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Best practices for organizing your SAP NetWeaver BI support team

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1 Best practices for organizing your SAP NetWeaver BI support team
Dr. Bjarne Berg Director SAP BI

2 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and Organization models – some examples Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

3 Introductory Slide As SAP BW systems become more established, support teams encounter a wide variety of usage, operational, and change management issues. BW has been around for 9 years, but only recently has best practices stared to emerge in ‘best-of-breed’ organizations. Today we will reveal the first empirical benchmarks on how many resources are needed to support a successful SAP BI program. This session offers best practices and insights on how to optimize support efforts, organization and systems.

4 In This Session We will Look at:
A case study of four companies and explore how they implemented an SAP BI support organization. We will examine 7 “best-of breed” companies & look at benchmarks on how many resources a BI support organization needs. We will look at a survey of 103 participants to see how companies are really organizing support and project efforts. We will explore a recent survey of 1,889 people and see what organizations are looking at when evaluating outsourcing of SAP BI support. Finally, we will look at how you can consolidate these findings in a coherent and robust SAP BI support organization strategy and recruitment plan.

5 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and Organization models – some examples Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

6 The BW Support Organization – 4 Case studies
There are several ways to organize a BW support team. The following is examples from real companies and their lessons learned. Company A: A large Insurance company located in the US, with many distributed IT support organizations across the country. They have been live on BW since 2001. Company B: A large oil and gas company with a central IT infrastructure and been live on BW since 1999. Company C: A mid-sized home builder with a decentralized IT organization and has been live on BW since 2001. Company D: A large global European telecom company with a very decentralized IT staff. They have been live on BW since 1998.

7 The BW Support Organization – 4 Case studies
Company A: A large Insurance company located in the US, and had many distributed IT support organizations across the country. They have been live on BW since 2001. New Central Support Model

8 The BW Support Organization – 4 Case studies
Company B: A large oil and gas company with a central IT infrastructure and been live on BW since 1999. Acquired company New Central Support Model Shared service center Developer pool IT company Environment Management Developer pool This organization had two BW developer groups. One was with the financial group (they went first live with BW), and one was with the IT company (each had about 6 developers). When they merged with another large oil company, they inherited a third BW development group (with about 9 more developers). After running this model with 3 development groups and one central support organization it was decided that the coordination effort grew to large, and standards were too hard to enforce, and a decision was made to merge all three groups into one BW developer pool with the same manager and the same organization. Basis support Security Group

9 The BW Support Organization – 4 Case studies
Company C: A mid-sized home builder with a decentralized IT organization and has been live on BW since 2001. This company had a small BW staff with consisting of 4 employees. Two of these functioned as backend and front-end architects. Project teams were allowed to use consultants to develop what they wanted, but all had to pass the structured walkthrough and approval of the BW architects. This was done to enforce standards and make sure that the system developed conformed to the shared environment constraints. The BW architects spent at least 75% of their time assigned with the project teams and were physically assigned to offices sitting next to the consultants on the project teams.

10 The BW Support Organization – 4 Case studies
Company D: A large global European telecom company with a very decentralized IT staff. They have been live on BW since 1998. This company used a shared BW development staff consisting of the BW central “global business model group” and distributed support for their operating companies in Germany and Holland. The central group did all projects with input and collaboration from the operating companies, but training and power user support was conducted by employees in the operating companies under the existing reporting managers. The result was a centralized development effort, but a scalable distributed support organization. Corporate Group Production Company Sales Organization Corporate Finance

11 The BW Support Organization – 6 to 12 months after go-live
Co. A Co. B Co. C Co. D Development Support Development Effort End-User Support System administration Environment support Company A: A large Insurance company located in the US, with many distributed IT support organizations across the country. They have been live on BW since 2001. Company B: A large oil and gas company with a central IT infrastructure and been live on BW since 1999. Company C: A mid-sized home builder with a decentralized IT organization and has been live on BW since 2001. Company D: A large global European telecom company with a very decentralized IT staff. They have been live on BW since 1998. = Centralized = Decentralized The tendency in these companies has been to centralize as much as possible. The development effort tends to be supported by pool resources from a centralized group, who are assigned for a substantial amount of time to the project teams on-site, either as architects, or as developers.

