real life, strategic bi strategy for your it organization
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TRANSCRIPT
© SAP 2009 / Page 1
Real-Life, Strategic BI Within Your Overall IT StrategyTimo Elliott, May 2010
© SAP 2009 / Page 3© SAP 2008 / Page 3
© SAP 2009 / Page 5
Topics
The CIO Challenge
BI Blooms and Expands
Routes to Strategic BI
Drinking our own Champagne
Conclusion
BI isn’t about getting the right answers — it’s about asking the right questions
The CIO Challenge
© SAP 2009 / Page 7
Through the Worst of IT
Gartner: “IT spending to rebound in 2010 with 3.3% growth after worst year ever in 2009”
© SAP 2009 / Page 8
The CIO is Becoming a True Business Partner
Brian Gammage, Gartner: “60% of CEOs believe IT is constraining the business”
© SAP 2009 / Page 9
The Credibility Gap
© SAP 2009 / Page 11
Top 10 Business Priorities Top 10 Technology Priorities
Improving business processes Virtualization
Reducing enterprise costs Cloud Computing
Increasing the use of information and analytics
Web 2.0
Improving enterprise workforce effectiveness
Networking, voice, and data communications
Attracting and retaining new customers Business intelligenceManaging change initiatives Mobile technologies
Creating new products or services (innovation)
Data/document management and storage
Effectively targeting customers and markets
Service-oriented applications and architecture
Consolidating business operations Security technologies
Expanding current customer relationships IT management
Gartner’s Top 10 Business and Technology Priorities for 2010
Top 10 Business and Technology Priorities in 2010 Source: Gartner EXP (January 2010)
BI Blossoms and Expands
© SAP 2009 / Page 13
The Ever-Expanding Definition of Business Intelligence and Performance Management
BusinessIntelligence
Reporting Query, Reporting, and Analysis
Dashboards and Visualization
Search and Navigation
Advanced Analytics
Enterprise Performance Management
Strategy Management
Planning, Budgeting and Forecasting
Profitability andCost Management Consolidation
Spend and Supply Chain
Governance Riskand Compliance
RiskManagement
Access Control
Process Control
Global Trade Services
Environmental, Health and Safety
Data Integration
Data Quality Management
Master Data Management
Metadata Management
Information Management
© SAP 2009 / Page 14
Hype Cycle for BI and PM
Research and “market” this…
..to get resources to Implement this
© SAP 2009 / Page 15
Priority Matrix
Years to Mainstream AdoptionBenefitLess than 2 years 2 to 5 years 5 to 10 years > 10 years
Transformational CPM Suites Closed-Loop Performance Management
Collaborative Decision Making
Enterprise Information Management Programs
Integrated Business Planning
Price Optimization and Management for B2B
Information Infrastructure
High Budgeting, Planning and Forecasting for CPM
Business Intelligence Platforms
Dashboards
Data Quality Tools
Data-Mining Workbenches
Spending Analysis
Business Activity Monitoring
Entity Resolution and Analysis
Financial Reporting with XBRL
Performance Appraisal/Assessment
Product Portfolio Optimization
Profitability Modeling and Optimization
Strategy Management
Web 2.0 and BI
Enterprise Metadata Taxonomy and Ontology Management
Marketing Performance Management
Sales Analytics
Sales Performance Management
Supply Base Management
Text Analytics
Moderate Excel as a Business Intelligence / CPM Front End
Web Analytics
Contact Center Performance Management
Data Discovery Tools
Interactive Visualization
Open-Source Business Intelligence Tools
SaaS Business Intelligence
Content Analytics
In-Memory Analytics
SOA-based Analytic Applications
© SAP 2009 / Page 16
Implementing BI Within a Larger “Information Workplace”
BI is not integrated with other Information Workplace tools, 60%
BI is tightly integrated with other Information Workplace tools, 2%
BI is somewhat integrated with other Information Workplace tools, 38%
Base: 82 IT decision-makers*
“To what extent is your BI environment integrated with other Information Workplace tools, such as portal, collaboration, search, or email?”
