why business intelligence projects fail and...
TRANSCRIPT
COPYRIGHT © 2008, BUSINESS OBJECTS S.A.
WHY BUSINESS INTELLIGENCE PROJECTS FAIL AND WHAT TO DO ABOUT ITTimo Elliott, Business Objects
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AGENDA
Introduction1. Changing the Business2. People, Not Technology3. Process, Not Project4. Value, Not Cost5. Insight, Not Data6. Flexible Pragmatism, Not Rigid ProcessesConclusionQ&A
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INTRODUCTION
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GOAL OF THIS PRESENTATION
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SELECTED REFERENCES
“Competing on Analytics” by Thomas Davenport“Successful Business Intelligence: Secrets to Making BI a Killer App” by Cindi Howson“Business Intelligence Competency Centers: A Team Approach to Maximizing Competitive Advantage” by Gloria J. Miller, Dagmar Brautigam, Stefanie V. Gerlach
“Business Intelligence: The Savvy Manager's Guide” by David Loshin“Maximizing Return on Business Intelligence Investments”, Jefferson Lynch, Tuesday, 3pm, Hall 4.1 Room B“Enterprise Performance Visibility in AstraZeneca”, Jon Hill, Wed, 12pm, Hall 4.1 Room E
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High performing companies are 50% more likely to use analytic information strategically
33%
23%
77%
40%
36%
65%
8%
23%
Have significant decision- support/analytical capabilities
Value Analytical insights to a very large extent
Have above average analytical capability within industry
Use analytics across their entire organization
Source: Competing on Analytics, Thomas Davenport
COMPETITIVE EDGE IS GAINED WITH ANALYTICS
Low Performers
High Performers
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Business Intelligence Applications
Enterprise Applications (ERP, SCM and CRM)
Server and Storage Technologies (Virtualization)
Legacy Application Modernization
Security Technologies
Technical Infrastructure
Networking, Voice and Data Communications (VoIP)
Collaboration Technologies
Document Management
Service-Oriented Technologies (SOA and SOBA)
BUSINESS INTELLIGENCE IS THE MOST IMPORTANT IT PRIORITY
** New question for 2007
To what extent will each of the following technologies be a Top 5 priority for you in 2008?
11.20%
8.02%
8.45%
5.79%
8.53%
4.67%
6.83%
7.75%
7.91%
6.71%
2008Increase*
1
2
3
4
5
6
7
8
9
10
Rank2008
1
2
5
3
6
8
4
10
9
7
Rank2007
1
**
9
10
2
12
8
4
**
6
Rank2006
Source: 2008 Gartner Executive Programs CIO Survey, January 10, 2008
Gartner 2008 CIO Technology Priorities
* Unweighted average budget change
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IT UNDERESTIMATES USER DIFFICULTIES…
Base: 406 U.S. IT Executives, 675 Business ExecutivesSource: BusinessWeek Research Services
Difficult to find information
0%
10%
20%
30%
40%
50%
60%
IT0%
10%
20%
30%
40%
50%
60%
IT
Just the right amount of information is available
32%
24%
Executives Executives
22%
55%
(credibility) gap
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…AND UNDERESTIMATES VALUE OF BI TO THE BUSINESS
0%
10%
20%
30%
40%
50%
60%
70%
80%
Failure ModeratelySuccessful
VerySuccessful
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not at All Somewhat Significantly
How successful do you consider your BI deployment?
How much has BI contributed to your company’s performance?
The percentage of business users seeing the business impact as significant is 15% higher than the percentage of IT professionals saying the impact on company performance has been significant
Business gap
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CHANGING THE BUSINESS
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AIM HIGH
Not “implement software”Not “keep the business happy”Aim to transform the way the business worksPaint the vision
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FOLLOW THE MONEY
Track information to its final destination in any systemWhy is it being usedWhat might change as a result
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AIM FOR 100% DEPLOYMENT
Target all uses and users“To be successful with BI, you need to be thinking about deploying it to 100% of your employees as well as beyond organizational boundaries to customers and suppliers” — Cindi Howson
0%
10%
20%
30%
40%
50%
60%
Failure ModeratelySuccessful
Very Successful
Perceived PotentialCurrent %
Source: Successful Business Intelligence, Cindi Howson
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PEOPLE, NOT TECHNOLOGY
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PEOPLE SKILLS MAKE OR BREAK BI PROJECTS
Investment Historical Determinant of Success
People 2% 20%Process 2% 15%
Organization 2% 10%
Culture 1% 20%
Leadership 1% 10%
Data 10% 15%
Technology 82% 10%
75% of success determined by things OTHER than data and technology
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IT / BUSINESS RELATIONSHIP
Trust and respect
Business Person Archetype IT Professional Archetype
Extrovert Introvert
Sociable Solitary
Freewheeling Methodical, systematic, disciplined
Risk-taking Risk-averse
Prefers face-to-face meeting Minimal face-to-face communication, email and instant messaging is fine
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TOUGH LOVE
“I tried being reasonable — I didn’t like it”
Dirty Harry
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CHOOSE YOUR USERS CAREFULLY
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USER ADOPTION
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COMMON USER ADOPTION ISSUES
Training for ITTraining on dataContinued trainingBest practiceCultureExpectation settingEase of use
Even if an application is intuitive enough to be usable without instruction, any related process or culture changes should be driven home with at least a quick tutorial.
