<![CDATA[
<html>
<head>
<meta name="copyright" content="Copyright (c) Accela Communications 2002.">
<link href="../abwc.css" rel="stylesheet" type="text/css" title="default">
<script language="JavaScript">
var textloaded = false;
</script>
<script language="javascript">
var isNew = 0;
var isNS4 = 0;
var isIE4 = 0;
var isFirst = 1;
var prevElem = "none";
</script>
<script language="javascript1.2">
var brow = ((navigator.appName) + (parseInt(navigator.appVersion)));
if (parseInt(navigator.appVersion) >= 5)
isNew = 1;
else if (brow == "Netscape4")
isNS4 = 1;
else if (brow == "Microsoft Internet Explorer4")
isIE4 = 1;
</script>
<script language="javascript">
if (isNS4 || isIE4 || isNew)
{
docObj = (isNS4) ? 'document' : 'document.all';
styleObj = (isNS4) ? '' : '.style';
}
</script>
<script language="javascript">
function makeBold(currElem)
{
dom = eval(docObj + '.' + currElem + styleObj);
if (!isFirst)
prevDom = eval(docObj + '.' + prevElem + styleObj);
state = dom.fontWeight;
if (state == "normal")
{
dom.fontWeight = "bold";
if (!isFirst)
prevDom.fontWeight = "normal";
}
isFirst = 0;
prevElem = currElem;
}
function changeBGcolor(currElem)
{
dom = eval(docObj + '.' + currElem + styleObj);
if (!isFirst)
prevDom = eval(docObj + '.' + prevElem + styleObj);
state = dom.backgroundColor;
if (state != "#cccccc")
{
dom.backgroundColor = "#cccccc";
if (!isFirst)
prevDom.backgroundColor = state;
}
isFirst = 0;
prevElem = currElem;
}
</script>
</head>
<body onLoad="textloaded = true" bgcolor="#ffffff" text="#000000" link="#000000" alink="#000000" vlink="#000000" topmargin=10 leftmargin=20 marginheight=0 marginwidth=0>
<table cellspacing=0 cellpadding=0 border=0>
<tr><td height=35> </td><td valign=top><a name="0"></a>
<p><div style="rightcol1" id="id0">
<a href="javascript:top.videoFrame.seek(0)">
..........</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="34200"></a>
<p><div style="rightcol1" id="id34200">
<a href="javascript:top.videoFrame.seek(34200)">
Hi, I'm Bill Laberis and I'll be your host for this webcast.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="38267"></a>
<p><div style="rightcol1" id="id38267">
<a href="javascript:top.videoFrame.seek(38267)">
In many ways, business intelligence is the manifold expression of information technology done right. If decision makers have the tools to turn Everest-sized mountains of data into useful business information, they just might do something better and faster than the competition because they know the market more astutely; or perhaps something better for their customers because they understand customer behavior better.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="62100"></a>
<p><div style="rightcol1" id="id62100">
<a href="javascript:top.videoFrame.seek(62100)">
It probably goes without saying that the quality of data to be analyzed is essential to the integrity of the analysis. Today, many people think that the quality of data is synonymous with the immediacy of that data. That is, real-time data and real-time business intelligence underlies success.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="80333"></a>
<p><div style="rightcol1" id="id80333">
<a href="javascript:top.videoFrame.seek(80333)">
Is this true? To some extent, it doesn't matter what you think because many influential people in upper management believe that there is no substitute for real-time business intelligence.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="91500"></a>
<p><div style="rightcol1" id="id91500">
<a href="javascript:top.videoFrame.seek(91500)">
So it's time to ask some important questions. For starters, what the heck is real-time business intelligence? What kind of management challenges does real-time business intelligence pose for you people in IT management? What lessons are users learning as they muddle their way through the often choppy seas of early implementations of real-time business intelligence?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="113333"></a>
<p><div style="rightcol1" id="id113333">
<a href="javascript:top.videoFrame.seek(113333)">
We're going to tap the minds of two brilliant analysts and long-time IT watchers to probe these and other key questions around the push to achieve real-time business intelligence. Let's go and meet them right now.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="125833"></a>
<p><div style="rightcol1" id="id125833">
<a href="javascript:top.videoFrame.seek(125833)">
Shy, reticent, unopinionated. Those words and Maryfran Johnson have absolutely nothing in common, I assure you. In fact, she's one of the more opinionated and intelligent observers of the IT world, and she's also Editor in Chief of Computerworld.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="142567"></a>
<p><div style="rightcol1" id="id142567">
<a href="javascript:top.videoFrame.seek(142567)">
Henry Morris is group vice president of applications and information access at IDC, and also a long-time and astute observer of IT. Henry, Maryfran, welcome to you both.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="152933"></a>
<p><div style="rightcol1" id="id152933">
<a href="javascript:top.videoFrame.seek(152933)">
Henry, let's start with you. What is real-time business intelligence and why should people in the IT community even care about it?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="160167"></a>
<p><div style="rightcol1" id="id160167">
<a href="javascript:top.videoFrame.seek(160167)">
There is a lot of talk about real-time business intelligence. Let's kind of unpack what that really means.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="166867"></a>
<p><div style="rightcol1" id="id166867">
<a href="javascript:top.videoFrame.seek(166867)">
