forrester perf mgmt 012009

8/3/2019 Forrester Perf Mgmt 012009

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Making Leaders Successul Every Day

Jaa 20, 2009

Bsess Peoace Sotos:Cash O The Ttasb Pa D. Haea

o Bsess Pocess & Appcatos Poessoas
http://www.forrester.com/


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2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Inormation is based on best availableresources. Opinions refect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective companies. Topurchase reprints o this document, please [email protected]. For additional inormation, go to www.orrester.com.

Fo Bsess Pocess & Appcatos Poessoas

Includes a market sizing orecast

ExECuTivE SummAry

Business perormance solutions (BPS) a soware category consisting o applications or budgeting,

orecasting, nancial reporting, protability analysis, and perormance measurement has seen dramatic

growth and vendor consolidation over the past two years. Te growth prospects or this space remain

bright, despite the near-term impact o the recession, driven by strong interest in strategy and perormance

measurement. Forrester expects BPS soware revenues to grow by 12.7% through 2012, growing rom its

current size o $2 billion to $3.2 billion during this timerame. Six large vendors IBM, Inor, Microso,Oracle, SAP, and SAS Institute dominate this market, while a number o business intelligence (BI),

enterprise resource planning (ERP), specialists, and BPS pure plays oer a variety o interesting alternatives.

TABlE OF COnT EnTSBusiss Prormac Solutios Moitor Th

Puls O A Orgaiatio

Th Rcssio Will Ol Tmporaril Slow BPS

Growth

BPS Vdors Com I All Shaps Ad Sis

rECOmmEnDATiOnS

Lar From Bst Practics To Avoid

Implmtatio Riss

WHAT iT mEAnS

Mart Cosolidatio Lavs Th Door Op

For Iovatio

Supplmtal Matrial

nOTES & rESOurCESThs eseach s based o eos cet

qes, as we as ogog begs ad

dscssos wth BPS edos, cdg Actate,

Adapte Pag, Boad iteatoa, Cat

Sstes, Host Aatcs, iBm Cogos, io,

lawso Sotwae, logew Sotos, mcosot,Oace, SAP, SAS isttte, ad Tagetk.

Rlatd Rsarch Documts

measg Ad Agg Bsess Peoace

Ap 2, 2008

The Foeste Wae: Bsess Peoace

Sotos, Q4, 2007

Octobe 10, 2007

Bsess Peoace Sotos: The

Copetto Heats up

Feba 7, 2007

Jaa 20, 2009

Bsess Peoace Sotos: Cash O The TtasThe maket reas vbat Foowg vedo Cosodato

b Paul D. Hamrmawth Ke mcnabb ad megha Doe

2

5

9

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15

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mailto:[email protected]://www.forrester.com/http://www.forrester.com/go?docid=41621&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=41395&src=46571pdfhttp://www.forrester.com/go?docid=41395&src=46571pdfhttp://www.forrester.com/go?docid=41395&src=46571pdfhttp://www.forrester.com/go?docid=41395&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=41621&src=46571pdfhttp://www.forrester.com/http://www.forrester.com/mailto:[email protected]


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2009, Foeste reseach, ic. repodcto PohbtedJaa 20, 2009

Bsess Peoace Sotos: Cash O The Ttas


2

BUSIneSS PeRFORMAnCe SOLUTIOnS MOnITOR THe PULSe OF An ORGAnIzATIOn

Business perormance management consists o a set o processes, rameworks, and systems or

activities such as planning, measuring, communicating, and monitoring business results (see

Figure 1). Enterprises typically link these activities to corporate strategies and objectives and might

drive them down to many individuals within the organization to encourage accountability and

control. Forrester denes business perormance solutions as a category o purpose-built soware

applications that support these activities.1 Te major BPS unctional elements include:

Strategy and perormance measurement address goals, objectives, and accountability.Astrategy management application supports ormal strategy management philosophies (e.g., the

Balanced Scorecard) but might be adapted to a business specic needs. Applications oen display

the strategy denition in visual strategy maps. Scorecards measure progress against the goals and

objectives set orth in the strategy ramework. Perormance dashboards display more detailed

inormation and allow drilling down to root-cause detail. Dashboards typically include a varietyo key perormance indicators (KPIs) that might include strategic scorecards as well as relevant

comparisons against plans, budgets, orecasts, prior perormance, and industry benchmark data.

