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Use this title slide only with an image Optimising for BI and Big Data in the 21st Century Timo Elliott SAP

SAPInsider Singapore: Optimizing Your BI Organization for Agile Analytics

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Presentation at SAPInsider Singapore 2014, "Optimising for BI and Big Data in the 21st Century"

Text of SAPInsider Singapore: Optimizing Your BI Organization for Agile Analytics

  • 1. Optimising for BI and Big Data in the21st CenturyTimo ElliottSAP

2. AgendaBICC OverviewWhat Changed?Learning from OthersRecommendationsWrap-up 2014 SAP SE or an SAP affiliate company. All rights reserved. 1 3. 2Business Intelligence Competency Centers 4. What Is a BICC?A Business Intelligence Competence Center (BICC)is a cross-functional organizational team that hasdefined tasks, responsibilities, roles, and skillsfor supporting and promoting the effective use ofBusiness Intelligence across an organizationNote that Gartner says that Competency Centers have a bad reputation,and now recommends Business Analytics Team 2014 SAP SE or an SAP affiliate company. All rights reserved. 3 5. Basic Goal: Make BI More Strategic and Cost Effective 2014 SAP SE or an SAP affiliate company. All rights reserved. 4 6. 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 2014 SAP SE or an SAP affiliate company. All rights reserved. 5 7. The Main Functions and Responsibilities of a BICCSource: Capgemini BICC Study 2012i 2014 SAP SE or an SAP affiliate company. All rights reserved. 6 8. BICC Key SkillsSource: Gartner 2014 SAP SE or an SAP affiliate company. All rights reserved. 7 9. 8What Changed? 2014 SAP SE or an SAP affiliate company. All rights reserved. 8 10. Analytics Is the New Heart of Business 2014 SAP SE or an SAP affiliate company. All rights reserved. 9 11. Information Becomes a Profit CenterGreat news foranalyticsThe challenge forthe future 2014 SAP SE or an SAP affiliate company. All rights reserved. 10 12. Democracy and Empowerment Have Made Us Unhappy!Consumerization of ITEmployee-driven technologyBusiness-led budgetsCustomer-facing needsMore external dataSpeed of changeIncreased business frustrationIncreased IT frustration 2014 SAP SE or an SAP affiliate company. All rights reserved. 11 13. Lots of New Techniques and TechnologiesBusinesses struggling to provide coherent approachSource: Gartner 2014 SAP SE or an SAP affiliate company. All rights reserved. 12 14. But BICCs Are Not Driving BI 2014 SAP SE or an SAP affiliate company. All rights reserved. 13 15. The Majority of Data Users Need Isnt in the SystemWe found, on average, that 45% of thedata business people use resides outsideof the enterprise BI environments.An astonishingly miniscule 2% ofbusiness decision-makers reportedusing solely enterprise BI applications.This is undoubtedly connected to 76% ofbusiness respondents indicating theycontinue to resort to spreadsheets andother homegrown BI applications toanalyze BI data. Source: Forrester45%55%In enterprise systemsNot in enterprise system 2014 SAP SE or an SAP affiliate company. All rights reserved. 14 16. Enterprise Systems Are Too Slow 2014 SAP SE or an SAP affiliate company. All rights reserved. 15 17. Enterprise BI: Too Little Data and Too Hard to Use 2014 SAP SE or an SAP affiliate company. All rights reserved. 16 18. Business Users Do Not Fully Trust Enterprise Data 2014 SAP SE or an SAP affiliate company. All rights reserved. 17 19. So Users Turn to Their Own Systems40% are using an equalamount or more ofhomegrown applications 2014 SAP SE or an SAP affiliate company. All rights reserved. 18 20. Basic ConflictBI programs have struggledto clearly define roles andresponsibilities between ITand business users in a self-serviceBI delivery model.Few BI programs have beenable to find a workablebalance between businessuser empowerment andgovernance with self-servicedata discovery.Top-downBICCBottom-upSelf-serviceTrusted informationEfficient reuseToo report-drivenFlexibilitySpeedExperimentation 2014 SAP SE or an SAP affiliate company. All rights reserved. 19 21. 20Learning from Others 22. (1) Scandinavian Consumer Manufacturing Co.The company deployed a first Global BI solution around 2000 together with the first SAPimplementations2000-2005 2005-2010 2011No BI strategy No real BI strategy IT left to prioritize Multiple versions ofthe truthOne truth CompanyPerformance model Standard reporting One truth Anchored in financeFuture vision Extend reporting tomore users Redefine role More end-user flexibility 2014 SAP SE or an SAP affiliate company. All rights reserved. 21 23. 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 System Expert Favored Excel as front end Could live with poorperformance Primarily used data fromSAP General analyst Wanted to use web reportsas well Interested in data fromseveral sources Demanded betterperformance Expecting BI self service Wants information onmobile devices Not scared of technology,uses the right tool for thejob 2014 SAP SE or an SAP affiliate company. All rights reserved. 22 24. Time to Find Out What Was Really HappeningWith the help of external consultants the company ran a small three monthproject to determine current vs. desired Did 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 strategicdirections? 