BI Maturity How Mature Is Your Organization?
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1 BI Maturity How Mature Is Your Organization? Presented by Faun dehenry President & CEO processconnectionsblog.com
2 Agenda Welcome Introductions BI maturity definition Trends Different views of BI maturity BI maturity assessment Summary Q&A 15-Oct , FMT Systems of Texas, Inc. All rights reserved 2
3 Introductions Presenter: Faun dehenry President & CEO, FMTSI since 2001 Involved with BI initiatives since 1995 Variety of technical environments (OADW to EDW to OBIEE, Cognos, BOBJ, Netezza, Teradata, SAP BW) Diverse organizations (retail/wholesale, biotech, manufacturing, consumer services) You? 15-Oct , FMT Systems of Texas, Inc. All rights reserved 3
4 When planning for a year, plant corn. When planning for a decade, plant a tree. When planning for life, train and educate (yourself). Guanzi 管 子, BCE It ain t what you don t know that gets you in trouble; it s what you know for sure that ain t so! Mark Twain In God we trust; all others bring data. W. Edwards Deming 15-Oct , FMT Systems of Texas, Inc. All rights reserved 4
5 How Mature is Your Organization? Characteristics of Business Intelligence Maturity Immature organization Mature organization Role of analysis in fact-based decision making User Types and Perspectives Data Display and Value User tools 15-Oct , FMT Systems of Texas, Inc. All rights reserved 5
6 Characteristics of BI Maturity Immature organization Focus: Involves: Usage: Managed and funded: Improve business effectiveness Some departments < 10% of business users IT or business unit Data sources: 2 to 4 Tools: Data quality: 2 or 3 types Limited to basic recognition of importance 15-Oct , FMT Systems of Texas, Inc. All rights reserved 6
7 Immature Organization Challenges: Politics Funding Data access Timeliness Ability to evolve and scale 15-Oct , FMT Systems of Texas, Inc. All rights reserved 7
8 Characteristics of BI Maturity Mature organization Focus: Involves: Usage: Managed and funded: Data sources: Tools: Data quality: Enterprise execution/ effectiveness for customers Enterprise data warehouse/ big data ecosystem > 90% of business users Business executive level All Numerous (based upon user categories) Key process component 15-Oct , FMT Systems of Texas, Inc. All rights reserved 8
9 Mature Organization Challenges: Cultural Complexity, integration Sponsorship and priority Politics Mission critical 15-Oct , FMT Systems of Texas, Inc. All rights reserved 9
10 Role of Analysis Gartner 15-Oct , FMT Systems of Texas, Inc. All rights reserved 10
11 Decision making Recognition-Primed Decision (RPD) model Adaptive decision making Management by exception (MBE) Staggering Exploration Hedging Newtonian decision making Pareto Principle Rational analysis 15-Oct , FMT Systems of Texas, Inc. All rights reserved 11
12 User Types and Perspectives Executive Perspective: "What should we do?" Power User Perspective: Is this a trend? Middle Management Perspective: "What is happening?" Operational Perspective: "What happened?" 15-Oct , FMT Systems of Texas, Inc. All rights reserved 12
13 Data Display and Value Gartner 15-Oct , FMT Systems of Texas, Inc. All rights reserved 13
14 User Tools What s happening? Is it a trend? Gartner What should we do? What happened? 15-Oct , FMT Systems of Texas, Inc. All rights reserved 14
15 User Types and BI Functionality User Types Occasional Information Consumers Partners & Customers Tactical Users IT Functional Managers Power Users Executives 100 s 1,000 s Few Reports Reports Reports Predefined ad hoc queries Reports Reports BAM Predefined ad hoc queries Ad hoc queries Reports Data mining Advanced analysis Forecasting Dashboards BSC reports Corporate performance Low Low Low to Medium Medium Medium to High High High Extranet Intranet 15-Oct , FMT Systems of Texas, Inc. All rights reserved 15
16 How Mature is Your Organization? Business Intelligence Trends and going forward 15-Oct , FMT Systems of Texas, Inc. All rights reserved 16
17 BI Trends 2011 BI maturity levels were still below average (2.75 on a scale of 5) ~ Forrester Research BI tools adoption by business users had remained static since 2008 ~ Gartner Data discovery accelerated self-service BI and analytics ~ IDC Big data generated by social media drove innovation in customer analytics Text analytics enabled organizations to interpret social media sentiment, trends, and commentary Organizations starting to use information analysis to become predictive and proactive 15-Oct , FMT Systems of Texas, Inc. All rights reserved 17
18 BI Trends 2012 and Beyond Multiple BI tool strategy is here to stay for the foreseeable future. Mobility is no longer a nice to have. Tablets and ipads will dominate new mobile BI implementations. Expansion of existing data types and sources, and creation of new ones Big Data. Shortage of analytics talent. 15-Oct , FMT Systems of Texas, Inc. All rights reserved 18
19 How Mature is Your Organization? Different Views of BI maturity Gartner & TDWI (2003) SAS Gartner & TDWI (2005) Eckerson Model 15-Oct , FMT Systems of Texas, Inc. All rights reserved 19
