bpm 2.0: new vendors, new products · core vendor: business objects ... budgeting and financial...

BPM 2.0: New Vendors, New Products

Presenter: Craig Schiff, CEO, BPM PartnersNovember 13, 2007

Craig SchiffCraig Schiff, CEO, BPM Partners, a vendor-neutral BPM consulting firm that guides clients through their BPM initiatives from start to finish.Founding member of Hyperion, spent 16 years as head of its Products & Services group. Co-founder and first CEO of OutlookSoftBPM Standards Group founding member, contributor to BPM Magazine, Business Finance, Business Intelligence Network, DMReview20+ years focused on analytic applications, BI, and BPM

BPM 2.0 … Agenda

BPM 2.0 Expanded DefinitionBPM Pulse Market FeedbackNew FunctionalityVendor Evolution Vendor Landscape MatrixImpacts on Customers, Vendors, ConsultantsBest Practices

BPM 2.0

BPM is a set of integrated, closed-loop management and analytic processes, supported by technology, that address financial as well as operational activities.BPM is an enabler for businesses in defining strategic goals, and then measuring and managing performanceagainst those goals.

BPM 2.0

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

BPM 2.0

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

BPM Technology Framework

ERP, CRM, SCM

Other Legacy

Systems

Data Ware

houses

Spread-sheets, Office docs

Related Analytic

AppsExternal

Data

Extract, Transform, and Load

-

Strategize

Metrics builders

Strategy mappers

Objective and goal setters

Plan

Budgets

Capacity and HR Plans

Forecasts

Process Modeling

Monitor and Analyze

Consolidation

Reporting

Multi-dimensional analysis

Scorecards

Corrective Action

Alerts

Target Management

Report and Query Tools, Portals, Collaboration, Dashboards

User Interface

Source Data

Database

Applications

Enabling Technologies

Enabling Technologies

BPM Datamart

Relational and Multi-Dimensional Structured and Unstructured

Dat

a Fl

ow

Browser Spreadsheets

Actual & Plan Data

Source: BPM Standards Group

Other Interfaces

BPM Pulse Market Feedback

BPM Pulse Survey

Conducted October 2006 – February 2007Not vendor-sponsored500+ Valid ResponsesAcross all industries and geographies, largest group of respondents in North AmericaRoughly equal mix of small, medium, and large companiesMix of finance, IT, and operations respondents

BPM Status

BPM Pulse Survey

55%

17%

13%

7%8%

In ProgressPlanned: S/TPlanned: L/TCompletedNo Plans

50%

16%

14%

10%

10%

2006 2007

Status Detail

BPM Pulse Survey

52%

13%

35%

New BPMExpansionReplacement

2007

Standardization/Consolidation

BPM Pulse Survey

67%

33%YesNo

2007

BPM ComponentsBPM Pulse Survey

0% 10% 20% 30% 40% 50% 60%

Consolidation

Strategic Planning

Full Suite

OperationalAnalytics

Dashboard

Budget/Forecast

2007

Capability ImportanceBPM Pulse Survey

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Incentive CompMgmt

ExternalBenchmarking

PredictiveAnalytics

Data Visualization

ProfitabilityAnalysis

2007

New Functionality

Core BPM

Consistent set of information for ‘one version of the truth’Streamlined budgeting and monthly close processReduced labor costsStrategic alignmentWhat’s Needed: More Users, More Breadth, More Depth

BPM 2.0 Overview

Easier to implement and useLower cost optionsVertical depthOperational focusHolistic viewPredictive capabilitiesCompliance and risk management

More Pre-built Functionality

Driver-based planningWorkforce planningCapital planningBudget creation wizardsBenefits: less consulting required, easier to use, can roll out to more people

Vertical Offerings

Quicker implementationShorter learning curveBuilt-in best practicesComplementary applicationsBenefits: Lower TCO, extended capabilities

