Transcript Title of the presentation This is the subtitle

The Road to BI Success: BI Strategy
Mohammad Rafi Khan
SAP Pakistan
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”
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Competitive Edge Is Gained With Analytics
High performing companies are 50% more likely
to use analytic information strategically
High Performers
Low Performers
Have significant decisionsupport/analytical capabilities
Value Analytical insights to a
very large extent
65%
23%
36%
8%
Have above average analytical
capability within industry
Use analytics across their
entire organization
Source: Competing on Analytics, Thomas Davenport
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77%
33%
40%
23%
Adoption 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 2009. 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 01/20/10
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Five Signs that a Company Does Not 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
None of the BI team members can articulate the
company business strategy
There are no metrics defined to measure progress &
success
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What is a BI strategy?
BI Needs
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+
BI
Adoption
Execution
What is a BI strategy?
2. BI Needs
1. Objectives
5. Organization
&
Implementation
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3. Benefits
4. Information
Structure &
Technology
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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Organizations Need a BI Strategy
How does a BI strategy benefit IT?

Help align with business partners,
formalize business needs


How does a BI strategy benefit a LOB?

Create prioritized roadmap for the
enterprise of short, medium and long
term projects aligned with strategic
business goals delivering
measurable results
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

Creating business justification for
an enterprise scope and end-to-end
BI including data management
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”
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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)?
Do I have a BI
strategy?
What
architecture
and standards
in need to
follow?
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What
organization
structure I
need?
The Road to BI Success with SAP: BI Strategy
Current BI
Needs Baseline
Analysis
Playbook 1
BI Strategy &
Execution
Baseline
Playbook 2
Gap Analysis
Playbook 3
BI Strategy
Foundation
Playbook 4
Four step approach to developing a solid BI strategy foundation
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You Can Add Pain/Impact Pairs and
Additional Information for Context
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The Road to BI Success with SAP: BI Strategy
Current BI
Needs Baseline
Analysis
Playbook 1
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BI Strategy &
Execution
Baseline
Playbook 2
Gap Analysis
Playbook 3
BI Strategy
Foundation
Playbook 4
The Road to BI Success with SAP: BI Strategy
Current BI
Needs Baseline
Analysis
Playbook 1
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BI Strategy &
Execution
Baseline
Playbook 2
Gap Analysis
Playbook 3
BI Strategy
Foundation
Playbook 4
Components of a Business Intelligence
Strategy
BI Strategy &
Execution
Baseline
Current BI
Needs Baseline
Analysis
Playbook 1
Objectives
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Playbook 2
BI Needs
Gap Analysis
Playbook 3
Business Case
BI Strategy
Foundation
Playbook 4
Information
Structure and
Technology
Organization
and
Implementation
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 Department
Virtual BICC
CIO
BICC
Department
Finance
Sales
.…
ICC
BICC
BICC as Part of Operations
Distributed BICC
Corporate
COO
Division 1
Division 2
BICC
Division 1
Division 2
Division 3
Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
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Division 3
Best Practice Example:
BICC Business, Analytics and IT Skills
Business
Skills
Business Needs
Organization and
Processes
Define
BI Vision
Manage
Programs
Develop
User Skills
Business Needs
Statistical and
Process Skills
Analytic
Skills
Control
Funding
BICC
Organize
Methodology
Leadership
Establish
Standards
Build Technology
Blueprint
Governance,
Administration
Tools, Infrastructure,
Applications, Data
IT
Skills
Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
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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
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The Road to BI Success with SAP: BI Strategy
Current BI
Needs Baseline
Analysis
Playbook 1
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BI Strategy &
Execution
Baseline
Playbook 2
Gap Analysis
Playbook 3
BI Strategy
Foundation
Playbook 4
Gap Analysis
Business Pains
PRIORITIZED GAPS
Objective:
Prioritize Gaps of existing
BI needs, and non-existent
or not well-executed
strategy components
BI Strategy & Execution Gaps
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BI Strategy Best Practice defined as 18
elements in 5 categories
Background and
Objectives
BI Needs
Benefits
Information Structure
and Technology
Organization and
Implementation
Purpose and Goals
Summary of BI Needs
Value Proposition of BI
Information Categories
Governance Structure
• Strategic Vision Workshop
for Enterprise BI
Current State and History
• Technical assessment of SAP
landscapes (ID: 100121)
BI Objectives and Scope
• Strategy development
service for Business
Intelligence (ID: 9001882)
• Strategic Vision Workshop
for Enterprise BI
Envisioned To-Be State
• Strategic Vision Workshop
for Enterprise BI
Priorities and Alignment
• Strategic Vision Workshop
for Enterprise BI
• Development of SAP
implementation business
case (ID: 100049)
Expected Benefits –
Future State KPI Levels
• Development of SAP
implementation business
case (ID: 100049)
Payback
• Development of SAP
implementation business
case (ID: 100049)
• Development of Strategy
and Design for IT
Architecture (ID: 100044)
Architecture and
Standards
• Development of Strategy
and Design for IT
Architecture (ID: 100044)
BI Applications
• Development of Strategy
and Design for IT
Architecture (ID: 100044)
• Development of Strategy
and Design for CoE (ID:
100040)
Program Management
• Development of Strategy
and Design for CoE (ID:
100040)
Roadmap and Milestones
• Development of Strategy
and Design for CoE (ID:
100040)
Measurement
• Development of Strategy
and Design for CoE (ID:
100040)
Education / Training
• Development of Strategy
and Design for CoE (ID:
100040)
Support
• Development of Strategy
and Design for CoE (ID:
100040)
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The Road to BI Success with SAP: BI Strategy
Current BI
Needs Baseline
Analysis
Playbook 1
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BI Strategy &
Execution
Baseline
Playbook 2
Gap Analysis
Playbook 3
BI Strategy
Foundation
Playbook 4
BI Strategy Foundation Recommendation
BI Strategy Recommendation
GAP
BUSINESS
SOLUTION /
BENEFIT
EXPECTED
BENEFIT /
VALUE
12
Media
Performance
Tracking - We
need deeper
insight into how
our media
investments
across various
channels are
performing so we
can better
allocate funds.

