open source business intelligencedownload.101com.com/pub/tdwi/files/102407_webcast... ·...

Rajeev Rawat

BI Results, LLC

October 24, 2007

The Ins and Outs of

Open Source Business Intelligence

www.BIResults.com. Copyright © 2007, BI Results, LLC. All Rights Reserved

Expensive

Locked-in

Complex

Business Intelligence Expensive

Locked-in

Complex

Traditional

http://www.biresults.com/


Open

Source Open

Source

Dynamic

Innovative

Compelling

Dynamic

Innovative

Compelling

Business

Intelligence


www.BIResults.com. Copyright © 2007, BI Results, LLC. All Rights Reserved 4

Humor or Critical Thinking?



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



Generally Used DefinitionBusiness 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, enterprise-wide or local to one division, department, or project centrally initiated or driven by user demand


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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."



Business Process

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

Operations

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 lost sales

BI ExamplesBusiness Results

Integrated business rules and IT tools

Customer experience.

Loyalty

Business insights to enable action

Excel to compete.

Competitive advantage

Business Process

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

Operations

Logistics

Manuf. to Shipper

Shipper to Retail Warehouse

Warehouse to Retailer

Packaging, Promotion

Retailer to shelf profit plan (turns, customer, promos)

Turns

Sale, overstock, or lost sales

Business Results

Integrated business rules and IT tools

Customer experience.

Loyalty

Business insights to enable action

Excel to compete.

Competitive advantage

Systems Infrastructure

Connectivity

Manufacturer,

Shipper,

Retailer

POS systems,

Server,

Applications,

Networks,

Storage,

Compatibility for

analysis, reports,

triggers

Systems Infrastructure

Connectivity

Manufacturer,

Shipper,

Retailer

POS systems,

Server,

Applications,

Networks,

Storage,

Compatibility for

analysis, reports,

triggers



Typical BI Stack

Analysis sw accesses data for analysis and presents information insights for actions

Others…

Profile

Classify

Security

Authentication

Compatibility across the enterprise and collaborating systems

Data and data quality

Data formats and data models

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



BI Solutions Drive Train

L

o

a

d

Analytics Reporting

Repository

ODS

Transac-

tional

systems

Line of

business

systems

S

o

u

r

c

e

s

Data Warehouse



Drive Train Compatibility

L

o

a

d

Analytics Reporting

Data Warehouse

Repository

ODS

Transac-

tional

systems

Line of

business

systems

S

o

u

r

c

e

s

Ab Initio

Erwin

IBM

Informatica

Business

Objects

Cognos

MicroStrategy

SAP

IBM

MicroSoft

Oracle

SAP

Teradata

CRM

ERP

GL

S/DCM

CRM

ERP

GL

S/DCM

Dash-

boards

Dash-

boards

ReportsReports

Score-

cards

Score-

cards

Fair Isaac

MicroSoft

Oracle

SAP

SAS



Increase in business velocity is accelerating

event-driven approaches to operations

3 Days

8 Hours

30 minutes

20 minutes

3 Days

1 Day

1 Day

6 Weeks

1 Month

5 Days

45

10

05

30

30

05

15

24

1

3-1 days

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

Seconds

Minutes

Hours

Source Data from Donald Feinberg, V.P. and Distinguished Analyst, Gartner

From To



BI usage, a strategic advantage

Source: CIO Insight Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=3,00.asp



BI applied across the enterprise functions

Source: CIO Insight Oct 2007 Survey.

http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=5,00.asp



BI impact on performance is clear




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.



Essence of BI

Pervasive

Infrastructure integration

Across the enterprise applications

All users benefit

Precise decisions faster

Faster execution

Competitive requirement



Traditional vs. Open Source BI

Typical concerns of traditional BI users

Key differentiators of Open Source BI

Expensive

Locked-in

Complex

Expensive

Locked-in

Complex

Dynamic

Innovative

Compelling

Dynamic

Innovative

Compelling



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



Drive train connectivity,

a major BI issue




Key differentiators of

Open Source BI

Cost

Flexibility

Standards based solutions

Ease of adoption

Faster functionality updates

Best of breed functionality from user community



Open Source BI adoption is growing




Open Source BI: a compelling competitive forceGartner:

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 2010.

