First of all, congratulations, SAS AR team, for one of the most efficiently and effectively run events.
SAS needs to make up its mind whether it wants to be in the BI game or not. Despite what SAS’s senior executives have been heard saying occasionally, that “BI is dead,” SAS is not quite done with BI. After all, BI makes up 11% of SAS’s very impressive $2.4 billion annual revenue (with uninterrupted 35-year growth!). Additionally BI contributed 22% to SAS 2010 growth, just below analytics at 26%.
Even though some organizations are looking at and implementing advanced analytics such as statistical analysis, predictive modeling, and — most important — model-based decisions, there are only a handful of them. As our BI maturity survey shows year after year, BI — even basic BI — maturity is still below average in most enterprises. Add these numbers to the abysmal enterprise BI applications penetration levels in most large organizations, and you get continued, huge, and ever-expanding opportunity that no vendor in its right mind, especially a vendor with leading BI tools, should miss.
Mobile devices and mobile Internet are everywhere. Over the past few years, Forrester has tracked continuously increasing levels of adoption and maturity for mobile business applications, but not so for mobile business intelligence (BI) applications. The adoption and maturity of mobile BI fall behind other mobile enterprise applications for multiple reasons, mainly the lack of specific business use cases and tangible ROI, as well as inadequate smartphone screen and keyboard form factors. However, larger form factor devices such as tablets and innovative approaches to online/offline BI technical architecture will boost mobile BI adoption and maturity in the near future. BP professionals must start evaluating and prototyping mobile BI platforms and applications to make sure that all key business processes and relevant information are available to knowledge workers wherever they are.
But mobile BI adoption levels are still low. Why? We see three major reasons.
Smartphones still lack the form factor appropriate for BI
The business case for mobile BI remains tough to build
Mobile device security is still a concern
Now, mobile tablet devices are a different story. Just like Baby Bear's porridge in the "Goldilocks And The Three Bears" fairy tale, tablet PCs are "just right" for mobile BI end users. So what can you do with mobile BI? Plenty!
Improve customer and partner engagement
Deliver BI in the right place, at the right time
Introduce BI for the workers without access to traditional BI applications
Improve BI efficiency via query relevance
Improve "elevator pitch" effectiveness
Give away mobile devices as an incentive to cross-sell and upsell analytic applications
I get tons of questions about "how much it costs to develop an analytical application." Alas, as most of us unfortunately know, the only real answer to that question is “it depends.” It depends on the scope, requirements, technology used, corporate culture and at least a few dozen of more dimensions. However, at the risk of a huge oversimplification, in many cases we can often apply the good old 80/20 rule as follows:
~20% for software, hardware, and other data center and communications infrastructure
SAP Has Managed A Turnaround After Léo Apotheker’s Departure
In February 2010, after Léo Apotheker resigned as CEO of SAP, I wrote a blog post with 10 predictions for the company for the remaining year. Although the new leadership mentioned again and again that this step would not have any influence on the company’s strategy, it was clear that further changes would follow, as it doesn’t make any sense to simply replace the CEO and leave everything else as is when problems were obviously growing bigger for the company.
I predicted that the SAP leadership change was just the starting point, the visible tip of an iceberg, with further changes to come. Today, one year later, I want to review these predictions and shed some light on 2010, which has become the “Turnaround Year For SAP.”
The 10 SAP Predictions For 2010 And Their Results (7 proved true / 3 proved wrong)
I get many inquiries on the differences and pros and cons of MOLAP versus ROLAP architectures for analytics and BI. In the old days, the differences between MOLAP, DOLAP, HOLAP, and ROLAP were pretty clear. Today, given the modern scalability requirements, DOLAP has all but disappeared, and the lines between MOLAP, ROLAP, and HOLAP are getting murkier and murkier. Here are some of the reasons:
Some RDBMSes (Oracle, DB2, Microsoft) offer built-in OLAP engines, often eliminating a need to have a separate OLAP engine in BI tools.
Some of the DW-optimized DBMSes like Teradata, SybaseIQ, and Netezza partially eliminate the need for an OLAP engine with aggregate indexes, columnar architecture, or brute force table scans.
MOLAP engines like Microsoft SSAS and Oracle Essbase can do drill-throughs to detailed transactions.
Semantic layers like SAP BusinessObjects Universe have some OLAP-like functionality.
