After the recent board changes the strategy will change too
After the recent board changes at SAP the message we could read in most news was like ‘new board – old strategy’. Along with the board changes SAP did not announce (yet) any significant strategic changes. But what good is it to change the board and leave everything else as is?
The recent SAP board changes are just the visible tip of the iceberg of much deeper changes SAP will and has to go through to renew itself as a leading IT vendor. Below are 10 predictions for changes in SAP’s strategic direction I expect within the next 10+ months:
1. More SAP Board Changes Will Come
Additional board changes will further strengthen the product & technology focus and competence within the SAP board. See also Forrester’s blog on the recent SAP board changes: SAP CEO Resigns – Long Live The Co-CEOs
2. Business ByDesign Will Get Back Into SAP’s Strategic Center
Business ByDesign will become again the corner stone of SAP’s growth strategy and the successful introduction will mark a ‘make it or break it’ milestone for SAP.
3. SAP Announces The Next-Generation ERP
SAP will announce a next-generation ERP solution to regain leadership in its core business area and it will likely be based on the ByDesign platform.
4. SAP Changes Its Cloud Strategy
SAP will rework its whole On-Demand strategy and will unify and align all components based on the ByDesign platform. See also Forrester’s recent blog on SAP’s On-Demand strategy: SAP Is Skydiving Into The Clouds.
When a user of a BI application complains about the application not being useful - something that I hear way too often - what does that really mean? I can count at least 11 possible meanings, and potential reasons:
1. The data is not there, because
It's not in any operational sources, in which case the organization needs to implement a new app, a new process or get that data from an outside source
It is in an operational source, but not accessible via the BI application.
The data is there, but
2. It's not usable as is, because
There are no common definitions, common metadata
The data is of poor quality
The data model is wrong, or out of date
3. I can't find it, because I
Can't find the right report
Can't find the right metadata
Can't find the data
I don't have access rights to the data I am looking for
4. I don't know how to use my application, because I
Was not trained
Was trained, but the application is not intuitive, user friendly enough
5. I can't/don'thave time do it myself - because I just need to run my business, not do BI !!! - and
When business processes finally become intelligent
Over the past several months I have done a lot of research on the BI market, the trends and the vendor landscape. There is a clear indication that BI solutions are becoming more sophisticated, more intelligent and – more integrated into other applications to enhance the performance of the application supported business processes.
Very recently now, in discussions with BPM vendors like IDS Scheer, HandySoft and many others it became very eminent that from the other side, BPM solutions are moving steadily into the field of Business Intelligence too. The world of BPM and BI solutions are converging to bring intelligent business processes to the market – eventually. However, today we are still some steps away from this picture and the convergence of BPM and BI will likely proceed in smaller steps are outlined in the below BI-BPM convergence model.
Today several BPM vendors have actively integrated business intelligence capabilities into their solutions. Larger ones like IDS Scheer have developed their own analytics while smaller vendors like HandySoft are using OpenSorce components offered by JasperSoft and other OpenSource BI vendors. The integration offers users new and consistent insights along the whole business process. A user in this context means both:
a) Business users that are part of the business process get access to relevant information and reports that increase the efficiency of the process, and
b) Business process owners get an insightful analytics of the process metadata to be able to further enhance and streamline the process.
My colleague, Holger Kisker, just posted a very insightful blog on the convergence of BI and BPM technologies. Yes, Holger, BPM vendors definitely have some BI capabilities. And so do some search vendors like Attivio, Endeca and Microsoft FAST Search. And so do some middleware vendors like TIBCO, Vitria and Software AG. And so do rules vendors like FairIsaac, PegaSystems. Should I go on? I have a list of hundreds of vendors that "say" they are a BI vendor.
But it’s not that simple. First of all, let’s define BI. In the last BI Wave we defined BI as “a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insights and decision-making”. To provide all these capabilities a vendor should have most of the necessary components such as data integration, data quality, master data management, metadata management, data warehousing, OLAP, reporting, querying, dashboarding, portal, and many, many others. In this broader sense only full BI stack vendors such as IBM, Oracle, SAP, Microsoft, SAS, TIBCO and Information Builders qualify.
