Post on 08-Jan-2017
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Timo Elliott, December 2016
Analytic Trends
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Agenda
Top Trends
Supporting “Modern BI”
Big Data Architectures
Organizing for BI
Conclusion
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Lufthansa Systems LIDO
Lufthansa integrateddispatch operations
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TrenItalia
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Health indicators across fleet
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New Business Models
Kaeser Compressor, a global leader in air compressors
≈€500 million, 4,800 employees, 50 countries, partners in additional 60 countries
Modeling Example
E.g. Total energy consumption
• Aggregation of 10 sec values
• Calculation of typical consumption patterns
• Pattern associated with each compressor and day
Repeat for temperature, pressure, vibration, etc.
Predictive Examples
Model combines sensor readings and ERP data (location, type of usage, last service, etc.)• Status alerts: “Oil change / oil analyze / no action”• Predict machine failure 24 hours in advance
High-Level Technical View
Predictive Model(in-memory)
Long-term disk storage
User Interfaces
CRMERP
Event Stream Processing
all sampled
Customer Field Svs Sales R&D
DW
Benefits
Customers• Less downtime• Decreased time to resolution• Optimal longevity and performance
Kaeser• More efficient use of spare parts, etc• New sales opportunities• Better product development
“We are seeing improved uptime of equipment, decreased time to resolution, reduced operational risks and accelerated innovation cycles.
Most importantly, we have been able to align our products and services more closely with our customers’ needs.”
Kaeser CIOFalko Lameter
18
Top Trends
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Technology Priorities for 2016 and beyond
Rank Technology Trend
1 BI/Analytics2 Cloud3 Mobile4 Digitalization / Digital Marketing5 Infrastructure & Data Center6 ERP7 Security8 Industry-Specific Applications9 Customer Relationships
10 Networking, Voice, and Data Comms
Nine out ofeleven years2006-2016
ANALYTICS
#1
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BI Success …
“BI initiatives described as ‘successful’ dropped from 41% to 35% in 2015”
Techtarget, 2015
Source: TechTaget
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The Penetration of BI Remains Low
Penetration of business intelligence solutions
Under 10%
11-20%
21-40%
41-60%
61-80%
81% or more
0% 5% 10% 15% 20% 25% 30% 35% 40%
“Close to 40% of organizations report fewer than 10% of employees using BI. The two highest levels of penetration actually declined year over year. “
Enterprise systems are too slow
31% wait days or weeks for an average BI request
Enterprise BI: too little data, and too hard to use
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Business Users Do Not Fully Trust Enterprise Data
@timoelliott
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Do People Actually USE Data?
Room for improvement…
Most of the data users need isn’t in the system
“We found, on average, that 45% of the data business people use resides outside of the enterprise BI environments.
An astonishingly miniscule 2% of business decision-makers reported using solely enterprise BI applications.” - Forrester
55%
45%
In enterprise systemsNot in enterprise system
40% are using an equal amount or more of homegrown applications
So users turn to their own systems…
Supporting “Modern BI”
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Data-Driven Approach
Push:• From IT• Data-Driven• Data to Insight• Technology-Centric
A.S.P.I.R.E.
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Value-Driven Approach
Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric
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Combination Approach
Push:• From IT• Data-Driven• Data to Insight• Technology-Centric
Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric
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“Systems of Insight”
“Earlier-Generation BI Is No Longer Enough”
• Earlier-generation BI can’t keep up in the age of the customer.
• Agile BI and big data are the building blocks of systems of insight
Source: Forrester Research, Inc.
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You Need Both of These…
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Invest in Self-Service Data Discovery Tools
“Through 2020 spending on self-service visual discovery and data preparation market will grow 2.5x faster than traditional IT-controlled tools for similar functionality”
– IDC, 2015
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Invest in Self-Service Data Preparation
SAP Agile Data Preparation
I.e., “Data Blending” — combine, merge, cleanse data
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Invest in Predictive Analytics
Model deployed using In-Database-Apply
Customer Database
Hancock, John M 38 D Y 4.2 N Y
Doe, Jane F 45 M Y 9.4 N N
Red, Simply F 18 S N 2.1 N Y
SQL Dataset w/ Scoring
Business Users can get on-the-fly scoring without even knowing they are using predictive algorithms
BI Artifact(or even just a dataset)
SAP BI (3.x/4.x)
Embedded into any application
SQL
(Or any other application)
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SAP BusinessObjects Cloud
Organizing For BI
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What Is a BICC?
A Business Intelligence Competency Center (BICC) is a cross-functional organizational team that has defined tasks, responsibilities, roles, and skills for supporting and promoting the effective use of
Business Intelligence across an organization
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The Basic BICC Setup
Business Intelligence that is:• Standardized• Repeatable• Clearly understood across the company
Regular, well-communicated releases• Jointly agreed between Business and IT• Facilitates the business areas planning and
scheduling of report requests
A steering group of senior management• Majority business leaders with strong
representation from IT
Clear measurements to follow up performance• Usage and user feedback
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Basic Goal: Make BI More Strategic and Cost Effective
Reactive
Maintenance
Strategic
Reactive
Maintenance
Strategic
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BICCs Bring Big Benefits
Every winner of a BI Best Practice Award has a BICC
Decreased software costs
Decreased staff costs
Better understanding of the value of BI
Increased decision-making speed
Increased business user satisfaction
Increased usage of Business Intelligence
24%
26%
45%
45%
48%
74%
Organizations with a BICC see the following benefits:
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BICC Key Skills
@timoelliott
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BICC Key Skills
Store, maintain, integrate dataImplement changes
Summarize and analyzeDiscover and explore
Link to corporate strategyAlter processesPrioritize and set expectations
Gather requirementsEvangelizeMonitor satisfaction
Interpret resultsDevelop alternatives
Identify dataExtract dataValidate data Engineering skills
Analysis skills Relationship skills
Leadership skills
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The Main Functions and Responsibilities of a BICC
Source: Capgemini BICC Study 2012
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Functional Areas of the BICC
TextBusiness
Intelligence Program
BI Delivery
Data Stewardship
Training
Advanced Analytics
Support
Vendor Management
Data Acquisition
Executive Sponsor
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Embrace Shadow IT
Don’t fight back — be a co-conspirator …
40% of users are using an equal amount or more of homegrown applications
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Updating the Traditional BICC to Include Community
A Business Intelligence Competency Center (BICC) is a cross-functional organizational team that has defined tasks, responsibilities, roles, and skills for supporting and promoting the effective use of Business Intelligence* across an organization
* I.e., Analytics, Big Data, Data Science, etc.
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It’s About Culture Change First and Foremost
From Power to Empower
From Collection to Connection
From Control to Trust
New BICCs are about providing good governance and encouraging best practice rather than providing reports and analytics
Conclusion
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“Judge a man by his questions rather than his answers.”
Voltaire
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It’s All About the Relationship!
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Thank You!Timo ElliottVP, Global innovation Evangelist
Timo.Elliott@sap.com @timoelliott