Cognos 8 Product Review
“Performance Management fit for the whole organisation”
31st July 2006 |
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Introduction
Performance Management as a business discipline has been noticeably gathering strength since the new millennium. Driven by challenging business conditions on a global scale, the post dot-com era and a rising compliance and governance agenda, many businesses are more firmly focussed on performance.
Performance management is considered to be an amalgam of the processes, systems, methodologies and metrics needed to manage the performance of an organisation. In application terms, a performance management regime is represented by budgeting, planning and forecasting, dash boards, scorecarding, management reporting, query and analysis. Supported by an appropriate technical platform, such an architecture is designed to enable an organisation to comprehensively answer fundamental business questions such as, “How are we doing?”, “Why”?, and “What should we be doing”?
But, performance is no longer limited to management's view of the world. A variety of external stakeholders now have a vested interest in the trends and factors likely to affect a company's performance in the future. These can range from institutional investors and fund managers seeking confirmation that a company will deliver on its declared strategy to the way it treats its suppliers and customers. An increasing number of special interest groups and lobby groups are interested in sustainability and, for example, the way that a company responds to, climate change, cheap labour and the communities in which it operates.
So the only thing certain about information requirements is the uncertainty of future reporting demands. However, it is abundantly clear that information demands continue to be deeper and more pervasive, a position that has been encouraged by the widespread availability of relatively inexpensive access to the Web.
It means that information systems are now required to respond to a wide range of potential users (both within and outside of an organisation) with a diverse set of skills, functional specialisation and IT competency. The days in which the IT or finance department exclusively specified and furnished information on behalf of end users have gone. Whether users are ‘knowledge workers' or occasional users of an information system, they need access to a system on a self-service basis so that they can retrieve information for themselves using the tools most appropriate to their role and capability. Whilst the first wave of performance management concentrated on assembling all of the technical components, it is now widely recognised that the challenge of the second wave of performance management is to make the components more widely accessible and useable.
But this has to be done in a manageable way. As performance management disciplines mature, the challenge facing most organisations in the new millennium is how to empower end users so that they can obtain the information that they need on a self-service basis whilst retaining control over the security, integrity and consistency of the information used.
It's a familiar challenge to Cognos, a business that has specialised in information management for nearly forty years and one of the pioneers of performance management solutions and methodologies. With a turnover of approximately $877 million, 3,500 employees world-wide and 23,000 customers in 135 countries it is a formidable force in the field of performance management. Having developed its architecture and technology foundation for CPM in the early part of this decade it is now turning its attention to information delivery and empowering users across the enterprise, whatever their background, to take advantage of its performance management suite. This review looks at Cognos' latest solution, Cognos 8, its integrated suite of information delivery and performance management capability designed specifically to embrace the information needs of the whole organisation.
The Information Architecture
The delivery of comprehensive performance management across an entire organisation requires a robust, yet malleable architecture that is amenable to a wide range of technology platforms that companies may use. Cognos makes wide use of open standards and accepted industry norms for databases and applications which is important as the growing information needs of performance management compel organisations to embrace a greater number of information sources. Cognos enables interoperability with common relational and multi-dimensional data sources from popular vendors such as Oracle, IBM and Microsoft as well as a number of industry standard ERP systems such as SAP. |
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“Framework Manager” is the tool that manages and marshals information held within the Cognos 8 environment. It holds the metadata (data about data) or structural information such as organisational hierarchy, product groupings and cost centre structures that support all of the applications within the performance management environment.
Metadata management is fundamental to the integrity of the entire solution since it ensures that the structure of business information is defined only once and that it is made available on a consistent basis to any of the reporting applications within the Cognos 8 suite.
Just as importantly, the information held within, what is technically speaking a data model, is presented to end users in business terms and language that they understand. To this end it is interesting to note that Cognos 8 is fully multi-lingual and concurrently supports meta data models in multiple languages. In practical terms this means that a reporting suite can be developed and distributed across an entire organisation whilst simultaneously allowing users to work in the language of their choice. This fundamental point is one of the essential strands of information delivery within Cognos 8 and ensures that users are buffered from the technical complexity of the underlying data sources and the specific nature of the database that is serving up the information. In fact metadata is displayed in tree-like structures of folders and files in a style that is familiar to any user of Microsoft Windows Explorer. So, navigating the data model is instantly familiar and intuitive.