Even if we define BI more narrowly as the reporting and analytics layer of the broader BI stack, we still want to include capabilities such as 11 ones we use to rate BI vendors in the BI Waves:
91% of executives say customer experiences are critical or very important to their businesses, nearly 5,000 consumers prefer better customers experiences over lower prices and better customer experiences drive higher revenue and profits,—according to Forrester Research .
The following question comes from many of our clients: what are some of the advantages and risks of implementing a vendor provided analytical logical data model at the start of any Business Intelligence, Data Warehousing or other Information Management initiatives? Some quick thoughts on pros and cons:
Leverage vendor knowledge from prior experience and other customers
May fill in the gaps in enterprise domain knowledge
Best if your IT dept does not have experienced data modelers
May sometimes serve as a project, initiative, solution accelerator
May sometimes break through a stalemate between stakeholders failing to agree on metrics, definitions
May sometimes require more customization effort, than building a model from scratch
May create difference of opinion arguments and potential road blocks from your own experienced data modelers
May reduce competitive advantage of business intelligence and analytics (since competitors may be using the same model)
Goes against “agile” BI principles that call for small, quick, tangible deliverables
Goes against top down performance management design and modeling best practices, where one does not start with a logical data model but rather
Defines departmental, line of business strategies
Links goals and objectives needed to fulfill these strategies
Defines metrics needed to measure the progress against goals and objectives
Defines strategic, tactical and operational decisions that need to be made based on metrics
Slowly but surely, with lots of criticism and skepticism, the business intelligence (BI) software-as-a-service (SaaS) market is gaining ground. It's a road full of peril — at least two BI SaaS startups have failed this year — but what software market segment has not seen its share of failures? Although I do not see a stampede to replace traditional BI applications with SaaS alternatives in the near future, BI SaaS does have a few legitimate use cases even today, such as complementary BI, in coexistence with traditional BI, BI workspaces, and BI for small and some midsize businesses.
In our latest BI SaaS research report we recommend the following structured approach to see if BI SaaS is right for you and if you are ready for BI SaaS:
Map your BI requirements and IT culture to one of five BI SaaS use cases
Evaluate and consider scenarios where BI SaaS may be a right or wrong fit for you
Select the BI SaaS vendor that fits your business, technical, and operational requirements, including your tolerance for risk
First we identified 5 following BI SaaS use cases.
Coexistence case: on-premises BI complemented with SaaS BI in enterprises
SaaS-centric case in enterprises: main BI application in enterprises committed to SaaS
SaaS-centric case in midmarket: main BI application in midsized businesses
Elasticity case: BI for companies with strong variations in activity from season to season
Power user flexibility case: BI workspaces are often considered necessary by power analysts
Our latest BI maturity survey results are in. We used exactly the same questions from our online BI maturity self assessment tool to survey over 200 Forrester clients. Now you can compare your own BI maturity level against your peers by using data from the survey.
In the self assessment tool and in the survey we ask over 30 questions in the following 6 categories
Data and technology
Our clients rated themselves on the scale of 1 to 5 (5, if they strongly agree with our statement or 1, if they strongly disagree). Here are the overall results. Keep in mind that these results do not evaluate BI maturity accross ALL business, but rather in businesses that are already pretty far ahead in their BI implementations (they are Forrester clients, they read our research reports, they talk to our research analysts):
I get many questions about the usage, pervasiveness, and adaption of mobile BI applications. What's a mobile BI application? Beyond a simple delivery of alerts, URLs, or actual reports via email - functionality that has existed for years - here are a few newer approaches to deliver BI on a mobile device:
The no brainer. In theory any mobile device equipped with a browser can access web based, thin client, HTML only BI applications. Yes, these BI apps will be mostly static, not interactive reports and dashboards. Navigation (scrolling, zooming, etc) will be quite awkward. But, this approach indeed requires no additional effort to deploy.
Customization. The next step up is to render each (or all) reports and dashboards to a format suitable to any mobile device in terms of screen size, usage of screen real estate, and mobile device specific navigation instrumentation. A variation of this approach is to create device specific navigation controls (thumb wheel or thumb button for Blackberries, up/down/left/right arrows for Palms, gestural manipulation for iPhone, etc). This obviously requires more development effort, but still no additional software.