4Competitive Edge Is Gained With Analytics High performing companies are 50% more likelyto use analytic information strategicallyHigh PerformersLow PerformersHave significant decision-support/analytical capabilitiesValue Analytical insights to a very large extentHave above average analytical capability within industryUse analytics across their entire organizationSource: Competing on Analytics, Thomas Davenport
5Adoption Rate of Business Intelligence End Users Need a Leap in Performance 12%Number & Scope of KPI’s Required is Expanding“The percentage of employees using BI in 2007 was 25 percent and was 24 percent in When BI is made relevant and accessible to front-line and field workers as well as externally to customers and suppliers, then BI usage will reach beyond 100 percent of employees.“Source: Pervasive BI: Still a Vision, Not Reality By Stephen Swoyer 01/20/10The reality is quite different. It is 12%. What is 12%? It is the adoption of BI among corporate works.What this means is that 78% of business users have no access to self-service BI tools and rely on IT or BI experts for their information.BTW., the average time for IT to create a new analysis or report is 20 days.Further compounding this challenge is the amount of information we have. We need to analyze every increasing amounts of information to gain actionable insights. Current database or BI tools can’t keep up with the amount of information we have.
6Five Signs that a Company Does Not Have a BI Strategy The BI Strategy consists of a BI architecture slideIT is asking the business what reports they needStep one is building a data warehouseNone of the BI team members can articulate the company business strategyThere are no metrics defined to measure progress & success
7What is a BI strategy?BI NeedsBI AdoptionExecution+
8What is a BI strategy? 2. BI Needs 3. Benefits 4. Information Structure & Technology5. Organization & Implementation1. Objectives
9BI 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
10Organizations Need a BI Strategy How does a BI strategy benefit IT?Help align with business partners, formalize business needsCreate prioritized roadmap for the enterprise of short, medium and long term projects aligned with strategic business goals delivering measurable resultsCreating business justification for an enterprise scope and end-to-end BI including data managementA 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 strategyHave departmental spend go further and contribute to enterprise investments required.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?How can SAP Help?As the market leader in BI SAP has seen more implementations of BI than any other vendor. We make this experience work for our customers.Partnering with Gartner (the leading industry analyst firm with the largest BI practice) we created this BI strategy development methodology based on best practices independent from specific products.
11Examples of questions typically answered by a BI Strategy include: In what scenarios BI can help my finance department?What is my value proposition for BI (Results, Value)?Do I have a BI strategy?What architecture and standards in need to follow?What organization structure I need?
12The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineBI Strategy FoundationGap AnalysisPlaybook 1Playbook 2Playbook 3Playbook 4Four step approach to developing a solid BI strategy foundation
13You Can Add Pain/Impact Pairs and Additional Information for Context
14The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineBI Strategy FoundationGap AnalysisPlaybook 1Playbook 2Playbook 3Playbook 4
15Measuring the Business Pains 10 = HighestPressing problem. It currently causes significant problems, and often delays identification of or action on critical business issues, or it definitely decreases our competitive advantage.7 to 9 = Medium/HighThe issue often causes problems and sometimes prevents us from catching significant problems early enough to fix them before they have a major effect on our business – or prevents us from seeing opportunities early enough to capitalize on them.4 to 6 = MediumThis issue has been causing problems – or delays in understanding what is happening in the business – but there is a temporary workaround. In the longer term the workaround is probably not a viable solution.2 to 3 = Low/MediumThe issue has caused some inconvenience from time to time, but is not a significant problem – or it will be solved by initiatives currently in process.1 = LowestThere is little or no ‘pain’ experienced currently. It might be a latent issue that is currently not causing meaningful issues.
16Sales Pain and Impact Examples Common Business Pains of Sales Executives (EVP, SVP, VP of Sales, Director of Sales, etc.)When I meet with sales executives at other companies, I consistently hear the following business problems:Business PainLevel of Pain(1-10 where 1=Low, 10=High)Business ImpactImpact of AddressingS6Lack of integrated customer information – We have multiple systems which each contain partial and/or overlapping customer data. It is impossible to get a complete picture of a customer sales, service and profitability relationship – or identify problems / issues early on.We will know which customers are most profitable, so we can focus on those relationships. We can also strategically target less profitable relationships for improvement. Ability to identify and solve customer relationship issues before they become major.S8Inability to understand pipeline drivers - The quality of our pipeline is decreasing, but we lack methods to assess and identify improvement approaches. Reps are chasing deals with a low chance of closure.Identifying closure potential will decrease the cost of sales, increase our sales close rates, revenue, and increase the effectiveness of our incentive compensation.S10Leads delivered to sales don’t translate into valuable opportunities - Marketing metrics on lead generation and the perceived value of leads to Sales are not in alignment.We can have shared opinions and definitions of the value of leads generated. That way we’ll increase the value of investments in lead generation for both sales and marketing.
