Microsoft Office PerformancePoint Server 2007

Michael SmithDirector of MarketingOctober 23, 2006

Overview of Performance Management Market

Performance Management (PM)

Gartner Definition“Combination of management methodologies, metrics, and IT (applications, tools and infrastructure) that enables users to define, monitor, and optimize results and outcomes to personal or departmental objectives while enabling alignment with strategic objectives across multiple organizational levels (personal, process, group, departmental, corporate or business ecosystem” October 2006: Understand Performance Management

to Better Manage Your Business

Performance Management sounds like a good thing…

…So Where Is PM Today?Effective Performance Management Has Not Been Realized

Labor Intensive• Average time for annual budget process is 4-5 months• Budgeting process takes up 20-30% of managers time

Fragmented• Average $B+ firm has 10 GLs, 12 budget, 13 report systems • Only 26% have integrated planning and reporting processes

Ineffective• 60% of firms fail to align actions & strategy• 70% of companies rate themselves “poor”

Labor Intensive• Average time for annual budget process is 4-5 months• Budgeting process takes up 20-30% of managers time

Costly• Cost to budget is 25,000+ person days per $B in revenue• Finance staffs spend 79% of time on “low-value” activities

Slow & Inflexible• Only 20% of firms update budgets within the fiscal cycle• Average firms wait 11 days from month end to get reports

Methodology Alone Not EffectiveRequires Support From Integrated Processes & Applications

Planning &Budgeting

ScorecardsDashboards

Analysis &Discovery Forecasting

Management Reporting

Balanced Scorecard

Economic Value Add

(EVA)

Beyond Budgeting

Lean Manufacturing

A Methodology Without PM Process Support Leads To Failure

A PM Process With Disparate Applications Leads To Extra Time & Cost

Disparate Tools & Information

Planning Budgeting

Forecasting

ProfitabilityFinancial

Management

AnalyticsProject

PortfolioAnalysis

Reporting

DashboardsScorecards

PM Requires Broad Functionality & Common Business Definitions

Inconsistent Business Definitions and Business Rules Leads To “Spreadsheet Integration”

Revenue Expenses Margins

ServiceCalls

EmployeeHires

Customers

Time

Produ

ct

Loca

tionIncomplete Set Of

Functionality Leads To Limited Usefulness And Ability To Act On Information

Limited Participation & UsagePM Requires Easy To Use & Cost Effective To Deploy Products

PerformanceManagementApplications

Products Designed For Power Users, Too Hard For Information Workers To Use

Products Are Too Expensive To Give To Large Numbers Of Employees

Products Do Not Provide For Easy Collaboration or Personalization

Microsoft Office PerformancePoint Server 2007

Portal and Collaboration: Portal and Collaboration: SharePoint 2007SharePoint 2007

Scorecarding, Analytics and Planning:Scorecarding, Analytics and Planning:PerformancePoint 2007PerformancePoint 2007

End-user analysis:End-user analysis:Excel 2007Excel 2007

BIBIPlatformPlatform

Performance Mgt.Performance Mgt.ApplicationsApplications

End-userEnd-userToolsTools

Microsoft Business IntelligenceA Complete Solution

Integration:Integration:SQL 2005 ISSQL 2005 IS

Analysis:Analysis:SQL 2005 ASSQL 2005 AS

Reporting:Reporting:SQL 2005 RSSQL 2005 RS

Data Warehouse:Data Warehouse:(SQL 2005 RDBMS)(SQL 2005 RDBMS)

PerformancePoint Server 2007

• Aligns and supports PM process

• Spans the enterprise

• Provides visibility and transparency

• Business users own and maintain

• Flexible and model driven

• Auditable & secure

• Plan, budget, forecast, scorecard, dashboard, management report and consolidate

• Workflow driven templates/forms

• Pre-built rules & calculations

• Single data model & definitions

• Bring all users into PM process

• Personalized scorecards, plans

• Active alerting and notifications

• Powerful visualization and annotations

• Support collaborative PM

• Familiarity of Office and Excel

• Self service for business users

• Centralized application management

• Improved control of spreadsheets

• Integration with data sources

• Priced for broad deployment

• Extends existing investments in Office & SQL & Dynamics

BusinessManagement

Driven

Functional Capabilities

People Empowerment

SuperiorValue

Microsoft’s Approach To Performance Management

PerformancePoint Functionality

Analysis & ReportingAnalysis & ReportingPlanning, Budgeting, Planning, Budgeting, Forecasting & ConsolidationForecasting & Consolidation

Report

Scorecard & DashboardAnalyze

Forecast

Plan

What happened?

What is happening?Why?

What will happen?

What do I want to happen?

Unified Data Model & Business Rules

Customer Examples

Book RetailerBudgeting

CompanyThe largest book-seller in the world, operating over 800 stores in 50 states

Business ChallengeProducing Annual Budgets at a very high level of granularity. Would like to increase the granularity and go to monthly Forecast to improve the overall accuracy of the processManually creation of over 200 Excel forms for different work centers and e-mailing them between various end-users, reviewers, approvers, etc.

TAP Project ScopeStreamline the budgeting process by integrating directly with the source systems and eliminating the manual creation of Excel forms Increase the granularity of the budgeting by budgeting some expenses at the employee level

Early ResultsElimination of manual of Excel forms by creating generic Template Forms based on models with Filter functionality and granular business rules Integrated security model established to ensure that the right people have access to the right data

Global Consumer ProductsPlanning

CompanyMarkets several leading brands of consumer personal care products globally

Business ChallengeImprove financial performance through effective management of revenues and global supply chain inventories and expensesMore effective planning of inventory and stock levels

TAP Project ScopeForecast and analysis of revenue and expenses with integration of syndicated dataAnalysis of manufacturing plant through-put and fulfillment rates

Early ResultsMethod of implementing allocations has made the reporting many orders of magnitude faster than their existing systemImproving data collection for demand forecasts

Global High Tech MfgFinancial Consolidation

CompanyMarket leading manufacturer of telecommunications and networking equipment for IP telephony, contact center and mobile customers

Business ChallengeConsolidation of over 100 legal entities including I/C Reconciliations, I/C Eliminations & Foreign Currency ConversionCurrent system has proven unsatisfactory due to limited functionality and scalability

TAP Project ScopeIntegrated with source systems to develop “One version of the truth” to improve and streamline the existing consolidation and provide real time analytical and reporting capabilities.

Early ResultsPre-built business rules for consolidation reduced time and effort at month endExcel front-end enables self-service for business users without programming

Global Fashion/JewelerManagement Reporting

CompanyLeading provider of luxury and mid-range watches

Business ChallengeCurrent system unable to support business need for change and flexibility

TAP Project ScopeTo reproduce the current monthly Flash Report and Statutory Reporting in a more timely, accurate and integrated fashion

Early ResultsRe-produced the monthly Flash report with consolidation and currency conversion faster, with more accuracy and flexibilityFlash reporting and consolidation reporting can now be in one system with no need to merge the two systems every month

Questions?

www. microsoft.com/performancepoint

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Contact your local Microsoft team

Copyright ©2006 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.