On Demand/SaaS Options

Less IT staff and infrastructure requiredReduced costCash benefit of subscription pricingAlways the latest versionBenefits: easier entry point for small to mid-size companies

Key Elements of BPM 2.0

Focused financial analysisPredictive capabilitiesOperational analytics

Focused Financial Analysis

Working capital analysis– In depth cash forecasts– Cash dashboardsCustomer profitabilityProduct profitabilityProfitability optimizationBenefits: Maximize investment returns

Predictive Capabilities

Forward-looking informationAnalysis of root causesTrend extrapolationIncorporation of external dataBenefits: beyond historical tracking, data to enable decision-making

Operational Analytics

Goes beyond Finance and brings BPM to all areas of the companyGreatest potential paybackSales performance tracking– Relative sales by product, region, repIT performance measuresEmployee performanceBenefits: comprehensive enterprise view, increased relevancy, cultural impact

Compliance

Historical: first-generation BPM aided sign-off requirementsAudits and controls: manual or separate systemsToday: integrated BPM and compliance solutionsSingle data source – reduced reconciliationsPre-built systems controls and auditabilitySecurity and visibility

Compliance

Drill-down to source dataAutomation of typically manual processes such as intercompany reconciliationsInternal control testing and sign-offProcess managementDetailed documentationCompliance dashboardsBenefits: Improved governance and adherence to regulations

Risk Management

Historical: insurance, crisis preparednessToday: investment analysisRisk-adjusted returnsFinancial services institutionsSynchronize acceptable risk levels and strategyBenefits: Analyze investment alternatives from a risk perspective

BPM 2.0 Summary

Easier to implement and useBuilt-in best practicesOperational focusHolistic viewPredictive capabilitiesRisk management and complianceBetter informed decisions with greater probability of achieving expected results

Vendor Evolution

Analysis of M&A

Prior mid 2006: Core– Budgeting– Consolidation– Dashboards– Business Intelligence + Applications

Mid 2006 – mid 2007: BPM 2.0– Ease of use/distribution– Predictive capabilities– Profitability analysis– Operational analytics

Mid 2007 – present: Scale– Customers– Employees– New Markets

Key to Grid

Core:– Bud: Budgeting/Forecasting– Dash: Dashboards– Con: Financial consolidation– BI: BI for BPM (ETL, Report&Query, MDM)

BPM 2.0 Technologies:– T2.0: Data visualization, open source, 64-bit, SaaS, SOA, search, mobile,

applianceBPM 2.0 Applications:

– A2.0: Predictive analytics, profitability analysis/ABC, external benchmarkingOperational Analytics

– OA: Sales, HR, IT, R&D, Manufacturing, etc.Profile:

– Vert: Vertical offerings– Global: Global support– Refs: Large reference base

Core Vendor: Applix

Snapshot

Applix ■ ■ ■ ■ ■ ■ ■ ■

Bud Dash Con BI T2.0 A2.0 OA Vert Global Refs

Comments: Applix uses the TM1 OLAP engine to provide budgeting, planning, consolidation, reporting and analysis applications on one platform that companies can extend with additional financial and operational applications. Applix enhanced its reporting capabilities with the addition of Applix Executive Viewer, a self-service reporting and analysis solution that enables creation and publication of graphical reporting dashboards, standardized reports and ad hoc analysis. The product uses data from TM1, Hyperion Essbase, Microsoft SQL Server Analysis Services and SAP Business Information Warehouse. Applix‘s strong distribution channel continues to grow after recent partnership announcements with the sales performance management player Varicent and with Sybase for its risk analytics platform.

