issue 2 Specialization Equals Innovation in the World of Performance Management Software

2 An Interview with Geoff Ng from Prophix Software 5 EJ USA: Business Modeling Case Study 8 Reykjavik Energy: Budgeting, Reporting, and Planning Case Study

13 Magic Quadrant for Corporate Performance Management Suites

33 About Prophix

Featuring research from 2 l Specialization Equals Innovation in the World of Performance Management Software com/technology/about/ombudsman/omb_guide2.jsp. com/technology/about/ombudsman/omb_guide2.jsp. Independence andObjectivity” onitswebsite,http://www.gartner. and integrityofGartner research,see“GuidingPrincipleson funds ortheirmanagers. Forfurtherinformationontheindependence research organizationwithoutinputorinfluence fromthesefirms, firms orfunds.Gartnerresearchisproduced independentlybyits Boardof Directorsmayincludeseniormanagersofthese Gartner’s that havefinancialinterestsinentitiescovered inGartnerresearch. public company, anditsshareholdersmayincludefirms funds its researchshouldnotbeconstruedorused as such.Gartnerisa legal issues,Gartnerdoesnotprovideadvice orservicesand Although Gartnerresearchmayincludeadiscussion ofrelated opinions expressedhereinaresubjecttochangewithoutnotice. information containedhereinorforinterpretationsthereof. The shall havenoliabilityforerrors,omissionsorinadequaciesinthe accuracy, completeness oradequacyofsuchinformation.Gartner believed tobereliable.Gartnerdisclaimsallwarrantiesasthe The informationcontainedhereinhasbeenobtainedfromsources publication inanyformwithoutpriorwrittenpermissionisforbidden. products and/orstrategies.Reproductionordistributionofthis endorsementofProphix’s research doesnotindicateGartner’s permission. The useorpublicationofGartner used withGartner’s © 2012byGartner, Inc. All rightsreserved. All Gartnermaterialsare Prophix isindependentofGartneranalysis. All Gartnerresearchis Management SoftwareispublishedbyProphix.Editorialsupplied Specialization EqualsInnovationintheWorld ofPerformance 2300 Copenhagen Ørestads Boulevard73 Winghouse Phone: +4570232375 Prophix Europe England RG24 8AG Hampshire Basingstoke Lutyens Close Grove House Phone: 01256338611 Prophix UK Canada Mississauga, OntarioL5B3J1 350 BurnhamthorpeRoadW., Suite1000 Toll-free: 1-800-387-5915 Phone: 1-905-279-8711 Head office Management Software of Performance Innovation intheWorld Specialization Equals Henry Ford dollar, is boundtosucceed. instead ofhowlittlehecangivefora how muchhecangiveforadollar, constructive imaginationtosee The manwhowillusehisskilland

think that we live it and breathe it. think thatweliveitandbreatheit. software. CorporatePerformance Management iseverythingforus—we’dliketo specialists, ratherthangeneralists. Likeothernicheplayers,wewriteourown applications forspecificpurposes andfocusondistinctcustomergroups.We’re Exactly. The flipside ofbeingeverythingtoeveryoneisthatweoffer arangeof So Prophixtakestheview, insomeways,thatlessismore? work—just oneofseveralfactorsthatcontributestoveryhighprices. tough onIT; andthesoftwarerequiresfrequentmaintenanceupgrade coding work,whichequalsasteeplearningcurveforusers;theirproducts are they haveacquiredfromnichevendorsovertheyears;require complex tends tocobbleelementstogether, oftenasaresultofcombining productsthat do everything,butnothingparticularlywell.Softwarefromthemegavendors Certainly. In terms of functionality, however, their packaged business applications services. They havewhat wewouldcall‘householdnames’,right? It makessensethatthemegavendorswouldoffer awiderangeof Prophix iswithCPM,forinstance. customers andarenotnecessarilyasdevotedtooneparticulardiscipline—as constitute organizationswhomaintainmorerigidtouchpointswiththeir Management (CPM)providers.‘Megavendors’,locatedinthattoprightsection, Quadrant chart,whichprovidesqualitativeanalysisofCorporatePerformance to designateallofthevendorsoutsidetoprightportionontheirMagic some oftheseterms.IndustryanalystgroupGartnerInc.usestheword‘niche’ First off, Ithinkthatit’s importanttoqualify niche vendorsinyourview? differences betweenmegavendors andthe with megavendors.Whataresomeofthe customers mayfacewhenpairingup elsewhere aboutthedisadvantagesthat Prophix’s executiveshave spoken space. advantages intheadvancedbusinesssoftware so-called ‘nichevendors’ ownsomedistinct Product Planning,todiscusstheirviewthatthe We satdownwithGeoff Ng,Prophix’s VP, from ProphixSoftware An InterviewwithGeoff Ng Source: Prophix Specialization Equals Innovation in the World of Performance Management Software l 3 anticipating DPM’s release and this allowed them to prepare anticipating DPM’s and for modeling for demand planning, fixed asset planning, business problems across their organizations. feel like niche With that close level of interaction, do you vendors relate to their customers differently? our business, I do. Because of the manner in which we run just stands to It feedback translates to the product very quickly. to manage than reason that niche vendors have fewer customers focus to the the megavendors do, and can commit their entire the customers’ development of a single product that incorporates updates contain 50% new features needs. On average, Prophix’s our customer directly-related to requests or suggestions from per quarter. At this point, we average four updates base. Does this affect the product life cycle? the product Does this affect build straightforward product Niche vendors generally Certainly. updates. For instance, Prophix roadmaps, with more frequent version annually and at least one update releases a major new releasing a Megavendors might take years before monthly. for customers. major difference This equates to a new version. that needs to solve business problems, If you’re an executive your strategic you’ll understand very quickly how you can align CPM provider. goals with the developments at Prophix, your application, Operational planning with our latest signature a great example. Detailed Planning Manager (DPM), provides the works had several customers who were already well in We which contributes significantly to their ease of use. which contributes significantly to their ease of use. much simpler to maintain from a technical standpoint, and for and for much simpler to maintain from a technical standpoint, departments to upgrade or plan deployments. customer IT applications. Our customers don’t need to back up multiple up; we At Prophix, we build everything from the ground or system don’t combine multiple code bases, applications, learn one application, architectures. Business users only need to If I’m sitting here as a sales prospect, how does how does If I’m sitting here as a sales prospect, the points you someone at Prophix convince me that to my company have mentioned would make a difference at the end of the day? That means for one Prophix uses a single data source. Well, making it that all of the application data lives in one place, from that perspective, it stands to reason that unified functionality from that perspective, it stands to reason that technology platform with a common user interface and a common disparate advantages over purchased functions that feature offers produce technologies. So, at the very least, niche vendors maintain easily. software that users can implement quickly and financial processes—including budgeting, forecasting, and financial processes—including to comply with multiple reporting standards reporting that outputs without the requirement for complex coding, And yet like IFRS. to optimize a we can still quickly reorient the software in order solution for a customer’s unique business needs—we just don’t we view the situation have to alter our basic configuration. When Structurally, is there something different that sets the niche something different is there Structurally, apart? vendors like Prophix on you, we have pre-configured Without getting too technical to conduct common technological structure PROPHIX 10’s 4 l Specialization Equals Innovation in the World of Performance Management Software performance—and thosemodelswilldriveforecastsinother can developspecificmathematicalmodelstoevaluate models linkstrategicandoperationalperspectives.Departments PROPHIX 10,forinstance,IntegratedBusinessPlanning use ofasingleapplicationbuiltonunifieddatabase.Using IBP representsthewaveoffuturebecauseitprioritizes [Laughter] That’s great.We’re certainlybelievers. As Iseeit, really needmoreacronyms? Integrated BusinessPlanningorIBP. Doesyourindustry The new‘holygrail’,ifyouwill,intheCPMspaceis a CPMspecializationcannotprovide. because weoffer advantagestotheirbusinessesthatvendorswithout our customers. The customers,inturn,rewarduswiththeirpatronage innovate becauseweunderstandhownewdevelopmentscanbenefit business processesthatbenefitthecustomers. We constantlylookto process workflow, soitworksforawidearrayofminorandmajor We havedesignedPROPHIX10withanunderstandingofbusiness viewing historicaldata,tobuildtargetedplans. This simplywon’twork. Intelligence (BI)product,whichisconstructedalmostexclusivelyfor technical consultants.SomecompaniesmaytrytouseaBusiness perspective, Ishouldclarifythatwearebusinessexperts,not CPM fillsmajorneedsinthemarketplace.FromaProphix you attributethissuccess? impressive paceinrecentyears. To whatfactorswould CPM’s shareofthesoftwaremarkethasgrownatan functionality thatourcustomersrecommended,Imightadd. tools thatallowuserstopinpointtrendsandoutliers—advanced features anumberofimportantupgrades,includingvisualization Sure. KeepyoureyeoutforPROPHIX10R3.Ourlatestupdate anything morethatyou’dliketoadd? Thank youforsittingdownwithus,Geoff. Isthere single interface. from strategicplanstodetailedoperationalplans,allwithina into thedetailsfrommultipleperspectives,movingseamlessly such asDrill Across andDelta Analysis allowreviewerstodrill their companiestoconstructmoreintegrativeplans.Functions parts of the organization, preventing myopic views and enabling budgeting, planning, reporting, consolidation, and more. and consolidation, streamlines Prophix reporting, built stack, planning, solutions Server SQL budgeting, adaptable and and Microsoft the on powerful With entirely cost-of-ownership by low value with implementations. superior fast functionality deliver high-end partners business its into and combining insight Prophix valuable empower to gain performance. and leaders Prophix use finance of organizations countries their more Thousands hundred one risks. companies their nearly in making reducing and automate processes, to profitable designed operational and solutions innovative financial of management developer leading performance a is Software Prophix and therestofProductPlanningteamatProphix. We’ll keepoureyesoutfor newdevelopmentsfromyou

m Specialization Equals Innovation in the World of Performance Management Software l 5 Source: Prophix

email report distribution, and drillthrough to source data in our the Prophix offered AS/400 legacy system. More importantly, most benefits and an all-in-one solution that could expand to further uses.” At the beginning The initial implementation took three weeks. package would send Infinium G/L of each month, EJ’s file, which he would then data in a flat Spyhalski the company’s After a short time, EJ began to employ a import into Prophix. more sophisticated process, using an ODBC connection to two dozen locations in the USA and Canada, the organization two dozen locations in the USA Australia, and oversees business units in France, Ireland, revitalized brand, EJ, is the result of a The company’s China. undertook to unite comprehensive process that the organization Cavanagh, Norinco, their divisions—East Jordan Iron Works, a single name. and Havestock—under McCoy, Recognizing the problem for budgetingLike many companies, EJ used spreadsheets Joe grew. and encountered challenges as their organization that the noticed Accounting Manager, Cost Spyhalski, EJ’s to consolidatecompany experienced setbacks when attempting managers had 5-10 multiple spreadsheets. Spyhalski relates, “We it was a messwith their own spreadsheets for their areas, so trying to aggregate the data. Making changes became a clerical nightmare.” In his estimation, the company would have needed two full-time clerks just to keep track of the changes. “The budget processes soaked up a significant amount of time, so we resolved to purchase a budgeting and forecasting solution.” Implementing a solution According to vendors. software EJ investigated several different Spyhalski, “Prophix met our requirements for automated imports, www.ejco.com Background is a leading Operating since the late 1800s, EJ USA hydrants, tree grates, manufacturer of construction castings, fire Michigan and over and more. In addition to their headquarters in East Jordan, MI 1000+ in North America 1000+ in North Infinium for AS/400 Infinium for to consistently evaluate the health of their business and adjust accordingly a daily basis global operations Consolidates financials from EJ’s multitude of advanced models (tracking sales, raw A production, and more) enable EJ materials, inventory, EJ closes their books, including all reports and binders, EJ closes their books, including all reports and within 4 business days system AS/400 G/L Prophix interfaces with the Infinium via ODBC connection, automatically uploading data on • •  ROI • •  Head office: Employees: G/L: Industry Manufacturing (discrete) Company overview Operating since 1883 Prophix Case study Quick facts EJ USA: Business Modeling Case Study Business Modeling EJ USA: 6 l Specialization Equals Innovation in the World of Performance Management Software • •  of theseapplicationsinclude: of theorganization’s operations.Spyhalskidid exactlythat.Some he couldusethesolutiontomodelandevaluatemultipleaspects attended theProphixUserConferenceoneyearandrealizedthat company’s financialprocesses.Spyhalskiexplainsthathe EJ initiallyimplementedProphixforthedevelopmentof easier forallofus.” any formulas.We arestillinagrowthmodeandthismakesitlot structures automaticallyupdatewithoutrequiringustochange “Prophix offers ahugetimesavings,especiallybecauserollup has providedatremendousadvantage.Spyhalskidescribes, centers bysimplydragginganddroppingbranchesinthesystem globally, theirabilitytoaddnewsalesyardsormanufacturing because ofProphix’s integrationcapabilities. As EJexpands requests. The companycanalsoleveragetheirlegacydata data integrityandtheopportunitytoperformeffortless change Adopting Prophixhasoffered EJsignificantbenefits,including Benefits the systemanditupdatesournumbersacrossboard.” the informationandsenditback. The datagetssuckedbackinto form tofillout. Theythinkthatit’s Excel,butit’s not. Theyupdate When weforecast,forinstance,thesystemsendspeoplea work likecuttingandpastingdata.It’s ahugetimesaverforus. initiatives, automaticallydistributingreportswithoutanymanual use Prophix’s Workflow Managertoolformorethan30different automating financialprocessesisimpressive.“Atthispoint,we Spyhalski explainsthatthetimesavingsresultsfrom balance sheets,cashflow, andforecasts. company alsocreatedprocessesfortheirincomestatements, automatically transferinformationfromtheG/L toProphix. The

 data fromthesalescuberollsupinto theincomestatement.” within thesalescubeallowustoforecast demand. Additionally, vendor, poundsofmaterialssold,andmore.“Allthese variables type (e.g.,streetcasting,grate,oraccesshatch),salesyard, beginning withsalesbymonthandlocation,productcode A manufacturing system.” interacts withour average weightedcostsoftheirmetals. “Thisinformationalso A salesmodel raw materialsmodel

that incorporates a multitude of elements, thatincorporatesamultitudeofelements,

inventory model thatenablesEJtocalculatethe andtransfersinto our Specialization Equals Innovation in the World of Performance Management Software l 7

m Joe Spyhalski explains, “We have total visibility across our total visibility across our have “We Joe Spyhalski explains, and sales, and we’re really production, distribution, company’s that we’ve developed excited about the processes using Prophix.” planning team will develop financial In the near future, EJ’s tools, flexible budgets, and monthly more advanced visualization do what could never As Spyhalski says, “We variance reports. software tools we’re doing now without Prophix. Can other but the ones that I know of accomplish these things? Possibly, that Prophix cost ten times as much and they don’t do anything won’t allow.”

