BI Rationalization Reduce Risk, Trim Costs and Improve Your Decision-Making Ability Presented By: Vincent Belanger Partner, BI & Data Mgmt. Rolta-TUSC

BI RationalizationBI RationalizationReduce Risk, Trim Costs and

Improve Your Decision-Making Ability

Presented By: Vincent Belanger Partner, BI & Data Mgmt. Rolta-TUSC 919-676-5312 [email protected]

Slide 2 / BI Rationalization

Presentation AgendaPresentation 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


Current State of BI: Current State of BI: A Business ImperativeA Business Imperative

Base: 82 IT decision-makers(percentages do not total 100 because of rounding)

“How widespread is your organization’s adoption of BI, Data Warehousing, and Data Integration initiatives?”

Source: August 2008 Global BI And Data Management Online Survey


0%

10%

20%

30%

40%

50%

60%

0 1 to 2 3 to 5 6 to 9 10+ Don't know

My department Enterprise

Source: August 2008 Global BI And Data Management Online Survey

Base: 82 IT decision-makers

Current State of BI:Current State of BI: A Business Imperative A Business Imperative“How many different BI products do you have in your

department; across the entire enterprise?”


Current State of BI:Current State of BI: A Business ImperativeA 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


Current State of BI:Current State of BI: The Evolution. What The Evolution. What Happened?Happened?

Sales & Marketing

DW/BI TOOL


BI Tool 2

BI Tool 2

Sales & Marketing

Finance

Current State of BI: Current State of BI: The Evolution. What The Evolution. What Happened?Happened?


Custom Built

Reporting Solution

BI Tool 2

Data Warehouse

BI Tool 1

BI Tool 3

Multiple BI Tools Disparate SystemsData WarehouseBusiness Units

Finance

Sales & Marketing

Customer Service

Operations


“The Road to Hell is paved with good intentions” – Samuel Johnson


Custom Built

Reporting Solution

BI Tool 2

Data Warehouse

BI Tool 1

BI Tool 3

Multiple BI ToolsData WarehouseBusiness Units On-going System Cost

$1,650,000

$2,300,000

$1,850,000

$2,100,000

Total Cost: $7,900,000


“The cost of living in Hell is expensive” – Mike Cochran

Finance

Sales & Marketing

Customer Service

Operations


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”



Historically companies had to purchase multiple tools to meet information delivery needs.

ETLData Warehouse

Database AnalyticsOLAPReporting Data miningDashboards

Product 1Product 1

Product 2Product 2

Product 4Product 4

Product 3Product 3

Prod. 2 Prod. 2

Product 5Product 5

Current State of BI:Current State of BI: Why Did It Happen Why Did It Happen


Historically companies had to purchase multiple tools to meet information delivery needs.

ETLData Warehouse

Database AnalyticsOLAPReporting Data miningDashboards

Current State of BI:Current State of BI: Why Did It Happen Why Did It Happen

Oracle / SAP / Cognos / MicrosoftOracle / SAP / Cognos / Microsoft

Solutions have evolved…

Oracle acquires Hyperion…SAP acquires Business Objects…

Business Objects acquires Crystal…

Oracle acquires Siebel…

Microsoft acquires ProClarity…IBM acquires Cognos…


OLTP & ODSSystems

DataWarehouseData Mart

SAP, OraclePeopleSoft, Siebel,

Custom Apps

FilesExcelXML

BusinessProcess

Financial Performance Management Applications

InsightPerformance

Action

SetGoals

Plan

Monitor

Analyze

Report

Align

HyperionEssbase

Oracle BI Server

Common Enterprise Information Model

Reporting & Publishing

Financial ReportingBI Publisher

Interactive Reporting

SQR Production Reporting

Web Analysis

Ad hoc Analysis

ProactiveDetectionand Alerts

Microsoft Office

Interactive Dashboards

Answering the Call: Answering the Call: BI Vendors RespondBI Vendors Respond

* Similar conceptual architectures are offered by IBM, Microsoft and SAP


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

Answering the Call: Answering the Call: Why Isn’t Everyone Why Isn’t Everyone “Rationalizing?“Rationalizing?



- 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



- Forrester

We Need A Plan




- Forrester

“This is not a plan”




- Forrester

Methodology, Migration Tools,

Report Conversion Utilities




- Forrester

Rolta Business Intelligence Exchange

A proven methodology w/ accelerators that saves 30% - 50% versus manual efforts.

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

The Methodology – Approach The Methodology – Approach Overview Overview

TM


Transition

Inception Iteration (X) Elaboration Construction Transition

Plan Analyze & cleanse

Design

Convert & Build

Test Deploy

Project Definition & Scope & Milestones

BI Assessment and Solution Framework

Current Architecture Review

Identify Redundancy and Commonality

Design Logical Data Model

Design Output Templates

Design Data Mappings

Design Technical Architecture

Design Universe Presentation Layer

Build Technical Infrastructure

Create Target Output from Conversion

Report Creation

Plan Parallel & System Testing

Execute Parallel & Integration Testing

User Acceptance Testing

Plan Deployment

Deploy to Production

Conduct Training

Plan Operations Support

Build Universe/ Data Model

Establish Test Strategy

Stakeholder Identification

Resource Plan

Quality Assurance

The Methodology – Approach The Methodology – Approach Overview Overview

TM


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: The Methodology: Report Metadata Report Metadata Transfer UtilityTransfer Utility

OBIEE

http://www.google.com/imgres?imgurl=http://www.lucidera.com/blog/wp-content/uploads/2008/05/cognos_logo.gif&imgrefurl=http://www.lucidera.com/blog/index.php/2008/05/07/ashe-on-saas/&h=71&w=300&sz=2&tbnid=0XlOCxMj_CFxcM::&tbnh=27&tbnw=116&prev=/images%3Fq%3Dcognos%2Blogo&usg=__Kpru83gh52VclAw32GI_asBVcBw=&sa=X&oi=image_result&resnum=3&ct=image&cd=1


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

Cost Classification

Cost Estimate

SW Support & Maint. (based on 500k/20%)

$100,000

Hardware/Shared Services Costs

$300,000

Internal Dev. and Support Resources: Avg.3-5

$300,00

Total: $700,000

BI Rationalization: BI Rationalization: Cost JustificationCost Justification



Cost Classification

Cost Estimate


$100,000


$300,000


$300,00

Total: $700,000


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



Using the approach, the platform is consolidated in 2,500 hours at a cost of $425,000.

Cost Classification

Cost Estimate


$100,000


$300,000


$300,00

Total: $700,000

Saving your organization approximately $275k in the first year! Additional Savings realized over time.




Based on a 500 Report BI Solution

Manual

Process

rBix Methodology w/ Accelerators

Estimated Time 5000 Hours 2500 Hours

Estimated Cost $850,000 $425,000

Cost Classification

Cost Estimate


$100,000


$300,000


$300,00

Total: $700,000


Using the approach, the platform is consolidated in 2,500 hours at a cost of $425,000.


Hardware costs

BI Architecture & Scalability

BI Functionality

Software Costs

Implementation Time/Effort

Data Architecture

User Training

Support and Maintenance

TCO

• 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)

BI Rationalization: BI Rationalization: The Final ResultThe Final Result


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%

BI Rationalization Success StoriesBI 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

BI Rationalization Success StoriesBI Rationalization Success Stories


Contact InformationVince [email protected](919) 676-5312www.tusc.com

mailto:[email protected]

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BI Rationalization Reduce Risk, Trim Costs and Improve Your Decision-Making Ability Presented By: Vincent Belanger Partner, BI & Data Mgmt. Rolta-TUSC