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BI Rationalization

BI Rationalization. Reduce Risk, Trim Costs and Improve Your Decision-Making Ability . Presented By: Vincent Belanger Partner, BI & Data Mgmt. Rolta-TUSC 919-676-5312 BelangerV@Tusc.com. Presentation Agenda.

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BI Rationalization

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  1. BI Rationalization Reduce Risk, Trim Costs and Improve Your Decision-Making Ability Presented By: Vincent Belanger Partner, BI & Data Mgmt. Rolta-TUSC 919-676-5312 BelangerV@Tusc.com

  2. Presentation Agenda • Current State of Business Intelligence • BI - A Business Imperative • The Evolution. What Happened. • Why Did It Happen? • Answering the Call • BI Vendors Respond • Why Isn’t Everyone “Rationalizing”? • The Methodology – BI Rationalization • BI Rationalization Approach Overview • Report Conversion Utility • BI Rationalization • Cost Justification • The Final Results • Case Studies

  3. Current State of BI: A Business Imperative “How widespread is your organization’s adoption of BI, Data Warehousing, and Data Integration initiatives?” Base: 82 IT decision-makers(percentages do not total 100 because of rounding) Source: August 2008 Global BI And Data Management Online Survey

  4. Current State of BI: A Business Imperative “How many different BI products do you have in your department; across the entire enterprise?” Base: 82 IT decision-makers Source: August 2008 Global BI And Data Management Online Survey

  5. Current State of BI:A Business Imperative From a Business Intelligence perspective, the primary focus for IT Directors and CIO’s is to reduce internal and overhead (I&O) cost through: • Unified BI solutions • Collaboration between departments • Reduction in BI shelf ware • Leverage existing solutions • Realize ROI; which was the original intent - Gartner Group

  6. DW/BI TOOL Current State of BI: The Evolution. What Happened? Sales & Marketing

  7. BI Tool 2 BI Tool 2 Current State of BI: The Evolution. What Happened? Sales & Marketing Finance

  8. BI Tool 1 Current State of BI: The Evolution. What Happened? “The Road to Hell is paved with good intentions” – Samuel Johnson Data Warehouse Business Units Data Warehouse Multiple BI Tools Disparate Systems Finance BI Tool 2 Sales & Marketing BI Tool 3 Customer Service Custom Built Reporting Solution Operations

  9. BI Tool 1 Current State of BI: The Evolution. What Happened? “The cost of living in Hell is expensive” – Mike Cochran Data Warehouse Business Units Data Warehouse Multiple BI Tools On-going System Cost $1,650,000 Finance $2,300,000 BI Tool 2 Sales & Marketing $1,850,000 BI Tool 3 Customer Service Custom Built Reporting Solution $2,100,000 Operations Total Cost: $7,900,000

  10. Current State of BI: The Evolution. What Happened? • Multiple BI environments strap organizations with excessive support cost and reduce user adoption. • Inability to created economies of scale through • establishment of a Center of Excellence (COE) • software maintenance agreements • common technical architectures • Transfer/reuse of business logic • Resource planning/training (admin and user) • “Multiple versions of the truth” compromise visibility/trust • Increase in data movement requirements (ETL processes); increases likelihood of errors; duplication of effort/support • Fosters “information hoarding”, silos; political • Complicates metadata management strategies • Constrains organizational growth due to lack of “consolidated insight”

  11. Current State of BI: Why Did It Happen Historically companies had to purchase multiple tools to meet information delivery needs. Data Warehouse Reporting OLAP Analytics Dashboards Data mining Database ETL Product 1 Prod. 2 Product 2 Product 3 Product 4 Product 5

  12. Current State of BI: Why Did It Happen Historically companies had to purchase multiple tools to meet information delivery needs. Solutions have evolved… Data Warehouse Reporting OLAP Analytics Dashboards Data mining Database ETL Oracle / SAP / Cognos / Microsoft Oracle acquires Hyperion… Business Objects acquires Crystal… SAP acquires Business Objects… Microsoft acquires ProClarity… IBM acquires Cognos… Oracle acquires Siebel…

  13. Microsoft Office Interactive Dashboards Ad hoc Analysis Proactive Detection and Alerts Reporting & Publishing BI Publisher Financial Reporting Interactive Reporting SQR Production Reporting Web Analysis Common Enterprise Information Model Oracle BI Server SetGoals Plan Align InsightPerformanceAction Financial Performance Management Applications DataWarehouse Data Mart SAP, Oracle PeopleSoft, Siebel, Custom Apps Files Excel XML Report Monitor OLTP & ODS Systems Business Process HyperionEssbase Analyze Answering the Call: BI Vendors Respond * Similar conceptual architectures are offered by IBM, Microsoft and SAP

  14. Answering the Call: Why Isn’t Everyone “Rationalizing? Standardizing on a single Business Intelligence (BI) reporting and analysis solution is a good idea in theory . . . Companies can save money by standardizing but must plan for a long, slow migration that may not be practical. - Forrester

  15. Answering the Call: Why Isn’t Everyone “Rationalizing? Standardizing on a single Business Intelligence (BI) reporting and analysis solution is a good idea in theory . . . Companies can save money by standardizing but must plan for a long, slow migration that may not be practical. - Forrester Barriers to BI Rationalization • Cost to Migrate • Political Fiefdoms • Change Management / Training • Limited System Documentation • Audit of Objects to be Migrated • Upstream and Downstream Data Dependencies • End User Preferences

