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Www.idc.com Bill Clough Vice President, Software Research IDC EMEA Intelligent Business Intelligence Whos Afraid of Complexity:

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Presentation on theme: "Www.idc.com Bill Clough Vice President, Software Research IDC EMEA Intelligent Business Intelligence Whos Afraid of Complexity:"— Presentation transcript:

1 Bill Clough Vice President, Software Research IDC EMEA Intelligent Business Intelligence Whos Afraid of Complexity:

2 The Problem with IT Today I cant reconcile my IT costs with the business value Im delivering I have systems with spare capacity and systems that need more resources, but I cant shift the work from one to another All the information I need is here somewhere, but its hidden, fragmented & inconsistent What the business sees as a minor change always turns into a significant development project Complex requirements take so long to implement that IT gets further out of step with the business I cant justify the resources for running occasional compute- intensive modelling & analysis work I spend so much effort tackling IT issues I lose focus on the business Im meeting all my IT SLAs, but users still complain of poor performance

3 The Problem with IT Today I cant reconcile my IT costs with the business value Im delivering I have systems with spare capacity and systems that need more resources, but I cant shift the work from one to another All the information I need is here somewhere, but its hidden, fragmented & inconsistent What the business sees as a minor change always turns into a significant development project Complex requirements take so long to implement that IT gets further out of step with the business I cant justify the resources for running occasional compute- intensive modelling & analysis work I spend so much effort tackling IT issues I lose focus on the business Im meeting all my IT SLAs, but users still complain of poor performance The more IT resources I accumulate, the less I can do with them

4 This is another fine mess youve gotten me into

5 Two Conflicting Personalities of IT Business Strategy Automation & Execution Responsiveness to Market IT Operations Automation & Management Operational Efficiency End-to-End, Dynamic Management Agility Vs. Stability Source: IDC, 2005

6 The Importance of Software 0% 10% 20% 30% 40% 50% 60% Q: How important is software technology to your company's business success? Please answer on a scale of 1 to 6 where 1 is not at all important and 6 is very important. n = 625 % of n Source: IDC – European Software Group, March

7 The Value of Software 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Q: Are you getting the expected value from your software solutions? Please answer on a scale of 1 to 6 where 1 is "no value" and 6 is "more value than expected. n = 625 % of n Source: IDC – European Software Group, March

8 Tech Staff Office Staff Strategy Staff Perception of IT Driven by Business Value Recognition of Business value Direct Indirect OS Ap.Server DBMS Application Suite Business Process Each provides supporting service to higher functions Applications no longer the top layer Cost sensitive Value aware

9 Service Oriented Architecture New Initiatives for New Expectations of IT Virtual Platform: Exploiting available physical resources & payment options to best serve a variable workload EII: Delivering meaningful information from many sources to many consumers SOA: Delivering IT functionality as reusable, interoperable, location independent services Autonomic: self-managing, self-healing, self-tuning, self- securing Dynamic IT: giving users all the resources they need at the time they are needed, at a cost that is related to the business value delivered Virtual Platform/ Grid Enterprise Information Integration Autonomic Computing Dynamic IT: enabling deployment of concurrent initiatives

10 Business Intelligence (BI) Business Analytics Analytic Applications Business Performance Management (BPM) Corporate Performance Management (CPM) Enterprise Performance Management (EPM) Business Activity Monitoring (BAM) Production reporting Query & ReportingEnterprise Reporting Data Warehousing (DW) Ad-hoc analysis Portals Advanced analytics Data Mining Data quality Dashboards Statistics ETL ScorecardsData visualization Its All BI to Someone

11 Speed and Accuracy Who are our best suppliers or most profitable customers? Which new prospects should we target, Where are our expenses growing faster than sales, Which products are experiencing quality problems, Insight and Relevancy Should we extend credit to a particular customer? What will be the impact of a price change? How does recent customer activity trend predict future behavior or customer attrition rates? How does a certain pattern in product quality data predict future servicing costs? The Purpose Behind BI

12 2005 Investment Plans in BI / Analytics Q: Does your company plan to invest in any of the following technologies in the next year? Please answer: Active Investments, Considering Investing, or No Plans to Invest. n = 625 (UK n = 137) Source: IDC – European Software Group, March %20%40%60%80%100% UK Spain Germany France European Avg Italy Nordics Benelux % of n

13 2005 Investment Plans in BI / Analytics Q: How important are the each of these areas for your business intelligence/analytics projects? Please answer on a scale of 1 to 6 where 1 is not at all important and 6 is very important. n =289 – those companies answering Yes to investing in BI Tools and ranking this question 5 or 6. Source: IDC – European Software Group, March %10%20%30%40%50%60% BPRC Risk Mgmt WFM BPM/BSC CRM SCM % of n

14 2005 Investment Plans in BI / Analytics Q: How important are the each of these areas for your business intelligence/analytics projects? Please answer on a scale of 1 to 6 where 1 is not at all important and 6 is very important. n =289 – those companies answering Yes to investing in BI Tools and ranking this question 5 or 6. Source: IDC – European Software Group, March %10%20%30%40%50%60% BPRC Risk Mgmt WFM BPM/BSC CRM SCM % of n

15 Competition, partnerships, M&As: DBMS, ERP, BI, Analytic Applications Long term transition from tools to applications Analytic Apps development platforms with common services: metadata mgmt, security, authentication, data quality Integration: web services standards being adopted in all new software (building blocks) BAM with everything – increasing the breadth of real-time information will lead to adoption of dynamic process modification How the is Market Changing

16 Portal Application Doc Mgmt Bus. AnalystExec.Data AnalystEmpl.Govt.PublicSupplierPartnerConsumerLOB Mgr. Intra/Extranet Search Browse Query Structured OLAPData Mining ERPSCMCRM Custom Apps External Reporting DW Data processing Connectors Unstructured Text MiningBrowse Search Office files Web sites Image A/V External DB Content processing Connectors How the Architecture is Changing Composite applications Convergence of document and structured data Data viz and GIS Vertical focus Data federation and virtualization Scalability Growing data volumes GIS Advanced analytics BAM Web Services

17 Competitive advantage comes from the speed and accuracy with which the closed loop can be traversed. Competitive advantage comes from assessing the relevance of information to a decision and from gaining insight in seeking and evaluating possible decision alternatives. Since many types of decisions are recurring or repeatable (such as pricing, extending credit, or allocating resources), decision-making processes exist that are amenable to automation. One benefit to decision process automation is that it enables greater consistency in the way decisions are made. This is important not only for competitive reasons, but also increasingly for compliance reasons. The Value Proposition with BI

18 Senior executive engaged as sponsor and champion (CFO, CIO, COO) with real-world governance. Projects with a specific application focus generated the best results. A staged plan is executed; successful initial project needed to justify future steps; willingness to adjust. Business users worked with IT in assessing and prioritizing requirements. The challenges in transitioning people to new roles and responsibilities were recognized. Must Know Best Practices

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20 Where BI Counts Business Analytics software market comprises tools and applications for tracking, analyzing, and modeling data in support of decision making processes. The tools (build) segments of the market include data warehouse generation, data warehouse management, business intelligence, technical data analysis, and spatial information management tools. The applications (buy) segments of the market include CRM, Operations, Financial and Business Performance Management analytic applications.

21 Western European Business Intelligence Market Forecast ($M) 5.5% CAGR ,000 1,200 1,400 1, EQRAData MiningPDM/W Source: IDC, 2005 $1.4B $1.8B


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