W10_T1_S7 - Why Organizations Upgrade from Business Objects to MicroStrategy

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Business Objects Upgrade Program

Why Organizations Upgrade from

Business Objects to MicroStrategy

Presented by: Danya De León

Date: January 27th, 2010



Agenda

• Common Issues Facing Business Objects Customers

• MicroStrategy – A Quick Introduction

• Why Business Objects Customers Upgrade to MicroStrategy

• It is Easy to Upgrade to MicroStrategy

• Next Steps – Conversion Offering

2



Business Objects Customers Commonly Report 6 Major Problems in their Business Objects Implementations

1. Slow Performance – users wait a long time for data and documents to refresh

2. Missing Product Features – user features are offered unevenly across Business Object’s multiple tools and architectures

3. Difficult Migrations – Business Objects customers are subjected to many difficult migrations due to Business Object’s acquisition of many disconnected products

4. Declining Support and Increasing Maintenance Costs – SAP’s acquisition of Business Objects has dramatically lowered support quality and increased maintenance costs.

5. Uncertainty about Product Roadmap – Business Objects customers must manage through the elimination of some overlapping products and consolidation of others for a long time to come.

6. Difficult to Operate – Many disparate technologies involves lots of disparate servers and processes to manage.

3



Major Problems Reported by Business Objects Customers

4

Slow Performance – users wait a long time for data and documents to refresh

All data from BI Survey 8.

Missing Product Features – user features are offered unevenly across Business Object’s multiple tools and architectures



Major Problems Reported by Business Objects Customers

5

Declining Support and Increasing Maintenance Costs – SAP’s acquisition of Business Objects has dramatically lowered support quality and increased maintenance costs.

All data from BI Survey 8.

Difficult to Operate – Many disparate technologies involves lots of disparate servers and processes to manage.



Analysts Agree that Business Object Difficulties Will Not Get Better Anytime Soon

“SAP/Business Objects has a declared strategy to focus on metadata and product integration for the Business Objects acquisition, as opposed to rolling out new features”

“(Organizations should) realize that executing a vision of a unified BI platform and product portfolio will take many years with incremental changes to the product

portfolio”

“Individual products in the (BO) portfolio are at different levels of maturity and do not yet support the “one platform” vision”

6

The focus is on integration,

not innovation

It will take a long time to

integrate

Integration will be very

difficult to achieve



MicroStrategy Company Overview

7

Atlanta

Boston

Charlotte

Chicago

Dallas

Denver

Los Angeles

Montreal

New York

San Francisco

Buenos Aires

Mexico City

Monterrey

Sao Paulo

Barcelona

Brussels

Cologne

Copenhagen

Frankfurt

Johannesburg

Lisbon

London

Madrid

Milan

Munich

Paris

Rome

Stockholm

Utrecht

Melbourne

Seoul

Singapore

Sydney

Tokyo

Seattle

Tampa

Toronto

Washington

Vienna

Warsaw

Zurich

• Founded in 1989

• Largest independent public BI vendor (NASDAQ: MSTR)

• In the Gartner “Leader Quadrant” for BI Platforms

• Selected by Forbes as one of the 200 Best Small Companies in 2008

• Over 1 million business users at over 3,000 organizations

• Direct operations in 41 cities in 23 countries across the world

• Over 1,800 employees worldwide; 20% are dedicated to R&D

• Over 50 patents pending or issued for MicroStrategy software



MicroStrategy Widely Recognized as a Premier BI Software because of its Single Unified and Organic Architecture

8

All 5 Styles of BI

Plug-n-Play Modules

Unified Metadata

Browsers Portals OfficeMobileDesktop

UNIFIED WEB INTERFACE

Common Metadata

Common Security & Admin

Sco

reca

rds

&

Das

hb

oar

ds

Re

po

rtin

g

OLA

P

Ad

van

ced

A

nal

ysis

&

Ad

-ho

c

Ale

rts

&

Pro

acti

ve

No

tifi

cati

on

e-Mail

Unified User Interface

High Performance



Three Reasons Why Business Objects Customers Upgrade to MicroStrategy

9

IT Professionals Spend Far Less Time Maintaining Applications

Business People Can Make Better Decisions, Faster

Organizations Get More BI For Less Money



Why Business Objects Customers Upgrade to MicroStrategy?

