Drive Business Performance > Microsoft Corporation Actionable insight aligned to business strategy.

Drive Business Performance

<<Name>><<Title>>Microsoft Corporation

Actionable insight aligned to business strategy

Develop Customer

Relationships

Improve Operations

Drive Innovation

Build Partner

Connections

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People Drive Business Outcomes

Amplify their impact and you create greater success

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Goals of Today’s Presentation

Understand how performance management solutions can drive better business results

Learn about the Microsoft vision for pervasive performance management

See examples of performance management solutions in action

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Agenda

The Need for Performance ManagementPerformance Management OverviewMicrosoft in Performance ManagementBusiness ScenariosCustomer EvidenceNext Steps

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Need for Better Insight and Visibility Throughout the Organization

VP, Operations VP, Sales and Marketing

CFO

CEO

“I need to have the right demographic information so I can better target my opportunity prospecting.”

Sales RepCustomer Support Rep“I need better access to information to make better decisions on cross-sell and up-sell opportunities.”

“I need to know that the people in my organization have the right goals in place to understand and execute on the strategic initiatives of the company.”

“I need better visibility into our pipeline performance so I can focus on deals that help me grow business with my most profitable customers.”

“I need better visibility into my cost of operations so I can target specific cost reduction opportunities that won’t have a negative impact.”

“I need to improve our analytics capabilities so we can understand our current business performance and do a better job of planning for the future."

Source: “Creating the Office of Strategy Management” by Robert Kaplan and David P. Norton, Harvard Business School, April 2005

Limited Access to InformationKey information not available to front-line decision-makers

Managers dependent on IT to run reports

Decisions are based on historical rather that forward-looking information

Problems not identified or addressed on a timely basis

Analytical capabilities reside with specialists rather than those responsible for running the business

Difficult to Execute Business StrategyEmployees don’t understand how their work relates to company strategy.

Can’t measure the effect of new programs or initiatives

Performance targets not tied to activities that drive business priorities

Resources not allocated appropriately

Lengthy cycles for budgeting, planning, and other key business activities

Data is inconsistent—no “single version of the truth”

Business Challenges

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Agenda

The Need for Performance Management Performance Management OverviewMicrosoft in Performance ManagementBusiness ScenariosCustomer EvidenceNext Steps

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What is Performance Management?

Processes, methodologies, and technologies to help people continuously improve their business through:

Reporting, monitoring, and analyzing current business results

Planning strategic initiatives to drive future business performance

Aligning organizational performance to support strategic initiatives

AnalyzeWhy?

AlignHow do I make it happen?

PlanWhat do I want to happen?

ReportWhat happened?

MonitorWhat is happening?

FORWARDLOOKINGHISTORICAL

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What is Performance Management?Aligning past information, present conditions, and future outcomes

Performance Management Needs Ownership Beyond IT

StrategyObjectives

Metric Definitions

Operational Data from LOB Systems

Operational Data from LOB Systems

ActionsAdjustmentsPlanning

ScorecardsPlanning Applications

Analytics

Bu

siness

Inte

lligen

ce

Perf

orm

an

ce M

an

ag

em

en

t

Infrastructure and

Platforms

People, Processes,

and Applications

Business

Driven

IT Driven

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Agenda


Empowering people throughout the enterprise with insight to

plan more effectivelyalign with strategic initiativesmake better business decisions

Drive Business Performance The People Ready Vision of Performance Management

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Why Microsoft?

Complete, integrated, end-to-end performance management offering

Pervasive delivery of business intelligence through Microsoft Office

Easy for everyone to learn and use keeps training costs low

Familiar interface encourages wide adoption

Cost-effective for organization-wide deployment

Compatible with existing ERP systems and other technology investments

Microsoft BI and Performance Management An end-to-end offering

END USER TOOLS & PERFORMANCE MANAGEMENT APPS

Excel PerformancePoint Server

BI PLATFORMSQL Server

Reporting ServicesSQL Server

Analysis Services

SQL Server RDBMS

SQL Server Integration Services

SharePoint Server

DELIVERY

Reports Dashboards Excel Workbooks

AnalyticViews Scorecards Plans

Business Intelligence

Performance Management

IT User

Business User

Line of Business Applications

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Agenda


Business

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Realize Business Value Performance management scenarios on Solution Showcase

BetterPortfolio Management

Improving Sales and

Marketing ROI

Treasury and Cash Management

Plant Floor Visibility

Store Operations Management

Case Management

Supply Chain Management

Practice Management

Planning, Budgeting and Forecasting

Insurance Claims Processing

http://www.microsoft.com/office/showcase/default.mspx

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Improving Planning with Better AnalyticsBudgeting Planning and Forecasting

