Organizing for BI and Big Data in the 21st Century Timo Elliott, SAP SESSION CODE: 0903

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Organizing for BI and Big Data in the 21st Century Timo Elliott, SAP SESSION CODE: 0903

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Agenda BICC Overview What Changed? Learning From Others Recommendations Wrap-up

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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”…

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Basic Goal: Make BI More Strategic and Cost-Effective Reactive Maintenance Strategic Reactive Maintenance Strategic

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BICCs Bring Big Benefits Every 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

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The Main Functions and Responsibilities of a BICC Source: Capgemin BICC Study 2012i

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BICC Key Skills Source: Gartner

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What Changed?

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Analytics Is The New Heart of Business

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Information Becomes a Profit Center Great news for analytics The challenge for the future

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Democracy and Empowerment Has Made Us Unhappy! Consumerization of IT Employee-driven technology Business-led budgets Customer-facing needs More external data Speed of change Increased business frustration Increased IT frustration

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Lots of New Techniques and Technologies Businesses struggling to provide coherent approach Source: Gartner

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But BICCs Are Not Driving BI

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The Majority of 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. 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

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Enterprise Systems Are Too Slow

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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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Basic Conflict BI 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-down BICC Bottom-up Self-service Trusted information Efficient reuse Too report-driven Flexibility Speed Experimentation

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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

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

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Time to Find Out What Was Really Happening With the help of external consultants the company ran a small three month project 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 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 they’re doing, and what they’re 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.” BI Manager, Scandinavian Manufacturing Company

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Getting the Facts Straight 24 The project was an eye opener for the management team. The main findings were:

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Acting On The Results BI Self-Service Approach More responsibility to end-users More user-friendly tools Visual discovery Training required Business and analytics skills “Doing 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

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(2) European Consumer Goods Packaging Company Had Created The “Perfect Giant” of Enterprise BI Business Intelligence was: 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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“Past Achievements Don’t Guarantee Future Success” Time to information Business case required to get new reports, and could take six months. Business movers ended up buying their own tools. Multiple iterations Multiple iterations required, communications degrading. Local BI teams able to be more consultative and collaborative. Lack of accountability Some 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

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Making It Agile How to make an Ocean liner perform as a speedboat?  Moving to an agile strategy Learn 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. 

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Time for An Overhaul… From Report Strategy Single version of the truth Standardized Trusted Secure To BI Strategy Single version of the truth Standardized Trusted Secure Agile development Cost effective Business driven

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Decentralization of Reporting Data warehouse centralized, but all report development local

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Redefinition of Roles, Processes and Tools Development close to the business Knows Business/Analytics/IT Report Developer Prototyping Business-driven Secure, strong BI governance Intuitive Fast development Cover all analytic needs BI Expert Agile BI Up-to-date suite of tools + pragmatic exceptions New Role New Process New Tools Need Solution

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What Changed Before: “The” BI process Now three levels, self-serve, agile BI, IT/cross platform  Getting the BI experts: Looked for best fit, then trained Some areas didn’t feel they had the competences “Hypercare" handholding on first reports First report more expensive, but now just a few days instead of four to five weeks —after six months, saving of 40% in the development time New four-step process Initiate, mock up, finalize, industrialize — two week cycles Corporate “wikipedia” for documentation Guide towards solutions rather than “tools”

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Advice If your enterprise BI isn't agile, unofficial BI platforms will grow like mushrooms in the 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 didn’t work Build a broad BI competence — Turning business information into insight should be 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 years ahead of the business, we were two years behind It will take time to build BI experts — Start now 

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(3) Large UK Retailer Situation Beloved UK institution but “beleaguered” Top-to-bottom control of products Lots of information silos, tools Lots of “institutional knowledge” Change Ahead Needed omni-channel approach/“products” Required new integrated, business-focused analytics approach New executive team and “digital native” IT

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Launched New Analytics Approach Big kick-off meeting Analysts, IT, execs, outside experts All areas of the business Tool independent Launched new “service bureau” approach Strong executive support Analytics driven locally, best-practice shared centrally “Own the problem, not the solution” (“Can we access this tool, please?”) Collection of “agile services” Community-driven, using internal social networking

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Decision Pods Fully interactive, data-based screens Questions answered there and then, no leaving the meeting until a decision is made Based on the experiences of a large US retailer

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It’s All About the Relationship Any CIO’s 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 doesn’t 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!

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Build and Nurture a Community Regular face-to-face meetings Bring people together across silos: IT, Analysts, Business Leaders, Execs Presentations of successes best practices Invite external speakers Virtual communities Leverage internal social tools for people to share information Community-driven BI content Community self-policing Act as BICC eyes and ears to discover projects, opportunities Social mechanisms to ensure the “right behaviors” Ensure support at all levels Not just executives — middle and users

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Move to Agile BI Forrester, 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

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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/

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Reorganize and Refocus Avoid “worst of both worlds” approach! Move to federated approach From “gatekeeper” to “air traffic controller” Bring “shadow BI” under umbrella of BICC — but retaining local links Co-locate “central” staff in business units whenever possible Invest in appropriate tools and skills Less reporting, more exploration “Agency” philosophy Business chooses you because you are the best option, not because they “have to” Leverage unique knowledge of cross-functional opportunities

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Offer Key Services Data Bureau One-stop shopping for data, internal, external, or “wrangled” Tools Bureau Expert recommendations of best technologies to use, when Sandbox Environments Environments that let business experiment on their own Innovation Opportunities Workshops (e.g., Design Thinking) to uncover new opportunities Analysis Validation Trust, but verify…

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Data Driving Licenses? Source: Gartner

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Support The BI Lifecycle Source: Gartner

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Remember to Communicate! Effective communication is the bedrock of a successful BICC Involves skills that aren’t always part of the staff hiring process Sell the sizzle Use dashboards, scorecards, maps and other visual applications/tools Analytics is “white hot,” so sell it Celebrate success Pick a first initiative and make it a business success Identify evangelists from the initiative and have them sell the success

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Useful Resources Barc Collective Insight white paper SAP BICC Playlist on YouTube: Link SAP BI Self Assessment : www.sap.com/bistrategy SAP BI Strategy Playlist on YouTube: Link BI News: www.sap.com/BINews Blogs on BI Strategy http://scn.sap.com/docs/DOC-30479 http://scn.sap.com/docs/DOC-30480 http://scn.sap.com/community/business-intelligence/blog/2012/12/07/bi-strategy-bicc-a-key-element-to-your-bi-program http://scn.sap.com/community/business-intelligence/blog/2012/11/07/bi-strategy-bi-competency-centers-take-center-stage-again http://blogs.sap.com/analytics/2013/03/27/driving-value-from-your-business-intelligence-program-define-track-and-measure-success/

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7 Key Points To Take Home Old approaches are no longer enough Self-service BI is a wonderful business opportunity If done right, can dramatically improve business agility and IT/Business alignment But it requires new cultures and ways of working You’re no longer in charge — and everybody has to compromise Provide what the business needs, not necessarily what they want Service-oriented approach, but the “customer is not always right” Community is the essential pillar No one person or team can do this alone —build momentum and listen to feedback Look for opportunities to simplify It’s not about technology, but the right technology can help agility Keep up momentum and success Look out for teaching opportunities, and market success widely and often

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Thank you! Timo Elliott, SAP timo.elliott@sap.com Twitter: @timoelliott Blog: timoelliott.com

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Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 0903 For ongoing education on this area of focus, visit www.ASUG.com THANK YOU FOR PARTICIPATING