critical success factors to develop and deliver a forward-looking bi strategy and roadmap
TRANSCRIPT
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3
Your Business Environment Is ChangingElevating 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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
PersonalizedInsights
Advanced Planningand Forecasting
Sensing and Responding
Predictive Modeling
Real-Time Analysis
A Changing Relationship with Information
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
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
“
”
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
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 salesand margin performanceacross different channels?
What isthe profitabilityper square foot?
IT
Store Operations Merchandising
HR
Supply Chain
Marketing
Finance
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
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”
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
Enterprise Business Intelligence/Analytics Strategy to Execution
BI Execution
Feedback to Strategy
BI Strategy
Link and AlignStrategy to ExecutionBusiness 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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15
How SAP Can HelpBI 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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
BI Strategy FrameworkBuilding 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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17
Current BI Baseline Analysis
(Business Discovery)
BI Strategy and Execution Baseline Gap Analysis BI Strategy
Recommendations
SAP’s BI Strategy AssessmentRepeatable, 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
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
Assess existence of BI Strategy, completeness of execution, and impact if completed
Prioritize gaps in existing BI needs and non-existent or poorly executed strategycomponents
Prioritize gaps in existing BI needs and non-existent or poorly executed strategycomponents
Promote benefits of addressing prioritized gaps and map capabilities to solve the business pain
Promote benefits of addressing prioritized gaps and map capabilities to solve the business pain
Step 1 Step 2 Step 3 Step 4
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18
Objective:
Create high-level summary of BI needs by LOB and their expected impact if addressed
Step 1 – Business Discovery
BI Strategy & Execution Baseline AnalysisCurrent BI Needs Baseline Analysis
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19
Objective:
Assess existence of BI Strategy definition, completeness of execution, and impact if completed for 5 key component areas:
Objectives Business Needs Business Benefit Technology Organization
Step 2 – BI Strategy and Execution
BI Strategy & Execution Baseline AnalysisBI Strategy & Execution Baseline
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20
Prioritize Gaps
Objective:
Prioritize gaps in existing BI needs and non-existent or poorly executed strategy components
Step 3 – BI Strategy Gap Analysis
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
Strategy Recommendation
Objective:
Promote benefits of addressing prioritized gaps and map capabilities to solve the business pain
Step 4 – BI Strategy Foundation
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
BI Strategy Facilitated Workshop Sample Agenda
Time Title Length Topics Covered PresenterDay 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. SAP Analytics Vision – Collective Insight
SAP
9:45-10:30 am BI Strategy, IT/BI OrgStructure, Initiatives, Gaps/Issues
45 min. Current BI Strategy Existing BI/BICC initiatives & Org Gaps/Issues
Customer, SAP
10:45-11:45 BI Strategy & BICC Role/Best Practices
60 min. BI Maturity Model BICC Capabilities/Org Structures,
Roles, Skills, Governance Model BICC Metrics, Scorecard
SAP Facilitator
12:00-1:00 pm 60 min. Lunch
1:00-3:00 pm Business Interviews 45 min. Current Pains Key Analytic-Related Initiatives
SAP Facilitator
3:00-4:00 IT Interview 60 min. Current Pains Current BICC Capabilities
SAP Facilitator
Day 2
9:00-10:00 am Preliminary Gap Assessment
60 min. Review and discuss initial findingsfrom Day 1
SAP Facilitator
10:15-11:15 am Next Steps 60 min. Discuss next steps (org structure, priorities, resources, etc.)
SAP Facilitator,Customer
Resources and Capabilities Needed
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 24
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 25
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.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 26
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!
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27
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 SkillsBusiness Needs
Organization and Processes
Governance, Administration
Tools, Infrastructure, Applications, Data
ITSkills
Business Needs
Statistical andProcess Skills
AnalyticSkills
BICCEstablish Standards
Control Funding
DefineBI Vision
Manage Programs
Build Technology
Blueprint
DevelopUser Skills Organize
Methodology Leadership
BICC Business, Analytics, and IT Skills
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 28
BICC and BI Development Alignment
Development ofBI Governance
Structure
Development of EffectiveBI Strategy
Implementation of BI Competency
Center
Alignment with IT Center of
Excellence
• Identified Key Stakeholders • Identified Corporate
Strategy as it aligns with business needs
• Identified Business and Business Unit Priorities
• Confirmed Architecture• Identified Data Sources• Alignment with BI BICC
priorities• Confirmation of internal
capability• Identified impacted
business processes
• Corporate IT BICC alignment with BICC
• Identification of BI Strategic, Program, Analytical, and Technical skills
• Identification of overlapping Business priorities
• Identification of Architectural scope, overlap, etc.
