1. Webinar How To Align Your BI Organization For Agility
Boris Evelson, Vice President, Principal Analyst
Michele Goetz, Senior Analyst
May 1, Please call in at 10:55 a.m. Eastern time

2. Agenda
Why is BI so mission-critical?
Why many organizations still struggle with BI
Why is Agile BI key to success?
How to create an Agile BI organization?

3. “Information derived from a financial transaction will be more valuable than the execution of the transaction itself.
“Information about money will become almost as important as money itself.”
— Walter Wriston, CEO (1967 to 1984) Citibank/Citicorp

4. BI is at the top of everyone’s agenda, mostly to enable better business decisions
“What are the most important goals/drivers your organization considers when planning/orchestrating your business intelligence strategy?”
Base: 634 business intelligence users and planners; Source: Forrsights Strategy Spotlight: Business Intelligence And Big Data, Q4 2012

5. Top performers spend more on BI
“In 2012, approximately what percentage of your firm’s IT budget will go to BI-related purchases, initiatives, and projects?”
∆ + 25%
(15%+ YoY growth)
(<15% YoY growth)
Base: 460 business intelligence users; Source: Forrsights Strategy Spotlight: Business Intelligence And Big Data, Q

6. Monetizing BI: Top performers have implemented “data-driven” decision-making
DDD
Better asset utilization
Higher return on equity
Higher market value
Lower
5% to 6% higher
Productivity
Output
Source: Erik Brynjolfsson, Lorin M. Hitt, and Heekyung Hellen Kim, “Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?” Social Science Research Network, April 22, 2011 (
Data-driven decision-making
Base: 179 large publicly traded firms with information technology investments

7. “Yes, we had the data . . . but we did not have the information.”
— CIO of a European bank
Source: August 25, 2009, “The Business Case For BI: Now More Critical Than Ever” Forrester report

8. What is business intelligence? The name is not important
Reporting applications
1970s
MIS
1980s
Business intelligence
1990s
Analytics
2000s
Big data
2010s
BI evolution

9. BI is still very complex
Source: November 1, 2012, “Craft Your Future State BI Reference Architecture” Forrester report

10. IT and business are not well aligned when it comes to BI
Flexibility and agility
Operational risk management
Business requirements
Standards
Reacting
Planning
Interaction
Requirements gathering
Exploration/discovery
Reporting/analysis

11. Companies use only 12.5% of their data for BI
“Please estimate what percentage of the total size/volume of data within your company is currently used for BI” 8% 8%
Question Q13
32%
Base: 418 to 533 business intelligence users using each typology; Source: Forrsights Strategy Spotlight: Business Intelligence And Big Data, Q4 2012

12. As a result, BI maturity is still quite low
Source: A recent Forrester Consulting engagement and August 7, 2012, “BI Maturity In The Enterprise: 2012 Update” Forrester report

13. Build (prototype) it, and they will come — why agility is critical for effective BI applications
Initial estimates are always low.
BI requirements change faster than what IT can keep up with.
Conventional SDLC approaches are poorly suited for BI.
Deployment efforts don’t often take into account:
Growing and ever-changing requirements.
Growing user base.
Growing breadth, depth, volume, and complexity.

14. Recommendation: how to get started and succeed
1. Align your organization for agility.
2. Adopt agile development methodology.
3. Base it all on Agile BI technologies and architectures.

15. BI skills are in high demand
“By 2018, the United States alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions.” (McKinsey Global Institute)
“. . . trigger a talent shortage, with up to 190,000 skilled professionals needed to cope with demand in the US alone over the next five years.” (Deloitte Development)
“Fewer than 25% of the survey respondents worldwide said they have the skills and resources to analyze unstructured data such as text, voice, and sensor data.” (IBM)
Source: McKinsey Global Institute report, “Big data: The next frontier for innovation, competition, and productivity” ( Deloitte Development, “Tech Trends 2012 — Elevate IT for digital business” ( IBM, “2012 Analytics Study — The real-world use of big data” (

16. The balance between control and agility in a BISC
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

17. The evolution of a business intelligence support center
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

18. BI COE/BICC scope and roles
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

19. Align your organization for agility
Insist on business ownership and governance.
Emphasize organization and cultural change management.
Decouple data preparation and data usage.
Treat front- and back-office BI requirements and users differently.
Establish hub-and-spoke organizational model.

20. Firms are split on how they couple the data preparation and data usage organizations
Base: 195 BI-savvy IT professionals; Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

21. Hub-and-spoke enterprise organizational structure
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

22. BI support is most often a hybrid of centralized and decentralized organizations
Base: 195 BI-savvy IT professionals; Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

23. Hub-and-spoke organizational structure decision criteria
Base: 195 BI-savvy IT professionals (multiple responses accepted); Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

24. Data governance closes the gap and supports agility
Base: 130 data management professionals; Source: Q Global Data Governance Online Survey Note: “Keeping pace” organizations see revenue growth above 15%.

25. Ultimately, data governance makes good business sense — costs contained
Base: 127 data management professionals; Source: Q Global Data Governance Online Survey

26. Meet business need by thinking about governing data in zones
Source: August 7, 2012, “Create Your Information Governance Framework” Forrester report

27. BISC-relevant data governance roles
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

28. BISC delivery/execution roles
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

29. BISC delivery/execution roles (cont.)
Source: January 25, 2013, “Build An Agile BI Organization” Forrester report

30. Roles involved in BISCs
Base: 195 BI-savvy IT professionals (multiple responses accepted); Source: May 2011 Global Business Intelligence Organization Online Survey

31. Where do you find BI skills beyond the usual venues?
Look inside “shadow IT.”
Partner with academia.
Work with consultants.
If all else fails, you may be ready for BI BPO.

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33. Boris Evelson
s_evelson
LinkedIn: bevelson
Michele Goetz