Business Intelligence Competency Centers Australia


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Business Intelligence Competency Center (BICC) presentation for Mastering BusinessObjects 2009, Sydney

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Business Intelligence Competency Centers Australia

  1. 1. SAP BusinessObjects BI Competency Centers People + Information = Intelligence Timo Elliott, Senior Director, Strategic Marketing May 2009
  2. 2. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 2
  3. 3. What is Business Intelligence? Pragmatic Access to Widespread Information ERP Cloud Data Data Warehouse Marketing HR Budgeting Text Text Spreadsheets Text Text Text © SAP 2009 / Page 3
  4. 4. Best of Both Worlds Data warehousing and a BI Platform Data View People View Integrated Integrate on the fly Consistent Flexible Predefined extractors Access any information Predefined business content Self-service and customizable Driven by Data Architecture + Driven by Business Need © SAP 2009 / Page 4
  5. 5. BI Competency Center The Business Intelligence Competency Center joins the skills, resources and experience of both Business and IT to achieve the common goal of the enterprise: fast, accurate business intelligence. It is a cross-functional team with specific tasks, roles, responsibilities, and processes for supporting and promoting the effective use of Business Intelligence across the organization. © SAP 2009 / Page 5
  6. 6. Business Intelligence Maturity Levels BI competency centers are an essential step towards more strategic use of information throughout in the organization Strategic BI Integrated BI Enterprise BI Strategy to Execution Departmental BI Standard Platform and Shared Services Multiple BI tools Shadow IT © SAP 2009 / Page 6
  7. 7. Today’s Typical Reality: Informal, Ad-hoc Cooperation User User The “informal BICC” Power User User User User Power User Master Power Business User Unit 2 Technical Systems/ Architecture team Data Warehousing / ETL Master Power User Power Business Corporate IT User Unit 1 Power User User User User User User © SAP 2009 / Page 7
  8. 8. Benefits of a BICC Save money  Gartner: “companies resisting the need to consolidate BI tools… will incur 50 percent more cost for each redundant tool”.  META Group: “BI…must be subjected to the same standardization processes used for other technologies widely deployed throughout the organization (e.g., productivity tools, workgroup databases, corporate databases, web servers, browsers).” © SAP 2009 / Page 8
  9. 9. BI Standardization Calculator © SAP 2009 / Page 9
  10. 10. Benefits of a BICC Increase business satisfaction  Avoid frustration and time wasted accessing information across multiple systems  Enable better business insight and collaboration  Supports transversal initiatives such as sustainability  Gartner: “A strategic approach to BI can pay handsome dividends to enterprises that exploit it properly” Flexibility and control  Provide a stable information and reporting interface, even when underlying systems aren’t  Compliance, consistency, quality, administration © SAP 2009 / Page 10
  11. 11. BI Software Usage is More Common in Companies with A BICC © SAP 2009 / Page 11 Source: BARC, Organization of Business Intelligence, 2008
  12. 12. A BICC Results in a Higher Level of BI Usage Across All Departments © SAP 2009 / Page 12 Source: BARC, Organization of Business Intelligence, 2008
  13. 13. BICCs Improve the Quality of BI Initiatives © SAP 2009 / Page 13 Source: BARC, Organization of Business Intelligence, 2008
  14. 14. BICCs Improve Cooperation And Support © SAP 2009 / Page 14 Source: BARC, Organization of Business Intelligence, 2008
  15. 15. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 15
  16. 16. “Real knowledge is to know the extent of one's ignorance.” Confucius © SAP 2009 / Page 16
  17. 17. BICC Skills Business Skills • Link to business strategy • Define priorities Business Needs Communication • Lead organizational/process change Governance Skills Skills • Define BI vision • Control funding Organization and • Manage programs Processes • Establish standards • Develop user skills BI CC BICC • • Build technology blueprint Tools and • Develop business rules • Organize methodology leadership Applications • Identify data • Have adaptable infrastructure Analytic • Extract data IT Skills • Discover and explore Skills Data Integration and • Maintain data quality Management Data Source: Gartner Skills © SAP 2009 / Page 17
  18. 18. BICC Reporting And Funding CEO / COO CFO CIO  Reports to the core  Reports to the finance  Report to the CIO business in a function  Or “strategic collaborative  Requires awareness information officer” environment OR that management OR  Requires good links  Or to largest business information is about with the business unit more than costs and  Beware of “technical revenues comfort zone” Funding  Cross-charging provides a “virtual P&L” but can punish good behavior (only 1 in 5 BICCs charge a functional area)  It’s about what incentives you want to put in place, not the “real costs” — promote use of standard solutions © SAP 2009 / Page 18