This is just as well, because recent research shows that business users spend around a quarter of their day searching for information necessary to perform their role in the organisation. So the availability, (subject to adequate security permissions) of any information within the data model to any user, in any Cognos 8 reporting tool is a major boon to the productivity of the individual and the overall responsiveness of the organisation.
Cognos 8 Components
The Cognos 8 applications straddle the entire data model and technology platform. Not only does this ensure the integrity and consistency of information but it also means that as changes are made to data sources and relevant metadata then these are reflected, in the reporting layer or “performance management platform” – in real time, if required. So there is no danger that one constituency of users is working off a different data set from another or that one particular tool shows a different position to another.
The Portal – “Cognos Connection”
The Cognos portal, Cognos Connection, perhaps illustrates best the cohesiveness and ease of use of the Cognos 8 solution as an enabler of performance management. It allows information to be drawn from across any of the performance management applications and assembled on the screen in a style and configuration that is entirely user definable. In addition, any of the Cognos 8 applications can be launched from within the portal. For example, ad-hoc reports can be developed on the fly using Query Studio (see below), and distributed to other users in the organisation. Similarly, a user can open up the scorecarding application, Metrics Studio to create and review metrics.
Behind the scenes, the portal is in effect a collection of ‘portlets' or re-usable reporting elements from which the user can select the ones most appropriate to his needs. For example, he may wish to view a particular set of metrics that are relevant to his role, or display key operational charts and reports. Whilst the defined portlets are generically available, the actual information displayed within them is specific to the individual's security permissions. The sequence or positioning of the portlets on the portal page are entirely user definable allowing a high degree of customisation according to role or personal preferences. Users have access to both publicly available folders of information and reports as well as private folders and task lists. The format in which reports are displayed, (say pdf or HTML) and the frequency with which the portal is refreshed with new information is also user definable. |
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Microsoft Office documents can also be launched from within the Cognos Connections portal. In fact an increasingly popular way of reporting from Cognos 8 is to integrate reporting and analyses directly with presentations in Microsoft PowerPoint.
Planning
A key requirement of a performance management regime is to effect a link between strategic and operational plans so that an organisation and the way that it behaves and deploys its resources is aligned with its strategic direction. This in turn means that if strategy is to be delivered successfully by an organisation it must be clearly articulated and communicated throughout the business. In other words, the strategy must be widely understood at all management levels so that operational plans and day to day activities are aligned with corporate goals and objectives.
In Cognos 8, the planning application, “Cognos Planning”, sits at the heart of the applications layer, drawing on the consistent data model described above and amenable to any of the user reporting and query tools elsewhere within the Cognos 8 suite.
Although it is a ‘standard application' Cognos Planning is highly configurable and well suited to the creation of a wide range of operational plans in different functional areas. It is very quick to build and lends itself well to a Rapid Application Development (RAD) environment or prototyping and as such, enables non-technical personnel to specify and quickly build very precisely tailored applications.
Just as importantly, plans in different functional areas can be linked and published to a common database environment which is inextricably linked to the Framework Manager described earlier. This not only helps to ensure that key assumptions and performance drivers are consistent across the business but also that any information held in this multidimensional environment is available to any user, taking advantage of the Cognos 8 query, analysis or reporting tool of their choice.
Naturally, the ability to roam across data garnered from the whole organisation helps to improve communication and break down functional boundaries. But there is additional process support within the application by virtue of the workflow governing the approval and rejection of plans. As a web deployed application, Cognos planning can be deployed very deeply across the entire enterprise which brings the benefits of better data quality, more responsiveness and a more strategically aligned organisation. Finally, in practical terms, Cognos remains one of the few vendors capable of supporting off-line working, if required.
Query Studio
Query studio is the place in Cognos 8 where inexperienced and power users alike can develop ad-hoc reports and graphics. It is also the place where Cognos displays its long heritage and experience in business reporting, as query Studio is probably the closest one can get to a zero training environment for report generation.
With unsurpassable ease, users can create simple listings, cross-tab reports (in which values are summarised at the intersection of rows and columns) and interactive charts and graphs. Without requiring any knowledge of IT or even previous experience of report generators, end users can develop almost instantaneous results and certainly much faster and more accurately than they could in a spreadsheet environment.
Depending on their user permissions, the available data is displayed in a Windows Explorer style pane on the left side of the screen and a blank box is displayed in the body of the screen. Data elements are simply dragged under mouse control from the data pane to the body of the screen. Query Studio initially displays the data by default as a list i.e. a row for each data element under a column. Reassuringly for novice users, the report appears in real time with the appropriate information furnished by Framework Manager and the underlying data sources.
