Critical success factors to develop and deliver a forward-looking BI strategy and roadmap

Pat Saporito, SAP
@patsaporito
Critical Success Factors to Develop and Deliver
a Forward-Looking BI Strategy and Roadmap

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1
Agenda
Business Challenges
BI Strategy Definition and Goals
SAP BI Strategy Framework and Assessment
Resources and Capabilities Needed
Wrap-up

Your Business Environment Is Changing
Elevating the Strategic Importance of Analytics
Dynamic markets driving data-driven business
 Advanced information needs becoming mainstream
 Increasing competition and rapidly changing industries
 New business models and revenue opportunities
 Pressure on margins; more demanding customers
New information sources driving data explosion
 Online interaction and cloud computing
 Social media and digital communication
 Mobile devices and location information
 Machine and sensor data
Technology innovation driving new IT
 Lower hardware cost, lower storage cost
 Faster CPU and memory
 New data storage and processing architectures

Personalized
Insights
Advanced Planning
and Forecasting
Sensing and
Responding
Predictive
Modeling
Real-Time Analysis
A Changing Relationship with Information

Technology Is Not the Problem
Between 70% to 80% of corporate business intelligence projects fail (to
meet expectations), according to research by 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.”

BI Strategy Definition and
Goals

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
“
”

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

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

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
 Create 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

Goals of an Effective BI Strategy
 Increase user satisfaction
 Avoid frustration and time wasted accessing information across multiple
systems
 Enable better business analytics, insight, and collaboration
 Deploy self-service reporting & analytics capability across the organization
 Control for predictable and consistent BI solutions
 Single point of administration
 Better project estimating
 Knowing when to use the right tools for the right job
 Save money
 Save wasteful duplication of costs for every aspect of your BI projects, also
known as “leveraging,” “reusing,” “consolidating,” and/or “rationalizing”

Addressing Customer Challenges with Effective BI
Strategies
 Business Intelligence Complexity
 End-user adoption is crucial to success of any BI initiative
 Too many different tools with steep learning curves
 Complex data models beyond the understanding of business
 User Accessibility
 Lack of self-service models
 Business needs driven by IT timelines
 Ease of use and flexibility of reporting environment to wider user community
 Flexibility to Respond to Change
 Technology cannot keep up with the speed of thought
 Data models quickly get out of sync with business models
 No “one-stop” data access to support quick response
 Information Fragmentation
 Information is locked away in application silos and heterogeneous sources
 Integrating information requires expert knowledge
 Disconnect between analytic and operational applications

SAP BI Strategy Framework
and Assessment

Enterprise Business Intelligence/Analytics
Strategy to Execution
BI Execution
Feedback to
Strategy
BI Strategy
Link and Align
Strategy to ExecutionBusiness Driven
Strategically Aligned
• Executive Business BI Sponsor
• BI Governance
• BICC and BI Team
• Information Architecture
• Technologies and Tools
• Sustained Funding
• Data Governance
• Trusted Data/Data Confidence
• User Training and Development Needs
• Increased User Adoption
• Increase BI Maturity
Plan – Communicate – Refine Execute – Monitor – Optimize
User Access & Usability
Improved Decisioning
BI Strategy
& Roadmap
Corporate
Strategy
New Data/
Capabilities
Real-Time
Analytics
Operational
Reporting
Exploration &
Visualization
Predictive
Analytics
Ad Hoc
Reporting
Corporate Data
Strategy &
Metrics

How SAP Can Help
BI Strategy Assessment
 Facilitates discovery of the current pain points
 Prioritizes and looks at the business impact of alleviating those pains
 Provides 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

BI Strategy Framework
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

Current BI Baseline
Analysis
(Business
Discovery)
BI Strategy and
Execution Baseline
Gap Analysis
BI Strategy
Recommendations
SAP’s BI Strategy Assessment
Repeatable, Value-Based Methodology
Interactive discovery, prioritization, and recommendations for addressing business
pains and creating a successful enterprise BI strategy
Create high-level
summary of BI needs
by LOB and their
expected impact if
addressed
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
Assess existence of BI
Strategy, completeness
of execution, and
impact if completed
Prioritize gaps in
existing BI needs and
non-existent or poorly
executed strategy
components
Prioritize gaps in
existing BI needs and
non-existent or poorly
executed strategy
components
Promote benefits of
addressing prioritized
gaps and map
capabilities to solve the
business pain
Promote benefits of
addressing prioritized
gaps and map
capabilities to solve the
business pain
Step 1 Step 2 Step 3 Step 4

