For Business Process & Applications Professionals


               October 10, 2007
              SAS Institute Has Arrive...
SAS Institute Has Arrived As A Leader In Business Performance Solutions                                                   ...
SAS Institute Has Arrived As A Leader In Business Performance Solutions                                                   ...
SAS Institute Has Arrived As A Leader In Business Performance Solutions                                                 4
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SAS Institute Has Arrived As A Leader In Business Performance Solutions                                                   ...
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SAS Institute Has Arrived As A Leader In Business Performance Solutions The Forrester Wave™ Vendor Summary, Q4 2007, October 2007

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Focus on predicting the future. SAS Institute has a leading capability in predictive analytics that can be leveraged to develop sophisticated forecasting processes and scenario-based planning. This capability complements a well-rounded and well-integrated set of business performance solutions.

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SAS Institute Has Arrived As A Leader In Business Performance Solutions The Forrester Wave™ Vendor Summary, Q4 2007, October 2007

  1. 1. For Business Process & Applications Professionals October 10, 2007 SAS Institute Has Arrived As A Leader In Business Performance Solutions The Forrester Wave™ Vendor Summary, Q4 2007 by Paul D. Hamerman with Sharyn Leaver, Elisse Gaynor, and Meghan Donnelly EXECUT I V E S U M MA RY Not a prominent player in business performance solutions (BPS) in the past, SAS Institute has, somewhat surprisingly, made a great deal of progress lately with a renewed focus on performance management applications. It now has a solid set of BPS offerings that are well integrated on its business intelligence (BI) platform, with particular depth in predictive analytic forecasting, cost and profitability management, and industry-specific solutions. Although SAS Institute’s performance management products are well integrated on a scalable platform, usability remains an area for improvement. SAS IS BEST SUITED FOR FORWARD-LOOKING COMPANIES SAS Institute is a privately-held, $2 billion business intelligence vendor headquartered in Cary, North Carolina. In 2002, SAS Institute acquired ABC Technologies, a leading cost and profitability solution. Rather than continue down a path of acquisitions of business performance capabilities, however, SAS has elected to build its product suite using native technologies. Although it has taken several years to complete the development of a cohesive set of BPS offerings, SAS Institute has accomplished its goal and ranks among the leaders in this category. Forrester evaluated SAS Institute’s current offering and strategy for BPS against 83 criteria (see Figure 1). The SAS Institute performance management product set has strong forecasting and cost and profitability management capabilities on a solid BI foundation, but needs to improve overall usability. This means that the product is an especially good fit for buyers that: · Focus on predicting the future. SAS Institute has a leading capability in predictive analytics that can be leveraged to develop sophisticated forecasting processes and scenario-based planning. This capability complements a well-rounded and well-integrated set of business performance solutions. · Require scalable, industry-specific performance solutions. Large enterprises in certain industries including banking, insurance, retail, manufacturing, and telecommunications can leverage industry- specific analytic solutions as well as the overall strength of the SAS Institute business intelligence platform. To see how SAS Institute stacks up against nine other competitors, see the Forrester Wave™ evaluation of the BPS market.1 Headquarters Forrester Research, Inc., 400 Technology Square, Cambridge, MA 02139 USA Tel: +1 617.613.6000 • Fax: +1 617.613.5000 • www.forrester.com
  2. 2. SAS Institute Has Arrived As A Leader In Business Performance Solutions 2 For Business Process & Applications Professionals Figure 1 SAS Institute Evaluation Overview CURRENT OFFERING Planning and budgeting SAS Institute has good modeling structure support and flexibility, predefined functional models, and a particular strength in predictive planning and forecasting. Financial consolidations and SAS Institute has a well-supported statutory global consolidations capability reporting and very good tools for GL data integration and controls; no significant gaps. Strategy and performance SAS Institute has highly functional scorecards and dashboards, an extensive library of KPIs, and good support of strategy frameworks, but the graphical elements are not so compelling. Cost and profitability SAS Institute excels in this area with both activity-based costing and analysis profitability management applications. Functional and SAS Institute offers good functional and industry-specific performance analytics industry-specific solutions. performance management Business intelligence (BI) SAS Institute has strong support for multidimensional BI platforms, data foundation integration, and portals. Reporting tools are powerful, but may be difficult to work with for nontechnical users. Technology characteristics SAS Institute has highly scalable BI and BPS solutions and a high degree of design flexibility, but usability is not a strong suit. Hosting and outsourcing SAS Institute does not offer hosting for its Performance Management applications, but all products are sold on a subscription basis (a prerequisite for SaaS). Customer support SAS Institute has a good upgrade program, and maintenance is provided as part of the subscription. Customer references were good overall, but somewhat inconsistent. Source: Forrester Research, Inc. © 2007, Forrester Research, Inc. Reproduction Prohibited October 10, 2007
