Boris Evelson, VP, Principal Analyst WEBINAR It's Time To Upgrade Business Intelligence To Systems Of Insight Boris Evelson, VP, Principal Analyst August 20, 2015. Call time at 12:55 p.m. Eastern time

Solid returns on BI investments ACTUAL OR ESTIMATED ROI } More than 40% report solid double- digit ROI on BI investments within two years. Note: “Other” and “Don’t know” not shown. Source: Forrester’s Q4 2014 Global Business Intelligence Business Case Online Survey

Top performers invest more in BI PERCENT OF TECHNOLOGY BUDGET GOING TO BI-RELATED PURCHASES, INITIATIVES, AND PROJECTS } Top performers invest 38% more in BI as a percentage of their IT budget. Base: 710 “Top performers” or global technology decision-makers whose companies experienced 15% or more year-over-year revenue growth and 101 of their “Peers” or global technology decision-makers whose companies experienced less than 15% year-over-year growth. Source: Forrester’s Business Technographics® Global Data And Analytics Survey, 2014

BI is all about Q&A. Image Source: Deaf Future Works (http://www.deaffutureworks.com/)

But earlier generations’ BI can be very frustrating. Image source: ChimpyTech (http://www.chimpytech.com/)

Streamlined data architecture Technology Single BI platform Streamlined data architecture Centralized support Single version of the truth Business I just want to get my job done. Single version of the truth is not my top priority. Good enough but timely data/info is good enough for me. Image source: RainToday (www.raintoday.com)

BI architectural stack is complex Information delivery 20% Reporting, querying, OLAP, dashboards, analytics Effort Virtual and semantic data layer Cross-platform capabilities Derived data sources 80% Data integration Data sources

We only use a fraction of enterprise data Unstructured Semi-structured Structured Base: 937, *855, and †953 global technology decision-makers who know how much BI data their firm uses. Note: These percentages are estimates based on ranges reported. The values are not exact. Source: Forrester’s Business Technographics Global Data And Analytics Survey, 2014

Over half of BI content is sitting in spreadsheets % responding 63% 35% 26% 15% 6% 3% 50% + 60% + 70% + 80% + 90% + 100% % homegrown enterprise BI apps Source: How would you describe the Enterprise BI applications or tools that you use? Are they company-issued or “homegrown”? Base: 249 North American business decision-makers. Forrester’s “It’s Time For A User-Driven Enterprise BI Strategy” report.

Clearly, earlier generation BI is not the answer Data Limitations Don’t have all the data you need 44% Don’t have good data quality 16% Data Model Limitations Don’t have the right model, relationships, attribute, hierarchies 41% Are too restrictive in their data models 35% Don’t allow you to clean, integrate, or model the data 33% Poor User Experience Take too long to get results 28% Are too complex, complicated, cumbersome to use Are not intuitive 16% Image Source: The Noun Project Source: Why do you use homegrown BI applications some ore all of the time? Base: 241 North American business decision-makers using homegrown BI apps. Forrester’s “It’s Time For A User-Driven Enterprise BI Strategy” report.

Earlier solutions to the challenge Agile BI More Business agility Earlier generation BI & analytics Big data Less Less More Amount & availability of data

Higher performers are more agile across 10 dimensions CI Channel integration Lower performers MR Market responsiveness Paralyzed Formidable KD Knowledge dissemination DP Digital psychology SC CM DP BI Change management Awareness Clueless SI Dangerous BI Business intelligence KD CI IE MR CM IE Infrastructure elasticity PA PA Process architecture SI Software innovation SC Execution Sourcing & supply chain Source: Forrester’s “The 10 Dimensions Of Business Agility” Forrester report

Lower performers Higher performers Paralyzed Formidable Paralyzed BI DP SC SC KD MR CI DP CM BI SI PA IE Awareness Awareness Clueless SI Dangerous Clueless Dangerous KD CI IE MR CM PA Execution Execution Source: Forrester’s “The 10 Dimensions Of Business Agility” report

Forrester Agile BI framework Source: Forrester’s “It’s Time For A User-Driven Enterprise BI Strategy” report.

Case study: online fashion retailer 25% to 68% increase in BI adoption by business users. Right-sized 27% of IT staff previously supporting BI. Improved 25% of BI functionality based on monitoring of business users usage.

BI versus big data questions Answers and implications Are you ready (or not) for big data? BI versus big data questions Answers and implications What are the typical BI issues where big data is clearly not the answer? Different points of view on who owns BI Disconnect on BI goals, objectives, and priorities Treating data governance as a technology, not as people and processes What are the typical BI issues and requirements where a different technology, not necessarily big data, may be the answer? SOI for actionable insight Agile BI platforms to improve self-sufficiency of business users Columnar DBMS to support frequently changing requirements NoSQL DBMS to support complex data requirements BI on BI to improve business and technology alignment What are the typical business and technical requirements where big data may indeed be the answer? Reduced cost and linear scalability Giant BI sandbox supporting data exploration and on-demand applications Agile BI applications on VLDB (very large data bases) What are the implications of upgrading BI to big data? Big data will never be 100% clean and integrated Data governance has to adopt different stages in the life cycle of data Source: Forrester’s “Brief: Reasons To (Or Not To) Modernize BI Platforms With Hadoop” report

360 degree view of a customer 360-degree customer view Everything you know about your customer including Internal (sales, marketing, service, financial) and External (social media) data 360 degree view of a customer