“What dooms IT projects” August 31, 2005
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CONGRATULATIONS, YOU’RE IN MARKETING
EvangelizePromote early, promote oftenName the systemFind successes, keep explaining the valueHighly visible dashboardsInternal seminarsNewslettersTrophies for best projects
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EVANGELIZING
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EVANGELIZING
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STORIES ARE GOOD FOR BUSINESS
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KNOW THYSELF
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INFORMATION CULTURE
0%10%20%30%40%50%60%70%80%90%
Failure ModeratelySuccessful
Very Successful
Gut-FeelFact-Based
Source: Successful Business Intelligence — Cindi Howson
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PROCESS, NOT PROJECT
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BI PROJECT MANGEMENT
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BI METHODOLOGY
IT
Business
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ALIGN WITH BUSINESS PROCESSES
TriageAssessmentand Entry
PatientRegistration
Patient Status and Room Assigned
Nurse Exam Indicator Changed
Physician Examines
Patient
Physician Note
Created
Labs and/orX-rays areOrdered
Lab Report(s)Returned via
EDIM
Physician Note Completed
Prescription(s) Written
Patient Referred for
Follow-up Care
DischargeInstructions
Created
Electronic Chart
is Completed
History File is
Created
Patient Arrives
Physician Consults with
Patient
Patient Discharged
Patient Leaves ED
EDIM Reports Created/Printed
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APPLICATIONS
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BI COMPETENCY CENTER
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
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ORGANIZATION ISSUES: INCENTIVES AND VALUE
Tragedy of the commonsInternal pricing
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BICC
Business Users
BICC REPORT CARD
Active usageSatisfactionNew requestsStandard reportsApplicationsServiceTime
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VALUE, NOT COST
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WHAT’S THE ROI?
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ROI IS HARD TO KNOW IN ADVANCE
“One of the key contributors to poor IT investment performance is an unbalanced approach taken by executives at the project approval stage. Too often, the overriding emphasis is on quick payback or demands for the return on investment (ROI) to be demonstrated in financial terms.”
Gartner, “Total Value of Opportunity — The Real
Measure for BI”
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BUSINESS PEOPLE HAVE SHORT MEMORIES
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MISSION-CRITICAL
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FINDING VALUE
4% Technology-related benefits
42% Productivity-related benefits
54% Business process
enhancements
Previous projects
Speed of business
Minimizing risk
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ALIGN WITH THE GOALS OF THE ORGANIZATION
Link BI goals to what executives care about
Source: Accenture
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SALES TECHNIQUES
Techniques for understanding executive needsProviding answers to problems, not technology infrastructuresGetting your projects to “top of mind”
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TURN INFORMATION INTO A PROFIT CENTER
“Our extranet produced $60M in incremental sales in the first year.”
Don Stoller; Owens & Minor
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PROFITABILITY: A FOUNDATION FOR STRATEGIC BI
“I don’t care about profitability”
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PLAY ON DOUBT
Start asking questions about the numbers that drive the business“You don’t know?!”
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INSIGHT, NOT DATA
101011011101001011101011010111010110101011001011010101
101011011101001011101011010111010110101011001011010101
101011011101001011101011010111010110101011001011010101
101011011101001011101011010111010110101011001011010101
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DATA INTEGRATION
“This is the aspect that most businesses underestimate drastically — often by 100 percent or more.”
Gartner
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LACK OF TRUST
43% of users say they’re not sure if internal information is accurate77% said bad decisions had been made because of lack of information5 out of 4 people don’t believe statistics in presentations
Business Week study, 2005
People don’t trust their systems
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DATA QUALITY
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DATA PROFILING
“buy a profiling tool — it’s not that expensive” — Andy Bitterer, Gartner
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JUSTIFYING DATA QUALITY
Call it Data GovernanceRisk, Productivity
Time Spent on Data Quality
5% 6% 6%10%
15%12%
9%
36%
1 ho
ur
2 ho
urs
3-4
hour
s
5 ho
urs
6-10
hou
rs
11-2
0 ho
urs
21+
hour
s
Not
Sur
e
Source: Harris Interactive Poll
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DATA LINEAGE
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FLEXIBLE PRAGMATISM, NOT RIGID PROCESSES
“No plan survives first contact with the enemy”
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FINDING AN EXECUTIVE SPONSOR
Track record of IT successEvangelismCompany goalsHis / her career
Likely that sponsor will change: build broad base of support
Why Should I Care?
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STAYING ZEN
Getting the time and moneyDo “less”Keep it simpleClean upBICC efficienciesIT dashboardsStandardizeSOA / Web ServicesSaaS
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STANDARDIZATION CALCULATOR
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SUCCEEDING DESPITE ADVERSITY
Keep the project up to speedStructure the project into smaller onesEnsure alignment at all timesAdmit problems fastStick with it!
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CONCLUSION
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CONCLUSION
BI is not (only) aboutTechnologyProjectsCostDataPlans
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Q&A
QuestionsTimo Elliott, Senior Director Strategic Marketing, Business ObjectsI will repeat questions to ensure everyone can hear
Contact informationEmail: [email protected] Questions Blog: www.timoelliott.com/blog
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