Interview Jim Davis SAS Institute

Here is an interview with Jim Davis, SAS Institute SVP and Chief Marketing Officer.

Traditional business intelligence (BI) as we know it is outdated and insufficient-

davis_jim

Jim Davis, SAS Institute..

Ajay -Please describe your career in science to your present position. What advice would you give to young science graduates in this recession? What advice would you give to entrepreneurs in these challenging economic times?
Jim - After earning a degree in computer science from North Carolina State University, I embarked on a career path that ultimately brought me to SAS and my role as senior VP and CMO. Along the way I’ve worked in software development, newspaper and magazine publishing and IT operations. In 1994, I joined SAS, where I worked my way up the ranks from enterprise computing strategist focused on IT issues to program manager for data warehousing to director of product strategy, VP of marketing and now CMO. It’s been an interesting path.

My advice to new graduates embarking on a career is to leave no stone unturned in your search, particularly in this economy, but also consider adding to your skill set. A local example here in the Research Triangle area is at N.C. State University’s Institute for Advanced Analytics, which offers a master’s degree that combines business and analytical skills. These skills are very much in demand. SAS CEO Jim Goodnight helped establish this 10-month degree program where the first 23 graduating all found solid jobs within four months at an average salary of $81,000. Many of this year’s class, facing the worst economy since the Great Depression, have already found jobs. For entrepreneurs today, my advice is simple: make absolutely sure you’re creating a product or service that people want. And especially given the challenging economic environment, resolve to improve your decision making. Regardless of industry or company size, business decisions need to be based on facts, on data, on science. Not on hunches and guesswork. Business analytics can help here.

Ajay – What are some of the biggest challenges that you have faced and tackled as a marketing person for software? What continues to your biggest focus area for this year?

Jim - Among the biggest challenges that the SAS marketing team has worked to overcome is the perception that analytical software – advanced forecasting, optimization and data mining technologies – are way too complex, difficult to use, and only useful to a small band of highly trained statisticians and other quantitative experts, or “quants.” With lots of hard work, we’ve been able to show the marketplace that powerful tools are available in business solutions designed to solve industry issues.

The biggest marketing challenge now is showing the market how SAS offers unique value with its broad and integrated technologies. The industry terminology is confusing with some companies selling Business Intelligence tools that when you scratch the surface are limited to reporting and query operations. Other SAS competitors only provide data integration software, and still others offer analytics. SAS is the only vendor offering an integrated portfolio of these three very important technologies, as well as cross-industry and industry-specific intelligent applications. This combination, which we and others are calling Business Analytics, is a very powerful set of capabilities. Our challenge is to demonstrate the real value of our comprehensive portfolio. We’ll get there but we have some work to do.

Ajay -It is rare to find a major software company that has zero involvement with open source movement (or as I call it with peer-reviewed code). Could you name some of SAS Institute’s contribution to open source? What could be further plans to enhance this position with the global community of scientists?

Jim - SAS does support open source and open standards too. Open standards typically guide open source implementations (e.g., the OASIS work is guiding some of the work in Eclipse Cosmos, some of the JCP standards guide the Tomcat implementation, etc.).

Some examples of SAS’s contributions to open source and open standards include:

Apache Software Foundation – a senior SAS developer has been a committer on multiple releases of the Apache Tomcat project, and has also acted as Release Coordinator.

Eclipse Foundation — SAS developers were among the early adopters of Eclipse. One senior SAS developer wrote a tutorial whitepaper on using Eclipse RCP, and was named “Top Ambassador” in the 2006 Eclipse Community Awards. Another is a committer on the Eclipse Web Tools project. A third proposed and led Eclipse’s Albireo project. SAS is a participant in the Eclipse Cosmos project, with three R&D employees as committers. Finally, SAS’ Rich Main served on the board of directors of the Eclipse Foundation from 2003 to 2006, helping write the Eclipse Bylaws, Development Process, Membership Agreement, Intellectual Property Policy and Public License.

Java Community Process – SAS has been a Java licensee partner since 1997 and has been active in the Java Community Process. SAS has participated in approximately 25 Java Specification Requests spanning both J2SE and J2EE technology. Rich Main of SAS also served on the JCP Executive Committee from 2005 through 2008.

OASIS — A senior SAS developer serves as secretary of the OASIS Solution Deployment Descriptor (SDD) Technical Committee. In total, six SAS employees serve on this committee.

XML for Analysis — SAS co-sponsored XML for Analysis standard with Microsoft and Hyperion.

