BI Standardization: Reduce TCO + Improve Usability Standardization: Reduce TCO + Improve Usability Chicago User Group - Nov. 18, 2011 Mike Watschke, Global COE for BI, EIM & DW

BI Standardization: Reduce TCO +

Improve Usability Chicago User Group - Nov. 18, 2011

Mike Watschke, Global COE for BI, EIM & DW

© 2011 SAP AG. All rights reserved. 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


4 Exabytes

of unique information

in 2011

70% of people in China access

Internet with handset

>750 million social media

members

>1,000 +

regulations and

policies

Double

Digit budget cuts

Mega Trends Transforming Business Today

$241B global cloud market

by 2012 *

* http://www.simplysecurity.com/2011/04/29/forrester-cloud-market-to-hit-240-billion-by-2020/


Users Need Information to Know…

Source: Tom Davenport International Institute for Analytics

How and why

did it happen?

What is the

risk?

How do you prevent /

ensure it happens again?

What

happened?

What is

happening?

What will

happen?

OP

ER

AT

ION

S l H

R l F

INA

NC

E | IT

| S

AL

ES

l M

AR

KE

TIN

G

MANUFACTURING l RETAIL l HEALTHCARE l BANKING l UTILITIES l TELCO | PUBLIC SECTOR


The Information They Have Is…

Inconsistent

Customer

123 Customer

123

Inaccessible

Incomplete Siloed


BI Tools Proliferation

Is Not the Answer…


BI Tools Proliferation Costs

Without

BI Standards

With

BI Standards

Costs

Number of BI deployments across the enterprise

Savings


BI Standardization Impacts

Process

Standardization

• Global design, local flexibility

• Faster adoption

• Replicate best practices

Operational

Effectiveness

• Real-time visibility across the enterprise

• Better collaboration and decision making

• Speed of acquisition and integration

Growth • Timely visibility

• Accelerate change initiatives

• Take advantage of opportunities

Risk Reduction • Non-disruption – production and delivery

• International compliance

• Coherent information across the organization

IT Portfolio

Simplification

• Simpler IT architecture

• More funds for innovation

• Reduction of IT cost base

Value Drivers Areas of Impact

Customer Value

Profitability


Driving Tangible Benefits

Time spent on BI maintenance

Business user productivity

Decision making

IT spent on data integration

IT spent on BI infrastructure

Training costs

Time to market

Undesired IT systems


Delivering Remarkable Results

What did the best do?

40% Improved

Business User

Productivity

40% 50% Reduced

Training Costs Reduced IT

Spent on BI

Infrastructure

Source: Benchmarks from SAP Value Engineering and SAP customer experiences


SAP BusinessObjects

Proven Market Leadership in BI

Broadest adoption

18 million+ Crystal Reports users

3 million+ Web Intelligence users

Most complete

capabilities

Unified approach for

financial, supply chain,

and environmental GRC Vibrant partner ecosystem

7,000+ partners across major ISVs, OEMs,

resellers, and consulting

Intuitive user

experience

Designed for

untrained users

Unified

information

Consumes structured and

unstructured as well as

internal and external data,

including benchmarks

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

solution for

business users

67,000 customers =

80% of the Fortune 500

Analytic

Applications

Governance,

Risk, and

Compliance

Enterprise

Performance

Management

Business

Intelligence

Data

Warehousing

Enterprise

Information

Management


Agenda

BI Challenges

BI Standardization


Best Practices:

BI COE (BICC)


Q&A


Your BI Standardization Journey and Calls to Action

Roadmap Development – Define the way forward in the journey

As-Is Assessment – Become aware of the need for standardization

To-Be Vision – Develop the strategy and the case for standardization

1

2

3


Calls to Action

As-Is Assessment 1

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

http://smartdirectory.sap.corp:3080/Assets/asset.epx?id=b11d6ce7-30c3-436d-b4f5-c60baa61e7b9




Calls to Action

To-Be Vision 2

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


http://www.sdn.sap.com/irj/boc/bi-solution-architecture

https://portal.wdf.sap.corp/wcm/Infocenters/WS Sales and Marketing/SMW Generic/Tools and Resources/Sub Pages/Value Engineering/Tools/VLM


