BICG Buy vs Build

8/12/2019 BICG Buy vs Build

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1.1 OverviewThe following project comparisons

are meant to serve as a guideline for or-

ganizations involved in the selection

process with Oracle, and who are consid-

ering purchasing the pre-built analytic

applications (which contain pre-written

ETL, data models, and metadata reposi-

tories) versus building custom datamartsor a data warehouse against operational

applications from Oracle including Ora-

cle E-Business Suite (EBS), PeopleSoft,

Siebel, JD Edwards, and similar systems.

BI Consulting Group has completed

more than 250 OBI EE projects, with

slightly more than half of those based

upon the pre-built applications from

Oracle. Its been our experience that the

pre-built analytic applications from Ora-

cle typically meet at least 70% - 80% of

EBS, PeopleSoft, Siebel, or JD Edwards

customers data needs, which results in a

dramatic reduction in the level of effort

required to deploy a DW and BI solution

on top of those systems. To put this in

real terms, our cost and duration esti-

mates for building custom datamarts

against Oracle EBS, Peoplesoft, Siebel, or

JD Edwards run at least 2.5 to 3.5 times

our estimates for deploying the pre-built

applications. And, thats for a team that

knows the data models of Oracle EBS,

PeopleSoft, Siebel, or JD Edwards inti-

mately the estimates would be signifi-

cantly higher (or the result significantly

lower) for a team not familiar with those

operational data models.

The most common question that

arises when organizations are investigat-

ing a deployment of the pre-built applica-

tions versus a custom developed data

warehouse, is "how can applications that

are 'generically' designed, work for my

organization"? That's actually an easyanswer, and follows the 80/20 rule. Afterbuilding and deploying more than 300

data warehouses, we've reached the con-

clusion that for a given subject area (for

example, Financial Analytics) 80% or

more of the average data warehouse isbased upon non-unique content. This

content is typically the same regardless of

whether your business creates pharma-

ceuticals, flies airplanes, or makes hard

drives.

Data elements such as Address-

Field1, ZipCode or AccountID

might have different names from business

to business, but those non-unique fields

take up the vast majority of development

time during the average data warehouse

project. Its the last 15% - 20% of devel-

opment that makes the unique differences

between industries, as well as the differ-

ences in business strategies from company

to company, even if those businesses sell

the same types of products to the same

types of customers.

BI CONSULTING GROUP WHITEPAPER VERSION 2.0 FY08

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1.1OVERVIEWThis whitepaper explores the

relative pros and cons of

deploying pre-built analytic

applications from Oracle versus

building a custom data

warehouse against Oracle

E-Business Suite (EBS),

PeopleSoft, Siebel, JD Edwards or

Similar Systems

1.2DEPLOYMENT OFPREBUILTAPPLICATIONSAGAINST EBS,PEOPLESOFT, SIEBEL, JDEDWARDS OR SIMILARSYSTEMSProject Schedule and Milestones

for Deployment of Pre-Built

Applications against EBS,

PeopleSoft, Siebel, or JD

Edwards

1.3DEPLOYMENT OFPREBUILTAPPLICATIONSAGAINST A NON-ORACLE BACKENDProject Schedule and Milestones

for Deployment of Pre-Built

Applications against a non-

Oracle backend

1.4CUSTOM WAREHOUSEBUILD AGAINST EBS,PEOPLESOFT, SIEBEL, JDEDWARDS OR SIMILARSYSTEMSProject Schedule and Milestones

for Custom Warehouse Build

against EBS, Peoplesoft, Siebel, JD

Edwards or Similar Systems

Oracles Pre-Built Analytic ApplicationsVersus Building a Custom Warehouse

0

500

1,000

290

925

17 weeks 34 Weeks

Buy Build

Aver

PersDays

Project Duration

Cost Estimates of deploying Custom Datamartstypically run 2.5 to 3.5 times the Cost Estimates

of deploying pre-built applications.

Copyright 2007, BI Consulting Group, LLC. All rights reserved. No part of this material may be reproduced, stored in a retrieval system or transmitted by anymeans, electronic, mechanical, photocopy, recording or otherwise, without written permission from the authors.


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Why have Pre-Built Analytic

Applications Historically Failed?The Theory behind pre-built analytic applications has been

around for a number of years, but nearly all have failed to deliver.

Traditional BI vendors have attempted to either package pre-built

metadata, mapped directly to the operational tables of CRM,

ERP, HR and other systems (including Oracle E-Business Suite,Siebel, PeopleSoft, JD Edwards and SAP); or, theyve attempted to

write a small number of extracts to move that data into some

form of datamart or data warehouse. Historically, these attempts

have failed for two reasons. First, using the approach of mapping

directly to these operational systems failed for the simple fact that

theyve skipped one of the most important steps of business intel-

ligence, namely the data warehouse. Those BI vendors glossed

over that fact by using names like Siebel Adaptor or Oracle

EBS Connector, and conveniently ignored 20 years of data

warehouse best practices.

