Microsoft Office PerformancePoint Server 2007 Michael Smith Director of Marketing October 23, 2006 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 Effective Requires Support From Integrated Processes & Applications Planning & Budgeting Planning & Budgeting Scorecards Dashboards Scorecards Dashboards Analysis & Discovery 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 PlanningBudgeting Forecasting Profitability Financial Management Analytics Project Portfolio Analysis Reporting Dashboards Scorecards PM Requires Broad Functionality & Common Business Definitions Inconsistent Business Definitions and Business Rules Leads To “Spreadsheet Integration” RevenueExpensesMargins Service Calls Employee Hires Customers Time Product Location Incomplete Set Of Functionality Leads To Limited Usefulness And Ability To Act On Information

Limited Participation & Usage PM 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 PerformancePoint Server 2007

Portal and Collaboration: SharePoint 2007 Scorecarding, Analytics and Planning: PerformancePoint 2007 End-user analysis: Excel 2007 BIPlatform Performance Mgt. Applications End-userTools Microsoft Business Intelligence A 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 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 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 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 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 Business Management Driven Functional Capabilities People Empowerment Superior Value Superior Value Microsoft’s Approach To Performance Management

PerformancePoint Functionality Analysis & Reporting Planning, 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 Retailer Budgeting Company The largest book-seller in the world, operating over 800 stores in 50 states Business Challenge Producing 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 ing them between various end-users, reviewers, approvers, etc. TAP Project Scope Streamline 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 Results Elimination 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 Products Planning Company Markets several leading brands of consumer personal care products globally Business Challenge Improve financial performance through effective management of revenues and global supply chain inventories and expenses More effective planning of inventory and stock levels TAP Project Scope Forecast and analysis of revenue and expenses with integration of syndicated data Analysis of manufacturing plant through-put and fulfillment rates Early Results Method 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 Mfg Financial Consolidation Company Market leading manufacturer of telecommunications and networking equipment for IP telephony, contact center and mobile customers Business Challenge Consolidation 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 Scope Integrated 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 Results Pre-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/Jeweler Management Reporting Company Leading provider of luxury and mid-range watches Business Challenge Current system unable to support business need for change and flexibility TAP Project Scope To reproduce the current monthly Flash Report and Statutory Reporting in a more timely, accurate and integrated fashion Early Results Re-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.