Altius Community

Altius Consulting Community
Welcome to Altius Community Sign in | Join | Help
in Search

The Business Blog

A running commentary on the challenges and developments in the Business Intelligence world, along with some of the challenges facing BI consumers

February 2009 - Posts

  • Cost Reduction & Scenario Based Planning

    Cost reduction and enhanced planning are hot-topics in the current economic climate. Doug Guess, CFO at Servigistics made some interesting comments in Finance Week on how bringing simple home-truths into cost management can deliver significant value back to shareholders and the business.

    During boom times sales and revenue growth are the key concerns. As the market has cooled (dramatically) the need and opportunity to re-examine your businesses underlying cost-base presents itself there is an opportunity deliver huge savings, but you need the information upon which to base these decisions and to ensure that whilst reducing costs you are not hampering your ability to make the most of an economic bounce-back in the future.

    There are two fundamental and complementary concepts at play here:

    • Cost & Profitability Analysis; and
    • Scenario-based Planning;

    Effective cost and profitability analysis provides the baseline information of your current world upon which to take immediate action. Scenario-based planning ensures that when making forward-looking plans you have catered for all eventualities across your industries variables - cost of capital, price of materials, cost of labour, energy prices etc.

    We are running a series of Essential Business Breakfasts covering this and other Business Essentials topics in the coming weeks and months. Why not register to attend and find out more?

    • Take unnecessary costs out of your business quickly - introducing Oracle Hyperion Profitability & Cost Management (HPCM)
      Tuesday 24th March 2009 - Central London
    • Planning in uncertain times - Breaking out of Excel Hell
      Thursday 23rd April 2009 - Central London

    Feel free to contact Polly Daghorn on 01483 418 628 or Polly.Daghorn@altiusconsulting.com to secure your place.

    References:

  • Business Intelligence 101 - by Robert Flanglin

    A colleague of mine recently sent me a link to Robert's description of "What BI is". I think it's a great layman's terms description of what BI is, why we do it and where it comes from - it's not just about technology - it's a fundamental commercial process. This excerpt is from Robert's posting at Business Intelligence 101 by Robert Flanglin :

    The goal of every business is to be successful by gaining new customers and retaining old customers. A crucial way of achieving this end is through “Business Intelligence.” Business intelligence is also known as simply BI. Business intelligence can be defined as a process of collecting information in the area of business. An essential idea of business is that data is enhanced into information and then into knowledge. Business use BI to gain an advantage in the marketplace by understanding their customer’s needs, customer’s decision-making processes, and economic, cultural, and technological trends. Business intelligence involves analyzing not only the customer but the entire industry as a whole. Finally, business intelligence is driven by a goal set by the company. The goal can be short term or long term.

    History of Business Intelligence

    Business intelligence was first referred to in Sun Tzu’s “Art of War.” Tzu claimed that in order to win a war you had to have complete knowledge and understand of your strengths and weaknesses as well as those of your enemy. This is the core idea behind modern business intelligence. A company must know itself better than anyone else, and know its customers and competitors better than anyone else. It is ironic how much business and warfare are alike. In BI, one must sift through heaps of data (both external and internal) for management to then device strategies for marketing and where to take the business.

    Key Performance Indicators

    In BI, the present state of business is assessed by the use of Key Performance Indicators (KPI). Data is becoming available to businesses faster as more organizations implement KPI. In the past, data was available after one or two months, which did not help businesses adjust their strategies in a timely manner. More recently, however, banks have tried to make data available sooner and with shorter intervals, especially for businesses that have higher operational/credit risk loading (I.E. wealth management and credit cards). Some companies can get data weekly, which helps them adjust their strategies more efficiently than ever before.

    Business Intelligence Tools

    Business intelligence involves collecting quite a bit of information and analyzing it. Many business use tools to achieve this. A few of the data tools are data modeling, data warehouses, and data mining. Data tools help employees collect the data and analyze it efficiently. Data tools are for organizational purposes mostly. Online Analytical Processing (OLAP) is used in the analyzing process. OLAP is sometimes simply referred to as Analytics, which is based on the hypercube or “cube” and dimensional analysis.

    Some businesses also use software vendors for BI tools. There are quite a few enterprises offering BI technology. If a business does not get the BI tools themselves, then software vendor will provide a business with tools, and sometimes software support and BI professionals who will help the company analyze results and collect data. Some companies providing BI software are Siebel Systems, Microsoft, Altius Consulting, Business-Soft, and SAS Institute.

    Conclusion

    Businesses understand that knowing the customer is the key to success. Business intelligence is the path through which a business can collect data about the customer and analyze it. Business intelligence is also about knowing the market, including competitors and market trends. A business that has the most accurate understanding of its marketplace will be more adequately prepared for the continual changes that inevitable occur in markets. Business intelligence is an important concept for any company to understand, because it will help them to gain new customers, retain old customers, and see a positive ROI.

    Robert Flanglin writes about a variety of business topics and specializes in Business Intelligence. Robert Flanglin writes for the Business Intelligence Journal (http://www.businessintelligencejournal.com).

  • Budgeting, Planning & Consolidation doesn't live and die with PerformancePoint

    Many of you may be aware that Microsoft have recently decided to repackage functionality previously badged as Microsoft Office PerformancePoint Server (see the announcement below). Effectively they are moving the Monitoring & Analytics components (Dashboard tools, web-based analytical components & what used to be Business Scorecard Manager) into the SharePoint Enterprise CAL or e-CAL.

    Many users, partners and clients will be at first glance disappointed to hear that the Planning component of PerformancePoint is being sidelined with the next Service Pack (SP3) being the last set of significant enhancements.

