Session 0905 ASUG SBOUC Align your Business and IT with a Solid BI Strategy. Deepa Sankar Pat Saporito

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1 Session 0905 ASUG SBOUC Align your Business and IT with a Solid BI Strategy Deepa Sankar Pat Saporito

2 Agenda Business Challenges The Importance of a BI Strategy How SAP Can Help in Defining Your BI Strategy Best Practices Wrap-Up 2013 SAP AG. All rights reserved. 1

3 Your business environment is changing Elevating the strategic importance of Analytics Dynamic markets driving data-driven business Advanced information needs becoming mainstream Increasing competition and rapidly changing industries New business models and revenue opportunities Pressure on margins; more demanding customers New information sources driving data explosion Online interaction and cloud computing Social media and digital communication Mobile devices and location information Machine and sensor data Technology innovation driving new IT Lower hardware cost, lower storage cost Faster CPU and memory New data storage and processing architectures 2013 SAP AG. All rights reserved. 2

4 A Changing Relationship with Information Personalized Insights Sensing and Responding Advanced Planning and Forecasting Predictive Modeling Real-time Analysis 2013 SAP AG. All rights reserved. 3

5 The Importance of a BI Strategy

6 BI Strategy Is Critical for Success "The lack of a clear, well developed, and articulated BI Strategy, along with appropriate executive sponsorship, are among the top reasons why BI initiatives do not achieve their potential or fail outright. Bill Hostmann, VP Distinguished Analyst, Gartner 2013 SAP AG. All rights reserved. 5

7 Do you have a BI Strategy? The BI Strategy consists of a BI architecture slide IT is asking the business what reports they need Step one is building a data warehouse There are no metrics defined to measure progress 2013 SAP AG. All rights reserved. 6

8 Questions Answered by BI Strategy Are business decisions made with insufficient information today? What is our vision for information access and usage? What do we need to make information available and useful? 2013 SAP AG. All rights reserved. 7

9 Key Issues and Pains Encountered by Stakeholders Across all Lines of Business How do we improve the shopping experience? Store Operations Merchandising What is the sales and margin performance across different channels? There s too much of ad-hoc reporting. How can I provide self-service BI to my business? How do we align staff with customer demands? IT HR How do we manage our inventory to meet market demands? Finance What is the profitability per square foot? Supply Chain Marketing How do I attract budget-conscious customers into stores in this economy? 2013 SAP AG. All rights reserved. 8

10 Organizations Need a BI Strategy Store Operations Merchandising IT Business Intelligence Strategy HR Supply Chain Finance Marketing How does a BI strategy benefit IT? How does a BI strategy benefit a LOB? Help align with business partners, formalize business needs Create prioritized roadmap for the enterprise of short, medium and long term projects aligned with strategic business goals delivering measurable results Creating business justification for an enterprise scope and end-toend BI including data management Have departmental spend go further and contribute to enterprise investments required A departmental BI need often involves needing data from other groups. Solve the departmental pain points by removing limits of a departmental focus through an enterprise-wide strategy An enterprise BI approach provides a unified approach by all departments allowing everyone to speak the same language 2013 SAP AG. All rights reserved. 9

11 How SAP Can Help in Defining Your BI Strategy

12 How We Can Help Easy-to-use methodology to help guide you through a strategic discussion for BI strategy and solution formulation within an enterprise-wide scope Facilitate discovery of the customer s current pain points Prioritize and look at the business impact of alleviating those pains Provide custom recommendations that represent actionable BI strategy building blocks 2013 SAP AG. All rights reserved. 11

13 Building Blocks of a Rock Solid BI Strategy Objectives Business Needs Business Benefit Technology Organization Background and Purpose Summary of BI needs Value Proposition of BI Information Categories Governance Structure Current State and History Envisioned To-Be State Expected Benefits Future State KPI Architecture and Standards Program Management BI Objectives and Scope Priorities and Alignment Business Case BI Applications Roadmap and Milestones Measurement Education / Training Support 2013 SAP AG. All rights reserved. 12

