microsoft office performancepoint server 2007 michael smith director of marketing october 23, 2006...
DESCRIPTION
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…TRANSCRIPT
Microsoft Office PerformancePoint Server 2007
Michael SmithDirector of MarketingOctober 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 EffectiveRequires Support From Integrated Processes & Applications
Planning &Budgeting
ScorecardsDashboards
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
Planning Budgeting
Forecasting
ProfitabilityFinancial
Management
AnalyticsProject
PortfolioAnalysis
Reporting
DashboardsScorecards
PM Requires Broad Functionality & Common Business Definitions
Inconsistent Business Definitions and Business Rules Leads To “Spreadsheet Integration”
Revenue Expenses Margins
ServiceCalls
EmployeeHires
Customers
Time
Produ
ct
Loca
tionIncomplete Set Of
Functionality Leads To Limited Usefulness And Ability To Act On Information
Limited Participation & UsagePM Requires Easy To Use & Cost Effective To Deploy Products
PerformanceManagementApplications
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: Portal and Collaboration: SharePoint 2007SharePoint 2007
Scorecarding, Analytics and Planning:Scorecarding, Analytics and Planning:PerformancePoint 2007PerformancePoint 2007
End-user analysis:End-user analysis:Excel 2007Excel 2007
BIBIPlatformPlatform
Performance Mgt.Performance Mgt.ApplicationsApplications
End-userEnd-userToolsTools
Microsoft Business IntelligenceA Complete Solution
Integration:Integration:SQL 2005 ISSQL 2005 IS
Analysis:Analysis:SQL 2005 ASSQL 2005 AS
Reporting:Reporting:SQL 2005 RSSQL 2005 RS
Data Warehouse:Data Warehouse:(SQL 2005 RDBMS)(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
• 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
• 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
BusinessManagement
Driven
Functional Capabilities
People Empowerment
SuperiorValue
Microsoft’s Approach To Performance Management
PerformancePoint Functionality
Analysis & ReportingAnalysis & ReportingPlanning, Budgeting, Planning, Budgeting, Forecasting & ConsolidationForecasting & Consolidation
Report
Scorecard & DashboardAnalyze
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 RetailerBudgeting
CompanyThe largest book-seller in the world, operating over 800 stores in 50 states
Business ChallengeProducing 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 processManually creation of over 200 Excel forms for different work centers and e-mailing them between various end-users, reviewers, approvers, etc.
TAP Project ScopeStreamline 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 ResultsElimination 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 ProductsPlanning
CompanyMarkets several leading brands of consumer personal care products globally
Business ChallengeImprove financial performance through effective management of revenues and global supply chain inventories and expensesMore effective planning of inventory and stock levels
TAP Project ScopeForecast and analysis of revenue and expenses with integration of syndicated dataAnalysis of manufacturing plant through-put and fulfillment rates
Early ResultsMethod of implementing allocations has made the reporting many orders of magnitude faster than their existing systemImproving data collection for demand forecasts
Global High Tech MfgFinancial Consolidation
CompanyMarket leading manufacturer of telecommunications and networking equipment for IP telephony, contact center and mobile customers
Business ChallengeConsolidation of over 100 legal entities including I/C Reconciliations, I/C Eliminations & Foreign Currency ConversionCurrent system has proven unsatisfactory due to limited functionality and scalability
TAP Project ScopeIntegrated 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 ResultsPre-built business rules for consolidation reduced time and effort at month endExcel front-end enables self-service for business users without programming
Global Fashion/JewelerManagement Reporting
CompanyLeading provider of luxury and mid-range watches
Business ChallengeCurrent system unable to support business need for change and flexibility
TAP Project ScopeTo reproduce the current monthly Flash Report and Statutory Reporting in a more timely, accurate and integrated fashion
Early ResultsRe-produced the monthly Flash report with consolidation and currency conversion faster, with more accuracy and flexibilityFlash 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.