1. Superior Dashboards for Deeper Business Insight

2. One Interface for Integrated Reporting, Dashboards and Analysis

3. Faster Performance for Speed of Thought Analysis

4. Greater Analytics to Answer the Toughest Business Questions

5. Greater End User Self-Service to Minimize Dependency on IT

10

Business People Make Better Decisions, Faster




1. Superior Dashboards Provide Deeper Business Insight

11

MicroStrategy Dynamic Dashboards Provide Much More Information and Better User Interactivity

DASHBOARD

Dynamic Dashboards have

full OLAP interactivity back

to the databases

Advanced Visualizations

make information much

more consumable

One Dynamic Dashboard

can replace dozens of

reports




2. One Interface for Integrated Reporting, Dashboards, Analysis

12

One Unified Architecture Delivers All Five Styles of BI

Scorecards &

Dashboards

Reporting

OLAP Analysis

(x)Advanced Analysis

& Predictive

Alerting &

Proactive

Notification




3. Faster Performance for Speed of Thought Analysis

13

Caching Technology Delivers Faster User Interactions and Faster Query Processing

Faster User Actions

• Sub-second response times using In-memory BI technology

• Dynamic multi-level caching

• Faster user interactions through extreme AJAX Web interface

Faster Query Processing

• Optimized and faster SQL

• Full 64-bit processing

Terabyte

Database

Cache

Hit

ROLAP

Query

In-memory

ROLAP Query

In-memoryROLAP Cubes

Cache Engine

AJAX Web Interface




4. Greater Analytics to Answer your Toughest Business Questions

14

Wider Range of Analytics Are Available and Can be Applied Even Down to the Transactional Level

An

alyt

ical

Inte

nsi

ty

Linear Regression Logistic Regression

Exponential Regression Cluster

Decision Tree

This Period vs. Last

Cumulative (QTD, YTD) Non-aggregatablemetrics

Moving Averages Weighted Avg. Exponential Avg.

Multiple Calendars

Multi-attribute Pivoting

X tabbing Pivot

Drilling Up/down Drilling Anywhere

Market Basket Analysis

Correlations

Normalization Normalization vs.

peers

Analyzing Static and Dynamic sets

Normalization Using Statistics and ratios

Lists

Sums

Count

Margins Count Distinct

Percent to Total

Subtotals

Relationship Analysis

Benchmarking

Projections

Trend Analysis

Data Summarization




5. Greater End User Self-Service

15

Business Users Can Create Their Own Reports, Faster

SharedReports

MyReportsSave New

Report Designs

Users can Create 100s of Reports from a Single Report Definition through Parameterized Reporting

1Saving New Report DesignsLets Any User Share New Information

3Automatic “Drill Anywhere” Allows Users to “Surf” to Entirely New Combinations of Data

2


Third Party Or Otherwise Use This Presentation For Any Purpose Other Than An Evaluation Of MicroStrategy's Business Or Its Offerings. Reproduction or Distribution Is Prohibited.16

Key BI Characteristics:

Evaluated:

BUSINESS OBJECTS

ORACLE

MICROSTRATEGY

Eliminated Multiple Interfaces and

Increased User Adoption by 300%

INDUSTRY: E-Commerce, Retail

BUSINESS USERS: ~ 6,000 users

BI COMPONENTS: 2,500+ Reports; 93,476 Schema

Objects

DATABASE: Teradata, 5 PB

APPLICATIONS: Customer Analysis: Relationship

Marketing

54+ applications

Challenges / Pains Faced with

Business Objects:

• Multiple user interfaces led to reduced adoption

• Excessive number of administrators

• Limited business analytics to track campaigns

Why was MicroStrategy Selected:

• MicroStrategy's “exceptional scalability“

• Eliminate multiple user interfaces; “One-Stop Shopping” for data

• Ability to support advanced reporting and analysis

• One of the Best with Teradata aware queries

• Enabled standardization on one BI tool

Benefits With MicroStrategy:

• Increased user adoption by 300%

• Replaced BO licenses with MicroStrategy licenses

• Provided analytical capacity to track online campaigns and marketing initiatives.

