sapinsider singapore: optimizing your bi organization for agile analytics
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Presentation at SAPInsider Singapore 2014, "Optimising for BI and Big Data in the 21st Century"TRANSCRIPT
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Optimising for BI and Big Data in the 21st CenturyTimo ElliottSAP
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Agenda
BICC Overview
What Changed?
Learning from Others
Recommendations
Wrap-up
3
Business Intelligence Competency Centers
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What Is a BICC?
A Business Intelligence Competence Center (BICC) is a cross-functional organizational team that has defined tasks, responsibilities, roles, and skills for supporting and promoting the effective use of
Business Intelligence across an organization
Note that Gartner says that “Competency Centers” have a bad reputation, and now recommends “Business Analytics Team”…
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Basic Goal: Make BI More Strategic and Cost Effective
Reactive
Maintenance
Strategic
Reactive
Maintenance
Strategic
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BICCs Bring Big Benefits
Every winner of a BI Best Practice Award has a BICC
• (but beware of correlation and causation)
Organizations With A BICC see:
• Increased usage of Business Intelligence (74%)
• Increased business user satisfaction (48%)
• Better understanding of the value of BI (45%)
• Increased decision-making speed (45%)
• Decreased staff costs (26%)
• Decreased software costs (24%)
Survey conducted by BetterManagement.com, 2010
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The Main Functions and Responsibilities of a BICC
Source: Capgemini BICC Study 2012i
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BICC Key Skills
Source: Gartner
9
What Changed?
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Analytics Is the New Heart of Business
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Information Becomes a Profit Center
Products become
“experiences”
Experiences require real-
time, personalized information
Information becomes part
of product sale
Business owners
want/need more control
Faster, more iterative needs
Great news for analytics
The challenge for the future
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Democracy and Empowerment Have Made Us Unhappy!
Consumerization of ITEmployee-driven technology
Business-led budgetsCustomer-facing needs
More external dataSpeed of change
Increased business frustrationIncreased IT frustration
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Lots of New Techniques and Technologies
Businesses struggling to provide coherent approach
Source: Gartner
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But BICCs Are Not Driving BI
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The Majority of Data Users Need Isn’t in the System
“We found, on average, that 45% of the data business people use resides outside of the enterprise BI environments.
An astonishingly miniscule 2% of business decision-makers reported using solely enterprise BI applications.
This is undoubtedly connected to 76% of business respondents indicating they continue to resort to spreadsheets and other homegrown BI applications to analyze BI data. ”
Source: Forrester
45%
55%
In enterprise systemsNot in enterprise system
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Enterprise Systems Are Too Slow
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Enterprise BI: Too Little Data and Too Hard to Use
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Business Users Do Not Fully Trust Enterprise Data
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So Users Turn to Their Own Systems
40% are using an equal amount or more of homegrown applications
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Basic Conflict
BI programs have struggled to clearly define roles and responsibilities between IT and business users in a self-service BI delivery model.
Few BI programs have been able to find a workable balance between business user empowerment and governance with self-service data discovery.
Top-downBICC
Bottom-upSelf-service
Trusted information
Efficient reuse
Too report-driven
Flexibility
Speed
Experimentation
21
Learning from Others
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(1) Scandinavian Consumer Manufacturing Co.
The company deployed a first Global BI solution around 2000 together with the first SAP implementations
2000-2005 2005-2010 2011
No BI strategy
• No real BI strategy
• IT left to prioritize
• Multiple versions of the truth
One truth
• Company Performance model
• Standard reporting
• One truth
• Anchored in finance
Future vision
• Extend reporting to more users
• Redefine role
• More end-user flexibility
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A Change in User Profiles and Patterns
Over a period of 7 years the company saw several shifts in its BI user group
The shifts seem to happen with shorter and shorter intervals
• System Expert• Favored Excel as front end• Could live with poor
performance• Primarily used data from
SAP
2005
”The controller”
• General analyst• Wanted to use web reports
as well• Interested in data from
several sources• Demanded better
performance
2010
”The analyst”• Expecting BI self service• Want’s information on
mobile devices• Not scared of technology,
uses the right tool for the job
2012
”You and me”
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Time to Find Out What Was Really Happening
With the help of external consultants the company ran a small three month project to determine current vs. desired• Did the team really understand the users and their needs? • Was the reporting in the central system a true picture of overall reporting activity?• Did management have an accurate overview of reporting activities? • How should the team involve management in prioritizing and setting strategic
directions? • Was the team perceived as a help or a bottleneck? • Where could the team really make a difference?• What were the new requirements in terms of speed, flexibility and simulation?