12 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and Organization models – some examples Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

13 Benchmarking against 7 ‘best-of-breed’ companies with SAP BI
By examining seven companies from various industries that have implemented SAP BI/BW, we found was that consistencies had emerged within the organizations and that we now can draw some conclusions based on their SAP BI support models. The 7 companies reviewed for benchmarks can be summarized as:

14 The need for non-Basis support people
First, we looked at factors we could remove since they were not linked to the need for non-basis support people. We found that four factors had no real impact on the need for these resources: . Number of power users has little impact on the number of non-basis support people you will need. (p=0.97)** . Complexity of security has little impact on the number of non-basis support people you will need. (p=0.85)** . Number of process chains has little impact on the number of non-basis support people you will need. (p=0.82)** . Number of data stores has little impact on the number of non-basis support people you will need. (p=0.81)** **P is the possibility that a factor is simply due to randomness in the sample.

15 How many non-basis support people do you need?
Number of non-basis support people needed = (number of executive users) (# of casual users) (system load issues) (Note: F-Stat=13.59; P of F = 0.03**) Other ways to put it: a) You need 0.4 people regardless of any size of you system. b) Each non-basis support person can support 15.3 executives, or 144 casual users, or 3.2 load issues. When planning development and helpdesk support staff, you need to look at number for executives, casual users and the level of load issues you have.

16 The need for Basis support people
In the second test, we looked at factors we could remove since they were not linked to the need for Basis support people. We found that three core factors had no real impact on the need for these resources. These included: Number of process chains has little impact on the number of basis support people you will need. (p=0.98)** The complexity of the security has little impact on the number of basis support people you will need. (p=0.88)** The number of data stores has little impact on the number of basis support people you will need. (p=0.84)** **note P is the possibility that a factor is simply due to randomness

17 How many Basis support people do you need?
Number of Basis support people needed = (number of BI environments) Note: F-Stat=11.32; P of F = 0.02** Other ways to put it: a) You need 0.49 people regardless of any number of BI systems b) Each basis support person can support 3.18 environments. With 1.5 positions you can support 6.3 environments, and with 2 full-time basis support people, you can support 9.5 BI environments Note: Basis tasks include: OSS research, testing and application, support packs/ upgrades/ transports/ installs/ backup / disaster recovery / hardware management and other related tasks

18 The need for Support Leadership people
In the third model, we also looked at factors we could remove since they were not linked to the need for support leadership people. We found that six core factors had no real impact on the need for these resources: The number of data stores has little impact on the number of leadership support people you will need. (p=0.89)** The number of BI environments has little impact on the number of leadership support people you will need. (p=0.89)** The number of power users has little impact on the number of leadership support people you will need. (p=0.97)** The number of process chains has little impact on the number of leadership support people you will need. (p=0.54)** The complexity of the security system has little impact on the number of leadership support people you will need. (p=0.46)** The number of casual users has little impact on the number of leadership support people you will need. (p=0.26)** **note P is the possibility that a factor is simply due to randomness.

19 How many Support leaders do you need?
Number of Leadership support people needed = (# of executive users) (System data load issues) Note: F-Stat=2.211 Other ways to put it: a. The number of executive using the system drives the need for user support leadership, but you need at least 0.32 leaders regardless of number of users, or data load issues. b. A leader can handle up to 56 executive users, or 7.3 load issues (scale 1-10) When organizing the support leadership team, you need to look at number of executive users and the level of load issues. The more load issues and senior managers using your system, the more support team leads you will need.

20 Testing of the Staffing Models
To test the staffing models, we estimated the needs for the original companies used in creating the proposals. We found that the government organization was overstaffed by 2 and the high-tech was understaffed by one resource. For all others we found 80%-100% accuracy.

21 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and Organization models – some examples Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

22 An example of a small support team
Note: These are Support models, and does not include any resources for new content development. This is assumed to be staffed separately. Support leader Part time (50%) Power User Part time (25%) Helpdesk & data loads Full-time SAP BI Basis Full-time/part-time This small group is typically folded in under an existing manager, who devote only part-time efforts to SAP BI support. The power user is normally also situated in a different organization.

23 An example of a medium support team
Support leader Part time (65%) Query & web Full-time Helpdesk, training, user support Full-time SAP BI Basis Full-time Data loads & fixes Full-time This medium sized is typically folded in under an existing manager, who devote only part-time efforts to SAP BI support. The group sometimes also undertakes portal support, security, development standards and feature enhancements such as broadcasting and cockpit consolidations, but is normally not extensively involved in new content development

24 An example of a very large support team
Note: Job areas are meant for illustrations, and will vary depending on the BI applications supported Support leader Full time Query & cockpits i.e. SEM Full-time Helpdesk, user support Full-time SAP BI Basis Full-time Data loads & fixes Full-time Query & cockpits i.e. APO, CRM Full-time Training, user support Full-time Data quality & data resource mgmt. Full-time Data loads & fixes Full-time Portal, collaboration, KM security Full-time This large team can support complex applications, cockpits, BI portals, broadcasting, while providing training and helpdesk support as well as on-going BW production support.

