rajeev rawat 2007 in and outs
TRANSCRIPT
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Rajeev Rawat
BI Results, LLC
October 24, 2007
The Ins and Outs ofOpen Source Business Intelligence
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Expensive
Locked-in
Complex
Business
IntelligenceExpensive
Locked-in
Complex
Traditional
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penSourceOpen
Source
DynamicInnovativeCompelling
DynamicInnovative
Compelling
Business
Intelligence
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Humor or Critical Thinking?
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Business Intelligence
What is BI
Why is BI Important
Example of BI at work
Decoupling the BI drivetrain
The essence of BI
Does Open Source BI
work?
Proof points
Key factors
Critical perceptions
How to assess whether
An Open Source BI
solution fits your
needs?
Criteria
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Generally Used Definition
Business intelligence (BI) is a broad category ofapplications and technologies for gathering, storing,analyzing, and providing access to data to helpenterprise users make better business decisions.
BI applications include the activities of decision supportsystems, query and reporting, online analyticalprocessing (OLAP), statistical analysis, forecasting, anddata mining.
Business intelligence applications can be:
Mission-critical and integral to an enterprise's operationsor occasional to meet a special requirement, enterprise-wide or local to one division, department, or projectcentrally initiated or driven by user demand
http://www.biresults.com/http://searchsoftwarequality.techtarget.com/sDefinition/0,,sid_gci211585,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid92_gci211894,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid92_gci211894,00.htmlhttp://searchwinit.techtarget.com/sDefinition/0,,sid87_gci212065,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchsqlserver.techtarget.com/sDefinition/0,,sid91_gci211901,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid19_gci214137,00.htmlhttp://searchsqlserver.techtarget.com/sDefinition/0,,sid91_gci211901,00.htmlhttp://searchsqlserver.techtarget.com/sDefinition/0,,sid91_gci211901,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid19_gci214137,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchwinit.techtarget.com/sDefinition/0,,sid87_gci212065,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid92_gci211894,00.htmlhttp://searchsoftwarequality.techtarget.com/sDefinition/0,,sid_gci211585,00.htmlhttp://www.biresults.com/ -
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Gartner
..Information Democracy will emerge in forward-thinkingenterprises, with Business Intelligence information andapplications available broadly to employees, consultants,customers, suppliers, and the public.
The key to thriving in a competitive marketplace is stayingahead of the competition. Making sound business decisionsbased on accurate and current information takes more thanintuition.
Data analysis, reporting, and query tools can help businessusers wade through a sea of data to synthesize valuableinformation from it - today these tools collectively fall into acategory called "Business Intelligence."
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Business Process
RFID Tags on shipments
Tracking in motion
Delivery on shelf
Revenue per item
Inventory turns mappedto profit per shelf foot
Turns faster or slower
Best Practices from HQor Replenishment
Operations
LogisticsManuf. to Shipper
Shipper to RetailWarehouse
Warehouse toRetailer
Packaging,PromotionRetailer to shelf profitplan (turns,customer, promos)
TurnsSale, turns,overstock, or lostsales
BI ExamplesBusiness Results
Integrated businessrules and IT tools
Customer experience.
Loyalty
Business insights toenable action
Excel to compete.
Competitive advantage
Business Process
RFID Tags on shipments
Tracking in motion
Delivery on shelf
Revenue per item
Inventory turns mappedto profit per shelf foot
Turns faster or slower
Best Practices from HQor Replenishment
Operations
LogisticsManuf. to Shipper
Shipper to RetailWarehouse
Warehouse toRetailer
Packaging,PromotionRetailer to shelf profitplan (turns,
customer, promos)
TurnsSale, overstock, orlost sales
Business Results
Integrated businessrules and IT tools
Customer experience.
Loyalty
Business insights toenable action
Excel to compete.