Others – A small SAS team developed Cobertura, an open source coverage analysis tool for Java. SAS (through our database access team) is one of the top corporate contributors to Firebird, an open source relational database. Another developer contributes to Slide WebDav. We’ve had people work on HtmlUnit (another testing framework) and FreeBSD.

In addition, there are dozens if not hundreds of contributed bug reports, fixes/patches from SAS developers using open source software. SAS will continue to expand our work with and contribute to open-source tools and communities.

For example, we know a number of our customers use R as well as SAS. So we decided to make it easier for them to access R by making it available in the SAS environment. Our first interface to R, which enables users to integrate R functionality with IML or SAS programs, will be in an upcoming version of SAS/IML Studio later this summer. We’re also working on an R interface that can be surfaced in the SAS server or via other SAS clients.

Ajay – What is business intelligence, and business analytics as per you? SAS is the first IT vendor that comes in the non sponsored link when I search for “business intelligence’ in Google. How well do you think the SAS Business Intelligence Platform rates across platforms from SAP, Oracle , IBM and Microsoft.

Jim - Traditional business intelligence (BI) as we know it is outdated and insufficient.

The term BI has been stretched and widened to encapsulate a lot of different techniques, tools and technologies since it was first coined decades ago. Essentially, BI has always been about information delivery, be it in static rows and columns, graphical representations of information, or the modern and hyper-interactive dashboard with dials and widgets.

BI technologies have also evolved to include intuitive ad-hoc query and analysis with the ability to drill down into the details within context. All of these capabilities are great for reacting to business problems after they have occurred. But businesses face diverse and complex problems, global competition grows exponentially, and increasingly restrictive regulations are just around the corner. They need to anticipate and manage change, drive sustainable growth and track performance.

Now they also have to operate in the midst of a ruinous global credit and liquidity crisis. Reactionary decision making is just not working. Now more than ever, progressive organizations are looking to leverage the power of analytics, specifically business analytics. Why? Real business value comes from capitalizing on all available information assets and selecting the best outcome based on every possible scenario.

Proactive evidence-based decisions – not just information delivery – should drive informed decisions. That is business analytics and that is what SAS provides its customers.

Businesses require robust data integration, data quality, data and text mining, predictive modeling, forecasting and optimization technologies to anticipate what might happen, avoid undesired outcomes and course correct.

These capabilities need to be in synch and integrated from the ground up rather than cobbled together through acquisitions. More importantly, they cannot be part of a monolithic platform that requires 2-3 years before any real value is derived.

They must be part of an agile framework that enables an organization to address its most critical business issues now and then add new functionality over time. A business analytics framework — like the one SAS provides — enables strategic business decisions that optimize performance across an organization.

Ajay – For 4 decades SAS Institute created, nurtured and sustained the SAS language, often paying from its pocket for conferences, papers. Till today SAS Language code on your website is free and accessible to all without a registration unlike other software companies. What do you have to say about third party SAS language compilers like “Carolina” and “WPS”

Jim – There is no doubt that much of the power and flexibility behind our framework for business analytics is derived from our SAS language. At its core, the Base SAS language offers an easy-to-learn syntax and hundreds of language elements, pre-built SAS procedures and re-usable functions. Our focus on listening and adapting to customer’s changing needs has helped us, over the years, to sustain and continuously improve the SAS language and the SAS products that leverage it.

Competition comes in many forms and it pushes us to innovate and keep delivering value for our customers. Language compilers or code interpreters like Carolina and WPS are no exception.

One thing that sets SAS apart from other vendors is that we care so deeply about the quality of results.Our Technical Support, Education and consulting services organizations really do partner with customers to help them achieve the best results.

As Anne Milley, SAS’ director of technology product marketing, told DecisionStats this March, customers have varied and specific requirements for their analytics infrastructure. Desired attributes include speed, quality, support, backward and forward compatibility, and others. Certain customers only care about one or two of these attributes, other customers care about more. With our broad and deep analytics portfolio, SAS can uniquely provide the analytics infrastructure that meets a customer’s specific requirements, whether for one or many key attributes. Because of this, an overwhelming majority vote with their pocketbooks to select or retain SAS.

For example, as Anne noted, for some customers with tight batch-processing windows, speed trumps everything. In tests conducted by Merrill Consultants, an MXG program running on WPS runs significantly longer, consumes more CPU time and requires more memory than the same MXG program hosted on its native SAS platform.

