The Big Trends in BI Competency Centers (UPDATED)

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The Big Trends in BI Competency CentersTimo Elliott, Innovation Evangelist, SAPMarch 2016

@timoelliott

Agenda

• The Brave New World• What Changed?• Supporting “Modern BI”• The New BICC• Conclusion

@timoelliott

Brave New World

First, Some Bad News: The BICC is (Officially) Dead

“Beautiful plumage!”

“When Gartner started to cover BICC as a trend over 10 years ago, it turned out to be one of the biggest success factors for BI programs….

But: “all good things must come to an end”

The BICC is Dead

Don’t Worry, It Turns Out BI is Also Dead…

Are You a BI-nosaur?

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Are You an “IT-Centric Laggard”?!

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Latest Gartner Magic Quadrant….

Mentions the word “users”

148x

Mentions of “users”

148

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What Changed?

What Changed?

New technologies mean new opportunities and new ways of working@timoelliott

“I Can Drive Myself, Thanks…”

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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

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The Rise of the Chief Innovation Officer and Chief Data Officer

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The Future of the CIO

Chief Innovation Officers

Chief Infrastructure Officers

BICCs (Continue To!) Bring Big Benefits

Survey conducted by BetterManagement.com

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:

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But BICCs Haven’t Actually Been Driving BI

Functions Driving Business Intelligence

BICC

Marketing

Strategic Planning

Sales

IT

Operations

Finance

Executive management

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

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Who Drives Business Intelligence?

Executives Finance

OperationsIT

SalesStrategic Planning

Mktg

BICC

BI Success…

BI initiatives described as "successful" dropped from 41% to 35% in 2015

Source: TechTaget

The Penetration of BI Remains Low

“Close to 40% of organizations report fewer than 10% of employees using BI”

Techtarget, 2015

Do People Actually USE Data?

Room for improvement…

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Enterprise systems are too slow

31% wait days or weeks for an average BI request

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Enterprise BI: too little data, and too hard to use

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Business Users Do Not Fully Trust Enterprise Data

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So users turn to their own systems…

40% are using an equal amount or more of homegrown applications

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Hubris

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New Conflicts

Internally-orientedCosts

GovernanceEfficient reuse

Customer-facingOpportunitiesFlexibility and speedExperimentation

IT Business

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“Do business people see you as Uber? Or the taxi company?”

Supporting Modern BI

Data-Driven Approach

Push:• From IT• Data-Driven• Data to Insight• Technology-Centric

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Value-Driven Approach

Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric

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Combination Approach

Push:• From IT• Data-Driven• Data to Insight• Technology-Centric

Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric

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You Need Both of These

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“Modern BI”

Source: Gartner

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“Modern BI”

DATA Self-servicedata preparation

Structured / Unstructured

Internal / External

Batch / Streaming

Integration, blending

Cleansing, augmentation

Agile modeling

BI DBColumnar

In-memory

NoSQL

Self-servicedata analysis

Data discovery

Visual exploration

Dashboards / storytelling

Agile Iteration

OptionalData warehouse

Semantic layers

OLAP Cubes

End users (and IT)

IT

“…currently dominated by IT-centric platforms, but many will be replaced by modern BI platforms over time

“new market guide since mature market, not much net new buying or differentiation”

What Happened to “Traditional BI”?

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Systems of Insight

“Earlier-Generation BI Is No Longer Enough”• Earlier-generation BI can’t keep up in the age

of the customer. • Agile BI and big data are the building blocks of

systems of insight

Source: Forrester Research, Inc.

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We Still Need Industrial Scale BI and Reporting

Where did that number come from?!

Why all these information

silos?!

What about security and

administration?!

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Traditional, IT-Led BI still makes up 75% of BI Revenue

"About $12Bn of the $16Bn BI revenue is no longer on the quadrant”

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Change Is Good — You Go First

IT people are open to the idea — but in no hurry…

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The Role of Central IT in Modern BICCs?

Everything in moderation (doh!)

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Top BI Functionality

Query & Analysis

Data Discovery

Alerts

Dashboards

Reports

Spreadsheets

18%

19%

25%

35%

53%

69%

Source: InformationWeek BI Survey 2015

To what extent are the following technologies used to share analytic and BI insights in your organization?Used extensively:

Source: InformationWeek BI Survey 2015@timoelliott

The New BICC

So What Replaces BICCs? (According to Gartner)

Long live the“Analytic Community of

Excellence”!

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Updating the Traditional BICC to Include Community

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

* AKA Analytics, Big Data, Data Science, etc.

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It’s About Culture Change First and Foremost

From Power to EmpowerFrom Collection to ConnectionFrom Control to Trust

New BICCs are about providing good governance and encouraging best practice rather than providing reports and analytics

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From Power to Empower

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Start Asking Questions

• Does you really understand the users and their needs?

• Is the reporting in the central system a true picture of overall reporting activity?

• Do management have an accurate overview of reporting activities?

• How should you involve management in prioritizing and setting strategic directions?

• Are you perceived as a help or a bottleneck?

• Where could you really make a difference?

• What are the new requirements in terms of speed, flexibility, and simulation? 

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Consider an External Audit

“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.”

– Anders Reinhardt, Global BI Manager, Velux

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The Traditional BICC Setup

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

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“A new extension? That’ll cost ya, guv…”@timoelliott

“And would you like some fresh reports with that, Sir?”@timoelliott

“You fly the planes — we just make sure you don’t crash into each other”

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Embrace Shadow IT

Don’t fight back—be a co-conspirator…@timoelliott

Build a Community

• Co-located wherever possible• Regular meetings• External speakers• Shared best practice• Leverage social• Governed by the community

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Organization

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The Main Functions and Responsibilities of a BICC

All of this is still important — but should be pushed to the community as a whole

Source: Capgemini BICC Study

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Functional Areas of the BI Competency Center

TextBusiness

Intelligence Program

BI Delivery

Data Stewardship

Training

Advanced Analytics

Support

Vendor Management

Data Acquisition

Executive Sponsor

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Functional Areas of the BI Competency Community

TextBusiness

Intelligence Program

BI Delivery

Data Stewardship

Training

Advanced Analytics

Support

Vendor Management

Data Acquisition

Executive Sponsor

IT

Community

Business

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Leverage Social Platforms

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Store, maintain, integrate dataImplement changes

Summarize and analyzeDiscover and explore

Link to corporate strategyAlter processesPrioritize and set expectations

Gather requirementsEvangelizeMonitor satisfaction

Interpret resultsDevelop alternatives

Identify dataExtract dataValidate data Engineering skills

Analysis skills Relationship skills

Leadership skills

BICC Key Skills

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The Right Tools

Broad, Powerful Tools Detailed, Precision Tools@timoelliott

Fewer BI Tools Correlated with Higher Success

BI StandardizationThe pragmatic reduction of the number of overlapping BI tools

Invest in Self-Service Data Discovery Tools

“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

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Revenge of the Full Client

Long live Deski’s descendants

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Invest in Self-Service Data Preparation

SAP Agile Data Preparation

AKA “Data Blending” — combine, merge, cleanse data

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Invest in New Technology Areas

Makes sense

A bit confusing

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Invest in Communications

Effective communication is the bedrock of a successful BICC — Involves skills that aren’t always part of the staff hiring process

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Celebrate Success!

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Promotecontest

Help prepare entries

Ask Execs to judge

Award prizes

Promote winners

Support Data Visualization

Not using pie charts

Ease of use, training, data quality, incentives, organization, process, etc. etc.

Importance for BI Success of:

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BUT Visualization Sells

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Flashy graphics can make useful sales tools early on in the lifecycle of rolling out data visualization — but encourage best practice as soon as possible

So…

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Integrate BI into Executive Decision Cycles

When was the last time you audited your decision-making processes?

US Retailer

Fully interactive, data-based screens

Questions answered there and then, no leaving the meeting until a decision is made

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Invest in Advanced Analytics@timoelliott

Cloud Analytics Can Help Agility

It’s not Pie in the Sky!

Data gravity: BI in the cloud when the data’s in the cloud@timoelliott

Be Proactive: Drive Innovation

Design thinking is a methodology to unlock solutions to questions you never would have asked

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From Collect to Connect

Data Wranglers needed@timoelliott

A Central Source of Truth?

Having centralized “source of truth” appears to correlate BI success…

[But we’re maybe asking the wrong people]

Is Centralized Truth Dead, Too?

“So we don’t need a centralized truth?!”

“Absolutely. Never worked, doesn’t work, will not work” Gartner Analyst @frankbuytendijk

Most of the 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.” - Forrester

55%

45%

In enterprise systemsNot in enterprise system

“By 2019, 75% of analytics solutions will incorporate 10 or more external data sources” - Gartner

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Leave Data Where It Is (as much as possible)

Data Warehouse

Hybrid Transaction/

Analytical Processing

Hadoop,MongoDB,Spark, etc Personal

Data / BI

Where does data arrive?When does it need to move?Where does modeling happen?What can users do themselves?What governance is required?

Big Data Architectures got complicated

What we want — consistent, seamless solution@timoelliott

Sandbox

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84© 2015 SAP SE or an SAP affiliate company. All rights reserved.@timoelliott

From Control To Trust

Information Governance

“Stopping people from doing dumb things with data”(Yes, it’s a VAST topic…)

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What Can (And Typically Does) Go Wrong Without Governance

High costs

Wasteful duplication of efforts

Data that doesn’t match

Shiny objects

Lack of ROI

Security / Legal considerations

IT eventually has to support

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Make Everything Transparent

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Self-Governance

“Social norms” can be very powerful

Right-Sized Methodologies

IT/Cross Platform

Agile BI

Self-Service

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Handholding

“Hypercare” handholdingFirst reports are more expensive, but then just a few days instead of 4-5 weeks. After six months, saving of 40% in the development time

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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

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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/ @timoelliott

Best Practice: Adopt a Common Methodology

e.g. UK National Electricity Grid

DecideDefineDevelopDeployDeclare

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Best Practice: Introduce Data Driving Licenses

Source: Gartner@timoelliott

Trust But Verify

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Track Usage!

Support The Analytics Lifecycle

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Support the BI Lifecycle

Source: Gartner@timoelliott

Conclusion

It’s All About the Relationship!

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Where to Find More Information

@timoelliott

• “Cultivating Communities of Practice: A Guide to Managing Knowledge” Link

• SAP BICC Playlist on YouTube: Link• SAP BICC Best Practices Guide: Link• SAP BI Self Assessment : www.sap.com/bistrategy• SAP BI Strategy Playlist on YouTube: Link

• Follow me on Twitter! @timoelliott• Read my blog! http://timoelliott.com

7 Key Points to Take Home

1. Old approaches are no longer enough2. Self-service BI is a wonderful business opportunity

If done right, can dramatically improve business agility and IT/Business alignment3. But it requires new cultures and ways of working

You’re no longer in charge — and everybody has to compromise4. Pragmatism is the name of the game

It’s not about doing the least-worst, most-right job, focusing on building usage5. Community is the essential pillar

No one person or team can do this alone — build momentum and listen to feedback6. Look for opportunities to simplify

It’s not about technology, but the right technology can help agility7. Keep up momentum and success

Look out for teaching opportunities, and market success widely and often

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Thank You!Timo ElliottVP, Global innovation Evangelist

Timo.Elliott@sap.com @timoelliott

Appendix

Business Intelligence Program

Create and monitor overall BI strategy Establish overall vision for leveraging the organization’s information assets Sets business improvement strategy, set targets and track success Manage organizational change Determine and standardize information sources Enable collection and consolidation

Gather and share knowledge Give advice and coaching to business users on how to use BI and interpret results Keep track of new trends and technologies and map them to the organizations needs Define information audiences and information access rights Define best-practice infrastructure, methodologies, and standards Establish and maintain a corporate knowledge base

Run BICC Business planning for the BICC aligned with organization’s strategic and operational goals Promote use of the BICC and its services within the organization Define and monitor BICC-related KPIs Recruit and train staff Establish billing processes (if appropriate)

Data Acquisition and Data Stewardship

Data Acquisition: Extract and transform data Create interfaces to source systems Standardize rules and jobs for data extraction Monitor performance and optimization Create data integration processes Strengthen the role and use of metadata Establish common data definitions across the organization: “one version of the truth”

Data Stewardship: Trusted, tracked information Accurate, consolidated information Agree on data definitions and standards Establish definition verification program Define reconciliation processes Define metadata and business rules Conduct data quality improvements Enable impact analysis and data tracking Ensure communication to and participation of all parties

BI Delivery

Execute projects Carry out infrastructure maintenance Track change requests and new projects Gather user requirements and feedback Execute project management, including technical change management Establish development, testing, and promotion processes Collaborate with IT functions

Document and evolve best practice guidelines Execute project review and evaluation Publish documentation and usage guidelines Determine format, channel, and content appropriate for each user profile Monitor adherence to access restrictions and other rules Monitor and improve performance, clarity, and layout Develop and implement organizational reporting standards

© SAP 2009 / Page 109

Advanced Analytics

Manage business needs Monitor opportunities Define analysis scope Evaluate cost versus business benefit Estimate effort for complex tasks

Data preparation and validation Collaborate with data acquisition and data stewardship functions

Research and knowledge sharing Establish and implement analytical methodologies, models, and standards

© SAP 2009 / Page 110

Training

Training Review training needs in the BICC and for business users Examine training needs in relation to specific projects Determine training types and media (instructor-based training, e-learning, coaching, appropriate literature…) Develop training plan and materials Organize logistics Interface with external suppliers Evaluate training Facilitate knowledge transfer

© SAP 2009 / Page 111

Support

Support Establish a call-tracking and classification system Establish problem-solving techniques and tools Define an answering and escalation routine Define service-level agreements Technical support: establish interfaces to IT department and vendors Business support: establish interfaces to business departments

© SAP 2009 / Page 112

Vendor Management

Vendor relationship management Validate vendor portfolio with strategic and operational goals Collaborate with strategic vendors

License management Monitor adherence to vendor license regulations Review and optimize license usage Renegotiate contracts

Bidding processes Review and create input for proposals, contracts, etc. Conduct vendor evaluations and approval