This style of pre-built application failed on two fronts. First,

they simply couldnt provide the performance required of a BIapplication against these operational systems (and also brought

many mission critical applications to their knees), and at best, they

mapped a minor subset of all possible metrics, KPIs and report-

able attributes. The second approach taken by these traditional

BI vendors had a glimmer of hope, since they attempted to follow

the more accepted approach to business intelligence, namely

building a datamart or data warehouse on top of these opera-

tional systems, using an industry accepted ETL tool, and the de-

sign and development of one or more star-schemas. While good

in theory, the only BI vendor who was able to deliver on this

promise, was the only BI vendor who also happened to be a CRM

vendor, namely Siebel Systems (and now Oracle). Reasons vary

why other BI vendors failed, but the greatest reason might also be

the simplest, which was a lack of investment. Building a true data

warehouse against a complex operational system takes time and

money. Siebel was able to make this investment, while other BI

vendors were not.

Where is the real value of

Pre-Built Analytic Applications?When it comes to pre-built analytic applications, all is not

equal when it comes to the value from each component. The

diagram to the upper right is a close approximation of the contri-

bution that each component typically has to individual projects.

For example, if the entire pre-built stack adds 100% value in a

completely vanilla environment against a known backend system

such as Oracle EBS, then only 20% - 30% must be made up if the

pre-built analytic stack is pointed to a backend system not sup-

ported by the out-of-the-box extracts. In real world terms, that

means that if Oracle Financial Analytics (which has extracts writ-

ten for Oracle E-Business Suite and PeopleSoft) was pointed in-

stead to a non-EBS or PeopleSoft backend, the additional work

required, might be no more than 20% - 30% added to the project.

Again, in real world terms, if a "typical" deployment requires 20

weeks, then a deployment requiring an Extract Layer to be devel-

oped might mean a 26 week project.

These percentages can be used to easily calculate a series of

indexes to compare

different types of

projects. For example,

if an index of 1.0 is

given to a project that

deploys one of the

pre-built analytic

applications against a

backend system where

100% of the compo-

nents above can be

used in their vanilla

state (such as Finan-

cial Analytics againsta typical implementa-

tion of Oracle E-

Business Suite), then a factor of 1.1 can be used for a project

where 50% of the Extracts must be modified (for example, a de-

ployment of Financial Analytics against a highly customized de-

ployment of Oracle E-Business Suite), and a factor of 1.2 can be

used when deploying one of the pre-built analytic applications

against a backend system where an extract layer has not yet been

written by Oracle engineers.

Whats the gain using Pre-Built

Applications versus BuildingCustom?

As described in the introduction to this whitepaper, the typi-

cal gain in projects which use the pre-built analytic applications

from Oracle, versus those that do not, is the difference of a factor

of 2.5 or 3.5 to 1. The diagram below demonstrates visually the

differences, and levels of effort typically applied to each compo-

nent of the application.

BI CONSULTING GROUP WHITEPAPER VERSION 2.0 FY08

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As-

sump-

tions

!This scope

and level of

effort is based

upon a de-

ployment of

the OBI EE

BI CONSULTING GROUP WHITEPAPER FY08

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PROJECT

METHODOLOGY

STAGE 1.0PROJECT INITIATIONSTAGE

STAGE 2.0DISCOVERY STAGE

STAGE 3.0DESIGN STAGE

STAGE 4.0BUILD STAGE

STAGE 5.0TESTING ANDVALIDATION STAGE

STAGE 6.0DEPLOY STAGE

STAGE 7.0MAINTENANCE ANDSUPPORT STAGE

Project MethodologyFor all projects, BI Consulting Group employs the following custom methodology which was written specifically for Oracle BI Enterprise

Edition projects. The methodology defines a seven stage process, with inputs (materials and information provided by the customer), tasks,

deliverables, and training recommendations identified at each stage.

Comparison of Project TypesIn the graphic below, we have summarized the relative level of effort typically required for

several different projects based upon the buy model (using Oracles pre-built analytic applications),

and have compared that to a build project (a project that requires the development of a data

warehouse built from scratch, against Oracle EBS, PeopleSoft, Siebel, JD Edwards or similar

systems). Details for each project type are outlined in the following pages, including a sample

timeline, duration of each stage in the project, typical team sizes, and typical assumptions.

Project Type

Buy

Build

1.2 Deployment of Pre-Built Applications against EBS, PeopleSoft, Siebel, or JD Edwards

1.3 Deployment of Pre-Built Applications against a non-Oracle backend

1.4 Custom Warehouse Build against EBS, PeopleSoft, Siebel, or JD Edwards

75 person weeks of effort





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Assumptions

! This scope and level of effort is based upon a

deployment of the OBI EE Platform using one or more of

the pre-built applications, against an operational application

supported by the pre-built applications, such as Oracle EBS,

PeopleSoft, Siebel or JD Edwards.

