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© arcplan 2010
Business Intelligence and the SMB
Kathleen Rohrecker, M.B.A. Marketing Director
Babak Nassirian, Solutions Architect
CFIT Committee Meeting
September 17, 2010
BI and the SMB 2
Executive Summary
￭ Organizations’ behavior is impacted by size, culture, structure￭ BI technology integral to overall push to drive corporate
performance, yet it’s not the only determinant to success￭ With the importance of knowledge workers in the global economy,
it’s imperative for SMBs (65 of the worldwide GDP and 27 million businesses in the US) to succeed at BI
￭ Many BI-related technology constraints persist year over year￭ Mid-sized companies have recently outperformed larger ones and
provide some lessons ￭ Data and application growth are inevitable, making data integration
a critical technology success factor ￭ Some BI platforms match up well with SMB requirements
*
September 2010
BI and the SMB 3
Agenda
￭ arcplan Overview￭ Level set about SMB differences and similarities￭ Lack of needed info and manual processes persist￭ The promise of BI￭ Leading mid-market company success factors in BI￭ How BI Goes Wrong, and How to Make it Right￭ Technology for SMBs￭ New Directions for BI￭ Q&A
September 2010
BI and the SMB 4
BI Effectiveness Quadrant
September 2010
Centralized
Gut-Driven
De-centralized
Metrics-Driven
SMB Large
Entrepreneur In Charge
Egos and Optimism
Team to Beat
Out performers
Size does not dictate management style, yet management style is a determining factor to the effectiveness of the BI Implementation
BI and the SMB 5
SMB Qualities
￭ More likely to be privately held￭ Could be on a steeper growth curve￭ Management is closer to day-to-day operations￭ Fewer IT resources (numbers, skill mix)￭ Accustomed to “making it work” until it can’t ￭ Want quick implementation ￭ Tactical, ROI-driven BI investments￭ Need intuitive products
September 2010
6
arcplan Overview
BI and the SMB September 2010
BI and the SMB 7
arcplan Facts and Figures
￭ Business intelligence solutions vendor founded 1993– The BI Survey9 found among 23 leading BI products
worldwide#1 for Goal AchievementLeading analytical environment for SAP BW,
Oracle/Hyperion and IBM/TM1
– HQ and development centerin Langenfeld, Germany,U.S. HQ in Philadelphia
– More than 2,800 customers– Partnerships in over 30
countries on 5 continents
September 2010
Locations Partners Customers
Automotive
arcplan Customers
BI and the SMB 8September 2010
ClientUsage
Energy / Utilities Retail Manufacturing Pharmaceutical
Airlines Banking / Insurance Chemical High-Tech Other Clients …
Healthcare Public / Associations Media & Telco Food & Beverage
3.000 4.000 1.300 7.000 10.000 1.000 1.500 4.000
Energy / Utilities
BI and the SMB 9
Complete Solution for Enterprise Performance Management
arcplanEnterprise®
arcplan Edge® arcplan Excel Analytics®arcplan EdgeFlexible budgeting, planning,and forecasting
• Manage strategic planning requirements
• Integrated workflow and data consistency
• Centralized Excel Templates• Intuitive Web-based reporting
arcplan EnterpriseMeasure and report actual performanceto all decision-makers and stakeholders
• Interoperability with all major data sources• Complementing existing BI investments• Timely, contextual, and actionable
information• Customizable to any business requirement
arcplan Excel AnalyticsAd-hoc reporting instantlyavailable in an Excel Environment
• Consistent analysis of corporate data• One-click deployment to Microsoft
Excel• Ad-hoc queries• Secure data connectivity
September 2010
10
Lack of Info and Manual Processes Persist
BI and the SMB September 2010
BI and the SMB 11
Classic BI Problems
￭ Information Silos – inadequate integration￭ To standardize or not?￭ Lack of data integrity￭ Lack of data governance￭ Multiplying amounts of data￭ Attachment to spreadsheets￭ Disconnected BP&F process ￭ Out dated reports￭ Limited number of people have access to tools￭ Resource constraints￭ Security￭ Costs, costs, costs
September 2010
BI and the SMB 12
Tech Issues for Financial Execs 2010
September 2010
BI
BI
BI
BI
BI
BI
BI
BI
BI
BI
BI
BI
BI
BI and the SMB13
26%
26%
3%
21%
33%
11%
21%
49%
56%
45%
7%
17%
23%
16%
19%
7%
7%
17%
6%
1%
49%
28%
7%
1%
2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Tax planning
Treasury and cashflow management
Accounting close andfinancial consolidation
Management or financial
