bi strategy assessment customer facing · business driven bi strategy ability to find opportunities...

Chicago Business Objects User Group

August 22, 2014

Pat Saporito, SAP Global COE for Analytics

BI Strategy & BI Competency Center:

Keys to BI Success

© 2014 SAP AG. All rights reserved. 1

Agenda

Business & IT Challenges

The Importance of a BI Strategy

SAP BI Strategy Assessment Workshop

Role of a BICC

Additional Resources

Reality of the Internet of Everything

1 billion Facebook

users

4 billion YouTube views

per day

Data

doubles every 18 months

15 billion web-enabled

devices

5 billion in emerging

middle class

The impacts

Need Data &

Analytics –

Now!

IT Can’t

Support

User

Frustration

Doing More

With Less Less budget; higher

demand;

Self Service

Growth LOB & “rogue” BI

buying; higher TCO

Data Chaos More data silos;

less trusted in data;

more data

reconciliation

To the Business

To IT


Enable Answers

on the Go

(Mobile)

Deliver Trusted Data

Discovery to All

(Self Service)

Get the most out of

your BI Investments

(Value)

Innovate Empower Optimize

Three Good Reasons to Upgrade to BI 4.1


Path to 4.1 Upgrade Success

Corporate Strategy Alignment

Enterprise BI Strategy Assessment

Upgrade Migration Assessment

Upgrade Scope & Planning

Upgrade Execution


Analytics Evolution

Raw

Data

Cleaned

Data

Standard

Reports

Ad Hoc

Reports &

OLAP

Agile Visualization

Predictive

Modeling

Optimization

What happened?

Why did it happen?

What will happen?

What is

the best that

could happen?

Us

er

En

ga

ge

me

nt

Maturity of Analytics Capabilities

Self Service BI

Generic

Predictive Analysis

Co

lle

cti

ve

In

sig

ht


Rx for BI Success: BI Strategy + BI Competency Center

Understand Business Pains

Identify technology gaps

Focus on change management and

adoption

BI Strategy creates an information driven

culture:

www.sap.com/BIStrategy

BI Competency Center provides a sustainable

framework to execute the strategy and maintain it.


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

Do you have a formalized strategy and roadmap? Has it been communicated?


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

Departmental BI needs often involves needing data from

other groups. Remove limits of a departmental focus

through an enterprise-wide strategy

An enterprise BI approach provides a unified approach by

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


Building Blocks of a Rock Solid BI Strategy

SAP BI Strategy Framework

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

A BI Competency Center operationalizes an organization’s

BI Strategy. It is the “glue” that holds business and IT

together.


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

Current BI Baseline Analysis

(Business Discovery)

BI Strategy & Execution Baseline

Gap Analysis BI Strategy

Recommenda-tions

Step 1 Step 2 Step 3 Step 4


Step 1 – Business Discovery

Objective:

Create high-level summary of

BI needs by LOB and their

expected impact if addressed

BI Strategy & Execution Baseline Analysis Current BI Needs Baseline Analysis


Step 2 – BI Strategy and Execution

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

BI Strategy & Execution Baseline Analysis BI Strategy & Execution Baseline


Step 3 and 4 - BI Strategy Gap Analysis and BI

Strategy Foundation

Prioritized Gaps

Strategy Recommendation

Objective:

Prioritized gaps, benefits of addressing

the gaps and capabilities map to solve

business pain


BI Strategy Workshop Agenda

Day Time Title Topics Presenter

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 Org

Structure, 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 60 min. Lunch

1:00 – 3:00 pm Business Interviews

(2 @ 60 min each)

120 min Current Pains Key Analytic Related Initiatives

SAP Facilitator

3:00 – 4:30 IT Interview

90 min Current Pains Current BICC Capabilities

SAP Facilitator

2 9:00 - 10:00 am Preliminary Gap

Assessment

60 min. Review and discuss initial findings

from Day 1

SAP Facilitator

10:15 – 11:15

am

Next Steps 60 min. Discuss next steps (org. structure,

priorities, resources, etc.)

