Yphise portfolio of valuable projects
                      Independent research since 1985

Software Product Assessment  ...
Yphise ISO 9001:2000-certified ongoing research program since 1985

Yphise independent research continuously monitors the ...
ABSTRACT

We are pleased to provide you with our opinion on the Strategy Management business
case.

Our research demonstra...
BENEFITS

Strategy Management solutions help assess company overall performance. They help
drive business objectives, whet...
Finally, a strategy can be short-, medium or long-term. Business lines need to
anticipate, simulate and analyze their stra...
Benefits for the IT processes



The main benefits                Effectiveness

for the IT processes
                    ...
information from multiple data sources. They provide out-of-the box features for
managing the processes from data extracti...
YPHISE SHORTLIST

Positioning of the market segment


The evaluated market segment is a specific one, with a precise posit...
This business case is included in the Yphise portfolio of project opportunities (August
2008).

Integrated risk management...
Management solutions are then used to plan the useful strategy associated with the
  objectives and to monitor its impleme...
Strategy Management solutions because all companies have a tremendous need of
ongoing business transformation in order to ...
consolidation, budgeting, scorecarding, dashboarding) and Cognos Report Studio
(analysis, reporting). Release 8.4 was laun...
Oracle provides a performance management solution, from its Hyperion acquisition.
However, vendor commitment is not clear ...
YPHISE RANKING


                                   SAS Strategic Performance Management



                              ...
Microsoft Office PPS



                                                 1. FACILITATING THE INDICATOR DEFINITION
        ...
practical, in order to evaluate the capacity of the solutions to provide an adequate return
on investment. It is also proa...
Strategic Performance Management (SAS) provides the best coverage of our list
of requirements. The solution stands out in ...
The solution provides efficient dashboards and reporting functions thanks to its
business intelligence capabilities. In pa...
1. FACILITATING THE INDICATOR DEFINITION ACCORDING
               TO BUSINESS OBJECTIVES




                             ...
1. FACILITATING THE INDICATOR DEFINITION
          ACCORDING TO BUSINESS OBJECTIVES

1.1. Defining accurately the objectiv...
2. IMPROVING THE OPERATIONAL STRATEGY
   MANAGEMENT RELATED TO THE OBJECTIVES




                                        ...
2. IMPROVING THE OPERATIONAL STRATEGY
         MANAGEMENT RELATED TO OBJECTIVES

2.1. Managing the operational strategy. A...
3. MONITORING THE BUSINESS PERFORMANCE OVER TIME




                                                                     ...
3. MONITORING THE BUSINESS PERFORMANCE
                                   OVER TIME

3.1. Populating the indicators from a...
Cognos Metric Studio (IBM) meets the essential requirements in the two
assessment dimensions. In particular, the solution ...
4. CONTROLLING AND IMPROVING THE BUSINESS
               PERFORMANCE




                                                 ...
4. CONTROLLING AND IMPROVING
                  THE BUSINESS PERFORMANCE

4.1. Providing efficient dashboards. All the solu...
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Yphise Software Product Assessment, Strategy Management