17Current BI Needs Baseline Analysis BI Strategy & Execution Baseline AnalysisBI Business Needs Identification and Gap Summary by LOBObjective:Create high level summary of BI needs by LOB, and their expected impact if addressedMeasures whether or not an enterprise-wide BI strategy existsIf one does exist, what is the level of execution on that strategy?Examples of questions typically answered by a BI Strategy include:What business decisions do we not have sufficient information to make?What is our vision for information accessibility and usage?What should the high-level BI roadmap of initiatives look like?What capabilities are required to make information available and useful? What are the dependencies?What metrics should we use to manage the BI implementation and fulfillment of BI business goals?How should we design the processes, applications, and organization to fulfill our BI vision?What toolsets should I use to fulfill our BI vision?OutcomesDeepen account relationshipIncrease account team credibilityFollow-on interactive sessions with subsequent playbooksBI Rapid Assessment
18The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineBI Strategy FoundationGap AnalysisPlaybook 1Playbook 2Playbook 3Playbook 4
19Components of a Business Intelligence Strategy Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineBI Strategy FoundationGap AnalysisPlaybook 1Playbook 2Playbook 3Playbook 4ObjectivesBI NeedsBusiness CaseInformation Structure and TechnologyOrganization and Implementation
20BI Strategy Components To what degree does it exist?Rate the degree to which the BI Strategy Components exist in your organizationDefinitions of Level of Existence ratings10 = HighThis Strategy component has been fully defined. It has been well defined, with plans to address deficiencies. Decisions have been made and appropriately communicated. No major gaps exist.7 to 9 = Medium/HighThis Strategy component has been mostly defined. One or two major gaps may exist.4 to 6 = MediumThis Strategy component has been partially defined. There are still a number of issues that have not been dealt with, and some decisions have yet to be made and communicated.2 to 3 = Low/MediumThis Strategy component has been minimally defined. Some planning has been done to define the issue, but most decisions have yet to be made and communicated.1 = LowThis Strategy component has been not at all defined. Very little planning has been done to define the issue, and no decisions have been made.
21Background and Objectives Purpose and GoalsCurrent State and HistoryBI Objectives and ScopeThe extent to which the history, key reasons and objectives for the BI Strategy have been documented and to what extent the objectives have been executedWhat led to this point, and why the BI Strategy was (or is being) builtLevel of Existence measures the extent to which the BI Strategy has been agreed upon and clearly documentedCompleteness of Execution – Not Applicablereason for BI strategy?Eg: The organization is currently unable to effectively execute on its business strategy due to a lack of visibility into key performance metrics supporting corporate objectives.Have you defined goals?Have you defines mission statements?