Planning, budgeting, and orecasting solutions support multiple orward-looking processes.Although used almost universally as a control on spending, budgeting oen alls short in

supporting perormance initiatives oen the result o a rigorous and inexible process, not

due to a soware shortcoming per se. Fortunately, in addition to budgeting, the planning

solutions support a variety o scenario-based planning activities as well as orecasting processes

that add value beyond that provided by traditional budgeting processes.

Cost and protability management provides detailed analysis to improve margins.Tiscomplex modeling activity helps organizations analyze development, production, and operating

costs against revenues by product, customers, and lines o business. Cost and protability

management applications oen use activity-based costing as the methodology to develop

sophisticated cost and protability analytical models.

Financial reporting and consolidation produce nancial statements. Financial reporting andconsolidation applications produce reports ocused on delivering nancial statements based

on accounting results. Statutory consolidations support regulatory compliance and generally

accepted accounting principles (GAAP) requirements. Tese applications also support internal

reporting o nancial inormation.

Although the unctional elements described above align primarily with nance processes,

enterprises can use strategy and perormance measurement, as well as orecasting, to support

all areas o the business. Many BPS product portolios oen include purpose-built perormance

management applications or nonnance areas including human resources (HR), operations,

supply chain, sales, and I. All types o businesses and government organizations use BPS products,

although considerable extension and adaptation to business requirements is oen required.


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2009, Foeste reseach, ic. repodcto Pohbted Jaa 20, 2009



3

Figur 1 Bsess Peoace Sotos Footpt

Orgaiatios Fac A Uphill Battl With Busiss Prormac Procss excutio

Adopting a strategically aligned and perormance-driven culture is easier said than done. Perormance-

driven enterprises need more timely support than traditional management processes includingbudgeting and accounting oen provide. Similarly, planning and measurement processes based

on labor-intensive methods (e.g., spreadsheets) are not responsive enough to run the business.

Business perormance initiatives suer rom implementation and execution challenges ranging rom

culture and organizational alignment to technology integration and project execution. ypical BPS

implementation challenges include the ollowing:

Strategies and execution processes are misaligned. All reasonably successul businesses havea strategy, but oen do not support their strategies with processes or communicating, aligning,

and executing them. When business units and departments lack a ormalized perormance

measurement system aligned with strategy, they develop their own perormance measurementsand reporting mechanisms. Te result: a great deal o eort expended, but company goals and

objectives are under-realized.

Financial accounting and budgeting processes move more slowly than the business.Financial inormation, a critical component o business perormance inormation, enables the

visibility o revenues, expenses, protability, and assets across various organizational dimensions.

Source: Forrester Research, Inc.46571

User experience

Dashboards Scorecards Spreadsheets

BPS application components

Business intelligenceplatforms and

integration toolsERP systems

Configuration tools for processes and business models

Financial reportingand consolidation

Strategy andperformance measurement

Planning, budgeting,and forecasting

Cost and profitabilitymanagement


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4

Yet problems with the complex procedures and batch interaces required to close the books

along with lengthy budget preparation cycles diminish the actionable value o the inormation.

Improvement initiatives ace cultural resistance and unanticipated behaviors.Any initiativeto drive change in an organization, even i mandated rom the top, aces natural resistance. Te

phrase you are what you measure highlights the proound impact o measurements on human

behavior.2 o gauge their true behavioral impact, organizations must put measurements into

play, requiring trial-and-error tweaking. Measurement systems present challenges, particularly

when they aect compensation and, potentially, job security.

Business perormance questions go unanswered, even with the best technology.A multitudeo technology challenges hinder delivering perormance inormation. One o the biggest

challenges, data integration, must collect inormation residing in a number o transactional

systems. Even when the systems can successully assemble inormation on a BI platorm, the

daunting task o eective inormation delivery remains. Business stakeholders must willingly

engage in the process o shaping the business models and rameworks that drive the delivery o

results. Tereore, I-led initiatives to build and deliver perormance management solutions are

doomed to ail without strong business-driven alignment.

