*********************************************************** DSS News D. J. Power, Editor February 1, 2004 -- Vol. 5, No. 3 A Bi-Weekly Publication of DSSResources.COM ************************************************************ Check the interview with Jerry Wagner "DSS present, past, and future" at DSSResources.COM ************************************************************ Featured: * Ask Dan! - Report from Oracle AppsWorld * What's New? at DSSResources.COM * DSS News Releases ************************************************************ Call for Abstracts for AMCIS2004 - New York check howe.stevens.edu/amcis2004/ ************************************************************ Ask Dan! Report from Oracle AppsWorld or What is Daily Business Intelligence? by Dan Power On Monday, January 26, 2004, I flew from the wintry Midwest U.S. to San Diego to cover Oracle AppsWorld 2004 for DSSResources.COM. Oracle provided a complimentary pass and DSSResources.COM paid my expenses. As some of you know, we run DSSResources.COM on a tight budget so I stayed in a low cost hotel and took the short hop and "red eye" flights. So why did I cover Oracle AppsWorld? It wasn't for the nice weather (although that was a plus) or the social events (I was too tired to attend), rather it was to find out if Oracle was serious about being a "player" in providing application software for building data-driven DSS. I wanted to answer the question "What is Oracle Daily Business Intelligence?" More than 10,000 people attended AppsWorld at the San Diego Convention Center. Journalists (120) and Industry Analysts (400) had computer access and workspace on the second floor. Even though I'm not a journalist trying to find news, Oracle provided me "press" status because DSSResources.COM publishes press releases and I write "opinion pieces" and analysis of the fragmented DSS Industry. I probably should have been classified among the Industry Analysts (many were financial analysts, but also some tech analysts). Tuesday - Day 1 I arrived at the conference Tuesday morning at 7:30 am to register and check out the Internet capabilities. After getting my credentials and checking email, I attended the morning news briefing and then the Oracle opening session in Hall C. Many thousands of us listened to Jeff Henley, the new Chairman of Oracle, and Charles Philips, the new co-President. Registered Oracle users can watch videos of Jeff's 10 minute welcome and Charles' 18 minute presentation at www.oracle.com/appsworld/online/. Oracle has an outstanding web resource from the conference for those who couldn't attend. It's not quite the same watching video, however, so I'll give you my interpretation of Oracle and BI/DSS developments. Flashing lights, music and video greeted me when I entered Hall C at 9 am. The large display screens proclaimed "Change is constant. Can you adapt?", "You're as good as the data", and other marketing slogans. I was thinking DSS analysts and designers often passively work with the data in transaction systems when designing data-driven DSS rather than assessing the "real" decision support data needs and then figuring out how to gather and collect "good" data. We need "one version of the truth", but we also need "the whole truth and nothing but the truth"!! Jeff Henley promised that Oracle would be even more customer-focused in the future. Charles Phillips spoke about the Information Quality Challenge. Companies have fragmented systems and fragmented data. He said we'll be talking this week about what we can do to solve this problem. "C" level executives need data to help make fact-based decisions. Strategies without metrics are just wishes. External stakeholders want more information. It's information that matters. It has been difficult getting data to decision makers in a timely fashion. I AGREE. Charles (not Chuck) explained Oracle's 3 approaches for getting data for decision-making: A) the E-Business suite with a unified data model, B) E-Business suite with integration to legacy apps, and C) a new data hub approach. Phillips claimed the "Customer Data Hub" solves an immediate pain point. This is real-time data synchronization it is not a data warehouse. It is a system of record that transcends any single application. He cited Dell as a company using the data hub technology. Phillips then provided an overview of the Oracle Information Architecture: Grid Infrastructure, Data Hub, Business Processes, and Information Access. The IT management and development tools span the hierarchy and are engineered to work together. Phillips claimed you get more value if you use more Oracle products. Mark Lewis, Executive VP of EMC, then gave a key note. Mark discussed Information Life Cycle Management and network tiered storage. He emphasized that the "value of data changes over time" and that it is important to build this concept into an Information System. Lewis was promoting a broad view of "active information management" that included structured database content, mixed content including email, and unstructured content. Mark was "selling" the right mix of data storage