Business intelligence is the ability to analyze trends, changes to business conditions. Real-time business intelligence would be the ability to monitor, analyze and respond in an almost instantaneous fashion to changes in business conditions.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="184033"></a>
<p><div style="rightcol1" id="id184033">
<a href="javascript:top.videoFrame.seek(184033)">
And, the thing about that is, when you start looking at that, the ability to respond in a near-instantaneous fashion tells you a little something about when real-time business intelligence at least should be a goal. Because, obviously, if you can't respond in a near-instantaneous fashion, why do you need to monitor and analyze in a very compressed time frame?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="206867"></a>
<p><div style="rightcol1" id="id206867">
<a href="javascript:top.videoFrame.seek(206867)">
So this is sort of like the Dr. Spock generation in IT, where we want instant gratification. Is this part of what's pushing real-time business intelligence, the perception of the need to know immediately, and the need to act on immediate data?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="222533"></a>
<p><div style="rightcol1" id="id222533">
<a href="javascript:top.videoFrame.seek(222533)">
Interesting point. You talk about the Dr. Spock type thing, I think of IT getting younger all the time. Maybe we're talking about the MTV generation wanting instant gratification on what they're seeing, like MTV business intelligence.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="235100"></a>
<p><div style="rightcol1" id="id235100">
<a href="javascript:top.videoFrame.seek(235100)">
But I think there are some important business reasons to compress the lag from when you're capturing information, when you're able to analyze it and then respond to those changes.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="246800"></a>
<p><div style="rightcol1" id="id246800">
<a href="javascript:top.videoFrame.seek(246800)">
And, I think in today's business environment, it's a lot more fast-paced, and particularly with the Web, business being conducted over the Web, you have the ability to change the conditions, to change the rules, change pricing, change offers, in a much more rapid fashion than, say, you could during a time when you sent out a mailing by direct mail once a quarter to your customers.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="267400"></a>
<p><div style="rightcol1" id="id267400">
<a href="javascript:top.videoFrame.seek(267400)">
Couldn't change that regularly, but you can change your offers on the Web almost instantaneously. And that provides the lead-in to being able to do that intelligently, which is where BI comes in.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="277700"></a>
<p><div style="rightcol1" id="id277700">
<a href="javascript:top.videoFrame.seek(277700)">
Business at the speed of light, as some rich guy said in a book recently. How does real-time business intelligence differ, say, from vertical market to vertical market or business to business, conceptually?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="287433"></a>
<p><div style="rightcol1" id="id287433">
<a href="javascript:top.videoFrame.seek(287433)">
Well, at IDC we kind of pioneered the concept of analytic application. We like to try to look at business intelligence from an application and a vertical industry perspective.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="295767"></a>
<p><div style="rightcol1" id="id295767">
<a href="javascript:top.videoFrame.seek(295767)">
Think about what differentiates one industry from another. It's the way they produce and deliver their products and services. So there are applications that are particular to that industry that govern that.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="305733"></a>
<p><div style="rightcol1" id="id305733">
<a href="javascript:top.videoFrame.seek(305733)">
Let's say you're a transportation company. There are applications that help you understand how to deploy your equipment, say like a railroad or an airline, deploying the equipment, perhaps in response to changes to weather or types or other conditions. They need to be able to make that kind of response quickly.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="322833"></a>
<p><div style="rightcol1" id="id322833">
<a href="javascript:top.videoFrame.seek(322833)">
For a bank, fraud detection is an important application that has some real-time consequences. I want to be able to respond in a real-time fashion before I let a particular transaction going through.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="334200"></a>
<p><div style="rightcol1" id="id334200">
<a href="javascript:top.videoFrame.seek(334200)">
So, if you start thinking about what it is that an industry has to do in its core operations that have this kind of timely fashion to it, and for which you could actually change your behavior in almost real-time fashion, that will lead you to those applications. And many industries will have applications like that.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="355333"></a>
<p><div style="rightcol1" id="id355333">
<a href="javascript:top.videoFrame.seek(355333)">
So what you're saying is that it is different from industry to industry conceptually. What about some of the key IT issues that are swirling around managing real-time business intelligence?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="365333"></a>
<p><div style="rightcol1" id="id365333">
<a href="javascript:top.videoFrame.seek(365333)">
Well, I think real time is a challenge for business intelligence and for IT. When you think about the data warehousing world where business intelligence is often allied with that and IT is often managing this resource, bringing information in from multiple systems so that you can analyze information about your customer.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="385033"></a>
