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8/3/2019 Forrester Perf Mgmt 012009
1/18
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/8/3/2019 Forrester Perf Mgmt 012009
2/18
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
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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]8/3/2019 Forrester Perf Mgmt 012009
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2009, Foeste reseach, ic. repodcto PohbtedJaa 20, 2009
Bsess Peoace Sotos: Cash O The Ttas
Fo Bsess Pocess & Appcatos Poessoas
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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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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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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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
Source: Forrester Research, Inc.46571
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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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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Figur 3 BPS Seget Aass
Source: Forrester Research, Inc.46571
2008 BPS segmentation by product category3-1
2008 BPS segment growth3-2
Planning, budgeting,and forecasting
39%
Financial reporting28%
Strategy andmeasurement
25%
Cost andprofitability
8%
(numbers have been rounded)
Source: Company reports, Hoovers, and Forrester estimates.
18%
13%
11%
10%
Strategy andmeasurement
Cost andprofitability
Planning, budgeting,and forecasting
Financial reporting
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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
Source: Forrester Research, Inc.46571
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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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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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
Source: Forrester Research, Inc.46571
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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Figur 6 Gde To BPS vedos Ad Podcts
Source: Forrester Research, Inc.46571
AcornSystems
Vendor
Acorn Performance
Acorn Price Analyzer
Key product(s)
Planning,
budgeting, andforecasting
Financialconsolidation
Strategy andmeasurement
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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Figur 6 Gde To BPS vedos Ad Podcts (Cot.)
Source: Forrester Research, Inc.46571
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,
budgeting, andforecasting
Financialconsolidation
Strategy andmeasurement
Cost and
profitabilitymanagement
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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
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aageet tates that ca poe sccess ad te to ae. Soe best pactces cde:
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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.
Source: Forrester Research, Inc.46571
SAS Institute
SAS Strategic PerformanceManagement
SAS Activity-BasedManagement
SAS ProfitabilityManagement
SAS Financial Management
Tagetik Tagetik 3.0
Vendor Key product(s)
Planning,
budgeting, andforecasting
Financialconsolidation
Strategy andmeasurement
Cost and
profitabilitymanagement
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2009, Foeste reseach, ic. repodcto Pohbted Jaa 20, 2009
Bsess Peoace Sotos: Cash O The Ttas
Fo Bsess Pocess & Appcatos Poessoas
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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Bsess Peoace Sotos: Cash O The Ttas
Fo Bsess Pocess & Appcatos Poessoas
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=46571pdf8/3/2019 Forrester Perf Mgmt 012009
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