At the Orlando Reporting and Analytics conference a customer just spoke about the two most important things that make a BI successful.
1) The first is to have a solid BI Strategy
2) The second is total Business participation
Is that a conincidence
This is BI Valuenomics from radio VOE (Voice of Experience)
Sep 11, 2010
Despite the crunch BI market grew in 2009
In 2008 the global BI market was at $8.8 billion. In 2009 it grew by 4.2 percent to $9.3 Biillion.
Based on the current stats that 45% of BI initiatives do not achieve 'business expectations' as the time of Go-live and that it costs companies anywhere from 3 to a 100 times more to fix a BI problem after 'Go-Live'
And, if all other things remain constant then in 2008 we mutually wasted $3.96 Billion, and in 2009 we may have collectively wasted $4.185 Billion.
In 2010 BI also got relegated from its long standing #1 priority of 1,527 global CIO's to #5. However, every CIO's interviewed by the author still agrees that Reports, Analytics and Informatics remain a critical business requirement in every enterprise.
Gartner stats on September 8, 2010 that Meeting Business Expectations' or Business Value Attainment is still an elusive enigma for most BI initiatives. The quote:-
“After decades of investments in IT, many organizations still feel that its ability to generate true business insight that can elevate that organization's capability to compete in its chosen market(s) is not as effective as it could and should be. Business intelligence, analytics, pattern recognition, and "smart" solutions are the new vocabulary of IT's value; new IT-related initiatives that don't fit within this framework will be increasingly less attractive to enterprises that are not interested in more "IT for IT's sake," but are laser-focused on "IT for the business' sake."
We call this the road to 'Business Value Attainment'
--------
Table 1
Worldwide BI, Analytics and Performance Management Revenue Estimates for 2009 (Millions of U.S. Dollars)
SAP dominated the market but was the only player with a negative growth.
Company 2009 Market Share 2008 2008 Market Share 2009-2008 Growth
SAP 2,084.1 22.42, 096.1 23.4 -0.6
Oracle 1,351.1 14.5 1,284.0 14.4 5.2
SAS Institute 1,324.6 14.2 1,286.6 14.4 3.0
IBM 1,135.6 12.2 996.5 11.1 14.0
Microsoft 739.1 7.9 681.5 7.6 8.5
MicroStrategy 295.0 3.2 280.0 3.1 5.4
Other Vendors 2,392.4 25.7 2,322.3 26.0 3.0
Total 9,321.9 100.0 8,946.9 100.0 4.2
Based on the current stats that 45% of BI initiatives do not achieve 'business expectations' as the time of Go-live and that it costs companies anywhere from 3 to a 100 times more to fix a BI problem after 'Go-Live'
And, if all other things remain constant then in 2008 we mutually wasted $3.96 Billion, and in 2009 we may have collectively wasted $4.185 Billion.
In 2010 BI also got relegated from its long standing #1 priority of 1,527 global CIO's to #5. However, every CIO's interviewed by the author still agrees that Reports, Analytics and Informatics remain a critical business requirement in every enterprise.
Gartner stats on September 8, 2010 that Meeting Business Expectations' or Business Value Attainment is still an elusive enigma for most BI initiatives. The quote:-
“After decades of investments in IT, many organizations still feel that its ability to generate true business insight that can elevate that organization's capability to compete in its chosen market(s) is not as effective as it could and should be. Business intelligence, analytics, pattern recognition, and "smart" solutions are the new vocabulary of IT's value; new IT-related initiatives that don't fit within this framework will be increasingly less attractive to enterprises that are not interested in more "IT for IT's sake," but are laser-focused on "IT for the business' sake."
We call this the road to 'Business Value Attainment'
--------
Table 1
Worldwide BI, Analytics and Performance Management Revenue Estimates for 2009 (Millions of U.S. Dollars)
SAP dominated the market but was the only player with a negative growth.
Company 2009 Market Share 2008 2008 Market Share 2009-2008 Growth
SAP 2,084.1 22.42, 096.1 23.4 -0.6
Oracle 1,351.1 14.5 1,284.0 14.4 5.2
SAS Institute 1,324.6 14.2 1,286.6 14.4 3.0
IBM 1,135.6 12.2 996.5 11.1 14.0
Microsoft 739.1 7.9 681.5 7.6 8.5
MicroStrategy 295.0 3.2 280.0 3.1 5.4
Other Vendors 2,392.4 25.7 2,322.3 26.0 3.0
Total 9,321.9 100.0 8,946.9 100.0 4.2
Value Props, BVA and meeting business expectations
Value Proposition is defined as an analysis and quantified review of the benefits, costs and value that an organization can deliver to customers and other constituent groups within and outside the organization. The value proposition unfortunately so far is measured by a simple P&L formula where value=benefit/cost.