4.5Highest Ratings: Performance, Product quality

Lowest Rating: Documentation

Applix M&A

Mid 2006 – mid 2007: BPM 2.0– Temtec/Executive Viewer: Ease of use

Acquired by Cognos

Core Vendor: Business Objects

Snapshot

Business Objects ■ ■ ■ ■ ■ ■ ■ ■ ■ ■


Comments: Business Objects has completed the integration of the BPM solutions acquired from SRC Software in 2005 and now offers a comprehensive BPM suite, including planning, budgeting and financial consolidation solutions with robust BI, reporting and analysis tools. The company continues to expand its vertical market solutions to include applications built for insurance and financial services, health care, and retail/CPG. The enterprise recently expanded its profitability management, activity-based costing and predictive driver-based planning capabilities with the acquisition of ALG Software and its Enterprise Performance Optimization suite of profitability management and activity-based costing solutions.

3.4

Highest Rating: Ease of use, Sales process

Lowest Rating: Documentation, Product quality

Business Objects M&A

Prior mid 2006: Core– SRC: Budgeting, Consolidation, verticals

Mid 2006 – mid 2007: BPM 2.0– ALG: Activity-based costing, profitability

optimization– Cartesis: Statutory consolidation, external

benchmarking, governance, risk, and compliance

To be acquired by SAP

Core Vendor: Cartesis

Snapshot

Cartesis ■ ■ ■ ■ ■ ■ ■ ■


Comments: This vendor offers a truly unified BPM solution with a single user interface for planning, consolidation, reporting, benchmarking and analysis tools that leverage the Cartesis Integrated Data Model. Cartesis has integrated the planning and interactive reporting and analysis solutions acquired from Inea and Advance Info Systems. It offers robust dashboard performance reporting and analysis capabilities through its partnership with Panorama Software to complement its comprehensive planning, financial consolidation and reporting solution. The company continues to expand its North American team to focus on growth within targeted mid- and large- market organizations. It remains a strong fit for multinational organizations seeking integrated planning, consolidation and reporting with a familiar Microsoft interface..

3.6

Highest Rating: Ease of use, Product quality

Lowest Rating: Ease of implementation

Cartesis M&A

Prior mid 2006: Core– INEA: Budgeting, vertical

Acquired by Business Objects

Core Vendor: Clarity Systems

Snapshot

Clarity ■ ■ ■ ■ ■ ■ ■ ■ ■


Comments: Clarity Systems uses an open architecture that supports multiplerelational and multi-dimensional backend databases to provide Web-based budgeting, consolidation, and reporting applications with a Microsoft Excel-like user interface. The business's starter kits provide the pre-built data models and reports that can expedite application configuration and deployment for common applications within the Banking and Financial Services, Retail, and Manufacturing sectors. Clarity Systems established a resale partnership with Thomson Elite to sell and support BPM applications designed for the legal professional services market and is developing additional domain-specific vertical solutions..

4.1

Highest Rating: Customer support, Sales process


Clarity M&A

None

Core Vendor: Cognos

Snapshot

Cognos ■ ■ ■ ■ ■ ■ ■ ■ ■ ■


Comments: Cognos‘ BPM system integrates its sophisticated planning, budgeting andconsolidation applications with a single BI solution for robust reporting and analysis functions. To extend best practices across the enterprise, Cognos offers both analytic applications such as the Workforce Performance application, which is built upon an adaptive application framework, as well as Performance Blueprints, which leverage the solution capabilities of Cognos planning, consolidation, reporting and BI. Industry-specific blueprints exist for the financial services, life sciences, manufacturing, public-sector and retail industries. Cognos continues to enhance user access to the Cognos 8 solutions through refreshable connections

3.7

to the Microsoft Office suite and through the addition of search capabilities and mobile device report access.

Highest Rating: Product functionality, Ease of use

Lowest Rating: Consulting

Cognos M&A

Prior mid 2006: Core– Adaytum: Budgeting– Frango: Consolidation

Mid 2006 – mid 2007: BPM 2.0– Celequest: Operational analytics, ease of

distributionMid 2007 – present: Scale– Applix: Mid-market

To be acquired by IBM

Core Vendor: Hyperion

Snapshot

Hyperion ■ ■ ■ ■ ■ ■ ■ ■ ■ ■


Comments: Hyperion is among the leading vendors enabling the convergence of BPM and BI into a single, unified solution capable of providing robust planning, financial consolidation and strategic scorecard/dashboard reporting along with comprehensive BI reporting and analysis tools. Hyperion continued to expand its System 9 offering with the acquisition of Upstream Software and the subsequent release of the Financial Data Quality Management solution, which provides comprehensive data collection, transformation, validation and loading of financial data to Hyperion’s analytic applications. The company also announced the introduction of search capabilities using Google‘s OneBox for Enterprise search appliance, which will allow users to construct and access queries of information within the System 9 suite..