7%
1%
28%
47%
60%
40%
Other
We have no plans
Use hosted services or SaaS
Build and integrate our own
Use best-of-breed packagedsoftware
Use infrastructure vendors' IWplatforms
Base: 260 IT decision-makers† (multiple responses accepted)
“How do you plan to implement Information Workplaces? (select all that apply)”
Source: Forrester August 2008 Global BI And Data Management Online SurveySource: Forrester February 2007 US And UK Information Workplace Online Survey
Routes to Strategic BI
© SAP 2009 / Page 18
Technology has been a competitive differentiator for a long, long time
© SAP 2009 / Page 19
Figure Out What Your Executives Care AboutIncreasing Importance of Technology
IBM: Capitalizing on Complexity Survey
© SAP 2009 / Page 20
Figure Out What Your Executives Care AboutMore volatility, uncertainty, complexity
IBM: Capitalizing on Complexity Survey
© SAP 2009 / Page 21
How Critical Processes are (not) Managed TodayHuge Opportunity
Paladium Group “Operational Excellence: The New Lever for Profitability and Competitive Advantage”
© SAP 2009 / Page 22
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
© SAP 2009 / Page 23
Five Signs that a Company Does Not 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
None of the BI team members can articulate the company business strategy
There are no metrics defined to measure progress
© SAP 2009 / Page 24
Examples of questions typically answered by a BI Strategy include:
What business decisions do we not have sufficient information to make?
What is our vision for information accessibility and usage? What should the high-level BI roadmap of initiatives look like? What capabilities are required to make information available
and useful? What are the dependencies? What metrics should we use to manage the BI
implementation and fulfillment of BI business goals? How should we design the processes, applications, and
organization to fulfill our BI vision? What toolsets should I use to fulfill our BI vision?
© SAP 2009 / Page 25
Become an Analytics CompetitorEstablish BI strategy and governance
“ Make analytics part of your overreaching competitive strategy […] You’ll arm your employees with the best evidence and quantitative tools for making the best decisions—big and small, every day.
Source: Competing on Analytics by Thomas H. Davenport
Endorse the analytics culture, process, and skills at the company leadership level
Prepare to lead and utilize an analytics-focused organization for strategic and competitive advantage
Establish centralized leadership/ownership for analytics across the organization
Facilitate data sharing and establish best practices and standards
Utilize common technology and tools to avoid inconsistencies and simplify management
Establish standards across business processes
Business Process systems to generate relevant business data
Enterprise systems & architecture to store and present data to support the org. over 3-5 year growth
Champion from the Top
Establish Central Ownership
Maintain BI Standards
Use the Right Technology
© SAP 2009 / Page 26
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 BI Processes and standards may be
documented Verbal SLA's in place; no formal and regular
update/negotiation process Little to moderate reuse of information Initial efforts to standardize master data Occasional executive interest in data when
considering major initiatives
Exist and are not uniform
Uniform, followed and audited
BI “Silos” for each Business
Some Shared BI ApplicationsConsolidating and Upgrading
Robust and flexible BI architecture
Not standardized or linked to business needs
Few Operational reports with little business benefit
Historical reporting. Information reliant on lagging indicators
No Value KPIs
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
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
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)
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
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
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
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
No service level agreements (SLA’s) Design, development and management
processes are informal High use of generic BI objects or heavily
customized development No reuse of data or information Non-standardized master data Data ownership is undefined or conflicting
Evolving effort to formalize BI process and standards are documented but 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
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
Significant variances between BU’s Limited access to information Users get what IT gives Ad-hoc patches & Upgrades No enterprise standardization Minimal documentation
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
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
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
BI/Analytics Maturity Model – Stages of Excellence
Level 1
Level 2Level 3
Level 4
BI Performance Stages
Source: ASUG BI Benchmark Report, April 2007
© SAP 2009 / Page 27
From As-Is to Too-Be
Discover BI successes and user frustration to gather information for your BI strategy
Driving through the CFO: financial planning and budgeting, and extended reporting initiatives
Top-down management methodologies such as Balanced Scorecard, Six Sigma, etc.
Sharing information with customers, partners, and suppliers
Volume discounts, Policies
Widespread successful project-by-project usage throughout the organization
Bottom-up operational dashboards and embedded reporting
Executive KPIs
Extranet Initiatives
Office of Finance
Procurement
Operational BI
Departmental BI Projects
BI Strategy and
Standards
© SAP 2009 / Page 28
Best Practice Example: BICC Business, Analytics and IT Skills
Business Needs
Business Skills
Organization and Processes
Business Needs
Statistical and Process Skills
Governance, Administration
Tools, Infrastructure, Applications, Data
Establish Standards
Control Funding
DefineBI Vision
Manage Programs
Build Technology Blueprint
DevelopUser Skills
Organize Methodology Leadership
Analytic Skills
IT Skills
BICC
Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
© SAP 2009 / Page 29
Text
Business Intelligence Competency Center Duties
Business Intelligence
Program
BI Delivery
Data Stewardship
Training
Advanced Analytics
Support
Vendor Management
Data Acquisition
Business Intelligence Competency Center
Executive sponsor
© SAP 2009 / Page 30
Best Practice Example: BI Competency Center Models
Every organization is different, and one or more of these BI Competency Center organizational models may work for you.
