bihana2015 saporito cs_fs for bi strategy roadmap_short

Pat Saporito, SAP

@patsaporito

Critical Success Factors to Develop and Deliver

a Forward-Looking BI Strategy and Roadmap

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1

Agenda

Business Challenges

BI Strategy Definition and Goals

SAP BI Strategy Framework and Assessment

Resources and Capabilities Needed

Wrap-up

Business Challenges


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


Personalized Insights

Advanced Planning and Forecasting

Sensing and Responding

Predictive Modeling

Real-Time Analysis

A Changing Relationship with Information


Technology Is Not the Problem

Between 70% to 80% of corporate business intelligence projects fail (to

meet expectations), according to research by Gartner

“Organizations tend to throw

technology at BI problems. You could

have the right tool, but it could be

doomed to failure because of political

and cultural issues, an absence of

executive support so the message

doesn’t get out, and poor

communication and training.”

BI Strategy Definition and

Goals


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

“

”


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


Key Issues and Pains Encountered by Stakeholders Across All Lines of Business

How do we align

staff with customer

demands?

How do we

manage our

inventory to meet

market demands?

There’s too much

of ad hoc reporting.

How can I provide

self-service BI to

my business?

How do we improve

the shopping

experience?

How do I attract

budget-conscious

customers into

stores in this

economy?

What is the sales

and margin

performance

across different

channels?

What is

the profitability

per square foot?

IT

Store Operations Merchandising

HR

Supply Chain

Marketing

Finance


Organizations Need a BI Strategy

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

Create business justification for an enterprise scope and end-to-

end BI, including data management

How does a BI strategy benefit IT?

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”

How does a BI strategy benefit a LOB?

IT

Store Operations Merchandising

HR

Supply Chain

Marketing

Finance

Business Intelligence Strategy


Goals of an Effective BI Strategy

Increase user satisfaction

Avoid frustration and time wasted accessing information across multiple

systems

Enable better business analytics, insight, and collaboration

Deploy self-service reporting & analytics capability across the organization

Control for predictable and consistent BI solutions

Single point of administration

Better project estimating

Knowing when to use the right tools for the right job

Save money

Save wasteful duplication of costs for every aspect of your BI projects, also

known as “leveraging,” “reusing,” “consolidating,” and/or “rationalizing”


Addressing Customer Challenges with Effective BI

Strategies

Business Intelligence Complexity

End-user adoption is crucial to success of any BI initiative

Too many different tools with steep learning curves

Complex data models beyond the understanding of business

User Accessibility

Lack of self-service models

Business needs driven by IT timelines

Ease of use and flexibility of reporting environment to wider user community

Flexibility to Respond to Change

Technology cannot keep up with the speed of thought

Data models quickly get out of sync with business models

No “one-stop” data access to support quick response

Information Fragmentation

Information is locked away in application silos and heterogeneous sources

Integrating information requires expert knowledge

Disconnect between analytic and operational applications

SAP BI Strategy Framework

and Assessment


Enterprise Business Intelligence/Analytics Strategy to Execution

BI Execution

Feedback to

Strategy

BI Strategy

Link and Align Strategy to Execution Business Driven

Strategically Aligned

• Executive Business BI Sponsor

• BI Governance

• BICC and BI Team

• Information Architecture

• Technologies and Tools

• Sustained Funding

• Data Governance

• Trusted Data/Data Confidence

• User Training and Development Needs

• Increased User Adoption

• Increase BI Maturity

Plan – Communicate – Refine Execute – Monitor – Optimize

User Access & Usability

Improved Decisioning

BI Strategy

& Roadmap

Corporate

Strategy

New Data/

Capabilities

Real-Time

Analytics

Operational

Reporting

Exploration &

Visualization

Predictive

Analytics

Ad Hoc

Reporting

Corporate Data

Strategy &

Metrics


How SAP Can Help BI Strategy Assessment

Facilitates discovery of the current pain points

Prioritizes and looks at the business impact of alleviating those pains

Provides custom recommendations that represent actionable BI strategy

building blocks

Easy-to-use methodology to help

guide you through a strategic

discussion for BI strategy and solution

formulation within an enterprise-wide

scope


BI Strategy Framework Building Blocks of a Rock Solid BI Strategy

Objectives Business

Needs

Business

Benefit Technology Organization

Background and

Purpose

Current State and

History

BI Objectives and

Scope

Summary of BI

Needs

Envisioned To-Be

State

Priorities and

Alignment

Value Proposition

of BI

Expected Benefits

– Future State KPI

Business Case

Information

Categories

Architecture and

Standards

BI Applications

Governance

Structure

Program

Management

Roadmap and

Milestones

Measurement

Education/

Training

Support


Current BI Baseline Analysis

(Business Discovery)