  19. 19. BICC Organization Highly Dependent on Corporate Culture Corp Finance Sales ... Div1 Div2 Div3 BICC Advantages of Virtual  No extra expense  Less danger of self-serving bureaucracy CIO Advantages of Real  Full time Dept BICC ICC  Goals aligned with the organization  Economies of scale / specialization  More likely to be strategic, more likely to succeed © SAP 2009 / Page 19
  20. 20. Distributed Functions and Links to Other Teams CEO Operations Central Team Finance Offshore e.g. Links to other DW, Project ETL, Centers ERP, Teams etc. © SAP 2009 / Page 20
  21. 21. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 21
  22. 22. The possession of facts is knowledge, the use of them is wisdom Thomas Jefferson © SAP 2009 / Page 22
  23. 23. Functional Areas of the BICC Executive sponsor Vendor Data Management Acquisition Business Data Support Text Intelligence Stewardship Program Training BI Delivery Advanced Analytics Business Intelligence Competency Center © SAP 2009 / Page 23
  24. 24. Business Intelligence Program Create and monitor overall BI strategy  Establish overall vision for leveraging the organization’s information assets  Sets business improvement strategy, set targets and track success  Manage organizational change  Determine and standardize information sources  Enable collection and consolidation Gather and share knowledge  Give advice and coaching to business users on how to use BI and interpret results  Keep track of new trends and technologies and map them to the organizations needs  Define information audiences and information access rights  Define best-practice infrastructure, methodologies, and standards  Establish and maintain a corporate knowledge base Run BICC  Business planning for the BICC aligned with organization’s strategic and operational goals  Promote use of the BICC and its services within the organization  Define and monitor BICC-related KPIs  Recruit and train staff  Establish billing processes (if appropriate) © SAP 2009 / Page 24
  25. 25. Data Acquisition and Data Stewardship Data Acquisition: Extract and transform data  Create interfaces to source systems  Standardize rules and jobs for data extraction  Monitor performance and optimization  Create data integration processes  Strengthen the role and use of metadata  Establish common data definitions across the organization: “one version of the truth” Data Stewardship: Trusted, tracked information  Accurate, consolidated information  Agree on data definitions and standards  Establish definition verification program  Define reconciliation processes  Define metadata and business rules  Conduct data quality improvements  Enable impact analysis and data tracking  Ensure communication to and participation of all parties © SAP 2009 / Page 25
  26. 26. BI Delivery Execute projects  Carry out infrastructure maintenance  Track change requests and new projects  Gather user requirements and feedback  Execute project management, including technical change management  Establish development, testing, and promotion processes  Collaborate with IT functions Document and evolve best practice guidelines  Execute project review and evaluation  Publish documentation and usage guidelines  Determine format, channel, and content appropriate for each user profile  Monitor adherence to access restrictions and other rules  Monitor and improve performance, clarity, and layout  Develop and implement organizational reporting standards © SAP 2009 / Page 26
  27. 27. Advanced Analytics Manage business needs  Monitor opportunities  Define analysis scope  Evaluate cost versus business benefit  Estimate effort for complex tasks Data preparation and validation  Collaborate with data acquisition and data stewardship functions Research and knowledge sharing  Establish and implement analytical methodologies, models, and standards © SAP 2009 / Page 27
  28. 28. Training Training  Review training needs in the BICC and for business users  Examine training needs in relation to specific projects  Determine training types and media (instructor-based training, e-learning, coaching, appropriate literature…)  Develop training plan and materials  Organize logistics  Interface with external suppliers  Evaluate training  Facilitate knowledge transfer © SAP 2009 / Page 28
  29. 29. Support Support  Establish a call-tracking and classification system  Establish problem-solving techniques and tools  Define an answering and escalation routine  Define service-level agreements  Technical support: establish interfaces to IT department and vendors  Business support: establish interfaces to business departments © SAP 2009 / Page 29
  30. 30. Vendor Management Vendor relationship management  Validate vendor portfolio with strategic and operational goals  Collaborate with strategic vendors License management  Monitor adherence to vendor license regulations  Review and optimize license usage  Renegotiate contracts Bidding processes  Review and create input for proposals, contracts, etc.  Conduct vendor evaluations and approval © SAP 2009 / Page 30
