Analyzing the Opportunity
by Peter Coffee on October 30, 2007 at 04:20 PM
I met last Thursday evening with the salesforce.com user group in Seattle, where I got to know several staff members from Tableau Software Inc.: a maker of visual data analysis and reporting tools that link with salesforce.com and other enterprise data repositories. The coincidence was notable, in that I'd just been speaking earlier that day with several local CIOs about the role of on-demand platforms in easing the adoption of business analytics.
I had noted at that earlier meeting the upcoming 20th anniversary of Peter Drucker's coinage, "The Knowledge-Based Organization": a phrase that he used in his 1989 book, The New Realities. We're already past the 20th anniversary, moreover, of Tom Peters's "Systems" prescriptions in his 1987 book, Thriving on Chaos: specifically, his admonition to "Decentralize information, authority, and strategic planning." So, given that these ideas are old enough to vote, why do they still seem so challenging to put into practice?
I see four key barriers to the idea of "analytics everywhere":
- Complex legacy IT portfolios make the mere integration of data an overwhelming task
- Cumbersome and brittle integrations relegate end users to the role of information consumer
- The path of least resistance leads to over-emphasis on complex measures based on historical data
- Superficial "webtop" thin-client redesign attacks the form, not the substance, of these problems
These issues, it seems to me, are directly addressed by the strengths of the on-demand model. Network-based architecture of on-demand solutions makes for affordable (and strategic) integration of data sources and tools. Rapid deployment of on-demand solutions builds momentum and achieves user engagement during the critical early stages of adoption. Deep-dyed security and privilege management in on-demand delivery suits the growing diversity of roles for enterprise analytics users, both inside and outside the organization.
It's 'way past time to do something with all the analytic power that companies like Tableau can offer. When I look at the on-demand platform, I see a foundation for building smarter organizations.
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Comments
Posted by Darren Cunningham on November 14, 2007 04:02 PM:
Hi Peter, as usually the case, I find myself to be in violent agreement with you. Your readers might be interested in the webinar that LucidEra is sponsoring tomorrow which will discuss the opportunity for on-demand business analytics. More information is available here: http://www.lucidera.com/blog/index.php/2007/11/14/get-more-out-of-your-crm-data/
Posted by Elissa Fink on November 15, 2007 06:32 PM:
Thanks Peter for a great post about an issue close to our hearts: using visual analysis tools that anyone can master, like Tableau, with on-demand platforms, like Salesforce.com.
Organizations do face tremendous hurdles in putting “analytics everywhere”. I think two of the many reasons are:
1. Most business analytics products are sold by large, expensive, slow-moving companies. Currently, these companies are being gobbled up by even larger, slower, more expensive companies.
2. Most business analytics products are designed for report distribution tasks. Report distribution is different than analytics. Hence doing analytical tasks in these products is difficult – the user interface just doesn’t accommodate ad hoc analytical tasks very well.
When a company finds ways to get through those hurdles (including better tools), they can gain tremendous benefit from fast analytics and visualization.
Tableau itself is a case in point. We are heavy users of Salesforce.com – we have deep and rich data. We then layer on top our own visual analytics software. As a marketer, my own effectiveness is vastly improved with better information at my fingertips. I could go on (and I do in Tableau’s blog) but I think the point is clear. Peter nailed it when he said it’s way past time to start building smarter companies by using analytic power better. And on-demand platforms powered by visual analysis are the foundation.
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