Alacrity Results Alacrity Results Management (ARM)Management (ARM)

Alistair DavidsonAlistair Davidson

Eclicktick Corporation: Eclicktick Corporation: www.eclicktick.comwww.eclicktick.com

Howard WeinsteinHoward Weinstein

Cherniak Software: Cherniak Software: www.cherniaksoftware.comwww.cherniaksoftware.com

Draft 3.1 November 5th, 2003

Alacrity Results ManagementAlacrity Results Management

ARM – innovative proven support ARM – innovative proven support for performance improvement with for performance improvement with superior value and capabilitiessuperior value and capabilities

Lower costLower cost More capabilitiesMore capabilities Higher extensibilityHigher extensibility Distributable over multiple serversDistributable over multiple servers Possibility of software agents and Possibility of software agents and

genetic modeling attached to genetic modeling attached to systemsystem

What is Alacrity Results What is Alacrity Results Management Version 7.303?Management Version 7.303? A component based object oriented “end A component based object oriented “end

userized” application that provides:userized” application that provides: Information warehouse collection from Information warehouse collection from

heterogeneous data sourcesheterogeneous data sources Large scalability and robustnessLarge scalability and robustness

Modeling capabilities that can managed Modeling capabilities that can managed complexitycomplexity

Consolidation capabilitiesConsolidation capabilities Modeling with different models working off same Modeling with different models working off same

granular datagranular data Performance reporting and scorecardsPerformance reporting and scorecards

Integration with Excel for reportingIntegration with Excel for reporting Rapid construction and modificationRapid construction and modification

Batch construction via descriptive meta-languageBatch construction via descriptive meta-language Manual constructionManual construction

Why Is ARM Different?Why Is ARM Different?

Developed by innovators in the strategic planning and Developed by innovators in the strategic planning and strategic IT planning spacestrategic IT planning space

Has been used for large scale data collection, budgeting, Has been used for large scale data collection, budgeting, consolidation, reengineering data tracking, IT portfolio consolidation, reengineering data tracking, IT portfolio tracking and market modelingtracking and market modeling

Designed to deliver fast large and complex projects on Designed to deliver fast large and complex projects on impossible deadlinesimpossible deadlines

Designed to eliminate the time, costs, checking and Designed to eliminate the time, costs, checking and frustrations of trying to make multiple technologies work frustrations of trying to make multiple technologies work togethertogether

Designed to be a long term sustainable architecture for Designed to be a long term sustainable architecture for rapidly changing problemsrapidly changing problems

The underlying database technology is in production with The underlying database technology is in production with 200+ large companies200+ large companies

ARM is in production in large multi-location environments ARM is in production in large multi-location environments where it is simultaneously being used as an information where it is simultaneously being used as an information warehouse for low level data and also for modeling, warehouse for low level data and also for modeling, performance tracking, budgeting and consolidation.performance tracking, budgeting and consolidation.

Why ARM?Why ARM?

Less expensiveLess expensive 10-20% of equivalent solutions10-20% of equivalent solutions

More flexibleMore flexible Supports multiple views of dataSupports multiple views of data

Quicker configurationQuicker configuration Designed to support rapidly changing needs and impossible Designed to support rapidly changing needs and impossible

deadlinesdeadlines Batch construction by a financial analystBatch construction by a financial analyst

Scales betterScales better FederatedFederated Different paradigm than OLAP or relational databasesDifferent paradigm than OLAP or relational databases Allows storage of raw operating data without performance penalty Allows storage of raw operating data without performance penalty

minimizing impedance mismatches between RDBs, OLAP datacubes minimizing impedance mismatches between RDBs, OLAP datacubes and object architecturesand object architectures

Modern architectureModern architecture OO principles applied to business intelligence and business activity OO principles applied to business intelligence and business activity

monitoringmonitoring Permits many to many relationships unlike relational databasesPermits many to many relationships unlike relational databases Does not experience exponential growth problemsDoes not experience exponential growth problems

Why Is It Less Expensive?Why Is It Less Expensive?