  1. 1. Yphise portfolio of valuable projects Independent research since 1985 Software Product Assessment EXECUTIVE VOLUME SELECTED BUSINESS CASE BUSINESS INTELLIGENCE STRATEGY MANAGEMENT To effectively meet preservation, improvement or disruption objectives IS Information GM Governance Systems SO Service PR Projects Management Abstract 3 EXECUTIVE OVERVIEW Benefits 4 Yphise shortlist 8 Yphise ranking 14 APPENDIX Assessment overview 19 Yphise ISO 9001:2000-certified independent quotations of software products
  2. 2. Yphise ISO 9001:2000-certified ongoing research program since 1985 Yphise independent research continuously monitors the strategies and solutions of all successful software vendors in order to select valuable and high-priority projects for improving the business performance. Each year, Yphise research draws up the portfolio of valuable projects that the executives should consider when making investment decisions. Yphise transforms high-level strategies or complicated problems in concrete projects with accurate benefits and valuable software solutions. Yphise puts forth investment recommendations on software solutions based on accurate assessment according to valuable business cases. Yphise judgment relies on a detailed assessment of each solution. Yphise has unique experience in identifying the useful functional and technical requirements in order to score solutions according to benefits expected by large companies. The Yphise ongoing research program has helped executives plan, prioritize, conduct and control the useful software projects in order to increase business performance since 1985. Our independence since 1985 proves our unparalleled expertise in helping the executives stand back from operational pressure and arrive at sound decisions focused on the issues of large companies. ISO 9001:2000-certification of our research program is evidence of this expertise. This unique distinction states independence and robust methodology for assessing products according to issues and priorities of large companies. The portfolio of valuable software projects SIPP report aimed at IT steering committee Software Investment & Project Planning Each selected business case The project qualified at executive level: benefits, scope, EXECUTIVE vol key requirements, final short-list of valuable solutions, ranking of the solutions The detailed assessment of the project − The shortlist of solutions of interest, the detailed ASSESSMENT vol assessment of each shortlisted solution, our final and selection ASSISTANT ranking of the solutions − The results in Excel format − The business and IT benefits REQUIREMENTS vol − The useful set of requirements The business cases that represent valuable Selected Business Cases investments and lead to pragmatic projects according to issues of interest to executives Continuous monitoring of the marketplace Ongoing monitoring yphise@yphise.com PO BOX 142, Southbury, CT 06488 - USA T 1 203-405-2549 - F 1 203-405-2569 6 rue Beaubourg - F-75004 PARIS T (33) 1 44 59 93 00 - F (33) 1 44 59 93 09 This report is produced and edited by Yphise. Yphise is an independent analysis company. Yphise cannot be held responsible for the use made of the opinions and results provided. No part of this document may be reproduced or transmitted in any form or by any means, without the express written consent of Yphise. © Yphise. December 2008.
  3. 3. ABSTRACT We are pleased to provide you with our opinion on the Strategy Management business case. Our research demonstrates that the Strategy Management business case represents a priority investment. Executives can invest in all confidence because this business case leads to concrete projects with strong benefits, accurate scope and valuable software solutions, backed by the commitment of vendors and by useful strengths. Consequently, we select the Strategy Management business case in the Yphise portfolio of valuable projects that executives should consider when making investment decisions. The Strategy Management business case is essential for all companies in any activity sector. Each company or business line must be successful in conducting continuous transformation in order to survive. Conducting strategies is always a difficult challenge because it is extremely difficult in real life to stand back from operational pressure. Strategy Management solutions are an essential foundation for effective management of business strategies. This business case is selected in the Yphise portfolio of project opportunities for the second time. We increase our commitment to Strategy Management solutions because they are aligned on the challenging demand for change in any company or business line. We put forth this investment recommendation based on our independent ongoing research. We remind you that, since 1985, this independent research has been continuously monitoring the strategies and solutions of all successful software vendors in order to select high-priority projects for improving the business performance. This research is ISO 9001:2000-certified (since 1999). This unique distinction is evidence of independence and robust methodology for assessing software solutions according to issues and priorities of large companies. We were very pleased to closely work with the experts of each shortlisted vendor during this research. We are sure that you will be excited by this investment opportunity and by launching the corresponding project. Yphise research team December 2008 3 © Yphise
  4. 4. BENEFITS Strategy Management solutions help assess company overall performance. They help drive business objectives, whether financial or nonfinancial (e.g. customer satisfaction, risks), tangible or intangible (e.g. brand, customer capital, human capital). Strategy Management solutions help define business objectives and associated indicators. They provide population, reporting functions and dashboards to effectively monitor these indicators. They offer analytical and predictive functions in order to anticipate changes and trends. Strategy Management solutions also help manage the operational strategies associated with objectives. Strategies include all actions to be implemented in order to meet the objectives (action plans, budgets and resources management, collaboration). They facilitate and promote objectives and strategies management over time, whether in the short, medium or long term. Benefits for the business Our research demonstrates that Strategy Management solutions are a key investment for all companies in any activity sector. Each company and business line must be successful in conducting continuous transformation in order to survive. Conducting strategies is always a difficult challenge because it is