• Identification of data scope, overlap, legacy systems, etc.
• Confirmation of deployment capability
• Deployment of BI toolset by project type
• Confirmed Executive Steering Committee
• Buy-in and involvement from all impacted stakeholders
• Identified and agreed priorities• Defined and agreed accountability• Defined and agreed roles and
responsibilities• Defined and agreed guidance,
standards, and templates• Identified BI toolsets • Defined toolset capability by
project type
Operationalize• Defined business priorities • Defined reporting needs • Defined KPIs and supporting metrics• Defined architecture• Defined data needs• Defined solutions and methodologies• Confirmed capabilities• Confirmed project priorities• Confirmed project management
process • Confirmed project roll-out process• Confirmed guidance, standards, and
templates
BI Center of Excellence
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 29
Level 4Level 3
Level 2Level 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 ModelA Measure of BICC Stages of Excellence
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 30
Executive Steering Group
Functional Working Group
Business Intelligence Team
Individual Contributors
• Organizational commitment• Allocates funding• Manages/accepts risks• Directs and ratifies direction
• Makes recommendations• Manages operational effectiveness• Directs strategy
• Provides operational support• Manages information assets• Supports user community
• Consults to governance body• Champions change• Provides input on direction
• Operational status• Project pipeline• Issues and risks• Management review
• Funding• Operational direction • Executive support• Project pipeline• Sets priorities• Implements policy
• Championschange
• Provides input
• Championschange
• Provides input
• Seeks input• Manages issues andrisks
• Sets priorities• Implements policy
• Reviews status• Reports ROI• Makes recommendations • Sets policy
• Sets priorities• Accepts risk• Sets direction
Baseline BI Governance Model
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 31
Data and Analytics Roadmap Example
Cost impact/benefits from SAP VE
Initiate governance
structure definition
Phase 1 Phase 2
GovernancePeople & SkillsStandards & Processes
Use
Cas
eIn
form
atio
n A
rchi
tect
ure
Governance Structure
defined and roles filled
Security & Authorization
process standardized
Review existing database platform
Finalize Technical, Data Architecture & BI Tools
Architecture deployment initiated
Data & Analytics Roadmap defined
Training on Standards & Governance
Review Training
Options & Learning Hub
Establish BI Master Data & Analytics Tools
Standards
Measure BI User Adoption
On-going training &
documentation
Phase 3
Enterprise BI/ Analytics
Architecture
Integrated Information Architecture
and Self Service
Analytics Drives
Business
Analytics/BI COE started
BI/Analytics COE is fully operational
2017
2014
Define ETL Rules to support
Master Data
BI Tools Identification & Adoption
Maturity Level
Enhanced ad hoc capability
Incorporate key existing use cases into EDW for consolidated view
of the data
Define additional Business Use Cases
(TBD)
Review BI & Data Architecture including
health check
Each phase is 6-12 months
Levels 1-2 Level 4 Level 5Level 3
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 32
BICC 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 info
• Provide latest BI SW functionality –capabilities
Increase Productivity of
Knowledge Workers
Support
IT ServiceManagement
• 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
InternalCustomers
• 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 advanced
• (2) – 800#, Online entry
• 85% Favorable
• 250• 15
Services
Action Plan
Initiative Budget
• Online User Survey Project
• BOE 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.)
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 33
BICC EffectivenessOrganizations 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
2.82.6
Wrap-up
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 35
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!
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 36
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 37
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%20Strategy.pdf
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 38
Self-Service Online Assessmentwww.sap.com/bistrategy
A self-service online assessment tool that will help you identify business challenges across your organization
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 39
SAP BI Success Websitewww.sapbusinessobjectsbi.com/
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 40
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).
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 41
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.
© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
Pat SaporitoGlobal Center of Excellence for Analytics+1 (201) [email protected]: @pat.saporito
More Resources:BICC Blog Series Analytics from SAP