<p><div style="rightcol1" id="id385033">
<a href="javascript:top.videoFrame.seek(385033)">
I gave the example of transportation, a railroad, analyzes where each piece of equipment is at a given point in time. The thing about it though is that you need to be able to not only bring this information together, you're making some kind of decisions.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="400333"></a>
<p><div style="rightcol1" id="id400333">
<a href="javascript:top.videoFrame.seek(400333)">
You need to bring that information to your operations in a very rapid fashion. So, it's not just information coming into the data warehouse, it's getting that information to users and being able to enable users to make decisions and then respond by putting those decisions in effect in your operations.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="420500"></a>
<p><div style="rightcol1" id="id420500">
<a href="javascript:top.videoFrame.seek(420500)">
Let's say you were a retailer, and imagine that you had, instead of, like fixed prices, you know, next to every item on your shelf, you had a pricing system that had electronic pricing shelves.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="432367"></a>
<p><div style="rightcol1" id="id432367">
<a href="javascript:top.videoFrame.seek(432367)">
So, I could have the ability to make those types of changes, the ability to deliver the decisions in terms of the prices back to the operational system in a kind of closed-loop fashion is really the challenge and the ability to do this, not just on our schedule, on our time, on a schedule basis, but in response to events. We detect an important change.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="453267"></a>
<p><div style="rightcol1" id="id453267">
<a href="javascript:top.videoFrame.seek(453267)">
Time to bring that information, say, into a data warehouse, analyze it and then quickly deliver new rules, new operational principles, into our business systems. That typically is beyond what people had envisioned for data warehousing.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="468033"></a>
<p><div style="rightcol1" id="id468033">
<a href="javascript:top.videoFrame.seek(468033)">
So it's not just getting the information, it's then acting upon it. Maryfran, you're as close to the user community as anybody that I know. Anything you'd add to some of these challenges that real-time business intelligence is bringing to the IT community?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="483200"></a>
<p><div style="rightcol1" id="id483200">
<a href="javascript:top.videoFrame.seek(483200)">
Yes, and a lot of the things that Henry was saying are absolutely going on in user applications these days. But, one of the key issues I think that arises is the need to have a connection with the business requirements.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="497867"></a>
<p><div style="rightcol1" id="id497867">
<a href="javascript:top.videoFrame.seek(497867)">
The companies that are getting the best value out of their business intelligence tools and out of their data warehouses tend to be able to parse the kind of data that is really needed from the business side as well.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="511233"></a>
<p><div style="rightcol1" id="id511233">
<a href="javascript:top.videoFrame.seek(511233)">
So there has to be teamwork going on, essentially, between the people who are intensively interested in cleansing the data, and making sure it's available, and then the business users that have to do something with it.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="521933"></a>
<p><div style="rightcol1" id="id521933">
<a href="javascript:top.videoFrame.seek(521933)">
So to make sure when you deliver the data, that someone actually wants it.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="525267"></a>
<p><div style="rightcol1" id="id525267">
<a href="javascript:top.videoFrame.seek(525267)">
Well, yes. And, the more planning that is done ahead of time, and the more figuring out, 'Well, how do we take data coming into our call center and information that we have about customer preferences,' for instance, and roll that into some statistics that sales people in the field can use immediately.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="541467"></a>
<p><div style="rightcol1" id="id541467">
<a href="javascript:top.videoFrame.seek(541467)">
This is where some of the real-time aspects come in as well, being able to take information, especially from Web sites that is very close to real-time and turn it around quickly so that it enables, maybe something like an improvement in the supply chain, or something on the logistics side, or a customer sale that the connection wouldn't have been made before.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="561133"></a>
<p><div style="rightcol1" id="id561133">
<a href="javascript:top.videoFrame.seek(561133)">
This may come as a surprise to you, but not everything in IT is perfect. Let's take a look at the underside of business intelligence applications. What are some of the pitfalls that some of your users that you're in touch with have observed?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="573333"></a>
<p><div style="rightcol1" id="id573333">
<a href="javascript:top.videoFrame.seek(573333)">
Well, the biggest issue almost always when we survey IT managers and IT users are integration issues.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="580133"></a>
<p><div style="rightcol1" id="id580133">
<a href="javascript:top.videoFrame.seek(580133)">
