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The problem with BI

By | November 2, 2011, 11:15am PDT

Summary: BI is back in the news and for all the wrong reasons. There is another way.

Business Intelligence was a very big deal back in the 90’s…and then somewhere around the mid-00’s it went off the radar. Now it seems I can’t open my RSS reader without someone opining on the topic. The latest I saw comes from Ann All who talks about Creating a Business Intelligence Culture. Here analysis is clear and well rounded but fundamentally flawed. She says:

The conventional wisdom: Companies are limiting the potential usefulness of BI by making it available only to specialists, who create reports from centralized data and make those reports available only to select decision makers.

Not everyone agrees with this, of course. In 2009 I interviewed Nigel Pendse, a principal with OLAP Solutions who had just authored that year’s version of the BI Survey. (The annual report, now called the BI Verdict, is produced by the Business Application Research Center.) He told me vendors were pushing the idea of so-called pervasive BI simply to sell more software licenses.

She then goes on to point out that case studies show that tangible results are possible when more people are brought into the BI fold. She then goes on to argue that the adoption problem is one of culture where for too long, IT has held the access reigns.  Pulling all those arguments together, she uses an IDC analysis that predictably talks about a methodology for getting everyone involved. All of these are great points and may well be right for many businesses. But then consider what’s happening with SAP BI. From the pen of Courtney Bjorlin of ASUGNews: Waiting on SAP, User Communities Fix SAP BusinessObjects Browser Woes. In this piece Ms Bjorlin talks to the angst among users who cannot use SAP BI on IE9 or Safari and questions why this might be:

“SAP and Microsoft have supposedly been partners for 15 or 20 years,” [Hayden] Gill says. “In my opinion, more value could have been delivered from this partnership during the 12 months that IE9 was being developed. SAP could have then had a Service Pack ready to go within three months of the release of IE9.”

And Marks argues that the “release” issue goes beyond browsers. His organization has typically had trouble finding out from SAP when the latest versions of Office are going to be supported.

In that same vein, even with SAP’s push on mobile, Marks says it’s been challenging to figure out when SAP will support Apple’s new iOS 5 platform. Users have asked whether they should update their iPads and iPhones, but he doesn’t know what to tell them –he wants to make certain that their software still works. SAP says Explorer Mobile is supported on iOS 5, and BI 4 will be in Q1 of 2012 via Feature Pack 3.

Fun stuff unless you’re a) an SAP customer or b) an SAP developer on the BI team. And if you think that’s bad then please look at the many questions raised by Vijay Vijayasankar in regard to BI and SAP HANA. A slew of problems await SAP customers and SIs which will suck millions of dollars out of IT budgets. Assuming of course there is no infighting about whose budget is impacted in the first place.

Taken together, these pieces set up the basis for an alternative approach. I pointed out to ASUGNews that the fundamental problem for SAP users is that their solutions were not built for the web. They’re always backfilling and that leads to the kinds of problem customers are experiencing.

I believe that the solution to all these issues is much, much simpler than anything the consulting side or developer side are imagining.

When I look at the new breed of modern business solutions developed for the web, I see that they take a fundamentally different approach. Instead of concentrating on the transaction and then back filling to BI, they start with the notion that people need information that they can easily manipulate.

At yesterday’s Workday 15 briefing, there was much to admire in the way managers can use data for talent management purposes. It was all easy, natural and logical. In other words, this is BI not for manipulation per se but for decision making. That was always the primary goal of BI but which seems somewhat lost in the technology problems we see in large organizations. The fundamental difference then is that BI as Workday and others imagine it is ‘just there’ and available to anyone with the appropriate permissions. When something of this kind exists naturally then the arguments set out by Ann All evaporate. Not because they are providing something new or novel - though that counts - but because it is something that is naturally pushed to you as part of your workflow. It is by embedding analytics as part of the flow of things that people deal with that vendors like Workday overcome the problems with which the incumbent vendors wrestle. It really is THAT simple.

Have the Workdays of this world got it all right? Of course not. There is much to come and they face important technology hurdles of their own. But the approach, which is counterintuitive to the way business software was always developed, is bang on the money. What’s more, because Workday (in this argument but I can count others) is also developing natively for mobile, its ability to reach deep into the business comes as standard. Can SAP, Oracle, Microsoft, Infor…(name your favorite vendor here) say the same? Yes - but only if you, as a buyer, are prepared to do as Pendse says and fork over for more licenses and…maintenance.