that EJ uses to marry

that automatically receives numbers that automatically receives financial consolidation model production model overseas subsidiaries. Using PROPHIX 10’s consolidation overseas subsidiaries. Using PROPHIX 10’s tools, EJ creates journal entries and intercompany and eliminations for the production of income statements balance sheets. When the plant managers receive their numbers at the end When the plant managers know their rates of efficiency in of each month, they already etc. pieces per hour, terms of molds per hour, A American financials with those of their North the company’s A A system in order to cross- time clock from the company’s the employees work with the reference how many hours other products that the plants produce. number of molds and 350 Burnhamthorpe Road West, Suite 1000350 Burnhamthorpe Road West, Mississauga, ON, Canada • L5B 3J1 • www.prophix.com 1-905-279-8711 • •  8 l Specialization Equals Innovation in the World of Performance Management Software Planning CaseStudy Reykjavik Energy:Budgeting,Reporting,and • • • • •  ROI G/L: Employees: ($269 millionUSD) +38.6 billionISK Annual revenue: Head office:Reykjavik,Iceland Company overview Public sector, utilities Industry Quick facts Prophix Casestudy   Offers userempowermentwithouttheneedforIT support art DetailedPlanningManager Conducts resourceplanningwithProphix’s state-of-the- solution Consolidated thecompany’s dataintoasingle,unified reporting, andplanningprocesses Streamlined andimprovedthecompany’s budgeting, Agresso 400

to readdresstheirbudgeting,planning,andreporting team atReykjavikEnergy(RE)selectedProphixinorder Suffering fromtheirrelianceonspreadsheets,thefinance www.or.is/english semi-annual basis. Reykjavik Municipalitydemanded planningandforecastingona the department’s struggles,boththeorganization’s CEOand the problems forthefinancialdepartmentasawhole.”Compounding to revisethenumbersinhisbudgetitwouldcausesignificant budget.Ifonemanagersought clear visionforthecomingyear’s Only aftercompletingthiscumbersomeprocessdidwehavea the rightversion,andthenmergespreadsheetstogether. Manager, explains, “Itcouldtakeusdaystocollectthedata,get single file. AsKristjan Thorvaldsson,RE’s IT Project to 50employees,collectingthemback,andmergingintoa company’s budgetprocessinvolveddistributing spreadsheets finance departmentstruggledtoforecastonaregularbasis. The Without apurpose-builtsolutionforbudgetingandplanning,RE’s Challenges treatment facilities. organization alsooperatesadatautilitynetworkandwaste- consumption andfirefightingto80%ofIceland’s population. The electricity, geothermalwaterforheating,andcold Reykjavik EnergyisanIcelandicutilitycompanythatprovides Background reliable sourceoffinancialtruth. that hassimplifiedtheirprocedureswhileofferingasingle, began toreapthebenefitsofapowerfulandflexiblesolution processes. Followingaonemonthimplementation,RE

Source: Prophix Specialization Equals Innovation in the World of Performance Management Software l 9

how Prophix’s unified solution allows for a clear understanding unified solution allows how Prophix’s and show can just open Prophix health: “We of the business’s That our executives which business divisions received money. finances.” enables us to paint a clear picture of our company’s Empowering business users Thorvaldsson reports, “Compared to other projects, with As That is a huge support is minimal. Prophix the need for IT support, RE has also advantage.” Besides limiting the need for IT benefited from using Prophix to attach files and line item details Thorvaldsson explains to the documents that they distribute. With Prophix, RE’s finance team has become accustomed to With Prophix, RE’s constructing clear and accurate budgets each month. Planning has likewise become easier—not least due to the business users, department, regaining control of these important rather than the IT financial processes. numbers that we received from you two weeks ago and they are numbers that we received from you two weeks As This type of discrepancy was common. the latest numbers.’” only once per a result, RE composed their plans and budgets Thorvaldsson, “After a year and more often than not, according to in a drawer.” short span, these documents were placed back Improving data quality and beginning the planning process implementation Relying on spreadsheets prior to their Prophix According truth. meant that RE had no single source of financial latest Thorvaldsson, “One manager would say ‘I have the to say ‘These are the numbers’, but the financial department would spot, they answered every single question. Usually you just spot, they answered every single question. Usually it’, but Prophix’s get the generic message that ’we can solve product could meet representatives actually explained how their choice was clear. the requirements for every single point!” RE’s August and within just one month RE Implementation began in year. began to compose their budget for the following forecasting programs. We investigated various tools, but they investigated We forecasting programs. in terms of licensing and implementation were all very expensive RE began to search for Acknowledging this problem, costs.” could meet their unique requirements. a flexible system that had a list of 75-100 questions Thorvaldsson explains, “We As problems. On the regarding how Prophix could solve business Why Prophix? financial department members of RE’s Thorvaldsson says that the features of the well-known were “very keen on obtaining 10 l Specialization Equals Innovation in the World of Performance Management Software 1-905-279-8711 •www.prophix.com Mississauga, ON,Canada•L5B3J1 350 BurnhamthorpeRoadWest, Suite1000 all ofthispossible.” budgeting. We haveloanslikeothercompanies,andwewillusethesoftwaretoconstructbudgetsforourloanpayments.Prophixmakes Planning Managertobudgetwages.Next,wewouldlikecomposebudgetsforprojects,andarekeenonimplementingsales RE willtakeadvantageofProphix’s abilitytoadaptthegrowingneedsofitsusers. As Thorvaldsson says,“We useProphix’s Detailed Next steps:deployingProphixtootherbusinessareas m

Specialization Equals Innovation in the World of Performance Management Software l 11

J. Van Decker, N. Chandler, C. Iervolino, 19 March 2012 C. Iervolino, 19 March N. Chandler, Decker, J. Van Research from Gartner RAS Core Research Note G00219353, Research RAS Core Gartner from Research evaluate the effects of alternative strategies (such as merger and of alternative strategies (such as merger evaluate the effects a high-level perspective acquisition activity), and represents expenses, balance sheet items and cash flows. of revenue, BP&F applications should also support other aspects of strategic planning, such as initiative management, and should applications. BP&F to strategy maps in scorecard links provide other detailed planning, such applications may also provide as salary planning, capital or head count planning, revenue planning, or expense planning. • and disclosure management reporting Financial and BP&F and forecasts. This covers the development of budgets, plans is a financial-modeling of the BP&F process In CPM, the core sheet balance engine that has an integrated profit-and-loss, This is the key feature capability. and cash flow forecasting that other analytic applications that distinguishes CPM from and (such as sales budgets, plans and forecasts also create campaign planning operations planning [S&OP] or marketing of creation applications). CPM applications support the should support financially focused budgets and plans, and with process and approval the complete budget creation control workflow that enables users to define and appropriate review and for the flow of budgets, plans and forecasts trail of These applications should also keep an audit approval. changes to budgets, plans and forecasts. CPM BP&F should support the two forms of financial short-term planning that dominate most organizations: financial budgeting, usually with a one-year time horizon, and to five-year planning, commonly with a three- longer-term time horizon. The financial budget is used to set financial and cash generation, and expenditures revenue, for targets typically uses financial classifications found in the general plan is used by executives to The long-term financial ledger. • Strategy management • and close Financial consolidation

There has been a change in the scope of functionality included There The expanded application in the CPM suite market this year. now as follows: components of a CPM suite are • (BP&F) Budgeting, planning and forecasting • modeling and optimization (PM&O) Profitability of the main vendors that offer broad CPM suites that should broad of the main vendors that offer seeking to implement a CPM by organizations be considered this does not mean that specialist vendors However, strategy. for some solutions should not be considered narrower offering of your CPM requirements. its focus on the office of finance and bringing financial governance capabilities (e.g., close management, disclosure management) in the suite. Gartner observedin this movement Magic Quadrant for CPM, but it picked up in intensity last year’s CPM and customers combined core in 2011, when more financial governance capabilities in RFPs and subsequent deals. a global view The goal of this Magic Quadrant is to present are pushing the functional boundaries of the CPM suite. The the functional boundaries of the CPM suite. The pushing are some offering CPM market is populated with many vendors, specific range of solutions, while others have limited, a broad point applications. by increasing The market, as a whole, is also being rejuvenated This document was revised on 25 May 2012. For more on 25 May 2012. For more This document was revised page on gartner.com. information, see the Corrections market has The corporate performance management (CPM) market, with fairly consistent the characteristics of a mature with consistent Leaders vendor positioning year over year, that Niche Players, and innovators and Challengers, emerging and growth initiatives. CPM is a suitable fit for nearly all initiatives. CPM is a suitable fit for nearly and growth to and should be a priority initiative for CFOs organizations, enable the finance functions necessary to deliver short- and long-term strategic benefits to the business. Market Definition/Description Corporate performance management supports cost optimization Corporate performance management supports Magic Quadrant for Corporate Performance for Corporate Magic Quadrant Suites Management 12 l Specialization Equals Innovation in the World of Performance Management Software • balanced scorecard. Strategymanagementcomprises: are usuallytiedtostrategymapsormethodologies, suchasthe decision makingandfacilitatecollaboration.Thesesolutions improve corporateperformance,acceleratemanagement to supportstrategicplanning,modelingandmonitoring Strategy managementapplicationsprovide apackagedapproach Strategy Management from different perspectives,suchascustomerorproduct. executives toseetheimpactofdifferent strategiesonprofitability are focusingonprofit optimizationcapabilitiesthatenable strategies. Increasingly, profitability-modeling applications in packaging,bundlingandpricing,aswelloptimizechannel approach canhelpmodeloptimalproduct offerings andservice intermediaries), canbeascomplexthecostingmodel.This there are complexsalesmodels(suchasthosesellingthrough allocated inasimilarmanner, which,insomeindustrieswhere moved beyondthetraditionalABCfocustoenablerevenue tobe allocation strategies.More-sophisticated applicationshave the impactonprofitability ofdifferent costand resource and provide modelingcapabilitiestoenableusersmodel management applicationstakethisapproach onestagefurther determine product andcustomerprofitability. Activity-based including products, customersandcustomersegments,tohelp center. Thisinformationcanbeappliedtovarious“costobjects,” may performacross contact allchannelsinacustomerservice example, determinethecostofeachtask(activity)thatanagent determine andallocatecostsatahighlygranularlevelto,for PM&O includesactivity-basedcosting(ABC)applicationsthat PM&O management (PM). This capabilityhelpslinkCPMtootherareas ofperformance thebusinessdriverassumptions. financial outcomesbyvarying based onanetworkofbusinessdriversthatenableuserstomodel financially focusedbudgets,supportingthecreation ofmodels also offer more-sophisticated capabilitiesthatextendbeyond techniques) tohelppredict future performance.Theyshould nine monthsofbudgetdata)orsophisticated(basedonstatistical can besimple(forexample,addthree monthsofactualdatato and budgetsbasedontheanalysisofhistoricaldata.Forecasting and modeling,whichinvolveextrapolatingnewversionsofplans CPM BP&Fapplicationsshouldsupportsophisticatedforecasting This includescreating strategicplansonabase-case-plus or plans toevaluatetheimpactofdifferent strategicalternatives. Strategic planning –Thecreation ofhigh-levelbusiness

