Livre Blanc Cloud et BI - english

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Livre blanc en version anglaise sur le Cloud et la Business Intelligence

Transcript of Livre Blanc Cloud et BI - english

  • 1. Cloud & Business Intelligence : A Winning Combination? White paper

2. 2013 WHITE PAPER #2 Cloud & Business Intelligence : A Winning Combination? Contents Cloud BI and Performance Management 5 A Renewed Interest? Departmental BI in the Cloud 9 Why did BI remain hermetic against the Cloud success? Enterprise BI in the Cloud 15 Cloud On Demand leads to new BI use-cases Conclusion 21 3. #3 White Paper Introduction According to Gartner and Forrester, the percentage of business intelligence (BI) applications deployed in the cloud is lower than 3%. Why is adoption so low and will the trend last? In 2006, Business Objects, then an independent vendor and the BI market leader, enthusiastically introduced This was its on-demand version the word cloud had yet to become a mainstream term of its reporting environment. A few weeks later, Cognos, the number two player in the market and also an independent at the time, followed suit with the acquisition of Celequest. Introduction 4. 2013 WHITE PAPER #4 Cloud & Business Intelligence : A Winning Combination? That was seven years ago, when the cloud BI market seemed at the dawn of a bright future, especially since the markets main leaders had anticipated its launch. But its expected heyday never came, despite the fact that during this time the cloud had managed to take other business application market segments by storm. These segments included CRM with 36% of its applications being delivered on software- as-a-service (SaaS) infrastructure (according to Gartner) and 70% of organizations expressing interest in such a delivery mode (according to Forrester); and human resources, where SAP and Oracle made an almost $6 billion investment between the two of them, not only to take over the already wide customer base of the two rising stars, Success Factors and Taleo, but to also try to protect their existing base from Workdays spectacular ascent. So, why did business intelligence remain on the sidelines of this evolution? Was it a matter of time? We could reasonably think as much in light of recent developments, both in terms of supply and demand. The market seems to be opening up to three BI sub-segments. In order of maturity, they are: performance management applications, the focus of the first part of this white paper; departmental BI applications, which will be discussed in the second part; and finally, even though this segment is the least mature of the three but none the less very promising, enterprise BI and big data, the subject of the last part. 5. #5 White Paper Cloud BI and Performance Management A Renewed Interest? In many companies, performance management (or EPM for enterprise performance management) is a discipline in itself, separate from business intelligence. It is generally used exclusively by the office of the CFO in order to cover key processes such as budget planning, fast close, statutory consolidation, and cost and profitability analysis. But EPM does not only apply only to finance. Cloud BI and Performance Management 6. 2013 WHITE PAPER #6 Cloud & Business Intelligence : A Winning Combination? It also helps implement best practices for forecasting, simulation, planning, analysis, strategy management, and regulatory and management reporting. And these practices are relevant across all business activities. For example, sales managers need to plan their sales targets, define sales territories and then assign those territories to the sales force so that they are as balanced as possible. They then need to measure the objectives achieved by each of their sales representatives. Marketing needs to plan campaigns, to allocate budgets and resources and ensure the return on investment of its campaigns; human resources need to plan payroll expenses and then define a performance measure framework that will apply to a majority of employees. Unfortunately, these increasingly time-consuming activities are often performed using barely formalized processes and Excel. Several factors single out the cloud as a suitable model for implementing performance management applications. First, the current EPM market revolves around three leading players that account for 70% of market share when it comes to mature solutions. This low competition in the market creates opportunities for innovative start-ups that naturally opt for the software-as-a-service (SaaS) model to penetrate the market. Then, EPM applications are process-oriented and, by nature, closer to software package solutions than development platforms. Yet, Saas applications have more success in the Cloud. Moreover, they are usually The EPM market, led by three main players, is not very competitive. Young promising start-ups launching Saas based suites are disrupting and shaking this market with innovation 7. #7 White Paper chosen by functional departments, that