BI Standardization: Reduce TCO + Improve Usability Chicago User Group - Nov. 18, 2011 Mike Watschke, Global COE for BI, EIM & DW
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1 BI Standardization: Reduce TCO + Improve Usability Chicago User Group - Nov. 18, 2011 Mike Watschke, Global COE for BI, EIM & DW
2 Agenda BI Challenges BI Standardization BI Road to Success Playbooks Role Best Practices: BI COE (BICC) Leveraging Pre-Built Industry & LOB Applications Q&A 2011 SAP AG. All rights reserved. 2
3 Mega Trends Transforming Business Today 70% of people in China access Internet with handset >750 million social media members 4 Exabytes of unique information in 2011 >1,000 + regulations and policies Double Digit budget cuts $241B global cloud market by 2012 * * SAP AG. All rights reserved. 3
4 OPERATIONS l HR l FINANCE IT SALES l MARKETING Users Need Information to Know MANUFACTURING l RETAIL l HEALTHCARE l BANKING l UTILITIES l TELCO PUBLIC SECTOR What happened? What is happening? What will happen? How and why did it happen? What is the risk? How do you prevent / ensure it happens again? Source: Tom Davenport International Institute for Analytics 2011 SAP AG. All rights reserved. 4
5 The Information They Have Is Siloed Incomplete Customer 123 Customer 123 Inconsistent Inaccessible 2011 SAP AG. All rights reserved. 5
6 BI Tools Proliferation Is Not the Answer 2011 SAP AG. All rights reserved. 6
7 BI Tools Proliferation Costs Costs Without BI Standards Savings With BI Standards Number of BI deployments across the enterprise 2011 SAP AG. All rights reserved. 7
8 BI Standardization Impacts Value Drivers Areas of Impact Growth Timely visibility Accelerate change initiatives Take advantage of opportunities Operational Effectiveness Real-time visibility across the enterprise Better collaboration and decision making Speed of acquisition and integration Customer Value Risk Reduction Non-disruption production and delivery International compliance Coherent information across the organization Process Standardization Global design, local flexibility Faster adoption Replicate best practices Profitability IT Portfolio Simplification Simpler IT architecture More funds for innovation Reduction of IT cost base 2011 SAP AG. All rights reserved. 8
9 Driving Tangible Benefits Time spent on BI maintenance IT spent on BI infrastructure Business user productivity Training costs Decision making Time to market IT spent on data integration Undesired IT systems 2011 SAP AG. All rights reserved. 9
10 Delivering Remarkable Results What did the best do? 40% 40% 50% Improved Business User Productivity Reduced Training Costs Reduced IT Spent on BI Infrastructure Source: Benchmarks from SAP Value Engineering and SAP customer experiences 2011 SAP AG. All rights reserved. 10
11 SAP BusinessObjects Proven Market Leadership in BI Broadest adoption 18 million+ Crystal Reports users 3 million+ Web Intelligence users Most complete solution for business users 67,000 customers = 80% of the Fortune 500 Intuitive user experience Designed for untrained users Unified information Consumes structured and unstructured as well as internal and external data, including benchmarks Business Intelligence Enterprise Information Management Analytic Applications Data Warehousing Enterprise Performance Management Governance, Risk, and Compliance Vibrant partner ecosystem 7,000+ partners across major ISVs, OEMs, resellers, and consulting Works with any technology platform Designed to operate in heterogeneous environments and well-integrated with SAP Market leadership Leading analysts rate business analytics solutions from SAP as #1 overall Most complete capabilities Unified approach for financial, supply chain, and environmental GRC 2011 SAP AG. All rights reserved. 11
12 Agenda BI Challenges BI Standardization BI Road to Success Playbooks Role Best Practices: BI COE (BICC) Leveraging Pre-Built Industry & LOB Applications Q&A 2011 SAP AG. All rights reserved. 12
13 Your BI Standardization Journey and Calls to Action 1 As-Is Assessment Become aware of the need for standardization 2 To-Be Vision Develop the strategy and the case for standardization 3 Roadmap Development Define the way forward in the journey 2011 SAP AG. All rights reserved. 13
14 Calls to Action 1 As-Is Assessment Analysis of BI needs, capabilities, and gaps Road to BI Success Playbook #1-3 Peer group comparison BI Benchmarking High-level savings potential BI Standardization Calculator 2011 SAP AG. All rights reserved. 14
15 Calls to Action 2 To-Be Vision BI strategy development Road to BI Success playbook #4 BI solution architecture Best Practice BI Solution Architecture on SCN BI standardization business case Value Lifecycle Manager 2011 SAP AG. All rights reserved. 15
16 Calls to Action 3 Roadmap Development BI roadmap SAP BusinessObjects BI roadmap Value roadmap Prioritization and sequencing of BI initiatives 2011 SAP AG. All rights reserved. 16
17 BI Standardization Calculator 2011 SAP AG. All rights reserved. 17
