Organizing for Agile BI

Short Presentation Title

Organizing for BI and Big Data in the 21st Century

Timo Elliott, SAPSESSION CODE: 0903

2014 SAP SE or an SAP affiliate company. All rights reserved.#AgendaBICC OverviewWhat Changed?Learning From OthersRecommendationsWrap-up

2014 SAP SE or an SAP affiliate company. All rights reserved.#

Business Intelligence Competency Centers

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What is a BICC?A Business Intelligence Competence Center (BICC) is a cross-functional organizational team that has defined tasks, responsibilities, roles and skills for supporting and promoting the effective use of Business Intelligence across an organization Note that Gartner says that Competency Centers have a bad reputation, and now recommends Business Analytics Team


Basic Goal: Make BI More Strategic and Cost-EffectiveReactiveMaintenanceStrategicReactiveMaintenanceStrategic


BICCs Bring Big BenefitsEvery winner of a BI Best Practice Award has a BICC(but beware of correlation and causation)Organizations With A BICC see:Increased usage of Business Intelligence (74%)Increased business user satisfaction (48%)Better understanding of the value of BI (45%)Increased decision-making speed (45%)Decreased staff costs (26%)Decreased software costs (24%) Survey conducted by BetterManagement.com, 2010


The Main Functions and Responsibilities of a BICC

Source: Capgemin BICC Study 2012i


BICC Key Skills

Source: Gartner


What Changed?

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Analytics Is The New Heart of Business


Information Becomes a Profit Center

Great news for analyticsThe challenge for the future


Democracy and Empowerment Has Made Us Unhappy!Consumerization of ITEmployee-driven technologyBusiness-led budgetsCustomer-facing needsMore external dataSpeed of change

Increased business frustrationIncreased IT frustration


Lots of New Techniques and TechnologiesBusinesses struggling to provide coherent approach

Source: Gartner


But BICCs Are Not Driving BI


The Majority of Data Users Need Isnt In The SystemWe found, on average, that 45% of the data business people use resides outside of the enterprise BI environments.An astonishingly miniscule 2% of business decision-makers reported using solely enterprise BI applications.This is undoubtedly connected to 76% of business respondents indicating they continue to resort to spreadsheets and other homegrown BI applications to analyze BI data. Source: Forrester


Enterprise Systems Are Too Slow


Enterprise BI: Too Little Data And Too Hard to Use


Business Users Do Not Fully Trust Enterprise Data


So Users Turn To Their Own Systems40% are using an equal amount or more of homegrown applications


Basic ConflictBI programs have struggled to clearly define roles and responsibilities between IT and business users in a self-service BI delivery model.Few BI programs have been able to find a workable balance between business user empowerment and governance with self-service data discovery.

Top-downBICCBottom-upSelf-service

Trusted informationEfficient reuse

Too report-drivenFlexibilitySpeedExperimentation


Learning From Others

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(1) Scandinavian Consumer Manufacturing Co.21

The company deployed a first Global BI solution around 2000 together with the first SAP implementations


A Change in User Profiles and PatternsOver a period of 7 years the company saw several shifts in its BI user groupThe shifts seem to happen with shorter and shorter intervals 22


Time to Find Out What Was Really HappeningWith the help of external consultants the company ran a small three month project to determine current vs. desiredDid the team really understand the users and their needs? Was the reporting in the central system a true picture of overall reporting activity?Did management have an accurate overview of reporting activities? How should the team involve management in prioritizing and setting strategic directions? Was the team perceived as a help or a bottleneck? Where could the team really make a difference?What were the new requirements in terms of speed, flexibility and simulation?

I can recommend this exercise. I know a lot of departments who work with BI think they know their users, what theyre doing, and what theyre needs are but unless youve done a real investigation of this, I would challenge you that you will find stuff you didnt know existed. BI Manager, Scandinavian Manufacturing Company


Getting the Facts Straight24The project was an eye opener for the management team. The main findings were:


Acting On The ResultsBI Self-Service ApproachMore responsibility to end-usersMore user-friendly toolsVisual discoveryTraining requiredBusiness and analytics skillsDoing visualization is really cool but if you apply the wrong graphs to the data you will not get a very good result. Some of my employees have had to actually take a course in visualization, just to be able to challenge the business.