Forecasting and budgeting managed separately, not linked

Expensive and time-consuming processes for budgeting and reporting

Disconnected spreadsheets lead to multiple versions of the truth

Automated population of budget to actual reports

Auditability and control for all business process data

Rolling forecasts replace annual static budgeting processes

Closed loop planning, budgeting, and forecasting improves decision-making and organizational agility

Line-of-business accountability—focus on business drivers and value creation

More accurate and efficient budgeting and planning processes

Situation Solution Benefits

Demo

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Improving ProfitabilitySales and Marketing ROI

Difficult to consolidate and summarize customer information

Limited information sharing between sales and marketing

Unable to access, manipulate, and gain timely insight from sales and marketing data

User-friendly tools and applications allow quick access to customer data

Role-specific campaign and product performance reports

Scorecards with drill-down navigation for better analysis and insight

Expanding the reach of analytics to all decision makers

Role-based data visibility drives informed, timely decision-making

Improved understanding of drivers for business results and customer behavior


Demo

Enhancing Financial InsightTreasury and Cash Management

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Poor visibility into financial issues and other business processes

Inefficient processes and inconsistent reporting across operating lines

Inability to quickly identify, track, and address critical issues

Single source for operating information—improved macro view

Operations insight integrated into widely used productivity tools

Real-time financial reporting and analytics

Improved visibility through centralized monitoring and reporting

Better accountability through issue assignment and notification

Optimized performance with enhanced financial transparency, insight, and accuracy


Demo

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Prioritizing and Optimizing Investments Better Portfolio Management

Resources and project investments don’t align with strategic objectives

Inefficient management of organizational capacity and utilization

Poor risk management

Centralized resource management (people, time, material, and finances)

Easy-to-use tools for multi-dimensional portfolio analysis, prioritization, modeling, and optimization

Risk managed by establishing and weighing business drivers

Align strategic objectives and spending for projects and portfolios

Effective evaluation and prioritization of competing investments

Integrated decision making and execution monitored for performance


Demo

RetailStore Operations Management

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Solution

Insufficient visibility into marketing, merchandising, and operational tasks

Delayed task execution and under-utilization of employee resources

Poor communication and accountability between corporate offices and retail stores

Role-based dashboards and portals to provide summarized views

Effective workload and resource allocation with real-time task tracking

Real-time voice and data communication to enhance collaboration across multiple locations

Easy customization of roles-based dashboards

More effective business reporting consolidated from multiple systems

Efficient task management at the associate level


Demo

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ManufacturingPlant Floor Visibility

Inability to adhere to manufacturing best practices due to lack of process visibility on the plant floor

Lack of responsiveness to customer needs

Prolonged decision-making cycle leading to higher production costs

Dashboards and scorecards to display KPIs and facilitate deeper analysis

Real-time performance monitoring and alerts

Automated execution thorough workflow and collaboration tools

Enhanced visibility to provide quick insight, reduce defect rates, and improve operational efficiency

Better collaborative decision-making

Greater agility to improve product offerings and meet customer needs


Demo

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Public SectorCase Management

Government agencies lack transparency and accountability

Citizens use the wrong channels to find information

Case workers struggle to keep up with communication requirements throughout the case process

Centralized, personalized portal views improve transparency

Analytical tools better align resource investments to citizen needs

Single point of integration for key information; workflow tracks case completion

Deliver an increased number of services with higher citizen satisfaction

Reduce wait times, error rates, call-back rates, and management costs

Change processes easily to match legislation


Demo

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Financial ServicesInsurance Claims Processing

Need to improve customer retention

Changing regulatory requirements and legislation

High costs associated with legacy systems and information silos

Need for greater fraud detection

Labor-intensive manual processes

Performance metrics and analytics

Business intelligence tools for better fraud detection

Automated claims handling processes across systems

Increased collaboration throughout claims process

Improved customer service and satisfaction

Higher revenue through improved cross-selling

Lower costs of claims handling

Better auditability and compliance

Optimization of people, processes and technology across the claims lifecycle.


Demo

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Manufacturing Improving Visibility and Collaboration across the Supply Chain

Lack of supply chain visibility and control; difficulty identifying root causes of delays

End-to-end processes do not work across organizational boundaries

Product introduction delays due to poor supply chain project management

Real-time analysis of key supply chain operational data

Centralized, single location for supply chain collaboration

Roll-up reporting and analysis

Centralized accountability through issue assignments and notifications

Improved operational efficiency

Faster time to production with better supply chain project management

Enhanced process visibility

Shortened decision-making cycle


Demo

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Professional Services Practice Management

