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The Big Trends in BI Competency CentersTimo Elliott, Innovation Evangelist, SAPMarch 2016
@timoelliott
Agenda
• The Brave New World• What Changed?• Supporting “Modern BI”• The New BICC• Conclusion
@timoelliott
Brave New World
First, Some Bad News: The BICC is (Officially) Dead
“Beautiful plumage!”
“When Gartner started to cover BICC as a trend over 10 years ago, it turned out to be one of the biggest success factors for BI programs….
But: “all good things must come to an end”
The BICC is Dead
Don’t Worry, It Turns Out BI is Also Dead…
Are You a BI-nosaur?
@timoelliott
Are You an “IT-Centric Laggard”?!
@timoelliott
Latest Gartner Magic Quadrant….
Mentions the word “users”
148x
Mentions of “users”
148
@timoelliott
What Changed?
What Changed?
New technologies mean new opportunities and new ways of working@timoelliott
“I Can Drive Myself, Thanks…”
@timoelliott
Analytics Took Over the World
Analytics is now the hottest trend in business, not just in IT
Business people now want to have more access, and more control
@timoelliott
The Rise of the Chief Innovation Officer and Chief Data Officer
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The Future of the CIO
Chief Innovation Officers
Chief Infrastructure Officers
BICCs (Continue To!) Bring Big Benefits
Survey conducted by BetterManagement.com
Decreased software costs
Decreased staff costs
Better understanding of the value of BI
Increased decision-making speed
Increased business user satisfaction
Increased usage of Business Intelligence
24%
26%
45%
45%
48%
74%
Organizations with a BICC see the following benefits:
@timoelliott
But BICCs Haven’t Actually Been Driving BI
Functions Driving Business Intelligence
BICC
Marketing
Strategic Planning
Sales
IT
Operations
Finance
Executive management
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
@timoelliott
Who Drives Business Intelligence?
Executives Finance
OperationsIT
SalesStrategic Planning
Mktg
BICC
BI Success…
BI initiatives described as "successful" dropped from 41% to 35% in 2015
Source: TechTaget
The Penetration of BI Remains Low
“Close to 40% of organizations report fewer than 10% of employees using BI”
Techtarget, 2015
Do People Actually USE Data?
Room for improvement…
@timoelliott
Enterprise systems are too slow
31% wait days or weeks for an average BI request
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Enterprise BI: too little data, and too hard to use
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Business Users Do Not Fully Trust Enterprise Data
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So users turn to their own systems…
40% are using an equal amount or more of homegrown applications
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Hubris
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New Conflicts
Internally-orientedCosts
GovernanceEfficient reuse
Customer-facingOpportunitiesFlexibility and speedExperimentation
IT Business
@timoelliott
“Do business people see you as Uber? Or the taxi company?”
Supporting Modern BI
Data-Driven Approach
Push:• From IT• Data-Driven• Data to Insight• Technology-Centric
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Value-Driven Approach
Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric
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Combination Approach
Push:• From IT• Data-Driven• Data to Insight• Technology-Centric
Pull:• From LOB• Outcome-Driven• Insight to Data• Use-Case-Centric
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You Need Both of These
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“Modern BI”
Source: Gartner
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“Modern BI”
DATA Self-servicedata preparation
Structured / Unstructured
Internal / External
Batch / Streaming
Integration, blending
Cleansing, augmentation
Agile modeling
BI DBColumnar
In-memory
NoSQL
Self-servicedata analysis
Data discovery
Visual exploration
Dashboards / storytelling
Agile Iteration
OptionalData warehouse
Semantic layers
OLAP Cubes
End users (and IT)
IT
“…currently dominated by IT-centric platforms, but many will be replaced by modern BI platforms over time
“new market guide since mature market, not much net new buying or differentiation”
What Happened to “Traditional BI”?
@timoelliott
Systems of Insight
“Earlier-Generation BI Is No Longer Enough”• Earlier-generation BI can’t keep up in the age
of the customer. • Agile BI and big data are the building blocks of
systems of insight
Source: Forrester Research, Inc.