The creation of value is a strategic endeavor.
Unfortunately there are too many players with their own value drivers that influence the overall value proposition game, mostly in their favor.
Most BI projects are measured with the traditional manufacturing and technology value benefits based on the experience of knowledge workers created by the principles laid down from Taylor (industry); Ford (assembly line) and Deming (JIT manufacturing).
With the advent of the new Information era, currently dominated by the likes of Google, Yahoo and the new MS Bing some of the traditional processes simply burst at the seams. Add to this the traditional manufacturing/ construction project management techniques still practiced in project management and we have spaghetti of legacy processes with which we are trying to drive modern value parameters.
Most of these principles were based on the traditional sales techniques of an society that was dominated with a single, or few knowledge workers defining assumed values. Parts of the impact of these processes are evident in the aftermath left by the financial crisis of October 2008 or 10/08 and the various industries that were dominated by traditional knowledge workers.
In marketing we measure customer value as the total benefits that a vendor promises that a customer will receive in return for a customer’s payment.
In BI the result of this traditional knowledge based decision has been reported by Gartner, AMR, Forrester and even Business Week clearly identifying that Business Intelligence is not meeting business expectations. Taking a deeper dive on we find total spend on BI in 2008 at $8.8 billion.
By September 8, 2010 Gartner still reports that Quote “After decades of investments in IT, many organizations still feel that its ability to generate true business insight that can elevate that organization's capability to compete in its chosen market(s) is not as effective as it could and should be. Business intelligence, analytics, pattern recognition, and "smart" solutions are the new vocabulary of IT's value; new IT-related initiatives that don't fit within this framework will be increasingly less attractive to enterprises that are not interested in more "IT for IT's sake," but are laser-focused on "IT for the business' sake."
In other words 'Without Business in Business Intelligence, BI is Dead' (Gartner 2010)
The modern information era will now get dominated by the marketing concepts and ‘Business Value Attainment’ processes that changes the ownership of BI processes from knowledge workers to Business Value Workers.
The focus of this new breed of Business Value Workers is elimination of knowledge for the sake of knowledge, or IT for the sake of IT, but the true measure of BVA, or meeting business expectations.
Business Value Attainment is the new mantra for BI success
It should not come as a surprise to read that 92% of BI projects are declared successful in week 1 of go-live and only 55% of them remain so by week 10.
One of the key reasons for this is a fundamentally defective manner in which we manage BI projects, based on the CFO technique of construction project audits. Look around in any projct room and we only see charts measuring cost, tasks and time. So it should not come as a surprise that at time of go-live we meet all these requirements 92% of the times and declare the project a success.
However, 8-10 weeks down the line we hit the wall of ‘Business Expectations’ and bang the successful IT project suddenly has to face the reality of not meeting expected business value. In 45% of the case it fails.
Some assume that this may be higher but then that is playing into conspiracy theories. Looking back we find very few projects that actually measure and report on ‘business expectations’ from the start of the project with the same intensity as they do cost, time and scope. Infact if we look at all the project management training from PMP or PMI to programs from MS projects, to other IT project management application and business expectations simply does not exist. Try this one out - go look for ‘Business Expectations’ or anything resembling that aspect of a BI project and dont be surprised when you dont find it there..
That ladies and gentlemen is the reason we do not achieve business expectations is because we never planned, measured, audited or reported it throughout the BI project lifecycle. Nice surprise....
So the question is ‘How does one alter the BI processes to safeguards enterprise BI investments’ - Install the BVA pronciples and processes into your BI Project processes.
Conclusion
Value is a many faceted subjective mirror where each partner sees only the reflection of their own value drivers that overshadows all else.
Business Value on the other hand is an objective methodology of measuring Informatics ‘defects’ in an empirical manner that eliminates the traditional value based smoke and mirrors.
Action Item: One measure that can be implemented next Monday by any executive is ‘Give me a list of total reports, analytics and informatics available in each BI/DW environment and then let users select ones that they can use today without any further changes’ that is BVA.
The creation of value is a strategic endeavor.
Unfortunately there are too many players with their own value drivers that influence the overall value proposition game, mostly in their favor.
Most BI projects are measured with the traditional manufacturing and technology value benefits based on the experience of knowledge workers created by the principles laid down from Taylor (industry); Ford (assembly line) and Deming (JIT manufacturing).