BPS Pacags Ot Rplac Homgrow Solutios

An organization with a strong internal BI I talent pool and a robust BI inrastructure will likely

have developed customized business perormance systems, particularly to address business

perormance measurement and orecasting requirements. Companies with very limited resources

still rely primarily on spreadsheets and basic tools or business perormance reporting and analysis.

Tese approaches have worked well or some organizations, but requently require labor-intensivemaintenance and lack desired levels o exibility.

BPS packages oer a level o congurability that puts control more squarely into the hands o

the business stakeholders. Tese solutions typically provide more business process control and

accountability than homegrown solutions, as well as starter kits containing best practices and

prebuilt unctionality. Despite these user-driven advantages, Is role remains critical or integrating

and managing the underlying inormation. Enterprises seeking BPS support should look or:

Compelling graphics and user interace eatures.While some products rely heavily on a

signature graphical paradigm, such as uel gauges, customers need a selection o graphical looksto suit the inormation context. End users should have the ability to personalize the presentation

o the graphical content by selecting the visualizations (e.g., symbols, colors, and charts) that

bring the inormation to lie.

Breadth o inormation. Te extent to which a BPS vendor embeds a comprehensive analyticaldata model dierentiates many products. Te data model should represent the ull breadth o


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5

the business, rom nance to sales and operations, as well as supporting a variety o business

types. Te solution should also enable organizations to compare certain KPIs to industry

metrics via connections to external content publishers.

Flexibility and extensibility. Every enterprise has a combination o needs ranging romcommon to unique, so the exibility o the product to be congured (not customized) with

nonstandard measurements is essential. Te business problems to support, rom budgets, to

orecasts, to protability analysis, depend on the business users abilities to model attributes

such as hierarchical structures, mathematical ormulas, and timerames.

Openness or integrating multiple data sources. Te product needs to be open at the data levelto analyze inormation rom multiple systems. Vendors typically embed or work with leading

data integration and extract, transorm, and load tools to manage the diversity o data inputs

to the system. Te measurement applications ideally should allow access to underlying details

within the data through drilling into the source data.

Support or measurement rameworks. Enterprises oen nd best practice measurementrameworks useul as predened structures within the BPS tools. For example, several tools

provide support or Balanced Scorecard rameworks and may be certied as compliant by the

Balanced Scorecard Collaborative organization.

THe ReCeSSIOn WILL OnLy TeMPORARILy SLOW BPS GROWTH

BPS has strong long-term growth prospects, but this soware category is not immune to the

recession that we expect to continue well into 2009. otal soware revenues (licenses, maintenance,and subscriptions) will grow by 12.7% compound annual growth rate (CAGR) through 2012

rom $2 billion in 2008 to $3.2 billion in 2012 (see Figure 2). We based our market size estimate

on our analysis o individual vendor product revenues and momentum. In analyzing the revenue

components, we nd:

License revenue will see a slight decline in 2009, ollowed by a strong recovery. Terecessionary impact is maniested primarily in license revenues, due to reductions in I

spending. Ironically, soware or managing budgets and orecasts, mission-critical in times

o intense economic pressure, make up a signicant portion o this market. Enterprises

will struggle to justiy upgrading planning and analysis soware in the middle o the crisis.

Following a slight 2009 decline, licensing will return to strong levels or 2010 and beyond.

Maintenance is substantial and sustainable. Due to the maturity o the BPS market,particularly or planning and nancial consolidation applications, application maintenance

ees provide a strong recurring revenue base. Maintenance revenues will continue to grow as

new licenses and automatic contractual increases are added to the base. Since maintenance


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6

represents more than hal o the total BPS product revenues (54%), it will sustain overall growth

or the segment even in this challenging macroeconomic climate.

Subscriptions will grow as the market gravitates toward sofware-as-a-service (SaaS).Soware subscription revenue, including SaaS, currently makes up a relatively small component

(8%) o total BPS revenues. But subscription revenue will grow at a 15.7% CAGR during the next

ew years. SAS Institute currently generates the bulk o the subscription revenue in this space

today, although enterprises deploy its applications on-premise. SaaS vendors in this space

including relatively small companies like Adaptive Planning and Host Analytics will see good

uptake as this deployment model moves toward becoming the mainstream in BPS. Within three

years, customer demand or the SaaS consumption model will compel larger BPS vendors to

introduce SaaS oerings.

