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

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http://spr.ly/SBOUC_VP - The key to a successful analytics program is to have the right strategy in place. An effective approach benefits both IT and the core business alike. A solid, …

http://spr.ly/SBOUC_VP - The key to a successful analytics program is to have the right strategy in place. An effective approach benefits both IT and the core business alike. A solid, well-communicated business intelligence strategy is more than just a good idea. It’s crucial to maximizing ROI, reaching KPIs, and identifying metrics that actually mean something. Take the next step in your journey to a solid BI strategy.

Presenters: Deepa Sankar & Pat Saporito, SAP

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  • 1. Build a Rock-solid Analytics and BI StrategyLearn how to reach the highest levels of BI competencyDeepa Sankar, BI Solution MarketingPat Saporito, Global CoE for BI
  • 2. 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
  • 3. The Importance of a BI Strategy
  • 4. 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 © 2012 SAP AG. All rights reserved. 4
  • 5. BI Strategy – Do you have one?Signs that you don’t:The BI Strategy consists of a BI architecture slideIT is asking the business what reports they needStep one is building a data warehouseThere are no metrics defined to measure progress© 2012 SAP AG. All rights reserved. 5
  • 6. 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 ”© 2012 SAP AG. All rights reserved. 6
  • 7. 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? © 2012 SAP AG. All rights reserved. 7
  • 8. 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”© 2012 SAP AG. All rights reserved. 8
  • 9. How SAP Can Help in Defining Your BI Strategy
  • 10. How We Can HelpEasy-to-use methodology to help guidethrough a strategic discussion for BI strategyand 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© 2012 SAP AG. All rights reserved. 10
  • 11. Road to BI Success ApproachRepeatable Value-Based MethodologyInteractive 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 © 2012 SAP AG. All rights reserved. 11
  • 12. SAP BI Assessment Overview Current BI BI Strategy & BI Strategy Needs Baseline Execution Gap Analysis Foundation Analysis Baseline Playbook 1 Playbook 2 Playbook 3 Playbook 4© 2012 SAP AG. All rights reserved. 12
  • 13. Assess Challenges across the OrganizationIdentify business needs across lines of business (LOB)SalesMarketingFinanceOperationsSupply Chain ManagementHRITRole-based business pains tableRate the degree to which the LOB feels this painThe impact each of those pains have on the LOB and/or the entire businessRate the magnitude of the effect of these pains © 2012 SAP AG. All rights reserved. 13
  • 14. 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© 2012 SAP AG. All rights reserved. 14
  • 15. SAP BI Assessment Overview Current BI BI Strategy & BI Strategy Needs Baseline Execution Gap Analysis Foundation Analysis Baseline Playbook 1 Playbook 2 Playbook 3 Playbook 4© 2012 SAP AG. All rights reserved. 15
  • 16. 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 SupportAdditional Consulting Services AvailableAdditional Capabilities available through SAP Value Engineering © 2012 SAP AG. All rights reserved. 16
  • 17. SAP BI Assessment Overview Current BI BI Strategy & BI Strategy Needs Baseline Execution Gap Analysis Foundation Analysis Baseline Playbook 1 Playbook 2 Playbook 3 Playbook 4© 2012 SAP AG. All rights reserved. 17
  • 18. SAP BI Assessment Overview 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, were getting traction, and in what form projected close for next where were 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.© 2012 SAP AG. All rights reserved. 18
  • 19. SAP BI Assessment BI Assessment in action!© 2012 SAP AG. All rights reserved. 19
  • 20. Self-service Online Assessment A self-service online assessment tool that will help you identify business challenges across your organization© 2012 SAP AG. All rights reserved. 20
  • 21. 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© 2012 SAP AG. All rights reserved. 21
  • 22. Customized Assessment Report A customized PDF assessment report identifying areas of focus and suggested next steps© 2012 SAP AG. All rights reserved. 22
  • 23. Best Practices
  • 24. BI Strategy & Execution Framework InformationBackground and Organization and BI Needs Benefits Structure and Objectives Implementation TechnologyBackground 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 LevelsBI 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© 2012 SAP AG. All rights reserved. 24
  • 25. Prioritized, Business Driven Needs© 2012 SAP AG. All rights reserved. 25 25
  • 26. Significant Benefits Enabled by Standardized BI Platform Business Management Operational Excellence Information TechnologyTangible Benefits* % Impact Tangible Benefits* % Impact Tangible Benefits* % ImpactOperating 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 SourcesSource: Benchmarks from SAP Value Engineering and SAP customer experiences © 2012 SAP AG. All rights reserved. 26
  • 27. Capabilities Assessment© 2012 SAP AG. All rights reserved. 27 27
  • 28. 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 2007Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007 © 2012 SAP AG. All rights reserved. 28
  • 29. BICC EffectivenessOrganizations 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© 2012 SAP AG. All rights reserved. 29
  • 30. 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 Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007 © 2012 SAP AG. All rights reserved. 30
  • 31. BICC MetricsSelected KPIs for Return and Operational Performance© 2012 SAP AG. All rights reserved. 31
  • 32. 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 CenterSource: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007 © 2012 SAP AG. All rights reserved. 32
  • 33. Next Steps1. Take the BI Self Assessment, www.sap.com/bistrategy2. For more details on BICC, http://scn.sap.com/docs/DOC-186783. Contact your account executive to explore your potential savings with the SAP BI Standardization Cost Calculator © 2012 SAP AG. All rights reserved. 33
  • 34. 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

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