why bi projects fail

COPYRIGHT © 2008, BUSINESS OBJECTS S.A.

WHY BUSINESS INTELLIGENCE PROJECTS FAIL AND WHAT TO DO ABOUT ITTimo Elliott, Business Objects

COPYRIGHT © 2008 BUSINESS OBJECTS S.A.

AGENDA

Introduction1. Changing the Business2. People, Not Technology3. Process, Not Project4. Value, Not Cost5. Insight, Not Data6. Flexible Pragmatism, Not Rigid ProcessesConclusionQ&A


INTRODUCTION


GOAL OF THIS PRESENTATION


SELECTED REFERENCES

“Competing on Analytics” by Thomas Davenport“Successful Business Intelligence: Secrets to Making BI a Killer App” by Cindi Howson“Business Intelligence Competency Centers: A Team Approach to Maximizing Competitive Advantage” by Gloria J. Miller, Dagmar Brautigam, Stefanie V. Gerlach

“Business Intelligence: The Savvy Manager's Guide” by David Loshin“Maximizing Return on Business Intelligence Investments”, Jefferson Lynch, Tuesday, 3pm, Hall 4.1 Room B“Enterprise Performance Visibility in AstraZeneca”, Jon Hill, Wed, 12pm, Hall 4.1 Room E

http://www.amazon.com/gp/reader/0071498516/ref=sib_dp_pt#reader-link

http://www.amazon.com/gp/reader/1422103323/ref=sib_dp_pt#reader-link


High performing companies are 50% more likely to use analytic information strategically

33%

23%

77%

40%

36%

65%

8%

23%

Have significant decision- support/analytical capabilities

Value Analytical insights to a very large extent

Have above average analytical capability within industry

Use analytics across their entire organization

Source: Competing on Analytics, Thomas Davenport

COMPETITIVE EDGE IS GAINED WITH ANALYTICS

Low Performers

High Performers


Business Intelligence Applications

Enterprise Applications (ERP, SCM and CRM)

Server and Storage Technologies (Virtualization)

Legacy Application Modernization

Security Technologies

Technical Infrastructure

Networking, Voice and Data Communications (VoIP)

Collaboration Technologies

Document Management

Service-Oriented Technologies (SOA and SOBA)

BUSINESS INTELLIGENCE IS THE MOST IMPORTANT IT PRIORITY

** New question for 2007

To what extent will each of the following technologies be a Top 5 priority for you in 2008?

11.20%

8.02%

8.45%

5.79%

8.53%

4.67%

6.83%

7.75%

7.91%

6.71%

2008Increase*

1

2

3

4

5

6

7

8

9

10

Rank2008

1

2

5

3

6

8

4

10

9

7

Rank2007

1

**

9

10

2

12

8

4

**

6

Rank2006

Source: 2008 Gartner Executive Programs CIO Survey, January 10, 2008

Gartner 2008 CIO Technology Priorities

* Unweighted average budget change


IT UNDERESTIMATES USER DIFFICULTIES…

Base: 406 U.S. IT Executives, 675 Business ExecutivesSource: BusinessWeek Research Services

Difficult to find information

0%

10%

20%

30%

40%

50%

60%

IT0%

10%

20%

30%

40%

50%

60%

IT

Just the right amount of information is available

32%

24%

Executives Executives

22%

55%

(credibility) gap


…AND UNDERESTIMATES VALUE OF BI TO THE BUSINESS

0%

10%

20%

30%

40%

50%

60%

70%

80%

Failure ModeratelySuccessful

VerySuccessful

0%

10%

20%

30%

40%

50%

60%

70%

80%

Not at All Somewhat Significantly

How successful do you consider your BI deployment?

How much has BI contributed to your company’s performance?

The percentage of business users seeing the business impact as significant is 15% higher than the percentage of IT professionals saying the impact on company performance has been significant

Business gap


CHANGING THE BUSINESS


AIM HIGH

Not “implement software”Not “keep the business happy”Aim to transform the way the business worksPaint the vision


FOLLOW THE MONEY

Track information to its final destination in any systemWhy is it being usedWhat might change as a result


AIM FOR 100% DEPLOYMENT

Target all uses and users“To be successful with BI, you need to be thinking about deploying it to 100% of your employees as well as beyond organizational boundaries to customers and suppliers” — Cindi Howson

0%

10%

20%

30%

40%

50%

60%


Very Successful

Perceived PotentialCurrent %

Source: Successful Business Intelligence, Cindi Howson


PEOPLE, NOT TECHNOLOGY


PEOPLE SKILLS MAKE OR BREAK BI PROJECTS

Investment Historical Determinant of Success

People 2% 20%Process 2% 15%

Organization 2% 10%

Culture 1% 20%

Leadership 1% 10%

Data 10% 15%

Technology 82% 10%

75% of success determined by things OTHER than data and technology


IT / BUSINESS RELATIONSHIP

Trust and respect

Business Person Archetype IT Professional Archetype

Extrovert Introvert

Sociable Solitary

Freewheeling Methodical, systematic, disciplined

Risk-taking Risk-averse

Prefers face-to-face meeting Minimal face-to-face communication, email and instant messaging is fine


TOUGH LOVE

“I tried being reasonable — I didn’t like it”

Dirty Harry


CHOOSE YOUR USERS CAREFULLY


USER ADOPTION


COMMON USER ADOPTION ISSUES

Training for ITTraining on dataContinued trainingBest practiceCultureExpectation settingEase of use

Even if an application is intuitive enough to be usable without instruction, any related process or culture changes should be driven home with at least a quick tutorial.

