CPM combines effective and integrated consolidation, monitoring, abstraction and analysis, and intelligence tools critical to the success of corporate management, something which the ordinary spreadsheet or the primitive pen-and-paper driven approach cannot provide.

CPM delivers a total enterprise view of the organization’s performance which helps in the execution of strategic and tactical goals. CPM helps monitor and analyse performance against goals, producing the understanding necessary to continously recalibrate plans and budget. It is this closed-loop cycle of planning and heads-up visibility of performance that makes it possible to change course on a dime and thereby gain competitive advantage.

Performance management has come a long way since its beginnings. The new mantra of performance management is to go beyond traditional financial metrics (actual versus budget for example) for a broader, more holistic view of all the critical indicators that show how well a company is executing against strategy. That means joining goal-setting (planning and budgeting) with scorecarding (monitoring and measuring) and business intelligence (analysis and reporting on actual business performance). It also means providing information to three levels of information consumer in the organization, those who formulate strategy, those who execute against it, and those who carry out day-to-day transactional activities.

‘Next Big Thing’ or ‘Passing Fad’
Today the sharper focus on corporate governance based on ethical business standards, is one key reason to believe corporate performance management will not be merely a passing fad. Debacles like Enron, Worldcom and Andersen Consulting have changed the way businesses are managed. Boards and management teams have to take greater responsibility and show a level of transparency that was unheard of until now.

Most manufacturing companies already have an enterprise applications transaction engine, which is used to record detailed operational activities of the business such as sales orders, purchase orders, manufacturing plans, capacity, dispatches, receivables, payables, and so on. If the data held in that transaction engine can be harnessed and transformed into relevant, useful and manageable information, then the benefits from the enterprise applications investment can be delivered at last. And there will be a direct link between the way organizations measure and understand the business and the detailed transactions that are needed (and probably need to improve) to make it operate.

Let’s examine the global business landscape to get a better handle on whether CPM is here to stay. Businesses today, be it a small company in Chengdu, or a multinational corporation operating across 80 cities, are faced with pressures to be more competitive, agile and responsive to market changes. They are also under tremendous pressures to maintain high levels of corporate governance. So, on one hand, businesses need to empower their staff to make decisions but they also need to maintain a sound framework for control, accountability and security.

Legal and regulatory mandates, together with challenging economic conditions, demand performance that is consistent, repeatable, and auditable. In order to achieve such performance, organisations need to establish a high level of control over business practices and processes. Connected processes will help enforce control by enabling greater consistency and efficiency and easier monitoring. CPM also facilitates a larger percentage of time devoted to solving business problems instead of managing data.

With decision making occurring more frequently and at every levels of an organization or enterprise, companies are investing in tools that will provide their decision makers direct, accurate, and timely and correct information. These decision making managers will need such information to effectively carry the companies’ objectives and targets. Also, as organizations continue to expand, collaboration in an accurate and fast manner will be more important than ever to help managers of different departments or levels formulate strategies for growth and align their strategies with the operation plans of the company.

From the above discussion, it is safe to conclude that CPM is not just another passing fad. It’s here to stay as companies need technology to effectively facilitate the dispersal and use of accurate, timely information for each decision maker to contribute, to improve performance and be transparent in their actions for the company.

Key Drivers Forcing Companies to Look Towards CPM
There are several key drivers that are forcing companies to look towards CPM as the next big thing. These include:
1) Regulatory Requirements: Investors and stakeholders across the globe are demanding quality and transparency of disclosure of the highest order resulting in regulations such as SABOX in the US and IFRS in Europe. In many cases, these demands is driving an organization’s P/E ratio.Take the Sarbanes-Oxley compliance requirement for instance, this requirement is likely to drive increased adoption of business performance management solutions. Our interactions with customers indicates that a growing number of customers are leveraging their investment in financial reporting software to meet compliance requirements and also keep pace with a dynamic and highly complex business environment.

Because we integrate data from multiple sources and provide a common view across the enterprise, we enable an integrated financial and performance management process that aligns tactics with strategies. Such a comprehensive solution not only helps meet compliance requirements but also provides the capability to increase efficiency and profitability across the organization.

2) The CIO / CFO Convergence: The convergence between the CIOs and CFOs needs in organizations is yet another key driver . Recent studies have shown that the most forward looking and breakaway CIOs rank Business Intelligence in its broadest sense (that includes CPM) as their number one priority, much as they acknowledge security as a close second.

