2 3 04 Executive Summary 08 What is a BI Strategy 10 BI Strategy Overview 24 Getting Started 28 How SAP Can Help 33 More Information
3 5 EXECUTIVE SUMMARY EXECUTIVE SUMMARY TOP 10 BUSINESS PRIORITIES RANKING Increasing enterprise growth 1 Delivering operational results 2 Reducing enterprise costs 3 Attracting and retaining new customers 4 Improving IT applications and infrastructure 5 Creating new products and services (innovation) 6 Improving efficiency 7 Attracting and retaining the workforce 8 Implementing analytics and big data 9 Improving business processes 10 Business Intelligence (BI) continues to be a top investment priority for CEOs and CIOs alike. Companies are overwhelmed by ever- increasing volumes of data accelerated by mobile devices and social media. IT organizations are under siege to deliver meaningful analytics and enable business users with self-service tools and access to trusted data. In the Gartner Group 2013 CIO survey, Analytics & Business Intelligence was ranked #1. In the CEO survey, business analytics was ranked as the most important area of investment, with 71 percent of CEOs expressing interest in increasing spending. TOP 10 TECHNOLOGY PRIORITIES RANKING Analytics and business intelligence 1 Mobile technologies 2 Cloud computing (SaaS, IaaS, PaaS) 3 Collaboration technologies (workflow) 4 Legacy modernization 5 IT management 6 CRM 7 Virtualization 8 Security 9 ERP Applications 10 SaaS = software as a service; IaaS = infrastructure as a service; PaaS = platform as a service Source: Gartner Executive Programs (January 2013)
4 7 SAP BI Strategy Building Blocks A rock-solid BI Strategy covers the five citical areas shown here (see chart on the left). Organizations can ensure that their data assets, technologies and people are maximizing these resources for improved business performance through with a strategic, programmatic approach to BI that includes five key areas: Objectives Business Needs Business Benefit Technology Organization Background and Purpose Summary of BI Needs Information Categories Information Categories Governance Structure Current State and History Envisioned To-Be State Expected Benefits - Future State KPI Architecture and Strandars Program Management BI Objectives and Scope Priorities and Alignment Business Case BI Applications Roadmap and Milestones Measurement Education/ Training Support SAP can help you understand these key elements so you can define and deliver a BI Roadmap with milestones to ensure a strategic BI program that will boost productivity, accelerate key business processes, and power better, more relevant decisions across your organization through a BI Strategy Assessment and Workshop.
5 9 WHAT IS A BI STRATEGY? WHAT IS A BI STRATEGY? There is confusion over what a BI strategy actually is. When asked about their BI strategy: 27% 57% 17% Have a clearly defined BI and analytics strategy Don t have a strategy at all Don t know if they have one or not Source: IDC 2012 Vertical IT & Communications Survey. June N=4177 Here are some indicators that your BI strategy isn t fully formed: The BI Strategy consists of a BI architecture slide IT is asking the business what reports they need Step one of the strategy is building a data warehouse There are no metrics defined to measure progress A BI and analytics strategy empowers your workforce, giving them the right information at the right time and enables them to make good decisions. Your analytics strategy should not only address the information needs of your entire organization, it should also align IT and the business. A solid BI strategy is critical to pull together all BI assets and efforts across any company. Major barriers to building a successful BI strategy include lack of alignment between IT and the business and the tendency to jump to technology decisions or architecture diagrams without considering what business problems the organization is trying to solve. See this blog for more information: BI Strategy: Creating a Happy Marriage between BI and IT
6 11 BI STRATEGY OVERVIEW BI STRATEGY OVERVIEW Business intelligence (BI) is no longer an initiative just for IT. It s become the strategic initiative for the entire organization, for both IT and the business. Organizations face many challenges in managing their data and their business needs. Some of these challenges include: Over the years, BI has evolved into different shapes and sizes based on business needs, expectations, and budgets. However, not all BI programs are successful. If you have a BI program in place, how effective is it in supporting your organizational success? There are a number of reasons why programs are not effective: Poor communication between IT and the business Failure of IT ask the right questions or to think about the real needs of the business Absence of executive support Throwing technology at BI business problems Political and cultural issues Poor communication and training See this video to understand key aspects of a BI strategy: BI and Your Success See this blog for more details: Experience BI Nirvana with an Effective BI Strategy BUSINESS INTELLIGENCE TOOL COMPLEXITY End user adoption is crucial to the success of any BI initiative, but too many different tools with steep learning curves and complex data models beyond the understanding of the business can hinder adoption. INFORMATION FRAGMENTATION When information is locked away in application silos and heterogeneous sources, integrating that information often requires expert knowledge. This leads to a disconnect between analytic and operational applications. USER ACCESSIBILITY A lack of self-serve models combined with difficulty in using existing systems can inhibit reports being used by the wider community. FLEXIBILITY TO RESPOND TO CHANGE Business needs change rapidly so, since technology cannot keep up with the speed of thought, data models quickly get out of sync with business models.
