Use this title slide only with an image
The Big Trends in BI Competency CentersTimo ElliottSAP
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2
Agenda
• Business Intelligence Competency Centers
• Top Trends
• Learning from Others
• Wrap-Up
3
Business Intelligence Competency Centers
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4
What Is a BICC?
A Business Intelligence Competency 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” …
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5
Basic Goal: Make BI More Strategic and Cost Effective
Reactive
Maintenance
Strategic
Reactive
Maintenance
Strategic
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6
BICCs Bring Big Benefits
Every winner of a BI Best Practice Award has a BICC• (but beware of correlation and causation)
Survey conducted by BetterManagement.com, 2010
Decreased software costs
Decreased staff costs
Better understanding of the value of BI
Increased decision-making speed
Increased business user satisfaction
Increased usage of Business Intelligence
24%
26%
45%
45%
48%
74%
Organizations with a BICC see the following benefits:
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7
BICC Key Skills
Source: Gartner
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8
The Main Functions and Responsibilities of a BICC
Source: Capgemini BICC Study 2012
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9
Text
Functional Areas of the BICC
Business Intelligence
Program
BI Delivery
Data Stewardship
Training
Advanced Analytics
Support
Vendor Management
Data Acquisition
Business Intelligence Competency Center
Executive Sponsor
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10
BICC Recommendations
Creating a BICC• Assess the current state, needs, and
opportunities• Define the business value of a BICC to the
enterprise — specific business objectives and the business case
• Figure out the top priorities for skills, technologies, initiatives, and governance
• Identify business sponsors to steer the BICC and charter governance bodies
11
Top Trends
11© 2014 SAP SE or an SAP affiliate company. All rights reserved.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12
Analytics Took Over the World
Analytics is now the hottest trend in business, not just in IT. Business people now want to have more access, and more control.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13
User Empowerment Leads to New Organizational Stress
Consumerization of IT
Employee-driven technology
Business-led budgets
Customer-facing needs
More external data Speed of change
Increased business frustration
Increased IT frustration
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14
New Technology Means New Approaches
Predictive/NoSQL/Hadoop/Machine Learning/Data Lakes, etc. have enabled new relationships between different groups: IT, data scientists, business users …
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15
BICCs Are Not Driving BI
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16
The Large Portion 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
55%
45%
In enterprise systemsNot in enterprise system
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17
Enterprise Systems Are Too Slow
31% wait days or weeks for an average BI request
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18
Enterprise BI: Too Little Data and Too Hard to Use
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19
Business Users Do Not Fully Trust Enterprise Data
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20
So Users Turn to Their Own Systems
40% are using an equal amount or more of homegrown applications
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21
The Basic BICC Setup (May Not Be Enough)
Business Intelligence that is:• 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22
A Typical Deployment
Scandinavian manufacturing 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23
A Change in User Profiles and Patterns
Over a period of 7 years a company saw several shifts in its BI user group — and the shifts seem to be happening 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• Wants information on
mobile devices• Not scared of technology,
uses the right tool for the job
2012“You and me”
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24
New Conflicts
Internally-orientedCosts
GovernanceEfficient reuse
Customer-facingOpportunitiesFlexibility and speedExperimentation
IT Business
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25
IT Seeing Same Disruption as Other “Digital Businesses”
“Through 2020 spending on self-service visual discovery and data preparation market will grow 2.5x faster than traditional IT-controlled tools for similar functionality”
– IDC
“Are you Uber? Or the taxi company?”
26
Learning from Others
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27
Best Practice: External Audit
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 their 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29
Shadow BI Revealed
Time to information Business case required to get new reports, and could take six months. Business movers ended up buying their own tools.
Multiple iterationsMultiple iterations required, communications degrading. Local BI teams able to be more consultative and collaborative.
Lack of accountabilitySome 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30
Best Practice: Launch a New Approach
Large Retailer:
Big kick-off meetingAnalysts, IT, execs, outside expertsAll areas of the businessTool independent
Launched new “service bureau” approachStrong executive supportAnalytics 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31
Best Practice: Refocus
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
Role
Process
Tools
Need Solution
“Agency” philosophy: Be the best available option for the business — leverage unique knowledge of cross-functional opportunities
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32
Best Practice: Invest in Appropriate Tools and Skills
• Broad, not deep — build competence in “turning business information into insight” rather than technology, i.e., less reporting, more exploration
• Stay current! Be two years ahead of the business instead of two years behind. It will take time to build BI experts — start now.
“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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 33
Best Practice: Federated BICC 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34
Best Practice: Build and Nurture a Council/Community
UK Retailer:
Regular face-to-face meetings• Bring people together across silos: IT, Analysts, Business Leaders, Execs• Presentations of successes and 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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35
Best Practice: Adopt a Clear Methodology
National Electricity Grid
DecideDefineDevelopDeployDeclare
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36
Best Practice: Agile BI
“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.”
– Forrester, 2014
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37
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/
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38
Agile in Practice
Scandinavian Manufacturing:
Multi-level, agile approach:Three levels, self-serve, agile BI, IT/cross-platform Initiate, mock up, finalize, industrialize — two-week cyclesCorporate “Wikipedia” for documentation
Finding experts:Look for best fit and relationships with business, then train
“Hypercare” handholding on first reportsFirst 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
Guide towards solutions rather than “tools”
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39
Best Practice: Make the Work Visible
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 40
Best Practice: Team Management
Performance measurement based on the user experience: Data quality, engagement, delivery
Continuous Improvement: What can be improved in the processes, tracking learning
Social! Visual Mgt of priorities by team member
People focus on the health of the team
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41
Best Practice: Offer “Agency Services”
Data BureauOne-stop shopping for data, internal, external, or “wrangled”
Tools BureauExpert recommendations of best technologies to use, when
Sandbox EnvironmentsEnvironments that let businesses experiment on their own
Innovation OpportunitiesWorkshops (e.g., Design Thinking) to uncover new opportunities
Analysis ValidationTrust, but verify …
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 42
Best Practice: Introduce Data Driving Licenses
Source: Gartner
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43
Best Practice: Support the BI Lifecycle
Source: Gartner
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 44
Best Practice: Invest in Communications!
Effective communication is the bedrock of a successful BICCInvolves skills that aren’t always part of the staff hiring process
Sell the sizzleUse dashboards, scorecards, maps, and other visual applications/tools“Paint the walls with data”
Celebrate successPick a first initiative and make it a business successIdentify evangelists from the initiative and have them sell the success
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 45
Best Practice: Integrate BI into Executive Decision Cycle
US Retailer
Fully interactive, data-based screens
Questions answered there and then, no leaving the meeting until a decision is made
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 46
Best Practice: Support the Business
Scandinavian Manufacturer
Beyond BudgetingA new vision for performance measurement
Daily Resource Allocation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 47
Best Practice: Support the Business (cont.)
Massive increase in demand for analytics and better-presented data initially overwhelmed available resources
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 48
Best Practice: It’s All About the Relationship
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!
Learn from the business — there is a lot of good practice that should be adopted
49
Wrap-Up
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 50
Where to Find More Information
SAP 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/
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 51
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 53
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Top Related