Microsoft Office

PerformancePoint Server 2007

Michael Smith

Director of Marketing

October 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

Scorecards

Dashboards

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

Portfolio

Analysis

Reporting

Dashboards

Scorecards

PM Requires Broad Functionality & Common Business Definitions

Inconsistent Business

Definitions and

Business Rules Leads

To “Spreadsheet

Integration”Revenue Expenses Margins

Service

Calls

Employee

Hires

Customers

Incomplete 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

Performance

Management

Applications

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 PerformancePointServer 2007

Portal and Collaboration: SharePoint 2007

Scorecarding, Analytics and Planning:PerformancePoint 2007

End-user analysis:Excel 2007

BI

Platform

Performance Mgt.

Applications

End-user

Tools

Microsoft Business IntelligenceA Complete Solution

Integration:SQL 2005 IS

Analysis:SQL 2005 AS

Reporting:SQL 2005 RS

Data Warehouse:(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

Business

Management

Driven

Functional

Capabilities

People

Empowerment

Superior

Value

Microsoft’s Approach To Performance Management

PerformancePoint Functionality

Analysis & ReportingPlanning, Budgeting,

Forecasting & Consolidation

Report

Scorecard & Dashboard

Analyze

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 process

Manually 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 expenses

More effective planning of inventory and stock levels

TAP Project ScopeForecast and analysis of revenue and expenses with integration of syndicated data

Analysis 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 system

Improving 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 Conversion

Current 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 end

Excel 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 flexibility

Flash 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

Sign-up for the Beta program available 11/06

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.