• • variance from targets. Financial consolidationapplicationsare that mustbeshared withotherCPMapplications toanalyze the audited,enterprise-levelview offinancialinformation They are afundamentalpartofCPM,becausethey create to supportcomplextranslation and revaluation processing. multicurrency-handling capabilities,includingthe ability results. Theseapplicationsmustprovide sophisticated transactions processed toarriveattheconsolidatedfinancial and matching),mustmaintainadetailedaudittrailofall automate intercompany transactionmanagement(elimination applications require complextransaction-processing rulesto capabilities. These expand theirfinancialgovernance management isbeingprovided byCPMvendorsasthey New functionalityforfinancialcloseand reconciliations different accountingstandards regulations. andgovernment consolidate, summarizeandaggregate financialdatabasedon This typeofapplicationletsorganizations reconcile, Financial ConsolidationandClose becoming anincreasingly importantaspectofCPMsuites. CPM tootheraspectsofPM.Strategymanagementis,therefore, (linked frameworksofKPIs)usingscorecard software tolink sophisticated organizations are implementingstrategy maps way thatiseasilyunderstoodbyusers.However, more- capabilities tohelpdisplayperformanceinformationina least,provideCPM suitesshould,atthevery dashboard • a collaborativeenvironment foreffective, enterprisewide objectives andtasks;measure performance;andprovide Scorecards andstrategymaps execute specifictasks related toastrategy. management-like toolstoenableresponsible managersto Initiative/goal management impact ofdifferent strategicalternatives. balance sheetitemsandcashflowstoshowthefinancial which creates ahigh-levelperspectiveofrevenue, expenses, Strategic planningincludeslong-termfinancialplanning, to compare thefinancialoutcomesofvariousstrategies. initiative-based approach, along withscenariomodeling additional businessintelligence(BI)tools. to beexaminedataglancebefore furtherexplorationvia and keyperformanceindicators(KPIs),enablingthem Dashboards (orcockpits) communication. –Aggregate and displaymetrics –Includesproject- –Usedtorecord strategies, Specialization Equals Innovation in the World of Performance Management Software l 13

As of March 2012 SAP IBM Oracle

Tagetik Exact-Longview visionaries leaders

SAS Infor

completeness of vision

Bitam prevero KCI Computing Board International Host Analytics

Prophix Software niche players challengers

comparisons with historical performance. This can include comparisons with historical performance. This applications, as well and scorecard integration with dashboard heat decision trees, as specific visualization techniques, such as maps and hyperbolic trees. Magic Quadrant Disclosure and reporting solutions are employed to provide employed to provide are solutions and reporting Disclosure cycles, of other regulatory reporting rigor and management the CPM applications should provide such as sustainability. the management to produce capabilities required reporting at corporate and business unit used by executives reports explain financial performance. This levels to manage and format, but also a financial statement presentation requires primarily budget/variance additional functionality, requires the creation analysis. CPM applications should also enable to be of reports of management packs, which enable groups or in printed form, with the ability to electronically produced these applications Finally, add annotations and commentary. designed to include visualization techniques specifically and budgets or targets, support analysis of variance from

ability to execute to ability figure 1. Magic Quadrant for Corporate Performance Management Suites Management 1. Magic Quadrant for Corporate Performance figure 2012) Gartner (March Source: evaluation for disclosure management capabilities. This is a evaluation for disclosure component of the financial governance market segment that links to financial consolidation solutions, but will also be an integrated component of a financial consolidation within the next five years. and audit trails to better meet regulatory, compliance and and audit trails to better meet regulatory, In addition, they should support governance programs. technologies, such as eXtensible financial-reporting Business Reporting Language (XBRL), as regulators the submission of financial statements require increasingly we have added emphasis in our in XBRL format. As a result, enable the preparation of statutoryenable the preparation financial statements commentary and supplementarywith appropriate notes. solutions incorporate financial-reporting Increasingly, such as and disclosure, for reporting controls process templates, collaboration between the company and the business rules, workflow, financial statement publisher, therefore, reporting tools need additional logic and reporting therefore, capabilities to handle these requirements presentation a cash flow (for example, calculation rules for creating and balance sheet data). profit-and-loss statement from accounting They should support specific generally accepted rules, such as U.S. GAAP principles (GAAP) presentation (IFRS), to or International Financial Reporting Standards Financial and Management Reporting and Disclosure Financial and Management Reporting that requirements reporting and CPM has specific disclosure tools. CPM applications, such as specialized reporting require some of their require financial consolidation and BP&F, financial statements; output to be formatted as structured and, increasingly, these solutions will be extended with elements and, increasingly, governanceof close management (which forms part of financial management process close control suites), primarily improved and journal in addition to intercompany entry controls, as should be offered transaction management. These capabilities by some part of a CPM suite, but also may be sold stand-alone close management solution. vendors as part of a broader Financial consolidation applications should be scalable enough Financial consolidation a model and should provide to support this deployment (such as legal dimensions consolidation using shared group the federated models. Financial entity and account) across part of the corporate close process, consolidation solutions are increasingly being deployed more widely in a federated fashion widely in a federated fashion more being deployed increasingly consolidations at local, financial and management to provide by linking directly or business unit subconsolidations regional at this level. to the general ledgers 14 l Specialization Equals Innovation in the World of Performance Management Software Bitam offers aCPMsuitetargeted atmidsizecompanies • Cautions Bitamclaimsthatmore than1,800customers,mostlyin • Bitamiswell-suitedformidsizecompanies lookingfor • Bitamiscapableofrunningonmultipleplatforms.It • Strengths Bitam Vendor Strengths andCautions may bechallengedtomeetthecomplexity andscalability revenue oflessthan$500million);however, thecompany its customersare small-to-midsizebusinesseswith annual and departmentalsolutionsinlarger enterprises(75%of using itsSaaSsolutions. are usingitsCPMcapabilities,withmore than100ofthem clients), Black &DeckerandJanssen,aswellgovernment Home Depot,JohnsonControls, Petroleos Mexicanos,GNC, Latin AmericaandNorth(suchasPfizer, Coca-Cola, licensing models. on-premises and on-demand(software[SaaS]) asaservice English, Dutch,German,Portuguese,ItalianandSpanishfor management andplanning.Bitamsolutionsare availablein most commonreason forchoosingBitamwasstrategy financial reporting. According toourreference survey, the BP&F, strategymanagement,financialconsolidationand analytical tools,suchasforecasting andtrending. Online provides prebuilt orcustomizabledashboards and provides agraphicalreport developmentenvironment. KPI analytical modelbasedontheArtusBIplatform.Papiro and managementreporting are supportedviaafinancial strategy managementapplication,andfinancial,statutory budgeting, forecasting andconsolidation.Strategoisa BW). Ektosisafinancial-planningapplicationthatprovides Netezza andSAPBusinessInformationWarehouse (SAP non-Microsoft platforms,suchasOracle,Sybase,Teradata, MicrosoftServices, OutlookandMicrosoft Office, aswell supporting aMicrosoft stackutilizingSQLServer, Analysis BI andCPMportfolio:Artus,Stratego,EktosPapiro, Unix orLinuxplatforms.BitamG6provides acombined supporting multipleWeb thatsupportWindows, servers that enablesintegrationintoheterogeneous environments andWeb-based,a client/server three-tiered application Bitam’s operationshavebeenlimitedmainlytoitshome • Userslikethevendor’s programming-free toolkitapproach, • Board hascontinuedtoexpandatabove- International • Strengths Board International Feedbackfrom clientreferences declinedduringthepast • branding andgo-to-marketstrategiestoexpanditsglobal invests heavilyinmarketing.Bitamwillneedtoaddress its may struggletogetattentioninnewmarkets,unlessit growth) intheNorthAmericanregion, thecompany it hascontinuedtoincrease presence (albeitwithslower markets inLatinAmericaandNorthAmerica.Although compete effectively withtherest oftheCPMmarket. with themarketstandards, and willneedtobeextended management), thisisrelatively lightweightwhencompared (it hasyettoaddclosemanagementanddisclosure added somelimitedcapabilityforfinancialconsolidation required inlarger customerdeployments.Althoughithas functionality witheaseofmaintenance. approach particularlyappealstoclientsthatwantstrong create tailored solutionsquicklyandcost-effectively. This is popularwiththevendor’s consultingpartners,whocan v.7.3, andhascreated packagedCPMofferings. Thisalso financial consolidationandplanning functionalityin management capabilities.Board improved International modeling requirements. Thetoolkitalsohasstrong strategy it canaccommodatecomplexplanningandprofitability- approach givesitabroad functionalfootprintinCPM,and extended tomeetusers’uniquerequirements. Itstoolkit which enablesCPMapplicationstobeconfigured easilyand network. Hong KongandJapan;aswellaworldwideresellers’ Spain, theU.S.,U.K.,Australia,India,Mexico,Dubai, Switzerland; direct officesinGermany, Italy, Singapore, global executioncapability, withheadquartersinLugano, CPM customers(mostlyinEMEA),buthasdevelopeda growth in2011globally–andnowclaimsmore than800 average growth ratesfortheCPMmarket–48%license the company’s AbilitytoExecuterating. Bitam isstillintherelatively earlystages.Thishasaffected year andwasbelowaverage,indicatingthattheadoptionof presence. Specialization Equals Innovation in the World of Performance Management Software l 15

CPM preferred and is MicroStrategy’s with MicroStrategy BI and offers solution. The integration with MicroStrategy and analytics to Longview customers, advanced reporting The strategic relationship including mobile dashboards. also helps Longview get access to with MicroStrategy and in the Asia/Pacific region sales force MicroStrategy’s Latin American markets, and is a strength. sales of its tax provisioning application are boosting overall application are sales of its tax provisioning is a high level of customer satisfaction, performance. There Magic Quadrant, and, Exact- consistent with the previous highest on the customer satisfaction survey. Longview scored it is a part CPM suite for this Magic Quadrant evaluation, and it can act as a CPM platform, of Exact-Longview’s some CPM evaluations. The incremental in differentiator solution also contributes to strengthening this from revenue unit within its overall viability as an independent business Exact-Longview. been successfulwas formerly known as Khalix. The vendor has to new customers (31 net new customersselling this product 356 total customers) and with a base of during the past year, customers take the upgrade. Longview 7 is ahaving current major technology upgrade to the CPM platform that underpins earlier users can migrate from Current the Longview product. 2010) to Longview 7versions of Khalix (enhanced through Longview 7 has an SOA base that at no additional charge. .NET for service deliveryleverages Microsoft and development (studios), and uses Java Platform, Enterprise Edition for data and execution servers.help attract Microsoft This continues to customers and is a strength. all aspects of CPM, and its solution appeals to customersall aspects of CPM, and a CPM suite in a single, integratedthat want to implement than multiple point CPMapplication suite, rather (for data volumes applications. The solution can handle large billion analysis on a dataset with 3 example, daily profitability Exact- with considerable complexity and as a result, rows) 1 enterprises. Tier larger primary focus remains Longview’s • Exact-Longview has a global technology partnership • part of the still not considered is While tax provisioning • is Longview 7, which latest CPM product Exact-Longview’s Exact-Longview Strengths • solution across functional Exact-Longview has a broad • vendor continued to add customers during 2011, and The integrate to well-suited is CPM and BI to approach and disclosure management), it is still challenged to grow management), it is still challenged to grow and disclosure Board the number of customers choosing this functionality. International is mainly deployed by customers looking for PM&O and strategy management solutions. BP&F, hybrid in- International’s clients that will leverage Board user bases and memory OLAP capability for their larger extensive data volume needs. more financial consolidation (it has yet to add close management in Gartner’s customer satisfaction survey, scoring well for customer satisfaction survey, in Gartner’s service objectives. The and support, and for meeting overall average size of customers and deployments indicates that the the midsize enterprises; however, were majority of references corporate in large vendor has seen significant new growth and momentum in its overseas operations to ensure ensure and momentum in its overseas operations to with competitors. effectively that it can compete more than just it is competing on a wider front Furthermore, its R&D budget challenged to spread CPM, and is more this wider portfolio than more-specialized sufficiently across competitors. Board and expansion continues, locations. Although growth recognition to create International its efforts must increase and a Silverlight-based supporting a 64-bit architecture visualizations and increased client, utilizing advanced Web hybrid Office integration. In addition to a strong Microsoft (OLAP) capability in-memory online analytical processing 7 has specific integration with data volumes, Board for large Analysis Services and Oracle Hyperion Microsoft SAP BW, Essbase. Windows 7 was developed using Microsoft’s Board (WCF) and Windows Communication Foundation Foundation (WPF) development standards, Presentation (SOA) a .NET service-oriented architecture providing beyond finance into operational planning and analysis. Its beyond finance into integrated S&OP and financial planning. • functionality for Although the vendor has added more • International continues to show above-average results Board Cautions • than in other geographic in EMEA stronger The vendor is • platform; International has leveraged the Microsoft Board • to take CPM The vendor has demonstrated the ability 16 l Specialization Equals Innovation in the World of Performance Management Software Host Analyticsprovides afullCPMsuite.The integrated • HostAnalytics hasgrown toclose250customers, with • Strengths Host Analytics AlthoughthevendorhasapartnershipwithTrintech • Broad partnershipswithsystemintegrators (SIs)that • reach Thevendorhaslimiteddirect outside international • Awareness forExact-Longviewcontinuestoremain achallenge, • Cautions reporting andconsolidationfunctionality from asingledata suite provides budgeting,revenue planning,andfinancial been SaaS-basedforthepastfour years. 85% ofthosebasedinNorthAmerica. Allnewdealshave and implementationsuccess. product’s weaknesses,whichcouldhelpimprove penetration release includesenhancementstoovercome someofthe limited successwithproduct. However, Trintech’s upcoming incremental business,givenTrintech’s lowerpenetrationand thishasnotgenerated much for financialgovernance, extend current relationships togainmindshare. with boutiqueSIsfocusingontaxandfinancialreporting, and therefore, Exact-Longviewmustcreate stronger partnerships because SIsare increasingly focusingonmegavendorofferings; generally extendtobroader CPMcoverage.Thisisachallenge, (e.g., PwC,Deloitte)foritstaxsolutions,butthesedonot created providers somegood partnershipswithmajorservice encompass CPMremain achallenge.Exact-Longviewhas regional offices in theAsia/Pacificregion andLatinAmerica. with MicroStrategy provides accesstoMicroStrategy’s Bitam inLatinAmerica.However, thestrategicpartnership facing competitionfrom emerging specialistvendorslike increasing interest inCPMtheAsia/Pacificregion, while As aresult, Exact-Longview continuestomissoutonthe of whichhavefinancialoperationsoutsidethese regions. targetits primary islarge multinationalcompanies, many North AmericaandEMEA,whichcanbeachallengebecause the megavendorsintermsofmarketawareness. Exact-Longview brandandischallengedbythedominanceof an independentbusinessunit,ithasnotbeenabletoleveragethe megavendor consolidations.Becausethevendorisoperatedas but itisimproving tothe ascompanies seekviablealternatives

