MIPRO 2005 Presentation Arian

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    AgendaAgenda

    Where are we today?Where are we today?

    7 mortal sins7 mortal sinsQuo Vadis BI?Quo Vadis BI?

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    Where are we today?

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    Data

    BI = going from data to decisionBI = going from data to decision

    Data isnData isnt information!t information!

    Data + structures =Data + structures =

    informationinformation

    Information isnInformation isntt

    knowledge!knowledge!

    Information + analytics =Information + analytics =

    knowledgeknowledge

    Knowledge isnKnowledge isnt decision!t decision!

    Knowledge + human =Knowledge + human =decisiondecision

    Structure Analytics

    Human

    Decis

    ion

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    Last 30 yearsLast 30 years

    Economy

    BI applicatons

    1970 20051990 2000

    IBM Microsoft

    EIS, MIS

    Teradata, Hyperion,

    Seagate, Oracle...

    RG, DW, OLAP MS OLAP

    BSCIndicators

    BSCMIS

    applications

    Golden age of report generators Dashboard

    applications

    1980

    Costs of base technology

    (including OLAP)

    Total Quality Management

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    Complete IT systemComplete IT system

    Data WarehouseData Warehouse

    Data Marts

    Production applications(ERP, MRP...)

    OLAP

    Analytical applications

    (Olap clients, Data Mining...)

    Specialized BI applications(Planning & Budgeting, BSC, BPM, CRM, HR...)

    Report generators(Crystal, Business Objects, MS Reporting...)

    BI

    Reporting

    Analytical

    & reporting

    system

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    7 mortal sins

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    7 mortal sins (57 mortal sins (5--7)7)

    "Darwin was right: BI projects need to evolve"Darwin was right: BI projects need to evolve Business demands projects to be short and simple, and to have anBusiness demands projects to be short and simple, and to have an

    immediate return, but this could easily lead to the wrong scopinimmediate return, but this could easily lead to the wrong scoping of projects.g of projects.Just as using the same templates time after time mean plans rareJust as using the same templates time after time mean plans rarely evolve,ly evolve,building in the same limitations in to a new system is one of thbuilding in the same limitations in to a new system is one of the greateste greatestinhibitors to success. BI needs to evolve but BI projects shouldinhibitors to success. BI needs to evolve but BI projects should notnot -- theytheyshould start and stop and not evolve.should start and stop and not evolve.

    "We can outsource the whole thing"We can outsource the whole thing Enterprises must define their BI key competencies and capabilitiEnterprises must define their BI key competencies and capabilities in orderes in order

    to determine what to into determine what to in-- or outsource.or outsource.

    "Just give me a dashboard!"Just give me a dashboard! Companies must have a solid and stable BI infrastructure in placCompanies must have a solid and stable BI infrastructure in place first. Theye first. They

    should then create a networked approach where these new technoloshould then create a networked approach where these new technologies aregies areable to communicate with other BI technologies inside and outsidable to communicate with other BI technologies inside and outside thee the

    organisation, as well as with other technologies such as businesorganisation, as well as with other technologies such as business processs processmanagement and application integration. A management dashboard smanagement and application integration. A management dashboard shouldhouldbe seen as the finishing touch.be seen as the finishing touch.

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    Quo Vadis BI?

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    Rearrange the BI pyramidRearrange the BI pyramid

    5%

    15%

    80%

    Analyses

    Dynamic

    reporting

    Static

    eporting

    Today (2005)

    15%

    60%

    25%

    Analyses

    Dynamic

    reporting

    Static

    reporting

    Tommorow (2015)

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    Business is multidimensional, but whatBusiness is multidimensional, but what

    about BI applications?about BI applications?

    Fact:Fact: Human perception is multidimensionalHuman perception is multidimensional

    Typical business dimensionsTypical business dimensionsTime, Organizational structure, Hierarchies of products,Time, Organizational structure, Hierarchies of products,

    Hierarchies of customers (partners),Hierarchies of customers (partners), GeographicGeographical distribution...al distribution...

    Conclusion:Conclusion: OLAP data perfectly match humanOLAP data perfectly match humanperceptionperception

    Problem:Problem: BI applications generally do not useBI applications generally do not use

    OLAP data as much as they shouldOLAP data as much as they should

    Solution:Solution: Raise the abstraction level for mostRaise the abstraction level for most BIBI

    applicationsapplications toto use OLAP datause OLAP data as a primary sourceas a primary source

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    Measurments should be comparableMeasurments should be comparable

    Fact:Fact: Human perception is multidimensionalHuman perception is multidimensional

    Typical business dimensionsTypical business dimensionsTime, Organizational structure, Hierarchies of products,Time, Organizational structure, Hierarchies of products,Hierarchies of customers (partners),Hierarchies of customers (partners), GeographicGeographical distribution...al distribution...

    Conclusion:Conclusion: OLAP data perfectly match humanOLAP data perfectly match humanperceptionperception

    Problem:Problem: BI applications generally do not useBI applications generally do not use

    OLAP data as much as they shouldOLAP data as much as they should

    Solution:Solution: Raise the abstraction level for mostRaise the abstraction level for most BIBI

    applicationsapplications toto use OLAP datause OLAP data as a primary sourceas a primary source

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    Next 10 years (SMB)Next 10 years (SMB)

    BI spendings

    2005 201520122007 2010

    DW

    +

    OLAP clients

    DW + OLAP clientsDW + OLAP clients

    Business analyses

    Performance applicationsCBEM and the birth of

    networked BI systems

    Increase of 50x!

    100%

    Business analyses

    Performance applications

    Benchmarking

    5,000%

    1,500%

    2,500%

    4,000%