This document discusses the role of performance management in turbulent times. It introduces IBM Cognos performance management software and provides examples of how it can be used. Performance management provides critical capabilities like measuring performance, reporting and analysis, planning, and identifying issues and opportunities. It acts as a GPS to help answer three key questions: how are we doing, why, and what should we be doing. IBM Cognos offers end-to-end performance management capabilities to help drive better business outcomes.

1. Performance Management in turbulent times
Christoph Papenfuss, Business Unit Executive
IBM Cognos Innovation Center for Performance Management
1 © 2009 IBM Corporation

2. Session Objectives
In today’s session we will:
 Discuss the role of Performance
Management in turbulent times
 Introduce IBM Cognos and the Cognos 8
Performance Management software
 Review some examples of Performance
Management in real life
© 2009 IBM Corporation

3. „The world is flat.“
Thomas Friedman
© 2009 IBM Corporation

4. We need to deal with specific challenges
I. Demand is in a Dramatic
(and Uncertain) Decline
II. Companies Facing Constraints on
Credit and Capital
III. Industry Structure Can Change
Significantly in Crisis
© 2009 IBM Corporation

5. 2009 – A Year of Challenge & Opportunity
... new leaders emerge who win not by
surviving the storm, but by changing
the game. Changing the game
requires process transformation that
infuses intelligence into our decision-
making and management systems …
Sam Palmisano,
IBM CEO, on Smarter Planet…
© 2009 IBM Corporation

6. How do we manage this situation?
• Report numbers
• Forecast future performance
• Identify issues & opportunities
• Understand dependencies
• Test & develop actions
• Plan future performance
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7. Better Performance
Decision Making
Information
Data
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8. Performance Management
is your GPS!
© 2009 IBM Corporation

9. Three Questions that Drive Performance
How are What should
we doing? Why? we be doing?
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© 2009 IBM Corporation

10. Three Questions that Drive Performance
FINANCE
PRODUCT
MARKETING DEVELOPMENT
How are Why?
we doing?
What should
we be doing?
SALES OPERATIONS
CUSTOMER HR
SERVICE
IT
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© 2009 IBM Corporation

11. Performance Management Capabilities
FINANCE
PRODUCT
MARKETING DEVELOPMENT
Measuring & Reporting &
Monitoring Analysis
Planning
SALES OPERATIONS
CUSTOMER HR
SERVICE
IT
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12. How are we doing?
How are we doing?
Scorecard or dashboard shows On Time Shipments below plan
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13. How are we doing?
How are we doing?
Why?
Report shows production bottleneck due to Material Shortage
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14. How are we doing?
How are we doing? Why?
What should
we be doing?
Demand Volume is reviewed and Plant Production Plan is adjusted
to remove bottleneck
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© 2009 IBM Corporation

15. But the reality can be very complex
What should
How are we doing? Why? we be doing?
Transaction Warehouses Flat, Legacy External
Systems (Relational & OLAP) or Modern Sources
© 2009 IBM Corporation

16. © 2009 IBM Corporation

17. Do we use the right tools?
• Detailed annual budget
• Disparate systems
• Manual processes
• Spreadsheet jungle
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18. How does IBM Cognos help?
© 2009 IBM Corporation

19. IBM Cognos – Your Performance Management Leader
• 40 years of success
• R&D Talent Pool: over 1000 R&D
• Platform independent
© 2009 IBM Corporation

20. IBM Cognos 8 – Your Performance Management System
Applications
& Blueprints
Access
& Interactivity
Universal
Capabilities
Business
Modeling
Performance
Management
Platform
Information
Infrastructure
© 2009 IBM Corporation

21. • One of Sweden’s largest financial “If you don’t know what you’re talking about,
management companies; 50 Offices,
you can’t make the right decisions.”
3000 staff George Janson, Business Intelligence Coordinator
• Insures every other Swede
The Challenge The Cognos Solution
• 60% of planning time spent • 15% spent on collecting
collecting and consolidating from and consolidating data
SAP R/3 and other sources
• 85% spent on productive,
• 40% of planning time spent using future-oriented work
information for planning
© 2009 IBM Corporation

22. Value for your business: IBM Cognos
Financial Workforce Dynamic
Risk Insight Optimization Supply Chain
Better Business Customer & Product Business Multi-channel
Outcomes Profitability Optimization Marketing…
End-to-end
Capabilities
Information Infrastructure
© 2009 IBM Corporation

23. How can we leverage this capability in real life?
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24. What should
we be doing?
Why?
How are
we doing?
© 2009 IBM Corporation

25. How are
we doing?
© 2009 IBM Corporation

26. © 2009 IBM Corporation

27. How are Why?
we doing?
© 2009 IBM Corporation

28. © 2009 IBM Corporation

29. © 2009 IBM Corporation

30. How are Why? What should
we doing? we be doing?
© 2009 IBM Corporation

31. © 2009 IBM Corporation

32. How are What should
we doing? Why? we be doing?
© 2009 IBM Corporation

33. Your trusted Performance Management system
© 2009 IBM Corporation

34. Performance Management provides critical capabilities
“ World-class EPM organizations
deliver 2.4 times the equity market
returns of industry-peers companies.”
Source: Hackett Group, 2008
© 2009 IBM Corporation

35. Session Summary
• Turbulent times require active
Performance Management
• It’s time to change our
management processes
• IBM Cognos provides proven
solutions to help you drive your
corporate performance
© 2009 IBM Corporation

36. Wrap Up and Next Steps
GET STARTED
 Learn more: www.ibm.com/cognos
 Speak to your business partners
 Meet with our experts
© 2009 IBM Corporation

37. © Copyright IBM Corporation 2008 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without
warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in
these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of
the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be
available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based
on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, the Cognos
logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company,
product, or service names may be trademarks or service marks of others.
© 2009 IBM Corporation
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