1. Who’s Afraid of Complexity:
Bill Clough
Vice President, Software Research
IDC EMEA
Who’s Afraid of Complexity:
Intelligent Business Intelligence
CIO's are challenged to reduce costs in ever more complex and disparate environments while simultaneously providing more effective business performance management tools to corporate users. To meet this challenge, an escalating volume of data must be analyzed quickly while simultaneously drawing information from countless resources. In response to a fragmented environment that historically generates conflicting reports the intelligent use of BPM and BI solutions is among today's most valuable IT business investments.

2. The Problem with IT Today
I can’t reconcile my IT costs with the business value I’m delivering
I have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to another
All the information I need is here somewhere, but it’s 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 can’t 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
I’m meeting all my IT SLAs, but users still complain of poor performance

3. The Problem with IT Today
I can’t reconcile my IT costs with the business value I’m delivering
I have systems with spare capacity and systems that need more resources, but I can’t shift the work from one to another
All the information I need is here somewhere, but it’s 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 can’t 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
I’m 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 you’ve gotten me into

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

6. The Importance of Software
60%
50%
40%
30%
20%
10% 0%
6  1
% of n
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
Source: IDC – European Software Group, March 2005

7. The Value of Software 6  1 % of n 45% 40% 35% 30% 25% 20% 15% 10% 5%
79% for UK vs. 84% Europe 0%
6  1
% of n
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
Source: IDC – European Software Group, March 2005

8. It’s All BI to Someone 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 & Reporting Enterprise Reporting
Data Warehousing (DW) Ad-hoc analysis
Portals Advanced analytics
Data Mining Data quality
Dashboards Statistics ETL
Scorecards Data visualization

9. The Purpose Behind BI Speed and Accuracy Insight and Relevancy
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?

10. 2005 Investment Plans in BI / Analytics
Benelux
Nordics
Italy
European Avg
France
Germany
Spain UK 0%
20%
40%
60%
80%
100%
% of n
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 2005

11. 2005 Investment Plans in BI / Analytics
SCM
CRM
BPM/BSC
WFM
Risk Mgmt
BPRC 0%
10%
20%
30%
40%
50%
60%
% of n
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 2005

12. How the is Market Changing
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
Business interests adapting
From introspective - internal efficiency
To outgoing - interactions at the company boundaries
Enhancing the experience for customers
Building better relationships with suppliers
Creating higher value partnership chains
Responding to change more effectively
Exploit “first to market” potential
Optimising end-to-end processes – rather than individual activities

13. How the Architecture is Changing
Exec.
LOB Mgr.
Data Analyst
Bus. Analyst
Empl.
Govt.
Public
Supplier
Partner
Consumer
Search Browse Query
Application
Portal
Application
Application
Doc Mgmt
Intra/Extranet
Text Mining
Search
Browse
GIS
Data Mining
OLAP
Reporting
Vertical
focus
Advanced analytics
Data viz and GIS
Composite applications DB DW
Data federation and virtualization
Scalability
Web
Services
Content processing
Data processing
Growing data volumes
BAM
Connectors
Connectors
Unstructured
Structured
Office
files
Web
sites
Image
A/V
External
ERP
SCM
CRM
Custom
Apps
External
Convergence of document and structured data

14. The Value Proposition with BI
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.

15. “Must Know” Best Practices
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.
Identify key business objectives
Identify key performance indicators (KPI’s) to measure progress to objectives
Focus on a business process with high impact to selected KPI’s
Gain support, participation of relevant business and technology stakeholders
Measure and evaluate improvement, then refine
Implement in a staged approach on a common, extensible, and scalable architecture
Provide a sense of ‘Controlled Empowerment’