According to a key research finding from an CIO Insight article published in October last year, IT alignment is important for achieving corporate growth. In the article, the writer, Allan Alter, said, “80 percent of for-profit companies say increasing revenues rather than reducing costs is their primary strategy for improving earnings. That means that the never-ending task of aligning IT with the business is now focused on launching new products, improving speed and service, and supporting mergers and acquisitions.”

Alter’s article was based on the magazine’s survey of more than 1,000 business and IT executives.

3) The Effects of Globalization: The effects of globalization have clearly validated the notion that the world is indeed flat! Companies in Asia are no longer competing with themselves, they are truly competing with world-class organizations in every part of the world. Outsourcing has further flattened the world in a very phenomenal way.

The World Is Flat, written by Pulitzer prize winning author Thomas Friedman is a national best selling book in the US. What Friedman means by “flat” is that sometime in the late 1990s a whole set of technologies and political events converged. This included the fall of the Berlin Wall, the rise of the Internet, the diffusion of the Windows operating system, the creation of a global fiber-optic network, and the creation of interoperable software applications, which made it very easy for people all over the world to work together and that leveled the playing field.

The above 3 phenomena are clearly driving forces behind performance management.

While many elements of the IT environment are relatively unchanged by virtualization, others are impacted more dramatically. For example, organizations with expanding virtual infrastructures now find backup and recovery a proximate and pressing concern. Challenged with meeting recovery time objectives (RTO) and recovery point objectives (RPO), even as backup windows and storage space shrink, organizations must be able to quickly back up their virtual environments and recover not just an entire virtual machine but individual files on that machine.

To that end, a growing number of companies are opting for technologies that offer dual restore capabilities from a single backup. With these tools, organizations can restore a single file or an entire image from just one backup pass. This more efficient and flexible approach to protecting virtual environments dramatically reduces server, network, and storage requirements for data protection while providing significant improvement in recovery time and reliability.

Better Backups, Better Recovery
With off-host backups of virtual machines now possible, the impact of backup processing on the server and hosted virtual machines is significantly reduced. This allows for more frequent backups.

Yet, traditional backup solutions either back up only at the vmdk level—that is, the entire virtual machine—or require two backup passes to be able to restore single operating system file restores as well as vmdk restores. Recognizing the benefits of being able to perform either type of restore, organizations prefer to have ultimate restore options when things go wrong.

For example, if a virtual machine is infected with a virus or inadvertently damaged due to user error, a single file restore is of little use; the entire virtual machine needs to be restored. However, if the user deletes and needs to recover a single file—the most common type of restore operation—restoring the entire virtual machine is not only excessive but also requires downtime.

At the same time, aggressive RPOs and RTOs remain a requirement for keeping mission-critical applications constantly available. Meeting those objectives requires tight integration of the backup and recovery process with the applications and databases they are protecting, whether in physical or virtual environments. It also requires granular recovery to improve recovery time, instant recovery options from online images, and complete system recoveries of operating environment, application, and data in minutes.

Consequently, new backup and recovery tools are making possible either type of restore while retaining the performance advantages of an off-host backup and a single backup pass. At the foundation of these capabilities is technology that backs up at the vmdk level and then maps, catalogs, and backs up individual files as well.

Particularly useful for larger virtual installations based on shared storage, the integration of this backup technology with the virtual server technology enables organizations to manipulate and control virtual snapshots just as they would array or software-based snapshots. Snapshots of virtual machines are created and then mounted to the backup proxy for backup. This approach almost completely removes the backup processing overhead from the primary virtual server and allows for rapid backup of virtual machines.

What’s more, when such backup capabilities are combined with deduplication, additional benefits emerge. By deduplicating backup data prior to transmission, the processor, network, and storage resources required for the backup process are reduced by one or more orders of magnitude, according to some studies. This comprehensive approach enables fast, low-impact virtual infrastructure backups with dramatically reduced backup windows and recovery times. It also makes virtual client backup feasible for lower-scale virtual deployments that do not employ SAN technologies

Integration and Automation
It is no surprise that backup technologies with tighter integration with virtual server technologies offer additional benefits to organizations. For example, the integration of a snapshot wizard with the virtual server can ease backup policy configuration. Also, the direct integration of a configuration wizard with the virtual infrastructure can help ensure that IT administrators have a straightforward and easy-to-use graphical interface from which to configure and manage their virtual machines. With such a GUI, administrators can quickly provide login credentials, define other types of virtual servers, and more.

