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
  • Did I miss anything here?
  • Choosing BI Platforms

    1. 1. Choosing Business Intelligence Platforms<br />Prepared For The:<br />Microsoft Business Intelligence User Group of New York City<br />Scott Stein<br />scott.stein@insightspi.com<br />+1 (609) 937-6107<br />June 2011<br />
    2. 2. How Do Companies Choose BI Platforms?<br /><ul><li>Features/Functionality
    3. 3. Cost
    4. 4. Vendor Roadmap
    5. 5. Incumbency & Vendor/Customer Relationships
    6. 6. Alignment With IT Strategy
    7. 7. Business Solutions
    8. 8. The MS Business Case</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Incumbency & Vendor Relationships<br />Alignment With IT Strategy<br />Business Solutions<br />The Business Case for MS<br /><ul><li>MS does well when leading with analytics
    9. 9. AS is a superior mix of scalability and analytical functionality
    10. 10. Competitors do well at the “high end”
    11. 11. Advanced Visualizations
    12. 12. Data mining
    13. 13. “Big data”
    14. 14. Data quality
    15. 15. Features/functionality no longer a big factor in BI platform decisions
    16. 16. All BI vendors are comparable
    17. 17. There are no weak vendors any more</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Roadmap<br />Incumbency & Vendor Relationships<br />Alignment With IT Strategy<br />Business Solutions<br />The Business Case for MS<br />Cost<br /><ul><li>Current economic climate requires minimal “time to value”
    18. 18. Doing more with less
    19. 19. Companies looking for quick wins (3 months) w/tangible results
    20. 20. Mandate to deliver projects that drive immediate bottom-line results i.e. this fiscal year
    21. 21. “Defend the Spend” with Self-funding incremental ROI
    22. 22. Focus back on Departmental BI
    23. 23. The rise of Self-Service BI
    24. 24. MS platform ~1/5 cost of competitors
    25. 25. Many already own it i.e. SQL Server, SharePoint, Office
    26. 26. MS TCO
    27. 27. Less complexity in implementation
    28. 28. 1 to 4 ratio of implementation man-hours compared to Hyperion, Cognos, OBIEE, others
    29. 29. M&S costs ranging from 15% to 25% of the license fee annually
    30. 30. Microsoft BI skills investment are ‘incremental’ to most organizations
    31. 31. MS “low-cost” plays well for…
    32. 32. Cost-constrained industries e.g. retail, healthcare
    33. 33. BI ‘re-starts’ or second surgery
    34. 34. When competing vendors enforce pricing changes</li></li></ul><li>Case Studies:Investment Optimization & Analysis<br /><ul><li>Challenges
    35. 35. Couldn’t easily analyze impact of investment/discretionary spend on income statement & balance sheet
    36. 36. Financial and customer transaction data in disparate systems
    37. 37. Hyperion Planning/BI systems were
    38. 38. too rigid
    39. 39. took years and many millions to deliver
    40. 40. weren’t likely to rip and replace
    41. 41. …however didn’t want to invest more
    42. 42. Oracle was offering expensive data “connectors” requiring constant customizations and extensive config/dev
    43. 43. Solution
    44. 44. Owned SQL Server & minimal incremental cost for SharePoint
    45. 45. Implemented MS BI solution
    46. 46. Extract and integrate financials and customer data,in weeks, not many months
    47. 47. Designed models than plan/analyze their discretionary spend and enable investment optimization across the business
    48. 48. Used across 40+ American Expressbusiness segments
    49. 49. Has enabled the reallocation of tens of millions of dollars within and across the company </li></li></ul><li>How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Incumbency & Vendor Relationships<br />Alignment With IT Strategy<br />Business Solutions<br />The Business Case for MS<br />?<br />
    50. 50. How Do Companies Choose BI Platforms?<br />Vendors & Their Users in a Recessionary World<br /><ul><li>Creative financing deals from vendors
    51. 51. Maintenance revenue is increasingly important for vendors
    52. 52. Pricing pressures and bundling