Competitive advantage
Systems
Infrastructure
Connectivity
Manufacturer,Shipper,
Retailer
POS systems,
Server,
Applications,Networks,
Storage,
Compatibility foranalysis, reports,
triggers
Systems
Infrastructure
Connectivity
Manufacturer,Shipper,
Retailer
POS systems,
Server,
Applications,Networks,
Storage,
Compatibility foranalysis, reports,
triggers
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Typical BI Stack
Analysis sw accesses data foranalysis and presentsinformation insights for actions
Others
Profile
Classify
SecurityAuthentication
Compatibility across theenterprise and collaborating
systemsData and data quality
Data formats and datamodels
Data is transferred to systemsoperating systems andapplications to be stored in astructured form
Data is generated at diversepoints by various applicationsrunning on a variety ofplatforms
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BI Solutions Drive Train
Load
Analytics Reporting
Repository
ODS
Transac-tional
systems
Line ofbusinesssystems
Sources
Data Warehouse
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Drive Train Compatibility
Load
Analytics Reporting
Data Warehouse
Repository
ODS
Transac-tional
systems
Line ofbusinesssystems
Sources
Ab Initio
Erwin
IBMInformatica
Business
Objects
CognosMicroStrategy
SAP
IBM
MicroSoft
OracleSAP
Teradata
CRM
ERP
GL
S/DCM
CRM
ERP
GL
S/DCM Dash-boards
Dash-
boards
ReportsReports
Score-
cards
Score-
cards
Fair Isaac
MicroSoft
OracleSAP
SAS
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Increase in business velocity is acceleratingevent-driven approaches to operations
3 Days
8 Hours
30 minutes
20 minutes3 Days
1 Day
1 Day
6 Weeks1 Month
5 Days
45
10
05
3030
05
15
241
3-1 days
Document transfer
Call center inquiries
Trading analytics
Airline operationsPhone activation
Calculate fin. positions
Supply chain updates
Build-to-order PCLoad data warehouse
Trade settlement
Seconds
Minutes
Hours
Source Data from Donald Feinberg, V.P. and Distinguished Analyst, Gartner
From To
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BI usage, a strategic advantage
Source: CIO Insight Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=3,00.asp
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BI applied across the enterprise functions
Source: CIO Insight Oct 2007 Survey.
http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=5,00.asp
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BI impact on performance is clear
Source: CIO Insigh t Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=5,00.asp
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IDC: Market is growing
IDCs definition of the business analytics software market includes 11 datawarehousing and performance management tools and applicationssegments.
According to IDC, the business analytics software market reached $19.3billion in 2006, representing a growth rate of 11.2 percent. The authorsexpect the worldwide business analytics software market to continue to
grow at a healthy compound annual growth rate of 10.3 percent over thenext five years. Furthermore, IDC has made the following predictions aboutthe future of business analytics:
- Business analytics solutions will increasingly incorporate functionality
for unified access and analysis of structured data and unstructuredcontent, business process management, collaboration and workflow
management functionality.
- A broader set of organizations (in all geographic regions and of allsizes) is beginning to look at business analytics not just as a set ofreporting functions, but as a means to gain competitive advantagethrough better decision management and process optimization.
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Essence of BI
Pervasive
Infrastructure integration
Across the enterprise applications
All users benefit
Precise decisions faster
Faster executionCompetitive requirement
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Traditional vs. Open Source BI
Typical concerns of traditional BI users
Key differentiators of Open Source BI
Expensive
Locked-in
Complex
Expensive
Locked-in
Complex
Dynamic
Innovative
Compelling
Dynamic
Innovative
Compelling
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Traditional BI deployed CIO/BI/DW managers
top concerns (Source: BI Results survey 2006)
BI education, awareness, and executive sponsorship
Disconnected business and IT visions
Cost to upgrade functions scalability, performance, volume
Infrastructure and applications compatibility with silosNo simple path to creating enterprise-wide repository
User adoption and use of expensive functional capabilities
Skills and time to implement upgrades
High cost of switching to another vendorTeamwork among vendors
Turnover on vendor technical team
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Drive train connectivity,a major BI issue
Source: CIO Insight Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=18,00.asp
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Key differentiators ofOpen Source BI
Cost
Flexibility
Standards based solutionsEase of adoption
Faster functionality updates
Best of breed functionality from user community
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Open Source BI adoption is growing
Source: CIO Insight Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=4,00.asp
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Open Source BI: a compelling competitive forceGartner:Open-source products accounted for a 13 percent share of the $92.7 billion software market in 2006,but should account for 27 percent of the market in 2011 when revenue is expected to be $169.2 billion
Of 295 respondents in the U.S. and Europe found that open source software usage stood at 23.6percent, and this number is set to grow to 25.9 percent over the next year,
"Open-source software is going to erode proprietary sales revenue by offering less-expensive or freealternatives, expanding the total market potential by meeting the demands of SMBs for affordablesolutions, and creating a new business model to provide selection, customization and managementservices
Most commercial software products will include elements of open-source code by 2010.