Objective:
Create high-level summary
of BI needs by LOB and their
expected impact if addressed
Step 1 – Business Discovery
BI Strategy & Execution Baseline AnalysisCurrent BI Needs Baseline Analysis

Objective:
Assess existence of
BI Strategy definition,
completeness of execution,
and impact if completed for 5
key component areas:
 Objectives
 Business Needs
 Business Benefit
 Technology
 Organization
Step 2 – BI Strategy and Execution
BI Strategy & Execution Baseline AnalysisBI Strategy & Execution Baseline

Prioritize Gaps
Objective:
Prioritize gaps in existing BI
needs and non-existent or
poorly executed strategy
components
Step 3 – BI Strategy Gap Analysis

Strategy Recommendation
Objective:
Promote benefits of
addressing prioritized gaps
and map capabilities to solve
the business pain
Step 4 – BI Strategy Foundation

BI Strategy Facilitated Workshop
Sample Agenda
Time Title Length Topics Covered Presenter
Day 1
9:00-9:15 am Welcome & Intro 15 min.  Introductions, Objectives Customer Sponsor, SAP
9:00-9:45 am Art of the Possible 30 min.  SAP Analytics Vision – Collective
Insight
SAP
9:45-10:30 am BI Strategy, IT/BI Org
Structure, Initiatives,
Gaps/Issues
45 min.  Current BI Strategy
 Existing BI/BICC initiatives & Org
 Gaps/Issues
Customer, SAP
10:45-11:45 BI Strategy & BICC
Role/Best Practices
60 min.  BI Maturity Model
 BICC Capabilities/Org Structures,
Roles, Skills, Governance Model
 BICC Metrics, Scorecard
SAP Facilitator
12:00-1:00 pm 60 min.  Lunch
1:00-3:00 pm Business Interviews 45 min.  Current Pains
 Key Analytic-Related Initiatives
SAP Facilitator
3:00-4:00 IT Interview 60 min.  Current Pains
 Current BICC Capabilities
SAP Facilitator
Day 2
9:00-10:00 am Preliminary Gap
Assessment
60 min.  Review and discuss initial findings
from Day 1
SAP Facilitator
10:15-11:15 am Next Steps 60 min.  Discuss next steps (org structure,
priorities, resources, etc.)
SAP Facilitator,
Customer

Resources and Capabilities
Needed

Rx for BI Success:
BI Strategy + BI Center of Excellence (COE)
Understand Business Pains
Identify technology gaps
Focus on change management and
adoption
BI Strategy creates an information driven culture
The BI COE provides a sustainable framework to
execute the strategy and maintain it

BI Center of Excellence (BI COE)
Also Called a BI Competency Center (BICC)
Cross-functional team with specific tasks, roles, responsibilities, and processes for
supporting and promoting the effective use of Business Intelligence across the
organization (Source: Gartner)
It has a permanent, formal organizational structure but is dynamic and evolves to
meet business needs
The BI COE acts as a center of expertise for BI; it drives and supports BI use
through the enterprise, including:
 People (Developers and Users)
 Knowledge and Business Processes
 Culture
 Technology and Infrastructure
The BI COE enables the organization to coordinate and complement existing efforts
in BI, reducing redundancies and increasing effectiveness. It is to increase user
satisfaction and adoption.

Critical Success Factor: Executive Sponsor
Sponsor Role
 The Executive Sponsor “leads the
charge” at the senior management
level for analytics, as well as its
funding and its perceived business
value across the enterprise
 The sponsor makes sure BI and
Analytics have executive visibility
and support, including funding
 Candidates: Chief Analytics Officer,
CEO, SVP – Strategy
Supporting Your Sponsor
• You may need to coach your
Executive Sponsor and let him/her
know the role and what you need
• Make sure it’s not just a titular role;
give regular feedback
• Continuous two-way communication
is key
• Find success stories (internal or
external, customer or competition)
that will provide the ammunition to
make analytics visible and valued!