At SAS, we provide a complete environment for analytics — from data collection, manipulation, exploration and analysis to the deployment of results. One example of our continuous innovation, and where we are devoting R&D and sales resources, is the SAS In-Database Processing Initiative. Through in-database analytics, customers can move computational tasks (e.g., SAS code, SQL) to execute inside a database. This streamlines the analytic data preparation, model development and scoring processes. Customers needing to leverage their investments in mixed workload relational database platforms will benefit from this SAS initiative. It will help them accelerate their business processes and drive decisions with greater confidence and efficiency.

Ajay – Are you going to move closer for an acquisition? Or be acquired? Which among the existing BI vendors are you most comfortable with in synergy of products and philosophy?

Jim -SAS is in an enviable position as the largest independent provider of business intelligence (BI) software, and the leader in the rapidly emerging field of business analytics, which combines BI with data integration and advanced analytics. We have no plans, nor have had any talks regarding SAS being acquired.

As for SAS acquiring another company, we continuously look for technologies complementary to our wide and deep lineup of business analytics solutions, many of which are targeted at the specific needs of industries ranging from banking, insurance and pharma to healthcare, telecom, manufacturing and government.

Last year, SAS made two acquisitions, IDeaS Revenue Optimization, the premier provider of advanced revenue-management and optimization software for the hospitality industry, and Teragram, a leader in natural language processing and advanced linguistic technology. IDeaS delivers to SAS and our hotel and hospitality customers software sold as a service that meets a critical need in this industry. Teragram’s exciting technology has enhanced SAS’ own robust text mining offerings.

Ajay – Jim Goodnight is a legend in philanthropy, inventions, and as a business leader (obviously he has a fine team supporting him). Who will be the next Jim         Goodnight ?

Jim - I think Jim Goodnight best addressed the question of succession plans at SAS best a few years ago when he noted that the business world often places undue emphasis on the CEO and forgets about the CTO, CMO, CFO and other senior leaders who play a key role in any company’s success. SAS has a very strong executive management team that runs a two billion-dollar software company very effectively. If a “next Jim Goodnight” is needed in the future, SAS will be ready and will continue to provide our customers with the business analytics software they need.

Biography-

Jim Davis, Senior Vice President and Chief Marketing Officer for SAS, is responsible for providing strategic direction for SAS products, solutions and services and presenting the SAS brand worldwide. He helped develop the Information Evolution Model and co-authored “Information Revolution: Using the information Evolution Model to Grow your Business.” By outlining how information is managed and used as a corporate asset, the model enables organizations to evaluate their management of information objectively, providing a framework for making improvements necessary to compete in today’s global arena.

s285_sas100k_130w SAS (www.sas.com) is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world The Power to Know®.

Mergers and Acqusitions: Analyzing them

Valuation of future cash flows is an inexact science- too often it relies either on flat historical numbers (we grew by 5% last year so next year we will grow by 10%)

To add to the fun is the agency conflict, manager’s priorities (in terms of stock options encashment) is different from owner’s priorities.

These are some ways you can track companies for analysis-

1) Make a Google Alert on Company Name

2) Track if there is sudden and sustained spike in activity – it may be that company may be on road show seeking like minded partners, investors or mergers.

3) Watch for sudden drop in news alerts- it may mean radio silence or company may be in negotiations

4) Watch how company starts behaving with traditional antagonists…….

The easiest word thrown in the melee is ethics, copyright violations or payments delayed.

I am pasting an extract by a noted and renowned analyst in the business intelligence field-

Curt Monash

His Professional opinion on SAP

SAP’s NetWeaver Business Warehouse software will soon run natively on Teradata’s database for high-end data warehousing and BI (business intelligence), the vendors announced Monday.

SAP and its BusinessObjects BI subsidiary already had partnerships and product integrations with Teradata. But the vendors’ many joint customers have been clamoring for more, and native Business Warehouse support is the answer, said Tim Lang, vice president of product management for Business Objects.

SAP expects the new capability to enter beta testing in the fourth quarter of this year, with general availability in the first quarter of 2010, according to a spokesman.

Under the partnership, SAP will be handling first-line support, according to Lang. Pricing was not available.

The announcement drew a skeptical response from analyst Curt Monash of Monash Research, who questioned how deeply SAP will be committed to selling its customers on Teradata versus rival platforms.

“Business Objects has long been an extremely important partner for Teradata. But SAP’s most important DBMS partner is and will long be IBM, simply because [IBM] DB2 is not Oracle,” Monash said.”