@timoelliott
We Still Need Industrial Scale BI and Reporting
Where did that number come from?!
Why all these information
silos?!
What about security and
administration?!
@timoelliott
Traditional, IT-Led BI still makes up 75% of BI Revenue
"About $12Bn of the $16Bn BI revenue is no longer on the quadrant”
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Change Is Good — You Go First
IT people are open to the idea — but in no hurry…
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The Role of Central IT in Modern BICCs?
Everything in moderation (doh!)
@timoelliott
Top BI Functionality
Query & Analysis
Data Discovery
Alerts
Dashboards
Reports
Spreadsheets
18%
19%
25%
35%
53%
69%
Source: InformationWeek BI Survey 2015
To what extent are the following technologies used to share analytic and BI insights in your organization?Used extensively:
Source: InformationWeek BI Survey 2015@timoelliott
The New BICC
So What Replaces BICCs? (According to Gartner)
Long live the“Analytic Community of
Excellence”!
@timoelliott
Updating the Traditional BICC to Include Community
A Business Intelligence Competency 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
* AKA Analytics, Big Data, Data Science, etc.
@timoelliott
It’s About Culture Change First and Foremost
From Power to EmpowerFrom Collection to ConnectionFrom Control to Trust
New BICCs are about providing good governance and encouraging best practice rather than providing reports and analytics
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From Power to Empower
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Start Asking Questions
• Does you really understand the users and their needs?
• Is the reporting in the central system a true picture of overall reporting activity?
• Do management have an accurate overview of reporting activities?
• How should you involve management in prioritizing and setting strategic directions?
• Are you perceived as a help or a bottleneck?
• Where could you really make a difference?
• What are the new requirements in terms of speed, flexibility, and simulation?
@timoelliott
Consider an External Audit
“I can recommend this exercise. I know a lot of departments who work with BI think they know their users, what they’re doing, and what their needs are – but unless you’ve done a real investigation of this, I would challenge you that you will find stuff you didn’t know existed.”
– Anders Reinhardt, Global BI Manager, Velux
@timoelliott
The Traditional BICC Setup
Business Intelligence that is:• Standardized• Repeatable• Clearly understood across the company
Regular, well-communicated releases• Jointly agreed between Business and IT• Facilitates the business areas planning and
scheduling of report requests
A steering group of senior management• Majority business leaders with strong
representation from IT
Clear measurements to follow up performance• Usage and user feedback
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“A new extension? That’ll cost ya, guv…”@timoelliott
“And would you like some fresh reports with that, Sir?”@timoelliott
“You fly the planes — we just make sure you don’t crash into each other”
@timoelliott
Embrace Shadow IT
Don’t fight back—be a co-conspirator…@timoelliott
Build a Community
• Co-located wherever possible• Regular meetings• External speakers• Shared best practice• Leverage social• Governed by the community
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Organization
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The Main Functions and Responsibilities of a BICC
All of this is still important — but should be pushed to the community as a whole
Source: Capgemini BICC Study
@timoelliott
Functional Areas of the BI Competency Center
TextBusiness
Intelligence Program
BI Delivery
Data Stewardship
Training
Advanced Analytics
Support
Vendor Management
Data Acquisition
Executive Sponsor
@timoelliott
Functional Areas of the BI Competency Community
TextBusiness
Intelligence Program
BI Delivery
Data Stewardship
Training
Advanced Analytics
Support
Vendor Management
Data Acquisition
Executive Sponsor
IT
Community
Business
@timoelliott
Leverage Social Platforms
@timoelliott
Store, maintain, integrate dataImplement changes
Summarize and analyzeDiscover and explore
Link to corporate strategyAlter processesPrioritize and set expectations
Gather requirementsEvangelizeMonitor satisfaction
Interpret resultsDevelop alternatives
Identify dataExtract dataValidate data Engineering skills
Analysis skills Relationship skills
Leadership skills
BICC Key Skills
@timoelliott
The Right Tools
Broad, Powerful Tools Detailed, Precision Tools@timoelliott
Fewer BI Tools Correlated with Higher Success
BI StandardizationThe pragmatic reduction of the number of overlapping BI tools
Invest in Self-Service Data Discovery Tools
“Through 2020 spending on self-service visual discovery and data preparation market will grow 2.5x faster than traditional IT-controlled tools for similar functionality”
– IDC
@timoelliott
Revenge of the Full Client
Long live Deski’s descendants
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Invest in Self-Service Data Preparation
SAP Agile Data Preparation
AKA “Data Blending” — combine, merge, cleanse data
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Invest in New Technology Areas
Makes sense
A bit confusing
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Invest in Communications
Effective communication is the bedrock of a successful BICC — Involves skills that aren’t always part of the staff hiring process
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@timoelliott
Celebrate Success!