BI Competency Center (BICC)
 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
 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
 Analytical Skills
– Fluency with key analytic applications
– Researching business problems and creating
models that help analyze these business
problems
Business Skills
Business Needs
Organization and
Processes
Governance,
Administration
Tools, Infrastructure,
Applications, Data
IT
Skills
Business Needs
Statistical and
Process Skills
Analytic
Skills
BICC
Establish
Standards
Control
Funding
Define
BI Vision
Manage
Programs
Build
Technology
Blueprint
Develop
User Skills Organize
Methodology
Leadership
BICC Business, Analytics, and IT Skills

BICC and BI Development Alignment
Development of
BI Governance
Structure
Development
of Effective
BI Strategy
Implementation of
BI Competency
Center
Alignment
with IT Center of
Excellence
• Identified Key Stakeholders
• Identified Corporate
Strategy as it aligns with
business needs
• Identified Business and
Business Unit Priorities
• Confirmed Architecture
• Identified Data Sources
• Alignment with BI BICC
priorities
• Confirmation of internal
capability
• Identified impacted
business processes
• Corporate IT BICC alignment
with BICC
• Identification of BI Strategic,
Program, Analytical, and
Technical skills
• Identification of overlapping
Business priorities
• Identification of Architectural
scope, overlap, etc.
• Identification of data scope,
overlap, legacy systems, etc.
• Confirmation of deployment
capability
• Deployment of BI toolset by
project type
• Confirmed Executive Steering
Committee
• Buy-in and involvement from all
impacted stakeholders
• Identified and agreed priorities
• Defined and agreed accountability
• Defined and agreed roles and
responsibilities
• Defined and agreed guidance,
standards, and templates
• Identified BI toolsets
• Defined toolset capability by
project type
Operationalize
• Defined business priorities
• Defined reporting needs
• Defined KPIs and supporting metrics
• Defined architecture
• Defined data needs
• Defined solutions and methodologies
• Confirmed capabilities
• Confirmed project priorities
• Confirmed project management
process
• Confirmed project roll-out process
• Confirmed guidance, standards, and
templates
BI Center of
Excellence

Level 4
Level 3
Level 2
Level 1
Information
and
Analytics
Requirements are
driven from a
limited executive
group
KPIs and analytics
are identified, but
not well used
KPIs and analytics
are identified and
effectively used
KPIs and analytics
are used to manage
the full value chain
Governance
Standards
and
Processes
Application
Architecture
IT-driven BI
governance
Business-driven BI
governance
evolving
Business governance
with Competency
Center developing
Enterprise-wide BI
governance with
business leadership
Do not exist or are
not uniform
Exist and are not
uniform
Uniform, followed
and audited
BI “silos” for each
business
Some shared BI
applications
Consolidating and
upgrading
Robust and flexible
BI architecture
Evolving effort to
formalize
Information
Chaos
Information
Oversight
Information
Democracy
Information
Empowerment
BI/Analytics Maturity Model
A Measure of BICC Stages of Excellence

Executive Steering Group
Functional Working Group
Business Intelligence
Team
Individual Contributors
• Organizational commitment
• Allocates funding
• Manages/accepts risks
• Directs and ratifies direction
• Makes recommendations
• Manages operational effectiveness
• Directs strategy
• Provides operational support
• Manages information assets
• Supports user community
• Consults to governance body
• Champions change
• Provides input on direction
• Operational status
• Project pipeline
• Issues and risks
• Management review
• Funding
• Operational direction
• Executive support
• Project pipeline
• Sets priorities
• Implements policy
• Champions
change
• Provides input
• Champions
change
• Provides input
• Seeks input
• Manages issues and
risks
• Sets priorities
• Implements policy
• Reviews status
• Reports ROI
• Makes recommendations • Sets policy
• Sets priorities
• Accepts risk
• Sets direction
Baseline BI Governance Model

Data and Analytics Roadmap Example
Cost
impact/benefits
from SAP VE
Initiate
governance
structure
definition
Phase 1 Phase 2
GovernancePeople & SkillsStandards & Processes
UseCaseInformation
Architecture
Governance
Structure
defined and
roles filled
Security &
Authorization
process
standardized
Review existing
database platform
Finalize Technical, Data
Architecture & BI Tools
Architecture deployment
initiated
Data &
Analytics
Roadmap
defined
Training on
Standards &
Governance
Review
Training
Options &
Learning Hub
Establish BI
Master Data &
Analytics Tools
Standards
Measure BI
User Adoption
On-going
training &
documentation
Phase 3
Enterprise BI/
Analytics
Architecture
Integrated
Information
Architecture
and Self
Service
Analytics
Drives
Business
Analytics/BI
COE started
BI/Analytics
COE is fully
operational
2017
2014
Define ETL
Rules to
support
Master Data
BI Tools
Identification
& Adoption
Maturity Level
Enhanced ad hoc
capability
Incorporate key existing
use cases into EDW
for consolidated view
of the data
Define additional
Business Use Cases
(TBD)
Review BI & Data
Architecture including
health check
Each phase is
6-12 months
Levels 1-2 Level 4 Level 5Level 3