    53. 53. Infrastructure-light BI will benefit
    54. 54. Users will look at what they already have
    55. 55. Open source and SaaS will get a push
    56. 56. Repurposing of BI: Focus on the bottom line
    57. 57. Uncertain users investing tactically
    58. 58. Negotiating power is high (for customer) during initial acquisition; low for subsequent transactions</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Alignment With IT Strategy<br />Business Solutions<br />The Business Case for MS<br />Incumbency & Vendor Relationships<br /><ul><li>Typically Bad for MS if the business drives the decisions
    59. 59. Oracle/Hyperion and IBM/Cognos have strong relationships with Finance
    60. 60. SAP/Oracle have strong industry relationships
    61. 61. ERP Vendors are now BI Vendors e.g. SAP, Oracle
    62. 62. “Own” the data
    63. 63. Selling BI into their install base
    64. 64. Interoperability of a vendor’s product lines should not be assumed
    65. 65. Align with customers’ vendor consolidation strategy
    66. 66. Typically good for MS if IT drives the decisions
    67. 67. IBM/Cognos is there too
    68. 68. Ubiquity of SharePoint in the enterprise
    69. 69. Significantly decrease barriers to entry
    70. 70. As long as they own it</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Incumbency & Vendor Relationships<br />Business Solutions<br />The Business Case for MS<br />Alignment With IT Strategy<br />“Typical” Organizational View of BI/PM . . . <br />“Typical” Global 2000 Company<br />Reporting: Crystal<br />Reporting: Crystal<br />Scorecarding: Excelsius<br />OLAP:Cognos<br />Data Mining: SAS<br />Excel Hell!!<br />Forecasting: Hyperion<br />Reporting: Siebel<br />OLAP: Oracle<br />Reporting: Actuate<br />Query: Qlikview<br />
    71. 71. How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Incumbency & Vendor Relationships<br />Business Solutions<br />The Business Case for MS<br />Alignment With IT Strategy<br /><ul><li>Standardization historically hasn’t worked
    72. 72. Business User Adoption/Rejection
    73. 73. 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
    74. 74. “More than half of enterprise BI users said they were dissatisfied with IT’s ability to deliver business intelligence functionality” (ComputerWorld, 5/4/2011)
    75. 75. Cost prohibitive & high entry barriers for enterprise deployment
    76. 76. Requires comprehensive data management strategies
    77. 77. MS vision for PERVASIVE BI
    78. 78. Increase BI usage from 20% to 80% in the enterprise
    79. 79. BI as a “feature”, not a specialization
    80. 80. Convergence of BI w/collaboration, search, content management
    81. 81. Address user adoption issues w/familiar tools i.e. Excel & SharePoint
    82. 82. Cost is no longer a barrier to entry
    83. 83. …still need to fill some gaps e.g. metadata, tool integration</li></li></ul><li>Case Studies:Program Performance Management<br /><ul><li>Challenges
    84. 84. IT “standardized” on IBM/Cognos
    85. 85. Low business adoption
    86. 86. Unnecessary complexity i.e. overkill
    87. 87. Dependence on IT support
    88. 88. Low perceived ROI
    89. 89. Consequently, using “Clipboard” approach to program management
    90. 90. Unable to adequately sense & respond to Program issues
    91. 91. “Brute force” stovepipe management of financials, technical metrics and resource planning
    92. 92. Solution
    93. 93. Needed something between “clipboard” and “IT standard”
    94. 94. Low-cost scalable solution
    95. 95. Integrate with existing program rhythm
    96. 96. Provide visibility and enable program optimization
    97. 97. Already owned SQL Server & SharePoint
    98. 98. Rapid user adoption with familiar tools e.g. Excel
    99. 99. SharePoint dashboards + SQL Server MSAS + SQL ServerMSIS for data integration
    100. 100. Extendable across the org, planned for implementation as “single view” of Program metrics</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Other MS negative IT perceptions . . . <br /><ul><li>Low-cost = “cheap”
    101. 101. Still new to BI
    102. 102. Emotional IT bigotry