22Business Intelligence Needs BI NeedsSummary of BI NeedsEnvisioned To-Be StatePriorities and AlignmentTo what extent the business needs and future state have been defined and executed in terms of business requirements and corresponding KPIsKey information needs by stakeholder group or role group (e.g. Finance, Sales) and role (e.g. C-level, VP, Director, Manager)Level of Existence measures whether the needs by stakeholder group or role have been identified, validated and documentedCompleteness of Execution measures the fulfillment of these information needs, including whether the fulfillment targets are being tracked and metWhat are the information needs of your business units?Examples:SalesAbility to analyze sales performance and quickly identify issues or problems across teams, geographies, or by individual sales repsImproved ability to do sales forecastingImproved insight into sales close rates & root causes for declining close ratesFinanceIncreased ability to consolidate reporting from a variety of information sourcesAbility to use flexible management reportingImproved ability to assess performance at a product, business, store, geographic levelMarketingAbility to measure and manage marketing campaign performanceIncreased visibility into account defections, including root cause analysis, key indicators that can help predict customer defectionsAbility to determine product level demand trends, including product profitability, SKU profitability and geographic profitability
23Organization and Implementation Governance StructureProgram ManagementRoadmap and MilestonesMeasurementEducation / TrainingSupportTo what extent the organization is ready to implement the BI Strategy and is on track to executeThe metrics developed as well as the methodologies used to measure the implementation and ongoing success of the BI strategyLevel of Existence describes whether metrics have been defined to assess the implementation and ongoing success of the BI strategyCompleteness of Execution describes to what extent the implementation and ongoing success of the BI strategy is being tracked and if the targets are being met
24Best Practice Example: BI Competency Center Models Every organization is different, and one or more of these BI Competency Center organizational models may work for you.BICC as an IT DepartmentVirtual BICCBICC as Part of OperationsDistributed BICCCOOCIOICCDepartmentBICCDivision 1Division 2Division 3CorporateFinance.…SalesHow do you organize cross-functionally around BI Strategy? Create a BICCSource: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
25Best Practice Example: BICC Business, Analytics and IT Skills Business NeedsBusiness SkillsOrganization and ProcessesStatistical and Process SkillsGovernance, AdministrationTools, Infrastructure, Applications, DataEstablish StandardsControl FundingDefine BI VisionManage ProgramsBuild Technology BlueprintDevelop User SkillsOrganize Methodology LeadershipAnalytic SkillsIT SkillsBICCSource: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
26BI Focused Best Practice KPIs Example of BI focused best practice KPIs include:% of Strategic KPIs Tracked Using BI Software% of Employees With Visibility into Strategic KPIsUsage of BI/ Analytics to Manage Business ProcessesAvailability of Real-time/Predictive Insights into Business Processes% of Employees Receiving Analytical Information% of External Stakeholders Receiving Analytical InformationDrilldown Levels% Active Reports Created by Business (as Opposed to by IT)Cost per Report (‘000s)Report Development Cycle Time% ETL FailedIT Spend as % of RevenueBI Spend as % of IT SpendBI Spend per EmployeeBI Support FTEs per 1000 Users
27BI Strategy & Execution Baseline Analysis Objective:Assess existence of BI Strategy, completeness of execution, and impact if completedMeasures whether or not an enterprise-wide BI strategy existsIf one does exist, what is the level of execution on that strategy?Examples of questions typically answered by a BI Strategy include:What business decisions do we not have sufficient information to make?What is our vision for information accessibility and usage?What should the high-level BI roadmap of initiatives look like?What capabilities are required to make information available and useful? What are the dependencies?What metrics should we use to manage the BI implementation and fulfillment of BI business goals?How should we design the processes, applications, and organization to fulfill our BI vision?What toolsets should I use to fulfill our BI vision?OutcomeFeeds into the Gap Analysis, Playbook 3
28The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineBI Strategy FoundationGap AnalysisPlaybook 1Playbook 2Playbook 3Playbook 4
29BI Strategy & Execution Gaps Gap AnalysisBusiness PainsObjective:Prioritize Gaps of existing BI needs, and non-existent or not well-executed strategy componentsPRIORITIZED GAPSBI Strategy & Execution GapsSummarizes gaps identified by Playbook 1 and 2Helps Account Executives review and prioritize - with their customers - the most important gaps between the customer’s current and desired BI stateNot meant for detailed technical discussions with customers – those are handled by detailed (customer-funded) BI Strategy Workshops delivered by the field services team, and/or BI Consulting EngagementsOutcomeDiscussion of the value of closing the gaps, found in Playbook 4
30Gap Analysis Summarizes gaps identified by Playbook 1 and 2 Helps Account Executives review and prioritize - with their customers - the most important gaps between the customer’s current and desired BI stateNot meant for detailed technical discussions with customers – those are handled by detailed (customer-funded) BI Strategy Workshops delivered by the field services team, and/or BI Consulting EngagementsOutcomeDiscussion of the value of closing the gaps, found in Playbook 4
31BI Strategy Best Practice defined as 18 elements in 5 categories Background and ObjectivesBI NeedsBenefitsInformation Structure and TechnologyOrganization and ImplementationPurpose and GoalsStrategic Vision Workshop for Enterprise BISummary of BI NeedsValue Proposition of BIDevelopment of SAP implementation business case (ID: )Information CategoriesDevelopment of Strategy and Design for IT Architecture (ID: )Governance StructureDevelopment of Strategy and Design for CoE (ID: )Current State and HistoryTechnical assessment of SAP landscapes (ID: )Envisioned To-Be StateExpected Benefits – Future State KPI LevelsArchitecture and StandardsProgram ManagementBI Objectives and ScopeStrategy development service for Business Intelligence (ID: )Priorities and AlignmentPaybackBI ApplicationsRoadmap and MilestonesMeasurementEducation / TrainingSupportBI Strategy Best Practice defined as 18 elements in 5 categories. Playbook 2 evaluates level of definition, level of execution and level of impact for each. To elaborate or flush out these areas, we have field services capabilities as well as SAP Value Engineering that can assist you to further define areas which are high-priority to address.
