The Road to BI Success BI Strategy Mohammad

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” © SAP AG 2009. All rights reserved. / Page 2

© SAP AG 2009. All rights reserved. / Page 3

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 Have above average analytical capability within industry Use analytics across their entire organization Source: Competing on Analytics, Thomas Davenport © SAP AG 2009. All rights reserved. / Page 4

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 © SAP AG 2009. All rights reserved. / Page 5

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 © SAP AG 2009. All rights reserved. / Page 6

What is a BI strategy? BI Needs © SAP AG 2009. All rights reserved.

What is a BI strategy? 2. BI Needs 1. Objectives 5. Organization & Implementation

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 © SAP AG 2009. All rights reserved. / Page 9

Organizations Need a BI Strategy How does a BI strategy benefit IT? n Help align with business partners, formalize business needs n n How does a BI strategy benefit a LOB? n 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 n 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. n An enterprise BI approach provides a unified approach by all departments allowing everyone to “speak the same language” © SAP AG 2009. All rights reserved. / Page 10

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? © SAP AG 2009. All rights reserved. / Page 11 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 © SAP AG 2009. All rights reserved. / Page 12

You Can Add Pain/Impact Pairs and Additional Information for Context © SAP AG 2009.

The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis Playbook 1 © SAP AG 2009. All rights reserved. / Page 14 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 © SAP AG 2009. All rights reserved. / Page 18 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 © SAP AG 2009. All rights reserved. / Page 19 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 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 © SAP AG 2009. All rights reserved. / Page 24 Division 3

Best Practice Example: BICC Business, Analytics and IT 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 © SAP AG 2009. All rights reserved. / Page 25

BI Focused Best Practice KPIs n Example of BI focused best practice KPIs include: n % of Strategic KPIs Tracked Using BI Software n % of Employees With Visibility into Strategic KPIs n Usage of BI/ Analytics to Manage Business Processes n Availability of Real-time/Predictive Insights into Business Processes n % of Employees Receiving Analytical Information n % of External Stakeholders Receiving Analytical Information n Drilldown Levels n % Active Reports Created by Business (as Opposed to by IT) n Cost per Report (‘ 000 s) n Report Development Cycle Time n % ETL Failed n IT Spend as % of Revenue n BI Spend as % of IT Spend n BI Spend per Employee n BI Support FTEs per 1000 Users © SAP AG 2009. All rights reserved. / Page 26

The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis Playbook 1 © SAP AG 2009. All rights reserved. / Page 28 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 © SAP AG 2009. All rights reserved. / Page 29

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 • Development of SAP implementation business case (ID: 100049) • Development of Strategy and Design for IT Architecture (ID: 100044) • Development of Strategy and Design for Co. E (ID: 100040) Current State and History Envisioned To-Be State Expected Benefits – Future State KPI Levels Architecture and Standards Program Management • Development of SAP implementation business case (ID: 100049) • Development of Strategy and Design for IT Architecture (ID: 100044) • Technical assessment of SAP landscapes (ID: 100121) • Strategic Vision Workshop for Enterprise BI • Development of Strategy and Design for Co. E (ID: 100040) BI Objectives and Scope Priorities and Alignment Payback BI Applications Roadmap and Milestones • Strategy development service for Business Intelligence (ID: 9001882) • Strategic Vision Workshop for Enterprise BI • Development of SAP implementation business case (ID: 100049) • Development of Strategy and Design for IT Architecture (ID: 100044) • Development of Strategy and Design for Co. E (ID: 100040) Measurement • Development of Strategy and Design for Co. E (ID: 100040) Education / Training • Development of Strategy and Design for Co. E (ID: 100040) Support • Development of Strategy and Design for Co. E (ID: 100040) © SAP AG 2009. All rights reserved. / Page 31

The Road to BI Success with SAP: BI Strategy Current BI Needs Baseline Analysis Playbook 1 © SAP AG 2009. All rights reserved. / Page 32 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. © SAP AG 2009. All rights reserved. / Page 33 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 © SAP AG 2009. All rights reserved. / Page 34 BI Strategy & Execution Baseline Playbook 2 Gap Analysis Playbook 3 BI Strategy Foundation Playbook 4

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! © SAP AG 2009. All rights reserved. / Page 35