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Page 1: Cognos basics

FIVE SIMPLE STEPS TO

BUILDING AN EFFECTIVE

SCORECARD

Rapid scorecarding formanufacturing

Page 2: Cognos basics

While every attempt has been made to ensure that the information in this document is accurate and complete, some typographical errorsor technical inaccuracies may exist. Cognos does not accept responsibility for any kind of loss resulting from the use of information con-tained in this document.

This page shows the publication date. The information contained in this document is subject to change without notice.

This text contains proprietary information, which is protected by copyright. All rights are reserved. No part of this document may bephotocopied, reproduced, stored in a retrieval system, transmitted in any form or by any means, or translated into another languagewithout the prior written consent of Cognos.

The incorporation of the product attributes discussed in these materials into any release or upgrade of any Cognos software product—as well as the timing of any such release or upgrade—is at the sole discretion of Cognos.

U.S. Government Restricted Rights. The accompanying materials are provided with Restricted Rights. Use, duplication for disclosure bythe Government is subject to the restrictions in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause atDFARS 252.227-7013, or subparagraphs (c) (1) and (2) of the Commercial Computer Software – Restricted Rights at 48CFR52.227-19,as applicable. The Contractor is Cognos, an IBM company, 67 South Bedford Street, Burlington, MA 01803-5164.

This edition published September 2008Copyright © 1989-2008 Cognos, an IBM company.

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3Rapid scorecarding for manufacturing

Table of contents

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Scorecarding 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Five Simple Steps to Fast, Effective Scorecards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Step 1: Build the Strategic Linkages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Step 2: Determine Indicators of Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Step 3: Identify Processes, Projects and Measures . . . . . . . . . . . . . . . . . . . . . . . . 9

Step 4: Build Scorecard Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Step 5: Launch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Want an Even Faster Route? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

The End Result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

A Profile in Performance: Scorecarding at Mueller . . . . . . . . . . . . . . . . . . . . . . 11

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Right Technology and Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Fastest Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Performance Management Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Request a call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

About Cognos, an IBM company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

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Introduction

For manufacturers worldwide, today’s business climate iscomplex and competitive. Manufacturing companies areunder intense pressure to improve customer service, bringinnovative new products to market and increase businessspeed and agility, while being mindful of regulatory andlegal compliance.

From the executive suite to the shop floor, managersjuggle a variety of priorities, and must assign a value toeach one based on their relative importance and theinteraction among the processes that drive them. Thenthey can integrate these elements into a strategic plan andcommunicate the plan throughout the rest of theorganization.

This is the core value of scorecards.

Manufacturing companies need forward-looking or“leading” metrics that are tied to their value drivers.Leading metrics in key areas such as productivity,profitability, customer satisfaction, compliance and safetycan alert companies to problems before they adverselyaffect the bottom line. For example, metrics such as partsshortages or order delays can point to an eventual drop incustomer satisfaction, declining revenue or a loss ofmarket share. Understanding these cause-and-effectrelationships, coupled with sound supply and demandplanning, allows for better synchronization, reduced costsand better performance.

While defining these metrics is one thing, bringing thedata together to support them can pose an even biggerchallenge. Companies usually rely on a raft ofperformance data drawn from many different systems:enterprise resource planning (ERP), spreadsheets, datamarts, presentation software, legacy data and othersources. Each system provides important informationabout a particular aspect of the company’s performance,but each collects, defines and displays the information in adifferent way.

Scorecarding with IBM Cognos 8 BI can helporganizations consolidate performance data fromdisparate sources into a coherent system that people cantrust. They can create their own truth scorecards that helpthem firmly pinpoint opportunities and roadblocks in keyfunctional areas.

Scorecarding helps business users, from the shop floor tothe top floor, quickly find answers to common questions,regardless of the data source, such as:

• How has this metric performed in the past?

• Who is involved in solving this problem? Havecorrective actions been put in place?

• What are the factors driving the performance?

• What other processes or metrics are affected?

• What are the details behind this metric? How is itcalculated?

Scorecarding with IBM Cognos 8 BI allows you to linkdecisions made by individual employees to corporatestrategies and goals. It provides users at every level of thebusiness with access to reports, analysis and alerts,helping them understand their metrics and the factors thatdrive their performance. It can scale easily from tracking afew individuals to specific operating subsidiaries, andfrom discrete geographic regions to the entire enterprise. Itcan manage performance using methodologies likeBalanced Scorecard, Six Sigma and Total QualityManagement.

