This presentation overviews the enterprise performance management (EPM) market and describes a new approach for realizing key strategies using better EPM software.

1. The Holy Grail of Enterprise Performance Management Lee Mashburn Chief Marketing Officer, Cogniti April 12, 2011

2. Agenda Overview Strategy Management: We Must Close the Gap Between Costs and Returns Enterprise Performance Management; Where Strategy Fits The Need for a” Holy Grail” of Enterprise Performance Management Defining and Realizing the “Holy Grail” of Enterprise Performance Management About Cogniti

3. Key Strategies are Not Being Executed . . . And at great cost 90% of U.S. organizations fail to execute their strategies successfully Estimated that U.S. managers spend more than $10 billion annually on strategic analysis and strategy formulation – which means . . . $9 billion wasted annually on strategy that is not successfully executed Another statistic: Fortune 1,000 companies spend an average of $7 million per organization per year

4. The Importance of Building Accurate Plans has Increased Source: Accenture – Authors Bergstrom, Batchelor, and Marcotte

5. The Need for a New Planning Approach Traditional Planning Flexible, Dynamic Planning Driven off historical performance and internal operations. Schedule-driven annual exercise. Weak link to operations. Labor-intensive data collection. Emphasis on short-term profitability. Grounded in market expectations and external trends. Probabilistic scenarios including risk factors. Real-time adjustments. Planning tightly integrated to front line. Broader planning scope to cover balance sheet and cash flow. Source: Planning for Success in Dynamic Environments, Accenture, 2009

6. Accenture Conclusions Embed Flexible and Dynamic Planning Processes Focus on what matters most – tie it to financials Incorporate a range of scenarios Involve your operating staff in planning Renew the Focus on Strategic Planning Helps to prioritize bets “Forecasts are 33% more accurate when Operations is an integral part of the process”

7. BPM, CPM, EPM: Simplifying a Complex Market Place Flavor Nuances Adopters Relative Public Mindshare per Google Search

9. Alienates the public sector.

10. Least leveraged by consultants and analysts.

11. Most widely embraced by the “office of finance.”

12. Alienates operations.

13. Pushed heavily by Gartner, a leading industry analyst.

14. Widely embraced by largest management consultants and software “mega-vendors.”

15. Alienates SMB.

17. Capgemeni

18. Gartner

19. Infor

20. Prophix

21. Tagetik

22. PwC

23. E&Y

24. Aberdeen

25. Oracle

26. SAP

27. IBM

28. Cogniti

29. Accenture

30. CSCAdopters Lots of Google search results Relative Public Mindshare per Google Search 23% of business performance management Attracts larger organizations

31. EPM, CPM, BPM . . . At the end of the day, it’s all really the same!

32. The Evolution of EPM – Where are you on the maturity curve? Gartner estimates that 40% of large organizations and up to 75% of mid-size organizations still heavily on spreadsheets

33. EPM Market . . . Large and Growing Fast Compound Annual Growth Rate (CAGR): Subscription: 15.7% Maintenance: 14.2% License: 9.5% TOTAL: 12.7% Source: Forrester Research, Inc.

34. EPM Market Size by Application Strategy Management: Planning Scorecards Strategy Maps Objectives and Goal Setters Performance Measurement Fastest growing EPM application: Projected CAGR of 18% Source: Forrester Research, Inc.

35. Top Reasons for EPM Projects Source: BPM Partners 2010 Pulse Survey

36. The Need for the Holy Grail of EPM

38. Minimizes operational input

39. No common toolset to tie the pieces together

40. Budget preparation exercise

41. Prior year results plus 10%

42. Manual grind for cash impact

43. Jam down operations’ throat

44. Wait for the bad news

45. Bet on last year plus 10%

46. Prepare to negotiate

48. PowerPoint slides

49. Strategy maps

50. SWOT analysis

51. Analyst/market intel

52. Spreadsheets

53. Financial management tools

54. BI tools

55. Last year’s actuals

56. Email, intranet

57. Spreadsheets

58. Last year’s actuals

59. E-mails

60. Conference calls

62. Difficult to assign value

63. Overpromise, under-deliver

64. Hard to communicate

65. Unclear strategic direction

66. Little to no collaboration

67. Financial plans cannot be executed

68. Business processes not improved

69. High cost, low return

70. Negotiations with operations

71. Strategy gets lost

72. Just a budgeting and forecasting exerciseResults

74. Big mega-vendors are failing to properly integrate BI acquisitions with the many performance management modules they offer.

75. Improving performance is not being reached by measuring, analyzing, and reporting everything.

77. Poor Performance

78. Implementation difficulty

80. Corporate Geographical Locations Divisions Departments Suppliers EPM Must Help You Manage the Ripples

81. Aligned EPM (Marketing Example) . . . The Metrics Must Roll-Up Role Performance Metrics Strategic Value to Company CEO, CFO, COO EPS, ROIC, shareholder value Head of Marketing ROMI, return-on-sales, retention Mid-Management Sales pipeline, win/loss ratio, h/c costs Front-Line Leads, emails opened, event attendees Tactical Value to Company Event Management CRM Time Management Email Management BI Data Sources

82. Achieving the Holy Grail of EPM – An Integrated Continuum 2. ALIGN & MERGE 1. PLAN & ASSIGN VALUE Strategic Operations Operations Financial Financial Strategic Processes 3. MEASURE 4. EXECUTE & ADJUST Alert Off-Plan Performance Project Forward Consequences Advise Corrective Action Extract Key Measurements

83. Conclusions

84. About Cogniti “Cogniti gives you all the pieces in one place to pull together strategic, operational, and financial plans and then follow through with the execution and management of those plans.” Craig Schiff President & CEO, BPM Partners