 2007 Metastorm Confidential Powering Enterprise Process Advantage ® Metastorm Strategy to Execution with BPM Kevin Haugh, Senior Director of Product Marketing and Management

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 2 Agenda Overview of Key Business Challenges What does from Strategy to Execution Mean? A Financial Services Example

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 3 3 The Ineffective (Typical) Organization-- Harris Poll of 23,000 Employees 37% have a clear understanding of what their organization is trying to achieve and why 20% are enthusiastic and have a clear insight to their team’s goals 15% felt they worked in a high trust organization 10% felt their organization held people accountable for results 13% felt they worked and communicated well with other departments or groups

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 4 4 What if that was a Football Team 4 out of the 11 would not know which bench is theirs 9 of the 11 would not even care 9 of the 11 would not know what their position and role are on the team 10 of the 11 would be competing with each other rather than the other team Is that a team you would like to be on?

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 5 Most IT Projects “Fail” to Some Degree According to one study: Over 60% of IT Projects Fail ( budget overrun at least 30%, schedule overrun by at least 30%, end product did not meet user expectations –lack of senior management commitment –lack of user involvement –lack of user requirements specifications –poor project planning –project team problems University of Maryland

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 6 Organizational Size and Complexity Brings Major Business Challenges Size/Complexity Efficiency and Effectiveness Poor Organizational Alignment (goals, strategies and tactics) Information Loss / Miscommunication Lack of Collaboration and Coordination Organizational Silos (business, IT, etc.) Duplication of Resources (technology, people, etc.) Duplication of Effort Rigidity / Lack of Agility Slow Execution Subpar Business Results

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 7 Another View of the Underperforming Organization Goal n People Process 2 Systems and Other Assets Goal 3Goal 2Goal 1 Process 1 Process n People Systems and Other Assets

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 8 Gartner’s View on High Performing Organizations According to research firm Gartner, high performing organizations (HPOs) share five characteristics: Set ambitious targets and consistently and continuously achieve those objectives. Display a strong sense of purpose through shared values both inside (among employees) and outside the organization (among customers, suppliers, and other stakeholders). Have a strategic focus and alignment so that employees know how they are contributing to the results of the organization. Have the agility to adapt to changing circumstances quickly. Have a common and shared business model throughout the organization.

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 9 9 The Impact of Aligning Your Employees with Corporate Objectives Source: Watson Wyatt’s WorkUSA® Survey Companies see a 4X return when their employees are aligned with corporate objectives 5% 21% Employees Disconnected From Goals Employees Connected to Goals Three-year Total Return to Shareholders

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 10 BPI Can Deliver Dramatic Reductions in Organizational “Drag” to Deliver Superior Business Results Size/Complexity Business Efficiency and Effectiveness Better Organizational Alignment (goals, strategies and tactics) Less Information Loss / Miscommunication More collaboration Less Duplication of Resources (technology, people, etc) Less Duplication of Effort Greater Agility Faster execution Superior Business Results – Higher Growth, profitability and speed of execution

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 11 Organizational Transparency and Alignment – Supports BPI Organization Goals/ Strategies People Assets Processes System and Other Assets The Enablers DiscoveryEABPABPM

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 12 Who Is Metastorm? Market leader across 3 critical BPI software sectors: –Enterprise Architecture (EA) –Business Process Analysis (BPA) –Business Process Management (BPM) Strong global presence –1100+ customer organizations in 109 countries Profitable and stable long-term partner Proven products and expertise with established local partners and global distribution network Only software provider to bring together robust EA, BPA, and BPM on single platform Unmatched customer success worldwide Well positioned for future growth and continued product innovation

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 13 An Example – Aligning Strategy with Execution Business Goals Increase Revenue Improve Margins Strengthen Compliance Safeguards Challenges Paper-intensive and manual client onboarding process Duplicate processes and systems across multiple product lines Multiple, disparate legacy systems Requirements for risk assessment and regulatory compliance No visibility into application process Rapidly changing/consolidating industry Financial Services Company – Multi-line

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 14 Enterprise Architecture – Understand the Enterprise Understand the Enterprise Business Goals Key Systems Key Processes Resources Areas for Possible Improvement

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 15 BPA - Analyze Possible Improvement in the Process Single, faster onboarding process for all product lines Process Improvement in key elements –Data Collection, Blacklisting, Due Diligence, etc. Legacy System Integration

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 16 The Improved Process Starts Enter “clean” new account info – passed to all systems Track/Manage Process

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 17 The Process Continues…. ID Verification Blacklist Check Risk Assessment

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 18 The Process is Completed Final Due Diligence Diligence Approvals Client Communication

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 19 Process is Monitored/Measured…and the Cycle Starts Over Process Insight Business Results Insight

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 20 The Business Results and Benefits Faster And Less Costly Process Key Systems Key Processes Resources Areas for Improvement ResultBusiness Benefit Clear understanding and alignment of enterprise Ability to identify “business aligned” improvement opportunities and analyze options/ impact Faster, consolidated onboarding process Improved revenue (via faster onboard, improved customer sat) More efficient / less costly process with reduced error rates Higher corporate margins Ensure lower risk businessHigher corporate margins Higher rate of regulatory/ legal compliance Reduced risk of lawsuits and regulatory fines Clear insight into process resultsAbility to monitor against goals SimulationAbility to quickly model and execute process improvements

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 21 Thank you

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 22 Our Product Strategy is Driving Industry Thinking “BPM and SOA will usher in an era where business users and IT will use declarative, model driven approaches for managing work, resulting in applications that require little or no coding.” Gartner BPM Magic Quadrant 2007 “As a best practice, organizations are defining business processes, events and workflows in BPA tools and bridging this information into IT modeling tools and BPMSs where more-detailed software and data service analysis, design and development occurs…. BPA is also becoming a starting point for BPM projects and compliance activities.” Gartner BPA Magic Quadrant 2007 “EA Tools Are No Longer Just For Enterprise Architects….More Types Of Information, More Types Of Users” Forrester Wave, EA Tools 2007 “In its next evolutionary stage, EA will morph into a tool to implement business strategy. EA will be redefined to break out of its IT centric role to govern the interaction of all units and assets in an organization. It will create business value through effective collaboration amongst business partners and customers.” Enterprise Architecture Survey 2007.

 2007 Metastorm Confidential. Powering Enterprise Process Advantage ® 23