And while many scorecard initiatives suffer from lack ofadoption by middle managers, IBM Cognos 8 BIscorecards provide the kind of drill-down capability andrelevant tactical information that middle managers findhighly useful—improving the chances for enterprise-widesuccess.

“Not everything that can be counted counts, and not everything that counts can be counted.”

~Albert Einstein

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Scorecarding 101

Scorecarding is a proven approach for monitoring,measuring and managing performance at a tactical orstrategic level for an organization, a team, or individualemployees. At the tactical level, employees and managersuse scorecards to monitor performance against targets fordiscrete, specific projects. At the strategic level, scorecardscan be part of a corporate-wide performance managementsystem that executives use to map the overall corporatestrategy and communicate it throughout the organization.

A scorecard is a list of key performance indicators (KPIs),or metrics, that present current performance data for abusiness process or strategic goal against target values.Most metrics feature a corresponding color scheme andtrend arrow that indicates whether that performance ison, above or below target and whether performance istrending up or down.

Most scorecards, such as those used in Balanced Scorecardimplementations, use a mix of financial and nonfinancialinformation, leading and lagging (financial) indicators andcorresponding strategy maps. Other may be industry-specific, such as supply chain performance management.According to Ventana Research, “The best way tomeasure process effectiveness is to organize your supplychain BI measures according to a standard performancemeasurement reference model. Reference models integratethe well-known concepts of benchmarking and processmeasurement.”2

The best-known reference model for managing supplychain performance is the Supply Chain OperationsReference (SCOR) model, created by the not-for-profitSupply Chain Council (www.supply-chain.org). Thismodel contains standard descriptions of managementprocesses and characterizes management practices andstandard metrics that benchmark best-in-classperformance.

SCOR is based on five core management processes:

1. Plan. Processes that balance aggregate demand andsupply to develop a course of action which bestmeets sourcing, production and deliveryrequirements.

2. Source. Processes that procure goods and services tomeet planned or actual demand.

3. Make. Processes that transform product to afinished state to meet planned or actual demand.

4. Deliver. Processes that provide finished goods andservices to meet planned or actual demand, typicallyincluding order management, transportationmanagement and distribution management.

5. Return. Processes associated with returning orreceiving returned products for any reason, whichextends into post-delivery customer support.

Rapid scorecarding for manufacturing

1 “Supply Chain Business Intelligence,” Ventana Research, April 2007

2 Ibid.

“We recommend that all supply chain BI initiatives start with Balanced Scorecard measurements. We also recommend that

SCOR results be displayed in the Balanced Scorecard business process perspective. By doing this, executives will be able to

evaluate supply chain BI results within the company’s performance management framework and manage within a proven

reference model that provides linkages to strategic goals.”1

~Ventana Research

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The SCOR model provides a framework for looking atthe entire supply chain to determine how to best meet thecustomer’s requirements. On a daily basis, logisticiansgather critical data, such as order backlog, order fill timeand days of inventory stock, that, when measured againstleading metrics, can provide the means to improveperformance.

The ultimate goal of scorecarding is to focus everyone inthe organization on the same metrics. Corporateperformance targets can be aligned with floor activities,with measured results and drill-down analysis, and theentire organization can be structured to promote processownership.

Manufacturing Scorecard: Scheduled to Actual Performance

Typical SCOR Metrics

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Performance Management & Measurement (pm2) is anindependent performance-measurement consulting firmfounded by Brett Knowles. Brett has been working in thisarea for over 15 years and is a former vice president ofThe Balanced Scorecard Collaborative. Brett’s experienceincludes the initial research work on the BalancedScorecard and his team has built over 2,000 scorecardsfor private and public sector organizations from aroundthe world (www.pm2.ca). The following few pages presentpm2’s five simple steps to a fast, effective scorecard.

Setting up a Balanced Scorecard appears to be a greatintellectual quest. What a wonderful challenge for ateam—to figure out the critical aspects of yourorganization and how to measure them. The problem isthis: no matter how many people you put on that team,you will have access to only a tiny portion of yourorganization’s wisdom; therefore, more often than not,you will miss the critical aspects of your organization’ssuccess. The trick to creating a great scorecard is to“rough it in” first, just like building a house. Use the teamto create the framework for a great scorecard, like theframing of a house, and then quickly release it to theorganization with the request for them to provide thedetails around the roughed-in scorecard.