One solution providesOne solution provides Integration with spreadsheets for Integration with spreadsheets for

input and outputinput and output A central information repository A central information repository

that can combine data normally that can combine data normally kept in different placeskept in different places

An architecture that does not bog An architecture that does not bog down as size growsdown as size grows

Essentially, you get an information Essentially, you get an information warehouse for freewarehouse for free

ARM Uses a Node and Link or ARM Uses a Node and Link or Network ArchitectureNetwork Architecture Nodes are smart objects that can be Nodes are smart objects that can be

thought of as small OLAP cubes, thought of as small OLAP cubes, preprogrammed to deal with preprogrammed to deal with timetime, , accountsaccounts and and variantsvariants, rather like a 3-D , rather like a 3-D Excel spreadsheet with more functionalityExcel spreadsheet with more functionality

Nodes can be linked in any way you wantNodes can be linked in any way you want You can have multiple and inconsistent You can have multiple and inconsistent

linking to represent the complexity of linking to represent the complexity of organizationsorganizations e.g. linking organizational structure with e.g. linking organizational structure with

processes with products with markets with processes with products with markets with projectsprojects

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Smart Numerical Objects That Know:Smart Numerical Objects That Know:Numerical

item

AssociativeRelationships

Date/currencyknowledge

Sourceinformation

Versions

User inputOther sourceCost allocationrelationshipsCalculation status

Source currencyDisplay currencyConversion method

Multiplelinks to:sensorsbusiness unitsobjectivesbudgetsperformancemeasuresCan be usedfor reportingmodeling andaggregation

Formula managementand formula cloning

Time seriesroll up

Consolidationand modeling formulae

Repositorydata

Versions

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ARM’s Smart Object StructureARM’s Smart Object Structure

A simple hierarchyA simple hierarchy PlansPlans consist of consist of StatementsStatements consist of consist of ItemsItems have have Item numerical calculationsItem numerical calculations and and Meta-informationMeta-information

Items are associated with one or Items are associated with one or more parent nodesmore parent nodes

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ARM Has Fewer Limitations Than ARM Has Fewer Limitations Than Commonly Used TechnologiesCommonly Used Technologies

Any type of itemAny type of item Any type of chart of accountsAny type of chart of accounts Any number of consolidation paths or Any number of consolidation paths or

owners of a numerical itemowners of a numerical item Any number of business unitsAny number of business units Any number of consolidation layersAny number of consolidation layers No actual software size restrictions No actual software size restrictions

other than a billion objects per serverother than a billion objects per server In the interests of full disclosure, an ARM smart object consists In the interests of full disclosure, an ARM smart object consists

of a group of objects, but databases can be spread over multiple of a group of objects, but databases can be spread over multiple servers to get around the billion objects per server limitationservers to get around the billion objects per server limitation

Example: Why Is This Example: Why Is This Important for Client X?Important for Client X? Significant development time in Hyperion (cost: Significant development time in Hyperion (cost:

around $250K of programmer time over 3 years)around $250K of programmer time over 3 years) Current model probably close to limit to practicalityCurrent model probably close to limit to practicality Future growth problematicFuture growth problematic Processing takes 10-12 hours (down from 24 hours)Processing takes 10-12 hours (down from 24 hours) Five cubes need to be maintainedFive cubes need to be maintained A 10 gig. eSSBase model demonstrates the A 10 gig. eSSBase model demonstrates the

problem of a 9 dimensional representation of the problem of a 9 dimensional representation of the businessbusiness

The ideal system mapped out by planning would The ideal system mapped out by planning would probably not be implementable directly in Hyperion probably not be implementable directly in Hyperion as it requires more integration of information than is as it requires more integration of information than is current achievablecurrent achievable

The model is so large that only 10% of the actual The model is so large that only 10% of the actual data is stored. 90% has to be calculated for size data is stored. 90% has to be calculated for size reasons.reasons.