extremely difficult in real life to stand back from operational pressure. Effective conducting of strategies requires intelligent use of Strategy Management solutions. Strategies are conducted at any level in a company, from departments to business lines and to the overall company. They can combine preservation, improvement and disruption objectives. Consistent management of strategies throughout the company requires effective Strategy Management solutions. Successful achievement of business transformation and objectives Business lines need to be very successful in attaining their objectives, at any level. These objectives are not only quantified or financial (e.g. revenues, productivity) but can also be qualitative or intangible targets (e.g. quality of service delivered to customers, innovation, risks). The business lines need dedicated solutions in order to easily manage and monitor indicators related to their overall targets. Business lines also need more than just indicators and dashboards in order to meet their objectives. They need to successfully conduct the associated strategies. It is therefore essential to define relationships between high-level objectives and operational actions (e.g. budgets, resources, action plans) in order to achieve the goals. 4 ©Yphise
  5. 5. Finally, a strategy can be short-, medium or long-term. Business lines need to anticipate, simulate and analyze their strategies in progress. It is essential to provide simulation or analytical functions in order to assess the strategies. Strategy Management solutions address these issues. They help define and drive indicators, whether tangible or intangible. They provide operational management functions in order to conduct and monitor the strategies. They facilitate strategy management over time via trend analysis, simulation or advanced analytical functions. Successful business involvement in achieving the objectives A key challenge in strategy management is to involve the useful stakeholders, from executives to employees, including middle management and experts. Each business line and department has to understand the overall strategy and its contribution. People need clear understanding of their individual responsibility. This is extremely difficult to achieve. Strategy Management solutions help involve and challenge the various stakeholders over time. Strategy Management solutions give visibility on the strategies. They help individual collaborators understand their objectives, contributions and deadlines. They also enable adequate communication and collaboration in order to challenge collaborators and help team building. They are essential for guaranteeing adequate involvement and motivation of individual stakeholders. 5 ©Yphise
  6. 6. Benefits for the IT processes The main benefits Effectiveness for the IT processes E Architecture . s s e n Data Publishing . t i a l Maintenance . Security . U s e f u l Productivity Useful Essential Benefits for the IT processes Architecture The architecture process guarantees that the information system is in line with requirements of the business lines, in terms of operations or strategies. It manages the flexibility of the operational or decisional systems in order to sustain this alignment over time. Strategy Management solutions are essential in order to ensure flexibility in systems aimed at assessing, conducting and controlling the strategies. They are effective platforms that include useful functions in order to define or change strategies. They enable easy definition and population of indicators from multiple and heterogeneous data sources (including structured and unstructured data). They provide comprehensive and integrated functions for helping collaboration between all stakeholders, for planning and monitoring the actions in order to meet the objectives and for defining adequate dashboard. Data publishing The data publishing process manages the useful propagation of data from operational to business intelligence or collaborative systems and within these systems (e.g. from a data warehouse to specialized datamarts). Strategy Management solutions are essential for managing unified dashboards for a strategy. They are effective platforms for building the indicators that integrate 6 ©Yphise
  7. 7. information from multiple data sources. They provide out-of-the box features for managing the processes from data extraction on heterogeneous data sources to building the useful indicators. They help guarantee consistency of these indicators by providing accurate understanding and monitoring of the data used to build the indicators. Maintenance The maintenance process conducts scope-limited changes. These changes must bring added value to the business, quickly and at low cost. A key challenge of maintenance is the guarantee of non-regression of existing systems when budgets and time frames are tight. Strategy Management solutions avoid many maintenance tasks by the IT teams. They provide business users with effective features in order to define or change strategies. They can define indicators or dashboards according to their needs. Strategy Management solutions are also effective platforms for securing the changes that require intervention by IT Teams. They ensure flexibility and consistency in defining and operating the processes that build the indicators. Security The security process guarantees the meeting of confidentiality objectives and the providing of robustness against fraud. Strategy Management solutions provide accurate management of confidentiality issues pertaining to strategies. They manage the useful security policies and the access control to data. They define and control the authorization required to access the indicators and to drill down to detailed information. Strategy Management solutions also control and track the changes made to data by the users. 7 ©Yphise