In the house metaphor, the scorecard team members arejust the framers—putting up the wood frame of thestructure. The organization’s job is to put in the

plumbing, electricity, walls, paint, wallpaper and so on.How do you do this “scorecard-framing” work? There arefive distinctly different tasks that provide the breadth ofunderstanding required for a scorecard and performancemeasurement process. The trick, like framing a house, isto build the whole structure’s framework quickly in orderto make it self-supporting. If you pause too long betweenany of the steps, the entire program fails, as theorganization begins to “tweak” elements of the scorecardbefore the overall structure is built and understood.

Step 1: Build the Strategic Linkages

Step 1 calls for capturing the existing strategy anddocumenting it in a new way, called a strategy map. Thestrategy map is the “secret sauce” that is a requirementfor all great scorecards.

Drs. Kaplan and Norton, authors of The BalancedScorecard and The Strategy-Focused Organization andother bestsellers, frequently quote a Fortune magazinearticle revealing that 90 percent of strategies fail—notbecause they are weak, but merely because they are notexecuted! Given such a high failure rate, the mostimportant gain for your organization will come throughthe execution of your existing strategy—not throughdevising a better strategy.

Rapid scorecarding for manufacturing

Five Simple Steps to Fast, Effective Scorecards

“If you cannot draw your strategy map on a napkin, it is too complicated.”

~Brett Knowles, President, pm2

LaunchBuildScorecardProcesses

IndentifyProcesses, Projects &Measures

DetermineIndicatorsof Success

Build theStrategicLinkages

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Do not allow your scorecard project to get sidetrackedinto another “strategic planning” activity. Take whateverstrategy your organization is actually using and capturethat. (After using the scorecard for six months, you willhave enough information to have an informed strategicplanning discussion.) A strategy map describes what theorganization needs to do to be successful. In building asimple map showing the relative importance of strategicobjectives, the senior team is able to create alignmentacross their areas and an overall game plan, withoutcommitting to specific actions, performance levels, orownership. The strategy map becomes a risk-free tool toengage the leadership team in agreements about the wayforward.

As the organization learns and needs to refine its strategyor direction, the strategy map becomes the tool to captureand communicate those changes. Building the strategymap is work for the senior team within the area beingscorecarded. The measurement team may or may not beinvited to sit through the session.

Step 2: Determine Indicators of Success

Good scorecards start off with indicators—not measures.What is an indicator? Think of “miles per gallon.” It is anindicator of the car’s performance, but does not try todiagnose specifically what might be wrong. Low mileagemight be caused by poor engine performance, soft tires, orbad driving technique.

Many of our clients use employee absenteeism as anindicator of employee satisfaction. It is not preciselyaccurate, but many organizations have discovered thatunhappy employees tend to take more sick days.Periodically they will check the indicator with a morerigorous analysis – say an employee survey – to ensure it

is still a good proxy. By using indicators, not measures, anumber of benefits can be realized:

– Better breadth of scorecard coverage with fewerindicators: Because the indicator covers a widerange of possible causes, a single indicator provideswide coverage (for example, absenteeism might becaused by poor management, organization changes,or reduced rewards).

– Ability to start using the scorecard right away:There are always indicators available in theorganization that can be immediately used in thescorecard. It is important to select indicators afteryou have built the strategy map. An organizationwould not adjust its strategy just because there wereno obvious measures. Make sure that you do notconfuse the two concepts.

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Step 3: Identify Processes, Projects andMeasures

The promise of the scorecard is the translation of strategyinto action. An important deliverable from any scorecardprocess must be the linkage between strategy and what wedo—the processes and projects we work on from day to day.

During the third step, the scorecard team should produce ashort list of core processes, identify which ones are critical toeach Strategic Objective on the strategy map, and then rankthe processes’ ability to support that objective. This willallow the organization to identify the strategic impact ofeach process. Processes that have a high weighting butprovide poor support are performance risks for theorganization.

Likewise, all significant projects should also be ranked basedon their impact in improving the performance around each

Strategic Objective. Ideally, projects will provide supportaround the identified weak processes; if not, theorganization has a misalignment between the projects andstrategic need.