Thevendor’s SaaSmoduleprovides price alowerentry • HostAnalyticscoversmostofthecomponentsinaCPM • GartnerhasstartedtoseeHostAnalyticscompeteeffectively • HostAnalyticscantargetcustomers canbeserviced. small With theproduct modulesandbundles,arangeof reduced pricing availableforsmallormidsizebusinesses. etc.) andoffers bundlesforfullCPMsuitecustomers,with Executive ReportManager, HostAnalyticsDecisionHub, (Host AnalyticsBudget,HostConsolidator, need tolicensewhattheyuse.Pricingismodular-based employs aflexiblepricingmodulesothatcustomersonly point fororganizations inneed of aCPMsolution.It scenario modelingandplanning,enhancingeaseofuse. and feelacross allmodules,with integratedreporting and model. Theintegratedapproach provides thesamelook option fororganizations preferring aCPMSaaSsolution. the HostAnalyticsDecisionHub, makingitamore viable datawith (ERM) solution,andaccesstointegrated external production through itsEnterprise ReportingManagement functionality –forexample,ithas addedfinancialstatement and reporting). HostAnalyticshasstrength inaddingnew covers asmallernumberofCPMpillars(i.e.,planning SaaScompetitor(AdaptivePlanning) because itsprimary which isuniqueforavendorthatsolelySaaSprovider, suite inaSaaSoffering through anExcel-likeinterface, added resellers (VARs). companies, nationalaccountingfirmsandERPMastervalue- channel revenue beinggeneratedbytheregional consulting less subjecttomarketfluctuations.Thevendorisseeing to continuedevelopandsupportitsproducts, asitis from itsSaaSofferings provides theconsistencyandcapability solution through aSaaSmodel.Itsrecurring revenue stream provides anopportunityforalower-cost, easier-to-implement in firmswithcomplexbudgetingrequirements. HostAnalytics the appropriate onesgivenuserrequirements. Financial Management,where itssolutionswere chosenas offerings, likeOracleHyperionPlanningand offerings, likeAdaptivePlanning,andlarger enterprise Analytics haseffectively competedagainstmidmarket this numbertoincrease dramaticallyin2012.Host rollout, ratherthanjustdepartmentusage,andweexpect a numberofdealsinlarge enterpriseswithfullenterprise for larger Tier 1enterprises.In2011,HostAnalyticshad or midsizebusinesses,aswellline-of-businesssolutions

Specialization Equals Innovation in the World of Performance Management Software l 17 CPM Consolidation is the least-deployed of IBM’s survey Survey respondents. components among IBM’s survey indicate that only 32% of this year’s results this represents product; use the Controller respondents Although IBM’s results. last year’s from a 48% decrease enthusiastically about responded customer references value to the business (see “Executive Advisory: CEO and ability 2011; Detail Report”). IBM’s Senior Executive Survey, has offerings to embed advanced analytics within its CPM ranking in this year’s its Completeness of Vision increased Magic Quadrant. for midmarket Express IBM Cognos continue to grow. at a particularly and departmental applications has grown enabled on Cognos currently healthy rate; 650 partners are than 1,000 customers worldwide and IBM has more Express last year). (up about 100% from have begun to use customer respondents indicate that IBM’s their organizations. widely across its CPM solutions more The number of IBM customers surveyed with 500+ users 17% in 2010 to 41% in 2011. In addition has jumped from implementations, IBM’s the number of large to growing higher satisfaction ratings this year. customers also reported a strong customers reported of IBM’s percent Seventy-three the 50% from this is a sizable increase positive response; favorably with and compares survey, in last year’s reported the other megavendors. These changes indicate a growing CPM solutions. acceptance of IBM’s organizationwide improve scalability, and has introduced a new modeling and has introduced scalability, improve Performance Modeler called IBM Cognos environment of new planning, creation to facilitate the accelerated The new Cognos Insight models. analytics and profitability planning client and a acts as both a distributed offering data discovery tool that enables an individual’s desktop to the models to be promoted analytic discoveries and/or and, if needed, they can be shared enterprise level, where IBM CPM clients with enhanced by Performance Modeler. automatically entitled to Planning Contributor licenses are data-driven Cognos Insight. Gartner has determined that technology- decision making ranks among the highest of strategic enabled capabilities potentially having the most Cautions • for Financial product Cognos Controller IBM’s • enterprise and midmarket customer bases Both IBM’s • Suites Magic Quadrant survey The 2011 CPM results • to architecture IBM has made advances to its distributed Global led by IBM’s part of this new offering are Research It uses Cognos 10 Business Business Services organization. but also Intelligence and Cognos TM1 functionality, its analytics from leverages the benefits of SPSS predictive analytics portfolio. business broader is positively impacting its vision for CPM. For example, - Advanced the new CFO Performance Dashboard Edition employs temporal causal modeling alongside new greater information visualization capabilities to provide between performance and insight into the relationships IBM These new capabilities from objective measurements. its Cognos Financial Statement Reporting (FSR) product, of formerly Clarity FSR, is the best-established product a full suite of CPM its kind in the market. IBM offers applications and has continued to enhance the analytics Smarter Analytics strategy capabilities within them. IBM’s placed on it by its success (e.g., more internationalplaced on it by its success (e.g., more support, functionality) as it continues customer base, more growing to expand. as most of these small/niche in nature, Some partners are and do not provide streamlined implementations are services opportunities for the Big Four extensive professional consulting companies. international rollouts as it moves upmarket. It currently does as it moves upmarket. It currently international rollouts not have international so that limits the language support, scope of international deals. but now services organizations, its professional through has an established U.S. consulting partner network. concerns have with companies of this size. that firms these concerns minimized by should be somewhat However, a backlog that will provide booked the fact that SaaS revenue stability. some near-term should offer revenue year over year, and carries with it the viability year over year, revenue • within BP&F; however, remains CPM strength core IBM’s IBM Strengths • be challenged to balance the demands The vendor may • performs most of its implementations Host Analytics • be challenged to support larger The vendor may Cautions • in although growing Host Analytics is a small company, 18 l Specialization Equals Innovation in the World of Performance Management Software Recentenhancements totheportfolioenablefinancial • Inforhasabroad CPMandBIportfoliousedinits • Inforincreased itsaddressable marketforCPM-basedcross- • Strengths Infor IBMmaintainstwoseparateplanningsolutions. Although • Management offering, whichcombines FSRwithController satisfaction rating.IBM’s recent focusonitsFinancialClose as notedearlier, highoverallcustomer IBMhasavery indicative ofanydissatisfactionwiththeoverallIBMsuite; of theController product. However, theseresults are not participants were lessenthusiasticaboutincreased usage one-third amongallCPMvendor respondents), survey their usageofIBMCPMsolutions,ascore withinthetop increased overallIBMCPMusage(68%plantoincrease are astrength for current Infor customers. integration with embedded BIextensions.These capabilities integrations withbusinessapplications andtighter analytics onthinclients,greater industry-specific modeling, financialconsolidation andfinancial reporting. strategy management,althoughitalsocaterstoprofitability modular solutionthatisparticularlystrong forplanningand framework. Itsstrong CPMcapabilitiesare delivered ina enable customerstodeliveracomprehensive BIandPM midmarkets. ItsintegratedCPMandBIcapabilities application base,witheditionsfortheenterpriseand less thantheaverageformarket. continued toshowrevenue growth in2011,butatslightly further cross-sell andpenetratenetnewaccounts.Infor Infor PMBusinessEdition,there isplentyofpotentialto in multiplelanguages.With theInforPM10.x releases and a widespread global customerbase,withproducts available more than3,000 InforPMcustomers,andthevendorhas and integrationofLawson.Gartnerestimatesthatthere are the widerInforapplicationportfolioandacquisition sell andupsellopportunitieswithfurtherintegrationinto confusion amongprospects andcurrent users. consistency isn’t anissue,thiscontinuestocausesome some cases,stillsellsCognosPlanning.Althoughinterface direction, itstill hastomanagetwouserbasesand,in the CognosInsight/TM1product represents IBM’s strategic FSR fordisclosure management. use andacceptanceofthesuitebyleveragingstrength of using anintegrateddataapproach, mayexpandcustomer Thevendorhasmadeaneffort toraiseawareness ofits • Inforcontinueditsmomentumin2011.Severalchanges • Cautions Control isasingle, inclusivesolutionwithacommon • KCIComputing’s CPMsuite,calledControl, containsBP&F • Strengths KCI Computing Inforhasscored belowaverageinourcustomersatisfaction • installed base,unlessitcanbuildgreater awareness. limit Infor’s abilitytocompetefornewbusinessoutsideits particularly outsidetheInforERPbaseofclients.Thiswill to customers;however, awareness remains relatively low, PM portfoliothrough influencers anddirect marketing Infor mustcommunicateitsproduct road mapsmore clearly. adoption ofMicrosoft BItools,has increased clientconfusion. Infor-owned CPMandBIproduct expansion,versusincreased senior managementandaconflictingsetofmessagesover requirements in itsestablishedmarkets. appropriate choice forcustomersthathavespecific database UDB, InformixandSybase.KCI Computing maybean of databases,includingOracle,Microsoft SQLServer, DB2/ transform andload(ETL)functionality. Itrunsona variety analytics capabilities.Control alsoprovides built-inextract, and Control exploitsExcel’s formatting, graphics,and user interface.Microsoft Excelisitsmainuserinterface, and profitability evaluationforproject-based operations. forecasting portfoliocompositionmanagement,andcapacity analysis; andProject Simulationforresource andcostmodeling/ for materialscosting,capacityplanningandpricesensitivity ForecastPro fortimeseriesstatisticalforecasting; BillofMaterials three modulesthatcanbelicensedseparately: complementary functionality byalsooffering expandedfunctionalitywith of thecompany’s solution,andKCI Computingenhancesthis forecasting, analysis andmanagementisacore functionality The vendorhasabout155customersworldwide.Profitability reporting components aimedatmidsizetolarge companies. and financial reporting, andconsolidationmanagement CPM initiatives,anditsSIpartnershipsare limited. to support a PMfocustobeableconcentrateonservices year unlessactionistakenquickly. Itmayhavetoobroad of Infor andwilllimititsabilitytoraiseexecutionscores next continued in2011.Theseissuesremain akeychallengefor consistentlyforthepastfewyears,andthis survey