With the advent of the new Information era, currently dominated by the likes of Google, Yahoo and the new MS Bing some of the traditional processes simply burst at the seams. Add to this the traditional manufacturing/ construction project management techniques still practiced in project management and we have spaghetti of legacy processes with which we are trying to drive modern value parameters.
Most of these principles were based on the traditional sales techniques of an society that was dominated with a single, or few knowledge workers defining assumed values. Parts of the impact of these processes are evident in the aftermath left by the financial crisis of October 2008 or 10/08 and the various industries that were dominated by traditional knowledge workers.
In marketing we measure customer value as the total benefits that a vendor promises that a customer will receive in return for a customer’s payment.
In BI the result of this traditional knowledge based decision has been reported by Gartner, AMR, Forrester and even Business Week clearly identifying that Business Intelligence is not meeting business expectations. Taking a deeper dive on we find total spend on BI in 2008 at $8.8 billion.
By September 8, 2010 Gartner still reports that Quote “After decades of investments in IT, many organizations still feel that its ability to generate true business insight that can elevate that organization's capability to compete in its chosen market(s) is not as effective as it could and should be. Business intelligence, analytics, pattern recognition, and "smart" solutions are the new vocabulary of IT's value; new IT-related initiatives that don't fit within this framework will be increasingly less attractive to enterprises that are not interested in more "IT for IT's sake," but are laser-focused on "IT for the business' sake."
In other words 'Without Business in Business Intelligence, BI is Dead' (Gartner 2010)
The modern information era will now get dominated by the marketing concepts and ‘Business Value Attainment’ processes that changes the ownership of BI processes from knowledge workers to Business Value Workers.
The focus of this new breed of Business Value Workers is elimination of knowledge for the sake of knowledge, or IT for the sake of IT, but the true measure of BVA, or meeting business expectations.
Business Value Attainment is the new mantra for BI success
It should not come as a surprise to read that 92% of BI projects are declared successful in week 1 of go-live and only 55% of them remain so by week 10.
One of the key reasons for this is a fundamentally defective manner in which we manage BI projects, based on the CFO technique of construction project audits. Look around in any projct room and we only see charts measuring cost, tasks and time. So it should not come as a surprise that at time of go-live we meet all these requirements 92% of the times and declare the project a success.
However, 8-10 weeks down the line we hit the wall of ‘Business Expectations’ and bang the successful IT project suddenly has to face the reality of not meeting expected business value. In 45% of the case it fails.
Some assume that this may be higher but then that is playing into conspiracy theories. Looking back we find very few projects that actually measure and report on ‘business expectations’ from the start of the project with the same intensity as they do cost, time and scope. Infact if we look at all the project management training from PMP or PMI to programs from MS projects, to other IT project management application and business expectations simply does not exist. Try this one out - go look for ‘Business Expectations’ or anything resembling that aspect of a BI project and dont be surprised when you dont find it there..
That ladies and gentlemen is the reason we do not achieve business expectations is because we never planned, measured, audited or reported it throughout the BI project lifecycle. Nice surprise....
So the question is ‘How does one alter the BI processes to safeguards enterprise BI investments’ - Install the BVA pronciples and processes into your BI Project processes.
Conclusion
Value is a many faceted subjective mirror where each partner sees only the reflection of their own value drivers that overshadows all else.
Business Value on the other hand is an objective methodology of measuring Informatics ‘defects’ in an empirical manner that eliminates the traditional value based smoke and mirrors.
Action Item: One measure that can be implemented next Monday by any executive is ‘Give me a list of total reports, analytics and informatics available in each BI/DW environment and then let users select ones that they can use today without any further changes’ that is BVA.
Sep 10, 2010
The quest for meeting business expectations in BI
BVA is the engineered process of Business Value Attainment.
Many BI implementations pursue a path of technology as the ultimate solution, very much like during the early industrial era management thought that machines would solve every manufacturing problem on the planet.
The general maturity of a new technological era falls at around 15-20 years, and we are right now at that exact cusp point where some of us are questioning the concept of technology being the total solution in providing BI answers.
Some companies are violently realizing that their 12 to 14 million dollars and blind faith in technology as the solution provider did not meet business expectations. Such companies are scattered across continents and platforms.
There are three major problems with BI projects that do not provide expected business value.
The first being that there is still the unmet expectations of business reports, analytics and informatics
The second is the investors and shareholders
The third is that it costs anywhere from 3 to 100 times more to fix a problem after ‘Go-Live’ than if it is planned and fixed in the initial phases.
