The process of business intelligence drives business performance

2. The process of business intelligence drives business performance Bryan Wang, Vice President & Principal Analyst October 2011

3. Key IT Market Trends – 2011/2012

4. Mobile Enterprise… empowers its employees to access information, communicate, and collaborate in real-time, on an as-needed basis, anywhere and any time. - Smartphones has server-like capabilities

5. Cloud Computing Reshaping the Economics of IT - Low CAPEX, manageable/justifiable OPEX - dynamic scalability - Increasing integration with collaboration and social media - Targeted at SMBs but LoB may well lead/follow

6. Global Tech Markets Will Expand By 11.5% in 2011 But Slow to 5.5% in 2012: Uncertainties on Spending

7. Collaboration Integrating messaging, conferencing, document/screen sharing Social computing/Web 2.0 Information sharing – posting/publishing, not messaging/data transfer Popularism/wisdom of the crowds/social analytics Invitation-based access control Content management Bringing more context to data driven insights Other Key Trends

8. Major data warehouse investments stalling Reporting and end-user tools driving market growth Information complexity increasing – not just volume overload "Big data“ - driving a focus on information management affordability Master data management Business demands ever-increasing Multiple BI/Analytical platforms, frameworks, applications and appliances to deal with Platforms have been a starting point – to build and customise Frameworks are a template – a jump start Optimisation and standardisation across verticals inherently drives towards creating specific, targeted applications Optimisation and performance benefits achieved through integrated ‘stacks’ of software and hardware Increasing interest and adoption of BI/analytics outside ‘traditional’ financial and non-financial data Most still expect ROI far too soon Impacts on Business Intelligence/Analytics - 2011

9. Avoiding the annual data quality ‘event’ High Criticality Reliability Low High Data quality is not about data transformation (ETL). It’s about fixing business processes.

10. The ‘architecture’ of business intelligence Dashboards Mashups Reports Planning tools Virtual data store Data marts Data marts Data warehouses Operational data stores *example for illustrative purposes only

11. The ‘architecture’ of business intelligence Views Dashboards Mashups Reports Planning tools Virtual data store Collections Data marts Data marts Data warehouses Repositories Operational data stores *example for illustrative purposes only

12. The ‘architecture’ of business intelligence Views Dashboards Mashups Reports Planning tools Virtual data store Collections Not a single repository … A seamless repository Data marts Data marts Data warehouses Repositories Operational data stores *example for illustrative purposes only

13. The process of business intelligence Dashboards Mashups Reports Planning tools Virtual data store Data marts Data marts Data warehouses Operational data stores *example for illustrative purposes only

14. Time to discovery Time to decision Time to action/change Time to benefit realisation Reporting, analytics, collaboration& publishing Mining, analytics, reporting Publishing Collaboration Workflow, process automation, project management etc Tools, techniques, technologies Cost Conscious Competitive Innovative Standardise or automate to directly affect bottom line Standardise or automate to drive new ways of doing business Standardise or automate to drive efficiency The process of business intelligence: measuring value and effectiveness Measuring the value of a “business intelligence” process

15. Information productivity (easier) Ease of finding and accessing relevant information More information can be ‘never enough’ Decision productivity (better) Speed at which quality decisions are able to be made Potentially inhibits intuitive & cognitive decision making Process productivity (smarter) Speed at which something can be done Not all time saved is appropriately re-applied BI’s impact on productivity Better/easier access to information doesn’t necessarily ensure its more intelligent use – neither does the use of more complex tools!

16. Past IT trends were all vendor-driven But the balance of power has shifted! Consumer-driven demand is changing market dynamics Collaboration and social networking are a given Business implications are significant ‘Generation i’ users rule – it’s not all about ‘Gen-Y’ Not a demographic – a psychographic Image driven, information rich, instant response, interaction ready, internationally savvy They think, act, and work differently We may not understand them.... but we must embrace them Not so much about the data…it’s about the process - and users! “Gen-Y’s are more likely to buy ‘disposable’ housing...but life-time lasting tattoos.” The process of business intelligence drives business performance – but users must be engaged

17. Helps to drive semantic consistency and business information alignment Reduces “definitional disagreements” Helps improve master data quality and relevancy Limits duplication and version control issues Improves visibility Who has access to what information? How is information being shared and used? Enhances compliance and audit capabilities Provides a more unified, comprehensive and consistent approach for auditing Tracks activities, permissions, access and distribution of information Stimulates greater value of business insight Stimulates and improves collaborative analysis and decision making Collaborative BI: enhancing information quality, governance, compliance and audit efforts Collaborative BI, properly implemented, can enhance the organizations quality, compliance, governance and audit initiatives.

18. Master data management - crucial...but not key “Repositories, collections and views” often provide more compelling insights Understand “trainability”, not just usability Improve use and understanding through exposure to users – some use of simple tools is better than no use of fancy/complex ones Capitalise on benefits of collaboration For training, data quality and process improvements Insight driven organisation Intelligent organisation Knowledge organisation Responsive organisation Evidence based organisation Reactive organisation The process of business intelligence – a starting point Though standards remain important, beware the psychology of the desire for unnecessary control. Institutionalising the process of BI is more important than standardisation of tools, data structure and/or data repositories.

19. The process of business intelligence drives business performance Creating a sustainable process means creating a culture of business intelligence Culture is best developed by exposure and experience to business intelligence - throughout the organisation Exposure and experience are (most cost effectively) achieved by embedding business intelligence tools, process and outputs in as many systems throughout the organisation as possible External data can add insight and value to internal data Focus on improving ‘degrees of conformance’, tolerances and ‘acceptable margins of error’. Good-enough data can often provide more valuable insights and indicators than “perfect” data Key Takeaways

20. Are we there yet? “Right now I’m having amnesia and déjà vu at the same time. I think I’ve forgotten this before.” – Steven Wright

21. Thank youDownload the Forrester report “Trends 2011 And Beyond: Business Intelligence”, March 31, 2011 at www.forrester.com/Microsoftbigpictureintelligence Bryan Wang +86 10 5900 2972 bwang@forrester.com www.forrester.com