IBM Cognos TM1 Whitepaper

8/22/2019 IBM Cognos TM1 Whitepaper

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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 real-

time, interactive multidimensional OLAP database

with in-memory and write-back functionalities, and

is therefore perfectly suited to support all sorts of

Enterprise Performance Management (EPM)

applications.

Figure 1 Example of Enterprise Planning with IBM Cognos TM1

Source: IBM website

IBM plans are to further combine TM1s 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 ofthis 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 terms of real advantages for

somebody looking to enhance their EPM

environment.


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IBM Cognos TM1: The OLAP engineTM1 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 andMicrosoft 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)

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 real-

time. Calculations are triggered by any change and

fired automatically. The maintenance of the model is

central and all cubes pick up the modifications on-

the-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 user experience of

the IBM EPM suite solely by acting as a data provider

tool among its three main components (BI, Planning

and Controller), picking up roles as:

1) Updating in real time the content ofReports and Dashboards built in IBM

Cognos Business Intelligence with data

modifications occurred in IBM Cognos

Controller or Planning.

2) Providing the user-friendly OLAPfunctionality to slice and dice, drill up and

down through the set of data enhancing the

analysis of the data.

3) Processing IBM Cognos Controller data,combine it with other data sources,

calculate and/or feed it to an IBM Cognos

Planning application.

4) 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

Secondly the read/write functionality translates in a

technology that can also be used for user 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, support 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 TM1s usefulness is not

captured by functioning only as a data sharing

interface but it results in an excellent candidate to

replace or enhance ones 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.

Figure 4 TM1 is a very powerful Planning solution and as such

can improve the current IBM EPM suite

Source: IBM website

IBM Cognos TM1: IBM add-onsThe TM1 architecture makes dynamic analytics

(what-if analysis) truly possible thanks to the

read/write functionality and real-time outcomereflection of any kind of user 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:

1. 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

2. The possibility to Undo&Redo. As simple asit may sound imagine the convenience

when working on numbers to actually undo

calculations, data input or data loads.

3. Integrating the powerful workflow manageravailable in Cognos Planning: TM1

Contributor interface as the workflow

manager to guide and secure users data

input.

Figure 6 Workflow is managed by TM1 Contributor

4. Completing the online input interface byadding extra features that users alwayslooked 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 topof the TM1 cube, IBM Cognos BI applications or

other supported viewers can be used for both in-

process and management reporting as well as ad-

hoc analytics. The solution is optimized for many

simultaneous users and suits both legal and

management reporting.

Figure 8 IBM Cognos Controller 8.5 and TM1 data flow

Next well 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 HighlightsI. Reduces planning cycles by 75% and reporting

from days to minutes.

II. Is owned and managed by Finance and lines ofbusiness.

III. Provides exceptionally fast performance for large,sophisticated models and large data sets.

IV. Features personalized planning and analyticswithin a managed planning processto explore

performance gaps and validate corporate drivers.

V. Provides a flexible modeling environment thatrequires no programming or traditional IT skills.

VI. 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.

More than budgeting and forecasting software,

Cognos TM1 is a complete enterprise planning

solution. It supports a full range of business

requirements from high performance, real time

financial analytics, such as for customer and product

profitability, and flexible modeling, to enterprise-

wide contribution from all business units. In

addition, it facilitates use of planning best practices

such as driver-based and rolling forecasting.
http://www-01.ibm.com/software/data/cognos/products/tm1/web/http://www-01.ibm.com/software/data/cognos/products/tm1/web/


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Figure 9 IBM Cognos TM1 Real time analytics

Source: IBM website

In other words:

A multidimensional, 64-bit, in-memoryOLAP engine provides exceptionally fast

performance for analyzing complex and

sophisticated models, large data sets and

even streamed data.

Cognos TM1 supports a full range ofenterprise planning software

requirementsfrom 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 contributionfrom systems and staff to help eliminate

delays in rolling out plansa 75% reduction

in planning cycles is possible.

Cognos TM1 facilitates the use of bestpractices such as driver-based planning androlling forecasting.

Model design and data access adapt to yourbusiness process and present business

information in familiar formats.

Managed contribution makes it possible topersonalize 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 CognosPerformance Management platform, you

realize consistent scorecarding, reporting

and analysisthe complete picture from

goal setting and planning, to measuringprogress and reporting.

Finance and lines of business have totalcontrol 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 concludeTM1 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

terms of speed and interaction adding value to data

analysis for users.

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

IBMs roadmap 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 Partakes 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

As our consultants are multi-skilled and come with

many years ofexperience our clients 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 customers 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.

Consulting Services are not our only core

competence. In fact Partake can deliver a complete

offer to our customers by supporting existing

environments/applications or train the customers

teams to a level advanced enough to handle ongoing

administration or simply delivery technical

infrastructures.

Its not only what we do but also how its done. Afew basic working principles such as:

Service

Continuously anticipate to prevent

problems

Integrity & Trust

Always tell you our honest opinion

Guaranteed quality

Meet requirements and dare to offer

guarantees

Client centric

Listen before providing advice

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.

www.partake.com

Partake Consulting The smart way to business insight
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IBM Cognos TM1 Whitepaper