Which do you prefer? Something you get as part of what you do or a running battle with IT and the organization over a bolt on?

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Dennis Howlett has been providing comment and analysis on enterprise software since 1991.

Disclosure

Dennis Howlett

Dennis Howlett is committed to maintaining the independent and opinionated stance that his writings are well known for and does not enter into contracts that would limit his freedom of expression in any way. However it is important in the interests of full disclosure to inform readers of those relationships so they can form their own judgment. This page therefore lists all Dennis Howlett’s current business relationships.

Dennis’s consulting arrangements occasionally bring him into direct or indirect business relationships with some of the companies about which he writes, and/or their competitors. Where such a relationship exists, it is disclosed at the end of any article that references the company concerned.

Dennis owns AccMan, an independently produced blog covering the professional services market, primarily focused on Europe. It is currently sponsored by selected TextLink Ads and named sponsors in the ‘Sponsored Content’ block.

He is a member of Enterprise Advocates, a loose association of consultants, and analysts who are concerned with the buyer side of the buy-sell enterprise relationship.

He is a paid contributor to IT Counts, a site dedicated to discussing technology issues as they related to ICAEW members. He also advises ICAEW on certain aspects of its member outreach programs.

He is an SAP Mentor and participates in SAP Mentor webinars. He has recently produced a guide for SAP resellers wishing to record customer videos. Other than as disclosed here, Dennis maintains no business relationship with SAP and is not financially rewarded for his role as a Mentor.

Dennis maintains relationships with a range of end user organizations and in all cases is subject to non-disclosure agreement. He has no current ‘paid for’ relationships with ITC vendors except as disclosed above although certain vendors comp travel and expenses claims. For the benefit of doubt, T&E reimbursement is a common practice among European based writers. It is often the only way we can attend important events. Even so it doesn’t impact our analysis of what vendors have to say. If you believe otherwise then feel free to ignore what is written here.

Except as mentioned above, Dennis has no other investments in any tech industry participants. This page last updated 23rd February, 2010.

Biography

Dennis Howlett

Dennis Howlett has been providing comment and analysis on enterprise software since 1991 in a variety of European trade and professional journals including CFO Magazine, The Economist and Information Week. Today, apart from being a full time blogger on innovation for professional services organisations, he is a founding member of Enterprise Irregulars and an investor in a European start-up. Prior to, Dennis was technology and tax partner in a British firm of Chartered Accountants for 10 years. Prior to that held various senior finance roles across a broad range of industries.

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BI definitely does not belong in applications
jorwell Updated - 3rd Nov
@martyncrew

In fact I would say that the whole idea of an application makes zero sense in a modern enterprise.

I think you will find that linguistic based approaches are generally far more effective than drag and drop. An information system is a way of talking about the world - not a model of the world (someone should remind the object oriented guys about that).
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RE: The problem with BI
martyncrew 2nd Nov
Strongly agree - the more additional steps it takes to do what should be an organic function, the less likely it is that that function will get done. That said, there are types of BI that need to draw from multiple apps, public data sources, etc., where this is not possible. But the situational BI that you're talking about should be performed within the app itself and done using tools that are drag and drop not SQL and Boolean based!
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Contributr
RE: The problem with BI
dahowlett 2nd Nov
@martyncrew - Workday can do that. Pulls in data from LinkedIn, Boloomberg, Chatter etc...more feeds to come but those are the ones I immediately remember
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@martyncrew

In fact I would say that the whole idea of an application makes zero sense in a modern enterprise.

I think you will find that linguistic based approaches are generally far more effective than drag and drop. An information system is a way of talking about the world - not a model of the world (someone should remind the object oriented guys about that).
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Licenses! If the company owns the information, and every worker could or should benefit from awareness of that data, (that is what your advocating isn't it?), then why should it have to cost an arm and a leg? What we need to do is tell the proprietary BI companies to sling their hook, and write some in-house data viewers.
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I think you will find
jorwell Updated - 3rd Nov
That a certain individual called Edgar Codd solved most of the problems of how to represent, manipulate and access data in a flexible, non-application specific manner more than 40 years ago.

All we need to do is implement his ideas in a better way than current vendors. In the meantime we can work with what we have.

I don't think there is much more to say on the subject.

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