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Monday, February 1, 2010
Tuesday, January 19, 2010
Help save $3.39 billion on BI wastage
Companies have a potential to directly save $3.39 billion annually on BI investments and potentially save $13.4 billion on future safeguards
i.e. this is
- Can accomplish an Appolo moon launch in 7 years
- Can build 3 tallest buildings in the world at Dubai costing
- Can build the eitire Dubai downtown in 6 years
- Can launch 3 dreamliners size new projects in aerospace technology
And we do this every year and will continue to do this for the following years if we dont stop and listen...
Background:
Reference 1
1966 total cost of the Appolo mission = $24 billion. This represents the largest commitment of resources made by any nation during peace time for peaceful purposes.
Reference 2
2009: total cost of building the Boeing dreamliner US$ 1billionReference 3
2010: total cost of building the worlds tallest building, Burj Dubai, UAE $1.0 billion.
For the entire Dubai downtown US$ 20 billion
Basis of above statements:
Global DW Costs2008: total spend on BI = $8.8 billion (Source Gartner June 2010)
total spend on BI Implementation = $7.54 billion (source SAP, teched, 1:7 ratio)
total spend on BI SW = $1.26 billion (1:7 ratio)
2006: only 52 % of ERP projects achieve success at go live (source ASUG Benchmark)
40% of IT projects fail at $ (source Gartner)
Average failure rate = 45% (random computation of above)
45% of $7.54 billion computes to a cool $3.39 billion.
Kicker: It costs 4 times more to fix a BI issues than it does the first time around.
Our tactical saving is $3.39 billion, the strategic saving might be $13.5 billion. That is how much it will cost you to fix these $3.39 billion errors (1:4)
when did you last check your BI expenses, i.e. your initial investments v/s total fixing spend.
Not from a financial Cost and resource allocation... but from a 'Business Value Attainment' view
i.e. this is
- Can accomplish an Appolo moon launch in 7 years
- Can build 3 tallest buildings in the world at Dubai costing
- Can build the eitire Dubai downtown in 6 years
- Can launch 3 dreamliners size new projects in aerospace technology
And we do this every year and will continue to do this for the following years if we dont stop and listen...
Background:
Reference 1
1966 total cost of the Appolo mission = $24 billion. This represents the largest commitment of resources made by any nation during peace time for peaceful purposes.
Reference 2
2009: total cost of building the Boeing dreamliner US$ 1billionReference 3
2010: total cost of building the worlds tallest building, Burj Dubai, UAE $1.0 billion.
For the entire Dubai downtown US$ 20 billion
Basis of above statements:
Global DW Costs2008: total spend on BI = $8.8 billion (Source Gartner June 2010)
total spend on BI Implementation = $7.54 billion (source SAP, teched, 1:7 ratio)
total spend on BI SW = $1.26 billion (1:7 ratio)
2006: only 52 % of ERP projects achieve success at go live (source ASUG Benchmark)
40% of IT projects fail at $ (source Gartner)
Average failure rate = 45% (random computation of above)
45% of $7.54 billion computes to a cool $3.39 billion.
Kicker: It costs 4 times more to fix a BI issues than it does the first time around.
Our tactical saving is $3.39 billion, the strategic saving might be $13.5 billion. That is how much it will cost you to fix these $3.39 billion errors (1:4)
when did you last check your BI expenses, i.e. your initial investments v/s total fixing spend.
Not from a financial Cost and resource allocation... but from a 'Business Value Attainment' view
Friday, January 15, 2010
New Movie release and BI Initiatives
Success of a BI initiative is very similar to the release of a new movie.
It does not matter how fast or how much you spent on making the movie, but how it does in the first two weeks.
Very like a BI project the life of the movie is defined in these first few weeks – mega hit, will make a profit, will make a loss, few might see it, or a flop.
However, the major difference is due to the lack of public, or shareholder, inputs we often declare a flop as a success for various reasons and then spend the next few years trying to turn around our so-so movie into a success.
In BI this is possible. In strategic planning this is avoidable
Coming from over 9 years of Sr. business management experience and over 25,000 hours of working with BI customer in a business facing, lead, project manager, architect, and modeler the contents of this book are concepts you can work with starting next Monday.
We have identified the lack of a methodology to explicitly identify and prioritize the Attainment of Business Value in BI initiatives.
So when your BI project goes live its success is announced on week 1 and often users stop using part, or all, of the BI delivered in 10-12 weeks.
Use this book to assure a mega hit first time, every time
It does not matter how fast or how much you spent on making the movie, but how it does in the first two weeks.
Very like a BI project the life of the movie is defined in these first few weeks – mega hit, will make a profit, will make a loss, few might see it, or a flop.
However, the major difference is due to the lack of public, or shareholder, inputs we often declare a flop as a success for various reasons and then spend the next few years trying to turn around our so-so movie into a success.
In BI this is possible. In strategic planning this is avoidable
Coming from over 9 years of Sr. business management experience and over 25,000 hours of working with BI customer in a business facing, lead, project manager, architect, and modeler the contents of this book are concepts you can work with starting next Monday.
We have identified the lack of a methodology to explicitly identify and prioritize the Attainment of Business Value in BI initiatives.
So when your BI project goes live its success is announced on week 1 and often users stop using part, or all, of the BI delivered in 10-12 weeks.
