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Accelerating the Path to Value with Business Intelligence and Analytics BEST PRACTICES REPORT Q2 2017 Accelerating the Path to Value with Business Intelligence and Analytics By David Stodder Co-sponsored by BEST PRACTICES REPORT Q2 2017 Accelerating the Table of Contents Research Methodology and Demographics . 3 Path to Value Executive Summary . 4 with Business The Business Imperative: Realizing Value from Data . 5 BI and Analytics: Defining Success in Delivering Value . 6 Intelligence and BI and Visual Analytics. 6 Analytics Advanced Analytics . 7 Determining the Value of BI and Analytics . .8 By David Stodder Experiences and Challenges in Reducing Time to Value. 10 Organizational Commitment to Improvement. 15 Relationship of Reducing Time to Value to Other Goals . 16 Priority of Reducing Time to Value Compared to Other Objectives . 18 BI and Analytics Satisfaction: Quantifying Value . 19 Return on Investment . 20 Determining the Downstream Impact . 20 Taking Action to Accelerate Time to Value. 23 Strategies for Reducing Time to Value . 23 Updating Organizational and Governance Processes. 24 Enhancing the Role of Business Stakeholders . 25 Encouraging Guidance from BI Teams . 26 Helping Business Users Interpret Analytics . 26 Making Governance a Help, Not a Hindrance. 28 Technology Priorities for Accelerating Value. 29 Confidence in As-Needed Data Access . 31 Big Data Access and Interaction . 31 Capitalizing on Data Platform Trends for Analytics. 33 Importance of Data, Metadata, and Semantic Integration . 33 Vendor Products . 36 © 2017 by TDWI, a division of 1105 Media, Inc. All rights reserved. Reproductions Recommendations . 39 in whole or in part are prohibited except by written permission. Email requests or feedback to [email protected]. Research Co-sponsor: Tableau Software . 41 Product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies. tdwi.org 1 Accelerating the Path to Value with Business Intelligence and Analytics About the Author DAVID STODDER is senior director of TDWI Research for business intelligence. He focuses on providing research-based insight and best practices for organizations implementing BI, analytics, performance management, data discovery, data visualization, and related technologies and methods. He is the author of TDWI Best Practices Reports and Checklist Reports on data discovery, data visualization, customer analytics in the age of social media, BI/DW agility, mobile BI, and information management. He has chaired TDWI conferences on BI agility and big data analytics. Stodder has provided thought leadership on BI, information management, and IT management for over two decades. He has served as vice president and research director with Ventana Research, and he was the founding chief editor of Intelligent Enterprise, where he served as editorial director for nine years. You can reach him at [email protected], @dbstodder on Twitter, and on LinkedIn at linkedin.com/in/davidstodder. About TDWI TDWI, a division of 1105 Media, Inc., is the premier provider of in-depth, high-quality education and research in the business intelligence and data warehousing industry. TDWI is dedicated to educating business and information technology professionals about the best practices, strategies, techniques, and tools required to successfully design, build, maintain, and enhance business intelligence and data warehousing solutions. TDWI also fosters the advancement of business intelligence, analytics, and data management research and contributes to knowledge transfer and the professional development of its members. TDWI offers a worldwide membership program, six major educational conferences, topical educational seminars, role-based training, onsite and online courses, certification, solution provider partnerships, an awards program for best practices, live webinars, resource-filled publications, an in-depth research program, and a comprehensive website: tdwi.org. About the TDWI Best Practices Reports Series This series is designed to educate technical and business professionals about new business intelligence, analytics, and data management technologies, concepts, or approaches that address a significant problem or issue. Research for the reports is conducted via interviews with industry experts and leading-edge user companies and is supplemented by surveys of business and IT professionals. To support the program, TDWI seeks vendors that collectively wish to evangelize a new approach to solving problems or an emerging technology discipline. By banding together, sponsors can validate a new market niche and educate organizations about alternative solutions. To suggest a topic that meets these requirements, please contact TDWI senior research directors Fern Halper ([email protected]), Philip Russom ([email protected]), and David Stodder ([email protected]). Acknowledgments TDWI would like to thank the people who contributed to this report. First, we appreciate the many users who responded to our survey, especially those who agreed to our requests for phone interviews. Second, our report sponsors, who diligently reviewed outlines, survey questions, and report drafts. Finally, we would like to recognize TDWI’s production team: James Powell, James Haley, Peter Considine, Michael Boyda, and Denelle Hanlon. Sponsors Cambridge Semantics, Inc., Looker, Modemetric, Inc., SAP, SAS, Tableau Software, Unifi, and Zoomdata, Inc., sponsored the research and writing of this report. 