Future of Business Intelligence

8/10/2019 Future of Business Intelligence

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UnileverJuly 2007, UK

The future of BusinessIntelligenceNeil Chandler Research Director


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2007 Gartner, Inc. and/or its affiliates. All right s reserved.

BI is the #1 item on the CIO agendaCompanies have too much BI software

Technology cannot solve political issuesNo compliance with risky data

Who takes care of your data?

Managing information with spreadsheets

What is the single version of the question?

BI is the #1 item on the CIO agendaCompanies have too much BI software

Technology cannot solve political issuesNo compliance with risky data

Who takes care of your data?

Managing information with spreadsheets

What is the single version of the question?

A few observations


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The Biggest Fatal Flaws of BI!

Our enterpriseapplicationvendor willdo it all Data quality

problem wedon't haveone

Gimme adashboard

We canoutsource thiswhole darnBI thing Darwin was

wrong: BIdoesn't evolve

If you build it,they will come

Managers

need to"dance withthe numbers"


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Key Issues Trends: Which technology and business trends

will have an impact on BI in the next five years? Business: How can organizations leverage BI for

competitive advantage? Market: How will the market for BI solutions

develop?


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Market Trends Retail

- Industry consolidation and Global expansion- Need for faster response to consumer demand- Need to manage demand and supply across multiple

channels

- Need to better manage margins, control shrink and reduceprice erosion- Increasing regulatory control and ethical considerations

All Industries- Financial Reporting (XBRL, Corporate Social Responsibility)- Performance Management- Information Management


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Codes and Tags will transform information

exchange

QRcode
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BI Trend No. 1Portfolio rationalization and BI platform standardization

have the highest priority in many organizations;however, actual migration is cumbersome.

V e n d o r A

V e n

d o r

B

V e n d o r C

S t a n d a r d

B I P l a t f o rm


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BI Trend No. 2BI is increasingly deployed to large numbers of users,

including users outside the firewall, such aspartners, suppliers or customers.


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BI Trend No. 3There is a marriage between enterprise applicationsand business intelligence, with vendors providingmore integrated solutions.

B I

E R P


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BI Trend No. 4Organizations are increasingly using predictive

analytics for planning, forecasting and otherfuture-oriented requirements.

C o s t F r a u d P r o f i t M a r g

i nQu a li t y

R e v e n u e


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A Wide Portfolio of

Business Intelligence Capabilities

Scorecards

WhatHappened?

Why Did itHappen?

What WillHappen?

Reporting

Ad HocQuery

Visualization

BAM

PredictiveModeling Data

Mining, Scoring

Spreadsheet

Potential Business Impact: Low Medium High Highest

Level of Insight

Event

Levelof Interaction

Interactive

Scheduled

Dashboard

OLAP

What IsHappening?

InformationDelivery

Analysis


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Todays reality: Pockets of success and

silos of technology and skills

Information Apathy:

Big investments not much use

Analytic ObsessionSilos of applicationsand expertise

BI infrastructureand technology

BI Maturity CurveIdealTypical

Information Anarchy

Spreadsheets

Pervasive BI or

BI for Masses Driving BusinessTransformation

Use and analysis of information


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A new, broader BI framework is needed2012: Business Intelligence and PerformanceManagement Driving Business Transformation

2004: IT Driving BI

BI Platforms

Data Warehouse

Decide

Align

Measure

Optimize

Innovate Discover

MeasureBusiness Strategy

People Process

Analytic Applications

BI Platforms

InformationManagementInfrastructure

PerformanceManagement


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What's Driving Interest in

Information Management? Across the Enterprise

Process SimplificationEliminate redundancy

Drive to standardizationPromote reuse and data quality

ComplianceReduce risks with conflictingsources

Transparency of information"Infoglut"Manage expanding volumeand velocityUncontrolled unstructuredcontent

Vendor ConsolidationSpend less on samefunctionality/technology

M&AReduce integration burdens

EfficiencyEnterprise Agil ity

Sense and respond

Consistency and accuracyContinuous information flowsRapid process orchestration

Real TimeClosed-loop analytics

Immediate integration withpartners, suppliers

Single ViewConsistent and holistic viewacross all channelsRelationship management

Revenue OptimizationSupport top-line growth oncross-sell/upsellLeverage global purchasingpower

Differentiation

Trx.

