Ciber Bi Tends

Business Intelligence Industry Trends
Pittsburgh Business Objects User Group 7/12/2007 James R. Stevens CIBER Solutions Consultant JRStevens@ciber.com
7/19/2007 1
Topics
!BI Industry Trends - years ago !BI Today - Moving from Tactical to Strategic !My Top 10: BI Industry Trends for 2007+
"Gartner Magic Quadrants "BI Platform Defined "Forrester Wave "Final Note on Gartner Magic Quadrants
!Business Intelligence 2.0 !Whats that mean for BusinessObjects? !Q&A

2
BI Industry Trends - years ago

!Executive Information Systems !Artificial Intelligence & Data Mining !Database-enabled OLAP !Natural Language Queries !BI Extranets BI for the Masses !Offshore outsourcing for BI and DW !Zero footprint (web-based) BI Tools !Single Platform for Reporting, Ad-hoc Query & Analysis
Contributing Source
BI Today - Moving from Tactical to Strategic

! Business Intelligence is a growing priority
" BI is the top priority in IT spending over the next 12 months " More than 2/3 of IT managers are planning to invest in BI tools or analytical applications during the next 12 months " Number of BI users expected to increase 130% in next 18 months " Number of Dashboard users expected to increase by 90% in next 18 months " Companies are standardizing on fewer vendors but want an independent player " Value of BI is cross platforms, cross databases, cross applications " Customers expect BI innovation to be led by BI companies " 2 out of 3 companies plan to move to enterprise BI solutions within 3 years " Relevant, industry-specific solutions, not just generic tools " BI is proven to improve business performance
Source: Various industry reports
My Top 10: BI Industry Trends for 2007+

1. Where are all the minnows? 2. Almost out of juice 3. Results 1 - 10 of about 217,000,000 for BI [definition]. (0.06 seconds) 4. The BI Governator emerges 5. 6. 7. 8. 9. The SAaS thats not a Institute Its the tools fault Wasnt that RED a minute ago? Meeting rescheduled in the boardroom A service is a unit of work done by a service provider to achieve desired end results for a service consumer 10. Solution to World Hunger
Top 10: BI Industry Trends for 2007

! Trend #1 - Where are all the minnows?
" Another major independent BI vendor will be acquired by a software giant (IBM, Microsoft, SAP) accelerated by Oracles acquisition of Hyperion
! Trend #2 - Almost out of juice
! Trend #3 - Results 1 - 10 of about 217,000,000 for BI . . .
! Trend #4 - The BI Governator emerges
! Trend #5 - The SAaS thats not a Institute
Trend #1 - Where are all the minnows?

! Rumors of Consolidation:
" Microsoft to buy BusinessObjects " SAP to buy BusinessObjects " IBM to buy Cognos " NCR Teradata to buy Microstrategy " HP to buy ??
! I dont see any more consolidation with the big best-of-breed BI vendors this year! ! Why?
" Companies would have to pay too high a price.
! Oracle agreed to pay $52 per share for Hyperion, a premium of 21% (3.7x times revenues) ! BOBJ too big a fish for anyone at this point
" Microsoft not in market at these prices

! They have a great story to tell with its SQL Server 2005, SharePoint Server 2007, ProClarity and the upcoming release of Performance Point Server.
" Remaining players wont want to merge based on hatred as competitors.

7
Who are the fish?

! Pure-play Vendors
" Actuate " Business Objects " Cognos " Information Builders " Hyperion (Now Oracle) " MicroStrategy " SAS
! Up-and-coming Vendors
" Applix " arcplan " Fast " Panorama Software " Qliktech " Spotfire (Now TIBCO)
! Megavendors (large multipurpose SW vendors)

" Microsoft " Oracle " SAP
8
Gartner Magic Quadrant BI Platforms
TIBCO Software
What is a Business Intelligence Platform?

