INTALIGN blog

Since the middle of the nineties Microsoft has been involved in the business intelligence space, enabling decision makers that are typically not IT or database experts to effectively analyse their data. In a space of the last 10 years the software behemoth from Redmond has moved from very little to a dominating position in this space.

 No other BI platform has achieved a larger number of users with continuously high growth rates. So far, though, the efforts have been primarily focused on the back end side covering data integration, storage and calculation processing in the SQL Server platform.

In recent years standard reporting and the integration of ad hoc query functionality in the tool of choice for the typical business analyst, Microsoft Excel, were added. What has been missing so far was an effective platform for analytical applications i.e. the ability to allow end users, particular in the finance space, to design and manage processes for budgeting, planning, legal consolidation and strategic management (in particular scorecarding). In short all aspects of a truly integrated approach to performance management respectively other areas where complex calculations, workflows and end user front ends are required. So far access to respective solutions has been limited to an exclusive group of organisations with deep pockets that could afford expensive software by specialised players like Hyperion or Cognos as well as a wide array of niche players that are offering different, distinct pieces of the corporate performance management spectrum. This is supposed to end with the launch of a new product suite, under the somewhat bulky name of MS Office PerformancePoint Server 2007 (PPS).

These days the first public, preview versions will be launched, the final release date is to be expected in mid 2007. In regards to the specific pricing Microsoft has been very tight lipped but in line with its approach of “software for the masses” a very aggressive price points compared to currently available solutions is expected. The solution is supposed to provide a platform where business users (as opposed to IT specialists).

Building on the now market leading MS SQL Server platform Business Intelligence backend infrastructure management aspects like ETL (Extraction, Transformation and loading) and rights administration will remain responsibility of the IT department. On top of this platform the new, central component of PerformancePoint Server, the "Business Modeller" will allow business users to design models, workflows and the presentation layer which is subsequently made available via the web or Microsoft’s ubiquitous Excel client.

The backbone of the PerformancePoint Server are the "Business Models" which contain all aspects of the organisational structure: entities, accounts, scenarios, Key Performance Indicators as well as calculation rules and workflows. To facilitate the design process the solution will contain standard templates that provide pre built logic for typical application areas. Initially those are focused on financial aspects e.g. for budgeting or legal consolidation) but Microsoft has already announced the extension into other areas like HR, marketing and operations.

Particularly interesting from an application perspective is the collaborative focus which reflects in the modelling process and in the integration in portal and team service environments. Larger organisations typically face the dilemma to integrate different needs in the performance management process for central holdings, departments and potentially also geographically very separated subsidiaries. The status quo is typically a plethora of different not really integrated “island solutions”. PerformancePoint server addresses exactly this fact by providing quite unique “waterfall modelling”: whereby central company models can be extended with specialised needs in sub entities: for example the addition of specific product or customers segments by the key account managers in a particular market. Likewise it is possible to link unstructured Excel documents in a quite effective way.

Distributed planning is also supported through replication and synchronisation of models between the server and local machines which allows users to work offline on laptops. Following the general strategy Microsoft is also tightly integrating its CPM solution with the SharePoint Collaboration platform. SharePoint in the upcoming 2007 version offers quite an extensive platform for document and knowledge management in addition to team collaboration features like discussion boards, meeting spaces and task monitoring. It’s either available as a “free” light version (Windows SharePoint Services 3.0) within the Windows Server product family or as a full on portal solution in Microsoft Office SharePoint Server (MOSS 2007). The main differentiators between the two are External website content management functionality, workflow integration and substantial functionalities for enterprise search as well as the new Office Server components (e.g. Excel Server) that are only available in the Server.

Data entry is tightly integrated in the familiar Excel environment but offers additional features for facilitating the process through extensive distribution and spreading options. Once the user has finished data entry, a workflow is triggered and the data is automatically sent to the server. From a versioning point of view Microsoft is of course interested to promote their new versions of office. So it is no surprise that Office 2007 adds extensive features in regards to presentation and analysis of PerformancePoint data. Version 2003 is although supported as well.

Despite the very comprehensive offering, though, the fact remains that analytical applications are typically very complex processes. It will be seen if Microsoft’s typically technical focused VAR’s and Integration Partners will be able to build the business specific domain expertise. John Colbert, president of the CPM specialist BPM Partners states in his analysis of PPS: “Microsoft will be required to evaluate whether their existing channel partners will have the ability to handle this sophisticated platform within the BPM market. Successful BPM implementers require both technical understanding of the platform as well as firsthand experience in addressing the business processes supported in budgeting, consolidation and operational analytics applications.” Given the substantial interest in the solution we expect that this gap will be closed soon by large consulting practices respectively specialised performance management specialists.

All in all it seems that the offering will be a very strong contender in the performance management field, where the integrated approach, collaborative features combined with a very aggressive price tag will pose some challenges to Microsoft’s competitors.