The Ins and Outs of Open Source Business Intelligence. Rajeev Rawat BI Results, LLC October 24, 2007
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1 The Ins and Outs of Open Source Business Intelligence Rajeev Rawat BI Results, LLC October 24, 2007
2 Traditional Business Intelligence Expensive Locked-in Complex Copyright 2007, BI Results, LLC. All Rights Reserved
3 Open Source Open Source Business Intelligence Dynamic Innovative Compelling Copyright 2007, BI Results, LLC. All Rights Reserved
4 Humor or Critical Thinking? Copyright 2007, BI Results, LLC. All Rights Reserved 4
5 Business Intelligence What is BI Why is BI Important Example of BI at work Decoupling the BI drive train The essence of BI Does Open Source BI work? Proof points Key factors Critical perceptions How to assess whether An Open Source BI solution fits your needs? Criteria Copyright 2007, BI Results, LLC. All Rights Reserved 5
6 Generally Used Definition Business intelligence (BI) is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support systems, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining. Business intelligence applications can be: Mission-critical and integral to an enterprise's operations or occasional to meet a special requirement, enterprisewide or local to one division, department, or project centrally initiated or driven by user demand Copyright 2007, BI Results, LLC. All Rights Reserved
7 Gartner..Information Democracy will emerge in forward-thinking enterprises, with Business Intelligence information and applications available broadly to employees, consultants, customers, suppliers, and the public. The key to thriving in a competitive marketplace is staying ahead of the competition. Making sound business decisions based on accurate and current information takes more than intuition. Data analysis, reporting, and query tools can help business users wade through a sea of data to synthesize valuable information from it - today these tools collectively fall into a category called "Business Intelligence." Copyright 2007, BI Results, LLC. All Rights Reserved
8 BI Examples Business Process Operations Systems Infrastructure Business Results RFID Tags on shipments Tracking in motion Delivery on shelf Revenue per item Inventory turns mapped to profit per shelf foot Turns faster or slower Best Practices from HQ or Replenishment Logistics Manuf. to Shipper Shipper to Retail Warehouse Warehouse to Retailer Packaging, Promotion Retailer to shelf profit plan (turns, customer, promos) Turns Sale, turns, overstock, or overstock, lost sales or lost sales Connectivity Manufacturer, Shipper, Retailer POS systems, Server, Applications, Networks, Storage, Compatibility for analysis, reports, triggers Integrated business rules and IT tools Customer experience. Loyalty Business insights to enable action Excel to compete. Competitive advantage Copyright 2007, BI Results, LLC. All Rights Reserved
9 Typical BI Stack Analysis sw accesses data for analysis and presents information insights for actions Data is transferred to systems operating systems and applications to be stored in a structured form Data is generated at diverse points by various applications running on a variety of platforms Others Profile Classify Security Authentication Compatibility across the enterprise and collaborating systems Data and data quality Data formats and data models Copyright 2007, BI Results, LLC. All Rights Reserved
10 BI Solutions Drive Train Transactional systems Repository ODS Line of business systems S o u r c e s L o a d Data Warehouse Analytics Reporting Copyright 2007, BI Results, LLC. All Rights Reserved 10
11 Drive Train Compatibility Ab Initio Erwin IBM Informatica IBM MicroSoft Oracle SAP Teradata Fair Isaac MicroSoft Oracle SAP SAS Business Objects Cognos MicroStrategy SAP Transactional systems Repository ODS Line of business systems S o u r c e s L o a d Data Warehouse CRM ERP GL S/DCM Reports Scorecards Dashboards Analytics Reporting Copyright 2007, BI Results, LLC. All Rights Reserved 11