Client XClient X

The really expensive part of the The really expensive part of the process is the roughly 30-45 person process is the roughly 30-45 person years of time for maintaining the years of time for maintaining the planning system every yearplanning system every year

The even larger expense is the The even larger expense is the unmeasured cost of missed unmeasured cost of missed opportunities from inability to tie opportunities from inability to tie together together trends and costs, trends and costs, markets and opportunities, markets and opportunities, promotions and channel activity,promotions and channel activity, production and procurementproduction and procurement

An object approach allows An object approach allows more dimensions than an more dimensions than an OLAP toolOLAP tool

FinancialobjectProject

object

Market researchobject

Organizationalunit

Processobject

Productobject

Customerobject

Resourceobject

Dateobject

Contractobject

Statementobject

Employeeobject

Numericalobject

Sourceobject

Scorecardobject

Skills &knowledgeattributes

Multiple Consolidation and Multiple Consolidation and Modeling Trees off Same Modeling Trees off Same Source or Aggregated DataSource or Aggregated Data

Businessunit

Project

Channel

Customersegment

Process

Businessunit

Shadowconsolidation

Mfg.data

ARM’s Network Model ARM’s Network Model ArchitectureArchitecture Does not grow exponentially like an OLAP Does not grow exponentially like an OLAP

cubecube Easily handles many-to-many relationships that Easily handles many-to-many relationships that

are impossible in relational databases (RDBs)are impossible in relational databases (RDBs) Allows raw data to be used by multiple Allows raw data to be used by multiple

applications and viewsapplications and views Once consolidations and aggregations are Once consolidations and aggregations are

calculated they don’t need to be recalculated calculated they don’t need to be recalculated so raw data can be mixed with aggregated dataso raw data can be mixed with aggregated data Control over incremental and batch processing also Control over incremental and batch processing also

an optionan option Virtual database architecture provides flexibility Virtual database architecture provides flexibility

in processing powerin processing power Will be increasingly important with grid computingWill be increasingly important with grid computing

ARM Scales RobustlyARM Scales Robustly

ARM is based upon industrial strength database ARM is based upon industrial strength database technology that has been around for over 20 years technology that has been around for over 20 years (Gemstone Object Database)(Gemstone Object Database)

ARM has smart recalculation so large size does not ARM has smart recalculation so large size does not mean long recalculationsmean long recalculations

Unlike OLAP or RDBs, ARM’s processing does not Unlike OLAP or RDBs, ARM’s processing does not slow down exponentially as complexity increasesslow down exponentially as complexity increases

ARM has superb auditability and flexible drill down ARM has superb auditability and flexible drill down so the source of information is always visibleso the source of information is always visible

ARM can be constructed in batch using a ARM can be constructed in batch using a metalanguage in Excel. This permits use of metalanguage in Excel. This permits use of standard Excel functionality for constructing standard Excel functionality for constructing repetitive knowledge models and instances of smart repetitive knowledge models and instances of smart objectsobjects

Surprisingly, existing clients with ARM don’t need Surprisingly, existing clients with ARM don’t need DBAs.DBAs.

We don’t like to overclaim We don’t like to overclaim

For a number of years, Gemstone For a number of years, Gemstone has supported a virtual database has supported a virtual database capability so data can be spread capability so data can be spread across networksacross networks Local countries can have their own Local countries can have their own

repositories and modelsrepositories and models Head office can grab data without caring Head office can grab data without caring

where it is locatedwhere it is located ARM requires only trivial ARM requires only trivial

modifications to take advantage of modifications to take advantage of this feature in Gemstonethis feature in Gemstone

Modern ArchitectureModern Architecture

Object oriented design is critical Object oriented design is critical to controlling software coststo controlling software costs

Spreadsheets are not typically Spreadsheets are not typically OO in designOO in design

Neither are RDBsNeither are RDBs ARM delivers the benefits of OO ARM delivers the benefits of OO

and has an order of magnitude and has an order of magnitude lower cost of ownershiplower cost of ownership

Sources of cost advantageSources of cost advantage

EleganceElegance One solution can provideOne solution can provide

An information warehouseAn information warehouse ConsolidationConsolidation ModelingModeling Cost allocationCost allocation ReportingReporting Integration with spreadsheetsIntegration with spreadsheets A repository for flat files from multiple data A repository for flat files from multiple data

sourcessources An extensible architectureAn extensible architecture

Agents, web front ends, integration with Agents, web front ends, integration with relational databases are all doable at low costrelational databases are all doable at low cost