7 13 Business intelligence (BI) continues to be the top investment priority for CIOs. An effective BI approach can benefit your IT and line of business (LOB) teams alike. BI STRATEGY OVERVIEW An effective BI strategy can help reduce or remove these challenges and can provide significant benefit to both IT and the business: Increase User Satisfaction Users avoid the frustration and time wasted accessing information across multiple systems, enabling better business analytics, insight and collaboration. Self-service reporting is deployed across the organization. Control for Predictable and Consistent BI Solutions With a single point of administration, project estimating is easier and more accurate. Users and administrators know which tools to use for which job. Save Money Save wasteful duplication of costs for every aspect of your BI projects, also known as leveraging, reusing, or consolidating/rationalizing (e.g., licensing, maintenance, training, administration/support and development costs).
8 15 BI STRATEGY OVERVIEW When starting the process of building or improving a BI strategy, here are some universal best practices that should be considered: Find an executive sponsor: The executive sponsor understands the value of business intelligence and will champion and promote the project across the organization. Create a BI Competency Center (BICC) or BI Center of Excellence (CoE): The BICC/BI CoE ensures the right people and program management practices are in place (see more below in following section on BICCs). Gain alignment between IT and Business: Identify goals and expectations across the organization and ensure they re closely aligned with the business objectives and business strategy Define architecture and standards: Develop and maintain standards regarding methodologies, definitions, processes, tools and technologies required to implement BI Develop a roadmap and measure your progress: Develop metrics that will measure both the implementation and ongoing success of BI You can find more information on these best practices in this blog: Business Intelligence Best Practices The analyst firm IDC has published a white paper on BI and analytics strategy best practices. You can find this white paper here: IDC Whitepaper
9 17 BI STRATEGY OVERVIEW The role of the executive sponsor cannot be overstated. According to research by the analyst firm Gartner, between 70% and 80% of corporate business intelligence projects fail. The primary reason for failure is: lack of sponsorship or engagement outside of IT lack of vision or strategy Lack of Sponsorship/Engagement Outside of IT Lack of Vision/Strategy Addressing Data Quality Issues Agreeing on Definitions/Business Vocabulary Organizational Culture and Political Issues Lack of Governance of BI and Information Creating Awareness and Ensuring Business Adoption Identifying the Right Metrics Inadequate Scoping Over-Reliance on Tools and Technology Inability to Change Based on Insight from BI Lack of BI-Related IT Skills Lack of Data Analysis Skills Timeliness/Latency of Data Delivery Source: MIT Sloan Management Review The executive sponsor should: Own the information culture/bi strategy initiative Define the goals and measures of the initiative Incorporate the initiative into mission and vision statements Put the right teams and resources behind the initiative Evangelize the initiative across the organization