DocumentsMedia

Customers Employees Partners

Databases

Orgs.

Financials

Products

WebContent

ReportsE-Mail

Management

Enterprise

Information

Across All Content


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Deriving Value From EnterpriseInformation Leading organizations incorporate information assets into

their business intelligence.- Treat information as an organizational asset

Optimize availability and quality Balance accessibility vs. security Improve information supply chain performance

and integration Squeeze more value out of information Optimize and eliminate overlapping processes Improve enterprise performance Trade information for goods and services Strengthen enterprise relationships (partners,

employees, customers/constituents, suppliers)

Information must be managed as a currency save it,invest it, spend it, manage it and account for it.


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Drivers and Inhibitors

Skills- Lack of best practices and methodologies

to manage a complex and pervasive set ofBI capabilities

- Users cant understand the analysis andcorrectly interpret the results

Stabili ty and flexibil ity of businessprocesses

- Low process maturity- Lack of closed-loop process management

Silo think- Of infrastructure, applications, definitions,

rules, calculations, etc.- NIH syndrome

Home grown, aging and proprietary

technologies- Spreadsheet as information systems ducttape

Sponsorship- Limited vision and perceived business

value/impact

Consumerization of use of information- High expectation of ability to use

and access Standardization/commoditization

- Basic BI platform functionality(i.e., reporting, query, dashboards) broadlyavailable & good enough

Modularization- BI functionality becomes more

componentized and service-oriented- Users and developers can more easily

customize- Users can add value in pursuit of

self-interest Networked collaboration

- Fosters environment of innovation andcontribution- Ability to easily share and manage user

insights and contributions across widenumbers of users and applications (not justinternally, either)


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Worldwide growth continues

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2004 2005 2006* 2007 2008 2009 2010

"Pure Play BI" - 5.7% CAGR "Up and comers" - 7.2% CAGR

"Mega-vendors" - 20.1% CAGR

Millions of $ *2006 market sizes are preliminary

Top market share Business Objects/Cartesis

Cognos SAS Inst.Significant influence/presence in installed base

Oracle/Siebel/Hyperion SAP/Pilot/OutlookSoft IBM "missing in action"

as BI platform vendor Microsoft

CPM and BI vendors mergeOpen Source on the edge ofthe radar Software as a Service

Worldwide Total Software Revenue By Vendor Focus


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Magic Quadrant Business IntelligencePlatforms, 1Q07

challengers leaders

niche players visionaries

completeness of vision

a b i l i t

y t o

e x e c u

t e

challengers leaders

niche players visionaries

completeness of vision

a b i l i t

y t o

e x e c u

t e

(From "Magic Quadrant for Business Intelligence Platforms, 1Q07 26 January 2007)

As of January 2007

SAP Business ObjectsCognosMicrosoft

Hyperion Solutions

Information Builders OracleSAS

MicroStrategy

QlikTech

Actuate

Spotfire Applix

Panorama Software

arcplan

Mega Software

Growth: +54%Mkt. Share: 22%

Pure Plays

Growth: +7%

Mkt. Share: 64%

Up and Comers

Growth: +25%Mkt. Share: 4%


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What can you do on Monday to plan forthe future?

Business Strategy- Define the key drivers and measures for

business transformation.

- Begin socializing a broader framework for a BIand performance management continuum.

People Strategy

- Assess your maturity and commitment to BI andperformance management.

- Define an appropriate organizational structure tocreate a culture that supports and manages BI.

Technology Strategy- Take advantage of the competitive market to buy

BI at lower prices.

- Be prepared for changes in technology and

products


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UnileverJuly 2007, UK

The future of BusinessIntelligenceNeil Chandler Research Director

Future of Business Intelligence

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