    It is important however to take a balanced view of the changes and how they may affect you. Budgeting, Planning and Consolidation processes lived and thrived long before PerformancePoint Planning's relatively recent introduction and those looking for a best-of-breed solution still have many options from both Microsoft and other vendors - including established offerings from the likes of Oracle's Essbase and Hyperion Planning; and for those looking to build upon a cohesive Microsoft BI stack can take confidence that we have been delivering solutions to these problems with Microsoft tools for many years.

    At Altius, we had delivered Planning solutions based upon the Microsoft BI stack to dozens of clients before PerformancePoint was even a glint in a product manager's eye. With global rollouts of a solid Microsoft BI-delivered Management Information solution operating for BP globally, along with many other clients utilising similar solutions we are well placed to continue to deliver solid, cost-effective solutions to the SME and Global FTSE 100 alike.

    Many Microsoft partners who invested in Planning functionality for the first time with PerformancePoint will be having a tough time. Where their experience in the real commercial drivers behind such a solution is based solely around a piece of technology (PerformancePoint Planning) rather than a genuine need and business process, their planning practices are likely to suffer. Those who engaged with Planning because is came bundled with the Monitoring components they specialised in will find solace in the fact that those components will become available to all those with SharePoint Enterprise licenses (and Software Assurance) and will be in a position to offer those services to a broader set of clients who now have the licenses to deliver enhance benefits to their businesses as part of SharePoint, but those partners will be unlikely to have a strong enough Budgeting, Planning & Consolidation offering to continue to make the best offering to clients in that market.

    Our 15 year heritage in helping clients deliver value to their business, not based solely upon what a product does 'out of the box', but upon the drivers that they need to make their business successful has put us in a unique position to support you, our customers. I look forward to working with you to showcase the great solutions we've delivered for multi-national clients such as BP and a host of other organisations - before, through and beyond the demise of, PerformancePoint Planning.

    For reference, I've included some common questions and answers relating to PerformancePoint's path over the coming months below. If you'd like more information or would like to discuss how this affects your company's BI roadmap, feel free to drop me a line on planningisthefuture@altiusconsulting.com or call +44 (0) 1483 418 628 and ask for Matt Quinn.

     

    The statements below are from a Microsoft release - it's provided as-is, with no warranty for errors or omissions:

    Announcement:
    Microsoft is announcing an update to its Microsoft Business Intelligence roadmap. Microsoft’s strategy is to deliver BI to everyone in the organization through the broadly adopted tools of Microsoft Office SharePoint Server and Microsoft Office Excel, and built on the scalable Microsoft SQL Server BI platform. Based on customer feedback, we are moving the scorecard, dashboard, and analytic functionality from Microsoft Office PerformancePoint Server into Office SharePoint Server Enterprise, making these capabilities available throughout the organization at a lower TCO. In mid 2009, we will release PerformancePoint Server 2007 “service pack 3” which will include updates to the current product’s planning module. Thereafter, customers should not expect further investment in standalone versions of PerformancePoint Server. However, ongoing support of our planning customers is a high priority. These changes enable customers to deploy a complete BI solution with existing investments in SharePoint Server, SQL Server, and Excel, the most widely used analysis and planning tool in market today.

    Q&A:


    1. What will happen to PerformancePoint Server?
    PerformancePoint Server 2007 will no longer be a standalone item on the Microsoft price list as of April 1, 2009. For organizations interested in PerformancePoint Server, it can be obtained by purchasing SharePoint Server 2007 Enterprise CAL with Software Assurance. In the future, the monitoring and analytics capabilities will be included in the next release of SharePoint Server and will be available to SharePoint Enterprise CAL customers. Customers with rights to PerformancePoint Server SP3 will be able to download it mid 2009 (please contact your account manager [or partner] for details). Performance management is a critical component of business intelligence and Microsoft will continue marketing and R&D investment in this area in future product releases.


    2. What about from now until SharePoint ‘v-next’?
    How will I obtain the current PerformancePoint monitoring and analytics functionality for broad BI deployment?
    From the date of this announcement, PerformancePoint Server will be a license entitlement for SharePoint Server 2007 E-CAL customers with Software Assurance only. The technical requirement to use PerformancePoint planning will continue to be SQL Server Enterprise Edition. Customers will be able to use BI throughout their entire organizations simply by deploying SQL Server, SharePoint Server, and Excel.


    3. What about support for existing PerformancePoint Server planning customers?
    Customer care is our primary focus during this transition. We will keep our commitments to deliver improved planning capabilities in PerformancePoint Server 2007 SP3 in mid 2009 that addresses many of the features and functionality required by our customers to leverage in their planning projects. We will continue to support all PerformancePoint customers per our existing support policy. For further details on this policy visit: http://support.microsoft.com/lifecycle/?p1=12922.

    4. What about legacy products such as ProClarity and Business Scorecard Manager?
    ProClarity Analytics Server and ProClarity Desktop Pro are PerformancePoint Server 2007 Software Assurance benefits, and Business Scorecard Manager (BSM) is a downgrade right of PerformancePoint Server 2007. By the Office ‘v-next’ timeframe, we expect much of the ProClarity Analytics Server functionality to be moved into SharePoint Server and Excel. As for Business Scorecard Manager and ProClarity Desktop Pro, we don’t anticipate any further customer demand for these products as a result of this news.


    5. Will customers still be able to purchase PerformancePoint Server if they require more licenses for an existing deployment?
    No, not as a standalone product. If customers require additional PerformancePoint Server 2007 CALs, they should purchase SharePoint Server 2007 E-CALs with Software Assurance to be entitled to PerformancePoint Server 2007 CALs.


    6. If I have additional questions, who do I contact?
    If you have additional questions, please first work with your [Microsoft Gold Partner or] Microsoft account team. If you have additional questions following that, you can contact PerformancePoint Server Roadmap Announce team pps_an@microsoft.com.