18 Driving Additional Benefits SAP Value Engineering can help build your business case Business Management Operational Excellence IT Optimization Tangible Benefits* % Impact Tangible Benefits* % Impact Tangible Benefits* % Impact Improve Decision Making Through Better Information Availability Reduce Time-to-Market for New Product/Service Launches Improve Success Rate of Products and Services Across Locations and Units Through Single Version of Truth Reduce Time Spent By Business Staff Compiling Information from Multiple Systems 10 15% 10 15% 5 7% 20 30% Improve Business User Productivity by Reducing Time Spent on BI Training Reduce Training Costs Related to Multiple Systems Improve Efficiency of Business Staff by Gaining Expertise on Single BI Platform Reduce Help Desk Support to Address BI Queries 30 40% 30 40% 30 40% 10 15% Reduce IT Spend Dedicated to Maintenance of BI Infrastructure (Hardware and Software) Reduce Time Spent By IT Staff Maintaining Multiple BI Systems Achieve Cost Benefits Through Undesired System Retirement One Time Reduce Enterprise-wide IT Spent On Data Integration Reduce Enterprise-wide IT Spent on Data Quality Resulting From Consolidation from Multiple Data-Marts and Sources 30 50% 30 40% 50 70% 30 50% 30 50% Source: Benchmarks from SAP Value Engineering and SAP customer experiences 2011 SAP AG. All rights reserved. 18
19 Metadata Management Business Applications Orchestrating Information for Better Results Customer Value Profitability User Interfaces Market Drivers Transactions Business Intelligence Strategic Drivers Market Intelligence informs Core Operating Model Extended Value Net informs Composite Applications & Processes Performance Management & Analytics Finance Operating Capabilities Operations Core Business Drivers Reporting & Analytics Information Architecture evolves and informs evolves and informs Information Consumers Employees & Employee Behaviors guides VALUES NORMS ARTIFACTS SYMBOLS guides Systems Design, IT & Business Services Master Data Structured Data Information Provisioning Unstructured Data Sustained by Motivators, Integrators & Governance Systems After: Weill & Ross (2009), SAP (2011) 2011 SAP AG. All rights reserved. 19
20 Agenda BI Challenges BI Standardization BI Road to Success Playbooks Role Best Practices: BI COE (BICC) Leveraging Pre-Built Industry & LOB Applications Q&A 2011 SAP AG. All rights reserved. 20
21 4 Step BI Road to Success Approach Utilize playbooks for repeatable value-based methodology Gartner Playbooks: Interactive discovery, prioritization, and recommendations for addressing business pains and a successful enterprise BI strategy Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1 (Business Interviews) Playbook 2 (IT Interviews) Playbook 3 (Assessment & Analysis) Playbook 4 (Recommendations) 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, GAP BUSINESS SOLUTION / BENEFIT EXPECTED BENEFIT / VALUE 12 Media Performance Determine what metrics are needed to Integrates different types Tracking - We need demonstrate media performance of information into a deeper insight into how Determine who needs the information, and in single view to perform our media investments what form. trend analysis and across various channels Automate delivery of the information provide a better promote are performing so we can the required to all who need benefits it. understanding of revenue of better allocate funds. Integrate data sources if needed. relationships. addressing the gaps, 13 Sales Performance Determine the causes of sales reductions Combines different Management - We need (bottlenecks in sales process), and the sources of sales deeper insight into sales appropriate information/kpis to track information such as performance, to be able Integrate multiple sources (if necessary). quota, quota achieved, to understand where Determine who needs what information pipeline, tenure, we're getting traction, and in what form projected close for next where we're not, and why Automate the delivery of the information quarter to identify trends so adjustments can be and potential issues. made 14 Sales Variance - We need Determine the causes of sales reductions Combines different to more quickly be able to (bottlenecks in sales process), and the sources of sales identify what is causing appropriate information/kpis to track information such as and map sales variances across BI Integrate multiple solutions sources (if necessary). quota, quota achieved, to product, region, LOB, etc Determine who needs what information pipeline, tenure, and in what form projected close for next Automate the delivery of the information quarter to identify trends and potential issues. solve the business pain 2011 SAP AG. All rights reserved. 21
