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Business Performance Solutions: Clash Of The Titans
by Paul D. Hamerman for Business Process & Applications Professionals
Making Leaders Successful Every Day
14 Learn From Best Practices To Avoid Implementation Risks WHAT iT mEAnS 15 Market Consolidation Leaves The Door Open For Innovation 15 Supplemental Material Related Research Documents “measuring And Aligning Business Performance” April 2. and Tagetik. financial reporting. All rights reserved. SAP. forecasting. enterprise resource planning (ERP). TechRadar. Hamerman with Kyle mcnabb and meghan Donnelly Business Performance Solutions: Clash Of The Titans ExECuT i v E S u m mA ry Business performance solutions (BPS) — a software category consisting of applications for budgeting. Clarity Systems. and BPS pure plays offer a variety of interesting alternatives. 2007” October 10. lawson Software. Oracle. iBm Cognos. and performance measurement — has seen dramatic growth and vendor consolidation over the past two years. Forrester expects BPS software revenues to grow by 12. For additional information. Oracle.7% through 2012. 2008 “The Forrester Wave™: Business Performance Solutions. Forrester®. specialists. Host Analytics. Inc. Opinions reflect judgment at the time and are subject to change. microsoft. Infor. Information is based on best available resources. Forrester Research. Forrester Wave.forrester. profitability analysis. infor. Six large vendors — IBM. .2 billion during this timeframe. 2009 The market remains vibrant Following vendor Consolidation by Paul D. please email clientsupport@forrester. Board international. Microsoft. TABl E O F CO n TE nTS 2 Business Performance Solutions Monitor The Pulse Of An Organization 5 The Recession Will Only Temporarily Slow BPS Growth 9 BPS Vendors Come In All Shapes And Sizes rECOmmEnDATiOnS n OT E S & rE S O u rCE S This research is based on numerous client inquiries. SAP. longview Solutions. Inc. including Actuate.For Business Process & Applications Professionals Includes a market sizing forecast January 20.com. while a number of business intelligence (BI). Technographics®. despite the near-term impact of the recession. Adaptive Planning. 2007 © 2009. growing from its current size of $2 billion to $3. as well as ongoing briefings and discussions with BPS vendors. All other trademarks are the property of their respective companies. Q4. RoleView. go to www. SAS institute. and SAS Institute — dominate this market. driven by strong interest in strategy and performance measurement. and Total Economic Impact are trademarks of Forrester Research. The growth prospects for this space remain bright.com. 2007 “Business Performance Solutions: The Competition Heats up” February 7. To purchase reprints of this document. Unauthorized reproduction is strictly prohibited.
and systems for activities such as planning. 2009 © 2009. and accountability. sales. · Financial reporting and consolidation produce financial statements. Forrester research. Although the functional elements described above align primarily with finance processes. inc. Applications often display the strategy definition in visual strategy maps. Many BPS product portfolios often include purpose-built performance management applications for nonfinance areas including human resources (HR). budgets. in addition to budgeting. customers.g.. communicating. and industry benchmark data. production. All types of businesses and government organizations use BPS products. the Balanced Scorecard) but might be adapted to a business’ specific needs. Scorecards measure progress against the goals and objectives set forth in the strategy framework. enterprises can use strategy and performance measurement. and lines of business. objectives. Performance dashboards display more detailed information and allow drilling down to root-cause detail. to support all areas of the business. Dashboards typically include a variety of key performance indicators (KPIs) that might include strategic scorecards as well as relevant comparisons against plans. forecasts. and IT. Fortunately. 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. as well as forecasting. supply chain. and operating costs against revenues by product.1 The major BPS functional elements include: · Strategy and performance measurement address goals. This complex modeling activity helps organizations analyze development. · Cost and profitability management provides detailed analysis to improve margins. These applications also support internal reporting of financial information. although considerable extension and adaptation to business requirements is often required. Although used almost universally as a control on spending. the planning solutions support a variety of scenario-based planning activities as well as forecasting processes that add value beyond that provided by traditional budgeting processes. Forrester defines business performance solutions as a category of purpose-built software applications that support these activities. measuring. and forecasting solutions support multiple forward-looking processes. not due to a software shortcoming per se. prior performance.2 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals BUSIneSS PeRFORMAnCe SOLUTIOnS MOnITOR THe PULSe OF An ORGAnIzATIOn Business performance management consists of a set of processes. reproduction Prohibited . Cost and profitability management applications often use activity-based costing as the methodology to develop sophisticated cost and profitability analytical models. frameworks. January 20. A strategy management application supports formal strategy management philosophies (e. and monitoring business results (see Figure 1). operations. · Planning. Statutory consolidations support regulatory compliance and generally accepted accounting principles (GAAP) requirements. budgeting. Financial reporting and consolidation applications produce reports focused on delivering financial statements based on accounting results. budgeting often falls short in supporting performance initiatives — often the result of a rigorous and inflexible process.
