Presentation on theme: "Business Intelligence Strategy"— Presentation transcript:
1 Business Intelligence Strategy Paul HawkingSAP MentorVictoria University
2 SAP University Alliance Program (UAP) BackgroundUniversitySAPSAP User GroupSAP Academic Program DirectorResearchIndustry ReportsBest selling authorERP Systems and Business IntelligenceVisiting ProfessorSAP MentorTeach AcademicsDevelop curriculumTop 10 Most Influential SAP People (InsideSAP)PresenterDesign EventsAdvisorPast Chairperson2
3 Business Intelligence Who has a BI Strategy?Is the BI Strategy written down?Does it contain metrics?Is somebody responsible for its success?
4 Maximise Value From ERP Systems 1. Likely to seek and measure tangible benefits, such as reduced cost and increased revenue.2. Emphasis on integrating, optimizing and using analytics to drive improved business performance.3. Extend systems throughout their organization and implement across a range of functions.4. Integrate the organization and external systems of customers and suppliers.5. Aggressively use information and analytics to improve decision making.
5 Top CEO Business Priorities, 2013 RankTop 10 Business Priorities1Increasing enterprise growth2Reducing enterprise costs3Expanding into new markets and geographies4Increase profitability5Implementing finance and controls6Talent and workforce management/development7Consolidating, standardizing and streamlining operations8Execute acquisitions, mergers and partnerships9Improve governance, risk, compliance and securityGartner
7 Business Transformation Projects Implement strategy through process, then continuously improve process effectiveness and efficiencyStrategy & Business RequirementsBusiness ProcessPrioritiesBusiness Transformation ProjectsPeopleProcessesToolsPerformance=x100%
8 Key messages Journey with accenture Ice burg Maturity Success Edw Non aligned strategy with corporate strategyLittle up front investmentLimited impact on business from dataReactive reportingBI silo and governanceOrganic growthKey messagesJourney withaccentureIce burgMaturitySuccessEdw
9 Business Role of BI (TWDI) ReportingWhat happened?AnalysisWhy did it happen?MonitoringWhat’s happening now?PredictionWhat might happen?ComplexityBusiness Value
10 Solution Architecture Why Act?No documented information strategyIncomplete information with limited ability to drill down to support detailStrategyUnaligned, diverse data structuresPoorly integrated processes with areas of duplication and inefficiencyInformationRequirementsDataManagementOperatingModelLimited flexibility, absence of consistent data managementDifferent definitions used across the businessInformation AccessComplex transformations of non standard source dataSolution ArchitectureReliance on Excel and manual processes to produce dataTime spent on validation and reconciliation rather analysisMultiple point solutions with minimal integration
11 Where would we like to go? How do we get there? Where are we now?Where would we like to go?How do we get there?
13 Where are we now? ASUG Business Intelligence Maturity Model Stage1Information Dictatorship2Information Anarchy3Information Dictatorship4Information CollaborationInformation and AnalyticsRequirements are driven from a limited executive groupKPI’s and analytics are identified, but not well usedKPI’s and analytics are identified and effectively usedKPI’s and analytics are used to manage the full value chainGovernanceIT driven BIBusiness driven BI evolvingBI Competency Centre developingEnterprise wide BI governance with business leadershipStandards and processesDo not exist or are not uniformEvolving effort to formaliseExist and are not uniformUniform, followed and auditedApplication ArchitectureBI “silos” for each business unitSome shared BI applicationsConsolidating and upgradingRobust & flexible BI architectureStages/categories/activities
14 Measuring BI Success and Value (McDonald 2004) Create a formal, continuous process for measuring success and value generatedIdentify and measure results of each project phaseEstablish realistic goals and expectations based on capability / maturityBusiness SuccessReturn on investmentEconomic value addRevenue increasesCost SavingsCustomer / corporate profitsEnables Business Strategy and Completive AdvantageOperational SuccessValue CreatedProductivity improvementsProcess efficiency and effectivenessKey performance indicatorsUser SuccessUser adoptionUsage trackingUser satisfactionData problemsImplementation SuccessOn-time, On-budgetOverall Success of the BI Initiative