!Enables users to build applications that help organizations learn and understand their business. !Gartner defines a BI Platform as a software platform that delivers 12 capabilities organized into 3 categories:
"Information Delivery is the core focus of most BI projects today, but we see an increasing need to focus more on "Analysis to discover new insights, and on "Integration to implement those insights.
10
Gartner: BI Platform Capabilities
Integrated Search
Text Mining of unstructured data
11
Enterprise Reporting - BI Platform

Information Delivery:
Presentation
BI Portal Scorecard BI Development Environment Dashboard Workflow & Collaboration BI Integrated Search
Event Channel (Notification, Publish, Subscribe, Distribution)
Reporting
BI Platform
Dashboards Ad-hoc Query Integration: BI Infrastructure

Metadata Management
Microsoft Office Integration Predictive Modeling & Data Mining Text Mining (Unstructured Data)
Analysis
Reporting
Desktop OLAP
Ad hoc Query
Visualization Tools
BI Platform Architecture Microsoft Integration
OLAP
Multidimensional OLAP
Relational OLAP
Metadata Management Development Environment Workflow & Collaboration Integrated Search Analysis: OLAP Information Visualization Predictive Modeling & Data Mining Text Mining (unstructured Data) Scorecarding
Data Warehouse / Data Mart
Master Data Management
Data Mart Data Mart
Data Mart Data Mart
Data Mart Data Mart
BI DW Load Repository Stats
Enterprise Data Warehouse Point-in-time

Extract Transform Load(ETL)
Operational Data Store Real -time
Metadata DW/BI Repository User Stats
DW Development Environment
DW/BI Audit
Independent Data Mart
Architecture
Integration Brokers
Source Systems
Source of Record Forecast Planning ERP CRM SCM Legacy
Excel
12
Shuffling Magic Quadrants Vendor Trick
13
Gartner Magic Quadrant CPM Suites
SAP
BusinessObjects
14
One last note on Magic Quadrants

!Conflict of Interest?
"BusinessObjects is a portfolio company of Silver Lake Partners, an investment firm that also owns a substantial, publicly disclosed interest in Gartner, Inc. and has 2 seats on the 10 member board of directors
!Stated Policy:
"Gartner research is produced independently by the Companys Analysts, without the influence, review or approval of investors, shareholders or directors.
!For more information:

"See Guiding Principles on Independence and Objectivity www.gartner.com
15
Personal Bias
! Magic Quadrant for Business Intelligence Services, North America, 2007 ! Strengths
" Focus on repeatability of standard service offerings. " Clients cite consistent use of methodology for project management and delivery as key success factors. " Capabilities in infrastructure and application layers of the framework.
16
Forrester Wave: BI Analytic Reporting, Q1 06
Oracle
17

" Another major independent BI vendor will be acquired by a software giant (IBM, Microsoft, SAP) accelerated by Oracles acquisition of Hyperion - Myth

" The price of BI platforms is being pushed downward by several forces including the Microsoft SQL Server 2005 impact and open source BI vendors
! Trend #5 - Why did we develop that same report 10 times?
18
Trend #2 - Almost out of juice

! Traditional pure-plays are struggling to justify their $100K - $300K per CPU price points. ! Competition from Megavendors
" Microsoft BI:
! SQL Server 2005 Integration Services Reporting Services Analysis Services Data Mining ! SharePoint Server 2007 Excel Services ! Office 2007 Excel ! ProClarity $800+ (>$200) Will become downloadable Add-ins for Excel (free!)
" Bundled with Application Suites like SAP, Oracle
! Open source BI vendors (e.g. Jaspersoft, Pentaho, Eclipse BIRT)

19



" The use of search engines on BI will grow to try and make it easier to find and access metrics and reports through a familiar easy to use interface (i.e. Google)
! Trend #4 - The BI Governator emerges ! Trend #5 - Why did we develop that same report 10 times?
20
Trend #3 - Results 1 - 10 of about 217,000,000 for BI

! The use of search engines on BI will grow to try and make it easier to find and access metrics and reports through a familiar easy to use interface (i.e. Google) ! Headlines:
" Business Objects Announces BusinessObjects XI Release 2 Productivity Suite
! Business Intelligence Search
...
" Business Objects Announces Support for Google Search Appliance and Google Desktop " Business Objects to Acquire Text Analytics Leader Inxight Software
! Integration of BI with enterprise portals and in particular Microsoft SharePoint will become increasingly popular
21
Trend #3 Integrated Search Future?