2009 . · Financial accounting and budgeting processes move more slowly than the business. they develop their own performance measurements and reporting mechanisms. inc. When business units and departments lack a formalized performance measurement system aligned with strategy. Similarly. a critical component of business performance information. Organizations Face An Uphill Battle With Business Performance Process execution Adopting a strategically aligned and performance-driven culture is easier said than done. but company goals and objectives are under-realized. Financial information. budgeting. All reasonably successful businesses have a strategy. but often do not support their strategies with processes for communicating. Forrester research. profitability. planning and measurement processes based on labor-intensive methods (e. © 2009. and forecasting Cost and proﬁtability management Conﬁguration tools for processes and business models 46571 Source: Forrester Research.. reproduction Prohibited January 20. Business performance initiatives suffer from implementation and execution challenges ranging from culture and organizational alignment to technology integration and project execution.g. and assets across various organizational dimensions. The result: a great deal of effort expended. enables the visibility of revenues. spreadsheets) are not responsive enough to run the business. and executing them.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 3 Figure 1 Business Performance Solutions Footprint User experience Dashboards Scorecards Spreadsheets BPS application components Business intelligence platforms and integration tools Financial reporting and consolidation Strategy and performance measurement ERP systems Planning. Performancedriven enterprises need more timely support than traditional management processes — including budgeting and accounting — often provide. aligning. Inc. expenses. Typical BPS implementation challenges include the following: · Strategies and execution processes are misaligned.
even if mandated from the top. These solutions typically provide more business process control and accountability than homegrown solutions. 2009 © 2009. Forrester research.g. particularly when they affect compensation and. Companies with very limited resources still rely primarily on spreadsheets and basic tools for business performance reporting and analysis. The extent to which a BPS vendor embeds a comprehensive analytical data model differentiates many products. customers need a selection of graphical looks to suit the information context. but frequently require labor-intensive maintenance and lack desired levels of flexibility. Measurement systems present challenges. One of the biggest challenges. Business stakeholders must willingly engage in the process of shaping the business models and frameworks that drive the delivery of results. colors.4 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals Yet problems with the complex procedures and batch interfaces required to close the books along with lengthy budget preparation cycles diminish the actionable value of the information. requiring trial-and-error tweaking. must collect information residing in a number of transactional systems. The phrase “you are what you measure” highlights the profound impact of measurements on human behavior. as well as starter kits containing best practices and prebuilt functionality. even with the best technology. · Breadth of information. Any initiative to drive change in an organization. · Business performance questions go unanswered. job security. Despite these user-driven advantages. the daunting task of effective information delivery remains. Therefore. IT’s role remains critical for integrating and managing the underlying information. · Improvement initiatives face cultural resistance and unanticipated behaviors. Even when the systems can successfully assemble information on a BI platform. symbols. The data model should represent the full breadth of January 20. potentially. While some products rely heavily on a signature graphical paradigm. faces natural resistance.. BPS packages offer a level of configurability that puts control more squarely into the hands of the business stakeholders. such as fuel gauges. data integration. reproduction Prohibited . particularly to address business performance measurement and forecasting requirements. Enterprises seeking BPS support should look for: · Compelling graphics and user interface features. BPS Packages Often Replace Homegrown Solutions An organization with a strong internal BI IT talent pool and a robust BI infrastructure will likely have developed customized business performance systems. These approaches have worked well for some organizations. organizations must put measurements into play. and charts) that bring the information to life. IT-led initiatives to build and deliver performance management solutions are doomed to fail without strong business-driven alignment. End users should have the ability to personalize the presentation of the graphical content by selecting the visualizations (e.2 To gauge their true behavioral impact. inc. A multitude of technology challenges hinder delivering performance information.
