Why Bi Projects Fail Australia

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    WHY BUSINESS INTELLIGENCEPROJ ECTS FAILAnd What To Do About I tTimo Elliott, Senior Director Strategic [email protected]

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    INTRODUCTION

    I t s not on ly aboutk n ow ing how t oc l imb

    You a lso have t ok now how not t o fa ll

    o f f

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    BI Im proves Bus iness Per form anc e

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    Barr ie rs t o Deployment

    In tegra t ion

    Ease of u se

    No c lear ROI

    Dat a qual it y

    Cost o f l i c enses

    Cost o f t ra in ing

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    IT Underes t im at es User Di f f ic u l t ies

    Difficult to find information

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    IT

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    IT

    Just the right amount ofinformation is available

    32%

    24%

    Executives Executives

    22%

    55%

    (credibility) gapBase: 406 U.S. IT Executives, 675 Business ExecutivesSource: BusinessWeek Research Services

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    And Underest im at es Value Of BI To TheBusiness

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    Failure Moderately

    Successful

    Very

    Successful

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    Not at All Somewhat Significantly

    How successful do you consideryour BI deployment?

    How much has BI contributed toyour companys performance?

    The percentage of business users seeing the business impact as significant is 15% higher than thepercentage of IT professionals saying the impact on company performance has been significant

    Businessgap

    Source: Successful Business Intelligence, Cindi Howson

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    Timos Law o f B I

    Ex ec ut ives w i l l ALWAYSbe d issa t is f ied w i t h the i r

    in fo rmat ion syst em s

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    CHANGING THE BUSINESS

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    Aim High

    Not imp lementso f twa re

    Not k eep thebusiness happy

    A im t o t rans fo rm t he

    w ay the bus inessw o r k s

    Pain t t he v is ion

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    Fo l low t he Money

    Trac k info rmat iont o i t s f inaldest ina t ion in anysystem

    Why i s i t be ingused

    Whatm igh t c hangeas a resu l t

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    Aim For 100% Deploym ent

    Target al l uses and users

    To be successful with BI, you need to be thinking about deploying itto 100% of your employees as well as beyond organizational

    boundaries to customers and suppliers Cindi Howson

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Failure Moderately

    Successful

    Very Successful

    Perceived Potential

    Current %

    Source: Successful Business Intelligence, Cindi Howson

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    PEOPLE, NOT TECHNOLOGY

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    People Sk i l ls Mak e or Break BI Pro jec t s

    Invest m ent Hist or ic a l Det erm inant o f Success

    People 2% 20%

    Proc ess 2% 15%

    Organizat ion 2% 10%

    Cul t ure 1% 20%

    Leadersh ip 1% 10%

    Dat a 10% 15%

    Tec hnology 82% 10%

    75% of success determinedby things OTHER than dataand technology

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    IT / Business Relat ionship

    Trust and respect

    Business Person Archetype IT Professional Archetype

    Extrovert Introvert

    Sociable Solitary

    Freewheeling Methodical, systematic,disciplined

    Risk-taking Risk-aversePrefers face-to-face meeting Minimal face-to-face communication,

    email and instant messaging is fine

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    I tried being reasonable Ididnt like it

    Dirty Harry

    Tough Love

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    Choose Your UsersCarefu l ly

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    User Adopt ion

    8%

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    Com m on User Adopt ion Issues

    Train ing for IT

    Tra in ing on dat a

    Cont inued t ra in ing

    Bes t p rac t i ce

    Cul ture

    Ex pec t a t i on se t t i ng

    Ease of use

    Even if anapplication isintuitive enough tobe usable withoutinstruction, anyrelated process or

    culture changesshould be drivenhome with at least aquick tutorial.

    What dooms IT

    projects August 31,

    2005

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    Congratu la t ions !Youre in Mark et ing!