“I can recommend this exercise. I know a lot of departments who work with BI think they know their users, what they’re doing, and what they’re needs are – but unless you’ve done a real investigation of this, I would challenge you that you will find stuff you didn’t know existed.”
BI Manager, Scandinavian Manufacturing Company
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Getting the Facts Straight
The project was an eye opener for the management team. The main findings were:
Tools
More user-friendly tools
Need a wider variety of tools
Data
Data is too hard to
understand
Need access to non ERP data
in reporting
Flexibility
Need to be able to create own reports
Standard reports have limited value
Ownership
Some had invested in own
systems
All preferred to be in a global
system
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Acting on the Results
BI Self-Service Approach
More responsibility to end users
More user-friendly tools
Visual discovery
Training required
Business and analytics skills
“Doing visualization is really cool… but if you apply the wrong graphs to the data you will not get a very good result…. Some of my employees have had to actually take a course in visualization, just to be able to challenge the business.”
BI Manager, Scandinavian Manufacturing Company
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(2) European Consumer Goods Packaging Company
Had Created The “Perfect Giant” of Enterprise BI
Business Intelligence was:• Standardized• Repeatable• Clearly understood across the company
Regular, well-communicated releases• Jointly agreed between Business and IT• Facilitates the business areas planning and
scheduling of report requests
A steering group of senior management• Majority business leaders with strong
representation from IT
Clear measurements to follow up performance• Usage and user feedback
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“Past Achievements Don’t Guarantee Future Success”
Time to information
Business case required to get new reports, and could take six months. Business movers ended up buying their own tools.
Multiple iterations
Multiple iterations required, communications degrading. Local BI teams able to be more consultative and collaborative.
Lack of accountability
Some things that should have been done locally were being delegated to central IT. Gut-based decision making was taking over.
Good: Agility, happier business users
Bad: Higher costs, no holistic view, no economy of scale, fragmented BI tool landscape, lost business opportunities from not having a global view
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Making It Agile
How to make an Ocean liner perform as a speedboat?
Moving to an agile strategy
Learn from the business. BI is something that brings up emotions. Found a lot of good practice in the business as well as bad.
The unofficial BI was more agile and more cost-efficient: Creating the reports close to the action, leaner process, no handovers, more niche tools that met their requirements.
Had to find a new balance between control and autonomy/freedom.
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Time for an Overhaul …
From Report Strategy
Single version of the truth
Standardized
Trusted
Secure
To BI Strategy
Single version of the truth
Standardized
Trusted
Secure
Agile development
Cost effective
Business driven
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Decentralization of Reporting
Data warehouse centralized, but all report development local
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Redefinition of Roles, Processes, and Tools
Development close to the businessKnows Business/Analytics/IT
Report Developer
PrototypingBusiness-driven
Secure, strong BI governance
IntuitiveFast development
Cover all analytic needs
BI Expert
Agile BI
Up-to-date suite of tools + pragmatic
exceptions
New Role
New Process
New Tools
Need Solution
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What Changed
Before: “The” BI process
Now three levels, self-serve, agile BI, IT/cross-platform
Getting the BI experts: Looked for best fit, then trained
Some areas didn’t feel they had the competences
“Hypercare" handholding on first reports
First report more expensive, but now just a few days instead of four to five weeks —after six months, saving of 40% in the development time
New four-step process
Initiate, mock up, finalize, industrialize — two-week cycles
Corporate “Wikipedia” for documentation
Guide towards solutions rather than “tools”
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Advice
• If your enterprise BI isn’t agile, unofficial BI platforms will grow like mushrooms in the dark
• Learn from the business — There is a lot of good practice that should be adopted
• Report development is highly iterative — traditional IT dev processes didn’t work
• Build a broad BI competence — Turning business information into insight should be considered a core competence
• A fragmented BI tool strategy will add cost and jeopardize the holistic view of BI
• The business will always require new capability — stay current! Be two years ahead of the business, we were two years behind
• It will take time to build BI experts — Start now
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(3) Large UK Retailer
Situation
Beloved UK institution but “beleaguered”
Top-to-bottom control of products
Lots of information silos, tools
Lots of “institutional knowledge”
Change Ahead
Needed omni-channel approach/“products”
Required new integrated, business-focused analytics approach
New executive team and “digital native” IT
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Launched New Analytics Approach
Big kick-off meeting
Analysts, IT, execs, outside experts
All areas of the business
Tool independent
Launched new “service bureau” approach
Strong executive support
Analytics driven locally, best-practice shared centrally
“Own the problem, not the solution” (“Can we access this tool, please?”)