due to reductions in IT spending. from finance to sales and operations. Every enterprise has a combination of needs ranging from common to unique. reproduction Prohibited January 20. 2009 . · Support for measurement frameworks. transform. The measurement applications ideally should allow access to underlying details within the data through drilling into the source data. particularly for planning and financial consolidation applications. Vendors typically embed or work with leading data integration and extract. The product needs to be open at the data level to analyze information from multiple systems. but this software category is not immune to the recession that we expect to continue well into 2009.7% compound annual growth rate (CAGR) through 2012 from $2 billion in 2008 to $3. mission-critical in times of intense economic pressure. We based our market size estimate on our analysis of individual vendor product revenues and momentum. Enterprises will struggle to justify upgrading planning and analysis software in the middle of the crisis. inc. as well as supporting a variety of business types. For example. depend on the business users’ abilities to model attributes such as hierarchical structures. The recessionary impact is manifested primarily in license revenues. from budgets. make up a significant portion of this market. · Openness for integrating multiple data sources. THe ReCeSSIOn WILL OnLy TeMPORARILy SLOW BPS GROWTH BPS has strong long-term growth prospects. Maintenance revenues will continue to grow as new licenses and automatic contractual increases are added to the base. and load tools to manage the diversity of data inputs to the system. to forecasts.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 5 the business. Ironically. application maintenance fees provide a strong recurring revenue base.2 billion in 2012 (see Figure 2). In analyzing the revenue components. several tools provide support for Balanced Scorecard frameworks and may be certified as compliant by the Balanced Scorecard Collaborative organization. and timeframes. licensing will return to strong levels for 2010 and beyond. Total software revenues (licenses. we find: · License revenue will see a slight decline in 2009. Enterprises often find best practice measurement frameworks useful as predefined structures within the BPS tools. The solution should also enable organizations to compare certain KPIs to industry metrics via connections to external content publishers. mathematical formulas. Forrester research. followed by a strong recovery. · Maintenance is substantial and sustainable. · Flexibility and extensibility. maintenance. to profitability analysis. The business problems to support. Due to the maturity of the BPS market. Following a slight 2009 decline. software for managing budgets and forecasts. so the flexibility of the product to be configured (not customized) with nonstandard measurements is essential. and subscriptions) will grow by 12. Since maintenance © 2009.
500 Revenue (US$ millions) $2. Software subscription revenue. Figure 2 Forecast: Global BPS market Growth 2008 To 2012 The spreadsheet detailing this forecast is available online.500 $1. currently makes up a relatively small component (8%) of total BPS revenues. January 20. including SaaS.7% 14.981 2009 $183 $1.235 CAGR 15.7% License revenue Maintenance revenue Subscription revenue Forecast Total revenue (millions) $1.468 2011 $266 $1. · Subscriptions will grow as the market gravitates toward software-as-a-service (SaaS). 2009 © 2009. it will sustain overall growth for the segment even in this challenging macroeconomic climate. customer demand for the SaaS consumption model will compel larger BPS vendors to introduce SaaS offerings.000 $2.500 $3.142 2010 $222 $1.223 $737 $2. inc.407 $840 $2. Within three years.2% 9. reproduction Prohibited . Forrester research. 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.000 $500 $0 2007 Subscription revenue Maintenance revenue License revenue $139 $974 $670 2008 $155 $1.6 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals represents more than half of the total BPS product revenues (54%). Actual $3.5% 12.7% CAGR during the next few years. 46571 Source: Forrester Research. Inc.893 $1. although enterprises deploy its applications on-premise. and Forrester estimates. Hoover’s. SAS Institute currently generates the bulk of the subscription revenue in this space today.082 $744 $1.000 $1.053 $3.632 $940 $2.783 (numbers have been rounded) Sources: Company reports.838 2012 $289 $1. But subscription revenue will grow at a 15.
