Critical success factors to develop and deliver a forward-looking BI strategy and roadmap

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


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


PersonalizedInsights

Advanced Planningand Forecasting

Sensing and Responding

Predictive Modeling

Real-Time Analysis

A Changing Relationship with Information


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


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

“

”


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


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


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


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”


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


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


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


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


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


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


Step 1 Step 2 Step 3 Step 4


Objective:


Step 1 – Business Discovery

BI Strategy & Execution Baseline AnalysisCurrent BI Needs Baseline Analysis


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


Prioritize Gaps

Objective:

Prioritize gaps in existing BI needs and non-existent or poorly executed strategy components

Step 3 – BI Strategy Gap Analysis


Strategy Recommendation

Objective:


Step 4 – BI Strategy Foundation


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


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


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.


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!


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


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


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


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


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


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.)


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


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!


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


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


Self-Service Online Assessmentwww.sap.com/bistrategy

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


SAP BI Success Websitewww.sapbusinessobjectsbi.com/


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).


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

Critical success factors to develop and deliver a forward-looking BI strategy and roadmap

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