  8. 8. YPHISE SHORTLIST Positioning of the market segment The evaluated market segment is a specific one, with a precise positioning and list of solutions. To avoid confusion, we differentiate it from the following list of market segments. A solution belonging to one of these market segments is inappropriate for attaining the expected benefits. Investment and Project Portfolio Management (IPPM) solutions IPPM solutions help prioritize, plan and monitor the various projects of a portfolio. They manage requests from the business lines. They facilitate effective qualification of these requests. They help build consistent projects and portfolios of projects. They allocate the resources to each project and monitor their use. Strategy Management solutions focus on defining and managing the strategies. IPPM solutions focus on selecting and conducting the projects and on managing the resources allocated to the various projects of a portfolio. The actions defined by a strategy are sometimes projects that should be managed by using IPPM solutions. However, most actions needed in order to meet objectives are not projects requiring IPPM solutions. Strategy Management solutions are effective platforms for defining and managing the strategies. Strategy Management and IPPM solutions are complementary and distinct. E.g. Changepoint (Compuware), Clarity (CA), Planview Portfolio Management (Planview) and Rational Portfolio Manager (IBM). Data Integration Services (DIS) solutions DIS solutions manage information manufacturing processes. They drive operational access to information built through aggregation, computing and reconciliation from various heterogeneous distributed data sources. They are key middleware to ensure effective and reliable access to consistent, cleansed, valuable data within operational business processes. DIS solutions bring the right data to the right applications at the right time. They are used for building operational systems based on service-oriented architecture (SOA). They can also be used in front of Strategy Management solutions for providing them with data. Strategy Management solutions help define and manage business strategies, while DIS solutions are technical middleware used by IT experts. Strategy Management and DIS solutions are complementary and distinct. E.g. Business Objects Data Services (SAP), IBM Information Server (IBM) and SAS Dataflux (Dataflux). 8 ©Yphise
  9. 9. This business case is included in the Yphise portfolio of project opportunities (August 2008). Integrated risk management and control (IRMC) solutions IRMC solutions help understand and manage operational risks. They provide tools for identifying, describing, quantifying and assessing the risks. They help define and manage action plans in order to implement consistent risk response. They track and monitor the advancement of action plans. IRMC solutions help define the control activities required to mitigate the risks. IRMC solutions are dedicated to risk management and especially internal controls, while Strategy Management solutions focus on managing all the objectives and business issues of a company. Risk or compliance issues may be included in the objectives in order to manage and monitor by means of Strategy Management solutions. However, Strategy Management solutions are not aimed at accurately managing the risks and internal controls. The two solutions are distinct and complementary. E.g. Aris Governance, Risk & Compliance Management (IDS Scheer), BWise GRC solution (BWise) and Mega GRC Suite (Mega). Business Activity Monitoring (BAM) solutions BAM solutions monitor how the business runs. They provide business users with real- time intelligence on business risks and opportunities. They alert the appropriate stakeholders of any dysfunction or unusual situation. They deliver the information required to drive the business and make appropriate and consistent decisions for the business. They highlight the actual business situation and the expected trend based on information collected from the applications or any other sources. BAM solutions focus on operational and real-time control of business activities. Strategy Management solutions help define and conduct strategies that change the business activities in order to meet preservation, improvement or disruption objectives. Strategy Management and BAM solutions are distinct. E.g. BusinessBridge (Systar), Websphere Business Monitor (IBM), webMethods Optimize (Software AG) and Tibco Business Factors (Tibco). Business intelligence (BI) solutions BI solutions help managers, business operators or analysts monitor and understand business activity for the purpose of decision making. They focus on providing user- friendly functions for querying and reporting the data in datamarts, data warehouses or operational databases. BI solutions help prepare reports and define dashboards, while Strategy Management solutions help define and conduct strategies. BI solutions are used for accurate understanding of business activities in order to define new objectives. Strategy 9 ©Yphise
  10. 10. Management solutions are then used to plan the useful strategy associated with the objectives and to monitor its implementation. Strategy Management and BI solutions are complementary and distinct. E.g. BusinessObjects (BusinessObjects), Cognos BI (Cognos), Hyperion BI+ (Oracle) and SAS Business Intelligence (SAS Institute). Operational predictive analysis (OPA) solutions OPA solutions manage real-time predictive analysis within applications in order to support decision making. Predictive analysis forecasts and identifies outcomes based on history and on past complex and uncertain behaviors. Predictive analysis is based on analytical models. OPA solutions help accurately define and deploy analytical models according to business needs. OPA solutions are aimed at embedding predictive analysis functions in operational systems. They help optimize operational decisions within defined business processes, while Strategy Management solutions manage strategies in order to improve processes or invent new ones. Strategy Management and OPA solutions are distinct. E.g. KXEN Data Mining Automation Solution (KXEN), SAS Analytics (SAS) and SPSS Predictive Enterprise Services platform (SPSS). This business case is included in the Yphise portfolio of project opportunities (June 2008). Text Mining (TM) solutions TM solutions help discover and extract information from text sources. They provide algorithms, models or other mathematical techniques for discovering significant patterns within huge and heterogeneous sources of data. TM solutions do not define or manage strategies. However, Strategy Management solutions need text-mining features in order to manage strategies related to intangible objectives. Strategy Management and TM solutions are complementary. E.g. Statistica (StatSoft), Model Builder (Fair Isaac), SAS Enterprise Miner (SAS) and Clementine (SPSS). The short list for the evaluated business case Strategy Management solutions are an essential foundation for managing the business strategies. All companies need an effective platform for easy definition and implementation of strategies at any level, from departments to business lines and throughout the company. This business case is selected in the Yphise portfolio of project opportunities for the second time. The first time was in early of 2007. We increase our commitment to 10 ©Yphise