Specialization Equals Innovation in the World of Performance Management Software l 19

financial consolidation (the most commonly deployed parts of CPM), with less adoption of the wider portfolio Still, many of components (although adoption is growing). its customers use smaller subsets of its CPM solutions, and Oracle needs to do a better job in expanding its footprint solutions. Customer satisfaction evaluation all CPM across that a trend below average again this year, remain scores has continued for the past four annual surveys. However, levels of satisfaction. Gartner has noted improved has additional planning modules for workforce planning, planning, has additional planning modules for workforce project capital assets planning and, in the near future, industryfinancial planning. It has also expanded into and budgeting solutions, including public-sector planning and balance sheet planning (for banks). running a capability in 2011 to Oracle-centric clients and to open-market wide portfolio of Oracle products in growth clients. Oracle has demonstrated impressive and fast expansion Europe, North America and Western the Middle East and Africa, and in the Asia/Pacific region, product a combination of broad Latin America through channels, and and indirect extensive direct functionality, wide-ranging service capabilities. In general, customer levels of satisfaction. survey show improved results the portfolio as well as new financial across improvements management and predictive close management, disclosure Oracle has improved planning additions. Furthermore, integration of Hyperion with the Oracle BI platform, and planning performance, enabling Hyperion has improved Planning to use Oracle Exalytics In-Memory Machine. and Oracle Crystal modules, Ball), Planning and related augmented with Hyperion Profitability These are respectively. Hyperion Strategic Finance, and and Cost Management, (part of Oracle and Strategy Management Oracle Scorecard Hyperion Suite, replacing Business Intelligence Foundation Relationship Hyperion Data Performance Scorecard). Financial Data QualityManagement and Hyperion multiple ETL from data management, Management provide of the and metadata integration between components sources, CPM suite and other systems. Hyperion Planning and suite. In addition to the core Oracle Hyperion Strategic Finance for long-term planning, Cautions • Oracle customers use Hyperion mostly for planning and • execution strong continued to provide The vendor has • Oracle continues to innovate, bringing incremental • and functional planning a very comprehensive Oracle offers

full CPM suite through a multiproduct approach (employing approach a multiproduct full CPM suite through common foundation and administrative components), with for each of the major business processes applications differing for financial consolidation (Hyperion Financial Management, Hyperion Financial Close Management and Hyperion Management) and financial planning (HyperionDisclosure by Enterprise Performance Management is recognized CFOs worldwide. The vendor has a well-established partner and smaller CPM SI specialists. channel, with both large also plentiful among the independent Hyperion skills are given the well-established products. consultant community, widely distributed solutions in the market. Oracle Hyperion KCI Computing unless its existing modules are integrated are KCI Computing unless its existing modules For example, the with other solutions for this functionality. it does facilitate however, dashboards; vendor does not offer integration to Microsoft with prebuilt creation scorecard or relational Analysis Services on and any tool that relies Artus In addition, it resells multidimensional data stores. integration. Bitam, for which it has prebuilt its partner from where it could be credible. where functionality or strategy management functionality. complete CPM solution looking for a more Organizations not choose including strategy management will most likely many users. have difficulty other vendors in this Magic Quadrant. It will and cannot competing with many of the established players, of its competitors; and market presence the awareness create many deals at risk of being excluded from it’s therefore, India, but it may be challenged to Canada and Bangalore, with multiple regions across global rollouts support large that KCI Computing’s customers rate it above average that KCI Computing’s expectations and for overall for meeting implementation customer experience. • a suite and provides product The vendor has a very broad Oracle Strengths • Oracle is a Leader in CPM suites, with one of the most • management does not have disclosure KCI Computing • with many when compared limited revenue, The vendor has Cautions • California, Toronto, has offices in Torrance, KCI Computing • consistently found Our Magic Quadrant survey have results 20 l Specialization Equals Innovation in the World of Performance Management Software Theprevero takeoverofWinterheller wasafriendlyone; • Cautions TheCPMsuiteincludesProfessional PlannerforBP&F; • InJune2011,100%ofWinterheller, includingitssolution • Strengths of thecombinedprevero organization andproduct portfolio. been integrated.Nextyear’s MagicQuadrantevaluationwillbe BI product portfoliointowhichtheWinterheller offerings have platform were not assessed.Thevendornowoffers aCPMand merger, prevero asacompanyandprevero’s enterprise p7 Magic Quadrant.Duetothetimingofprevero-Winterheller prevero name.Winterheller’s solutionwasevaluatedforthis In 2011,Winterheller merged withprevero andhastakenthe prevero Thevendorisprimarilydeployedbyenterprisefirms,and • was announced). wasconducted sixmonthsafterthetakeover(the survey indication ofimmediatecustomer-related issues was successful.Gartner’s respondents survey showedno however, timewilltellthedegree towhichthemerger Planner forBP&FisthemostwidelyusedCPMmodule. respondentsQuadrant survey indicatedthatProfessional dashboards andscorecards. The2011CPMSuitesMagic Professional Analyserforinteractiveanalysis,reporting, and Treasury forshort-termandlong-termcashplanning; Professional Modellerfordataintegration;Professional Professional ConsolidationforFCCandReporting; within thisspace. over time,hasthepotentialtoelevateprevero’s standing Switzerland andAustria.Thismerger, ifproved successful 5,000+ companies,mostlymidsizeorganizations inGermany, Winterheller bringsthecombinedcustomerbasetoaclaimed in German-speakingcountries.Themerger ofprevero and and control processes. Thevendorhasabroad customerbase to enablecompaniesenhanceandsustaintheirdecision and analysiscompanyfoundedin1994.Thevendor’s aimis to Munich-basedprevero, aBIcorporateplanning, reporting portfolio, developmentandconsultingskills,were transferred may hinderexpansionintosomeemerging markets. flag forgrowth now, thismaybecomemore problematic and expensive orcomplexfortheirrequirements. Whilenotared some smallerclientshaveciteditsbroad portfoliotobetoo

Prophix Software hadagoodyear. Someofthissuccess • Strengths Prophix Software AlthoughWinterheller hadprovided BIandCPM solutionsfor • Thevendor nowhasmore than1,850customers • Prophix Software typicallyfocusesonthesub-$1billionannual • the vendor’s abilitytocompetewithlarger vendors. focused onitsgeographicniche.Thiswillcontinuetoimpede outside thesecountries.Asaresult, prevero islikelytostay have animmediateeffect onthe combined entity’s recognition Germany andSwitzerland,itdoesn’t seemthatthemerger will Because prevero’s customersare largely locatedinAustria, more than20years,itisrelatively unknownoutsideEMEA. financial consolidation capabilitiesthatare suitableforits (Financial Controller) about24monthsago,which provides Software addedfinancialconsolidationfunctionality it hasbeenexperiencinggoodrevenue growth. Prophix worldwide, with70%ofthosebeing inNorthAmerica,and sales planningandforecasting. demand planning,project planning,and planning,inventory extends beyondCPMintoareas suchaspersonnelplanning; roll themupintotheoverallcorporateplans.Thesolutionalso combine multipleplansatledgerandsubledgerlevels,to management approach. Prophix Software allowsusersto allocation capabilitiesthatcansupportanactivity-based through itsInfoFlextechnology, anditincludessophisticated scorecarding. Italsodeliversprofitability modelingcapabilities forecasting; financialconsolidation; reporting; analytics;and covering budgeting,financialandoperationalplanning; revenue marketand hasagoodbreadth ofCPMfunctionality, Prophix 10istargeted atlarger organizations. organizations withrevenue ofmore than$10million,while For thelowermarket,itsExpress solutionissuitablefor its technologystackisattractivetomidmarketcompanies. a variabletimespan.Theuserinterfaceisappealing,and compare proposed budgetchangestothebase planover creation andmanagement, suchastheabilitytodirectly attractivefeatures Ithassomevery forbudget Services. OfficeandSharePoint ReportingServices, Analysis Services, based onMicrosoft technologies,andleveragesMicrosoft be agrowth area forfuture revenue growth. Prophix 10is Software coverage,andthiswill isincreasing international is apreferred solutioninmanyofthosecases.Prophix and itssalesontheMicrosoft Dynamicsside,where it can beattributedtotherelationship itbuiltwithMicrosoft

Specialization Equals Innovation in the World of Performance Management Software l 21