Figur 2 Foecast: Goba BPS maket Gowth 2008 To 2012


The spreadsheet detailing this forecast is available online.

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Revenue(US$ millions)

2007 2008 2009 2010 2011 2012

Total revenue (millions)

$139

$974

$670

$1,783

$155

$1,082

$744

$1,981

$183

$1,223

$737

$2,142

$222

$1,407

$840

$2,468

$266

$1,632

$940

$2,838

$289

$1,893

$1,053

$3,235

Subscription revenue

Maintenance revenue

License revenue

15.7%

14.2%

9.5%

12.7%

(numbers have been rounded)

CAGR

Subscriptionrevenue

Maintenancerevenue

Licenserevenue

Actual Forecast

Sources: Company reports, Hoovers, and Forrester estimates.


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7

Stratg Ad Prormac Masurmt Solutios Lad BPS Compot Growth

Te traditional nance components planning, budgeting, and orecasting and nancial reporting

make up 39% and 28%, respectively, o BPS product revenues. Strategy and perormance

measurement (25%), however, has the highest growth rate at 18%, as companies move toward more

comprehensive enterprise perormance initiatives (see Figure 3). Considering each o the our

component categories individually, we nd:

Forecasting has moved to the oreront as a growth driver or the planning category.Demand remains strong (11% growth through 2012) or planning, budgeting, and orecasting

solutions, which enable companies to support a range o planning processes. Forecasting is a

more nimble planning vehicle than either budgeting or structured nancial planning models

(e.g., or mergers and acquisitions). In act, exible orecasting models, which organizations

can build or various aspects o the business, drive many deals to help companies cope with

economic uncertainty and market volatility.

Financial reporting and consolidation is largely a replacement market. Public companieswith multiple subsidiaries and lines o business use these applications primarily or external

reporting and statutory compliance. As a mature category, maintenance sustains its 10% growth

rate, but legacy product replacement and stopgap solutions uel licensing. Regulatory ling

requirements, adoption o eXtensible Business Reporting Language (XBRL) as an open standard

or rendering nancial statements, and adoption o international accounting standards (i.e.,

International Financial Reporting Standards) drive growth or this mature segment o BPS.

Strategy and perormance measurement systems have the highest growth potential inBPS. Many organizations already measure business perormance across the enterprise using avariety o metrics and KPIs, but technology capabilities oen lag managements need or this

inormation. Te desire to ormalize measurement processes, supported by incentive rewards,

contributes greatly to our orecasted 17% growth or this segment, a trend that parallels the

rapid uptake o human capital management applications or employee perormance.3 Te

incorporation o risk management measurement rameworks (key risk indicators [KRIs]) to

help companies anticipate the negative consequences o unusual events will also drive growth.4

Cost and protability management is making a comeback. Current economic conditionsinspire renewed interest in closely managing costs and protability. Tough relatively small (8%

o BPS), this category has a healthy growth trajectory o 13% through 2012. Companies willdemand these tools to help them understand their most protable products and customers, and

which water down prot margins. Adopters o these tools may benet rom expert guidance in

constructing the models, which soware suppliers oen provide.


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8

Figur 3 BPS Seget Aass


2008 BPS segmentation by product category3-1

2008 BPS segment growth3-2


39%

Financial reporting28%

Strategy andmeasurement

25%

Cost andprofitability

8%

(numbers have been rounded)

Source: Company reports, Hoovers, and Forrester estimates.

18%

13%

11%

10%


Cost andprofitability


Financial reporting


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9

BPS VenDORS COMe In ALL SHAPeS AnD SIzeS

Four o the largest inormation technology vendors in the world dominate the current BPS market

IBM, Microso, Oracle, and SAP. A stunning market consolidation took place in 2007, when SAP,

IBM, and Oracle acquired three major BI and BPS vendors Business Objects, Cognos, and

Hyperion, respectively. Tese BI vendors were also among the leaders in BPS at the time they were

acquired, and BPS assets actored heavily in these multibillion dollar acquisition transactions.

