Defining a SAP BI Strategy Tim Nightingale SAP UK Ltd SAP AG. All rights reserved. 1

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1 Defining a SAP BI Strategy Tim Nightingale SAP UK Ltd 2013 SAP AG. All rights reserved. 1

2 Defining a BI Strategy Q1: What should a BI strategy do? Q2: What would you include in a BI Strategy?

3 Agenda Analytics Advisor User driven BI Strategy BICC Tool selection

4 Analytics Continue to Top Business and Technology Priority Lists Business Analytics is still #1 Rank Top 10 Business Priorities Top 10 Technology Priorities 1 Increasing enterprise growth Analytics and business intelligence 2 Delivering operational results Mobile technologies 3 Reducing enterprise costs Cloud computing 4 Attracting and retaining new customers Collaboration technologies (workflow) 5 Improving IT applications and infrastructure Legacy Modernization 6 Creating new products and services IT Management 7 Improving efficiency CRM 8 Attracting and retaining the workforce Virtualization 9 Implementing analytics and big data Security 10 Expanding into new markets and geographies ERP Applications Source: Gartner Executive Programs (2013) 2013 SAP AG. All rights reserved. 4

5 Not in Question Analytics Provide Proven Return on Investment >1000% Organizations earn an average of $10.66 for every dollar spent on deployments of analytics With such high returns, management teams should consider these technologies to be one of the most attractive investment opportunities Source: Analytics pays back $10.66 for every dollar spent (Nucleus Research, December 2011) SAP AG. All rights reserved. 5

6 Staying On Top Of Analytics Is A Challenge How do you integrate emerging technologies? How can you ensure success of critical deployments? How can you measure and maximize the return on analytics investments? How do you leverage analytics solutions to contribute to company objectives? 2013 SAP AG. All rights reserved. 6

7 Analytics Advisor Your Personal Expert for Analytics Analytics Advisors help CIOs and IT executives Analytics Advisor maximize the value of investments in SAP analytics solutions, optimize the total cost of ownership, and minimize the risks associated with deployments. Maximize Value Optimize TCO Manage Risks Increased confidence in the value of your long term SAP investments Better ability to leverage emerging technologies Increased ROI through closer alignment with SAP s analytics strategy Faster resolution of performance or operational challenges Reduced uncertainty about new SAP capabilities and products Avoidance of costly operational mistakes More effectively leverage SAP technology and solutions to address IT objectives Reduced costs gained through access to SAP best practices Reduced risk of delays and decreased performance 2013 SAP AG. All rights reserved. 7

8 Analytics Advisor Your Trusted Advisor for Analytics Solutions from SAP Analytics Advisor Primary customer advocate Advising on use of SAP offerings Providing access to SAP experts and resources Minimizing the risks associated with analytics solutions Strategic advisor Maximize the value of SAP analytics solutions investment Ensuring that project planning are in sync with strategic goals Recommending new business uses for existing and potential Analytics products Project and TCO advisor Offering timely, pertinent information to help mitigate risk and improve customer success Recommend Analytics Standards and Processes Ensuring effectiveness of resources (internal and external) Solution and technical advisor Guiding E2E analytics processes, with LOB/Industry and IT landscape context Coach and advise on architecture and roadmaps Advise on detailed capabilities of releases and patches 2013 SAP AG. All rights reserved. 8

9 Analytics Advisor A Committed Partner to Answer Your Analytics Questions Analytics Advisor - Help Providing Answers Where are we? Where do we want (need) to be? What capabilities will get us there? How do we execute? What What business decisions do are we made not have with insufficient information? to make? What What is our is our vision vision for information accessibility and and usage? What What should should the the high-level BI analytics roadmap roadmap of initiatives of initiatives look like? look like? What What capabilities are are required to make to make information available and and useful? What What are are the the dependencies? What metrics should we use to manage the implementation and fulfill analytics business goals? How should we design the processes, applications, and organization to fulfill our analytics vision? What toolsets should I use to fulfill our analytics vision? 2013 SAP AG. All rights reserved. 9