So, a BI tool, for instance, that does not fit well into an existing data warehouse or perhaps a customer relationship management, a CRM system, integration problems in getting the right data in the right place at the right time, often dominates. So, that's usually the No. 1 problem.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="599333"></a>
<p><div style="rightcol1" id="id599333">
<a href="javascript:top.videoFrame.seek(599333)">
Can users know a priori if these things fit? I suppose they should know, but can they know?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="604067"></a>
<p><div style="rightcol1" id="id604067">
<a href="javascript:top.videoFrame.seek(604067)">
I think they can if the process provides for the business requirements and the available data to be evaluated ahead of time, before it actually starts getting plugged into the system.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="615533"></a>
<p><div style="rightcol1" id="id615533">
<a href="javascript:top.videoFrame.seek(615533)">
Case studies that you're aware of, particular cases of real-time business intelligence that's in use today that come to mind?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="625900"></a>
<p><div style="rightcol1" id="id625900">
<a href="javascript:top.videoFrame.seek(625900)">
Well, there's one that I think is particularly interesting because it's the way...</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="629567"></a>
<p><div style="rightcol1" id="id629567">
<a href="javascript:top.videoFrame.seek(629567)">
It was Southwest Airlines, actually, found a way to combine a business intelligence tool with their ERP system and also use some online analytical processing to generate worst-case scenarios as we entered the financial downturn after the Sept. 11 attacks.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="647367"></a>
<p><div style="rightcol1" id="id647367">
<a href="javascript:top.videoFrame.seek(647367)">
Southwest took this combination of tools and were able with their business analysts to be able to answer questions like, 'How fast would we burn through our cash if employment continued to decline and if we had less business?'</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="662267"></a>
<p><div style="rightcol1" id="id662267">
<a href="javascript:top.videoFrame.seek(662267)">
And they discovered when they went back and looked at some of the information they generated that they were within 1 or 2% of the actual operational realities that were going on. So, it was a very impressive use of a BI tool to help generate 'what if' scenarios.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="676700"></a>
<p><div style="rightcol1" id="id676700">
<a href="javascript:top.videoFrame.seek(676700)">
I think it's good to point out here that Southwest Airlines continued to make money right through thick and thin.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="682167"></a>
<p><div style="rightcol1" id="id682167">
<a href="javascript:top.videoFrame.seek(682167)">
And one of the things they credited was the use of business intelligence in this way.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="686633"></a>
<p><div style="rightcol1" id="id686633">
<a href="javascript:top.videoFrame.seek(686633)">
That's great. Well are there some lessons, thematically, that come from the users you've encountered who are using business intelligence tools that maybe point to some trends or some themes?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="698400"></a>
<p><div style="rightcol1" id="id698400">
<a href="javascript:top.videoFrame.seek(698400)">
I think that a lot of the themes seem to center around the importance of that team relationship with the business and the IT side. There are also the data and where it comes from.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="712333"></a>
<p><div style="rightcol1" id="id712333">
<a href="javascript:top.videoFrame.seek(712333)">
Whether you're getting the data from a third-party source or whether you're generating it from your own Web site, there are important considerations about how clean and how useful and how well architected it may be to use in your own data warehouse.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="724100"></a>
<p><div style="rightcol1" id="id724100">
<a href="javascript:top.videoFrame.seek(724100)">
So clearly, the more stuff that comes from without the organization, the greater the potential for issues with getting access and then utilizing that information as part of your business intelligence operations?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="736500"></a>
<p><div style="rightcol1" id="id736500">
<a href="javascript:top.videoFrame.seek(736500)">
Yes, this is particularly true with retailers. I think of companies like Krispy Kreme Doughnuts, for instance, uses an external data source that comes from their tens of thousands of grocery stores and retail outlets that sell the doughnuts.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="762500"></a>
<p><div style="rightcol1" id="id762500">
<a href="javascript:top.videoFrame.seek(762500)">
And they have scanner data that they are able to use to track which products are moving better and where some of the lost inventory is showing up, and that sort of thing.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="771600"></a>
<p><div style="rightcol1" id="id771600">
<a href="javascript:top.videoFrame.seek(771600)">
Henry, in your experience at IDC, are there types of applications that require real-time business intelligence? And I guess the flipside is, are there some applications that perhaps don't need it?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="787500"></a>
<p><div style="rightcol1" id="id787500">
<a href="javascript:top.videoFrame.seek(787500)">
When we look at business intelligence we tend to divide it up by the types of applications that use them. Financial-type applications, applications related to customers and applications related to products.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="799200"></a>
<p><div style="rightcol1" id="id799200">
<a href="javascript:top.videoFrame.seek(799200)">
The last example Maryfran gave about her favorite doughnut company, in that case, looking at the scanner data, the point of sale data, that was a very good use of that type of data in terms of being able to get information that helped them refine their products, their product strategies.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="819233"></a>
<p><div style="rightcol1" id="id819233">
<a href="javascript:top.videoFrame.seek(819233)">
Because they're getting information at the grain of what SKUs, what particular goods were sold. A lot of times, retailers don't have the information coming off the point of sale data that enables them to differentiate what one particular customer is buying versus another.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="834467"></a>
<p><div style="rightcol1" id="id834467">
<a href="javascript:top.videoFrame.seek(834467)">
Some retailers on the other hand have loyalty cards and a better way to stamp each transaction with that customer identifier. That's another class of applications that tries to discriminate one set of customers from another.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="847467"></a>
<p><div style="rightcol1" id="id847467">
<a href="javascript:top.videoFrame.seek(847467)">
A lot of the issues, and Maryfran talked about data quality, in some cases just the data isn't there at that level or it's of such poor quality that you can't do that type of analysis.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="856867"></a>
<p><div style="rightcol1" id="id856867">
<a href="javascript:top.videoFrame.seek(856867)">
But, in terms of which applications require the real-time perspective, I think a lot of the ones that reflect the actual production of the products, the supply-chain type examples, because interruptions can happen in a supply chain, and you need to make real adjustments.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="872600"></a>
<p><div style="rightcol1" id="id872600">
<a href="javascript:top.videoFrame.seek(872600)">
On the other side, the ability to do a financial analysis that helps me, say, understand how to put a budget together, that's not a real-time thing, that's a process that goes on probably for several months,</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="887667"></a>
<p><div style="rightcol1" id="id887667">
<a href="javascript:top.videoFrame.seek(887667)">
there's a lot of analysis involved, but we don't have those real-time fluctuations in it. CRM is another interesting example. Some of them don't require real time, like the direct-mail catalog marketing.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="899767"></a>
<p><div style="rightcol1" id="id899767">
<a href="javascript:top.videoFrame.seek(899767)">
Very sophisticated analytics goes into it, but you're not making real-time discriminations. You have time to plan the campaign, manage the list and decide where to send the information.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="909033"></a>
<p><div style="rightcol1" id="id909033">
<a href="javascript:top.videoFrame.seek(909033)">
On the other hand, to bring in business intelligence into a call center, where you receive inbound calls, and you're actually not just handling the call, but making offers and recommendations to customer, which is a big change of role for people in the call center, that would require real-time application of business intelligence.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="925033"></a>
<p><div style="rightcol1" id="id925033">
<a href="javascript:top.videoFrame.seek(925033)">
So, it really depends. I think the real discriminator is if you had information faster how quickly could you act on it? And if you can act on information in a near-instantaneous fashion, and continue to revise the way you are doing your business, who you extend offers to and when.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="942333"></a>
<p><div style="rightcol1" id="id942333">
<a href="javascript:top.videoFrame.seek(942333)">
That's a good candidate for real time. If you don't have that capability to act or you make your decisions every week, then real time does not become as interesting.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="950733"></a>
<p><div style="rightcol1" id="id950733">
<a href="javascript:top.videoFrame.seek(950733)">
Pick up a little bit, Maryfran, on the relationship between business intelligence and CRM. Because CRM has taken it on the chin a lot lateley, probably as much for poor planning and implementation rather than anything wrong inherently with the tools and technologies. But this relationship between business intelligence and CRM, because CRM is still a very big initiative in the organizations today.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="969400"></a>
<p><div style="rightcol1" id="id969400">
<a href="javascript:top.videoFrame.seek(969400)">
It's an initiative, too, that a lot of companies have spent a great deal of money on. It's similar to the ERP (the Enterprise Resource Planning) applications, the big rollouts of SAP, Baan and Oracle and so forth.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="982033"></a>
<p><div style="rightcol1" id="id982033">
<a href="javascript:top.videoFrame.seek(982033)">
The CRM people don't want to say there's a relationship there, although I agree with you that there probably is.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="985500"></a>
<p><div style="rightcol1" id="id985500">
<a href="javascript:top.videoFrame.seek(985500)">
What we are seeing increasingly are customer sites where they're using BI tools, particularly ones that are Web-enabled and built with certain data format standards in them.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="995400"></a>
<p><div style="rightcol1" id="id995400">
<a href="javascript:top.videoFrame.seek(995400)">
For instance, they're using them as a connector, as a better way to integrate some of the information that comes from a CRM system or perhaps from a back-end ERP system. And I was thinking too as Henry was describing examples of one about retaining customers and increasing customer loyalty.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1012700"></a>
<p><div style="rightcol1" id="id1012700">
<a href="javascript:top.videoFrame.seek(1012700)">
This is one good use of real-time, fast turnaround information. A company you may remember, do you remember Green Stamps from the '50s and '60s? Sperry & Hutchinson?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1022833"></a>
<p><div style="rightcol1" id="id1022833">
<a href="javascript:top.videoFrame.seek(1022833)">
Well, S&H now is an example of using analytics online and in real time because now it's the Green Points program and they work directly with a whole variety of retailers and they're using it in online retailing situations to build customer loyalty, and do it very quickly -- to turn around information within a couple of hours, if necessary, and get feedback to the various vendors and retailers they actually work with.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1050467"></a>
<p><div style="rightcol1" id="id1050467">
<a href="javascript:top.videoFrame.seek(1050467)">
That's an interesting point because back in the '50s and '60s and whenever Green Stamps were in their heyday and we had to lick the stamp and put it in the book, you wouldn't need real-time business intelligence because it wasn't a real-time operation.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1060967"></a>
<p><div style="rightcol1" id="id1060967">
<a href="javascript:top.videoFrame.seek(1060967)">
But as soon as you move the business to the online environment and can start making changes in the way that S&H is interacting with the customer, that brings us on the impetus to real time.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1072400"></a>
<p><div style="rightcol1" id="id1072400">
<a href="javascript:top.videoFrame.seek(1072400)">
The examples you both are choosing too, transporting people on Southwest Airlines, making doughnuts, Green Points, shows the flexibility to which business intelligence tools may be used to help the organization out, perhaps even significantly.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1090167"></a>
<p><div style="rightcol1" id="id1090167">
<a href="javascript:top.videoFrame.seek(1090167)">
Another good point Bill, too, is the way companies, especially the very large companies, are able to take just a few percentage gains in efficiencies and translate them into really serious dollars.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1101033"></a>
<p><div style="rightcol1" id="id1101033">
<a href="javascript:top.videoFrame.seek(1101033)">
I think of the way Delta Airlines keeps track -- and a number of airlines do this -- where they use business intelligence tools in their data warehouses to pull in a lot of different information about fuel prices.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1111367"></a>
<p><div style="rightcol1" id="id1111367">
<a href="javascript:top.videoFrame.seek(1111367)">
For Delta, we did one story about this, they're trying to keep their costs under 77 cents per gallon for their jet fuel and they're able to do this with up to 25 different sources of information</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1126933"></a>
<p><div style="rightcol1" id="id1126933">
<a href="javascript:top.videoFrame.seek(1126933)">
that come from reservations agents, from people selling gas, from various conglomerates. And they pull it into one data warehouse and they use BI tools to parse it and sort it out and figure out the best places to fuel up their planes. They literally save millions of dollars by doing that.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1143100"></a>
<p><div style="rightcol1" id="id1143100">
<a href="javascript:top.videoFrame.seek(1143100)">
It goes back to the bottom line, such as it is in the airlines today, but it is a savings. For either one of you, anything that you can recommend or that your experience tells you is a sort of a list of best practices for IT managers approaching business intelligence?</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1158067"></a>
<p><div style="rightcol1" id="id1158067">
<a href="javascript:top.videoFrame.seek(1158067)">
Well I think the example that Maryfran just gave us of Delta Airlines, I think what it shows you is they have a data warehouse, they have the infrastructure set up, but they're focused on a particular application that provides value where the information will make a difference because there are some actions they can take,</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1175633"></a>
<p><div style="rightcol1" id="id1175633">
<a href="javascript:top.videoFrame.seek(1175633)">
what supplier they go in for jet fuel. We're concluding a study on the analytics, the return on investment for analytics projects. We don't have all the results in yet</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1186800"></a>
<p><div style="rightcol1" id="id1186800">
<a href="javascript:top.videoFrame.seek(1186800)">
