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
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Current State of Business Intelligence
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Answering the Call
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The
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BI Vendors Respond
Why Isn’t Everyone “Rationalizing”?
Methodology – BI Rationalization
BI Rationalization Approach Overview
Report Conversion Utility
BI Rationalization
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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
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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:
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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
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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”
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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
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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
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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
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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.
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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
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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%
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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