10 Agenda Analytics Advisor User driven BI Strategy BICC Tool selection

11 User driven BI Strategy Technology Management-Driven BI Is Not Necessarily Agile Centralized BI infrastructure, support for mission critical applications, driving toward a single version of the truth are the strategies that allow organizations to reap multiple business benefits. These benefits, however, often come at the price of BI applications that are complex, inflexible, and slow to react to fast changing business needs. Source: It s Time For A User-Driven Enterprise BI Strategy by Boris Evelson - Forrester 2013 SAP AG. All rights reserved. 11

12 User driven BI Strategy Business-Driven Homegrown BI Applications Are Agile But Don t Scale When technology management can t deliver, business users build their own BI applications focusing on instant gratification. But these efforts by non-technology professionals have their own set of challenges, and often result in applications that do not scale, contribute to the proliferation of silos, and pose high operational risk.. Source: It s Time For A User-Driven Enterprise BI Strategy by Boris Evelson - Forrester 2013 SAP AG. All rights reserved. 12

13 User driven BI Strategy Forrester Agile BI Approach Lets You Have The BI Cake And Eat It Too Embrace Forrester s Agile BI -- processes, organizational structure, and technologies that enable decision-makers to be more flexible and responsive to the fast pace of business requirements changes -- to balance business users need to produce their own content, while reducing risk and data silos, and achieving economies of scale. Source: It s Time For A User-Driven Enterprise BI Strategy by Boris Evelson - Forrester 2013 SAP AG. All rights reserved. 13

14 Agenda Analytics Advisor User driven BI Strategy BICC Tool selection

15 BICC Q3: Who has a BICC and how is it structured? Q4: Who doesn t have a BICC and why? Q5: What is your funding/charging operating model for the BICC?

16 Five Signs that a Company Needs to Improve its Analytics Strategy 1 The BI Strategy consists of a BI architecture slide 2 IT is asking the business what reports they need 3 Step one is building a data warehouse 4 None of the BI team members can articulate the company business strategy 5 There are no metrics defined to measure progress 2013 SAP AG. All rights reserved. 16

17 Organizations Need a Business Intelligence Strategy How does a BI Strategy Benefit IT? Helps align with business partners, formalize business needs. Creates a prioritized roadmap for the enterprise of short-, medium-, and longterm projects aligned with strategic business goals delivering measurable results. Creates business justification for an enterprise scope and end-to-end BI including data management. How does a BI Strategy Benefit a LOB? Departmental spend goes further and contributes to enterprise investments required. Departmental BI often needs data from other groups. An enterprise BI strategy removes data limitations of a departmental focus. Provides a unified approach by all departments (and IT) allowing everyone to speak the same language SAP AG. All rights reserved. 17

18 BICC Definition A Business Intelligence Competency Center (BICC) is a framework that incorporates all elements of Business Intelligence and enables an organization s BI strategy. The framework includes: Organization Governance Technical architecture and tools Data architecture Resources and skills Training and organizational change management (OCM) A BICC is the infrastructure that incorporates the Business and IT so that projects achieve their goals and provide a return on the client s BI investment SAP AG. All rights reserved. 18

19 BICC Is A Strategic Investment The BICC: Is not a transient structure Must exist as long as there is a need for an organizational BI capability Is not an end in itself Does not exist independent of BI projects Is operationalized through projects Must be designed with the mindset that asks, How will this actually work in daily business activities and project execution? Matures over time 2013 SAP AG. All rights reserved. 19

20 BICC Purpose To Address the Elements of a BI Strategy Business Alignment & Governance Move IT from order taker to strategic partner. Multi-level governance: enterprise (strategic); programs and project; process and operations. Organization Management Design the organization, roles and responsibilities for each client s circumstances (e.g., multiple divisions; global and virtual teams) Talent Management Assess current skills and practices to grow BI capability Organization Talent Management Business Alignment & Governance Best Run Business Intelligence Delivery & Operations Excellence Portfolio Management Infrastructure & Technology Portfolio Management Develop processes to define and evaluate initiatives, prioritize and balance, match resources, and manage portfolio Infrastructure & Technology Management Define hardware components, tools, and the underlying technology upon which the applications are built Delivery & Operations Excellence Develop build and run processes; key roles; KPIs for measuring customer satisfaction, enhancing business value, and reducing TCO 2013 SAP AG. All rights reserved. 20