but what we're seeing is companies that focus on a very particular application, say an application would be built on a data warehouse-- but not building generic data warehouse to handle any and all questions that might come in, but actually where you have certain user requirements in mind.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1202067"></a>
<p><div style="rightcol1" id="id1202067">
<a href="javascript:top.videoFrame.seek(1202067)">
You understand what the pain points are. I want to be able to drive more efficiency in my fuel costs. Another case of a railroad wanting to be better able to track where their equipment were, not just to be able to redistribute them, but so they could better understand what taxes they have to pay for being in a particular state rather than another.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1222933"></a>
<p><div style="rightcol1" id="id1222933">
<a href="javascript:top.videoFrame.seek(1222933)">
Before, when they estimated -- I think it was Burlington Northern-Sante Fe railroad -- rather than trying to estimate that, and usually they gave a high estimate, they had all the information that they needed to report to those governments and found they were able to reduce their taxes. Now they have an enterprise warehouse, they have many applications, but they focused on a particular application.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1242967"></a>
<p><div style="rightcol1" id="id1242967">
<a href="javascript:top.videoFrame.seek(1242967)">
So the ability to get user requirements, decide on initial applications and then successive applications that will ultimately leverage the same platform is the way to go, rather than thinking about 'lets build this enterprise warehouse, bring all the information together and then let's convince users to use it.' That definitely does not work.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1261167"></a>
<p><div style="rightcol1" id="id1261167">
<a href="javascript:top.videoFrame.seek(1261167)">
So start with the requirements.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1262867"></a>
<p><div style="rightcol1" id="id1262867">
<a href="javascript:top.videoFrame.seek(1262867)">
Start with the requirements and look for a particular application that will have value and then put the metrics in place so that you can measure the return that you are getting.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1272600"></a>
<p><div style="rightcol1" id="id1272600">
<a href="javascript:top.videoFrame.seek(1272600)">
Because we find many of these projects under financial scrutiny. There isn't the patience to wait, say, three years until we've built the data warehouse. You want to show results quickly.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1280967"></a>
<p><div style="rightcol1" id="id1280967">
<a href="javascript:top.videoFrame.seek(1280967)">
On the other hand, you don't want to build each application without thinking of the applications that you will need further. Something like CRM that you talked about. CRM can have many implications across the company.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1291067"></a>
<p><div style="rightcol1" id="id1291067">
<a href="javascript:top.videoFrame.seek(1291067)">
But you may want to start with one area, say the execution of your marketing campaigns. Then look at the tracking of leads, then look at the call center -- one thing after another rather than everything at once.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1301733"></a>
<p><div style="rightcol1" id="id1301733">
<a href="javascript:top.videoFrame.seek(1301733)">
And that ability to be able to do a project that is a little more targeted and less expensive than rolling out something like a large ERP system or a big CRM system.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1313633"></a>
<p><div style="rightcol1" id="id1313633">
<a href="javascript:top.videoFrame.seek(1313633)">
The IT managers and executives we're talking to these days are finding that if they can talk about the ROI of it and make it sensible in business terms, essentially, to the executive committee, they can explain how they're turning data that they already have into more actionable information that is going to help the in the field. And it makes sense on a common sense level.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1336833"></a>
<p><div style="rightcol1" id="id1336833">
<a href="javascript:top.videoFrame.seek(1336833)">
But a lot of times if IT people are the ones all by themselves driving a move to a business intelligence system or a particular tool that may not work out as well because they may be assuming that an ordinary business analyst or user is going to becomes a power user and able to do heavy analytics.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1355933"></a>
<p><div style="rightcol1" id="id1355933">
<a href="javascript:top.videoFrame.seek(1355933)">
So sometimes there is an assumption of too much power-user capability on the business side, which can trip up different projects. That's one of the best practices is why getting involved with the business users early on and making sure that they have the kind of data that needs to be provided to the system in the first place.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1376733"></a>
<p><div style="rightcol1" id="id1376733">
<a href="javascript:top.videoFrame.seek(1376733)">
Well, and training too, I would imagine, which costs money, I suppose, but that has to be factored into the cost. But I think even after all that, from what you're both saying, is a fairly strong ROI statement that can be made to cost justify these new investments, provided, as you've both pointed out, that there is a good link between, 'this is technology as a means to an end' and the end is making this business run better.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1399800"></a>