SAP Facilitator

Customer

1:00 – 4:00 Optional

Workshop/Session

180 min Self Service, Predictive, Big Data,

BICC Workshop

SAP


IT Driven BI

Governance

Requirements driven

from a limited

Executive group

KPIs/Analytics are

identified, but not

well used

KPIs/Analytics are

identified and

effectively used

KPIs/Analytics

used to manage the

full Value Chain

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

BI & Analytics Maturity Model Levels of performance along the BI best practice framework

Level 1

Level 2

Level 3

Level 4 BI Maturity Stages

Information and

Analytics (Business

& KPI, ad hoc,

measurement)

Governance (Business

participation, self-

service, BICC)

Standards and Processes (BI

design/process, SLA,,

reuse, data ownership &

standards)

Application

Architecture (Multiple/disparate

systems, spreadsheets,

delivery)


Partial Findings & Recommendations

Key Improvement Areas & Identified Projects Example

Develop/maintain a comprehensive BI strategy

including all LOBs (finance, purchasing, logistics;

possibly HR Payroll) and all stakeholders

Promote and disseminate the strategy so that

everyone is exposed to it and can articulate it

Move from Project to Program Focus

Investigate use cases for Dashboards

Develop self service and advanced BI strategy;

investigate use off service tools (Explorer, Web

Intelligence & Lumira; BW Query Developer).

Investigate use cases for Predictive.

Investigate use cases for Mobile BI

Review and address any issues with performance/

wait time

Develop/organize/redesign metadata structure to

streamline use and make objects easy to find

Implement more training for end-users and

developers

Enhance Data Governance for non-shared data

Appoint BI data stewards; populate end user data

dictionary tool

Develop/document BI data quality standards and make

them a part of projects as they are developed; leverage

existing general IT standards/programs

BI Strategy &

Governance

Analysis &

Presentation

BI Tools &

Technologies

Data

Sourcing

& Quality

Review existing resources to support BICC

BICC Formation/ BI Strategy Development

Select 6-8 week pilot to begin standing up BICC

Develop BICC scorecard/dashboard

Develop executive dashboards; leverage MSH

effort

Build taxonomy/metadata repository ID to

support analysis and presentation layer; review

architecture structure

Review quick win candidates for best high

impact/low effort projects

Conduct performance & architecture review

Improve organization & access to existing

metadata and reports; develop additional

metadata/analytic views

Include Self-Service BI training for

Distributed/Dept. BI Development teams

Define and make sanctioned data sources

known and available

Review/enable mappings between ECC &

BW

Information Layer Development (i.e. metric

definitions, dimensions, and other

information assets)

Improvement Areas Identified Projects


BICC Evolution

Not a new concept, but has become more business focused

IT Driven BI Strategy

Engaged business and developing

business knowledge

Strong collaboration and

communication skills

Breadth of BI skills rather then depth

Influence-driven versus authority

Empathy and respect for users; BI

evangelist

Drove BI rationalization; engaged in

tool selection

Ability to look broadly at diverse

applications and business processes

Business Driven BI Strategy

Ability to find opportunities that

drive business value, including

diverse sourcing and delivery

models

Proven ability to foster user

interest and adoption; support

change management and culture

Innate personal interest in diverse

emerging trends and technologies

Proven experience in delivering

new business analytic initiatives

Ability to uncover, evaluate and

analyze the impact of disruptive

forces

2006 2014


BICC/COE Responsibilities

Education &

Support

BI Program

Mgmt.