25 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and Organization models – some examples Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

26 A Survey of development and support practices for SAP BW/BI
In 2004 and 2005 we conducted a survey of development and support practices for SAP BW/BI using participants at SAP Netweaver conferences We got 103 responses from 11 industries.

27 A Survey of development and support practices for SAP BW/BI
Nine manufacturing companies, two transportation and one government organization had a decentralized support organization. This was mainly by using dedicated power users as first level query support, or by having two separate data warehouse organizations that were allowed to support their respective functional areas. However, more than 4 out of 5 companies had centralized this function.

28 A Survey of development and support practices for SAP BW/BI
Almost all companies organize their SAP BI/BW environments in a single organization. There are very few exceptions to this (96 out of 103 companies have centralized BW hardware support team). Best practices is to have specialized competencies by leveraging basis skills in single integrated BI/BW support groups.

29 A Survey of development and support practices for SAP BW/BI
The most diversity of distributed vs. centralized development was in the area of query development. Over 43% of the companies surveyed allowed queries to be developed by non-centralized IT staff.

30 A Survey of development and support practices for SAP BW/BI
Almost all companies centralized ETL processes and development. Only one insurance company allowed this to be decentralized. Best practices are to centralize the ETL development.

31 A Survey of development and support practices for SAP BW/BI
Almost all companies centralized the development of InfoCubes and ODSs. Only in Oil & Gas did we see some distributed development (mostly due to mergers). Few companies allow distributed development of ODS or InfoCubes

32 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and Organization models – some examples Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

33 SAP BI support and development outsourcing
To examine what companies are really doing with outsourcing in the SAP industry, we took samples at five different SAP national conferences with a combined attendance of over 15,800 individuals. Over a period of 8 months we sampled a total of 1,889 individuals (45 did not identify company size, so we had 1,845 usable surveys). We used a written survey with 47 questions Source: “Factors considered when Outsourcing a Transaction System or a Decision Support System”, Dr. Bjarne Berg, University of North Carolina, 2007.

34 Trends in SAP R/3 and BI Outsourcing
The respondents reported that a BI spending on average of 10.1% of IT budgets on SAP BI outsourcing. The major differences were in the expectation levels. Fortune-500 companies reported the highest expected growth in overall (R/3 and BI) outsourcing over the next 3 years. The expected annual growth in outsourcing of R/3 ( ) was 13.4%; while the expected growth per year on SAP BI was 7.6%. Source: “Factors considered when Outsourcing a Transaction System or a Decision Support System”, Dr. Bjarne Berg, University of North Carolina, 2007.

35 Source: “Factors considered when Outsourcing a Transaction System or a Decision Support System”, Dr. Bjarne Berg, University of North Carolina, 2007.

36 What are companies looking at when outsourcing SAP BI
Large companies are viewing costs as the most important factor. Medium companies are looking at internal factors. Small companies are looking mostly at supplier factors Company size influences what factors an organization considers important when outsourcing a SAP BI organization

37 What is most important when outsourcing SAP BI support
*Significant at 99% confidence level, two-tailed matched pair t-test of sample means assuming equal variance.** Significant at 95% confidence level. *** Significant at 90% confidence level. Technology uncertainty & Labor costs are the more important for outsourcing the SAP BI organization than for the R/3 support.

38 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and responsibilities – skills and training Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

39 Four decisions - when considering SAP BI support outsourcing
Data Management Review - “Outsourcing a DSS -when does it make sense? “ Dr. Bjarne Berg, July 2004 Only when reporting is standardized, non-regulatory, and not a source of core competitive advantage should SAP BI outsourcing be considered

40 Outsourcing risks In a recent research paper of 137 companies, it was found that there were three factors that could predict outsourcing success. The factors were: - Interdependence with other processes (APO, budgeting, planning forecasting have high interdependence and is therefore not good candidates). - Complexity (the more complex, the less likely of success) - Strategic importance to the enterprise (basic reporting is not a strategic capability and can be outsourced). Mani, D. Barua, A., and Whinston, A., Successfully Governing Business Process Outsourcing Relationships, MIS Quarterly Executive, Vol, 41, 1, March 2006

41 What to explore when negotiating an Service Level agreement (SLA)
Bargain for compensation at beginning – be careful of creeping cost escalations and know what you are committing to.. Limit your vulnerability by dual sourcing (more than one vendor) Demand payment schedules for each task (this is the only way to really see what the contract is costing you). Watch out for partial contracts, there is a temptation to cut quality Avoid any vague commitments or language, if it cannot be measured, it won’t. Carl Shapiro, Hal R. Varian: ”Information Rules: A Strategic Guide to the Network Economy” Harvard Business School Press Spend serious time in writing an SLA, even when dealing with internal service providers – the costs of omissions and switching costs are very high.