BICC as an IT Department Virtual BICC
BICC as Part of Operations Distributed BICC
COO
CIO
ICCDepartment BICC
BICC
BICC
Division 1 Division 2 Division 3
Corporate
Division 1 Division 2 Division 3
Finance .…Sales
Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
© SAP 2009 / Page 31
Create and Promote Business Scenarios
© SAP 2009 / Page 32© SAP 2009 / Page 32
User Adoption
Segment users by business initiative, profile, and task See TDWI white paper: “Pervasive Business Intelligence: Techniques and
Technologies to Deploy BI on an Enterprise Scale”
© SAP 2009 / Page 33
Go (Double) MAD
Monitor
Analyze
Drill
GraphicalData
Summarized Data
Detailed Data
Managers
Analysts
Workers
Modeling
Advancedanalysis
Deliberate& act
Business Applications
“Advanced”
© SAP 2009 / Page 34© SAP 2009 / Page 34
BICC Strategy Map Example
IT Service Management
Perspective
Learning & Growth
Perspective
Contribution“The Business”
Internal Customer Perspective
Competency
Financial Perspective
Long-Term Shareholder Value
BI Efficiency BI Effectiveness
Impact on enterprise outcomes
Insure budgeting
discipline
Increase Asset Utilization
Deliver BI services at competitive cost
Deliver consistent, high quality BI
services
Support business unit needs with BI
Drive business unit success with
innovative BI solutions
Achieve Operational Excellence
Maintain a secure and reliable infrastructure that ensures business
operations
Manage service quality; deliver on
schedule
Optimize BI processes; lower unit
costs
Create and Support Business Unit Partnerships
Improve business unit productivity and
profitability
Partner with business units; understand their
strategies
Develop effective decision support
systems
Provide Strategic Support to the Business
Propose and deliver Information
Management Services
Understand emerging BI technologies
Attract, develop, and retain employees with
key competencies
Provide BI tools and techniques that enhance
the BI function
Foster a business and customer-focused culture
2007 Balanced Scorecard Collaborative and Robert S. Kaplan - Revised
Provide superior BI professional services
© SAP 2009 / Page 35© SAP 2009 / Page 35
The Strategy Map and Balanced Scorecard Should Represent a Complete Program of Action
Strategy Map
Theme: Improve Decision Making Objective
• Reduce BI Infrastructure Costs
• Reduce Labor Costs of BI resources
Financial Lower BI TCO
Standardize on BI Tools
• Provide efficient & easier access to information
• Provide latest BI SW functionality - capabilities
Increase Productivity of
Knowledge Workers
Support
IT Service
Management
• Develop the necessary BI skills
• Develop lab environment for innovation
LearningKnowledge
Management Repository
Communicate
R&D BI Lab
Reduce License
Fees
Provide cost-effective
Innovative BI Solutions
Training
Internal
Customers
• Improve 1st time incident resolution
• Develop Online Training Programs
• Improve tracking of BI support incidents
• Reduce number of Help Desk intake channels
Gain efficiency through process
improvement
Balanced Scorecard
Measurement Target
• # of BI environments• Annual BI Tool
maintenance & support fees
• One
• < $75k
• End-User Satisfaction Survey
• # of Self-Service Knowledge Workers
• # of BI Services available
• % of 1st time incident resolutions
• Time to resolve BI incidents
• # of online BI training courses
• # of Help Desk intake channels
Measure
• # of repository entries
• Avg. Rating of entry• Availability of BI lab
configuration
• 50 per month
• 4 out of 5• 95.999%
• 60%
• 4 hours
• 10 intro, 5 adv.
• (2) – 800#, Online entry
• 85% Favorable
• 250• 15
Services
Action Plan
Initiative Budget
• Online User Survey Project
• BOE XIr2 Upgrade
• $5k
• $350k
• BI specific Education Program
• BI Incident Management improvement Program
• Service Desk Reengineering Program
• $150k
• $150k
• $200k
• Repository incentive program
• Configure BOE Lab environment
• $50k
• $100k
Execute
• BI Tool Consolidation Project
• Coterminous SW License negotiations
• $150k
• 1 FTE Supply Mgt (80 hrs.)
