Last month we published the Performance Management Year-End Quiz  and asked readers to send in what they thought were the correct answers. It must have been more difficult than we thought. The first response we received had all the answers correct. Unfortunately, it was all downhill from there. To give credit where it’s due, that first response came from: Muthu Ranganathan, Principal Product Manager, Enterprise Performance Management, SAP Labs. Muthu knows his stuff.

For the rest of you, the original questions followed by the correct answers are below.

1. Let’s start with an easy one (I hope). What does BPM stand for? Hint: In this case, it is not business process management.
   
   The correct answer is business performance management. Although some vendors go with CPM (corporate performance management) and others choose EPM (enterprise performance management), I still prefer good old BPM because it seems more inclusive. While they all mean exactly the same thing, the words “corporate” and “enterprise” can lead people to believe performance management is only for big companies. How about small to mid-size operations, not-for-profits or divisions/business units of larger companies? All of those entities still think of themselves as a business (whether for profit or not), but might be put off by software with a corporate or enterprise label.
   
   
2. Which new accounting rules will have a major impact on BPM systems in the coming years?
   
   The correct answer is IFRS (International Financial Reporting Standards). As IFRS is rolled out in the U.S. and Canada over the next several years, financial systems will have to be updated to handle both the transition period and the final move to IFRS. BPM is well positioned to be the system of choice to streamline this transition. Other choices: IMRS stands for International Management Reporting Services, the original name of Hyperion Software. U.S. GAAP (generally accepted accounting principles) refers to the accounting rules currently in effect today in the United States. The Delaware Water Gap is a scenic area that has nothing whatsoever to do with this topic, but it is a great place for a canoe trip.
   
   
3. Which of these is not normally part of a BPM system (although it may serve as a source system)?
   
   The correct answer is customer relationship management (CRM). While it often serves as a transactional source system for BPM, much like enterprise resource planning (ERP), it is not generally considered part of performance management. Other choices: financial reporting, predictive analytics and profitability optimization are all standard components of current BPM systems.
   
   
4. Which vendor, after achieving significant BPM success in Italy, entered the U.S. market this year?
   
   The correct answer is Tagetik. After establishing a BPM leadership position in their native Italy (alongside the likes of Hyperion and OutlookSoft) and establishing a presence in most major European countries, they have now set up shop in the U.S. Other choices: Carpio while also having a solid BPM offering started life in the U.S., although their flagship product was originally developed in Brazil. BITAM traces its roots to Mexico where they have a large installed customer base. VeneziaBPM does not exist, but it would be a good name for a company that would start out of Venice, Italy.
   
   
5. ABC Technologies was acquired several years ago by this vendor and its activity-based costing capabilities are the foundation of their profitability optimization offerings.
   
   The correct answer is SAS. This was a wise move as their profitability offerings have been well received in the market. Other choices: SAP also offers profitability optimization, but their activity-based costing capabilities come from the acquisition of Business Objects/ALG. SRC was acquired long before profitability applications became a key part of BPM. SPSS, while a leader in data mining, does not offer pre-built profitability analysis solutions.
   
   
6. Hyperion Solutions, now a part of Oracle, was formed in 1998 by the merger of Hyperion Software and...
   
   The correct answer is Arbor Software. Hyperion Software brought its financial applications and Arbor brought its Essbase OLAP engine forming Hyperion Solutions. Other choices: Baan was a transactional ERP vendor (now part of INFOR) that Hyperion partnered with for several years as a reseller of Hyperion applications. MAI Basic Four was the company where Hyperion acquired the basic foundation for its own ill-fated transactional accounting offering. Sinper, the developer of TM1, provided the underlying technology for Hyperion OLAP, later replaced by Essbase.
   
   
7. Which vendor has gained the most traction (trials and sales) for their software as a service (SaaS) BPM solutions?
   
   The correct answer is Adaptive Planning. With more than 400 paying customers and thousands more on trial or free versions, they clearly have the leading SaaS BPM solution. Other choices: HostAnalytics – while having a robust product set, they have not yet had a significant market impact. This may change with their recent senior management changes. Centage/Budget Maestro has a high-volume of small to mid-size customers, but none of them are on a SaaS version since they don’t currently offer one. Salesforce.com is the undisputed SaaS leader, but they don’t offer a BPM solution (yet).
   
   
8. In our annual BPM Pulse Survey for 2008 (highlights of which can be heard in this webcast replay), which aspect of BPM are most companies focused on this year? Hint: This answer has been the same every year since we started the Pulse.
   
   The correct answer is budgeting. Every year more and more companies are outgrowing their cumbersome spreadsheet budgeting processes and moving to a BPM system. Other choices: dashboards are usually number two or three on the list. Strategic planning has been rising in importance, taking the number two slot in 2008. Consolidation, the perennial cellar dweller, will likely move up the list during the next few years due to its key role in the transition to IFRS.
   
   
9. Several years ago Cognos (now part of IBM) acquired this vendor to form the foundation for their budgeting and planning product.
   
   The correct answer is Adaytum. Other choices: Frango was also acquired by Cognos, but for their consolidation capabilities. eBudgets was a budgeting vendor, but they were acquired by FRx. Comshare had a budgeting solution, but they became part of Geac, then Extensity, and are now part of INFOR.
   
   
10. PBViews, an early leader in performance dashboards, is now owned by what vendor?
    
    The correct answer is Actuate. This one was a little tricky as you’ll see from the other choices. Performancesoft was the name PBviews changed to prior to its acquisition by Actuate. It is now known as the Performancesoft Suite from Actuate. MicroStrategy and IBI are two of the remaining independent business intelligence vendors, both of which have dashboard tools, but not fully developed performance applications.
    
    
11. Bonus question to help people who are not BPM experts: The BeyeNETWORK was founded by two former senior executives from...
    
    The correct answer is DM Review. Ron Powell and Shawn Rogers, cofounders of the BeyeNETWORK, did not work at The Data Warehousing Institute, SearchCIO or Penton Media, publishers of BPM Magazine and Business Finance.

How did you do? Knowing a little bit of BPM history and background can help shed light on current vendor offerings and direction. If you would like to learn more about performance management, stay tuned to my BPM Expert Channel here at the BeyeNETWORK.

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