Ibm Cognos Tm1 Whitepaper 4t1k5g

IBM Cognos® TM1: A new frontier in enterprise planning

Written by Andrea Leandri, Partake Consulting Netherlands, 26/03/2010

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Introduction: Why TM1? Multidimensional language and its computer programming languages are not a new concept. Their origins are to be traced back in the late 1960s when Kenneth Iverson of IBM first introduced the base foundation for online-analytical-processing (OLAP), a term which actually gets officially coined by “Ted” Codd only in 1993. The roots of Table Manager 1 (TM1) start instead in 1984 when Manual Perez, founder of Applix, was developing the first TM1 version to emerge in the OLAP tool market, at that time still very young, in fact preceding by almost a decade the corresponding Oracle and Microsoft rivals. For IBM Cognos, TM1 is a relative new addition to the IBM Cognos software suite, following Cognos' acquisition of Applix in 2007, just prior to its own acquisition by IBM. The core TM1 solution is a realtime, interactive multidimensional OLAP database with in-memory and write-back functionalities, and is therefore perfectly suited to all sorts of Enterprise Performance Management (EPM) applications.

IBM plans are to further combine TM1’s core multidimensional engine in the next major release(s) of the Cognos platform, both for OLAP reporting/analysis purposes (Cognos BI), as for financial analytic applications like planning, budgeting and forecasting (Cognos Planning) and consolidation (Cognos Controller). In their pursuit of this goal they have already released a newer version of TM1, namely 9.5. TM1 9.5 differs from its 9.4 predecessor as a seamlessly integrated cube engine/platform which allows incoming and outgoing information flows to and from the other Cognos software packs. As such it greatly impacts the scalability of the current EPM suite and unfolds brand new grounds to develop a better solution. Keeping in mind the above we shall explain first the core strengths of TM1 and only then dive into what IBM has in stock in of real advantages for somebody looking to enhance their EPM environment.

Figure 1 Example of Enterprise Planning with IBM Cognos TM1

Source: IBM website

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IBM Cognos TM1: The OLAP engine TM1 is a multidimensional database engine, based on a considerably different architecture than the current Cognos' PowerCubes (Powerplay) or the base level engine of Cognos Planning (Analyst) and even any of its competitors (Oracle Essbase and Microsoft Analysis Services). The main two differences are that TM1 is a memory-resident OLAP database while offering interactive read/write functionality. The in-memory functionality allows for faster dimensional processing than any other disk based multidimensional engines (e.g. Oracle Essbase BSO cubes). Figure 2 Median Data Load/Calculation Performance (in minutes)

tool among its three main components (BI, Planning and Controller), picking up roles as: 1)

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Updating in real time the content of Reports and Dashboards built in IBM Cognos Business Intelligence with data modifications occurred in IBM Cognos Controller or Planning. Providing the -friendly OLAP functionality to slice and dice, drill up and down through the set of data enhancing the analysis of the data. Processing IBM Cognos Controller data, combine it with other data sources, calculate and/or feed it to an IBM Cognos Planning application. Processing IBM Cognos Planning data, combine it with other data sources, calculate and/or feed it to an IBM Cognos Controller application.

The result is described in a simple manner by Figure 3 where IBM Cognos TM1 acts as a linking pin among the current IBM EPM suite: Figure 3 TM1 enhances the current IBM EPM suite acting as a data provider with OLAP functionality

Source “OLAP Survey 4: Key Results” by Applix

Due to its nature, common cube data explosion problems are less of an issue when complex queries are fired against TM1 as they are nevertheless answered in what a human brain can resolve as realtime. Calculations are triggered by any change and fired automatically. The maintenance of the model is central and all cubes pick up the modifications onthe-fly. To exploit the maximum performance a server can deliver, TM1 OLAP engine comes also in a 64-bit flavor. Thanks to its performing OLAP nature TM1 can considerably enhance the overall experience of the IBM EPM suite solely by acting as a data provider

Secondly the read/write functionality translates in a technology that can also be used for input online (in contrast to Microsoft SSAS and Oracle Essbase ASO Cubes), breaking through the common

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understanding of BI as a science purely devoted to reporting and therefore one way communication. The combination of RAM-based, read/write technology as "spreadsheet like” interactivity, slice and dice, drill up and down, data held in one central location, of massive data volumes and calculations/aggregations done in memory resulting in an immediate reflection of the outcome describe the true essence of TM1. Because of these reasons TM1’s usefulness is not captured by functioning only as a data sharing interface but it results in an excellent candidate to replace or enhance one’s planning, budgeting and forecasting processes as well whether they are based on Excel or any other analytical tool. In fact seeing how much commitment IBM is placing on TM1 we strongly believe that it will phase out IBM Cognos Planning itself.

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The possibility to create personal scenarios, namely sandboxes. This allows the creation of personal shadow copies of the data. Only when input is truly finalized a copy can be submitted and integrated into the full model.

Figure 5 TM1 and "What-If" Analysis

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Figure 4 TM1 is a very powerful Planning solution and as such can improve the current IBM EPM suite

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The possibility to Undo&Redo. As simple as it may sound imagine the convenience when working on numbers to actually undo calculations, data input or data loads. Integrating the powerful workflow manager available in Cognos Planning: TM1 Contributor interface as the workflow manager to guide and secure s data input.