© SAP 2009 / Page 36
Major Inhibitors
Skills
Stability / Flexibility of Business Processes
Silo Think
Spreadsheets
Sponsorship
© SAP 2009 / Page 37
The Road to BI Success with SAP: BI Strategy
Current BI Needs Baseline
Analysis
BI Strategy & Execution Baseline
Gap AnalysisBI Strategy Foundation
Playbook 1 Playbook 2 Playbook 3 Playbook 4
Four step approach to developing a solid BI strategy foundation
© SAP 2009 / Page 38
SAP BI Strategy Foundation Playbook Overview
1. BI Business Needs Identification and Gap Summary
by LOB
2. BI Strategy & Execution Analysis
3. Prioritized Gaps
4. BI Strategy Recommendation
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc
14
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made
13
Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.
Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form.Automate the delivery of the information required to all who need it.Integrate data sources if needed.
Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION / BENEFIT GAP
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc
14
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made
13
Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.
Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form.Automate the delivery of the information required to all who need it.Integrate data sources if needed.
Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION / BENEFIT GAP
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc
14
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made
13
Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.
Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form.Automate the delivery of the information required to all who need it.Integrate data sources if needed.
Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION / BENEFIT GAP
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc
14
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made
13
Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.
Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form.Automate the delivery of the information required to all who need it.Integrate data sources if needed.
Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION / BENEFIT GAP
© SAP 2009 / Page 39
The Road to BI Success with SAP: BI Strategy
Current BI Needs Baseline
Analysis
BI Strategy & Execution Baseline
Gap AnalysisBI Strategy Foundation
Playbook 1 Playbook 2 Playbook 3 Playbook 4
© SAP 2009 / Page 40
Current BI Needs Baseline Analysis
Objective:
Create high level summary of BI needs by LOB, and their expected impact if addressed
BI Strategy & Execution Baseline AnalysisBI Business Needs Identification and Gap Summary by LOB
© SAP 2009 / Page 41
The Road to BI Success with SAP: BI Strategy
Current BI Needs Baseline
Analysis
BI Strategy & Execution Baseline
Gap AnalysisBI Strategy Foundation
Playbook 1 Playbook 2 Playbook 3 Playbook 4
© SAP 2009 / Page 42
BI Strategy and Execution Baseline Analysis
Background and Objectives
BI Needs BenefitsInformation
Structure and Technology
Organization and Implementation
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
Levels
Architecture and Standards
Program Management
BI Objectives and Scope
Priorities and Alignment
Business Case BI ApplicationsRoadmap and
Milestones
Measurement
Education / Training
Support
Additional Consulting Services Available
Additional Capabilities available through SAP Value Engineering
© SAP 2009 / Page 43
BI Strategy & Execution Baseline Analysis
BI Strategy & Execution Baseline Analysis
Objective:
Assess existence of BI Strategy, completeness of execution, and impact if completed
© SAP 2009 / Page 44
The Road to BI Success with SAP: BI Strategy
Current BI Needs Baseline
Analysis
BI Strategy & Execution Baseline
Gap AnalysisBI Strategy Foundation
Playbook 1 Playbook 2 Playbook 3 Playbook 4
© SAP 2009 / Page 45
Gap Analysis
Business Pains
PR
IOR
ITIZ
ED
GA
PS
BI Strategy & Execution Gaps
Objective:
Prioritize Gaps of existing BI needs, and non-existent or not well-executed strategy components
© SAP 2009 / Page 46
The Road to BI Success with SAP: BI Strategy
Current BI Needs Baseline
Analysis
BI Strategy & Execution Baseline
Gap AnalysisBI Strategy Foundation
Playbook 1 Playbook 2 Playbook 3 Playbook 4
© SAP 2009 / Page 47
BI Strategy Foundation Recommendation
Objective:
Based on prioritized gaps across the organization, understand the business value and benefit of addressing the gaps, and understand the general BI solutions that can solve these business pains.
BI Strategy Recommendation
Provides ability to track real -
time performance
through dynamic
scorecards, or other solutions, allowing users
to post comments and ask questions,
so that business unit leaders can take action to
improve organizational performance.
