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The Road to BI Success: BI Strategy Mohammad Rafi Khan SAP Pakistan.

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Presentation on theme: "The Road to BI Success: BI Strategy Mohammad Rafi Khan SAP Pakistan."— Presentation transcript:

1 The Road to BI Success: BI Strategy Mohammad Rafi Khan SAP Pakistan

2 © SAP AG All rights reserved. / Page 2 What is Business Intelligence (BI)? “Concepts and methods to improve business decision making by using fact-based support systems.” In Simpler terms BI is “Analysis of Data”

3 © SAP AG All rights reserved. / Page 3

4 © SAP AG All rights reserved. / Page 4 Competitive Edge Is Gained With Analytics Source: Competing on Analytics, Thomas Davenport Low Performers High Performers Have significant decision- support/analytical capabilities Value Analytical insights to a very large extent Have above average analytical capability within industry Use analytics across their entire organization High performing companies are 50% more likely to use analytic information strategically

5 © SAP AG All rights reserved. / Page 5 Adoption Rate of Business Intelligence End Users Need a Leap in Performance Number & Scope of KPI’s Required is Expanding 12% “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 01/20/10Pervasive BI: Still a Vision, Not Reality Stephen Swoyer

6 © SAP AG All rights reserved. / Page 6 Five 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 warehouse None of the BI team members can articulate the company business strategy There are no metrics defined to measure progress & success

7 © SAP AG All rights reserved. / Page 7 What is a BI strategy? BI Needs BI Adoption Execution +

8 © SAP AG All rights reserved. / Page 8 What is a BI strategy? 2. BI Needs3. Benefits 4. Information Structure & Technology 5. Organization & Implementation 1. Objectives

9 © SAP AG All rights reserved. / Page 9 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

10 © SAP AG All rights reserved. / Page 10 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 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? 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 Have 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” 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 Have 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?

11 © SAP AG All rights reserved. / Page 11 Examples 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)? What architecture and standards in need to follow? Do I have a BI strategy? What organization structure I need?

12 © SAP AG All rights reserved. / Page 12 The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1Playbook 2Playbook 3Playbook 4 Four step approach to developing a solid BI strategy foundation

13 © SAP AG All rights reserved. / Page 13 You Can Add Pain/Impact Pairs and Additional Information for Context

14 © SAP AG All rights reserved. / Page 14 The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1Playbook 2Playbook 3Playbook 4

15 © SAP AG All rights reserved. / Page 15 Measuring the Business Pains 10 = Highest Pressing 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/High The 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 = Medium This 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/Medium The 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 = Lowest There is little or no ‘pain’ experienced currently. It might be a latent issue that is currently not causing meaningful issues.

16 © SAP AG All rights reserved. / Page 16 Sales 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 Addressing (1-10 where 1=Low, 10=High) S6 Lack 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. S8 Inability 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. S10 Leads 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.

17 © SAP AG All rights reserved. / Page 17 Current BI Needs Baseline Analysis Objective: Create high level summary of BI needs by LOB, and their expected impact if addressed BI Strategy & Execution Baseline Analysis BI Business Needs Identification and Gap Summary by LOB

18 © SAP AG All rights reserved. / Page 18 The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1Playbook 2Playbook 3Playbook 4

19 © SAP AG All rights reserved. / Page 19 Components of a Business Intelligence Strategy ObjectivesBI NeedsBusiness Case Information Structure and Technology Organization and Implementation Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1Playbook 2Playbook 3Playbook 4

20 © SAP AG All rights reserved. / Page 20 BI Strategy Components Rate the degree to which the BI Strategy Components exist in your organization To what degree does it exist? 10 = High This 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/High This Strategy component has been mostly defined. One or two major gaps may exist. 4 to 6 = Medium This 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/Medium This 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 = Low This Strategy component has been not at all defined. Very little planning has been done to define the issue, and no decisions have been made. Definitions of Level of Existence ratings

21 © SAP AG All rights reserved. / Page 21 Background and Objectives Objectives Purpose and Goals Current State and History BI Objectives and Scope The extent to which the history, key reasons and objectives for the BI Strategy have been documented and to what extent the objectives have been executed What led to this point, and why the BI Strategy was (or is being) built Level of Existence measures the extent to which the BI Strategy has been agreed upon and clearly documented Completeness of Execution – Not Applicable

22 © SAP AG All rights reserved. / Page 22 Business Intelligence Needs BI Needs Summary of BI Needs Envisioned To-Be State Priorities and Alignment To what extent the business needs and future state have been defined and executed in terms of business requirements and corresponding KPIs Key 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 documented Completeness of Execution measures the fulfillment of these information needs, including whether the fulfillment targets are being tracked and met

