Beyond the Hype 2005

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Business Performance Management

• Beyond the Hype 2005
• Ivor Herman, Managing Director, BPM Partners
• April 19, 2005

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BPM Uniting Business and IT

• BPM Definitions
• Business/IT Challenge
• Vendor Trends
• Customer/Prospect Trends (BPM Pulse Survey)
• Vendor Choices
• Q A

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Common Definition of BPM

• BPM is a set of integrated, closed-loop
  management and analytic processes, supported by
  technology, that address financial as well as
  operational activities.
• BPM is an enabler for businesses in defining
  strategic goals, and then measuring and managing
  performance against those goals.
• Core BPM processes include financial and
  operational planning, consolidation and
  reporting, modeling, analysis, and monitoring of
  key performance indicators (KPIs) linked to
  organizational strategy.
• The BPM Standards Group, March 2004

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Core Processes Technology
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Definitions

• BI is essential to BPM, but BI also exists
  outside of BPM
• BPM and Data Warehousing share the creation of a
  common data repository, but BPM adds new data
  (the plan) and domain specific processes. BPM
  leverages the data warehouse.
• BPM BPM BAM are important, stand-alone,
  complementary disciplines.
• Business Process Management is focused on
  optimising operational processes. Business
  Performance Management is focused on executing
  strategy.

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Definition Metrics vs. KPIs

• The number of people who attended conferences
  BPM Partners presented at this year
• Metric or KPI?
• The percentage of conference attendees who
  became customers of BPM Partners
• Metric or KPI?
• Metric Measurement of a business activity
• KPI A metric that is tied to strategic business
  drivers and is actionable
• You will have many metrics, but few KPIs

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Business/IT Challenge

• Being in IT for more than 12 years until
  recently I understand the IT folks focus on what
  tools or technologies are the coolest and will
  make them more marketable. They really care less
  about what the business community actually needs.
  Instead, IT likes to dictate to the business
  community what tools they should use and how the
  implementation should be done. That's why the
  majority of the BI/DW projects run by IT
  failed. IT Toolbox Forum
• February 2005

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Business/IT Challenge

• BPM is about key business processes
• A dashboard is a display of KPIs
• BI is an enabling technology
• A data warehouse can feed BPM
• Projects often led by Finance
• Must combine ITs technology and project
  management skills with Finances business
  knowledge to succeed

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Vendor Trends

• Battle for Market Share
• Management changes
• New CEOs, Senior Teams,
• Increased sales forces
• Aggressive tactics
• Over selling
• Threatening to walk
• Negative selling
• Lawsuits
• Product changes
• Upgrade by acquisition, improved integration,
  verticalisation

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BPM Pulse Survey

• Conducted September December 2004
• Not vendor-sponsored
• 200 Valid Responses
• Across all industries and geographies, largest
  group of respondents in North America
• Roughly equal mix of small, medium, and large
  companies
• Heavy concentration of finance (vs. IT)
  respondents

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BPM Status

• BPM Pulse Survey

2004
2005
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Reasons to Move Forward
BPM Pulse Survey
2005
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BPM Components
BPM Pulse Survey
2005
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Project Manager

• BPM Pulse Survey

2005
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BPM Vendors End User Ratings

• BPM Pulse Survey Rating
• For each vendor involved in your solution rate
  the level of satisfaction
• 1low, 5high
• 20 vendors listed

0 to 2.4
2.5 to 3.4
3.5 to 5.0
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BPM Vendors End User Ratings

• Reasons for Lower Ratings
• Wrong product/oversold
• Unrealistic requirements/expectations
• Vendor style
• Implementation issues
• Product quality and performance

0 to 2.4
2.5 to 3.4
3.5 to 5.0
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BPM Vendors

• The Core 7
• Complete solutions
• Robust functionality
• Field validated
• BPM focused
• Dashboards
• Tools

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Core Vendor Cartesis
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Cartesis
Comments With its change in ownership and
the introduction of a budgeting module early last
year, Cartesis will emerge stronger than ever.
The firm is particularly capable in global
consolidation and Sarbanes-Oxley compliance, and
it no longer has to address the issue of being
owned by an audit firm.
3.2
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Core Vendor Cognos
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Cognos
Comments Cognos has strengthened its
position in the past year with the acquisition of
Frango. This brings its consolidation
capabilities up to the level of its budgeting
capabilities. Combined with its powerful business
intelligence tools, this makes Cognos a
formidable vendor across the board.
3.7
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Core Vendor Geac
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Geac
Comments One of the leading unified BPM
application vendors, Geac gained a strong
budgeting capability through the acquisition of
Comshare. Geac uniquely includes an expense
management application (Extensity) as part of its
performance suite. Their strategic planning
functionality enables them to deliver on the
promise of BPM from strategy to execution.
3.3
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Core Vendor Hyperion
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Hyperion
Comments Hyperion has been listening to its
customers as well as the market. In the past
year, it has introduced Hyperion Hub (now
supplemented by Razza Solutions), which goes a
long way toward reducing product integration
issues at the metadata level. In addition, the
company has introduced a new, massively scalable
version of Essbase to better compete with the
likes of Microstrategy.
3.4
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Core Vendor Longview
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Longview
Comments This highly scalable solution gets
high marks from its customers. The once quiet
company is now actively marketing its solution
and partnering with consulting companies to
extend its reach in the market. As one of the few
truly unified solutions, Longview can effectively
compete with the big guys.
3.5
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Core Vendor OutlookSoft
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
OutlookSoft
Comments OutlookSoft is growing rapidly as
the demand for unified solutions increases and as
the acceptance of the Microsoft platform it is
based on also grows. The newest focus area for
this vendor is predictive analytics.
3.8
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Core Vendor SRC
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
SRC
Comments This vendor has a unique
implementation model that involves experts at
company headquarters in every project. This has
resulted in a very happy customer base. In
addition, SRC has successfully focused on the
financial services and healthcare verticals.
Insufficient data for BPM Pulse Rating
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Dashboard Vendor ActiveStrategy
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Active Strategy
Comments Offering both a hosted edition and
an enterprise edition, ActiveStrategy provides
intuitive, Web-based scorecarding than can adapt
to any scorecard framework. The services
organization has deep expertise in scorecard
design and strategy management.
Insufficient data for BPM Pulse Rating
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Tools Vendor Applix
Snapshot
OLAP RQ ETL Anl Bud Cons Met Port
Global Refs
Applix
Comments Applix, known for its
high-performance TM1 OLAP database, has added
components that make it more than just a tools
vendor. In fact, what it offers is a BPM
platform. The TM1 engine plus its planning
manager will speed up companies on their way to
developing a custom budgeting solution.
4.1
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What do you do now?

• Vendor Search Tool
• www.bpmpartners.com/vendor_search.shtml
• BPM Jan. 2005 Buyers Guide
• BPM Self-Assessment Audit
• www.bfmag.com/bpm
• BPM Pulse Survey
• www.bpmpartners.com/bpmcentral_whitepapers.shtml
• BPM Assistance (from requirements to results)
• www.bpmpartners.com/special_packages.shtml

www.bpmpartners.com
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Contact Information

• Ivor Herman
• Managing Director, BPM Partners
• www.bpmpartners.com
• iherman_at_bpmpartners.com

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QA

• Questions and Answers