I get lots of questions from clients on whether they should consider (or continue to rely on) SAP BW for their data warehousing (DW) and business intelligence (BI) platform, tools, and applications. It’s a multidimensional (forgive the pun) decision. Jim Kobielus and I authored our original point of view on the subject soon after the SAP/BusinessObjects merger, so this is an updated view. In addition to what I’ll describe here, please also refer to all of the DW research by my colleague, Jim Kobielus.
First of all, split the evaluation and the decision into two parts: front end (BI) and back end (DW).
Back end – DW
Best for SAP-centric environments.
Agile tool that lets you control multiple layers (typically handled by different tools) such as ETL, DDL, metadata, SQL/MDX from a single administrative interface.
Organizations that use BI show increased (+5.7% from 2009) levels of maturity. However, most of the respondents still rate themselves below average on Forrester's BI maturity scale: 2.75 (on a scale of 1-5) for overall maturity, with the following details:
. . . most aspects of BI such as processes, architectures, and measurements of BI efficiency and effectiveness lag behind.
And (drum roll, please) the most interesting, and, I am sure, controversial finding is that Forrester’s predicted trend that Agile BI and BI self-service will trump centralization and consolidation has been confirmed. Here's the proof:
In 2010, 59% of the respondents said that they do not have a centralized BI competency solutions center, versus . . .
Two months ago, we announced our upcoming Forrester Forrsights Software Survey, Q4 2010. Now the data is back from more than 2,400 respondents in North America and Europe and provides us with deep and sometimes surprising insights into the software market dynamics of today and the next 24 months.
We’d like to give you a sneak preview of interesting results around some of the most important trends in the software market: cloud computing integrated information technology, business intelligence, mobile strategy, and overall software budgets and buying preferences.
Companies Start To Invest More Into Innovation In 2011
After the recent recession, companies are starting to invest more in 2011, with 12% and 22% of companies planning to increase their software budgets by more than 10% or between 5% and 10%, respectively. At the same time, companies will invest a significant part of the additional budget into new solutions. While 50% of the total software budgets are still going into software operations and maintenance (Figure 1), this number has significantly dropped from 55% in 2010; spending on new software licenses will accordingly increase from 23% to 26% and custom-development budgets from 23% to 24% in 2011.
Cloud Computing Is Getting Serious
In this year’s survey, we have taken a much deeper look into companies’ strategies and plans around cloud computing besides simple adoption numbers. We have tested to what extent cloud computing makes its way from complementary services into business critical processes, replacing core applications and moving sensitive data into public clouds.
Are you interested in business intelligence, wonder about the future of the analytics market or have a question on advanced analytics technologies?
Then join the Forrester analysts Rob Karel, Boris Evelson, Clay Richardson, Gene Leganza, Noel Yuhanna, Leslie Owens, Suresh Vittal, William Frascarelli, David Frankland, Joe Stanhope, Zach Hofer-Shall, Henry Peyret and myself for an interactive TweetJam on Twitter about the state of advanced analytics on Wednesday, December 15th, 2010 from 12:00 p.m. – 1:00 p.m. EDT (18:00 – 19:00 CET) using the Twitter hashtag #dmjam. We’ll share the results of our recent research on the analytics market space and discuss how it will change with new technologies entering the scene and maturing over time.
Business intelligence is the fastest growing software market today as companies are driving business results based on deeper insights and better planning, and advanced analytics is the spearhead of BI technologies that can untap new dimensions of business performance. But what exactly is ‘advanced’ analytics, what technologies are available and how to efficiently use them?
Much more detailed information can be found in the blog of Forrester analyst James Kobielus who will lead us through the discussion during the TweetJam. Above you see an overview graphic listing the different elements of advanced analytics today, taken from his blog.
Here are some of the questions we want to debate during our TweetJam discussion:
What exactly is and isn’t advanced analytics?
What are the chief business applications of advanced analytics?
With about 41,000 attendees, 1,800 sessions, and a whooping 63,000-plus slides, Oracle OpenWorld 2010 (September 19-23) in San Francisco was certainly a mega event with more information than one could possibly digest or even collect in a week. While the main takeaway for every attendee depends, of course, on the individual’s area of interest, there was a strong focus this year on hardware due to the Sun Microsystems acquisition. I’m a strong believer in the integration story of “Hardware and Software. Engineered to Work Together.” and really liked the Iron Man 2 show-off all around the event; but, because I’m an application guy, the biggest part of the story, including the launch of Oracle Exalogic Elastic Cloud, was a bit lost on me. And the fact that Larry Ellison basically repeated the same story in his two keynotes didn’t really resonate with me — until he came to what I was most interested in: Oracle Fusion Applications!