  31. 31. User Adoption Segment users by business initiative, profile, and task  See TDWI white paper: “Pervasive Business Intelligence: Techniques and Technologies to Deploy BI on an Enterprise Scale” © SAP 2009 / Page 31
  32. 32. BI Standards Pragmatically implementing BI standards to reduce overlapping tools, lower costs, and maximize the benefits of BI Create and defend standards based on:  Functional capabilities  Infrastructure requirements  Vendor criteria  Total cost of ownership  Gartner: “Start an active program to standardize on business intelligence tools… Starting now is critical, if you are to achieve strategic deployment and associated cost savings in the next three years.” © SAP 2009 / Page 32
  33. 33. Handling “Legacy” Products Don’t rip out products that work today  Instead, concentrate on new projects  Wait for the next corporate re-org, etc. Don’t lock out other choices completely  Sends wrong message to the business — and can be counter-productive (there’s always Excel)  But act to avoid negative reinforcement behavior: “look, my product is better than what central IT provides you!” Use shared service / purchasing incentives as a carrot  If it’s the corporate choice, it’s cheaper, and you get more support Standards have to be enforceable  If they have no teeth, don’t expect the standard to remain one  Need a “right of review” for projects, including ROI tracking © SAP 2009 / Page 33
  34. 34. Review And Adjust Have a formal review of BICC performance on a regular basis  Business user satisfaction  Review of key performance indicators  Review of support policies and issues  ROI of BI investments  Communications policies  Repartition of roles  Future business needs  Future technical possibilities © SAP 2009 / Page 34
  35. 35. BICC Strategy Map Example BI Efficiency Long-Term BI Effectiveness Financial Shareholder Value Perspective Impact on Insure budgeting Increase Asset enterprise discipline Utilization outcomes Competency Contribution “The Business” Drive business Internal Customer Deliver BI services Deliver consistent, Support business unit unit success with high quality BI Perspective at competitive cost needs with BI innovative BI services solutions Achieve Operational Create and Support Business Provide Strategic Support to Excellence Unit Partnerships the Business Maintain a secure and Improve business unit Propose and deliver reliable infrastructure productivity and Information that ensures business profitability Management Services IT Service operations Management Manage service Partner with business Understand emerging Perspective quality; deliver on units; understand their BI technologies schedule strategies Optimize BI Develop effective processes; lower unit decision support Provide superior BI professional services costs systems Learning & Attract, develop, and Provide BI tools and Foster a business and Growth retain employees with techniques that enhance customer-focused culture key competencies the BI function Perspective 2007 Balanced Scorecard Collaborative and Robert S. Kaplan - Revised © SAP 2009 / Page 35
  36. 36. The Strategy Map and Balanced Scorecard Should Represent a Complete Program of Action Strategy Map Balanced Scorecard Action Plan Theme: Improve Decision Making Objective Measurement Target Initiative Budget Financial Lower BI • Reduce BI • BI Tool • $150k • # of BI environments • One Consolidation TCO Infrastructure Costs • Annual BI Tool Reduce • Reduce Labor Costs Project • 1 FTE Standardize maintenance & • < $75k • Coterminous SW License of BI resources Supply on BI Tools support fees License Fees Mgt (80 negotiations hrs.) Internal • Provide efficient & • End-User Satisfaction • Online User • $5k Customers easier access to • 85% Provide cost- Survey Survey Project Increase information Favorable Productivity of effective • # of Self-Service • BOE XIr2 Upgrade • $350k • Provide latest BI SW Knowledge Workers • 250 Knowledge Innovative BI Solutions functionality - • # of BI Services • 15 Workers Services capabilities available • % of 1st time incident • 60% • BI specific IT Service • Improve 1st time Education Gain efficiency resolutions • $150k Management incident resolution Program through process • Time to resolve BI • 4 hours • Develop Online • BI Incident improvement incidents • $150k Training Programs Management • # of online BI training • 10 intro, 5 • Improve tracking of improvement courses adv. Training BI support incidents Program • # of Help Desk intake • (2) – 800#, • Reduce number of • Service Desk • $200k channels Online Help Desk intake Reengineering Support channels entry Program Learning • Develop the • # of repository • 50 per • $50k • Repository Knowledge necessary BI skills entries month incentive program Management R&D BI Lab • Develop lab • Avg. Rating of entry • 4 out of 5 • $100k • Configure BOE Repository environment for • Availability of BI lab • 95.999% Lab environment innovation configuration Communicate Measure Execute © SAP 2009 / Page 36