Credit-

http://www.infoworld.com/d/data-management/sap-and-teradata-deepen-data-warehousing-ties-088

and here are some words from Curt Monash’s personal views on SAP

Typical nonsense from SAP

Below, essentially in its entirety, is an e-mail I just received from SAP, today, January 3. (Emphasis mine.)

Thank you for attending SAPs 4th Annual Analyst Summit in Las Vegas. We hope you found the time to be valuable. To ensure that we continue meeting your informational needs, please take a few moments to complete our online survey by using the link below. We ask that you please complete the survey before December 20. We look forward to receiving your feedback.

What makes this typical piece of SAP over-organization particularly amusing is that I didn’t actually attend the event. I was planning to, but after considerable effort I think I finally made it clear to VP of Analyst Relations Don Bulmer that I was fed up with being lied to* by him and his colleagues. In connection with that, we came to a mutual agreement, as it were, that I wouldn’t go.

*and lied about

Obviously, administrative ineptitude and dishonesty are two very different matters, united only by the fact that they both are characteristics of SAP, particularly its analyst relations group. Having said that, I should hasten to add that there are plenty of people at SAP I still trust. If Peter Zencke or Lothar Schubert tells me something, I expect it to be true. And it’s not just Germans; I feel the same way about Dan Rosenberg or Andrew Cabanski-Dunning, to name just a couple non-German SAP guys.

But I have to say this — both SAP’s ethics and its internal business processes are sufficiently screwed up as to cast doubt on SAP’s qualifications to “run the world’s best-run businesses.”

Source:

http://www.monashreport.com/2007/01/03/sap-nonsense-ethics/

Journalism ethics off course makes sure that journalists don’t get renumerance or have to compulsorily declare benefits openly.This is not true for online journalism as it is still evolving.

Curt Monash is the grand daddy of all Business Intelligence Journalists- he has been doing this and seen it all since 1981 ( I was 4 years old then).

Almost incorruptible and therefore much respected his Monash report remains closely watched.

Some techniques to thwart Business Intelligence journalists is off course tactics of

1) Fear

2) Uncertainity

3) Doubt

by planting false leaks, or favoring more pliable journalists than the ones who ask difficult questions.

Another way is to use Search Engine Optimization so the Google search is rendered ineffective for diificult journalists for people to read them.

Why did I start this thread?

Well it seems the Business Intelligence world is coming to a round of consolidations and mergers. So will the trend of mega vendors first mentioned by M Fauschette here lead to a trend of mega journalist agencies as well- like a Fox News for all business intelligence journalists to report and get a share of the booty.

The Business Intelligence companies have long viewed analyst relationships as an unnecessary and uncontrollable marketing channel which they would like to see evolve.

Television Ratings can be manipulated for advertising similarly can you manipulate views, page views, clicks on a website for website advertisement.The catch is Google Trends may just give you the actual picture, but you can lie low by choosing not to submit or ping google during initial days and then we the website is big enough in terms of viewers or contributing bloggers can then safely ping Google as the momentum would be inertial in terms of getting bigger and bigger.

http://www.mfauscette.com/software_technology_partn/2009/05/the-emergence-of-the-mega-tech-vendor-economy.html

Here are some facts as per companies-

1) For SAS Institute

a) WPS is launching its Desktop software which enables SAS language users to migrate seamlessly at 1/10 th of the cost of SAS Base and SAS Stat. It will include Proc Reg and Proc Logistic in this and have a huge documentation.

b) R – open source software is increasingly powerful to manipulate data. SAS/IML tried offering a peace hand but they would need to reconcile with the GPL conditions for R- so if it is a plugin the source code is open and so on

c)  Inference of R may be acquired by SAS to get a limited liability stake in a R based user platform.

d) Traditional Rival SPSS ( the two have dunked it out in analytics since 40 years) has a much better GUI and launched a revamped brand PASW. They are no longer distracted with a lawsuit which curiously accused them of stock manipulation and were found innocent.

e) Jim Goodnight has been dominating the industry since 1975 and has managed to stay private despite three recessions and huge inducements ( a wise miove given the mess in the markets in 2008). After Jim who will lead SAS with as much wisdom is an open question. Jim has refused Microsoft some years back, and is still very much in command despite being isolated in terms of industry alliances he remains respected. Pressure on him to rush into a merger would may just backfire.