360-degree view of a customer 720-degree customer view 360-DEGREE VIEW PLUS All of the customer’s friends, family, and coworkers who may affect his/her behavior. Identifying friends and coworkers via: Social media. Co-location based on cell phone GPS data. Co-location based on credit/debit card. Behavior of family Behavior of friends 360-degree view of a customer Behavior of friends Behavior of coworkers

Technology putting it all together Source: Forrester’s “Boost Your Business Insights By Converging Big Data And BI” report

But even Agile BI and big data are not enough The missing pieces of the puzzle

Earlier generation BI & analytics Agile BI Systems of Insight Earlier generation BI & analytics Big data More Data democratization Business agility Less Less More Availability Source: Forrester’s “It's Time To Upgrade Business Intelligence To Systems Of Insight” report

Great customer experiences pay off Source: Forrester Research and Watermark Consulting

Big data promises “data driven” 65% of firms will be using big data analytics to optimize digital experiences. 56% of firms will have implemented Hadoop. 38% of firms will have spent more than $10 million on data and analytics. Base: 3,005 business and technology decision-makers Source: Forrester’s Global Business Technographics® Data And Analytics Survey, 2015

Surely our business will have the data to . . . Easily create contextually relevant experiences. Map great experiences to business metrics. Anticipate a customer’s problem before she calls. Optimize product targeting in every channel. Create dynamic pricing that works. Know what each customer really wants. Source: Forrester’s “The Customer Life Cycle: A Blueprint For Customer-Obsessed Enterprises” report.

“We are drowning in data and starving for insight.” — Global bank Image source: Undercover Tourist (https://www.undercovertourist.com/) Ted Source: Undercover Tourist (https://www.undercovertourist.com/)

More data won’t create great customer experiences . . . “You’ve got to start with the customer experience and work backwards toward the technology — not the other way around.” Steve Jobs Apple Worldwide Developer Conference, 1997 More data won’t create great customer experiences . . . more insight won’t either! Source: YouTube (https://www.youtube.com/)

We’ve been solving the wrong problem Too much data “All the data we need will never come from one place. There is too much of it.” Carlo Torinai Data Scientist Tesla Motors Not enough action “Data scientists are great at finding insights, but it’s hard to keep them focused on the the outcomes our business needs.” Assad Shaik Chief Data Scientist

Insight masters talk a different language All possible data Digital insights All possible actions Right data Effective actions Learnings Source: Forrester’s “Digital Insights Are The New Currency Of Business” report.

It’s not technology . . . . . . it’s a way of doing business

Stitch Fix is changing retail Clothes show up at your door Two way learning between models and humans Constant controlled experimentation From recommendation engine to an entire way of doing business The result: a disruptive shift in business models and fashion retail experiences

We call this new way “systems of insight” The business discipline and technology to harness insights and consistently turn data into action

Different?

No. 1 — It’s not Agile BI or a data lake Insights team Right data Insights-to-execution process All data Possible Actions Effective actions Digital insights architecture Source: Forrester’s “Digital Insights Are The New Currency Of Business” report

No. 2 — It’s team-based, federated, and software focused Business leader Manages the team to optimize a specific business outcome Technology leader Responsible for insights testing, implementation, and architecture Domain experts Recognizes insights worth the investment Developers Test and implement insights in software and business rules Data scientists Build models and exercises them to reveal potential insights Data engineers Gathers, assesses, integrates, prepares, and manages data Source: Forrester’s “Digital Insights Are The New Currency Of Business” report.

No. 3 — It’s a rethink of your big data strategy Sales and marketing Operations Product design . . . lots more Insights-driven applications Data feed management Execution engines Insight discovery and implementation tools Collaboration and governance tools Services framework Federation and virtualization Big data management Cloud services Insight Fabric Image source: Find Icons (http://findicons.com/) and Brightfind (http://www.brightfind.com/) Source: Forrester’s “Digital Insights Are The New Currency Of Business” report

Tesla’s driving experience is powered by insight Fix problems before they impact CX Team Insights services let engineers find and test insights. Developers implement insights firmware (create action). Engineers Firmware developers Data scientists engineers Insights services Pipeline

Systems of insight will power digital business engagement touch people Systems of insight power digital business Systems of automation connect the physical world Systems of record host processes Source: Forrester’s “Digital Insights Are The New Currency Of Business” report.

Systems of insight will redefine digital winners and losers Big data = IT thing Data remains “Balkanized” Supply-side thinkers Enterprise software Data-driven Winners Insights-driven Embed insights into everyday operations Reinvent products to insights-driven services Insights service providers and ecosystem builders Image source: Pearson (http://www.pearsonschool.com/)

Start evolving today Find and fill your gaps: data — insight — action — data. Add insight to software project’s core requirements. Plan out your big data future insight fabric. Pick your strategic partners. Make gatekeepers part of the solution.

Continuous learning and improvement Insights to action Insights context

Earlier generation approaches SOI Goal Different for BI, big data, customer analytics Find, test, implement and act on digital insight Alignment Enterprise cost center or LOB driven Part of revenue generating organizations Sponsorship IT paradigm — IT and CMO loosely cooperate BT — CIOs and CMO share responsibility People CI silos, BICOEs, Data scientists Insights teams Technology BI, big data, marketing tenuously connected Shared digital insights architecture Source: Forrester’s “Digital Insights Are The New Currency Of Business” report.

Boris Evelson +1 917.650.8344 Brian Hopkins +1 773.578.7263 bevelson@forrester.com Brian Hopkins +1 773.578.7263 bhopkins@forrester.com