Intelligent Enterprise | Neil Raden on Business Intelligence http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/ Copyright 2010 Tue, 09 Feb 2010 16:39:37 -0500 http://www.movabletype.org/?v=3.14 http://blogs.law.harvard.edu/tech/rss Bad Decisions Are Contagious Part of the problem with writing a book is that you become associated with a simplified version of your concept. In "Smart (Enough) Systems," James Taylor and I never claimed that computers were capable of running businesses in an unassisted way, or even that many of the decisions made in an organization can be automated. Our premise was that only those decisions that are high volume and low-risk (on an individual basis) are likely to be improved through decision services. Otherwise, decisions are best left to people. Sort of.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2010/01/bad_decisions_a.html /blog/archives/2010/01/bad_decisions_a.html Business Intelligence Mon, 11 Jan 2010 00:16:54 -0500
Overlooking Problems with Oracle's Exadata I can't quite figure out where IDC's review of Exadata V2 ends and Stephen Swoyer's opinion begins, but in the latter's article "Why Oracle's Exadata May Attract CXO's," some questionable suggestions are offered.

At one point, Swoyer writes, "many of the largest data warehousing or OLTP systems in the world continue to run on Oracle," and adds further that, "many of the biggest combined DW and OLTP configurations also run on Oracle." While this may be true, the key word here is "run." I know of no "combined" OLTP and data warehouse instances that actually perform. There are a myriad of reasons for this, such as:

]]> http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/12/overlooking_pro.html /blog/archives/2009/12/overlooking_pro.html Information Management Tue, 15 Dec 2009 09:26:03 -0500 Who Needs Analytics PhDs? Grow Your Own Analytics, whatever that means, has emerged as the hot topic all over our industry. Gartner seems to have bolted from Business Intelligence and placed "Advanced Analytics" in the firmament of must-have technologies for 2010 (I guess everyone followed their lead and implemented BI last year so there is nothing else to talk about). The problem with analytics is, who can do it? Numerate people in organizations are as scarce as hen's teeth. According to the conventional wisdom, very special experts, quants we'll call them, are needed because mere mortals can't handle this stuff. But you can't buy quants like muskmelons on the road to Bettendorf in July, and even if you could, a muskmelon would be less troublesome.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/10/who_needs_analy.html /blog/archives/2009/10/who_needs_analy.html Business Intelligence Mon, 26 Oct 2009 09:29:23 -0500
SPSS Is Not the Story; IBM's Vision for Analytics Is The media and my fellow analysts have been breathlessly touting IBM's acquisition of SPSS ($1.2B) as some sort groundbreaking to a new era of analytics. I don't see it that way.

IBM has been collecting BI and analytics pieces for a few years now, beginning way back in pre-history with the acquisition of Ascential. This was eclipsed when they acquired Cognos ($5B), the largest BI vendor at the time. There have been quite a few other smaller ones, such as AlphaBlox, Applix, Exeros and others. And let's not forget ILOG a year ago. You can't put predictive analytics into motion without a Business Rules Management System to drive the process. If anyone thinks this acquisition of SPSS marks IBM's serious entry into analytics, they've been sleeping.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/07/spss_is_not_the.html /blog/archives/2009/07/spss_is_not_the.html Business Intelligence Fri, 31 Jul 2009 11:56:25 -0500
WolframAlpha: Lots of Potential, Short on Meaning I haven't been formally trained on WolframAlpha nor have I thoroughly investigated it. In fact, I've spent more time reading the hype about it than I have actually kicking the tires. But from the time I've spent, some things are already obvious. First and prominently, WolframAlpha does not rely on semantic technology, neither Semantic Web nor Linked Data concepts, and it possesses no underlying ontology driving its structure or information. Having said that, I may be mistaken when I said "no underlying ontology" as there may be elements of ontology that I'm not aware of, but overall, it is not an application based on semantics. There does not appear to be a taxonomy of terms linking them across knowledge domains.

