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Transcript of Www.idc.com Bill Clough Vice President, Software Research IDC EMEA Intelligent Business Intelligence...
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Bill CloughVice President, Software Research
IDC EMEA
Intelligent Business Intelligence
Who’s Afraid of Complexity:
The Problem with IT TodayThe Problem with IT Today
I can’t reconcile my IT costs with the business value I’m deliveringI have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to anotherAll the information I need is here somewhere, but it’s hidden, fragmented & inconsistentWhat the business sees as a minor change always turns into a significant development projectComplex requirements take so long to implement that IT gets further out of step with the businessI can’t justify the resources for running occasional compute-intensive modelling & analysis workI spend so much effort tackling IT issues I lose focus on the businessI’m meeting all my IT SLAs, but users still complain of poor performance
The Problem with IT TodayThe Problem with IT Today
I can’t reconcile my IT costs with the business value I’m deliveringI have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to anotherAll the information I need is here somewhere, but it’s hidden, fragmented & inconsistentWhat the business sees as a minor change always turns into a significant development projectComplex requirements take so long to implement that IT gets further out of step with the businessI can’t justify the resources for running occasional compute-intensive modelling & analysis workI spend so much effort tackling IT issues I lose focus on the businessI’m meeting all my IT SLAs, but users still complain of poor performance
The more IT resources I accumulate,
the less I can do with them
This is another fine mess you’ve gotten me intoThis is another fine mess you’ve gotten me into
Two Conflicting Personalities of ITTwo Conflicting Personalities of IT
Business Strategy Automation & Execution
Responsiveness to Market
IT Operations Automation & Management
Operational Efficiency
End-to-End, Dynamic Management
AgilityVs.
Stability
Source: IDC, 2005
The Importance of SoftwareThe Importance of Software
0%
10%
20%
30%
40%
50%
60%
Q: How important is software technology to your company's business success? Please answer on a scale of 1 to 6 where 1 is “not at all important” and 6 is “very important”. n = 625
% of n
Source: IDC – European Software Group, March 2005
6 1
The Value of SoftwareThe Value of Software
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Q: Are you getting the expected value from your software solutions?Please answer on a scale of 1 to 6 where 1 is "no value" and 6 is "more value than expected“.n = 625
% of n
Source: IDC – European Software Group, March 2005
6 1
Business Intelligence (BI)Business Analytics
Analytic Applications Business Performance Management (BPM)
Corporate Performance Management (CPM) Enterprise Performance Management (EPM)Business Activity Monitoring (BAM) Production reporting Query & Reporting Enterprise ReportingData Warehousing (DW) Ad-hoc analysis Portals Advanced analytics Data Mining Data qualityDashboards Statistics ETL Scorecards Data visualization
It’s All BI to SomeoneIt’s All BI to Someone
Speed and Accuracy Who are our best suppliers or most profitable customers? Which new prospects should we target, Where are our expenses growing faster than sales, Which products are experiencing quality problems,
Insight and Relevancy Should we extend credit to a particular customer? What will be the impact of a price change? How does recent customer activity trend predict future
behavior or customer attrition rates? How does a certain pattern in product quality data predict
future servicing costs?
The Purpose Behind BIThe Purpose Behind BI
2005 Investment Plans in BI / Analytics2005 Investment Plans in BI / Analytics
Q: Does your company plan to invest in any of the following technologies in the next year?Please answer: Active Investments, Considering Investing, or No Plans to Invest. n = 625 (UK n = 137)
Source: IDC – European Software Group, March 2005
0% 20% 40% 60% 80% 100%
UK
Spain
Germany
France
European Avg
Italy
Nordics
Benelux
% of n
2005 Investment Plans in BI / Analytics2005 Investment Plans in BI / Analytics
Q: How important are the each of these areas for your business intelligence/analytics projects?Please answer on a scale of 1 to 6 where 1 is “not at all important” and 6 is “very important”.n =289 – those companies answering Yes to investing in BI Tools and ranking this question 5 or 6.
Source: IDC – European Software Group, March 2005
0% 10% 20% 30% 40% 50% 60%
BPRC
Risk Mgmt
WFM
BPM/BSC
CRM
SCM
% of n
Competition, partnerships, M&As: DBMS, ERP, BI, Analytic Applications
Long term transition from tools to applications Analytic Apps development platforms with common
services: metadata mgmt, security, authentication, data quality
Integration: web services standards being adopted in all new software (building blocks)
BAM with everything – increasing the breadth of real-time information will lead to adoption of dynamic process modification
How the is Market ChangingHow the is Market Changing
Portal
Application Application Application Email Doc Mgmt
Bus. AnalystExec. Data Analyst Empl. Govt. Public Supplier Partner ConsumerLOB Mgr.
Intra/Extranet
Search Browse Query
Structured
OLAPData Mining
ERP SCM CRM CustomApps External
Reporting
DW
Data processing
Connectors
Unstructured
Text Mining BrowseSearch
Email Office files
Web sites
ImageA/V External
DB
Content processing
Connectors
How the Architecture is ChangingHow the Architecture is Changing
Composite applications
Convergence of document and structured data
Data viz and GIS
Verticalfocus
Data federation and
virtualizationScalabilityScalability
Growing data volumes
GIS
Advanced analytics
BAM
WebServices
Competitive advantage comes from the speed and accuracy with which the closed loop can be traversed.
Competitive advantage comes from assessing the relevance of information to a decision and from gaining insight in seeking and evaluating possible decision alternatives.
Since many types of decisions are recurring or repeatable (such as pricing, extending credit, or allocating resources), decision-making processes exist that are amenable to automation.
One benefit to decision process automation is that it enables greater consistency in the way decisions are made. This is important not only for competitive reasons, but also increasingly for compliance reasons.
The Value Proposition with BIThe Value Proposition with BI
Senior executive engaged as sponsor and champion (CFO, CIO, COO) with real-world governance.
Projects with a specific application focus generated the best results.
A staged plan is executed; successful initial project needed to justify future steps; willingness to adjust.
Business users worked with IT in assessing and prioritizing requirements.
The challenges in transitioning people to new roles and responsibilities were recognized.
“Must Know” Best Practices“Must Know” Best Practices