22 SAP BI Strategy Foundation Playbook Overview 1. BI Business Needs Identification and Gap Summary by LOB 3. Prioritized Gaps 2. BI Strategy & Execution Analysis 4. BI Strategy Recommendations GAP BUSINESS SOLUTION / BENEFIT EXPECTED BENEFIT / VALUE 12 Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds. Determine what metrics are needed to demonstrate media performance Determine who needs the information, and in what form. Automate the delivery of the information required to all who need it. Integrate data sources if needed. Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships. 13 Sales Performance Management - We need deeper insight into sales performance, to be able to understand where we're getting traction, where we're not, and why so adjustments can be made Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/kpis to track Integrate multiple sources (if necessary). Determine who needs what information and in what form Automate the delivery of the information Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues. 14 Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc Determine the causes of sales reductions (bottlenecks in sales process), and the appropriate information/kpis to track Integrate multiple sources (if necessary). Determine who needs what information and in what form Automate the delivery of the information Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues SAP AG. All rights reserved. 22
23 BI Strategy Gap Analysis and Business Solution 2011 SAP AG. All rights reserved. 23
24 BI Strategy Gap Analysis and BI Solution Recommendation Architecture Example 2011 SAP AG. All rights reserved. 24
25 Agenda BI Challenges BI Standardization BI Road to Success Playbooks Role Best Practices: BI COE (BICC) Leveraging Pre-Built Industry & LOB Applications Q&A 2011 SAP AG. All rights reserved. 25
26 BI Competency Center Model Alternatives Organizational 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 3 Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August SAP AG. All rights reserved. 26
27 BICC Skill Requirements BICC Business, Analytics and IT Skills Manage Programs Develop User Skills Business Needs Statistical and Process Skills Analytic Skills Business Skills Business Needs Organization and Processes Define BI Vision BICC Organize Methodology Leadership Control Funding Establish Standards Build Technology Blueprint Governance, Administration Tools, Infrastructure, Applications, Data IT Skills Business Skills: IT 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 An understanding of the organization's strategic business objectives and the role action-oriented information plays in achieving the corporate objectives Stewardship skills to drive standardization of official hierarchies, business vocabularies and other relevant business terminology, and to participate in semantic reconciliation and ongoing data-quality efforts 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 Deep understanding of diverse business intelligence and performance management tools and technologies Understanding of the differences in design and access characteristics of diverse data sources Data governance, architecture and management skills Data administration and metadata management skills Analytical Skills Fluency with key analytic applications Researching business problems and creating models that help analyze these business problems Working with the IT department to develop insight into how to identify data for a specific analysis or application Skills to train the users in how to transform data into action-oriented information, and how to use that information 2011 SAP AG. All rights reserved. 27
28 BICC Strategy Map Example Financial Perspective Ensure budgeting discipline BI Efficiency Increase Asset Utilization Long-Term Shareholder Value BI Effectiveness Impact on enterprise outcomes The Business Internal Customer Perspective Deliver BI services at competitive cost Competency Deliver consistent, high quality BI services Support business unit needs with BI Contribution Drive business unit success with innovative BI solutions Achieve Operational Excellence Create and Support Business Unit Partnerships Provide Strategic Support to the Business IT Service Management Perspective Maintain a secure and reliable infrastructure that ensures business operations Manage service quality; deliver on schedule Improve business unit productivity and profitability Partner with business units; understand their strategies Propose and deliver Information Management Services Understand emerging BI technologies Optimize BI processes; lower unit costs Develop effective decision support systems Provide superior BI professional services Learning & Growth Perspective Attract, develop, and retain employees with key competencies Provide BI tools and techniques that enhance the BI function Foster a business and customer-focused culture 2007 Balanced Scorecard Collaborative and Robert S. Kaplan - Revised 2011 SAP AG. All rights reserved. 28
29 Industry Analytic Applications 2011 SAP AG. All rights reserved. 29
30 Line of Business Analytic Applications 2011 SAP AG. All rights reserved. 30
31 Thank You! Mike Watschke Sr. Director, BI Global Center of Excellence for BI, EIM & DW +1 (952)
32 2011 SAP AG. 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 AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle and Java are registered trademarks of Oracle and/or its affiliates. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG SAP AG. All rights reserved. 32
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