Don't Throw Hadoop At Every BI Challenge

Boris Evelson

The explosion of data and fast-changing customer needs have led many companies to a realization: They must constantly improve their capabilities, competencies, and culture in order to turn data into business value. But how do Business Intelligence (BI) professionals know whether they must modernize their platforms or whether their main challenges are mostly about culture, people, and processes?

"Our BI environment is only used for reporting — we need big data for analytics."

"Our data warehouse takes very long to build and update — we were told we can replace it with Hadoop."

These are just some of the conversations that Forrester clients initiate, believing they require a big data solution. But after a few probing questions, companies realize that they may need to upgrade their outdated BI platform, switch to a different database architecture, add extra nodes to their data warehouse (DW) servers, improve their data quality and data governance processes, or other commonsense solutions to their challenges, where new big data technologies may be one of the options, but not the only one, and sometimes not the best. Rather than incorrectly assuming that big data is the panacea for all issues associated with poorly architected and deployed BI environments, BI pros should follow the guidelines in the Forrester recent report to decide whether their BI environment needs a healthy dose of upgrades and process improvements or whether it requires different big data technologies. Here are some of the findings and recommendations from the full research report:

1) Hadoop won't solve your cultural challenges

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Hit the road running with a new BI initiative

Boris Evelson

Even though Business Intelligence applications have been out there for decades lots of people still struggle with “how do I get started with BI”. I constantly deal with clients who mistakenly start their BI journey by selecting a BI platform or not thinking about the data architecture. I know it’s a HUGE oversimplification but in a nutshell here’s a simple roadmap (for a more complete roadmap please see the Roadmap document in Forrester BI Playbook) that will ensure that your BI strategy is aligned with your business strategy and you will hit the road running. The best way to start, IMHO, is from the performance management point of view:

  1. Catalog your organization business units and departments
  2. For each business unit /department ask questions about their business strategy and objectives
  3. Then ask about what goals do they set for themselves in order achieve the objectives
  4. Next ask what metrics and indicators do they use to track where they are against their goals and objectives. Good rule of thumb: no business area, department needs to track more than 20 to 30 metrics. More than that is unmanageable.
  5. Then ask questions how they would like to slice/dice these metrics (by time period, by region, by business unit, by customer segment, etc)
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Systems Of Insight: Next Generation Business Intelligence

Boris Evelson

Earlier Generation BI Needs A Tune Up

Business intelligence has gone through multiple iterations in the past few decades. While BI's evolution has addressed some of the technology and process shortcomings of the earlier management information systems, BI teams still face challenges. Enterprises are transforming only 40% of their structured data and 31% of their unstructured data into information and insights. In addition, 63% of organizations still use spreadsheet-based applications for more than half of their decisions. Many earlier and current enterprise BI deployments:

  • Have hit the limits of scalability.
  • Struggle to address rapid changes in customer and regulatory requirements.
  • Fail to break through waterfall's design limitations.
  • Suffer from mismatched business and technology priorities and languages.
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Data Today Keeps The Doctor Away

Jennifer Belissent, Ph.D.

In scanning through my O’Reilly Data Newsletter today, I noticed A Healthy Dose of Data, an MIT Sloan case study on the data and analytics culture at Intermountain, a healthcare network that runs 22 hospitals and 185 clinics.  The study is definitely worth the read.  It reviews the history of data use at Intermountain, which began way before the “big data” craze of recent years.  In fact, it was back in the 1950s that one of the Intermountain cardiologists, Homer Warner, began to explore clinical data to understand why some heart patients experienced better outcomes than others.  He went on to become known as the “father of medical informatics – the use of computer programs to analyze patient data to determine treatment protocols,” and with colleagues designed and launched their first decision-support tool. 

The case study goes on to describe how Intermountain has cultivated a strong data and analytics culture. Over time – Rome was not built in a day, as they say – they established data maturity across the organization by investing in the capacity (new tools and technologies), developing the competencies (new skills and processes) and finally spreading the culture (awareness, understanding and best practices) of data and analytics. Their analytical approach brought results – fewer surgical infections, more effective use of antibiotics, less time in intensive care etc – contributing to lower costs, better medical outcomes, and overall patient satisfaction.

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Expand Your Big Data Capabilities With Unstructured Text Analytics

Boris Evelson
Beware of insights! Real danger lurks behind the promise of big data to bring more data to more people faster, better, and cheaper: Insights are only as good as how people interpret the information presented to them. When looking at a stock chart, you can't even answer the simplest question — "Is the latest stock price move good or bad for my portfolio?" — without understanding the context: where you are in your investment journey and whether you're looking to buy or sell. While structured data can provide some context — like checkboxes indicating your income range, investment experience, investment objectives, and risk tolerance levels — unstructured data sources contain several orders of magnitude more context. An email exchange with a financial advisor indicating your experience with a particular investment vehicle, news articles about the market segment heavily represented in your portfolio, and social media posts about companies in which you've invested or plan to invest can all generate much broader and deeper context to better inform your decision to buy or sell. 
 
But defining the context by finding structures, patterns, and meaning in unstructured data is not a simple process. As a result, firms face a gap between data and insights; while they are awash in an abundance of customer and marketing data, they struggle to convert this data into the insights needed to win, serve, and retain customers. In general, Forrester has found that: 
 
  • The problem is not a lack of data. Most companies have access to plenty of customer feedback surveys, contact center records, mobile tracking data, loyalty program activities, and social media feeds — but, alas, it's not easily available to business leaders to help them make decisions. 
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Need Better Customer Insights To Fuel Your Digital Strategy? Start By Working On Your Communication Skills

Michael Barnes

 

Retaining and delighting empowered customers requires continuous, technology-enabled innovation and improved customer insight (CI). The logic is simple in theory, but that doesn’t make it any easier to implement in practice.