    103. 103. The usual suspects…scalability and security</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Role of SharePoint in MS BI decisions . . . <br />
    104. 104. How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Incumbency & Vendor Relationships<br />Alignment With IT Strategy<br />The Business Case for MS<br />Business Solutions<br /><ul><li>Microsoft has a weak sales model for business solutions
    105. 105. Focus on IT, not BDMs
    106. 106. Need to shift conversations away from pure technology
    107. 107. Competitors out-spend MS, invest in sales cycle
    108. 108. Perception around competitor’s industry and functional solutions
    109. 109. Demo-ware positioned as industry “templates”, data models and “accelerators”
    110. 110. Finance/CFO often drive BI decisions with Performance Management
    111. 111. MS doesn’t sell to finance
    112. 112. PPS Planning failure
    113. 113. MS partner eco-system can be very effective
    114. 114. Planning/budgeting vendors like Tagetik, Prophix, SAP BPC (OutlookSoft)
    115. 115. Industry solutions & functional expertise
    116. 116. Departmental BI i.e. Shadow IT
    117. 117. Self-Service
    118. 118. QlikViewis user-friendly with mature feature tools and visualization
    119. 119. Mega-vendors following, Tableau is getting there
    120. 120. PowerPivotcatching up (but require upgrades, compatibility)
    121. 121. Creates huge data governance/management challenges for IT
    122. 122. Cloud/Hosted opportunities, particularly for industries with lots of data sources</li></li></ul><li>Case Studies:Financial Analysis & Reporting<br /><ul><li>Challenges
    123. 123. Recently merged west coast and east coast companies
    124. 124. 2 financial transaction systems
    125. 125. Thousands of financial reports
    126. 126. Manual process for planning, budgeting, forecasting did not scale
    127. 127. Catch-22
    128. 128. Finance rejected IT ‘standards’ andwould not give up Excel for reporting
    129. 129. IT could not provide timely data access without enforcing standards
    130. 130. Solution
    131. 131. Robust integrated reporting and analysis
    132. 132. MS Integration Services + SME for data integration and data warehousing
    133. 133. Excel-based tools (SAP BPC e.g. OutlookSoft) for Planning/Budgeting
    134. 134. Integrated with dynamic reporting toolset
    135. 135. One version of the truth across the business
    136. 136. Aligned Business & IT Goals for flexibility, timeliness and standards-based approach
    137. 137. Linked corporate strategy to operational performance
    138. 138. Provided platform to plan/manage/analyze the business
    139. 139. Architecture enables other data sources to analyze profitability and productivity</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Features / Fuctionality<br />Cost<br />Roadmap<br />Incumbency & Vendor Relationships<br />Alignment With IT Strategy<br />Business Solutions<br />The Business Case for MS<br /><ul><li>The current landscape for BI software vendors
    140. 140. Comes with high cost, high complexity and relatively long delivery and time-to-value
    141. 141. Targeted at a small set of users across the organization
    142. 142. Most are more sophisticated than Microsoft in their sales motions w/customers
    143. 143. Mega-vendors are already entrenched with their customers e.g. ERP
    144. 144. MS BI platform lowers barriers to entry & risk
    145. 145. Pricing and TCO is massively better than competition
    146. 146. 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
    147. 147. Incremental ROI i.e. quick time-to-value solutions and not “big bang” high-cost high-risk long timeframes like many competitive solutions
    148. 148. Robust third party ‘eco-system’ to round out MS solutions for specific functional areas of the org and specific industries</li></li></ul><li>How Do Companies Choose BI Platforms?<br />Questions?…Comments?<br />Scott Stein<br />scott.stein@insightspi.com<br />+1 (609) 937-6107<br />

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