It is not unusual to find that 40 percent to 60 percent ofexisting projects do not link to any Strategic Objectives.Those projects should be stopped right away, so as not todivert resources from the things that will help execute thestrategy.

By the end of Step 3 the team will have a rough-cut riskanalysis illustrating the “execution gap”—the gap betweenwhat the strategy calls for and the capabilities of existingprocesses and projects. In this illustrative chart, the team canclearly show the risk profile by Strategic Objective.Typically, we invite the senior team in to review the findingsfrom Steps 2 and 3 (indicators, Strategic Objective riskprofile, projects recommended for suspension).

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Step 4: Build Scorecard Processes

In order to receive all the benefits that scorecarding offers,management needs to learn some new techniques. Thescorecard needs to (slowly) become integrated with otherexisting processes, such as accountabilities and financialplanning, and some efforts need to be made in shifting theorganization’s mindset to a performance-based culture.Processes need to be designed for the monthly gathering ofdata and objective owner commentaries. Step 4 calls fordesigning where the data is to come from, who writes thecommentary, when it is due and how it is published.

On the management process side, as Drs. Kaplan andNorton describe in The Strategy-Focused Organization,you will need to begin making “strategy a continuousprocess” and making “strategy everyone’s job.” Central tothis is the addition of a new type of quarterly managementmeeting – a Strategic Management Process – in which thestrategy map and weighting are reviewed to ensure thatthey are constantly tracking the best way forward for theorganization. Based on the work done in Step 3, theorganization can begin linking the strategy down to theteam or individual level by assigning accountability foreach supporting process and project, which in turn islinked to each Strategic Objective.

Step 5: Launch

It is important to get the scorecard into the hands of theorganization as soon as possible. Launching the scorecardhas three components: developing a presentation to begiven to the entire organization (repeatedly), gettingmanagement to openly support the scorecard and gettingagreement on the next steps.

Want an Even Faster Route?Through an alliance with PerformanceManagement & Measurement (pm2), we havedeveloped a hands-on method of helpingorganizations align their strategy with execution.Seasoned IBM Cognos consultants, market-leading software and an intensive programdelivered by pm2 combine to offer yourmanagement team a complete scorecardexperience. Together, we can help ensure yourorganization takes the right first steps toward aperformance management culture.

The Rapid Scorecard Service delivers:

• A strategy map and scorecard.

• A fully functioning scorecardingapplication populated with your keymetrics.

• A detailed go-forward plan.

• Skills transfer to your project manager.

For more information, please call 1-800-426-4667.

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The End Result

Scorecarding with IBM Cognos 8 BI enables organizationsto manage the business through a network of metrics,thresholds, histories and accountabilities. Consumers areable to identify problem areas in the organization, ensurealignment of key stakeholders and communicate strategyacross the organization through enterprise scorecards. Theend result is the ability to:

• Align employees around organizational strategy andexecution: Employees understand what they areresponsible for and how their performancecontributes to the overall performance of theorganization.

• Make targeted, prioritized information easilyaccessible: Scorecards provide the means for peopleat all levels of the organization manage their ownperformance. A scorecard is always on, alwayscurrent and always factual. As the organizationgains a better understanding of the scorecard, andwhat individual impact has on local performanceand organizational performance, confidenceincreases in its ability to track and manageperformance. As individuals see a scorecard as away for them to identify issues and validate themwith senior management, they are able to justifychanges in budgets, headcounts and other matters.

• Bring clarity and transparency: Organizations havevisibility into the business processes and activitiesthat are important to their mission and programgoals. They are able to exploit information tomonitor issues, get early warnings when things arenot tracking to plan and manage performanceagainst expected outcomes.

• Communicate critical success factors: Everyone hasaccess to relevant information. This ensuresemployees understand critical success factors andtheir role in organizational success. This iscommunicated throughout the organization at thesame time from the same system.

• Enable rapid response to shifts in strategy:Strategies continually shift. Management tools needto accommodate change. A scorecard is not static.With greater insights into the drivers oforganizational success, you can adapt the scorecardto reflect this and changing priorities.

IBM Cognos software has helped thousands of globalmanufacturing enterprises make these goals a reality. Ourcustomers trust IBM Cognos solutions to increasecustomer, product and channel profitability, manage andreduce risk, address compliance issues and improve thepredictability of financial performance. Each of thesecustomers has a unique story.