12 Increase in business velocity is accelerating event-driven approaches to operations Document transfer Call center inquiries Trading analytics Airline operations Phone activation Calculate fin. positions Supply chain updates Build-to-order PC Load data warehouse Trade settlement From 3 Days 8 Hours 30 minutes 20 minutes 3 Days 1 Day 1 Day 6 Weeks 1 Month 5 Days To Seconds Minutes Hours Source Data from Donald Feinberg, V.P. and Distinguished Analyst, Gartner days Copyright 2007, BI Results, LLC. All Rights Reserved 12
13 BI usage, a strategic advantage Source: CIO Insight Oct 2007 Survey. Copyright 2007, BI Results, LLC. All Rights Reserved 13
14 BI applied across the enterprise functions Source: CIO Insight Oct 2007 Survey. Copyright 2007, BI Results, LLC. All Rights Reserved 14
15 BI impact on performance is clear Source: CIO Insight Oct 2007 Survey. Copyright 2007, BI Results, LLC. All Rights Reserved 15
16 IDC: Market is growing IDC s definition of the business analytics software market includes 11 data warehousing and performance management tools and applications segments. According to IDC, the business analytics software market reached $19.3 billion in 2006, representing a growth rate of 11.2 percent. The authors expect the worldwide business analytics software market to continue to grow at a healthy compound annual growth rate of 10.3 percent over the next five years. Furthermore, IDC has made the following predictions about the future of business analytics: - Business analytics solutions will increasingly incorporate functionality for unified access and analysis of structured data and unstructured content, business process management, collaboration and workflow management functionality. - A broader set of organizations (in all geographic regions and of all sizes) is beginning to look at business analytics not just as a set of reporting functions, but as a means to gain competitive advantage through better decision management and process optimization. Copyright 2007, BI Results, LLC. All Rights Reserved 16
17 Essence of BI Pervasive Infrastructure integration Across the enterprise applications All users benefit Precise decisions faster Faster execution Competitive requirement Copyright 2007, BI Results, LLC. All Rights Reserved
18 Traditional vs. Open Source BI Typical concerns of traditional BI users Key differentiators of Open Source BI Expensive Locked-in Complex Dynamic Innovative Compelling Copyright 2007, BI Results, LLC. All Rights Reserved
19 Traditional BI deployed CIO/BI/DW managers top concerns (Source: BI Results survey 2006) BI education, awareness, and executive sponsorship Disconnected business and IT visions Cost to upgrade functions scalability, performance, volume Infrastructure and applications compatibility with silos No simple path to creating enterprise-wide repository User adoption and use of expensive functional capabilities Skills and time to implement upgrades High cost of switching to another vendor Teamwork among vendors Turnover on vendor technical team Copyright 2007, BI Results, LLC. All Rights Reserved
20 Drive train connectivity, a major BI issue Source: CIO Insight Oct 2007 Survey. Copyright 2007, BI Results, LLC. All Rights Reserved 20
21 Key differentiators of Open Source BI Cost Flexibility Standards based solutions Ease of adoption Faster functionality updates Best of breed functionality from user community Copyright 2007, BI Results, LLC. All Rights Reserved
22 Open Source BI adoption is growing Source: CIO Insight Oct 2007 Survey. Copyright 2007, BI Results, LLC. All Rights Reserved