Data

Stewardship

Advanced

Analytics

Training,

Development &

Implementation

Intake &

Prioritization

Business

Metadata

Data

Preparation

Ad Hoc End

User Support

Ad Hoc

Develop. &

Prototyping

Quality

Assurance

Data Mining/

Text Mining/

Statistical

Modeling

Communication

Newsletters, &

User Groups

Requirements Data

Governance

Advanced

Visualization

BICC/ BI COE

“BICCs: Bringing Intelligence to the Business. Bill Hostmann, Gartner. BPM Magazine - Nov. 2007


Common BI Competency Center Operational Models

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


BICC Skills Requirements

Business + Analytics + IT

Business Needs

Business

Skills

Organization and Processes

Business Needs

Statistical and Process Skills

Governance, Administration

Tools, Infrastructure, Applications, Data

Standards &

Methods

Business Case &

Funding

BI Vision & Strategy

Program

Management

Solution/

Technology

Blueprint

User & Analytic

Skills

Policies &

Governance

Analytic

Skills

IT

Skills

BICC


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 & risks

• Management review

• Funding

• Operational direction

• Executive support

• Project pipeline

• Sets priorities

• Implements policy

• Champions

change

• Provides input

• Champions

change

• Provides input

• Seeks input

• Manages issues and

risks

• Sets priorities

• Implements policy

• Reviews status

• Reports ROI

• Makes recommendations • Sets policy

• Sets priorities

• Accepts risk

• Sets direction

Baseline BI Governance & Interactions Model


BI/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 Service

Management

• Develop the necessary BI skills

• Develop lab environment for innovation

Learning

Knowledge

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 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.)


• Name and support a high-level executive sponsor

• Make sure your strategy is strategically aligned and business driven

• Assess current vs. future capabilities needed

• Build capabilities needed using a strategy roadmap and support with a BICC

• Anticipate & plan for Change Management & Culture Shift

BI Success Best Practices Summary


Additional SAP BI Strategy Support Capabilities

BI Strategy Best Practices Workshop

BI Strategy Assessment & Workshop

BI Maturity Model & BI Benchmarks

Data Governance Best Practices Workshop

Strategic Advisory Services

ASUG/Business Objects User Groups


New! Information Governance Model + Self-Assessment

Information Governance model:

• Expand your approach to solving information problems, so you aren’t

caught in endless cycles of “keeping the lights on”.

Self-assessment:

• Highlight what good looks like for key organizational and

technology components, including which to target.

Information as an Asset Roadmap

• Map your funded, information-heavy projects to

strategic EIM initiatives.

Result:

• A vetted, reviewed, and focused plan for your information

strategy!

Get the tools here: http://scn.sap.com/community/enterprise-information-

management/blog/2014/07/08/new-information-governance-model-from-sap

http://scn.sap.com/community/enterprise-information-management/blog/2014/07/08/new-information-governance-model-from-sap

















Additional Resources: BI Success Web Site

Link

Don’t miss our

new BI

Strategy

ebook!

http://www.sapbusinessobjectsbi.com/sthash.QrnBAb9M.WHkYeTHr.dpbs

Appendix


Getting Started: Self-Service Online Assessment Option

www.sap.com/bistrategy

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

across your organization

Note: Covers business pains only, not the BI Strategy Baseline Assessment.

http://www.sap.com/bistrategy


IT Driven BI Governance

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

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 Applications Consolidating 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 partially used

Manager Self Service not in place

Proliferation of data access through

Excel

High Business Ownership of 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

BICC 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, 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 Levels of performance along the BI best practice framework

Level 1

Level 2

Level 3

Level 4 BI Maturity Stages

Information and

Analytics (Business

& KPI, ad hoc,

measurement)

Governance (Business

participation, self-

service, BICC)

Standards and Processes (BI

design/process, SLA,,

reuse, data ownership &

standards)

Application

Architecture (Multiple/disparate

systems, spreadsheets,

delivery)

Thank You!

Pat Saporito

Sr. Director, Global COE for Analytics

(201) 681-9671

Twitter: @patsaporito

Linkedin: patriciasaporito

Author of Applied Insurance Analytics

http://www.amazon.com/Applied-Insurance-Analytics-Framework-Technologies/dp/0133760367/ref=sr_1_1?s=books&ie=UTF8&qid=1408293891&sr=1-1&keywords=applied+insurance+analytics

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