BI Strategy – Getting Where You Want to Go


Published on - A Business Intelligence (BI) strategy is important to create an information driven culture in any organization. Learn the importance of a BI strategy and how your organization can achieve it.

Published in: Technology, Business
  • Properly setting up and executing reporting from your business intelligence are extremely crucial parts of planning for you business, as demonstrated by the slides. At Method360 we find companies all over that don't spend the time to set up a BI strategy and it hurts them in the long run. That is why we've set up this free workshop to help companies understand the importance of and best practices behind BI Strategy.
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BI Strategy – Getting Where You Want to Go

  1. 1. BI Strategy – Getting where you want to go Creating an information driven culture in your organization Deepa Sankar Director, BI Product Marketing
  2. 2. © 2013 SAP AG. All rights reserved. 1 Agenda  Analytics – Key enabler for business transformation  The Importance of a BI Strategy  How SAP Can Help in Defining Your BI Strategy?  Wrap-Up
  3. 3. Analytics Key Enabler for Business Transformation
  4. 4. © 2013 SAP AG. All rights reserved. 3 No Question Analytics Provide Proven Return on Investment “Organizations earn an average of $10.66 for every dollar spent on deployments of analytics.” Source: Nucleus Research, “Analytics pays back $10.66 for every dollar spent”, December 2011 >1000% “With such high returns, management teams should consider these technologies to be one of the most attractive investment opportunities available to the CFO”
  5. 5. © 2013 SAP AG. All rights reserved. 4 Top 10 Business Priorities Top 10 Technology Priorities 1. Increasing enterprise growth 1. Analytics and business intelligence 2. Delivering operational results 2. Mobile technologies 3. Reducing enterprise costs 3. Cloud computing (SaaS, IaaS, PaaS) 4. Attracting and retaining new customers 4. Collaboration technologies 5. Improving IT applications and infrastructure 5. Legacy modernization 6. Creating new products and services 6. IT management 7. Improving efficiency 7. CRM 8. Attracting and retaining the workforce 8. Virtualization 9. Implementing analytics and big data 9. Security 10. Expanding into new markets and geos 10. ERP Applications Source:Gartner 2013 Top Business and Technology Priorities 2013
  6. 6. © 2013 SAP AG. All rights reserved. 5 Technology is not the problem Between 70% to 80% of corporate business intelligence projects fail, according to research by analyst firm 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.”
  7. 7. © 2013 SAP AG. All rights reserved. 6 Source: Forrester Research, 2012 BI Maturity Survey and Pioneer self assessment In 64% of enterprises, fewer than 10% of decision makers use BI
  8. 8. © 2013 SAP AG. All rights reserved. 7 People are THE Key BI “Technology” BI Culture is about optimizing the use of this “technology” It’s as important to plan the cultural changes as it is to plan the rest of BI deployments
  9. 9. © 2013 SAP AG. All rights reserved. 8 Inescapable Trends Affecting BI Culture Consumerization of IT Internal vs. External Data Internal vs. External Systems Agile BI and Data Discovery “Big Data” and Data Scientists Real-Time Data Platforms Talent and Performance Management Budgets Moving to the Business Information as an Asset Do you still feel like you are in charge?
  10. 10. The Importance of a BI Strategy
  11. 11. © 2013 SAP AG. All rights reserved. 10 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 “ ” Culture Eats Strategy for Breakfast.. So it had Better be Tasty!
  12. 12. © 2013 SAP AG. All rights reserved. 11 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
  13. 13. © 2013 SAP AG. All rights reserved. 12 Questions Answered by BI Strategy Are business decisions made with insufficient information today? What is our vision for information access and usage? What do we need to make information available and useful?
  14. 14. © 2013 SAP AG. All rights reserved. 13 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
  15. 15. © 2013 SAP AG. All rights reserved. 14 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? IT Store Operations Merchandising HR Supply Chain Marketing Finance Business Intelligence Strategy
  16. 16. How can SAP help?
  17. 17. © 2013 SAP AG. All rights reserved. 16 How SAP Can Help BI Strategy Framework & Assessment  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 Easy-to-use methodology to help guide you through a strategic discussion for BI strategy and solution formulation within an enterprise-wide scope
  18. 18. © 2013 SAP AG. All rights reserved. 17 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
  19. 19. © 2013 SAP AG. All rights reserved. 18 SAP’s BI Strategy Assessment Repeatable, Value-Based Methodology Interactive discovery, prioritization, and recommendations for addressing business pains and a successful enterprise BI strategy 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 solve the business pain Business Discovery BI Strategy and Execution Gap Analysis BI Strategy Foundation Step 1 Step 2 Step 3 Step 4
  20. 20. © 2013 SAP AG. All rights reserved. 19 Prioritized, Business Driven Needs - Recommendations
  21. 21. Best Practices
  22. 22. © 2013 SAP AG. All rights reserved. 21 • Find a high-level executive sponsor • Define and prioritize business needs • Gap assessment of current vs. future capabilities needed • Define & build capabilities needed using a roadmap • Don’t under estimate culture and change management BI Strategy Best Practices Summary
  23. 23. © 2013 SAP AG. All rights reserved. 22 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
  24. 24. © 2013 SAP AG. All rights reserved. 23 BI Competency Center Operational Models Every organization is different; 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 ICCDepartment BICC BICC BICC Division 1 Division 2 Division 3 Corporate Division 1 Division 2 Division 3 Finance … Sales Source: Gartner
  25. 25. © 2013 SAP AG. All rights reserved. 24 BICC Skill Requirements Business, Analytic, and IT 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 Source: Gartner
  26. 26. © 2013 SAP AG. All rights reserved. 25 As Analytics Maturity Increases, the Business Intelligence Possibilities Become Endless … Instantly predict market trends and customer needs Predict how market price volatility will impact your production plans See changes in demand or supply across your entire Supply Chain immediately Monitor and analyze all deviations and quality issues in your production process Provide exactly the right offers and service levels to every customer Have a continuously-updated window onto future sales, showing changes in real-time Understand what your customers and potential customers are saying about you, right now Predict cash flows to manage collections, risk, and short- term borrowing in real-time
  27. 27. © 2013 SAP AG. All rights reserved. 26 Useful Resources BI Strategy Workshops: Reporting & Analytics Conference, Nov. 19, Orlando Take the BI Self Assessment: BI News: BI and Your Success- 5-part video series: Blogs on BI Strategy to-your-bi-program centers-take-center-stage-again define-track-and-measure-success/
  28. 28. Thank you
  29. 29. © 2013 SAP AG. All rights reserved. 28 © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see for additional trademark information and notices.