bi strategy – getting where you want to go

BI Strategy – Getting where you want to go Creating an information driven culture in your organization

Deepa Sankar

Director, BI Product Marketing

© 2013 SAP AG. All rights reserved. 1

Agenda

Analytics – Key enabler for business transformation

The Importance of a BI Strategy

How SAP Can Help in Defining Your BI Strategy?

Wrap-Up

Analytics Key Enabler for Business Transformation


No Question Analytics Provide Proven Return on Investment

“Organizations earn an

average of $10.66 for

every dollar spent on

deployments of

analytics.”

Source: Nucleus Research, “Analytics pays back $10.66 for every dollar spent”, December 2011

>1000% “With such high returns,

management teams should

consider these technologies to be

one of the most attractive

investment opportunities

available to the CFO”


Top 10 Business Priorities Top 10 Technology Priorities

1. Increasing enterprise growth 1. Analytics and business intelligence

2. Delivering operational results 2. Mobile technologies

3. Reducing enterprise costs 3. Cloud computing (SaaS, IaaS, PaaS)

4. Attracting and retaining new customers 4. Collaboration technologies

5. Improving IT applications and infrastructure 5. Legacy modernization

6. Creating new products and services 6. IT management

7. Improving efficiency 7. CRM

8. Attracting and retaining the workforce 8. Virtualization

9. Implementing analytics and big data 9. Security

10. Expanding into new markets and geos 10. ERP Applications

Source:Gartner 2013

Top Business and Technology Priorities 2013


Technology is not the problem

Between 70% to 80% of corporate business intelligence projects fail, according to research by

analyst firm 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.”


Source: Forrester Research, 2012 BI Maturity

Survey and Pioneer self assessment

In 64% of enterprises, fewer

than 10% of decision

makers use BI


People are THE Key BI “Technology”

BI Culture is about optimizing the use of

this “technology”

It’s as important to plan the

cultural changes as it is to

plan the rest of BI

deployments


Inescapable Trends Affecting BI Culture

Consumerization of IT

Internal vs. External Data

Internal vs. External Systems

Agile BI and Data Discovery

“Big Data” and Data Scientists

Real-Time Data Platforms

Talent and Performance Management

Budgets Moving to the Business

Information as an Asset

Do you still feel

like you are in

charge?

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

“

”

Culture Eats Strategy for Breakfast.. So it had Better

be Tasty!


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


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?


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

Creating 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

How can SAP help?


How SAP Can Help

BI Strategy Framework & Assessment

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

Easy-to-use methodology to help guide

you through a strategic discussion for BI

strategy and solution formulation within an

enterprise-wide scope


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


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

Interactive discovery, prioritization, and recommendations for addressing business pains and

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 of

existing BI needs and

non-existent or poorly-

executed strategy

components

With prioritized gaps,

promote the benefits of

addressing the gaps

and map capabilities to

solve the business pain

Business Discovery

BI Strategy and Execution

Gap Analysis BI Strategy Foundation

Step 1 Step 2 Step 3 Step 4


Prioritized, Business Driven Needs - Recommendations

Best Practices


• Find a high-level executive sponsor

• Define and prioritize business needs

• Gap assessment of current vs. future capabilities needed

• Define & build capabilities needed using a roadmap

• Don’t under estimate culture and change management

BI Strategy Best Practices Summary


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


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

BICC as Part of Operations Distributed BICC

COO

CIO

ICC Department BICC

BICC

BICC

Division 1 Division 2 Division 3

Corporate

Division 1 Division 2 Division 3

Finance … Sales

Source: Gartner


BICC Skill Requirements Business, Analytic, and IT

Business Needs

Business

Skills

Organization and Processes

Business Needs

Statistical and Process Skills

Governance, Administration

Tools, Infrastructure, Applications, Data

Establish

Standards

Control

Funding Define

BI Vision

Manage

Programs

Build Technology

Blueprint

Develop

User Skills Organize

Methodology

Leadership

Analytic

Skills

IT

Skills

BICC

Source: Gartner


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

See changes in demand or

supply across your entire

Supply Chain immediately

Monitor and analyze all

deviations and quality issues

in your production process

Provide exactly the right offers

and service levels to every

customer

Have a continuously-updated

window onto future sales,

showing changes in real-time

Understand what your

customers and potential

customers are saying about

you, right now

Predict cash flows to manage

collections, risk, and short-

term borrowing in real-time


Useful Resources

BI Strategy Workshops: Reporting & Analytics Conference, Nov. 19, Orlando

Take the BI Self Assessment: www.sap.com/bistrategy

BI News: www.sap.com/BINews

BI and Your Success- 5-part video series: http://spr.ly/BI_Success

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-element-

to-your-bi-program

http://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competency-

centers-take-center-stage-again

http://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-program-

define-track-and-measure-success/

http://www.sap.com/bistrategy

http://www.sap.com/BINews

http://spr.ly/BI_Success









http://scn.sap.com/community/business-intelligence/blog/2012/12/07/bi-strategy-bicc-a-key-element-to-your-bi-program






















http://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competency-centers-take-center-stage-again




















http://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-program-define-track-and-measure-success/

























Thank you


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