21 Common BI Competency Center Operational Models BICC as an IT Department Virtual BICC CIO Finance Sales Department BICC Department BICC BICC as Part of Operations Distributed BICC COO Corporate BICC Division 1 Division 2 Division 3 Division 1 Division 2 Division SAP AG. All rights reserved. 21

22 BICC (or Center of Excellence) Organization Model Comparison Advantages Disadvantages BICC as an IT Department CIO Department BICC Depart. Virtual BICC Finance Sales. BICC as IT Department May have a centralized view of BI from a technical perspective initiatives can be coordinated centrally May be simple to manage due to clear reporting structure and role within the enterprise Corporate-wide view of business provided by CIO can facilitate effective trade-offs and alignment with other strategic initiatives Risks having insufficient business input, (understanding of information and decisionmaking needs, and requirements), as well as business sponsorship Has tendency to turn the program into a pure IT endeavor May endanger long-term funding if business benefits are not tracked or realized May lack needed visibility within the enterprise BICC as Part of Operations COO BICC BICC Distributed BICC Corporate Division 1 Division 2 Division 3 Virtual BICC Provides way to receive business input without having to dedicate resources fulltime Facilitates a breadth of perspective and visibility across the enterprise (to varying degrees) resulting from clear cross-functional participation Requires well-respected, strong leader, and clear, matrixed, reporting to make work Performance metrics also must be put in place to give validity to BICC related responsibilities of individuals primarily performing other roles Risks lack of support as business people may not be dedicated Division 1 Division 2 Division 3 BICC as part of Operations Focus is on BI for business use Likely receives senior management (COO) support Corporate wide view of business provided by COO can facilitate effective trade-offs and alignment with other strategic initiatives Business and IT participation needs to be closely managed so initiatives are developed with consideration of both technical implementation issues and business priorities Could be perceived as a corporate mandate without truly enlisting the Business Units Link with corporate ensures full senior Significant requirement for strong leader with management attention decision-making authority who can execute Participation of representatives from all cross-functionally, and has senior leadership business divisions leads to breadth of participation/access Distributed perspectives and broad visibility Must be sure to have appropriate IT and business involvement BICC Role clarity is crucial, as are BICC related performance metrics to give validity to BICCrelated responsibilities of individuals primarily performing other roles Each division could try to push their own agenda 2013 SAP AG. All rights reserved. without looking across the business 22

23 Design Considerations Degree of Centralization Centralized Co-ordinated Informal Independent Business Authority Design Authority Build Implementation Support & Maintenance Operations HIGH Business Input LOW HIGH Business Input LOW Characteristics Single global design and build team Implemented many times (maybe into a common system) Tightly controlled template Mandated synergies Global design authority maintains standards Multiple build and implementation teams share knowledge and resources Co-ordinated (virtual) support team Encourages synergies Multiple design and build teams share experiences through informal channels Synergies at the discretion of operating units Multiple design, build and implementation teams Little or no sharing of knowledge or skills Encourages diversity HIGH Degree of Enterprise Influence LOW 2013 SAP AG. All rights reserved. 23

24 BICC Skill Requirements BICC Business, Analytics and IT Skills Business Needs Statistical and Process Skills Analytic Skills Define BI Vision Manage Programs Develop User Skills Business Skills Business Needs Organization and Processes BICC Organize Methodology Leadership Control Funding Establish Standards Build Technology Blueprint Governance, Administration Tools, Infrastructure, Applications, Data IT Skills Business Skills: Understanding of line-of-business (LOB) needs Ability to help business managers set and balance priorities by analyzing consequences of choices and creating business cases An understanding of the organization's strategic business objectives and the role action-oriented information plays in achieving the corporate objectives Stewardship skills to drive standardization of official hierarchies, business vocabularies and other relevant business terminology, and to participate in semantic reconciliation and ongoing data-quality efforts IT Skills: Ability to understand the business intelligence infrastructure implications of business and analytic requirements Deep understanding of how to access and manage data required to support business and analysis requirements Deep understanding of diverse business intelligence and performance management tools and technologies Understanding of the differences in design and access characteristics of diverse data sources Data governance, architecture and management skills Data administration and metadata management skills Analytical Skills Fluency with key analytic applications Researching business problems and creating models that help analyze these business problems Working with the IT department to develop insight into how to identify data for a specific analysis or application Skills to train the users in how to transform data into action-oriented information, and how to use that information 2013 SAP AG. All rights reserved. 24

