2. Business Intelligence – The Next Major Competitive Differentiator Boris Evelson Principal Analyst Forrester Research

3. 3 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Theme “Information about transactions will become more important than the transactions themselves.” Walter Wriston, chair and CEO of Citicorp/Citibank, 1967-1984

4. 4 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Agenda Reemerging significance of BI BI market definition Trends Best practices Recommendations

5. 5 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Enterprises are feeling the pain It is becoming increasingly difficult for enterprises to compete. Only change is constant. Productivity gains and efficiencies were enough yesterday, but today and tomorrow businesses need to reemphasize effectiveness to win market shares and grow.

6. 6 Entire contents © 2008 Forrester Research, Inc. All rights reserved. … and need to be optimized to compete Enterprise Optimization BI BPM/BRE Effectiveness Efficiency = = Agility = Dynamic Apps

7. 7 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Top companies competing on analytics

8. 8 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Robust BI environments are needed to turn mountains of data into information The globe’s information production in 2003 was 5 exabytes. »5,000,000,000,000,000,000 — 18 zeros »Equivalent in size to the information contained in 37,000 new libraries, each as big as the US Library of Congress book collection »92% of new information is stored on magnetic media, primarily hard disks »Almost a gigabyte per every person on Earth This figure is growing at 30% a year, so we’ll be reaching zetabyte sizes by year 2010 — that’s a number with 21 zeros! Source: University of California, Berkeley

9. 9 Entire contents © 2008 Forrester Research, Inc. All rights reserved. … and that’s why I&KM Initiatives are hot Source: January 25, 2008, “The State Of Enterprise Software Adoption: 2007 To 2008” report

10. 10 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Source: March 27, 2008, “The State Of Enterprise IT Budgets: 2008” report IT budget-setters are investing in BI

11. 11 Entire contents © 2008 Forrester Research, Inc. All rights reserved. … but BI stack is complex and heterogeneous Business intelligence is a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insight and decision-making.

12. 12 Entire contents © 2008 Forrester Research, Inc. All rights reserved.... and it’s only one of the components in IW

13. 13 Entire contents © 2008 Forrester Research, Inc. All rights reserved. BI “Ecosystem” – over 350 players! TypeSample Pure-plays Cognos (IBM), Business Objects (SAP), MicroStrategy, Actuate, SAS, Information Builders, Informatica, AbInitio StackOracle, Microsoft, SAP CombinationTeradata, Sybase, HP ERPLawson, Infor BPS OutlookSoft (SAP), Cartesis (Business Objects), Longview, Applix(Cognos) Appliances Netezza, DATAllegro, Sun/Greenplum Tier 2 ASG, QlikTech, Panorama, LogiXML, Dimensional Insight, InforSense, Inetsoft, BOARD, VisualMining, Tableau, SeaTab, Skytide Open sourceJasperSoft, Pentaho TypeSample Alternative Analysis Methods Spotfire, FAST Search, Endeca, Attivio Dashboard pure-plays iDashboards, Corda BPMLombardi, Global360, Savvion BRE Pegasystems, Fair Isaac, CA, Corticon BAM/CEPTIBCO, Syndera, Coral8 SIsBig 4, boutique, offshore SaaSSeaTab, 1010data, Lucidera BPOOco, Omniture, Coremetrics Supporting apps Portals, Collaboration, Search, Metadata, MDM, ILM, and many others

14. 14 Entire contents © 2008 Forrester Research, Inc. All rights reserved. BI is evolving fast and across many dimensions YesterdayTodayTomorrow Decision typesStrategicTacticalOperational CriticalityNice to haveDifferentiatorMission critical Data volumesGigabytesTerabytesPetabytes No users<100<10,00010,000+ ArchitectureProprietaryOpenOptimized Data typeStructured Structured and unstructured Information (data type agnostic)