42 What to explore when negotiating an Service Level agreement (SLA)
Don’t reveal too much about vulnerabilities and phase in the outsourcing before making grand commitments. Avoid creeping lock-in by proprietary standards and methodologies. Keep info on usage to yourself – the vendors may try to price by benefits. Assess early the magnitude of switch costs if you should become unhappy with your vendor selection. If you give the vendor more business, do you get cumulative volume discounts? – the benefits of scale should be shared… Carl Shapiro, Hal R. Varian: ”Information Rules: A Strategic Guide to the Network Economy” Harvard Business School Press The closer you are to the industry (SAP) standards, the easier it is to find trained resources and it also gives you more flexibility in the future

43 What to include in a SAP BI -SLA
1. When must data stores be loaded by (time) - What will happened if a persistent problem occurs (“swat” teams?) - Who are responsible for fixing process chains and who pays? - Do you get a discount for each datastore that is not loaded in-time? 2. How should software fixes be applied - When will service packs, OSS notes and fixes be applied - Who pays for it - Who is responsible for testing of them 3. When will the system be upgraded - When will upgrades occur, how is the pricing determined - Who pays for it and who is responsible for testing - Outage committeemen's 4. Minimum up-time and target up-time - What is uptime defined as (data store loaded vs. queries available vs. security fixes applied, vs. portal uptime vs. 3rd party reporting tool uptime vs. network uptime etc.. - What are the penalties (money) for missing the up-time requirements?

44 What to include in a SAP BI -SLA
5. Issues log - What issues must be logged? - Who owns the log? – do you have access? - Can entries be updated, or must an audit trail be preserved? 6. Backup and disaster recovery - What is included in the backup and when is it taken - When will restore abilities be tested - How fast must restore occur, and what data stores and users will first have access (priority list) 7. Who owns the data - If you switch vendors, who owns the data? - How will you get access to the data? – do you get full insights to all? - Who of the vendor’s employees gets access to your data, can they share it with your competitor? 8. Service tickets - When will service tickets be monitored? - What are the categories and who will resolve them? - What are the resolution process and timelines? - How are customer and support satisfaction measured?

45 What to include in a SAP BI -SLA
9. Escalation process - What will happened if an issue cannot be resolved by the vendor and your SLA manager - What are the steps needed to terminate the contract and are there any payment/ fault payments The more details you put into the contract up front, the easier it will be to measure and the more likely you are to have a successful relationship

46 What We’ll Cover … Introduction An historical view – a Case study of four companies Benchmarks and guidelines for number of BI support resources Roles and responsibilities – skills and training Distributed development and support organizations Outsourcing of SAP BW development or support Use of service-level agreements (SLAs) Wrap-up

47 Dr. Bjarne Berg’s resource site
BW Organizational Survey Results from “Managing the BW Project” at the BW and Portals Conference 2004– Dr. Berg

48 Resources Factors considered when Outsourcing a Decision Support System, a large-scale survey of ERP practices Data Management Review - Outsourcing a DSS -when does it make sense? Dr. Bjarne Berg- July 2004

49 7 Key Points to Take Home Don’t underestimate the support needs of a successful SAP BI program. You are doing data warehousing, you are not building a data warehouse – it is an ongoing process. The support organization should in general be centralized, the only area where support could be decentralized is the query development and fixes. Benchmarking against best-of-breed SAP BI organizations can provide realistic inputs to you support models Don’t add your organization to the exiting SAP support organization by default.. Sometimes it makes more sense to align it with other reporting organizations.

50 7 Key Points to Take Home If you are looking to outsourcing, be very clear on why you are doing it and what factors you are considering relative to your company’s competitive strategy and company size. Write very detailed Service Level Agreements and detailed consequences of missing performance targets. Don’t underestimate the need for on-going training and recruitment into your support organization. These skills are in high demand and most companies sees high turnover among these resources.

51 How to contact me: Dr. Bjarne Berg
Your Turn! How to contact me: Dr. Bjarne Berg


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