23 Open Source BI: a compelling competitive force Gartner: Open-source products accounted for a 13 percent share of the $92.7 billion software market in 2006, but should account for 27 percent of the market in 2011 when revenue is expected to be $169.2 billion Of 295 respondents in the U.S. and Europe found that open source software usage stood at 23.6 percent, and this number is set to grow to 25.9 percent over the next year, "Open-source software is going to erode proprietary sales revenue by offering less-expensive or free alternatives, expanding the total market potential by meeting the demands of SMBs for affordable solutions, and creating a new business model to provide selection, customization and management services Most commercial software products will include elements of open-source code by The open-source software being used, 49.7 percent is used in mission-critical situations, with 50.3 percent being used in non-mission critical situations. That compared to 59 percent of commercial or proprietary software and 58.5 percent of internally developed software which is used in mission-critical situations...market accelerators to open source, the low barriers to entry and increased return on investment, the availability of high-quality solutions at low cost, the access to open standards and development processes, vendor independence and flexibility resulting in investment protection and faster procurement and a shorter development time. Among the market inhibitors, many of which are perceptions rather than reality, are concerns about migration and skills transfer, internal development, support and maintenance costs, quality assurance, and the large number of license with conflicting terms. Copyright 2007, BI Results, LLC. All Rights Reserved
24 Gartner: Ignoring Open Source not an option Open source "the biggest change in corporate IT since distributed computing." "Open source is not a niche, not a fad." And on the competitive front "competing against open source is tilting at windmills. - By 2011, Gartner predicts that at least 80% of all commercial software solutions will include substantive open source. - Open source is being used equally for mission critical and non-mission critical applications. Gartner's survey shows 49.7% of open source usage is being done for "mission critical" applications, as compared to 59% for proprietary software and 58.5% for internal development. -- Adoption is heading for more mainstream adoption by 2012 and that the priorities will be: cost and risk -- Develop an open source policy saying that open source adoption "has to be managed" alongside existing software. -- Open source has achieved dramatic success in the infrastructure layer: operating systems (Linux), application servers (JBoss, Tomcat), DBMS (MySQL), and security (Snort). The next wave of adoption will be at the application level: CRM, content management, supply chain management, e-learning, etc. -- In most cases there is better quality and lower Total Cost of Ownership (TCO). Copyright 2007, BI Results, LLC. All Rights Reserved
25 Criteria for assessing Open Source BI alternative Business need BI functions requirement Risk profile Skills match Systems environment Pricing Vendor maturity Solution maturity Solution maturity Vendor maturity Pricing Business Need Systems environment BI functionality requirement Risk profile Skills match Copyright 2007, BI Results, LLC. All Rights Reserved 25
26 Criteria for assessing Open Source BI alternative Business Need - Urgency - Sponsor - Users - Bottlenecks - Data sources - Data quality - Data owners - Business needs BI functionality Requirement - Computations - Integration - Reporting - Time - Embed-ability/SOA - Repository - Dashboard/portal - OLAP UI - OLAP Server - ETL - End-User Ad Hoc - Alerts - Semantic Layer - Security - Scheduling - OSS Community connection Risk Profile - Financial - Operational - Performance - Skills gap Copyright 2007, BI Results, LLC. All Rights Reserved 26
27 Criteria for assessing Open Source BI alternative Skills match - Business Users - Systems Users - Current vendor teams - New vendor team Systems environment - Server and storage connectivity - Data integration and interchange - Application compatibility Pricing - Licenses - Maintenance - Support - Transition costs - Upgrades - Renewals Copyright 2007, BI Results, LLC. All Rights Reserved 27
