<Insert Picture Here>

Oracle Balanced Scorecard Overview

German Arciniegas
Director BI Applications – CPM Strategy Team
Brian Duggan
Balanced Scorecard Collaborative
 The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
 Agenda

• Market Trends <Insert Picture Here>

• Trends in Strategy Management

(Balanced Scorecard Collaborative)
• Oracle Balanced Scorecard Solution
• Product Demonstration
• Customer Success Stories
• Planned Product Roadmap
• For More Information
• Questions
Market Trends

“Not surprisingly, the dashboard and scorecard

segment is on fire - a reflection of the number of
inquiries we get from customers about these subjects”

AMR Research - Trends in Performance Management Spending, 04/10/06

 Market Trends

"Scorecards and dashboards represent a rapidly

emerging market opportunity that will augment BI
initiatives and drive EPM adoption to a larger group of
users."

“We see scorecards and dashboards as the most direct

route to unlocking broader operational intelligence to
diverse audiences within any company”

AMR Research - Unique Adoption Plans for Scorecards and Dashboards To Drive EPM Initiatives Deeper into the Enterprise 03/31/05
Scorecards Vs Dashboards

“Compelling reasons exist

to field more than one
technology for scorecards
and dashboards to meet
the needs of the enterprise
today”
AMR Research - A Run on Dashboards and Scorecards:
Viable Alternatives Beg Integration Question 09/14/04
 Market Trends
• Vendor consolidation
9 Oracle acquired PSFT and Siebel
9 Microsoft acquired Proclarity for Ad hoc analysis, dashboards and scorecarding
9 Microsoft Moved into the Packaged Analytics Space with its Acquisition of Analysis Cubes for
Excel to Integrate with Great Plains
9 Teradata Acquired SeeCommerce and DecisionPoint for Supply Chain Analytic Apps and
Financial Analytic Applications, data models, mappings, predefined data integration
components
9 Business Objects acquired Infommersion for dashboards and visualizations
9 Business Objects acquired SRC for planning, budgeting and consolidation
9 Cognos acquired Frango for Consolidation
9 Actuate acquired Scorecard vendor performanceSoft
9 Hyperion acquired Upstream for financial data quality and governance and Razza for MDM
9 Applix Inc. acquired Temtec International B.V., a maker of analytical software for non-
technical business users
9 Other:
9 IBM acquired AlphaBlox, Ascential and DWL
9 BOBJ acquired Acta, Medience and First Logic
9 Informatica aquired Similarity
9 SAP acquired Collixa (EII)
Market Trends

AMR Research - Making Enterprise Dashboards and Scorecards a Success 02/11/05

 <Insert Picture Here>

Trends in Strategy
Management
Brian Duggan
Balanced Scorecard Collaborative
Trends in Strategy Management

Brian Duggan

Oracle Open World

October 26, 2006
 Palladium is the leading professional services firm solely focused on
helping clients successfully execute their strategy. Balanced Scorecard
Collaborative is the education and research arm of Palladium.

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 The Balanced Scorecard has gone through three distinct
cycles of evolution.

HBS
Books

HBR
Articles

‘90 ‘92 ‘94 ‘96 ‘98 ‘00 ‘02 ‘04 ‘06

A Measurement A Performance A Core Competency

System Management System (Strategy Execution)
(The Balanced (Strategy-Focused
Scorecard) Organizations)

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Executives are most concerned about executing strategy.

"Using a 1-5 scale, please rate the level of interest / concern

you have in the following business issues at present.”

Executing the strategy 4.0

Regulatory, compliance, and risk management 3.8

Market trends 3.7

Customer service 3.7

Forecasting & reporting effectiveness 3.7

Growing the top line 3.7

IT capabilities 3.5

1 2 3 4 5

Source: 2006 Monitor Analysis. Survey of 354 executives; 49% of respondents are C-level and 56% are from companies with
revenue greater than $1 billion

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

In a recent global survey by The Conference Board, strategy execution was CEOs #1 or
#2 most important issue.
Relative Cite challenge as being
Ranking Top 10 Challenges “of greatest concern”
$5 Billion and Above
1 Consistent execution of strategy by top management 42.3%
2 (t) Sustained and steady top-line growth 38.8
2 (t) Speed, flexibility, adaptability to change 38.8
4 Profit growth 33.1
5 [Product] Innovation 28.1
$1 Billion to Less than $5 Billion
1 Sustained and steady top-line growth 40.9%
2 Consistent execution of strategy by top management 37.8
3 Profit growth 35.5
4 Speed, flexibility, adaptability to change 28.2
5 Customer loyalty ⁄ retention 25.2

Less than $1 Billion

1 Sustained and steady top-line growth 37.7%
2 Consistent execution of strategy by top management 36.7
3 Customer loyalty ⁄ retention 31.3
4 Profit growth 28.9
5 Speed, flexibility, adaptability to change 23.5

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Competitive advantage will go to those who excel at real-time strategy execution.