25 BICC Strategy Map and Balanced Scorecard Should Represent a Complete Program of Action Strategy Map Balanced Scorecard Action Plan Theme: Improve Decision Making Objective Measurement Target Initiative Budget Financial Standardize on BI Tools Lower BI TCO Reduce License Fees Reduce BI Infrastructure Costs Reduce Labor Costs of BI resources # of BI environments Annual BI Tool maintenance & support fees One < $75k BI Tool Consolidation Project Coterminous SW License negotiations $150k 1 FTE Supply Mgt (80 hrs.) Internal Customers Increase Productivity of Knowledge Workers Provide costeffective Innovative BI Solutions Provide efficient & easier access to info Provide latest BI SW functionality - capabilities End-User Satisfaction Survey # of Self-Service Knowledge Workers # of BI Services available 85% Favorable Services Online User Survey Project BOE Upgrade $5k $350k IT Service Management Support Training Gain efficiency through process improvement Improve 1 st time incident resolution Develop Online Training Programs Improve tracking of BI support incidents Reduce number of Help Desk intake channels % of 1 st time incident resolutions Time to resolve BI incidents # of online BI training courses # of Help Desk intake channels 60% 4 hours 10 intro, 5 advanced (2) 800#, Online entry BI-specific Education Program BI Incident Management improvement Program Service Desk Reengineering Program $150k $150k $200k Learning Knowledge Management Repository R&D BI Lab Develop the necessary BI skills Develop lab environment for innovation # of repository entries Avg. Rating of entry Availability of BI lab configuration 50 per month 4 out of % Repository incentive program Configure BOE Lab environment $50k $100k Communicate Measure Execute 2013 SAP AG. All rights reserved. 25

26 Basic Conflict BI programs have struggled to clearly define roles and responsibilities between IT and business users in a self-service BI delivery model. Top-down BICC Trusted information Efficient reuse Too report-driven Few BI programs have been able to find a workable balance between business user empowerment and governance with self-service data discovery. Bottom-up Self-service Flexibility Speed Experimentation 2013 SAP AG. All rights reserved. 26

27 Learnings from others The company deployed a first Global BI solution around 2000 together with the first SAP implementations No BI strategy No real BI strategy IT left to prioritize Multiple versions of the truth One truth Company Performance model Standard reporting One truth Anchored in finance Future vision Extend reporting to more users Redefine role More end-user flexibility 2013 SAP AG. All rights reserved. 27

28 A Change in User Profiles and Patterns Over a period of 7 years the company saw several shifts in its BI user group. The shifts seem to happen with shorter and shorter intervals. System Expert Favored Excel as front end Could live with poor performance Primarily used data from SAP General analyst Wanted to use web reports as well Interested in data from several sources Demanded better performance Expecting BI self service Want s information on mobile devices Not scared of technology, uses the right tool for the job 2013 SAP AG. All rights reserved. 28

29 Getting the Facts Straight The project was an eye opener for the management team. The main findings were: Tools Data Flexibility Ownership More userfriendly tools Data is too hard to understand Need to be able to create own reports Some had invested in own systems Need a wider variety of tools Need access to non ERP data in reporting Standard reports have limited value All preferred to be in a global system 2013 SAP AG. All rights reserved. 29

30 Acting on the Results BI Self-Service Approach More responsibility to end users More user-friendly tools Visual discovery Analytical Skills Training required Business and analytics skills Visual Skills Tools Doing visualization is really cool but if you apply the wrong graphs to the data you will not get a very good result. Some of my employees have had to actually take a course in visualization, just to be able to challenge the business. BI Manager 2013 SAP AG. All rights reserved. 30

31 Advice If your enterprise BI isn t agile, unofficial BI platforms will grow like mushrooms in the dark Learn from the business There is a lot of good practice that should be adopted Report development is highly iterative traditional IT dev processes didn t work Build a broad BI excellence Turning business information into insight should be considered a core competence A fragmented BI tool strategy will add cost and jeopardize the holistic view of BI The business will always require new capability stay current! Be two years ahead of the business It will take time to build BI experts Start now 2013 SAP AG. All rights reserved. 31

