Assessing Your BI Maturity. Wayne Eckerson Director, TDWI Research
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1 Assessing Your BI Maturity Wayne Eckerson Director, TDWI Research
2 TDWI Maturity Model The 5-step model is generalized Rates of evolution vary! Stages are additive Not mutually exclusive Skipping stages is possible but risky Requires experts, strong sponsors, sizable funding A good methodology steps you through the stages Regressing stages is also possible Mergers, acquisitions, reorganizations New CEO/CIO, regulations, competitors 2
3 BI Maturity Model Adoption Curve GULF CHASM 1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage Business Value Semantic Integration Data Consolidation 3
4 Architectural Dimension Operational Reporting Spreadmarts GULF Data Marts Data Warehouses CHASM Enterprise DW % of companies by stage BI Services 1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage Business Value Semantic Integration Data Consolidation 4
5 Scope Dimension Department Business Unit System Individual GULF CHASM Enterprise Extended Enterprise 1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage Business Value Semantic Integration Data Consolidation 5
6 Business Purpose Dimension Empowers Workers Monitors Performance Informs Executives GULF Cost Center CHASM Drives the Business Drives the Market 1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage Business Value Semantic Integration Data Consolidation 6
7 Adoption Rates TDWI Benchmark Assessment Survey, 2007, Based on 1813 Respondents Empowers Workers Monitors Performance Cost Center Informs Executives GULF 1% 6.5% 26% 42% CHASM Drives the Business Drives the Market 21% 3%.5% 1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage Business Value Semantic Integration Data Consolidation 7
8 Prenatal-Infant Stages Prenatal Operational/Mgmt Reporting Static, scheduled, reports (no analysis) Run off operational systems or ODS IT-developed Backlog of custom reports Infant - Spreadmarts Users circumvent IT Cheap, easy to use tools Human data warehouses 1. Prenatal Infant Analytic silos, IT shadow systems GULF 8
9 The Gulf - Symptoms Executive perceptions Sponsorship and funding Data quality Project scope Spreadmarts 9
10 Spreadmart Costs TDWI Survey Results Business analysts spend a medium of 2 days a week creating spreadmarts Business analysts medium salary is $65,000. The medium cost of spreadmarts to each organization is $780,000 a year!
11 Five Remedies 1.Communicate 2.Convert 3.Coerce 4.Coexist 5.Co-opt You must apply all techniques to succeed! 13
12 The Enlightenment Fork Executive Perceptions Sponsorship Funding What Kind of Executive Do You Have? Enlightened Executives - BI is a no brainer. - Information and insights run our business. Traditional Executives - Show me the money! - Show me results first before I invest 14
13 Traditional Executives Solutions Know the business Find the pain Sell, sell, sell Benchmark with competitors Quantify and promise bottom line benefits Bootstrap a prototype Wait for enlightenment Wait for a crisis Run away! 15
14 Strategic Value and ROI Prenatal Infant Child Teenager Adult Sage Type of System Financial System Executive System Analytical System Monitoring System Strategic System Business Service Analytical Tools Static Reports Spreadsheets OLAP/ Ad hoc Reports Dashboards Scorecards/ Analytics Customer BI Embedded BI Executive Perception Cost Center Inform Executives Empower Workers Monitor Performance Drive the Business Drive the Market ROI Cost ROI Value Architecture Operational Reporting Spreadmarts Data Marts Data Warehouses Enterprise DW BI Services 16
15 Child-Teenager Stages Overall trend Greater data consolidation More semantic consistency Interactive reporting Performance monitoring Nightly feeds to DW Governance evolves Project to program mgmt Data Marts Data Warehouses CHASM 2. Child 3. Teenager 18
16 Chasm - Challenges Business volatility Reconciling metrics Delivering the last mile Tactical to strategic Pervasive BI 19
17 University of Illinois Before Groups Aligned with DW Processes Information Architecture Data Architecture Linear development Technical Architecture Gather Requirements Data modeling/etl Physical models/metadata Business Development Training/support/ outreach Problems: -Backlog of projects -Reduced funding -Vulnerable staff 20
18 After Collaborative Iterative Responsive Aligned with the Business Data Management Customer Service Data Acquisition University Strategic Objectives Infrastructure Improvement Environment Management BI Solutions Information Architecture Organizational Development Marketing & Outreach 21
19 Results Greater Agility Doubled number of annual projects From seven to 16 No increase in funding or staff No staff attrition University wants to replicate the model to other areas 22
20 Adult and Sage Stages Overall trends Consistent semantics & metrics Unified, flexible architecture Business/IT alliance Pervasive BI High business value Enterprise DW BI Services 4. Adult 5. Sage 34
21 Adult Stage Veteran BI team Centralized management Flexible DW Architecture DW fully loaded Built in layers of abstraction Agile development Federated tools for on-demand Strategic applications KPI-based performance management Operational BI Predictive analytics 35
22 Analytic Purpose Prenatal Infant Child Teenager Adult Sage BI Focus What happened? What should happen? Why did it happen? What is happening? What will happen? What can we offer? BI Output Data Capture Static Reports Scenarios/ Plans Interactive Reports Dashboards/ Alerts Pred. Models/ Strategy Maps Rules/Triggers Monthly Weekly Daily Right-time Right-time Real-time Decision Latency Awareness Understanding Actionable Information Decision Automation Data Freshness Insights Action 36
23 Sage Stage Federated development Based on standards and BICCs Process driven BI Embed BI into applications Buy composite applications Decision automation Commercialized analytic services Sell services or products based on the DW 41
24 Harmonize local & enterprise needs Scope Funding Team Governance Prenatal Infant Child Teenager Adult Sage Enterprise Individual Department Division Enterprise Inter-Enterprise IT Executive Dept. Budget Div. Budget Corporate Corporate IT Analyst Dept. IT Div. IT Corp. IT IT Executive BI Project Mgr BI Program Mgr Steering Committees BICC Steering Committees Local control Negotiate & Consolidate Think Local, Resist Global Plan Global Act Global Flexibility/ Standards Enterprise Standards Plan Global Act Local Architecture Operational Reporting Spreadmarts Data Marts Data Warehouses Enterprise DW BI Services 43
25 Federation Where Draw the Line? Corporate BI Business Unit BI Centralized Organization DW Models ETL Data Marts BI Layer Reports Decentralized Organization DW Models ETL Data Marts BI Layer Reports 44
26 BU Sandboxes at Intuit 1990s Local data warehouses, spreadmarts in each BU BU 1 BU 2 BU 3 BU Fully centralized enterprise data warehouses BU 1 BU 2 BU 3 BU 4 Reports Reports Reports Reports Reports Reports Reports Reports Data Whs 1 Data Whs 2 Spread Mart 1 Spread Mart 2 Enterprise DWs Benefits: Rapid deployment Local control over priorities, resources Customization meets high % of requirements Challenges: Duplication of effort across BUs Redundant costs (HW, SW, support staff) Silo mentality, lack of comm across Bus Data integration difficult without scalable environment Benefits: Reduce data redundancy Promotes communication between Bus Resource efficiency (HW, SW, FTEs) Challenges: BUs compete over centralized DW resources One size fits all solution meets lower % of business requirements for each BU Data integration difficult due to limited resources 45
27 Intuit s BI Evolution Enterprise DW foundation with context-specific flexibility BU 1 BU 2 BU 3 BU 4 Reports Reports Reports Reports Ent DM 1 Ent DM 1 BU DM 1 BU DM 1 BU DM 1 Hybrid model leverages benefits of both centralized & decentralized models Challenges from both models still exist to a lesser degree but consciously accepted given the benefits Crucial focus on easier data integration to support growth of various businesses Enterprise Data Marts BU-owned Data Marts BU-specific data, filters, biz rules DW Foundation ODS tables, shared dimensions Enterprise DW 46
28 Summary BI is a journey You ll hit bumps along the way Gulf and Chasm Adhere to best practices 47
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