Mombasa Analytic Trends

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Timo Elliott, December 2016

Analytic Trends

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Agenda

Top Trends

Supporting “Modern BI”

Big Data Architectures

Organizing for BI

Conclusion



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Health indicators across fleet


New Business Models

Kaeser Compressor, a global leader in air compressors

≈€500 million, 4,800 employees, 50 countries, partners in additional 60 countries

Modeling Example

E.g. Total energy consumption

• Aggregation of 10 sec values

• Calculation of typical consumption patterns

• Pattern associated with each compressor and day

Repeat for temperature, pressure, vibration, etc.

Predictive Examples

Model combines sensor readings and ERP data (location, type of usage, last service, etc.)• Status alerts: “Oil change / oil analyze / no action”• Predict machine failure 24 hours in advance

High-Level Technical View

Predictive Model(in-memory)

Long-term disk storage

User Interfaces

CRMERP

Event Stream Processing

all sampled

Customer Field Svs Sales R&D

DW

Benefits

Customers• Less downtime• Decreased time to resolution• Optimal longevity and performance

Kaeser• More efficient use of spare parts, etc• New sales opportunities• Better product development

“We are seeing improved uptime of equipment, decreased time to resolution, reduced operational risks and accelerated innovation cycles.

Most importantly, we have been able to align our products and services more closely with our customers’ needs.”

Kaeser CIOFalko Lameter

18

Top Trends


Technology Priorities for 2016 and beyond

Rank Technology Trend

1 BI/Analytics2 Cloud3 Mobile4 Digitalization / Digital Marketing5 Infrastructure & Data Center6 ERP7 Security8 Industry-Specific Applications9 Customer Relationships

10 Networking, Voice, and Data Comms

Nine out ofeleven years2006-2016

ANALYTICS

#1


BI Success …

“BI initiatives described as ‘successful’ dropped from 41% to 35% in 2015”

Techtarget, 2015

Source: TechTaget

http://webcache.googleusercontent.com/search?q=cache:ytcBuSnp_34J:searchbusinessanalytics.techtarget.com/news/4500247197/New-reports-highlight-state-of-BI-reporting-tools+&cd=1&hl=en&ct=clnk&gl=us




The Penetration of BI Remains Low

Penetration of business intelligence solutions

Under 10%

11-20%

21-40%

41-60%

61-80%

81% or more

0% 5% 10% 15% 20% 25% 30% 35% 40%

“Close to 40% of organizations report fewer than 10% of employees using BI. The two highest levels of penetration actually declined year over year. “

Enterprise systems are too slow

31% wait days or weeks for an average BI request

Enterprise BI: too little data, and too hard to use


Business Users Do Not Fully Trust Enterprise Data

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Do People Actually USE Data?

Room for improvement…

Most of the data users need isn’t in the system

“We found, on average, that 45% of the data business people use resides outside of the enterprise BI environments.

An astonishingly miniscule 2% of business decision-makers reported using solely enterprise BI applications.” - Forrester

55%

45%

In enterprise systemsNot in enterprise system

40% are using an equal amount or more of homegrown applications

So users turn to their own systems…

Supporting “Modern BI”


Data-Driven Approach

Push:• From IT• Data-Driven• Data to Insight• Technology-Centric

A.S.P.I.R.E.


Value-Driven Approach

Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric


Combination Approach

Push:• From IT• Data-Driven• Data to Insight• Technology-Centric

Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric


“Systems of Insight”

“Earlier-Generation BI Is No Longer Enough”

• Earlier-generation BI can’t keep up in the age of the customer.

• Agile BI and big data are the building blocks of systems of insight

Source: Forrester Research, Inc.


You Need Both of These…


Invest in Self-Service Data Discovery Tools

“Through 2020 spending on self-service visual discovery and data preparation market will grow 2.5x faster than traditional IT-controlled tools for similar functionality”

– IDC, 2015


Invest in Self-Service Data Preparation

SAP Agile Data Preparation

I.e., “Data Blending” — combine, merge, cleanse data


Invest in Predictive Analytics

Model deployed using In-Database-Apply

Customer Database

Hancock, John M 38 D Y 4.2 N Y

Doe, Jane F 45 M Y 9.4 N N

Red, Simply F 18 S N 2.1 N Y

SQL Dataset w/ Scoring

Business Users can get on-the-fly scoring without even knowing they are using predictive algorithms

BI Artifact(or even just a dataset)

SAP BI (3.x/4.x)

Embedded into any application

SQL

(Or any other application)

https://cloud.saplumira.com/explorer?itemId=53044C6E5B755FF7E10000000A4E423F&type=HANALYTIC&initialMode=View


SAP BusinessObjects Cloud

Organizing For BI


What Is a BICC?

A Business Intelligence Competency Center (BICC) is a cross-functional organizational team that has defined tasks, responsibilities, roles, and skills for supporting and promoting the effective use of

Business Intelligence across an organization


The Basic BICC Setup

Business Intelligence that is:• Standardized• Repeatable• Clearly understood across the company

Regular, well-communicated releases• Jointly agreed between Business and IT• Facilitates the business areas planning and

scheduling of report requests

A steering group of senior management• Majority business leaders with strong

representation from IT

Clear measurements to follow up performance• Usage and user feedback


Basic Goal: Make BI More Strategic and Cost Effective

Reactive

Maintenance

Strategic

Reactive

Maintenance

Strategic


BICCs Bring Big Benefits

Every winner of a BI Best Practice Award has a BICC

Decreased software costs

Decreased staff costs

Better understanding of the value of BI

Increased decision-making speed

Increased business user satisfaction

Increased usage of Business Intelligence

24%

26%

45%

45%

48%

74%

Organizations with a BICC see the following benefits:


BICC Key Skills

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BICC Key Skills

Store, maintain, integrate dataImplement changes

Summarize and analyzeDiscover and explore

Link to corporate strategyAlter processesPrioritize and set expectations

Gather requirementsEvangelizeMonitor satisfaction

Interpret resultsDevelop alternatives

Identify dataExtract dataValidate data Engineering skills

Analysis skills Relationship skills

Leadership skills


The Main Functions and Responsibilities of a BICC

Source: Capgemini BICC Study 2012

http://www.slideshare.net/capgemini/business-intelligence-competency-centers-best-practices


Functional Areas of the BICC

TextBusiness

Intelligence Program

BI Delivery

Data Stewardship

Training

Advanced Analytics

Support

Vendor Management

Data Acquisition

Executive Sponsor


Embrace Shadow IT

Don’t fight back — be a co-conspirator …

40% of users are using an equal amount or more of homegrown applications


Updating the Traditional BICC to Include Community

A Business Intelligence Competency Center (BICC) is a cross-functional organizational team that has defined tasks, responsibilities, roles, and skills for supporting and promoting the effective use of Business Intelligence* across an organization

* I.e., Analytics, Big Data, Data Science, etc.


It’s About Culture Change First and Foremost

From Power to Empower

From Collection to Connection

From Control to Trust

New BICCs are about providing good governance and encouraging best practice rather than providing reports and analytics

Conclusion


“Judge a man by his questions rather than his answers.”

Voltaire


It’s All About the Relationship!


Thank You!Timo ElliottVP, Global innovation Evangelist

[email protected] @timoelliott