Transcript Slide 1
BI Rationalization
Reduce Risk, Trim Costs and Improve
Your Decision-Making Ability
Presented By: Vincent Belanger
Partner, BI & Data Mgmt.
Rolta-TUSC
919-676-5312
[email protected]
Presentation Agenda
Current State of Business Intelligence
Answering the Call
The
BI Vendors Respond
Why Isn’t Everyone “Rationalizing”?
Methodology – BI Rationalization
BI Rationalization Approach Overview
Report Conversion Utility
BI Rationalization
BI - A Business Imperative
The Evolution. What Happened.
Why Did It Happen?
Cost Justification
The Final Results
Case Studies
Slide 2 / BI Rationalization
Current State of BI: A Business Imperative
“How widespread is your organization’s adoption of BI, Data
Warehousing, and Data Integration initiatives?”
Limited to
individual
projects, 9.8%
Limited to
individual
departments,
8.5%
Other, 2.4%
Enterprisewide,
58.5%
Limited to
individual lines
of business,
20.7%
Base: 82 IT decision-makers
(percentages do not total 100 because of rounding)
Source: August 2008 Global BI And Data Management Online Survey
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Current State of BI: A Business Imperative
“How many different BI products do you have in your
department; across the entire enterprise?”
My department
Enterprise
60%
50%
40%
30%
20%
10%
0%
0
1 to 2
3 to 5
6 to 9
10+
Don't know
Base: 82 IT decision-makers
Source: August 2008 Global BI And Data Management Online Survey
Slide 4 / BI Rationalization
Current State of BI: A Business Imperative
From a Business Intelligence perspective, the
primary focus for IT Directors and CIO’s is to
reduce internal and overhead (I&O) cost through:
Unified BI solutions
Collaboration between departments
Reduction in BI shelf ware
Leverage existing solutions
Realize ROI; which was the original intent
- Gartner Group
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Current State of BI: The Evolution. What Happened?
DW/BI
TOOL
Sales &
Marketing
Slide 6 / BI Rationalization
Current State of BI: The Evolution. What Happened?
BI Tool 2
Sales &
Marketing
BI Tool 2
Finance
Slide 7 / BI Rationalization
Current State of BI: The Evolution. What Happened?
“The Road to Hell is paved with good intentions” – Samuel Johnson
DataBusiness
Warehouse
Units
Data Warehouse
Multiple BI Tools
BI Tool 1
Finance
Sales &
Marketing
BI Tool 2
BI Tool 3
Customer Service
Operations
Custom
Built
Reporting
Solution
Slide 8 / BI Rationalization
Disparate Systems
Current State of BI: The Evolution. What Happened?
“The cost of living in Hell is expensive”
DataBusiness
Warehouse
Units
Data Warehouse
– Mike Cochran
Multiple BI Tools
BI Tool 1
On-going System Cost
$1,650,000
Finance
Sales &
Marketing
BI Tool 2
BI Tool 3
Customer Service
Operations
Custom
Built
Reporting
Solution
Slide 9 / BI Rationalization
$2,300,000
$1,850,000
$2,100,000
Total Cost: $7,900,000
Current State of BI: The Evolution. What Happened?
Multiple BI environments strap organizations with excessive
support cost and reduce user adoption.
Inability to created economies of scale through
establishment of a Center of Excellence (COE)
software maintenance agreements
common technical architectures
Transfer/reuse of business logic
Resource planning/training (admin and user)
“Multiple versions of the truth” compromise visibility/trust
Increase in data movement requirements (ETL processes);
increases likelihood of errors; duplication of effort/support
Fosters “information hoarding”, silos; political
Complicates metadata management strategies
Constrains organizational growth due to lack of “consolidated
insight”
Slide 10 / BI Rationalization
Current State of BI: Why Did It Happen
Historically companies had to purchase multiple tools to meet information
delivery needs.
