Bill clough vice president software research idc emea
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Bill Clough Vice President, Software Research IDC EMEA. Who’s Afraid of Complexity:. Intelligent Business Intelligence. The Problem with IT Today. I can’t reconcile my IT costs with the business value I’m delivering

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Bill clough vice president software research idc emea

Bill Clough

Vice President, Software Research

IDC EMEA

Who’s Afraid of Complexity:

Intelligent Business Intelligence


The problem with it today

The Problem with IT Today

  • I can’t reconcile my IT costs with the business value I’m delivering

  • I have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to another

  • All the information I need is here somewhere, but it’s hidden, fragmented & inconsistent

  • What the business sees as a minor change always turns into a significant development project

  • Complex requirements take so long to implement that IT gets further out of step with the business

  • I can’t justify the resources for running occasional compute-intensive modelling & analysis work

  • I spend so much effort tackling IT issues I lose focus on the business

  • I’m meeting all my IT SLAs, but users still complain of poor performance


The problem with it today1

The Problem with IT Today

  • I can’t reconcile my IT costs with the business value I’m delivering

  • I have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to another

  • All the information I need is here somewhere, but it’s hidden, fragmented & inconsistent

  • What the business sees as a minor change always turns into a significant development project

  • Complex requirements take so long to implement that IT gets further out of step with the business

  • I can’t justify the resources for running occasional compute-intensive modelling & analysis work

  • I spend so much effort tackling IT issues I lose focus on the business

  • I’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 into

This is another fine mess you’ve gotten me into


Two conflicting personalities of it

Responsiveness to Market

Business Strategy Automation & Execution

End-to-End, Dynamic Management

IT Operations Automation & Management

Operational Efficiency

Two Conflicting Personalities of IT

Agility

Vs.

Stability

Source: IDC, 2005


The importance of software

The Importance of Software

60%

50%

40%

30%

20%

10%

0%

6  1

% of n

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

Source: IDC – European Software Group, March 2005


The value of software

The Value of Software

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

6  1

% of n

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

Source: IDC – European Software Group, March 2005


Who s afraid of complexity

It’s All BI to Someone

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 & ReportingEnterprise Reporting

Data Warehousing (DW) Ad-hoc analysis

Portals Advanced analytics

Data Mining Data quality

Dashboards Statistics ETL

ScorecardsData visualization


Who s afraid of complexity

The Purpose Behind BI

  • 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?


2005 investment plans in bi analytics

2005 Investment Plans in BI / Analytics

Benelux

Nordics

Italy

European Avg

France

Germany

Spain

UK

0%

20%

40%

60%

80%

100%

% of n

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


2005 investment plans in bi analytics1

2005 Investment Plans in BI / Analytics

SCM

CRM

BPM/BSC

WFM

Risk Mgmt

BPRC

0%

10%

20%

30%

40%

50%

60%

% of n

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


Who s afraid of complexity

How the is Market Changing

  • 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


Who s afraid of complexity

Scalability

Scalability

How the Architecture is Changing

Exec.

LOB Mgr.

Data Analyst

Bus. Analyst

Empl.

Govt.

Public

Supplier

Partner

Consumer

Search Browse Query

Portal

Application

Application

Application

Email

Doc Mgmt

Intra/Extranet

Text Mining

Browse

Search

GIS

Data Mining

OLAP

Reporting

Vertical

focus

Advanced analytics

Data viz and GIS

Composite applications

DB

DW

Data federation and virtualization

Web

Services

Content processing

Data processing

BAM

Growing data volumes

Connectors

Connectors

Unstructured

Structured

Email

Office

files

Web

sites

Image

A/V

External

ERP

SCM

CRM

Custom

Apps

External

Convergence of document and structured data


Who s afraid of complexity

The Value Proposition with BI

  • 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.


Who s afraid of complexity

“Must Know” Best Practices

  • 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.


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