align your business and it with a solid bi strategy
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Transcript of align your business and it with a solid bi strategy
Session 0905 ASUG SBOUC
Align your Business and IT with a Solid BI
Strategy Deepa Sankar
Pat Saporito
© 2013 SAP AG. All rights reserved. 1
Agenda
Business Challenges
The Importance of a BI Strategy
How SAP Can Help in Defining Your BI Strategy
Best Practices
Wrap-Up
© 2013 SAP AG. All rights reserved. 2
Your business environment is changing
Elevating 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
© 2013 SAP AG. All rights reserved. 3
Personalized Insights
Advanced Planning and Forecasting
Sensing and Responding
Predictive Modeling
Real-time Analysis
A Changing Relationship with Information
The Importance of a BI
Strategy
© 2013 SAP AG. All rights reserved. 5
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
“
”
© 2013 SAP AG. All rights reserved. 6
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
© 2013 SAP AG. All rights reserved. 7
Questions Answered by BI Strategy
Are business decisions made with insufficient information today?
What is our vision for information access and usage?
What do we need to make information available and useful?
© 2013 SAP AG. All rights reserved. 8
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 sales
and margin
performance
across different
channels?
What is
the profitability
per square foot?
IT
Store Operations Merchandising
HR
Supply Chain
Marketing
Finance
© 2013 SAP AG. All rights reserved. 9
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
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
How SAP Can Help in
Defining Your BI Strategy
© 2013 SAP AG. All rights reserved. 11
How We Can Help
Facilitate discovery of the customer’s current pain points
Prioritize and look at the business impact of alleviating those pains
Provide 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
© 2013 SAP AG. All rights reserved. 12
Building 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
© 2013 SAP AG. All rights reserved. 13
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
Business Discovery
BI Strategy and Execution
Gap Analysis BI Strategy Foundation
Step 1 Step 2 Step 3 Step 4
© 2013 SAP AG. All rights reserved. 14
Prioritized, Business Driven Needs - Recommendations
Best Practices
© 2013 SAP AG. All rights reserved. 16
• Find a high-level executive sponsor
• Define and prioritize business needs
• Gap assessment of current vs. future capabilities needed
• Build capabilities needed using a roadmap
• Don’t under estimate change management
BI Strategy Best Practices Summary
© 2013 SAP AG. All rights reserved. 17
BICC Effectiveness Organizations 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
2.8 2.6
© 2013 SAP AG. All rights reserved. 18
BI Competency Center Operational Models
Every organization is different; 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
ICC Department BICC
BICC
BICC
Division 1 Division 2 Division 3
Corporate
Division 1 Division 2 Division 3
Finance … Sales
© 2013 SAP AG. All rights reserved. 19
BICC Skill Requirements Business, Analytic, and IT
Business Needs
Business
Skills
Organization and Processes
Business Needs
Statistical and Process Skills
Governance, Administration
Tools, Infrastructure, Applications, Data
Establish
Standards
Control
Funding Define
BI Vision
Manage
Programs
Build Technology
Blueprint
Develop
User Skills Organize
Methodology
Leadership
Analytic
Skills
IT
Skills
BICC
© 2013 SAP AG. All rights reserved. 20
Uptime Load Time Outage
Usage Pipeline Quality Cost
Education
Delivered Return
• System availability
• Subject area availability
• Infrastructure availability
• Business Unit response time
• Peak load performance
• Source availability
• Schedule performance
• Subject area load time
• Priority data load time
• Source system outages
• Planned infrastructure outages
• Unplanned infrastructure outages
• Subject area outages
• Business unit outages
• Support cases raised/closed/pending
• Cases by severity opened/closed/pending
• New projects pending
• New projects started
• Net ROI planned
• Net ROI achieved
• Projects delivered on-time
• Projects past due
Controllable
• FTE
• Planned maintenance
• Facilities and lease
• Planned growth
Uncontrollable
• Unplanned support cost
• Project overrun
• Outage
Operational Performance
• Usage by subject area
• Usage by business unit
• Delivered quality percent
• Unplanned history reloads
• Unplanned history restatements
• Average response time
• Subject area load failures
• Infrastructure product errors raised
• Infrastructure product errors closed
• New courses offered
• CBT offered/taken
• FTE trained
• Support FTE certified
• Usage 30 days after training
• Usage 60 days after training
BI Governance Strategies: Monitor Metrics Straw Model
© 2013 SAP AG. All rights reserved. 21
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
Wrap-Up
© 2013 SAP AG. All rights reserved. 23
As Analytics Maturity Increases, the Business Intelligence
Possibilities Become Endless …
Instantly predict market trends
and customer needs
Predict how market price
volatility will impact your
production plans
See changes in demand or
supply across your entire
Supply Chain immediately
Monitor and analyze all
deviations and quality issues
in your production process
Provide exactly the right offers
and service levels to every
customer
Have a continuously-updated
window onto future sales,
showing changes in real-time
Understand what your
customers and potential
customers are saying about
you, right now
Predict cash flows to manage
collections, risk, and short-
term borrowing in real-time
© 2013 SAP AG. All rights reserved. 24
Useful Resources
BI strategy Workshop - Sep 11, Analytics track
Take the BI Self Assessment
www.sap.com/bistrategy
BI News: www.sap.com/BINews
Blogs on BI Strategy http://scn.sap.com/docs/DOC-30479
http://scn.sap.com/docs/DOC-30480
http://scn.sap.com/community/business-intelligence/blog/2012/12/07/bi-strategy-bicc-a-key-element-
to-your-bi-program
http://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competency-
centers-take-center-stage-again
http://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-program-
define-track-and-measure-success/
Contact your account executive to explore
your potential savings
with the SAP BI Standardization Cost Calculator
© 2013 SAP AG. All rights reserved. 26
© 2013 SAP AG. All rights reserved.
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