options. He noted the bottom line of Information Lifecycle Management is to save money. Lewis was promoting EMC products. At 11 am, Charles Phillips had a press conference and I had the opportunity to listen to him in a much smaller room than Hall C. He responded to a wide variety of questions, but I specifically asked him about Oracle and decision support. He acknowledged that Oracle is moving to provide more decision support applications and praised the value of the new Daily Business Intelligence application. The Oracle people call it DBI. Phillips feels Oracle obtained an advantage because it was an early mover in using Java for its enterprise applications. During the open interview session from 1-2:30 pm on Tuesday, most of the spokepeople and customers were focused on transaction processing systems (TPS). I did have the opportunity to chat with two senior IT managers at Acuity Lighting Group: Jon Corliss, Manager of Business Intelligence Systems, and his boss, Andy Dobbs, VP for Business Information Systems. They briefed me on their experience with the e-Business suite and implementation of Daily Business Intelligence. Acuity started a phased roll-out of Oracle 9i database in 1999. Oracle 11i apps at Acuity include Financials, Manufacturing, and Payroll. Acuity had a traditional legacy decision support capability built using DB2 with a Visual Basic front end. The company is currently in a phased roll-out of Daily Business Intelligence. At present, a few users have access to a Human Resources page, 3 financial pages, 6 Supply Chain pages and 2 procurement pages. "Page" refers to a web page with key performance indicators. Jon Corliss converted 2 years of historical data to work with DBI in 10 minutes. All of their DBI traffic goes to a dedicated server so the TPS apps are not impacted. An Oracle press release (01/27/2004) on the Acuity Brands Lighting applications is at DSSResources.COM. Jon agreed to help with a case study for DSSResources.COM and he'll keep me updated as the DBI roll-out proceeds. At about 2 pm, I went down to the Exhibit Hall and Oracle Test Drive area. There were more than 150 exhibitors but most were infrastructure players. I did chat with some BearingPoint staffers and they invited me to their client reception and gave me a copy of Welborn and Kasten's (2003) book "The Jericho Principle" on the importance of strategic collaboration. Thanks! I never did however get over to THIN, "one of San Diego's hippest bars", on Tuesday evening to join the party. Jet lag and a long day took its toll. I also chatted with Eric Wasowicz, President of Greenbrier & Russel (www.gr.com). Data warehousing, DSS and BI consulting and training are part of the Greenbrier & Russel mission. DecisionPoint Applications (dpapplications.com) had a large booth. I had heard about the company, visited the website and had some email correspondence with Larry Scheurich, a founder and Chief Technology Officer. To my pleasant surprise Larry was in the booth. Larry it turns out is a "big guy", about 6'5". He didn't seem too concerned about Oracle's move into business intelligence with DBI. DecisionPoint focuses on decision support and compliance primarily for financials, but they also have templates for distribution, HR and manufacturing. During the next 2 days I returned a few times to the booth and watched a demo and chatted with DP marketing folks. At 4 pm I attended an RFID (Radio Frequency Identification) roundtable briefing. IMHO RFID is an exciting technology for collecting new data for enhanced decision support. Following the briefing, I went back to the Exhibit Hall for food, drinks, a magician, a clairvoyant, and the IT chatter. By 8 pm I was back at my hotel -- tired but glad I made the trip, and a bit overwhelmed by the noise, information overload and new surroundings. Wednesday - Day 2 Early Wednesday morning I rode the trolley to the Convention Center and started my day with email and searching for news for DSSResources.COM. That's my daily routine. You'll find four DSS-related Oracle press releases that were posted at DSSResources.COM during the conference. Wednesday for me was focused on Larry Ellison and Daily Business Intelligence, but Ron Wohl, EVP at Oracle spoke at 10am. Among other topics, he discussed the "new style of business intelligence". Ron claimed Oracle has radically simplified business intelligence (BI). Kurt Robson, VP and Chief Architect for Applications, provided a demonstration of DBI. Kurt says DBI is possible because of faster, cheaper hardware, especially for the mid-tier in the Oracle application architecture. Oracle has made a major commitment to Lintel (Linux on Intel hardware). With DBI, Oracle is trying to help managers answer the "simple" questions like: "Who are our customers?" Who are our 10 largest customers?" "How many orders did we have last week?" "Have sales increased or decreased compared to last week, or last month, or last year?" During the open interview session for press starting at 11:30am, I spoke for about 10-15 minutes with Peter Palmisano, Senior Vice President and Chief