3.7


Lowest Rating: Documentation, Ease of implementation

Hyperion M&A

Prior mid 2006: Core– Pillar: Budgeting– Arbor: Business Intelligence/OLAP– Brio: Business Intelligence/Reporting

Mid 2006 – mid 2007: BPM 2.0– Decisioneering: Predictive analytics

Acquired by Oracle

Core Vendor: Longview

Snapshot

Longview ■ ■ ■ ■ ■ ■


Comments: Longview offers a fully integrated BPM solution that includes comprehensive planning, budgeting, consolidation and reporting components. This vendor‘s unique strategic tax solution facilitates tax data collection, planning and compliance reporting. Longview recently acquired Runservicenet‘s DecisionX service-oriented architecture (SOA) development platform to enable integration of the Khalix BPM solution with other enterprise applications. This is one of the few truly unified solutions and competes effectively with the larger players in the BPM market..

4.4

Highest Rating: Customer support, Price/value


Longview M&A

Mid 2006 – mid 2007: BPM 2.0– Runservicenet: SOA

Acquired by Exact Software

Core Vendor: OutlookSoft

Snapshot

OutlookSoft ■ ■ ■ ■ ■ ■ ■ ■


Comments: OutlookSoft offers a unified, Web-based BPM product, including consolidation, planning, budgeting, forecasting, predictive analytics, reporting, dashboards and scorecarding capabilities through a consistent Microsoft Excel and browser-based interface. The current release of OutlookSoft 5 supports the Microsoft Business Intelligence platform architecture as well as the Microsoft and Oracle database platforms, and it provides workflow and process management functionality. It is built upon a service-oriented architecture (SOA).

3.9



OutlookSoft M&A

Prior mid 2006: Core– Tian Software: Predictive analytics

Acquired by SAP

Core Vendor: SAS

Snapshot

SAS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■


Comments: The comprehensive and integrated SAS for Performance Management solution includes planning, budgeting, consolidation and reporting functions that leverage the SAS Business Intelligence platform. SAS offers cross-industry analytic applications for human capital management and activity-based management in addition to numerous industry-specific vertical tools. The SAS for Performance Management solution requires integration with the SAS BI platform, so this solution will be most attractive to companies looking to implement solutions containing both BI and BPM components.

4.0Highest Rating: Product functionality, Product quality


SAS M&A

Prior mid 2006: Core– ABC Technologies: activity-based costing,

profitability analysis

Transaction to Performance Vendors

Infor

Geac – financial performance managementExtensity – expense managementSystems Union – business intelligence

Microsoft

Panorama Software (OLAP and MDX) – BI for BPMProClarity – ease of use/accessFRx – mid market financial performance managementStratature – master data managementMicrosoft PerformancePoint

Oracle

Oracle CPM – performance management for OraclePeopleSoft EPM – performance management for PeopleSoftSiebel – marketing analyticsHyperion – financial performance management

SAP

SAP SEM – performance management for SAPNetWeaver – BI for SAPPilot Software – strategy managementOutlookSoft – financial performance managementBusiness Objects – business intelligence

BPM Partners Vendor Landscape Matrix

Vendor Landscape Matrix

Comprehensive

Specialized

Developing Established

Customer, Vendor and Consultant Impacts

Impact on Customers

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

Impact on Customers

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

Impact on Vendor Choices

Tools-only vendors– Shrinking, most have added BPM applications– Highly customized solutions– With today’s solutions very few companies need to

custom build BPMPackaged application-only vendors– Deep domain expertise– Focused R&D– Work with multiple databases, ERP, and BI– Need to map data from BI/ERP