10 19 Another essential part of a complete BI Strategy framework is a BI Center of Excellence (BICC) or BI Center of Excellence (BI CoE). The BICC/BI CoE incorporates governance, program management, BI strategy roadmap and milestones, education and training, and support. It comprises a crossfunctional team with specific tasks, roles, responsibilities, and processes for supporting and promoting the effective use of Business Intelligence across organizations (Gartner 2001). BICCs and BI CoEs are largely engaged in the organization and implementation areas of a BI Strategy. Read more about why a BICC/BI CoE is critical to getting the highest level of competency in your BI strategy here: Business Intelligence Strategy: BI Competency Centers Take Center Stage Again! This blog details different organizational models for a BICC, visibility and funding, and how to get started or evolve your existing BICC. BI Strategy: BICC, a Key Element to Your BI Program One of the components of a successful BICC is ensuring the members have the right mix of Business, Analytic, and IT skills. Business skills are needed to help business managers set and balance Business Needs Statistical and Process Skills Define BI Vision Manage Programs Develop User Skills ANALYTIC SKILLS BUSINESS SKILLS Business Needs Organization and Processes BICC Organize Methodology Leadership Control Funding Business, Analytics, and IT Skills A component of a successful BICC/BI CoE that ensures the members have the right mix of Business, Analytic, and IT skills Establish Standards Build Technology Blueprint Governance, Administration Tools, Infrastructure, Applications, Data IT SKILLS [Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007] priorities by analyzing consequences of choices and creating business cases. They also provide an understanding of the organization s strategic business objectives and the role action-oriented information plays in achieving the corporate objectives BI STRATEGY OVERVIEW
11 21 A good strategy includes aligning business partners, formalizing business needs, and delivering a comprehensive, strategic BI solution that identifies a shared set of goals and delivers planned results. BI STRATEGY OVERVIEW IT skills ensure that the BICC/BI CoE understand the business intelligence infrastructure implications of business and analytic requirements. Those skills are also critical in understanding diverse business intelligence and performance management tools and technologies as well as the differences in design and access characteristics of diverse data sources. Analytic skills help with researching business problems and creating models that help analyze these business problems as well as working with the IT department to develop insight into how to identify data for a specific analysis or application. There are three important elements of an effective BICC: Development of an effective BI Strategy Alignment with the IT Development Center of Excellence Creation or maintenance of a BI Center of Excellence dentification of overlapping business priorities as well as architectural scope and data scope. Developing an effective BI strategy requires identifying key stakeholders, identifying corporate strategy as it aligns with business needs, and identifying business and business unit priorities. The BI Center of Excellence is responsible for overseeing the development of a BI governance structure as well as the implementation of the BI Competency Center. Aligning with the IT Development Center of Excellence includes identification of BI Strategic, Program, Analytical and Technical skills. It also includes i Together, these three areas work together to ensure successful execution of the enterprise-wide BI strategy.