The open-source software being used, 49.7 percent is used in mission-critical situations, with 50.3percent being used in non-mission critical situations. That compared to 59 percent of commercial orproprietary software and 58.5 percent of internally developed software which is used in mission-criticalsituations.
..market accelerators to open source, the low barriers to entry and increased return on investment, theavailability of high-quality solutions at low cost, the access to open standards and developmentprocesses, vendor independence and flexibilityresulting in investment protectionand fasterprocurement and a shorter development time.
Among the market inhibitors, many of which are perceptions rather than reality, are concerns aboutmigration and skills transfer, internal development, support and maintenance costs, quality assurance,and the large number of license with conflicting terms.
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Gartner: Ignoring Open Source not an optionOpen source "the biggest change in corporate IT since distributed computing."
"Open source is not a niche, not a fad." And on the competitive front "competing against opensource is tilting at windmills.
- By 2011, Gartner predicts that at least 80% of all commercial software solutions will includesubstantive open source.
- Open source is being used equally for mission critical and non-mission critical applications.Gartner's survey shows 49.7% of open source usage is being done for "mission critical"
applications, as compared to 59% for proprietary software and 58.5% for internal development.
-- Adoption is heading for more mainstream adoption by 2012 and that the priorities will be: costand risk
-- Develop an open source policy saying that open source adoption "has to be managed"alongside existing software.
-- Open source has achieved dramatic success in the infrastructure layer: operating systems(Linux), application servers (JBoss, Tomcat), DBMS (MySQL), and security (Snort). The nextwave of adoption will be at the application level: CRM, content management, supply chainmanagement, e-learning, etc.
-- In most cases there is better quality and lower Total Cost of Ownership (TCO).
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0
2
4
6
8
10Business Need
BI functionality
requirement
Risk profile
Ski lls match
Systems environment
Pricing
Vendor maturity
Solution maturity
Criteria for assessing Open
Source BI alternative Business need
BI functions
requirement Risk profile
Skills match
Systems environment
Pricing
Vendor maturity
Solution maturity
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Criteria for assessing Open
Source BI alternativeBusiness Need
- Urgency- Sponsor- Users- Bottlenecks- Data sources- Data quality- Data owners
- Businessneeds
Risk Profile
- Financial- Operational- Performance- Skills gap
BI functionalityRequirement- Computations- Integration- Reporting
- Time- Embed-ability/SOA
- Repository
- Dashboard/portal
- OLAP UI
- OLAP Server
- ETL
- End-User Ad Hoc- Alerts
- Semantic Layer
- Security
- Scheduling
- OSS Communityconnection
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Criteria for assessing Open
Source BI alternativeSkills match
- BusinessUsers
- Systems Users- Current vendor
teams- New vendor
team
Pricing
- Licenses- Maintenance- Support- Transition costs- Upgrades- Renewals
Systemsenvironment
- Server andstorageconnectivity
- Data integrationand interchange
- Applicationcompatibility
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Criteria for assessing Open
Source BI alternativeVendor maturity
- Customersatisfaction
- Install base
- Requirementsgatheringprocess
- Referenceaccounts
Other
- Contributes code thatextends the functionalityand value of the coreproducts
- Indemnification
- OSS CommunityConnection
- Creates projects that
surround the core
products with utilities,
localizations, and
integrations
-Tests new releases of the
products
- Reviews documentation
Solution Maturity
- Availability duration
- Install base
- Tools compatibility- Standards compatibility
- Mature, world-classreporting products
- Ready-to-use out of the box
- ISV-ready: embeddable &extensible
- Professionally localized &internationalized
- Meets complete continuumof BI needs
- Reporting, Analysis,Data Integration
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Consolidate Assessment for business and
systems convergence, consensus
Criteria
Urgency
Sponsors
Users
Bottlenecks
Sources
Data Quality
Data Owners
Computations
Integration
Reporting
TimeRisk: Fin
Risk: Oper.
Risk: Transac
Business BI functionality Risk Skills Systems Pricing Vendor SolutionNeed requirement profile match environ maturity maturity
0
2
4
6
8
10Business Need
BI functionality
requirement
Risk profile
Skills match
Systems environment
Pricing
Vendor maturity
Solution maturityShared
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Open Source BI: What if
the CIO, CFO, CEO saved 5%-25% on
licensing costs at a previous company?
