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UnileverJuly 2007, UK
The future of BusinessIntelligenceNeil Chandler Research Director
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
BI is the #1 item on the CIO agendaCompanies have too much BI software
Technology cannot solve political issuesNo compliance with risky data
Who takes care of your data?
Managing information with spreadsheets
What is the single version of the question?
BI is the #1 item on the CIO agendaCompanies have too much BI software
Technology cannot solve political issuesNo compliance with risky data
Who takes care of your data?
Managing information with spreadsheets
What is the single version of the question?
A few observations
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
The Biggest Fatal Flaws of BI!
Our enterpriseapplicationvendor willdo it all Data quality
problem wedon't haveone
Gimme adashboard
We canoutsource thiswhole darnBI thing Darwin was
wrong: BIdoesn't evolve
If you build it,they will come
Managers
need to"dance withthe numbers"
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Key Issues Trends: Which technology and business trends
will have an impact on BI in the next five years? Business: How can organizations leverage BI for
competitive advantage? Market: How will the market for BI solutions
develop?
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Market Trends Retail
- Industry consolidation and Global expansion- Need for faster response to consumer demand- Need to manage demand and supply across multiple
channels
- Need to better manage margins, control shrink and reduceprice erosion- Increasing regulatory control and ethical considerations
All Industries- Financial Reporting (XBRL, Corporate Social Responsibility)- Performance Management- Information Management
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Codes and Tags will transform information
exchange
QRcode
http://www.printronix.com/library/assets/public/images/rfid/tags/squiggle-label-peel-rfid-printer-lg.jpghttp://www.printronix.com/library/assets/public/images/rfid/tags/squiggle-label-peel-rfid-printer-lg.jpg8/10/2019 Future of Business Intelligence
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
BI Trend No. 1Portfolio rationalization and BI platform standardization
have the highest priority in many organizations;however, actual migration is cumbersome.
V e n d o r A
V e n
d o r
B
V e n d o r C
S t a n d a r d
B I P l a t f o rm
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
BI Trend No. 2BI is increasingly deployed to large numbers of users,
including users outside the firewall, such aspartners, suppliers or customers.
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
BI Trend No. 3There is a marriage between enterprise applicationsand business intelligence, with vendors providingmore integrated solutions.
B I
E R P
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
BI Trend No. 4Organizations are increasingly using predictive
analytics for planning, forecasting and otherfuture-oriented requirements.
C o s t F r a u d P r o f i t M a r g
i nQu a li t y
R e v e n u e
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
A Wide Portfolio of
Business Intelligence Capabilities
Scorecards
WhatHappened?
Why Did itHappen?
What WillHappen?
Reporting
Ad HocQuery
Visualization
BAM
PredictiveModeling Data
Mining, Scoring
Spreadsheet
Potential Business Impact: Low Medium High Highest
Level of Insight
Event
Levelof Interaction
Interactive
Scheduled
Dashboard
OLAP
What IsHappening?
InformationDelivery
Analysis
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Todays reality: Pockets of success and
silos of technology and skills
Information Apathy:
Big investments not much use
Analytic ObsessionSilos of applicationsand expertise
BI infrastructureand technology
BI Maturity CurveIdealTypical
Information Anarchy
Spreadsheets
Pervasive BI or
BI for Masses Driving BusinessTransformation
Use and analysis of information
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
A new, broader BI framework is needed2012: Business Intelligence and PerformanceManagement Driving Business Transformation
2004: IT Driving BI
BI Platforms
Data Warehouse
Decide
Align
Measure
Optimize
Innovate Discover
MeasureBusiness Strategy
People Process
Analytic Applications
BI Platforms
InformationManagementInfrastructure
PerformanceManagement
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
What's Driving Interest in
Information Management? Across the Enterprise
Process SimplificationEliminate redundancy
Drive to standardizationPromote reuse and data quality
ComplianceReduce risks with conflictingsources
Transparency of information"Infoglut"Manage expanding volumeand velocityUncontrolled unstructuredcontent
Vendor ConsolidationSpend less on samefunctionality/technology
M&AReduce integration burdens
EfficiencyEnterprise Agil ity
Sense and respond
Consistency and accuracyContinuous information flowsRapid process orchestration
Real TimeClosed-loop analytics
Immediate integration withpartners, suppliers
Single ViewConsistent and holistic viewacross all channelsRelationship management
Revenue OptimizationSupport top-line growth oncross-sell/upsellLeverage global purchasingpower
Differentiation
Trx.