High
ƒ Continuous
change
ƒ Real-time Strategy
Importance of Management
Strategy Med ƒ 0 margin of error
ƒ Faster cycles
Execution Capability
ƒ Globalization
ƒ Slow cycles
ƒ Limited competition
ƒ Faster response
required Elimination of
Low
ƒ Lower need for change Time & Place
(large margin of error)
Dependency

1980’s 1990’s 2000 2010

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 We are singularly focused on solving the strategy execution challenge.

Business
Results = Strategy + Execution

“Less than 10% of strategies

effectively formulated are
effectively executed”

Fortune

Most organizations don’t know how to execute strategy

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Why do organizations fail to execute strategy?

#1. You Can’t Manage

#2. They Don’t Manage
Something That You Can’t
Strategy
Describe!

ƒ 95% of the typical work force doesn’t

understand the strategy

There is no generally accepted ƒ 60% of organizations do not link

way to describe a business strategies with budgets
strategy
ƒ 70% do not link management incentives
to strategy

ƒ 85% of executive teams spend less

than one hour per month discussing
strategy

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Strategy-Focused Organization Best Practices Framework

II. TRANSLATE STRATEGY TO I. MOBILIZE CHANGE THROUGH

OPERATIONAL TERMS EXECUTIVE LEADERSHIP
2.1 Strategy translated in strategy map 1.1 Leaders drive strategy execution
2.2 Strategy described in Balanced Scorecard 1.2 Executives make case for change
2.3 Targets identified for all measures 1.3 Leaders reinforce strategic priorities
2.4 Strategic initiatives rationalized 1.4 Well articulated strategy exists
2.5 Executives accountable for initiatives 1.5 Office of Strategy Management established

III. ALIGN THE ORGANIZATION V. GOVERN TO MAKE STRATEGY

TO THE STRATEGY A CONTINUAL PROCESS
3.1 Corporate contribution to strategy defined A. RESOURCE MANAGEMENT
3.2 Enterprise scorecard guides business units 5.1 Budget is driven by strategy
3.3 Enterprise scorecard guides support units 5.2 Planning for HR/IT linked to strategy
3.4 Scorecards align suppliers and/or customers 5.3 Portfolio of strategic initiatives aligned to themes
3.5 Scorecard reports to board and/or shareholders B. KEY PROCESS MANAGEMENT
5.4 Process improvement aligned to strategy
5.5 Best practice sharing in place
C. LEARNING & CONTROL
IV. MOTIVATE TO MAKE STRATEGY 5.6 Strategic performance information
guides decision making
EVERYONE’S JOB
5.7 Strategy reviewed on regular
4.1 Strategic awareness created basis
4.2 Personal goals aligned
4.3 Personal incentives aligned
4.4 Competency development aligned

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

SFO Assessment – This sample SFO Assessment shows a significant gap in alignment.

SFO Strategic Readiness Assessment

2. Translate Strategy to Operational 1. Mobilize Change Through Executive
Terms Leadership
2.1 – Strategy Map Developed 4.0 1.1 – Top Leadership Committed 4.0

2.2 – Balanced Scorecard Created 4.0 1.2 – Case for Change Clear 3.5

2.3 – Targets Established 3.5 1.3 – Leadership Team Engaged 3.5

2.4– Initiatives Rationalized 2.0 1.4 – Vision & Strategy Clarified 4.0

2.5 – Accountability Assigned 2.0 1.5 – New Way of Managing 3.0

1.6 – Program Manager Identified 2.0

3.1 3.3

3. Align The Organization STRATEGY-

FOCUSED
5. Govern to Make Strategy a
To The Strategy ORGANIZATION Continual Process
3.1 – Corporate Role Defined 3.0 2.2 2.3 5.1 – BSC Reporting System 3.4

3.2 – Corporate-SBUs Aligned 2.5 5.2 – Strategic Review Meetings 3.0

3.3 – SBU-Support Units Aligned 2.5 2.6 5.3 – Budgets and Strategy Integrated 2.5

3.4 – SBU-External Partner Aligned 2.0 5.4 – HR/IT Linked to Strategy 2.5

3.5 – Board of Directors Aligned 1.0 5.5 – Process Mgt. Linked to Strategy 2.0

5.6 – Knowledge Sharing Linked 2.5

4. Motivate to Make Strategy
5.7 – Strategic Management Office 2.0
Everyone’s Job
4.1 – Strategic Awareness Created 3.5
Key: Level of Excellence
4.2 – Personal Goals Aligned 3.0
5 – We are “best practice” at this
4.3 – Personal Incentives Aligned 2.0
4 – We are good at this
4.4 – Competency Development Aligned 2.0
3 – We are okay at this
2 – We are poor at this
1 – We are very poor at this

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 SFO Assessment – In year two of the program, a second is performed to
demonstrate how the gap is being closed.

