This document discusses performance management and business analytics. It includes: - A maturity model showing four steps of performance management maturity from reacting to orchestrating. - Charts and data from surveys on the amount of useless information managers receive, time wasted searching for information, and accidentally using wrong information. - Descriptions of what is needed for effective performance management including an enterprise platform, consistent information access, and best practice solutions. - An overview of how Cognos and IBM solutions address business analytics needs like financial, customer, and supply chain optimization.

1. Business Insight
and
Predictive Analysis
Dorian Hodorogea (dorian.hodorogea@ro.ibm.com)
Business Analytics and Optimization Presales
1 © 2011 IBM Corporation

2. Amount of information managers
receive that has no value
0-30% 30-50% Over 50%
Source: Accenture survey released January 4, 2007
2 © 2011 IBM Corporation

3. Amount of information managers
receive that has no value
0-30% 30-50% Over 50%
Source: Accenture survey released January 4, 2007
3 © 2011 IBM Corporation

4. How much time do managers waste
each day, searching for information?
0-30 min 1-3 Hours Over 3 Hours
Source: Accenture survey released January 4, 2007
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5. Time managers waste each day
searching for information
0-30 min 1-3 Hours Over 3 Hours
Source: Accenture survey released January 4, 2007
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6. What percentage of managers accidentally
use the wrong information at
least once a week?
100
80
60 Over 50% OPTION THREE
40 30-50% OPTION TWO
20
0-30% OPTION ONE
0
Source: Accenture survey released January 4, 2007
6 © 2011 IBM Corporation

7. What percentage of managers accidentally
use the wrong information at
least once a week?
100
80
60 Over 50% OPTION THREE
40 30-50% OPTION TWO
20
0-30% OPTION ONE
0
Source: Accenture survey released January 4, 2007
7 © 2011 IBM Corporation

8. Performance Management
Financial Management
Revenue Expense
PERFORMANCE
Management Management
Long Term Asset Management
8 © 2011 IBM Corporation

9. Performance Management
Financial Management How are we doing?
Revenue Expense
PERFORMANCE
Management Management
Long Term Asset Management
9 © 2011 IBM Corporation

10. Performance Management
Financial Management How are we doing?
Why?
Revenue Expense
PERFORMANCE
Management Management
Long Term Asset Management
10 © 2011 IBM Corporation

11. Performance Management
Financial Management How are we doing?
Why?
What should we be doing?
Revenue Expense
PERFORMANCE
Management Management
Long Term Asset Management
11 © 2011 IBM Corporation

12. Performance Management Framework
for Coordinated Decision Making
Finance
Operations Product
Development
Sales PERFORMANCE Marketing
Customer Human
Service Resources
IT/Systems
12 © 2011 IBM Corporation

13. A System for Performance Management
Finance
• Shared Understanding
Operations Product
Development • What has happened
• Why it happened
Sales PERFORMANCE
• What needs to be done
Marketing
• What is likely to happen
Customer Human
Service Resources
IT/Systems
• Information Prioritized
by Strategy
13 © 2011 IBM Corporation

14. Performance Management Maturity Model
AMR Research technology, people, process
Source: AMR Research BI/PM maturity model - technology, people, process
14 © 2011 IBM Corporation

15. Performance Management Maturity Model
AMR Research technology, people, process
Step 4:
Orchestrating
Step 3: Are we all on the
Collaborating same page?
Step 2: Where are we going?
Anticipating
Step 1:
Where are we now?
Reacting
Where have we been?
• Project based departmental
approach
• Function-specific metrics
• Use of spreadsheets/
manual processes
• Focus on data access,
reducing report cycle time
• Last business cycle view
Source: AMR Research BI/PM maturity model - technology, people, process
15 © 2011 IBM Corporation

16. Performance Management Maturity Model
AMR Research technology, people, process
Step 4:
Orchestrating
Step 3: Are we all on the
Collaborating same page?
Step 2: Where are we going?
Anticipating
Step 1: Where are we now?
Reacting • Projects more strategic, visible
across depts.
Where have we been?
• Functions are largely siloed
• Project based departmental
approach • VP-level accountability
• Function-specific metrics • Tools & business process based -
dashboards prominent
• Use of spreadsheets/
manual processes • Focus on bottom-line
performance (cost savings);
• Focus on data access,
reducing report cycle time • Current status view
• Last business cycle view
Source: AMR Research BI/PM maturity model - technology, people, process
16 © 2011 IBM Corporation

17. Performance Management Maturity Model
AMR Research technology, people, process
Step 4:
Orchestrating
Step 3: Are we all on the
Collaborating same page?
Step 2: Where are we going?
Anticipating • Multi-department, across silos
Step 1: Where are we now? • Collaborative, accountable,
coordinated
Reacting • Projects more strategic, visible
across depts. • Operational/financial metrics
Where have we been? from the top
• Functions are largely siloed
• Project based departmental • Integrated planning - aligns
approach • VP-level accountability resources across groups
• Function-specific metrics • Tools & business process based -• Focus on performance
dashboards prominent improvement
• Use of spreadsheets/
manual processes • Focus on bottom-line
performance (cost savings);
• Focus on data access,
reducing report cycle time • Current status view
• Last business cycle view
Source: AMR Research BI/PM maturity model - technology, people, process
17 © 2011 IBM Corporation