    Evangel ize

    Promote early, promote often

    Name the system

    Find successes, keepexplaining the value

    Highly visible dashboards

    Internal seminars

    Newsletters

    Trophies for best projects

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    Evangel iz ing

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    Evangel iz ing

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    St or ies A re Good For Business

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    K now Thyse lf

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    In form at ion Cu l t u re

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    In form at ion Cu l t u re

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    In form at ion Cu l t u re

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    Failure Moderately

    Successful

    Very Successful

    Gut-Feel

    Fact-Based

    Source: Successful Business Intelligence Cindi Howson

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    Proc ess, Not Pro jec t

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    BI is Designedfor Change

    START

    FINISH

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    BI Met hodo logy

    IT

    Business

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    Al ign Wi t h Bus iness Proc esses

    TriageAssessment

    and Entry

    PatientRegistration

    Patient Statusand Room

    Assigned

    Nurse ExamIndicator

    Changed

    PhysicianExamines

    Patient

    PhysicianNote

    Created

    Labs and/orX-rays areOrdered

    Lab Report(s)Returned via

    EDIM

    Physician NoteCompleted

    Prescription(s)Written

    PatientReferred for

    Follow-up Care

    DischargeInstructions

    Created

    ElectronicChart

    is Completed

    History Fileis

    Created

    PatientArrives

    PhysicianConsults with

    Patient

    PatientDischarged

    PatientLeaves ED

    EDIM ReportsCreated/Printed

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    Appl ica t ions

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    Appl ica t ions

    BI C C

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    BI Com pet enc y Cent er

    Store, maintain, integrate dataImplement changes

    Summarize and analyze

    Discover and explore

    Link to corporate strategyAlter processes

    Prioritize and set expectations

    Gather requirementsEvangelize

    Monitor satisfaction

    Interpret resultsDevelop alternatives

    Identify dataExtract dataValidate data Engineering skills

    Analysis skills Relationship skills

    Leadership skills

    I t i d V l

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    Inc ent ives and Va lue

    Tragedy o f the com m ons

    In terna l p r i c ing

    BICC R t C d

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    Act ive usage

    Sat is fac t ion

    New reques ts

    St andard report s

    App l i ca t ions

    Serv ice

    T ime

    BICC Repor t Card

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    VALUE, NOT COST

    Wh t t h ROI?

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    What s t he ROI?

    BI ROI

    ROI i H d t K i Ad

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    ROI is Hard t o K now in Advanc e

    One of the key contributorsto poor IT investmentperformance is anunbalanced approach takenby executives at the project

    approval stage.

    Too often, the overridingemphasis is on quick

    payback or demands for thereturn on investment (ROI)to be demonstrated infinancial terms.

    Gartnr, Total Value ofOpportunity The RealMeasure for BI

    B i P l H Sh t M i

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    Business People Have Shor t Mem or ies

    BI is Bec om ing Miss ion Cr i t ic a l

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    BI is Bec om ing Miss ion-Cr i t ic a l

    Finding Value

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    Finding Value

    4% Technology-related benefits

    42%Productivity-related benefits

    54%Business process

    enhancements

    Previous pro jec t s

    Finding Value

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    Finding Value

    Doing t hings FASTER

    Finding Value

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    Finding Value

    Minimiz ingRISK

    Al ign Wit h t he Goals Of t he Organizat ion

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    Al ign Wi t h t he Goals Of t he Organizat ion

    Link BI goa lst o w h atexecu t i ves

    c are about

    Source: Accenture

    Sales Tec hniques

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    Sales Tec hniques

    Tec hniques for unders tand ing ex ec ut i veneeds

    Prov id ing answ ers toprob lems, not t ec hnologyin f ras t ruc tures

    Get t i ng your p rojec t s t o t opof m ind

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    Play on Doubt

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    Play on Doubt

    St ar t ask ing quest ions about t henumbers t ha t d r i ve t he bus iness

    You dont k now ?!

