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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”
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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
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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