What will you be RIGHT BACKwith?
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Open Source BI: Youre on the ball!
YOUWEVE FOUND THREE WAYS TOLEVERAGE OPEN SOURCE -
Criteria III IIIROIPaybackSavingsSchedule
Risk
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Open Source BI: You have a plan
YOUWEVE FOUND THREE WAYS TOLEVERAGE OPEN SOURCE -
Criteria III IIIROIPaybackSavingsSchedule
Risk
You can keepyour job
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Open Source BI: Lead the change
YOUWEVE FOUND THREE WAYS TOLEVERAGE OPEN SOURCE -Criteria III IIIROIPaybackSavingsSchedule
Risk
You can keepyour job
Fornow
O S B i
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Open SourceBusinessIntelligence
Open Source BI is a competitive differentiator.
It can reduce cost and provide incremental
functionality.
Learn whether or where it fits in your scope orneeds.
Leverage for competitive advantage.
Grow skills to advance your career.
Open Source BI is a competitive differentiator.
It can reduce cost and provide incremental
functionality.
Learn whether or where it fits in your scope orneeds.
Leverage for competitive advantage.
Grow skills to advance your career.
Your opportunity to shine
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Customer Examples
Lance Walter, VP Marketing
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Pentaho Introduction
Worlds most popular enterprise open source BI Suite
2 million lifetime downloads, averaging 100K / monthFounded in 2004: Pioneer in professional open source BI
Management - proven BI and open source veterans
from Business Objects, Cognos, Hyperion, JBoss, Oracle, Red Hat, SAS
Board of Directors deep expertise and proven success in open source
Larry Augustin - founder, VA Software, helped coin the phrase open source
New Enterprise Associates investors in SugarCRM, Xensource, others
Index Ventures investors in MySQL, Zend, others
Widely recognized as the leader in open source BI
http://code.google.com/http://www.pentaho.org/index.php?option=com_content&task=view&id=139&Itemid=238http://www.intelligententerprise.com/showArticle.jhtml?articleID=190700107http://www.redherring.com/article.aspx?a=18126http://sourceforge.net/potm/potm-2006-10.php -
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Pentaho Subscription: Minimizing Risk in BI
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Pentaho Technology Fundamentals
Componentized and modular
Service-implemented architecture
Built from the ground up as a
set of services
Exposed via AJAX and WebServices
100% Java EE server side
Scalable, standards-based
Web-based, thin-client end user
interfacesEclipse-based design interfaces
Embedded workflow / process
engine
-
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Pentaho BI Platform at OrbitzOrbitz, Global Travel Services Company
Key Challenges
Self-service reporting for extranet applicationserving travel agents
Pentaho Solution
Pentaho Reporting Server Professional Edition
Red Hat Enterprise Linux, JBoss ApplicationServer, MySQL database
2,500 usersResults
Integrated, self-service reporting
Application selected as 2006 JBoss InnovationAward winner
4-year, $1.5M TCO reduction
Why PentahoCost of ownership
Embeddability within custom web-basedapplications (security, user interface, etc.)
-
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Pentaho Reporting
Access and format data from
disparate sources
RDBMS, XML, OLAP
Produce in popular formats
Multiple report types
Operational
Analytical
Financial
Directly against sources or usingcentralized metadata layer
pixel perfect report designer
Web-based business user ad hoc
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Pentaho Reporting at Terra Industries (NYSE: TRA)
$2B Global Nitrogen Products Leader
Key Challenges
Aligning pricing and delivery with inventoryand supply
Obtaining an integrated view of operationsacross multiple disparate operational systems
Pentaho Solution
Pentaho Reporting
Pentaho Data IntegrationSourcing data from SAP R/3, Peoplesoft,Tabware, and home-grown systems
MySQL Enterprise
Results
Rapid time-to-value via embedded operational
reporting for front-line workersLong-term strategic benefits from single,integrated view of company-wide information
Why Pentaho
Functionality and flexibility
Cost of ownership
We chose Pentaho because it has afull range of functionality, exceptional
flexibility, and a low total cost of
ownership because of its open source
business model. We can start
delivering value to our business usersquickly with embedded, web-based
reporting, while integrating our
disparate data sources for more
strategic benefits down the road.
