amr research 2009 executive guide to selecting bipm service providers[1]
TRANSCRIPT
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2009 Executive Guide to Selecting
BI/PM Service Providers
July 2009
Service providers oer a plethora o BI and PM services that incorporate sophisticated
methodologies and packaged oerings. What buyers value highly are nuts-and-bolts technical
skills that mesh with their chosen technical architecture. Tey also continue to want it their
way on their terms.
by John Hagerty and Dana Stifer
Enterprise Perormance Management
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Copyright 2009 by AMR Research, Inc.
AMR Research is a registered trademark o AMR Research, Inc.
No portion o this report may be reproduced in whole or in part without the prior written permission o AMR Research. Any writtenmaterials are protected by United States copyright laws and international treaty provisions.
AMR Research oers no speciic guarantee regarding the accuracy or completeness o the inormation presented, but the proessional stao AMR Research makes every reasonable eort to present the most reliable inormation available to it and to meet or exceed anyapplicable industry standards.
AMR Research is not a registered investment advisor, and it is not the intent o this document to recommend speciic companies orinvestment, acquisition, or other inancial considerations.
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2009 AMR Research, Inc.Enterprise Performance Management | July 2009 1
EntErprisE pErformancE managEmEnt
2009 Executive Guide to SelectingBI/PM Service Providersby John Hagerty and Dana Stifer
Business intelligence (BI) and perormance manage-ment (PM) programs consume a massive amount omoney. AMR Research estimates that companies spentover $57B globally on BI/PM programs in 2008, withnearly $21B, or 37% o the total, spent on externalservices. With that much money at stake, its not sur-prising that service providers have doubled down onBI/PM as a continuing source o activity and revenuein tough economic times. While 2009s market orBI/PM external services has sotened, all rms expectgrowth this yearestimates range rom modest toexplosiveas buyers continue to invest in inrastruc-ture and programs that enable act-based decision-making.
We invited 35 leading service providers with at least100 BI/PM resources to participate in this research;23 agreed and answered a detailed RFI in 1Q09. Teinormation gathered includes acts and gures aboutthe consulting and technical capabilities necessary tosupport BI and perormance management projects,ongoing maintenance o associated inrastructure, andspecic process and/or industry specialties.
We also conducted detailed interviews with over 50organizations that use or have used external BI/PMservices. Most companies were provided as reerencesthrough the RFI process. Tey include rms that useconsultants or sta augmentation, outsourced supportand maintenance, project management, strategy devel-opment, sotware implementation, or turnkey solutiondeployment. Some engagements were as short as a ewquarters. One has been active or nearly 10 years.
We reached several conclusions:
In buyers minds, technical skills trump industryand process expertise by a wide margin.
PM programs require a blend o inance best prac-tice knowledge and sotware product expertise.
Service provider capabilities dont always matchhow theyre used.
Global delivery options allow service irms to lexstaing levels based on buyer demand and/or con-strained budgets.
Perormance issues are usually linked to individualsand their interpersonal skills.
July 2009
The Bottom Line: With billions spent on external business intelligence and perormance
management services, buyers still value cost-eective technical skills over industry or business
process expertise.
Service providers featured in this Report
Accenture (including Avanade), Archstone Consulting, Capgemini, Claraview (a division o Teradata),Cognizant Technology Solutions, Deloitte, Ernst & Young, Fujitsu, Genpact, HCL, Hewlett-Packard, IBMGlobal Business Services, Inosys, ISA Consulting, KPMG, L&T InoTech, MindTree, Palladium Group, Patni,
PricewaterhouseCoopers, Sapient, Tata Consultancy Services (TCS), Wipro
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Scope o practice does difer widely
Lots of emphasis areas are lumped under the terms BI
and PM. For some, BI/PM is about reporting. For others,
the emphasis is on dashboards. Data governance is the
taproot of many programs, while others frame BI/PM asintegration and data warehousing.
BI and PM are not monoliths, and service providers
have diverse practices. We asked each firm to
characterize what the scope of service entails and how
they typically engage with clients. In our definition,
any initiative is made up of at least two of the
following components:
BI products Tools that provide information
gathering, analytics, and presentation of data to end
users.
Analytic inrastructure Infrastructure to store,
organize, integrate, and prepare data for reporting,
analysis, and planning functions.
Analytic applications Delivered applications that
accurately gather, unify, coordinate, and analyze
company-wide or content-specific data. Financial
consolidation and reporting is an example of this
type of application.
Dashboard and scorecards Tools and/
or applications that help businesses track key
performance indicators (KPIs) by providing a unified
view of organizational performance data and options
on a timed or near real-time and integrated basis.
Planning, budgeting, and orecasting (PBF)
productsApplications that provide a business
with a high degree of flexibility to align financial
and/or operational plans to its specific enterprise or
departmental planning processes
BI, analytic infrastructure, and dashboards/scorecards
are primarily delivered as blank canvases withunlimited possibilities. Each company paints as many
pictures as needed, reflecting how they choose to
portray their business performance. PBF and analytic
applications are usually configured for usemore
like paint by numbers than built from scratch for each
deployment. Figure 1 shows the relative importance of
each component within a service providers portfolio.
tehl kll u duy de exee by wde
Over the past ew years, we have repeatedly heardanecdotal evidence that BI/PM service buyers are lesswedded to product and technical choices and more
interested in hiring rms with proven experience intheir industry or business processes. Some even inti-mated that sotware products have enough unctionalparity that they are interchangeable. As we kicked othis project, our hypothesis was simple: industry andprocess skills are most highly valued.
But detailed interviews with over 50 reerences indicatejust the opposite: Te vast majority still evaluates andchooses service partners based on technical skill sets. Inact, over 80% o the companies indicated that tech-nical knowledge was the No. 1 criteria or selecting a
consultant, regardless o project scope. An I VP or aquick-service retail company said he valued rock-solidexperiences in integration, database, and BIthe holytrinity o BI technology.
Tat means that nearly 20% acknowledged thatindustry or business process knowledge was their topconsideration, especially when BI/PM strategy workwas the projects ocus. More than a ew mentionedthey werent really concerned about business expertisebecause they considered it a given. But a CIO o aEuropean bank put it best: You will get a lucky strikei you nd a team that has process knowledge andknows the products in detail.
Many companies, constrained by tighter budgets,continue to supply business and process expertise romwithin their own ranks, leaving the bulk o technicaland product knowledge to third parties. A manager ata health insurance company talked about the synergythat developed with this divide and conquer approach:Tey allowed the business customer to accelerate theirlearning curve and denitely short-cut the developmentand implementation process.
See able 1 ater the sidebar or key acts or each ser-vice provider, and able 2 or service provider skills byspecic technology.
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Wipro
Tata Consultancy Services
Sapient
PricewaterhouseCoopers
Patni
Palladium Group
MindTree
L&T InfoTech
KPMG
ISA Consulting
Infosys
IBM Global Business Services
Hewlett-Packard
HCL
Genpact
Fujitsu
Ernst & Young
Deloitte
Cognizant Technology Solutions
Claraview, a division of Teradata
Capgemini
Archstone Consulting
Accenture (including Avanade) 35% 25% 15% 10% 15%
25% 5% 30% 10% 30%
30% 40% 20% 5% 5%
13% 47% 29% 11%
23% 29% 14% 16% 18%
35% 5% 15% 20% 25%
10% 5% 20% 10% 55%
50% 10% 15% 15% 10%
30% 20% 30% 5% 15%
40% 5% 20% 15% 20%
25% 35% 15% 15% 10%
27% 46% 12% 10% 5%
30% 30% 10% 10% 20%
20% 10% 20% 20% 30%
23% 33% 21% 17% 7%
15% 15% 20% 15% 35%
40% 5% 35% 15% 5%
35% 45% 15% 3%2%
25% 15% 10% 20% 30%
30% 5% 10% 15% 40%
30% 20% 30% 15% 5%
30% 25% 15% 20% 10%
15% 60% 15% 5% 5%
Planning, budgeting,
and forecasting
Dashboarding
and scorecarding
Analytic
applications
Analytic
infrastructure
Business
intelligence
Figure 1: Practice focus by BI/PM category
Source: AMR Research, 2009
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tble 1:
Source: AMR Research estimates and/or company input, 2009
Engagement scope, practice size, and revenue facts
cy
Eee se pe sze reveue
Consulting,Project
Management,
FunctionalServices TechnologyDevelopment BI/PM FTEs BI/PMRevenue CompanyRevenue
BI/PM Service Revenue$500M to $1B
Accenture (including Avanade) 40% 60% 10,000+ $500M to $1B More than $10B
Capgemini 30% 70% 2,501 to 5,000 $500M to $1B $1B to $10B
Deloitte 40% 60% 1,001 to 2,500 $500M to $1B More than $10B
IBM Global Business Services 45% 55% 5,001 to 10,000 $500M to $1B More than $10B
Tata Consultancy Services 5% 95% 10,000+ $500M to $1B $1B to $10B
BI/PM Service Revenue$100 to $500M
Cognizant Technology Solutions 43% 57% 5,001 to 10,000 $250M to $500M $1B to $10BHewlett-Packard 35% 65% 2,501 to 5,000 $250M to $500M More than $10B
Inosys 43% 57% 5,001 to 10,000 $250M to $500M $1B to $10B
Wipro 40% 60% 5,001 to 10,000 $250M to $500M $1B to $10B
Genpact 50% 50% 1,001 to 2,500 $100M to $250M $1B to $10B
BI/PM Service Revenue$50M to $100M
Ernst & Young 70% 30% 100 to 500 $50M to $100M More than $10B
Fujitsu 30% 70% 100 to 500 $50M to $100M More than $10B
HCL 40% 60% 1,001 to 2,500 $50M to $100M $1B to $10B
KPMG 85% 15% 100 to 500 $50M to $100M More than $10B
Palladium Group 40% 60% 100 to 500 $50M to $100M $10M to $50M
Patni 18% 82% 1,001 to 2,500 $50M to $100M $500M to $1B
PricewaterhouseCoopers 60% 40% 100 to 500 $50M to $100M More than $10B
Sapient 15% 85% 100 to 500 $50M to $100M $500M to $1B
BI/PM Service Revenue$10M to $50M
ISA Consulting 5% 95% 100 to 500 $10M to $50M $10M to $50M
Archstone Consulting 65% 35% 100 to 500 $10M to $50M $10M to $50M
Claraview, a division o Teradata 25% 75% 100 to 500 $10M to $50M $1B to $10B
L&T InoTech 6% 94% 501 to 1,000 $10M to $50M $100M to $500M
MindTree 15% 85% 100 to 500 $10M to $50M $100M to $500M
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tble 2: Skilled head count for BI/PM ISVs
cyiBm
cif-
m-
fm-
ey
oleBi dHye-
sapBueobje sas
te-d
ohebe
l
Accenture (including Avanade) 7 7 7 6 7 7 7 7 7
Archstone Consulting 2 n/a n/a 1 3 2 n/a n/a 1
Capgemini 7 6 5 4 6 7 5 4 6
Claraview, a division o Teradata 2 1 1 2 1 1 n/a 2 1
Cognizant Technology Solutions 7 7 6 6 6 7 6 5 4
Deloitte 5 4 n/a n/a 7 5 3 3 1
Ernst & Young 2 n/a 1 n/a 4 4 n/a n/a n/a
Fujitsu 3 2 2 1 2 4 1 n/a 2
Genpact 2 3 n/a n/a 4 3 6 n/a 2
HCL 5 4 2 2 3 5 2 4 2
Hewlett-Packard 6 6 4 4 5 6 5 4 4
IBM Global Business Services 7 4 3 3 6 7 4 5 4
Inosys 6 7 6 4 6 7 2 5 5
ISA Consulting 3 1 n/a n/a 3 n/a n/a n/a 1
KPMG 2 1 2 1 3 3 2 1 1
L&T InoTech 3 2 4 2 4 4 3 4 3
MindTree 3 4 4 1 3 3 2 n/a n/a
Palladium Group 2 1 1 n/a 3 1 n/a n/a n/a
Patni 4 4 2 n/a 4 5 2 2 4
PricewaterhouseCoopers 2 2 5 1 3 3 2 n/a 3
Sapient 2 2 3 n/a 2 3 n/a n/a 3
Tata Consultancy Services 7 7 5 4 7 7 6 6 7
Wipro 7 7 6 5 6 7 4 5 4
Head count:
1 to 19 1
20 to 49 2
50 to 99 3
100 to 249 4
250 to 499 5
500 to 999 6
1,000+ 7
Note: All BI/PM assets of ISVs are included in skilledhead count numbers. For example, IBM Cognosincludes BI, analytic infrastructure, analytic appli-cations, dashboards/scorecards and PBF productcapabilities.
Source: AMR Research estimatesand/or company input, 2009
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pm eque bled ffe be e kwlede dfwe du exee
Initially, we planned to segment the written researchinto two Reports: one on BI service providers, the other
or PM consultants. Not surprisingly, PM programsat reerence companies were largely nance based. Temore we interacted with providers and buyers, the moreapparent it was that BI and PM capabilities are inexora-bly linked. It became nearly impossible to separate thediscussions because PM implementations all containeda healthy dose o BI requirements.
Te 20% o companies that most valued businessprocess/industry expertise reected on their ongoingPM programs. Tey expected consultants would comeequipped with rock-solid expertise in world-class nancial
perormance management processesplanning, prot-ability, and management reporting capabilities were mostcommonly mentionedand know how to best conguresotware products to make best practice a reality.
Several rms we spoke with were quite vocal about theneed or good business skills as part o any PM project.
An I director or a European consumer productscompany that rolled out a global planning systemsaid, You expect technical skills. But the businessskills are the real dierentiators. Without thatexpertise, he said the project would have come to a
grinding halt.A VP o inancial analysis at a U.S.-based telecom-munications company considered consultants asadvisors, not just implementers: You need a partnerthat knows the ropes, when to put their ist down inront o the steering committee when a bad decisionis made. I you dont implement whats beneicial tothe business, you are not doing it right. Althoughhe added that the irm used stumbled a ew times inthis role, it eventually stepped up to the challenge.
he CIO o a global media company discussing
a large-scale PM program not rooted in inancecautioned that the buyer had to retain leadershipand oversight because, Unless the program is trulywell-designed, a hands-o approach wont work.While he would have liked to turn the programover to his selected service provider, he elt thecompany didnt have the expertise to deal with theprogram on its own.
The Other Three re-emerge in BI/PMsystems integration and consulting
Over the last few years, weve seen three audit firms
that consciously exited the systems integration business
earlier this decade re-engage with a vengeance: Ernst
& Young (E&Y), KPMG, and PricewaterhouseCoopers
(PwC). Deloitte, the fourth member of the Big Four, took
a decidedly different strategy years ago and kept its
systems integration operations intact.
In 2006, these other three were nowhere to be found
in the BI/PM services landscape. While they continued
to offer clients advisory services and best-practice
consulting by industry and across finance and IT
functions, they no longer engaged in formative
systems work. For the most part, they had agreed
to abstain as a condition of sale of their systems
integration businesses.
PwC has been the most aggressive in re-establishing
itself in this segment, even purchasing large parts of
bankrupt BearingPoint(a spin-out from KPMG) to
augment its own capabilities. E&Y and KPMG are in
close pursuit.
Why is this important? These firms have maintained
close advisory relationships with many clients. They
havent been absent from the marketplace, just
engaging on a slightly different playing field. Its been
relatively easy for them to jump back in, especially
in the offices of the CFO and CIO where theyve
maintained the strongest connections. While the
Sarbanes-Oxley Act of 2002 stipulated that auditors
could not implement software at audit clients that
significantly impacted financial reporting, theres lotsof business beyond their audit clientsand theyre
going for it.
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seve vde ble dlwy h hw heye ued
Engagements can be categorized in many ways. Ata macro level, BI/PM work can be broken into ourdisciplines:
Consulting Including strategy and conceptualdesign
Implementation Incorporating coniguration,deployment, and go-live
Managed services Where external organizationsdeliver a agreed-upon service level on an ongoingbasis
Business process outsourcing (BPO) Whereanalytics and reporting are delivered by the servicesirm on behal o the buyer
All rms included in this report oer consulting andimplementation services. Many also oer managedservices, but smaller organizations tend to provideongoing maintenance services on a time-and-materialsbasis, rather than a ormal product oering. BPO isdenitely the new kid on the block, and BI/PM ser-vices are emerging in this area, but not yet a commondelivery vehicle. See Figure 2 or a list o capabilities byprovider.
Reputation is important
Interestingly, no buyer mentioned service rm meth-odology during reerence calls as a key dierentiator.While providers spend a lot o time talking aboutwhat makes them dierent rom their competitors,
reputation and experience rule the day. Service provid-ers with a legacy o sta augmentation and managedservice capabilities are likely boxed into a corner. Teyare viewed only as highly competent doers. A programmanager at a high-tech company thought o her serviceprovider in black-and-white terms: Tey are executors,not thinkers. And we are only willing to pay or execu-tors. A CIO at a consumer products rm that hadsuccessully used technical sta augmentation resourcesor years was unwilling to expand the engagement. Hebluntly responded, Im just not willing to take the riskand give them ormative consulting work. Maybe some
time in the uture ... just not now.
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Wipro
Tata Consultancy Services
Sapient
PricewaterhouseCoopers
Patni
Palladium Group
MindTree
L&T InfoTech
KPMG
ISA Consulting
Infosys
IBM Global Business Services
Hewlett-Packard
HCL
Genpact
Fujitsu
Ernst & Young
Deloitte
Cognizant Technology Solutions
Claraview, a division of Teradata
Capgemini
Archstone Consulting
Accenture (including Avanade) 30% 40% 20% 10%
65% 30% 5%
30% 70%
25% 75%
33% 40% 21%
40% 50% 10%
70% 30%
30% 55% 14% 1%
10% 40% 40% 10%
40% 40% 20%
30% 35% 30% 5%
11% 61% 25% 3%
15% 65% 20%
60% 30% 5% 5%
17% 59% 22% 2%
40% 60%
15% 60% 25%
6% 24% 70%
85% 15%
5% 90% 5%
43% 30% 25% 2%
40% 45% 10% 5%
35% 60% 3% 2%
Implementation
and integration
BPOManaged servicesConsulting
6%
Figure 2: Service provider capabilities by service type
Source: AMR Research, 2009
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glbl delvey llw evef flex ff level
Troughout the reerence-checking process, one topicremained prominent with many rms: cost control.When asked i there was anything theyd like AMR
Research to tell their service provider anonymously,more than a handul o respondents replied, ell themto lower their prices!
Te cost issue maniested itsel in dierent ways:
he CIO o a global media company remarked,You pay more, you get more experience. His workplan didnt warrant the budget commitment ormore highly skilled workers.
he BI and analytics delivery head or a regionalinancial services irm said, he irms sta-ing model allows me to lex worker levels at a
moments notice. I I need more people next week,I can pretty much be assured I can get them.Conversely, he could skinny-down a project rapidlyi costs become a constraint. He viewed this lex-ible staing model as his service providers greateststrength.
Global delivery models let buyers work closely withproviders to construct stafng models that made senseto them. Appropriate skills could be made available incost-eective geographies while maintaining on-sitesta to keep projects moving orward. Tis works well
in the current, sluggish I services market. Prior to themarket downturn, however, we saw risks with large-scale tactical stafng that let clients vulnerable to attri-tion and wage ination. We expect to see this situationagain once the market strengthens and large numberso BI/PM projects are taken o o hold status.
Creating the right mix o onsite/ofshoreresources
On average, buyers that contracted with rms oer-ing global delivery options maintained roughly a 35%onsite/65% oshore mix. Sufce to say, the ratios
swung wildly, depending on the phase o the initiativeand the maturity o the client.
Some irms had no visibility into onshore/oshorestaingthey just contracted with irms to deliverprojects and didnt care where the work was done.
An I director or a lie sciences company reportedshe was operating at a 25%/75% ratio. Her goalwas to reduce it to 15% onsite/85% osite. Ivebeen able to run other application developmentprograms at better onsite/oshore ratios. I dontknow i Ill ever get the BI program below where itis nowits undamentally dierent.
Global delivery is not solely the province o India-basedservice providers. A wide range o rms rom aroundthe globe oer this option to customers. In act, thestrongest global delivery endorsement came rom a VPo BI at a health insurance organization. When speak-ing o his U.S.-based consulting partner, he remarked,Tey awlessly executed the outsourced model. Teyhire aggressive people, and they take the ball andrun. He did add they sometimes ran in the wrongdirectionreinorcing the need or buyers to maintainstrong oversight and control over outsourced/oshore
projects. For global delivery capabilities, see Figure 3.able 3 indicates the geographic breadth o each rmsbusiness.
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Genpact
Patni
Accenture (including Avanade)
MindTree
L&T InfoTech
Infosys
Wipro
Tata Consultancy Services
Sapient
Cognizant
Hewlett-Packard
HCL
IBM Global Business Services
Deloitte
Capgemini
PricewaterhouseCoopers
Fujitsu
Claraview, a division of Teradata
KPMG
Palladium Group
Ernst & Young
Archstone Consulting
ISA Consulting 100%
100%
100%
100%
92% 8%
85% 15%
70% 30%
65% 35%
15% 85%
20% 80%
30% 70%
30% 70%
30% 70%
35% 65%
35% 65%
35% 65%
35% 65%
40% 60%
40% 60%
55% 45%
60% 40%
Onshore Oshore
75% 25%
25% 75%
Figure 3: Global delivery capabilities
Source: AMR Research, 2009
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tble 3:
Source: AMR Research, 2009
Geographic business distribution
cy nh ae EmEa a-pf L ae
Accenture (including Avanade) 50% 40% 8% 2%
Archstone Consulting 70% 30% 0% 0%
Capgemini 20% 69% 10% 1%
Claraview, a division o Teradata 100% 0% 0% 0%
Cognizant Technology Solutions 60% 39% 1% 0%
Deloitte 72% 27% 0% 1%
Ernst & Young 34% 64% 2% 0%
Fujitsu 50% 25% 25% 0%
Genpact 90% 4% 6% 0%
HCL 35% 35% 30% 0%
Hewlett-Packard 56% 24% 13% 7%
IBM Global Business Services 45% 30% 20% 5%
Inosys 68% 20% 12% 0%
ISA Consulting 95% 5% 0% 0%
KPMG 38% 50% 10% 2%
L&T InoTech 91% 5% 4% 0%
MindTree 42% 28% 29% 1%
Palladium Group 50% 35% 15% 0%
Patni 78% 15% 7% 0%
PricewaterhouseCoopers 60% 20% 15% 5%Sapient 68% 32% 0% 0%
Tata Consultancy Services 61% 34% 5% 1%
Wipro 60% 28% 10% 2%
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pefe ue uully lk dvdul d he eelkll
Whenever we talk to service buyers, they are morethan willing to discuss the cons as well as the pros o
working with their service provider and/or sotwarevendor. With consulting such a people-based businessand subject to the personalities o people involved, itis not a surprise that nearly 60% o the companies wespoke to said their BI/PM ventures got o to a rockystart because o interpersonal mismatches betweenproject sta and in-house program owners. More otenthan not, it was the hired program manager that wastagged as the problemhe or she lacked good com-munication skills or didnt ag issues early enough inthe process. Additionally, obstinate consultantsthosewho were unwilling to compromise with clientswereagged as problems, too.
Most customers viewed these problems as isolated to anindividual and not a weakness o the rm they hired.In all cases, service provider management took switaction, replaced the worker(s), and did what it took tomake sure the customer was satised. All reported thatreplacement sta made the dierence in project success.
reed
Retain business governance in house
. Client aterclient indicated that this was the key to projectsuccess. he program manager or a county schoolsystem was emphatic: Always have business peopleinvolved in the project. he operations execu-tive VP at a retailer was even blunter: Im all orprocess quality, but sometimes you have to pull thetrigger. Ive had to coach to know when enough isenough.
Set the ground rules clearly up front . Whenthere are hiccups in program execution, its usuallybecause there were issues let undeined at the out-set. Be as clear and succinct as possible. Some com-panies recommend a rolling three-month renewal,meaning programs are justiied at pre-deined
checkpoints. his will provide ongoing clarity to allparticipants. Its also a two-way street: An engineerat an energy company pointed out, You have toset the initial expectations on both sides. Make sureyou outline speciic rules o engagement up rontand get hoped-or conclusions ironed out.
Leverage hired expertise to build a foundationfor the future. For skills development or architec-tural direction, rely on your trusted service providerto assist you in establishing the right approach orlong-term sustainability. he global BI manager at
a consumer sotware company gave credit where itwas due: Beore, it was run and gun. But with theservice providers help, weve evolved into a maturedelivery organization.
Let service provider relationships evolve natu-rally. You may start tactically and expand the rela-tionship to a long-term partnership. Or you maydecide each program is independent and separatelybid. Organizations that have long-term relation-ships generally have evolved to a comortable andcost-eective association. A program director or abranch o the military was very complimentary oher service provider journey. hey have put theirheart and soul into this eort. hey were subcon-tractors at the beginning. Years later, they are nowthe directors. For another point o view, a programmanager at a U.S. state government agency signedo on a turnkey system deployment that lastedthree quarters. She praised her providers speed andbusiness practices: In my 23 years administeringlots o projects and contracts, this has been the bestexperience Ive had.
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Appendices
aedx a: Hw ue h re buld eve vde hl
AMR Research collected volumes o data based on adetailed RFI and in-depth briengs with service provid-ers as well as interviews with reerences and our clients.Companies can use this Report to help build a list opotential service provider partners. Tis eort startswith our steps:
1. Determine type o service needed:
BI/PM domain skills (see Figure 1)
Mix o technical and unctional skills required (seeable 1, columns 1 and 2)
2. Determine specic skills needed:Service capabilities (see Figure 2)
BI/PM technologies supported (see able 2)
3. Determine local and global delivery requirements:
Global locations served (see able 3)
Global delivery capacity (see Figure 3)
4. Schedule an inquiry call with AMR Researchanalysts:
o discuss program to urther hone in on the rightservice partners to interview
o better understand any additional actors andnuances that are best analyzed through inquiry
Bringing the decision matrix to lie
Te best way to illustrate this decision process is todescribe possible use cases and derive a potential listo providers that might t the bill. Te companiesmentioned below have demonstrated strengths in eachscenario, but other rms may also meet the require-ments as stated.
Use Case 1: Designing and deploying an enterprisedata warehouse
A health insurance organization based in NorthAmerica wants to use inormation gleaned rommember diagnostic data to determine which treatmentsdeliver the best clinical outcomes. In order to deploy asystem or health analysts, it must rst model an enter-prise data warehouse with all available patient-basedhealth data. Te company has chosen eradata or itswarehouse technology and Inormatica as its integra-tion standard. It wants to engage a service provider withproven expertise in modeling and deploying a ware-house within its chosen architecture.
Five service providers potentially t these requirements:
Accenture
Claraview
Cognizant echnology Solutions
Inosys
ata Consultancy Services
Use Case 2: Implementing a standard fnancialplanning application globally
A consumer products company based in Europe ispreparing to roll out a business planning system to 50+geographically dispersed business groups around theglobe. Tere are two major phases to the project: busi-ness strategy and planning design, ollowed by imple-mentation. Te company has yet to select a sotwareprovider. At this time, the company has decided tosearch or a strategic partner to guide it through thedecisions necessary to rethink how it currently plans.Once that step is done, they will select a sotware pro-vider and put out the implementation to bid.
Five service providers potentially t these requirementsor Phase 1:
Deloitte
Ernst & Young
IBM Global Business Services
KPMG
PricewaterhouseCoopers
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2009 AMR Research, Inc.14 Enterprise Performance Management | July 2009
Use Case 3: Establishing an integration competencycenter
A global bank needs to centralize all integration skillsinto one competency center so it can reduce skillsredundancy across the organization and provide a
consistent and sustainable level o service or newand ongoing projects at a relatively modest cost. Teinstitution has chosen IBMs InoSphere products orthe core o its integration strategy. Because the CIOknows programs ebb and ow, she decides she wantsto pursue a managed service that can scale up or downeasily depending on organizational demand. Shes hadsuccess with outsourcing beore, but wants to makesure she chooses the right partner with proven capa-bilities. Although things are slower now, she expectsmergers and acquisitions to play an important rolein the banks growth, leading to peaks and valleys o
demand.Five service providers potentially t these requirements:
Genpact
HCL
L& Inoech
Patni
Wipro
Use Case 4: Implementing Hyperion or managementreporting
A $1B+ lie sciences company headquartered in theU.S. mid-Atlantic region has made the decision toupgrade a management reporting system that is rootedin Oracles Hyperion products, implementing somenew capabilities while upgrading other components.
Te companys new controller has been tapped to leadthis project because he managed a program at his lastcompany, but it used a dierent technology oundation.He has a preerence to work with a specialist rm ashes been successul with this model in the past, but hedoesnt want to limit his options. Since hes new to the
technology but well versed in lie sciences, hes lookingor someone who knows the Hyperion products well.
Five service providers potentially t these requirements:
Archstone Consulting
Cognizant echnology Solutions
Deloitte
ISA Consulting
Palladium Group
Use Case 5: Dashboards or the masses
A European retailer plans to roll out a measurementsystem that calls or merchandising dashboards thattrack which SKUs are selling to specic buyer cat-egories. While this is just the start, the COO andCFO both expect that dashboards will need to bedeployed across the business regardless o unctionalarea. Te company has been a long-time user o SAPBusinessObjects BI and integration technologies, andwants to implement dashboards in the same vein.
Five service providers potentially t these requirements:
CapgeminiFujitsu
Hewlett-Packard
Mindtree
Sapient
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Notes
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