would more likely choose Cloud, rather than by IT, which is another one of the many appealing attributes of SaaS solutions. Finally, EPM is an application that is relatively isolated from the rest of the information system. Exchanging data with the core information system is indeed necessary, but the amount of data involved is relatively small and rarely requires real time sharing, making this cloud limitation irrelevant in this context. All of these favorable conditions explain the emergence of numerous EPM SaaS solutions. Some, such as Anaplan, Host Analytics, Adaptive Planning and Tidemark, offer a generic platform that can be adapted across business activities. With its recent EPM on-demand announcement, SAP has also jumped on the bandwagon. Oracle also announced the long-awaited Planning and Budgeting Cloud Service to be available by the end of 2013, providing budgeting, planning, collaborative forecasting and reporting as a service. IBM also released its BM Cognos TM1 on Cloud solution in September 2013. Others, like CallidusCloud for sales, have chosen to focus on one specific activity in the company. This category of highly specialized players is currently the target of the markets major providers, as evidenced by recent mega-vendor acquisitions of those players that have developed the performance management feature of their offerings. This includes SuccessFactors by SAP and Taleo by Oracle for human resources, Ariba by SAP for spend performance management (purchasing), Eloqua by Oracle Cloud BI and Performance Management Example of an Anaplan sales dashboard 8. 2013 WHITE PAPER #8 Cloud & Business Intelligence : A Winning Combination? for revenue performance management (marketing) and Varicent by IBM for sales performance management (sales and incentive compensation management). For this solution segment, though, the main drawback of the SaaS mode is that it accentuates the dividing line between performance management and business intelligence. And regarding specialized applications for HR, sales, marketing, etc., the SaaS model also strengthens activity-based silos. Let us point out that the offerings mentioned in this respect cover more than just performance management; they are often selected for a wider scope that encompasses process execution, planning and optimization. Security is another frequently mentioned concern. But most of the mentioned offerings, some of which are already mature, include solid security infrastructure. Besides, performance management is no more a delicate matter than customer relationship or human resources management, segments where cloud adoption is now a popular practice. Solutions dedicated to Cloud EPM Purchasing Intelligence Marketing perfor- mance management Sales performance management Human resources intelligence Global Solutions for EPM in the Cloud EPM on demand Planning and budgeting Cloud Services EPM on demand EPM actors in the Cloud classification 9. #9 White Paper Departmental Bi in the Cloud Departmental BI in the Cloud Why did BI remain hermetic against the Cloud success? Despite numerous attempts from providers, the cloud failed until now to secure a spot in the business intelligence market. However, there now is an increasingly pressing demand for it, particularly in the departmental applications area. The arrival of two new cloud specialists in the Gartner 2013 BI Magic Quadrant pinpoints the rise of those offerings. 10. 2013 WHITE PAPER #10 Cloud & Business Intelligence : A Winning Combination? Analytical Applications for each functional department If there was ever proof of cloud BIs worth, it is web analytics for clickstream analysis. According to Gartner, it would seem that 98% of such applications are deployed in the cloud. Web analytics is an ideal match for deployment in the cloud since data is sourced from outside the company, its format is standardized and the company usually wishes to cross-reference data gathered through its own website with external data from the Web. This success has led some of the BI market players to position themselves in analytics at the intersection of departmental BI and performance management applications. At the core of their solutions is a library of key performance indicators. Those indicators are categorized by activities and are often associated with connectors that source the content needed to calculate the value of those indicators from popular-off-the shelf enterprise applications packages, such as SAP, Oracle Applications or Salesforce. com. Some examples of such players are mirror42 (offering a library of more than 6,000 indicators on the site) and GoodData. Also, IBM recently announced Analytic Answers, a predictive analytics offering for small and medium-sized companies, with sector ranges such as insurance, retail or education. HubScan, a Google certified analysis tool for websites, AccordingtoGartner,98%ofWebAnalyticsapplications are in the Cloud. 11. #11 White Paper published and sold by HubSales Group Business & Decision, is another perfect exampl