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Pentaho Analysis
ROLAP architecture
Works with all popular opensource and proprietary DBs
View data dimensionally
i.e. Sales by region, by channel,by time period
Navigate and explore
Ad Hoc analysis
Drill-down from year to quarter
Pivot
Select specific members foranalysis
Web-based or Excel front ends
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Pentaho Analysis at Frontier Airlines (NASD: FRNT)Frontier Airlines
Key Challenges
Understanding and optimizing fares to ensureMaximum occupancy (no empty seats)
Maximum profitability (revenue per seat)
Pentaho Solution
Pentaho Analysis (Mondrian)
BizGres MPP database (Greenplum)
500 GB of data, 6 server cluster
Results
Comprehensive, integrated analysis to setstrategic pricing
Improved per-seat profitability (amount notdisclosed)
Why Pentaho
Chose Greenplum and Mondrian over Oracle
Rich analytical and MDX functionality
Cost of ownership
The competition is intense in theairline industry and Frontier is
committed to staying ahead of the
curve by leveraging technology that
will help us offer the best prices and
the best flight experience. [theapplication] fits right in with our
philosophy of providing world-class
performance at a low price.
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Pentaho Dashboards
Tight business process integration
Embedded workflowCan receive events from or triggerevents in external systems
Pentaho Open BI Suite Integration
Comprehensive auditing of user
activity, performance and data accessContext-sensitive drilling to reports oranalysis
Integrated security, scheduling,alerting, portal integration,
Modern, Standards-based Architecture
J2EE and AJAX providing scalability,portability, and integration
All components exposed as web-services
JDBC 2.0 compliant
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Pentaho Dashboards at Boyne ResortsNorth Americas Largest Family Run Four-
Season Resort Company
Key ChallengesUnderstanding customer behavior and customerloyalty to drive marketing programs
Analyzing profitability of resorts, food service
Pentaho Solution
Pentaho Dashboards, Reporting, and Analysis.replacing Crystal Reports from Business Objects
Pentaho integration with Google Maps
Microsoft Windows, SQL Server
Results
Critical insight into customer trends to maximizeresults from marketing programs
Primary marketing dashboard delivered in lessthan one day
Why Pentaho
Breadth of functionality in open source
Ability to deliver results quickly
Cost of ownership
Weve advanced a major stepforward for our business users by
leveraging PentahoWith professional
support and a comprehensive BI
offering from Pentaho, weve
significantly upgraded our functionalcapabilities for a fraction of the cost
of proprietary alternatives..
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Boyne Resorts Application Example
NOTE: Data and Image have been modified to protect confidential info.
Color-coded
pins
User-defined
thresholds
Breakdown of
stays by
resort in
selected city
Full list of cities and
total stays (#
removed)
Zoom in
gauge
showing
visits / city
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Pentaho Data Mining
Rich analytical capability
49 data preprocessing models76 classification/regressionalgorithms
8 clustering algorithms
15 attribute/subset evaluators +
10 search algorithms for featureselection
Graphical interfaces
Exploratory data analysis
Experiment execution
Process / flow modeling
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Pentaho Data Integration
Rich Feature Set
Enterprise-class performance andscalability
Broad Database Support
100% Meta-data Driven
Graphical, model-driven design
Mature, 4th generation product
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Pentaho Data Integration at ZipRealty (NASD: ZIPR)
National Real Estate Brokerage
Key Challenges
Measuring and optimizing agent performance,customer satisfaction, and marketing ROI
Getting an integrated, strategic view acrossmultiple operational systems
Pentaho Solution
Pentaho Data Integration
Red Hat Enterprise Linux, MySQL databaseContinued use of proprietary BI tools(MicroStrategy)
Results
Three-fold performance increase, 8 hourreduction in batch load times
Simplified maintenance and reduced costs
Why Pentaho
Functionality and flexibility
Professional support
With professional support andworld-class ETL from Pentaho, we've
been able to simplify our IT
environment and lower our costs.
We were also surprised at how much
faster Pentaho Data Integration wasthan our prior solution.
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50
Questions??
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Contact Information
If you have further questions orcomments:
Rajeev Rawat, BI [email protected]
Lance Walter, Pentaho
mailto:[email protected]:[email protected]:[email protected]:[email protected]