28 Criteria for assessing Open Source BI alternative Vendor maturity - Customer satisfaction - Install base - Requirements gathering process - Reference accounts Solution Maturity - Availability duration - Install base - Tools compatibility - Standards compatibility - Mature, world-class reporting products - Ready-to-use out of the box - ISV-ready: embeddable & extensible - Professionally localized & internationalized - Meets complete continuum of BI needs - Reporting, Analysis, Data Integration Other - Contributes code that extends the functionality and value of the core products - Indemnification - OSS Community Connection - Creates projects that surround the core products with utilities, localizations, and integrations - Tests new releases of the products - Reviews documentation Copyright 2007, BI Results, LLC. All Rights Reserved 28
29 Consolidate Assessment for business and systems convergence, consensus Criteria Business BI functionality Risk Skills Systems Pricing Vendor Solution Need requirement profile match environ maturity maturity Urgency Sponsors Users Bottlenecks Sources Data Quality Data Owners Computations Integration Reporting Shared Solution maturity Vendor maturity Business Need BI functionality requirement Risk profile Time Risk: Fin Risk: Oper. Risk: Transac Pricing Systems environment Skills match Copyright 2007, BI Results, LLC. All Rights Reserved 29
30 Open Source BI: What if the CIO, CFO, CEO saved 5%-25% on licensing costs at a previous company? What will you be RIGHT BACK with? Copyright 2007, BI Results, LLC. All Rights Reserved 30
31 Open Source BI: You re on the ball! WE VE FOUND THREE WAYS TO LEVERAGE OPEN SOURCE - YOU Criteria II III ROI Payback Savings Schedule Risk I Copyright 2007, BI Results, LLC. All Rights Reserved 31
32 Open Source BI: You have a plan WE VE FOUND THREE WAYS TO LEVERAGE OPEN SOURCE - YOU Criteria II III ROI Payback Savings Schedule Risk I You can keep your job Copyright 2007, BI Results, LLC. All Rights Reserved 32
33 Open Source BI: Lead the change WE VE FOUND THREE WAYS TO LEVERAGE OPEN SOURCE - YOU Criteria II III ROI Payback Savings Schedule Risk I You can keep your job For now Copyright 2007, BI Results, LLC. All Rights Reserved 33
34 Open Source Business Intelligence Open Source BI is a competitive differentiator. It can reduce cost and provide incremental functionality. Learn whether or where it fits in your scope or needs. Leverage for competitive advantage. Grow skills to advance your career. Your opportunity to shine Copyright 2007, BI Results, LLC. All Rights Reserved
35 Customer Examples Lance Walter, VP Marketing
36 Pentaho Introduction World s most popular enterprise open source BI Suite 2 million lifetime downloads, averaging 100K / month Founded in 2004: Pioneer in professional open source BI Management - proven BI and open source veterans from Business Objects, Cognos, Hyperion, JBoss, Oracle, Red Hat, SAS Board of Directors deep expertise and proven success in open source Larry Augustin - founder, VA Software, helped coin the phrase open source New Enterprise Associates investors in SugarCRM, Xensource, others Index Ventures investors in MySQL, Zend, others Widely recognized as the leader in open source BI
37 Pentaho Subscription: Minimizing Risk in BI
38 Pentaho Technology Fundamentals Componentized and modular Service-implemented architecture Built from the ground up as a set of services Exposed via AJAX and Web Services 100% Java EE server side Scalable, standards-based Web-based, thin-client end user interfaces Eclipse-based design interfaces Embedded workflow / process engine
39 Pentaho BI Platform at Orbitz Orbitz, Global Travel Services Company Key Challenges Self-service reporting for extranet application serving travel agents Pentaho Solution Pentaho Reporting Server Professional Edition Red Hat Enterprise Linux, JBoss Application Server, MySQL database 2,500 users Results Integrated, self-service reporting Application selected as 2006 JBoss Innovation Award winner 4-year, $1.5M TCO reduction Why Pentaho Cost of ownership Embeddability within custom web-based applications (security, user interface, etc.)