A number of tools also provide for automatic discovery of virtual servers and machines. This capability is often offered as part of the backup policy to make it easier for administrators to select specific or all virtual machines associated with an enterprise-level virtual server.

Virtual Evolution
Virtualization not only provides redundancy for mission-critical applications and data, but it is also effective as a tool that enables IT to extend limited resources within overcrowded computing environments. Its use will likely continue, even as a growing number of organizations deploy virtualization not simply in test or development environments but in production environments as well. Indeed, many enterprises have virtual servers running both business and production applications today. Furthermore, enterprises that deploy virtualization are recognizing that it is not a one-time ROI-based project but an ongoing strategy for operational efficiency.

As the adoption of virtual technologies increases, businesses must take a critical look at the tools and technologies for backing up and restoring these virtual systems and their data. While traditional approaches to backup and recovery in the physical world do not translate well in virtual infrastructures, many of the requirements remain the same. Organizations must be able to continue to increase the efficiency and cost-effectiveness of their IT operations through the use of virtual technologies while also delivering on strict RTOs and RPOs.

Consequently, a growing number of enterprises are leveraging innovative backup and recovery technologies that deliver granular file-level and image-level recovery from a single backup operation. When used together with data deduplication and tight integration of backup technologies with virtual technologies, these tools enable fast, low-impact virtual backups that dramatically reduce the challenges of data protection while offering measurable improvements in reliability as well as recovery time.

The nature of business today is that change is the only constant. Organizations, be they public or private entities, are faced with change as a result of reorganization, business expansion, competition, the impact of new technology, mergers and acquisitions, industry or government regulatory controls and a myriad of other factors.

The reality is that any change that affects an organization will have a flow-on effect to the IT organization. One can say that an organization’s ability to adapt to change is directly related to its IT system’s ability to adapt to those changes. There are many examples of organizations that have suffered considerable harm to their reputations and market values through IT disasters that resulted from poorly implemented systems, and upgrades that went wrong.

From the release of the first commercially available relational database system in 1979, to support for Very Large Database (VLDB) requirements in the late 1990s, to databases for grid computing environments in recent years, the last 30 years have seen many important innovations with new server architectures emerging to support mission critical systems.

In the past, customers had fewer choices in server architectures as symmetric multiprocessing (SMP) servers were almost the de-facto standard for UNIX-based applications. Today however, we witness the emergence of architectures such as blade servers, clustered servers and new operating systems such as Linux.

Back then, moving from one vendor’s SMP server to another was relatively simple as benchmarks could be conducted to ensure that the new server would deliver the required performance. Today, customers looking to migrate from a UNIX SMP architecture to a Linux architecture based on blade servers are faced with a significantly more complex task. The potential for errors is higher and this can lead to decisions that bring on disastrous results.

Change Assurance

Data centers have changed fundamentally in the way they look and operate with the introduction of grid computing. From silos of disparate resources to shared pools of servers and storage, organizations cluster low-cost commodity servers and modular storage arrays in a grid.

Databases built for grid environments have enabled organizations to improve user service levels, reduce downtime, and make more efficient use of their IT resources while still increasing the performance, scalability and security of their business applications.

Nevertheless, managing service level objectives continues to be an ongoing challenge. Users expect fast and secure access to business applications 24/7, and IT managers must deliver without increasing costs and resources.

Databases play a key role in ensuring high availability. In the next generation database, the ability to run real-time queries on a physical standby system for reporting, or the ability to perform online, rolling database upgrades by temporarily converting a physical standby system to a logical standby, or a snapshot standby to support test environments, can all help ensure rapid data recovery in the event of an IT disaster.

Application Performance Testing– Necessity, Not a Luxury

To understand the impact of Application Performance Testing to businesses, let us take a closer look at a key IT issue for organizations in relation to managing change. During the lifespan of any application system, changes are a fact of life but the complete impact of these changes has to be known before the application goes into production. Common system changes are:

• Updates to an application requiring it to be moved from a testing to a production environment
• Upgrading or patching the database or operating system
• Changes to the database schema
• Changes to storage or network
• Testing a potential new hardware platform (e.g. comparing UNIX platforms)
• Testing a potential new operating system (e.g. migrating from Windows to Linux)

In order to provide some structure to this process, a range of tools has been released to help customers better manage this process and provide some capability for customers to test application performance. Despite helping to make the testing process easier, it requires significant investments of time and effort to gain a functional understanding of the underlying application of many of such tools before the testing workloads can be generated. In a vast majority of cases, the bigger issue is that the resulting workloads are to a large degree, artificial.