In my recent report, entitled “Applying Customer Insight To Your Digital Strategy”, I highlight the top lessons learned from organizations in Asia Pacific (AP) that are successfully leveraging CI to fuel digital initiatives. It all starts by ensuring that data-driven decision-making is central to the digital strategy. With that in mind, I want to use this blog post to focus on two key lessons from the report:

 

Lesson One: Establish A Clear Mandate To Invest In Customer Analytics

Successful companies serve empowered customers in the way they want to be served, not the way the company wants to serve them. When building a mandate you should:

■  Expect natural tensions between various business stakeholders to arise. To secure buy-in from senior business decision-makers, start by illustrating the clear link between digital capabilities and data as a source of improved customer understanding. Identify measurable objectives and then link them to three to four scenarios that highlight where the biggest opportunities and risks exist. Continue to justify data-related investments by restating these scenarios at regular intervals.

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Intel Announces Xeon SOC – Seriously Raising the Bar for AMD and ARM Competition

Richard Fichera

Intel has made no secret of its development of the Xeon D, an SOC product designed to take Xeon processing close to power levels and product niches currently occupied by its lower-power and lower performance Atom line, and where emerging competition from ARM is more viable.

The new Xeon D-1500 is clear evidence that Intel “gets it” as far as platforms for hyperscale computing and other throughput per Watt and density-sensitive workloads, both in the enterprise and in the cloud are concerned. The D1500 breaks new ground in several areas:

It is the first Xeon SOC, combining 4 or 8 Xeon cores with embedded I/O including SATA, PCIe and multiple 10 nd 1 Gb Ethernet ports.

(Source: Intel)

It is the first of Intel’s 14 nm server chips expected to be introduced this year. This expected process shrink will also deliver a further performance and performance per Watt across the entire line of entry through mid-range server parts this year.

Why is this significant?

With the D-1500, Intel effectively draws a very deep line in the sand for emerging ARM technology as well as for AMD. The D1500, with 20W – 45W power, delivers the lower end of Xeon performance at power and density levels previously associated with Atom, and close enough to what is expected from the newer generation of higher performance ARM chips to once again call into question the viability of ARM on a pure performance and efficiency basis. While ARM implementations with embedded accelerators such as DSPs may still be attractive in selected workloads, the availability of a mainstream x86 option at these power levels may blunt the pace of ARM design wins both for general-purpose servers as well as embedded designs, notably for storage systems.

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3 Ways Data Preparation Tools Help You Get Ahead Of Big Data

Michele Goetz

The business has an insatiable appetite for data and insights.  Even in the age of big data, the number one issue of business stakeholders and analysts is getting access to the data.  If access is achieved, the next step is "wrangling" the data into a usable data set for analysis.  The term "wrangling" itself creates a nervous twitch, unless you enjoy the rodeo.  But, the goal of the business isn't to be an adrenalin junky.  The goal is to get insight that helps them smartly navigate through increasingly complex business landscapes and customer interactions.  Those that get this have introduced a softer term, "blending."  Another term dreamed up by data vendor marketers to avoid the dreaded conversation of data integration and data governance.  

The reality is that you can't market message your way out of the fundamental problem that big data is creating data swamps even in the best intentioned efforts. (This is the reality of big data's first principle of a schema-less data.)  Data governance for big data is primarily relegated to cataloging data and its lineage which serve the data management team but creates a new kind of nightmare for analysts and data scientist - working with a card catalog that will rival the Library of Congress. Dropping a self-service business intelligence tool or advanced analytic solution doesn't solve the problem of familiarizing the analyst with the data.  Analysts will still spend up to 80% of their time just trying to create the data set to draw insights.  

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It's Not Your Grandfather's Open Source BI Market Any Longer

Boris Evelson

There's never been a question on the advantages of open source software. Crowdsourcing, vendor independence, ability to see and in some cases control the source code, and lower costs are just a few benefits of open source software (OSS) and business model. Linux and Apache Hadoop are prime examples of successful OSS projects. It's a different story, however, when it comes to OSS BI. For years, OSS BI vendors struggled with growth because of:

 

  • The developer-centric nature of open source projects. The target audience for open source projects is developers, which means deals are mostly sealed by technology management. The industry, on the other hand, has gravitated toward business decision-makers within organizations over the last several years. However, business users are less interested in the opportunities that a collaborative open source community offers, and more concerned about ease of use and quick setup. Indeed, Forrester's research constantly finds evidence correlating business ownership as one of the key success factors for effective BI initiatives.
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Build An Agile Business Intelligence (BI) Organization

Boris Evelson
The battle of trying to apply traditional waterfall software development life-cycle (SDLC) methodology and project management to BI has already been fought — and largely lost. These approaches and best practices, which apply to most other enterprise applications, work well in some cases, as with very well-defined and stable BI capabilities like tax or regulatory reporting. Mission-critical, enterprise-grade BI apps can also have a reasonably long shelf life of a year or more. But these best practices do not work for the majority (anecdotally, about three-quarters) of BI initiatives, where requirements change much faster than these traditional approaches can support; by the time a traditional BI application development team rolls out what it thought was a well-designed BI application, it's too late. As a result, BI pros need to move beyond earlier-generation BI support organizations to:
 
  • Focus on business outcomes, not just technologies. Earlier-generation BI programs lacked an "outcomes first" mentality. Those programs employed bottom-up approaches that focused on the project management and technology first, leaving clients without the proper outcomes that they needed to manage the business; in other words, they created an insights-to-action gap.  BI pros  should use a top-down approach that defines key performance indicators, metrics, and measures that support the business' goals and objectives. They must resist the temptation to address technology and data needs before the business requirements. 
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