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.



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).



0

2

4

6

8

10Business Need

BI functionality

requirement

Risk profile

Skills match

Systems environment

Pricing

Vendor maturity

Solution maturity

Criteria for assessing Open

Source BI alternative

• Business need

• BI functions requirement

• Risk profile

• Skills match

• Systems environment

• Pricing

• Vendor maturity

• Solution maturity




Source BI alternativeBusiness Need

- Urgency- Sponsor- Users- Bottlenecks- Data sources- Data quality- Data owners- Business

needs

Risk Profile

- Financial- Operational- Performance- Skills gap

BI functionalityRequirement- 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




Source BI alternativeSkills match

- Business Users

- Systems Users- Current vendor

teams- New vendor

team

Pricing

- Licenses- Maintenance- Support- Transition costs- Upgrades- Renewals

Systemsenvironment

- Server and storage connectivity

- Data integration and interchange

- Application compatibility




Source BI alternativeVendor maturity

- Customer satisfaction

- Install base

- Requirements gathering process

- Reference accounts

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

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



Consolidate Assessment for business and

systems convergence, consensus

Criteria

Urgency

Sponsors

Users

Bottlenecks

Sources

Data Quality

Data Owners

Computations

Integration

Reporting

Time

Risk: Fin

Risk: Oper.

Risk: Transac

Business BI functionality Risk Skills Systems Pricing Vendor SolutionNeed requirement profile match environ maturity maturity

0

2

4

6

8

10Business Need

BI functionality

requirement

Risk profile

Skills match

Systems environment

Pricing

Vendor maturity

Solution maturity

Shared



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?



Open Source BI: You’re on the ball!

YOUWE’VE FOUND THREE WAYS TO LEVERAGE OPEN SOURCE -

Criteria I II IIIROI PaybackSavingsScheduleRisk



Open Source BI: You have a plan



You can keep

your job



Open Source BI: Lead the change



You can keep

your job

For

now…



Open Source Business

IntelligenceOpen 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.

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


Customer Examples

Lance Walter, VP Marketing

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

http://sourceforge.net/potm/potm-2006-10.php

http://www.redherring.com/article.aspx?a=18126

http://www.intelligententerprise.com/showArticle.jhtml?articleID=190700107

http://www.pentaho.org/index.php?option=com_content&task=view&id=139&Itemid=238

http://code.google.com/

Pentaho Subscription: Minimizing Risk in BI

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

Pentaho BI Platform at OrbitzOrbitz, 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.)

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

Pentaho Reporting at Terra Industries (NYSE: TRA)

$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

“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.”

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

Pentaho Analysis at Frontier Airlines (NASD: FRNT)Frontier Airlines

Key Challenges

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

“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.”

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 web-services

JDBC 2.0 compliant

Pentaho Dashboards at Boyne ResortsNorth 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

“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..”

http://www.boyne.com/

Boyne Resorts Application Example

NOTE: Data and Image have been modified to protect confidential info.

Color-coded

pins

User-defined

thresholds

Breakdown of

stays by

resort in

selected city

Full list of cities and

total stays (#

removed)

“Zoom in”

gauge

showing

visits / city

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


Rich Feature Set

Enterprise-class performance and

scalability

Broad Database Support

100% Meta-data Driven

Graphical, model-driven design

Mature, 4th generation product

Pentaho Data Integration at ZipRealty (NASD: ZIPR)

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


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

“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.”

http://www.ziprealty.com/

50

Questions??

51

Contact Information

• If you have further questions or comments:

Rajeev Rawat, BI [email protected]

Lance Walter, [email protected]

mailto:[email protected]

mailto:[email protected]

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