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Promotecontest
Help prepare entries
Ask Execs to judge
Award prizes
Promote winners
Support Data Visualization
Not using pie charts
Ease of use, training, data quality, incentives, organization, process, etc. etc.
Importance for BI Success of:
@timoelliott
BUT Visualization Sells
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Flashy graphics can make useful sales tools early on in the lifecycle of rolling out data visualization — but encourage best practice as soon as possible
So…
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Integrate BI into Executive Decision Cycles
When was the last time you audited your decision-making processes?
US Retailer
Fully interactive, data-based screens
Questions answered there and then, no leaving the meeting until a decision is made
@timoelliott
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Invest in Advanced Analytics@timoelliott
Cloud Analytics Can Help Agility
It’s not Pie in the Sky!
Data gravity: BI in the cloud when the data’s in the cloud@timoelliott
Be Proactive: Drive Innovation
Design thinking is a methodology to unlock solutions to questions you never would have asked
@timoelliott
From Collect to Connect
Data Wranglers needed@timoelliott
A Central Source of Truth?
Having centralized “source of truth” appears to correlate BI success…
[But we’re maybe asking the wrong people]
Is Centralized Truth Dead, Too?
“So we don’t need a centralized truth?!”
“Absolutely. Never worked, doesn’t work, will not work” Gartner Analyst @frankbuytendijk
Most of the data users need isn’t in the system
“We 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.” - Forrester
55%
45%
In enterprise systemsNot in enterprise system
“By 2019, 75% of analytics solutions will incorporate 10 or more external data sources” - Gartner
@timoelliott
Leave Data Where It Is (as much as possible)
Data Warehouse
Hybrid Transaction/
Analytical Processing
Hadoop,MongoDB,Spark, etc Personal
Data / BI
Where does data arrive?When does it need to move?Where does modeling happen?What can users do themselves?What governance is required?
Big Data Architectures got complicated
What we want — consistent, seamless solution@timoelliott
Sandbox
@timoelliott
84© 2015 SAP SE or an SAP affiliate company. All rights reserved.@timoelliott
From Control To Trust
Information Governance
“Stopping people from doing dumb things with data”(Yes, it’s a VAST topic…)
@timoelliott
What Can (And Typically Does) Go Wrong Without Governance
High costs
Wasteful duplication of efforts
Data that doesn’t match
Shiny objects
Lack of ROI
Security / Legal considerations
IT eventually has to support
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Make Everything Transparent
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Self-Governance
“Social norms” can be very powerful
Right-Sized Methodologies
IT/Cross Platform
Agile BI
Self-Service
@timoelliott
Handholding
“Hypercare” handholdingFirst reports are more expensive, but then just a few days instead of 4-5 weeks. After six months, saving of 40% in the development time
@timoelliott
Best Practice: Agile BI
“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.”
– Forrester
@timoelliott
Inspiration from the “Agile Manifesto”
• The highest priority is to satisfy the customer through early and continuous delivery of analytics.
• Welcome 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/ @timoelliott
Best Practice: Adopt a Common Methodology
e.g. UK National Electricity Grid
DecideDefineDevelopDeployDeclare
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Best Practice: Introduce Data Driving Licenses
Source: Gartner@timoelliott
Trust But Verify
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Track Usage!