4 · Cost and profitability management is making a comeback. Current economic conditions inspire renewed interest in closely managing costs and profitability. contributes greatly to our forecasted 17% growth for this segment. Companies will demand these tools to help them understand their most profitable products and customers.e. budgeting. Public companies with multiple subsidiaries and lines of business use these applications primarily for external reporting and statutory compliance. however.. for mergers and acquisitions). adoption of eXtensible Business Reporting Language (XBRL) as an open standard for rendering financial statements. Many organizations already measure business performance across the enterprise using a variety of metrics and KPIs. and adoption of international accounting standards (i. International Financial Reporting Standards) drive growth for this mature segment of BPS. and forecasting solutions. and which water down profit margins. Considering each of the four component categories individually. drive many deals to help companies cope with economic uncertainty and market volatility. Strategy and performance measurement (25%). which organizations can build for various aspects of the business. · Strategy and performance measurement systems have the highest growth potential in BPS.g. maintenance sustains its 10% growth rate. this category has a healthy growth trajectory of 13% through 2012. inc. but legacy product replacement and stopgap solutions fuel licensing. The desire to formalize measurement processes. As a mature category. Regulatory filing requirements. supported by incentive rewards. reproduction Prohibited January 20. has the highest growth rate at 18%. as companies move toward more comprehensive enterprise performance initiatives (see Figure 3). Adopters of these tools may benefit from expert guidance in constructing the models. · Financial reporting and consolidation is largely a replacement market. Forecasting is a more nimble planning vehicle than either budgeting or structured financial planning models (e. budgeting. 2009 . of BPS product revenues. but technology capabilities often lag management’s need for this information. we find: · Forecasting has moved to the forefront as a growth driver for the planning category.3 The incorporation of risk management measurement frameworks (key risk indicators [KRIs]) to help companies anticipate the negative consequences of unusual events will also drive growth. Though relatively small (8% of BPS). which software suppliers often provide. respectively. Forrester research.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 7 Strategy And Performance Measurement Solutions Lead BPS Component Growth The traditional finance components — planning. Demand remains strong (11% growth through 2012) for planning. flexible forecasting models. which enable companies to support a range of planning processes. a trend that parallels the rapid uptake of human capital management applications for employee performance.. © 2009. In fact. and forecasting and financial reporting — make up 39% and 28%.
Hoover’s. 2009 © 2009. budgeting. reproduction Prohibited . inc. and Forrester estimates. January 20. budgeting. 46571 Source: Forrester Research. and forecasting 39% Strategy and measurement 25% Financial reporting 28% 3-2 2008 BPS segment growth Strategy and measurement Cost and proﬁtability Planning.8 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals Figure 3 BPS Segment Analysis 3-1 2008 BPS segmentation by product category Cost and proﬁtability 8% Planning. Forrester research. and forecasting Financial reporting 18% 13% 11% 10% (numbers have been rounded) Source: Company reports. Inc.
and subscriptions). Figure 4 Business Performance Solutions vendor Genealogy.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 9 BPS VenDORS COMe In ALL SHAPeS AnD SIzeS Four of the largest information technology vendors in the world dominate the current BPS market — IBM. Microsoft’s entry into this market occurred in the same timeframe. These BI vendors were also among the leaders in BPS at the time they were acquired. maintenance. reproduction Prohibited January 20. making a genealogy chart useful for those trying to identify what they’ve licensed (see Figure 4). putting them among the largest software vendors. the BPS market had been consolidating for several years. and Oracle acquired three major BI and BPS vendors — Business Objects. Two additional major BPS players — Infor and SAS Institute — have annual revenues exceeding $2 billion. when SAP. Oracle. Forrester research. 2009 . Microsoft. inc. IBM. © 2009. and SAP. These top six vendors currently account for approximately 70% of the overall BPS market in terms of software revenues (licenses. and BPS assets factored heavily in these multibillion dollar acquisition transactions. Cognos. Many enterprise users of BPS still use the former brand names of the products they use. and Hyperion. expect More Of The Same: Market Consolidation Is Familiar Territory Within BPS Prior to the large BI acquisitions. largely through internal development efforts of Microsoft Office PerformancePoint Server 2007. respectively. 2002 To 2008 Oracle SAP IBM Microsoft Infor Geac/ Extensity Comshare Systems Union SAS Institute ABC Technologies Hyperion UpStream Software Razza Solutions Decisioneering (Crystal Ball) Siebel OutlookSoft Pilot Software Business Objects Cartesis ALG Software SRC Software Cognos Applix Adaytum ProClarity FRx Software Stratature Frango Dundas Data Visualization PeopleSoft Interlace Systems 46571 Source: Forrester Research. A stunning market consolidation took place in 2007. Inc.
Exact Software. focuses on the small and medium-size business (SMB) ERP market. · Business intelligence vendors emphasize platforms and tools. and can also align these products with their major technology assets in applications and platforms. Vendors in this category range from comprehensive BPS to point-solution providers. inc. Each had to decide which products to lead with and which to put on life support. SAP and Oracle had more overlaps to resolve. Forrester research. OutlookSoft and Pilot Software) and those of Business Objects (e. and has no correlation to overall vendor size. The four technology giants in this category. the integration and harmonization work continues. · Diversified technology leaders battle for supremacy. While the SAS offerings are well-integrated with one another. as shown in the more detailed vendor guide (see Figure 6). Several deals occurred just months prior to the larger BI acquisitions. including SAP’s acquisitions of OutlookSoft and Pilot Software in 2007. operates as an independent unit focusing on larger customers. has some traction independent of its diverse ERP applications installed base. Breadth of coverage of the four main BPS functional components varies widely. Lawson generally sells its budgeting and dashboarding products to its ERP base.10 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals Earlier transactions included in this roll-up include SAS Institute’s acquisition of cost and profitability specialist ABC Technologies in 2002. Each of these vendors can provide standalone BPS solutions as individual products or suites. yet share a common strategy to differentiate themselves from January 20. · ERP vendors focus on their applications base. Longview Solutions. Oracle’s clear choice was to lead with the Hyperion BPS products. with less emphasis on the financial domain components. and MicroStrategy — focus their BPS efforts on enterprise performance and strategy measurement. it is also the leading player in cost and profitability solutions as a discrete offering. as mentioned previously. Infor’s Performance Management solution. while its parent company.g. formerly a best-of-breed product (Geac/Comshare). These categories and key vendors are described below. · BPS pure plays focus on market niches. Infor most often provides it as a crosssell or upsell to complement its core applications. and Cognos’ acquisition of Applix just two months prior to the IBM-Cognos deal announcement in November 2007. SAS Institute is the only member of this group that offers a comprehensive set of BPS offerings. ALG Software and Cartesis). Whereas IBM had no pre-existing BPS assets to rationalize with Cognos.5 While vendors have well-defined road maps at this stage. The outlier in this category. Information Builders. while SAP chose a mix of assets between its portfolio (e. and Cognos’ acquisition of budgeting and planning vendor Adaytum in 2003. control the lion’s share of this market. reproduction Prohibited .. However. BPS Offerings Fall Into Four Types Of Vendor Buckets The types of vendors offering BPS products range from the technology giants to small.. 2009 © 2009. The other three BI vendors listed — Actuate.g. specialized vendors (see Figure 5).
PROPHIX Software offers a budgeting and performance management solution for SMBs. Specialist vendors in this bucket include Acorn Systems (cost and profitability) along with many others. European-based Board International (Switzerland) and Tagetik (Italy) now seek growth in other markets. but continues to operate as an independent BPS provider.g. 46571 Source: Forrester Research. © 2009. including the US. 2009 . Adaptive Planning and Host Analytics provide SaaS solutions in an historical on-premise market. Forrester research. Inc. Clarity Systems has a strong budgeting and planning solution along with a differentiated external financial statement and regulatory product.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 11 the larger market leaders. inc. Business Objects) and middleware assets † Longview Solutions is owned by Exact Software. Clarity FSR. an ERP software company. reproduction Prohibited January 20. Figure 5 BPS vendors By Type • Acorn Systems • Adaptive Planning • Board International • Clarity Systems • Host Analytics • PROPHIX Software • Tagetik • IBM Cognos • Microsoft • Oracle • SAP* • Infor • Lawson Software • Longview Solutions† • Actuate • Information Builders • MicroStrategy • SAS Institute Diversiﬁed ERP Business BPS technology intelligence pure plays leaders *Though primarily an ERP software vendor. SAP has substantial business intelligence (e..
inc. Forrester research. Cost and budgeting. reproduction Prohibited .12 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals Figure 6 Guide To BPS vendors And Products Planning. Inc. 2009 © 2009. Information Builders 46571 January 20.0 Board • BOARD Management International Intelligence Toolkit Clarity Systems • Clarity 6 • Clarity FSR Host Analytics • Host Corporate Performance Management (CPM) IBM Cognos • IBM Cognos 8 Planning • IBM Cognos 8 Controller • IBM Cognos 8 BI Infor • Infor Performance Management (PM) • WebFOCUS Performance Metrics Manager (PMM) • WebFOCUS Performance Management Framework (PMF) Source: Forrester Research. and Financial Strategy and proﬁtability forecasting consolidation measurement management Vendor Acorn Systems Key product(s) • Acorn Performance • Acorn Price Analyzer Actuate • Actuate Performancesoft Views • Actuate Performancesoft Track Adaptive Planning • Adaptive Planning 5.
Cost and budgeting.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 13 Figure 6 Guide To BPS vendors And Products (Cont. Oracle PROPHIX Software SAP 46571 © 2009. and Financial Strategy and proﬁtability forecasting consolidation measurement management Vendor Lawson Software Key product(s) • Lawson EPM (Enterprise Performance Management) • Lawson Budgeting & Planning • Khalix by Longview Solutions • Longview 7 (future release) Longview Solutions Microsoft • Microsoft Oﬃce PerformancePoint Server 2007 MicroStrategy • MicroStrategy Business Intelligence Platform • Oracle Hyperion Planning • Oracle Hyperion Financial Management (HFM) • Oracle Business Intelligence Enterprise Edition (OBIEE) • Oracle Hyperion Proﬁtability and Cost Management • Oracle Crystal Ball • PROPHIX Performance Management • PROPHIX Budgeting and Reporting • SAP Business Planning and Consolidation (BPC) • SAP Strategy Management • BusinessObjects Proﬁtability and Cost Management • BusinessObjects Financial Consolidation Source: Forrester Research.) Planning. inc. Inc. 2009 . reproduction Prohibited January 20. Forrester research.
reproduction Prohibited . The current economic climate provides ample impetus to improve planning and measurement processes and systems. Inc. A performance management best practice is to put rewards in place to properly motivate people. Successful business performance initiatives occur when a business imperative drives organizational commitment and a sense of urgency. Cost and budgeting. company restructuring.. and Financial Strategy and proﬁtability forecasting consolidation measurement management Key product(s) • SAS Strategic Performance Management • SAS Activity-Based SAS Institute Management • SAS Proﬁtability Management • SAS Financial Management Tagetik 46571 Vendor • Tagetik 3.14 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals Figure 6 Guide To BPS vendors And Products (Cont.0 Source: Forrester Research. Companies should engineer performance processes that include forecasting and measurement of leading indicators to stay ahead of the competition. and so on. Performance systems need to evolve through internal experience and experimentation to produce the desired results. r E C O m m E n D AT i O n S LeARn FROM BeST PRACTICeS TO AVOID IMPLeMenTATIOn RISkS A large body of knowledge and experience has emerged from other successful performance management initiatives that can improve success and time to value. you should network with external peers and expert resources to understand successes and failures. 2009 © 2009. quarterly) to keep people engaged.g. as well as frequent enough (e. Forrester research. January 20. These incentives need to be straightforward and transparent. Some best practices include: · Use a burning platform that accelerates time-to-value.) Planning. · Put monetary rewards behind performance measures at all levels of the organization. inc. · Begin with pilot projects to tune performance measures for the desired results. major acquisitions. Other types of burning platforms include regulatory changes. running the business with lagging indicators and historical accounting information leaves too much to chance. · Look at the road ahead to drive performance.
none have built their entire solution set from the ground up and each faces a unique set of challenges to integrate. Oracle. will continue to make their mark. and SAP — in control of market share. Smaller BPS vendors that are: 1) technically innovative. has embarked on a road map to refresh some of its aging assets. inc.. 2009 . and 4) focused on solving specific business problems. yet.g. 2) less costly to own. among these leading players. iBm Cognos. Organizations desire less costly solutions that more closely match their needs. SUPPLeMenTAL MATeRIAL Companies Interviewed For This Document Actuate Adaptive Planning Board International Clarity Systems Host Analytics IBM Cognos Infor Information Builders Lawson Software Longview Solutions Microsoft MicroStrategy Oracle SAP SAS Institute Tagetik © 2009. microsoft has the highest potential to gain market share. While Oracle and SAP battle for supremacy in this space. 3) quicker to deploy. reproduction Prohibited January 20. and simpler products targeted toward smaller organizations. With a newer solution set leveraging its microsoft Office franchise. microsoft. Forrester research. or mature their product sets. SaaS solutions. including large enterprises.Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals 15 W H AT i T m E A n S MARkeT COnSOLIDATIOn LeAVeS THe DOOR OPen FOR InnOVATIOn The market events of the past few years leave us with four of the largest technology vendors on the planet — iBm. meanwhile. innovate. microsoft will gain traction among organizations of various sizes. Potentially viable alternative choices include functional (e. planning and costing) and industry-specific point solutions.
depending on priorities and current capabilities. 2 3 4 5 January 20. “HR/HCM Applications 2008: Best-Of-Breed Solutions Make A Comeback” report. reproduction Prohibited . See the October 10. See the January 7. See the April 1. Katz. Metrics: You Are What You Measure. whether used explicitly to influence behaviors or simply to report results. 1998. 2008. 2008.16 Business Performance Solutions: Clash Of The Titans For Business Process & Applications Professionals enDnOTeS 1 Forrester assessed 10 leading business performance solutions vendors across 83 criteria in a product evaluation. See the November 21. Performance management and measurement will top many priority lists. with a forecasted 17% growth rate through 2011. 2007. Metrics influence actions and decisions. “SAP Unveils Its Starting Lineup For Business Performance Solutions” report. MIT Sloan School of Management. Employee performance solutions is the fastest growing product segment within HR and HCM applications. Q4 2007” report. inc. “Trends 2009: Financial Performance Management” report. SAP was faced with a rather complicated BPS road map as a result of the Business Objects acquisition. Forrester research. 2008. 2009 © 2009. Source: John R. Hauser and Gerald M. Additional point-solution vendors not covered in this evaluation might be worth considering as well. “The Forrester Wave™: Business Performance Solutions. driven in part by a focus of enterprises to drive risk management into business decisions.
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