Information Officer, of Camp Dresser & McKee (CDM) about his experiences with Oracle apps. CDM is a global engineering consulting firm with more than 3200 employees in more than 100 offices around the world. CDM uses Oracle globally for project costing, sales, financials, and billing. At any one time more than 4000 projects are in their system. Peter praised the Oracle apps CDM was using. Currently, CDM is not using DBI or the Balanced Scorecard. According to Peter, senior managers monitor some key results metrics, but there has not been a perceived need for an on-line data-driven DSS like DBI. Larry Ellison, Oracle CEO, gave a keynote starting at 1:30 pm titled "Spend Less, Know More". Larry has been delivering the same message for more than 6 months, but he added a "customer data hub" twist to the mix. Oracle is in the business of selling databases, but Larry says "you all bought too many of them". Along came CRM promising a 360 degree view of customers. It seemed like the "holy grail" of business applications, but it was incomplete, neglecting important information. A single database of customer information was needed. That's why Oracle created the E-Business suite. We wanted a single global data model and then applications were built around the single global database. This is the least expensive system you can run. When Oracle itself started to move toward an integrated company database we had over 600 databases and data was fragmented. That was 599 too many systems and it cost a lot of money. We were paying extra for multiple databases and we didn't know who our customers were. According to Larry, for many companies multiple, fragmented databases is still the state of the art. What can you do for those customers who can't implement the E-Business suite. The answer according to Larry is the Customer Data Hub. From my perspective, this claim remains to be proven. I do agree with him that "Once you've got all your data in one place, you can focus on the important issues -- data quality and business intelligence -- and begin to manage by fact, not by intuition." Larry indicated he's a user of Daily Business Intelligence. It helps him manage Oracle. Also, he mentioned that the service database is very important and "interesting to me". Larry is a believer in Lintel. He discussed problems with bad data, especially with identifying customers. Larry mentioned the data librarian tools and the increasing need for data librarians in companies to work with data and clean it up. Let me share an example of data problems from Larry's key note. Someone at Oracle typed in by mistake a sales order for 8 billion dollars. Larry said "I'm looking at my daily business intelligence. And you know the great thing about this is asking 'how much did we sell today?' Well, we sold 8 billion dollars and change. Boy it was a good day. (laughter) That's a lot of software for 1 day, you know, all new software. It was obviously a typo, and they reversed it out. But the 8 billion didn't go away, it was cataloged as an 8 billion dollar order and an 8 billion dollar return. So what was our return rate ... maybe the single most interesting thing I discovered as we built these information systems is how they exposed flawed symantics in our underlying transactional systems. Because, that was not an $8 billion order and an $8 billion return, though the transactional system categorized it as that. It was a typo. It should have just vanished entirely. We want to keep track of things people buy and return, that's interesting, but that was not something that was bought and returned. But, we only had one way of processing it ... we literally had to alter our transaction system to differentiate between typographical data entry errors and real purchases returns... so there is a virtuous cycle you get on ... but, it's a never ending quest." After Ellison's talk I spent most of my time quizing Oracle staff in the Test Drive area about various apps like DBI, Balanced Scorecard and Corporate Performance Management (CPM). I skipped the Customer Appreciation party. Thursday - Day 3 Again I arrived with the "early birds" and checked email. Cliff Godwin gave a keynote at 10 am titled "Focusing on Information First". Back to the Exhibit Hall. I spent some more time checking the Oracle Scorecard app. The "simulation" tree is a very limited model-driven financial analysis capability and the KPIs are primarily financial in nature. At 12:30 I went to a presentation titled "Extending Daily Business Intelligence, Using Oracle Scorecard" with Jeff Kirk, the CPM product manager, and German Arciniegas, the principle CPM product manager. They had a "fun" interactive role play that showed how a mythical company "Vision Corp." linked strategy to operations with Oracle Scorecard (BSC). In Q&A, Jeff confirmed that Larry Ellison is a hands-on user of Daily Business Intelligence (DBI), but Oracle executives aren't using BSC. Currently, 6000 Oracle executives are using DBI. What's the problem with using BSC? The metrics. Oracle has development teams working on developing custom metrics in areas like