Summarize what is a BICC
Présentation PowerPoint © 2019 | Sébastien DOUAILLAT | Page 1 Organization of BI in the enterprise © 2019 | Sébastien DOUAILLAT | Page 2 Knowledge of the enterprise (1/7) The organization of an enterprise is mainly driven by 2 aspects: • functions (R&D, industry, supply chain, commerce, finance, HR, etc.) • projects (launch a new product, build a new factory, deploy an ERP, etc.) The matrix organizational structure is a mix between a « traditional » functional organization and a « pure » project organization. Matrix organizational structures are mainly about 3 types: • weak (less project-oriented, more function-oriented) • balanced (equally both project and function-oriented) • strong (more project-oriented, less function-oriented) This type of organization can be applied at different levels: corporate, zones, countries, cities, business units, directions, departments, services, entities, etc. all of them being coordinated to achieve programs (set of projects). © 2019 | Sébastien DOUAILLAT | Page 3 Knowledge of the enterprise (2/7) © 2019 | Sébastien DOUAILLAT | Page 4 Knowledge of the enterprise (3/7) Business dimension (product lines, business lines, business units, etc.) An example in the culture retail: • Books • Movies • Music • … An example in the tire industry: • Cars and SUV • Trucks and buses • Motorcycles and bicycles • Mining and earthmovers • Aircrafts • … © 2019 | Sébastien DOUAILLAT | Page 5 Knowledge of the enterprise (4/7) Geographical dimension (cities, countries, zones, etc.) An example at World level: • North America • South America • Europe, Middle East & Africa (EMEA) • Asia & Pacific (APAC) An example at Europe level: • Big Five (France, Germany, United Kingdom, Spain, Italy) • Benelux (Belgium, Netherlands, Luxembourg) • Northern Europe (Denmark, Norway, Sweden, Finland, Iceland) • Eastern Europe (Poland, Hungary, Serbia, Romania, Bulgaria, etc.) • CIS / Community of Independent States (Russia, Belarus, Ukraine, etc.) • … © 2019 | Sébastien DOUAILLAT | Page 6 Knowledge of the enterprise (5/7) Functional dimension (services, departements, directions, etc.) • Research & Development (R&D) • Industry / Production / Manufacturing • Supply Chain • Logistic • Marketing • Commerce • Finance • Audit • Legal • Quality • Purchasing • Communication • Information Systems • Personnel / Human Resources (HR) • … © 2019 | Sébastien DOUAILLAT | Page 7 Knowledge of the enterprise (6/7) Extended enterprise • Suppliers • Partners • Customers and also… • Employees • Internet: - corporate image on the web - communication on social media - any other type of media (websites, blogs, videos, etc.) © 2019 | Sébastien DOUAILLAT | Page 8 Knowledge of the enterprise (7/7) North & South America Europe, Middle East & Africa Asia & Pacific © 2019 | Sébastien DOUAILLAT | Page 9 © 2019 | Sébastien DOUAILLAT | Page 10 Transversality of BI (1/3) The organization of the enterprise and its growth dynamic influence strongly the implementation of Business Intelligence projects. The footprint of a BI project not only depends on the IT structure, but also on the business organization. However, the implementation of Business Intelligence in a company is generally a very structuring approch, for the definition of data referentials on the one hand, and the associated organization on the other hand (particularly in the creation of dedicated competency centers). There are mainly 3 types of BI organization: • a fully centralized organization around a corporate Business Intelligence ; • a decentralized organization on different sites and/or in several entities, but with a consolidated view at corporate level (bottom-up) ; • a decentralized organization with a centralized governance (top-down). Source: CIGREF, 2009 © 2019 | Sébastien DOUAILLAT | Page 11 Transversality of BI (2/3) One of the BI specificities is the transverse nature of the issues it’s dealing with. Therefore, it is absolutely necessary for BI teams to have mixed skills, on both business and IT sides, and thus to have a high maturity in the business versus IT relationships, in order to use the different points of view as an advantage and a source of added value (and not only a source of conflicts). In most cases, the CIO is taking the leadership on BI initiatives because: • BI deals with data and information, and thus information systems ; • using the right project management methodology is a key factor of success (and IT teams are often more mature on lean and agile methods) ; • this is a guarantee to have a neutral and global approach of the enterprise, transverse to all departments, functions or zones, avoiding to have only one department, function or zone orienting BI to its own business only. Source: CIGREF, 2009 © 2019 | Sébastien DOUAILLAT | Page 12 Transversality of BI (3/3) Business Intelligence is thus transverse by nature: • business, information systems, and all the different directions of the company • through all the different functional areas or geographical zones This is particularly true for Business Intelligence, but also for all the topics related to data and data analysis more generally: • Master Data Management • Business Intelligence and Business Analytics • Enterprise Performance Management • Advanced Analytics, Big Data and Data Science Therefore, the management and the organization of these topics in a company have to be in adequation with