Inability to access right information

Lack of visibility into key performance metrics

Inability to differentiate and invest into right businesses, people and clients

Role-based reporting with drill-down capabilities

Single platform for reporting, monitoring, and analyzing data

Detailed KPI-based comparison of clients across practices and locations

Less administrative burden for IT

Up-to date, easy to use tools for improved decision-making

Stronger client relationships

Higher employee retention

Better reuse of intellectual assets


Demo

Drive Business Performance Scenario

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Agenda


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Customer EvidenceFortis Group improves quality and delivery of management reporting with new systemMuckleshoot Indian Casino drives better management decision-making, lower costs with reporting solutionSouth Holland District Council addresses compliance and improves its performance managementElectro Scientific Industries sees potential savings of up to $500,000 with new data reporting solutionSasfin Bank Limited improves risk analysis and efficiency with an intelligent single view of customerEvergreen Healthcare Management improves business intelligence with executive dashboardGemplus managers use timely insights to quickly adapt to market developmentsOrtho-Clinical Diagnostics to improve report integration and analysis with new business intelligence capabilities

Financial Group Improves Quality and Delivery of Management Reporting with New System

Fortis Group

Difficult for managers to access up-to-date business informationInability to analyze financial and non-financial information in a goal-orientated wayManual processes for performance reporting heavy workloads, lack of transparency, data input errors

Integrates and manages performance data from multiple business divisions and sourcesBuilt on Microsoft Office Business Scorecard Manager, Microsoft SQL Server 2005, and Microsoft Excel 2007

Flexibility to respond quickly to market trends Presentation of integrated management data across the groupEnhanced business decision makingReduced risk of data input errors

Next Steps

Casino Drives Better Management Decision Making, Lower Costs with Reporting Solution

Muckleshoot Indian Casino

Complex systems for analyzing, reporting, and sharing informationHigh degree of spreadsheet manipulation, including copying, pasting, and reformatting Manual filtering through stacks of data in search of insights

A scalable self-service reporting solution to provide managers with structured, timely, and high-quality data Built on Microsoft Office SharePoint Server 2007, Microsoft SQL Server 2005, Windows Vista Enterprise

Weekly management report reduced from 48 pages to 1 pageReduced manual report processes save 66 hours per weekGaming operations issues identified two days (66 percent) faster than before

Next Steps

http://www.muckleshootcasino.com/

http://www.resolutecorp.com/Home.aspx

Local Government Addresses Compliance and Improves Its Performance Management

South Holland District Council (SHDC)

Compliance with new government-mandated regulations for performance reportingInefficient, time-consuming processes for data collection and analysisDeteriorating data quality during manual procedures Reactive rather than proactive issues management

Business intelligence and enterprise content management to facilitate and accelerate data collection, analysis, and report creationBuilt with Microsoft Office 2007 (includingExcel 2007 and InfoPath 2007) andMicrosoft Office SharePoint Server 2007

Better manage employee absences and be able to react in a timely manner.Deliver better efficiency and cost savings.Increase citizens’ satisfaction by providing better quality services.

Next Steps

http://www.sholland.gov.uk/

Manufacturer Sees Potential Savings of Up to $500,000 with New Data Reporting Solution

Electro Scientific Industries (ESI)

Three different systems for tracking and reporting data Difficult to assess the total amount billed for individual projectsPoor information flow throughout the company

A business data dashboard to connect data sources and a centralized repository for all reporting elements.Built on Microsoft SQL Server 2005, MicrosoftOffice SharePoint Server 2007, and Excel Services

Potential savings of U.S.$500,000 from bypassing the SAP business warehouse add-on module.75 percent reduction in development and deployment time (three months versus a year).Better employee access to accurate information.

Next Steps

http://www.esi.com/

http://www.sftsrc.com/default.aspx

Bank Improves Risk Analysis and Efficiency With an Intelligent Single View of Customer

Sasfin Bank Limited

Siloed approach to customer information Management -- no single view of the customerSeparate transaction processing systems for different business unitsDelays in lead generation, limited cross-selling, and slow credit processing

A business intelligence and enterprise content management solution to create a single view of the customer Build on Microsoft Office 2007, Office SharePoint Server 2007, Office InfoPath 2007, SQL Server 2005, BizTalk Server 2006, Microsoft Dynamics CRM 3.0

Customer data availability increased by 80 percent Improved quality of business decisionsFewer errors in the credit data system and compliance reportsTime to create compliance reports decreased by 10 business days (20%)

Next Steps

Headline Healthcare Provider Improves Business Intelligence with Executive Dashboard

Evergreen Healthcare Management

Legacy system generated census reports compiled from disparate systems Too much time spent producing reports instead of delivering care to residentsFixed revenue necessitated better cost management

A business-intelligence solution that will reduce the time spent gathering daily census information from four hours to about 30 seconds per employee. Built on Microsoft Office 2007, Office SharePoint Server 2007, SQL Server 2005

Daily executive time for financial reporting reduced by 98-percent, for an annual labor cost savings of U.S.$350,000. Financial data provided on a daily basis. Labor-tracking dashboard will allow employees to spend more time with patients.