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 BIthink they know their users, what theyre doing, and what theyre needs are butunless youve done a real investigation of this, I would challenge you that you willfind stuff you didnt know existed.BI Manager, Scandinavian Manufacturing Company 2014 SAP SE or an SAP affiliate company. All rights reserved. 23 25. Getting the Facts StraightThe project was an eye opener for the management team. The main findings were:ToolsMore user-friendlytoolsNeed a widervariety of toolsDataData is toohard tounderstandNeed access tonon ERP datain reportingFlexibilityNeed to beable to createown reportsStandardreports havelimited valueOwnershipSome hadinvested in ownsystemsAll preferred tobe in a globalsystem 2014 SAP SE or an SAP affiliate company. All rights reserved. 24 26. 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 datayou will not get a very good result. Some of my employees have had to actuallytake a course in visualization, just to be able to challenge the business.BI Manager, Scandinavian Manufacturing Company 2014 SAP SE or an SAP affiliate company. All rights reserved. 25 27. (2) European Consumer Goods Packaging CompanyHad Created The Perfect Giant of Enterprise BIBusiness Intelligence was: Standardized Repeatable Clearly understood across the companyRegular, well-communicated releases Jointly agreed between Business and IT Facilitates the business areas planning andscheduling of report requestsA steering group of senior management Majority business leaders with strongrepresentation from ITClear measurements to follow up performance Usage and user feedback 2014 SAP SE or an SAP affiliate company. All rights reserved. 26 28. Past Achievements Dont Guarantee Future SuccessTime to informationBusiness case required to get new reports, and could take six months. Businessmovers ended up buying their own tools.Multiple iterationsMultiple iterations required, communications degrading. Local BI teams able to bemore 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 usersBad: Higher costs, no holistic view, no economy of scale, fragmented BI toollandscape, lost business opportunities from not having a global view 2014 SAP SE or an SAP affiliate company. All rights reserved. 27 29. Making It AgileHow to make an Ocean liner perform as aspeedboat?Moving to an agile strategyLearn from the business. BI is something thatbrings up emotions. Found a lot of good practice inthe 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 toolsthat met their requirements.Had to find a new balance between control andautonomy/freedom. 2014 SAP SE or an SAP affiliate company. All rights reserved. 28 30. Time for an Overhaul From Report StrategySingle version of the truthStandardizedTrustedSecureTo BI StrategySingle version of the truthStandardizedTrustedSecureAgile developmentCost effectiveBusiness driven 2014 SAP SE or an SAP affiliate company. All rights reserved. 29 31. Decentralization of ReportingData warehouse centralized, but all report development local 2014 SAP SE or an SAP affiliate company. All rights reserved. 30 32. Redefinition of Roles, Processes, and ToolsNeed SolutionDevelopment close to the businessKnows Business/Analytics/ITReport DeveloperPrototypingBusiness-drivenSecure, strong BI governanceIntuitiveFast developmentCover all analytic needsBI ExpertAgile BIUp-to-date suite oftools + pragmaticexceptionsNew RoleNewProcessNew Tools 2014 SAP SE or an SAP affiliate company. All rights reserved. 31 33. 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 2014 SAP SE or an SAP affiliate company. All rights reserved. 32 34. Advice If your enterprise BI isnt agile, unofficial BI platforms will grow like mushrooms inthe dark Learn from the business There is a lot of good practice that should be adopted Report development is highly iterative traditional IT dev processes didnt work Build a broad BI competence Turning business information into insight shouldbe considered a core competence A fragmented BI tool strategy will add cost and jeopardize the holistic view of BI The business will always require new capability stay current! Be two yearsahead of the business, we were two years behind It will take time to build BI experts Start now 2014 SAP SE or an SAP affiliate company. All rights reserved. 33 35. (3) Large UK RetailerSituationBeloved UK institution but beleagueredTop-to-bottom control of productsLots of information silos, toolsLots of institutional knowledgeChange AheadNeeded omni-channel approach/productsRequired new integrated, business-focused analytics approachNew executive team and digital native IT 2014 SAP SE or an SAP affiliate company. All rights reserved. 34 36. 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 2014 SAP SE or an SAP affiliate company. All rights reserved. 35 37. Decision PodsFully interactive,data-based screensQuestions answeredthere and then, noleaving the meetinguntil a decision ismadeBased on theexperiences of alarge US retailer 2014 SAP SE or an SAP affiliate company. All rights reserved. 36 38. 37Recommendations 39. Its All About the RelationshipAny CIOs dream is to have a business partner that really embraces technology andwants to do really cool stuff with you. Someone who has a vision, but doesnt cometo you and say, We want you to use this product to do this. They come to you witha problem and they want to work together to figure out how to solve it.Instead of a scenario in which Businessand IT play separate, traditional provider-versus-user roles everybody has tocombine efforts to jointly explore and learn and everybody has to compromise! 