© 2009 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author> 1

70% of Fortune 1000

80% ofGlobal 500

55Conferences

4,000CIOs

750 Analysts Serving Clients

in 85 Countries

100,000IT End-User

Inquiries

10,000Media

Inquiries

2.7 MillionIT End-User

Searches

60,000Clients

10,800 Client

Enterprises

5,500Benchmarks

Welcome!Thank you for joining us on today’s Gartner webinar.

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2011 Gartner, Inc. and/or its affiliates. All rights reserved.

Bill Hostmann

BI Competency Centers: Enablers of Better Decisions

Key Issues

1. What is the role and value of the BICC?

2. What are cores skills and competencies for a BICC?

3. What are the lessons learned from leaders of BICCs?

IT Perspective: The top business drivers for investments in Business Intelligence

4

• Speed up and improve the organization's decision making ability

• Respond to user needs for data on a timely basis

• Better align with and track against corporate strategy and objectives

• Better manage a specific operational process in a more timely fashion

• Decrease business costs and improve operational efficiency

• To move users toward a self service model of information delivery

CFO’s Perspective: Analysis and Decisions Making will Drive IT Investments

5

Facilitating analysis and decision making

Reducing enterprise operating costs

Quality of the data used for business information

Creating an effective environment for sharing relevant information

Ongoing monitoring of business performance

Measuring product and customer profitability

Helping to position the organization for profitable growthCreating/maintaining an enterprise-wide view of business rela-

tionshipsDeveloping business plans and budgets

Integrating strategy with daily business operations and rewards

Integrating the financial function with the overall enterprise

Managing business risk

Ensuring consistency between transactional data and analyticals

Lack of controls to ensure accuracy in compliance

Consolidating financial processes/instancesUnderstanding and managing the drivers of profitability or cost of

service deliveryImproving financial value chain areas - such as Procure to Pay

Modeling business development (mergers, acquisitions, divesti -tures) scenariosManaging integration of systems following mergers, acquisitions or divestitures

46%

43%

43%

42%

41%

33%

33%

32%

29%

29%

27%

26%

26%

25%

23%

18%

15%

12%

12%

9%

7%

9%

11%

4%

6%

8%

9%

3%

6%

5%

5%

2%

3%

3%

3%

2%

1%

3%

Process that needs the most significant improvement in technology support

Top processes in your organization that cur-rently need improved technology support

Source: 2011 Gartner FEI Technology Study – To Be Published, N=334

Level of Business Impact

Business Intelligence: Use of Information And Analysis to Make Better Decisions

What Will Happen?

Why Did it Happen?

What Is Happening?

Skill Levels

Required

Better Decisions

Information

Adapt

Descriptive Analytics

Predictive Analytics

Prescriptive Analytics

Model

Seek

What is Your Organizations Level Of Information and Analytical Competency?

• We are competent at answering: “What is happening?”

• We are competent at answering: “Why did it happen?”

• We are competent at answering: “What will happen?”

7

Agree/Disagree With the Following Statements: Multiple Choice

The "White Space" in Organizations is Where Business Intelligence Succeeds or Fails!

A different organizational model is needed!Roles, Controls and Rewards need to be defined.

Tools and Applications

Analytic Processes

Analytical Skills IT Skills

IT Processes

Business Processes

Business Skills

Information Infrastructure

Decisions

Analytic Processes

Information Infrastructure

Processes

Business and Decision

Processes

Gartner's Business Intelligence/Analytics/Performance Management Framework

Business Strategy and Enterprise Metrics Framework(Strategic, Financial, Operational Objectives and Measures)

'Consumers' (Users)

'Producers' (Analysts)

'Enablers'(IT)

Pro

gram

Man

agem

ent

Met

adat

a an

d S

ervi

ces

Rep

osito

riesBusiness Process Applications

(Performance Management and Transaction Processing)

BI Capabilities(Platform/Tools and Embedded in Analytic Application)

Information Infrastructure(Application Data Mart, EDW,

ETL, Data Federation, Data Quality)

Analytic Applications(Stand-Alone and Embedded in Business Process Application)

Integrate Essential Competenciesand Skills With a “BI Competency Center”

Business Skills• Decisions & Metrics• Business Strategy,

Plan, Processes & Resources

Analytic Skills• Analytic and

Process Expertise

• Business Rules & Models

IT Skills• Tools and

Applications• Data

Management and Integration

• Analytical and Information Support

BICCDevelop User & Analytical

Skills

Obtain & Control Funding

Define BI Vision and StrategyManage

Programs

Define Leadership & Governance

Build Technology

Blueprint

Establish Standards

and Methods

Pro

gram

Man

agem

ent

Investments in Information and Analysis: Driving Business Performance — Cause or Effect?