Despite extensive testing and validation – both time consuming and expensive – the success rate has traditionally been low as many issues still go undetected and application performance can be affected, leading to potentially disastrous outcomes.

In order to help customers deal with application performance testing, the latest release of the industry’s leading database incorporates new features that allow customers to capture a production workload which can then be “replayed” on a test system to show how the application functions in a new environment.

The key difference in this approach is that all external client requests directed to the database can be captured — so the real workload is captured and can then be replayed on a test system. This will throw up any errors or unexpected results (i.e. a different number of rows returned by a query) using the comprehensive reporting system provided.

With this innovative feature, organizations will be better prepared to cope with change — without fear.

1. Develop a written hardware policy. – Before you do anything else, your IT department should have a written hardware policy. This document doesn’t have to be the Magna Carta, but it should outline all aspects of hardware standardization, purchasing, support, and acceptable use. A carefully planned and skillfully implemented policy should improve your IT department’s efficiency, cutting down on unnecessary purchases.

2. Standardize equipment. – While not every user or department has the same needs, you should still standardize your equipment as much as possible. For example, TechRepublic employees have a choice of two laptops. Both are from the same manufacturer and have many interchangeable components: batteries, power supplies, hard drives, and docking stations. This practice increases troubleshooting efficiency and allows the IT department to purchase equipment in bulk and from a single vendor. This tip goes hand-in-hand with Number 3 and Number 4.

3. Buy in bulk. – Avoid purchasing single components or systems whenever possible. Manufacturers and retailers often offer discounts for large purchases. This may take more advanced planning, but the savings are worth it. TechRepublic contributor David Williams has found this technique to work especially well for blank storage media.

4. Use a single vendor. – This suggestion relates closely to Number 3. Using a single vendor helps develop bulk purchases, allowing you to exploit bulk-purchase discounts. Try to find a single vendor for all your server, workstation, and laptop needs. This will streamline equipment purchases, aid in standardization, and allow your organization to develop a long-term vendor relationship. I can say from personal experience that vendors treat long-standing clients better than the occasional buyer.

5. Use refurbished and hand-me-down equipment. – Ted Laun, a senior IS technician at TechRepublic, suggests using refurbished monitors if possible. Why pay full price for a new monitor when a refurbished one will work just as well? Training rooms, computer labs, community centers, and other locations where systems aren’t used every day are perfect places for refurbished and hand-me-down equipment.

6. Make sure the user needs it. – Before buying that 19-inch LCD monitor or cutting-edge system, make sure the user actually needs the equipment. While your CAD designers may need the latest and fastest technology, most average users do not. Be critical of every request that comes across your desk. Unless the user can show a legitimate business reason for having a piece of equipment, don’t buy it.

7. Limit laptop use. – Although laptop prices have declined, a laptop and docking station (with external monitor, keyboard, and mouse) is often significantly more than the purchase price of a regular desktop. Only provide laptops to employees who regularly work away from the office.

8. Choose peripherals carefully. – Contributor Michelle Hutchinson reminds us to use equipment appropriate for its work environment. Several of Michelle’s users are in very dusty plants. Because of this, Michelle was constantly replacing mice. They finally switched to optical mice, which solved the problem. “I know it’s on the lower end of money-saving ideas,” Michelle said, “but it does add up.”

9. Use alternative hardware solutions. – Michelle also suggests considering options other than standard PC systems. The same users mentioned in Number 8 switched to a thin client system on their assembly line because of the environment. “Upgrading every PC on the line was getting expensive,” Michelle said. “By using thin clients connected to one server, we now upgrade one PC rather than 20.”

Cut back on pagers – Jeff Davis, a TechRepublic columnist who works for an application services provider, said his organization’s office manager recently saved their company almost $900 a month by eliminating unnecessary pagers. Jeff’s company provided pagers for many IT and non-IT employees. The office manager simply asked everyone with a company pager if they really needed it. Because most employees were also carrying personal or company-provided mobile phones, they discontinued service on nearly 40 percent of their pagers.