! User types:
! Search engine tries to locate existing report ! If not found, an algorithm ties words to metadata
" Sales is a Measure " 6/29/2007 is the Date dimension " PA is the Geography dimension
! Automatically generate a query ! Return a report ! All this based on the search string
22




" Increased auditing, security and privacy concerns BI Usage Governance
23
Trend #4 - The BI Governator emerges

! Increased auditing, security and privacy concerns
" Sarbanes-Oxley Act of 2002 (SOX) " Health Insurance Portability and Accountability Act (HIPAA) " Personal Information Protection and Electronics Document Act (PIPEDA)
Enterprise Security
BI Developer
! BI Usage Governance
" Ensuring the Effectiveness of BI Programs (ROI)
A Successful BI governance function ties business and information technology Business Intelligencemanage and of Excellence BICoE together to help enterprises Center integrate ongoing investments in BI, allocate BI resources, prioritize projects, and minimize risks associated with BI Business IntelligenceSolutions LLC implementations. Knightsbridge Competency Center - BICC
24
BICoE Workshop: Why this is different?

! Not just Lecture or Theory ! Hands-on Workshop (assume participants will bring laptops) ! Innovative approach: Nothing like what youve previously read about Competency Centers
" BICoE Maturity Model (upcoming CIBER white paper) " Balance Scorecard Approach " ITIL Focus with Service Catalog
! Upon Completion of workshop, participants will take home with them Mission, Strategy Maps, Start of a Service Catalog, Opportunity Analysis and a Roadmap. ! Templates provided on a thumb drive to be given out at start of workshop. ! CIBER SharePoint Site for future collaboration
25
CIBER BICoE 1-Day Workshop: Fall 2007

! 8:00 8:15am:
" Registration, continental breakfast
! 1:00 2:00:
" Lecture: Overview of ITIL and how it relates to BICoE " Activity: Create your BI Service Catalog
! 8:15 8:30am:
" Introductions, objectives and expectations
! 8:30 9:00am:
" Discussion: Review the results of your online BICoE Maturity Model Assessment.
! 2:00 2:30:
" Lecture: Operating (organizing & staffing) the BICoE
! 9:00 10:00am:
" Lecture: A Balanced Scorecard approach in establishing your BICoE.
! 2:30 2:45: Break ! 2:45 3:45:

" Discussion: How to Market & Communicate the BICoE
! 10:00 10:15am: Break ! 10:15 12:00 noon

" Activity: Define a BICoE Mission Statement " Activity: Create your BICoE Strategy Map(s)
! 3:45 4:30:
" Discussion: Measuring the success of your BICoE " Activity: Identify and create a BICoE Roadmap
! 4:30 5:00:
" Workshop Wrap-up
! 12:00 1:00pm
" Lunch
26




" Increased auditing, security and privacy concerns BI Usage Governance

" Software-as-a-Service (SaaS)
27
Trend #5 - The SAaS thats not a Institute

! Software-as-a-Service (SaaS) On-Demand BI
" Gartner says that SaaS offerings will account for nearly 25% of all software revenues by 2011.
! http://www.crystalreports.com/
" Share unlimited reports over the Web - schedule reports, alert users, host multiple content types and more. All with nothing to deploy and no dependence on IT.
! http://www.nsite.com/ ! Cognos Now!

" A family of operational business intelligence and performance management solutions available as appliances or hosted software-as-aservice (SaaS) models.
! Other BI SaaS Vendors:

" http://www.oco-inc.com/ " http://www.hostanalytics.com/
28
What is SaaS?
! A software application delivery model where a software vendor develops a web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet. ! Key characteristics of software delivered by SaaS
" Network-based access to, and management of, commercially available (i.e., not custom) software " Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the Web " Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a oneto-one model, including architecture, pricing, partnering, and management characteristics " Centralized feature updating, which obviates the need for downloadable patches and upgrades Source: IDC
29
Why this is a growing Trend?