Collection of “agile services”
Community-driven, using internal social networking
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Decision Pods
Fully interactive, data-based screens
Questions answered there and then, no leaving the meeting until a decision is made
Based on the experiences of a large US retailer
38
Recommendations
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It’s All About the Relationship
Any CIO’s dream is to have a business partner that really embraces technology and wants to do really cool stuff with you. Someone who has a vision, but doesn’t come to you and say, “We want you to use this product to do this.” They come to you with a problem and they want to work together to figure out how to solve it.
Instead of a scenario in which Business and IT play separate, traditional provider-versus-user roles everybody has to combine efforts to jointly explore and learn — and everybody has to compromise!
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Build and Nurture a Community
Regular face-to-face meetings• Bring people together across silos: IT, Analysts, Business Leaders, Execs• Presentations of successes best practices• Invite external speakers
Virtual communities• Leverage internal social tools for people to share information• Community-driven BI content
Community self-policing• Act as BICC eyes and ears to discover projects,
opportunities• Social mechanisms to ensure the “right behaviors”
Ensure support at all levels• Not just executives — middle and users
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Move to Agile BI
Forrester, 2014: Agile BI is an approach that combines processes, methodologies, organizational structure, tools, and technologies that enable strategic, tactical, and operational decision-makers to be more flexible and more responsive to the fast pace of customer, business, and regulatory requirements changes.
First and foremost, business-driven agile enterprise BI is about flexible organizational structures
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Inspiration from the “Agile Manifesto”
The highest priority is to satisfy the customer through early and continuous delivery of analytics
Welcome changing requirements, even late in development. Agile processes harness change for competitive advantage.
Deliver working projects frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.
Business people and analytics staff must work together daily throughout the project.
Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.
The most efficient and effective method of conveying information to and within a development team is face-to-face conversation.
Delivered, used analytics is the primary measure of progress.
Agile processes promote sustainable development. The sponsors, developers and users should be able to maintain a constant pace indefinitely.
Continuous attention to technical excellence and good design enhances agility.
Simplicity — the art of maximizing the amount of work not done — is essential.
The best architectures, requirements and designs emerge from self-organizing teams.
At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly.
Adapted from: http://agilemanifesto.org/
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Reorganize and Refocus
Avoid “worst of both worlds” approach!
Move to federated approach
From “gatekeeper” to “air traffic controller”
Bring “shadow BI” under umbrella of BICC — but retaining local links
Co-locate “central” staff in business units whenever possible
Invest in appropriate tools and skills
Less reporting, more exploration
“Agency” philosophy
Business chooses you because you are the best option, not because they “have to”
Leverage unique knowledge of cross-functional opportunities
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Offer Key Services
Data Bureau
One-stop shopping for data, internal, external, or “wrangled”
Tools Bureau
Expert recommendations of best technologies to use, when
Sandbox Environments
Environments that let business experiment on their own
Innovation Opportunities
Workshops (e.g., Design Thinking) to uncover new opportunities
Analysis Validation
Trust, but verify …
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Data Driving Licenses?
Source: Gartner
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Support the BI Lifecycle
Source: Gartner
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Remember to Communicate!
Effective communication is the bedrock of a successful BICC
Involves skills that aren’t always part of the staff hiring process
Sell the sizzle
Use dashboards, scorecards, maps and other visual applications/tools
Analytics is “white hot,” so sell it
Celebrate success
Pick a first initiative and make it a business success
Identify evangelists from the initiative and have them sell the success
48
Wrap-Up
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Where to Find More Information
Barc Collective Insight white paperSAP BICC Playlist on YouTube: LinkSAP BI Self Assessment : www.sap.com/bistrategySAP BI Strategy Playlist on YouTube: Link
BI News: www.sap.com/BINews
Blogs on BI Strategyhttp://scn.sap.com/docs/DOC-30479http://scn.sap.com/docs/DOC-30480http://scn.sap.com/community/business-intelligence/blog/2012/12/07/bi-strategy-bicc-a-key-element-to-your-bi-programhttp://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competency-centers-take-center-stage-againhttp://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-program-define-track-and-measure-success/
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7 Key Points to Take Home
1. Old approaches are no longer enough
2. Self-service BI is a wonderful business opportunityIf done right, can dramatically improve business agility and IT/Business alignment
3. But it requires new cultures and ways of workingYou’re no longer in charge — and everybody has to compromise
4. Provide what the business needs, not necessarily what they wantService-oriented approach, but the “customer is not always right”
5. Community is the essential pillarNo one person or team can do this alone — build momentum and listen to feedback
6. Look for opportunities to simplifyIt’s not about technology, but the right technology can help agility
7. Keep up momentum and successLook out for teaching opportunities, and market success widely and often
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