring of key, balanced performancemeasures that reflect desired results of thestrategic plan. Management can communicate theresults of corporate and functional scorecardsthroughout the organization.• It enables multidimensional analysis ofperformance measurement GAPs and ad hocanalysis. Also allows the monitoring of operationalprogress against initiatives.• At the operational level we are monitoringoperations, e.g. logistics, inventories, outstandingdeliveries, and invoices.Data IntegrationConsolidation (ETL)Federation (EII)DeliveryProcess IntegrationApplication (EAI)
  39. 39. 3. Closing the ERP-BI gapTechnology Evaluation CentersHow:Establishing an integration strategy at different levels• Data- Using a third-party data integration tool- Using a pre-configured tool within the BI app• Application- Using an enterprise application integration app- Taking advantage of the ERP’s integration offering
  40. 40. 3. Closing the ERP-BI gap (Data Integration)Technology Evaluation Centers
  41. 41. 3. Closing the ERP-BI gap (Data Integration)Technology Evaluation CentersData Integration. Applications that enable users to design processes to extract, transform,and load data from one or more sources to a target data repositoryAdvantages:Retention of metadata. Analytical applications arehighly dependent on proper understanding of metadata.Ease of use. Most ETL tools - GUI-based, repositories;increased ease of use and ease of modification.Built-ins. Built-in objects to handle recurring tasks suchas aggregation; therefore they do not need to be codedand recoded.Skill. Due to above factors, skill level requirements forETL tools less than with SQL.Support. Large experience base to fall back on includingcustomer experience and vendor support.Disadvantages:Cost. Costly, with large technology and spacerequirements.Complexity. ETL tools may have difficulty withvery complex transformation logic and complexstaging requirements.Performance. Generic and interpretive; can beperformance issues over SQL, fortransformations.
  42. 42. 3. Closing the ERP-BI gap (Data Integration)Technology Evaluation CentersMain Players:• Informatica• Pervasive Software• iWay Software• SAP• Oracle• Microsoft
  43. 43. 3. Closing the ERP-BI gap (Data Integration)Technology Evaluation CentersAn increasing number of BI vendors are incorporating specific technical and businessapproaches for performing data integration within specific ERP offerings, such as for theMicrosoft Dynamics familyAdvantages:• Native connectors• Data Integration Templates• Ease of use• Built-in functionality and data mappingsProviding a combination of People-Process-Technology that canadd value to an organization
  44. 44. 3. Closing the ERP-BI gap (Application Integration)Technology Evaluation Centers
  45. 45. 3. Closing the ERP-BI gap (Application Integration)Technology Evaluation CentersEnterprise Application Integration (EAI) is a process of data and application integrationtechnologies which focuses on linking applications together, typically in real time.Advantages:• Real-time access to information among various systems• Information Integrity across various systems• Streamlines business processes, thus increasingorganizational efficiencyDisadvantages:• High cost• EAI implementations are very time consumingand resource intensive at times
  46. 46. 3. Closing the ERP-BI gap (Application Integration)Technology Evaluation CentersEnterprise Application Integration (EAI) is a process of data and application integrationtechnologies which focuses on linking applications together, typically in real time.Main Players:• Oracle• Tibco• Microsoft• Webmethods• GXS• IBM
  47. 47. Technology Evaluation CentersThrough a middleware solution, a couple of samples:SQL Server 2012 Business Intelligence and Enterprise Editions- BI Semantic Model- Master Data Services- SQL Server EIM servicesOracle Fusion- Semantic Layer- Modular design- A set of pre-built Applications (Oracle BI Suite)3. Closing the ERP-BI gap (Technology plus the right business approach)Infor ION- Semantic Layer- Event and messaging system- Third party integration
  48. 48. 3. Closing the ERP-BI gap (What to select)Technology Evaluation CentersApplication Integration Data IntegrationStrengths • Reliability• Enables real-time business decisions• Out-of-box adapters for many enterprisesystems• Metadata-driven approach• GUI tools for most tasks (not muchcoding)• Extremely efficient for large datavolumesWeaknesses • High upfront cost• Relatively complex design patterns• High upfront costs• Complexity of tool• Batch-orientedBest for… • Most suitable for real-time data needs• High-volume, low-footprint dataexchange• Many consumers of the same data• Suitable for large volumes of data• Generally used to move data betweentwo or more databases/data repositoriesProducts • Microsoft BizTalk • SQL Server Integration Services
  49. 49. 3. Closing the ERP-BI gap (Technology plus the right business approach)Technology Evaluation CentersIntegration means using a combination of People-Process-Technology that can add value to an organizationIt is important to have acombination of the right businessand technical expertise forachieving effective and agile ERP–BI integration.Nowadays many BI vendors offer predefinedcontent or packaged solutions for the mostimportant processes, Sales and marketing,procurement, finance andoperations,... Easing the burden ofdeveloping complex integration solutions.
  50. 50. OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different worlds3. Closing the ERP-BI gap4. Challenges and opportunities5. Conclusion: a call to action6. Q&A
  51. 51. 4. Challenges and opportunitiesTechnology Evaluation CentersChallenges:• Agreeing on what data/information is relevant• Applying the right technology to manage the data• Ensuring conversion of data to information• Discovering what integration points exist• Discovering the many complex data relationships
  52. 52. 4. Challenges and opportunitiesTechnology Evaluation CentersBenefits:• Streamlined, accelerated and standardized business processes• Complete visibility across all functions and all departments• Business alignment• Set the basis for master data management• Cost savings• Improved ROI
  53. 53. OutlineTechnology Evaluation Centers1. What ERP users want from a BI solution2. ERP and BI, an overview of different worlds3. Closing the ERP-BI gap4. Challenges and opportunities5. Conclusion: a call to action6. Q&A
  54. 54. 5. Conclusion: a call to actionTechnology Evaluation Centers• Define clear sponsorship of the integration strategy at senior management level• Close the gap between operational, tactical, and strategic levels• Iterative development approach• Make integration initiatives a priority• Consider integration initiatives as part of full scope data management initiatives• Understand integration initiatives must be properly planned and chartered• Ensure commitment from the both business and technical sides
  55. 55. 5. Conclusion: Questions?Technology Evaluation CentersIn the Age of Analytics, as products and services become ‘lighter’ (i.e., less physical and moredigital), manufacturing and distribution costs—while still important—will be augmentedwith new metrics—the costs of know, the flow of know, and the costs of not knowing.Thornton May, Futurist, Executive Director and Dean, IT Leadership Academy
  56. 56. Jorge García, Sr. Analyst, BI and Data Managementjgarcia@technologyevaluation.comTwitter: @jgptecLinkedIn: http://www.linkedin.com/in/jorgeogarciaTechnology Evaluation Centerswww.technologyevaluation.comThank You
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