Level of Excellence of Strategy

Management Practices

High
Hall of Fame Companies

“Breakthrough Results”
Leadership

User Benefit
Gap

“Operational Results” 3 Sustainment time 2

Gap

time 1

“Organization Benefits”
2
Closing
the Gap
Your Organization

Low
1
Key: Level of Excellence
e

ign

rn
e

5 - We are “best practice’ at this

iz

at
t
sla

ve
bil

Al

tiv
4 – We are good at this

Go
an
Mo

Mo
3.0

3 – We are okay at this

Tr

5.0
1.0

2 – We are poor at this

4.0
2.0

1 – We are very poor at this

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 These companies have achieved Hall of Fame status it comes to executing
strategy.

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Organizations with a formal strategy execution process in place are
dramatically outperforming organizations without formal processes.

Do you have a formal strategy Yes No

execution process in place? (54%) (46%)

Describe your organization’s current

performance.
• …We have breakthrough results 12% 7%
• …we are performing better than our peer group 58% 20% Winners
Sub-Total 70% 27%

• …performing at the same level as our peer group. 18% 30%

• …performing at a lower level than our peer group 9% 27%
Losers
• …not performing at a sustainable level 3% 16%
Sub-Total 30% 73%

Source: BSCol Research (Survey of 143 performance management professionals, drawn from BSCol On-Line Community, March 2006)

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Independent research has been performed to better understand the challenge of
strategy execution.
Strategy Execution requires linking strategy management to operations management
Enterprise
Strategy Management
Management
‰ Strategy Update
‰ Enterprise Scorecard
‰ Strategy Reviews
‰ Initiative Management
‰ Communications
Strategy
‰ Best Practice Sharing
Management
‰ LOB Cascade Processes

Key Process Management Resource Management

FINANCIAL RESOURCE HUMAN RESOURCE IT RESOURCE

Customer
Company Value Chain
Customer
MANAGEMENT MANAGEMENT MANAGEMENT Operations
Needs
Identified
Develop Market Sell Fulfill Support Needs
Satisfied
‰ Finance Strategy &
Scorecards
‰ HR Strategy & Scorecards ‰ IT Strategy & Scorecards Management
1 2 3 4 5 ‰ Integrated Business
‰ Human Capital Planning,
Budgeting and Forecasting
‰ IT Applications &
Infrastructure Plan Processes
Planning
‰ IT Investment Plan

‰ Budgeting
Strategic Strategic Strategic Strategic Strategic ‰ Forecasting ‰ Work Force Planning ‰ Service Level Agreements
Job Family Job Family Jo Family Job Family Job Family

Dashboard Dashboard Dashboard Dashboard Dashboard ‰ Performance Reporting ‰ Work Force Readiness ‰ Performance Reporting
‰ Performance Modeling ‰ Personal Scorecards ‰ IT Architecture
Key (Strategic) Processes & Analysis
‰ Organization Development
‰ HR Analytics

ƒ Strategy management is linked to operations management across two domains:

— Resource Management
ƒ Managing the portfolio of financial, human capital, and IT resources needed to execute strategy
— Key Process Management
ƒ Managing the critical business processes that are at the heart of the organization’s strategy

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 We have developed a comprehensive model for closing the strategy execution gap.

Strategy Execution Model Services

ƒ Advisory programs
Strategy ƒ Conferences
Management
ƒ Consulting

Strategy ƒ E-Learning
Process Financial
Management Management ƒ Publications

ƒ Research
Human Capital Management

Information Management
ƒ Technology

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Organizations need to build strategy execution capabilities in five areas.

Objective: Ensure organizational commitment,

focus and alignment to the strategy

Strategy
Management
Objective: Enhance key Objective: Allocate
business processes and resources and monitor
enable operational decision- continuously to ensure focus
making Strategy on the strategy
Process Financial
Management Management

Human Capital Management

Information Management

Objective: Develop a technology platform to Objective: Ensure employee readiness

enable core processes and support the analytic and goal alignment, and align HR
needs of the enterprise processes and systems

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Our Premises: The Emerging Profession

Strategic
Management ƒ A new management discipline is emerging

STRATEGY-
FOCUSED
ORGANIZATION

BEST PRACTICES ƒ A body of knowledge for that discipline is emerging

Strategy
Management
Officer
ƒ An executive leadership role is emerging

The Office of Strategy

Management

1. Strategist

ƒ An organization role is emerging

2. Alignment
3. Awareness
4. Scorecard
5. Initiatives
6. Governance
7. Reviews
8. Change Agent

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Our View: A new profession is emerging around the practice of strategy
management.