Microsos entry into this market occurred in the same timerame, largely through internal

development eorts o Microso Ofce PerormancePoint Server 2007. wo additional major BPS

players Inor and SAS Institute have annual revenues exceeding $2 billion, putting them

among the largest soware vendors. Tese top six vendors currently account or approximately 70%

o the overall BPS market in terms o soware revenues (licenses, maintenance, and subscriptions).

expct Mor O Th Sam: Mart Cosolidatio Is Familiar Trritor Withi BPSPrior to the large BI acquisitions, the BPS market had been consolidating or several years. Many

enterprise users o BPS still use the ormer brand names o the products they use, making a

genealogy chart useul or those trying to identiy what theyve licensed (see Figure 4).

Figur 4 Bsess Peoace Sotos vedo Geeaog, 2002 To 2008


Oracle SAP IBM Microsoft Infor SAS Institute

Hyperion

Siebel

PeopleSoft

InterlaceSystems

UpStreamSoftware

RazzaSolutions

Decisioneering(Crystal Ball)

Geac/Extensity

SystemsUnion

Comshare

Cognos

Applix

Adaytum

Frango

OutlookSoft

PilotSoftware

BusinessObjects

ProClarity ABCTechnologies

FRx Software

Stratature

Dundas DataVisualization

Cartesis

ALGSoftware

SRCSoftware


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10

Earlier transactions included in this roll-up include SAS Institutes acquisition o cost and protability

specialist ABC echnologies in 2002, and Cognos acquisition o budgeting and planning vendor

Adaytum in 2003. Several deals occurred just months prior to the larger BI acquisitions, including

SAPs acquisitions o OutlookSo and Pilot Soware in 2007, and Cognos acquisition o Applix justtwo months prior to the IBM-Cognos deal announcement in November 2007.

Whereas IBM had no pre-existing BPS assets to rationalize with Cognos, SAP and Oracle had more

overlaps to resolve. Each had to decide which products to lead with and which to put on lie support.

Oracles clear choice was to lead with the Hyperion BPS products, while SAP chose a mix o assets

between its portolio (e.g., OutlookSo and Pilot Soware) and those o Business Objects (e.g., ALG

Soware and Cartesis).5 While vendors have well-dened road maps at this stage, the integration

and harmonization work continues.

BPS Ofrigs Fall Ito Four Tps O Vdor Bucts

Te types o vendors oering BPS products range rom the technology giants to small, specialized

vendors (see Figure 5). Breadth o coverage o the our main BPS unctional components varies

widely, and has no correlation to overall vendor size, as shown in the more detailed vendor guide

(see Figure 6). Tese categories and key vendors are described below.

Diversied technology leaders battle or supremacy.Te our technology giants in thiscategory, as mentioned previously, control the lions share o this market. Each o these vendors

can provide standalone BPS solutions as individual products or suites, and can also align these

products with their major technology assets in applications and platorms.

ERP vendors ocus on their applications base. Inors Perormance Management solution,ormerly a best-o-breed product (Geac/Comshare), has some traction independent o its

diverse ERP applications installed base. However, Inor most oen provides it as a cross-

sell or upsell to complement its core applications. Lawson generally sells its budgeting and

dashboarding products to its ERP base. Te outlier in this category, Longview Solutions,

operates as an independent unit ocusing on larger customers, while its parent company, Exact

Soware, ocuses on the small and medium-size business (SMB) ERP market.

Business intelligence vendors emphasize platorms and tools.SAS Institute is the onlymember o this group that oers a comprehensive set o BPS oerings. While the SAS oerings

are well-integrated with one another, it is also the leading player in cost and protabilitysolutions as a discrete oering. Te other three BI vendors listed Actuate, Inormation

Builders, and MicroStrategy ocus their BPS eorts on enterprise perormance and strategy

measurement, with less emphasis on the nancial domain components.