own services 2010. This amounts to a balanced mix of SAP’s partners for both consulting and strategic and those from development. functions or industry-specific product CPM applications integration among the various acquired BW in its portfolio and integration with SAP NetWeaver CPM and SAP BusinessObjects BI. The integration of SAP’s is continuing. As part of EPM 10, in and GRC products 2011, SAP announced support for risk-adjusted planning footprint through acquisitions, with its last acquisition footprint through for of a partner solution, cundus, being the 2010 purchase and notes management. SAP is partnering for disclosure management with BlackLine Systems, and reconciliations The key strategic for strategic finance with FinanceSeer. Management, components of SAP BusinessObjects Strategy Consolidation, SAP BusinessObjects Business Planning and and Cost Management, SAP BusinessObjects Profitability and SAP SAP BusinessObjects Financial Consolidation, Management continue to deliver a BusinessObjects Disclosure CPM. of and depth of functionality in all areas good breadth CPM a better focus on its customers and prospects. sales mix of direct a broad sold through applications are partners and channels, and this is indeed and indirect force The vendor has been able to develop gooda strength. with boutique consulting firms with years ofrelationships including Column5, Aster Group expertise in SAP products, Performance Solutions. The CPM applications and Vantage supported by a dedicated CPM sales team, which directly are account executives who own key accounts.supports the core to support the SAP SAP has a partnership with Microsoft BusinessObjects Planning and Consolidation version for the solution, and this is seen as a preferred platform Microsoft in the marketplace, but to a lesser extent in 2011 than in requirement and capability within the CPM suite market of and capability within requirement although it does support XBRL via enterprise companies, a more work toward The vendor must a partner offering. upmarket. as it moves approach comprehensive rate for the period used for with a 25.6% growth share, customers this Magic Quadrant. It now has 8,350 CPM has a broad in both SAP ERP and non-ERP accounts. SAP its CPM portfolio of applications and continues to grow • map to deliver road SAP is executing well on an aggressive • through its sales effectiveness continues to improve SAP SAP Strengths • continues to be a Leader with a healthy CPM market SAP but it is fit for purpose for its midmarket customers. This which were has not been an issue in its earlier products, with the smaller midsize companies. However, at targeted the financial move upmarket, the vendor needs to strengthen as well as develop capabilities consolidation functionality, does not Software management. Prophix for disclosure management, which is a growing disclosure yet provide an expansion of its partner channel. It is still a relatively an expansion of its partner channel. It is still a relatively may put small company and the continuing rapid growth its internal on resources. pressure with other vendors, compared consolidation functionality, upper midmarket. However, in the small or midsize business in upper midmarket. However, Software market, we see many companies going to Prophix because of better price points. and as it faces both rapid growth scores customer reference opportunities created by Microsoft’s withdrawal from the withdrawal from by Microsoft’s opportunities created other CPM suite market (particularly in North America), and Tagetik, specialist vendors, such as Exact-Longview also competing for many of the same are as well as SAP, in the better-established opportunities, and these vendors are visibility than the leading CPM competitors; it is a small visibility than the leading CPM competitors; it has However, company with limited marketing resources. and its Microsoft particularly through made improvements, partnerships. boutique SI and reseller services and have a higher-touch approach to their approach services and have a higher-touch has gained high customer Software customers, Prophix the Magic Quadrant survey satisfaction, as determined from of its users. distribution of management report books, and ad hoc report distribution of management Template through This is achieved analysis/reporting. Manager. Report Binders and Business Process Designer, Technologies with Semansys has partnered Software Prophix capabilities. to deliver XBRL reporting target market, and not specifically targeted at competing targeted market, and not specifically target Software Management. Prophix with Hyperion Financial for financial and management includes functionality and the creation covering formal reporting, reporting • in financial has not been strong Software Prophix • The vendor may be challenged to maintain its good • is capitalizing on the Software Although Prophix • but has less market player, midmarket a strong The vendor is • their own that provide Niche Vendors Like many of the Cautions 22 l Specialization Equals Innovation in the World of Performance Management Software SAP’s userreference responses continuetoshowlowerlevels • AlthoughSAPhascommittedtothesupport ofstrategic • There isstillconfusionintheuserbaseaboutrole of • Cautions SAP’s database, commitment toSAPHANA,itsin-memory • support. This indicates that there are still improvements to be initial andadd-on implementationconsultingand phone of satisfactionthantheirmaincompetitors, especiallyfor the SAPuserbase. these customers,itisanopportunity forcompetitorstotarget the onlyanswer. Althoughwe expectSAPtoretain mostof insteadofassumingthatSAPis are lookingatalternatives, users are planningpossiblemovestotheEPMsolution,some they wantleading-edgeCPMfunctionality. Althoughmany products, userswillhavetopurchase EPMapplicationsif products bySAP. AlthoughSAPisstillsupportingthese that theseproducts are nolongerviewedasstrategicCPM made majorinvestmentsinthesesolutionsare disappointed 2020 andpotentiallybeyond,someSAPcustomersthathave for Finance,whichstillhasasignificantuserbase)through support CPM(suchasNetWeaver BIIntegratedPlanning enterprise management(SEM)andrelated products to to SAPBusinessObjectsPlanningandConsolidation. application through 2013,andsomeusersintendtoupgrade other vendorofferings; however, SRCisstillasupported users haveeitherupgradedor, insomecases,movedto with EPM10.0,whichprovides more clarity. LegacySRC road maponexistingSAPproducts, butthisisimproving the acquired products, andabouttheimpactof theEPM a vitalplatformforSAPCPMinfuture years. will includeafuture SaaS-basedCPMoffering. This couldbe SAP HANA.hasalsoindicatedinitsroad mapthatthis Planning andConsolidationversionforSAPNetWeaver on forecasting through theavailabilityofSAPBusinessObjects will provide advancedcapabilitiesforplanningand Planning andConsolidation. healthcare andbanking,allbuiltonSAPBusinessObjects planningsolutionsforpublicsector,of industry-specific is alsoimproving, asevidenced bytherelease ofaseries spanning CPMprocesses. Support forverticalindustries strategy managementandacommonMicrosoft Officeadd-in solutions, apurpose-builtmobileCPMapplicationfor integration withSAPBusinessObjectsBusinessIntelligence and forecasting, aswellanewcommonuserexperience, Strengths SAS AlthoughSAPiscommittedtoHANA,itearlydays • With the9.3release (inJuly2011),SAShasgivenfurther • SASandAccenture havecontinuedtoinvestintheir • results Survey indicatethatSAS’s CPMcustomersare also • SAScontinuestofocusonanalyticsaswellCPMan • to clearlycommunicateitspublishedroad map. applications (forS&OP).Thevisionisgood,butSAPneeds deployment solutionforS&OP)andHANAnativeanalytics Planning andConsolidationdevelopments(e.g.,rapid yet andthere are conflictsbetween SAPBusinessObjects inconsistency ofimplementationsupport. of thismaybeduetotheusethird-party SIsandthe andsupportareas.made inservice We that much observe processing tasks. breadth ofhighvolume,organizationwide PMandanalytics processingmemory capabilitiesthatcanspeeda greater furthered itshighdatavolumecapabilitywithnew in- attention toimproving theend-userexperienceandhas software solutionsandservices. build, market,sell,deliverandmanagepredictive analytics Accenture SASAnalyticsGroup continuesinitseffort to profitability optimizationandworkforce analytics.The and twocross-industry jointofferings, includingcustomer 2010.Itiscurrently in February developingsixindustry joint effort, theAccenture SASAnalyticsGroup, formed strategy managementimplementationsizeisgrowing. solutions, andSASclaimsthatitscustomers’average Management) andPM&OSASActivity-BasedManagement increasingly adopting itsstrategymanagement(SASStrategy estimations oftheachievementforecasts andobjectives). the useofconfidencelevelsinproviding evidence-based that SAScalls“IntelligentForecasting” (forexample,in Management) provides uniquepredictive capabilities within itsCPMproducts. ItsBP&Fproduct (SASFinancial research, qualityimprovement andmodelmanagement mining, textanalytics,forecasting, econometrics,operations and BIexpertiseexperience,leveragingstatistics,data enterprise. SAS’s CPMproducts leverageSAS’s analytics element ofabroader riskandPMsolutionthroughout the Specialization Equals Innovation in the World of Performance Management Software l 23 specialist CPM vendors, such as Host Analytics, Exact- Software. Longview and Prophix the vendor continues to struggle to gain wide relationships, with IT and finance departments in preference awareness the other specialists and larger from over CPM offerings we However, vendors, particularly outside of Europe. is establishing capabilities outside of believe that Tagetik achieve those goals. It may struggle with its direct to Europe provider in 1994, and its employees have a good depth in 1994, and its employees have a good depth provider complex aspects of CPM, of knowledge of the more of international/globalparticularly in the areas financial achieved among the highest scores consolidation. Tagetik significantly survey, customer satisfaction in this year’s indicating that it continues to add on last year, improving capabilities to support its rapid expansion. it is based). The vendor (where Europe markets in Western in its U.S. operations, has added showed 90% growth new operations in Australia and South America, and now a high percentage also does business in Asia. However, its operations in still comes from revenue of Tagetik’s still faces Tagetik Europe. its home markets in Western challenges to gain attention in international markets, unless it continues to invest heavily in marketing and partnering, thought leaders outside of its as well as continuing to hire North establishes a larger home Italian market. As Tagetik face tough competition American market, it will increasingly North American and homegrown the megavendors from However, Tagetik is also seeing an increased adoption for adoption for is also seeing an increased Tagetik However, planning and evidenced by large BP&F-type solutions, 1 customers, showing that among Tier projects multiprocess than just complex more adoption for it is gaining broader financial consolidation. extending beyond traditional CPM view of BI and PM by workflows to build boundaries with additional process and to build vertical templates custom analytics processes, stack (built-in integration with to leverage the Microsoft BI platform). Server SharePoint and Microsoft Microsoft global is helping generate more relationship The Microsoft to new clients. Tagetik opportunities and is introducing • and reseller Despite establishing a raft of service provider • company to a CPM solution a consulting from grew Tagetik Cautions • its home operations have been limited mainly to Tagetik’s • a broader map to incorporate has expanded its road Tagetik Quadrant. for financial consolidation particularly strong but remains and disclosure, and financial management and statutory, customers are Many of its larger management reporting. requirements. handling complex consolidation and reporting We have seen many deals for its CDM product (where there there (where have seen many deals for its CDM product We particularly is high demand and lower barriers to entry, believe these CDM deals will eventually in the U.S.). We has CPM suite. Tagetik lead to further sales of the vendor’s execution and innovation capabilities, demonstrated strong in this Magic culminating in its position as a Visionary has increased its international by has increased revenue (non-Italy) license 60% during the past year. management (including of CPM functionality and disclosure its Collaborative Disclosure XBRL support) through capabilities. and scorecarding Management (CDM) offering and the channel and distributor network in Europe direct growth). revenue is 90% year-over-year there U.S. (where now has over 275 employees, showing year-over- Tagetik fast in Tier the vendor has grown Furthermore, year growth. 1 international U.K., France and companies based in the in North America. Overall it recently, and, more Germany, in the CPM suite market, with 475 clients globally. It is in the CPM suite market, with 475 clients globally. its and is expanding internationallygrowing by profitable, management and profitability modeling products become modeling products management and profitability newer capable in this space (for example, with IBM’s more that competition in areas SAS will face greater offerings), have traditionally been its strength. which tends to result in a lack of visibility in the CPM in a lack which tends to result for evaluations focused primarily suite market, especially sometimes SAS is also or BP&F. on financial consolidation both that requires as a complex solution perceived our surveyresults significant and specialized skills; however, indicate unusual costs for SAS CPM solutions. to date don’t specific solutions and overall PM approach, a reputation a overall PM approach, specific solutions and • a solution for all the components of CPM, provides Tagetik • is based on a data model that supports all areas 4.0 Tagetik Tagetik Strengths • rate at a faster-than-average continues to grow Tagetik • planning, strategy for predictive products As competitors’ Cautions • industry- SAS is generally known for its sophisticated, 24 l Specialization Equals Innovation in the World of Performance Management Software • worthy ofconsiderationinCPMevaluations,andinclude: market, butdidnotyetmeetourinclusioncriteria.Theyare vendors are also benefitingfrom thegrowth oftheCPMsuite continue toachievesuccessinspecificpillars.Otherspecialist pillars ofCPM,inadditiontothosethatare veteransthat there were newentrantstothemarketthatfocusonparticular There were novendorsaddedtotheMagicQuadrant.However, Added evaluation criteria,orofachangefocusbyvendor. a reflection ofa change inthemarketand,therefore, changed that wehavechangedouropinionofvendor. Thismaybe MarketScope oneyearandnotthenextdoesnecessarilyindicate change overtime.AvendorappearinginaMagicQuadrantor the mixofvendorsinanyMagicQuadrantorMarketScopemay MarketScopes asmarketschange.Asaresult oftheseadjustments, We review andadjustourinclusioncriteriaforMagicQuadrants Vendors AddedorDropped Tagetik isstillmainlyusedbyfinanceorganizations, and • providers’ solutionsintheCPMsuitemarket. and hasbeenintegratedintomany oftheotherthird-party Microsoft’s BIcapabilities,isresold byExact-Longview, Systems hasapartnershipwithMicrosoftAcorn toleverage experienced implementersandpartner andreseller network. andinitiative-specific solutions,aswellitsown industry- Analyzer, andthecompanyextends itsvaluethrough The vendor’s core offering istheWeb-based Performance desire toeasilyintegrateintootherCPMandBIcomponents. recognize theneedforasophisticatedPM&Osolutionand Systemsiswell-suitedforclients that and EMEA.Acorn customer installedbase,primarilyinNorthAmerica solutions asabest-of-breed provider withanestablished Acorn Systems: finance toachievecontinuedmarketpenetrationinthefuture. will needtocontinueraiseawareness andextendbeyond and Capgemini. established regional partnerships,suchaswithPwC,Deloitte meet demand,althoughmomentumisgrowing through specialists, asTagetik’s partnerbasebuildscapabilitiesto is stilllimitedavailabilityofsupportandimplementation can supportlarger organizations. Althoughimproved, there with larger direct salesforces. capableand Itssolutionisvery volume ofopportunitiesagainstestablishedCPMvendors and partner-oriented approach inTier 1saleslimitingits SystemsisfocusedonPM&O Acorn

• • • • growth inbookingsandrevenue in2010)and nowcounts has continuedtoshowstrong sales/revenue growth (50%+ into thecontextoffinancialprocesses. AdaptivePlanning groups, project managementandotherWeb 2.0features capabilities thatintegrateonlinedocuments,discussion CPM functionality, aswellWeb-based collaboration includes reporting, dashboards andmodelingformore application managementanddataintegration.Itssolution product updatethatdelivered newfeatures forreporting, 2010, thecompanyreleased AdaptivePlanning7.0,amajor inefficient, Excel-basedprocesses forCPM.InSeptember small ormidsizebusinessesthatprovides to analternative budgeting, forecasting andreporting solutionvendorfor Adaptive Planning: especially where there isastrong focusonalignment with builder approach isstillsuitableforcore CPMdeployments, broadly onPM,althoughitscomponent-basedapplication Unit4-Exie: and financialPM). closed-loop planningortosupportcollaborativeoperational complex analyticsapplications(forexample,todeliver and accesstomostdatasources supportthebuildingof workflow functionality, federatedwrite-backcapabilities a packagedCPMsuite.Itsportalintegration,integrated suited forclientswithneedsthatare outsidethescopeof its BIplatform(arcplan Enterprise).Thevendorisbetter- that are mostimportanttothemidmarket,whileleveraging mid-2010, andoffers out-of-the-boxBP&Fcapabilities generation CPMsolution(arcplan Edge)waslaunchedin CPM market,similartoBoard Itssecond- International. arcplan: for financeandotherdomainareas. allows userstobuildplanningapplicationscollaboratively planningandanalyticsplatformthat It isanin-memory Anaplan: Adaptive Planning. based budgeting,planningandreporting shouldconsider level ofcustomersatisfaction.ClientsconsideringSaaS- interactions withAdaptivePlanningclientsindicateahigh has generatedmore than100jointcustomers).Gartner’s and through partnerships(especiallywithNetSuite,which and smallerEMEAAsia/Pacificregion reseller channels) partners (developingasignificantNorthAmericanchannel more than900customers. Ithasgainedmomentumwith more than75enterprise organizations among its baseof ThisvendorbringsaBIpointofviewtothe Anaplanisanemerging SaaSplatformforCPM. Thisvendorhasfocuseditsmessage more AdaptivePlanningisanon-demand Specialization Equals Innovation in the World of Performance Management Software l 25 filing for bankruptcy suite applications from that vendor suite applications from fiscal year CPM applications in the most recent North America, South America, EMEA, geographic regions: and Japan the Asia/Pacific region public-sector/nongovernmental (NGO) organizations large with multiple, diverse departments application components described above, with at least one being BP&F and another being financial consolidation reporting and and close (and/or financial and management disclosure) Vendor Viability: Vendor • of must be viable, and must not be in the process Vendor There were no vendors dropped from the Magic Quadrant. from no vendors dropped were There Inclusion and Exclusion Criteria Market Presence: • of the CPM customers using two or more At least 20 live • of at least $5 million from maintenance revenue License and • than one of the following in more Live customers • companies, or customers – either midsize or large Target Capabilities: Product • of the includes at least three A CPM suite offering financial governanceAs mentioned above, applications in 2011, we saw new with CPM suites and, converging are many of the from partnerships and acquisitions offerings, There management area. the disclosure vendors, principally in financial that offer vendors a number of best-of-breed are governance management, close for disclosure solutions management that will integrate management and reconciliations and could function as extensions, with CPM and ERP suites BlackLine Systems, Chesapeake including solutions from Rivet Software, System Solutions, Fiserv-CheckFree, Infogix, UBmatrix. and WebFilings Trintech, SmartStream, Dropped for strategic finance This is a SaaS solution a Web-enabled offers Swedish-based Prodacapo is a SaaS CPM solution built on Tidemark This Finnish-based vendor predominantly provides provides This Finnish-based vendor predominantly Tidemark: using Cloudera’s cloud computing infrastructure, Terremark’s virtualization and SnapLogic Hadoop distribution, VMware emphasis on mobile delivery and with a strong middleware, engaging visualization. management objectives. Collaboration and reporting management objectives. Collaboration and reporting core by a portal that integrates the three provided are QPR FactView components of the solution (QPR ScoreCard, with Excel integration and support and QPR ProcessGuide) to indicate that (relative QPR clients Server. for SharePoint have been some implementation other CPM vendors) there and support issues impacting customer satisfaction. solutions through its direct business and partner network, its direct solutions through 780 global CPM customers (although serving approximately in EMEA, QPR has seen the majority of its customers are QPR also expansion in the Asia/Pacific region). increased enables customers to model and optimize business processes with strategic and risk that help align business processes as customers increasingly look to profitability modeling look to profitability as customers increasingly business and strategy management solutions to drive is available as a modular transformation. Prodacapo on either SQL Server Oracle. application residing or QPR: strategy management, planning and reporting scorecarding, (in global operations and customers in North America and the Asia/ August 2010, it opened its first office there) combination an interesting By offering Pacific region. and analysis, of modeling, data integration, reporting outside its Scandinavian has continued to grow Prodacapo market share greater home markets, and is able to capture Prodacapo: and CPM suite with a focus on activity-based management modeling, business planning, and a balanced profitability organizations. and large at midsize targeted scorecard EMEA- are Although most of its 170 active CPM clients now has international with customers based, Prodacapo other areas of performance management. of performance other areas FinanceSeer: for the finance analyst. FinanceSeer is capabilities, intended for strategic partnering with SAP as part of its CPM offering finance. using by Unit4, and Unit4 is Exie has been acquired strategy. to launch a range of packaged business technology Exie’s in 2012. These will be downloadable analytics applications aspects of CPM and and will cover several an app store from • • • • 26 l Specialization Equals Innovation in the World of Performance Management Software • market positions: These criteriaandweightingswere usedtoevaluatevendors’ Ability toExecute Evaluation Criteria • • • • • • including theunderlyingtechnicalarchitecture. across thefiveapplicationcomponents describedabove, Product/Service: efficiently inthemarketonanongoing basis(see Table 1). vehicles thatenablevendorstooperate effectively and such asskills,experience,programs, systemsandother Factors includethequalityoforganizational structure, meet goalsandcommitmentswithrespect toCPMsuites. Operations: support desk,aswellimplementationservices. also includesthequalityandavailabilityofvendor’s clients tobesuccessfulwiththeirCPMsuites.Thiscriterion to deliverpresales andpostsalessupport,whichenables Customer Experience: Track Record, aswellunderOperations. because itwasevaluatedaspartofMarketResponsivenessand Marketing Execution: to reflect itsincreased importanceinamore mature market. its CPMsuite.Thiscriterionwasraisedinprioritytostandard value proposition andthenumberofliveimplementations responsiveness to users,capabilitytoarticulateaclearCPM the vendor’s overalleffectiveness inthemarket,includingits Market ResponsivenessandTrack Record: CPM suitelicenses,implementationsandownership. them. Thiscriterionalsoincludesanassessmentofthecost capabilities inallsalesactivitiesandthestructures thatsupport Sales Execution/Pricing: within thevendor’s portfolioofproducts. individual businesswillcontinuetoinvestintheCPMsuite practical successofthebusiness,andlikelihoodthat organization’s overallfinancialhealth,theand Organization): Overall Viability (BusinessUnit,Financial,Strategy, Thisinvolvestheorganization’s capabilityto Thisincludesanassessmentofthe ThisinvolvesCPMsuitefunctionality This was not rated as a separate criterion, Thiswasnotratedasaseparatecriterion, Thisincludesthevendor’s capability Thiscomprisesthevendor’s This involves Thisinvolves Table 1.AbilitytoExecuteEvaluationCriteria • • • • • of vendorsinthemarket: These criteria and weightings were used to evaluate the position Completeness ofVision Customer Experience Marketing Execution Track Record Market Responsivenessand Sales Execution/Pricing Organization) Unit, Financial,Strategy, Overall Viability (Business Product/Service Evaluation Criteria Source: Gartner(March 2012) Operations vendor’s strategytodeliverCPMsuitesthemarket. Business Model: underlying technology, andopenness. strategy coveringbreadth anddepthoffunctionality, Offering (Product) Strategy: andthecustomerbase. expertise, technologies,services that extendthescopeanddepthofmarketreach, skills, andcommunicationaffiliates sales, marketing,service, that usestheappropriate networkofdirect andindirect Sales Strategy: effectivelyand isexternalized tothemarket. communicated consistentlythroughout theorganization set ofmessagesmatchingGartner’s visionofCPMthatis Marketing Strategy: well-understood bymostvendors. was reduced in priority tolowbecausethemarketisnow enhance thesewantswiththeiraddedvisions.Thiscriterion buyers’ wantsandneeds,whethertheycanshapeor show thehighestdegree ofvision,listentoandunderstand into products Itaddresses andservices. whethervendors to understandbuyers’needsandtranslatethese Market Understanding: ThisisthestrategyforsellingCPMsuites Thisrefers tothesoundnessofeach Thisinvolvesaclear, differentiated Thisisthevendor’s capability ThisistheCPMsuiteproduct high no rating standard standard high high Weighting standard Specialization Equals Innovation in the World of Performance Management Software l 27