Semiconductor manufacturer spent 12 million dollars only to realize that from an IT and Budget perspective the project was a big success. However, 6-8 weeks down the line only to realize that from a business perspective it was not so. Same thing happens to a major mining company and then still another. Together we wasted over $3.5 billion in 2008 alone and it is time we increased the ROI on BI investments to be better than .55 of initial investment (measured in business satisfaction)
(remember it will take a minimum of 2x more to reach the original goal and meet initial expectations, not counting the anxieties and trauma in the interim period)
Many BI implementations pursue a path of technology as the ultimate solution, very much like during the early industrial era management thought that machines would solve every manufacturing problem on the planet.
The general maturity of a new technological era falls at around 15-20 years, and we are right now at that exact cusp point where some of us are questioning the concept of technology being the total solution in providing BI answers.
Some companies are violently realizing that their 12 to 14 million dollars and blind faith in technology as the solution provider did not meet business expectations. Such companies are scattered across continents and platforms.
There are three major problems with BI projects that do not provide expected business value.
The first being that there is still the unmet expectations of business reports, analytics and informatics
The second is the investors and shareholders
The third is that it costs anywhere from 3 to 100 times more to fix a problem after ‘Go-Live’ than if it is planned and fixed in the initial phases.
Semiconductor manufacturer spent 12 million dollars only to realize that from an IT and Budget perspective the project was a big success. However, 6-8 weeks down the line only to realize that from a business perspective it was not so. Same thing happens to a major mining company and then still another. Together we wasted over $3.5 billion in 2008 alone and it is time we increased the ROI on BI investments to be better than .55 of initial investment (measured in business satisfaction)
(remember it will take a minimum of 2x more to reach the original goal and meet initial expectations, not counting the anxieties and trauma in the interim period)
Aug 10, 2010
BI Valuenomics now in Print
BI Valuenomics is now available in Print.
Google [ISBN, 9781449080198] to find / buy the book
Purchase :
Authorhouse: http://www.authorhouse.com/Bookstore/ItemDetail.aspx?bookid=67931
Amazon: http://www.amazon.com/Bi-Valuenomics-Business-Value-Delivered/dp/1449080197/ref=sr_1_1?s=books&ie=UTF8&qid=1281822219&sr=1-1#_
Blog: http://bivaluenomics.blogspot.com to the book blog
Book Title: BI Valuenomics – The story of meeting Business Expectations in Business Intelligence
The first Business Intelligence book written from the ground up for Business Users with an actionable roadmap to ‘Meeting Business Expectations in BI initiatives’, it is agnostic of platform or technology but dealt with the fundamentals of DW and BI.
Initial Reader comments:- (All from the back cover of the book)
“Gartner identified the enigma to BI Success. Hari provides a clear roadmap to attain it”
“This book hits the bull’s-eye on the main challenge facing corporate BI today, ...from being technology centric to business driven with a BI strategy thought process…”
“Perfectly timed, surgically focused insights . Just when we were lost in our BI investments Hari shows us the Business focused path out of the confusion”
“Every C level executive focused on a positive ROI from BI needs to read this book, it will BI ensure success…”
I look forward to your comments and clarifications.
Best Regards
Hari Guleria
Author of BI Valuenomics
(408) 835-9552
Google [ISBN, 9781449080198] to find / buy the book
Purchase :
Authorhouse: http://www.authorhouse.com/Bookstore/ItemDetail.aspx?bookid=67931
Amazon: http://www.amazon.com/Bi-Valuenomics-Business-Value-Delivered/dp/1449080197/ref=sr_1_1?s=books&ie=UTF8&qid=1281822219&sr=1-1#_
Blog: http://bivaluenomics.blogspot.com to the book blog
Book Title: BI Valuenomics – The story of meeting Business Expectations in Business Intelligence
The first Business Intelligence book written from the ground up for Business Users with an actionable roadmap to ‘Meeting Business Expectations in BI initiatives’, it is agnostic of platform or technology but dealt with the fundamentals of DW and BI.
Initial Reader comments:- (All from the back cover of the book)
“Gartner identified the enigma to BI Success. Hari provides a clear roadmap to attain it”
“This book hits the bull’s-eye on the main challenge facing corporate BI today, ...from being technology centric to business driven with a BI strategy thought process…”
“Perfectly timed, surgically focused insights . Just when we were lost in our BI investments Hari shows us the Business focused path out of the confusion”
“Every C level executive focused on a positive ROI from BI needs to read this book, it will BI ensure success…”
I look forward to your comments and clarifications.