20 Gartner 2003 Business needs Organizational understanding and processes Business Skills Tools and Applications Tools, apps, data management Statistical and process skills Business needs Analytic Skills IT Skills 15-Oct , FMT Systems of Texas, Inc. All rights reserved 20
21 BI Maturity Model TDWI (2003) Opportunistic Tactical Strategic Business Focused: Increase operational efficiency Scope: Department Operational: Improve business effectiveness Scope: Multi-department Strategic: Integrated business execution and management Organization Single user type Limited skills required Managed and funded by IT 2 or 3 user types - Higher skills level BICC Managed and funded by IT or business unit All user types BICC Funded at executive level Infrastructure Functionality 1 or 2 sources Reporting-centric Limited data quality 2 or more sources 2 or 3 tool types Data quality is important Data mart, data warehouse, OLAP Multiple sources Multiple data warehouses Standards Multiple tool types Failure Modes Scalability Accuracy and quality Consistency Inflexibility Expectations Skills Politics, funding Data access Timeliness Ability to evolve Cultural Complexity, integration Sponsorship and priority Politics Mission critical 15-Oct , FMT Systems of Texas, Inc. All rights reserved 21
22 SAS Optimization Predictive Modelling What is the best that can happen? Business Value Data Access Reporting/ OLAP Data Management Forecasting How many and how often? What will happen next? How much and where? What happened? Intelligence 15-Oct , FMT Systems of Texas, Inc. All rights reserved 22
23 Gartner BICC Framework 2005 Develop Users Skills Statistical and process skills Business needs Analytic Skills Manage Programs Business Skills Define Business needs Control BI Organizational vision Funding understanding and processes Organize Methodology Leadership Establish Standards Build Technology Blueprint Tools and Applications Tools, apps, data management IT Skills 15-Oct , FMT Systems of Texas, Inc. All rights reserved 23
24 BI Maturity Model TDWI (2005) Stage/ Focus Prenatal Infant Child Teens Adult Sage Architecture and Scope Management Reporting/ System Spreadsheets/ Individual Data Marts/ Department Data Warehouse/ Division Enterprise Data Warehouse/ Enterprise Analytical Services/ Interenterprise Type of System and Analytics Financial/ Paper Reports Executive/ Briefing Book Analytical/ Interactive Report Monitoring/ Dashboard Strategic/ Cascading Scorecards Business Service/ Embedded BI User and BI Focus All/ What happened? Analyst/ What will happen? Knowledge Worker/ Why did it happen? Manager/ What is happening? Executive/ What should we do? Customer/ What can we offer? Executive Perception about the role of BI Cost Center Inform Executives Empower Workers Monitor Processes Drive the Business Drive the Market Business Value and ROI Costs high/value low Costs and value approaching breakeven Costs decreasing/ Value increasing Costs continue to decrease/ Value continues to increase The Cost/ Value gap widens Achieve ROI 15-Oct , FMT Systems of Texas, Inc. All rights reserved 24
25 Eckerson Model 15-Oct , FMT Systems of Texas, Inc. All rights reserved 25
26 How Mature is Your Organization? BI maturity assessment Assess framework/methodology appropriateness Determine level of analytics understanding Identify gaps Technical, analytical, and business skills Business process Technical architecture and tools Identify potential/lingering data quality challenges 15-Oct , FMT Systems of Texas, Inc. All rights reserved 26
27 Framework/Methodology Gartner BICC SAS Progression TDWI Maturity Model Eckerson Model 15-Oct , FMT Systems of Texas, Inc. All rights reserved 27
28 Analytics Understanding? Who typically understands analytics? Lack of skills 15-Oct , FMT Systems of Texas, Inc. All rights reserved 28
29 Gap Analysis Culture embedded analytics; how decisions are made Skills technical, analytical, and business Business processes Technical architecture and tools 15-Oct , FMT Systems of Texas, Inc. All rights reserved 29
30 Data Quality Challenges IT Business manager BI team 15-Oct , FMT Systems of Texas, Inc. All rights reserved 30
31 Summary Select a culturally appropriate framework (model) and stick with it! BI analysis cycle ends with the decision, not with report submission. Fact-based decision making isn t always applicable. BI maturity is about better processes and suitable tools for better decision making! 15-Oct , FMT Systems of Texas, Inc. All rights reserved 31
32 Q & A 15-Oct , FMT Systems of Texas, Inc. All rights reserved 32
33 BI Maturity How Mature Is Your Organization? Presented by Faun dehenry President & CEO processconnectionsblog.com Thank you!
Faun dehenry FMT Systems Inc. faun.dehenry@fmtsystems.com. 2001-9, FMT Systems Inc. All rights reserved.
Assessing BI Readiness Faun dehenry FMT Systems Inc. faun.dehenry@fmtsystems.com Agenda Introduction What is BI Organizational considerations Successful implementations BI assessment defined and assessment
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