  11. 11. Strategy Management solutions because all companies have a tremendous need of ongoing business transformation in order to survive. In the past, the solutions focused on managing the strategies related to financial objectives. All companies also face difficult challenges related to nonfinancial or intangible issues. They need to respond to a wide diversity of risks and opportunities. Strategy Management solutions are aligned on the challenging demand for change in any company and business line. Strategy Management solutions populate, manage and monitor any kind of objectives. A key challenge is to retrieve and present information from various data sources (e.g. business applications such as risk management solutions, nonstructured data from call centers or customer emails). Strategy Management solutions manage and retrieve information from several sources in order to provide a unified and up-to-date view of company performance. Another challenge is to support operational management of strategies. These strategies evolve over time according to the attained performance on the objectives. Strategy Management solutions help define, analyze and reassess the strategies over time. A limited short list of software vendors can meet these demanding issues. The shortlisted solutions contribute to the definition, communication and monitoring of objectives and operational strategies. They include data integration and population functions. The ISO 9001:2000 certification of our process is evidence of independence and robust methodology for assessing software solutions according to issues and priorities of large companies. All shortlisted vendors demonstrate their commitment to responding to the requirements of this process. This process challenges them, as in a customer situation. It is evidence of the vendors' commitment to responding to a demanding independent assessment. Our final short list is as follows: − Cognos Metric Studio (IBM/Cognos) ; − Microsoft Office PerformancePoint Server (Microsoft); − SAS Strategic Performance Management — SPM (SAS); and − SAP Strategy Management — SSM (SAP). Cognos Metric Studio (IBM/Cognos), Version 8.4 Cognos specializes in business intelligence (BI) and corporate performance management (CPM). The company provides a unified platform, Cognos 8 Business Intelligence. This platform includes various capabilities in BI (reporting, dashboarding, analysis and metrics management, event management or data management) and CPM (scorecarding, planning, budgeting, forecasting or financial consolidation). The Cognos Business Intelligence platform includes several modules that meet our list of requirements, especially Cognos Metric Studio for objectives and metrics management. The vendor also provides Cognos Planning (financial planning, 11 ©Yphise
  12. 12. consolidation, budgeting, scorecarding, dashboarding) and Cognos Report Studio (analysis, reporting). Release 8.4 was launched in October 2008. Microsoft Office PerformancePoint Server (Microsoft), Version 1 Microsoft software product lines include operating systems, server applications, business applications, high performance computing applications and software development tools. The business applications include business intelligence (BI) solutions, based on Microsoft SQL Server. Microsoft focuses on three main BI domains: predictive analysis and data mining, master data management, and performance management. The Microsoft Office PerformancePoint Server is the Microsoft performance management solution. It includes three modules: Monitoring (dashboards and scorecards), Analytics (data analysis) and Planning (forecasting and planning). Version 1 of MS Office PerformancePoint Server relies on Office 2007. The solution was launched in October 2007. A new release is announced for late 2009. SAS Strategic Performance Management — SPM (SAS), Version 2.4 SAS focuses on the business intelligence market segment with its SAS Enterprise Intelligence Platform. Part of this solution is the SAS Financial Intelligence solution. SAS Financial Intelligence includes three solutions: SAS Strategic Performance Management (strategy management, improvement, monitoring), SAS Financial Management Solution (planning and financial reporting) and SAS Activity-Based Management. All the solutions are independent and complementary. The SAS Strategic Performance Management (SPM) solution relies on the SAS Enterprise Intelligence Platform (Version 9.1.4). It includes three levels and tools: monitoring (SAS Information Delivery Portal), modeling (SAS SPM) and population (SAS Data Integration Server). The solution was launched in September 2008. A new release is announced for late 2009 (with 9.2 release). SAP Strategy Management — SSM (SAP), Version 7.0 SAP is a worldwide business software company. The vendor provides enterprise applications and business solutions to meet operational needs for enterprise management. The business solutions include four lines: EPM (Enterprise Performance Management), GRC (Governance, Risk & Compliance), IM (Information Management) and IDD (Information Discovery & Delivery). The SSM solution is part of the EPM line. EPM includes four objectives: strategy management (SSM solution, formerly Pilot software), business planning (SAP BPC, formerly Outlooksoft), consolidations (SAP BPC, formerly Cartesis), as well as profitability and cost management (SAP PCM, formerly ALG). The vendor’s objective is to improve integration of its various products and integration of SAP Netweaver and Business Objects BI Integration. The current version of SSM was released in October 2008. 12 ©Yphise
  13. 13. Oracle provides a performance management solution, from its Hyperion acquisition. However, vendor commitment is not clear on the strategy management business case. The vendor provides financial solutions and facilitates financial objectives management but does not demonstrate a commitment to managing all performance objectives, financial or nonfinancial, tangible or intangible. Planview provides a solution called EPM (Enterprise Portfolio Management). The vendor supports definition and management of objectives and operational strategies. However, it does not include functions in order to comprehensively define, populate and monitor indicators related to these objectives over time. The solution does not currently cover the full scope of our requirements. 13 ©Yphise
  14. 14. YPHISE RANKING SAS Strategic Performance Management 1. FACILITATING THE INDICATOR DEFINITION ACCORDING TO BUSINESS OBJECTIVES 4. CONTROLLING AND IMPROVING THE 2. IMPROVING THE OPERATIONAL STRATEGY BUSINESS PERFORMANCE MANAGEMENT RELATED TO THE OBJECTIVES 3. MONITORING THE BUSINESS PERFORMANCE OVER TIME SAS SPM Worst evaluation Average evaluation Best evaluation SAP Strategy Management 1. FACILITATING THE INDICATOR DEFINITION ACCORDING TO BUSINESS OBJECTIVES 4. CONTROLLING AND IMPROVING THE 2. IMPROVING THE OPERATIONAL STRATEGY BUSINESS PERFORMANCE MANAGEMENT RELATED TO THE OBJECTIVES 3. MONITORING THE BUSINESS PERFORMANCE OVER TIME SAP Strategy Management Worst evaluation Average evaluation Best evaluation 14 ©Yphise
