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
Business Challenges
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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
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Personalized Insights
Advanced Planning and Forecasting
Sensing and Responding
Predictive Modeling
Real-Time Analysis
A Changing Relationship with Information
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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
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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
“
”
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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
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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
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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
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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”
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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
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Enterprise Business Intelligence/Analytics Strategy to Execution
BI Execution
Feedback to
Strategy
BI Strategy
Link and Align Strategy to Execution Business 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
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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
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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
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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
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
Promote benefits of
addressing prioritized
gaps and map
capabilities to solve the
business pain
Step 1 Step 2 Step 3 Step 4
Resources and Capabilities
Needed
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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
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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.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
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!
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23
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
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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
Wrap-up
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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!
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27
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
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 28
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
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Self-Service Online Assessment www.sap.com/bistrategy
A self-service online assessment tool that will help you identify business challenges
across your organization
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SAP BI Success Website www.sapbusinessobjectsbi.com/
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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).
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 32
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
Twitter: @pat.saporito
More Resources:
BICC Blog Series Analytics from SAP
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 34
© 2015 SAP SE or an SAP affiliate company.
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Polling Questions
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 36
Do You Have a BI Strategy?
A. We have a clearly defined formalized strategy known by both
Business and IT
B. We have a broad BI strategy that is documented, but most known
only in IT
C. We don’t have but realize that we need to develop a formal,
busienss-driven BI strategy.
D. We do not have and have no plans to develop a formal BI Strategy.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 37
Do You Have a BI Competency Center?
A. We have a BICC that incorporates both technical and
business/related aspects of BI.
B. We have a BI program management office, but it is primarily
focused on the technical side of BI.
C. We are planning to develop a BICC.
D. We do not have and have no plans to develop a BICC.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 38
Do You Have an Information Governance Strategy?
A. We have an enterprise information governance function that
includes both transactional and analytic data.
B. We have an enterprise information governance function, but it does
not include analytics.
C. We don’t have, but have plans to create analytics data governance.
D. We lack awareness of the need for analytics data governance.