Best Regards
Hari Guleria
Author of BI Valuenomics
(408) 835-9552
Aug 2, 2010
What OLAP to use with SAP BW
Just came out of a meeting where the Houston based customer needs to make a OLAP delivery decision. They have been using BW for the last 3 years and are now migrating to Business Objects OLAP.
Decision 1 whether to stay with BEx reporting or move it all to BO
My recommendations:
1. There are many reports that are best run via the BW.
a. Where performance is bad the customer had a BW Accelerator installed.
b. I disagree with SAP’s recommendations that there is no modeling required for BW Accelerator
i. BW Accelerator is a very expensive appliance and modeling can decrease BW footprint anywhere
from 20 to 60%. This means reduction of blades by 20 to 60%, or being able to put 20 – 60% more
cubes into the same number of blades.
ii. The first choice should be to model for performance. We demonstrated increasing some DSO reports
performance from 517 seconds to under 20 seconds in under 2 days of automated modeling. This is
with no BWA or any hardware changes.
2. There are many reports that run more efficiently in Business Objects
a. Core strength is Ad-Hoc capabilities
b. Second core strength is Remote query capabilities
c. Selection is critical
d. Use Xcelsius for standalone visualization
e. Use WebI for remote query capabilities and ad-hoc reporting
f. Use Crystal Reports for fixed pixel reporting and fixed format reporting
The key once again is that OLAP deployment must not be simply a technology decision but that of business needs with OLAP becoming a competitive service provider to meet business needs.
Decision 1 whether to stay with BEx reporting or move it all to BO
My recommendations:
1. There are many reports that are best run via the BW.
a. Where performance is bad the customer had a BW Accelerator installed.
b. I disagree with SAP’s recommendations that there is no modeling required for BW Accelerator
i. BW Accelerator is a very expensive appliance and modeling can decrease BW footprint anywhere
from 20 to 60%. This means reduction of blades by 20 to 60%, or being able to put 20 – 60% more
cubes into the same number of blades.
ii. The first choice should be to model for performance. We demonstrated increasing some DSO reports
performance from 517 seconds to under 20 seconds in under 2 days of automated modeling. This is
with no BWA or any hardware changes.
2. There are many reports that run more efficiently in Business Objects
a. Core strength is Ad-Hoc capabilities
b. Second core strength is Remote query capabilities
c. Selection is critical
d. Use Xcelsius for standalone visualization
e. Use WebI for remote query capabilities and ad-hoc reporting
f. Use Crystal Reports for fixed pixel reporting and fixed format reporting
The key once again is that OLAP deployment must not be simply a technology decision but that of business needs with OLAP becoming a competitive service provider to meet business needs.
1st Published Book is now in my hands
The first printed book is now in my hands and the full-blown publish date is but a week or two away at the maximum. The only component with 1 change is the cover.
BI Valuenomics is the first BI book written only for the business in the BI environment. Business executives, business owners, business analysts and business users.
One business owner promised to read the book with a question “..but I may not understand it..”
My answer to her was as follows “You should be able to understand and relate to almost every page. This book has no technical content and it is agnostic of any technology or platform. It is an actionable roadmap for business stakeholders, that every reader should be able to understand” If a business stakeholder cannot understand a page then I have failed in that page”. My 19 year old son, currently studying management could understand almost every page in the book.
The book will be available in the coming week or two and I will then send everyone the link to the publisher site.
Welcome to the world of ‘Meeting Business Expectations in BI’
For clarifications send email to bivaluenomics@bidatabridge.com
BI Valuenomics is the first BI book written only for the business in the BI environment. Business executives, business owners, business analysts and business users.
One business owner promised to read the book with a question “..but I may not understand it..”
My answer to her was as follows “You should be able to understand and relate to almost every page. This book has no technical content and it is agnostic of any technology or platform. It is an actionable roadmap for business stakeholders, that every reader should be able to understand” If a business stakeholder cannot understand a page then I have failed in that page”. My 19 year old son, currently studying management could understand almost every page in the book.
The book will be available in the coming week or two and I will then send everyone the link to the publisher site.
Welcome to the world of ‘Meeting Business Expectations in BI’
For clarifications send email to bivaluenomics@bidatabridge.com
May 30, 2010
How Many BI's can you pile before information
I recently ran into a case where we found 3 BI's one on top of the other to deliver some imformation. Sure would love to hear from your sides as to how many you have actually found / handled .
sedn to bivaluenomics@bidatabridge.com
sedn to bivaluenomics@bidatabridge.com
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