12 23 Key Elements of an Effective BICC This chart shows how everything works together to ensure successful execution of the enterprise-wide BI Strategy BI STRATEGY OVERVIEW Development of Effective BI Strategy Alignment with IT Center of Excellence BI Center of Excellence Identified Key Stakeholders Identified Corporate Strategy as it aligns with business needs Identified Business and Business Unit Priorities Confirmed Architecture Identified Data Sources Alignment with BI BICC priorities Confirmation of internal capability Identified impacted business processes Corporate IT BICC alignment with BI BICC Identification of BI Strategic, Program, Analytical and Technical skills Identification of overlapping Business priorities Identification of Architectural scope, overlap, etc Identification of Data scope, overlap, legacy systems, etc Confirmation of deployment capability Deployment of BI toolset by project type Development of BI Governance Structure Confirmed Executive Steering Committee Buy-in and involvement from all impacted stakeholders Identified and agreed priorities Defined and agreed accountability Defined and agreed roles and responsibilities Defined and agreed guidance, standards and templates Identified BI toolsets Defined toolset capability by project type Implementation of BI Competency Center Operationalize Defined business priorities Defined reporting needs Defined KPIs and supporting metrics Defined architecture Defined data needs Defined solutions and methodologies Confirmed capabilities Confirmed project priorities Confirmed project management process Confirmed project roll-out process Confirmed guidance, standards and templates
13 25 GETTING STARTED GETTING STARTED It s important to remember that developing a BI Strategy is not a one-time occurrence. It is a dynamic, ongoing process that continues to evolve as business needs change and as your BI maturity evolves. You can find more questions that are answered by a complete BI strategy program in this blog: Business Intelligence Best Practices The first step to developing a solid BI strategy is determining whether or not you already have one. In addition to knowing what a BI strategy isn t (for more information see the previous section on BI Strategy), there are several questions you should be able to answer if you have a BI strategy in place. Here are just a few: What is our vision for information accessibility and usage? What should the high-level BI roadmap of initiatives look like? What metrics should we use to manage the BI implementation and fulfillment of BI business goals? What kind of governance model do we need to support BI initiatives? Another consideration when evaluating your current BI strategy or creating a new one is where your organization falls in the BI Maturity Model. This will give you a sense of how well your company is executing whatever BI strategy might be in place and how closely you align with current best practices (See chart on the next page for more information). Once you have a good understanding of your existing BI strategy and where you fall within the BI Maturity Model, it s time to assess your organization s pain points and determine which of them are the highest priority. SAP s BI Strategy Self-Assessment Tool can help you identify pain points across lines of business (LOB) and offer guidance on which ones would have the most impact on the organization if resolved. To gain a complete overview of the organization, we recommend that multiple LOBs be involved in filling out the self-assessment.
14 27 GETTING STARTED BI and Analytics Maturity Model Advancing through the BI Maturity stages leads to better decision-making, better use of available tools and data, and reduced cost Information and Analytics (Business & KPI, ad hoc, measurement) BI Maturity Stages Level 1 Requirements driven from a limited Executive group Level 2 KPIs/Analytics are identified, but not well used Level 3 KPIs/Analytics are identified and effectively used Level 4 KPIs/Analytics used to manage the full Value Chain Governance (Business participation, self-service, BICC IT Driven BI Governance Business Driven BI Governance Evolving Business Governance with Competency Center Developing Enterprise-wide BI Governance with Business Leadership Standards and Processes (BI design/process, SLA, reuse, data ownership & standards) Application Architecture (Multiple/disparate systems, spreadsheets, delivery) Do no exist or are not uniform BI Silos for each Business Evolving effort to formalize Some Shared BI Applications Exist and are not uniform Consolidating and Upgrading Uniform, followed and audited Robust and flexible BI architecture When the self-assessment is complete, you will receive a customized set of recommendations for improvement. This will provide guidelines for immediate action, and you can take the assessment again later to determine overall improvement. You can find the BI Strategy Self-Assessment Tool here: SAP Self-Assessment Tool
15 29 HOW SAP CAN HELP HOW SAP CAN HELP You can also contact your Account Executive directly for more information. Visit this blog for more details about the methodology we teach in the facilitated workshops: Business Intelligence Best Practices AP Strategic Advisory Services for Analytics is designed to provide an agile and adaptive Analytics strategy treated as a living artefact that will be continuously refined to meet enterprise objectives. The service addresses three key areas: SAP has developed a four-step approach to developing a solid BI Strategy foundation. We start by helping you understand the current business pains and the impact of solving those pains. We also help you understand the extent of your current BI strategy capabilities, both formal definition and execution, and the impact of current gaps. From these two areas, we perform a gap analysis to identify the highest priority areas. The gaps in these areas are then addressed in a BI strategy foundation recommendation. If you re interested in having an SAP facilitator conduct a BI strategy assessment and workshop in your organization, go to our BI Success website and submit a workshop information questionnaire: BI Strategy Page Vision & Business Value for discovering the business drivers behind your organization s need for BI strategy Technology Alignment focusing on recommendations for improving/ growing the end-to-end solution architecture Transformation Roadmap describing how you can execute the people, process and technology recommendations as a set of projects and milestones Learn more and access the SAP Services for Analytics e-book which covers the the full portfolio of analytics services from SAP: business intelligence (BI), enterprise performance management (EPM), governance, risk, and compliance (GRC), and analytics services for industries.