! The Promise of SaaS:
" Alleviates installation/deployment concerns
! No purchasing or installing of additional hardware and software ! No hardware configurations
" Relieves maintenance anxiety

! Upgrades are performed automatically ! Systems are monitored continuously
" Improves service levels

! Includes both BI domain knowledge and systems knowledge ! Vested interest in continued use in the service - support must be exceptional
" Lowers the total cost of ownership " Utilized licenses more efficiently (pay as you go) " Provides quicker time to value " Delivers faster achievement of business objectives " Lowers your implementation risk " Supports best practices for you
! A C-Level person reading some Harvard Business Review or CIO Magazine article will emphasize SaaS as an important strategic initiative and it will get rammed down the throat of a BI Organization
30
Is the Promise a Reality?

!Consider
1/2
31
Is the Promise a Reality?

!The Starter Edition is limited to small groups.
"Max: 10 users, 60 Reports (2GB)
2/2
!The Professional Edition has a MSRP of $29.95 USD per user PER MONTH.
"Which is $359.40 per user per year.
!Anyone think that Lowers the Total Cost of Ownership (TCO)?
32
Top 10: BI Industry Trends for 2007 (cont)

! Trend #6 - Its the tools fault
" Migration from one BI tool to another. Unmet expectations
! Trend #7 - Wasnt that RED a minute ago?
! Trend #8 - Meeting rescheduled in the boardroom
! Trend #9 - A service is a unit of work done by a service provider to achieve desired end results for a service consumer ! Trend #10 - Solution to World Hunger
"
33
Trend #6 - Its the tools fault

!BI Tool Churn
"Migration from one BI tool to another
!Example
"Company migrating from Cognos to Information Builders "Right across river, migrating from Information Builders to Cognos
!Why?
"Unmet expectations "If your BI Implementation is not going well or has a bad rap . . . Blame it on the tool [and select another]
34
Trend #6 - CIBER BI Assessment

!Unbiased, fresh new look at your BI environment
Business Centric
Business Review Business Strategy Enterprise Performance Management People Analytic Applications Business Intelligence Platforms Technical Architecture Review Project Planning and Methodology Review Technical Architecture Process Organizational Review Information Architecture Review
Center of Excellence (Competency Center)
Information Architecture
35 IT Centric


" Scoring and real-time decision making (either event-driven or ondemand) under a Performance Management initiative.

"
! Trend #9 - A service is a unit of work done by a service provider to achieve desired end results for a service consumer
"
! Trend #10 - Solution to World Hunger

"
36
Trend #7 - Wasnt that RED a minute ago?

!Scoring and real-time decision making (either event-driven or on-demand) under a Performance Management initiative. !Demand for Real-Time Operational BI solutions
"The real-time connection to federated sources (Operational Support Systems) through web service agents and the direct updates Operational Dashboard measures.
!As much as vendors want to promote this from a BI Tool perspective, Operational BI needs to be initiated as an overall Enterprise Information Management architecture.
37



" C-Level Involvement in BI initiatives
"

"
38
Trend #8 - Meeting rescheduled in the boardroom !C-Level Involvement in BI initiatives

"A 2006 Knightsbridge survey of 359 senior executives found a high degree of C-Level involvement in BI initiatives ">50% of respondents named the CEO as top decision maker "CFOs in particular are becoming more involved as sponsors of BI initiatives. The bring business clout to BI initiatives along with a more rigorous approach to measuring the value of BI investments. "C-Level involvement in BI initiatives is a sign that enterprises recognize the business value of BI and are serious about aligning BI with their most important business objectives.
Source: Top 10 trends in business intelligence for 2007 39



" BI Service Oriented Architecture SOA

"
40
Trend #9 - BI Service Oriented Architecture

!Moving away from large-scale Application Development to more smaller development and assembly of heterogeneous components !BI Vendors are supporting SOA and have rearchitected their platforms to support this trend
"The BusinessObjects XI platform is built on a modern, Service Oriented Architecture (SOA), . . . . "Employing a Services-Oriented Architecture (SOA), MicroStrategy Intelligence Server . . . "WebFOCUS is the first and only business intelligence solution on the market today that provides full SOA support
!The Convergence of BI and SOA

41
The Convergence of BI and SOA

"Business Intelligence
! Enterprise Business Intelligence solutions require that data be both stored and presented with business context ! Metadata provides the business with an unambiguous definition of content so that information can be rationalized ! Users are requiring access to valuable business information in various methods including: Queries, dashboards, metrics, scorecards, events, ! Quality and governance are important considerations
"Services Oriented Architectures