marketing. Well the bus to the airport was a chance to wind down after a busy conference. A "red eye" flight got me back to Minneapolis and then a short commuter hop and I was in Waterloo/Cedar Falls. The temperature was minus 9 degrees fahrenheit. Reflections Daily Business Intelligence shows that Oracle is committed to increasing its decision support footprint. Other data-driven DSS apps are coming along or being improved. Using DBI involves a major cultural change and companies will be most successful with DBI in an Oracle DB environment. The Customer Data Hub creates some opportunities to maintain a diverse environment, but then you need to do more customization of KPIs. The DBI and BSC screen designs have been updated and improved compared to the Executive Information Systems (EIS) of the past. The web apps have color coding, drill down, hyperlinks and pull down menus that should be easy for managers to use and understand. The cost of widely deploying DBI/BSC should be much less than costs with prior EIS that relied on lots of staff work. And the cons, KPIs are tied to the Oracle apps that a company has purchased. The hard part with DBI/BSC is linking company specific metrics to data. Most managers won't be able to customize their own BSC/DBI screens despite claims that they can. Oracle has a 3 day class so people can learn to use BSC. I haven't taken it, but I doubt it will be adequate so IT staff can learn the ropes so that they can really customize with the tools. Oracle needs to do more to create a powerful and easy to use data-driven DSS generator. Should 3rd party Business Intelligence vendors like Business Objects, Cognos and MicroStrategy be concerned by Oracle's new BI apps. YES. PS: I spoke with Nigel Church of Hewlett-Parkard about HP and BI. HP servers power many data warehouses. HP has the top slot in the Winter Corp. survey with France Telecom's 30TB database. ************************************************************ Put your ad here! Help support DSS News ************************************************************ What's New? at DSSResources.COM 01/30/2004 Posted interview with Jerry Wagner "DSS past, present and future". Check the interviews page. ************************************************************ Tell your friends! Get DSS NEWS free -- send a blank email to dssresources-subscribe@topica.com. ************************************************************ DSS News - January 19, 2004 to January 30, 2004 Read them at DSSResources.COM and search the DSS News Archive 01/30/2004 PEMA expands web-based incident reporting system for homeland security. 01/29/2004 Oracle's applications architect, Cliff Godwin, shares integration details. 01/29/2004 Mindjet announces MindManager X5 Pro Release 5.1. 01/29/2004 MicroStrategy wins prestigious Intelligent Enterprise magazine award. 01/28/2004 Oracle provides companies with single source of customer truth. 01/27/2004 Microsoft SQL Server 2000 reporting services is available today. 01/27/2004 Acuity Brands improves operational decision making with Oracle(r) Daily Business Intelligence. 01/27/2004 Oracle unveils RFID capabilities for warehouse management. 01/27/2004 Pennsylvania Department of Health integrates Cognos into Disease Surveillance System. 01/26/2004 Microsoft Business Solutions continues to innovate in support of emerging needs across businesses' supply chain. 01/26/2004 MILA, Inc. implements BusinessObjects Enterprise 6; business intelligence solution helps one of the top U.S. wholesale mortgage lenders improve enterprise performance. 01/23/2004 Foundation for the grid: Oracle on Linux. 01/23/2004 U.S. Air Force awards Lockheed Martin/Northrop Grumman team $472 million contract for transformational communications program. 01/22/2004 Oracle announces keynote series and sponsors for Oracle(R) AppsWorld. 01/22/2004 NetSuite adds advanced business intelligence and analytics to real-time dashboards. 01/22/2004 U.S. Navy opens Center for Concept Visualization for New Ship Design using SGI Onyx Advanced Visualization Systems. 01/21/2004 Cognos(R) ReportNet(TM) certified for SAP NetWeaver(TM) integration. 01/21/2004 Sybase extends Linux leadership with Sybase IQ 12.5 Business Intelligence infrastructure. 01/21/2004 Intergraph invites Geospatial Professionals to submit solutions to complex spatial analysis problems for awards program. 01/21/2004 LocatePLUS deploys Microsoft Business Solutions for Customer Relationship Management. 01/21/2004 XpertSHARE 2.0, an expert location, management and collaboration platform enables corporations to most effectively leverage their most valuable asset--employee brainpower. 01/20/2004 Alitalia chooses MicroStrategy for enterprise-wide customer analysis and reporting to enhance customer service applications. 01/20/2004 Cognos selected as top BI provider by Consumer Goods Technology Magazine. 01/20/2004 SGI launches initiative to dramatically improve Linux visualization capabilities. ************************************************************ Subscribe to DSSResources.COM. 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