15 BI Effectiveness Scorecard MeasureScoreCommentBusiness Case & Vision1) Single source of truth, 2) business analysis across borders, processes, businesses, 3) Analysts move from data gathering to real business analysis, 4) reduce total reporting costExecutive supportCFO provides visible public supportAlignment to business strategy and business processesOnly Global Business Process Owners can request BI or CPM projectsAlignment and working practices – Business and ITBusiness Transformation Process aligns strategy, process and organisation. Business owns scope prioritisation and outcomesExtended BI CCCentral team with both business and technical expertise. Network from the center Business Transformation Officers and Market MIS Coordinators provide the link to adoptionPredictability – robust and effective delivery methodologyCompliance to IT Project and Service processes as a subset of Business Transformation process
16 Global Information Projects TBI Value ScorecardMeasureScoreCommentGlobal Enterprise-wide Adoption – the ultimate measure of BI success – % of employees as active BI users> 10%More than 10% of employees are active users, expect to reach 15% in More than navigations per day. 20% of employees are registered users.% coverage in BI of business processes and business performance measurements Single source of truth across borders, processes, businesses100%Business performance measurements are available for all business processes and all business units. Expanding coverage within processes and units. Used in all Markets and in the center.Response time5 secondsWorldwide: all management reports in 15 seconds or less, average navigation step below 5 secondsReliability, Consistency & Quality7AMAll managers have fresh data at 7AM their time worldwide. Information is correct and broadening. Adoption makes sure it stays correct.Easy to use – low training costHigh user adoptionInformation portal based on geography, business roles and business processes; standard layouts make it easy to understand and useEnables next steps – new major business information initiativesGlobal Information ProjectsSuccessful major new information projects – brand information back to our customers, worldwide alignment on Sales Forecasting
17 FIVE KEY AREAS OF STRATEGY Assuming you need a BI strategy, or to update an existing one, there are five key areas of consideration:BI Roadmap – for use as a start-up to a BI strategy implementation project.Stakeholder Management - getting the right people involved at the right level.Architectural Blueprint - how the BI estate will look and operate.Capability Improvement - what needs upgrading, re-developing or decommissioningImplementation Planning - how to approach implementing the roadmap to take you from here to there.
18 If It’s All Too Hard Report Analysis What actions occur as a result of the report?If no actions why not?Under what circumstances will an action occur?Modify the report to be actionableUnderstand the decision workflow
19 Meta DataDataIntegrationMaster DataBICCData QualityBIStrategyExecutiveSupportSkills
20 Paulhawking #SAPVU Paul Hawking SAP Academic Programs Director College of BusinessTelephone:Mobile:Paulhawking #SAPVU
21 Gartner Maturity Model Level 1: UnawareLevel 2: TacticalTotal Lack of AwarenessSpreadsheet and Information AnarchyOne-off Report RequestsWhat to do:Identify the business driversGet commitment and resourcesUnderstand the data sources, data quality, architecture and systemsNo Business Sponsor, IT executive in chargeLimited Users - mainly managers and executivesData Inconsistency and stove-piped systemsWhat to do:Get funding for finance related BI initiatives from senior executivesDefine metrics to analyze specific departmental or functional performancesFind out requirements for dashboardsMake case for BI Competency center
22 Gartner Maturity Model Level 3: FocusedLevel 4: StrategicFunding from business units on a project-by-project basisSpecific set of users is realizing valueSuccessful focus on a specific business needBI Competency Center in placeWhat to do:Increase BI initiative scope across multiple departmentsFind BI investment and commitment for non-financial data such as sales and productLook for integrating the data and consolidate disparate analytic applicationsCreate an enterprise wide metrics frameworkExpand the user baseEstablish a balanced portfolio of standardsBusiness objectives drive BI and performance management systemsDeploy an Enterprise metrics frameworkGovernance policies are defined and enforcedWhat to do:Look to extend the BI application to supplies, customers and business partnersDetermine how to use BI to support evolving business objectives and strategyBICC should look at integrating BI Analytics with the business processes
23 Gartner Maturity Model Level 5: PervasiveUse of BI is extended to suppliers and customersAnalytics are inserted into and around the business processesInformation is trusted across the company