Here is just one:

A Profile in Performance:Scorecarding at Mueller

In a fast-paced, global economy, manufacturers can’tafford lackluster performance. They have to get the jobdone faster and cheaper, and still maintain a high level ofquality. Competition, outsourcing and increasinglycomplex supply chains add to the challenge.

When timing and quality control are paramount,manufacturing organizations need to be able to plan,analyze and measure results. So they can better manageoperations, respond to customers, keep pace with themarket and drive growth. With this in mind, Mueller choseIBM Cognos software to power its corporate strategy andperformance.

Mueller manufactures prefabricated steel buildings, roofingand construction products that can be purchased as wholesets or components. It has served the southwestern U.S. forover 75 years. With over 500 employees, the privately heldcompany operates from three manufacturing anddistribution locations and 22 retail outlets.

This case study will focus on how Mueller uses IBMCognos software to help:

• Support its award-winning Balanced Scorecardinitiative.

• Accelerate information delivery, from three days tothree minutes.

• Provide in-depth insight into sales, finance, inventoryand purchasing.

• Gain fact-based analytic and decision-makingcapabilities.

• Improve customer sales and service.

Rapid scorecarding for manufacturing

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Management now spends more time on strategy andimproving the business. What’s more, operations, salesand customer information can be accessed quickly andconsistently, and shared across the organization toimprove results. The outcome is better quality products,improved performance and a new level of customersatisfaction.

Business background and the case for change

After years of strong growth, Mueller made the decisionto expand from selling to distributors and contractors toproviding products directly to customers. This required adifferent mindset and strategy.

The first step was to implement a Balanced Scorecard,which would set the new direction for management andstaff. In essence, this strategy map would allow thecompany to identify and measure key performanceindicators in four areas: finance, customer service, internalprocess improvements, and learning and growth.

The challenge was to find a platform that would integratethe customer data and metrics, and disseminate theinformation to people across the company in a timely,cost-effective way. So they could in turn make informeddecisions. A performance management solution offeredthe answer.

Mueller selected IBM Cognos 8 Business Intelligence forreporting and analysis, and IBM Cognos Metrics Managerand IBM Cognos 8 Planning to further its scorecard andfinancial planning initiatives.

IBM Cognos Performance Applications were also added.They would allow the organization to fill gaps in itsoperational reporting and gain immediate insights into thehealth of the business.

Business impact

Mueller has seen some big leaps forward in terms ofinformation speed and accuracy. Users have faster accessto standard reports and more thorough sales analysis. Inmany cases, content is delivered in minutes instead ofdays.

Mark Lack says one of the first things managementnoticed is the new level of insight and understandingpeople are sharing in company meetings.

“People in the past would talk about process or strategyand say ‘It would be great to know the percentage of this,or why that happened.’ This kind of discussion wouldhave been either rhetorical or would have to be takenoffline to research. We now pull up the Cognos systemand can find the answers right away.”

What’s more, staff can drill into details and pull togetherdifferent pieces of information to gain dimensional viewsthey never had previously. The insight is a boon todecision-making

“We can find information that we didn’t even knowexisted before,” adds Lack. “People are calling me andasking very advanced, complex questions, which meansthey are looking at the data in new ways.

“We’ve created a much more knowledgeable workforcethat can now act on key information very quickly.”

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Deeper customer insight

By integrating the Balanced Scorecard with financial andoperational reports and scorecards, Mueller is able toanswer key questions such as:

• What type of products are people buying?

• Are customers buying complete metal buildings?Are they buying parts or the entire project?

• What type of customer is buying Mueller products?

Finding the answers not only provides insight in terms ofbusiness performance; it can also help improve customerrelationships. For example, understanding whether thecustomer is a contractor or builder can make a bigdifference in business planning and customer relationshipmanagement efforts.

“If we manage the customer relationship correctly, it willreflect on our business performance,” Lack explains. “Bygaining more control over our information, we’ve createdsome strategic shifts in the way we view customers.

“With the help of IBM Cognos software, the BalancedScorecard has improved our ability to reach out andprovide the level of service the customer requires.”

Award-winning results

Because of its breakthrough performance results, Muellerwas named to the Balanced Scorecard Hall of Fame forExecuting Strategy by the Balanced ScorecardCollaborative.