· Determine the appropriate information/ KPIs to track
· Integrate multiple data sources (if necessary).
· Determine who needs what information and in
what form· Automate the delivery of the information
Insight Availability - We
struggle with being able to
quickly and easily look at
performance, revenue, or costs
of marketing programs at a
product line, plant level, store level, geography, etc.
16
Combines different
sources of sales information
such as quota, quota achieved, pipeline, tenure, projected close for next quarter
to identify trends and
potential issues.
· Determine the information that is needed, and where it resides, if it is available in
house· If needed, integrate
systems to create a more holistic view of customer/prospect data
Incomplete Customer Data -
We have incomplete
customer and prospect data
(e.g. addresses, phone numbers, email addresses,
etc.)
15
Combines different
sources of sales information
such as quota, quota achieved, pipeline, tenure, projected close for next quarter
to identify trends and
potential issues.
· Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
· Integrate multiple sources (if necessary).
· Determine who needs what information and in
what form· Automate the delivery of the information
Sales Variance -We need to more quickly be able to identify what is causing sales
variances across product, region,
LOB, etc
14
Combines different
sources of sales information
such as quota, quota achieved, pipeline, tenure, projected close for next quarter
to identify trends and
potential issues.
· Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
· Integrate multiple sources (if necessary).
· Determine who needs what information and in
what form· Automate the delivery of the information
Sales Performance
Management - We need deeper
insight into sales performance, to
be able to understand where
we're getting traction, where we're not, and
why so adjustments can
be made
13
Integrates different types of information into a single
view to perform trend analysis and provide a
better understanding
of revenue relationships.
· Determine what metrics are needed to demonstrate media performance
· Determine who needs the information, and in
what form.· Automate the delivery of
the information required to all who need it.
· Integrate data sources if needed.
Media Performance
Tracking - We need deeper
insight into how our media
investments across various channels are
performing so we can better
allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION /
BENEFIT
GAP
Provides ability to track real -
time performance
through dynamic
scorecards, or other solutions, allowing users
to post comments and ask questions,
so that business unit leaders can take action to
improve organizational performance.
· Determine the appropriate information/ KPIs to track
· Integrate multiple data sources (if necessary).
· Determine who needs what information and in
what form· Automate the delivery of the information
Insight Availability - We
struggle with being able to
quickly and easily look at
performance, revenue, or costs
of marketing programs at a
product line, plant level, store level, geography, etc.
16
Combines different
sources of sales information
such as quota, quota achieved, pipeline, tenure, projected close for next quarter
to identify trends and
potential issues.
· Determine the information that is needed, and where it resides, if it is available in
house· If needed, integrate
systems to create a more holistic view of customer/prospect data
Incomplete Customer Data -
We have incomplete
customer and prospect data
(e.g. addresses, phone numbers, email addresses,
etc.)
15
Combines different
sources of sales information
such as quota, quota achieved, pipeline, tenure, projected close for next quarter
to identify trends and
potential issues.
· Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
· Integrate multiple sources (if necessary).
· Determine who needs what information and in
what form· Automate the delivery of the information
Sales Variance -We need to more quickly be able to identify what is causing sales
variances across product, region,
LOB, etc
14
Combines different
sources of sales information
such as quota, quota achieved, pipeline, tenure, projected close for next quarter
to identify trends and
potential issues.
· Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track
· Integrate multiple sources (if necessary).
· Determine who needs what information and in
what form· Automate the delivery of the information
Sales Performance
Management - We need deeper
insight into sales performance, to
be able to understand where
we're getting traction, where we're not, and
why so adjustments can
be made
13
Integrates different types of information into a single
view to perform trend analysis and provide a
better understanding
of revenue relationships.
· Determine what metrics are needed to demonstrate media performance
· Determine who needs the information, and in
what form.· Automate the delivery of
the information required to all who need it.
· Integrate data sources if needed.
Media Performance
Tracking - We need deeper
insight into how our media
investments across various channels are
performing so we can better
allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION /
BENEFIT
GAP
© SAP 2009 / Page 48
The Road to BI Success with SAP: BI Strategy
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc
14
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made
13
Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.
Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form.Automate the delivery of the information required to all who need it.Integrate data sources if needed.
Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION / BENEFIT GAP
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc
14
Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.
Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/KPIs to track
Integrate multiple sources (if necessary). Determine who needs what information
and in what form Automate the delivery of the information
Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made
13
Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.
Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form.Automate the delivery of the information required to all who need it.Integrate data sources if needed.
Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.
12
EXPECTED BENEFIT /
VALUE
BUSINESS SOLUTION / BENEFIT GAP
Playbook 1 Playbook 2 Playbook 3 Playbook 4
Current BI Needs Baseline
Analysis
BI Strategy & Execution Baseline
Gap AnalysisBI Strategy Foundation
© SAP 2009 / Page 49
Architecture Options
DWH
Information from multiple source systems is consolidated within a data warehouse.
Usually data is also stored in the DWH, otherwise it’s a virtual warehouse.
Data Mart
Information is staged in data marts, while each data mart just contains data from one source.
Direct access
BI Tools directly consume information from the source systems.
Used in application’s embedded analytics.
Multiple DWH
Information is consolidated within multiple data warehouses, which may exchange data.
Rather often reality than recommended pattern.
Layered DWH
Information is combined within multiple data warehouses with clear layered approach.
Often the lowest DWH contains the corporate memory consisting of quality ensured global data and Metadata
© SAP 2009 / Page 50
High data volume or many users
BI security differs from operational security
Separate BI load from transactional system
Combining data from multiple sources
Management of historic data
Different administrative ownership
Different lifecycle of DWH/DM systems/models
Security considerations (“separate HR data”)
Balance quality control and cost
Minimal data latency
Time to connect new data source (Agility)
Implementation and operations cost
DataMart
DirectAccess
MultipleDWH
PhysicalVirtual
DWH
Federated Access
GovernedDM
Multi-layerDWH
Layered DWH
BI and EIM Usage PatternsStrategic Guidance for Data Integration and Storage
STOP Not possible Low, Middle, HighCaution!
© SAP 2010 / Technology Development Central Architecture & Innovation - Company Confidential / Page 50
STOP
No ~5 Min ~10 Min ~20 Min ~10 Min
!
!
!!
! !
! !!
! ! !
!
!!! !
~20 Min
~20 Min
No
!
!
!
STOP
!
!
!
to
Drinking Our Own Champagne
© SAP 2009 / Page 52
Strategy to Execution for IT
Alignment
The ITMetrics
The ITStrategy
Measures of IT Performance
ITStrategy andObjectives
DefineStrategic Intent
• Agreement effectiveness
• New projects index
• System performance
• Skills inventory index
• Influence planning process
• Re-prioritize existing portfolio
• Reduce response time
• Improve IT skills
• Low-cost, high-quality provider
• Customized services delivered quickly
• Innovative products addressing new needs
DefineStrategicObjectives
• Increase store volumes
• Develop Web-based order process
• Improved product development
The BusinessObjectives
IdentifyPerformanceMetrics
• Asset utilization
• Customer retention
• Configure-ability index
• Time-to-market
The BusinessMetrics
The BusinessStrategy
© SAP 2009 / Page 53
Prioritized Recommendations Example
Business Impact: Cumulative effect of business impacts: net benefit, strategy enhancement, process effectiveness, etc
Ease of implementation: Cumulative effect of implementation considerations: process & technology alignment, change management risk, cost, external dependency, etc
Recommendations summary for IT Strategy & Performance Measurement*
Governance / Organization
Business Process
Scorecard / metric Design
Technology Architecture
Define Governance &
Execution Roles
Metrics owners
at L2 level
Link metric resultsto exec variable pay
Leverage IT Steering Council for IT Performance Review
Performance Measurement
Method
Separate strategic& operational metrics
Metric Consistency& Transparency
DataQualityContinuous
Improvement
Report Refresh Automation
Cross-Dimension Reporting
Leverage ExtranetBI
Structured Data Storage
Corporate Goals Cascading Process
Actionable Now
Actionable Later
IT Strategic Communications
IT Cockpit Layout& Viz.
IT Performance Goal Setting & Review Process
Size = option value
* Example only — Values changed from original
© SAP 2009 / Page 54
SAP Dashboard Example
© SAP 2009 / Page 55
MarketingDashboards to Exploration
© SAP 2008 / Page 55
© SAP 2009 / Page 56
MarketingExploration to Analysis
© SAP 2008 / Page 56
© SAP 2009 / Page 57
Key Learnings
Information Is Power As is To be
Strategy
2 BI Strategy Business- and user-
focused plan
Info
1
Execution
3BI Execution Take pragmatic steps
towards a long-term ideal
“Business intelligence is about people, not technology.”
© SAP 2009 / Page 58
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