Microsoft Business Intelligence Customer Solution Switch to SQL Server–based Financial Reporting System Vastly Improves Analysis Functionality, Maintainability Published: February 2003 Solution Overview To collect information for U.S. Securities Exchange Commission filings and financial reports, Motorola had relied on antiquated technology that required IT intervention for basic processes and maintenance. Doubtful about the system’s reliability and wanting to avoid the high cost of maintaining the system, company managers began searching for a replacement. After reviewing alternatives, the company decided to develop a system based on Microsoft SQL Server 2000 Enterprise Edition with Analysis Services. The new system is easier to use and provides the necessary analytical capability. Because the system puts routine administrative tasks in the hands of users, it requires limited IT intervention, thus saving time and vastly increasing return on investment. Situation Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions. Its extensive solutions include wireless subscriber products, which are sold through distributors and retailers worldwide. As of September 30, 2002, the company employed 100,000 people worldwide. Motorola had sales of U.S.$27 billion in 2002. Motorola’s Year-End Work Papers (YEWP) financial reporting system used antiquated technology Customer Profile Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions. Its wireless subscriber products are sold through distributors and retailers. Business Situation The system that Motorola used to collect information for SEC and other governmental filings and financial reports required IT intervention for basic processes and maintenance. It also lacked analytical capabilities. Solution Motorola developed a system based on Microsoft® SQL Server™ 2000 with Analysis Services. The system provides the necessary analytical capability, and because it puts administrative and maintenance tasks in the hands of users, it requires limited IT intervention. Benefits and required intervention by the information technology (IT) department for basic processes and maintenance. The system was very labor-intensive to use. In addition, it lacked analytical capabilities, which required employees to create time-consuming workarounds. Although separate from the company’s primary financial reporting system, YEWP is still a critical component because it is used to collect information for U.S. Securities Exchange Commission (SEC) and other governmental filings and financial reports. YEWP had been based on another provider’s database, its Web component built using an early version of that database. Motorola decided that the system was at the end of its useful life when it discovered that system enhancements would require expensive rewrites because of changes between old and new versions of the product. The company found that it lacked the in-house expertise to write enhancements and couldn’t justify hiring a prohibitively expensive consultant to upgrade a business-critical product that would have questionable reliability and that consumed a great deal of time to use and maintain. “The information collected in the YEWP system goes into our annual SEC filings and other government-mandated filings and reports, and Motorola management started worrying that the system would no longer be reliable. Had it broken down, Increased return on investment Easy and inexpensive to maintain and upgrade Superior reliability Scalability for future growth Automation and ease of use empower employees and save time Software and Services Microsoft Windows® 2000 Server, including Microsoft Internet Information Services 5.0 Microsoft Office XP Microsoft SQL Server 2000 Enterprise Edition with Analysis Services Microsoft Visual Studio® Microsoft Consulting Services Hardware Two Dell PowerEdge 2550 servers with two x86 Intel 993MHz processors the process to collect the YEWP data would have been extremely manual and cumbersome,” says Reem Hantash, Financial Analyst for Motorola. The previous YEWP system had very limited analysis capability, so time-consuming “If we had gone with another vendor’s solution, what we workarounds had to be devised. To perform analysis, for example, users had to copy and paste would have needed in data from a Web page into a Microsoft® Excel spreadsheet, or print out each business entity’s product, training, and page and manually review it. Doing so required extreme attention to detail because sometimes consulting was so much during quarter- or year-end reporting, changes would be made to the working Excel more extensive than what spreadsheets, which then needed to be manually entered back into the YEWP system. The company needed a reliable system with analytical capability—a system that could continue to be supported and upgraded inexpensively using internal resources. The company considered the products of other vendors but decided on a business intelligence (BI) solution based on Microsoft SQL Server™2000 Enterprise Edition with Analysis Services. the YEWP system called for. We were able to build a custom system using Microsoft software for less money than we would have Because of the custom modifications that would have been required to make the other vendor’s packaged financial-reporting application work for Motorola, the overall cost of acquisition and development made that application an expensive and complicated option. Another offering that Motorola considered was also far more complicated and costly than what was needed for the YEWP system. According to Ken Brinkman, Motorola’s Corporate IT Manager, “If we had gone with another vendor’s solution, what we would have needed in product, training, and consulting was so much more extensive than what the YEWP system called for. We were able to build a custom system using Microsoft software for less money than we would have spent on packages that did not entirely meet our needs.” In addition, the other product would have required an add-on for analysis services, whereas SQL Server 2000 Enterprise Edition ships with Analysis Services in the box. The fact that SQL Server came with all the needed functionality combined with lower total cost of ownership made SQL Server 2000 Enterprise Edition the obvious choice. Solution With the assistance of Microsoft Consulting Services (MCS), Motorola developed a system that is easier to use, maintain, and upgrade and that provides analytical capabilities and integration with other Microsoft software for all of its 500 users. The system uses two Dell PowerEdge 2550 servers running the Microsoft Windows ® 2000 Server operating system. The application server is the host for the Web site and runs Microsoft Internet Information Services (IIS) version 5.0, the Web server built into Windows 2000 Server. Users enter data on Web pages; when they save the data, the system writes the transactions to a relational SQL Server database on the database server. Data analysis functionality is available in a Web page as an Excel PivotTable ® dynamic view saved as HTML and surfaced using Microsoft Office XP Web components. Users also have the option of accessing the analysis functionality directly from an Excel spreadsheet by selecting the YEWP database as the external data source. The database server has a relational database and a data mart, as well as a cube in Analysis Services. For certain administrative