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


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


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


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


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?


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


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


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


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


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


Prioritized, Business Driven Needs - Recommendations

Best Practices


• 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


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


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


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


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


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


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


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

http://www.sap.com/bistrategy

http://www.sap.com/BINews









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/

























Thank You!

Session Id 0905 ASUG SBOUC

[email protected] @deesank

[email protected] @patsaporito

mailto:[email protected]






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