23 © SAP AG All rights reserved. / Page 23 Organization and Implementation Governance Structure Program Management Roadmap and Milestones Measurement Education / Training Support Organization and Implementation To what extent the organization is ready to implement the BI Strategy and is on track to execute The metrics developed as well as the methodologies used to measure the implementation and ongoing success of the BI strategy Level of Existence describes whether metrics have been defined to assess the implementation and ongoing success of the BI strategy Completeness 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

24 © SAP AG All rights reserved. / Page 24 Best 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 BICC BICC as Part of OperationsDistributed BICC COO CIO ICC Department BICC Division 1 Division 2Division 3 Corporate Division 1Division 2Division 3 Finance.… Sales Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007

25 © SAP AG All rights reserved. / Page 25 Best Practice Example: BICC Business, Analytics and IT Skills 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: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007

26 © SAP AG All rights reserved. / Page 26 BI 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 KPIs Usage of BI/ Analytics to Manage Business Processes Availability of Real-time/Predictive Insights into Business Processes % of Employees Receiving Analytical Information % of External Stakeholders Receiving Analytical Information Drilldown Levels % Active Reports Created by Business (as Opposed to by IT) Cost per Report (‘000s) Report Development Cycle Time % ETL Failed IT Spend as % of Revenue BI Spend as % of IT Spend BI Spend per Employee BI Support FTEs per 1000 Users

27 © SAP AG All rights reserved. / Page 27 BI Strategy & Execution Baseline Analysis Objective: Assess existence of BI Strategy, completeness of execution, and impact if completed

28 © SAP AG All rights reserved. / Page 28 The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1Playbook 2Playbook 3Playbook 4

29 © SAP AG All rights reserved. / Page 29 Gap Analysis Business Pains PRIORITIZED GAPS BI Strategy & Execution Gaps Objective: Prioritize Gaps of existing BI needs, and non-existent or not well-executed strategy components

30 © SAP AG All rights reserved. / Page 30 Gap Analysis

31 © SAP AG All rights reserved. / Page 31 BI Strategy Best Practice defined as 18 elements in 5 categories Background and Objectives BI NeedsBenefits Information Structure and Technology Organization and Implementation Purpose and Goals Strategic Vision Workshop for Enterprise BI Summary of BI Needs Strategic Vision Workshop for Enterprise BI Value Proposition of BI Development of SAP implementation business case (ID: ) Information Categories Development of Strategy and Design for IT Architecture (ID: ) Governance Structure Development of Strategy and Design for CoE (ID: ) Current State and History Technical assessment of SAP landscapes (ID: ) Envisioned To-Be State Strategic Vision Workshop for Enterprise BI Expected Benefits – Future State KPI Levels Development of SAP implementation business case (ID: ) Architecture and Standards Development of Strategy and Design for IT Architecture (ID: ) Program Management Development of Strategy and Design for CoE (ID: ) BI Objectives and Scope Strategy development service for Business Intelligence (ID: ) Priorities and Alignment Strategic Vision Workshop for Enterprise BI Payback Development of SAP implementation business case (ID: ) BI Applications Development of Strategy and Design for IT Architecture (ID: ) Roadmap and Milestones Development of Strategy and Design for CoE (ID: ) Measurement Development of Strategy and Design for CoE (ID: ) Education / Training Development of Strategy and Design for CoE (ID: ) Support Development of Strategy and Design for CoE (ID: )

32 © SAP AG All rights reserved. / Page 32 The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation Playbook 1Playbook 2Playbook 3Playbook 4

33 © SAP AG All rights reserved. / Page 33 BI Strategy Foundation Recommendation Objective: 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. BI Strategy Recommendation

34 © SAP AG All rights reserved. / Page 34 The Road to BI Success with SAP: BI Strategy Playbook 1Playbook 2Playbook 3Playbook 4 Current BI Needs Baseline Analysis BI Strategy & Execution Baseline Gap Analysis BI Strategy Foundation

35 © SAP AG All rights reserved. / Page 35 How To Get Started? Summary 1. Identify High Level Executive Sponsor 2. Assess Current Situation (BI Strategy Assessment) a) BI Scenarios b) BI Strategy Gap 3. Priorities & Decide What BI Scenarios To Deploy 4. Reinforce Gaps in BI Strategy 5. Execute!

36 © SAP AG All rights reserved. / Page 36 The Power of BI

37 © SAP AG All rights reserved. / Page 37 Thank you!


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