Thoughtful design divides the functionality of Query Studio between dialogue boxes and function buttons. For example, inserting control breaks and groups in a report is a matter of clicking on the large graphical cross tab button or grouping button. Again the results are revealed in real time using live data so that users gain an immediate appreciation of the end result. Pivoting a cross tab table is also simply a matter of hitting a suitably annotated function button. Establishing conditional reporting or deriving other forms of calculation is handled in dialogue boxes, but in either case the system makes use of information it already knows to buffer the user from unnecessary complexity. For example, calculating report variances between two columns is simply a matter of highlighting them and defining the operand to be used. Similarly, traffic lighting, (conditional highlighting) is simply a matter of defining the range of values appropriate to each colour. Filtering information, i.e. being more selective is also defined in simple drop down boxes. Charting and graphing is a matter of selecting from a variety of graphing options on screen and once created, users can drill up or down through Query Studio reports to underlying data.
Once created the reports can be saved for repeated use or distributed to other users or retrieved on the Cognos portal. They can also form a useful starting point for more complex reports authored in Reporting Studio, (see next section).
Reporting Studio
Report Studio is a “gold nugget” within the Cognos 8 suite and sets an enviable benchmark for reporting capability. It is difficult to categorise it as a product in conventional terms because it blurs the accepted boundaries between applications and dismantles perceived wisdom about what a report is supposed to do. Talk to most users and they will describe a traditional report in fairly rigid terms, based around a fixed column and row format supplemented by spreadsheet style formatting, sort options, control breaks, calculated columns and runtime options. Perceived as passive, static and uninteresting with limited relevance to the cut and thrust of corporate performance management many reports are regularly consigned to the dust heap.
So how does Report Studio differ? In many ways it is more like a web site authoring tool. The product makes no assumptions about paper size and since most reports are likely to be surfaced in a web browser it allows pages of a 'report' to adapt or resize to the browser window. So unlike other products it does not wrap or lose detail but simply reduces or expands proportionately. Like a web page, a Report Studio report can be generated as a series of user definable tables of various dimensions into which the author inserts objects, such as query objects, graphs, text and images or a Flash clip. If desired an image can be held to a fixed dimension so, for example, it does not shrink as a window is minimised. Alternatively, Report Studio can generate statutory reports and returns to regulators which have to be 'pixel perfect' to be acceptable to the receiving body.
In practice there is no limit to the combination of objects and queries within a page and Report Studio permits multi-page reports each of which can be markedly different. Such an approach means that a single report can serve multiple purposes, for one user or a range of readers. Indeed a combination of "bursting" functionality, scheduling and output formats means that a single report can be broken up and the relevant portions delivered at a pre-ordained time to users in different geographies or functional areas by email or via the intranet or directly to a nominated directory as required. A single report can even be delivered in different languages to different users. Attention to detail is impressive as date fields and numerics are also translated into the commonly used formats in that language.
Powerful reports can be generated using a selection of list objects, pivot tables and multidimensional charts. In terms of corporate performance management the potential impact is profound. Users no longer have to scan multiple Excel files but can bring together all their relevant role based information in one place. Links between one report and another can be embedded via hyperlinks and external web sites can be accessed for more detailed information. Spreadsheets can also be dynamically linked. In addition drill through capability to search for more detailed information in, for example, a SAP data warehouse or legacy PowerPlay OLAP cube can be enabled with the context of the search preserved and passed through to the underlying query.
Although graphics objects can be used to grace headers and footers, (objects can simply be copied from one place to another) they can also be used just like a web page for hot spots, roll overs and animations. For example, inventory style reports can be accompanied by picture thumbnails or video clips can be added to commentaries or, for example, the chairman's statement in an annual report.
Analysis Studio
Analysis studio is the Cognos 8 platform tool for analysing large volumes of data using ‘slice and dice' techniques. Its user interface and construction are entirely consistent with the approach adopted by Query Studio and Reporting Studio so that relatively inexperienced users should feel encouraged to explore data. Indeed the results of any queries executed in Analysis Studio can be saved and shared with any other tools within the Cognos 8 platform. For example, a particular view, such as profitability of a product group by region can be saved and embedded as a portlet within Cognos Connection.
