BPM 2.0: New Vendors, New Products. Presenter: Craig Schiff, CEO, BPM Partners November 13, 2007

Transcription

1 BPM 2.0: New Vendors, New Products Presenter: Craig Schiff, CEO, BPM Partners November 13, 2007

2 Craig Schiff Craig Schiff, CEO, BPM Partners, a vendorneutral BPM consulting firm that guides clients through their BPM initiatives from start to finish. Founding member of Hyperion, spent 16 years as head of its Products & Services group. Co-founder and first CEO of OutlookSoft BPM Standards Group founding member, contributor to BPM Magazine, Business Finance, Business Intelligence Network, DMReview 20+ years focused on analytic applications, BI, and BPM

3 BPM 2.0 Agenda BPM 2.0 Expanded Definition BPM Pulse Market Feedback New Functionality Vendor Evolution Vendor Landscape Matrix Impacts on Customers, Vendors, Consultants Best Practices

4 BPM 2.0 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.

5 BPM 2.0 Core BPM processes include financial and operational planning, consolidation and reporting, modeling, analysis, and monitoring of key performance indicators (KPIs) linked to organizational strategy. Operational Analytics focus on the performance of key business areas including Sales, Marketing, Customer Service, Manufacturing, R&D, IT, and HR

6 BPM 2.0 BPM 2.0 Technologies enhance ease of use and distribution and include: data visualization, SaaS, SOA, open source, 64-bit support, mobile access, search BPM 2.0 Applications enable deeper analysis including risk, provide more forward-looking results and include: predictive analytics, profitability analysis/activity-based costing, external benchmarking

7 BPM Technology Framework Browser Spreadsheets Other Interfaces User Interface Report and Query Tools, Portals, Collaboration, Dashboards Enabling Technologies Strategize Metrics builders Strategy mappers Objective and goal setters Plan Budgets Capacity and HR Plans Forecasts Process Modeling Monitor and Analyze Consolidation Reporting Multidimensional analysis Scorecards Corrective Action Alerts Target Management Data Flow Applications Actual & Plan Data BPM Datamart Relational and Multi-Dimensional - Structured and Unstructured Extract, Transform, and Load Database Enabling Technologies ERP, CRM, SCM Other Legacy Systems Data Ware houses Spreadsheets, Office docs Related Analytic Apps External Data Source Data Source: BPM Standards Group

8 BPM Pulse Market Feedback

9 BPM Pulse Survey Conducted October 2006 February 2007 Not vendor-sponsored 500+ Valid Responses Across all industries and geographies, largest group of respondents in North America Roughly equal mix of small, medium, and large companies Mix of finance, IT, and operations respondents

10 BPM Status BPM Pulse Survey % In Progress 16% 13% 55% Planned: S/T Planned: L/T 14% 50% 7% 8% Completed No Plans 10% 10%

11 Status Detail BPM Pulse Survey % 35% 52% New BPM Expansion Replacement

12 Standardization/Consolidation BPM Pulse Survey % 67% Yes No

13 BPM Components BPM Pulse Survey 2007 Budget/Forecast Dashboard Operational Analytics Full Suite Strategic Planning Consolidation 0% 10% 20% 30% 40% 50% 60%

14 Capability Importance BPM Pulse Survey 2007 Profitability Analysis Data Visualization Predictive Analytics External Benchmarking Incentive Comp Mgmt

15 New Functionality

16 Core BPM Consistent set of information for one version of the truth Streamlined budgeting and monthly close process Reduced labor costs Strategic alignment What s Needed: More Users, More Breadth, More Depth

17 BPM 2.0 Overview Easier to implement and use Lower cost options Vertical depth Operational focus Holistic view Predictive capabilities Compliance and risk management

18 More Pre-built Functionality Driver-based planning Workforce planning Capital planning Budget creation wizards Benefits: less consulting required, easier to use, can roll out to more people

19 Vertical Offerings Quicker implementation Shorter learning curve Built-in best practices Complementary applications Benefits: Lower TCO, extended capabilities

20 On Demand/SaaS Options Less IT staff and infrastructure required Reduced cost Cash benefit of subscription pricing Always the latest version Benefits: easier entry point for small to mid-size companies

21 Key Elements of BPM 2.0 Focused financial analysis Predictive capabilities Operational analytics

22 Focused Financial Analysis Working capital analysis In depth cash forecasts Cash dashboards Customer profitability Product profitability Profitability optimization Benefits: Maximize investment returns

23 Predictive Capabilities Forward-looking information Analysis of root causes Trend extrapolation Incorporation of external data Benefits: beyond historical tracking, data to enable decision-making

24 Operational Analytics Goes beyond Finance and brings BPM to all areas of the company Greatest potential payback Sales performance tracking Relative sales by product, region, rep IT performance measures Employee performance Benefits: comprehensive enterprise view, increased relevancy, cultural impact

25 Compliance Historical: first-generation BPM aided signoff requirements Audits and controls: manual or separate systems Today: integrated BPM and compliance solutions Single data source reduced reconciliations Pre-built systems controls and auditability Security and visibility

26 Drill-down to source data Compliance Automation of typically manual processes such as intercompany reconciliations Internal control testing and sign-off Process management Detailed documentation Compliance dashboards Benefits: Improved governance and adherence to regulations

27 Risk Management Historical: insurance, crisis preparedness Today: investment analysis Risk-adjusted returns Financial services institutions Synchronize acceptable risk levels and strategy Benefits: Analyze investment alternatives from a risk perspective

28 BPM 2.0 Summary Easier to implement and use Built-in best practices Operational focus Holistic view Predictive capabilities Risk management and compliance Better informed decisions with greater probability of achieving expected results

29 Vendor Evolution

30 Prior mid 2006: Core Budgeting Consolidation Dashboards Business Intelligence + Applications Mid 2006 mid 2007: BPM 2.0 Ease of use/distribution Predictive capabilities Profitability analysis Operational analytics Mid 2007 present: Scale Customers Employees New Markets Analysis of M&A

31 Key to Grid Core: Bud: Budgeting/Forecasting Dash: Dashboards Con: Financial consolidation BI: BI for BPM (ETL, Report&Query, MDM) BPM 2.0 Technologies: T2.0: Data visualization, open source, 64-bit, SaaS, SOA, search, mobile, appliance BPM 2.0 Applications: A2.0: Predictive analytics, profitability analysis/abc, external benchmarking Operational Analytics OA: Sales, HR, IT, R&D, Manufacturing, etc. Profile: Vert: Vertical offerings Global: Global support Refs: Large reference base

32 Core Vendor: Applix Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Applix Comments: Applix uses the TM1 OLAP engine to provide budgeting, planning, consolidation, reporting and analysis applications on one platform that companies can extend with additional financial and operational applications. Applix enhanced its reporting capabilities with the addition of Applix Executive Viewer, a self-service reporting and analysis solution that enables creation and publication of graphical reporting dashboards, standardized reports and ad hoc analysis. The product uses data from TM1, Hyperion Essbase, Microsoft SQL Server Analysis Services and SAP Business Information Warehouse. Applix s strong distribution channel continues to grow after recent partnership announcements with the sales performance management player Varicent and with Sybase for its risk analytics platform. Highest Ratings: Performance, Product quality Lowest Rating: Documentation 4.5

33 Applix M&A Mid 2006 mid 2007: BPM 2.0 Temtec/Executive Viewer: Ease of use Acquired by Cognos

34 Core Vendor: Business Objects Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Business Objects Comments: Business Objects has completed the integration of the BPM solutions acquired from SRC Software in 2005 and now offers a comprehensive BPM suite, including planning, budgeting and financial consolidation solutions with robust BI, reporting and analysis tools. The company continues to expand its vertical market solutions to include applications built for insurance and financial services, health care, and retail/cpg. The enterprise recently expanded its profitability management, activity-based costing and predictive driver-based planning capabilities with the acquisition of ALG Software and its Enterprise Performance Optimization suite of profitability management and activity-based costing solutions. Highest Rating: Ease of use, Sales process Lowest Rating: Documentation, Product quality 3.4

35 Business Objects M&A Prior mid 2006: Core SRC: Budgeting, Consolidation, verticals Mid 2006 mid 2007: BPM 2.0 ALG: Activity-based costing, profitability optimization Cartesis: Statutory consolidation, external benchmarking, governance, risk, and compliance To be acquired by SAP

36 Core Vendor: Cartesis Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Cartesis Comments: This vendor offers a truly unified BPM solution with a single user interface for planning, consolidation, reporting, benchmarking and analysis tools that leverage the Cartesis Integrated Data Model. Cartesis has integrated the planning and interactive reporting and analysis solutions acquired from Inea and Advance Info Systems. It offers robust dashboard performance reporting and analysis capabilities through its partnership with Panorama Software to complement its comprehensive planning, financial consolidation and reporting solution. The company continues to expand its North American team to focus on growth within targeted mid- and large- market organizations. It remains a strong fit for multinational organizations seeking integrated planning, consolidation and reporting with a familiar Microsoft interface.. Highest Rating: Ease of use, Product quality Lowest Rating: Ease of implementation 3.6

37 Cartesis M&A Prior mid 2006: Core INEA: Budgeting, vertical Acquired by Business Objects

38 Core Vendor: Clarity Systems Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Clarity Comments: Clarity Systems uses an open architecture that supports multiple relational and multi-dimensional backend databases to provide Web-based budgeting, consolidation, and reporting applications with a Microsoft Excel-like user interface. The business's starter kits provide the pre-built data models and reports that can expedite application configuration and deployment for common applications within the Banking and Financial Services, Retail, and Manufacturing sectors. Clarity Systems established a resale partnership with Thomson Elite to sell and support BPM applications designed for the legal professional services market and is developing additional domain-specific vertical solutions.. Highest Rating: Customer support, Sales process Lowest Rating: Documentation 4.1

39 None Clarity M&A

40 Core Vendor: Cognos Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Cognos Comments: Cognos BPM system integrates its sophisticated planning, budgeting and consolidation applications with a single BI solution for robust reporting and analysis functions. To extend best practices across the enterprise, Cognos offers both analytic applications such as the Workforce Performance application, which is built upon an adaptive application framework, as well as Performance Blueprints, which leverage the solution capabilities of Cognos planning, consolidation, reporting and BI. Industry-specific blueprints exist for the financial services, life sciences, manufacturing, public-sector and retail industries. Cognos continues to enhance user access to the Cognos 8 solutions through refreshable connections to the Microsoft Office suite and through the addition of search capabilities and mobile device report access. Highest Rating: Product functionality, Ease of use Lowest Rating: Consulting 3.7

41 Cognos M&A Prior mid 2006: Core Adaytum: Budgeting Frango: Consolidation Mid 2006 mid 2007: BPM 2.0 Celequest: Operational analytics, ease of distribution Mid 2007 present: Scale Applix: Mid-market To be acquired by IBM

42 Core Vendor: Hyperion Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Hyperion Comments: Hyperion is among the leading vendors enabling the convergence of BPM and BI into a single, unified solution capable of providing robust planning, financial consolidation and strategic scorecard/dashboard reporting along with comprehensive BI reporting and analysis tools. Hyperion continued to expand its System 9 offering with the acquisition of Upstream Software and the subsequent release of the Financial Data Quality Management solution, which provides comprehensive data collection, transformation, validation and loading of financial data to Hyperion s analytic applications. The company also announced the introduction of search capabilities using Google s OneBox for Enterprise search appliance, which will allow users to construct and access queries of information within the System 9 suite.. Highest Rating: Product functionality, Ease of use Lowest Rating: Documentation, Ease of implementation 3.7

43 Hyperion M&A Prior mid 2006: Core Pillar: Budgeting Arbor: Business Intelligence/OLAP Brio: Business Intelligence/Reporting Mid 2006 mid 2007: BPM 2.0 Decisioneering: Predictive analytics Acquired by Oracle

44 Core Vendor: Longview Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs Longview Comments: Longview offers a fully integrated BPM solution that includes comprehensive planning, budgeting, consolidation and reporting components. This vendor s unique strategic tax solution facilitates tax data collection, planning and compliance reporting. Longview recently acquired Runservicenet s DecisionX service-oriented architecture (SOA) development platform to enable integration of the Khalix BPM solution with other enterprise applications. This is one of the few truly unified solutions and competes effectively with the larger players in the BPM market.. Highest Rating: Customer support, Price/value Lowest Rating: Ease of implementation 4.4

45 Longview M&A Mid 2006 mid 2007: BPM 2.0 Runservicenet: SOA Acquired by Exact Software

46 Core Vendor: OutlookSoft Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs OutlookSoft Comments: OutlookSoft offers a unified, Web-based BPM product, including consolidation, planning, budgeting, forecasting, predictive analytics, reporting, dashboards and scorecarding capabilities through a consistent Microsoft Excel and browser-based interface. The current release of OutlookSoft 5 supports the Microsoft Business Intelligence platform architecture as well as the Microsoft and Oracle database platforms, and it provides workflow and process management functionality. It is built upon a service-oriented architecture (SOA). Highest Rating: Product functionality, Ease of use Lowest Rating: Documentation 3.9

47 OutlookSoft M&A Prior mid 2006: Core Tian Software: Predictive analytics Acquired by SAP

48 Core Vendor: SAS Snapshot Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs SAS Comments: The comprehensive and integrated SAS for Performance Management solution includes planning, budgeting, consolidation and reporting functions that leverage the SAS Business Intelligence platform. SAS offers crossindustry analytic applications for human capital management and activity-based management in addition to numerous industry-specific vertical tools. The SAS for Performance Management solution requires integration with the SAS BI platform, so this solution will be most attractive to companies looking to implement solutions containing both BI and BPM components. Highest Rating: Product functionality, Product quality Lowest Rating: Ease of implementation 4.0

49 SAS M&A Prior mid 2006: Core ABC Technologies: activity-based costing, profitability analysis

50 Transaction to Performance Vendors

51 Infor Geac financial performance management Extensity expense management Systems Union business intelligence

52 Microsoft Panorama Software (OLAP and MDX) BI for BPM ProClarity ease of use/access FRx mid market financial performance management Stratature master data management Microsoft PerformancePoint

53 Oracle Oracle CPM performance management for Oracle PeopleSoft EPM performance management for PeopleSoft Siebel marketing analytics Hyperion financial performance management

54 SAP SAP SEM performance management for SAP NetWeaver BI for SAP Pilot Software strategy management OutlookSoft financial performance management Business Objects business intelligence

55 BPM Partners Vendor Landscape Matrix

56 Vendor Landscape Matrix Comprehensive Specialized Developing Established

57 Customer, Vendor and Consultant Impacts

58 Impact on Customers Past: early adopters/pioneers, financial services, telecom, top end mid-market to middle of the enterprise market Today: largest companies are pursuing BPM visible success interest in BPM 2.0 comprehensive projects

59 Impact on Customers Today: small companies are jumping on the BPM bandwagon pains of spreadsheet budgeting company growth availability of cost-effective solutions, SaaS

60 Impact on Vendor Choices Tools-only vendors Shrinking, most have added BPM applications Highly customized solutions With today s solutions very few companies need to custom build BPM Packaged application-only vendors Deep domain expertise Focused R&D Work with multiple databases, ERP, and BI Need to map data from BI/ERP

61 Impact on Vendor Choices Tools and Application Vendors Generally most popular Full suite of BPM applications and associated tools BPM 2.0: operational analytics ERP independent Functionality and cost considerations ERP and Tools and Application vendors Newly viable this year From transactions to performance analysis Fully integrated data (over time) Single vendor for ERP clients Major questions for non-erp clients

62 Impact on Consultants Newer BPM customers are more risk averse and cost conscious Look to expert consulting firms for guidance to avoid costly pitfalls Large organizations have complex performance challenges Look to strategy consulting firms for advice and insight Smallest firms need help also but have limited budgets Utilize phone-base support Purchase research to become their own experts

63 Impact on Consultants BPM 2.0 Deeper financial focus has brought financial management and process consultants into the fold Operational analytics offers opportunities for business intelligence consultants Consultants new to BPM are partnering with established core BPM consulting firms

64 Impact on Consultants Implementation Consulting Former vendor consultants starting new practices post-merger Third-party ERP consultants looking to expand into newly acquired products This larger pool of implementers results in more competitive pricing and increased potential for local support and specific industry expertise

65 BPM Best Practices: BPM 2.0 and Vendor Evolution

66 Best Practices: Who Should Implement BPM? Poorly Performing we re missing our numbers as it is so we can t make any large expenditure right now Rapid Growth there s so much going on that we re too busy right now to take anything else on Merging/acquiring we are quite busy trying to merge two organizations: products, people and systems. We have no time for BPM right now In pain the budget cycle we completed was so painful, we must revisit implementing change next year. Next year comes around, and the prep for the new budget is so difficult there is no time left for the budget process improvement project

67 Best Practices: Internal Teams CFO should partner with the CIO Understanding vendor technology roadmap and integration challenges of each offering is critical BPM today requires easy access to data from multiple source systems throughout the company

68 Best Practices: Internal Teams Form a cross-functional team with senior representation from across the company Operational analytics requires team members with a deep understanding of each department Also aids in attaining company-wide buy in when the system gets rolled out

69 Best Practices: Ideal Solution Supports from few users to enterprisewide adoption Unified solution common interface, single database Open works with multiple back-end databases Independent works with most ERP and BI systems

70 Best Practices: Vendor Review Detailed plans (with timeline) for product integration Common user interface with single sign-on Single database, interim data movement tools Shared metadata

71 Best Practices: Vendor Review Product roadmap Which modules will be maintained and for how long Which modules will be enhanced and actively promoted by marketing and sales Tools and licensing for upgrades BPM 2.0 plans

72 Best Practices: Vendor Review Percentage of new BPM customers from outside of their customer base Non BPM components required for full functionality Development focus Customer priority and importance

73 Best Practices: BPM Expertise Add an expert to your team Employee or consultant to supplement existing team members with broad and current BPM knowledge CFO and CIO have full-time jobs BPM 2.0 complexity and expansion Rapid pace of BPM evolution Avoid costly pitfalls of go it alone trial and error approach

74 What do you do now? BPM Partners Expert Articles and Guidance Participate in BPM Pulse 2008 Read BPM Today Status of Vendors, Customers, Consultants: BPM Magazine November 2007 Read Keeping Pace with the BPM Vendor Shuffle: Business Finance Magazine November 2007 Read the BPM Software Guide: Business Finance January 2008

75 Q&A Questions and Answers

76 Contact Information Craig Schiff CEO, BPM Partners