BI Strategy: Getting to Where You Want to Go with a Business-Driven Strategy

BI Strategy: Getting to Where You Want to Go with a Business-Driven Strategy ASUG IL Chicago Chapter Meeting, Nov. 1, 2013 Pat Saporito, Global Center of Excellence

Agenda Business Challenges Importance of a BI Strategy How SAP Can Help in Defining Your BI Strategy Best Practices Additional Resources 2013 SAP AG. All rights reserved. 1

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

BI & Analytics Maturity Model Levels of performance along the BI best practice framework Information and Analytics (Business & KPI, ad hoc, measurement) Governance (Business participation, selfservice, BICC) BI Maturity Stages Level 1 Requirements driven from a limited Executive group IT Driven BI Governance Level 2 KPIs/Analytics are identified, but not well used Business Driven BI Governance Evolving Level 3 KPIs/Analytics are identified and effectively used Business Governance with Competency Center Developing Level 4 KPIs/Analytics used to manage the full Value Chain 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 not 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 2013 SAP AG. All rights reserved. 3

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. 4

The Importance of a BI Strategy

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. 6

Do you have a BI Strategy? Your 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. 7

Questions Answered by BI Strategy What information do we need to make data driven decisions? What is our vision for information access and usage? What capabilities do we need to make information available and useful? 2013 SAP AG. All rights reserved. 8

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. 9

Organizations Need a BI Strategy Store Operations Merchandising IT Business Intelligence Strategy HR Supply Chain How does a BI Strategy benefit IT? Marketing Finance How does a BI Strategy benefit Business Users? Helps align with business partners, formalize business needs Creates prioritized roadmap for the enterprise of short, medium and long term projects aligned with strategic business goals delivering measurable results Creates business justification for an enterprise scope and endto-end BI including data management Helps departmental spend go further and contribute to enterprise investments required Removes limitations of departmental focus and extends data asset use and leverage across business units. Provides a unified approach by all departments allowing everyone to speak the same language. 2013 SAP AG. All rights reserved. 10

How SAP Can Help in Defining Your BI Strategy

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

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 KPIs 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. 13

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 Creates high-level summary of BI needs by LOB and their expected impact if addressed Assesses existence of BI Strategy, completeness of execution, and impact if completed Prioritizes Gaps of existing BI needs and non-existent or poorlyexecuted strategy components With prioritized Gaps, promotes the benefits of addressing the gaps and maps capabilities to solve business pains 2013 SAP AG. All rights reserved. 14

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

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 Creates high-level summary of BI needs by LOB and their expected impact if addressed Assesses existence of BI Strategy, completeness of execution, and impact if completed Prioritizes Gaps of existing BI needs and non-existent or poorlyexecuted strategy components With prioritized Gaps, promotes the benefits of addressing the Gaps and maps capabilities to solve business pains BI Strategy Self Assessment Survey http://www.sap.com/bistrategy 2013 SAP AG. All rights reserved. 16

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 Creates high-level summary of BI needs by LOB and their expected impact if addressed Assesses 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, promotes the benefits of addressing the gaps and maps capabilities to solve business pains BI Strategy Workshop: Talk to your about this facilitated service 2013 SAP AG. All rights reserved. 17

Business & IT Workshop Sample Agenda: 1.5 Days Time Title Length Topics Covered Presenter Day 1 9:00-9:15 am Welcome & Intro 15 min. Introductions, Objectives Customer Sponsor, SAP 9:00 9:45 am Art of the Possible 30 min. Data to Decision Vision Vision Videos SAP 9:45 10:30 am BI Strategy, IT/BI Org Structure, Initiatives, Gaps/Issues 10:45 11:45 BI Strategy & BICC Role/Best Practices 45 min. Current BI Strategy Existing BI/BICC initiatives & org Gaps/Issues 60 min. BI Maturity Model, BICC Capabilities/Services; BICC Org Structures, Roles, Skills; Governance Model; BICC Metrics, Scorecard Customer, SAP SAP Facilitator 1:00 3:00 pm Business Interviews 45 min each Current Pains Key Analytic Related Initiatives SAP Facilitator 3:15 5:00 IT Interview Playbook 1 & 2 Day 2 45 min Current Pains Current BICC Capabilities SAP Facilitator 9:00-10:30 Gap Assessment Discussion 90 minutes Review & discuss initial findings SAP Facilitator 10:30 11:30 Next Steps 60 minutes Review and discuss next steps SAP Facilitator Customer 2013 SAP AG. All rights reserved. 18

Best Practices

BI Strategy Best Practices Summary Find a high-level executive sponsor Define and prioritize business needs Conduct Gap assessment of current vs. future capabilities needed Define & build capabilities needed using a roadmap Don t under estimate culture and change management 2013 SAP AG. All rights reserved. 20

BICC Effectiveness Organizations with a BICC/COE vs. Without a BICC 4.0 Support Equivalent FTEs/100 Active Users 2.8 2.6 No BICC BICC Certified BICC Organizations with a BICC require fewer support FTEs than those without a BICC 2013 SAP AG. All rights reserved. 21

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 3 2013 SAP AG. All rights reserved. 22

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. 23

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. 24

BICC 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. 25

BICC Strategy Map and Balanced Scorecard 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 250 15 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 / Sandbox 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 5 95.999% Repository incentive program Configure BOE Lab environment $50k $100k Communicate Measure Execute 2013 SAP AG. All rights reserved. 26

BI Competency Center: It s Never Too Early, or Too Late Establish a BICC Get sponsorship Appoint a leader Pick an organizational model Start with a pilot (4-6 weeks) Tie to a key initiative Engage the business through the SAP BI Self Assessment Upgrade an Existing BICC Assess annually; measure your maturity; update your roadmap Review and corporate strategic initiatives and BI Strategy Include new technology table stakes : Mobile, Self Service, Big Data Develop/update your BICC dashboard Add a BI Community of Practice Talk to your Account Executive about a SAP BI Strategy Workshop 2013 SAP AG. All rights reserved. 27

SAP Business Analytics Strategic Advisory Services Highly flexible and tailor-made Business Analytics Strategy, Vision, Transformation Roadmap and Target Architecture Delivery Identify key strategic business drivers Define Analytics Vision & Strategy Prioritize Analytics investment spend Determine a tailor made Analytics Roadmap and milestones Determine E2E Analytics Target Architecture Recommend Analytics Governance Model Recommend Analytics Standards and Processes Identify organization change management needs 2013 SAP AG or an SAP affiliate company. All rights reserved. 28

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. 29

Useful Resources BI Strategy Workshops: SAPInsider/Reporting & Analytics Conference, Oct. 19, Orlando, FL Take the BI Self Assessment: www.sap.com/bistrategy BI News: www.sap.com/binews Blogs on BI Strategy http://scn.sap.com/docs/doc-30479 http://scn.sap.com/docs/doc-30480 http://scn.sap.com/community/business-intelligence/blog/2012/12/07/bi-strategy-bicc-a-key-elementto-your-bi-program http://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competencycenters-take-center-stage-again http://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-programdefine-track-and-measure-success/ Contact your account executive to explore your potential savings with the SAP BI Standardization Cost Calculator 2013 SAP AG. All rights reserved. 30

Thank you Pat Saporito Sr. Director, BI; Global Center of Excellence for Analytics SAP Labs, LLC www.sap.com T (201) 681-9671 Pat.saporito@sap.com Twitter: Pat.Saporito LinkedIn: www.linkedin.com/in/patriciasaporito

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