BI Strategy and Execution Baseline

Gap Analysis BI Strategy

Recommendations

SAP’s BI Strategy Assessment Repeatable, Value-Based Methodology

Interactive discovery, prioritization, and recommendations for addressing business

pains and creating a successful enterprise BI strategy

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 in

existing BI needs and

non-existent or poorly

executed strategy

components

Promote benefits of

addressing prioritized

gaps and map

capabilities to solve the

business pain

Step 1 Step 2 Step 3 Step 4

Resources and Capabilities

Needed


Rx for BI Success:

BI Strategy + BI Center of Excellence (COE)

Understand Business Pains

Identify technology gaps

Focus on change management and

adoption

BI Strategy creates an information driven culture

The BI COE provides a sustainable framework to

execute the strategy and maintain it


BI Center of Excellence (BI COE) Also Called a BI Competency Center (BICC)

Cross-functional team with specific tasks, roles, responsibilities, and processes for

supporting and promoting the effective use of Business Intelligence across the

organization (Source: Gartner)

It has a permanent, formal organizational structure but is dynamic and evolves to

meet business needs

The BI COE acts as a center of expertise for BI; it drives and supports BI use

through the enterprise, including:

People (Developers and Users)

Knowledge and Business Processes

Culture

Technology and Infrastructure

The BI COE enables the organization to coordinate and complement existing efforts

in BI, reducing redundancies and increasing effectiveness. It is to increase user

satisfaction and adoption.


Critical Success Factor: Executive Sponsor

Sponsor Role

The Executive Sponsor “leads the

charge” at the senior management

level for analytics, as well as its

funding and its perceived business

value across the enterprise

The sponsor makes sure BI and

Analytics have executive visibility

and support, including funding

Candidates: Chief Analytics Officer,

CEO, SVP – Strategy

Supporting Your Sponsor

• You may need to coach your

Executive Sponsor and let him/her

know the role and what you need

• Make sure it’s not just a titular role;

give regular feedback

• Continuous two-way communication

is key

• Find success stories (internal or

external, customer or competition)

that will provide the ammunition to

make analytics visible and valued!


BI Competency Center (BICC)

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

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

Analytical Skills

– Fluency with key analytic applications

– Researching business problems and creating

models that help analyze these business

problems

Business Skills

Business Needs

Organization and

Processes

Governance,

Administration

Tools, Infrastructure,

Applications, Data

IT

Skills

Business Needs

Statistical and

Process Skills

Analytic

Skills

BICC

Establish

Standards

Control

Funding

Define

BI Vision

Manage

Programs

Build

Technology

Blueprint

Develop

User Skills Organize

Methodology

Leadership

BICC Business, Analytics, and IT Skills


Level 4 Level 3

Level 2 Level 1

Information

and

Analytics

Requirements are

driven from a

limited executive

group

KPIs and analytics

are identified, but

not well used

KPIs and analytics

are identified and

effectively used

KPIs and analytics

are used to manage

the full value chain

Governance

Standards

and

Processes

Application

Architecture

IT-driven BI

governance

Business-driven BI

governance

evolving

Business governance

with Competency

Center developing

Enterprise-wide BI

governance with

business leadership

Do not exist or are

not uniform

Exist and are not

uniform

Uniform, followed

and audited

BI “silos” for each

business

Some shared BI

applications

Consolidating and

upgrading

Robust and flexible

BI architecture

Evolving effort to

formalize

Information Chaos

Information Oversight

Information

Democracy

Information

Empowerment

BI/Analytics Maturity Model A Measure of BICC Stages of Excellence


BICC Effectiveness Organizations with a BICC/COE vs. Without a BICC

Support Equivalent FTEs/100 Active Users

Organizations with a BICC require fewer support FTEs than those without

a BICC

No BICC BICC Certified BICC

4.0

2.8 2.6

Wrap-up


BI Strategy/BICC Best Practices Summary

Assess your BI maturity

Define your desired future state

Establish a BICC/evolve your existing BICC

Ensure you have an executive business sponsor

Define and communicate your roadmap

Measure and communicate successes

Do not underestimate culture and change management effort

needed

Communicate – Communicate – Communicate!