32The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineBI Strategy FoundationGap AnalysisPlaybook 1Playbook 2Playbook 3Playbook 4
33BI Strategy Foundation Recommendation BI Strategy RecommendationProvides abilityto track real-timeperformancethroughdynamicscorecards, orother solutions,allowing usersto postcomments andask questions,so that businessunit leaders cantake action toimproveorganizationalperformance.Determine theappropriateinformation/KPIsto trackIntegrate multiple datasources (if necessary).Determine who needswhat information and inwhat formAutomate the delivery ofthe informationInsightAvailabilityWestruggle withbeing able toquickly and easilylook atperformance,revenue, or costsof marketingprograms at aproduct line, plantlevel, store level,geography, etc.16Combinesdifferentsources of salesinformationsuch as quota,quota achieved,pipeline, tenure,projected closefor next quarterto identifytrends andpotential issues.information that isneeded, and where itresides, if it is available inhouseIf needed, integratesystems to create a moreholistic view ofcustomer/prospect dataIncompleteCustomer DataWe haveincompletecustomer andprospect data(e.g. addresses,phone numbers,addresses,etc.)15Determine the causes ofsales reductions(bottlenecks in salesprocess), and theIntegrate multipleSales VarianceWe need to morequickly be able toidentify what iscausing salesvariances acrossproduct, region,LOB, etc14SalesPerformanceManagementneed deeperinsight into salesperformance, tobe able tounderstand wherewe're gettingtraction, wherewe're not, andwhy soadjustments canbe made13Integratesdifferent typesof informationinto a singleview to performtrend analysisand provide abetterunderstandingof revenuerelationships.Determine what metricsare needed todemonstrate mediathe information, and inwhat form.the information requiredto all who need it.Integrate data sources ifneeded.MediaTrackinginsight into howour mediainvestmentsacross variouschannels areperforming so wecan betterallocate funds.12EXPECTEDBENEFIT /VALUEBUSINESSSOLUTION /BENEFITGAPObjective:Based on prioritized gaps across the organization, understand the business value and benefit of addressing the gaps, and understand the general BI solutions that can solve these business pains.Adds metric and qualitative value information to the identified gapsMaps recommendations that close the gapsProvides understanding the value of addressing unmet business needs which is crucial input to investment decisionsThis Playbook answers questions such as:Which gaps will drive the biggest benefit for the customer?What BI needs are causing the most disruption – and the highest business pain for decision makers?How can / should identified gaps be prioritized for the maximum enterprise impact?OutcomeFeeds into action plan for implementation through one or more BI engagements
34The Road to BI Success with SAP: BI Strategy Playbook 1Playbook 2Playbook 3Playbook 4Current BI Needs Baseline AnalysisBI Strategy & Execution BaselineGap AnalysisBI Strategy FoundationGartner Playbooks [describe each one]Benefits:Easy way to collect inputsEasy way to “crank the content” and output usable strategiesEasy way to consume the outputEasy ways to put the output to use in high-value creating projects
35How To Get Started? Summary Identify High Level Executive SponsorAssess Current Situation (BI Strategy Assessment)BI ScenariosBI Strategy GapPriorities & Decide What BI Scenarios To DeployReinforce Gaps in BI StrategyExecute!What can you get out of this process? Learn best practices approach to formulating a BI Strategy – key recommendations to find a high level executive sponsor that can help mandate change and organize cross-functionally for an enterprise-wide approach and outcome.