Determine what metrics
are needed to
demonstrate media
performance

Determine who needs
the information, and in
what form.

Automate the delivery of
the information required
to all who need it.

Integrate data sources if
needed.
Integrates
different types
of information
into a single
view to perform
trend analysis
and provide a
better
understanding
of revenue
relationships.
13
Sales
Performance
Management - We
need deeper
insight into sales
performance, to
be able to
understand where
we're getting
traction, where
we're not, and
why so
adjustments can
be made

Determine the causes of
sales reductions
(bottlenecks in sales
process), and the
appropriate
information/ KPIs to track
 Integrate multiple
sources (if necessary).

Determine who needs
what information and in
what form

Automate the delivery of
the information
Combines
different
sources of sales
information
such as quota,
quota achieved,
pipeline, tenure,
projected close
for next quarter
to identify
trends and
potential issues.
14
Sales Variance We need to more
quickly be able to
identify what is
causing sales
variances across
product, region,
LOB, etc

Determine the causes of
sales reductions
(bottlenecks in sales
process), and the
appropriate
information/ KPIs to track
 Integrate multiple
sources (if necessary).

Determine who needs
what information and in
what form

Automate the delivery of
the information
Combines
different
sources of sales
information
such as quota,
quota achieved,
pipeline, tenure,
projected close
for next quarter
to identify
trends and
potential issues.
15
Incomplete
Customer Data We have
incomplete
customer and
prospect data
(e.g. addresses,
phone numbers,
email addresses,
etc.)

Determine the
information that is
needed, and where it
resides, if it is available in
house

If needed, integrate
systems to create a more
holistic view of
customer/prospect data
Combines
different
sources of sales
information
such as quota,
quota achieved,
pipeline, tenure,
projected close
for next quarter
to identify
trends and
potential issues.
16
Insight
Availability - We
struggle with
being able to
quickly and easily
look at
performance,
revenue, or costs
of marketing
programs at a
product line, plant
level, store level,
geography, etc.

Provides ability
to track real time
performance
through
dynamic
scorecards, or
other solutions,
allowing users
to post
comments and
ask questions,
so that business
unit leaders can
take action to
improve
organizational
performance.
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Determine the
appropriate
information/ KPIs to track

Integrate multiple data
sources (if necessary).

Determine who needs
what information and in
what form

Automate the delivery of
the information
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.
The Road to BI Success with SAP: BI Strategy
Current BI
Needs Baseline
Analysis
Playbook 1
BI Strategy &
Execution
Baseline
Playbook 2
BI Strategy
Foundation
Gap Analysis
Playbook 3
Playbook 4
GAP
12
13
14
BUSINESS SOLUTION / BENEFIT
EXPECTED
BENEFIT /
VALUE
Media Performance
Tracking - We need
deeper insight into how
our media investments
across various channels
are performing so we can
better allocate funds.
Determine what metrics are needed to
demonstrate media performance
Determine who needs the information, and in
what form.
Automate the delivery of the information
required to all who need it.
Integrate data sources if needed.
Integrates different types
of information into a
single view to perform
trend analysis and
provide a better
understanding of revenue
relationships.
Sales Performance
Management - We need
deeper insight into sales
performance, to be able
to understand where
we're getting traction,
where we're not, and why
so adjustments can be
made

Determine the causes of sales reductions
(bottlenecks in sales process), and the
appropriate information/KPIs to track
Integrate multiple sources (if necessary).
Determine who needs what information
and in what form
Automate the delivery of the information
Combines different
sources of sales
information such as
quota, quota achieved,
pipeline, tenure,
projected close for next
quarter to identify trends
and potential issues.
Sales Variance - We need
to more quickly be able to
identify what is causing
sales variances across
product, region, LOB, etc

Determine the causes of sales reductions
(bottlenecks in sales process), and the
appropriate information/KPIs to track
Integrate multiple sources (if necessary).
Determine who needs what information
and in what form
Automate the delivery of the information
Combines different
sources of sales
information such as
quota, quota achieved,
pipeline, tenure,
projected close for next
quarter to identify trends
and potential issues.






© SAP AG 2009. All rights reserved. / Page 34
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!
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The Power of BI
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Thank you!
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