“The biggest benefit to our organization is the clarity themethodology provides,” Lack explains. “Our scorecardinitiative makes it easier to spot areas for improvement,keep focused on goals and measure progress.”

This clarity inspired an important change in thecompany’s culture. What began as a measurement tool hasevolved into something more, says Lack.

“We use the scorecard to communicate the company’sstrategic objectives and priorities, so that everybody has apart. And they can see what is most important for us tobe doing. While many view it as a measurement tool,we’ve always looked at it as a communication tool firstand foremost.”

For example, a metric that shows the company ismanufacturing a certain number of parts per minute, orper labor hour, tells only part of the story. If the companycan show that by implementing a new process it will havefewer errors and higher quality, the customer is likely tobuy more and have more loyalty.

Quality products, customer satisfaction

In the final analysis, the most important measures ofsuccess are product quality and customer service. Theright information and performance management tools canhelp translate these critical metrics into greater customersatisfaction, higher sales and business growth.

“When somebody puts a beautiful metal roof on theirhouse, and a neighbor comes up and asks ‘Where did youget that roof?’ we want them to say ‘That’s a Muellerroof.’

“There are many companies that sell these kinds ofproducts, but the value we add and the assurance we giveour customers is what brands us as a sign of quality. Soinstead of a metal building, people are buying a Muellerbuilding. And if we can get people to think that, we’vewon.”

13Rapid scorecarding for manufacturing

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Summary

With multiple delivery channels, market specialization,high-profile mergers and acquisitions, growing compliancerequirements and rising operational costs, manufacturingorganizations are increasingly turning to IBM Cognossoftware to help make sense of their high-stakes andcomplex business landscape.

Many of the world’s leading manufacturers alreadychoose IBM Cognos solutions, including 19 of the 20largest consumer packaged goods (CPG) manufacturers,nine of the top 10 high-tech companies and all of the top10 auto makers. For manufacturing organizations, bothlarge and small, we offer:

The Right Technology and Solutions

IBM Cognos integrated performance managementsoftware and services let the world's most progressivemanufacturers:

• Leverage their existing investments by aggregatingdata from transaction systems (SAP, Oracle,Manugistics, etc.) and other sources across theorganization, creating a single, integratedperformance management framework—for rapiddecision-making.

• Analyze customer, product, market and channelprofitability.

• Move beyond cumbersome, error-pronespreadsheets for key plans like sales and operationsplanning (S&OP) with flexible, connected softwareto reconcile sales and demand forecasts with supplychain and production plans, and to test multiplecost scenarios.

• Identify the source of production issues and takecorrective action.

• Comply with legislation (SOX) and regulatoryrequirements (OSHA, EPA).

The Fastest Methods

The IBM Cognos suite of Performance Blueprints to helpmanufacturers quickly address planning and performancemanagement process areas that need attention. IBMCognos Performance Blueprints consist of targeted, pre-built data, process and policy models based on provenbest practices in manufacturing operations, sales,marketing and finance. They include:

• Sales and Operations Planning (S&OP)Performance Blueprint.

• Trade Promotion Management PerformanceBlueprint.

Performance Management Experts

When you make an investment in IBM Cognos software,our Global Customer Services makes a commitment toyou: to bring the full range of our personnel, resourcesand expertise to your deployment to help you achieve thenext level of performance. Our Professional Services,Education and Support services help you acceleratedeployment, promote strong user adoption and increaseyour competitive advantage.

For more information on our solutions for manufacturing,please visit our websites atwww.cognos.com/manufacturing. For more details on oursolutions or to schedule a one-on-one demo, please call 1-800-426-4667.

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15Rapid scorecarding for manufacturing

For more informationFor more information on Cognos solutions formanufacturing companies, please visitwww.cognos.com/manufacturing

About Cognos, an IBM company

Cognos, an IBM company, is the world leader in businessintelligence and performance management solutions. Itprovides world-class enterprise planning and BI softwareand services to help companies plan, understand and

manage financial and operational performance. Cognoswas acquired by IBM in February 2008. For moreinformation, visit www.cognos.com.

Request a callTo request a call or ask a question, go towww.cognos.com/contactme. A Cognos representativewill respond to your enquiry within two business days.

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Westerly Point

Market Street

Bracknell, Berkshire

UK RG12 1QB

NORTH AMERICA

Cognos Corporation

15 Wayside Road

Burlington, MA

USA 01803

(09/08)


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