Why Business Intelligence Projects Fail -- And What To Do About It

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How to avoid the common problems that plague Business Intelligence projects

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Why Business Intelligence Projects Fail -- And What To Do About It

  1. 1. WHY BUSINESS INTELLIGENCE PROJECTS FAIL And What To Do About It Timo Elliott, Senior Director Strategic Marketing timo.elliott@sap.com
  2. 2. INTRODUCTION It’s not only about knowing how to climb… You also have to know how not to fall off
  3. 3. BI Improves Business Performance Source: Intelligent Enterprise Survey, 2008
  4. 4. Barriers to Deployment Integration Ease of use No clear ROI Data quality Cost of licenses Cost of training
  5. 5. IT Underestimates User Difficulties… Just the right amount of Difficult to find information information is available 60% 60% 55% 50% 50% 40% 40% 32% 30% 30% 24% 22% 20% 20% 10% 10% 0% 0% Executives IT Executives IT (credibility) gap Base: 406 U.S. IT Executives, 675 Business Executives Source: BusinessWeek Research Services
  6. 6. …And Underestimates Value Of BI To The Business The percentage of business users seeing the business impact as significant is 15% higher than the percentage of IT professionals saying the impact on company performance has been significant How successful do you consider How much has BI contributed to your BI deployment? your company’s performance? 80% 80% 70% 70% 60% 60% 50% Business 50% 40% gap 40% 30% 30% 20% 20% 10% 10% 0% 0% Failure Moderately Very Not at All Somewhat Significantly Successful Successful Source: Successful Business Intelligence, Cindi Howson
  7. 7. Timo’s Law of BI “Executives will ALWAYS be dissatisfied with their information systems”
  8. 8. 1. Changing the Business 2. People, Not Technology 3. Process, Not Project 4. Value, Not Cost 5. Insight, Not Data 6. Pragmatism, Not Rigid Process
  9. 9. CHANGING THE BUSINESS
  10. 10. Aim High Not “implement software” Not “keep the business happy” Aim to transform the way the business works Paint the vision
  11. 11. “Follow the Money” Track information to its final destination in any system Why is it being used What might change as a result
  12. 12. Aim For 100% Deployment Target all uses and users “To be successful with BI, you need to be thinking about deploying it to 100% of your employees as well as beyond organizational boundaries to customers and suppliers” — Cindi Howson 60% 50% 40% Perceived Potential 30% Current % 20% 10% 0% Failure Moderately Very Successful Successful Source: Successful Business Intelligence, Cindi Howson
  13. 13. PEOPLE, NOT TECHNOLOGY
  14. 14. People Skills Make or Break BI Projects Investment Historical Determinant of 75% of success determined Success by things OTHER than data People 2% 20% and technology Process 2% 15% Organization 2% 10% Culture 1% 20% Leadership 1% 10% Data 10% 15% Technology 82% 10%
  15. 15. IT / Business Relationship Business Person Archetype IT Professional Archetype Extrovert Introvert Sociable Solitary Freewheeling Methodical, systematic, disciplined Risk-taking Risk-averse Prefers face-to-face meeting Minimal face-to-face communication, email and instant messaging is fine Trust and respect
  16. 16. Tough Love “I tried being reasonable — I didn’t like it” Dirty Harry
  17. 17. Choose Your Users Carefully
  18. 18. User Adoption 8%
  19. 19. User Adoption
  20. 20. Common User Adoption Issues Training for IT Training on data “Even if an Continued training application is intuitive enough to Best practice be usable without instruction, any Culture related process or culture changes Expectation setting should be driven Ease of use home with at least a quick tutorial.” “What dooms IT projects” August 31, 2005
  21. 21. Congratulations! You’re in Marketing! Evangelize  Promote early, promote often  Name the system  Findsuccesses, keep explaining the value  Highly visible dashboards  Internal seminars  Newsletters  Trophies for best projects
  22. 22. Evangelizing
  23. 23. Evangelizing
  24. 24. Evangelizing
  25. 25. Stories Are Good For Business
  26. 26. γνῶθι σεαυτόν Know Thyself
  27. 27. Information Culture
  28. 28. Information Culture
  29. 29. Information Culture 90% 80% 70% 60% Gut-Feel 50% Fact-Based 40% 30% 20% 10% 0% Failure Moderately Very Successful Successful Source: Successful Business Intelligence — Cindi Howson
  30. 30. Process, Not Project
  31. 31. BI is Designed for Change START FINISH
  32. 32. BI Methodology IT Business
  33. 33. Align With Business Processes Triage Patient Status Nurse Exam Patient Patient Assessment and Room Indicator Arrives Registration and Entry Assigned Changed Physician Physician Labs and/or Lab Report(s) Physician Examines Note X-rays are Returned via Consults with Patient Created Ordered EDIM Patient Patient Discharge Physician Note Prescription(s) Patient Referred for Instructions Completed Written Discharged Follow-up Care Created Electronic History File EDIM Reports Patient Chart is Created/ Leaves ED is Completed Created Printed