Support The Analytics Lifecycle
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Support the BI Lifecycle
Source: Gartner@timoelliott
Conclusion
It’s All About the Relationship!
@timoelliott
Where to Find More Information
@timoelliott
• “Cultivating Communities of Practice: A Guide to Managing Knowledge” Link
• SAP BICC Playlist on YouTube: Link• SAP BICC Best Practices Guide: Link• SAP BI Self Assessment : www.sap.com/bistrategy• SAP BI Strategy Playlist on YouTube: Link
• Follow me on Twitter! @timoelliott• Read my blog! http://timoelliott.com
7 Key Points to Take Home
1. Old approaches are no longer enough2. Self-service BI is a wonderful business opportunity
If done right, can dramatically improve business agility and IT/Business alignment3. But it requires new cultures and ways of working
You’re no longer in charge — and everybody has to compromise4. Pragmatism is the name of the game
It’s not about doing the least-worst, most-right job, focusing on building usage5. Community is the essential pillar
No one person or team can do this alone — build momentum and listen to feedback6. Look for opportunities to simplify
It’s not about technology, but the right technology can help agility7. Keep up momentum and success
Look out for teaching opportunities, and market success widely and often
@timoelliott
Appendix
Business Intelligence Program
Create and monitor overall BI strategy Establish overall vision for leveraging the organization’s information assets Sets business improvement strategy, set targets and track success Manage organizational change Determine and standardize information sources Enable collection and consolidation
Gather and share knowledge Give advice and coaching to business users on how to use BI and interpret results Keep track of new trends and technologies and map them to the organizations needs Define information audiences and information access rights Define best-practice infrastructure, methodologies, and standards Establish and maintain a corporate knowledge base
Run BICC Business planning for the BICC aligned with organization’s strategic and operational goals Promote use of the BICC and its services within the organization Define and monitor BICC-related KPIs Recruit and train staff Establish billing processes (if appropriate)
Data Acquisition and Data Stewardship
Data Acquisition: Extract and transform data Create interfaces to source systems Standardize rules and jobs for data extraction Monitor performance and optimization Create data integration processes Strengthen the role and use of metadata Establish common data definitions across the organization: “one version of the truth”
Data Stewardship: Trusted, tracked information Accurate, consolidated information Agree on data definitions and standards Establish definition verification program Define reconciliation processes Define metadata and business rules Conduct data quality improvements Enable impact analysis and data tracking Ensure communication to and participation of all parties
BI Delivery
Execute projects Carry out infrastructure maintenance Track change requests and new projects Gather user requirements and feedback Execute project management, including technical change management Establish development, testing, and promotion processes Collaborate with IT functions
Document and evolve best practice guidelines Execute project review and evaluation Publish documentation and usage guidelines Determine format, channel, and content appropriate for each user profile Monitor adherence to access restrictions and other rules Monitor and improve performance, clarity, and layout Develop and implement organizational reporting standards
© SAP 2009 / Page 109
Advanced Analytics
Manage business needs Monitor opportunities Define analysis scope Evaluate cost versus business benefit Estimate effort for complex tasks
Data preparation and validation Collaborate with data acquisition and data stewardship functions
Research and knowledge sharing Establish and implement analytical methodologies, models, and standards
© SAP 2009 / Page 110
Training
Training Review training needs in the BICC and for business users Examine training needs in relation to specific projects Determine training types and media (instructor-based training, e-learning, coaching, appropriate literature…) Develop training plan and materials Organize logistics Interface with external suppliers Evaluate training Facilitate knowledge transfer
© SAP 2009 / Page 111
Support
Support Establish a call-tracking and classification system Establish problem-solving techniques and tools Define an answering and escalation routine Define service-level agreements Technical support: establish interfaces to IT department and vendors Business support: establish interfaces to business departments
© SAP 2009 / Page 112
Vendor Management
Vendor relationship management Validate vendor portfolio with strategic and operational goals Collaborate with strategic vendors
License management Monitor adherence to vendor license regulations Review and optimize license usage Renegotiate contracts
Bidding processes Review and create input for proposals, contracts, etc. Conduct vendor evaluations and approval