16 31 SAP Strategic Advisory Services for Analytics The three key objectives the SAP Strategic Advisory Services addresses BUSINESS NEEDS DELIVERY APPROACH YOUR VALUE Tie business strategy to actionable analytics initiatives to contribute to company objectives Avoid risk of a build & burn solutions given lack of insights on the mid- to long-term direction Define a metrics framework to gauge the current state of the business and relate it to the enterprise objective A rock-solid end-to-end architecture and protect your investments 2-3 days onsite workshop conducted by Analytics Advisors Tailored break out sessions on the adoption of Analytics and what to do from organizational, technical and solution perspectives Capability driven discussions based on business priorities. Feasibility and ranking to pick Big hits + Quick wins Get initial guidance about the benefits, obstacles and setup for a successful Analytics Success Map to meet your business demands Focused advisory to determine your position and your way forward in Analytics Increased confidence in the value of your analytics investments to the right solutions
17 33 MORE INFORMATION MORE INFORMATION SAP has several resources available to anyone interested in learning more about BI Strategy and BI Competency Centers. BI Success Website BI Best Practices Survey Result A sample view of the BI Best Preactices survey results page Our BI Success website will help you: Learn what s new in the latest release of BI solutions from SAP, including the recently released SAP BusinessObjects Business Intelligence 4.1 Find customer success stories to help develop your own BI strategies and approaches to evolving BI in your company Receive our best guidance and recommendations for implementing and upgrading BI solutions from SAP, including customized upgrade recommendations Complete a short questionnaire about your current BI environment and receive customized recommendations in a handy PDF report Follow up with additional questions to our upgrade experts View the best how-to videos for BI best practices in the BI Academy section Content on this website is updated regularly, so check back often to see what s new. Our Value Management team has created a brief BI Best Practices survey that will let you see how your strategy compares to your peers and gain insights into improving your strategy and action plan. BI Best Practices Survey
18 35 MORE INFORMATION In addition to the ones already mentioned, there are several blogs available to help you develop your BI strategy. The BI Strategy Recap from SAPPHIRE NOW 2013 gives an overview of the top reasons why developing a BI strategy is important: Business Intelligence (BI) Strategy Recap from SAPPHIRE NOW This blog provides valuable information on how to drive value from your BI program and how to define, measure and track success. Driving Value from your BI Program Define, Track and Measure Success The June 2013 edition of the BI Newsletter offers a wide variety of articles around creating an information-driven culture. BI News: June Edition Our YouTube channels for BI Strategy and BI Competency Centers offer a wide range of short videos to help show the value and impact of a BI strategy and how BI Competency Centers fit within the BI strategy. Playlist: BI Strategy Playlist: BI Competency Centers Part of our Best-Run Business Intelligence and Analytics Webcast Series, the Top 5 BI Optimization and Strategy Considerations webcast shows how BI strategy can transform an organization. Best-Run Business Intelligence and Analytics Webcast Series The How Smart is BI Without a Strategy? series on VoiceAmerica presents an in-depth look at how BI strategy sets your roadmap for success and enables better decision-making across the organization. How Smart is BI Without a Strategy? Subscribe here to receive the monthly BI Newsletter. Get the latest on roadmaps, innovations and thought leadership for SAP BusinessObjects BI solutions. Read about best practices, relevant news, customer stories, and upcoming events. SUBSCRIBE NOW Part 1 Part 2 Part 3 Part 4
19 Contact your Account Executive for more information on developing and refining your BI Strategy. 37
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