microsoft banking industry performance management

7/28/2019 Microsoft Banking Industry Performance Management

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Software for the business

Banking IndustryPerformance Management

Using Business Intelligenceto Increase Revenue and Profitability

A MICROSOFT WHITE PAPER


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ContentsTodays Banking Industry

Performance Management Landscape 4

What is Microsofts Performance Management Solution? 6

Monitoring Performance 8

Analyzing Information 10

Conclusion 11

Overview

Today, banks operate in a complex, competitive and highly

regulated environment, with low margins and high customer

expectations. To manage this rapidly changing economic and

regulatory landscape, banks need a reliable way to quickly

translate strategic business decisions into concrete actions

that lead to measurable results.

Much of the data banks need to make strategic decisions that

can improve their performance and increase their profitability

is stored in silos managed by disparate and disconnected

technology systems. But even banks that have sophisticated

business intelligence and performance management solutions

often dont use them effectively, or the technology is so costly

and complex that only a few executives and managers are

allowed to use it, with the help of the IT staff. As a result, many

banks fail to get the information they need to make informed

decisions and to plan for success.

Microsoft Office PerformancePoint Server 2007 provides

an integrated performance management solution that

provides the right information, at the right time, in the right

format, enabling all bank employees to monitor and analyzeperformance data. This paper describes how PerformancePoint

Server 2007 can help banks make effective, companywide

performance management a central component of their

business strategy.

2009 Microsoft Corporation. All rights reserved.


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A people-ready business runs on Microsoft software.Microsoft Office PerformancePoint Server 2007 enables banks to generate more revenue and increase profitability by

providing the tools they need to improve their performance, by monitoring and analyzing data and then using that

information for better decision making.

A business bets on its most important asset. Every one of the


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4 Banking Industry Performance Management

Banks today understand that increasing their revenue

and profitability means they first must improve their

performance. Yet, many banks find it increasingly

difficult to achieve that goal due to a lack of good

business intelligence to help enable effective

performance management. And good performance

management is essential as banks strive to manage risk,

improve branch operations, design and execute more

effective marketing campaigns, attract and retain more

customers, and increase customer profitability.

At a time when every strategic decision has the

potential to improve or erode a banks bottom line,

bank employees struggle to collect and synthesize

enormous amounts of raw data from every part of the

organization and transform it into the information

executives and managers need to make those criticaldecisions. Because much of that data is stored in silos

managed by disparate and disconnected technology

solutions, however, the information is slow to reach the

people who need it. And once the information arrives,

it is often outdated or incomplete.

Business intelligence technology has been on the

market for more than a decade, and a number of

recent surveys conducted by analyst firms show that

business intelligence remains a top priority for CIOs.

Yet, despite the general acceptance of business

intelligence as an important tool for performance

management, and the billions of dollars companies

have invested in technology to help them provide a

seamless flow of strategic information, business

intelligence still does not play a large role in most

business decisions.

Most companiesincluding most banksstill only use

business intelligence technology on a departmental

basis or in other limited ways. Another problem is that,

typically, only 10-20 percent of information workers

actuallyuse

the business intelligence technologiesthat are available to them, relying instead on their

own collection of documents, spreadsheets, and other

resources they assemble.

Todays Banking Industry Performance Management Landscape


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5

Is your infrastructure

As multiple people compile information from

different sources at different times to create their

own spreadsheets and documents, data integrity

and version control can become serious problems.

With so much information being extracted and

exchanged in different ways, it is hard to know

whether a document is current or even accurate.

And with Sarbanes-Oxley regulations now requiring

bank officers to take legal responsibility for financial

statements and other documents, data integrity is

essential for compliance and good corporate governance.

Further, by failing to make good use of business

intelligence technology to monitor and analyze

performance throughout the organization, many

banks and other companies fail to get the information

they need for informed strategic planning and effectivemanagement of their current and future performance.

According to a Harvard Business Review article from

April 2005, Organizations often fail to execute their

strategyfailure rates may range from 60 to 90

percent. And because performance management is

a continuous process rather than a point-in-time problem

to be solved, the challenge of gaining the strategic

insights necessary to deliver increased performance

year after year can easily grow over time. For example,

research by Capgemini, a leading international

consulting firm, found that the volume of data the

companies it studied have to consider is increasing

by 79 percent annually.

The technology itself is partly to blame for thesefailures. Most performance management solutions

are expensive, difficult to use, and require significant

training and IT support. As a result, most organizations

allow only a few executives and analysts to access

these systems and the information they provide.

Unfortunately, by keeping business intelligence

and performance metrics beyond the reach of most

personnel, many banks fail to engage their most

valuable assetthe creative energy of their employees.

Good performance management is

essential as banks strive to manage

risk, improve branch operations,

design more effective marketing

campaigns, attract and retain

more customers, and increase

customer profitability.


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What is Microsofts Performanc

Management Solution?

Microsoft takes a different approach to business

intelligence and performance management. We

understand that decision makers count on having

unimpeded access to the right information, at the

right time, in the right format. We also believe that

effective performance management depends on abanks ability to monitor performance and analyze

data all across the organization, from top to bottom

and then make the resulting information and insigh

available to all bank employees in a format they

understand and are comfortable using, so that

everyone can contribute to the planning process.

Using the Microsoft Business Intelligence platform,

Microsoft Office PerformancePoint Server 2007

can help any organization build an enterprise-grade

scalable performance management solution that

provides a high degree of data confidence and

control. PerformancePoint Server 2007 uses

Microsoft Office as its primary interface, so bank

employees can interact with familiar tools such as

Excel to access up-to-date, high-quality informatio

collaborate with colleagues, and help to strengthen

the business by contributing to strategic plans and

performance management.

PerformancePoint Server 2007

makes it easy and economically

feasible for all executives, managers,and front-line employees to

have the same access to

valuable insight from a

high-quality performance

management application.

Increased revenue and profitability

means banks must first

improveperformance.


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When the software works together, a business works togethe

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PerformancePoint Server 2007 also uses the proven

data engine of SQL Server 2008 for data integration;

an industry leading online analytical processing

(OLAP) engine with built-in data mining; and a highly

flexible and scalable reporting platform to broadcast

information to a wide audience. All of this is delivered

via the Web in Microsoft Office SharePoint Server

2007, providing a central access point for business

intelligence information.

Using Excel Services, the server-based version of

Office Excel 2007 in Office SharePoint Server 2007,

bank employees can create, manage and share

spreadsheets more efficiently and publish them to the

server. Access to information is controlled through a

Web browser in a centrally managed environment,

which helps to ensure data integrity. It is easy for bank

employees to modify and refresh reports from within

the Web browser, helping to ensure that everyone is

working with the most recent data and calculations.

Because PerformancePoint Server 2007 resides within

the Microsoft applications that banks already use

every day, it is now easy and economically feasible

for all executives, managers, and front-line employees

to have the same access to valuable insight from a

high-quality performance management application.

Everyone can access the metrics, key performance

indicators, dashboards, and reports to see how they

are contributing to overall corporate strategy and

improving bank performance.

PerformancePoint Server 2007 uses

Microsoft Office as its primary

interface, so bank employees caninteract with familiar tools such

as Excel to access up-to-date,

high-quality information and

collaborate with colleagues.

Decision makers count on

having unimpeded access

to the right information,

at the right time,

in the right format


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Monitoring and measuring results are key components

of any successful business. Office PerformancePoint

Server 2007 enables bank employees to define and

use scorecards and key performance indicators (KPIs)

to promote accountability and alignment throughout

the organization.

Rich visualization and up-to-date performance dashboards

and scorecards help bank employees align their actions

with the banks strategic goals. All employees can gain

insight into the banks business and collaborate more

efficiently using detailed, contextual business analysis.

Bank employees access the information through

Microsoft Office applications, which are familiar

productivity and collaboration tools they already use

every day. Templates and wizards make it easy for them

to build, manage, and share scorecards that enable

them to monitor business performance and track

key initiatives.

Providing complete and integratedperformance managementMany performance management applications require

connectors, interfaces, and add-ins to link their

various applications to the Microsoft Office

environment. Office PerformancePoint Server 2007comes fully integratedfrom reporting and analysis,

to dashboarding.

PerformancePoint Server 2007 is designed to

improve operational and financial performance

across all departments and at all levels of an

organization. A bank can use this single integrated

application to monitor and analyze its successes

and the barriers it faces.

Office PerformancePoint Server 2007 enables bank

employees to create scorecards, dashboards, analytics,

that align with their own responsibilities and goals

and with the overall goals and objectives of the bank.

Monitoring Performance


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A business searches. A business finds

Empowering all employeeswith business intelligenceWhile many performance management solutions focus

on business intelligence analysts and experts, Office

PerformancePoint Server 2007 is designed to reach

everyone involved in the banks business, and at all

levels of the organization. PerformancePoint Server

2007 provides a familiar user experience through the

easy-to-use Microsoft Office system, including

Microsoft Office Excel, Office Outlook, and Office

SharePoint Server.

And with the scalability and high performance of

Microsoft SQL Server 2008 and the Microsoft Business

Intelligence platform, banks can afford to deliver the

right information that helps the broadest number of

people make better, faster, and more relevant decisions

without continually burdening the IT department.

Enhancing partnership betweenIT and business analystsThe IT staff spends a lot of time providing bank employees

with information. Because Office PerformancePoint

Server 2007 gives employees easy-to-use functionality

for setting up their own performance dashboards and

scorecards, the IT staff is free to focus on more critical

functions such as meeting security, compliance, and

corporate governance requirements.

PerformancePoint Server 2007 also features a user-

friendly design and application wizard that bank

employees can use to build their own dashboards and

scorecards and to create interactive analytics charts

and graphs without the need for IT support.

PerformancePoint Server is designed

to improve operational and financial

performance across all departments

and at all levels of an organization.

A bank can use this single integrated

application to monitor and

analyze its successes and the

barriers it faces.

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Office PerformancePoint Server 2007 provides

analytical capabilities that empowers bank employees

to capture and share analytical best practices using the

intuitive and collaborative environment of Microsoft

Office. Simple data navigation, powerful server-based

calculations, and advanced visualization are core

components that help employees understand complex

information faster.

Employees create analytics that can include graphs,

key performance indicators (KPIs), and data grids, and

use advanced visualization functionalities. These rich

visualizations help them rapidly identify trends,

opportunities, and even threats to the business

hidden within large quantities of data.

Simple-to-use tools designed to meet specific

user needsincluding thin Web clients, performance

dashboards, reports, and scorecardsmake it possible

for people throughout the organization to analyze

and gain insight.

Delivering advanced analyticand visualization capabilitiesAnalysis is a core component of the performance

management cycle. An organization is at a competitive

advantage if every decision maker can quickly and

easily perform analyses that help them make better

decisions and execute more effectively againstcorporate goals and objectives.

Bank employees often depend on IT experts to

provide them with the data they need to make

strategic decisions. PerformancePoint Server 2007

Analytics features a user-friendly design, easyto-use

wizards, and advanced data visualization tools

that enable them to quickly and easily build and

share analyses without relying on the IT staff for

continual support.

Analyzing Information

An organization is at a competitiveadvantage if every decision maker

can quickly and easily perform

analyses that help them

make better decisions and

execute more effectively

against corporate goals

and objectives.


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Helping employeesmake better decisionsThe advanced analytic capabilities in PerformancePoint

Server 2007 range from multidimensional slice and dice

to root-cause analysis and prediction capabilities. These

techniques can be deployed across the organization inthe familiar Microsoft Office environment, empowering

all users to find the answers they need quickly. Because

PerformancePoint Server 2007 is fast, has more security

features, and is easy to use, all employees can gain

powerful insights into the banks performance.

Conclusion

Microsoft Office PerformancePoint Server 2007 enables banks to generate more revenue and

increase profitability by providing the tools they need to improve their performance by monitoring

and analyzing data. PerformancePoint Server 2007 enables effective performance management by

providing reliable, real-time business intelligence from across the organization at all levels. And by

making the resulting information and insights available to bank employees in the familiar Microsoft

Office format, PerformancePoint Server 2007 empowers bank employees to contribute more fully

to planning and budgeting. This integrated approach enables banks to capitalize on their existing

investments in Microsoft technology and also lowers costs by reducing training time and freeingthe IT staff to focus on other priorities.

Is your business

Simple-to-use tools designed to meet

specific user needsincluding thin

Web clients, performance dashboards,

reports, and scorecardsmake it

possible for people throughout

the organization to analyze

and gain insight.

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Software for the business

FOR MORE INFORMATION

To learn more about Microsoft Office

PerformancePoint Server 2007, visit:www.microsoft.com/performancepoint

For more information about

Microsoft Business Intelligence, visit:

www.microsoft.com/BI

www.microsoft.com/financialservices

MS MARKET PART NO. 098-111334
http://www.microsoft.com/performancepointhttp://www.microsoft.com/BIhttp://www.microsoft.com/financialserviceshttp://www.microsoft.com/BIhttp://www.microsoft.com/performancepointhttp://www.microsoft.com/financialservices

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