Impact on Vendor Choices

Tools and Application Vendors– Generally most popular– Full suite of BPM applications and associated tools– BPM 2.0: operational analytics– ERP independent– Functionality and cost considerations

ERP and Tools and Application vendors– Newly viable this year– From transactions to performance analysis– Fully integrated data (over time)– Single vendor for ERP clients– Major questions for non-ERP clients

Impact on Consultants

Newer BPM customers are more risk averse and cost conscious– Look to expert consulting firms for guidance to avoid

costly pitfallsLarge organizations have complex performance challenges– Look to strategy consulting firms for advice and

insightSmallest firms need help also but have limited budgets– Utilize phone-base support– Purchase research to become their own experts


BPM 2.0– Deeper financial focus has brought financial

management and process consultants into the fold

– Operational analytics offers opportunities for business intelligence consultants

– Consultants new to BPM are partnering with established core BPM consulting firms


Implementation Consulting– Former vendor consultants starting new

practices post-merger– Third-party ERP consultants looking to

expand into newly acquired products– This larger pool of implementers results in

more competitive pricing and increased potential for local support and specific industry expertise

BPM Best Practices:BPM 2.0 and Vendor Evolution

Best Practices: Who Should Implement BPM?

Poorly Performing– “we’re missing our numbers as it is so we can’t make any large

expenditure right now”Rapid Growth– “there’s so much going on that we’re too busy right now to take

anything else on”Merging/acquiring– “we are quite busy trying to merge two organizations: products,

people and systems. We have no time for BPM right now”In pain– “the budget cycle we completed was so painful, we must revisit

implementing change next year.” Next year comes around, and the prep for the new budget is so difficult there is no time left for the budget process improvement project

Best Practices: Internal Teams

CFO should partner with the CIO– Understanding vendor technology roadmap

and integration challenges of each offering is critical

– BPM today requires easy access to data from multiple source systems throughout the company

Best Practices: Internal Teams

Form a cross-functional team with senior representation from across the company– Operational analytics requires team members

with a deep understanding of each department

– Also aids in attaining company-wide buy in when the system gets rolled out

Best Practices: Ideal Solution

Supports from few users to enterprise-wide adoptionUnified solution – common interface, single databaseOpen – works with multiple back-end databasesIndependent – works with most ERP and BI systems

Best Practices: Vendor Review

Detailed plans (with timeline) for product integration– Common user interface with single sign-on– Single database, interim data movement tools– Shared metadata


Product roadmap– Which modules will be maintained and for

how long– Which modules will be enhanced and actively

promoted by marketing and sales– Tools and licensing for upgrades– BPM 2.0 plans


Percentage of new BPM customers from outside of their customer base– Non BPM components required for full

functionality– Development focus– Customer priority and importance

Best Practices: BPM Expertise

Add an expert to your team– Employee or consultant to supplement

existing team members with broad and current BPM knowledge

– CFO and CIO have full-time jobs– BPM 2.0 complexity and expansion– Rapid pace of BPM evolution– Avoid costly pitfalls of go it alone trial and

error approach

What do you do now?

BPM Partners Expert Articles and Guidancehttp://www.bpmpartners.comParticipate in BPM Pulse 2008Read BPM Today – Status of Vendors, Customers, Consultants: BPM Magazine – November 2007Read Keeping Pace with the BPM Vendor Shuffle: Business Finance Magazine – November 2007Read the BPM Software Guide: Business Finance –January 2008

http://www.bpmpartners.com/

Q&A

Questions and Answers

Contact Information

Craig SchiffCEO, BPM [email protected]

http://www.bpmpartners.com/

bpm 2.0: new vendors, new products · core vendor: business objects ... budgeting and financial...

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