<p><div style="rightcol1" id="id1399800">
<a href="javascript:top.videoFrame.seek(1399800)">
That's the very interesting thing about this. If the initiative is just started by IT and then they bring in the users later, that's just not going to work.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1406700"></a>
<p><div style="rightcol1" id="id1406700">
<a href="javascript:top.videoFrame.seek(1406700)">
On the other hand, if users try to go around IT often they're frustrated because they can't bring in the information they need, they don't understand the technical requirements.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1414633"></a>
<p><div style="rightcol1" id="id1414633">
<a href="javascript:top.videoFrame.seek(1414633)">
We're finding in a number of these analytics projects that we're looking at, there is often an individual, called the owner or sponsor of the application. It's usually not an IT person, though in some cases it could be the CIO. And it's not necessarily the ultimate end user of the system, could be an area manager, could be the CFO, could be the marketing director.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1436633"></a>
<p><div style="rightcol1" id="id1436633">
<a href="javascript:top.videoFrame.seek(1436633)">
And that person becomes kind of the interface bringing the users and IT together and also making the connection to the appropriate level of management to see that the project is approved and authorized.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1450100"></a>
<p><div style="rightcol1" id="id1450100">
<a href="javascript:top.videoFrame.seek(1450100)">
So this kind of individual, I don't know what you would call it -- the project sponsor or owner -- I think is an important individual in being able to evangelize the need for the project, to get the appropriate buy-in and to keep it on track.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1464967"></a>
<p><div style="rightcol1" id="id1464967">
<a href="javascript:top.videoFrame.seek(1464967)">
One of the trends we're seeing in leading companies is establishing a BI competency center because it's very rare for any company to use just one business intelligence tool or to have just one type of benefit out if it.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1478733"></a>
<p><div style="rightcol1" id="id1478733">
<a href="javascript:top.videoFrame.seek(1478733)">
Often if there is, for instance, a successful program where maybe they've put data on the Web and all their sales people can access it better, they start realizing how they can use some of that information back from the field in their call center, for instance.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1491233"></a>
<p><div style="rightcol1" id="id1491233">
<a href="javascript:top.videoFrame.seek(1491233)">
So it usually generates a need to have multiple tools and that comes back to the integration issue where you have to be sure that whatever tools you bring in are meeting corporate standards.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1501733"></a>
<p><div style="rightcol1" id="id1501733">
<a href="javascript:top.videoFrame.seek(1501733)">
So the whole notion.... A lot of this is just really IT governence 101, where you want to have processes in place and good methodologies to bring a tool into the organization and to make sure it fits within a structure that has already had some thought behind it, and thought not just from the IT side, but also from the various business units that are going to be deeply involved in using the information.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1524500"></a>
<p><div style="rightcol1" id="id1524500">
<a href="javascript:top.videoFrame.seek(1524500)">
Well, Maryfran Johnson from Computerworld, and a long-time friend and associate, great to have you here. And Henry Morris, Group Vice President at IDC, thank you for joining us.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1534233"></a>
<p><div style="rightcol1" id="id1534233">
<a href="javascript:top.videoFrame.seek(1534233)">
I trust you found the information that Henry and Maryfran provided on real time business intelligence to be helpful hopefully and relevant to what you are doing day-to-day in your work.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1543467"></a>
<p><div style="rightcol1" id="id1543467">
<a href="javascript:top.videoFrame.seek(1543467)">
Before we leave today, I want to direct your attention to a couple of additional resources, one of which are the sponsors that you see here on your player. Please click on any of them to find a lot more information about real-time business intelligence.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1554633"></a>
<p><div style="rightcol1" id="id1554633">
<a href="javascript:top.videoFrame.seek(1554633)">
Additionally, we have a separate resources area in your player where you'll find a number of URLs you can click on and click through to yourself navigate for more information on real-time business intelligence.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1565533"></a>
<p><div style="rightcol1" id="id1565533">
<a href="javascript:top.videoFrame.seek(1565533)">
And when you close out, a survey will pop up on your screen. Please take a short time to fill it out. The information that we gather from this survey and from others filling it out will help us to make sure we provide timely and relevant information for you in our future webcasts.</a></div></p></td></tr>
<tr><td height=35> </td><td valign=top><a name="1580567"></a>
<p><div style="rightcol1" id="id1580567">
<a href="javascript:top.videoFrame.seek(1580567)">
Thanks for joining us, and we hope to see you again really soon.</a></div></p></td></tr>
</table>
</body>
</html>
]]>