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ENTERPRISEPERFORMANCEMANAGEMENT (EPM)TRENDS, TOOLS AND OPPORTUNITIES

Dieter DecuypereLeen Van Den Bosch

Koen FierensPatrice Latinne

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LEF Briefing Series: Enterprise Performance Management 2

An introduction to EPM

EPM domains & architecture

Key benefits

Business trends & initiatives

What executives want (and arent getting, yet)

EPM as a tool for strategic alignment, budgeting & forecasting

Attention points for EPM implementations

Technology marketspace

Market overview

Key players

Opportunities

CSC as a partner

Business Trends & Initiatives

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Agenda

(short) Introduction to EPM

Technology ToolsBusiness Trends

CSC Opportunities

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Introduction to Enterprise Performance Management

Strategy,

Mission

Customer

Satisfaction

Supplier

Inputs

Shareholders

ERP

CRM

ROIYourOrganization

scorecards

Risk Mgmt.,Strategy

map, KPIs

needs

TargetingOrder fulfillment

KPI Scores

FeedbackEuros

Domains

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Business Inteligence Tools

Dashboards Portals

Strategy and

Performance

Measurement

Planning,

Budgeting and

Forecasting

Financial

Consolidations

and Reporting

Cost and

Profitability

Analysis

Data

warehousesApplications

(e.g. ERP, CRM)Data migration and integration

Business Performance Solutions

Data repositories and integration

Components


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Components


Master Data

Business Rules

Metrics/KPIs

Targets, Plans & Actuals

Strategic Performance

Set StrategicObjectives

Corporate

Development

Treasury

Strategies

Long-Term

Planning

Cost and Profitability Analysis

Define CostingMethods

Perform

Allocations

Report & Analyze Define Cost Drivers

Financial Consolidation

DataCleansing

ConsolidateInternal

Reporting &

Analysis External

Reporting &

Compliance

Cascade Targets

Allocate Resources

Forecasting Detailed Budgeting

Planning and Budgeting

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Integrated information and central definition of key metrics

Centralized workflow management (collaboration, consensus)

Centralized metadata management (single-version of the truth)

Powerful analytical means (visually, interactively, algorithmically)

Introduction to Enterprise Performance Management Key Benefits

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Key benefits


What executives want (and arent getting, yet) EPM as a tool for strategic alignment, budgeting & forecasting



Market overview

Key players

Opportunities

CSC as a partner


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Study of literature: What executives want (and arent getting, yet)

Move towards more intelligent and more integrated performance metrics

80% of executives receive reporting through spreadsheets

Only 20% of executives have access to EPM reports (OLAP)

Demand for drillable, flexible reporting

Missed opportunities: minority of CFOs use EPM for alignment

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78%

40%

30%

22%

21%

18%

17%

3%

6%

Spreadsheets

Dashboards and scorecards

Data mining

Query software

Production reporting software

On-Line Analytical Processing (OLAP)

Business performance management software

Other

None of the above / do not use such tools

Which business intelligence tools do you personally use to receive businessdata (Select all that apply)

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EPM as a Tool for Strategic Alignment, Budgeting &Forecasting

Align performance with strategy throughout the entire organization

Is my business strategy executed within the organization?

Is my business strategy effective? Do we achieve the desired goals?

How? KPIs

Characteristics of successful KPIs

Sparse, drillable, simple, actionable, owned, referenced, correlated, balanced,aligned & validated

Leading versus lagging Indicators

Outcome KPIs (lagging) output of past activities Driver KPIs (leading) measure activities with impact on outcome KPIs

Mix of financials and non-financials

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Use of KPIs some figures

56%

35%

9%

Lagging indicators

Leading indicators

Other

What percentage of your KPIs are:

57%

43%

Non-financial measures

Financial measures

What percentage of your KPIs are:

5%

18%

25%

16%

17%

8%

4%

4%

1%

2%

Zero

6 to 10

11 to 25

26 to 50

51 to 100

101 to 250

251 to 500

501 to 1000

1000 or more

Doesn't apply

Partially or fully deployed

How many KPIs exist in your organization?How many KPIs exist in your organization?

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EPM as a Tool for Strategic Alignment, Budgeting &Forecasting (Contd)

Diversified and shared ownership

Goals not limited to cost cutting

Opportunities missed: minority of CFOs use EPM for alignment:

budgets and forecast (43%)

operations and budgets with strategy (40%) allocation of company resources (45%)

risk management (30%)

financial planning and management (45%)

Integration of budgeting and EPM

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Attention Points for EPM Implementations

Emerging problems:

Legacy issues

Data access and cleanliness issues

Importance of change management in implementing EPM

Quest for (C-level) sponsorship

Alignment to processes and organization

EPM governance

EPM competence centers

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Attention Points for EPM Implementations

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Technology Marketspace



Key benefits





Market overview

Key benefits

Opportunities

CSC as a partner

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Who are we talking about?

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( )

Gartner Magic Quadrant for CPM suites (2009)

This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger

research note and should be evaluated in the context of the entire report. The

Gartner report is available upon request from Dieter Decuypere.

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What is EPMtechnology ?

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What is EPMtechnology ?

Business Inteligence ToolsDashboards Portals

Strategy and

Performance

Measurement

Planning,

Budgeting and

Forecasting

Financial

Consolidations

and Reporting

Cost and

Profitability

Analysis

Data

warehousesApplications

(e.g. ERP, CRM)Data migration and integration

Business Performance Solutions

Data repositories and integration


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Technology Marketspace: Strategic Performance Key Benefits: centralized lifecycle allowing complete alignment

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Technology Marketspace: Strategy Performance Key Benefits: sparse, aligned, centralized, actionable

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Technology Marketspace: Strategy Performance Key Benefits: visual, drillable, dynamic, balanced, everywhere,

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Technology Marketspace: Planning and Budgeting Key Benefits: centralized lifecycle allowing complete alignment

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Technology Marketspace: Budgeting, Planning Key Benefits: workflow management, data-level security, financial-

modeling engine for P&L, balance sheet, cash flow mgmt

Clarify Systems 6 (Planning)

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Technology Marketspace: Budgeting, Planning Key Benefits: web or excel GUI, post back in OLAP, scalable,

short-term budgeting and long-term forecasting techniques

IBM Cognos TM1 Planning

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Technology Marketspace: Cost & Profitability Key Benefits: automated, user-friendly, impact modeling of

allocations strategies, complex calculations

Activity-Based Costing Methodology

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Technology Marketspace: Cost & Profitability Key Benefits: drag-and-drop, transparency, complex costing rules

SAS Activity Based Management

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Technology Marketspace: Cost & Profitability Key Benefits: centralized, visual, profit optimization techniques

SAS Activity Based Management

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Technology Marketspace: Financial consolidation Key Benefits: alignment, transparency, data quality, statutory

and regulatory compliance, automation, financial reporting logic

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Technology Marketspace: Financial consolidation Key Benefits: transparency, multi-currency, audit trails, automation

Oracle Hyperion Financial Management

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Technology Marketspace: Financial consolidation

Board International

Key Benefits: complex business rules, dynamic roll-up, statutoryand regulatory reporting, GAAP presentation rules

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Technology Marketspace: Financial consolidation

Board International

Key Benefits: complex business rules, dynamic roll-up, statutoryand regulatory reporting, GAAP presentation rules

Board International

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Best strategy and offeringCriteria SAP-BO

IBM

Cognos

Oracle

HyperionSAS

Clarity

SystemsMicrosoft

weight

Planning and budgeting 4,06 3,95 3,98 3,67 4,51 3,13 31%

Strategy performance 4,45 5,00 3,90 3,40 2,45 3,35 27%

Financial consolidation and reporting 4,80 4,10 4,70 3,67 3,50 2,90 15%

Business Intelligence 4,40 4,30 4,30 4,00 2,90 4,30 15%

Cost and Profitability analysis 5,00 1,25 2,10 5,00 2,50 1,50 10%

Functional and industry-specific PM 3,50 5,00 4,00 4,00 2,50 1,00 2%

Our Score 4,4 4,1 3,9 3,8 3,3 3,1 100%

(score based on a scale of 0 to 5)

Enterprise, Small or Mid-market level E E E E SM SM

completeness of vision 5 5 5 4 3 2

market leader 5 4 5 3 2 1


Our scoring based on Forrester 2007, Gartner Q4 2008, IDC 2008

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SAP Product portfolio forEnterprise Performance Management

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SAP Product portfolio for Enterprise Performance Management

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SAP BO : Strategy management key points

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SAP BO : Strategy management key points

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SAP BO : Strategy managementSet corporate goals and enable alignment

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SAP BO : Strategy managementManage Initiatives and inter-dependencies

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SAP BO : Strategy management Prioritization matrix

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SAP BO : Strategy managementDiscussion thread/collaboration

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SAP BO : Strategy managementScorecard for drilldown & exception management

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SAP BO Xcelsius as Dashboard builder :What-if analysis

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SAP BO Business Planning and Consolidation

Need for accurate, timely financial and operational data

Plan, budget, forecast, analyze, and report

Integrated planning & budgetting

Intelligently model cost scenarios

Sensitivity analysis to determine operational budgets

Audit & compliance

Consolidating and reporting

Support for top-down & bottom-up consolidation processes

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SAP BO BPC : Intelligent action panes

Action panes with discussion threads and unstructured data : this will help

users understand what actions to be taken, when, how and why they are

necessary

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SAP BO BPC : Business process flow status overview

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SAP BO BPC : Automated variance analysis

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SAP BO BPC Automated Audit trail

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SAP BO Profitability and Cost Management (PCM)

Insight in cost and profit drivers

Financial performance on product, customer and channel levelAchieve greater accuracy and transparency of costs and profitability

Identify areas to reduce business costs

Target profitability improvements

On-demand scenarios Business plan input

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SAP BO Profitability and Cost management (PCM) :example

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SAP BO Profitability and Cost management (PCM) :views

Web-based,

interactive point

and click

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SAP BO Business Intelligence

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SAP BO Business Intelligence : Product Portfolio

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SAP BO Business Intelligence :Different users different solutions

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SAP BO BI : Voyager/Pioneer examples

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SAP BO BI : Crystal reports examples

SAP BO I f i M

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SAP BO : Information Management

SAP BO I f ti M t

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SAP BO : Information Management

O i

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Overview

An introduction to EPM EPM domains & architecture

Key benefits





Market overview

Key players

Opportunities

CSC as a partner

Opportunities of EPM for clients

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Opportunities of EPM for clients

Crisis = Danger + Opportunity (J.F. Kennedy)

EPM offers the toolset to make use of opportunities Better control performance

Increased organizational agility

Greater context for decision making

Opportunities for CSC

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Opportunities for CSC

Grant research allows CSC to position and profile itself as an earlyadopter of EPM, build expertise and experience

CSC as a partner

CSC is a global partner with EPM capabilities around the globe

Expertise in Performance Management & Business Intelligence (CSC Belux:

50pax)

Able to deliver large and complex EPM and BI projects

Integrating Performance Management, technical, business and applicationservices expertise

A track record of successful BI and Performance Management implementations

A proven results-oriented approach based on business priorities

Multiproduct and multimarket capabilities

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