assessing your bi maturity

Wayne EckersonDirector, TDWI Research

Assessing Your BI Maturity

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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

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BI Maturity Model Adoption Curve

Business Value Semantic Integration Data Consolidation

1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage

GULF CHASM

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Architectural Dimension

Business Value Semantic Integration Data Consolidation

1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage

GULF CHASM“Operational Reporting”

“Spreadmarts”

“Data Marts”

“Data Warehouses”

“Enterprise DW”

“BI Services”

% o

f com

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age

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Scope Dimension

Business Value Semantic Integration Data Consolidation

1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage

GULF CHASM“System”

“Individual”

Department “Business Unit”

“Enterprise”

“Extended Enterprise”

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Business Purpose Dimension

Business Value Semantic Integration Data Consolidation

1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage

GULF CHASM

“Cost Center”

“Informs Executives”

“Empowers Workers”

“Monitors Performance”

“Drives the Business”

“Drives the Market”

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Adoption Rates

Business Value Semantic Integration Data Consolidation

1. Prenatal Infant 2. Child 3. Teenager 4. Adult 5. Sage

GULF CHASM

“Cost Center”

“Informs Executives”

“Empowers Workers”

“Monitors Performance”

“Drives the Business”

“Drives the Market”

1%6.5%

26% 42%

21% 3%.5%

TDWI Benchmark Assessment Survey, 2007, Based on 1813 Respondents

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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”– Analytic silos, IT shadow systems

1. Prenatal Infant

GULF

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The Gulf - Symptoms• Executive perceptions• Sponsorship and funding• Data quality• Project scope• Spreadmarts

Spreadmart CostsTDWI 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!

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Five Remedies 1.Communicate 2.Convert3.Coerce4.Coexist5.Co-opt

You must apply all techniques to succeed!

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The Enlightenment ForkExecutive 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”

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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!

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Strategic Value and ROI

Operational Reporting

Spreadmarts Data MartsData

WarehousesEnterprise

DWArchitecture

Financial System

Executive System

Analytical System

Monitoring System

Strategic System

Business Service

Type of System

“Drive theBusiness”

“Drive the Market”

“Monitor Performance”

“Empower Workers”

“Inform Executives”

“Cost Center”Executive

Perception

Value

Cost

ROI

Infant Child AdultTeenager Sage

Static Reports Spreadsheets OLAP/ Ad hoc Reports

DashboardsAnalytical Tools

Scorecards/ Analytics

Customer BI Embedded BI

Prenatal

ROI

BI Services

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Child-Teenager Stages• Overall trend

– Greater data consolidation– More semantic consistency– “Interactive” reporting– Performance monitoring– Nightly feeds to DW– Governance evolves

• Project to program mgmt2. Child 3. Teenager

“Data Marts”

“Data Warehouses”

CHASM

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Chasm - Challenges• Business volatility • Reconciling metrics• Delivering the last mile• Tactical to strategic• Pervasive BI

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University of Illinois

Information Architecture

Data Architecture

Technical Architecture

Business Development

Linear development

BeforeGroups Aligned with DW Processes

Problems:-Backlog of projects-Reduced funding-Vulnerable staff

Gather Requirements Data modeling/ETL Physical models/metadata

Training/support/ outreach

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Collaborative – Iterative – Responsive

Aligned with the Business

Data Management

Data Acquisition

Infrastructure Improvement

Environment Management

BI SolutionsCustomer

Service

Information Architecture

Marketing & OutreachOrganizational

Development

University Strategic Objectives

After

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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

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Adult and Sage Stages

4. Adult 5. Sage

“Enterprise DW”

“BI Services”

• Overall trends– Consistent semantics & metrics– Unified, flexible architecture– Business/IT alliance– Pervasive BI– High business value

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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

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Analytic PurposeInfant Child AdultTeenager Sage

What happened?

What should happen?

Why did it happen?

What is happening?

What will happen?

What can we offer?

BI Focus

Prenatal

Static Reports

Scenarios/ Plans

Interactive Reports Dashboards/

AlertsPred. Models/ Strategy Maps

Rules/TriggersBI Output

Monthly Weekly Daily Right-time Real-timeData Capture Right-time

Decision Latency

Data Freshness

DecisionAutomation

Actionable Information

UnderstandingAwareness

Insights Action

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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

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Harmonize local & enterprise needsInfant Child AdultTeenager Sage

Operational Reporting Spreadmarts Data Marts Data

WarehousesEnterprise

DW BI ServicesArchitecture

Enterprise Individual Department Division Enterprise Inter-EnterpriseScope

Enterprise Standards

Flexibility/ Standards

Local control

“Plan GlobalAct Local”

“Negotiate & Consolidate”

“Think Local, Resist Global”

IT Executive BI Project Mgr BI Program Mgr Steering Committees

Governance

IT Executive Dept. Budget Div. Budget Corporate Corporate Funding

IT Analyst Dept. IT Div. IT Corp. ITTeam

Prenatal

BICC

“Plan GlobalAct Global”

Steering Committees

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Centralized Organization

Federation – Where Draw the Line?

DW Models ETL Data Marts BI Layer Reports

Corporate BI Business Unit BI

DW Models ETL Data Marts BI Layer ReportsDecentralized Organization

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1990sLocal data warehouses, spreadmarts in each BU

2000-2007Fully centralized enterprise data warehouses

BU Sandboxes at Intuit

BU 1

DataWhs 1

BU 2 BU 3 BU 4

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

Enterprise DWs

Reports

BU 1 BU 2 BU 3 BU 4

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

SpreadMart 1

ReportsReportsReports

SpreadMart 2

DataWhs 2

Reports Reports Reports Reports

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2008+Enterprise DW foundation with

context-specific flexibility

Intuit’s BI Evolution• 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 DW

DW FoundationODS tables, shared dimensions

BU-owned Data MartsBU-specific data, filters, biz rules

BU 1 BU 2 BU 3 BU 4

Reports Reports Reports Reports

EntDM 1

EntDM 1

BUDM 1

BUDM 1

BUDM 1

EnterpriseData Marts

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Summary• BI is a journey• You’ll hit bumps along the way

–Gulf and Chasm• Adhere to best practices