reporting and analysis
Budgeting, planning and forecasting
Spreadsheets only
Application and almost always spreadsheets for calculations or analysis
Application and occasionally a spreadsheet for calculations or analysis
Application only No firsthand knowledge
Source: Ventana Research 21st Century Spreadsheet Benchmark Research
Financial Decision-Making Heavily Reliant on Spreadsheets
97% penetration
93% penetration
75% penetration
65% penetration
44% penetration
September 2010
BI and the SMB
14
52%
52%
44%
39%
32%
36%
23%
15%
19%
15%
29%
15%
10%
27%
16%
9%
19%
15%
6%
6%
9%
6%
3%
3%
3%
10%
6%
16%
24%
13%
27%
Sales forecasting or pipeline analysis
Customer analysis
Marketing campaign analysis
Field service planning and management
Price modeling and promotions planning
Call center planning and analysis
Extensive use Only to help manage process
Mainly complements enterprise software
Rarely if ever use
Never No firsthand knowledge
85% penetration
Source: Ventana Research 21st Century Spreadsheet Benchmark Research
Spreadsheet Use in Operational Analysis and Decisions
94% penetration
79% penetration
63% penetration
80% penetration
66% penetration
September 2010
BI and the SMB 15
Strong Investment in BI Continues
￭ Gartner finds among CIOs surveyed (from companies of all sizes) that BI remains among top investments for 2010
￭ SMB Group identified “business analytics” as top investment priority for 2010 for firms with revenues less than $500M
September 2010
16
The Promise of BI
BI and the SMB September 2010
BI and the SMB 17
The Promise of BI – Make Your Organization Perform Better
￭ Drive productivity through reduction in time required to– Generate reports, distribute reports, find needed information
￭ Fuel for the knowledge worker to make better decisions– 85% of new jobs created in the past decade in the US required
complex knowledge skills. Brain power generated more than 70% of all US market value created in past three decades. (McKinsey, June 2010)
– Companies that have higher percentage of knowledge workers (>35%) create returns per employee three times higher than companies with fewer knowledge workers (<20%), but returns are more variable. (McKinsey, June 2010)
Higher returns linked to ease of access to info, collaboration, less bureaucracy
September 2010
BI and the SMB 18
BI is Part of a Larger Equation
￭ People + Process + Technology → Better Performance￭ People
– Skill mix and levels– Leadership style (decision maker or decision facilitator)
￭ Process– Decision Making Biases– Rewards and Evaluation of People
￭ Technology – BI Platform– Data
Volumes expected to increase 5X over next5 years; estimates say 10% of info created is meaningfully organized or deployed.
September 2010
19
Leading Mid-Market Company Success Factors in BI
BI and the SMB September 2010
BI and the SMB 20
Best In Class Want Speedy, Accurate Operational Decisions
September 2010
Lag times and inaccuracy of operational business decisions
Need to understand operational performance drivers
Poor executive visibility into the business
Internal/ executive mandate to find operational efficiencies
Need to improve customer intelligence
Need to improve response to customer demand
Increased cost due to operational inefficiencies
Declining customer retention
0% 10% 20% 30% 40% 50% 60%
51%
39%
29%
29%
24%
12%
10%
2%
42%
45%
34%
32%
11%
15%
15%
3%
42%
39%
36%
25%
11%
17%
14%
6%
Top Pressures for Midmarket and Large Enterprises
Large Midmarket Best-in-Class
Source: “Performance Management in the Midmarket,” Aberdeen Group January 2010
BI and the SMB 21
Pervasive Beats Selective
September 2010
Alig
n p
erf
orm
an
ce
me
tr...
targ
et
pe
rfo
rma
nc
e m
a...
Es
tab
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co
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Ad
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eth
od
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inte
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.
Inc
en
tiv
ize
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rfo
rma
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...
47%
37%32% 32% 32%
16%
67%
50%
17% 17% 17% 17%
Strategic Actions of Best-in-Class Midmarket Compared to Large Companies
Midmarket Large
Source: “Performance Management in the Midmarket,” Aberdeen Group January 2010
22
SMBs Have Half the Data Sources, but Once You Get Past 12....
