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Oracle Balanced Scorecard Customer Case Study

German Arciniegas
Director BI Applications – CPM Strategy Team
Ricardo Posada
Sales Director – Oracle Latin America
Manuel Puyana
Principal Product Strategy Manager – CPM Strategy Team
 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

• About our clients

• Profile of a “success story” implementation
• Today’s client presentations
• Treasury of the Social Security of Spain
• Oracle Latin America Division in partnership with
Symnetics (Balanced Scorecard Collaborative)
• Q&A
 About our clients

• In more than 35 countries

• From multiple and diverse industries
• From small to large implementations
• Important government clients
• A key driver for product development
• Oracle and non Oracle shops
• Some follow the Balanced Scorecard methodology,
others simply have custom strategic performance
management systems
 Profile of a “success story”
implementation
• BSC licensed as a response to a tangible need
• There is a “champion” in the management team for
the BSC project
• Serious strategic analysis to depart from
• There is a projected system deployment or cascading
in the organization
• Several business units or departments involved
• System design driven by functional users in
partnership with IT
• Brings up strategic alignment , improvements in
processes and drives organizational change
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Korea Telecom
Executive Senior Vice President &
Chief, Office of Planning and
Coordination.

“… KT has managed to transform its business

portfolio and achieve a remarkable improvement in
financial performance. The BSC was a key driving
force for such accomplishments.
...It has not been merely a performance management
tool but has become KT’s core philosophy and a key
driver for organizational change.”
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Treasury of the Social Security

of Spain (TGSS)

Manuel Puyana
Principal Product Strategy Manager – CPM Strategy Team
 Treasury, Social Security of Spain (TGSS)

• Spanish government institution with 15,000

employees
• Handles contributions of EU$9 Billion/month
• Comprises 52 regions, 508 branch offices and 5,000
customer points-of-contact locations
• Top management believes in Management-by-
Objectives and Continuous Improvement
• Spain is the 9th largest economy in the world with 41
million people
 Treasury, Social Security of Spain (TGSS)

• Spanish government institution with 15,000

employees
• Handles contributions of EU$9 Billion/month
• Comprises 52 regions, 508 branch offices and 5,000
customer points-of-contact locations
• Top management believes in Management-by-
Objectives and Continuous Improvement
• Spain is the 9th largest economy in the world with 41
million people
 Performance Reporting Before BSC Project

• In-house reporting solution plus legacy applications

• Difficult to create and customize reports. Total
dependency from IT organization
• Only printed reports
• No support for strategy management or Balanced
Scorecard Methodology
• Pressure to improve efficiency and transparency in an
increasingly complex and changing environment
• over 1,8M corporate customers and 20M affiliates
 Requirements Scorecard System

BUSINESS
BUSINESS SOFTWARE
SOFTWARE
yyAlign
Alignthe
theorganization
organizationwith
withtop
top yyEasy
Easyto tocreate
createandandmodify
modifyKPI-based
KPI-based
management’s strategic priorities
management’s strategic priorities scorecards
scorecards
yyMonitor
Monitorprogress
progresstowards
towardsachieving
achieving yyEasy
Easyto toadapt
adaptto toorganizational
organizational
strategic
strategicgoals
goals changes
changes
yyFacilitate
Facilitatedecision-making
decision-makingwith
withup-to-
up-to- yyPowerful
Powerfulmultidimensional
multidimensionalanalysis
analysis
date, accurate and consistent
date, accurate and consistent with drill-down capabilities
with drill-down capabilities
performance
performancedata yyEasy
data Easyandandscalable
scalableto todeploy
deployatatall
alllevels
levels
yyUncover
Uncoveropportunities
opportunitiesfor
foroperational
operational of the organization
of the organization
performance
performanceimprovement
improvementat atregional yyWeb-enabled,
regional Web-enabled,intuitive
intuitivereporting
reportingandand
and office levels configuration
and office levels configuration interfaces requiringvery
interfaces requiring very
yyReduce
Reducereporting
reportingdependency
dependencyon onIT
IT little end-user training
little end-user training
and cost of reporting yySupport
and cost of reporting Supportfor forexception
exceptionalerting
alerting
performance colors
performance colors
 New Scorecard System
Solution

T-Sigo (“I Monitor”)

• Oracle Balanced Scorecard
• 9 Graphic scorecards
• 81 Strategic Objective reports
• Over 2,800 custom metrics
• 4 years of historic data
• 1,100 users
• Over 700 daily logins!!
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Implementation Sample Screens

 Benefits of new Scorecard System

STRATEGY
STRATEGYMANAGEMENT
MANAGEMENT REPORTING
REPORTING
yyImproved
Improvedcommunication
communicationwith withregions
regions yySystem
Systemflexible
flexibleenough
enoughto tosupport
support
and offices
and offices reporting requirements
reporting requirements
yyIncreased
Increasedalignment
alignmentbetween
betweenbranch
branch yyVery
Veryeasy
easytotouse.
use.Almost
Almostno notraining
training
managers and central office
managers and central office needed
needed
yyAccelerated
Acceleratedresponse
responseto tostrategic
strategic yyConsolidated
Consolidatedperformance
performancedatadatain
inaa
priorities
priorities single
singlesource
source
yyManagers
Managersfocused
focusedon onkey
keyprocesses
processes yyReduced
ReducedIT ITload
load(as
(assystem
systemisismostly
mostly
yyEmpowered
Empoweredmanagers
managersto tocontrol
controlthe
the
administered by business users)
administered by business users)
performance
performance of their organizationsand
of their organizations and yyReduced
Reducedamount
amountof ofpaper
paperreports
reports
make timely operational changes yyImproved
make timely operational changes Improvedtimeliness
timelinessofofaccess
accesstotodata
data
yyAllowed
Allowedmanagers
managersto touncover yyAccelerated
opportunities
uncover Acceleratedcreation
creationof
ofnew
newreports
reports
opportunities for improvement(easy
for improvement (easy and scorecards
and scorecards
comparison
comparisonwith withother
otherregions/offices)
regions/offices)
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Oracle Latin America

Division
Consulting from Symnetics, partners of the
Balanced Scorecard Collaborative in LA.

Ricardo Posada
Sales Director – Oracle Latin America
 Oracle Latin America Division

• 1750 employees
• Considerable sales growth in the region
• Direct presence in nine countries
• Presence in the entire region through a solid
partnership network
• Number one in Technology in the region
 The need

• Oracle LAD senior management identified a great

potential for growth in the IT Industry in the Region
• We had the strategy but we needed to execute it.
• We wanted our people to feel they were the key
enablers in the implementation of our strategy
• Overall sponsorship was provided by LAD Executive
Committee
 Why did we choose BSC

• Oracle LAD Management identified the BSC as the

most effective methodology to monitor our strategy
implementation and link operations with our strategic
goals
• Management identified that the BSC was a flexible
methodology to use in an environment of constant
change
• BSC was considered a powerful tool to communicate
the strategy throughout the organization
 Why did we choose BSC

• In summary, we wanted to transform Oracle LAD into

a Strategy-Focused Organization (SFO), enabling us
to significantly improve our performance by 2010,
outpacing industry growth rates.
 Implementation Process

• Started by redefining our Vision, ensuring alignment

with Corporate Strategy and Oracle’s Customer Value
Proposition. Initial BSC initiative implemented in 2004
• Created a Strategic Management Office (SMO) to
help in strategy implementation and governance
process
• Conducted annual review and update of strategic
objectives to align with strategic direction
• Implemented quarterly strategic review meetings
(SRM) during FY06
 Implementation Process

• Cascading process for multiple LOBS (SBUS) FY06,

(ongoing process)
• BSC Oracle Application was launched in Q1/ FY07 for
along with the Intranet-based information warehouse
• Next phase: Deploy the Oracle BSC Application for
the rest of the LOBS (SBUS)
 Benefits

• Improve Financial Results by increasing all lines of

business revenue and margin (significant impact in
productivity)
• Better understanding of customers satisfaction issues
(Customer driven culture)
• Focus on core processes to improve strategy
execution
• Enable a People-Care Culture throughout the
organization
• Allow employees to understand their contribution to
the global critical strategic objectives
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Implementation Sample Screens

 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.