! This scope and level of effort assumes that the

operational application has a typical number of

customizations and/or re-purposed data elements.

! This scope and level of effort is based upon 3 4

subject areas, and 40 50 reports, however, using BICGs

best practices design of reports and Dashboards, each

report module will have multiple views and selections,

resulting in dozens of permutations for each report.

Team Requirements

! Team Leader/OBI EE Architect

! BA/OBI EE Designer

! ETL Lead


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1.2 PROJECT SCHEDULE AND MILESTONES FOR DEPLOYMENT OF PRE-BUILT

APPLICATIONS AGAINS T EBS, PEOPLESOFT , SIEBEL OR JD EDWARDS


The duration below is based upon a 17 week project with three weeks of post production support. This timeline

sample is based upon the deployment of up to 3 - 4 subject areas across up to three Analytic applications (such

as Finance, HR, Supply Chain, etc.).


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Assumptions


deployment of the OBI EE Platform using one or more of

the pre-built applications, against an operational application

not supported by the pre-built extracts.

! This scope and level of effort assumes that the

operational application is in a relational data source, and that

the data model is available, and that data stewards exist to

understand the location of pertinent tables and fields.



best practices design of reports and Dashboards, each

report module will have multiple views and selections,


Team Requirements


! BA/OBI EE Designer

! ETL Lead

! ETL Developer


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1.3 PROJECT SCHEDULE AND MILESTONES FOR DEPLOYMENT OF PRE-BUILT

APPL ICATIONS AGAINST A NON-ORACLE BACKEND

The duration below is based upon a 19 week project with three weeks of post production support. This timeline

sample is based upon the deployment of up to 3 - 4 subject areas across up to three Analytic applications (such

as Finance, HR, Supply Chain, etc.).



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Assumptions


deployment of the OBI EE Platform and the development of

a custom datamart / data warehouse, against a back office

system, such as Oracle EBS, PeopleSoft, Siebel, JD Edwards

or similar systems.



best practices design of reports and Dashboards, eachreport module will have multiple views and selections,


Team Requirements


! BA / OBI EE Designer

! ETL Lead

! ETL Developers (2)


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1.4 PROJECT SCHEDULE AND MILESTONES FOR CUSTOM WAREHOUSE BUILD

AGAINST EBS, PEOPLESOFT , SIEBEL , JD EDWARDS OR SIMILAR SYST EMS

The timeline sample below is based upon a 34 week project with six weeks of post production support,

assessment, and planning for Phase II.

Copyright 2007, BI Consulting Group, LLC. All rights reserved. No part of this material may be reproduced, stored in a retrieval system or transmitted by ameans, electronic, mechanical, photocopy, recording or otherwise, without written permission from the authors.


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About BI Consulting Group

BI Consulting Group (BICG) is Oracles largest consulting partner founded on Oracle BI

Enterprise Edition (OBI EE, formerly Siebel Business Analytics) and winner of Oracles

FY2007 Most Valuable BI Partner award. Our current track record includes more than

250 OBI EE projects, with more than 120 deployments of Oracles pre-built Analytic

Applications. Our staff comes direct from the Business Analytics division at Siebel and

Oracle, or from Enterprise Edition customers where they have lived and breathed Enterprise

Edition for years.

The average experience of our staff is 5+ years working on Enterprise Edition

implementations, and more than ten years in Business Intelligence and Data Warehousing.All that, and were still 100% referenceable.

BI Consulting Group provides our clients with experienced Enterprise and data

warehousing consultants who provide a variety of consulting services for the design,

development, deployment and maintenance of Oracle BI applications. These services

include project management; requirements development and application design; metadata

development; report and Dashboard design and development; data warehouse design and

development; ETL development; and Training through BICG University.


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HIGHLIGHTS

! Oracles largest consulting partner

dedicated exclusively to Oracle BI

EE with nearly 60 OBI EE experts

in the U.S.

! Collectively completed more than

250 Oracle BI Enterprise Edition

projects and more than 300 data

warehouses and datamarts.

! Average consultant has 5+ years

of Oracle BI Enterprise Edition

experience, and more than 10

years of BI/DW experience.

! Every customer is referenceable

including those who had previous

failures with other consulting

firms.

! Experts at both stand alone

implementations and deployments

of the Pre-Built AnalyticApplications from Oracle including

Financial Analytics, HR Analytics,

Supply Chain Analytics, and CRM

Analytics.

! BICG University teaches 10 key

OBI EE courses.

Please contact us at [email protected] we can be of any assistance in your

selection process.

Best regards,

Michael Martin

President, BI ConsultingGroup

Copyright 2007, BI Consulting Group, LLC. All rights reserved. No part of this material may be reproduced, stored in a retrieval system or transmitted by anmeans, electronic, mechanical, photocopy, recording or otherwise, without written permission from the authors.

Contact Us

Email: [email protected]

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Eagan, MN 55122

www.biconsultinggroup.com
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BICG Buy vs Build