BICC Strategy Map and Balanced Scorecard
Should Represent a Complete Program of Action
Strategy Map
Theme: Improve Decision Making Objective
• Reduce BI
Infrastructure Costs
• Reduce Labor Costs
of BI resources
Financial Lower BI
TCO
Standardize
on BI Tools
• Provide efficient &
easier access to info
• Provide latest BI SW
functionality –
capabilities
Increase
Productivity of
Knowledge
Workers
Support
IT Service
Management
• Develop the necessary
BI skills
• Develop lab
environment for
innovation
Learning
Knowledge
Management
Repository
Communicate
R&D BI Lab
Reduce
License
Fees
Provide cost-
effective
Innovative BI
Solutions
Training
Internal
Customers
• Improve 1st time
incident resolution
• Develop Online
Training Programs
• Improve tracking of
BI support incidents
• Reduce number of
Help Desk intake
channels
Gain efficiency
through process
improvement
Balanced Scorecard
Measurement Target
• # of BI environments
• Annual BI Tool
maintenance &
support fees
• One
• < $75k
• End-User Satisfaction
Survey
• # of Self-Service
Knowledge Workers
• # of BI Services
available
• % of 1st time incident
resolutions
• Time to resolve BI
incidents
• # of online BI training
courses
• # of Help Desk intake
channels
Measure
• # of repository
entries
• Avg. Rating of entry
• Availability of BI lab
configuration
• 50 per
month
• 4 out of 5
• 95.999%
• 60%
• 4 hours
• 10 intro, 5
advanced
• (2) – 800#,
Online
entry
• 85%
Favorable
• 250
• 15
Services
Action Plan
Initiative Budget
• Online User
Survey Project
• BOE Upgrade
• $5k
• $350k
• BI-specific
Education
Program
• BI Incident
Management
improvement
Program
• Service Desk
Reengineering
Program
• $150k
• $150k
• $200k
• Repository
incentive program
• Configure BOE
Lab environment
• $50k
• $100k
Execute
• BI Tool
Consolidation
Project
• Coterminous SW
License
negotiations
• $150k
• 1 FTE
Supply
Mgt (80
hrs.)

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

BI Strategy/BICC Best Practices Summary
 Assess your BI maturity
 Define your desired future state
 Establish a BICC/evolve your existing BICC
 Ensure you have an executive business sponsor
 Define and communicate your roadmap
 Measure and communicate successes
 Do not underestimate culture and change management effort
needed
Communicate – Communicate – Communicate!

Additional SAP BI Strategy Support Capabilities
 BI Strategy Best Practices Workshop
 BI Strategy Assessment and Workshop
 BI Maturity Model and BI Benchmarks
 Data Governance Best Practices Workshop
 Strategic Advisory Services
 ASUG/Business Objects User Groups

Next Steps
www.sapbusinessobjectsbi.com/bi-strategy/
• Download the BI Strategy E-Book
• Take the BI Strategy Self Assessment
• Take the BICC Survey
www.sapbusinessobjectsbi.com/wp-
content/themes/sapbi/library/images/bistrategy/BI%20
Strategy.pdf

Self-Service Online Assessment
www.sap.com/bistrategy
A self-service online assessment tool that will help you identify business challenges
across your organization

SAP BI Success Website
www.sapbusinessobjectsbi.com/

Where to Find More Information
Patricia L. Saporito, Applied Insurance Analytics: A Framework for Driving
More Value from Data Assets, Technologies, and Tools (Pearson FT Press; 1
edition, 2014).

7 Key Points to Take Home
Data-driven companies are more successful than their peers
A solid BI strategy addresses the information needs of your entire organization
Both IT and the Business benefit directly from a well-developed BI strategy
High-level executive support is one of the key reasons for BI program success
People are the “KEY” for any BI program
Establishing a Business Intelligence Competency Center (BICC) is crucial for the
effective implementation of a BI strategy
SAP has developed a repeatable framework to help customers effectively develop and
execute custom-designed BI strategies tailored to the unique needs of their
organization. Take your first step with the SAP BI Strategy Self Assessment.

© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
Pat Saporito
Global Center of Excellence for Analytics
+1 (201) 681-9671
Pat.Saporito@sap.com
Twitter: @pat.saporito
More Resources:
BICC Blog Series Analytics from SAP

Critical success factors to develop and deliver a forward-looking BI strategy and roadmap

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