40 Pentaho Reporting Access and format data from disparate sources RDBMS, XML, OLAP Produce in popular formats Multiple report types Operational Analytical Financial Directly against sources or using centralized metadata layer pixel perfect report designer Web-based business user ad hoc
41 Pentaho Reporting at Terra Industries (NYSE: TRA) We chose Pentaho because it has a full range of functionality, exceptional flexibility, and a low total cost of ownership because of its open source business model. We can start delivering value to our business users quickly with embedded, web-based reporting, while integrating our disparate data sources for more strategic benefits down the road. $2B Global Nitrogen Products Leader Key Challenges Aligning pricing and delivery with inventory and supply Obtaining an integrated view of operations across multiple disparate operational systems Pentaho Solution Pentaho Reporting Pentaho Data Integration Sourcing data from SAP R/3, Peoplesoft, Tabware, and home-grown systems MySQL Enterprise Results Rapid time-to-value via embedded operational reporting for front-line workers Long-term strategic benefits from single, integrated view of company-wide information Why Pentaho Functionality and flexibility Cost of ownership
42 Pentaho Analysis ROLAP architecture Works with all popular open source and proprietary DBs View data dimensionally i.e. Sales by region, by channel, by time period Navigate and explore Ad Hoc analysis Drill-down from year to quarter Pivot Select specific members for analysis Web-based or Excel front ends
43 Pentaho Analysis at Frontier Airlines (NASD: FRNT) The competition is intense in the airline industry and Frontier is committed to staying ahead of the curve by leveraging technology that will help us offer the best prices and the best flight experience. [the application] fits right in with our philosophy of providing world-class performance at a low price. Key Challenges Frontier Airlines Understanding and optimizing fares to ensure Maximum occupancy (no empty seats) Maximum profitability (revenue per seat) Pentaho Solution Pentaho Analysis (Mondrian) BizGres MPP database (Greenplum) 500 GB of data, 6 server cluster Results Comprehensive, integrated analysis to set strategic pricing Improved per-seat profitability (amount not disclosed) Why Pentaho Chose Greenplum and Mondrian over Oracle Rich analytical and MDX functionality Cost of ownership
44 Pentaho Dashboards Tight business process integration Embedded workflow Can receive events from or trigger events in external systems Pentaho Open BI Suite Integration Comprehensive auditing of user activity, performance and data access Context-sensitive drilling to reports or analysis Integrated security, scheduling, alerting, portal integration, Modern, Standards-based Architecture J2EE and AJAX providing scalability, portability, and integration All components exposed as webservices JDBC 2.0 compliant
45 Pentaho Dashboards at Boyne Resorts We ve advanced a major step forward for our business users by leveraging Pentaho With professional support and a comprehensive BI offering from Pentaho, we ve significantly upgraded our functional capabilities for a fraction of the cost of proprietary alternatives.. North America s Largest Family Run Four- Season Resort Company Key Challenges Understanding customer behavior and customer loyalty to drive marketing programs Analyzing profitability of resorts, food service Pentaho Solution Pentaho Dashboards, Reporting, and Analysis. replacing Crystal Reports from Business Objects Pentaho integration with Google Maps Microsoft Windows, SQL Server Results Critical insight into customer trends to maximize results from marketing programs Primary marketing dashboard delivered in less than one day Why Pentaho Breadth of functionality in open source Ability to deliver results quickly Cost of ownership
46 Boyne Resorts Application Example User-defined thresholds Breakdown of stays by resort in selected city Zoom in gauge showing visits / city Color-coded pins Full list of cities and total stays (# removed) NOTE: Data and Image have been modified to protect confidential info.
47 Pentaho Data Mining Rich analytical capability 49 data preprocessing models 76 classification/regression algorithms 8 clustering algorithms 15 attribute/subset evaluators + 10 search algorithms for feature selection Graphical interfaces Exploratory data analysis Experiment execution Process / flow modeling
48 Pentaho Data Integration Rich Feature Set Enterprise-class performance and scalability Broad Database Support 100% Meta-data Driven Graphical, model-driven design Mature, 4th generation product
49 Pentaho Data Integration at ZipRealty (NASD: ZIPR) With professional support and world-class ETL from Pentaho, we've been able to simplify our IT environment and lower our costs. We were also surprised at how much faster Pentaho Data Integration was than our prior solution. National Real Estate Brokerage Key Challenges Measuring and optimizing agent performance, customer satisfaction, and marketing ROI Getting an integrated, strategic view across multiple operational systems Pentaho Solution Pentaho Data Integration Red Hat Enterprise Linux, MySQL database Continued use of proprietary BI tools (MicroStrategy) Results Three-fold performance increase, 8 hour reduction in batch load times Simplified maintenance and reduced costs Why Pentaho Functionality and flexibility Professional support
50 Questions?? 50
51 Contact Information If you have further questions or comments: Rajeev Rawat, BI Results Lance Walter, Pentaho 51
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