DocumentsMedia
Customers Employees Partners
Databases
Orgs.
Financials
Products
WebContent
ReportsE-Mail
Management
Enterprise
Information
Across All Content
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Deriving Value From EnterpriseInformation Leading organizations incorporate information assets into
their business intelligence.- Treat information as an organizational asset
Optimize availability and quality Balance accessibility vs. security Improve information supply chain performance
and integration Squeeze more value out of information Optimize and eliminate overlapping processes Improve enterprise performance Trade information for goods and services Strengthen enterprise relationships (partners,
employees, customers/constituents, suppliers)
Information must be managed as a currency save it,invest it, spend it, manage it and account for it.
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Drivers and Inhibitors
Skills- Lack of best practices and methodologies
to manage a complex and pervasive set ofBI capabilities
- Users cant understand the analysis andcorrectly interpret the results
Stabili ty and flexibil ity of businessprocesses
- Low process maturity- Lack of closed-loop process management
Silo think- Of infrastructure, applications, definitions,
rules, calculations, etc.- NIH syndrome
Home grown, aging and proprietary
technologies- Spreadsheet as information systems ducttape
Sponsorship- Limited vision and perceived business
value/impact
Consumerization of use of information- High expectation of ability to use
and access Standardization/commoditization
- Basic BI platform functionality(i.e., reporting, query, dashboards) broadlyavailable & good enough
Modularization- BI functionality becomes more
componentized and service-oriented- Users and developers can more easily
customize- Users can add value in pursuit of
self-interest Networked collaboration
- Fosters environment of innovation andcontribution- Ability to easily share and manage user
insights and contributions across widenumbers of users and applications (not justinternally, either)
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Worldwide growth continues
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2004 2005 2006* 2007 2008 2009 2010
"Pure Play BI" - 5.7% CAGR "Up and comers" - 7.2% CAGR
"Mega-vendors" - 20.1% CAGR
Millions of $ *2006 market sizes are preliminary
Top market share Business Objects/Cartesis
Cognos SAS Inst.Significant influence/presence in installed base
Oracle/Siebel/Hyperion SAP/Pilot/OutlookSoft IBM "missing in action"
as BI platform vendor Microsoft
CPM and BI vendors mergeOpen Source on the edge ofthe radar Software as a Service
Worldwide Total Software Revenue By Vendor Focus
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
Magic Quadrant Business IntelligencePlatforms, 1Q07
challengers leaders
niche players visionaries
completeness of vision
a b i l i t
y t o
e x e c u
t e
challengers leaders
niche players visionaries
completeness of vision
a b i l i t
y t o
e x e c u
t e
(From "Magic Quadrant for Business Intelligence Platforms, 1Q07 26 January 2007)
As of January 2007
SAP Business ObjectsCognosMicrosoft
Hyperion Solutions
Information Builders OracleSAS
MicroStrategy
QlikTech
Actuate
Spotfire Applix
Panorama Software
arcplan
Mega Software
Growth: +54%Mkt. Share: 22%
Pure Plays
Growth: +7%
Mkt. Share: 64%
Up and Comers
Growth: +25%Mkt. Share: 4%
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
What can you do on Monday to plan forthe future?
Business Strategy- Define the key drivers and measures for
business transformation.
- Begin socializing a broader framework for a BIand performance management continuum.
People Strategy
- Assess your maturity and commitment to BI andperformance management.
- Define an appropriate organizational structure tocreate a culture that supports and manages BI.
Technology Strategy- Take advantage of the competitive market to buy
BI at lower prices.
- Be prepared for changes in technology and
products
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2007 Gartner, Inc. and/or its affiliates. All right s reserved.
2006 Gartner, Inc. All Rights Reserved.
Thank You.
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UnileverJuly 2007, UK
The future of BusinessIntelligenceNeil Chandler Research Director