and Regulatory Enhance Financial Controls to Emerge management disclosure Reporting”), and in particular, Management capabilities (see “Navigating the Disclosure to in relation Marketplace”). This is especially prevalent additional applications to support the financial close and regulatory as well as the financial and consolidation processes, While CPM is capable of processes. and disclosure reporting enterprise capabilities, most of the vendors supporting broad have taken up the messaging, while also diving deeper into focus on the office of finance. grow and provide consistent execution. and provide grow Niche Players of the CPM suite Niche Players do well in a specific segment or outperform market, or have limited capability to innovate may be focused other vendors in the market. These vendors likely to lack are on a specific domain or aspect of CPM and to broader may have gaps relative or they depth of functionality, have Niche Players may CPM suite functionality requirements. CPM suites, but limited implementation and broad reasonably limited customer bases, or support capabilities, and relatively they may not have achieved the necessary scale to solidify their presence market positions. Some have a limited geographic outside their home regions. Context vendor consolidation marked by large-scale years were Previous like and subsequent portfolio rationalization, while this year, stable market in which the vendors 2011, has seen a more vendors selling to have focused on execution, with large their existing customer bases and most vendors that sell 1 companies bringing in additional to midmarket and Tier financial governance capabilities. As in 2010, 2011 saw the development, partnering and acquisition of financial governance vendor portfolios for CPM capabilities into the core financial governance (see “Financial Governance Applications provide offerings that are complementary their established that are to offerings provide leverage their primary to installed in order business applications limited vision of may also have a more client base. Challengers CPM than Leaders. Visionaries a CPM suite. They are vision for delivering have a strong Visionaries of their applicationdistinguished by the openness and flexibility they of functionality in the areas depth offer and architectures functionality to broader but they may have gaps relative address, vendor is a market thought leader and an A Visionary requirements. it may have yet to achieve sufficient scale and/ innovator; however, may be concerns or there capability to about its or market share, low standard standard high high standard no rating standard Weighting This is the vendor’s strategy to This is the vendor’s This is the vendor’s strategy to direct strategy to direct This is the vendor’s This was assessed under each criterion above, as This was assessed under Geographic Strategy: to meet the specific needs of and offerings skills resources, or through geographies outside the home geography directly for the partners, channels or subsidiaries, as appropriate 2). geography and market (see Table the market. Innovation: was assessed innovation (for example, product appropriate innovation Strategy). Therefore, [Product] under Offering was not rated as a separate criterion. Vertical/Industry Strategy: Vertical/Industry to meet the specific skills and offerings resources, direct segments. This criterion was raised needs of vertical market maturity of the increasing to reflect in priority to standard 2012) (March Gartner Source: Strategy (Product) Offering Business Model Strategy Vertical/Industry Innovation Geographic Strategy Evaluation Criteria Market Understanding Marketing Strategy Sales Strategy in execution and are supported by the viability and operational in execution and are capability to deliver on a global basis. Challengers and multinational sales revenue Challengers must have strong but their of functionality, good breadth capabilities. They offer CPM components. They may solutions may lack one or more CPM suite market and demonstrate superior CPM sales levels. and depth of CPM suite functionality, They can deliver breadth enterprisewide implementations to support as well as provide Leaders excel at vision, successfully strategy. CPM a broad are with buyers, that resonates articulate a business proposition international presence in the space, have broad well-recognized Quadrant Descriptions Leaders in the of the market share percentage Leaders possess a large Table 2. Completeness of Vision Evaluation Criteria 2. Completeness of Vision Table • • • 28 l Specialization Equals Innovation in the World of Performance Management Software the remaining megavendors. solution from cundus,whichfurther transitionsmarketshare to consolidation, suchaswiththeSAPacquisitionofadisclosure about themarketoutlook.We continuetoseeincreasing market and thevendorsthatsupportitremain buoyantandpositive basis ofsupportinggrowth strategies. Consequently, themarket as in2010,manymore CPMinitiativeswere justifiedonthe helped tomanagecostoptimizationefforts, butthrough 2011, Through thepast36monthsof economicuncertainty, CPMhas the highervalue oftheselessadoptedCPMcomponents. scope oftheirsolutions; first-timeadoptersare alsoinvestigating and profitability modelingtoincrease thesophisticationand reporting are nowincreasingly lookingatstrategymanagement Clients thathaveestablishedCPM solutionsforBP&Fand CPM (suchasstrategymanagement andprofitability modeling). functions (primarilyBP&F),and lessonthestrategicaspectsof implementations havefocusedmore onimproving thefinancial and financial reporting. Furthermore, mostCPMsuite core managementprocesses forBP&F, financialconsolidation are usingspreadsheets orlegacyapplicationstomeettheir large enterprisesandasmuch65%ofmidsizebusinesses become more widespread, Gartnerstillestimatesthat35%of reporting results. Althoughawareness oftheCPMconcepthas can improve financial reporting andensure theaccuracyof understanding ofthedriverscorporateprofitability, and (and associatedcompliancechallenges),candeliverabetter processes, suchasBP&F, financials andregulatoryreporting accuracy andtransparency tomanyfinancialmanagement tactical setofapplications.CPMsuitescanbringgreater rigor, CPM shouldcontinuetobeconsidered bothastrategicand from amongthemegavendors. options thatappealtoorganizations thatdonotwanttochoose continue tooffer leading-edgefunctionalityandlicensing market duringthenextthree tofiveyears.Emerging specialists market, andwepredict thatthiswillhaveamajorimpactonthe and Tidemark) thatare onlySaaS-basedmodelsenterthe CPM isseeingemerging solutions(e.g.,Anaplan,FinanceSeer there are nonewentrantsintheMagicQuadrant.Inparticular, 90 vendorsoffering fullorpartialsolutionsforCPM),although specialist vendorscontinuetogrow (Gartneristrackingover acquisitions (e.g.,IBMClaritySystemsCPM).Additionally, to deemlegacyinfavorofgo-forward products afterthese road maps,althoughvendorsare notafraidto choose products there isstillsome uncertaintyamongusersaboutfuture product and IBM);althoughtheyallhavestrong product portfolios, of marketshare, bythethree CPMmegavendors(Oracle,SAP In particular, themarketcontinuestobedominated,interms comprises aseriesofanalyticsapplications,suchasBP&F, against strategicandoperationalperformancegoals.CPMalso management), andthemetricsusedtomeasure performance processes (includingthebalancedscorecard orvalue-based and forecasting), themethodologiesthatsupportthese performance (suchasstrategyformulation,budgeting CPM includestheprocesses used tomanagecorporate Market Overview the abilityofanysolutiontomeetyourPMandBIneeds. based ontheirfitwiththesekeybusiness requirements, andon solutions. Therefore, conductevaluations oftheCPMsuites Hence, there isstillasignificantandgrowing demandforCPM constraints are componentsofwhattheCPMsuite targets. and consolidation.Thestudyshowed thatmanyofthetop measurement/scorecards/dashboards, andfinancial reporting in 2012,according tothestudy, are BP&F, performance 46%). ThetopCPMprocesses thatCFOswillseektoupgrade 2011 and2012,(BIat65%enterpriseapplications these categoriestoppedCFO’s technology initiativeplansfor considered bothaBIandanenterpriseapplication,of a majortechnologyinitiativeforCFOs;becauseCPMis 2011 GartnerFEITechnology Study”)foundthatCPMwas technology study(see“CFOsCiteBIandCPMasTop Priorities: (FEI) The 2011GartnerFinancialExecutivesInternational them totheirfullestextent. these applications,andfewcompaniesappeartobeleveraging among mostfinanceandbusinessusersaboutthepotentialof disclosure processes. However, there isalackofknowledge capabilitiestosupportfinancialcloseand financial governance have seenanexpansionofCPMcoveragetoincorporate pursue profitable revenue growth, and,inthepastyear, we to identifythedriversofprofitability tohelporganizations compliance issues.Increasingly, CPMapplicationscanbeused which canimprove andhelpaddress corporategovernance to bringconsistencyfinancialandoperational reporting, to operationalexecution;theyalsoleverageBIinvestments However, CPMapplicationsare alsokeyinlinkingstrategy focus onBP&Forfinancialconsolidationandreporting. Market Definition/Descriptionsection).CPMprojects typically senior executivesandcorporate-leveldecisionmakers(seethe methodologies andmetrics,targeted attheCFO,financeteam, which provide thefunctionalitytosupporttheseprocesses, financial consolidationand reportingsolutions, Specialization Equals Innovation in the World of Performance Management Software l 29 typically focus on BP&F or CPM projects Most current is still reporting, and there on financial consolidation and is significant penetration there a long way to go before management and strategy management. in profitability also key in linking strategy CPM applications are However, to operational execution; they also leverage BI investments reporting, to bring consistency to financial and operational corporate governance and can help address which can improve CPM applications can be used compliance issues. Increasingly, to help organizations to identify the drivers of profitability users about these vendors’ future product road maps, most road product users about these vendors’ future focus on TM1 over its the implications of IBM’s around recently are there Clarity Systems CPM solution. Additionally, acquired leading-edge functionality many specialist vendors that offer do not that and licensing options that appeal to organizations CPM the megavendors. In 2010, Oracle’s want to choose from 13.4%, 19.6% and IBM grew 18.9%, SAP grew suite grew all rate of 12.8%. Almost all above the CPM market growth traditional in the market is generated through the revenue we have also seen implementations. However, on-premises traction for SaaS-based CPM solutions. increased were While the 2011 Gartner FEI study shows there of the maturity 2010 in the perception from improvements for further is also room of BI and CPM investments, there integrating CPM with operational mostly around improvement, felt that percent data and strategy management. Twenty-five was complete consistency between operational and CPM there between differences were 75% cited that there however, results; operational data and financial data, with 54% of that percentage but 21% claiming minor differences, stating that these were during Unfortunately, issues with consistency. severe more reporting runs, most of the financial close and management differences. time is spent chasing down reconciliation one of the fastest rates in enterprise 13% – The BI market grew in 2010. The CPM suite $10.5 billion – to reach software that, at 12.8% in 2010, up from a bit less than market grew Analysis: Business “Market Share 2.8% the prior year (see and Performance Management, Intelligence, Analytics a mature 2010”). Gartner believes CPM is now Worldwide, perhaps in the future, steady growth market that will show is less than that of the BI market, as there continuing at slightly enterprise disciplines in analytics and across a general interest 17.7%. BI platforms, which grew by three The CPM market continues to be dominated they all have megavendors: Oracle, SAP and IBM. Although is still some uncertainty among portfolios, there product strong

