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http://spr.ly/sapbi - A Business Intelligence (BI) strategy is important to create an information driven culture in any organization. Learn the importance of a BI strategy and how your organization can achieve it.
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BI Strategy – Getting where you want to go Creating an information driven culture in your organization
Deepa Sankar
Director, BI Product Marketing
© 2013 SAP AG. All rights reserved. 1
Agenda
Analytics – Key enabler for business transformation
The Importance of a BI Strategy
How SAP Can Help in Defining Your BI Strategy?
Wrap-Up
Analytics Key Enabler for Business Transformation
© 2013 SAP AG. All rights reserved. 3
No Question Analytics Provide Proven Return on Investment
“Organizations earn an
average of $10.66 for
every dollar spent on
deployments of
analytics.”
Source: Nucleus Research, “Analytics pays back $10.66 for every dollar spent”, December 2011
>1000% “With such high returns,
management teams should
consider these technologies to be
one of the most attractive
investment opportunities
available to the CFO”
© 2013 SAP AG. All rights reserved. 4
Top 10 Business Priorities Top 10 Technology Priorities
1. Increasing enterprise growth 1. Analytics and business intelligence
2. Delivering operational results 2. Mobile technologies
3. Reducing enterprise costs 3. Cloud computing (SaaS, IaaS, PaaS)
4. Attracting and retaining new customers 4. Collaboration technologies
5. Improving IT applications and infrastructure 5. Legacy modernization
6. Creating new products and services 6. IT management
7. Improving efficiency 7. CRM
8. Attracting and retaining the workforce 8. Virtualization
9. Implementing analytics and big data 9. Security
10. Expanding into new markets and geos 10. ERP Applications
Source:Gartner 2013
Top Business and Technology Priorities 2013
© 2013 SAP AG. All rights reserved. 5
Technology is not the problem
Between 70% to 80% of corporate business intelligence projects fail, according to research by
analyst firm Gartner.
“Organizations tend to throw
technology at BI problems. You could
have the right tool, but it could be
doomed to failure because of political
and cultural issues, an absence of
executive support so the message
doesn't get out, and poor
communication and training.”
© 2013 SAP AG. All rights reserved. 6
Source: Forrester Research, 2012 BI Maturity
Survey and Pioneer self assessment
In 64% of enterprises, fewer
than 10% of decision
makers use BI
© 2013 SAP AG. All rights reserved. 7
People are THE Key BI “Technology”
BI Culture is about optimizing the use of
this “technology”
It’s as important to plan the
cultural changes as it is to
plan the rest of BI
deployments
© 2013 SAP AG. All rights reserved. 8
Inescapable Trends Affecting BI Culture
Consumerization of IT
Internal vs. External Data
Internal vs. External Systems
Agile BI and Data Discovery
“Big Data” and Data Scientists
Real-Time Data Platforms
Talent and Performance Management
Budgets Moving to the Business
Information as an Asset
Do you still feel
like you are in
charge?
The Importance of a BI
Strategy
© 2013 SAP AG. All rights reserved. 10
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
“
”
Culture Eats Strategy for Breakfast.. So it had Better
be Tasty!
© 2013 SAP AG. All rights reserved. 11
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. 12
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. 13
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. 14
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 can SAP help?
© 2013 SAP AG. All rights reserved. 16
How SAP Can Help
BI Strategy Framework & Assessment
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. 17
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. 18
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. 19
Prioritized, Business Driven Needs - Recommendations
Best Practices
© 2013 SAP AG. All rights reserved. 21
• Find a high-level executive sponsor
• Define and prioritize business needs
• Gap assessment of current vs. future capabilities needed
• Define & build capabilities needed using a roadmap
• Don’t under estimate culture and change management
BI Strategy Best Practices Summary
© 2013 SAP AG. All rights reserved. 22
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. 23
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
Source: Gartner
© 2013 SAP AG. All rights reserved. 24
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
Source: Gartner
© 2013 SAP AG. All rights reserved. 25
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. 26
Useful Resources
BI Strategy Workshops: Reporting & Analytics Conference, Nov. 19, Orlando
Take the BI Self Assessment: www.sap.com/bistrategy
BI News: www.sap.com/BINews
BI and Your Success- 5-part video series: http://spr.ly/BI_Success
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/
Thank you
© 2013 SAP AG. All rights reserved. 28
© 2013 SAP AG. All rights reserved.
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