“What dooms IT projects” August 31, 2005


CONGRATULATIONS, YOU’RE IN MARKETING

EvangelizePromote early, promote oftenName the systemFind successes, keep explaining the valueHighly visible dashboardsInternal seminarsNewslettersTrophies for best projects


EVANGELIZING


STORIES ARE GOOD FOR BUSINESS


KNOW THYSELF


INFORMATION CULTURE

0%10%20%30%40%50%60%70%80%90%


Very Successful

Gut-FeelFact-Based

Source: Successful Business Intelligence — Cindi Howson


PROCESS, NOT PROJECT


BI PROJECT MANGEMENT

http://upload.wikimedia.org/wikipedia/commons/b/bb/Opening_Ceremony_Plate_Spinning.jpg


BI METHODOLOGY

IT

Business


ALIGN WITH BUSINESS PROCESSES

TriageAssessmentand Entry

PatientRegistration

Patient Status and Room Assigned

Nurse Exam Indicator Changed

Physician Examines

Patient

Physician Note

Created

Labs and/orX-rays areOrdered

Lab Report(s)Returned via

EDIM

Physician Note Completed

Prescription(s) Written

Patient Referred for

Follow-up Care

DischargeInstructions

Created

Electronic Chart

is Completed

History File is

Created

Patient Arrives

Physician Consults with

Patient

Patient Discharged

Patient Leaves ED

EDIM Reports Created/Printed


APPLICATIONS


BI COMPETENCY CENTER

Store, maintain, integrate dataImplement changes

Summarize and analyzeDiscover and explore

Link to corporate strategyAlter processesPrioritize and set expectations

Gather requirementsEvangelizeMonitor satisfaction

Interpret resultsDevelop alternatives

Identify dataExtract dataValidate data Engineering skills

Analysis skills Relationship skills

Leadership skills


ORGANIZATION ISSUES: INCENTIVES AND VALUE

Tragedy of the commonsInternal pricing


BICC

Business Users

BICC REPORT CARD

Active usageSatisfactionNew requestsStandard reportsApplicationsServiceTime


VALUE, NOT COST


WHAT’S THE ROI?


ROI IS HARD TO KNOW IN ADVANCE

“One of the key contributors to poor IT investment performance is an unbalanced approach taken by executives at the project approval stage. Too often, the overriding emphasis is on quick payback or demands for the return on investment (ROI) to be demonstrated in financial terms.”

Gartner, “Total Value of Opportunity — The Real

Measure for BI”


BUSINESS PEOPLE HAVE SHORT MEMORIES


MISSION-CRITICAL


FINDING VALUE

4% Technology-related benefits

42% Productivity-related benefits

54% Business process

enhancements

Previous projects

Speed of business

Minimizing risk


ALIGN WITH THE GOALS OF THE ORGANIZATION

Link BI goals to what executives care about

Source: Accenture


SALES TECHNIQUES

Techniques for understanding executive needsProviding answers to problems, not technology infrastructuresGetting your projects to “top of mind”


TURN INFORMATION INTO A PROFIT CENTER

“Our extranet produced $60M in incremental sales in the first year.”

Don Stoller; Owens & Minor


PROFITABILITY: A FOUNDATION FOR STRATEGIC BI

“I don’t care about profitability”


PLAY ON DOUBT

Start asking questions about the numbers that drive the business“You don’t know?!”


INSIGHT, NOT DATA

101011011101001011101011010111010110101011001011010101

101011011101001011101011010111010110101011001011010101

101011011101001011101011010111010110101011001011010101

101011011101001011101011010111010110101011001011010101


DATA INTEGRATION

“This is the aspect that most businesses underestimate drastically — often by 100 percent or more.”

Gartner


LACK OF TRUST

43% of users say they’re not sure if internal information is accurate77% said bad decisions had been made because of lack of information5 out of 4 people don’t believe statistics in presentations

Business Week study, 2005

People don’t trust their systems


DATA QUALITY


DATA PROFILING

“buy a profiling tool — it’s not that expensive” — Andy Bitterer, Gartner


JUSTIFYING DATA QUALITY

Call it Data GovernanceRisk, Productivity

Time Spent on Data Quality

5% 6% 6%10%

15%12%

9%

36%

1 ho

ur

2 ho

urs

3-4

hour

s

5 ho

urs

6-10

hou

rs

11-2

0 ho

urs

21+

hour

s

Not

Sur

e

Source: Harris Interactive Poll


DATA LINEAGE


FLEXIBLE PRAGMATISM, NOT RIGID PROCESSES

“No plan survives first contact with the enemy”


FINDING AN EXECUTIVE SPONSOR

Track record of IT successEvangelismCompany goalsHis / her career

Likely that sponsor will change: build broad base of support

Why Should I Care?


STAYING ZEN

Getting the time and moneyDo “less”Keep it simpleClean upBICC efficienciesIT dashboardsStandardizeSOA / Web ServicesSaaS


STANDARDIZATION CALCULATOR


SUCCEEDING DESPITE ADVERSITY

Keep the project up to speedStructure the project into smaller onesEnsure alignment at all timesAdmit problems fastStick with it!


CONCLUSION


CONCLUSION

BI is not (only) aboutTechnologyProjectsCostDataPlans


Q&A

QuestionsTimo Elliott, Senior Director Strategic Marketing, Business ObjectsI will repeat questions to ensure everyone can hear

Contact informationEmail: [email protected] Questions Blog: www.timoelliott.com/blog

mailto:[email protected]

http://www.timoelliott.com/blog


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