Demystifying BI For Mid-Market Enterprises

September 7, 2011
DemystifyingBIforMid-Market
Enterprises

• 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

Today’sTopics.
 Understanding Business Intelligence
 How BI is Evolving
 Insights from Experience of BI Implementations
 Implementing BI in Mid-market Enterprises
3

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.

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

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

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

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

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

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
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

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?

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?

Today’sTopics.
14

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

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

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

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

Today’sTopics.
19

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

SMEs’needscanoftenbeaddressedbysimplerBIsolutions.
SME BI Vendor Landscape
Range of investment: $50,000 to $300,00 for similar implementation scenarios

BIfortheBudgetConsciousEnterprise.

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.

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.

BIsuccessisdirectlyrelatedtothequalityofBIdistribution
outsideoftheBIsystem.
BI DistributionLow
Low
High
High
B
I
S
u
c
c
e
s
s
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

Today’sTopics.
29

TheInfo-TechBusinessIntelligenceRoadmap.
Business Intelligence
Strategy
BI Solution Selection
Optimizing BI
Implementing BI

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

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

 Understand and embed the insights that will drive actions and deliver value
Strategy
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

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

 Understand and embed the insights that will drive actions and deliver value
Strategy
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

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

• 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

Questions?
Thankyouforyourparticipation.

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

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

Demystifying BI For Mid-Market Enterprises

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Demystifying BI For Mid-Market Enterprises

Similar to Demystifying BI For Mid-Market Enterprises (20)

Recently uploaded

Recently uploaded (20)

Demystifying BI For Mid-Market Enterprises