Through 2015, more than 35% of top 5,000 global companies will fail to adapt to significant changes in their business and markets due to underinvestment in their information intelligence infrastructure and analytic competencies

Through 2015, organizations integrating high-value, diverse, new information types and sources into a coherent information management infrastructure and use that information to make better decisions will outperform their industry peers financially by more than 20%.

Why Have Only 27% Established a BICC?

Yes 27%

Within 12 months 41%

Noplans 27%

Don't know 5%

Status of BICC Those with BICCs report:

• More users- 34% vs. 25%

• More spending- Budgets significantly higher

• More expansive- In-memory, SaaS and open

source plans higher

• More holistic- Business process

improvement/management attention is 50% more prevalent

Source: 2010 Gartner BI Summit Attendees

Key Issues

1. What is the role and value of the BICC?

2. What are cores skills and competencies for a BICC?

3. What are the lessons learned from leaders of BICCs?

Business Skills for a BICC

• Credibility and clout

• Engaged in the management of business processes

• Ability to define business decisions in the scope of overall business objectives

• Defines performance metrics in context of performance framework

• Appreciation of cross-LOB/functional issues

• Communicating and persuading at executive level

• Prioritize projects/requirements with a link to business impact

• Understanding what possible improvements can be supported by better data and analysis

• Developing a selling business case

• Ongoing stewardship/evangelism to drive standardization, adoption and acceptance

Analytical Skills for a BICC

• Fluent in business processes.

• Can articulate how data and analysis relates to key performance indicators and managing business

• Navigate, extract, explore, qualify and analyze data related to business operations and processes.

• Build multidimensional analysis models

• Experience using a palette of analytical techniques, (from simple data aggregation via statistical analysis to complex data mining)

• Validation (during modeling and deployment): Validate the analysis against historical or other data and models

• Having the capacity to distill the relevant parts and produce sound business recommendations

IT Skills for a BICC

• Business savvy

• Program management

• Understanding of architectural patterns and standards

• Modeling for analytical applications

• Requirements gathering

• Report writing (and cube building)

• BI application development, administration including security

• Data integration, including data quality, master data and MDM

• Data management and warehousing

Program Management Skills: Focus on Agile Development and Deployment

DevelopDeploy3. Tool Evaluation and Selection

4. Develop, Implement and Train

2. Data ID and Preparation

6. Discovery and Exploration

5. Access, Monitor and Analyze

7. Develop Decision

8. Share and Collaborate

9. Effect Change

1. Requirements and Prototyping

Note: Highly iterative development and deployment process; 70% of requirements change within the first year of deployment

BICC

Key Issues

1. What is the role and scope of the BICC?

2. What are the organization and funding models for the BICC?

3. What are the lessons learned from leaders of BICCs?

Varied BICC Organization Models

Structure Description

Departmental

Physical department within IT or operations, reports to CIO, COO or CFO organization.

Decentralized Several BICCs across the organization by line of business, function and geography. Each is responsible for its part of the organization/function.

Virtual Staffed with existing resources across the organization. Resources retain their original reporting structure, allocated to BICC responsibilities.

Hybrid A combination of styles. For example: departmental with some virtual attributes.

How Are BICCs Funded?

Model Description

Centralized Funded from corporate or IT budget. Gets buy-in from business without potential cost pushback.

Allocation Method ensures 100% allocation of costs back to business. Not always considered 'fair.'

Pay As You Go Based on groups' use of BICC services. Fair-share distribution, but cost model may inhibit growth.