This doesn't really seem strange because Dr. Wolfram, for all his good intentions, has developed software for mathematicians, scientists and engineers, not enterprise applications and data management. In the lingo of data people, the data in WolframAlpha is hard-coded and proprietary, a horrifying prospect. The way the knowledge domains seem to be developed does not appear to conform to what would be considered good data management practice in an enterprise today. However, WolframAlpha is a product, not a data management tool. There doesn't appear to be a way to expand its knowledge base except via Wolfram Research's "curating" process, which is, presumably, only done by Wolfram Research.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/07/wolframalpha_lo.html /blog/archives/2009/07/wolframalpha_lo.html Business Intelligence Fri, 10 Jul 2009 09:56:46 -0500
IBM System S: Not for Everyone IBM's announcements about "System S" along with its "Smarter Planet" campaign have really caught my attention. As on old number cruncher, I am intrigued about technologies that apply advanced analytics to solve problems. I haven't had a chance to review System S yet, but from the reviews I've read, it seems to be a platform for deriving insight from massive volumes of data in real time. That's great, isn't it? Well, it is quite an achievement, so far as I can tell, but the breathless enthusiasm of the press/bloggers/analysts has me a little put off. Here's why.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/05/ibms_announceme.html /blog/archives/2009/05/ibms_announceme.html Business Intelligence Wed, 20 May 2009 22:47:19 -0500
Ventana Gets Enterprise Decision Management When James Taylor and I wrote Smart Enough Systems: How to Deliver Competitive Advantage by Automating Hidden Decisions we knew it was going to be a lonely outpost for a while. It isn't easy for two guys to insert such a big idea into the collective consciousness. We didn't really have a natural sponsor for the whole picture to walk with us. The business rules community more or less understood it as a Business Rules Management System, which is a key component of the architecture. The predictive analytics crowd was interested as PA was prominent in the architecture, but in reality, very few really grasped EDM in its entirety. It was certainly easy to describe:

Focusing on operational decisions, it develops decision services using business rules to automate those decisions, adds analytic insight to these services using predictive analytics and allows for the ongoing improvement of decision-making through adaptive control optimization.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/04/ventana_gets_en.html /blog/archives/2009/04/ventana_gets_en.html Business Intelligence Tue, 14 Apr 2009 08:21:56 -0500
From 'BI' to 'Business Analytics,' It's All Fluff A lot of bloggers are writing about SAS' newly launched marketing campaign called "business analytics," which positions business intelligence as a subservient tool. I was there in Washington, D.C., last week at the SAS Global Executive Forum when Jim Davis gave his much-talked-about, business-intelligence-is-dead, business-analytics-is-the-future presentation. "I don't believe (business intelligence is) where the future is; the future is in business analytics," he said. I thought at the time that it was a little silly.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/03/_from_bi_to_bus.html /blog/archives/2009/03/_from_bi_to_bus.html Business Intelligence Sun, 29 Mar 2009 23:11:44 -0500
Semantic Web: Snake Oil or Balm for What Ails Us? This blog is in response to Seth Grimes' recent post "Semantic Web Snake Oil."

Our Business Intelligence industry is held back by a chronic lack of techniques to unify information. I saw in semantic Web technology a means to address that. I don't know if the Semantic Web will ever happen. I watch it very closely and report when I find something that looks like it might work. It's sort of a lonely outpost. I do know that ontologies appear to be a superior way for representing information, sharing it, reasoning from it and avoiding lots of duplication of effort. I call this making the data smarter so the applications can be dumber.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/02/semantic_web_sn_1.html /blog/archives/2009/02/semantic_web_sn_1.html Business Intelligence Tue, 10 Feb 2009 14:56:25 -0500
Gut Versus Analytics: What's the Real Story? A recent article in CIO by Thomas Wailgum entitled "To Hell With Business Intelligence: 40 Percent of Execs Trust Gut" caught my attention. There were also a couple dozen comments that are worth reading as well as a blog by Marcus Borba. This was driven by some recent (separate) research by Accenture and Forrester to examine how business managers are using analytics as opposed to intuition or gut feel. I think they left out one category, though. James Taylor and I wrote that many decisions are simply avoided or hidden because people really don't know what to rely on, but that's a different topic.