  15. 15. Microsoft Office PPS 1. FACILITATING THE INDICATOR DEFINITION ACCORDING TO BUSINESS OBJECTIVES 4. CONTROLLING AND IMPROVING THE 2. IMPROVING THE OPERATIONAL STRATEGY BUSINESS PERFORMANCE MANAGEMENT RELATED TO THE OBJECTIVES 3. MONITORING THE BUSINESS PERFORMANCE OVER TIME Microsoft Office PPS Worst evaluation Average evaluation Best evaluation Cognos Metric Studio 1. FACILITATING THE INDICATOR DEFINITION ACCORDING TO BUSINESS OBJECTIVES 4. CONTROLLING AND IMPROVING THE 2. IMPROVING THE OPERATIONAL STRATEGY BUSINESS PERFORMANCE MANAGEMENT RELATED TO THE OBJECTIVES 3. MONITORING THE BUSINESS PERFORMANCE OVER TIME Cognos Metric Studio Worst evaluation Average evaluation Best evaluation The above charts are presented in order of final top-down ranking of the shortlisted solutions after their in-depth ISO 9001:2000-certified assessment by Yphise. The four assessment dimensions show the expected benefits by large companies. They aggregate more than 160 functional or technical control items. This list of requirements is 15 ©Yphise
  16. 16. practical, in order to evaluate the capacity of the solutions to provide an adequate return on investment. It is also proactive in order to appreciate the upcoming perspectives. Assessment dimensions 1. Facilitating the indicator definition according to business objectives Companies must define their objectives and adequate associated indicators according to their needs. It is essential to provide the business with easy-to-use functions in order to create the indicators. Predefined elements can be provided to accelerate deployment (e.g. predefined objectives or indicators to manage risks or compliance issues). 2. Improving the operational strategy management related to objectives To achieve the objectives, operational management of strategies is essential. This includes the definition of deadlines, priority and costs associated with objectives. It also involves the definition and assignment of action plans. Collaboration between the involved stakeholders is essential in order to challenge them and to attain the objectives. 3. Monitoring the business performance over time Reliable and up-to-date information is required to improve decision making. The population and update of indicators is a crucial element in order to achieve the expected benefits of this business case. It is essential to provide comprehensive functions in order to populate the indicators from various data sources and data formats, structured or nonstructured. The ability to manage the evolution of strategies over time is also important. 4. Controlling and improving the business performance The monitoring of business performance is facilitated by efficient and comprehensive performance dashboards. This includes portlet management, easy customization, collaborative functions or advanced graphical views (e.g. strategy maps). Business performance can be improved by using analytical, predictive and simulation functions. The REQUIREMENTS volume provides the detailed requirements. Comments The detailed assessment of the shortlisted solutions demonstrates that the best ones have the strengths that would be useful for large companies and would represent a valuable investment. The assessment results demonstrate that the shortlisted solutions are valuable. However, there are significant differences among the solutions in the coverage of the different assessment dimensions. We remind you that building a Proof of Concept in the targeted technical environment and for the expected value-added benefits remains a requirement. 16 ©Yphise
  17. 17. Strategic Performance Management (SAS) provides the best coverage of our list of requirements. The solution stands out in each of the four dimensions. SAS SPM also ranked first in our 2007 SPM software assessment. This highlights its maturity and suitability for investing in this business case. The vendor demonstrates its commitment to integrating nonfinancial and intangible objectives into enterprise performance management. SAS SPM provides an easy-to- use and easy-to-customize strategy management model that helps manage any kind of objectives. SAS also provides predefined templates according to compliance issues, risks, vertical sectors or business departments; these accelerate strategy definition. Finally, the solution demonstrates strengths in managing operational actions related to objectives and in easily populating the indicators, manually or automatically. The dashboards and analytical functions provided and announced in the next release demonstrate an interest in investing in this solution. Strategy Management (SAP) demonstrates comprehensive coverage of our list of requirements. For our last report, we assessed the BO solutions for strategic performance management. The new SAP solution, from the Pilot software acquisition, demonstrates better strengths for this business case. In particular, the solution provides efficient dashboards and graphical views that can be easily customized to user needs. It also provides comprehensive initiatives management functions in order to drive operational actions related to objectives. The solution can be used usefully by SAP customers, as the vendor provides standard integration into its other products. The solution can also be used by non-SAP customers. The vendor has developed a strong and interesting integration into its GRC (Governance Risk Compliance) solution in order to facilitate the management and monitoring of objectives related to risk management. Office PerformancePoint Server (Microsoft) demonstrates advanced capabilities in our four assessment dimensions. It includes the functions required to meet the main needs for this business case. The product provides an easy-to-use and user-friendly solution. Several wizards and assistants are provided out-of-the-box, and the definition of elements can be done easily, via drag-and-drop and a dropdown list. The solution also provides useful integration into other Microsoft solutions, such as MS Office, MS Sharepoint or MS SQL Server. Via these solutions, the vendor can provide dashboards, collaborative and operational functions. Cognos Metric Studio (IBM) demonstrates good coverage of our list of requirements. The solution has not really evolved since our last report. Metric Studio can be a useful investment for Cognos customers and a header of the Cognos financial solutions. 17 ©Yphise
