How to Build a Rock-Solid Analytics and Business Intelligence Strategy

Build a Rock-solid Analytics and BI Strategy Learn how to reach the highest levels of BI competency

Deepa Sankar, BI Solution Marketing

Pat Saporito, Global CoE for BI

© 2012 SAP AG. All rights reserved. 2

Agenda

The Importance of a BI Strategy

How SAP Can Help in Defining Your BI Strategy

Best Practices

Next Steps

The Importance of a BI Strategy


Competitive Edge Is Gained with Analytics

Source: Competing on Analytics, Thomas Davenport

Low Performers

High Performers

77%

40%

36%

65%

33%

23%

8%

23%

Have significant decision-

support/analytical capabilities

Value Analytical insights to a

very large extent

Have above average analytical

capability within industry

Use analytics across their

entire organization

High performing companies are 50% more likely

to use analytic information strategically


BI Strategy – Do you have one?

Signs that you don’t:

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


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

“

”


What business decisions do we not have sufficient information to make?

What is our vision for information accessibility and usage?

What should the high-level BI roadmap of initiatives look like?

What capabilities are required to make information available and useful?

What are the dependencies?

BI Strategy – Do You Have One? Questions Typically Answered by a BI Strategy

What business decisions are made with insufficient information?

What metrics should we use to manage the implementation and fulfill BI business goals?

How should we design the processes, applications, and organization to fulfill our BI vision?

What toolsets should I use to fulfill our BI vision?

What is our vision for information accessibility and usage?

What should the high-level BI roadmap of initiatives look like?

What capabilities are required to make information available and useful?

What are the dependencies?

BI

Str

ate

gy P

rovid

es A

nsw

ers

Where are we?

Where do we

want (need) to

be?

What

capabilities will

get us there?

How do we

execute?


All 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?

How SAP Can Help in Defining Your BI Strategy


How We Can Help

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 to move forward with BI solution and strategy development with presales,

Business Transformation Consulting and/or Value Engineering

Easy-to-use methodology to help guide

through a strategic discussion for BI strategy

and solution formulation within an enterprise-

wide scope:


Road to BI Success Approach Repeatable Value-Based Methodology

Step 1 Step 2 Step 3 Step 4

Current BI

Needs Baseline

Analysis

BI Strategy &

Execution

Baseline Gap Analysis

BI Strategy

Foundation

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

solvethe business pain

Interactive discovery, prioritization, and recommendations for addressing business pains and

a successful enterprise BI strategy


SAP BI Assessment Overview

Current BI

Needs Baseline

Analysis

BI Strategy &

Execution

Baseline

Gap Analysis BI Strategy

Foundation

Playbook 1 Playbook 2 Playbook 3 Playbook 4


Assess Challenges across the Organization

Identify business needs across lines of business (LOB)

Sales

Marketing

Finance

Operations

Supply Chain Management

HR

IT

Role-based business pains table

Rate the degree to which the LOB feels this pain

The impact each of those pains have on the LOB and/or the entire business

Rate the magnitude of the effect of these pains


Current BI Needs Baseline Analysis

Objective:

Create high-level summary

of BI needs by LOB, and

their expected impact if

addressed

BI Strategy & Execution Baseline Analysis BI Business Needs Identification and Gap

Summary by LOB



Current BI

Needs Baseline

Analysis

BI Strategy &

Execution

Baseline


Foundation



BI Strategy & Execution Baseline Analysis

Background and

Objectives BI Needs Benefits

Information

Structure and

Technology

Organization and

Implementation

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

Levels

Architecture and

Standards

Program

Management

BI Objectives and

Scope

Priorities and

Alignment Business Case BI Applications

Roadmap and

Milestones

Measurement

Education/Training

Support

Additional Consulting Services Available

Additional Capabilities available through SAP Value Engineering



Current BI

Needs Baseline

Analysis

BI Strategy &

Execution

Baseline


Foundation




1. BI Business Needs Identification

and Gap Summary by LOB

2. BI Strategy &

Execution Analysis 4. BI Strategy Recommendation

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






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

3. Prioritized Gaps


BI Assessment in action!

SAP BI Assessment


Self-service Online Assessment

A self-service online assessment tool that will help you identify business

challenges across your organization


Self-service Online Assessment Questionnaire

A comprehensive list of business challenges and the impact of addressing

those are available to you for an interactive conversation with your

business stakeholders


Customized Assessment Report

A customized PDF assessment report identifying areas of focus and

suggested next steps

Best Practices


BI Strategy & Execution Framework

Background and

Objectives BI Needs Benefits

Information

Structure and

Technology

Organization and

Implementation

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

Levels

Architecture and

Standards

Program

Management

BI Objectives and

Scope

Priorities and

Alignment Business Case BI Applications

Roadmap and

Milestones

Measurement

Education / Training

Support

Additional Consulting Services Available

Additional Capabilities available through SAP Value Engineering

© 2012 SAP AG. All rights reserved. 25 25

Prioritized, Business Driven Needs


Operational Excellence Information Technology

Tangible Benefits* % Impact

Operating Cost

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%


Operating Cost

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


Operating Cost

Improve Decision Making

Through Better Information

Availability Across

Enterprise

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

Significant Benefits Enabled by Standardized BI Platform

© 2012 SAP AG. All rights reserved. 27 27

Capabilities Assessment


Best Practice Example:

BI Competency Center Models

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



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


Best Practice Example:

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 Metrics

Selected KPIs for Return and Operational Performance

© 2012 SAP AG. All rights reserved. 32 Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007

Find a high level executive sponsor

Define & Prioritize Business Needs

Gap Assessment of Current vs. Future Capabilities Needed

Build Capabilities Needed Using a Roadmap

Operationalize with a BI Competency Center

BI Strategy Best Practices Summary


Next Steps

1. Take the BI Self Assessment, www.sap.com/bistrategy

2. For more details on BICC, http://scn.sap.com/docs/DOC-18678

3. Contact your account executive to explore your potential savings with the

SAP BI Standardization Cost Calculator

http://www.sap.com/bistrategy

http://scn.sap.com/docs/DOC-18678




Thank You!

Pat Saporito

Global CoE for BI

[email protected]

+1 (201) 681-9671

Deepa Sankar

BI Solution Marketing

[email protected]

mailto:[email protected]