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The Future of Cognos Planning

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Some time back, my colleague Steve asked about the future of the former Applix TM1 product. From our observations of the IBM Cognos sales/marketing team, we now know he asked the wrong question. First a bit of history...

Cognos acquired the Adaytum product line earlier this decade to enter the budgeting/forecasting business. They acquired two different, but linked products: Analyst, a desktop OLAP tool for analysis of a central budget model as well as administration of the 2nd product, Contributor, a browser "plug in" that was distributed to the user community that actually works the process. From these beginnings, Cognos built a very strong presence in budgeting/forecasting systems. Which is saying quite a bit given the technical inferiority of this approach. In fact, the two products never really worked well together and imposed significant issues across the budgeting/forecasting process. While deployed in great numbers, the product just does not scale well and requires significant (and ongoing) IT assistance. In one case, a well-known leading office products retailer actually uses more server technology to run Cognos Planning than they do their entire ecommerce site!

Where does this bring us to? In fact, after pursuing a sales strategy mostly focused around the decentralization of the budgeting and forecasting process (playing to their strengths with the lightweight and low cost Contributor product), IBM has shifted directions with Cognos. Enter TM1 and the new approach: Contributor for the distributed process and TM1 for the central database model. This is actually a good thing as TM1 is a very strong database that can compete in a new area for Cognos (eg those Finance clients that actually get to make their choice of tools). While it seems to ratify the approach of major competitors to Cognos, it will be interesting to see how this is received in the market.

One challege I will lay down for Cognos. We saw you buy a good budgeting/forecasting tool (Adaytum) and sell it hard for 5+ years without ANY significant enhancements to the product (or completing integration with the Cognos 8 infrastructure). Now you have TM1, a good database product, but with little application support for budgeting/forecasting (most TM1 sales are to the smaller clients who will live without all the functionality a budgeting/forecasting product for the enterprise needs). Build a true enterprise-class budgeting tool from the two technologies you have acquired. Please?

Posted by Scott Crow on Mon, Jun 02, 2008

COMMENTS

Disclaimer -
I first started using Adaytum products in 1997, joined the company in 1999, and left Cognos to work independently at the end of 2006. I make my living implementing the Cognos product suite.
Scott -
I came across your blog via way of a Google alert, and having read this post, feel compelled to reply.
It is certainly true that the acquisition of TM1 has given Cognos/IBM some interesting alternatives with regards the future development of the planning products.
However, I can only assume that your comments regarding the functionality and architecture of the existing Analyst and Contributor products are either based on near total ignorance of the facts, or driven by a desire to obfuscate your readers.
Hopefully those coming across this blog will take note of the products that your company generates its revenue from, and draw their own conclusions.

posted on Tuesday, June 03, 2008 at 4:32 AM by Gerald


Gerald,
Glad to hear that our blog has generated some interesting discourse, but discouraged that you went immediately to bias in your response.

First some facts.

#1 - Strafford has implemented Cognos and would do so again if a client wanted to do so. As a consultancy focused in financial reporting and budgeting/forecasting we are very capable of implementing any tool our there (and have turned away opportunities to partner and implement just about every major tool in the space). Great luxury of being us -- we are not stuck in any one technology stack and thus that bias is minimal.

#2 - Our business is always driven by the needs of our client base. This base changes over time, but current clients with the most demanding requirements (to us) generally are in the $500m-$5b revenue category.

Any review of client bases across the competitive technologies would tell you that Cognos is nowhere near a market leader in finance among companies with revenue in these areas. So, perhaps our thoughts are biased by the needs of these type of clients.

Now, to your thoughts about Analyst/Contributor we would be interested in your opinion (and a review of the facts) as to major changes in the Planning product since acquired by Cognos.

We know several folks that have been associated with Adaytum -- their view is that Cognos let a pretty good product die on the vine while resisting the need to go with a true multi-dimensional database supporting the product. Thus one of the major areas that creates tons of issues that Cognos clients tell us everyday.

Response?

Perhaps another anecdote -- we spoke with (but did not engage) a major biopharmaceutical company that just traded out 900 Cognos Analyst/Contributor licenses due to failure of the solution along many of the lines we could discuss at length (lack of central db, lack of timeliness in reviewing updated data, need to "publish" reports for view, lack of integration across major areas of forecasting, etc.).

I just simply couldn't make this stuff up, could I? We have been telling folks for the last 2 years that we saw the need for a major update of the Analyst/Contributor product and I believe the facts support our case.

On the future, we now believe we are seeing IBM act to complete that update. It might not be done with a grand announcement, but it is coming. We firmly believe IBM is telling us that Planning is a dead product while Contributor will merge with TM1 to form the end product, thus competing nicely with market leading products from Oracle and SAP.

In some respects time will tell. OTOH, we are engaged in several selling cycles where Cognos reps are pitching this, so should they be successful I think we will see more of this?

Again, I do not think this is negative to Cognos -- they are following the needs of the paying clients, which we all must in the end. It is certainly negative for those that have invested with Planning (and perhaps Contributor) over the past year or two as major change is coming...

Scott

posted on Tuesday, June 03, 2008 at 9:53 AM by Scott Crow


Scott,
I agree with you that changes will come since TM1 acquisition. Unfortunately I didn´t see major updates at Analyst portion of planning solution, only in Contributor, much of then at the back office (bi integration, near real time publishing, portal integration) and a litlle in front office (rules validation and document attachments) now in this last version (8.2, 8.3).
Integration of TM1 and Contributor could be a challenge. Very different environments.
Integration with TM1 and BI portion is on the way, maybe released to the end of this year.
I believe in major improvements in TM1 to scale the database for use of thousands of users without then need of application redesign and maybe incorporating some unique Planning Analyst functionality like virtual dimensions and BIFs.
Best regard,
Pablo Labbe

posted on Tuesday, June 03, 2008 at 10:54 AM by Pablo Labbe


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