ARM SavingsARM Savings

Reduced testing timeReduced testing time Reduced number of toolsReduced number of tools Reduced maintenance costsReduced maintenance costs Faster development timesFaster development times Elimination of DBA functionElimination of DBA function Less expensive sourcing of data Less expensive sourcing of data

for new applications and reportsfor new applications and reports ReuseReuse

The Big Benefits (1)The Big Benefits (1)

A better view on the problem leading toA better view on the problem leading to Lower costsLower costs Better modelingBetter modeling Lower cost of changing analysisLower cost of changing analysis

The ability to analyze what you need to The ability to analyze what you need to analyze when you need to do itanalyze when you need to do it

Massive integration abilities at low costMassive integration abilities at low cost An architecture that can scale globallyAn architecture that can scale globally Built in business activity monitoring (BAM) Built in business activity monitoring (BAM)

functionalityfunctionality

The Big Benefits (2)The Big Benefits (2)

Performance report (red, amber Performance report (red, amber green) for scorecardsgreen) for scorecards

Superb drill down that matches Superb drill down that matches or exceeds OLAP capabilitesor exceeds OLAP capabilites

High integration with existing High integration with existing spreadsheets (in and out)spreadsheets (in and out)

Faster calculation with more Faster calculation with more data in the systemdata in the system

Lower maintenance costsLower maintenance costs

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Example: Modeling a Telecom Fixed Wireless Example: Modeling a Telecom Fixed Wireless Vendor’s National Market by City by Customer by Vendor’s National Market by City by Customer by Service Down to Capacity and Equipment Service Down to Capacity and Equipment Consumption, Costs and ProfitabilityConsumption, Costs and Profitability

Residentialdemographics

Businesscustomers

Penetrationcurve

Bandwidthrequirement

Customerpremise equipment

Salesactivities

Customerservice activities

Node deployment

Customerinstallation

Costof acquisition

Marketingcosts

Networkcapital costs

Customerprofitability

Profitability by customer, node, network or business unit

The underlying technology in The underlying technology in ARMARM GemstoneGemstone

200+ major customers on 6 continents200+ major customers on 6 continents State of the art object management with State of the art object management with

transaction processing optionstransaction processing options Over 20 years of leading edge Over 20 years of leading edge

developmentdevelopment Alacrity Results ManagementAlacrity Results Management

Cited by the Convergent Engineering Cited by the Convergent Engineering Institute as one of the Top 7 object Institute as one of the Top 7 object applications in the world as an example applications in the world as an example of deployed object representations of of deployed object representations of enterprisesenterprises

Consider the following:Consider the following:

What kinds of opportunities are your What kinds of opportunities are your missing becausemissing because You can’t tie together informational silosYou can’t tie together informational silos

Market research to sales to promotions to Market research to sales to promotions to inventory to production to marketing to inventory to production to marketing to financefinance

It takes too long to do certain kinds of It takes too long to do certain kinds of analysisanalysis

You spend most of your time checking data You spend most of your time checking data rather than making decisions based on datarather than making decisions based on data

Too many people are required to find an Too many people are required to find an answeranswer

Too much time is spent on maintaining Too much time is spent on maintaining “value reducing” mappings e.g.“value reducing” mappings e.g.

RDB – OLAP – Spreadsheet – OO ModelRDB – OLAP – Spreadsheet – OO Model

Contact InformationContact Information

Alistair Davidson, Eclicktick Alistair Davidson, Eclicktick CorporationCorporation

29 Clinton Street, Suite 30529 Clinton Street, Suite 305 Redwood City, CA 94062Redwood City, CA 94062 Phone: 650-298-9072Phone: 650-298-9072 alistair@eclicktick.comalistair@eclicktick.com Web site: Web site: www.eclicktick.comwww.eclicktick.com

Howard Weinstein, Cherniak Howard Weinstein, Cherniak SoftwareSoftware

10 Commerce Valley Dr. East, Suite 40010 Commerce Valley Dr. East, Suite 400 Thornhill, ON L3T 7N7, CanadaThornhill, ON L3T 7N7, Canada Phone: 905-771-7011Phone: 905-771-7011 howard@CherniakSoftware.comhoward@CherniakSoftware.com Web site: Web site: www.cherniaksoftware.comwww.cherniaksoftware.com