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    INSIGHT, NOT DATA

    101011011101001011101011010111010110101011001011010101

    101011011101001011101011010111010110101011001011010101

    101011011101001011101011010111010110101011001011010101

    101011011101001011101011010111010110101011001011010101

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    Lac k of Trus t

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    Lac k o f Trus t

    43% of users say t hey re not sure i f i n te rna l in format ion i s ac c ura te

    77% sa id bad dec is ions had beenm ade because o f lack o f info rmat ion

    5 out o f 4 people dont be l ieve

    s ta t i s t i cs i n p resent a t i ons

    Business Week study, 2005

    Dat a Qual i t y

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    Dat a Qual i t y

    Poor-quality customer data costs U.S. businesses $611 billion a year.

    Yet nearly half of the companies surveyed admit they have no plans toimprove data qualityThe Data Warehousing Institute study

    Dat a Qual i t y

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    Dat a Qual i t y

    Dat a Prof i l ing

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    Dat a Prof i l ing

    J ust i fy ing Dat a Qual i t y

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    J ust i fy ing Dat a Qual i t y

    Cal l i t Dat a Governanc e

    Risk , Produc t iv i ty

    Time Spent on Data Quality

    5% 6% 6%10%

    15%12%

    9%

    36%

    1hour

    2hours

    3-4hours

    5hours

    6-10hours

    11-20hours

    21+hours

    NotSure

    Source: Harris Interactive Poll

    Dat a Lineage

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    Dat a L ineage

    Go Fast er

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    Go Fast er

    Fast er = Higher Business Value

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    Fast er Higher Bus iness Value

    Source: DM Direct, Nigel Pendse, March 2006

    Target s and Incent ives

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    Target s and Incent ives

    70,00070,000

    172172

    280,000280,000

    Dat a Misuse and In t erpre t a t ion

    http://www.rexfeatures.com/set/preview/748137?pg=6&pl=1&pic=748137006http://www.rexfeatures.com/set/preview/748137?pg=2&pl=1&pic=748137002
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    at a suse a d t e p et a t o

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    FLEXIBLE PRAGMATISM, NOT

    RIGID PROCESSES

    No p lan surv ives

    f ir st c on tac t w i t h t heenemy

    Claus von Clausewitz

    Finding An Ex ec ut ive Sponsor

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    Finding An Ex ec ut ive Sponsor

    Trac k record of IT suc c ess

    Evangel ism

    Com pany goals

    His / her c areer

    L ike ly tha t sponsor w i l l c hange:

    bui ld broad base of support

    Why ShouldI Care?

    St ay ing Zen

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    y g

    Do less

    K eep i t s im p le

    Clean up

    BICC ef f ic ienc ies

    IT dashboardsStandard ize

    SOA / Web Servi c es

    SaaS

    BI St andardiza t ion Calc u la t or

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    Succeeding

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    gDespi t e Advers i t y

    Keep the p ro jec t up tospeed

    St ruc t ure t he pro jec tin to sm al le r ones

    Ensure a l ignm ent a t a l l

    t imesAdmi t p roblems fas t

    St i c k w i t h it !

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    CONCLUSION

    Selec t ed Referenc es

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    Competing on Analytics

    by Thomas

    Davenport

    Successful Business Intelligence: Secrets to

    Making BI a Killer App by Cindi HowsonBusiness Intelligence Competency Centers:A Team Approach to MaximizingCompetitive Advantage

    by Gloria J. Miller

    et. Al.Business Intelligence: The Savvy Manager'sGuide

    by David Loshin

    TDWI Best Practices Report 2008: PervasiveBusiness Intelligence: Techniques andTechnologies to Deploy BI on an EnterpriseScale

    Bus iness In t e l l igenc e is about People ,

    http://www.amazon.com/gp/reader/1422103323/ref=sib_dp_pt#reader-linkhttp://www.amazon.com/gp/reader/0071498516/ref=sib_dp_pt#reader-link
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    Computers are useless. Computers are useless.

    - Pablo

    They can only give you They can only give youanswers

    .

    answers.

    Not Tec hnology

    Conclus ion

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    BI is not (only) about

    Technology

    Projects

    Cost

    Data

    Plans

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