Why BI Projects Fail

WHY BUSINESS INTELLIGENCE PROJECTS FAIL AND WHAT TO DO ABOUT IT
Timo Elliott, Business Objects
COPYRIGHT 2008, BUSINESS OBJECTS S.A.
AGENDA
Introduction 1. Changing the Business 2. People, Not Technology 3. Process, Not Project 4. Value, Not Cost 5. Insight, Not Data 6. Flexible Pragmatism, Not Rigid Processes Conclusion Q&A
SLIDE 3
COPYRIGHT 2008 BUSINESS OBJECTS S.A.
INTRODUCTION
SLIDE 4
GOAL OF THIS PRESENTATION
SLIDE 5
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
SLIDE 6 COPYRIGHT 2008 BUSINESS OBJECTS S.A.
COMPETITIVE EDGE IS GAINED WITH ANALYTICS

High performing companies are 50% more likely to use analytic information strategically
Have significant decisionsupport/analytical capabilities
65% 23%
Value Analytical insights to a very large extent
36% 8%
Have above average analytical capability within industry
77% 33%
Use analytics across their entire organization

Source: Competing on Analytics, Thomas Davenport
SLIDE 7
40% 23%
High Performers Low Performers
BUSINESS INTELLIGENCE IS THE MOST IMPORTANT IT PRIORITY

Gartner 2008 CIO Technology Priorities
To what extent will each of the following technologies be a Top 5 priority for you in 2008? Rank 2008 Rank Rank 2008 2007 2006 Increase*
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)
Source: 2008 Gartner Executive Programs CIO Survey, January 10, 2008
SLIDE 8
1 2 3 4 5 6 7 8 9 10
1 2 5 3 6 8 4 10 9 7
1 ** 9 10 2 12 8 4 ** 6
11.20% 8.02% 8.45% 5.79% 8.53% 4.67% 6.83% 7.75% 7.91% 6.71%
* Unweighted average budget change ** New question for 2007

IT UNDERESTIMATES USER DIFFICULTIES

Difficult to find information
60%
Just the right amount of information is available

60%
55%
50%
50%
40%
40%
32%
30% 30%
24%
20% 20%
22%
10%
10%
0%
0%
Executives
IT
Executives
IT
Base: 406 U.S. IT Executives, 675 Business Executives Source: BusinessWeek Research Services
(credibility) gap
SLIDE 9
AND UNDERESTIMATES VALUE OF BI TO THE BUSINESS

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
How successful do you consider your BI deployment? How much has BI contributed to your companys performance?
80% 70% 60%
80% 70% 60% 50% 40% 30% 20% 10% 0%
Business gap
50% 40% 30% 20% 10% 0%
Failure
SLIDE 10
Moderately Successful
Very Successful
Not at All
Somewhat
Significantly
CHANGING THE BUSINESS
SLIDE 11
AIM HIGH
Not implement software Not keep the business happy Aim to transform the way the business works Paint the vision
SLIDE 12
FOLLOW THE MONEY

Track information to its final destination in any system Why is it being used What might change as a result
SLIDE 13
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
60% 50% 40% 30% 20% 10% 0% Failure Moderately Successful Very Successful Perceived Potential Current %
Source: Successful Business Intelligence, Cindi Howson

PEOPLE, NOT TECHNOLOGY
SLIDE 15
PEOPLE SKILLS MAKE OR BREAK BI PROJECTS

75% of success determined by things OTHER than data and technology
Investment Historical Determinant of Success
People
Process Organization Culture Leadership Data Technology
2%
2% 2% 1% 1% 10% 82%
20%
15% 10% 20% 10% 15% 10%
SLIDE 16
IT / BUSINESS RELATIONSHIP
Business Person Archetype Extrovert Sociable Freewheeling Risk-taking Prefers face-to-face meeting
IT Professional Archetype Introvert Solitary Methodical, systematic, disciplined Risk-averse Minimal face-to-face communication, email and instant messaging is fine
Trust and respect

TOUGH LOVE
I tried being reasonable I didnt like it

Dirty Harry
SLIDE 18
CHOOSE YOUR USERS CAREFULLY
SLIDE 19
USER ADOPTION
SLIDE 20
COMMON USER ADOPTION ISSUES

Training for IT Training on data Continued training Best practice Culture Expectation setting Ease 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
SLIDE 21
CONGRATULATIONS, YOURE IN MARKETING

Evangelize
Promote early, promote often Name the system Find successes, keep explaining the value Highly visible dashboards Internal seminars Newsletters Trophies for best projects
SLIDE 22
EVANGELIZING
SLIDE 23
EVANGELIZING
SLIDE 24
STORIES ARE GOOD FOR BUSINESS
SLIDE 25
KNOW THYSELF
SLIDE 26
INFORMATION CULTURE
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Failure
SLIDE 27
Gut-Feel Fact-Based
Moderately Successful
Very Successful
Source: Successful Business Intelligence Cindi Howson
PROCESS, NOT PROJECT
SLIDE 28
BI PROJECT MANGEMENT
SLIDE 29
BI METHODOLOGY
IT Business
SLIDE 30
ALIGN WITH BUSINESS PROCESSES

Triage Assessment and Entry Patient Status and Room Assigned Nurse Exam Indicator Changed
Patient Arrives
Patient Registration
Physician Examines Patient
Physician Note Created
Labs and/or X-rays are Ordered
Lab Report(s) Returned via EDIM
Physician Consults with Patient
Physician Note Completed
Prescription(s) Written
Patient Referred for Follow-up Care
Discharge Instructions Created
Patient Discharged
Patient Leaves ED
Electronic Chart is Completed
History File is Created
EDIM Reports Created/ Printed
SLIDE 31
APPLICATIONS
SLIDE 32
BI COMPETENCY CENTER
Leadership skills
Link to corporate strategy Alter processes Prioritize and set expectations
Analysis skills
Summarize and analyze Discover and explore Identify data Extract data Validate data
Relationship skills
Gather requirements Evangelize Monitor satisfaction Interpret results Develop alternatives
Engineering skills
Store, maintain, integrate data Implement changes

