Enterprise Performance Management Maturity Model Donald Davis – SVP EPM December 2008

2 The Business Challenge Organizations are challenged with balancing Profitability and Value while maintaining proper Controls and Regulatory Compliance. Value ShareholderCustomer Profitability Control Compliance

3 Moving Target Multiple internal and external factors affect an organizations ability to execute on this mandate. Globalization Capital Availability International ClimateAcquisitions / Divestures Regulatory Mandates Macro Economic Factors Organizational Change

4  In an environment where the CEOs is being asked to grow revenues with less manpower than ever before, new regulations are getting in their way of being effective.  Quality data can only be found by drawing data from a centralized data warehouse that contain every interaction with the customer as well as when and where it is appropriate to contact them. The Business Challenge - Who Cares? CEOCSOCFOCIO  The CIO is faced with both sides of the business; needs for growth and expansion and cost justification for each IT project.  Institutions are spending millions each year on IT but feel they have reached the limits that enable them to contain costs yet enable large- scale acquisitions.  In the post Sarbanes- Oxley environment where a CFO is asked to sign off on financial statements, the quality of data and the systems that produce that data are being scrutinized now more than ever before.  Growth can only come with efficient architectures and synergistic investments in technology.  Risk compliance in financial institutions has become more complicated by a number of regulations such as Basel II accord and USA Patriot act.  A siloed approach to compliance is no longer valid, significant savings can be found in the pooling of initiatives around risk. Enterprise Pressure

5 The EPM Value Proposition Enterprise Performance Management solutions embody the standards and controls to assimilate Information and institute the processes necessary for reporting, predicting, and capitalizing on business and economic events. “The mind revels in conjecture. Where information is lacking, it will gladly fill in the gaps.” - James Geary In order for Value to be realized it must be, and.

6 What is EPM? “Enterprise performance management (EPM) includes not only the processes used to manage enterprise performance (such as strategy formulation, budgeting and forecasting), but also the methodologies that may drive some of the processes (such as the balanced scorecard or value based management), and the metrics used to measure performance against strategic and operational performance goals.” – Gartner: Rayner, Buytendijk, Geishecker “Business performance management consists of a set of processes, frameworks, and systems for planning, measuring, communicating, and monitoring business results. These activities are typically closely linked to corporate strategies and objectives and might be driven down to many individuals within an organization to encourage accountability and control.” – Forrester: Hammerman, Leaver, Donnelly “EPM is all about the alignment of corporate goals with departmental execution to achieve optimal performance. It’s not just about better reporting.” – AMR Research: Durocher, Hagerty

7 EPM / BI Architectural Stack  Forrester Aug 2008 Fortune 1000 Planning Major EPM / BI Investments: 50% 6.5% increase from 2007 Largest Increase in IT Expenditures in 2008 & 2009

8 Business Process Optimization Master Data Management & Governance ETL (Extract Transform Load) Formal Monitoring and Administration General Ledgers Consolidation s & Financial Reporting Financial Reporting Corp. Accounting SEC, Regulatory, GAAP ERP, Sales, Operational Business Planning Reporting, Variance Analysis FP&A Strategic, Operational Management Reporting & Profitability Analysis Analysis; Slice & Dice, Drill Downs FP&A, LOB’s Product, Customer Profitability EPM Roadmap Common User Interface Reporting -> Spreadsheet -> Web -> Dashboards -> Querying -> Self Sufficient Users Common User Interface Reporting -> Spreadsheet -> Web -> Dashboards -> Querying -> Self Sufficient Users Data Mart(s) Operational Analytics Near to Real Time Analysis & Monitoring LOB’s, Ops Sales & Marketing, Supply Chain, MFG. Enterprise Information Consumption Ad Hoc, BI End User Tools, Mass Access Enterprise wide Focused Reporting & Querying Data Warehouse General Ledgers EPM Organizational Culture Strategic Goal Aligned with Operational Measurements Performance Appraisals & Incentive Compensation aligned with Operational Measures

9 EPM Maturity Model Level 3 - Optimizing Clear metrics drive the business Companies strategic rollout performance optimization strategies Level 4 - Innovating Accountability at all levels Models shift based on changing markets Enterprise scale investments Level 2 - Integrating Business process focus Measurable benefits harder to identify Level 1 - Operating Bottoms-Up approach to managing performance Low risk, High reward

10 EPM Framework Architecture, Strategy & Planning -Systems architecture strategy -Systems/0rganizational assessments & roadmaps -Organization roles & responsibilities -Business process change management -Data strategies -Data governance -Application management & support processes Enterprise Performance Management -Financial consolidations & reporting -Regulatory reporting & compliance -Budgeting & forecasting -Costing & profitability -Management reporting & analysis -Data Integration & Audit Data Management & Business Intelligence -Enterprise reporting & information delivery -Data management practices -Multidimensional analysis -Master Data Management -BI Rationalization Performance Engineering -IT performance center of excellence -Performance testing -Operational monitoring -IT quality assurance -Infrastructure management -IT governance & portfolio management

11 Trends in EPM / BI Mature Computing Environments Convergence of EPM and BI & COE’s Master Data Management Data Integration Enterprise Strategies

Donald Davis – SVP EPM