32 Phases and Deliverables Duration (9 weeks example) Establishment Baseline Analysis Gap Analysis & Target Formation Roadmap Formation 1-2 weeks before Adapt and send visit agenda (including workshops) and stakeholders Scoping and Planning Start Delivery Conduct discovery workshops Analytics Maturity Assessment Validate the current KPI framework Conduct fit/gap analysis and prioritize the gaps Develop in-depth Analytics target architecture Deliver the value proposition of the Target analytics vision Develop in-depth analytics transformation roadmap Final Presentation of the roadmap and recommendations Final Project Set up & Mobilization SAP s Analytics Vision Presentation SAP involvement Identify business & IT pain-points & opportunities Evaluate current governance model, analytics standards and analytics architecture Customer involvement Analytics Data, Technical and Security Architecture & Recommendations Governance Model Findings & Recommendations Analytics standards Findings & Recommendations 2013 SAP AG. All rights reserved. 32

33 BI/Analytics Maturity Model Key Role of Governance & BICC Information and Analytics Governance Standards and Processes Application Architecture BI Performance Stages Level 2 Level 1 Requirements are driven from a limited Executive group Not standardized or linked to business needs Few Operational reports with little business benefit Historical reporting. Information reliant on lagging indicators No Value KPIs IT Driven BI Governance Technology-centric organization and implementations No/little business participation in projects Weak end-user skills. No employee or manager self service No BI competency center Data access limited to few key individuals KPIs and Analytics are identified, but not well used Business Driven BI Governance Evolving Do not exist or are not uniform BI Processes and standards may be documented No service level agreements (SLA s) Design, development and management Verbal SLA's in place; no formal and regular update/negotiation process processes are informal Little to moderate reuse of information High use of generic BI objects or heavily Initial efforts to standardize master data customized development No reuse of data or information Occasional executive interest in data when considering major initiatives Non-standardized master data Data ownership is undefined or conflicting BI Silos for each Business Significant variances between BU s Limited access to information Users get what IT gives Ad-hoc patches & Upgrades No enterprise standardization Minimal documentation Weak to moderate business ownership of requirements Multiple sets of KPIs and information requirements often conflict Generic KPIs are not business optimized Value measurement is coincidental Low to moderate participation of Business in BI governance Considering a competency center Weak to moderate end-user skills. Some core group of super-users Employee Self Service (ESS) partially used Manager Self Service (MSS) not in place Proliferation of data access through Excel Some Shared BI Applications Variances between BU s with multiple BI systems Heavy reliance on spreadsheets and data manipulation Planned migration to better landscapes Documented plans for patches and upgrades Shared documentation Level 3 KPIs and Analytics are identified and effectively used Strong business ownership of requirements Common set of rationalized KPIs and information requirements Business relevance of every metric validated Value is tracked and reported Ad-hoc report development in place Business Governance with Competency Center Developing High Business Ownership to all BI Activities All BI activities guided by business goals Business case and ROI for BI projects Moderate end-user skills with pockets of strong users. No lack of super-users ESS fully adopted; MSS partly adopted BI competency center is new or developing Security and Authorizations becoming uniform Exist and are not uniform BI process and standards are documented but Evolving effort to formalize not always followed Informal governance group which is mainly responsible for issue resolution Written SLA's in place, but no formal and regular update process Moderate to heavy reuse of information. Master data standardized to large extent Each major data area has a senior champion who drives data standardization and quality Consolidating and Upgrading Initial attempts at implementing a Global Enterprise Data Warehouse (either logical or physical) Spreadsheets are used selectively Central tech support Patches up-to-date System consolidation planned and / or implemented Level 4 KPIs and Analytics are used to manage the full Value Chain Strong business ownership of requirements Increased use leading indicators for KPIs and analytics Collaborative development of requirements across the value chain Robust ad-hoc analytics and information availability (structured and unstructured) Enterprise-wide BI Governance with Business Leadership Enterprise participation on all developments Governance includes feedback mechanisms from the full value chain ESS and MSS fully adopted BI competency center is mature Standard support across the enterprise High security and authorization Uniform, followed and audited BI Process and standards are documented, consistently followed and audited Formal governance board in place for strategy and direction Written SLA's in place with formal and regular update/negotiation process Heavy reuse of information Master data is fully standardized Ownership and responsibility is established for all data elements used by the business Robust and flexible BI architecture Global Enterprise Data Warehouse implemented BI platform viewed as a strategic enabler for Business Ability for high-speed analytics Robust and user-friendly presentation layer High reliability of delivery to local, regional and global business needs 2013 SAP AG. All rights reserved. 33 Source: ASUG BI Benchmark Report, April 2007