Let's get back to the subject of the article. It is no coincidence that there are so many phrases that depict thinking guts. There is gut reaction, gut feeling, gut instinct and, related but even more evocative, butterflies in the stomach. As it turns out, there are good reasons for these terms because your gut actually can think, in its own fashion. In "Lights Out: Sleep, Sugar and Survival," T.S. Wiley, Pocket Books, 2000 (full disclosure: T.S. Wiley is my wife), the author writes:


]]> http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/01/gut_versus_anal.html /blog/archives/2009/01/gut_versus_anal.html Business Intelligence Fri, 30 Jan 2009 17:12:19 -0500 MicroStrategy in Perspective Cindi Howson and Mark Smith already weighed in with their impressions about MicroStrategy World and the impending release of MicroStrategy 9. Mark made a fairly complete overview of the product and proceedings and Cindi placed the offering in more or less competitive context, so I won't repeat either of those points of view (though I will take issue with Cindi on one thing – some of the other BI vendors may have been able to access multiple data sources in a single report, but not nearly as intelligently, efficiently or with more coherency than MicroStrategy version 9. These other approaches are ugly kludges in comparison).

I have a different perspective from Mark and Cindi, one that is borne of a history with MicroStrategy that goes back fifteen years. My review, with that perspective in mind, is this:

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2009/01/microstrategy_i.html /blog/archives/2009/01/microstrategy_i.html Business Intelligence Mon, 19 Jan 2009 11:12:42 -0500
Surround the Warehouse: Prediction for 2009 The data warehouse has been positioned as the sole source of analytical data in organizations, but that is changing. Rather than trying to remodel the data warehouse to accommodate fresher and more detailed operational data (near real-time activity in operational systems, process logs, etc.), these data sources will operate in parallel (or horizontally, whichever word you like) as complementary feeds to analytics. It takes too long and is too expensive to expand the data warehouse concept to do this.

BI tools like Microstrategy have to retool to be able to query multiple sources to satisfy a single query (they are doing that in the upcoming release 9, I believe). All of the other BI vendors will do the same.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/12/a_prediction_fo.html /blog/archives/2008/12/a_prediction_fo.html Information Management Thu, 11 Dec 2008 13:31:58 -0500
Process Intelligence, CEP and Operational BI In case you haven't heard it yet, here comes a new product category: Process Intelligence. But what does it mean? All of these terms overlap: Operational BI, Pervasive BI, Operational Intelligence, Process Intelligence, BAM, CEP (Complex Event Processing), Decision Management, Decision Services. Arguments over definitions tend to be vigorous for two reasons. First, the taxonomy of product classes tends to be pretty leaky and second, the stakes are so low.

The reason it is important to get some clarity on the definitions is that the wider BI industry (and I don't know what to call it) is driven by marketing, not by function or requirements. Software vendors invent things, acquire or get acquired by other vendors and give names to the combined capabilities they possess. Then it's packaged and sold to companies.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/11/process_intelli.html /blog/archives/2008/11/process_intelli.html Process Management Tue, 11 Nov 2008 07:49:52 -0500
Cocktail Conversation I don't hear this expression much anymore, but my wife used to use it all the time to describe the kind of chatter one can make about a subject, and seem knowledgeable, but possess only a very superficial grasp of it. In fact, she used to describe her entire academic career as having merely prepared her for cocktail conversation. I don't feel that way. I think my education, even three decades hence, was an excellent preparation for what followed, but then, I didn't study anthropology. LOL

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/10/cocktail_conver.html /blog/archives/2008/10/cocktail_conver.html Business Intelligence Mon, 27 Oct 2008 07:09:51 -0500
Enterprise 2.0: What Really Changes? I was on a panel at nGenera's (nee New Paradigm) Enterprise 2.0 get-together in Dallas last week. I missed the first day because I was speaking somewhere else and unfortunately missed listening to and meeting Ray Kurzweil, but the second day has some pretty good presentations by the nGenera staff, including Don Tapscott and my homey Nick Vitalari (it's amazing how you can live in a small town and only run into your neighbors at conferences).

