Successful Business Intelligence Second Edition Unlock the Value of BI & Big Data About the Author Cindi Howson is the founder of BI Scorecard (www.biscorecard.com), a resource for in-depth BI product reviews, and has more than 20 years of BI and management reporting experience. She advises clients on BI strategy, best practices, and tool selections; writes and blogs for Information Week; and is an instructor for The Data Warehousing Institute (TDWI). Prior to founding BI Scorecard, Cindi was a man- ager at Deloitte & Touche and a BI standards leader for a Fortune 500 company. She has an MBA from Rice University. Contact Cindi at [email protected]. About the Technical Editor Mark Hammond is a technology writer working in the IT field since 1998 with a focus on business intelligence and data integration. An award-winning journalist, Hammond serves as a contributing analyst to The Data Warehousing Institute and provides services to leading enterprise software companies. He can be reached at mfhammond@ comcast.net. Successful Business Intelligence Second Edition Unlock the Value of BI & Big Data Cindi Howson New York Chicago San Francisco Athens London Madrid Mexico City Milan New Delhi Singapore Sydney Toronto Copyright © 2014 by McGraw-Hill Education. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher, with the exception that the program listings may be entered, stored, and executed in a computer system, but they may not be reproduced for publication. ISBN: 978-0-07-180919-1 MHID: 0-07-180919-8 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-180918-4, MHID: 0-07-180918-X. E-book conversion by codeMantra Version 1.0 All trademarks are trademarks of their respective owners. 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Under no circumstances shall McGraw-Hill Education and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise. For Keith This page intentionally left blank Contents Preface xi Acknowledgments xv 1. BI and Big Data from the Business Side 1 Business Intelligence by Other Names 1 How Business Intelligence Provides Value 4 The Business Intelligence Market 11 Battle Scars 18 The Research 19 Best Practices for Successful Business Intelligence 24 2. Technobabble: Components of a Business Intelligence Architecture 27 Operational and Source Systems 28 Data Transfer: From Operational to Data Warehouse 31 The Data Warehouse 34 Data Warehouse Tables 37 The Data Warehouse Technology Platform 40 Big Data Technologies 45 Best Practices for Successful Business Intelligence 49 3. The Business Intelligence Front-End: More Than a Pretty Face 51 Utopia: Self-Service BI 52 Business Query and Reporting 53 Visual Data Discovery 56 Dashboards 60 Scorecards 62 Production Reporting 63 Mobile BI 64 Online Analytical Processing (OLAP) 65 Microsoft Office 68 Performance Management 69 Analytic Applications 71 Advanced and Predictive Analytics 72 vii viii Contents Big Data Analytics 73 Best Practices for Successful Business Intelligence 73 4. Measures of Success 75 Success and Business Impact 75 How to Measure Success 79 Measures of Success at Netflix 80 Measures of Success at Learning Circle 82 Measures of Success at Constant Contact 83 Return on Investment 85 Anecdotes of Hard Business Benefits 87 Number of Users 87 Other Measures of Success 92 Best Practices for Successful Business Intelligence 93 5. Catalysts for Success: The LOFT Effect 95 The Role of Luck 95 Opportunity 100 Frustration 109 Threat 113 The Role of Time 116 If There Is No LOFT Effect, Is Successful BI Still Possible? 117 Best Practices for Successful Business Intelligence 119 6. Executive Support and Culture 121 Executive Support and Success 121 Which Executive Is the Best Sponsor? 123 The Role of an Executive Sponsor 126 Getting and Keeping Executive Buy-In 128 Culture 131 Best Practices for Successful Business Intelligence 138 7. The Business–IT Partnership 139 Voices of Frustration . . . and Hope 139 The Business–IT Yin-Yang 141 Meet the Hybrid Business–IT Person 144 How to Be a Better Partner 146 Partnership and BI Success 149 Partnership at Netflix 150 Alignment 152 Best Practices for Successful Business Intelligence 155 8. D Is for Data 157 Data Breadth 158 Data Quality 159 Contents ix Successful Data Architectures 169 Master Data Management 171 Right-Time Data 175 Data Quality’s Chicken and Egg 178 Best Practices for Successful Business Intelligence 180 9. Relevance 181 Relevance Brings Clearer Vision 182 Relevance Improves Patient Care 183 Relevance for Teachers 188 The Role of Incentives 189 Personalization 190 Requirements-Driven BI 191 What to Do with Big Data 191 Best Practices for Successful Business Intelligence 193 10. Agile Development 195 Waterfall Development Process 195 Agile Development Techniques 201 Basic Concepts of Scrum 204 Agile Culture at Netflix 210 Medtronic: Agile for the Right Projects 211 Sharper BI at 1-800 CONTACTS 213 Best Practices for Successful Business Intelligence 213 11. Organizing for Success 215 Enterprise vs. Departmental BI 215 The BI Steering Committee 223 Business Intelligence Competency Centers (BICC) 224 The Best People 229 BI Team Leaders as Level 5 Leaders 230 Best Practices for Successful Business Intelligence 231 12. The Right BI Tool for the Right User 233 The Importance of BI Tools 236 The Role of BI Standardization 237 The Right Tool for the Right User 243 Characteristics for Defining User Segments 244 The Most Successful BI Module 252 Best Practices for Successful Business Intelligence 255 13. Other Secrets to Success 257 Innovation 257 Evangelizing and Promoting Your BI Capabilities 261 Training 268