Database
Data
Warehouse
ETL
Reporting
OLAP
Analytics
Dashboards
Data mining
Product 1
Prod. 2
Product 2
Product 3
Product 4
Product 5
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Current State of BI: Why Did It Happen
Historically companies had to purchase multiple tools to meet information
delivery needs. Solutions have evolved…
Database
Data
Warehouse
ETL
Reporting
OLAP
Analytics
Dashboards
Data mining
Oracle / SAP / Cognos / Microsoft
Oracle acquires Hyperion…
Business Objects acquires Crystal…
SAP acquires Business Objects… Microsoft acquires ProClarity…
IBM acquires Cognos…
Oracle acquires Siebel…
Slide 12 / BI Rationalization
Answering the Call: BI Vendors Respond
Interactive
Dashboards
Ad hoc
Analysis
Microsoft
Office
Proactive
Detection
and Alerts
Reporting & Publishing
BI Publisher
Financial Reporting
Interactive Reporting
SQR Production Reporting
Web Analysis
Common Enterprise Information Model
Oracle BI Server
Set
Goals
Plan
Insight
Performance
Action
Report
Monitor
Align
Analyze
OLTP & ODS
Systems
Data
Warehouse
Data Mart
SAP, Oracle
PeopleSoft, Siebel,
Custom Apps
Files
Excel
XML
Business
Process
Financial
Performance
Management
Applications
Hyperion
Essbase
* Similar conceptual architectures are offered by IBM, Microsoft and SAP
Slide 13 / BI Rationalization
Answering the Call: Why Isn’t Everyone “Rationalizing?
Standardizing on a single Business Intelligence (BI)
reporting and analysis solution is a good idea in
theory . . . Companies can save money by
standardizing but must plan for a long, slow
migration that may not be practical.
- Forrester
Slide 14 / BI Rationalization
Answering the Call: Why Isn’t Everyone “Rationalizing?
Standardizing on a single Business Intelligence (BI)
reporting and analysis solution is a good idea in
theory . . . Companies can save money by
standardizing but must plan for a long, slow
migration that may not be practical.
- Forrester
Barriers to BI Rationalization
Cost to Migrate
Political Fiefdoms
Change Management / Training
Limited System Documentation
Audit of Objects to be Migrated
Upstream and Downstream Data Dependencies
End User Preferences
Slide 15 / BI Rationalization
Answering the Call: Why Isn’t Everyone “Rationalizing?
Standardizing on a single Business Intelligence (BI)
reporting and analysis solution is a good idea in
theory . . . Companies can save money by
standardizing but must plan for a long, slow
migration that may not be practical.
- Forrester
We Need
A Plan
Slide 16 / BI Rationalization
Answering the Call: Why Isn’t Everyone “Rationalizing?
Standardizing on a single Business Intelligence (BI)
reporting and analysis solution is a good idea in
theory . . . Companies can save money by
standardizing but must plan for a long, slow
migration that may not be practical.
- Forrester
“This is not
a plan”
Slide 17 / BI Rationalization
Answering the Call: Why Isn’t Everyone “Rationalizing?
Standardizing on a single Business Intelligence (BI)
reporting and analysis solution is a good idea in
theory . . . Companies can save money by
standardizing but must plan for a long, slow
migration that may not be practical.
- Forrester
Methodology,
Migration Tools,
Report Conversion
Utilities
Slide 18 / BI Rationalization
Answering the Call: Why Isn’t Everyone “Rationalizing?
Standardizing on a single Business Intelligence (BI)
reporting and analysis solution is a good idea in
theory . . . Companies can save money by
standardizing but must plan for a long, slow
migration that may not be practical.
- Forrester
A proven methodology
w/ accelerators that
saves 30% - 50% versus
manual efforts.
TM
Rolta Business Intelligence Exchange
Slide 19 / BI Rationalization
The
TM
Methodology – Approach Overview
Data and
Technology
Assessment
Road Map
Development
Cleansing
Environment
Conversion to
Target
Platforms
Utilities that automates migration of:
Data Models
TM Queries
SQL
Business Rules
Reports
Interactivity
ETL Logic
Universes
Slide 20 / BI Rationalization
TM
The
Methodology – Approach Overview
Inception
Plan
Project
Definition &
Scope &
Milestones
BI Assessment
and Solution
Framework
Stakeholder
Identification
Resource
Plan
Elaboration
Analyze &
cleanse
Current
Architecture
Review
Identify
Redundancy and
Commonality
Establish
Test Strategy
Construction
Convert
& Build
Design
Design Logical
Data Model
Build Technical
Infrastructure
Design Output
Templates
Build Universe/
Data Model
Design Data
Mappings
Create Target
Output from
Conversion
Design
Technical
Architecture
Design
Universe
Presentation
Layer
Test
Transition
Deploy
Plan Parallel
& System
Testing
Plan
Deployment
Execute
Parallel &
Integration
Testing
Deploy to
Production
Conduct
Training
User
Acceptance
Testing
Report
Creation
Quality Assurance
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Plan
Operations
Support
Iteration (X)
Tran
sitio
n
The
Methodology: Report Metadata Transfer Utility
OBIEE
programmatically reads the BI metadata about each report
object in the source system and translates that definition into the
target platform’s report object.