  18. 18. The solution provides efficient dashboards and reporting functions thanks to its business intelligence capabilities. In particular, it focuses on financial management with specific plan, budget or analysis functions. 18 ©Yphise
  19. 19. 1. FACILITATING THE INDICATOR DEFINITION ACCORDING TO BUSINESS OBJECTIVES ds nee s nes usi ob t ng ves rdi ct i cco bje sa oo ive dt ect late obj s re he tor yt i ca t el ind ura acc the ing ing fin fin De De SAS SPM SAP Strategy Management Cognos Metric Studio Microsoft Office PPS ©Yphise Sorted Aggregated Table
  20. 20. 1. FACILITATING THE INDICATOR DEFINITION ACCORDING TO BUSINESS OBJECTIVES 1.1. Defining accurately the objectives according to business needs. All the shortlisted solutions provide functions in order to define objectives and related indicators in a tree structure. However, they do not all distinctively manage objectives and indicators. They also differ in the functions provided to customize objectives and in the templates provided out-of-the-box. 1.2. Defining the indicators related to objectives. Despite significant differences, all the vendors help define advanced (e.g. composite) indicators, and they all support threshold or alert management. There are some differences in the comprehensiveness of the functions provided and in the ease to define indicators. Strategic Performance Management (SAS) demonstrates high coverage of the two assessment dimensions, because it provides efficient functions in order to define strategies, objectives and indicators. The vendor provides several out-of-box templates with predefined contents and indicators for operational directions (IT scorecard, HR scorecard, marketing, finance), sectors (banking, insurance, telco, retail, hospital, health care) or compliance issues (Basel II, SOX, LOLF, ITIL, Sustainability scorecard/GRI, Six Sigma, Solvency II). Its advanced customization functions help manage any kind of objectives and properties. The solution also supports complete and easy-to-use business rules and formulas in order to define indicators. It efficiently manages the thresholds related to indicators. Strategy Management (SAP) especially demonstrates good coverage in “Defining accurately the objectives according to business needs”, as it provides comprehensive functions for defining the objectives, perspectives and KPIs. The perspectives (e.g. international, activity sectors) can be used to classify the objectives by means of a matrix. The solution also demonstrates advanced functions for managing the objectives related to the risks. SAP provides a risk management solution, SAP GRC. SSM can be linked to risk maps obtained from SAP GRC data. Office PerformancePoint Server (Microsoft) demonstrates good coverage of the two assessment dimensions. The strategy and objectives management is not packaged out-of-the-box, but the solution is flexible and offers an easy-to-customize model to define KPIs that can be objectives. The vendor provides predefined models for the telco and communication sectors. Cognos Metric Studio (IBM) demonstrates good coverage in “Defining accurately the objectives according to business needs”, as it provides the essential functions for defining the objectives and the associated indicators. The solution relies on Cognos Datawarehouse, and the indicators are built from the data managed in that data warehouse. 20 ©Yphise
  21. 21. 2. IMPROVING THE OPERATIONAL STRATEGY MANAGEMENT RELATED TO THE OBJECTIVES rs use ss ine bus of ncy i ci e ef f y teg and stra ion nal t ora tio lab a per col o the he gt g vin gin pro na Ma Im SAS SPM SAP Strategy Management Cognos Metric Studio Microsoft Office PPS ©Yphise Sorted Aggregated Table
  22. 22. 2. IMPROVING THE OPERATIONAL STRATEGY MANAGEMENT RELATED TO OBJECTIVES 2.1. Managing the operational strategy. All the shortlisted solutions help manage costs or duration related to objectives. They all help define action plans or initiatives aimed at meeting these objectives. However, they do not provide the same comprehensiveness to define these action plans and to manage them over time. 2.2. Improving the collaboration and efficiency of business users. All the solutions provide the essential functions for meeting the requirements in this dimension: objective assignation, access rights management, e-mail or built-in communication, customized dashboards. Some provide more advanced functions than others. Strategic Performance Management (SAS) ranks high in the two dimensions. The solution helps define comprehensively the duration and costs related to objectives. The solution relies on the SAS Financial Management solution and the SAS Activity-Based Management solution to retrieve cost information. It also supports action plan management via definition of tasks and duration. Collaboration can occur via comprehensive access rights, comments, e-mails and document management. Strategy Management (SAP) demonstrates high coverage of the two assessment dimensions. The solution supports permissions and comments management and includes efficient customized dashboards. In particular, the solution demonstrates advanced capabilities for managing the project and initiatives. A project is a transversal view of several initiatives and objectives. A budget, schedule and targets can be defined for each initiative. This information can be monitored in the dashboards and in a fishbone view. The solution also provides a “prioritization matrix” to display the initiatives according to importance/urgency and progress. SSM is part of a strategy management suite that includes BPC (planning), BFC (consolidation), PCM (costing). In the current version of the suite, the ETL layer can be used to transfer data from one application to another. The vendor announces integration improvements in its next release. Office PerformancePoint Server (Microsoft) provides the essential functions in the two assessment dimensions. The vendor provides MS Sharepoint (included with Windows Server), which can be used for task management or customization of business dashboards. PPS does not support out-of-the-box management of action plans. Cognos Metric Studio (IBM) demonstrates good coverage in “Improving the collaboration and efficiency of business users”, as it provides all the required functions in this dimension. The solution supports access rights or comment management, and it provides two dashboards included in the solution or via its Web portal tool. 22 ©Yphise
  23. 23. 3. MONITORING THE BUSINESS PERFORMANCE OVER TIME ce our as dat nt eva rel an y e tim om v er s fr so tor tor i ca i ca ind ind he he t gt ng gin lati na pu Ma Po SAS SPM Microsoft Office PPS SAP Strategy Management Cognos Metric Studio ©Yphise Sorted Aggregated Table