BI Manager, Scandinavian Manufacturing Company


(2) European Consumer Goods Packaging CompanyHad Created The Perfect Giant of Enterprise BIBusiness Intelligence was:StandardizedRepeatableClearly understood across the companyRegular, well-communicated releasesJointly agreed between Business and ITFacilitates the business areas planning and scheduling of report requestsA steering group of senior managementMajority business leaders with strong representation from ITClear measurements to follow up performanceUsage and user feedback


Past Achievements Dont Guarantee Future SuccessTime to information Business case required to get new reports, and could take six months. Business movers ended up buying their own tools.Multiple iterationsMultiple iterations required, communications degrading. Local BI teams able to be more consultative and collaborative.Lack of accountabilitySome things that should have been done locally were being delegated to central IT. Gut-based decision making was taking over. Good: Agility, happier business users

Bad: Higher costs, no holistic view, no economy of scale, fragmented BI tool landscape, lost business opportunities from not having a global view


Making It AgileHow to make an Ocean liner perform as a speedboat?

Moving to an agile strategyLearn from the business. BI is something that brings up emotions. Found a lot of good practice in the business as well as bad. The unofficial BI was more agile and more cost-efficient: Creating the reports close to the action, leaner process, no handovers, more niche tools that met their requirements.Had to find a new balance between control and autonomy/freedom.


Time for An OverhaulFrom Report StrategySingle version of the truthStandardizedTrustedSecure

To BI StrategySingle version of the truthStandardizedTrustedSecureAgile developmentCost effectiveBusiness driven


Decentralization of Reporting

Data warehouse centralized, but all report development local


Redefinition of Roles, Processes and ToolsDevelopment close to the businessKnows Business/Analytics/ITReport DeveloperPrototypingBusiness-drivenSecure, strong BI governanceIntuitiveFast developmentCover all analytic needsBI ExpertAgile BIUp-to-date suite of tools + pragmatic exceptionsNew RoleNew ProcessNew ToolsNeedSolution


What ChangedBefore: The BI processNow three levels, self-serve, agile BI, IT/cross platformGetting the BI experts: Looked for best fit, then trainedSome areas didnt feel they had the competencesHypercare" handholding on first reportsFirst report more expensive, but now just a few days instead of four to five weeks after six months, saving of 40% in the development timeNew four-step processInitiate, mock up, finalize, industrialize two week cyclesCorporate wikipedia for documentationGuide towards solutions rather than tools


AdviceIf your enterprise BI isn't agile, unofficial BI platforms will grow like mushrooms in the darkLearn from the business There is a lot of good practice that should be adoptedReport development is highly iterative traditional IT dev processes didnt workBuild a broad BI competence Turning business information into insight should be considered a core competenceA fragmented BI tool strategy will add cost and jeopardize the holistic view of BIThe business will always require new capability stay current! Be two years ahead of the business, we were two years behindIt will take time to build BI experts Start now


(3) Large UK RetailerSituationBeloved UK institution but beleagueredTop-to-bottom control of productsLots of information silos, tools Lots of institutional knowledgeChange AheadNeeded omni-channel approach/productsRequired new integrated, business-focused analytics approachNew executive team and digital native IT


Launched New Analytics ApproachBig kick-off meetingAnalysts, IT, execs, outside expertsAll areas of the businessTool independentLaunched new service bureau approachStrong executive supportAnalytics driven locally, best-practice shared centrallyOwn the problem, not the solution (Can we access this tool, please?)Collection of agile servicesCommunity-driven, using internal social networking


Decision PodsFully interactive, data-based screensQuestions answered there and then, no leaving the meeting until a decision is madeBased on the experiences of a large US retailer


Recommendations

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Its All About the RelationshipAny CIOs dream is to have a business partner that really embraces technology and wants to do really cool stuff with you. Someone who has a vision, but doesnt come to you and say, We want you to use this product to do this. They come to you with a problem and they want to work together to figure out how to solve it.

Instead of a scenario in which Business and IT play separate, traditional provider-versus-user roles everybody has to combine efforts to jointly explore and learn and everybody has to compromise!


