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

Agenda

 The Importance of a BI Strategy

 How SAP Can Help in Defining Your BI Strategy

 Best Practices

 Next Steps

© 2012 SAP AG. All rights reserved. 2

The Importance of a BI Strategy

Competitive Edge Is Gained with Analytics

High performing companies are 50% more likely
to use analytic information strategically High Performers

Low Performers

Have significant decision- 65%
support/analytical capabilities
23%

Value Analytical insights to a 36%
very large extent
8%

Have above average analytical 77%
capability within industry 33%

Use analytics across their 40%
entire organization
23%

Source: Competing on Analytics, Thomas Davenport

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

”


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

Where are we?  What business decisions are we not have sufficient information
 What business decisions domade with insufficient information? to make?
BI Strategy Provides Answers

Where do we
 What our vision for information accessibility and usage?
 What is is our vision for information accessibility and usage?
want (need) to
 What should the high-level BI roadmap of of initiatives look
 What should the high-level BI roadmapinitiatives look like? like?
be?

What
 What capabilities are required make information available and useful?
 What capabilities are required to to make information available and useful?
capabilities will
 What are the dependencies?
 What are the dependencies?
get us there?

 What metrics should we use to manage the implementation and fulfill BI business goals?
How do we
 How should we design the processes, applications, and organization to fulfill our BI vision?
execute?
 What toolsets should I use to fulfill our BI vision?


All Organizations Need a BI Strategy

How does a BI strategy benefit IT? How does a BI strategy benefit a LOB?

 Help align with business partners, formalize  Have departmental spend go further and
business needs contribute to enterprise investments required

 Create prioritized roadmap for the enterprise of  A departmental BI need often involves needing
short-, medium- and long-term projects aligned data from other groups. Solve the departmental
with strategic business goals delivering pain points by removing limits of a departmental
measurable results focus through an enterprise-wide strategy.

 Creating business justification for an enterprise  An enterprise BI approach provides a unified
scope and end-to-end BI including data approach by all departments allowing everyone
management to “speak the same language”


How SAP Can Help in Defining Your BI Strategy

How We Can Help

Easy-to-use methodology to help guide
through a strategic discussion for BI strategy
and solution formulation within an enterprise-
wide scope:

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


Road to BI Success Approach
Repeatable Value-Based Methodology

Interactive discovery, prioritization, and recommendations for addressing business pains and
a successful enterprise BI strategy

Current BI BI Strategy &
Execution BI Strategy
Needs Baseline Gap Analysis
Baseline Foundation
Analysis

Step 1 Step 2 Step 3 Step 4

Create high level Assess existence of BI Prioritize Gaps of With prioritized gaps,
summary of BI needs Strategy, existing BI needs, and promote the benefits of
by LOB, and their completeness of non-existent or poorly- addressing the gaps,
expected impact if execution, and impact executed strategy and map capabilities to
addressed if completed components solvethe business pain


SAP BI Assessment Overview

BI Strategy
Needs Baseline Execution Gap Analysis
Foundation
Analysis Baseline

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

BI Business & Execution Baselineand Gap
BI Strategy Needs Identification Analysis
Summary by LOB

Objective:
Create high-level summary
of BI needs by LOB, and
their expected impact if
addressed



BI Strategy
Foundation
Analysis Baseline



BI Strategy & Execution Baseline Analysis

Information
Background and Organization and
BI Needs Benefits Structure and
Objectives Implementation
Technology
Background and Summary of BI Value Proposition of Information Governance
Purpose Needs BI Categories Structure
Expected Benefits –
Current State and Envisioned To-Be Architecture and Program
Future State KPI
History State Standards Management
Levels
BI Objectives and Priorities and Roadmap and
Business Case BI Applications
Scope Alignment Milestones

Measurement

Education/Training

Support

Additional Consulting Services Available

Additional Capabilities available through SAP Value Engineering



BI Strategy
Foundation
Analysis Baseline




1. BI Business Needs Identification 3. Prioritized Gaps
and Gap Summary by LOB

2. BI Strategy & 4. BI Strategy Recommendation
Execution Analysis
GAP BUSINESS SOLUTION / BENEFIT EXPECTED
BENEFIT /
VALUE
12 Media Performance Determine what metrics are needed to Integrates different types
Tracking - We need demonstrate media performance of information into a
deeper insight into how Determine who needs the information, and in single view to perform
our media investments what form. trend analysis and
across various channels Automate the delivery of the information provide a better
are performing so we can required to all who need it. understanding of revenue
better allocate funds. Integrate data sources if needed. relationships.