BPS pure plays ocus on market niches. Vendors in this category range rom comprehensiveBPS to point-solution providers, yet share a common strategy to dierentiate themselves rom


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11

the larger market leaders. European-based Board International (Switzerland) and agetik

(Italy) now seek growth in other markets, including the US. Clarity Systems has a strong

budgeting and planning solution along with a dierentiated external nancial statement and

regulatory product, Clarity FSR. Adaptive Planning and Host Analytics provide SaaS solutionsin an historical on-premise market. PROPHIX Soware oers a budgeting and perormance

management solution or SMBs. Specialist vendors in this bucket include Acorn Systems (cost

and protability) along with many others.

Figur 5 BPS vedos B Tpe


Diversifiedtechnology

leaders

ERP Businessintelligence

BPSpure plays

IBM Cognos

Microsoft Oracle

SAP*

Actuate

Information Builders MicroStrategy

SAS Institute

Acorn Systems

Adaptive Planning

Board International

Clarity Systems

Host Analytics PROPHIX Software

Tagetik

Infor Lawson Software

Longview Solutions

*Though primarily an ERP software vendor, SAP has substantial business intelligence (e.g., Business Objects) andmiddleware assets

Longview Solutions is owned by Exact Software, an ERP software company, but continues to operate as anindependent BPS provider.


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12

Figur 6 Gde To BPS vedos Ad Podcts


AcornSystems

Vendor

Acorn Performance

Acorn Price Analyzer

Key product(s)

Planning,

budgeting, andforecasting

Financialconsolidation


Actuate

Actuate PerformancesoftViews

Actuate PerformancesoftTrack

AdaptivePlanning

Adaptive Planning 5.0

BoardInternational

BOARD ManagementIntelligenceToolkit

ClaritySystems

Clarity 6

Clarity FSR

Host Analytics Host CorporatePerformance Management(CPM)

IBM Cognos

IBM Cognos 8 Planning

IBM Cognos 8 Controller

IBM Cognos 8 BI

Infor Infor Performance

Management (PM)

InformationBuilders

WebFOCUS PerformanceMetrics Manager (PMM)

WebFOCUS PerformanceManagement Framework(PMF)

Cost and

profitabilitymanagement


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13

Figur 6 Gde To BPS vedos Ad Podcts (Cot.)


LawsonSoftware

Lawson EPM (EnterprisePerformance Management)

Lawson Budgeting &Planning

LongviewSolutions

Khalix by Longview

Solutions

Longview 7 (future release)

Microsoft Microsoft Office

PerformancePoint Server2007

MicroStrategy MicroStrategy BusinessIntelligence Platform

Oracle

Oracle Hyperion Planning

Oracle Hyperion FinancialManagement (HFM)

Oracle Business IntelligenceEnterprise Edition (OBIEE)

Oracle Hyperion Profitabilityand Cost Management

Oracle Crystal Ball

PROPHIXSoftware

PROPHIX PerformanceManagement

PROPHIX Budgeting andReporting

SAP

SAP Business Planning andConsolidation (BPC)

SAP Strategy Management

BusinessObjects Profitabilityand Cost Management

BusinessObjects Financial

Consolidation

Vendor Key product(s)

Planning,




Cost and



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14

Figur 6 Gde To BPS vedos Ad Podcts (Cot.)

r E C O m m E n D A T i O n S

LeARn FROM BeST PRACTICeS TO AVOID IMPLeMenTATIOn RISkS

A age bod o kowedge ad epeece has eeged o othe sccess peoace

aageet tates that ca poe sccess ad te to ae. Soe best pactces cde:

Us a burig platorm that acclrats tim-to-valu. Sccess bsess peoacetates occ whe a bsess peate des ogazatoa cotet ad a sese

o gec. The cet ecooc cate podes ape pets to poe pag ad

easeet pocesses ad sstes. Othe tpes o bg patos cde egato

chages, ajo acqstos, copa estctg, ad so o.

Loo at th road ahad to driv prormac. rg the bsess wth agggdcatos ad hstoca accotg oato eaes too ch to chace. Copaes

shod egee peoace pocesses that cde oecastg ad easeet o

eadg dcatos to sta ahead o the copetto.