The Strategy Management

Officer
CEO
MKTG CFO

Executive Team
Formulate & Oversee
OPS Held together by
Communicate The a shared view of SMO Execution of The
Strategy the strategy Strategy

R&D CIO

HRO

Managing strategy is different than managing functions

ƒ Traditional competencies are based on functional niches which create silos.
ƒ Strategy management requires cross-functional processes.
ƒ There is no logical home for cross-functional processes.
ƒ This is the role of the OFFICE OF STRATEGY MANAGEMENT.

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 Contact:

Brian Duggan
Alliances
Balanced Scorecard Collaborative
415-388-4280
tw@well.com

061028_Trends in Strategy Execution_BDuggan © 2006 Palladium Group, Inc. - Confidential

 <Insert Picture Here>

Oracle
Balanced Scorecard
Solution
Analytic Applications

Scorecard

Planning and Budgeting, Profitability

Manager, Compliance, Consolidations

OBIEE Dashboards,
Daily Business Intelligence
OBIEE, EPM,
Transaction Applications
Oracle Balanced Scorecard

Application of choice to create, deploy

and administer “custom” strategic
performance management reporting
systems
 <Insert Picture Here>

Product Demonstration
Why Oracle BSC? — Top 10 Reasons

1 Flexible 6 Graphic representation of

strategy maps with cause and
Industry Strength effect relationships
2

Integrated - Oracle’s E-Business 7 Approved by the BSCollaborative

3
Suite, Oracle Portal, Daily
Business Intelligence and OWB 8 Seven Years of Experience

Automatically creates Data Mart 9 Leverage data from Oracle or

4 non-Oracle sources
(summarization tables)

Powerful dimensional drill down 10 Hundreds of clients in more

5
than 35 countries
Sample of active government
organizations:
9 Denmark Police Department
9 Korea Ministry of Information and Communication
9 US Army
9 Cambridgeshire County
9 City of Reijkiavik - Iceland
9 Singapore Sports Council
9 LA Transit Authority
9 Central Missouri State University
9 Stakes - Centre for Welfare and Health – Finland
9 Social Security of Spain
9 MARTA - Atlanta Transit Authority
9 PEMEX - Mexican Petroleum Company
9 Solid Energy - Coal Mining, New Zealand

Oracle Confidential
<Insert Picture Here>

Chonbuk National
University Hospital

“Oracle Balanced Scorecard has

been a vital part of the campaign to
change the hearts and minds of
Chonbuk National University
Hospital members and transform the
management of our institution for
the better.”
<Insert Picture Here>

John I. Hass
VP Information Solutions

“Oracle Balanced Scorecard… gave

us the visibility needed to uncover
hidden opportunities for
improvement within our
organization”
 <Insert Picture Here>

Customer Success
Stories
Customer Success Stories

• Posco
Over 800 KPIs and 85 scorecards configured over 4 years of
work.
• ABSA, $50 billion in assets - S. African Bank
Implementing BSC for 28 of their 50 business units on top of a
Oracle warehouse solution
• Social Security, Spain
Over 1,000 users managing the operation of the organization
that handles social security for Europe's third largest country
in population
• Pemex
US$70B global oil corporation, integrated strategic plans,
metrics and action plans in a single point-of-truth system
Customer Success Stories

• "Oracle Balanced Scorecard Customer Case Study"

• Oracle Latin America – Implementation in collaboration with
Symnetics (BSCollaborative)
• Social Security of Spain

S281905 Thursday Oct. 26 at 12:30 PM

Room: Moscone West 3002
Do not miss it!
 <Insert Picture Here>

Product Roadmap
 Product Roadmap

• Apps Unlimited
• Provide continued enhancements to the current BSC
Application beyond the delivery of Oracle Fusion Application
• Provide an alternative that allows you to dictate your own
migration schedule to future technologies

• Fusion Balanced Scorecard

• Best functionality from Oracle and PeopleSoft Scorecard
applications on top of Oracle BIEE technology
 Additional Resources

• http://search.oracle.com
• Search for Balanced Scorecard
• For clients with licensed Oracle products:
• Metalink (https://metalink.oracle.com/) for
• Release Content Documents
• User and Administration User guides

• Visit our demo pod for additional information and

demonstrations!!
Demogrounds Pod: A-61
 The preceding is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.