14 SAP s BI Strategy Assessment Repeatable, Value-Based Methodology Interactive discovery, prioritization, and recommendations for addressing business pains and a successful enterprise BI strategy Business Discovery BI Strategy and Execution Gap Analysis BI Strategy Foundation Step 1 Step 2 Step 3 Step 4 Create high-level summary of BI needs by LOB and their expected impact if addressed Assess existence of BI Strategy, completeness of execution, and impact if completed Prioritize Gaps of existing BI needs and non-existent or poorlyexecuted strategy components With prioritized gaps, promote the benefits of addressing the gaps and map capabilities to solve the business pain 2013 SAP AG. All rights reserved. 13

15 Prioritized, Business Driven Needs - Recommendations 2013 SAP AG. All rights reserved. 14

16 Best Practices

17 BI Strategy Best Practices Summary Find a high-level executive sponsor Define and prioritize business needs Gap assessment of current vs. future capabilities needed Build capabilities needed using a roadmap Don t under estimate change management 2013 SAP AG. All rights reserved. 16

18 BICC Effectiveness Organizations with a BICC/COE vs. Without a BICC 4.0 Support Equivalent FTEs/100 Active Users No BICC BICC Certified BICC Organizations with a BICC require fewer support FTEs than those without a BICC 2013 SAP AG. All rights reserved. 17

19 BI Competency Center Operational Models Every organization is different; one or more of these BI Competency Center organizational models may work for you BICC as an IT Department Virtual BICC CIO Finance Sales Department BICC ICC 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. 18

20 BICC Skill Requirements Business, Analytic, and IT Business Skills Business Needs Organization and Processes Manage Programs Develop User Skills Business Needs Statistical and Process Skills Analytic Skills Define BI Vision BICC Organize Methodology Leadership Control Funding Establish Standards Build Technology Blueprint Governance, Administration Tools, Infrastructure, Applications, Data IT Skills 2013 SAP AG. All rights reserved. 19

21 BI Governance Strategies: Monitor Metrics Straw Model Delivered Return Pipeline Cost Usage Quality New projects pending New projects started Net ROI planned Net ROI achieved Projects delivered on-time Projects past due Controllable FTE Planned maintenance Facilities and lease Planned growth Uncontrollable Unplanned support cost Project overrun Outage Usage by subject area Usage by business unit Delivered quality percent Unplanned history reloads Unplanned history restatements Average response time Subject area load failures Infrastructure product errors raised Infrastructure product errors closed Operational Performance Uptime Load Time Outage Education System availability Subject area availability Infrastructure availability Business Unit response time Peak load performance Source availability Schedule performance Subject area load time Priority data load time Source system outages Planned infrastructure outages Unplanned infrastructure outages Subject area outages Business unit outages Support cases raised/closed/pending Cases by severity opened/closed/pending New courses offered CBT offered/taken FTE trained Support FTE certified Usage 30 days after training Usage 60 days after training 2013 SAP AG. All rights reserved. 20

22 Baseline BI Governance & Interactions Model Executive Steering Group Reviews status Reports ROI Makes recommendations Functional Working Group Organizational commitment Allocates funding Manages/accepts risks Directs and ratifies direction Sets policy Sets priorities Accepts risk Sets direction Champions change Provides input Operational status Project pipeline Issues & risks Management review Makes recommendations Manages operational effectiveness Directs strategy Champions change Provides input Individual Contributors Business Intelligence Team Provides operational support Manages information assets Supports user community Funding Operational direction Executive support Project pipeline Sets priorities Implements policy Seeks input Manages issues and risks Sets priorities Implements policy Consults to governance body Champions change Provides input on direction 2013 SAP AG. All rights reserved. 21

23 Wrap-Up

24 As Analytics Maturity Increases, the Business Intelligence Possibilities Become Endless Instantly predict market trends and customer needs Predict how market price volatility will impact your production plans Provide exactly the right offers and service levels to every customer Have a continuously-updated window onto future sales, showing changes in real-time See changes in demand or supply across your entire Supply Chain immediately Monitor and analyze all deviations and quality issues in your production process Understand what your customers and potential customers are saying about you, right now Predict cash flows to manage collections, risk, and shortterm borrowing in real-time 2013 SAP AG. All rights reserved. 23

25 Useful Resources BI strategy Workshop - Sep 11, Analytics track Take the BI Self Assessment BI News: Blogs on BI Strategy Contact your account executive to explore your potential savings with the SAP BI Standardization Cost Calculator 2013 SAP AG. All rights reserved. 24

26 Thank You! Session Id 0905

27 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see for additional trademark information and notices SAP AG. All rights reserved. 26

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