  16. Answering the Call: Why Isn’t Everyone “Rationalizing? Standardizing on a single Business Intelligence (BI) reporting and analysis solution is a good idea in theory . . . Companies can save money by standardizing but must plan for a long, slow migration that may not be practical. - Forrester We Need A Plan

  17. Answering the Call: Why Isn’t Everyone “Rationalizing? Standardizing on a single Business Intelligence (BI) reporting and analysis solution is a good idea in theory . . . Companies can save money by standardizing but must plan for a long, slow migration that may not be practical. - Forrester “This is not a plan”

  18. Answering the Call: Why Isn’t Everyone “Rationalizing? Standardizing on a single Business Intelligence (BI) reporting and analysis solution is a good idea in theory . . . Companies can save money by standardizing but must plan for a long, slow migration that may not be practical. - Forrester Methodology, Migration Tools, Report Conversion Utilities

  19. Answering the Call: Why Isn’t Everyone “Rationalizing? Standardizing on a single Business Intelligence (BI) reporting and analysis solution is a good idea in theory . . . Companies can save money by standardizing but must plan for a long, slow migration that may not be practical. - Forrester A proven methodology w/ accelerators that saves 30% - 50% versus manual efforts. TM Rolta Business Intelligence Exchange

  20. The Methodology – Approach Overview TM Data and Technology Assessment Road Map Development Cleansing Environment Conversion to Target Platforms • Utilities that automates migration of: • Queries • SQL • Reports • ETL Logic • Data Models • Business Rules • Interactivity • Universes TM

  21. The Methodology – Approach Overview TM Inception Elaboration Transition Transition Construction Iteration (X) Analyze & cleanse Convert & Build Plan Design Test Deploy Project Definition & Scope & Milestones Current Architecture Review Plan Parallel & System Testing Plan Deployment Design Logical Data Model Build Technical Infrastructure Deploy to Production Execute Parallel & Integration Testing Build Universe/ Data Model Design Output Templates Identify Redundancy and Commonality BI Assessment and Solution Framework Create Target Output from Conversion Design Data Mappings Conduct Training User Acceptance Testing Design Technical Architecture Stakeholder Identification Resource Plan Establish Test Strategy Plan Operations Support Report Creation Design Universe Presentation Layer Quality Assurance

  22. programmatically reads the BI metadata about each report object in the source system and translates that definition into the target platform’s report object. The Methodology: Report Metadata Transfer Utility OBIEE

  23. BI Rationalization: Cost Justification Using industry averages, the typical BI spend per 1000 user (500 reports) incurs the following cost structures:

  24. BI Rationalization: Cost Justification Using industry averages, the typical BI spend per 1000 user (500 reports) incurs the following cost structures: Estimated effort w/o utilizing migration tools and metadata utilities: 5000 hours / $850,000. …is an incremental spend of $150k ($850k-$700k). The BI Rationalization Project does not cost justify itself in the first year; but certainly would over time

  25. BI Rationalization: Cost Justification Using industry averages, the typical BI spend per 1000 user (500 reports) incurs the following cost structures: Using the approach, the platform is consolidated in 2,500 hours at a cost of $425,000. Saving your organization approximately $275k in the first year! Additional Savings realized over time.

  26. BI Rationalization: Cost Justification Using industry averages, the typical BI spend per 1000 user (500 reports) incurs the following cost structures: Using the approach, the platform is consolidated in 2,500 hours at a cost of $425,000.

  27. BI Rationalization: The Final Result • Transparency and reduction in Total Cost of Ownership (TCO) • Clearer ROI determination • Single view of company business • Foundation for BI COE • Tighter solution integration • Consolidation / Reuse of Business Logic (eliminates redundancy) • One vendor to “strangle” (I mean support your organization) Hardware costs Software Costs BI Functionality Support and Maintenance TCO BI Architecture & Scalability Data Architecture User Training Implementation Time/Effort

  28. BI Rationalization Success Stories • Business Challenge: • Dissatisfied with current BI software • Expiring maintenance contract; cost to increase by 135% • Four months to select vendor and convert existing environment • 500 users on legacy BI software • SOLUTION: • Developed requirements and assisted in vendor selection • Implemented new environment • Transitioned from Legacy to Target BI Platform • RESULT: • Automated conversion of 90% of reports within four months • Reduced annual cost by $435,000 and improved user satisfaction • Increased consistency and credibility of data • With cost savings Increased user base (licenses) by 20%

  29. BI Rationalization Success Stories Business Challenge: • Customer paying to support, maintain, and develop multiple BI reporting environments • Users unsure which system to leverage for various reporting needs • Concern about cost and time to consolidate to one BI environment SOLUTION: • Developed road map to reduce steep costs and user conversion by consolidating to one target BI Platform • Transitioned customer from three (3) platforms to one (1) RESULTS: • Completed client estimated 15-month engagement in 6 MONTHS • Consolidated 3500+ reports into 40 reports! • Cut software maintenance fees by $450,000 (by ending legacy support agreements) • Eliminated production and back up servers required for decommissioned environments • Reduced dedicated time of support and development staff to free up for new initiatives • Increased consistency and credibility of data • Eliminated “user confusion” making the lines of business more productive in a single environment

  30. Contact Information Vince Belanger BelangerV@TUSC.com (919) 676-5312 www.tusc.com

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