1. Beyond the Hype 2005 Ivor Herman, Managing Director, BPM Partners April 19, 2005 Business Performance Management

2. BPM: Uniting Business and IT  BPM Definitions  Business/IT Challenge  Vendor Trends  Customer/Prospect Trends (BPM Pulse Survey)  Vendor Choices  Q & A

3. Common Definition of BPM  BPM is a set of integrated, closed-loop management and analytic processes, supported by technology, that address financial as well as operational activities.  BPM is an enabler for businesses in defining strategic goals, and then measuring and managing performance against those goals.  Core BPM processes include financial and operational planning, consolidation and reporting, modeling, analysis, and monitoring of key performance indicators (KPIs) linked to organizational strategy. The BPM Standards Group, March 2004

4. Core Processes & Technology ERP, CRM, SCM Other Legacy Systems Data Ware houses Spread- sheets, Office docs Related Analytic Apps External Data Extract, Transform, and Load - Strategize Metrics builders Strategy mappers Objective and goal setters Plan Budgets Capacity and HR Plans Forecasts Process Modeling Monitor and Analyze Consolidation Reporting Multi- dimensional analysis Scorecards Corrective Action Alerts Target Management Report and Query Tools, Portals, Collaboration, Dashboards User Interface Source Data Database Applications Enabling Technologies BPM Datamart Relational and Multi-Dimensional Structured and Unstructured Data Flow BrowserSpreadsheets Actual & Plan Data Source: BPM Standards Group – Core Technology Framework Other Interfaces

5. Definitions  BI is essential to BPM, but BI also exists outside of BPM  BPM and Data Warehousing share the creation of a common data repository, but BPM adds new data (the plan) and domain specific processes. BPM leverages the data warehouse.  BPM+ BPM + BAM are important, stand-alone, complementary disciplines.  Business Process Management is focused on optimising operational processes. Business Performance Management is focused on executing strategy.

6. Definition: Metrics vs. KPIs  ‘The number of people who attended conferences BPM Partners presented at this year’  Metric or KPI?  ‘The percentage of conference attendees who became customers of BPM Partners’  Metric or KPI?  Metric: Measurement of a business activity  KPI: A metric that is tied to strategic business drivers and is actionable  You will have many metrics, but few KPI’s

7. Business/IT Challenge “Being in IT for more than 12 years until recently I understand the IT folks focus on what tools or technologies are the coolest and will make them more marketable. They really care less about what the business community actually needs. Instead, IT likes to dictate to the business community what tools they should use and how the implementation should be done. That's why the majority of the BI/DW projects run by IT failed.” IT Toolbox Forum February 2005

8. Business/IT Challenge  BPM is about key business processes  A dashboard is a display of KPIs  BI is an enabling technology  A data warehouse can feed BPM  Projects often led by Finance  Must combine IT’s technology and project management skills with Finance’s business knowledge to succeed

9. Vendor Trends  Battle for Market Share -Management changes -New CEO’s, Senior Teams, -Increased sales forces -Aggressive tactics -Over selling -Threatening to ‘walk’ -Negative selling -Lawsuits -Product changes -Upgrade by acquisition, improved integration, verticalisation

10. BPM Pulse Survey  Conducted September – December 2004  Not vendor-sponsored  200 Valid Responses  Across all industries and geographies, largest group of respondents in North America  Roughly equal mix of small, medium, and large companies  Heavy concentration of finance (vs. IT) respondents

11. BPM Status BPM Pulse Survey 20042005

12. Reasons to Move Forward BPM Pulse Survey 2005

13. BPM Components BPM Pulse Survey 2005

14. Project Manager BPM Pulse Survey 2005

15. BPM Vendors: End User Ratings  BPM Pulse Survey Rating –‘For each vendor involved in your solution rate the level of satisfaction’ –1=low, 5=high –20 vendors listed 0 to 2.42.5 to 3.43.5 to 5.0

16. BPM Vendors: End User Ratings  Reasons for Lower Ratings –Wrong product/oversold –Unrealistic requirements/expectations –Vendor style –Implementation issues –Product quality and performance 0 to 2.42.5 to 3.43.5 to 5.0

17. BPM Vendors  The Core 7 –Complete solutions –Robust functionality –Field validated –BPM focused  Dashboards  Tools+

18. Core Vendor: Cartesis Cartesis ■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: With its change in ownership and the introduction of a budgeting module early last year, Cartesis will emerge stronger than ever. The firm is particularly capable in global consolidation and Sarbanes-Oxley compliance, and it no longer has to address the issue of being owned by an audit firm. 3.2

19. Core Vendor: Cognos Cognos ■■■■■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: Cognos has strengthened its position in the past year with the acquisition of Frango. This brings its consolidation capabilities up to the level of its budgeting capabilities. Combined with its powerful business intelligence tools, this makes Cognos a formidable vendor across the board. 3.7

20. Core Vendor: Geac Geac ■■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: One of the leading unified BPM application vendors, Geac gained a strong budgeting capability through the acquisition of Comshare. Geac uniquely includes an expense management application (Extensity) as part of its performance suite. Their strategic planning functionality enables them to deliver on the promise of BPM: from strategy to execution. 3.3

21. Core Vendor: Hyperion Hyperion ■■■■■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: Hyperion has been listening to its customers as well as the market. In the past year, it has introduced Hyperion Hub (now supplemented by Razza Solutions), which goes a long way toward reducing product integration issues at the metadata level. In addition, the company has introduced a new, massively scalable version of Essbase to better compete with the likes of Microstrategy. 3.4

22. Core Vendor: Longview Longview ■■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: This highly scalable solution gets high marks from its customers. The once quiet company is now actively marketing its solution and partnering with consulting companies to extend its reach in the market. As one of the few truly unified solutions, Longview can effectively compete with the big guys. 3.5

23. Core Vendor: OutlookSoft OutlookSoft ■■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: OutlookSoft is growing rapidly as the demand for unified solutions increases and as the acceptance of the Microsoft platform it is based on also grows. The newest focus area for this vendor is predictive analytics. 3.8

24. Core Vendor: SRC OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: This vendor has a unique implementation model that involves experts at company headquarters in every project. This has resulted in a very happy customer base. In addition, SRC has successfully focused on the financial services and healthcare verticals. SRC ■■■ ■■ Insufficient data for BPM Pulse Rating

25. Dashboard Vendor: ActiveStrategy OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: Offering both a hosted edition and an enterprise edition, ActiveStrategy provides intuitive, Web-based scorecarding than can adapt to any scorecard framework. The services organization has deep expertise in scorecard design and strategy management. Active Strategy ■■■■ Insufficient data for BPM Pulse Rating

26. Tools+ Vendor: Applix Applix ■■■■■■■■ OLAP R&Q ETL Anl Bud Cons Met Port Global Refs Snapshot Comments: Applix, known for its high-performance TM1 OLAP database, has added components that make it more than just a tools vendor. In fact, what it offers is a BPM platform. The TM1 engine plus its planning manager will speed up companies on their way to developing a custom budgeting solution. 4.1

27. What do you do now?  Vendor Search Tool www.bpmpartners.com/vendor_search.shtml  BPM Jan. 2005 Buyer’s Guide  BPM Self-Assessment Audit www.bfmag.com/bpm  BPM Pulse Survey www.bpmpartners.com/bpmcentral_whitepapers.shtml  BPM Assistance (from requirements to results) www.bpmpartners.com/special_packages.shtml www.bpmpartners.com

28. Contact Information Ivor Herman Managing Director, BPM Partners www.bpmpartners.com iherman@bpmpartners.com

29. Q&A Questions and Answers