Figure 6 Workflow is managed by TM1 Contributor

Source: IBM website

IBM Cognos TM1: IBM add-ons The TM1 architecture makes dynamic analytics (what-if analysis) truly possible thanks to the read/write functionality and real-time outcome reflection of any kind of input. It already is a perfect planning, budgeting and forecasting tool but to make what-if analysis even more effective, IBM promptly added several features to this power pack of which only four are mentioned below:

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Completing the online input interface by adding extra features that s always looked for while submitting their planning

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Figure 7 Online features available online

Next to those IBM has been committed to fully integrate TM1 into their IBM Cognos EPM suite. The integration of TM1 9.5 (currently available) into IBM Cognos BI has reached a level mature enough that exploits the real-time OLAP engine of TM1, as well as single sign-on security, in all their BI tools: Analysis Studio, Metric Studio, Report Studio, Query Studio, Event Studio. To achieve the integration a Framework Manager model needs to be built or for a quicker result TM1 Viewer Portlets can be used. When taking into consideration IBM Cognos Controller, version 8.5 is being delivered with a new integration component called Financial Analytics Publisher. This component automates the process of extracting data in close to realtime from IBM Cognos Controller into IBM Cognos TM1. Once configured the TM1 cube will be updated continuously. On top of the TM1 cube, IBM Cognos BI applications or other ed viewers can be used for both inprocess and management reporting as well as adhoc analytics. The solution is optimized for many simultaneous s and suits both legal and management reporting.

Next we’ll discuss how your enterprise planning can really benefit from the latest features of TM1.

IBM Cognos TM1: Features and Benefits for enterprise planning Table 1 IBM Cognos TM1 Highlights

IBM Cognos TM1 Highlights I. II. III. IV.

V. VI.

Reduces planning cycles by 75% and reporting from days to minutes. Is owned and managed by Finance and lines of business. Provides exceptionally fast performance for large, sophisticated models and large data sets. Features personalized planning and analytics— within a managed planning process—to explore performance gaps and validate corporate drivers. Provides a flexible modeling environment that requires no programming or traditional IT skills. Offers a choice of interfaces: Microsoft® Excel®, TM1 Web and the Contributor client for managed participation

With IBM Cognos TM1, you can rapidly analyze and model planning requirements for your entire organization and use them to anticipate the correct course of action for better business outcomes.

Figure 8 IBM Cognos Controller 8.5 and TM1 data flow

More than budgeting and forecasting software, Cognos TM1 is a complete enterprise planning solution. It s a full range of business requirements from high performance, real time financial analytics, such as for customer and product profitability, and flexible modeling, to enterprisewide contribution from all business units. In addition, it facilitates use of planning best practices such as driver-based and rolling forecasting.

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Figure 9 IBM Cognos TM1 Real time analytics

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Source: IBM website

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A multidimensional, 64-bit, in-memory OLAP engine provides exceptionally fast performance for analyzing complex and sophisticated models, large data sets and even streamed data. Cognos TM1 s a full range of enterprise planning software requirements—from high-performance, real-time profitability analysis, financial analytics and flexible modeling to enterprise-wide contribution from all business units. Personal scenarios created with advanced personalization enable an unlimited number of ad-hoc alternatives so individuals, teams, divisions and whole companies can respond faster to changing conditions. Analytic processing automates contribution from systems and staff to help eliminate delays in rolling out plans—a 75% reduction in planning cycles is possible. Cognos TM1 facilitates the use of best practices such as driver-based planning and rolling forecasting. Model design and data access adapt to your business process and present business information in familiar formats. Managed contribution makes it possible to personalize hierarchies, dimensions and rollups and to receive an up-to-the-minute

status of every participant in the planning process. With access to the IBM Cognos Performance Management platform, you realize consistent scorecarding, reporting and analysis—the complete picture from goal setting and planning, to measuring progress and reporting. Finance and lines of business have total control over planning, budgeting and forecasting processes. You can work with a choice of interfaces: Microsoft® Excel®, Cognos TM1 Web or Cognos TM1 Contributor.

IBM Cognos TM1: To conclude TM1 is certainly bringing about a wind of change. Its functionalities will increase the effectiveness of the current IBM Cognos 8 EPM suite. The traditional Business Intelligence tools like Query Studio, Reporting Studio, Analysis Studio, Dashboard and Scorecarding, Event Studio will benefit by the real time data feed of TM1 in producing up to date outcomes essential to decision making. IBM Cognos Controller and IBM Cognos Planning integration with the BI portal will be enhanced in of speed and interaction adding value to data analysis for s. The combination of robust multidimensional engine and IBM add-ons are an essential asset for typical financial applications dedicated to planning, budgeting and forecasting. If you are lacking a true “What-if” scenario modeling and feel that the dataflow from the input stage to the report consumption is too slow or complex, TM1 will answer your wishes. To conclude TM1 9.5 sets already solid grounds for use within the IBM Cognos EPM suite as a multifunctional tool. When peeking over the future IBM’s roap the expectations for an even stronger one-stop solution for its EPM environment are going to be certainly met and we are even not talking years…

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Partake Consulting: Who are we? We are experts in the implementation of Enterprise Performance Management Systems and as such the areas in which Partake’s consultants help our clients implement a solution are:

Financial Consolidation Management reporting Operational reporting Planning, budgeting and forecasting Strategic modeling Data transformation and loading Business Intelligence

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have helped our customer base to grow beyond 200 customers among various markets and countries. We are confident that among us and our partner network all customers’ wishes will be met.

As our consultants are multi-skilled and come with many years of experience our client’s projects are managed and their solutions implemented without wasting time and money on all companies large and small, whatever the sector they need to manage and report on their performance. Next to a “classical” implementation where we work closely with customer’s internal teams to ensure the desired outcome we can help in a software selection by sharing our real project experiences as we work will all major vendors, or deliver a “Turn Key” implementation or simply experienced project management.

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Consulting Services are not our only core competence. In fact Partake can deliver a complete offer to our customers by ing existing environments/applications or train the customer’s teams to a level advanced enough to handle ongoing istration or simply delivery technical infrastructures. It’s not only what we do but also how it’s done. A few basic working principles such as:

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