! SOA solutions require that data be stored and presented with business context ! Units Of Work are a requirement for an SOA solution and this demands data abstraction using metadata ! Real-time delivery and integration is a basis for SOAs ! Quality and governance are required for application and business process integration
Source: Webinar: The Convergence of Business Intelligence and the Service Oriented Architecture 2007 RCG IT, TDWI, and Cognos. All rights reserved.
42
BI SOA Opportunities
! Convergence of SOA & BI disciplines
" New job titles and new roles
! An SOA-enabled BI infrastructure could provide seamless access to both batch and real-time data integrated across operational and analytical sources ! Master Data Management and Data Governance efforts must precede SOA adoption to provide a common language that supports integration. ! A new breed of powerful integrating metadata is now required. It should include:
" Business (Definitions, Access Rights, Services, Processes, ) " Operational (Load Timings, Controls) " Technical (Environmental) " Taxonomy & Models
43



" BI Service Oriented Architecture SOA

" Master Data Management
44
Trend #10 - Solution to World Hunger

! Master Data Management (MDM) is a Data Integration Practice ! The business case for MDM is built on the introduction of a system to enhance the consistency, accountability and responsibility of the quality and integrity of master data domains throughout the entire organization not just those contributing source systems to the BI endeavor. ! In other words, BI projects address data quality and consistency as a separate system, whereas MDM addresses data quality and consistency as a domain management solution for all applications (upstream transaction processing systems and downstream analytical systems). ! The business case for MDM should, therefore, be built on looking for projects that have a common need for a single view.
Source: Master Data Management is Inevitable... So Get Ready, Philip Russom 45
What is Master Data Management?

! Decouples master information from individual applications ! Becomes a central, application independent resource ! Simplifies ongoing integration tasks and new app development ! Ensure consistent master information across transactional and analytical systems ! Addresses key issues such as data quality and consistency proactively rather than after the fact in the data warehouse
46
MDM Components
!People / Organization
"Data Ownership, stewardship, roles and responsibilities
!Process
"Create, Update, Discontinue, Archive, Purge
!Technology
"1. Code Maintenance (supporting business requirements) "2. Data Quality (profile, analyze (gaps), cleanse and monitor) "3. Data Integration (load, distribute, replicate and retrieve) "4. Metadata (business and technical documentation)
47
My Top 10: BI Industry Trends for 2007+

1. 2. 3. 4. BI Industry Consolidation Myth Lower BI Platform SW License Cost BI Search Integration BI Governance
5. Software-as-a-Service 6. BI Tool Churn 7. Operational BI (Real-time Dashboards) 8. C-Level Involvement in BI Initiatives 9. BI and SOA converge 10. Master Data Management
48
The 2.0 craze

! Web 2.0
" A phrase coined by O'Reilly Media in 2003 and popularized by the first Web 2.0 conference in 2004, " Refers to a perceived second generation of web-based communities and hosted services
! Where 2.0
" Location is going everywhere
! Identity 2.0
" The next generation of Identity
! Library 2.0
" Services for the next generation library
! Business 2.0
" Technology news and opportunities - Business 2.0 on CNNMoney
! Enterprise 2.0
" The Collaborative Technologies Conference
! Mobile 2.0
" Exploring the future of Mobile
! Women 2.0
" Women 2.0 aims to provide a support network for young women entrepreneurs
49
. . . And Yes, - Business Intelligence 2.0

!An upcoming conference
"Shared Insights Business Intelligence 2.0 Conference, October 16-18, 2007, San Diego, CA
!But wait . . .
"Overlaps with the BusinessObjects Insight Americas 2007, October 15 18, 2007, Orlando, FL
!Must have been canceled
50
BI 2.0
! Its a term that is naturally growing to describe the next generation of BI. ! It represents a collection of innovative, dynamic, adaptable and collaborative technology approaches, BI functionality, and licensing models that will truly bring BI to the masses, making information available anytime, anywhere to anyone. Source: LOGIXML, INC.
51
2006 SeeWhy Software
BI 2.0 Characteristics
! BI 2.0 integrates events
" The inclusion of events as something to be tracked, analyzed and used " "event-driven BI" to analyze streams of data, keep running totals without an intermediate storage mechanism.
! BI 2.0 delivers insight