ORGANIZATION ISSUES: INCENTIVES AND VALUE

Tragedy of the commons Internal pricing
SLIDE 34
BICC REPORT CARD

Active usage Satisfaction New requests Standard reports Applications Service Time
e rs C BIC ess Us in Bus
SLIDE 35
VALUE, NOT COST
SLIDE 36
WHATS THE ROI?
SLIDE 37
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
SLIDE 38
BUSINESS PEOPLE HAVE SHORT MEMORIES
SLIDE 39
MISSION-CRITICAL
SLIDE 40
FINDING VALUE
4% Technologyrelated benefits 54% Business process enhancements
Previous projects
42% Productivityrelated benefits
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 needs Providing answers to problems, not technology infrastructures Getting your projects to top of mind
SLIDE 43
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 dont care about profitability
SLIDE 45
PLAY ON DOUBT
Start asking questions about the numbers that drive the business You dont know?!
SLIDE 46
INSIGHT, NOT DATA
101011011101001011101011010111010110101011001011010101
101011011101001011101011010111010110101011001011010101
101011011101001011101011010111010110101011001011010101
101011011101001011101011010111010110101011001011010101
SLIDE 47
DATA INTEGRATION
This is the aspect that most businesses underestimate drastically often by 100 percent or more. Gartner
LACK OF TRUST
People dont trust their systems

43% of users say theyre not sure if internal information is accurate 77% said bad decisions had been made because of lack of information 5 out of 4 people dont believe statistics in presentations
Business Week study, 2005
SLIDE 49
DATA QUALITY
SLIDE 50
DATA PROFILING
buy a profiling tool its not that expensive Andy Bitterer, Gartner
SLIDE 51
JUSTIFYING DATA QUALITY

Call it Data Governance Risk, Productivity
36%
Time Spent on Data Quality

15% 10% 5%
1 hour
12%
6%
2 hours
6%
5 hours 3-4 hours 6-10 hours 11-20 hours
9%
21+ hours
Source: Harris Interactive Poll

SLIDE 52
Not Sure
DATA LINEAGE
SLIDE 53
FLEXIBLE PRAGMATISM, NOT RIGID PROCESSES
No plan survives first contact with the enemy
SLIDE 54
FINDING AN EXECUTIVE SPONSOR

Why Should I Care?
Track record of IT success Evangelism Company goals His / her career Likely that sponsor will change: build broad base of support
STAYING ZEN
Getting the time and money
Do less Keep it simple Clean up BICC efficiencies IT dashboards Standardize SOA / Web Services SaaS
SLIDE 56
STANDARDIZATION CALCULATOR
SLIDE 57
SUCCEEDING DESPITE ADVERSITY

Keep the project up to speed Structure the project into smaller ones Ensure alignment at all times Admit problems fast Stick with it!
SLIDE 58
CONCLUSION
SLIDE 59
CONCLUSION
BI is not (only) about
Technology Projects Cost Data Plans
SLIDE 60
Q&A
Questions
Timo Elliott, Senior Director Strategic Marketing, Business Objects I will repeat questions to ensure everyone can hear
Contact information
Email: timo.elliott@businessobjects.com BI Questions Blog: www.timoelliott.com/blog
SLIDE 61
Copyright 2008 Business Objects SA. All rights reserved.

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WHY BUSINESS INTELLIGENCE PROJECTS FAIL AND WHAT TO DO ABOUT IT

Timo Elliott, Business Objects

COPYRIGHT 2008, BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

GOAL OF THIS PRESENTATION

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COMPETITIVE EDGE IS GAINED WITH ANALYTICS

Value Analytical insights to a very large extent

Have above average analytical capability within industry

Use analytics across their entire organization

High Performers Low Performers

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

BUSINESS INTELLIGENCE IS THE MOST IMPORTANT IT PRIORITY

* Unweighted average budget change ** New question for 2007

IT UNDERESTIMATES USER DIFFICULTIES

Just the right amount of information is available

AND UNDERESTIMATES VALUE OF BI TO THE BUSINESS

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

50% 40% 30% 20% 10% 0%

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

CHANGING THE BUSINESS

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

FOLLOW THE MONEY

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

AIM FOR 100% DEPLOYMENT

Source: Successful Business Intelligence, Cindi Howson

PEOPLE, NOT TECHNOLOGY

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

PEOPLE SKILLS MAKE OR BREAK BI PROJECTS

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

Trust and respect

I tried being reasonable I didnt like it

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

CHOOSE YOUR USERS CAREFULLY

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COMMON USER ADOPTION ISSUES

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

CONGRATULATIONS, YOURE IN MARKETING

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

STORIES ARE GOOD FOR BUSINESS

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

Source: Successful Business Intelligence Cindi Howson

PROCESS, NOT PROJECT

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

COPYRIGHT 2008 BUSINESS OBJECTS S.A.

ALIGN WITH BUSINESS PROCESSES

Physician Examines Patient

Physician Note Created

Labs and/or X-rays are Ordered

Lab Report(s) Returned via EDIM

Physician Consults with Patient

Physician Note Completed

Patient Referred for Follow-up Care

Discharge Instructions Created

Electronic Chart is Completed

History File is Created