Calls to Action

Roadmap Development 3

BI roadmap – SAP BusinessObjects BI roadmap

Value roadmap – Prioritization and sequencing of BI initiatives

https://spotlight.pal.sap.corp/spotlight/main.jsp





BI Standardization Calculator


IT Optimization

Tangible Benefits* % Impact

• 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%

Operational Excellence


• 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%

Business Management


• 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%

Source: Benchmarks from SAP Value Engineering and SAP customer experiences

Driving Additional Benefits

SAP Value Engineering can help build your business case


Core Operating Model

Market Drivers

Strategic Drivers

Market Intelligence

informs Extended Value Net

informs

Operating Capabilities

Employees &

Employee

Behaviors

VALUES

NORMS

ARTIFACTS

SYMBOLS

evolves and informs evolves and informs

guides guides

Sustained by Motivators, Integrators & Governance Systems

Customer Value Profitability

Core Business Drivers

Systems Design,

IT & Business

Services

Orchestrating Information for Better Results

User Interfaces

Business

Intelligence

Busin

ess

Ap

plic

ation

s

Composite

Applications &

Processes

Performance

Management &

Analytics

Finance

Operations

Reporting & Analytics

Information Architecture

Information Consumers

Master

Data

Structured

Data

Unstructured

Data

Information Provisioning

Meta

data

Managem

ent

Transactions

After: Weill & Ross (2009), SAP (2011)


Agenda

BI Challenges

BI Standardization


Best Practices:

BI COE (BICC)


Q&A


4 Step BI Road to Success Approach Utilize playbooks for repeatable value-based methodology

Playbook 1

(Business

Interviews)

Playbook 2

(IT Interviews)

Playbook 3

(Assessment

& Analysis)

Playbook 4

(Recommendations)

Current BI

Needs Baseline

Analysis

BI Strategy &

Execution

Baseline Gap Analysis

BI Strategy

Foundation

Combines different sources of sales information such as quota, quota achieved, pipeline, tenure, projected close for next quarter to identify trends and potential issues.

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

Sales Variance - We need to more quickly be able to identify what is causing sales variances across product, region, LOB, etc

14






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

13

Integrates different types of information into a single view to perform trend analysis and provide a better understanding of revenue relationships.

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.

Media Performance Tracking - We need deeper insight into how our media investments across various channels are performing so we can better allocate funds.

12

EXPECTED BENEFIT /

VALUE

BUSINESS SOLUTION / BENEFIT GAP







14







13







12

EXPECTED BENEFIT /

VALUE

BUSINESS SOLUTION / BENEFIT GAPCreate 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 BI solutions to

solve the business pain

Gartner Playbooks: Interactive discovery, prioritization, and recommendations for

addressing business pains and a successful enterprise BI strategy


SAP BI Strategy Foundation Playbook

Overview

1. BI Business Needs

Identification and Gap Summary

by LOB

2. BI Strategy &

Execution Analysis 4. BI Strategy

Recommendations







14







13







12

EXPECTED BENEFIT /

VALUE








14







13







12

EXPECTED BENEFIT /

VALUE


3. Prioritized Gaps


BI Strategy Gap Analysis and Business Solution


BI Strategy Gap Analysis and BI Solution Recommendation

Architecture Example


Agenda

BI Challenges

BI Standardization


Best Practices:

BI COE (BICC)


Q&A


BI Competency Center Model Alternatives

Organizational Models

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: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007


BICC Skill Requirements

Business 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

IT Skills:

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

BICC Business, Analytics and IT Skills

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


BICC Strategy Map Example

IT Service

Management

Perspective

Learning &

Growth

Perspective

Contribution “The Business”

Internal Customer

Perspective

Competency

Financial

Perspective

Long-Term

Shareholder Value

BI Efficiency BI Effectiveness

Impact on

enterprise

outcomes

Ensure budgeting

discipline

Increase Asset

Utilization

Deliver BI services at competitive cost

Deliver consistent, high quality BI

services

Support business unit needs with BI

Drive business unit success with

innovative BI solutions

Achieve Operational

Excellence

Maintain a secure and reliable infrastructure that ensures business

operations

Manage service quality; deliver on

schedule

Optimize BI processes; lower unit

costs

Create and Support Business

Unit Partnerships

Improve business unit productivity and

profitability

Partner with business units; understand their

strategies

Develop effective decision support

systems

Provide Strategic Support to

the Business

Propose and deliver Information

Management Services

Understand emerging BI technologies

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

Provide superior BI professional services


Industry Analytic Applications


Line of Business Analytic Applications

Thank You!

Mike Watschke

Sr. Director, BI

Global Center of Excellence for BI, EIM & DW

+1 (952) 955-7466

[email protected]


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Documents

BI Standardization: Reduce TCO + Improve Usability Standardization: Reduce TCO + Improve Usability Chicago User Group - Nov. 18, 2011 Mike Watschke, Global COE for BI, EIM & DW