Additional SAP BI Strategy Support Capabilities

BI Strategy Best Practices Workshop

BI Strategy Assessment and Workshop

BI Maturity Model and BI Benchmarks

Data Governance Best Practices Workshop

Strategic Advisory Services

ASUG/Business Objects User Groups


Next Steps www.sapbusinessobjectsbi.com/bi-strategy/

• Download the BI Strategy E-Book

• Take the BI Strategy Self Assessment

• Take the BICC Survey

www.sapbusinessobjectsbi.com/wp-

content/themes/sapbi/library/images/bistrategy/BI%20

Strategy.pdf

http://www.sapbusinessobjectsbi.com/bi-strategy



http://www.sapbusinessobjectsbi.com/wp-content/themes/sapbi/library/images/bistrategy/BI Strategy.pdf





http://www.sapbusinessobjectsbi.com/bi-strategy/

https://valuemanagement.sap.com/VLM/?ID=493&isNewUI=1&SurveyLanguage=English#/






Self-Service Online Assessment www.sap.com/bistrategy

A self-service online assessment tool that will help you identify business challenges

across your organization

http://www.sap.com/bistrategy


SAP BI Success Website www.sapbusinessobjectsbi.com/

http://www.sapbusinessobjectsbi.com/


Where to Find More Information

Patricia L. Saporito, Applied Insurance Analytics: A Framework for Driving

More Value from Data Assets, Technologies, and Tools (Pearson FT Press; 1

edition, 2014).


7 Key Points to Take Home

Data-driven companies are more successful than their peers

A solid BI strategy addresses the information needs of your entire organization

Both IT and the Business benefit directly from a well-developed BI strategy

High-level executive support is one of the key reasons for BI program success

People are the “KEY” for any BI program

Establishing a Business Intelligence Competency Center (BICC) is crucial for the

effective implementation of a BI strategy

SAP has developed a repeatable framework to help customers effectively develop and

execute custom-designed BI strategies tailored to the unique needs of their

organization. Take your first step with the SAP BI Strategy Self Assessment.

https://global.sap.com/campaign/ne/2012/03_cross_bi_strategy_assessment/index.epx?URL_ID=CRM-XM12-WWP-STP_BA15&kNtBzmUK9zU=1

© 2014 SAP SE or an SAP affiliate company. All rights reserved.

Thank you

Pat Saporito

Global Center of Excellence for Analytics

+1 (201) 681-9671

[email protected]

Twitter: @pat.saporito

More Resources:

BICC Blog Series Analytics from SAP

mailto:[email protected]

http://blogs.sap.com/analytics/2015/02/02/part-1-bicc-series-the-key-to-operationalizing-your-bi-strategy/


© 2015 SAP SE or an SAP affiliate company.

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Polling Questions


Do You Have a BI Strategy?

A. We have a clearly defined formalized strategy known by both

Business and IT

B. We have a broad BI strategy that is documented, but most known

only in IT

C. We don’t have but realize that we need to develop a formal,

busienss-driven BI strategy.

D. We do not have and have no plans to develop a formal BI Strategy.


Do You Have a BI Competency Center?

A. We have a BICC that incorporates both technical and

business/related aspects of BI.

B. We have a BI program management office, but it is primarily

focused on the technical side of BI.

C. We are planning to develop a BICC.

D. We do not have and have no plans to develop a BICC.


Do You Have an Information Governance Strategy?

A. We have an enterprise information governance function that

includes both transactional and analytic data.

B. We have an enterprise information governance function, but it does

not include analytics.

C. We don’t have, but have plans to create analytics data governance.

D. We lack awareness of the need for analytics data governance.

bihana2015 saporito cs_fs for bi strategy roadmap_short

Data & Analytics