Put motar rwards bhid prormac masurs at all lvls o th orgaiatio.A peoace aageet best pactce s to pt ewads pace to pope otate

peope. These cetes eed to be staghtowad ad taspaet, as we as eqet

eogh (e.g., qate) to keep peope egaged.

Bgi with pilot projcts to tu prormac masurs or th dsird rsults. Peoace sstes eed to eoe thogh tea epeece ad epeetato to

podce the desed ests. yo shod etwok wth etea pees ad epet esoces to

destad sccesses ad aes.


SAS Institute

SAS Strategic PerformanceManagement

SAS Activity-BasedManagement

SAS ProfitabilityManagement

SAS Financial Management

Tagetik Tagetik 3.0

Vendor Key product(s)

Planning,




Cost and



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15

W H A T i T m E A n S

MARkeT COnSOLIDATIOn LeAVeS THe DOOR OPen FOR InnOVATIOn

The aket eets o the past ew eas eae s wth o o the agest techoog edos o

the paet iBm, mcosot, Oace, ad SAP coto o aket shae. Whe Oace ad SAP

batte o speac ths space, mcosot has the hghest poteta to ga aket shae. Wth

a ewe soto set eeagg ts mcosot Ofce achse, mcosot w ga tacto aog

ogazatos o aos szes, cdg age etepses. iBm Cogos, eawhe, has ebaked

o a oad ap to eesh soe o ts agg assets. yet, aog these eadg paes, oe hae

bt the ete soto set o the god p ad each aces a qe set o chaeges to

tegate, oate, o ate the podct sets.

Ogazatos dese ess cost sotos that oe cose atch the eeds. Poteta abe

ateate choces cde ctoa (e.g., pag ad costg) ad dst-specc potsotos, SaaS sotos, ad spe podcts tageted towad sae ogazatos. Sae

BPS edos that ae: 1) techca oate; 2) ess cost to ow; 3) qcke to depo; ad 4)

ocsed o sog specc bsess pobes, w cote to ake the ak.

SUPPLeMenTAL MATeRIAL

Compais Itrviwd For This Documt

Actuate

Adaptive Planning

Board International

Clarity Systems

Host Analytics

IBM Cognos

Inor

Inormation Builders

Lawson Soware

Longview Solutions

Microso

MicroStrategy

Oracle

SAP

SAS Institute

agetik


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16

enDnOTeS

1 Forrester assessed 10 leading business perormance solutions vendors across 83 criteria in a product

evaluation. Additional point-solution vendors not covered in this evaluation might be worth considering

as well, depending on priorities and current capabilities. See the October 10, 2007, Te Forrester Wave:

Business Perormance Solutions, Q4 2007 report.

2 Metrics inuence actions and decisions, whether used explicitly to inuence behaviors or simply to report

results. Source: John R. Hauser and Gerald M. Katz,Metrics: You Are What You Measure, MI Sloan School

o Management, 1998.

3 Employee perormance solutions is the astest growing product segment within HR and HCM applications,

with a orecasted 17% growth rate through 2011. See the January 7, 2008, HR/HCM Applications 2008:

Best-O-Breed Solutions Make A Comeback report.

4 Perormance management and measurement will top many priority lists, driven in part by a ocus o

enterprises to drive risk management into business decisions. See the November 21, 2008, rends 2009:Financial Perormance Management report.

5 SAP was aced with a rather complicated BPS road map as a result o the Business Objects acquisition. See

the April 1, 2008, SAP Unveils Its Starting Lineup For Business Perormance Solutions report.
http://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=44387&src=46571pdfhttp://www.forrester.com/go?docid=44387&src=46571pdfhttp://www.forrester.com/go?docid=47509&src=46571pdfhttp://www.forrester.com/go?docid=47509&src=46571pdfhttp://www.forrester.com/go?docid=45573&src=46571pdfhttp://www.forrester.com/go?docid=45573&src=46571pdfhttp://www.forrester.com/go?docid=47509&src=46571pdfhttp://www.forrester.com/go?docid=47509&src=46571pdfhttp://www.forrester.com/go?docid=44387&src=46571pdfhttp://www.forrester.com/go?docid=44387&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdfhttp://www.forrester.com/go?docid=41706&src=46571pdf


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