This meeting is not to be confused with the much larger Enterprise 2.0 conference. The attendees are members of nGenera's network and gather a few times a year to listen to and present their progress on various research topics/projects at nGenera.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/10/enterprise_20_w_1.html /blog/archives/2008/10/enterprise_20_w_1.html Enterprise Applications Mon, 06 Oct 2008 08:26:28 -0500
Can Roles and Agility Coexist in Oracle Fusion Middleware? I got so many letters (isn't that a quaint way to say "email messages?") about the Hy Minsky posting that I wanted to pass along a fairly readable paper he wrote that spells out his Financial Instability Hypothesis.

Back to the topic. I listened carefully for the better part of two-and-a-half hours last week to Thomas Kurian, Sr. VP of Oracle, present the entire product set and positioning of Oracle's Fusion Middleware. He didn't crack any jokes and more or less stuck to the slide deck; nevertheless it was amazingly interesting. I liked almost everything I heard, especially the parts that were user-centric, such as unified metadata, common business semantics with shared logical models, single development environment, etc.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/09/are_roles_and_o.html /blog/archives/2008/09/are_roles_and_o.html Enterprise Applications Mon, 29 Sep 2008 09:10:31 -0500
Wherefore Analytics on Wall Street? An Homage to Hy Minsky When it comes to analytics, Wall Street is clearly the leader. The best of the best head there after school to grab six-figure starting salaries. Some even see seven figures, based on their performance. They are the rara avises, the crème-de-la-crème, and whenever we speak about "Competing on Analytics," it goes without saying that Wall Street analytics represent the exemplar of what is possible for an analytic culture.

So why is Wall Street melting down?

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/09/wherefore_analy.html /blog/archives/2008/09/wherefore_analy.html Business Intelligence Mon, 15 Sep 2008 17:29:42 -0500
Just a User When you sign up for a Webinar, or even just register to download a white paper, you can be sure that you will shortly get a follow-up phone call. The caller almost never has any inkling what you or their client does, so the questions are sometimes amusing, other times pretty dumb. I haven't gotten so old and cranky yet that this ruins my day, but I got a call last week that was notable.

After the brief introduction, the question was, "I want to ask some questions about your database."

"Excuse me," I said, "I'm an analyst."

"A what?"

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/09/just_a_user.html /blog/archives/2008/09/just_a_user.html Business Intelligence Tue, 02 Sep 2008 13:26:24 -0500
MapReduce: And You Were There There's been a lot of buzz lately about Google's MapReduce framework for speeding up the processing of large datasets. It makes you wonder, did Google just dream this up in last couple years while all of the database vendors were sleeping? Or, paraphrasing Isaac Newton, were they standing on the shoulders of giants?

The answer is, both.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/08/mapreduce_and_y.html /blog/archives/2008/08/mapreduce_and_y.html Information Management Fri, 29 Aug 2008 09:01:36 -0500
Requirements Gathering: Don't Be Naïve Whenever the subject of business requirements for data warehousing and BI comes up, I try to bite my tongue because it's always at a time in the project when expectations are high and people are hopeful. I hate to rain on their parade, but this is one of those areas where best practices are often worst practices.

The idea that you can go "do" requirements gathering is canonical, but it's surprising and ironic how few practitioners actually believe in its value. This isn't a bias you want to expose to your clients, though. I find it particularly vexing that training sessions and conferences on data warehousing and BI usually have requirements gathering classes, taught by people who really ought to know better. I guess that's a subject for another day — why industry "experts" are content to disgorge training, for a fee, that they know is misleading, but is widely accepted.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/07/requirements_ga.html /blog/archives/2008/07/requirements_ga.html Business Intelligence Mon, 28 Jul 2008 08:44:05 -0500
What's the Difference between Decision Management and Performance Management? Gary Cokins of SAS and James Taylor, my partner at Smart (enough) Systems, in an admirable attempt to disambiguate the terms Enterprise Decision Management (EDM) and Performance Management have, unfortunately, both gotten it wrong.