  37. 37. Governance Example BI Steering Committee Executive sponsor(s) Provide high level oversight BICC Manager Provide spending authority Monthly Key stakeholders (e.g. CRM) BI Governance Board BICC Manager Provide program mgmt guidance Bi-monthly Other team leads (e.g. CRM) Resolve cross-LOB Issues BI Project Team BICC Manager Provide high level oversight Weekly BI Program Manager Provide spending authority Other project staff BI Competency Center Education/Training Project Team 1 Project Team 2 Project Team 3 Team ETL/Operations Data Management Business Performance Website Team Team Team Analyst Team © SAP 2009 / Page 37
  38. 38. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 38
  39. 39. Act Tactically, Within A Strategy “You’ve got to be very careful if you don’t know where you’re going, because you might not get there” Yogi Berra © SAP 2009 / Page 39
  40. 40. Do A BI “Audit” With a cross-functional team, calculate the costs and benefits of existing BI deployments  Information is power  Don’t underestimate the power of anecdotes and stories Data sources and Hardware, software business areas and consulting costs Numbers and Types of analysis types of users Training and support Direct and indirect costs benefits © SAP 2009 / Page 40
  41. 41. Getting Ownership and Momentum Increasing BI Maturity Build on BI successes to drive standards and shared services Work with the CFO: Link to top-down Office of Executive financial planning and management methodologies budgeting, and extended Finance KPIs such as Balanced reporting initiatives Scorecard, Six Sigma, etc. Share BI information Volume Extranet with discounts, Procurement Competency Initiatives customers, Policies Center partners, and suppliers Widespread project-by- Create bottom-up project usage throughout Department Operational operational dashboards the organization BI Projects BI and embedded reporting 1 2 3 Promote BI project Build working group of Build plan and ROI success and investigate BI IT and users across case for BI business frustrations the organization Competency Center © SAP 2009 / Page 41
  42. 42. Creation Via A Program Management Office A progressive hand-off to a permanent organization Executive Steering Strategic Planning Committee Technology Strategy Prioritized Initiatives Program Management Competency Office Center Evolution USERS USERS Project Project Project Project Project Project © SAP 2009 / Page 42
  43. 43. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 43
  44. 44. Ignorance more frequently begets confidence than does knowledge. Charles Darwin © SAP 2009 / Page 44
  45. 45. BI Competency Center Survey In general, very positive feedback once BICCs have been created But overlaps, usefulness, responsiveness can be an issue © SAP 2009 / Page 45
  46. 46. Common Issues Wrong Mission Lack of Poor Business Responsiveness Support Long-Term Stability Low Inappropriate Communication Organization Insufficient Authority © SAP 2009 / Page 46
  47. 47. Wrong Mission © SAP 2009 / Page 47
  48. 48. Lack of Business Support © SAP 2009 / Page 48
  49. 49. Inappropriate Organization or Funding © SAP 2009 / Page 49
  50. 50. Insufficient Authority © SAP 2009 / Page 50
  51. 51. Low Communication © SAP 2009 / Page 51
  52. 52. Example of a Success Story Slide A concrete example from one of the departments on the previous page (ideally the largest and most important), told in “story” format, using a named person in the business The business person’s need was to…  E.g. increase customer satisfaction, lower product defects, etc. — the more specific the better Before BI, she had to…  E.g. send out paper reports, download information to Excel, wait two Respected person’s months for end-of-month close data, etc. name and title Now, she’s able to…  E.g. get more information, get information faster, do more analysis — the more specific the better And the benefit to the business is (numbers)  E.g. percentage increase in quality, decreased number of defects, etc. — equivalent to X dollars of savings/new revenue, with an ROI of equal to X% or X% change in budget or profits, .0X cents per share © SAP 2009 / Page 52
  53. 53. Poor Responsiveness © SAP 2009 / Page 53
  54. 54. Long-Term Stability © SAP 2009 / Page 54
  55. 55. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 55
  56. 56. Some Examples… US Insurance Company  Best-case scenario: BICC creation by executive order European Bank  IT-organized, bottom-up BICC prompted by user frustration European Telecom  Very small central team, but very strategic European Oil and Gas Company  Boom and bust: the problem of decentralized organizations European Pharmaceuticals Company  Finance leads the way, in conjunction with data warehouse © SAP 2009 / Page 56
  57. 57. Agenda 1. Why have a BI Competency Center 2. BICC Organization and Staffing 3. BICC Functional areas and Key Tasks 4. Creating a BICC 5. Overcoming Common BICC Issues 6. BICC Examples 7. Conclusion © SAP 2009 / Page 57
  58. 58. Other Recommended Resources © SAP 2009 / Page 58
  59. 59. Summary There’s never been a better time to implement a Business Intelligence Competency Center There are big benefits for both IT and the Business BI is about People, not Technology © SAP 2009 / Page 59
  60. 60. Thank You! Timo Elliott BI Questions Blog: