A Power Combination

BeyeNETWORK Custom Research Report Performance Management and Business Intelligence: A Power Combination

PART 1: SURVEY AND RESEARCH FINDINGS

PART 2: SOLUTION OVERVIEWS AND CASE STUDIES

Nancy Williams and Steve Williams, DecisionPath Consulting

I PART

PART 1: SURVEY AND RESEARCH FINDINGS 1

PART 2: SOLUTION OVERVIEWS AND SURVEY AND RESEARCH CASE STUDIES FINDINGS

AUTHOR INFORMATION Background and Key Findings

BPM and BI: A Power Combination

Methods and Tools for BPM and BI Alignment

BPM and BI in Action

Conclusion

II 1PART

SURVEY AND Background and Key RESEARCH FINDINGS Findings

PART 1: SURVEY AND RESEARCH FINDINGS HE HISTORY OF business adopting business performance management reflects management (BPM) and business PART 2: continuous improve - intelligence (BI) to drive perform - SOLUTION OVERVIEWS AND ment in the methods ance and profits. In concert with CASE STUDIES and tools used to drive company BeyeNETWORK and with the sup - Tperformance. Since the beginning of port of Host Analytics, Infor and the industrial age, company leaders Teradata, we conducted a survey in AUTHOR and managers have sought to pre - which 200 people from a wide INFORMATION dict, plan and control company per - range of industries participated, formance—in part to satisfy share - sharing their experiences with BI holders and in part to advance their and BPM and their insights into the own careers. Just about any lever results BPM and BI initiatives have that affects business performance had for their companies. The com - has been studied, and disciplines panies ranged in size, with 18% ranging from industrial engineering being very large (>$5 billion annual to industrial psychology have revenue) and 74% being small and informed and influenced how man - medium-sized businesses. Key agers go about the central task of findings follow. achieving targeted performance. Today, in the face of intense global competition, the pressures on man - BPM/BI ALIGNMENT agers to perform are high, and thus FINDINGS it is increasingly important that 1. Sixty-six percent (66%) of com - companies capitalize on the best panies that have both BPM and BI available methods and tools. In this initiatives underway are attempt - context, our research shows that ing to formally align and coordi - more and more companies are nate these efforts.

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 1 1PART 2. Seventy-eight percent (78%) of 28% report moderate perform - SURVEY companies seeking alignment state ance enhancement, and 16% AND RESEARCH that their BI initiative is aligned to report minor performance en- FINDINGS support the business focus of their hancement. In total, 61% report BPM initiative. that BPM has had a positive performance impact. 3. Companies with coordinated BPM and BI initiatives are three times as pThe predominant uses of BPM are likely to have achieved major busi - for planning, budgeting, forecast - PART 1: ness performance improvements ing and generation of scorecards SURVEY AND RESEARCH compared to organizations with and dashboards. More than half FINDINGS uncoordinated efforts. of companies with BPM initiatives reporting the use of these key 4. Companies that have exploited BPM capabilities. This suggests PART 2: available BI and BPM technologies that companies are attracted to SOLUTION OVERVIEWS AND to support their business improve - the basic BPM value proposition— CASE STUDIES ment initiatives have had higher the systematic use of advanced success rates in achieving business planning and control methods and objectives than those who have tools. In effect, BPM provides a AUTHOR not exploited them. closed-loop performance control INFORMATION system with the ability to align, measure, manage and improve all BPM FINDINGS core aspects of business perform - 1. There is widespread adoption of ance—which ultimately improves BPM: 41% of respondent companies profits. have BPM initiatives, 23% are consid - ering or planning one, and 18% recog - pFifty-five percent (55%) have nize that their company would benefit invested in BPM products/tools, from a BPM initiative. Based on this which provide scalable core func - data, it is reasonable to conclude that tionality to efficiently and effec - BPM has become a mainstream tool tively execute recurring plan - within the managerial toolkit. ning/budgeting, control and business improvement processes 2. Of the companies that are using for organizations of all sizes. At BPM: the same time, 27% have not invested in BPM products/tools, pSeventeen percent (17%) report and 37% report that they rely on that BPM has delivered major per - manual processes, static reports formance enhancement, another and Excel spreadsheets to gener -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 2 1PART ate performance measures and 2. Of the companies that are SURVEY key performance indicators using BI: AND RESEARCH (KPIs). This suggests there is a FINDINGS large value creation opportunity pTwenty percent (20%) report that for companies that have not BI has delivered major perform - invested in BPM products/tools, ance enhancement, another 41% given that the cost of manual report moderate performance processes for generating perform - enhancement, and 19% report ance measurement information minor performance enhancement. PART 1: often exceeds $100,000 per year In total, 80% report that BI has SURVEY AND RESEARCH and sometimes exceeds $1 million had a positive performance FINDINGS per year. impact.

pThere is widespread use of BPM PART 2: to measure business performance The predominant uses SOLUTION OVERVIEWS AND after the fact (63%), to analyze of BI are to improve core CASE STUDIES and correct the root causes of under performance (49%) and to processes that drive use past performance to predict performance and AUTHOR future performance (35%). In the INFORMATION profits . . . future, there will be an increased emphasis on using BPM to correct performance problems and pre - pThe predominant uses of BI are dict future performance as com - to improve core processes that panies mature in their use of drive performance and profits, BPM. including financial management (64%), sales and marketing (59%), business performance BI FINDINGS management (47%), operations/ 1. There also is widespread adop - supply chain (42%) and customer tion of BI: 67% of respondent com - service (37%). It is interesting to panies have BI initiatives, 15% are note that 47% of respondent considering or planning one, and companies are using BI for BPM 6% recognize that their company purposes—most likely for score - would benefit from a BI initiative. carding and dashboarding but Based on this data, it is reasonable possibly for budgeting (historical to conclude that BI also has become financial data), root cause analy - a mainstream tool within the mana - sis of performance problems gerial toolkit. (trend data) and predicting future

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 3 1PART performance. This suggests an ness results can be achieved when SURVEY overlap and confluence between BPM and BI are aligned, supported by AND RESEARCH BI and BPM capabilities and meth - technology, and managed as a power FINDINGS ods as well as the need to coordi - combination. Given the complexity nate BI and BPM investments and and information intensity of modern execution. business, it is easy to see why leaders and managers would want to have pEighty-eight percent (88%) have invested in BI products/tools, PART 1: which provide scalable core func - SURVEY AND Viewed as a whole, the RESEARCH tionality to deliver business infor - FINDINGS mation and analytic applications survey results clearly that are used to measure, manage demonstrate that BPM and improve the performance of PART 2: key business processes and to and BI are widely adopted SOLUTION OVERVIEWS AND thereby drive profit improve - and, used individually, CASE STUDIES ments. Over 50% have used BI for more than 3 years, 26% have used they have had very posi- BI for between 1 and 3 years, and tive impacts on business AUTHOR 19% are just getting started. In INFORMATION performance. terms of scope, over 50% report that BI is used by many or all func - tions within their companies. the best possible tools for driving Viewed as a whole, the survey performance and enhancing their results clearly demonstrate that BPM own professional success. In the next and BI are widely adopted and, used section of our research report, we individually, they have had very posi - examine key challenges and barriers tive impacts on business perform - to successful use of BPM and BI in ance. More importantly, survey concert to drive business perform - results indicate that superior busi - ance. p

SURVEY AND BPM and BI: A Power RESEARCH FINDINGS Combination

PART 1: SURVEY AND RESEARCH FINDINGS O EFFECTIVELY discuss targets across functions and up and how BPM and BI can down organizational levels. PART 2: be used in concert, it is SOLUTION OVERVIEWS AND important to have a 2. Historical transactional data for CASE STUDIES useful working definition of terms. budgeting, forecasting and predic - TFor purposes of our survey, we tive analysis. defined BPM and BI as follows: AUTHOR Workflow technology to coordi - INFORMATION 3. Business performance manage - nate budget formulation and ment (BPM) is a systematic approval processes. management process for plan - ning and budgeting enterprise 4. Current period and year-to-date performance, measuring per - financial and operational data to formance against financial and report performance against targets, operational targets, and taking often using scorecards and dash - corrective actions. boards but also using standard financial reports. The BPM process can leverage modern tools for planning, budget - 5. Recurring variance analysis and ing, forecasting, predictive analysis, corrective action planning tech - and financial reporting and consoli - niques to identify and correct the dation. Full-function BPM imple - root causes of unfavorable perform - mentations typically use: ance variances.

1. Strategy mapping, cascading Business intelligence (BI) is a sys - and balanced scorecards to estab - tematic approach to delivering lish and communicate performance and leveraging business informa -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 5 1PART tion and analytical applications to the financial and operational outcome SURVEY improve business performance. of corrective actions. AND RESEARCH A close look at the definitions and FINDINGS BI can leverage modern data inte - at the technology products that gration, data quality, data presenta - enable BPM and BI reveals that both tion, data analysis and decision sup - approaches: 1) rely heavily on his - port tools to provide leaders and torical performance data and refer - managers with a powerful tool for ence data about, e.g., customers, driving process improvement, busi - products, financial results, opera - PART 1: ness performance and profit improve - tional results and company business SURVEY AND RESEARCH ment. Full-function BI environments units; and 2) have overlapping uses, FINDINGS typically deliver high quality, timely e.g., for generating scorecards, business information and analytical dashboards, financial and opera - applications that enable companies to tional reports, forecasts and predic - PART 2: clearly understand the specific factors tive analysis. Given these facts, it is SOLUTION OVERVIEWS AND that drive their performance, recog - important that BPM and BI be CASE STUDIES nize opportunities for performance implemented within a common and improvement, analyze the root causes coordinated framework, such as the of performance issues, and predict one shown as FIGURE 1.1 AUTHOR INFORMATION

FIGURE 1: BPM and BI Used in Concert to Drive Business Performance

1. Figure 1 is adapted from Williams, S. “Power Combination: Business Intelligence and the Balanced Score - card,” Strategic Finance , May 2008.

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 6 1PART is where BI comes into the picture. SURVEY As shown in the box on the right side AND BPM tools generally have of Figure 1, BI is aimed at perform - RESEARCH taken an application- FINDINGS ance management and process specific view of business improvement, and to accomplish information. these tasks BI ideally delivers busi - ness information and analytical applications obtained from a single Working from the top down source of enterprise data—the so- PART 1: within Figure 1, we see that effec - called “single version of the truth.” SURVEY AND RESEARCH tively using BPM and BI in concert FINDINGS requires alignment between strate - gies, plans, goals, resources/bud - BPM AND BI ALIGNMENT: gets and the information and analyt - WHY ARE THEY DOING IT? PART 2: ics needed to measure, manage and Both BPM and BI are concerned with SOLUTION OVERVIEWS AND improve performance. Traditionally, business performance, which is deter - CASE STUDIES BPM (the box on the left) has been mined by the sum of a company’s aimed at strategic management and value chain activities—that is, the performance management and core business processes of the firm AUTHOR reporting, and a common BPM shown across the bottom of Figure 1. INFORMATION approach is to use strategy maps and BPM has traditionally been more balanced scorecards to formulate about planning and measuring per - and communicate strategies, goals formance, whereas BI has been more and objectives and then report actual about measuring, managing and performance. Advanced BPM tools improving performance. Given that help automate the strategy mapping both focus upon the use of informa - process and the subsequent cascad - tion and fact-based management to ing of performance targets to busi - achieve improved business perform - ness units. These tools also help with ance, organizations that formally budgeting, financial modeling and coordinate BPM and BI efforts and financial reporting. That being said, that use BPM and BI technologies to BPM tools generally have taken an do so have the following motivations, application-specific view of business reflected in the survey results as information, i.e., each budgeting or shown in FIGURE 2 (see page 8). financial modeling tool creates and Many of the problems these coor - provides a data repository that is dination objectives address stem designed for the use of each specific from using manual approaches for BPM application as opposed to shar - BPM which is shown in FIGURE 3 (see ing data at the enterprise level, which page 8) . The shortcomings of man -

SURVEY AND RESEARCH FINDINGS

PART 1: SURVEY AND RESEARCH FINDINGS

FIGURE 2: Coordination PART 2: SOLUTION Objectives OVERVIEWS AND CASE STUDIES

AUTHOR INFORMATION

FIGURE 3: Problems with Manual Approaches to BPM

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 8 1PART ual BPM were explored by another SURVEY These data problems survey question and primarily relate AND RESEARCH to turning data into the information suggest that strong FINDINGS BPM requires. coordination between These data problems are generally solved by IT through the use of data BPM and BI is funda- warehousing, data integration and mental for using these data quality methods and tools, complementary and which can provide an integrated PART 1: data environment to support both reinforcing tools cost- SURVEY AND RESEARCH BPM and BI. In fact, survey respon - effectively. FINDINGS dents indicate that the primary roles for IT within BPM initiatives are: pLack of awareness of potential PART 2: pData architecture support (65%) BPM benefits (54%) SOLUTION OVERVIEWS AND pData integration support (60%) pThe need for BPM not being rec - CASE STUDIES pTool selection and/or implemen - ognized by the right people (37%) tation (52%) pThe perception that BPM is too expensive or not worth it (17%) AUTHOR These data problems suggest that Lack of knowledge about how to INFORMATION p strong coordination between BPM begin and implement a BPM ini - and BI is fundamental for using tiative (14%) these complementary and reinforc - pThe need for BI not being recog - ing tools cost-effectively. Further, nized by the right people (33%) the results indicate that strong IT pThe perception that BI is too expen - involvement is essential to avoiding sive or not worth it (25%) a number of data quality issues, pLack of awareness of potential which can quickly derail adoption of BI benefits (17%) advanced tools such as BPM and BI. If business users don’t trust the These findings suggest that the IT data, they won’t use the tools—a function within companies, the con - major opportunity lost in today’s sultant community, the analyst com - competitive environment. munity, and the BPM and BI vendors For those organizations that do need to do a better job of explaining not currently utilize a coordinated BI the value propositions for BPM and and BPM approach to achieve an BI. Since 60% of BPM initiatives and optimal information advantage, 54% of BI initiatives are launched by common organizational barriers to the business side of companies, the adoption included the following: identified challenges and barriers

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 9 1PART also suggest that business leaders BPM and BI, including joint gover - SURVEY and managers need to be educated nance and planning (56%), common AND RESEARCH about BI and BPM so that they under - definitions, data architecture and FINDINGS stand the potentially powerful impact data stores (46%), and BPM/BI liai - these managerial methods and tools son (40%). Twenty percent (20%) can have on performance and profits. have a formal competency center; We see the need for education as a however, that mechanism was only joint business/IT responsibility: the selected in combination with one or business side needs to invest in ed- more of the other three. Fifty percent PART 1: ucation, and the IT side needs to pro - (50%) of the time, multiple coordi - SURVEY AND RESEARCH mote education to the business. nation mechanisms are used. FINDINGS

BPM AND BI ALIGNMENT: BPM AND BI ALIGNMENT: PART 2: HOW ARE THEY DOING IT? WHAT ARE THE RESULTS? SOLUTION OVERVIEWS AND FIGURE 4 indicates that a variety of Our survey indicates that there is a CASE STUDIES coordination mechanisms are used strong business performance payoff to coordinate the requirements for for organizations that invest in and

AUTHOR INFORMATION

FIGURE 4: Coordination Mechanism

SURVEY AND RESEARCH FINDINGS

PART 1: SURVEY AND RESEARCH FINDINGS

PART 2: SOLUTION OVERVIEWS AND CASE STUDIES

AUTHOR Figure 5: Strong Payoff for Coordinated Programs INFORMATION

coordinate BPM and BI programs. efforts were more likely to have As indicated in FIGURE 5, almost BPM initiatives initiated by the chief 36% of organizations that have for - executive officer (CEO) in compari - mally coordinated these efforts son with uncoordinated BPM report major business performance efforts, which were more often initi - enhancements compared to only ated by a chief information officer 11% that do not. Almost 80% of (CIO). In summary, these survey organizations with coordinated results support a compelling busi - efforts report either moderate to ness case for coordinated BPM and major business performance im- BI efforts that fully leverage organi - provements versus only 44% that zational information and existing do not coordinate. BPM and BI technologies to monitor Another interesting finding was and actively manage business per - that organizations with coordinated formance. p

SURVEY AND Methods and Tools for BPM RESEARCH FINDINGS and BI Alignment

PART 1: SURVEY AND RESEARCH FINDINGS PM AND BI initiatives may have a materially adverse profit both aim to leverage impact. In contrast, companies that PART 2: business information have well-aligned BPM and BI initia - SOLUTION OVERVIEWS AND to improve the per - tives exhibit the following: CASE STUDIES formance of core value chain activi - Bties of the firm. They are focused on pOrganizational alignment. The the same business processes and BPM and BI teams operate with AUTHOR generally the same business infor - clearly defined and mutually rein - INFORMATION mation. If uncoordinated, there is a forcing charters that encompass, good chance of incurring adverse in part, a shared responsibility for consequences such as inefficiency, linking BPM performance meas - data redundancy, data quality and urement with BI performance comparability issues, and IT mainte - management and improvement. nance cost increases. More broadly, lack of alignment pBusiness process alignment. The may have adverse strategic and eco - BPM and BI teams each focus on nomic implications for the company. the same business processes for For example, absent a clear align - improvement and in the same ment with BI, the BPM initiative may order of priority. Each BI release create a false sense of security will either: a) improve the effi - among business executives that ciency of the BPM performance they have the business information, measurement, reporting process, analytical tools and structured deci - variance analysis and corrective sion support they need to improve action process; and/or b) deliver business performance, which could new business information, analyti - translate to lost performance cal tools and/or decision support improvement opportunities that to enable management and

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 12 1PART improvement of the targeted busi - effort. A BPM initiative typically SURVEY ness processes. begins with construction of a strategy AND RESEARCH map, selection and definition of KPIs FINDINGS pBudget alignment. Funds for actual and supporting measures, and the performance measurement—the selection of target values for each. scores in the scorecard, perform - Implementation of this BPM ance reporting via the BPM, and design often is done in phases development of BI for perform - rather than with a “big bang” ance management and improve - approach. Each BPM implementa - PART 1: ment—are rationalized across the tion phase includes a project that SURVEY AND RESEARCH initiatives. supplies the necessary data, calcu - FINDINGS lates the KPI/measure values, and pData and technical architecture presents these actual values com - alignment. The BPM and BI teams pared to their targets—and this is PART 2: work within a unified data architec - where BI makes its contribution. SOLUTION OVERVIEWS AND ture and suitable technical archi - In addition to projects to support CASE STUDIES tecture that enable automation of BPM, the company almost certainly BPM processes and that deliver BI has a number of non-BPM-related for managing and improving the opportunities for BI to add value. AUTHOR business processes that drive the BPM and BI alignment entails INFORMATION scorecard and dashboard results. managing all of these BPM and BI activities as a managed portfolio of Achieving these elements of BPM projects. FIGURE 6 depicts a method - and BI alignment requires conscious ology for doing so.

FIGURE 6: Method for Aligning BPM and BI Initiatives

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 13 1PART Working from left to right across that drive the performance measures SURVEY the top of Figure 6, we see three pri - reported via BPM scorecards and AND RESEARCH mary processes and specific busi - dashboards. The result is a much FINDINGS ness deliverables. The first process more robust performance manage - is to create a BPM and BI vision, ment asset. which is done by analyzing BPM and The second part of the alignment BI opportunities to leverage busi - process is to identify risks and ness information, analytical tools change imperatives associated and structured decision support with the BPM and BI initiatives in PART 1: techniques to improve business per - general and the alignment process SURVEY AND RESEARCH formance. Since the key objective in particular. This is done via a FINDINGS for both BPM and BI initiatives is structured BI and BPM readiness performance improvement, we also assessment, which looks at such need to have a high-level under - factors as whether the company is PART 2: standing of the core business leveraging the reported BPM per - SOLUTION OVERVIEWS AND processes that need to be meas - formance measures and available CASE STUDIES ured, managed and improved. BI, and whether the company has From these analyses, we can the technical ability to deliver an understand common information integrated data and technical envi - AUTHOR requirements for both BPM and BI ronment that would support both INFORMATION initiatives, and align those informa - BPM and BI. The process also evalu - tion requirements within the BI port - ates the BI and BPM data architec - folio. For example, we would not ture from efficiency, responsiveness, want a BPM application to show dif - flexibility, scalability, cost and data ferent performance results than BI quality perspectives. applications would show for the The last process incorporates the same process. By systematically results and deliverables from the identifying common needs for busi - first two processes into a compre - ness information between BPM and hensive BI and BPM program plan BI initiatives, we avoid the inefficiency that is customized for a given com - and data quality issues spawned by pany with respect to alignment uncoordinated efforts. Further, by between BPM and BI initiatives. The identifying the core business pro- program plan provides a roadmap cesses of interest for BPM purposes, for achieving alignment between the we can align BI applications that offer BPM and BI initiatives, and sets the not only performance measurements, stage for technical execution that but also business information, analyti - ensures that BPM and BI informa - cal tools and structured decision sup - tion requirements are met. port for improving the core processes Once a program plan has been

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 14 1PART developed and implemented, a key and BI is attested to by our survey SURVEY task will often be to select and imple - results, where we found that: AND RESEARCH ment the technology and tools FINDINGS required to deliver BPM and BI func - 1. Fifty-five percent (55%) of com - tionality. There is a wide range of rel - panies surveyed have invested in evant tools to consider, and a BPM products/tools. detailed treatment of these is beyond the scope of this report. That being 2. Forty-nine percent (49%) of com - said, modern BPM and BI tools pro - panies reported using BI technologies PART 1: vide a wide range of functionality that and tools to automate the recurring SURVEY AND RESEARCH is essential for leveraging BI and BPM process of generating BPM measures FINDINGS as a power combination to improve and KPIs. performance and profits. Key func - tional capabilities include: 3. Eighty-eight percent (88%) of PART 2: companies surveyed have invested SOLUTION OVERVIEWS AND pRobust data warehousing, data in BI products/tools. CASE STUDIES integration and data management platforms that enable a shared data 4. Sixty-five (65%) of companies environment that can be used by have implemented BI using enter - AUTHOR BPM and BI applications alike. prise data warehouses and/or data INFORMATION marts. pSpecific BPM and BI capabilities offered within a single solution 5. Thirty-nine percent (39%) of package, e.g., BPM application companies have implemented BI platforms that leverage BI tools using independent data marts. for data integration, storage and reporting within a BPM suite that 6. Thirteen percent (13%) of com - enables planning, financial model - panies have deployed BI using the ing, budgeting, financial consoli - SaaS (on-demand) model. dation and predictive analysis. There are many highly regarded pBPM/BI solutions based on the tools available from strong BPM and software-as-a-service (SaaS) BI vendors, including the exciting delivery paradigm as a means of tools provided by our sponsors for starting quickly and reducing ini - this reportHost Analytics, Infor and tial investment in BPM/BI. Teradata. We encourage readers to review the case studies and vendor The importance and prevalence of overviews included at the end of this technology and tools to enable BPM research report. p

SURVEY AND RESEARCH FINDINGS BPM and BI in Action

PART 1: SURVEY AND RESEARCH FINDINGS S OUR SURVEY dis - you call it enterprise performance covered, 54% of management, business performance PART 2: companies who management or corporate perform - SOLUTION OVERVIEWS AND have adopted BPM ance management, there is no deny - CASE STUDIES are using the scorecard and dash - ing that the ability to measure per - Aboard functionality. Further, 47% of formance from financial, customer, companies that have adopted BI are operational and learning perspec - AUTHOR using it for enterprise performance tives is valuable. INFORMATION management. This suggests a con - Another view of BPM is as a fluence between BPM and BI, and recurring management process. we will illustrate how the two com - After the initial strategy maps have bine to provide a robust and scala - been created and cascaded, the ble performance management objectives have been decided and capability. the targets have been defined, there In addition to being a strong tool is a regular performance measure - for communication of key strategies, ment and reporting cycle, which is BPM provides clear linkages often monthly. As you might imag - between strategies, the business ine, for a company of any size and processes by which the strategies complexity, the number of measures are executed and the key measures to be reported every month as the needed to gauge business perform - measures are “cascaded” into the ance. BPM provides the baseline for organization can become unwieldy. performance measurement; and Further, the scope of business infor - according to industry research, mation required to report the meas - many companies who adopt BPM ures can be quite broad and may are satisfied with the method and require data integration from several plan to continue its use. Whether sources. Many companies that use

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 16 1PART recurring BPM reporting process SURVEY cannot be automated and based on AND RESEARCH integrated data. FINDINGS More broadly, performance meas - urement is only one part of the per - formance management cycle. To illustrate, let’s say that an enter - prise-level performance measure is order-to-cash cycle time. Let’s fur - PART 1: ther assume that this measure has SURVEY AND RESEARCH been cascaded down to the compo - FINDINGS nent business processes, e.g., order processing; pick, pack and ship; transit to customer; and so on, as PART 2: depicted in FIGURE 7. SOLUTION OVERVIEWS AND At the end of a reporting period, the CASE STUDIES designated executive and managers receive the information regarding the FIGURE 7: Resulting Reports measures appropriate for their posi - AUTHOR tions as shown in FIGURE 8. INFORMATION From this performance measure - largely manual methods for BPM ment data, we see three measures expend large sums of money to pro - for which targets were not met. duce BPM report—in some cases That being said, these measures, more than $1 million per year. Given and BPM in general, do not provide the current state of BI practice and the business information, analytical tools, there is no reason why the tools and structured decision sup -

FIGURE 8: Cascading Cycle Time

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 17 1PART port that is needed to actually Looked at holistically, BPM estab - SURVEY improve business performance in lishes a performance measurement AND RESEARCH relation to specified targets. For that baseline. BI can automate the per - FINDINGS we need BI. For example, BI could formance measurement process, enable us to investigate order pro - and it can deliver business informa - cessing time and find out that one tion, analytical tools and structured of our large customers exceeded its decision support to improve the credit limit, causing its orders to go core processes that drive the ability on credit hold and driving the order to achieve targeted business per - PART 1: processing time measure above tar - formance. Accordingly, BPM and BI SURVEY AND RESEARCH get. Or it could enable us to drill should be aligned to work together FINDINGS into distribution center order resi - as complementary tools in the per - dency time and find out that several formance management toolkit. This orders were held waiting for the idea is shown in FIGURE 9. PART 2: arrival of an out-of-stock item from Viewed as a whole, Figure 9 illus - SOLUTION OVERVIEWS AND one of our suppliers. trates how BPM and BI can be CASE STUDIES

AUTHOR INFORMATION

FIGURE 9: BPM and BI in the Performance Management Toolkit

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 18 1PART aligned and interleaved to create a the BPM tool to generate inputs to SURVEY dynamic performance management the budget process. AND RESEARCH asset. At the center of it all, of The goal setting part of step 2 FINDINGS course, is company performance, sets the stage for cascading finan - which in a BPM environment that cial and operational objectives, per - uses the balanced scorecard as its formance measures and perform - framework is viewed from the four ance targets throughout the key perspectives: financial, cus - organization. These can be simple tomer, operational and learning. BI is hierarchical cascades or quite com - PART 1: also focused on company perform - plex cascading to cross-functional SURVEY AND RESEARCH ance, particularly if guided by busi - business processes based on differ - FINDINGS ness-driven design and portfolio ent organizational roles. In any management methods. event, the objectives, measures and Starting at the top of Figure 9 and targets need to be relevant and PART 2: moving clockwise, step 1 of the per - clearly tied to business processes SOLUTION OVERVIEWS AND formance management cycle begins that drive company performance. CASE STUDIES with using the balanced scorecard Skillful completion of step 3 estab - method of strategy mapping to link lishes the performance measure - company strategies to the core busi - ment framework and baseline, AUTHOR ness processes via which the strate - which when linked to compensation INFORMATION gies are realized. This sets the stage and artfully reinforced will ensure for step 2 , in which the strategic management attention to the busi - management framework is used to ness processes that contribute to guide goal setting, compensation strategic success. alignment, budgeting, improvement Step 4 is the recurring manage - initiatives and so forth. We show a ment process we described earlier. bidirectional flow between steps 1 Generally on a monthly cycle, but and 2 because of the possibility of possibly more frequently depending budget and resource constraints on the level within the company and shaping business strategy. In this the appropriate operational control context, companies that have cycle, BPM is used to report actual adopted BPM tools might also use performance results from the four the financial modeling and budget - balanced scorecard perspectives. ing capabilities of those tools to for - Within this context, the financial mulate balance sheet and income consolidation and financial report - statement targets and allocate ing capabilities of a BPM tool can be these to business units. Further, they leveraged to create the appropriate might use the profit modeling and reports. More broadly, the publica - business optimization capabilities of tion of BPM reports triggers vari -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 19 1PART information timeliness (49%), SURVEY More specifically, BI insufficient level of information AND RESEARCH can be used to drill down detail (44%) and poor information FINDINGS into the root causes of quality (37%—it becomes clear that leveraging BI to automatically gen - performance variances erate and cascade BPM measures and to improve the under- and KPIs is a substantial economic lying core business opportunity in many cases. This is why we show a bidirectional flow PART 1: processes that drive the between steps 4 and 5 , whereby BI SURVEY AND RESEARCH actual performance can be used to automate this recur - FINDINGS ring management control process. measured and reported That being said, a BPM report is a by BPM. kind of BI and is a key driver of man - PART 2: agement motivation to use BI to SOLUTION OVERVIEWS AND understand unfavorable variances CASE STUDIES ance analysis, management reviews and develop improvement strate - and corrective action planning. gies. More specifically, BI can be In larger companies, the process used to drill down into the root AUTHOR of generating the measures, format - causes of performance variances INFORMATION ting BPM reports and variance and to improve the underlying core analysis/corrective action planning business processes that drive the can be complex and manually inten - actual performance measured and sive. In our survey, 37% of respon - reported by BPM. This is reflected dents reported that performance by the interplay between steps 5 management measures and KPIs are and 6 . generated manually or by a manu - In addition to the specific process ally intensive process of drawing analysis and improvement capabili - information from standard reports ties delivered by BPM/BI combina - and entering it into spreadsheets. tion, the results of steps 4 through 6 As a result, 39% of companies provide strategic feedback, as spend more than $100,000 per year shown by step 7 . For any given BPM to generate manual BPM reports, reporting cycle, there are actual per - with 14% spending more than formance measures and BI-enabled $500,000 per year. When these analysis of variances and improve - facts are combined with the ment opportunities, which provide reported data problems associated valuable strategic learning that with BPM report—lack of consistent feeds into a higher-level company information (54%), inadequate performance analysis during step 8 .

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 20 1PART The performance management SURVEY cycle is then able to close the loop BPM and BI are compa- AND RESEARCH by using strategic feedback and tible and complementary FINDINGS enterprise performance information within the BPM strategic planning tools that focus on process. Steps 7 and 8 are more company performance. likely to be done on a quarterly or annual basis, whereas steps 4 through 6 will often be recurring timely performance measurement. PART 1: monthly and/or biweekly manage - But measurement alone is not SURVEY AND RESEARCH ment processes, with the frequency enough. Managers have continually FINDINGS dictated by the nature of the busi - expressed the need for business ness and the industry. information, analytical tools and Moving back to overall perform - decision support so that they can PART 2: ance management perspective, we improve the actual processes that SOLUTION OVERVIEWS AND see that BPM and BI are compatible drive the performance measurement CASE STUDIES and complementary tools that focus numbers. And that is what BI is on company performance. If we drop about. Taken together and skillfully BI from of the equation, we see that aligned, BPM and BI provide a robust AUTHOR BPM is very suitable for establishing tool set for enabling highly effective INFORMATION the strategic management frame - performance management, which is work and performance management ultimately management’s most baseline, and it can be used for essential and fundamental task. p

SURVEY AND RESEARCH FINDINGS Conclusion

PART 1: SURVEY AND RESEARCH FINDINGS T IS CLEAR FROM our survey behind their backs. Given that the results that BPM and BI have cost of modern BPM and BI tools is PART 2: made their way into the main - minor relative to their returns, this SOLUTION OVERVIEWS AND stream as key tools in the mana - would appear to be an unduly risky CASE STUDIES gerial toolkit. Both are widely state of affairs. For public compa - Iadopted, both have produced posi - nies, one could also argue that fail - tive results, and both are focused on ure to capitalize on BPM and BI is a AUTHOR improving the core business pro- INFORMATION cesses that drive profits and busi - ness results. It is also clear from the BPM and BI have pro- survey that substantial economic duced positive results, opportunities exist for the minority and both are focused of companies that have not adopted BPM and BI, and for those compa - on improving the core nies that have adopted BPM but business processes have not leveraged BI to automate recurring management processes that drive profits and such as strategic planning, goal set - business results. ting, financial modeling, forecasting, budgeting, scorecarding, dash - breach of management’s fiduciary boarding, variance analysis and the responsibility to shareholders use of predictive analytics to model because inadequate planning and and optimize business performance. control mechanisms increase risk These companies are leaving money and reduce profits in relation to a on the table year after year, and more optimal performance profile. their leaders and managers are In today’s competitive global econ - competing with their hands tied omy, that seems reckless. p

PART 1: SURVEY AND RESEARCH FINDINGS 2

PART 2: SOLUTION OVERVIEWS AND SOLUTION OVERVIEWS CASE STUDIES AND CASE STUDIES

AUTHOR INFORMATION Host Analytics Solution Overview Host Analytics Case Study: Acciona Energy-North America

Infor Global Solutions Technical Overview Infor Case Study: BlueLinx Corporation

Teradata Corporation Solution Overview Teradata Corporation Case Study: AT&T Mobility

23 2PART

SOLUTION OVERVIEWS Host Analytics AND CASE STUDIES Solution Overview

PART 1: SURVEY AND RESEARCH FINDINGS COMPANY BACKGROUND sumer packaged goods (Otis Spunk- Host Analytics is a provider of BPM meyer, Paramount Farms), financial PART 2: solutions delivered via a software- services (DHI Mortgage, JPMorgan SOLUTION OVERVIEWS AND as-a-service (SaaS) delivery model Chase), manufacturing (Signet CASE STUDIES and supports continuous improve - Armorlite, Inc.), retail (McCoys), ment in methods and tools. Founded services (MWH Global) and technol - in 2000, it serves the enterprise, ogy (Sigmatel). Gartner added the AUTHOR large and midsized company and company to its 2010 magic quadrant INFORMATION public sector markets. for corporate performance manage - The Host Analytics Decision Plat - ment (CPM) suites. (Note: both Host form reveals the full implications Analytics and Gartner use the term of decision—both risk and reward. corporate performance management As the industry’s first on-demand (CPM) whereas this report uses the corporate performance manage - term business performance manage - ment (CPM) suite, Host Analytics ment (BPM). For the purposes of this improves budgeting, forecasting, report, CPM and BPM are synony - financial consolidations, dash - mous.) boarding, scorecarding, reporting A privately held company, Host and analysis to drive fact-based Analytics has venture capital back - decisions for all executives. Host ing from Advanced Technology Ven - Analytics has been named among tures, StarVest Partners, Trident JMP Securities’ Hot 100: The Best Capital and Next World Capital. Privately Held Software Companies and the AlwaysOn OnDemand 100. BPM SOLUTION Host Analytics has customers in a The Host Analytics solution is com - number of industries, including con - posed of three applications:

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 24 2PART pHost Analytics Budget, including business information that is stored SOLUTION Expense Planning and specialized in a central location for quick and OVERVIEWS AND CASE applications for Revenue Planning, easy access. The browser displays STUDIES Capital Planning, Workforce Plan - and functions in Excel format so it’s ning and Project Planning very familiar to users. pHost Analytics Consolidator pHost Analytics Scorecard

All three applications share: The Host Analytics solu- PART 1: tion is composed of Host SURVEY AND A unified database RESEARCH p Analytics Budget, Host FINDINGS pA common Excel-like user inter - face for collecting and updating Analytics Consolidator plan, actual and metric informa - and Host Analytics PART 2: tion normally not captured SOLUTION Scorecard. OVERVIEWS AND through other systems CASE STUDIES pA consistent modeling methodol - ogy providing the ability to flex actual results with plan infor- Reduce time on maintenance. With AUTHOR mation the flexibility of Excel comes risk, INFORMATION pRobust scenario management for but Host Analytics Budget mitigates using understand the decisions that risk by providing database- that need to be made given differ - driven templates. Formulas and ent economic and operational values are not trapped in the cell scenarios metaphor but centrally stored for pIntegrated reporting dynamic reporting with database- driven calculations.

HOST ANALYTICS BUDGET Stay on top of the process. In order Host Analytics Budget helps execu - to control the budgeting process, it tive decision making become a fact- is critical to know the progress of all based, highly efficient process and plans and have the ability to pin - helps managers, during the planning point bottlenecks and delays. Host cycles, understand the full impact of Analytics Budget will validate budg - decisions, both risk and return. ets automatically based on an orga - nization’s guidelines and targets. Save time with familiar Excel format. Reports are available on who has Decision makers can simply use the budget, when they got it and their Internet browser to access who submitted it.

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 25 2PART Maintain an accurate, dynamic HOST ANALYTICS SOLUTION plan throughout the year. Host Ana - CONSOLIDATOR OVERVIEWS AND CASE lytics Budget simplifies the refore - Host Analytics Consolidator pro - STUDIES casting process by eliminating vides visibility and structure to drive problems associated with multiple quick and controlled consolidations. linked spreadsheets. Host Analy- tics Budget’s flexibility will assist in Helping with Sarbanes-Oxley. Host modeling different company sce - Analytics Consolidator reduces the narios and monitoring company effort of Sarbanes-Oxley compli - PART 1: performance as the year pro- ance in financial reporting. Internal SURVEY AND RESEARCH gresses. and external transparency is FINDINGS improved and complete audit trails Access reports easily. Host Analyt - are provided. ics Budget data is stored in an PART 2: OLAP database for easy informa - The control panel manages and SOLUTION OVERVIEWS AND tion access. Report output can be processes all financial consolidation CASE STUDIES easily set to HTML or Excel for - tasks. Host Analytics Consolidator mats. Reports can be organized and goes the extra step by providing an stored together in “briefing books,” outline and live snapshot of the AUTHOR so that groups of reports can be entire workflow process through the INFORMATION accessed or printed quickly and Host Analytics Control Panel, which easily. has a closing and locking mecha - nism built in. If any validation rules Initiative-based project planning. or journal entries are not complete, Ho st Analytics Budget has unique the reporting site and administrator functionality that allows managers are alerted and the entire process to plan and compare the outcome of will display incomplete and data is alternative investment decisions. not rolled up. Executives have access to all the required data and visibility into Checks and balances. financial risks and returns in order to pDisplays the steps needed for the allocate resources in the most prof - conversion and who is responsible itable way. pProvides status on completion of Sarbanes-Oxley checks and Specialized packaged functional processes Enables the administra - modules. Host Analytics budget has tor to view the entire status of the specific modules for workforce plan - consolidation process ning, revenue planning and capital pIdentifies and prevents bottle - planning. necks

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 26 2PART pAllows the administrator to tent revenue planning and drives SOLUTION execute tasks predictable sales growth. OVERVIEWS AND CASE STUDIES Built-in financial consolidation Establishing an accurate view of and reporting functionality. Business future sales is the cornerstone of rules, not cryptic scripts, offer a financial planning. For most compa - simple way to manage the complex - nies, the business plan is driven ity of the consolidation process. from the revenue forecast, from ordering supplies, planning opera - PART 1: Organization rules manage the tions, projecting inventories, deter - SURVEY AND RESEARCH complexities of minority interest mining headcount and approving FINDINGS calculations, subsidiaries on mul - capital expenditures. Yet many busi - tiple fiscal years, complex equity nesses still create the revenue fore - ownership, multilevel elimination cast from an ad hoc, antiquated sys - PART 2: journal entries and multiple tem supported by linked SOLUTION OVERVIEWS AND accounting methods. spreadsheets and the workflow is CASE STUDIES managed by email. Currency conversion rules manage currency conversion based on FASB Top-down, middle-out and bottom- AUTHOR 8, 52 and 95, including the temporal up planning. These modeling tools INFORMATION method of currency conversion as minimize time wasted building mul - required for remeasurement or tiple spreadsheets and maximize hyperinflationary environments. model flexibility. This flexibility allows managers to analyze the Allocation rules allow for the business in a dynamic way: by cus - configuration of multilevel alloca - tomer, by store, by location, by SKU tions across divisions and depart - channel or delivery method and ments. adjust numbers based on changing business conditions. Consolidation rules manage the sequence and processing of sub - Flexible, feature-rich budget tem - sidiaries in the financial consolida - plates. Host Analytics Revenue tion process. Planning input templates are ren - dered in a browser, in an “Excel-like” smart grid. The interface is data HOST ANALYTICS driven, dynamic and configurable to REVENUE PLANNING revenue planning dimensional Host Analytics Revenue Planning requirements (e.g., product by cus - solution is flexible, provides consis - tomer, by channel, etc.). These tem -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 27 2PART plates handle discrete formulas to streamlined process, sales, opera - SOLUTION manage complex pricing schemes tions and finance can anticipate OVERVIEWS AND CASE and multistage sales contracts. future performance, manage cus - STUDIES Users can create scenario compar - tomer expectations and allocate isons in order to drive the refore - resources with reduced costs. casting process. The system sup - ports complex revenue recognition modeling including perpetual HOST ANALYTICS licensing agreements, maintenance SCORECARD PART 1: revenue calculations, subscription Host Analytics Scorecard offers visi - SURVEY AND RESEARCH revenue calculations, accretions and bility and flexibility to drive account - FINDINGS amortizations. ability-focused scorecards.

Customized workflow. This intuitive Driving success through metrics. PART 2: process helps users create their Visibility in every direction is essen - SOLUTION OVERVIEWS AND forecasts and budgets and allows tial to measuring business perform - CASE STUDIES managers to understand everyone’s ance. The balanced scorecard is a status in the plan creation and tool that is specifically designed to update process. This applies to any let managers understand higher AUTHOR type of planning frequency: fore - level KPIs and how these drive the INFORMATION casting once per year, every quarter metrics in their area. Senior execu - or monthly. Workflow reports on tives can analyze how the perform - where an organization is in the ance measures cascade through the process, who participated and who organization and report variances to has not yet provided data, including plan and make course corrections sales, marketing, operations and when required. finance. Help management ask the right Sales and operations planning questions. Simply log into the secure automation. Host Revenue Planning corporate network and view KPIs. provides the functionality to auto - These indicators may show prob - mate the sales and operations plan - lems with KPIs such as on time ning (S&OP) process. Utilizing input delivery and average time for order templates, key team members pro - entry to shipment which can vide their expectations regarding shift focus to underperforming unit sales and delivery. The group areas. then meets to form a consensus estimate of the expected future Stay focused on objectives. The sales and delivery. Through this ultimate purpose of Host Analytics

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 28 2PART Scorecard is to guide daily behavior Server Analysis Services OLAP SOLUTION toward continuous improvement. engine and thin client integration OVERVIEWS AND CASE Host Analytics Scorecard is effec - with Excel). The Host Analytics STUDIES tive because it translates big picture solution utilizes a multi-tenant goals into objectives that manage - architecture. ment can track and employees have Host Analytics has partnered with the ability to impact. The solution Boomi and uses its integration has dashboards with signals, alerts, adapters to common source sys - dials and graphs to make sure vari - tems, such as Salesforce, SAP ERP, PART 1: ances are communicated to deci - Microsoft Dynamics CRM, Work - SURVEY AND RESEARCH sion makers. Day and more. FINDINGS Host Analytics has partnerships Full configuration to match solution with two BI SaaS vendor—PivotLink to processes and KPIs. Use Host and Birst—to complete the BPM and PART 2: Analytics Scorecard as a standalone BI vision along with providing trans - SOLUTION OVERVIEWS AND for performance management or actional level drill down within the CASE STUDIES combine it with Host Analytics Host Analytics product suite. Budget to have integrated perform - ance-based budgeting that aligns AUTHOR strategy with the budgeting process. HOST ANALYTICS’ STRATEGY INFORMATION Host Analytics offers two primary differentiators. TECHNOLOGY AND One is the SaaS BPM solution. PARTNERSHIPS Host emphasizes the fundamental Because, in a SaaS deployment, the aspects of the SaaS value proposi - customer’s data is in the “cloud” tion: quick implementation and rather than on site, security is a lower cost as well as supporting potential customer concern that continuous improvement in meth - SaaS solution providers must ods and tools used to drive perform - address. Host Analytics operates ance. Customers can start their two SAS 70 Level II certified data implementation with Host Analytics centers to provide the SaaS environ - Budget, Host Analytics Scorecard or ment for its solution. Its applications Host Analytics Consolidator and have C2 level security. work through the other implementa - Host Analytics is a Microsoft Gold tions as the internal processes Certified Partner. Its solution was adjust to support the complete built using Microsoft development BI/BPM process. tools and uses the Microsoft BI Secondly, Host provides a deci - stack (SQL Server database, SQL sion platform for exposing the full

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 29 2PART implications of decision—both risk gence” layer—containing business SOLUTION and reward. rules, business models and business OVERVIEWS AND CASE Host Analytics leverages its SaaS logic—to BI and partners with Birst STUDIES model to offer external content and and PivotLink to complete this benchmarks. It is working to offer vision. external content and benchmarks Host Analytics targets the finance specific to selected vertical indus - function in its sales efforts, because tries. finance departments are the buyers Host Analytics more explicitly of BPM solutions. For about 60% PART 1: links BPM and BI than some other of its customers, the legacy system SURVEY AND RESEARCH BPM vendors, and knows that being replaced is Excel-based, so it FINDINGS “scorecards are the table of con - emphasizes the “Excel-like”-ness tents of corporate information.” and ease of use of its user inter- Host Analytics BPM adds an “intelli - face. p PART 2: SOLUTION OVERVIEWS AND CASE STUDIES HOST ANALYTICS CASE STUDY:

AUTHOR INFORMATION Acciona Energy-North America

COMPANY BACKGROUND farm, EcoGrove Wind Farm in Illi - Acciona Energy, a wholly owned nois, can produce 100.5 MW of subsidiary of the Spanish company energy to power more than 25,000 Acciona, develops and operates U.S. home s. renewable energy projects, includ - For solar power, Acciona Energy- ing solar, wind, biomass, biofuels North America employs Concentrat - and small hydro. Parent company ing Solar Power (CSP), a technology Acciona, publicly traded on the that uses thousands of mirrors to Spanish stock exchange but con - concentrate the sun’s rays onto a trolled by the Entrecanales family, solar receiver, providing clean, reli - had 2009 revenue of ¤6.5 billion able and cost-efficient renewable ($5+ billion). energy. Its joint venture Nevada Acciona Energy-North America, Solar One, the first CSP plant to be the subject of this case study, owns built in the last 17 years and the third operational wind farms in North largest in the world, is a 64 MW America, totaling 525 megawatts plant with the capacity to create (MW). Its most recent wind electricity equivalent to the needs of

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 30 2PART approximately 14,000 homes annu - SaaS solution and an on-premises SOLUTION ally. The company also has a plant system from another software ven - OVERVIEWS AND CASE that builds wind turbines. dor. The 5-year total projected cost STUDIES The spokesperson interviewed for of both systems was similar, but the this case study was Tom Sullivan, on-premises system entailed more Manager of Financial Planning and up-front cost and required internal Analysis of Acciona Energy. IT support, which Acciona Energy would have had to hire or contract. Acciona Energy selected the Host PART 1: THE BUSINESS PROBLEM Analytics solution and had it up and SURVEY AND RESEARCH When a new director of accounting running within 60 days. FINDINGS and manager of financial planning Acciona Energy-North America and analysis joined the company in uses the Host Analytics Budget and mid-2008, problematic accounting Consolidator applications. It intends PART 2: processes and systems were found. to, but does not yet, use the Score - SOLUTION OVERVIEWS AND A Peachtree accounting system was card application. Actuals from the CASE STUDIES in place, but the closing process Peachtree accounting system are was inefficient and the result was loaded into Host Analytics, which is lengthy reporting timetables. All used for all financial reporting and AUTHOR financial reporting was done using analysis. INFORMATION Excel. The budgeting process, also The company is licensed for 55 Excel-based, took input from al- users. Almost 50 people use the most 50 people. Creating the con - system during formulation of the solidated company budget used annual budget, and many of these more than 90 intricately linked users are beginning to use Host Excel workbooks. Analytics for ad hoc reporting. The Compounding the problem, finance department has 10 to 15 Acciona Energy-North America has users, 5 to 6 of whom use the sys - no internal IT resources: all IT work tem every day. is outsourced. This meant that no IT resources were available to help implement, operate or support more BENEFITS automated budgeting and financial Host Analytics is a cost-effective so- reporting systems. lution to Acciona Energy-North America’s budgeting and financial reporting needs. The SaaS model fits THE SOLUTION well with its lack of internal IT The company evaluated two BPM resources. alternatives, the Host Analytics The finance function has expanded

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 31 2PART laborious for the finance depart - SOLUTION Reports now are ment to execute. OVERVIEWS AND CASE available at the individual STUDIES department level, which FUTURE PLANS has helped uncover At present, only the wind energy anomalies. portion of the company uses the Host Analytics solution. It is work - ing to extend its use to the solar PART 1: the amount of information it makes energy operation and eventually to SURVEY AND RESEARCH available to executives and the the wind turbine plant. FINDINGS operating departments. As an Acciona Energy-North America example, reports now are available intends to implement an ERP sys - at the individual department level, tem, but its plans to do so have been PART 2: which has helped uncover data put on hold due to economic condi - SOLUTION OVERVIEWS AND anomalies. Financial information is tions. It hopes to be one of the first CASE STUDIES more accurate, available sooner and adopters of ERP software to be with greater detail than before. selected by Acciona, its Spanish The monthly financial close parent company, for the entire AUTHOR process and especially the annual enterprise. ERP implementation will INFORMATION budget development process are entail changes to the data sources automated, less error prone and less for its Host Analytics solution. p

SOLUTION OVERVIEWS Infor Global Solutions AND CASE STUDIES Technical Overview

PART 1: SURVEY AND RESEARCH FINDINGS COMPANY BACKGROUND vate equity firm Golden Gate Capi - Infor Global Solutions offers enter - tal Partners. It has over $2 billion in PART 2: prise software for enterprise revenue, 70,000+ customers and SOLUTION OVERVIEWS AND resource planning (ERP), customer more than 8,000 employees. The CASE STUDIES relationship management (CRM), company was founded (as Agilisys) enterprise asset management, in 2002 and since then has made financial management, human capi - more than 25 acquisitions, including AUTHOR tal management, product life cycle MAPICS, Geac and SSA Global. INFORMATION management, performance man - agement and supply chain manage - ment. A global company with offices BPM SOLUTION: in more than 100 countries, Infor INFOR PERFORMANCE has solutions for manufacturing, MANAGEMENT (PM 10) distribution, and services industries. Infor Performance Management Its customers include: (PM 10) is designed for companies in all industries that seek to better pThe top 10 aerospace monitor, measure and manage their companies business performance in real time to p9 of the top 10 high tech and improve competitive advantage. electronics companies With PM 10, a company can harness p21 of the top 35 life sciences its data—wherever it resides—to companies better understand the business p7 of the top 10 brewers environment, streamline and pMany others improve the effectiveness of finan - cial processes and prepare options Infor is a privately held company for competing successfully. whose primary shareholder is pri - Closed-loop performance manage -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 33 2PART ment follows a cycle from strategy to accurate forecasts that help manage SOLUTION execution and incorporates the performance expectations, make OVERVIEWS AND CASE results of the strategy into the next tactical adjustments and achieve STUDIES cycle. It includes business processes performance goals. Generate rolling for strategy, planning, budgeting, forecasts, check the accuracy of consolidation and forecasting. Infor submitted plans and receive auto - PM 10 supports the processes of matic alerts that allow issues to be closed-loop performance manage - easily spotted as they arise—so ment via a set of core components: action can be taken quickly. PART 1: SURVEY AND RESEARCH pStrategic management Financial consolidation. Improve cor - FINDINGS pPlanning and budgeting porate accountability, increase pForecasting financial transparency and meet pFinancial consolidation government-mandated reporting PART 2: pReporting and analysis deadlines confidently. Collect, SOLUTION OVERVIEWS AND pMultidimensional analysis process, report and analyze data in CASE STUDIES pAdvanced query and analysis multiple currencies as well as report on the effects of currency fluctua - Strategic management. Use a cause- tions. IPM helps organizations AUTHOR and-effect framework to link strate - ensure compliance with GAAP, IFRS, INFORMATION gic plans to operational plans, per - Sarbanes-Oxley, FASB, Basel II and formance measures and people. XBRL. IPM also provides financial Management gains an intuitive, reporting capabilities to automate visual method of reporting on how the generation, formatting and dis - the actions of operating units and tribution of book quality financial individuals are contributing to the statements and management success of strategic goals. reports.

Planning and budgeting. Easily cre - Reporting and analysis. Provide busi - ate and compare multiple “what if” ness intelligence by accessing, filter - scenarios, test assumptions, assess ing, analyzing and publishing infor - the impact of events and model the mation throughout the organization. business to meet targets and high- All reports are instantly web level objectives. At the same time, enabled and can be deployed using any number of zero-based, histori - standard web browsers. With inte - cal-based, and rolling budgets and gration to other Infor PM applica - plans can be designed. tions, reports for production report - ing, budgeting and planning can be Forecasting . Create statistically built.

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 34 2PART Multidimensional analysis. Get Better global service and support: SOLUTION memory-resident OLAP capabilities OVERVIEWS AND CASE that ensure fast access to large pLocalized versions of solutions STUDIES volumes of summarized data. The pSupport and training available in underlying technology of this solu - 20 languages tion makes it simple to browse data pInfor365 collaborative community from any angle and level of detail. Flexible buying options: Advanced query and analysis. With a PART 1: powerful, flexible and customizable pTraditional software licenses SURVEY AND RESEARCH Microsoft Excel add-in, report and pHosted applications FINDINGS analyze data in Excel without need - pSoftware as a servicee ing multiple tools or dealing with time-consuming imports. This solu - Specific to its PM 10 performance PART 2: tion can also be used as a platform management solution, Infor offers SOLUTION OVERVIEWS AND for building and deploying analytic these points of differentiation: CASE STUDIES applications. Integrated information presentation via MyDay. Infor MyDay is a user AUTHOR INFOR STRATEGY interface for Infor solutions based INFORMATION The product strategy supports on the concept of user personas. Infor’s value proposition to cus - Each persona is based on in-depth tomers: research into how an end user does his/her work and interacts with Continuous innovation: information to do that work. It encompasses that person’s respon - pMore software choices sibilities, daily tasks, skills, work pCustomers can add solutions at environment, management hierar - their own pace chy, and goals and challenges. pService-oriented architecture Based on understanding each user (SOA) enables faster, less disrup - persona, Infor has prebuilt reports tive response to changing busi - and metrics specific to it. The user ness requirements does not need to know in which pFaster implementation application, module, database table, pFast start programs etc. the information of interest to pTemplate-based business editions him/her resides. for many solutions pOnePoint implementation Source system inclusivity. PM 10 can methodology draw data from other Infor solutions,

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 35 2PART non-Infor ERP, general ledger and Comprehensiveness of solution. Infor SOLUTION other applications, Access databases, PM 10 supports the entire closed- OVERVIEWS AND CASE Excel spreadsheets, etc. It is designed loop performance management STUDIES to be able to take data from whatever cycle. source(s) the customer has. Scalability of solution. Infor PM 10 is Unified database. All the core com - an appropriate performance manage - ponents of PM 10 share the same ment solution for enterprises of all database, in contrast to some of its scales and levels of complexity. It is PART 1: competitors which have a separate used by companies ranging from very SURVEY AND RESEARCH database for each performance small to global companies with more FINDINGS management module. than $4 billion of annual revenue. p

PART 2: SOLUTION OVERVIEWS AND INFOR CASE STUDY: CASE STUDIES BlueLinx Corporation

AUTHOR INFORMATION COMPANY BACKGROUND and more). Major competitors are BlueLinx Corporation was born in Weyerhaeuser Company and Boise 2004 when Cerberus Capital Man - Cascade LLC. agement, a private equity firm, and BlueLinx operates a network of 68 a team of executives purchased the warehouses and a fleet of 600+ distribution division of Georgia- tractors and 1,000+ trailers and has Pacific Corporation. It became a sales centers in Denver and Atlanta. publicly traded corporation in 2005, It distributes more than 10,000 with Cerberus retaining 55% products from 750 vendors to ownership. 11,500 customers. BlueLinx is a Fortune 1000 com - The BlueLinx spokesperson inter - pany (2009: $2.78 billion revenue; viewed for this case study was #722) and the largest distributor of Michael D. Shaw, IT Project Manager. building products in the United States. It distributes products in two categories: structural products (ply - APPLICATION LANDSCAPE wood, oriented strand board, rebar AND BI ENVIRONMENT and lumber) and specialty products When spun-out from Georgia-Pacific, (roofing, insulation, vinyl products BlueLinx took its application sys -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 36 2PART tems and associated infrastructure division, BlueLinx did financial SOLUTION with it. One of these systems was reporting using Microsoft Access as OVERVIEWS AND CASE Infor Infinium, an IBM AS/400- the reporting front end to a SQL STUDIES based ERP system that BlueLinx Server database, with both the data - uses for procurement, general base and the reporting being owned ledger, accounts payable and by the accounting department accounts receivable. Most of the rather than IT. This approach other application systems were worked for a division with no exter - internally developed custom appli - nal reporting requirements—its PART 1: cations running on SQL Server; operations were included in Geor - SURVEY AND RESEARCH these include customer order pro - gia-Pacific’s external reporting. FINDINGS cessing and warehouse manage - The spin-out from Georgia-Pacific ment systems. in 2004 and the IPO in 2005 brought The BlueLinx culture of internally significant new financial reporting PART 2: developing applications extends to requirements—all those of a publicly SOLUTION OVERVIEWS AND its BI efforts. It has a SQL Server- traded company. The home-grown CASE STUDIES based data warehouse that supports Access-based financial reporting sys - both reporting and a number of ana - tem could not satisfy those additional lytic applications. One of these ana - requirements. In addition, the AUTHOR lytic applications is a “contribution monthly close process took 1.5 INFORMATION model” that allocates costs to prod - weeks, even though the accounting ucts and customers. (Each of staff worked significant overtime; BlueLinx’s 68 warehouses is a sepa - both the elapsed time and the staff rate profit center and has its own workload were unacceptable. P&L; this entails complex cost allo - cation.) A pricing model that uses full product costing and a desired THE SOLUTION gross margin to dynamically deter - Leveraging its existing relationship mine the price to quote customers is with Infor, BlueLinx selected Infor’s being implemented. Performance Management Suite, BlueLinx uses the SQL Server tool PM 10, to replace its home-grown set, Visual Basic and .NET to Access-based financial reporting develop both its transaction pro - system. It considered financial cessing and BI applications; it does reporting solutions from Cognos not use a BI tool. and Hyperion, but chose Infor PM 10 because it met the requirements at significantly less cost. THE BUSINESS PROBLEM BlueLinx used Infor Professional During its days as a Georgia-Pacific Services to improve the perform -

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 37 2PART ance of its PM 10 implementation. down from 10.5 days, a reduction of SOLUTION Professional Services recommended one week, with the accounting staff OVERVIEWS AND CASE that BlueLinx build multidimensional working normal hours. STUDIES cubes using Microsoft SQL Server Analysis Services (SSAS) and have PM 10 access the data from the FUTURE PLANS cubes, rather than using the rela - BlueLinx is working to implement tional Business Integration Services inventory reporting using PM 10. It (BIS) database that comes with PM will build a separate SSAS cube PART 1: 10. The SSAS cubes approach dra - containing the inventory data, and SURVEY AND RESEARCH matically improved performance. PM 10 will draw data from that FINDINGS IT has taken over responsibility for cube. the back end (the SQL server data - BlueLinx has licensed the entire base and SSAS cubes), while Infor PM 10 suite, which has five PART 2: accounting staff self-serve their core components: strategic man - SOLUTION OVERVIEWS AND reporting needs using PM 10. agement, planning and budgeting, CASE STUDIES forecasting, financial consolidation, and reporting and analysis. It cur - BENEFITS rently uses the financial consolida - AUTHOR Infor PM 10 fulfills BlueLinx’s exter - tion and reporting and analysis INFORMATION nal reporting needs. The monthly components, and might use addi - close process now takes 3.5 days tional components in the future. p

SOLUTION OVERVIEWS Teradata Corporation AND CASE STUDIES Solution Overview

PART 1: SURVEY AND RESEARCH FINDINGS COMPANY BACKGROUND owned by NCR Corporation, but Teradata Corporation focuses on then spun-off as a public company PART 2: improving decision agility through (NYSE: TDC). SOLUTION OVERVIEWS AND database software, integrated data CASE STUDIES warehousing, data warehouse appliances and business analytics. BUSINESS ANALYTICS Teradata has more than 950 cus - OFFERINGS FOR BPM AUTHOR tomers worldwide and over 1,900 AND BI INFORMATION installations of its parallel database Using a full suite of tools, applica - management software. It has large tions, consultants and partnerships, and prominent customers in retail Teradata users integrate financial (Walmart, Tesco, SUPERVALU Inc.), data with customer, operational banking (Royal Bank of Canada, (e.g., POS, web clicks, orders, prod - Wells Fargo, Bank of America), uct production and supply chain telecommunications (AT&T, Bell data) and industry data, facilitating Canada, Vodafone), airlines (Ameri - cross-functional analyses through - can Airlines, Continental Airlines) out the enterprise. By linking finan - and other industries. In 2010 Tera - cials to key operational drivers, Ter - data was recognized as a “Top 10 adata serves as a crucial foundation Most Strategic Vendor” by Informa - for both business intelligence and tionWeek . business performance manage - Teradata is a Fortune 1000 com - ment. pany (2009: $1.709 billion revenue; Teradata complements its core #979). Founded in 1979 in a garage scalable data warehouse technology in Brentwood, California, Teradata and services with a wide array of has 6,000 employees in 60 coun - applications and partnerships perti - tries. From 1991 to 2007 it was nent to BI and BPM.

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 39 2PART TERADATA DECISION TERADATA RELATIONSHIP SOLUTION EXPERTS MANAGER OVERVIEWS AND CASE Used by customers such as Qantas Teradata Relationship Manager STUDIES Airlines, Office Depot and O2, Tera - (TRM) assists companies such as data Decision Experts (TDEs) are Hallmark Cards, National Australia flexible, prepackaged and integrated Bank and Lloyds Banking Group to data models for key subject areas gauge and optimize the perform - including general ledger, accounts ance of marketing activities. Analyt - payable, accounts receivable, pur - ical insights from TRM ensure that PART 1: chasing, fixed assets, project businesses communicate with their SURVEY AND RESEARCH accounting, inventory, order man - high value customers with the right FINDINGS agement, human resources and pay - content and offers at the right time. roll. Leveraging Decision Experts TRM has three interrelated mod - with Teradata’s industry data mod - ulesCampaign Management, Offer PART 2: els provides customers the ability to Optimizer and Marketing Resource SOLUTION OVERVIEWS AND link financial data and operational Manager (MRM). Teradata MRM is CASE STUDIES drivers, and provides a platform for “BPM for Marketing,” so marketing consistent calculation of all KPIs leaders can: and metrics. AUTHOR Manage, coordinate and track INFORMATION p marketing budgets TERADATA VALUE pManage and simplify distribution ANALYZER of digital assets Companies such as DHL and Royal pAutomate and coordinate market - Bank of Canada use a calculation ing process workflows enterprise- engine called Teradata Value Ana - wide lyzer (TVA) to understand the prof - pTrack and analyze marketing cam - itability of processes, products, pro - paign performance grams and customers. Teradata pImprove coordination and man - Value Analyzer (TVA) drives the agement of outside agencies analysis of activity-based profitabil - ity at both detailed and aggregate levels. TVA captures object level TERADATA/ORACLE HYPERION financial events by defining business PARTNERSHIP rules associated with the drivers (or Companies such as BNSF, Nation - components) of profitability, e.g., wide and Verizon benefit from the calculation of direct costs versus partnership of Teradata and Oracle indirect costs. for BPM and BI solutions. The part - nership integrates and optimizes

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 40 2PART Teradata with Oracle Business Intel - accelerate the deployment and exe - SOLUTION ligence, Oracle Essbase and Oracle cution of business analytics. This OVERVIEWS AND CASE Enterprise Performance Manage - includes data integration, model STUDIES mentwhich includes Oracle Hyper - development and deployment, and ion Financial Management and Ora - forecasting and reporting. The two cle Hyperion Planning. companies have participated in more than 350 global customer engagements spanning multiple ver - TERADATA/SAP tical markets. PART 1: PARTNERSHIP SURVEY AND RESEARCH As a database platform for SAP FINDINGS Business Objects Business Intelli - ADDITIONAL gence and Information Manage - PARTNERSHIPS ment solutions, Teradata improves Teradata and MicroStrategy have a PART 2: BI across SAP and non-SAP data. 14-year-old alliance based on sev - SOLUTION OVERVIEWS AND Freescale, a major semiconductor eral years of successful integration CASE STUDIES manufacturer, used Teradata and at approximately 200 customers, SAP joint technology to optimize its including Hudson’s Bay and the U.S. financial close process. Another Postal Service. AUTHOR quality analytics project drove $100 Teradata partnerships with IBM INFORMATION million in improved gross margin Business Analytics (Cognos and from increasing manufacturing lot SPSS) date back more than 12 years. yields. Other reference customers Together, Cognos, SPSS and Tera - include Coca-Cola, Ford and the data provide a flexible and compre - Hershey Company. hensive performance management solution used by more than 200 joint customers such as Sabre Hold - TERADATA/SAS ings and Barclays Bank. PARTNERSHIP The Teradata and SAS partnership focuses on ability to run and opti - BUSINESS ANALYTICS STRATEGY mize key SAS analytics within the FOR BPM AND BI Teradata database engine, leverag - Teradata believes that a successful ing the core parallel processing BPM implementation requires inherent in Teradata’s architecture. tightly linking a company’s entire The Business Insight Advantage information flow to business program combines the Teradata processes, corporate strategy and BI database platform with the SAS capabilities. As a company’s official Business Analytics Framework to keeper of results and statistics, the

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 41 2PART finance organization doing BPM leverage the same data source for SOLUTION derives value from the ability to see BPM tools for forecasts and moni - OVERVIEWS AND CASE all financial data in one place with toring actuals as well as for BI inves - STUDIES common data definitions and com - tigations that drill into manufactur - mon business rules. FIGURE 10 shows ing production anomalies or show the Teradata Reference architecture shifting markets or customer pur - for BPM/BI and critical elements chase patterns. delivered through Teradata technol - ogy, tools, professional services and 2. Innovation. Often 80% of the PART 1: partnerships. cost of a new project is finding and SURVEY AND RESEARCH A shared, warehouse-centric sourcing data. By sharing the data, FINDINGS approach to BPM and BI has several business groups can more quickly advantages over stovepiped, sepa - invent and build new KPIs and rate but independent, approaches to value-added applications. PART 2: building BI applications, score - SOLUTION OVERVIEWS AND boards/dashboards and BPM capa - 3. Business alignment. Aligning CASE STUDIES bilities: front-line groups whose actions impact daily operations with back- 1. Lower cost. Data needed by BI office departments effectively puts AUTHOR and BPM usually has high overlap. A everyone in the company on the INFORMATION shared data warehouse approach same page. Teradata customers dramatically reduces storage costs. often use BI to discover leading ver - Companies can simultaneously sus lagging indicators, which can

FIGURE 10 : Shared Warehouse-Centric Approach

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 42 2PART then be put on BPM dashboards. Or solid state disks, up to 24 ter - SOLUTION BPM-based financials or sales abytes (TB). Improves query per - OVERVIEWS AND CASE anomalies can be investigated with formance by a factor of 20. STUDIES BI tools to drill into details and detect causative factors. pExtreme Data Appliance for higher data, lower analytic compute 4. Accelerated insight and action. applications, up to 50PB of data. When data is loaded rapidly, Provides high amounts of cost- insights are fresher. The use of trig - effective online data for compa - PART 1: gers in Teradata helps analysts or nies with large data storage com - SURVEY AND RESEARCH front-line users react decisively to pliance requirements. FINDINGS time-critical business events, decreasing response times for cus - pData Warehouse Appliance for tomer-critical events with positive companies just starting their PART 2: impacts on dashboard scores for enterprise data warehouse SOLUTION OVERVIEWS AND customer delight. (EDW) efforts or for workgroups CASE STUDIES who require a production data Teradata’s Data Warehouse is mart, up to 514TB. based on a platform family of hard - AUTHOR ware products as well as Teradata 13 Data Mart Appliance is a starter INFORMATION p software, which runs across all sizes kit for first implementations or of platforms. testing/development, up to 6TB.

HARDWARE SOFTWARE The hardware platform family All these platforms run Teradata 13, includes: which features in-database process - ing for SAS analytics and statistical pActive Enterprise Data Warehouse functions, and recently announced for enterprise-wide centralized native support for SAP BW and data computing, supporting tens Business Explorer BEX with Teradata of thousands of simultaneous 13.10, which will be available later in users, up to 14 petabytes (PB). 2010. These capabilities are also used by a variety of BI reporting and pExtreme Performance Appliance analytics partners such as IBM Busi - for intensive, high performance ness Analytics (Cognos and SPSS), analytics and lower data work - MicroStrategy and SAP Business loads, featuring the first data Objects. In-database processing warehouse composed entirely of moves intensive computing inside

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 43 2PART the Teradata system, so complex ties for spatial analytics and visuali - SOLUTION SQL generated by these BI tools can zation as well as enhanced workload OVERVIEWS AND CASE exploit Teradata’s parallel process - management tools for DBAs to cre - STUDIES ing capabilities. This is much more ate and monitor workload queues efficient than copying data from Ter - for various kinds of simultaneous adata into separate data sets, com - workloads (ETL, ad hoc queries and puting remotely, and putting results operational queries with tight serv - back into Teradata, resulting in dra - ice level agreements). Teradata matically improved query process - Express for VMware and Amazon’s PART 1: ing times and far lower storage EC2 are two new offerings cus - SURVEY AND RESEARCH requirements. tomers or prospects can use to FINDINGS New features in Teradata 13 explore the use of private or public include native geospatial capabili - data warehouse clouds. p

PART 2: SOLUTION OVERVIEWS AND CASE STUDIES TERADATA CORPORATION CASE STUDY: AT&T Mobility AUTHOR INFORMATION

COMPANY BACKGROUND solidated ownership of Cingular AT&T Inc. is a telecommunications Wireless and Yellowpages.com, company comprised of pieces of the which previously were joint ventures former “Ma Bell” AT&T Corporation, between AT&T and Bell South. All which was broken up in 1984, and services now are offered under the numerous acquisitions. It includes 11 AT&T brand name. of the original Bell Operating Com - AT&T is #8 in the Fortune 500, panies and the AT&T Corporation with 2009 revenue of $123 billion. long lines division. This case study is about the wireless In 2005, SBC Communications business, AT&T Mobility, which is a Inc. (formerly, Southwestern Bell) $53.6 billion operating segment. acquired AT&T Corporation (the AT&T Mobility interacts with original “Ma Bell” parent company) 60,000 customers per day through and changed the name of the com - its retail stores, call centers and bined entity to AT&T Inc. In 2006, it other venues. In addition to its own acquired BellSouth (originally, 2,200 retail stores, AT&T Mobility Southern Bell and South Central also sells through national retailers Bell). The BellSouth acquisition con - and independent agents.

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 44 2PART AT&T Mobility is organized into based enterprise data warehouses; SOLUTION 27 geographic regions, each of these all continue in the combined OVERVIEWS AND CASE which is headed by a vice presi - enterprise. STUDIES dent/general manager who has full One of the enterprise data ware - P&L responsibility for all aspects of houses used by AT&T Mobility, and operations: network, infrastructure, the subject of this case study, is a stores, distribution, etc. The culture 700-terabyte “eCDW” Teradata is very sales-oriented, with an data warehouse that consolidated: emphasis on growing top-line rev - PART 1: enue. pAll wireless business SURVEY AND RESEARCH AT&T Mobility articulates its pMost consumer landlines FINDINGS objectives as: pNo regulated landlines

pGrowth: penetration of new mar - Historically, eCDW services 400 PART 2: kets and growth in existing mar - to 600 simultaneous users, a maxi - SOLUTION OVERVIEWS AND kets mum of 2,500 to 3,000 users per CASE STUDIES pReturn on operations and invest - day, running 200,000 traditional BI ments queries per day. AT&T Mobility uses pCustomer service and reputation most of the major BI reporting and AUTHOR Financial contribution to the par - analysis tools, including: INFORMATION p ent company pBusiness Objects, primarily by Matt Boos, Director of Perform - sales ance, Planning & Analysis, and Tim pMicroStrategy, primarily by con - McCabe, Executive Director of Data sumer marketing Warehousing for AT&T Mobility, pHyperion, primarily by finance were the spokespeople for this pCognos and many others interview. The eCDW data warehouse is used for more than just reporting; it DATA WAREHOUSING supports a number of BI applica - AND BUSINESS INTELLIGENCE tions, including: LANDSCAPE AT&T is an enormous enterprise pDeriving sales targets and new whose piece parts themselves are KPI options. quite large. Predecessor companies pMarketing campaign manage - AT&T Long Lines, SBC, Bell South, ment, using an analytic applica - Cingular Wireless and AT&T Wire - tion from Unica. less all had multi-terabyte Teradata- pUnified household view, which

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 45 2PART provides call center agents a uni - pletely satisfy the need for sales SOLUTION fied view of an AT&T Mobility cus - information so a project was OVERVIEWS AND CASE tomer. launched to widen access for STUDIES pPersonalized course of action, front-line users, specifically store which uses customer history and managers. The requirements lifetime value to determine a included: series of “next best” offers for a salesperson to present to a cus - pAccess. Provide self-service tomer. access to an order-of-magnitude PART 1: more users, including store man - SURVEY AND RESEARCH Most of the sales reporting from agers, marketing and finance FINDINGS eCDW is via the Sunrise data mart employees who need sales infor - running on the same Teradata hard - mation, and executives, some of ware, which integrates and con - whom need the ability to slice and PART 2: forms data from many sources dice, drill, and trend data. SOLUTION OVERVIEWS AND across a common organization hier - CASE STUDIES archy, product and other dimen - pFast value. Quickly and easily tell sions. The Sunrise data mart also store managers what they need to applies complex business rules to know about the operations of their AUTHOR calculate business defined metrics. stores. Store managers have little INFORMATION Information from the Sunrise data time—they want to spend less mart is accessible via Business than 10 minutes per day getting Objects and delivered via HTML their metrics—and are not inter - reports. ested in learning or using BI tools.

pCustomization. Each of the 27 THE BUSINESS PROBLEM/ regions has a unique competitive OPPORTUNITY situation, market share, and capa - AT&T Mobility has a large portfolio bilities, and therefore has a unique of Business Objects sales reports, strategy and objectives (or, at and each regional VP/GM has a least, a unique prioritization of reporting manager and staff who them). Each region and store develop new reports. Historically, needs a unique subset of perform - access to sales metrics was limited ance KPIs/metrics, with unique to standard HTML reports delivered weighting/prioritization tailored late in the day or new custom to its situation. reports developed by the regional reporting staff. While useful, the pEase of use. Although AT&T had a available reporting did not com - standard web access tool, it was

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 46 2PART too expensive to license and pEnables slice and dice by breaking SOLUTION required too much training to be down star schemas into check - OVERVIEWS AND CASE the right tool for store managers boxes, radio buttons, dropdowns STUDIES or executives. None of the many or list boxes. BI tools in use within AT&T Mobil - ity had the right functionality to pRealizes a “browse for my met - meet all the requirements of this rics” experience chosen from a application. “cafeteria” of 150 KPIs.

PART 1: pUp to date. An infrastructure that pProvides configuration choices SURVEY AND RESEARCH could deliver updated information used to drive the nightly ETL to FINDINGS timely (by 9:00 a.m. each day), load the right metrics. provide sub-second response time and handle tens of thousands of pAchieves quick response time by PART 2: users. precalculating all metrics. SOLUTION OVERVIEWS AND CASE STUDIES To support both the response THE SOLUTION time requirements and the large AT&T Mobility developed what it user population, both the data AUTHOR calls a sales dashboard, although model and the queries were highly INFORMATION the functionality of the application is tuned to deliver the specific and substantially more than a dash - predictable requirements of the board. It devoted significant time sales dashboard. and effort to working with all levels of users to understand their needs, spending more than 6 months in BENEFITS iterative prototyping. The sales dashboard application has The sales dashboard application been deployed and enables regional leveraged the existing Teradata- and store managers to proactively based eCDW and Sunrise data monitor and manage sales perform - mart. The front end is a custom Java ance based on the set of customized user interface that: KPIs that support their business objectives based on unique regional pUses cascading dropdowns to and store demographics and charac - navigate through the organiza - teristics. tional hierarchy. Each organiza - This project effectively leveraged tional level and region combina - AT&T Mobility’s existing investment tion sees a customized view of in Teradata (eCDW enterprise data what is useful to it. warehouse and Sunrise data mart).

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 47 2PART Thanks to the tuning of the data million for the first production SOLUTION model and queries, the sales dash - release. AT&T uses a waterfall- OVERVIEWS AND CASE board: oriented development methodology STUDIES called the IT Unified Process pHas consistently met all perform - (ITUP). To reduce the elapsed time ance goals specified in the service to deliver new BI/reporting, AT&T level agreements with user Mobility changed how it organizes groups. BI projects: IT is responsible for the infrastructure and the back end, PART 1: pRequired minimal additional hard - while the business group (sales SURVEY AND RESEARCH ware investment. The dashboard operations) is responsible for the FINDINGS queries run on the same box as front end, and the front-end devel - the BI queries with high priority opers belong to it. Building the sales compared to BI workloads. dashboard using this new approach PART 2: cost only $650,000 of internal SOLUTION OVERVIEWS AND pHas had no negative impact on labor, a significant cost savings to CASE STUDIES other eCDW query performance. alternate approaches for doing BPM. Using the same system for BI This project was estimated to and BPM paid big dividends for AUTHOR cost $1.5 million to initiate and $1 AT&T Mobility. INFORMATION p

COPYRIGHT © 2010 TECHTARGET P PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE 48 Nancy Williams is Vice Steve Williams is Founder AUTHOR President of Business Intelli - and President of DecisionPath INFORMATION gence and Data Warehousing Consulting, whose mission is to for DecisionPath Consulting. She leverage data warehousing, is a sought-after speaker, in - business intelligence and per - structor, author and consultant formance management tech - on BI/DW topics and has been a judge for TDWI nologies and methods to improve its clients’ best practices competitions for more than 10 business performance. He holds an MBA in Gen - years. She holds an MBA in General Manage - eral Management from the Darden School of the ment from the Darden School of University of University of Virginia. Virginia. Steve has written for many business journals PART 1: With Steve Williams, she is a co-author of The and magazines, including Strategic Finance, Busi - SURVEY AND Profit Impact of Business Intelligence and Decision - ness Trends Quarterly, Business Intelligence Journal RESEARCH Path’s BI Pathway Method. Nancy’s clients have and Information Management (previously DM FINDINGS included McCormick & Company, Marriott Inter - Review ). With Nancy Williams, he is co-author of national, Legg Mason, Taubman Centers, Stewart The Profit Impact of Business Intelligence (Else - Information Services, Principal Financial Group, vier/Morgan Kaufman Publishing, 2006). Steve’s PART 2: Travelers Insurance and the U.S. Social Security clients have included Pinnacle Foods Group, SOLUTION Administration. Nancy has an expert channel on United Natural Foods, Inc., McCormick & Com - OVERVIEWS AND the BeyeNETWORK at http://www.b-eye-net - pany, Toronto Hydro Corporation, Principal CASE STUDIES work.com/channels/1381/ . She may be con - Financial Group, the U.S. Treasury and the U.S. tacted at [email protected] . Social Security Administration. He may be con - tacted at steve.williams@decision path.com. AUTHOR INFORMATION

The authors wish to acknowledge the substantial contribution of their colleague, Bill Collins, for the insights pro - vided therein. Bill executed the survey and provided the scoring and analysis that form the basis for the findings reported here.

All product names mentioned in this report are the trademarks/ registration trademarks of their respective manufacturers.