1. © 2007 Altera Corporation—Public Ladder of Business Intelligence LOBI™ Jim Cates Vice President and Chief Information Officer Altera Corporation Microsoft Technology Summit Fairmont Hotel San Jose, CA October 25, 2007

2. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 2 Company Highlights Founded in 1983 High-growth semiconductor company; products include FPGAs, structured ASICs, embedded soft processors, design software, IP, development kits Publicly traded since 1988 (NASDAQ) $1.28 billion in 2006 sales Market capitalization of ~$8 billion 2,600 employees ~15,000 worldwide customers

3. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 3 2006 Total $1.285B Japan 23% Asia-Pacific 27% 2006 Revenue by Geography North America 24% Europe 26%

4. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 4 Agenda Objectives Introduce the Ladder of Business Intelligence - LOBI™ LOBI is a new, non-technical communication framework that can clearly position the value that technology investment can provide to business. Demonstrate how the LOBI framework can be used to create a BU/IT Business Value Roadmap that is customer centric.

5. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 5 Definition: Business Intelligence Business intelligence: 1. Is a process for collecting the relevant data and then transforming it to actionable information in an enterprise 2. Provides a broad category of applications and technologies to deliver the right information to the right people, at the right time 3. Provides decision makers with insights into markets, competitors, partners, vendors, suppliers, and company performance

6. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 6 LOBI™ Triple Business role Business process Technology

7. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 7 Business role Cycle Time to Information (CTI)Cycle Time to Action (CTA) Finding the Balance Fact  Data  InformationInformation  Action

8. © 2007 Altera Corporation—Public The LOBI™ Model

9. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 9 LOBI and Microsoft Visions are Aligned Microsoft People_Ready Vision Enable people to anticipate, innovate, and deliver world-class products and services through enhanced collaboration, integration and analytics LOBI Vision LOBI is a new non technical communication framework that can clearly position the value that technology investment can provide to business.

10. © 2007 Altera Corporation—Public What is the LOBI™ Framework?

11. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 11 People 1. Vision/mission 2. Enterprise roadmap 3. Process teams Process 4. BRIA 5. Process roadmap 6. Gap analysis 7. Cross functional collaboration Technology 8. Technology architecture 9. LOBI level and it budget 10. Technology implementation Circle of Success LOBI framework People Process Technology

12. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 12 High Tech Business Process Expansive View Real world ImplicitUnstructuredCollaborative Exceptions happen Ad hoc Dynamic Manage the interaction with our customers Manage our “secret sauce” Find knowledge rapidly Collaborate with everyone, get things done quickly Integrate with our formal business processes Work anywhere Easily contact and communicate with everyone

13. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 13 People Drive Business Outcomes Innovative Products Profitable Customers Relationships High Value Connections Improved Operations Work with Others Across Boundaries Streamlined Access to Information

14. © 2007 Altera Corporation—Public What is Information?

15. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 15 What is Information? Objective: CTI by business role Experience Data correlation ability Communication skills Integrated data Human intelligence Artificial intelligence Information view Value of information + + =

16. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 16 Cycle time to Action Information/knowledge Business role Cycle Time to Information/Knowledge

17. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 17 Ladder of Business Intelligence BRIA: Information Defined By BR LOBI™ Business Intelligence Framework Facts L1 Data L2 INFORMATION L3 Knowledge L4 Understanding L5 Enabled intuition L6

18. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 18 Ladder of Business Intelligence Definition Objective  Productivity through information delivery by business role and decreased Cycle Time to Information Methodology:  Core process definition  User requirements gathering sessions  Industry best practice research Level 1 Facts Level 2 Data Level 3 Information Level 4 Knowledge Level 5 Understanding Level 6 Enabled intuition S/Sheets Sales forecasting Install base ERP selection Knowledge management Data mining Workflow Business modeling Strategic collaboration Executive insight Role-based UI Customer profiles BI DWH

19. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 19 Ladder of Business Intelligence - LOBI™ Objective:  Improve speed, effectiveness, and efficiency of decision making Methodology:  Business productivity through reducing Cycle Time to Information by business role Level 1 Facts Level 2 Data Level 3 Information Level 4 Knowledge Level 5 Understanding Level 6 Enabled intuition Retrievable organized data Information views targeted by role Operational collaboration Reusable information views Business modeling Brainstorming strategic collaboration Break-through visionary thinking No timely retrieval Disorganized data Business Role Set, Process Set, Technology Set

20. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 20 Strategic investments Value-based IT Investment Model Tactical investment Level - 2 Level - 1 Level - 3 Information Level - 4 Knowledge Level - 5 Collaboration Level - 6 Enabled intuition

21. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 21 Impact of BU/IT Investments IT Sustain/Utility Investments are investments required to keep the infrastructure operating at advertised availability and performance ( 24X7, 99.9900%). Commodities such as SW, HW, networking, telecommunication, security, support of current installed IT systems, redundancy planning IT Organic Growth Investments are investments that are required to upgrade, grow, and expand the business in terms of revenue and productivity. Examples: BPM, increase customer loyalty, automated sales rep, e-business, international reporting upgrade, engineering bug tracking, WW network access IT Transforming Investments are investments that are required to strategically transform the business, such as cutting-edge technologies that support business strategy that enables competitive advantage and market leadership. Examples: Acquisition investment, early adopters of new technologies, Web 2.0 Level 5 and 6 Level 3 and 4 Level 1 and 2

22. © 2007 Altera Corporation—Public BRIA

23. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 23 Business Role Information Analysis Define business role Define 1–10 key questions Information needed to answer questions Data source needed to generate information Do quality data sources exist?

24. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 24 Role Key questions InformationData sources exist? CFO Do I need external funding for next quarter? 1) End-of-quarter P&L 2) Projected next quarter sources and costs 3) Projected next quarter usage and return 1) Cash flow projection 2) Utilization of line of credits and costs 3) Projected portfolio budgets 1) Yes 2) No 3) Yes VP Sales Do I need to add more sales people? 1) Market share 2) Sales person efficiency 3) Sales team capacity 4) Product adequacy in meeting market needs 1) Total revenue sales 2) Sales team performance 1) Yes 2) No VP Marketing Demography TAM Competition 1) What is the demographic profile of region x? 2) What is the TAM for product X? 3) What is our competitors’ market share? Marketing applicationYes BRIA Role Table - Example

25. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 25 BRIA Table 1. Business Role 2. 1-10 impactful business questions 3. Information needed 4. Data needed to generate information 5. Processes needed to generate information 6. Information view format by business role 7. Frequency needed (real, near, periodic) 8. Medium for display (PDA, report, etc.) 9. Technology needed

26. © 2007 Altera Corporation—Public The LOBI™ Organizational Strategy Model

27. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 27 IT Governance Chart Accountable execs Information technology Steering committee PMO Vendor council PMO support Campaign-demand BU process PM Tech PM Financials BU process PM Tech PM Demand – collect BU process PM Tech PM NGS operations council Directors It Project manager HR and self-service BU process M Tech PM NGS core team (process tracks and members to be refined) Information delivery (PM), accountable VP Readiness (PM), accountable director Extended teams Advise Resolve Support Plan, manage, drive Support Guidance Business Int’l rep It SI– onsite – CRM tech SI– offsite Accountable VP Business It SI - onsite SI – offsite Accountable VP Business It SI - offsite Int’l rep Accountable director Business Int’l rep It SI – onsite SI – offsite Accountable VP Apps tech Architecture Apps admin DBA Infrastructure Int’l rep SI – onsite – Tech lead SI – offsite ABAP Accountable VP Accountable

28. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 28 Enable business objectives through an information-centric organization supported by accurate, consistent, timely, secure, and transparent information, flowing seamlessly across the entire value chain and optimized for best business value to make impactful business decisions Vision Strategies Governance Create a governance structure to guide and provide direction and stewardship to creation, assimilation, and disposition of informational assets Information architecture Develop a well defined information architecture and models in support of business objectives Change management Institute change management in the company to successfully implement decisions made by this council Success metrics Information quality and accuracy Key processes Data administration Information lifecycle management FY06 strategic initiatives Enterprise data model; customer and product CDM Information delivery prioritization and roadmap for NGS Policy definition and agreement “Single version of truth,” avoiding information silos Scope and charter Policies and procedures relating to structured data/content Provide direction to investments in informational assets Clearly defined and accepted data ownership Business performance management Information Management Council (IMC)

29. © 2007 Altera Corporation—Public Process Strategy

30. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 30 High Tech Business Process Traditional versus Expansive View Ideal Explicit Structured Transactional Standard Paths Formal Rigid Ideal Explicit Structured Transactional Standard Paths Formal Rigid Real world Implicit Unstructured Collaborative Exceptions happen Ad hoc Dynamic Real world Implicit Unstructured Collaborative Exceptions happen Ad hoc Dynamic

31. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 31 Business Process Architecture Channel management Demand to cash Design win to EOL for customer service New product introduction SalesServiceMarketingEngineeringOperationsFinance

32. © 2007 Altera Corporation—Public How Microsoft Technology Can Help You Climb LOBI™

33. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 33 Ladder of Business Intelligence – Microsoft Definition Objective  Productivity through information delivery  by business role and decreased Cycle Time to Information Methodology:  Core process definition  User requirements gathering sessions Microsoft Office Suite - Excel, Project Level 1 Facts Level 2 Data Level 3 Information Level 4 Knowledge Level 5 Understanding Level 6 Enabled intuition Executive insight MS Dynamics - Dynamics CRM - FRx report manager Knowledge Management - MS SharePoint - Portal, Doc. Mgmt., etc. - Groove – Collaboration - MS Live Meeting Strategic Collaboration - SharePoint - DesignWin - Siebel integration MS Biz Intelligence - Biz Score Card Mgr - MS Analysis Service - MS Duet - MS Search Engine - eDiscovery

34. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 34 Microsoft Office Suite - Excel, Project Level 1 Facts Level 2 Data Level 3 Information Level 4 Knowledge Business applications - SAP, Siebel - PeopleSoft, i2 - MS SQL Server Knowledge management - MS SharePoint - Wikis - Documentum - NetMeeting, WebEx Strategic Collaboration - eRoom - MS SharePoint - DesignWin - Siebel integration Level 5 Understanding Level 6 Enabled intuition Business intelligence - SAP BW, Panaroma - MS analysis service - MS duet - Google Ladder of Business Intelligence – Altera Definition Objective  Productivity through information delivery  by business role and decreased Cycle Time to Information Methodology:  Core process definition  User requirements gathering sessions  Industry best practice research Executive insight

35. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation 35 LOBI triple: people, process technology CTI: cycle time to information Top 10 questions: what are the top 10 questions that need to be answered for a business role? CTA: cycle time to action CTK: cycle time to knowledge BRIA: business role information analysis Summary: Top LOBI™ Concepts LOBI Concepts

36. © 2007 Altera Corporation—Public Jim Cates Climbing the Ladder of Business Intelligence Thank You! www.happyabout.info/climbing-ladder.php Contact: jcates@altera.com