Subscription Based on projected use of BICC or number of users. Requires negotiation process between business and BICC.

Hybrid Any combination of models.

Define the Scope of Applications, Governance and Funding of BICC

Corporate BI applications

Departmental BI applications

'Framework and standards'

Degree of Governance andFunding Models for BICC

Special-purpose BI applications

0% 100%

Cross-functional BI applications

Multiple departments and

data sources

Numbers are all over the map

Three BICC resources for

100-plus users

100+ BICC resources for

5,000-plus users

21 BICC resources for 12,000 users

There Is No Magic Formula for Staffing

Talking to companies, they ask, 'We're a €10 billion company, how many people should we have in our BICC?' That is an irrelevant question. Manufacturing

Define and Evolve Your Sponsor

CIO

Department BICC ICC

COO

Division 2

BICC

Division 1 Division 3

CFO

BICCFinance

LOB

BICCFinance

Realizing Value From BI Investments

Value to BusinessEnabling

Val

ue

to C

IO/I

T

Tech

no

log

y

Contributing

Info

rma

tio

n

Operational Efficiency

Strategic Business Transformation

Lower Total Costof Ownership

Higher Business Agility and Scale

Metrics for BICC Success

Strategic Outcomes Tactical Measures Feedback

Performance: Product line, sales channels, sales generators

Business value of better insight (qualitative)

Enterprise alignment

Increased productivity for analysts, IT and business users

Turnaround time on enhancement requests

Satisfaction from support calls

System uptime, hardware utilization

Data sources supported Usage

License management

360-degree assessment

User satisfaction ratings e.g TRACK survey

External input

If these guys are taking the time to actually use the BI system provided by the BICC, it is probably because there is something they want in there. Manufacturer

Seven Lessons Learned From Practitioners

'Get the business owner as sponsor.'

'Bring in more senior people from the start.'

'Get funding model right!'

'Establish a more-detailed contract/SLA.'

'It's not 'do it, you're done.' There's a lot of ongoing evolution.'

'It's not a tool but a portfolio of tools. Make sure you have what you need in your toolbox.'

'You need a consistent evaluation system to ensure everyone judges the BICC performance on the same basis.'

Recommendations: Start Small, Think Large

Take inventory of your organization's BI initiatives and skills, and their locations.

Define the business objectives that the BICC will meet, and the appropriate executives to report to.

Identify the appropriate funding and organizational strategy.

Market results! 'Sell' BICC for new BI programs. Expand scope and sponsorship. Consider ways to turn BI into a revenue stream. The BICC is not the only CC, and should collaborate

and share resources with your other CCs.

Related Gartner Research

Business Intelligence Competency Center Key Initiative Overview for CIOs (G00207077)

ITScore for Business Intelligence and Performance Management(G00205073)

Q&A: Create a Business Intelligence Competency Center That Fosters a Performance-Driven Culture (G00207327)

The BI(G) Discrepancy: Theory and Practice of Business Intelligence (G00176038)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

Gartner Events

29

Events for Business Intelligence & Information Management Professionals

Business Intelligence SummitMay 2 – 4, Los Angeles, CA

Master Data Management SummitMay 4 – 6, Los Angeles, CA

Business Intelligence & Information Management SummitJuly 20, Tokyo, Japan

 Visit gartner.com/us/events

Experience live analyst expertise plus much more at a Gartner event.

30

Gartner Symposium/ITxpo: The world's most important gathering of CIOs and senior IT executives• Hundreds of analyst-led sessions, workshops, how-to clinics and more• Role-based tracks designed to address your key priorities and challenges• Immediately actionable take-aways—a clear action plan for the next 3, 6 and 12 months• Mastermind Interview Keynotes with industry leaders• ITxpo show floor with hundreds of top solution providers and exciting startups

August 22 – 24 Cape Town, South AfricaOctober 3 – 5 Tokyo, JapanOctober 16 – 20 Orlando, FLOctober 25 – 27 Sao Paulo, Brazil

November 7 – 10 Barcelona, Spain November 14 – 17 Gold Coast, AustraliaNovember 21 – 23 Mumbai, India

Visit gartner.com/symposium

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