2 Research Methodology and Demographics Research Methodology and Position IT/Business executives 39% Demographics Developers/Architects 33% Report purpose. Organizations need to accelerate the pace with which they Data scientists/analysts 13% can realize business value from data. The focus is on improving “time to Business sponsors/users 3% value,” which is the length of time it takes from the beginning of a project to Other 12% the delivery of anticipated business value. Today, as organizations grow more Industry reliant on data to support strategic and operational decision making, delays in Financial services 13% developing and implementing business intelligence and analytics are becoming Consulting/professional services 13% less tenable. TDWI finds that organizations are employing new technologies Manufacturing (noncomputers) 8% and practices to realize business value from data and analytics sooner. Government 8% Survey methodology. In March 2017, TDWI sent an invitation via email to the Healthcare 8% BI and data professionals in our database, asking them to complete an Internet- Software/Internet 6% based survey. The invitation was also posted online and in publications from Telecommunications 5% TDWI and other firms. The survey collected responses from 230 respondents. Insurance 5% From these, we excluded those who identified themselves as academics or Education 5% vendor employees. The resulting 224 responses form the core data sample for Other 29% this report. (Survey branching explains the varying number of respondents (“Other” consists of multiple industries, each per question.) represented by 3% of respondents or less.) Research methods. In addition to the survey, TDWI conducted telephone Geography interviews with technical users, business sponsors, and data management United States 54% experts. TDWI also received briefings from vendors that offer products related Europe 13% to the topic of the report. Canada 12% Mexico, Central/South America 7% Survey demographics. The majority of survey respondents are business or IT Australia/New Zealand 3% executives (39%), followed by developers and architects (33%), data scientists Africa 3% and analysts (13%), and business sponsors/users (3%). Asia 3% The financial services and consulting industries (13% each) dominate the Middle East 1% respondent population, followed by noncomputer manufacturing (8%), Other 4% government (8%), healthcare (8%), and other industries. Most survey respondents reside in the U.S. (54%), Europe (13%), or Canada (12%). Number of Employees Respondents come from enterprises of all sizes. 100,000 or more 10% 10,000–99,999 25% 1,000–9,999 34% 100–999 20% Fewer than 100 10% Don’t know 1% Company Size by Revenue Less than $100 million 18% $100–499 million 12% $500–999 million 6% $1–9.99 billion 28% $10 billion or more 16% Don’t know 9% Unable to disclose 11% Based on 224 respondents who completed every question in the survey. tdwi.org 3 Accelerating the Path to Value with Business Intelligence and Analytics Executive Summary Business stakeholders With decisions riding on the timeliness and quality of analytics, business stakeholders are fear that decisions based less patient with delays in the development of new applications that provide reports, analysis, on slow and outmoded and access to diverse data itself. Executives, managers, and frontline personnel fear that reporting and limited decisions based on old and incomplete data or formulated using slow, outmoded, and limited functionality will not reporting functionality will be bad decisions. A deficient information supply chain hinders quick be good decisions responses to shifting situations and increases exposure to financial and regulatory risk—putting a business at a competitive disadvantage. Stakeholders are demanding better access to data, faster development of business intelligence (BI) and analytics applications, and agile solutions in sync with requirements. Business stakeholders also want a higher return on investment (ROI) in BI, analytics, and data management. The power of information is not in question; rather, decision makers want more information
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