Next Steps

http://www.evergreenhealthcare.com/

http://www.centerlogic.com/

Timely Insights Enable Gemplus Managers to Quickly Adapt to Market Developments

Gemplus

Reports not distributed to management on a timely basisManagement reports available only in hard copyCost pressures due to increased number of competitors

Secure, browser-based, personalized dashboards provide managers with near real-time visibility to financial and sales dataBuilt on Microsoft Office 2007 and Microsoft Office PerformancePoint Server

Real-time, consolidated, annotated information improves management decision-making Provides managers with an intuitive and easy way to directly access key data Reporting cycle reduced by 50% from ten to five days

Next Steps

http://gemplus.fr/

http://www.gemplus.com/

http://www.gemplus.com/

Headline diagnostics firm to improve report integration and analysis with new business intelligence capabilities

Ortho-Clinical Diagnostics (OCD) a Johnson & Johnson Company

Unintuitive and difficult to use business intelligence systemToo much time spent producing reports instead of generating salesLack of flexibility to produce customized reports

Solution to bring together business intelligence tools with enterprise content management capabilities in a seamless user experienceBuilt on Microsoft Office 2007, Office SharePoint Server 2007, SQL Server 2005

Greater insight into financial trends with dynamic charting and analysis tools in a familiar, intuitive format Tools to simplify organization-wide business and sales report generation Significantly reduced operating and long-term licensing costs

Next Steps

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Learn more about relevant performance management scenarios through the Solution Showcase offerings

Develop insights through a strategy/solution briefing to identify key business needs

Work with a Microsoft Certified Partner to scope performance management needs and requirements

Next Steps

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© 2007 Microsoft Corporation. All rights reserved. Microsoft, Excel, PerformancePoint, ProClarity, SharePoint, and Windows Server and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

AppendixAppendix

Simplify how people work

together

Reduce IT costs and

improve security

Help protect and manage

content

Find information and improve

business insight

A New World of WorkTrends Role of

Software

Cost pressure

Always on, always

connected

Transparent organization

One world of business

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Performance Management TodayResults from Consultant Surveys“Companies in the top quartile in terms of their BPM practices … generate 2.4 times the three-year total shareholder return of the typical company in their industry”

Hackett Group, reported in Business Performance Management Magazine, February 2007

50% of large companies “believe that a gap exists between their company's ability to formulate and communicate sound strategies and its success at implementing them.”

OnPoint Consulting, reported in Business Finance Magazine, November 2006

“Nearly 60% [of CIOs] say they'll provide BI tools to more than a quarter of employees within two years.”

InformationWeek, March 2007

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End-to-End Performance ManagementPeople, processes, and technology drive business performance

People

Processes & Methodologie

s

Technology

Organization-wide access to relevant business information (no IT filter)

Easy-to-use intelligence tools for all levels and roles

Role-based delivery of performance-related information

Scorecards, dashboards, and strategy maps that identify business drivers

Standardized KPIs to align with business goals and initiatives

Redesigned business processes to affect business drivers

Automated workflow for simpler consolidation and reporting

Data integration to combine information from existing systems

Data consistency, security, and integrity

Server-based views to allow collaboration and consistency – single version of the truth

Incre

asin

g V

alu

e

Microsoft BI and Performance ManagementAn end-to-end integrated offering

Business Intelligence

Performance Management

Office SharePoint® Server 2007

ProClarity®

Analytics

PerformancePoint Server

(includes Business Scorecard Manager)

IT User

Business User

SQL Server™ 2005

Integration Services

Office Excel 2007

Reporting

Services

Analysis Services

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Links to relevant customer evidence available at http://www.microsoft.com/casestudies/

Financial ServicesPLICO (June 2007)Fortis Group (April 2007)Sasfin Bank Limited (Feb. 2007)LendingTree, LLC (Dec. 2006)

ManufacturingEnergizer (Sept. 2007)Oticon (Aug. 2007)Electro Scientific Industries (ESI) (Jan. 2007)

Healthcare and Life SciencesCalypso Healthcare Solutions (April 2007)Evergreen Healthcare Management, LLC (Nov. 2006)Novartis (Nov. 2006)Ortho-Clinical Diagnostics (OCD) (Sept. 2006)

Public SectorMinistry of Agriculture, France (May 2007)South Holland District Council (SHDC) (March 2007)South East Water Limited (Jan. 2007)

Professional ServicesGetronics (May 2007)Gemplus (Nov. 2006)

OtherSkanska (Construction – Sept. 2007)GrainCorp (Agriculture - June 2007)Muckleshoot Indian Casino (Retail and Hospitality - Feb. 2007)MTV Networks International (MTV) (Media and Entertainment - Feb. 2007)

Customer Evidence

http://www.microsoft.com/casestudies/

http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000000164




















Drive Business Performance > Microsoft Corporation Actionable insight aligned to business strategy.

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