" The need to deliver insight not information or reports " The idea that events or data are not interesting but insights derived from them, especially insights derived rapidly, are.
! BI 2.0 delivers action without intervention

" A more automated handling of the consequences of insight - the idea of taking corrective action without human intervention.
! BI 2.0 is Real-time
" All of this must be in real-time or close to it. There is a lot of talk about reducing all aspects of latency close to zero
! BI 2.0 is based on SOA and Web 2.0

" Like most things new BI 2.0 is expected to be service-based and Web 2.0 technologies are expected to impact the UI for BI 2.0
52
BI 2.0 or The 5 Revolutions of BI
COPYRIGHT 2007 BUSINESS OBJECTS S.A. ALL RIGHTS RESERVED.
53
BI 2.0 The USER Revolution
54
BI 2.0 The PLATFORM Revolution
55
BI 1.0 The NETWORK Revolution
56
BI 2.0 The NETWORK Revolution
57
BI 2.0 The APPLICATION Revolution

!The future high-value applications are information-centric !BI and PM are converging to become a single platform !BI becomes operational
58
BI 2.0 The COMMUNITY Revolution
59
What does all this mean for BusinessObjects?
60
Q&A
!James R. Stevens !CIBER Solutions Consultant !JRStevens@ciber.com !412-322-4494 x113
61

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Business Intelligence Industry Trends

!Business Intelligence 2.0 !Whats that mean for BusinessObjects? !Q&A

BI Industry Trends - years ago

BI Today - Moving from Tactical to Strategic

My Top 10: BI Industry Trends for 2007+

Top 10: BI Industry Trends for 2007

! Trend #2 - Almost out of juice

! Trend #3 - Results 1 - 10 of about 217,000,000 for BI . . .

! Trend #4 - The BI Governator emerges

! Trend #5 - The SAaS thats not a Institute

Trend #1 - Where are all the minnows?

" Microsoft not in market at these prices

" Remaining players wont want to merge based on hatred as competitors.

Who are the fish?

! Megavendors (large multipurpose SW vendors)

Gartner Magic Quadrant BI Platforms

What is a Business Intelligence Platform?

Gartner: BI Platform Capabilities

Text Mining of unstructured data

Enterprise Reporting - BI Platform

Dashboards Ad-hoc Query Integration: BI Infrastructure

BI Platform Architecture Microsoft Integration

Data Warehouse / Data Mart

Master Data Management

Data Mart Data Mart

Data Mart Data Mart

Data Mart Data Mart

BI DW Load Repository Stats

Enterprise Data Warehouse Point-in-time

Operational Data Store Real -time

Metadata DW/BI Repository User Stats

Independent Data Mart

Source of Record Forecast Planning ERP CRM SCM Legacy

Shuffling Magic Quadrants Vendor Trick

Gartner Magic Quadrant CPM Suites

One last note on Magic Quadrants

!For more information:

Forrester Wave: BI Analytic Reporting, Q1 06

Top 10: BI Industry Trends for 2007

! Trend #2 - Almost out of juice

! Trend #3 - Results 1 - 10 of about 217,000,000 for BI . . .

! Trend #4 - The BI Governator emerges

! Trend #5 - Why did we develop that same report 10 times?

Trend #2 - Almost out of juice

" Bundled with Application Suites like SAP, Oracle

! Open source BI vendors (e.g. Jaspersoft, Pentaho, Eclipse BIRT)

Top 10: BI Industry Trends for 2007

! Trend #2 - Almost out of juice

! Trend #3 - Results 1 - 10 of about 217,000,000 for BI . . .

Trend #3 - Results 1 - 10 of about 217,000,000 for BI

Trend #3 Integrated Search Future?

Top 10: BI Industry Trends for 2007

! Trend #2 - Almost out of juice

! Trend #3 - Results 1 - 10 of about 217,000,000 for BI . . .

! Trend #4 - The BI Governator emerges

! Trend #5 - The SAaS thats not a Institute

Trend #4 - The BI Governator emerges

BICoE Workshop: Why this is different?