34 7 Key Points to Take Home 1. Old approaches are no longer enough 2. Self-service BI is a wonderful business opportunity If done right, can dramatically improve business agility and IT/Business alignment 3. But it requires new cultures and ways of working You re no longer in charge and everybody has to compromise 4. Provide what the business needs, not necessarily what they want Service-oriented approach, but the customer is not always right 5. Community is the essential pillar No one person or team can do this alone build momentum and listen to feedback 6. Look for opportunities to simplify It s not about technology, but the right technology can help agility 7. Keep up momentum and success Look out for teaching opportunities, and market success widely and often 2013 SAP AG. All rights reserved. 34

35 Agenda Analytics Advisor User driven BI Strategy BICC Tool selection

36 Tool Selection Q6: Which tools are used in your organisation? Q7: How do you decide who has access to which tools?

37 Full Spectrum Business Intelligence Self Service Dashboards and Apps Reporting Discover. Predict. Create. Build Engaging Experiences Distribute Information Discover areas to optimize your business Adapt data to business needs Tell your story with beautiful visualizations Deliver engaging information to users where they need it Track key performance indicators and summary data Build custom experiences so users get what they need quickly Securely distribute information across your organization Answer related questions by interacting with pre-defined reports Build printable reports for operational efficiency 2013 SAP AG. All rights reserved. 37

38 Self Service Discover. Predict. Create. Agility for business analysts and business users Discover trends, outliers and areas of interest in your business Adapt to business scenarios by combining, manipulating, and enriching data Tell your story with self-service visualizations and analytics Forecast and predict future outcomes Portfolio Lumira Explorer Analysis Predictive Analysis* 2013 SAP AG. All rights reserved. 38

39 Dashboards and Apps Build Engaging Experiences Build engaging, visual dashboards Powerful environment to build interactive and visually appealing analytics Rich set of controls: buttons, list boxes, drop-down, crosstabs, charts Portfolio Design Studio Dashboards (aka Xcelsius) Use custom code to extend and build workflows 2013 SAP AG. All rights reserved. 39

40 Reporting Share Information High productivity design for report designers Portfolio Quickly build formatted reports on any data source Securely distribute reports both internally and externally Minimize IT support costs by empowering end users to easily create and modify their own reports Web Intelligence Crystal Reports Enhance custom applications with embedded reports 2013 SAP AG. All rights reserved. 40

41 Where is the content consumed? Self Service Discover. Predict. Create. Analysis Office Predictive Analysis Lumira Dashboards and Apps Build Engaging Experiences Design Studio Dashboards Reporting Distribute Information Web Intelligence Crystal Reports Analysis OLAP Explorer Design Studio Dashboards Exploration Views Web Intelligence Crystal Reports Explorer Design Studio Dashboards Exploration Views Web Intelligence Crystal Reports 2013 SAP AG. All rights reserved. 41

42 Where is the content created? Self Service Discover. Predict. Create. Analysis Office Predictive Analysis Lumira Dashboards and Apps Build Engaging Experiences Design Studio Dashboards Reporting Distribute Information Web Intelligence Crystal Reports Analysis OLAP Explorer Exploration Views Web Intelligence 2013 SAP AG. All rights reserved. 42

43 Who consumes the content? Self Service Discover. Predict. Create. Dashboards and Apps Build Engaging Experiences Reporting Distribute Information Explorer Design Studio Crystal Reports Dashboards Web Intelligence Exploration Views Executive Explorer Design Studio Web Intelligence Lumira Dashboards Crystal Reports Exploration Views Senior Mgmt 2013 SAP AG. All rights reserved. 43

44 Who creates the content? Self Service Discover. Predict. Create. Dashboards and Apps Build Engaging Experiences Design Studio Dashboards Reporting Distribute Information Crystal Reports IT Analysis Office/OLAP Exploration Views Web Intelligence Predictive Analysis Explorer Lumira Business User 2013 SAP AG. All rights reserved. 44

45 Thank you For more information: