BI Strategy & BI Competency Center: Keys to BI Success

Transcription

1 BI Strategy & BI Competency Center: Keys to BI Success Chicago Business Objects User Group August 22, 2014 Pat Saporito, SAP Global COE for Analytics

2 Agenda Business & IT Challenges The Importance of a BI Strategy SAP BI Strategy Assessment Workshop Role of a BICC Additional Resources 2014 SAP AG. All rights reserved. 1

3 Reality of the Internet of Everything 1 billion Facebook users Data doubles every 18 months 5 billion in emerging middle class 4 billion YouTube views per day 15 billion web-enabled devices

4 The impacts To the Business Need Data & Analytics Now! IT Can t Support User Frustration To IT Self Service Growth LOB & rogue BI buying; higher TCO Doing More With Less Less budget; higher demand; Data Chaos More data silos; less trusted in data; more data reconciliation

5 Three Good Reasons to Upgrade to BI 4.1 Innovate Empower Optimize Enable Answers on the Go (Mobile) Deliver Trusted Data Discovery to All (Self Service) Get the most out of your BI Investments (Value) 2014 SAP AG. All rights reserved. 4

6 Path to 4.1 Upgrade Success Corporate Strategy Alignment Enterprise BI Strategy Assessment Upgrade Migration Assessment Upgrade Scope & Planning Upgrade Execution 2014 SAP AG. All rights reserved. 5

7 User Engagement Collective Insight Analytics Evolution Optimization Predictive Modeling What is the best that could happen? Agile Visualization Generic Predictive Analysis Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Self Service BI Why did it happen? What will happen? What happened? Maturity of Analytics Capabilities 2014 SAP AG. All rights reserved. 6

8 Rx for BI Success: BI Strategy + BI Competency Center BI Strategy creates an information driven culture: Understand Business Pains Identify technology gaps Focus on change management and adoption BI Competency Center provides a sustainable framework to execute the strategy and maintain it SAP AG. All rights reserved. 7

9 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 Do you have a formalized strategy and roadmap? Has it been communicated? 2014 SAP AG. All rights reserved. 8

10 Organizations Need a BI Strategy Store Operations Merchandising IT Business Intelligence Strategy HR Supply Chain How does a BI strategy benefit IT? Marketing Finance How does a BI strategy benefit a LOB? 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 Have departmental spend go further and contribute to enterprise investments required Departmental BI needs often involves needing data from other groups. Remove limits of a departmental focus through an enterprise-wide strategy An enterprise BI approach provides a unified approach by allowing everyone to speak the same language 2014 SAP AG. All rights reserved. 9

11 Building Blocks of a Rock Solid BI Strategy SAP BI Strategy Framework Objectives Business Needs Business Benefit Technology Organization Background and Purpose Summary of BI needs Value Proposition of BI Information Categories Governance Structure Current State and History Envisioned To-Be State Expected Benefits Future State KPI Architecture and Standards Program Management BI Objectives and Scope Priorities and Alignment Business Case BI Applications Roadmap and Milestones Measurement A BI Competency Center operationalizes an organization s BI Strategy. It is the glue that holds business and IT together. Education / Training Support 2014 SAP AG. All rights reserved. 10

12 2014 SAP AG. All rights reserved. 11

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 Current BI Baseline Analysis (Business Discovery) BI Strategy & Execution Baseline Gap Analysis BI Strategy Recommendations Step 1 Step 2 Step 3 Step 4 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 poorlyexecuted strategy components With prioritized gaps, promote the benefits of addressing the gaps and map capabilities to solve the business pain 2014 SAP AG. All rights reserved. 12

14 Step 1 Business Discovery BI Current Strategy BI & Needs Execution Baseline Baseline Analysis Analysis Objective: Create high-level summary of BI needs by LOB and their expected impact if addressed 2014 SAP AG. All rights reserved. 13

15 Step 2 BI Strategy and Execution BI Strategy BI Strategy & Execution & Execution Baseline 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 2014 SAP AG. All rights reserved. 14

16 Step 3 and 4 - BI Strategy Gap Analysis and BI Strategy Foundation Prioritized Gaps Objective: Prioritized gaps, benefits of addressing the gaps and capabilities map to solve business pain Strategy Recommendation 2014 SAP AG. All rights reserved. 15

17 BI Strategy Workshop Agenda Day Time Title Topics Presenter 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 Org Structure, Initiatives, Gaps/Issues 10:45 11:45 BI Strategy & BICC Role/Best Practices 45 min. Current BI Strategy Existing BI/BICC initiatives & Org Gaps/Issues 60 min. BI Maturity Model BICC Capabilities/Org Structures, Roles, Skills, Governance Model BICC Metrics, Scorecard Customer, SAP SAP Facilitator 12:00 1:00 60 min. Lunch 1:00 3:00 pm Business Interviews 60 min each) 120 min Current Pains Key Analytic Related Initiatives SAP Facilitator 3:00 4:30 IT Interview 90 min Current Pains Current BICC Capabilities SAP Facilitator 2 9:00-10:00 am Preliminary Gap Assessment 60 min. Review and discuss initial findings from Day 1 SAP Facilitator 10:15 11:15 am Next Steps 60 min. Discuss next steps (org. structure, priorities, resources, etc.) SAP Facilitator Customer 1:00 4:00 Optional Workshop/Session 180 min Self Service, Predictive, Big Data, BICC Workshop SAP 2014 SAP AG. All rights reserved. 16

18 BI & Analytics Maturity Model Levels of performance along the BI best practice framework Information and Analytics (Business & KPI, ad hoc, measurement) Governance (Business participation, selfservice, BICC) BI Maturity Stages Level 1 Requirements driven from a limited Executive group IT Driven BI Governance Level 2 KPIs/Analytics are identified, but not well used Business Driven BI Governance Evolving Level 3 KPIs/Analytics are identified and effectively used Business Governance with Competency Center Developing Level 4 KPIs/Analytics used to manage the full Value Chain Enterprise-wide BI Governance with Business Leadership Standards and Processes (BI design/process, SLA,, reuse, data ownership & standards) Application Architecture (Multiple/disparate systems, spreadsheets, delivery) Do not exist or are not uniform BI Silos for each Business Evolving effort to formalize Some Shared BI Applications Exist and are not uniform Consolidating and Upgrading Uniform, followed and audited Robust and flexible BI architecture 2014 SAP AG. All rights reserved. 17

19 Partial Findings & Recommendations Key Improvement Areas & Identified Projects Example Improvement Areas Identified Projects BI Strategy & Governance Analysis & Presentation BI Tools & Technologies Data Sourcing & Quality Develop/maintain a comprehensive BI strategy including all LOBs (finance, purchasing, logistics; possibly HR Payroll) and all stakeholders Promote and disseminate the strategy so that everyone is exposed to it and can articulate it Move from Project to Program Focus Investigate use cases for Dashboards Develop self service and advanced BI strategy; investigate use off service tools (Explorer, Web Intelligence & Lumira; BW Query Developer). Investigate use cases for Predictive. Investigate use cases for Mobile BI Review and address any issues with performance/ wait time Develop/organize/redesign metadata structure to streamline use and make objects easy to find Implement more training for end-users and developers Enhance Data Governance for non-shared data Appoint BI data stewards; populate end user data dictionary tool Develop/document BI data quality standards and make them a part of projects as they are developed; leverage existing general IT standards/programs Review existing resources to support BICC BICC Formation/ BI Strategy Development Select 6-8 week pilot to begin standing up BICC Develop BICC scorecard/dashboard Develop executive dashboards; leverage MSH effort Build taxonomy/metadata repository ID to support analysis and presentation layer; review architecture structure Review quick win candidates for best high impact/low effort projects Conduct performance & architecture review Improve organization & access to existing metadata and reports; develop additional metadata/analytic views Include Self-Service BI training for Distributed/Dept. BI Development teams Define and make sanctioned data sources known and available Review/enable mappings between ECC & BW Information Layer Development (i.e. metric definitions, dimensions, and other information assets) 2014 SAP AG. All rights reserved. 18

20 BICC Evolution Not a new concept, but has become more business focused IT Driven BI Strategy Engaged business and developing business knowledge Strong collaboration and communication skills Breadth of BI skills rather then depth Influence-driven versus authority Empathy and respect for users; BI evangelist Drove BI rationalization; engaged in tool selection Ability to look broadly at diverse applications and business processes Business Driven BI Strategy Ability to find opportunities that drive business value, including diverse sourcing and delivery models Proven ability to foster user interest and adoption; support change management and culture Innate personal interest in diverse emerging trends and technologies Proven experience in delivering new business analytic initiatives Ability to uncover, evaluate and analyze the impact of disruptive forces 2014 SAP AG. All rights reserved. 19

21 BICC/COE Responsibilities BICC/ BI COE Education & Support BI Program Mgmt. Data Stewardship Advanced Analytics Training, Development & Implementation Intake & Prioritization Business Metadata Data Preparation Ad Hoc End User Support Ad Hoc Develop. & Prototyping Quality Assurance Data Mining/ Text Mining/ Statistical Modeling Communication Newsletters, & User Groups Requirements Data Governance Advanced Visualization BICCs: Bringing Intelligence to the Business. Bill Hostmann, Gartner. BPM Magazine - Nov SAP AG. All rights reserved. 20

22 Common BI Competency Center Operational Models BICC as an IT Department Virtual BICC CIO Finance Sales Department BICC ICC BICC BICC as Part of Operations Distributed BICC COO Corporate BICC Division 1 Division 2 Division 3 Division 1 Division 2 Division SAP AG. All rights reserved. 21

23 BICC Skills Requirements Business + Analytics + IT Business Skills Business Needs Organization and Processes Business Needs Statistical and Process Skills BI Vision & Strategy Program Management User & Analytic Skills BICC Policies & Governance Business Case & Funding Standards & Methods Solution/ Technology Blueprint Governance, Administration Tools, Infrastructure, Applications, Data Analytic Skills IT Skills 2014 SAP AG. All rights reserved. 22

24 Baseline BI Governance & Interactions Model Executive Steering Group Reviews status Reports ROI Makes recommendations Functional Working Group Organizational commitment Allocates funding Manages/accepts risks Directs and ratifies direction Sets policy Sets priorities Accepts risk Sets direction Champions change Provides input Operational status Project pipeline Issues & risks Management review Makes recommendations Manages operational effectiveness Directs strategy Champions change Provides input Individual Contributors Business Intelligence Team Provides operational support Manages information assets Supports user community Funding Operational direction Executive support Project pipeline Sets priorities Implements policy Seeks input Manages issues and risks Sets priorities Implements policy Consults to governance body Champions change Provides input on direction 2014 SAP AG. All rights reserved. 23

25 BI/BICC Strategy Map and Balanced Scorecard Should Represent a Complete Program of Action Strategy Map Balanced Scorecard Action Plan Theme: Improve Decision Making Objective Measurement Target Initiative Budget Financial Standardize on BI Tools Lower BI TCO Reduce License Fees Reduce BI Infrastructure Costs Reduce Labor Costs of BI resources # of BI environments Annual BI Tool maintenance & support fees One < $75k BI Tool Consolidation Project Coterminous SW License negotiations $150k 1 FTE Supply Mgt (80 hrs.) Internal Customers Increase Productivity of Knowledge Workers Provide costeffective Innovative BI Solutions Provide efficient & easier access to info Provide latest BI SW functionality - capabilities End-User Satisfaction Survey # of Self-Service Knowledge Workers # of BI Services available 85% Favorable Services Online User Survey Project BOE Upgrade $5k $350k IT Service Management Support Training Gain efficiency through process improvement Improve 1 st time incident resolution Develop Online Training Programs Improve tracking of BI support incidents Reduce number of Help Desk intake channels % of 1 st time incident resolutions Time to resolve BI incidents # of online BI training courses # of Help Desk intake channels 60% 4 hours 10 intro, 5 advanced (2) 800#, Online entry BI-specific Education Program BI Incident Management improvement Program Service Desk Reengineering Program $150k $150k $200k Learning Knowledge Management Repository R&D BI Lab Develop the necessary BI skills Develop lab environment for innovation # of repository entries Avg. Rating of entry Availability of BI lab configuration 50 per month 4 out of % Repository incentive program Configure BOE Lab environment $50k $100k Communicate Measure Execute 2014 SAP AG. All rights reserved. 24

26 BI Success Best Practices Summary Name and support a high-level executive sponsor Make sure your strategy is strategically aligned and business driven Assess current vs. future capabilities needed Build capabilities needed using a strategy roadmap and support with a BICC Anticipate & plan for Change Management & Culture Shift 2014 SAP AG. All rights reserved. 25

27 Additional SAP BI Strategy Support Capabilities BI Strategy Best Practices Workshop BI Strategy Assessment & Workshop BI Maturity Model & BI Benchmarks Data Governance Best Practices Workshop Strategic Advisory Services ASUG/Business Objects User Groups 2014 SAP AG. All rights reserved. 26

28 New! Information Governance Model + Self-Assessment Information Governance model: Expand your approach to solving information problems, so you aren t caught in endless cycles of keeping the lights on. Self-assessment: Highlight what good looks like for key organizational and technology components, including which to target. Information as an Asset Roadmap Map your funded, information-heavy projects to strategic EIM initiatives. Result: A vetted, reviewed, and focused plan for your information strategy! Get the tools here: SAP AG. All rights reserved. 27

29 Additional Resources: BI Success Web Site Link Don t miss our new BI Strategy ebook! 2014 SAP AG. All rights reserved. 28

30 Appendix

31 Getting Started: Self-Service Online Assessment Option A self-service online assessment tool that will help you identify business challenges across your organization Note: Covers business pains only, not the BI Strategy Baseline Assessment SAP AG. All rights reserved. 30

32 BI & Analytics Maturity Model Levels of performance along the BI best practice framework Information and Analytics (Business & KPI, ad hoc, measurement) Governance (Business participation, selfservice, BICC) Standards and Processes (BI design/process, SLA,, reuse, data ownership & standards) Application Architecture (Multiple/disparate systems, spreadsheets, delivery) BI Maturity Stages Level 1 Requirements are driven from a limited Executive group Not standardized or linked to business needs Few Operational reports with little business benefit Historical reporting. Information reliant on lagging indicators No Value KPIs IT Driven BI Governance Technology-centric organization and implementations No/little business participation in projects Weak end-user skills. No employee or manager self service No BI competency center Data access limited to few key individuals Do not exist or are not uniform No service level agreements (SLA s) Design, development and management processes are informal High use of generic BI objects or heavily customized development No reuse of data or information Non-standardized master data Data ownership is undefined or conflicting Level 2 KPIs and Analytics are identified, but not well used Weak to moderate business ownership of requirements Multiple sets of KPIs and information requirements often conflict Generic KPIs are not business optimized Value measurement is coincidental Business Driven BI Governance Evolving Low to moderate participation of Business in BI governance Considering a competency center Weak to moderate end-user skills. Some core group of super-users Employee Self Service partially used Manager Self Service not in place Proliferation of data access through Excel Evolving effort to formalize BI Processes and standards may be documented Verbal SLA's in place; no formal and regular update/negotiation process Little to moderate reuse of information Initial efforts to standardize master data Occasional executive interest in data when considering major initiatives Some Shared BI Applications Level 3 KPIs and Analytics are identified and effectively used Strong business ownership of requirements Common set of rationalized KPIs and information requirements Business relevance of every metric validated Value is tracked and reported Ad-hoc report development in place Consolidating and Upgrading Level 4 KPIs and Analytics are used to manage the full Value Chain Strong business ownership of requirements Increased use leading indicators for KPIs and analytics Collaborative development of requirements across the value chain Robust ad-hoc analytics and information availability (structured and unstructured) Enterprise-wide BI Governance with Business Leadership Business Governance with Competency Center Developing Enterprise participation on all developments High Business Ownership of BI Activities Governance includes feedback All BI activities guided by business goals mechanisms from the full value chain Business case and ROI for BI projects ESS and MSS fully adopted Moderate end-user skills with pockets BI competency center is mature of strong users. No lack of super-users Standard support across the enterprise ESS fully adopted; MSS partly adopted High security and authorization BICC is new or developing Security and Authorizations becoming uniform Uniform, followed and audited BI Process and standards are Exist and are not uniform documented, followed and audited BI process and standards are Formal governance board in place for documented but not always followed strategy and direction Informal governance group which is Written SLA's in place with formal and mainly responsible for issue resolution regular update/negotiation process Written SLA's in place, but no formal and Heavy reuse of information regular update process Master data is fully standardized Moderate to heavy reuse of information. Ownership and responsibility is Master data standardized to large extent established for all data elements used Each major data area has a senior by the business champion who drives data standardization and quality Robust and flexible BI architecture Global Enterprise Data Warehouse implemented BI platform viewed as a strategic enabler for Business Ability for high-speed analytics Robust and user-friendly presentation layer High reliability of delivery to local, regional and global business needs Initial attempts at implementing a Global BI Silos for each Business Variances between BU s with Enterprise Data Warehouse (either multiple BI systems logical or physical) Significant variances between BU s Heavy reliance on spreadsheets and Spreadsheets are used selectively Limited access to information data manipulation Central tech support Users get what IT gives Planned migration to better Patches up-to-date Ad-hoc patches & Upgrades landscapes System consolidation planned and / or No enterprise standardization Documented plans for patches and implemented Minimal documentation upgrades 2014 SAP AG. 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33 Pat Saporito Sr. Director, Global COE for Analytics (201) Linkedin: patriciasaporito Author of Applied Insurance Analytics Thank You!