Use this book to assure a mega hit first time, every time
Heard it through the grapevine
http:/bivaluenomics.blogsport.com
Background: 2010_Customer in Boston undertaking Portal Upgrade, via the migration option. Discussion was whether to migrate MyFavourite objects or not. IT said no need as there was a lot of junk there; my advice was to ask business before they take any such decisions..
Statement from IT Technical lead: "I don't see any value in getting business owners to analyst into this planning phase for they will only raise concerns and delay the whole process. This is my final decision - end of topic.
=============
Background: 2008_Customer in Florida undertaking a BI 'Business Transformation' upgrade from 2.x to 3.x. Meeting for all global BPO's (I represented BI) with the Sr Project Manager clarifying the roadmap.
Statement from Vendor Partner Sr. VP: " You all represent XXXX (us).....for BI group the instructions are extremely clear. [1] Business is not mature to understand what we are going to build; [2] No BI team member is to fix any meeting with business users or owners without first getting approval from John Doe; [3] If you involve business it will only delay our project nad deliverables; [4] You have been given your tasks, just put your nose to the wheel and do the job, if in doubt contact John Doe only.......
+++++++++++++
Background: 2006_Customer is a global manufacturer with a global BI in Germany. They are implementing their first BI for North America operations.
IT Manager (ITM): The other two vendors said most of our reporting needs will be met by standard content in BW that meets best practices. They even let us speak to a customer each who said great things about their BI. They both said they can start next week and have given firm timelines and budgets for our needs. We need FI, SD and MM reports. We are a manufacturing company.
XX: I am assuming the information they had is identical to what we have. In that case I cannot compete with companies that can provide you a solution without understanding your needs.
ITM: Explain
XX: Have you talked to Germany about Standards
ITM: No
XX: Do you have a copy of your global deployment policies and processes
ITM: No
XX: Have you talked to Germany about this project
ITM: No
XX: I would first advice you co-ordinate with Germany and have your PM go to Germany or Germany come to the US for a week or two to align standards & Processses
--
XX: Have you identified what the deliverables for the project are
ITM: The other two vendors both confirmed that what they could deliver was more than we would ever need.
XX: Do you have any complex cross-application reports that are critical to business
ITM:L I can think of two daily reports that take over 10 hours to run
XX: Do you want them to run in under 10 minutes
ITM: That woudl be fantastic
XX: Here is my recommendation. You talk to Germany about our proposal, and the lack of this request from the other two vendors hopefully. Then We align to global standards and discuss all your reporting needs. We then priritize what will come best from your BI and what from your operational systems. Simple as that.
One week later customer signed the contract and 6 months later customer achieved over 92% customer satisfaction. Measures were
1. Met your expectations of reports being delivered
2. Reports met your needs
3. Reports business could use from day 1 as a percentage of total reports delivered.
(p.s. the 10 hour report ran in under 10 minutes)
===============================================
Background: 2010_Customer in Boston undertaking Portal Upgrade, via the migration option. Discussion was whether to migrate MyFavourite objects or not. IT said no need as there was a lot of junk there; my advice was to ask business before they take any such decisions..
Statement from IT Technical lead: "I don't see any value in getting business owners to analyst into this planning phase for they will only raise concerns and delay the whole process. This is my final decision - end of topic.
=============
Background: 2008_Customer in Florida undertaking a BI 'Business Transformation' upgrade from 2.x to 3.x. Meeting for all global BPO's (I represented BI) with the Sr Project Manager clarifying the roadmap.
Statement from Vendor Partner Sr. VP: " You all represent XXXX (us).....for BI group the instructions are extremely clear. [1] Business is not mature to understand what we are going to build; [2] No BI team member is to fix any meeting with business users or owners without first getting approval from John Doe; [3] If you involve business it will only delay our project nad deliverables; [4] You have been given your tasks, just put your nose to the wheel and do the job, if in doubt contact John Doe only.......
+++++++++++++
Background: 2006_Customer is a global manufacturer with a global BI in Germany. They are implementing their first BI for North America operations.
IT Manager (ITM): The other two vendors said most of our reporting needs will be met by standard content in BW that meets best practices. They even let us speak to a customer each who said great things about their BI. They both said they can start next week and have given firm timelines and budgets for our needs. We need FI, SD and MM reports. We are a manufacturing company.
XX: I am assuming the information they had is identical to what we have. In that case I cannot compete with companies that can provide you a solution without understanding your needs.
ITM: Explain
XX: Have you talked to Germany about Standards
ITM: No
XX: Do you have a copy of your global deployment policies and processes
ITM: No
XX: Have you talked to Germany about this project
ITM: No
XX: I would first advice you co-ordinate with Germany and have your PM go to Germany or Germany come to the US for a week or two to align standards & Processses
--
XX: Have you identified what the deliverables for the project are
ITM: The other two vendors both confirmed that what they could deliver was more than we would ever need.
XX: Do you have any complex cross-application reports that are critical to business
ITM:L I can think of two daily reports that take over 10 hours to run
XX: Do you want them to run in under 10 minutes
ITM: That woudl be fantastic
XX: Here is my recommendation. You talk to Germany about our proposal, and the lack of this request from the other two vendors hopefully. Then We align to global standards and discuss all your reporting needs. We then priritize what will come best from your BI and what from your operational systems. Simple as that.
One week later customer signed the contract and 6 months later customer achieved over 92% customer satisfaction. Measures were
1. Met your expectations of reports being delivered
2. Reports met your needs
3. Reports business could use from day 1 as a percentage of total reports delivered.
(p.s. the 10 hour report ran in under 10 minutes)
===============================================
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