2014 SAP SE or an SAP affiliate company. All rights reserved. 38 40. Build and Nurture a CommunityRegular face-to-face meetings Bring people together across silos: IT, Analysts, Business Leaders, Execs Presentations of successes best practices Invite external speakersVirtual communities Leverage internal social tools for people to share information Community-driven BI contentCommunity self-policing Act as BICC eyes and ears to discover projects,opportunities Social mechanisms to ensure the right behaviorsEnsure support at all levels Not just executives middle and users 2014 SAP SE or an SAP affiliate company. All rights reserved. 39 41. Move to Agile BIForrester, 2014: Agile BI is an approach that combines processes, methodologies,organizational structure, tools, and technologies that enable strategic, tactical, andoperational decision-makers to be more flexible and more responsive to the fastpace of customer, business, and regulatory requirements changes.First and foremost, business-driven agile enterprise BI is about flexibleorganizational structures 2014 SAP SE or an SAP affiliate company. All rights reserved. 40 42. Inspiration from the Agile ManifestoThe highest priority is to satisfy the customerthrough early and continuous delivery ofanalyticsWelcome changing requirements, even late indevelopment. Agile processes harness changefor competitive advantage.Deliver working projects frequently, from acouple of weeks to a couple of months, with apreference to the shorter timescale.Business people and analytics staff must worktogether daily throughout the project.Build projects around motivated individuals.Give them the environment and support theyneed, and trust them to get the job done.The most efficient and effective method ofconveying information to and within adevelopment team is face-to-face conversation.Delivered, used analytics is the primary measureof progress.Agile processes promote sustainabledevelopment. The sponsors, developers andusers should be able to maintain a constant paceindefinitely.Continuous attention to technical excellence andgood design enhances agility.Simplicity the art of maximizing the amount ofwork not done is essential.The best architectures, requirements anddesigns emerge from self-organizing teams.At regular intervals, the team reflects on how tobecome more effective, then tunes and adjustsits behavior accordingly.Adapted from: http://agilemanifesto.org/ 2014 SAP SE or an SAP affiliate company. All rights reserved. 41 43. 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 2014 SAP SE or an SAP affiliate company. All rights reserved. 42 44. 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 2014 SAP SE or an SAP affiliate company. All rights reserved. 43 45. Data Driving Licenses?Source: Gartner 2014 SAP SE or an SAP affiliate company. All rights reserved. 44 46. Support the BI LifecycleSource: Gartner 2014 SAP SE or an SAP affiliate company. All rights reserved. 45 47. 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 2014 SAP SE or an SAP affiliate company. All rights reserved. 46 48. 47Wrap-Up 49. Where to Find More InformationBarc Collective Insight white paperSAP BICC Playlist on YouTube: LinkSAP BI Self Assessment : www.sap.com/bistrategySAP BI Strategy Playlist on YouTube: LinkBI News: www.sap.com/BINewsBlogs 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/ 2014 SAP SE or an SAP affiliate company. All rights reserved. 48 50. 7 Key Points to Take Home1. Old approaches are no longer enough2. Self-service BI is a wonderful business opportunityIf done right, can dramatically improve business agility and IT/Business alignment3. But it requires new cultures and ways of workingYoure no longer in charge and everybody has to compromise4. Provide what the business needs, not necessarily what they wantService-oriented approach, but the customer is not always right5. Community is the essential pillarNo one person or team can do this alone build momentum and listen to feedback6. Look for opportunities to simplifyIts not about technology, but the right technology can help agility7. Keep up momentum and successLook out for teaching opportunities, and market success widely and often 2014 SAP SE or an SAP affiliate company. All rights reserved. 49 51. 50Thank you!Timo Elliott, [email protected]: @timoelliottBlog: timoelliott.com 52. 2014 SAP SE or an SAP affiliate company.All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or anSAP affiliate company.SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE(or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additionaltrademark information and notices.Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.National product specifications may vary.These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE orSAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products andservices, if any. Nothing herein should be construed as constituting an additional warranty.In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliatedcompanies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may bechanged by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertaintiesthat could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 2014 SAP SE or an SAP affiliate company. All rights reserved. 51