Build and Nurture a CommunityRegular face-to-face meetingsBring people together across silos: IT, Analysts, Business Leaders, ExecsPresentations of successes best practicesInvite external speakersVirtual communitiesLeverage internal social tools for people to share informationCommunity-driven BI contentCommunity self-policingAct as BICC eyes and ears to discover projects, opportunitiesSocial mechanisms to ensure the right behaviorsEnsure support at all levelsNot just executives middle and users


Move to Agile BIForrester, 2014: Agile BI is an approach that combines processes, methodologies, organizational structure, tools, and technologies that enable strategic, tactical, and operational decision-makers to be more flexible and more responsive to the fast pace of customer, business, and regulatory requirements changes. First and foremost, business-driven agile enterprise BI is about flexible organizational structures


Inspiration From The Agile ManifestoThe highest priority is to satisfy the customer through early and continuous delivery of analyticsWelcome changing requirements, even late in development. Agile processes harness change for competitive advantage.Deliver working projects frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.Business people and analytics staff must work together daily throughout the project.Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.The most efficient and effective method of conveying information to and within a development team is face-to-face conversation.

Delivered, used analytics is the primary measure of progress.Agile processes promote sustainable development. The sponsors, developers and users should be able to maintain a constant pace indefinitely.Continuous attention to technical excellence and good design enhances agility.Simplicity the art of maximizing the amount of work not done is essential.The best architectures, requirements and designs emerge from self-organizing teams.At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly.

Adapted from: http://agilemanifesto.org/


Reorganize and RefocusAvoid worst of both worlds approach!Move to federated approachFrom gatekeeper to air traffic controllerBring shadow BI under umbrella of BICC but retaining local linksCo-locate central staff in business units whenever possibleInvest in appropriate tools and skillsLess reporting, more explorationAgency philosophyBusiness chooses you because you are the best option, not because they have toLeverage unique knowledge of cross-functional opportunities


Offer Key ServicesData BureauOne-stop shopping for data, internal, external, or wrangledTools BureauExpert recommendations of best technologies to use, whenSandbox EnvironmentsEnvironments that let business experiment on their ownInnovation OpportunitiesWorkshops (e.g., Design Thinking) to uncover new opportunitiesAnalysis ValidationTrust, but verify


Data Driving Licenses?

Source: Gartner


Support The BI Lifecycle

Source: Gartner


Remember to Communicate!Effective communication is the bedrock of a successful BICCInvolves skills that arent always part of the staff hiring processSell the sizzleUse dashboards, scorecards, maps and other visual applications/toolsAnalytics is white hot, so sell itCelebrate successPick a first initiative and make it a business successIdentify evangelists from the initiative and have them sell the success


Wrap-up

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Useful Resources

Barc Collective Insight white paperSAP BICC Playlist on YouTube: LinkSAP BI Self Assessment : www.sap.com/bistrategySAP BI Strategy Playlist on YouTube: Link

BI News: www.sap.com/BINews

Blogs on BI Strategyhttp://scn.sap.com/docs/DOC-30479http://scn.sap.com/docs/DOC-30480http://scn.sap.com/community/business-intelligence/blog/2012/12/07/bi-strategy-bicc-a-key-element-to-your-bi-programhttp://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competency-centers-take-center-stage-againhttp://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-program-define-track-and-measure-success/


7 Key Points To Take Home Old approaches are no longer enoughSelf-service BI is a wonderful business opportunityIf done right, can dramatically improve business agility and IT/Business alignmentBut it requires new cultures and ways of workingYoure no longer in charge and everybody has to compromiseProvide what the business needs, not necessarily what they wantService-oriented approach, but the customer is not always rightCommunity is the essential pillarNo one person or team can do this alone build momentum and listen to feedbackLook for opportunities to simplifyIts not about technology, but the right technology can help agilityKeep up momentum and successLook out for teaching opportunities, and market success widely and often


Thank you!Timo Elliott, SAP

[email protected]: @timoelliottBlog: timoelliott.com

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SESSION CODE: 0903

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Data & Analytics

Organizing for Agile BI