Slide 22 / BI Rationalization
BI Rationalization: Cost Justification
Using industry averages, the typical BI
spend per 1000 user (500 reports)
incurs the following cost structures:
Cost Classification
Cost
Estimate
SW Support & Maint.
(based on 500k/20%)
$100,000
Hardware/Shared Services
Costs
$300,000
Internal Dev. and Support
Resources: Avg.3-5
$300,00
Total:
$700,000
Slide 23 / BI Rationalization
BI Rationalization: Cost Justification
Using industry averages, the typical BI
spend per 1000 user (500 reports)
incurs the following cost structures:
Estimated effort w/o utilizing
migration tools and metadata utilities:
5000 hours / $850,000.
Cost Classification
Cost
Estimate
SW Support & Maint.
(based on 500k/20%)
$100,000
Hardware/Shared Services
Costs
$300,000
Internal Dev. and Support
Resources: Avg.3-5
$300,00
Total:
$700,000
…is an incremental spend of $150k ($850k-$700k). The BI
Rationalization Project does not cost justify itself in the first
year; but certainly would over time
Slide 24 / BI Rationalization
BI Rationalization: Cost Justification
Using industry averages, the typical BI
spend per 1000 user (500 reports)
incurs the following cost structures:
Using the
approach, the
platform is consolidated in 2,500 hours
at a cost of $425,000.
Cost Classification
Cost
Estimate
SW Support & Maint.
(based on 500k/20%)
$100,000
Hardware/Shared Services
Costs
$300,000
Internal Dev. and Support
Resources: Avg.3-5
$300,00
Total:
$700,000
Saving your organization approximately $275k in the first year!
Additional Savings realized over time.
Slide 25 / BI Rationalization
BI Rationalization: Cost Justification
Using industry averages, the typical BI
spend per 1000 user (500 reports)
incurs the following cost structures:
Using the
approach, the
platform is consolidated in 2,500 hours
at a cost of $425,000.
Based on a 500 Report
BI Solution
Cost Classification
Cost
Estimate
SW Support & Maint.
(based on 500k/20%)
$100,000
Hardware/Shared Services
Costs
$300,000
Internal Dev. and Support
Resources: Avg.3-5
$300,00
Total:
$700,000
Manual Process
rBix Methodology w/
Accelerators
Estimated Time
5000 Hours
2500 Hours
Estimated Cost
$850,000
$425,000
Slide 26 / BI Rationalization
BI Rationalization: The Final Result
• Transparency and reduction in
Total Cost of Ownership (TCO)
Hardware
costs
• Clearer ROI determination
• Single view of company business
Software
Costs
BI
Functionality
Support and
Maintenance
• Foundation for BI COE
TCO
• Tighter solution integration
• Consolidation / Reuse of Business
Logic (eliminates redundancy)
BI
Architecture
& Scalability
Data
Architecture
• One vendor to “strangle” (I mean
support your organization)
Slide 27 / BI Rationalization
User
Training
Implementation
Time/Effort
BI Rationalization Success Stories
Business Challenge:
Dissatisfied with current BI software
Expiring maintenance contract; cost to increase by 135%
Four months to select vendor and convert existing environment
500 users on legacy BI software
SOLUTION:
Developed requirements and assisted in vendor selection
Implemented new environment
Transitioned from Legacy to Target BI Platform
RESULT:
Automated conversion of 90% of reports within four months
Reduced annual cost by $435,000 and improved user satisfaction
Increased consistency and credibility of data
With cost savings Increased user base (licenses) by 20%
Slide 28 / BI Rationalization
BI Rationalization Success Stories
Business Challenge:
Customer paying to support, maintain, and develop multiple BI reporting environments
Users unsure which system to leverage for various reporting needs
Concern about cost and time to consolidate to one BI environment
SOLUTION:
Developed road map to reduce steep costs and user conversion by consolidating to one
target BI Platform
Transitioned customer from three (3) platforms to one (1)
RESULTS:
Completed client estimated 15-month engagement in 6 MONTHS
Consolidated 3500+ reports into 40 reports!
Cut software maintenance fees by $450,000 (by ending legacy support agreements)
Eliminated production and back up servers required for decommissioned environments
Reduced dedicated time of support and development staff to free up for new initiatives
Increased consistency and credibility of data
Eliminated “user confusion” making the lines of business more productive in a single
environment
Slide 29 / BI Rationalization
Contact Information
Vince Belanger
[email protected]
(919) 676-5312
www.tusc.com
Slide 30 / BI Rationalization