Post on 16-Jan-2015
description
CHOOSING BUSINESS INTELLIGENCE PLATFORMS
June 2011
Prepared For The:
Microsoft Business Intelligence User Group of New York City
Scott Steinscott.stein@insightspi.com+1 (609) 937-6107
Page 2© 2011 InsightSPI - Not For Distribution
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
Page 3© 2011 InsightSPI - Not For Distribution
How Do Companies Choose BI Platforms?
Features / Fuctionality
Cost RoadmapIncumbency
& 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
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How Do Companies Choose BI Platforms?
Features / Fuctionality
RoadmapIncumbency
& 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
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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 Express business segments• Has enabled the reallocation of tens of millions of dollars within and across the company
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How Do Companies Choose BI Platforms?
Features / Fuctionality
Cost RoadmapIncumbency
& Vendor Relationships
Alignment With IT
Strategy
Business Solutions
The Business Case for MS
Competitor’s acquisitions and industry consolidation has created uncertainty
MS roadmap messaging is strong
BI for the Masses, not the Massive
Futures look good, SharePoint/Excel/SQL
Blurring the boundaries between Data Integration, Analytics, Reporting, Dashboards, and Office Productivity
Competitor acquisitions make MS BI look more like an integrated platform
MS Issues/Gaps
ProClarity successor, PPS mis-steps, etc.
Gap in “Big Data”
Perception that MS is not enterprise-ready
Business value, align with vision
Innovation/Dependency on Office.next
Cloud is a wildcard
?
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How Do Companies Choose BI Platforms?
Vendors & Their Users in a Recessionary WorldVendors & 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
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How Do Companies Choose BI Platforms?
Features / Fuctionality
Cost RoadmapAlignment
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
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How Do Companies Choose BI Platforms?
“Typical” Global 2000 Company
Features / Fuctionality
Cost RoadmapIncumbency
& Vendor Relationships
Business Solutions
The Business Case for MS
Alignment With IT
Strategy
“Typical” Organizational View of BI/PM . . .
Reporting: Crystal
Scorecarding: Excelsius
Reporting: Siebel
OLAP: Oracle
Query: Qlikview
Reporting: Actuate
Forecasting: Hyperion
Data Mining: SAS
OLAP: Cognos
Reporting: Crystal
Excel Hell!!
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How Do Companies Choose BI Platforms?
Features / Fuctionality
Cost RoadmapIncumbency
& 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
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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 Server MSIS for data integration• Extendable across the org, planned for implementation as “single view” of Program metrics
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How Do Companies Choose BI Platforms?
Other MS negative IT perceptions . . . Other MS negative IT perceptions . . .
Low-cost = “cheap”
Still new to BI
Emotional IT bigotry
The usual suspects…scalability and security
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How Do Companies Choose BI Platforms?
Role of SharePoint in MS BI decisions . . .
Overwhelmingly Positive
Differentiation for Microsoft BI
Large SharePoint Install Base
leveraged for BI Upsell
Enables enterprise or large
BI deployments
Mitigates competitive
entrenchment
Barrier to entry when
customers do not own it
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How Do Companies Choose BI Platforms?
Features / Fuctionality
Cost RoadmapIncumbency
& 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
QlikView is user-friendly with mature feature tools and visualization Mega-vendors following, Tableau is getting there PowerPivot catching up (but require upgrades, compatibility)
Creates huge data governance/management challenges for IT Cloud/Hosted opportunities, particularly for industries with lots of data sources
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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’ and would 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
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How Do Companies Choose BI Platforms?
Features / Fuctionality
Cost RoadmapIncumbency
& 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
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How Do Companies Choose BI Platforms?
Questions?…Comments?
Scott Steinscott.stein@insightspi.com+1 (609) 937-6107