13 Sales Performance  Determine the causes of sales reductions Combines different
Management - We need (bottlenecks in sales process), and the sources of sales
deeper insight into sales appropriate information/KPIs to track information such as
performance, to be able  Integrate multiple sources (if necessary). quota, quota achieved,
to understand where  Determine who needs what information pipeline, tenure,
we're getting traction, and in what form projected close for next
where we're not, and why  Automate the delivery of the information quarter to identify trends
so adjustments can be and potential issues.
made

14 Sales Variance - We need  Determine the causes of sales reductions Combines different
to more quickly be able to (bottlenecks in sales process), and the sources of sales
identify what is causing appropriate information/KPIs to track information such as
sales variances across  Integrate multiple sources (if necessary). quota, quota achieved,
product, region, LOB, etc  Determine who needs what information pipeline, tenure,
and in what form projected close for next
 Automate the delivery of the information quarter to identify trends
and potential issues.


SAP BI Assessment

BI Assessment in action!


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

BI Strategy & Execution Framework

Information
Background and Organization and
BI Needs Benefits Structure and
Objectives Implementation
Technology
Background and Summary of BI Value Proposition of Information Governance
Purpose Needs BI Categories Structure
Expected Benefits –
Current State and Envisioned To-Be Architecture and Program
Future State KPI
History State Standards Management
Levels
BI Objectives and Priorities and Roadmap and
Business Case BI Applications
Scope Alignment Milestones
Measurement

Education / Training

Support

Additional Consulting Services Available

Additional Capabilities available through SAP Value Engineering


Significant Benefits Enabled by Standardized BI Platform

Business Management Operational Excellence Information Technology

Tangible Benefits* % Impact Tangible Benefits* % Impact Tangible Benefits* % Impact

Operating Cost Operating Cost Operating Cost
 Improve Decision Making 10 – 15%  Improve Business User 30 – 40%  Reduce IT Spend Dedicated 30 – 50%
Through Better Information Productivity by Reducing Time to Maintenance of BI
Availability Across Spent on BI Training Infrastructure (Hardware
Enterprise and Software)
 Reduce Training Costs 30 – 40% 30 – 40%
 Reduce Time-to-Market for Related to Multiple Systems  Reduce Time Spent By IT
New Product/Service 10 – 15% Staff Maintaining Multiple BI
Launches Systems
 Improve Efficiency of 30 – 40%
Business Staff by Gaining
 Improve Success Rate of Expertise on Single BI  Achieve Cost Benefits 50 – 70%
Products and Services 5 – 7% Platform Through Undesired System
Across Locations and Units Retirement – One Time
Through “Single Version of 10 – 15%  Reduce Enterprise-wide IT
 Reduce Help Desk Support to 30 – 50%
Truth” Spent On Data Integration
Address BI Queries
20 – 30%  Reduce Enterprise-wide IT
Spent on Data Quality 30 – 50%
 Reduce Time Spent By
Business Staff Compiling Resulting From
Information from Multiple Consolidation from Multiple
Systems Data-Marts and Sources
Source: Benchmarks from SAP Value Engineering and SAP customer experiences


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

CIO .…
Finance Sales

Department BICC ICC

BICC

BICC as Part of Operations Distributed BICC

COO Corporate

Division 1 Division 2 Division 3
BICC

Division 1 Division 2 Division 3

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

4.0

2.8
2.6

No BICC BICC Certified BICC

Organizations with a BICC require fewer support FTEs than those without a
BICC


Best Practice Example:
BICC Business, Analytics and IT Skills

Business
Skills

Business Needs

Organization and
Processes

Define Control
BI Vision Funding
Manage Establish
Programs Standards
BICC
Develop Build Technology
User Skills Blueprint
Organize
Methodology
Business Needs Leadership Governance,
Administration
Statistical and Tools, Infrastructure,
Process Skills Applications, Data

Analytic IT
Skills Skills



BICC Metrics
Selected KPIs for Return and Operational Performance


BI Strategy Best Practices Summary

 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


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


Thank You!

Deepa Sankar Pat Saporito

BI Solution Marketing Global CoE for BI

Deepa.sankar@sap.com Pat.saporito@sap.com
+1 (201) 681-9671

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

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