Straight Talking - BI to go Mainstream?
The ultimate goal of business intelligence is to drive better
business performance through providing the right data at the right
time. However, implementing a business intelligence (BI) platform
can be costly and complex to use and deploy. Traditional BI solutions
are often only used by a small proportion of users - the analysts
and power users - and even then, the tools can be difficult to
use.
With Office 2007, Microsoft aims to address the unrealised potential
use of BI in an organisation by applying its low-cost, high-volume
approach to the market. But whilst Microsoft may indeed increase
the awareness of BI tools, achieving mainstream BI adoption still
faces many challenges.
One of the main drivers for BI adoption is the need to analyse
high volumes of transactional data, which continue to grow exponentially.
This is supplemented by the requirement to analyse business performance
through financial results, sales results and key performance indicators
(KPIs).
In response to a fast-changing environment, businesses must
be able to react quickly to capitalise on new opportunities, which
places a premium on the ability to understand and analyse data.
For BI to have an impact on business decisions, it must provide
information directly to the desktops of a wide range of operational
users so that they can react in real time and make immediate decisions.
However there are numerous factors which are compromising the
true fulfilment of BI on every desktop. Generally a BI platform
architecture can be complex to build and inflexible to change
as business processes change. As a result, many BI deployments
not only take a long time to implement but also are often limited
to specific functional areas of the business, such as finance,
rather than the whole business.
Also, many BI applications are far from easy to learn and use,
requiring specialist users and training - again limiting the broader
use of BI. In addition, platform limitations exist due to many
data warehouses and data marts which are based on aggregated data.
This means that any data analysis is limited to predefined cubes
which may not reflect the business process today, and multiple
data warehouses also ultimately hinders the view of a 'single
version of truth'.
These factors have all played a part in limiting the full distribution
of enterprise-wide business intelligence. All too often, many
organisations deploying BI choose to deploy a pilot approach and
the implementation never extends beyond this. BI vendors, on the
other hand, are all vying to bring BI mainstream through their
vision of query, reporting and dashboards on every desktop. Indeed,
organisations require a standardised platform to work across their
business, not just at a departmental level.
So what are the BI vendors doing to address the requirement
for standardisation?
Leading BI vendors such as Business Objects, Cognos and Hyperion
are investing significant resources into re-architecting their
original disparate tools and applications to work together as
part of an integrated platform: for example, Business Objects
XI, Cognos 8 and Hyperion System 9.
Commonly based on the new service-oriented architectures, these
suites are focused on driving BI standardisation across the enterprise
by integrating OLAP (On Line Analytical Processing), query and
reporting, dashboards and also data integration. SAS now offers
analytics directly aimed at non-technical users through WebReport
Studio, and is seeing strong growth in sales of its Enterprise
BI Server Platform.
At the enterprise level both SAP and Oracle are positioning
their respective NetWeaver and Fusion Middleware application integration
platforms as linking BI to overall business processes. In addition,
SAP's 'Duet' with Microsoft also promises to tie NetWeaver BI
and analytic data to the Microsoft Office desktop, within the
comfort zone of most business users today.
A notable development in the BI market is the release of Microsoft
Office 2007 which has the potential to bring BI capabilities to
the desktop of all Office users (which is over 90 per cent of
information workers). Microsoft is also fundamentally positioning
SQL Server 2005's latest data integration, OLAP, reporting capabilities
and data integration tools on an equal footing with other best-of-breed
BI tools. By offering features that enable organisations to pilot
low-cost, low-commitment BI initiatives Microsoft believes that
Office 2007 will be the key vehicle to distributing analytics
to a much broader audience than before.
Microsoft's BI strategy also extends to combining Office 2007
with SharePoint which will form the basis of a federated portal
providing wide-ranging data access. However, whilst sales of Office
2007 to a vast Office base will boost sales of SQL Server 2005
and raise awareness of Microsoft's BI, it will be Microsoft's
route to market, cost and desktop dominance which will determine
if Office succeeds in forming the basis of a company's enterprise-wide
BI strategy.
Perhaps the most significant activity around driving BI to a
wider audience is the integration with enterprise search. Business
Objects is offering new search capabilities that will make it
easier for users to retrieve information using keyword searches
from its business intelligence tools, including Crystal Reports,
Web Intelligence Reports and DashBoard Manager. Cognos has also
launched Go!, which offers enterprise search capabilities and
is aimed at targeting a more diverse user base.
BI vendors are working on applications which not only search
existing reports but also build reports on the fly. Whilst this
may open BI to analysis beyond the standard querying of databases,
effective enterprise BI search will ultimately rely on a robust
metadata framework.
Nevertheless, with the requirement for faster business insight,
enterprise search certainly promises to offer easier access to
both structured and unstructured information, and therefore drive
BI deeper into an organisation.
Without doubt Microsoft has the potential to increase broader
awareness of BI with its Office 2007 capabilities. However the
investment for organisations to standardise on Microsoft for enterprise
BI is hugely dependent on their existing infrastructure - and
although Microsoft BI capabilities may be highly price-competitive,
there will still be costs in terms of migration.
Pure-play BI vendors may not feel an immediate impact, although
they are already being squeezed by Oracle and SAP and feeling
the pressure from smaller, innovative vendors such as Spotfire,
Tableau and QlikTech that focus on lower total cost of ownership,
visualisation and in-memory analysis. In all, this vendor activity
is all positive for the BI market and should help the market evolve
from its tactical roots to becoming more pervasive and strategic.
In such a crowded market, the key factors which will ultimately
drive wider adoption are architecture and integration, with the
aim to enable users to explore data in their own way. This self-serve
functionality will enable broader use of BI but this can only
happen if end users can easily learn, deploy and effectively manage
a BI application without a dependency on IT. Only when BI solutions
are broadly distributed to all users who need access to information,
will the dashboard on every desktop become a reality.
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