real life, strategic bi strategy for your it organization

Real-Life, Strategic BI Within Your Overall IT StrategyTimo Elliott, May 2010

© 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





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






14






13




12

EXPECTED BENEFIT /

VALUE







14






13




12

EXPECTED BENEFIT /

VALUE







14






13




12

EXPECTED BENEFIT /

VALUE


© SAP 2009 / Page 39



Analysis




© 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



Analysis




© 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 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 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




potential issues.

· Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/ KPIs to track

· Integrate multiple sources (if necessary).



Sales Variance -We need to more quickly be able to identify what is causing sales

variances across product, region,

LOB, etc

14

Combines different




potential issues.





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).



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




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




potential issues.





Sales Variance -We need to more quickly be able to identify what is causing sales

variances across product, region,

LOB, etc

14

Combines different




potential issues.





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



Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/KPIs to track




14






13




12

EXPECTED BENEFIT /

VALUE







14






13




12

EXPECTED BENEFIT /

VALUE




Analysis



© 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 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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