f) The politics of envy- SAS is hated by many analytics people just as in some corners people hate America- it is because it is number 1, and been there too long.Did you mention anti-trust investigations . Well WPS is based out of UK and the European Union takes competition much more seriously.

g) Long time grudges – SAS is disliked despite its substantial R and D investments, the care it takes of its employees, and local community. Naturally people who are excluded or were excluded at some point of time have resentments.

h) SAS ambitions in Business Intelligence where curiously it is not that expensive and is actually more efficient than other players. The recent salvo fired by Jim Davis declaring business analytics as better than business intelligence- a remark much resented by cricket loving  British journalist, Peter J Thomas

http://peterthomas.wordpress.com/category/business-intelligence/sas-bi-ba-controversy/

Intellectuals can carry huge grudges for decades ( Newton and Liebnitz) or Me with people who delay my interviews.

Teradata

1) Teradata has been a big partner with both SAS and SAP. It has also been losing ground recently in the same scenario SAS will shortly face.

It was also spun off in 2007-8 by the parent company NCR

http://it.toolbox.com/blogs/infosphere/against-the-flow-ncr-unacquires-teradata-13842

So will SAS buy Teradata

Will SAP Buy Teradata

Will SAS merge with Teradata and acquired by SAP while reaching a compromise with both WPS and R Project.

Will SAS call the bluff, make sincere efforts with the GPL and academic community to reconcile, give away multiple SAS Base and SAS Stat licenses in colleges and universities (like Asia, India, China) by expanding their academic program globally, start offering more coverage to JMP at a reduced price, make a trust for succession.

I dont know. All I know is I like writing code and poetry. Any code that gets the job done.

Any poem that I want to write ( see scribd books on the right)

SAS Institute invests in R project

A SAS spokesperson has confirmed to this blog that they have invested in the R –Core project to help build next generation algorithms . The new R powered SAS would not be sold as licenses but would be hosted on Amazon EC 2, thus users pay only for the time of usage.The shift to SaaS is expected to boost SAS’s revenue while at the same time helping small consultants and big clients like banks to cut costs.The official announcement had been planned for release during the RUser conference however the announcement was moved earlier due to rumors building up early this week due to leakages from SAS R and D ( called birdie leakages). The size of the investment is expected to be more than 20 million USD , the exact amount is expected to be disclosed later.The R Core team would be using this for much needed investments in GUI development and up gradation of the website besides offering R courses in East European universities. An expectation of an annual prize for R User of The Year is also expected to take place.

Also  Jim Davis ,SVP Marketing ,has clarified that he did not mean to demean all business intelligence industry by his remarks at SAS Global Conference that

“ Business intelligence is an over-used term that has had its day, and business analytics is now the differentiator that will allow customers to better forecast the future especially in this current economic climate.Business intelligence doesn’t make a difference to the top or bottom line, and is merely a productivity tool like e-mail.

He clarified  that this was just a part of the annual summer marketing campaign and he was just doing his job as marketing person. Which person in marketing does not send messages against the competition,” he pleaded.

In an unrelated development, Anne Milley ,head of strategy at SAS has been appointed leader for video conferencing to cut down on SAS institute’s frequent jet flyer miles.

Bi , Ba and Bs

Business intelligence is an over-used term that has had its day, and business analytics is now the differentiator that will allow customers to better forecast the future especially in this current economic climate.Business intelligence doesn’t make a difference to the top or bottom line, and is merely a productivity tool like e-mail.

Quote from Jim Davis ,

SAS Institute Inc.’s senior vice-president and chief marketing officer.

Pigeon-holing one element or another as backward-looking and another as forward-looking doesn’t even make much marketing sense, let alone being a tenable intellectual position to take. I think it is not unreasonable to expect more cogent commentary from the people at SAS than Mr Davis’ recent statements.

Post from Peter Thomas, Business Intelligence Guru.

Bottom line, it’s all fluff. I don’t like the term business analytics; it doesn’t tell me anything. Frankly, I think business intelligence as a term is downright laughable, too. What does that mean?

Post from Neil Raden Founder of Hired Brains

Here are my views on this

  • Is the distinction pure branding or semantics. Or is it rebranding  because SAS is the leader and the biggest business analytics and would not be the biggest business intelligence vendor- thus marking a tactical and aggressive shift in their strategy -
  • Also SAS remains the largest independent private business and the recent consolidation in this industry could be unsettling to people who want to keep it independent.
  • Ultimately customers vote with the cheque books –

call it business intelligence, business analytics or business as usual.

Bi,ba or bs