• Reduced time spent on managing servers by 60%

A Large Online

Shopping Website



Three Reasons Why Business Objects Customers Upgrade to MicroStrategy

17






Why Business Objects Customers Upgrade to MicroStrategy

18

1. Easier to Upgrade to Newer Versions

2. Less Time Spent on Administering Applications

3. Less Time Spent on Designing and Maintaining Reports

4. Far Better Customer and Technical Support




IT Professionals Spend Less Time Maintaining Applications

1. Easier to Upgrade to Newer Versions

19

MicroStrategy Upgrade Path

• 1 Product architecture

• One single shared metadata

• In-line product upgrades

88% of MicroStrategy Customers are on the Latest Version

8.09.0

7.57.0

6.x

8.1

REASONS WHY MICROSTRATEGY ISEASIEST TO MIGRATE

Organic Architecture

Single Metadata

Single Admin Architecture

Single Security Architecture

No Acquisitions

No Integrations

No Roadmaps

Business Objects Upgrade Path

• Many technology acquisitions

• Multiple product architectures and

metadatas

• Multiple migrations

44% of BO Customers are on the Latest Version

6.x

XI

XI 3.x

XI + SAP ?

XI-R2




2a. Less Time Spent on Administering Applications

Automatic Monitoring

Enterprise Manager Enables analysis of database usage, report usage, user statistics, and trends to facilitate performance tuning and resource planning.

Automatic Testing

Integrity Manager Enables automated validation testing for data and report integrity across the business intelligence ecosystem .

Automatic Administration

Command Manager Provides a script-based interface to reduce administration and rapidly adjust to system changes. Object Manager provides an intuitive interface for synchronizing departmental BI with enterprise BI.

1

2

4

3

Automatic Support

Health Center Collects logs and diagnostic information to suggest system changes and improve collaboration with MicroStrategy technical support.




2b. Less Time Spent on Administering Applications

1. User and group creation

2. Administration (create, rename, change ACLs)

3. Project load in a cluster environment

4. Auditing of all user activity

5. Daily integrity testing of thousands of reports

6. Object migration from Dev to Prod

7. Cache creation of the top 100 reports

8. Regression testing

21

Business Objects MicroStrategy

MANUAL

MANUAL

SEMI-MANUAL

SEMI-MANUAL

MANUAL

SEMI-MANUAL

SEMI-MANUAL

MANUAL

List of Administrative and Maintenance Tasks

AUTOMATIC

AUTOMATIC

AUTOMATIC

AUTOMATIC

AUTOMATIC

AUTOMATIC

AUTOMATIC

AUTOMATIC




3. Less Time Spent on Designing and Maintaining Reports

22

IT Creates a Single Parameterized Report

1

BO 1:1 leverage between number of reports IT

creates and number of reports users consume

MicroStrategy leverages 25:1 number of reports IT

creates and number of reports users consume

One Single Report to Design

and Maintain

Users Create New Reports by Picking Metrics and Attributes

2 Automatic Personalization Customizes the Data for Each User

3

25x Magnification with ROLAP “Object Prompting”

User can pick any metrics to seeU

ser

can

pic

k an

y at

trib

ute

s to

see

100x Magnification with Automatic Personalization

HR

Sales

Marketing

Finance

Ops

Sr. Exec Exec Sr. Mgmt Mgmt Staff




4. Far Better Customer and Technical Support

23

Vendor Support Rating

3 3,2 3,4 3,6 3,8 4 4,2 4,4

MicroStrategy

SAS

Microsoft

IBM Cognos

SAP

Oracle

SAP Business Objects

“MicroStrategy’s strong technology and customer support distinguish it in the market”




• Reduced report development and QA time by 6X

• Reduced number of required developers by 30%

• Eliminated redundancies

• Easier of maintenance of security roles

• Reduced total time for regression testing


Business Objects:

• Too many IT employees required for maintenance

• Poor data scalability

• Multiple interfaces reduced user adoption

• Lack of sophisticated calculations

• Decision making delayed

INDUSTRY: Online Information, Retail

BUSINESS USERS: 1,500+

BI COMPONENTS: 33,500 Reports; 19,600 Metrics

DATABASE: Oracle; 100+ TB

APPLICATIONS: Marketing Analysis

Merchandise AnalysisTransportation ManagementWarehouse Management

Key BI Characteristics:

Evaluated:

BUSINESS OBJECTS

ORACLE

MICROSTRATEGY

Why MicroStrategy Selected:

• Enabled standardization on one BI tool

• Easier to maintain existing applications and develop new applications – 3 people managing MicroStrategy instead of 10 people with BO

• Centralized and reusable metadata

• Robust security model

Developers can produce 6X more

reports than before

A Worldwide Internet

Services Provider



Why Business Objects Customers Upgrade to MicroStrategy

25

IT Professionals Spend Less Time Deploying Applications






IT Personnel Costs Dominate the TCO of Business Intelligence

26

71% of 3-year TCO is directly attributable to IT Personnel

• 60% Staffing• 8% IT Staff Training• 3% Outsourced Costs

Staffing 60%

Software 7%

Server Hardware 7%

IT Staff Training 8%

Downtime-User Productivity 15%

Outsourced Costs 3%

Typical 5-Year BI TCO for 1,000 Users

BI Software

IT Personnel

BI Hardware

After 5 years, TCO is dominated by personnel costs

Software and hardware costs are minimal

Tota

l Co

sts

($M

)

$0,0

$0,5

$1,0

$1,5

$2,0

$2,5

$3,0

$3,5

$4,0

$4,5

$5,0

$5,5

Year 1 Year 2 Year 3 Year 4 Year 5

IDC 2007




MicroStrategy Requires the Fewest Number of IT Personnel

27

BI Technologies Vary Widely in the Amount of IT Support Needed

IBI

Oracle

Business Objects

SAS

Cognos

Microsoft

BI TechnologyStaff Required Compared to

MicroStrategy

54% more

60% more

66% more

111% more

142% more

146% more




Business Objects Costs VS MicroStrategy Costs

28

Time of Ownership (Years)

1,000 Users

5,000 Reports

1 Server

MicroStrategy Requires the Fewest Number of IT Personnel and Hardware

1 2 3 4 5

$0

$1.0 M

$2.0 M

$3.0 M

$4.0 M

$5.0M

$6.0M

Time of Ownership (Years)

IT Personnel

BI Hardware

Software

1 2 3 4 5

$2.0MSavings

Business Objects Costs of Ownership

MicroStrategy Costs of Ownership



Evaluated:

BUSINESS OBJECTS

ORACLE

MICROSTRATEGY

MicroStrategy is Cheaper to Own than

Business Objects


Business Objects:

• High administration costs due to a non-integrated architecture

• Business Objects required too much IT involvement to build and maintain reports

• Hard to use interface and weak ad hoc and self-service capabilities.

Why was MicroStrategy Selected:

• Cheaper to own than Business Objects. Ease of administration and deployment. User autonomy in creating and sharing (less dependence on IT)

• Superior platform: scalability, zero-footprint interface, requires less hardware to run

• Superior SQL engine, performance

• Support for advanced analytics


• Replaced BO licenses with MicroStrategy licenses

• Increased adoption of internal applications, through MicroStrategy’s fast modeling and deployment capabilities

• Improved analysis of reports through datamining and drill anywhere at scale

INDUSTRY: Government

BUSINESS USERS: 1500 +

BI COMPONENTS: Reports; and Documents

DATABASE: Oracle, 1.5+ TB; Sybase IQ

APPLICATIONS: Human Resources Applications:

- Employees details

- Employees mobility analysis

- Employees remuneration

Large European Mail

Services Company



Agenda


• MicroStrategy – An Introduction




30



There are Two Basic Conversion Approaches

MicroStrategy has participated in dozens of conversions and learned that there are two basic conversion approaches

31

Approach 1:

DirectConversion

Approach 2:

OptimizedConversion

Work:

• Re-create Business Objects Universes as MicroStrategy schema directly

• Re-create the Business Objects reports as MicroStrategy reports

Result:

• Faster conversion of small environments

• Does not take advantage of some MicroStrategy features (e.g., Prompting)

Work:

• Detailed report analysis to eliminate report redundancies

• Re-create the Business Objects reports as MicroStrategy reports

• Revise data model for higher performance

Result:

• More efficient environment that fits requirements and makes better use of

MicroStrategy strengths

• More robust, scalable and easier to administer



Conversion Approach 1: Direct Conversion80% of the Work Can Be Reused, But it is Not Optimized

32

Identify Sources of Data –

10%

Design / Refine Data

Model – 15%

Set Up ETL and Data

Cleansing – 35%

Tune Warehouse – 10%

Create Universes – 5%

Establish Report/

Dashboard Specs-10%

Re-create Schema – 5%

Cumulative Effort to

Establish the Business

Objects Environment

Incremental Effort to

Convert to MicroStrategy

Convert BO Universes

Convert BO Reports

Create: WebI, DeskI,

Xcelsius, and Crystal

Report - 15%

Re-create Reports &

Dashboards – 15%


10%


Model – 15%

Set Up ETL and Data

Cleansing – 35%


Establish Report/

Dashboard Sepcs-10%

reuse

reuse

reuse

reuse

reuse

Cum

ula

tive E

ffort

Reuse of prior investment is 80%





Report - 13%


Conversion Approach 2: Optimized ConversionData and Reports are Optimized for MicroStrategy Performance and Economies of Scale

33


10%

Set Up ETL and Data

Cleansing – 35%


Create Universes – 5% Schema Re-creation – 5%

Cumulative Effort to

Establish the Business

Objects Environment

Incremental Effort to

Optimize and Convert to

MicroStrategy

Convert BO Universes


10%


Model – 10%

Set Up ETL and Data

Cleansing – 35%

Establish Report/

Dashboard Sepcs-10%

reuse

reuse

reuse

reuse

Cum

ula

tive E

ffort

Re-create Reports &

Dashboards – 2 %

Report Review and Re-

design– 5%

Redesign Some Reports

Create More Powerful

MicroStrategy Reports

Optimize Data Model– 5%Optimize Data Model



Report - 15%


Model – 15%

Establish Report/

Dashboard Specs-10%

Reuse of prior investment is 83%

End-result is an Optimized MicroStrategy Environment



Conversion Effort Can Be Completed in Weeks

• The consulting factory is 100% dedicated to conversions

• Business Objects experts that have participated in dozens of conversions, and have gained:

– Deep understanding of Business Objects applications

– Developed proven practices for successful upgrades

Dedicated Conversion Factory

Conversion Tools

• Conversion Utilities – Help speed up the conversion process and reduce human errors

• Conversion Savings Calculator – Estimates total conversion savings



Conversion Effort Can Be Completed in Weeks

35

Conversion Size System Sizing Timeframe Challenges

Small Conversion

• 1 Universe• 50 WebI Reports (Basic

Complexity)• 1 Data source

• 2 FTEs• 8 Weeks

• None

Medium Conversion

• 10 Universes• 500 WebI Reports (Basic –

Medium Complexity)• 5 Data sources

• 4 FTEs• 14 weeks

• Rationalizing replicated reports and objects

Large Conversion

• 50 Universes• 2,000 WebI Reports (Basic

– High Complexity)• 10 Data sources

• 7 FTEs • 18 weeks

• Consolidating overlapping Universes



Agenda


• MicroStrategy – A Quick Introduction




36



Next Steps – Conversion Offering

Business Objects Conversion Offering

What is a Business Objects Conversion Offering?

• Let us demonstrate to you how we can convert your Business Objects applications into MicroStrategy through a POC

• What to expect from the POC:

– A Business Objects universe converted to MicroStrategy

– New reports and dashboards

– … all in 3-5 days.

• What do we need to successfully perform the POC:

– Access to the Business Objects universe (instead of an ERD diagram)

– Access to the data source

37



Next Steps

1. Do a Conversion Cost Analysis

2. Talk to the Analysts about the benefits of MicroStrategy

3. Talk to a Customer who has Converted to MicroStrategy

38

Conversion Savings Calculator