15. 15 Entire contents © 2008 Forrester Research, Inc. All rights reserved. BI is evolving fast and across many dimensions YesterdayTodayTomorrow FunctionalityReport, analyzeMonitorPredict ModeReactiveProactive Proactive and predictive Data modelsStar Star and normalized All (star, normalized, flat) Refresh ratesBatchNear real timeReal time Executed byITPower usersSelf service CentricityData-centric Process-centric

16. 16 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Columnar »More agile »Less space »Faster queries In Memory »Lightning fast »No OLAP limitations Index »More agile »Seamless structured and unstructured BI Col 1Col 2Col 3 Row 1 Row 2 Row 3 Col 1Col 2Col 3 Row 1 Row 2 Row 3 Other trends: alternative BI DBMS

17. 17 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Other trends: alternative analytical methods Visual pattern recognition »Most traditional OLAP methods fail when number of dimensions exceeds a few dozen. »Best at analyzing “broad” data sets with 100+ dimensions »Today: life sciences, energy/mining »Tomorrow: financial services

18. 18 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Other trends: spreadsheets and BI Spreadsheets — the most widely used business intelligence (BI) tool — play an integral role in all layers of the BI stack. Lack of controls, security, and integrity, as well as integration with business processes create tremendous challenges — and opportunities “Getting rid of spreadsheets” battle was fought and lost. With proper governance, methodology and latest tools, one can continue to reap the benefits of spreadsheet applications while getting arms around control and risk issues.

19. 19 Entire contents © 2008 Forrester Research, Inc. All rights reserved. More Trends: Continued Innovation BI market is consolidating but not commoditizing. Consolidation Large vendors increasingly have to balance integration vs. innovation priorities. Innovation – still plenty of room Data discovery Guided analytics /search Consumerization of enterprise technology or “Tech Populism” Knowledge Shadows / Blind Spots

20. 20 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Unfortunately there are still many inhibitors to successful BI implementations Lack of centralized data / BI governance BI application does not have access to all relevant data BI application too complex to learn and navigate Too much dependency on IT for new reports and report enhancements BI application is too inflexible and slow to react to changes Unclear ROI

21. 21 Entire contents © 2008 Forrester Research, Inc. All rights reserved. So what do we do? Best practices / strategy to the rescue Current State Assessment Current State Assessment Target State Vision Target State Vision Gap Analysis Prioritization Road Map Requirements Governance Human resources Architecture / technology Change management Risk management

22. 22 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Best practices – do’s and don’t’s Data Governance Data Governance Data Architecture Data Architecture Technical Architecture Technical Architecture Technical Architecture Technical Architecture Data Architecture Data Architecture Data Governance Data Governance

23. 23 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Best practices Start by picking a senior C-level (non-IT) executive to sponsor and champion data governance organization. Proceed to creating and empowering data governance and data stewardship organization. Conduct analysis of the current state as a starting point of the BI strategy journey. Define logical and physical data requirements, which will serve as the basis and will drive the rest of the BI architecture. Identify all types of users involved in the BI initiative – remember: not all users are created equal.

24. 24 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Best practices continued If appropriate to your organization’s culture and environment, start with an industry standard analytical data model. Make sure that all BI stack components (not just the obvious ones) are addressed in your BI strategy vision and architecture. Pick a reputable systems integrator partner with extensive BI strategy and implementation background. Make sure that the strategic roadmap is divided into “baby step” tasks, with concrete deliverables no more than a few weeks apart. Pick high value, low cost, low complexity targets for the first few iterations to ensure initial success and momentum.

25. 25 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Final thoughts Three top keys to successful BI implementations are: data governance, data governance, and data governance. Ensure that the BI foundation is comprehensive and supportive of future trends. Understand that BI for multi-terabyte data sets may require different architectures and technologies. »Research and implement the most appropriate VLDB/BI options. »Plan for explosive data growth: 10x-100x. Have a strategy / approach for handling lightweight BI applications: Excel, Microsoft Access

26. 26 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Thank you Boris Evelson +1 617/613-6297 bevelson@forrester.com www.forrester.com