– A common – In line with a general – Enterprises have become – 2011 brought a renewed a renewed – 2011 brought Because SaaS could be applicable to their organizations. less configurable, this was done in solutions typically are concert with the abovementioned “back-to-basics approach. for “the last mile of finance” SaaS is also being considered management, with set of applications, including disclosure seeing and WebFilings vendors such as Rivet Software success. increased Investment in SaaS applications including in SaaS platforms for CPM functionality, interest vendors such as Host Analytics, Adaptive Planning, Many firms that would Anaplan and Tidemark. FinanceSeer, now questioning if it are SaaS before not have considered CPM or legacy implementations, rather than to look at new CPM investments, as well as to move to common enterprise was also platforms for BP&F and other CPM pillars. There that they should be able organizations a belief among more “vanilla” approach, to implement these solutions via a more with less customization/configuration, particularly for BP&F. to execute on future CPM projects effectively, if organizations if organizations effectively, CPM projects to execute on future mind, anddo not select solutions with the full scope in the future. instead have to integrate disparate systems in Back to basics/CPM consolidations 2011 purchased, assets already to leverage software desire existing encouraged some clients to focus on improving approach in 2011 was to purchase and deliver a single CPM in 2011 was to purchase approach often BP&F component as opposed to a full CPM suite, most entails reporting. This approach or financial consolidation and misses thefewer costs and risks and less time, but it also a full from transformational benefits that could be obtained the abilityCPM suite implementation. It also puts in question This tactical versus strategic approach reduced the scope of reduced This tactical versus strategic approach buying from and customers retrenched many CPM projects, components of CPM, such as profitability more-strategic these projects modeling and strategy management, postponing for 2012 and beyond. Focus on point solutions for CPM pillars more cautious about taking on big or complex projects when on big or complex projects cautious about taking more As in 2010, this cautious market has funding is less certain. focus on total cost signings and more meant delays in contract of a focus on financial was more There of ownership and ROI. management including disclosure consolidation and reporting, BP&F. (also due to the U.S. XBRL mandate) and traditional Emphasis on the office of finance Emphasis on the office • • • Trends for CPM that emerged or continued to be strong in in be strong or continued to for CPM that emerged Trends 2011 were: • 30 l Specialization Equals Innovation in the World of Performance Management Software the financeorganization canaddress itstopconstraint. to successforthefinanceorganization. ByleveragingPM&O, and profitability management. In fact,theseare topconstraints of theadvancedfunctionality, includingstrategymanagement have implementedCPMsolutionsnotmore leveraging themtotheirfullestextent.Manyorganizations that potential oftheseapplications,andfewcompaniesappeartobe knowledge amongmostfinanceandbusinessusersaboutthe pursue profitable revenue growth. However, there isalackof factors, includingthegrowing acceptanceoforganizationwide more widelyused.Thisincreased usageisduetoanumberof This year’s indicates thatCPMsolutionscontinuetobe survey part ofthevendorevaluation. throughout asanimportant theyear;theseinteractionsserve evaluated from GartnerCPMreference visitsandcalls are alsotheresult ofthesignificantconsiderationinformation results,In additiontothesurvey finalMagicQuadrantratings range ofindustries. As withpreviousrespondents years,survey represented awide 500ormore users:18% • 200to499users:17% • 50to199users:28% • Oneto49users:37% • deployments hadthefollowingrangesofusers: region, 4%;and theMiddleEastandAfrica,1%.TheseCPM Europe,Latin America,9%;Central/Eastern 7%;theAsia/Pacific regions, asfollows: NorthAmerica,55%;Western Europe, 25%; companies headquartered across sixdifferent geographic 233 fullresponses (upfrom 220in2010)representing assessment oftheCPMsuitemarket.For2011,weobtained vendors andsolutions.Theresults were usedinsupportofthe 20 specificquestionsabouttheirexperienceswithCPM customers werein thisMagicQuadrant.Thesesurveyed asked customer references nominatedbyeachofthe13CPMvendors organizations usingCPMproducts. participantswere Thesurvey As partofthisresearch, of Gartnerconductedasurvey AlthoughCPMisstillgenerallysponsored byfinance,for • 2010, including: measuressurvey furtherevidencewiderCPMusein2011vs. continue toselltheirexistingcustomerbases.Severalspecific into widerBIandPMstrategies.Thishasallowedvendorsto their CPMinvestments,andthefurtherintegrationof CPM initiatives,thefactthatorganizations are better-leveraging management module(upfrom 55%and39%,respectively). Bitam’s customersand50%ofIBM’s customersusethestrategy least widelyused,thisvariesbyvendor. Forexample,81%of Although theselattertwomodulesare, onthewhole, remain fairlyconsistentat31%and27%,respectively. close (53%,upfrom 43%).PM&Oandstrategymanagement consistent with63%lastyear),andfinancialconsolidation by financialmanagement,reporting anddisclosure (65%, of respondents usethismodule,upfrom 75%)followed BP&F remains themostwidelyusedCPMmodule(82% Asexpected,themajorityofCPMdataissourced from • Theaverageimplementationsizeissteadilygrowing. • now widelyusedacross theorganization tohelpmanage indicatedthatCPMsoftware(41%) ofthosesurveyed is (down from 55%lastyear).Conversely, agreater percentage senior managementtoreport onfinancialperformance reported thatCPMsoftware ismainly usedbyfinanceand the firsttime,fewerthanhalf(47%)ofsurvey respondents sources (37%,upfrom 29%). data warehouses (38%,upfrom data 29%)andexternal operational applications(36%,upfrom 24%),Corporate percentage ofdatawasreported asbeingsourced from data warehouses (45%).However, for2011,ahigher Finance applications(76%),spreadsheets (70%)andERP from 17%lastyear). has 52%(upfrom 45%)andIBMhas41%(alarge increase largest percentage of500+userimplementations;Oracle respondentsOracle andIBMcustomersurvey havethe last year).Theseresultsbyvendor. alsovary Forexample, implementations have500ormore users(upfrom 13% For example,respondents report that18%oftheir their business(upfrom 30%lastyear). Specialization Equals Innovation in the World of Performance Management Software l 31 m 36%) (up from and business performance” 31%) (up from profitability” • financial of future 37% selected “allows better prediction • the drivers of 36% “allows better understanding of year’s to support previous These survey continue results fulfilling steadily CPM solutions are findings, indicating that analytics and strategic purposes within PM and BI increasing frameworks. financial budgets and operational activity” (up from 31%) (up from financial budgets and operational activity” performance” (up from 42%) performance” (up from • a linkage between strategic planning, “provides 39% selected solutions provide more strategic benefits. For example, among strategic benefits. more solutions provide respondents: • better understanding of current a “provides 46% selected to indicate that the greatest continue Although respondents use of traditional BP&F to finance’s relate benefits realized a worthwhile to note that It’s and financial close modules, indicate that their CPM of them percentage gradually increasing 32 l Specialization Equals Innovation in the World of Performance Management Software geography andmarket. outside the“home” ornativegeography, eitherdirectly orthrough partners,channels andsubsidiariesasappropriate forthat Geographic Strategy: defensive orpre-emptive purposes. Innovation: market segments,includingverticals. Vertical/Industry Strategy: Business Model: functionality, methodology andfeature setastheymaptocurrent andfuture requirements. Offering (Product) Strategy: customer base. and communicationaffiliatestoextendthescopedepthof marketandthereach, skills, expertise,technologies,services Sales Strategy: through aWeb site,advertising,customer programs andpositioning statements. Marketing Strategy: those withtheiraddedvision. Vendorsservices. thatshowthehighestdegree ofvisionlistenand understand buyers’wantsandneeds,canshapeorenhance Market Understanding: Completeness ofVision efficiently onanongoingbasis. structure, including skills,experiences,programs, systemsandothermeansthatenabletheorganization tooperateeffectively and Operations: customer supportprograms (andthequalitythereof), availabilityofusergroups, agreements service-level andsoon. Specifically, thisincludesthewayscustomersreceive tools, technicalsupportoraccountsupport.Thiscanalsoincludeancillary Customer Experience: promotional, thoughtleadership,word-of-mouth andsalesactivities. with theproduct/brand andorganization inthemindsofbuyers.This“mindshare” canbedrivenbyacombinationofpublicity, to influencethemarket,promote thebrandandbusiness,increase awareness ofproducts, andestablishapositiveidentification Marketing Execution: vendor’s ofresponsiveness. history opportunities develop,competitorsact,customerneedsevolveandmarket dynamicschange.Thiscriterionalsoconsidersthe Market ResponsivenessandTrack Record: management, pricingandnegotiation,pre-sales supportandtheoveralleffectiveness ofthesaleschannel. Sales Execution/Pricing: portfolio ofproducts. to investintheproduct, continuing tooffer theproduct andcontinuingtoadvancethestate of theartwithinorganization’s financial health,theandpracticalsuccessofbusinessunit, andthelikelihoodofindividualbusinessunitcontinuing Overall Viability (BusinessUnit,Financial,Strategy, Organization): as definedinthemarketdefinitionanddetailedsubcriteria. product/service capabilities,quality, feature sets,skillsandsoon,whetheroffered nativelyorthrough OEMagreements/partnerships Product/Service: Ability toExecute Evaluation CriteriaDefinitions Theabilityoftheorganization tomeetitsgoalsandcommitments.Factorsincludethequalityoforganizational Direct, related,andsynergistic complementary layoutsofresources, expertiseorcapitalforinvestment,consolidation, Thestrategyforsellingproduct thatusesanappropriate networkofdirect andindirect sales,marketing,service Thesoundnessandlogicofthevendor’s underlyingbusinessproposition.

Core offered goodsandservices thedefinedmarket.Thisincludescurrent bythevendorthatcompetein/serve A clear, differentiated setofmessagesconsistentlycommunicatedthroughout theorganization andexternalized Theclarity, quality, creativity andefficacyofprograms designedtodelivertheorganization’s messageinorder The vendor’s strategytodirect resources, skillsandofferings tomeetthespecificneedsofgeographies Relationships,products andservices/programs thatenableclientstobesuccessfulwiththeproducts evaluated. Ability ofthevendortounderstandbuyers’wantsandneedstranslatethoseintoproducts and Thevendor’s capabilitiesinallpre-sales activitiesandthestructure thatsupportsthem.Thisincludesdeal Thevendor’s strategytodirect resources, skillsandofferings tomeetthespecificneedsofindividual Thevendor’s approach toproduct thatemphasizesdifferentiation, developmentanddelivery Abilitytorespond, changedirection, beflexibleandachievecompetitivesuccessas Viability includesanassessment oftheoverallorganization’s Specialization Equals Innovation in the World of Performance Management Software l 33

Ørestads Boulevard 73 2300 Copenhagen RG24 8AG England Prophix Europe Phone: + 45 7023 2375 Winghouse Prophix UK Phone: 01256 338611 Grove House Lutyens Close Basingstoke Hampshire Phone: 1-905-279-8711 1-800-387-5915 Toll-free: Suite 1000 350 Burnhamthorpe Road W., Mississauga, Ontario L5B 3J1 Canada combining high-end functionality with low cost-of-ownership and combining high-end functionality with low cost-of-ownership solutions built fast implementations. With powerful and adaptable stack, Prophix streamlines Server entirely on the Microsoft SQL and more. budgeting, planning, reporting, consolidation, Head office performance management solutions designed to automate performance management processes, making companies more financial and operational of finance leaders Thousands their risks. profitable and reducing to empower in nearly one hundred countries use Prophix into business their organizations and gain valuable insight superior value by performance. Prophix and its partners deliver About Prophix leading developer of innovative Prophix Software is a