this transverse nature, and having a siloted approach of these activities per directions, per domains, per zones, does not allow to reach the right level of maturity to steer the company. © 2019 | Sébastien DOUAILLAT | Page 13 Limits of siloted approaches (1/3) When a problem happens in a company, and an analysis is necessary to understand the problem in order to identify actions and take decisions, it is not possible to know « a priori » where the problem is coming from. For instance, if the company sales are dropping on one given month: • is it a gap between the company product and the market expectations? • is it a commercial performance issue? • is it a supply chain issue in the logistic chain? • is it a defect issue during the product manufacturing process? The answer can not be known before making the analysis, so if the resources to analyze the problem are spread amongst many services in the company, nobody will have a global vision to really understand the root cause of the problem. A siloted approach of BI in a company is a proof of weak BI maturity. A fully decentralized organization is not a BI organization. © 2019 | Sébastien DOUAILLAT | Page 14 Limits of siloted approaches (2/3) Moreover, if a company keeps BI teams in many different entities (business line A, business line B, business line C, …), domains (industry, commerce, finance, …) or zones (Europe, America, Asia, …) to do the same BI work (data collection, data analysis, user support, project management, …): • tasks, resources, knowledge and skills are duplicated, which is implying a higher recurring cost ; • global vision of the company is lost and top managers may regularly miss the right understanding of problems or new business opportunities ; • necessary expertise on this type of activities is progressively lost because it’s impossible to maintain a high skill level in each team on long term. It is thus mandatory to regroup BI skills, on both business and IT sides, within a dedicated structure, independent from any other entity in the enterprise, in order to improve efficiency and maturity of Business Intelligence. © 2019 | Sébastien DOUAILLAT | Page 15 Without dedicated BI teams, the understanding of issues, associated analysis and resulting decisions are siloted and addressed by different actors: With a BI Competency Center (BICC), all these BI activities are shared within the same structure, in a coordinated, optimized and efficient way. Limits of siloted approaches (3/3) © 2019 | Sébastien DOUAILLAT | Page 16 MISO and their impact on BI MISO are the big 4 historical software leaders in enterprises (worldwide). • Microsoft (Windows, Office) - Microsoft Power BI - Microsoft SSRS and SSAS • IBM (servers and services) - IBM Cognos BI and TM1 - IBM SPSS and Watson • SAP (ERP softwares) - SAP BW and SAP BO - SAP KXEN • Oracle (databases) - Oracle BI and Oracle EPM © 2019 | Sébastien DOUAILLAT | Page 17 GAFA and their impact on BI GAFA are the big 4 internet leaders, first data-driven companies in the world. • Google (search engine) - Google Analytics (website analysis) - Google MapReduce (big data) • Amazon (e-commerce) - real-time warehouse management - real-time recommendations • Facebook (social media) - 500 Tb of new data each day - Wisdom (with MicroStrategy) • Apple (technology company) - iPhone and iPad (mobile BI) © 2019 | Sébastien DOUAILLAT | Page 18 NATU and their impact on BI NATU are 4 new digital disruptors, fully based on data-driven business models. • Netflix (movies) • Airbnb (hosting) • Tesla (vehicules) • Uber (transport) NATU are massively using Big Data and real-time analytics (predictive and prescriptive), but their impact on BI is not fully known yet. © 2019 | Sébastien DOUAILLAT | Page 19 Data-driven companies (1/2) https://www.google.fr/imgres?imgurl=https%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fcommons%2F5%2F53%2FGoogle_%2522G%2522_Logo.svg&imgrefurl=https%3A%2F%2Ffr.wikipedia.org%2Fwiki%2FFichier%3AGoogle_%2522G%2522_Logo.svg&docid=AbWwClGGyJUprM&tbnid=mG-LmcnxlVROUM%3A&vet=10ahUKEwizgO_D34jmAhXTMMAKHaT7CL0QMwhRKAEwAQ..i&w=784&h=800&bih=652&biw=1152&q=google%20logo&ved=0ahUKEwizgO_D34jmAhXTMMAKHaT7CL0QMwhRKAEwAQ&iact=mrc&uact=8 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DOUAILLAT | Page 22 BI competency center (1/2) Source: Gartner, 2007 © 2019 | Sébastien DOUAILLAT | Page 23 BI competency center (2/2) Source: Gartner, 2007 © 2019 | Sébastien DOUAILLAT | Page 24 BICC vs ACE (analytics community of excellence) Source: Gartner, 2017 © 2019 | Sébastien DOUAILLAT | Page 25 BI jobs in the enterprise (1/9) Developer (IT) The developer is the person in charge of « coding » with programming languages the specifications written during the design phase, in the different tools that will be used by the IT solution to answer the business need. The developer has to be able to understand these input specifications (functional and technical), and to test the result of the code as an output of the programming phase. The main tools are SQL (Structured Query Language) and ETL (Extract Transform Load) for data integration, various types of databases for data modeling and data storage, and BI (Business Intelligence) or EPM (Enterprise Performance Management) for data analysis and data presentation. Big Data tools are also more and more useful (Hadoop framework, noSQL databases, R language, etc). In agile methodology projects,