Gary claims that James "marginalizes Performance Management as being too narrow." Instead, he (Gary) suggests that "Performance Management and EDM are arguably very similar." James claims that EDM "goes one step further."

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/07/whats_the_diffe.html /blog/archives/2008/07/whats_the_diffe.html Performance Management Fri, 18 Jul 2008 11:05:46 -0500
Semantics and SOA: Don't Give Up Although I don't remember when I first heard the term Services Oriented Architecture (SOA), I remember researching Web services around 2000. Back then, an architecture to handle Web services was unnamed, yet understood - at least to a degree. Now it has a name – SOA.

Back then, it seemed clear to me that Web services could provide more than just a way for Web-based applications to operate. With loosely coupled services communicating via standard protocol, while centralized directories allowed these services to describe their APIs, the sky seemed the limit. Reuse, long-chased but never achieved, seemed almost automatic. Platform independence, long-running transactions, and asynchronous processes — it would be like world peace.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/05/dont_give_up_on.html /blog/archives/2008/05/dont_give_up_on.html Enterprise Applications Wed, 28 May 2008 09:34:35 -0500
The Most Important Thing I Learned About Consulting Is to Watch Ghostbusters The movie Ghostbusters is perhaps the single best training film for consultants I've come across. In simple words, they embody all the right stuff for a successful consultant which is, lets face it, a real craft, not just something to do between jobs. With motivational thoughts about teamwork, confidence, authenticity, client management and the projection of competence, these guys have it knocked. For instance:

Teamwork: There aren't many engagements where the success of the operation is dependent on just one player. It's important to organize for success and enhance everyone's contribution in a "whole is greater than the sum of the parts" mentality. That special esprit de corps that develops among small groups provides the energy to keep a difficult assignment on track. And, sometimes, teamwork requires splitting the team up.

"We have the tools, we have the talent"
• "I love this plan! I'm excited to be a part of it!"
• "Let's split up, we can cause more damage that way"

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/05/the_most_import.html /blog/archives/2008/05/the_most_import.html Business Intelligence Thu, 22 May 2008 09:35:39 -0500
The Search Engine Miracle is Wearing Thin Search isn't that great anymore. For one thing, it's become so commercial that it's really more like an ad search engine. SEO programs game the big ones to the point that you have to go to page 20 before you find something that isn't trying to sell what you're looking for. I want the Scotty Effect for myself (see my previous post). Why can't I ask a search engine questions and get sent to exactly the places with the answers, not 10,000 hits? Why can't the search engines help me assemble the information I need?

Tom Davenport suggests that the competitive playing field for businesses is analytics. I think we'd all be a lot better off if we could do some analytics for ourselves. What do you think? Here are some things I wonder about:

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/05/the_search_engi.html /blog/archives/2008/05/the_search_engi.html Information Management Wed, 14 May 2008 11:15:41 -0500
In Search of 'The Scotty Effect' Do you remember the movie "Star Trek IV," when the crew needs to go back to the 20th century to find two hump back whales? When that movie was released, twenty-five years ago, we were already building pricing models with DSS software, we already had SAS to build models and do statistical work and we could write reports in FOCUS or any number of other tools. Compared to the things we can do today, this may seem primitive, but how different is it really?

Consider that the density of hard drives in the same period has increased five orders of magnitude, CPU speed even more so and the cost per unit of storage or MIP has fallen off the table. With that kind of improvement, a new BMW today would go from 0 to 60 mph in 0.00008 seconds, have a top speed of 15 million miles per hour and would burn gas at a rate of 2 million miles per gallon. Oh, and it would cost about 30 cents to buy. I haven't figured out the lease yet.

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http://www.intelligententerprise.com/movabletype/blog/nraden.html/blog/archives/2008/05/struggling_with.html /blog/archives/2008/05/struggling_with.html Business Intelligence Mon, 12 May 2008 10:28:35 -0500