  34. 34. Applications
  35. 35. Applications
  36. 36. BI Competency Center Leadership skills Link to corporate strategy Alter processes Prioritize and set expectations Analysis skills Relationship skills Gather requirements Summarize and analyze Evangelize Discover and explore Monitor satisfaction Identify data Interpret results Extract data Develop alternatives Validate data Engineering skills Store, maintain, integrate data Implement changes
  37. 37. Incentives and Value Tragedy of the commons Internal pricing
  38. 38. BICC Report Card Active usage Satisfaction New requests Standard reports Applications Service Time
  39. 39. VALUE, NOT COST
  40. 40. What’s the ROI? BI ROI
  41. 41. ROI is Hard to Know in Advance “One of the key contributors to poor IT investment performance is an unbalanced approach taken by executives at the project approval stage. Too often, the overriding emphasis is on quick payback or demands for the return on investment (ROI) to be demonstrated in financial terms.” Gartnr, “Total Value of Opportunity — The Real Measure for BI”
  42. 42. Business People Have Short Memories
  43. 43. BI is Becoming Mission-Critical
  44. 44. Finding Value 4% Technology- related benefits 54% 42% Business process Productivity- enhancements related benefits Previous projects
  45. 45. Finding Value Doing things FASTER
  46. 46. Finding Value Minimizing RISK
  47. 47. Align With the Goals Of the Organization Link BI goals to what executives care about Source: Accenture
  48. 48. Sales Techniques Techniques for understanding executive needs Providing answers to problems, not technology infrastructures Getting your projects to “top of mind”
  49. 49. Turn Information into a Profit Center “Our extranet produced $60M in incremental sales in the first year.” Don Stoller, Owens & Minor
  50. 50. Profitability: a Foundation For Strategic BI “I don’t care about profitability”
  51. 51. Play on Doubt Start asking questions about the numbers that drive the business “You don’t know?!”
  52. 52. INSIGHT, NOT DATA 101011011101001011101011010111010110101011001011010101 101011011101001011101011010111010110101011001011010101 101011011101001011101011010111010110101011001011010101 101011011101001011101011010111010110101011001011010101
  53. 53. Data Integration
  54. 54. Lack of Trust 43% of users say they’re not sure if internal information is accurate 77% said bad decisions had been made because of lack of information 5 out of 4 people don’t believe statistics in presentations Business Week study, 2005
  55. 55. Data Quality “Poor-quality customer data costs U.S. businesses $611 billion a year. Yet nearly half of the companies surveyed admit they have no plans to improve data quality” The Data Warehousing Institute study
  56. 56. Data Quality
  57. 57. Data Profiling
  58. 58. Justifying Data Quality Call it Data Governance Risk, Productivity 36% Time Spent on Data Quality 15% 12% 10% 9% 5% 6% 6% 1 hour 2 hours 3-4 hours 5 hours 6-10 hours 11-20 hours 21+ hours Not Sure Source: Harris Interactive Poll
  59. 59. Data Lineage
  60. 60. Go Faster
  61. 61. Faster = Higher Business Value Source: DM Direct, Nigel Pendse, March 2006
  62. 62. Targets and Incentives 70,000 172 £280,000
  63. 63. Data Misuse and Interpretation
  64. 64. FLEXIBLE PRAGMATISM, NOT RIGID PROCESSES “No plan survives first contact with the enemy” Claus von Clausewitz
  65. 65. Finding An Executive Sponsor Why Should I Care? Track record of IT success Evangelism Company goals His / her career Likely that sponsor will change: build broad base of support
  66. 66. Staying Zen Do “less” Keep it simple Clean up BICC efficiencies IT dashboards Standardize SOA / Web Services SaaS
  67. 67. BI Standardization Calculator
  68. 68. Succeeding Despite Adversity Keep the project up to speed Structure the project into smaller ones Ensure alignment at all times Admit problems fast Stick with it!
  69. 69. CONCLUSION
  70. 70. Selected References “Competing on Analytics” by Thomas Davenport “Successful Business Intelligence: Secrets to Making BI a Killer App” by Cindi Howson “Business Intelligence Competency Centers: A Team Approach to Maximizing Competitive Advantage” by Gloria J. Miller et. Al. “Business Intelligence: The Savvy Manager's Guide” by David Loshin TDWI Best Practices Report 2008: “Pervasive Business Intelligence: Techniques and Technologies to Deploy BI on an Enterprise Scale”
  71. 71. Business Intelligence is about People, Not Technology “Computers are useless. They can only give you answers.” - Pablo Picasso
  72. 72. Conclusion BI is not (only) about  Technology  Projects  Cost  Data  Plans
  73. 73. Thank You And Good Luck! Timo Elliott Senior Director, Strategic Marketing timo.elliott@sap.com www.timoelliott.com Twitter/timoelliott

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