The point about slicing and dicing (OLAP technology) is that it allows end users to identify trends and factors affecting performance and to probe more deeply as appropriate, to discover the underlying drivers. With solid underpinning from Framework Manager, users can roam (subject to permission) the entire business model. In this way, Cognos 8 allows cross-functional discovery of business insights and lends proper support for performance management processes that run across the entire business. Different users can ‘engineer' different views of performance appropriate to their role but safe in the knowledge that their interpretation is consistent in principle with analyses derived from other parts of the business.
Metrics Manager
Metric Manager in Cognos 8 performs a vital role in allowing management to widely communicate its objectives and key measures as well monitoring the organisation's success in delivering on its strategy. Key metrics or KPI's (Key Performance Indicators) can be defined for any part of the organisation as expressed through the Framework manager. With the increasing diversity of performance measures into novel areas of no-financial reporting, such as sustainability reporting, the ability of Cognos 8 to harness external data sources is particularly important.
Metrics manager is a comprehensive environment for measurement and is amenable to a wide range of popular methodologies such as Six Sigma and Balanced Scorecard. The metrics are entirely user definable and can be allocated to individual ‘owners' responsible for their performance. The metrics can be viewed in numerous ways, for example, by project, owner or business objective and the application allows the interrelationship between KPI's to be viewed diagrammatically so that the impact of exceptional performance (good or bad) in one business area can be understood in the context of another. Relevant metrics for which an individual is not directly responsible can be added to a Watch list so that their progress can be tracked and monitored. User definable tolerances in association with colour coding allow traffic light reporting of good or bad performance and a system of up or down arrows reveals trends, for example, whether good performance is declining or bad performance is correcting. Performance outside of given tolerances can form the basis of alerts and actions sent to responsible managers by email. Vital operational metrics can be added to a user's portal home page which together with other analytics, reports and drill down capability provides the full context for assessing performance and taking action, if necessary.
In addition to a metrics based view of performance, KPI's can be singled out for reporting as ‘dashboards' which provide a highly visual and uncluttered view of performance, with drill down capability that non-technical business managers may appreciate. Dashboards can be built without any special IT skills and as before, Cognos 8 supports simultaneous multilingual reporting provided that the metadata is defined appropriately.
Event Management
The performance management environment in Cognos 8 can be actively monitored through the use of event management. In essence, user definable agents and conditions are used to describe the circumstances in which the occurrence of an event is reported and certain specified actions are taken. This could be automatic notification of an event by email to one or more individuals, or by a news item on the portal. Alternatively, the happening of a defined event could give rise to some systems tasks such as, a new task, or a data file export or import.
Whichever course of action is taken, the idea of event management is to support a closer focus on activity and a more rapid management response to business insights gained anywhere in the Cognos 8 environment.
Summary
With its roots firmly established in business intelligence and reporting tools for nearly forty years, Cognos has an enviable track record and leading edge expertise in presenting and reporting business information. Over this period, business reporting has become more complex, diverse and forward looking as organisations are increasingly required to satisfy a wider range of stakeholders with different agendas and broader information needs. External information needs are converging with internal management reporting as regulators increasingly seek more openness and accountability. In the face of these demands, performance reporting has to be especially robust and reliable.
Cognos 8 has responded to this challenge by providing a single data model for the organisation which, running on industry standard technology platforms, can be leveraged by a wide range of user definable reporting and analytical tools. The complete Cognos 8 suite not only embeds a consistent business model but it also provides enterprise wide support for reporting processes and cross functional working. The common user interface combined with intuitive functionality allows both non-technical or occasional users and more experienced ‘knowledge workers' to share the same platform for performance management safe in the knowledge that, for example, portals, metrics, analyses, events and reports are consistent.
The result is a performance management regime that can be deployed across all functional areas of the organisation leaving it up to individual users to choose the tools most appropriate to their information needs, experience and style of working. |
| About FSN Publishing Limited |
FSN Publishing Limited is an independent research, news and publishing organisation catering for the needs of the finance function. The report is written by Gary Simon, Group Publisher of FSN and Managing Editor of FSN Newswire. He is a graduate of London University , a Chartered Accountant and a Fellow of the British Computer Society with more than 23 years experience of implementing management and financial reporting systems. Formerly a partner in Deloitte for more than 16 years, he has led some of the most complex information management assignments for global enterprises in the private and public sector.
Gary.simon@fsn.co.uk
www.fsn.co.uk
Whilst every attempt has been made to ensure that the information in this document is accurate and complete some typographical errors or technical inaccuracies may exist. This report is of a general nature and not intended to be specific to a particular set of circumstances. FSN Publishing Limited and the author do not accept responsibility for any kind of loss resulting from the use of information contained in this document. |
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