Business Intelligence as a Strategy for the New Economic Reality[1]

8/6/2019 Business Intelligence as a Strategy for the New Economic Reality[1]

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Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Business Intelligence as aStrategy for the New EconomicReality

IDC BI Roadshow 2009

Laurentiu Popescu

IDC Romania


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Sep-09 2008 IDC 2

Trends in the Economy, Romania 2009 vs2008

Key Economic Indicators: 2008

GDP 2008: RON $ 504 billion= Euro 120billion

GDP has increased in 2008 by 7.1%versus 2007

GDP per capital: Euro 5454

Inflation: 7% in 2009Unemployment: 4.4% in 2008, thoughstarted to increase in Q4 in result ofeconomy slow-down

FDI: RON 90 billion in 2008 a year-on-year increase of 17.1%

Source: INS

Key Economic Indicators: 2009

GDP 2009: RON $ 463 billion= Euro 109billion

GDP is expected to decrease in 2009 by8.1% compared to the previous year

GDP per capital: Euro 4954

Inflation: expected decrease from 7% in2008 to average 6.3% in 2009

Unemployment: 6.8% estimated for2009

FDI: down by 42.9% in H1 2009


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Sep-09 2008 IDC

Market in Economic Context 2008:IT Spending Ratios

Source: IDC, 2008

Lithuania

Greece

Estonia

PortugalLatvia

Poland

SlovakiaSlovenia

IrelandSpain

Czech Republic

Hungary

Italy

EU-15

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

2.2%

2.4%

2.6%

2.8%

0 200 400 600 800 1,000

IT Spending/Capita ($ per year)

ITSpend

ing/GDP

Romania

Bulgaria

Turkey

FYROM

Serbia

Montenegro


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Sep-09 2008 IDC

70%

18%

12%

Romania Total IT 2008US $2678,03 million

Romanian IT market in CEE Context

Source: IDC Black Book Q3, 2008

64%

23%

13%

CEE Total IT 2008US $62529,61 million

5,000

15,000

25,000

35,000

45,000

55,000

65,000

75,000

85,000

2007 2008 2009 2010 2011 2012 2013

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Total IT Market Hardware totalPackaged software total Services total

Total IT

500

900

1,300

1,700

2,100

2,500

2,900

3,300

3,700

2007 2008 2009 2010 2011 2012 2013

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total IT Market Hardware total

Packaged software total Services total

Total IT

Forecast 2008-2013 Forecast 2008-2013


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Sep-09 2008 IDC 5

Why did companies struggle despitehaving implemented BI?

The crisis hit so rapidly!

BI systems were focused on past performance with no

forecasting capabilities Companies underestimated the extent of slowdown

Companies initially did not believe the data and forecasts

Companies management (they are gone now) did not reactproperly to the data from BI systems (overconfidence,neglection)

Companies did see the doom coming, but we reacted in awrong way

Compared with other companies in their vertical somecompanies did well-BI helped make right decisions on time


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Sep-09 2008 IDC 6

Questions to answer

Did we have enough data to make right decisions?

Did we have data good enough to make right decisions?

Did our systems support data and information based

forecasting? Did we assess past decisions to find mistakes?

Did we gather all knowledge existing in the company neededfor making the right decision?


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Key issues

Data quality

Pervasive BI

Knowledge base


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IDC Survey: Collaborative decisions

Users are NOT satisfied with the technologies supporting decision making


9/18Sep-09 2008 IDC 9

IDC Survey: Collaborative decisions

Users are NOT satisfied with the technologies supporting decision making


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Decision types

Strategic decisions scope of decision: broad

number of decisions: low

level of uncertainity: high

level of collaboration: high

degree of automation: low

Operational decisionssomething in between

Tactical decisions scope of decision: narrow

number of decisions: high

level of uncertainity: low

level of collaboration: low

degree of automation: high

We willdiscontinue to

produce SUVs

10% discount can begranted when you are

buying two cars

We will start offeringpromotional version with

free AC in Poland


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Limitations of traditional BI as a decisionsupport

No access to all relevant information (data centric)

Not enough support for real-time monitoring, alerting, messaging

No support for collaboration

No documentation of lessons learned

DW and BI is not enough!

Additional requirements:

Predictive analysis tools

Multidimentional analysis tools

Search tools

BPM and BAM


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Four solutions that fill the gaps

Collaborative analysis and planning

Knowledge capture and learning

Unified access and analysis of structured data and unstructured content

Intelligent process automation


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Collaborative analysis and planning

Only 4.4% of respondents are very satisfied with collaborationtechnologies supporting decision making

Multiple, disconnected apps needed to accomplish informationanalysis and sharing is frustrating for 47% of respondents

--------------------------------------------------------------------------------------

SOLUTION:

Sharing information in the context of the application

Discussion wikis

Polling, ranking, tagging, annotating

Instant messaging

Searching

Source:/Notes:


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Knowledge capture and learning

Only 5% of respondents indicated that outcomes of decisions

are documented very frequently

Learning from experience is a key for more productive decisions

---------------------------------------------------------------------------------------SOLUTION:

Metadata constructs that allow defining decisions and relatedevents coupled with search tool enabling queries by relevantevents and/or decisions

Source:/Notes:

U ifi d A A l i d


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Unified Access, Analysis andManagement of Information

Software tools and applications are segregated to handleeither structured data or unstructured content

Users got used to the situation, but would appreciate solutionthat would merge both worlds

-----------------------------------------------------------------------------------

SOLUTION:Creation of an extended, semantic index rich enough to capturemeaning from both content and data*

Key requirement: ability to capture meaning of data andinformation in a form that can be represented within the structuresupporting the access.

* End to end solutions for unified access, analysis and management of information arestill in the early stage of development

Source:/Notes:


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Intelligent Process Automation

There is no need to make repeatable, tactical decisions whenthey can be automated

Analytics should drive the workflow in those cases

-----------------------------------------------------------------------------------

SOLUTION:

Business Activity Monitoring inspects the flow of transactionssending alerts when defined threshold, pattern or condition isobserved.

Predictive models evaluate decision alternatives and make

optimized recommendations.

Source:/Notes:


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Essential Guidance

Think about expanding your BI environment to better supportdecision makers

Make BI more pervasive to influence more corporate decisions Eliminate the disconnect between technical users and decision

makers

IT systems can only SUPPORT decision makers

Support collaboration

Track and monitor decisions

Capture best practice process for decision making

Documents

Business Intelligence as a Strategy for the New Economic Reality[1]