18. Performance Management Maturity Model
AMR Research technology, people, process
Step 4:
Orchestrating
Step 3: Are we all on the
same page?
Collaborating
• Performance culture exists
Step 2: Where are we going? • Top down executive buy-in
Anticipating • Multi-department, across silos • Single consistent view
of the enterprise
Step 1: Where are we now? • Collaborative, accountable,
coordinated • Goal setting cascades
Reacting • Projects more strategic, visible through operational areas
across depts. • Operational/financial metrics
Where have we been? from the top • Integration with service-level
• Functions are largely siloed agreements
• Project based departmental • Integrated planning - aligns
approach • VP-level accountability resources across groups
• Function-specific metrics • Tools & business process based -• Focus on performance
dashboards prominent improvement
• Use of spreadsheets/
manual processes • Focus on bottom-line
performance (cost savings);
• Focus on data access,
reducing report cycle time • Current status view
• Last business cycle view
Source: AMR Research BI/PM maturity model - technology, people, process
18 © 2011 IBM Corporation

19. Performance Management Maturity Model
AMR Research technology, people, process
Step 4:
Orchestrating
Step 3: Are we all on the
Collaborating same page?
Step 2:
Where are we going?
Anticipating
Step 1: ?%
Where are we now?
Reacting ?%
Where have we been?
?%
?%
Source: AMR Research BI/PM maturity model - technology, people, process
19 © 2011 IBM Corporation

20. Performance Management Maturity Model
AMR Research technology, people, process
Step 4:
Orchestrating
Step 3: Are we all on the
Collaborating same page?
Step 2:
Where are we going?
Anticipating
Step 1: 3%
Where are we now?
Reacting 7%
Where have we been?
55%
35%
Source: AMR Research BI/PM maturity model - technology, people, process
20 © 2011 IBM Corporation

21. WHAT IS NEEDED?
Enterprise-class platform
Reliable and scalable software that is
low cost to deploy, manage and maintain
Complete, consistent view
of information, anytime, anywhere
Capabilities for all user communities
to ensure access to the right information
for better decision-making
Solutions based on Best Practices
Analytic Applications, Services,
Support and more that accelerate
deployment and success
21 © 2011 IBM Corporation

22. WHAT IS NEEDED?
Enterprise-class platform
Reliable and scalable software that is
low cost to deploy, manage and maintain
Complete, consistent view
of information, anytime, anywhere
Capabilities for all user communities
to ensure access to the right information
for better decision-making
Solutions based on Best Practices
Analytic Applications, Services,
Support and more that accelerate
deployment and success
22 © 2011 IBM Corporation

23. What Problems do Cognos and IBM Solve Together?
Information On Demand Unlocks the Value of Information to Optimize
Business for Competitive Advantage
Financial Workforce Dynamic
Customer & Product Risk Insight Optimization Supply Chain Multi-Channel Better Business
Profitability Marketing
Business Optimization Outcomes
Leverage information to better
understand and optimize
business performance
Establish accurate, trusted
information for a single version of
the truth, managed over time
Flexible Architecture for Leveraging Existing Investments
An efficient and solid foundation
for managing data and content
over its lifecycle
Other Information
& Application Sources
23 © 2011 IBM Corporation

24. WHAT IS NEEDED?
Enterprise-class platform
Reliable and scalable software that is
low cost to deploy, manage and maintain
Complete, consistent view
of information, anytime, anywhere
Capabilities for all user communities
to ensure access to the right information
for better decision-making
Solutions based on Best Practices
Analytic Applications, Services,
Support and more that accelerate
deployment and success
24 © 2011 IBM Corporation

25. All Capabilities in One Product
• Query
• Reporting
• Analysis
• Dashboarding
• Scorecards
• Event Management
• Planning & Budgeting
• Consolidation
• Statistics and Predictive Analysis
Eliminates need for multiple tools,
25
lowering costs and easing standardization © 2011 IBM Corporation

26. WHAT IS NEEDED?
Enterprise-class platform
Reliable and scalable software that is
low cost to deploy, manage and maintain
Complete, consistent view
of information, anytime, anywhere
Capabilities for all user communities
to ensure access to the right information
for better decision-making
Solutions based on Best Practices
Analytic Applications, Services,
Support and more that accelerate
deployment and success
26 © 2011 IBM Corporation

27. Blueprints
27 © 2011 IBM Corporation

28. Our Commitment:
• Innovation that
drives performance
• Solutions for your success
• Partnership for the journey
28 © 2011 IBM Corporation

29. Thank You!
29 © 2011 IBM Corporation