  3. 3. SAS Institute Has Arrived As A Leader In Business Performance Solutions 3 For Business Process & Applications Professionals Figure 1 SAS Institute Evaluation Overview (Cont.) STRATEGY Product strategy and vision SAS Institute has a comprehensive vision for Performance Management with a differentiated approach for predictive insights. It has extensive thought leadership programs and content, broad BPS product capabilities, and a well-integrated offering that focuses on large enterprises. Technology strategy and ”The SAS Institute technology strategy focuses on four cornerstones: scalability, vision interoperability, manageability, and usability. SAS Institute uses an open metadata architecture to construct all offerings and sits on external ‘standards’ committees to keep up to date and influence direction. A key focus is to provide uniform access to structured and unstructured information across the enterprise with advanced analytics embedded into the reporting layer. Our common solutions layer wraps process management around these capabilities to ensure consistency/optimal flow. We continually focus on performance — developing and optimizing new procedures that introduce major speed gains.” R&D/product development In 2006, 24% of SAS Institutes’s revenue was reinvested in research and development. Historically, the percentage reinvested in research and development ranges between 24% and 36%. Strategic alliances SAS Institute has strong partnering programs in place for services and platforms, but it doesn’t focus much effort on complementary applications partners. MARKET PRESENCE Financial viability SAS Institute is a $2 billion private software vendor, which Forrester believes is in very sound financial condition. Installed base SAS Institute has less adoption of the financial BPS applications (more than 300) than several competitors, but it has more substantial use of the strategy and measurement as well as costing products. Delivery footprint SAS Institute has 400 sales and distribution locations and 3,500 company and partner implementation resources. Source: Forrester Research, Inc. Go online to download additional in-depth data and scores for this vendor and other vendors included in this Forrester Wave evaluation. © 2007, Forrester Research, Inc. Reproduction Prohibited October 10, 2007
  4. 4. SAS Institute Has Arrived As A Leader In Business Performance Solutions 4 For Business Process & Applications Professionals SUPPLEMENTAL MATERIAL Online Resource The underlying spreadsheet for Figure 1 is available online. The spreadsheet includes more detailed data and scores for this vendor. This detailed data and scores for this vendor are also available online through an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don’t fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. We set default weightings to reflect our analysis of the needs of large user companies — and/or other scenarios as outlined in the Forrester Wave document — and then score the vendors based on a clearly defined scale. These default weightings are intended only as a starting point, and readers are encouraged to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. ENDNOTES Forrester assessed 10 leading business performance solutions (BPS) vendors across 83 criteria in a product 1 evaluation. Cognos, Oracle, and SAS Institute were found to lead the category with overall breadth of functionality and aggressive strategies for competing in this rapidly evolving market. Business Objects and SAP both showed strong solution functionality, but have considerable work ahead to integrate recent pure-play acquisitions into more seamless BPS offerings. Clarity Systems leads the BPS pure plays with a very strong planning and budgeting solution. Applix and Longview Solutions, though lacking as much out-of-the-box functionality and scorecarding capabilities as the large vendors, made solid Strong Performer showings as well based on their flexibility to handle unique customer requirements. Infor is also © 2007, Forrester Research, Inc. Reproduction Prohibited October 10, 2007
  5. 5. SAS Institute Has Arrived As A Leader In Business Performance Solutions 5 For Business Process & Applications Professionals a Strong Performer with a mature BPS suite, but needs a more aggressive strategy for competing outside of its enterprise resource planning (ERP) installed base. Microsoft’s initial release of Microsoft Office PerformancePoint Server 2007 in September puts it in the mix as a Strong Performer with an assertive vision and a solid technology foundation, but the solution needs to mature in terms of breadth and depth of functionality. See the October 10, 2007, “The Forrester Wave™: Business Performance Solutions, Q4 2007” report. Forrester Research, Inc. (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. For more than 24 years, Forrester has been making leaders successful every day through its proprietary research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com. © 2007, Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please email resourcecenter@forrester.com. 43447

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