WHITE PAPER How to leverage a Worldwide SAP Business Intelligence Core Model for local subsidiaries?
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1 WHITE PAPER How to leverage a Worldwide SAP Business Intelligence Core Model for local June
2 Index Introduction...p: 3 Understand existing core model and reports/training....p: 4 Benefits Locally from Global developments....p: 5 Take full advantage of your subsidiaries contribution..p: 5 Create governance: global reporting/local development....p: 6 How VISEO can help you?....p: 6 USA - France - Germany - Hong-Kong - Morocco - Singapore p:2
3 In the past few years Business Intelligence systems became one of the key tools in any organization. On the one hand, the growing worldwide economy spreads the information in many different countries. Therefore, worldwide companies, whatever their size, have a strong need to consolidate the data from all their subsidiaries abroad. They use Business Intelligence tools to report formatted information at a global level. Indeed, even if the countries of the subsidiaries have different laws and habits; the data must fit the management rules of the group for coherent information. On the other hand, the heterogeneity of systems (ERP, CRM, SRM, Masterdata, EDI, Planning and Trending tools) generates a major difficulty to reconcile the information and a Business Intelligence tool is strongly key to drive business. In that environment, most of the companies that previously invested in a ERP, decided to implement a Business Intelligence tool. Applying the same rules as for the ERP implementation, we ve seen the emergence of Business Intelligence Core Models. Back in 2003, Forbes Magazine already stressed out the fact that 82% of senior executives believe that the information they need to make decisions is available in the company, but very hard to get a hold of. It is true that the more global the information is, the faster the company needs to quickly respond to opportunities, risks, and threats. To face these challenges and ensure the respect of the reporting standards, the management rules, and the quality of the consolidated information, companies have designed Business Intelligence Global architectures. However, this Global reporting may not be satisfying for the local subsidiaries as it does not take into account their specificities: legal requirements and intercultural know-how (culture, language, habits). In this global perspective, a win-win relationship must be found between headquarters and subsidiaries. Indeed, along with our experience we have identified that expectations from a Business Intelligence solution may be different from those who designed it and those who have to use it. In many of our projects, we have managed to work with both HQ and local entities to create and identify synergies between global and local reporting and, doing so, contribute to that win-win relationship. Consequently we would like to bring on the table pieces of answer for the following question: How to leverage a Worldwide SAP Most of the time, a core model is designed centrally in order to implement the group golden rules that manage the pertinence of the global information. The core model developed is then transmitted to local subsidiaries and faces several hurdles. USA - France - Germany - Hong-Kong - Morocco - Singapore p:3
4 Understand existing core model and reports/training One of these hurdles is how the core model is accepted and understood by the local subsidiaries. Indeed, local subsidiaries are not systematically (and sometimes they are never) involved in the core model design, hence they don t bind into it when it is deployed in their country. This lack of involvement may lead to a no-use and a reject of the global solution at local level. This is the Business Intelligence paradox: Even if 80% of a BI project is spent on gathering requirements and building the model, 99% of its success is conditioned to user acceptance of the front-end design and user understanding of the solution source: Dr. Bjarne Berg, myitgroup Ltd. To prevent this, an organization must relay the global headquarter strategy and management rules to the local key users during the core model deployment and need then to Identify Local Ambassadors. In other words, involving local users will help the core model better been used at a local level and it can help the core team move their focus to the next implementation, while ensuring local support and empowering Ambassadors to help the users in each organization. Some of the local ambassadors tasks are: Customize for local needs: help local requirement arise and fit gap analysis Reconcile old and new reports Provide local support for delivery Ensure reusability of the solution Help in change management A survey of 84 companies from The conference board stated the following: Thanks to these ambassadors, you give your core BI solution a chance to get used at a local level. Nonetheless, even if it is understood, a core model can be rejected. USA - France - Germany - Hong-Kong - Morocco - Singapore p:4
5 Benefits Locally from Global developments Most of the time the information needed by local subsidiaries are in the Business Intelligence system but they are not used by a core report. Indeed, a core model can be compared to a vertical business content developed by the company for the company. As any other business content it fixes the business rules for reporting but needs to be adapted. Nonetheless, this development can be leverage through local enhancements. Without, changing any part of the core team model, the local subsidiaries can benefit from the extractors and cubes already existing to develop their own reporting. Morris Lenczicki, VP Industrial Systems Applications at L Oréal North America Operations is commenting: I think that emphasis on global workshops, to benefit from the various local specifics and expertise is crucial in developing worldwide solutions that are utilized by all. This assists in recognizing what is core solution and what is required to be unique for legal/tax reasons. Indeed, as a core report will not fit into 100% of local rules and laws, local subsidiaries could work with the system to leverage the data and create local reporting. Those Quickwins ensures a fast ROI as most of the development is already done, making the best money out of the Global BI Solution and decreasing TCO. Take full advantage of your subsidiaries contribution Moreover, we have seen in Business Intelligence roll-out that the local subsidiaries could take some of the development cost to enhance the core model. For Kent Weiss, VP of Finance at L Oréal North America Operations the necessity for local development is not only for local regulations or local particulars, it is also to call upon a larger pool of talent throughout the organization to foster creative ideas that can lead to better global solutions (as is the case for us when we implemented the financial cockpit it is a world development/improvement). The figure below summarizes the situation of a Core Model against Local Requirements and what can you leverage from local reporting : Prior to starting these local developments, an organization and procedure must be discussed between all actors in order to define roles and responsibilities. USA - France - Germany - Hong-Kong - Morocco - Singapore p:5
6 Create governance: global reporting/local development One of the key success factors to leverage a Worldwide SAP subsidiaries is to clearly discuss roles and responsibilities. For Morris Lenczicki, it is important to emphasize that a core solution is the basis, we do not allow developments in local sites that are not applicable worldwide. Here are some of the questions that should be answered to succeed in creating local governance: Are local subsidiaries able to submit new development requests to core team? Are local subsidiaries able to create local queries on existing data? Who will be responsible for maintaining the local development? Who supports the cost of the core team validation of local developments? Are local subsidiaries able to enhance core model? This non thorough list of questions represents the first step that will lead your business intelligence core model rollout to a 100% success. In addition to this, we have identified other key success factors for a BI Core Model deployment: Understand strategy and management rules implied in the solution design Identify local sponsors and key users to relay this strategy Train the local trainer to the solution Define governance for local adaptation of the global core model How VISEO can help you? Due to our strong experience in rolling out ERP Core Model or Business Intelligence Core models we have noticed that leveraging a SAP BI Core model for local subsidiaries is a win-win solution for both local subsidiaries and core team. Indeed we strongly believe that working together on these aspects will bring: User adherence to the core solution Increase ROI of the core solution Enhance / improve of the core solution thanks to local initiatives and developments Decrease the workload from core team due to local expertise USA - France - Germany - Hong-Kong - Morocco - Singapore p:6
7 VISEO USA Inc. Suite Village Bd Princeton, NJ, T: F: contact_usa@viseo.net VISEO PARIS 38, rue de Ponthieu PARIS T: +33(0) F: +33(0) contact_paris@viseo.net
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