  24. 24. 3. MONITORING THE BUSINESS PERFORMANCE OVER TIME 3.1. Populating the indicators from any relevant data source. The solutions differ in the functions provided to manually populate the indicators. They also differ in the extraction functions provided. Some solutions rely on a data warehouse to extract business information. It is also possible to retrieve operational data via an ETL or import formats. An upcoming perspective is to be able to retrieve and use nonstructured information in order to build indicators. Some vendors already include text analytics tools. 3.2. Managing the indicators over time. All the solutions help populate the indicators over time via batch or real-time functions. All the vendors include a scheduler to manage the population via batch. They do not all provide capabilities for managing the changes to indicators over time, i.e. via version management, change or impact management functions. Strategic Performance Management (SAS) demonstrates good coverage of the two assessment dimensions and ranks especially high in “Populating the indicators from any relevant data source”. The solution provides comprehensive functions in order to populate the indicators. It includes an ETL, SAS Data Integration Server (DIS), with predefined jobs for its SPM solution. It also provides various import format and connectors with databases and business applications. The vendor provides a text mining solution called SAS Text Miner. The data can be used via the ETL. Finally, the solution helps in easily creating new forms for the entering or data manually via a wizard. Impact analysis functions can be managed via its DIS tool, which helps analysis where data is used in different transformation steps. Analytic functions (like correlation, regression) are available through the SAS Analytics package. In the next release, the vendor announces new functions such as correlation/ regression, what-if analysis and trend analysis functions. Strategy Management (SAP) meets the essential requirements in the two assessment dimensions. The vendor offers a single data warehouse that populates the SSM indicators. It also provides an ETL tool, BO Integrator, which can also be used to populate indicator, and the Text Analytics solution (formerly InXight), which supports semantic analysis. In particular, the SSM solution demonstrates interesting functions for manual populating. The manual entries can be managed via Excel or via a Web form. Monitoring of the data entered manually can be done through a workflow process. Office PerformancePoint Server (Microsoft) ranks especially high in “Managing the indicators over time”, as it supports comprehensive history functions. The solution helps monitor changes over time (date of a change, user, field, old value, new value) and includes “revert change” functions to roll back to an old version. PPS also provides basic impact analysis functions, as it helps identify related indicators, related scorecards and related data sources on an element. 24 ©Yphise
  25. 25. Cognos Metric Studio (IBM) meets the essential requirements in the two assessment dimensions. In particular, the solution provides a standard connection with the Cognos Datawarehouse and Cognos solutions in order to retrieve data. It also demonstrates useful impact functions, as it supports impact diagram management according to relationships between indicators. The relationships must be defined manually or retrieved from the “derived indexes” formulas (i.e. composite indicators). 25 ©Yphise
  26. 26. 4. CONTROLLING AND IMPROVING THE BUSINESS PERFORMANCE ons s ar d cti hbo fun das s ysi t nal ien a ffi c he e t ing ing vid vid Pro Pro SAS SPM SAP Strategy Management Cognos Metric Studio Microsoft Office PPS ©Yphise Sorted Aggregated Table
  27. 27. 4. CONTROLLING AND IMPROVING THE BUSINESS PERFORMANCE 4.1. Providing efficient dashboards. All the solutions provide customized dashboards and monitoring functions in order to control enterprise performance. They all include graphical view and strategy maps to identify easily the relationships between indicators and objectives and progress. They differ in the comprehensiveness of the provided functions. 4.2. Providing the analysis functions. All the solutions help monitor over time the objectives via target and trend management. They all include reporting functions in the solution or with a third-party tool. They do not all offer advanced analytic functions (such as predictive analysis or simulation) in order to assess changes in performance. Strategic Performance Management (SAS) demonstrates high coverage of the two assessment dimensions. The solution provides comprehensive and easy-to-customize dashboards. The vendor provides advanced reporting functions. Some reports are predefined and can be customized according to business needs. The dashboards include some collaborative functions via advanced comment management; they also include dynamic strategy maps that can be automatically updated or used to define relationships between any elements. SAS also demonstrates commitment to providing analytic functions in the next release (what-if, predictive, impact analysis management) and already supports integration into its SAS Analytics platform. Strategy Management (SAP) demonstrates good coverage of the two assessment dimensions. It provides efficient and easy-to-use dashboards that can be customized for each user (e.g. “my bookmarks”, “my performance summary”). SSM also includes a comprehensive graphical editor (Diagram Manager) to define strategy maps and layouts. Reporting is managed via a third-party tool, Xcelsius or Crystal report. The vendor also demonstrates interesting capabilities for analysis, via its KPI comparison functions and relationships management. The objectives themselves are linked on a cause/effect cascade that allows representation of the impact on one another. Office PerformancePoint Server (Microsoft) provides the required functions in the two assessment dimensions. The dashboards are provided with the Monitoring tool (included in the PPS solution) or via MS Sharepoint. PPS demonstrates analytic functions via its SQL Server solution and also provides a “trend analysis chart” that can provide forecast trend. This component will evolve in the next releases. Cognos Metric Studio (IBM) demonstrates good coverage of the two assessment dimensions. In particular, it demonstrates good collaborative functions via its Cognos Portal solution and efficient reporting functions via third-party tools. Business forums, workflows or comments management are supported and help manage actions according to indicator results. The ASSESSMENT volume provides the detailed assessment of each shortlisted solution. 27 ©Yphise

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