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Bill HostmannBI Competency Center:Getting the Most Out of BI StrategiesThese materials can be reproduced only with Gartners official approval.Such approvals may be requested via e-mail-.Notes accompany this presentation.Please select Notes Page view.Skills,Not Technology,Inhibit Enterprises in BIBy 2006,large enterprises will need three times as many business intelligence(BI)personnel as they did in 2001(0.7 probability).By 2005,demand for BI staff will outweigh supply by 2-to-1(0.8 probability).By 2005,enterprises that do not recognize and leverage existing analytic skills and staff and do not invest in them,will be unable to meet strategic objectives(0.8 probability).By 2004,enterprises that do not organize their BI activities(e.g.,by starting a BI competency center),will be unable to deliver BI on a strategic level and will face at least 50 percent higher cost of implementation(0.8 probability).Copyright 2003ConclusionsThere is return on investment(ROI)associated with BI,but only if you organize for it.Enterprises need to centralize their skills in a BI competency center to break down organizational barriers.The BI competency center works closely with the data warehouse team.The BI competency center is crucial in helping enterprises successfully embrace new business paradigms.Copyright 2003Is BI Contributing toYour Bottom Line or Top Line?TimeRevenueUpCostsDownOperations Driving BIBI Driving OperationsCopyright 2003Data warehouseODSETTIntegration brokersThe New BI SilosITHumanResourcesSales andMarketingFinanceOperationsExecutives?FunctionalityInfrastructureCopyright 2003BI Platforms,EBIS,Data Mining,IT-Centric/User-DrivenBI Apps.:Strategic,Operational,AnalyticalQ+R:Standard,Canned,ad hocBusinessOrganizationFunctionalityInfrastructureTransactionalKey Trends:Globalization,Virtualization,TransparencyPerformance Management,Front-Office/Back-OfficeInformation,Culture(Inclusion,Exclusion)User Types,BI Methodology,Skills and BI DepartmentBI Apps.:Strategic,Operational,AnalyticalBI Platforms,EBIS,Data Mining,IT-Centric/User-DrivenData WarehouseODSETTIntegration BrokersPoint in TimeReal TimeERPCRMSCMLegacy.Q+R:Standard,Canned,ad hoc,User-DrivenCompetitive-nessLeverageEffectivenessEfficiencyOnly Organizing forBI Brings LeverageCopyright 2003Organize Analytic Skills in a BI Competency CenterBusinessSkillsIT SkillsAnalytic SkillsBI CCImplementchangesStore,maintain,integrate dataIdentify dataDiscover and exploreSummarizeand analyzeDevelop decisionalternativesLink tocorporatestrategyPrioritizeand setexpectationsAlterprocessesEstablishrequirementsExtractdataMonitorresultsInterpretresultsCopyright 2003But.Where to Find These People?Business skillsAccountant,business analyst,marketing analyst“BI competency center as a career tool”IT skillsInformation analysts/junior information manager that wants to cross over to business“BI competency center as a stepping stone”Analytic skillsEconometrist,statistician,senior list managerCopyright 2003Examples:Corporate BI apps.100 percent governance by BI CCDepartmental BI apps.“Framework fit”governance by BI CCSpecial-purpose BI applicationsNo governanceConsultancySeeking leverageCopyright 2003The BI Competency Center Governs the BI ProgramManagers and ProfessionalsRank-and-FileAnalyticalComplexityStrategicDataDepthUser ControlData BreadthTacticalEase ofUseCustomization0246810Analysts/Knowledge WorkersExecutivesWhere to Place the BI Competency Center?Core BusinessCFOPlan A:Report to the business(in a collaborativeenvironment)Plan B:Report to the CFO(only if matured fromfinancial control to management control)CIOPlan C:Report to the CIO(if IT has the onlyoverviewing role)Copyright 2003Funding the BI Competency CenterOverheadgNo barrier of using BI CC servicesgNo indication of economic valueBilling queries,activities.gFair”share of costs,heavy users pay moregCreating a barrier for useSubscription-basedgReducing barriers for usegUnderstanding economic valueCopyright 2003DW Operations Are an IS Task,but Business Has Responsibilities TooISCopyright 2003Cases:Organizing Data Warehouse AdministrationRatingClassic IS department treating data warehouse asOLTP;same escalation,same incident management,etc.Asset management firm has shared resources,buton top of that three“service lines”:OLTP,DW,e-bus.Retail chain has no administrative skills/resources;DW and BI applications are kept“in development”Large telco data warehouse has completelyseparate admin.because of“esoteric”platformOrganization chose to outsource its complete SAP R/3 operations,including SAP-centric DW+/+/Copyright 2003Overview of All RolesITBusinessData Warehouse ManagerBI CC ManagerSponsorArchitectBI CCBusinessConsultantDWDevelopersBIDevelopersDBAProductionSpecialistMetadataAdmin.QuerySpecialistsAnalystsDQInspectorApplicationCoordinatorExecutivesMiddleManagementKnowledgeWorkersCopyright 2003What BI Needs NextIs CollaborationLarge setof usersExclusivenumberof usersShape andshow informationSupportProcessInformationDemocracySharing insightCollaborativeBIPackaged BIApplicationsTaking actionBusinessIntelligence Having insightCopyright 2003The Impact of CollaborativeBI ApplicationsFinanceUsersUsersUsersUsersFinanceThe“Expert”BottleneckThe Collaborative Value ChainCopyright 2003Think Outside the EnterpriseEnterpriseScorecardCommon MeasurementsConvergence MeasurementsCommon MeasurementsConvergence MeasurementsHubValue RiskSupplierCustomerDistributorCustomerManu-facturerCommon MeasurementsSolutionProviderValue RiskValue RiskValue RiskValue RiskCopyright 2003Budgeting ExampleRecommendationsOrganize for BI:Think of the skills you needImplement an appropriate funding strategyFind the right executive to report toWork really closely with the data warehouse teamGive the BI competency center a strategic role in embracing new organizational paradigmsThe BI competency center is not the only competency center and should actively collaborate and share resources with the other competency centersCopyright 2003
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