BI and the SMB September 2010
Small Mid-Sized Large0
20
40
60
80
100
120
15 12
24
6368
98
Data Complexity and Deployment Times by Size of Organization
# of Unique Data Sources Avg. Time to Completion of BI Projects
Source: “Business Intelligence for the Small to Medium Business, Aberdeen Group, Oct 2008
BI and the SMB 23
It’s a Lot of Data to Manage, and in Most Cases, the CFO’s in Charge
September 2010
24
How BI Goes Wrong, and How to Make it Right
BI and the SMB September 2010
BI and the SMB 25
Application Silos
September 2010
General Ledger
Distribution System
Customer Relationship Management
(CRM)
Supply Chain
Management (SCM)
HR & Payroll
Performance Management
Partners Vendors
Customers
Internal Users
BI and the SMB 26
The BI Fix
￭ Move Data Around– Reporting DBMS– Operational Data Stores– Data Marts– Extract, Transform and Load
￭ Large Datawarehouse– Multi-Million Dollar Project– Off Shore Development– Low Success Rate– Use One Vendor‘s DW
September 2010
27
Technology at SMBs
BI and the SMB September 2010
BI and the SMB 28
IT Innovation at SMBs
￭ IT Innovators– CFOs Lead the Way– Mainframe Accounting Systems– Excel Adoption– Analytical
￭ Have Money – Know the Budget– Hold the Purse String
￭ Subject Matter Experts– Hire Their Own IT– Provide SME– Get It Done Mentality
￭ Departments in Large Companies Behave Like SMBs
September 2010
BI and the SMB 29
Tactical Approach
￭ Technology Solves Specific Problem– CFO Departments tackle specific needs– Usually Fast Implementations
￭ Pressure To Get it Done– Competition– The Boss– Customers– Smaller Margins– Regulatory Requirements
￭ Tactical Software Aquisition– Silos of Data– Creates an Integration Problem
September 2010
BI and the SMB 30
The BI Fix
￭ Datawarehousing – No Internal Resources– Too Expensive– Not Enough Time
￭ Coexistence– Make Tactical Decisions with a Strategy in Mind– BI Software as an Integration Tool– Use BI to Create a Uniform Front End
￭ Characteristics– Agile and More Attentive– Innovative– Flexible Price and Technology– Faster Delivery
September 2010
BI and the SMB 31
SMB BI Strategy
￭ Connect the Dots– Be Practical– Faster Implementation– Keep Your Day Job
￭ Best of Breed– Look for Complementary Technology– Find Vendors Willing to Partner– Fill the IT Gap– Buy Don‘t Build– Mitigate Risk by Lower Cost
September 2010
32
Integration
BI and the SMB September 2010
BI and the SMB 33
Integration Buzzwords
￭ ERPs– CRM, Sales Force Automation, GL, HR
￭ Service Oriented Architecture– WebServices– XML and XBRL
￭ Web 2.0– Animated Charts– AJAX
￭ Cloud Computing– Software as a Service
￭ Mashups– Map My Data
￭ Dashboards and Portals
September 2010
BI and the SMB 34
Integration BuzzwordsMashups
September 2010
BI and the SMB 35
Integration BuzzwordsSharePoint
September 2010
BI and the SMB 36
Integration In Practice
￭ Built from Ground Up– Built Strategically– Better, Faster, Cheaper– Impractical Choices– Software Stack
￭ Use What You Have– Silos Aren‘t Evil– Make Them Coexist– Best of Breed
￭ Where Does arcplan Fit In?￭ Are We There Yet?
– Silos Will Be With Us Forever– Full Integration– Pick Vendors Who‘ll Accept That
September 2010
BI and the SMB 37
Integration In PracticeDashboard
September 2010
BI and the SMB 38
Integration In PracticeExcel as a BI Tool
September 2010
BI and the SMB 39
Integration In Practice Excel as a BI Tool
September 2010
BI and the SMB 40
Five Below Stores Improves Pricing, Inventory and Data Governance
￭ 350-location retailer of low cost and seasonal goods￭ Profit dependent upon moving inventory on hand, pricing, time ￭ 350 Excel-based weekly reports submitted by store managers used
for management reporting and purchasing decisions. Entry-level BI solution auto-populates data for managers and analysts, eliminates:– Multiple problems with versions, data accuracy, timeliness, governance– Financial team inefficiencies from manual consolidation, correcting store
managers’ errors, creating reports for buyers– Excess inventory for priced for clearance or allocated to shrink
“We’re saving 40 hours per month in report consolidation alone. The bigger financial effect, however, is that our buyers are able to compare product performance season to season and store to store, and can optimize purchasing and pricing decisions.”
September 2010
BI and the SMB
Merchandising & Retail Performance Management
41September 2010
BI and the SMB 42
Conclusion
￭ Metrics-driven companies outperform the rest￭ Information management gets messy and it’s normal￭ Integration and information access determinants of success￭ Look for platforms that are lightweight, well-integrated, good ROI
for today’s requirements and tomorrow’s– XBRL– Social media as data sources– User self service– Web 2.0 concepts at work
September 2010
BI and the SMB 43September 2010
Questions?
May 2010 43
44
Contact
Kathleen Rohrecker
Director of Marketing
+1 (516) 797-2239 [phone]
+1 (610) 902-0689 [fax]
Babak Nassirian
Solutions Architect
+1 (917) 627-3212 [phone]
+1 (610) 902-0689 [fax]
September 2010BI and the SMB