functions such as updating users, accounts, organizations, spent on packages that did not entirely meet our needs.” Ken Brinkman Corporate IT Manager Motorola and the calendar, it’s important to update the data mart at the same time as the relational database. Triggers allow this simultaneous update to happen seamlessly. “We felt that the overall Microsoft alternative was the better choice for this system not only because Microsoft offered the required technology, but also because that technology could be easily and inexpensively supported by our Microsoft developer base going forward.” Rita Popovich Systems Analyst Motorola Motorola Year-End Work Papers (YEWP) System Architecture MCS worked with Motorola’s IT group to develop the new system. A Microsoft Premier Support team helped set up and run the stress tests, analyze the results, and recommend hardware purchases. Premier Support and MCS helped Motorola troubleshoot when the company had problems getting the application environment to work on the new servers. Benefits The new YEWP system has provided positive return on investment and enabled the financial analyst to spend more time analyzing rather than gathering and formatting data. The system is easy and inexpensive to maintain and upgrade. Automation and ease of use empower employees and save them time. The reliability of SQL Server means that the system is readily available— which is crucial because the YEWP system is a financial application. Increased Return on Investment The old YEWP system required a great deal of IT intervention for administration and maintenance—for example, when initializing the system at the beginning of a new quarter, adding new accounts, or making changes that resulted from company reorganizations. The new YEWP system dramatically simplifies those tasks and puts them back into the hands of users, saving valuable IT resources and time and increasing the overall return on investment. Adding to the return on investment is the analytical capability of the new system. The financial analyst is able to spend more time analyzing rather than gathering and formatting data because of the system’s vastly improved analytical capability. “The old system had very limited analytical capability; it only compared one period to the prior year period. To do any more in-depth analysis, I had to copy and paste system data into an Excel spreadsheet. The new system lets me pick and choose what data I want to review, which quarters I want to compare. Plus, I can manipulate the data—and it’s a lot quicker and easier to review and analyze,” says Hantash. Easier Maintainability In the past, Motorola found that systems, including YEWP, can become difficult to support or upgrade. As developers move on or technology changes, it is often difficult to find resources with “When we chose this Visual Basic– and SQL Server– based solution, we were interested in building an the necessary knowledge. If such developers are available, they must be hired from outside the application that could be company and are expensive. Motorola wanted to develop its system using products and cloned or scaled to meet technologies that the company knew it could support years from now. The Microsoft solution other similar business provided what the company was looking for. “It’s essential to have a system built on products that can be maintained by people different from the original set of developers. We felt that the overall requirements within our Microsoft alternative was the better choice for this system not only because Microsoft offered the company. Microsoft products required technology, but also because that technology could be easily and inexpensively integrate well, and have a supported by our Microsoft developer base going forward,” says Rita Popovich, Systems Analyst large knowledge base in the for Motorola. IT community. We feel More Availability and Reliability confident that this business A critical factor for Motorola was the availability and reliability of the YEWP system, because it solution and these chosen tracks important data that goes into the preparation of SEC and other governmental filings and financial reports. Motorola needed a solution based on reliable technology that would keep its technologies will provide a YEWP system up and running dependably. SQL Server 2000 has delivered. “In the first year of good base for future use, SQL Server has been very reliable; we’ve had no issues with downtime,” says Popovich. application growth.” Added Empowerment Automation and ease of use in the new system save employees from tedious tasks, empowering them to tackle more important issues. In addition, employees can use their time more productively because of the enhancements and improvements over the old YEWP system: The old YEWP system didn’t summarize sub-accounts or roll them up into higher-level reporting, thus it required the analyst to verify and match figures manually. It also didn’t do math or provide validation or integrity checks, thereby increasing the potential for errors and adding to the workload involved in preparing reports. Quarterly and annually, the analyst had to track down discrepancies, question users about data-entry errors, and obtain explanations for anomalous numbers. The new system automatically generates the beginning balance of valuation accounts based on last quarter’s ending balance, and auto-summing removes prior problems with summation errors. There is also built-in validation. Certain figures can be designated as either a positive entry or a negative entry and are marked with red or black color-coding to help the user. If users deviate, they must provide an explanation, a step that saves the analyst research time later. The new system’s data-entry screen is more user friendly. It has current quarter data, prior quarter data, and prior year’s data all on the same screen. Having those numbers available alongside the data being entered allows the user to check for reasonability, reducing dataentry errors and further saving the financial analyst time. Simplified data entry also saves steps for the user. Rita Popovich Systems Analyst Motorola Better, More Promising Future As Motorola builds on a history of success, it knows it can count on SQL Server to grow and work with it to provide additional value to its legacy systems. “When we chose this [Microsoft] Visual Basic®– and SQL Server–based solution, we were interested in building an application that could be cloned or scaled to meet other similar business requirements within our company,” says Popovich. “Microsoft products integrate well, and have a large knowledge base in the IT community. We feel confident that this business solution and these chosen technologies will provide a good base for future application growth.” The .NET Enterprise Servers are Microsoft’s comprehensive family of server applications for building, deploying, and managing next-generation, integrated applications and Web experiences. Designed with mission-critical performance in mind, the .NET Enterprise Servers provide fast time-to-market as well as scalability, reliability, and manageability for the global, Web-enabled enterprise. They have been built from the ground up for interoperability using open Web standards such as Extensible Markup Language (XML). The .NET Enterprise Servers enable a distributed computing model for the Internet, based on Internet protocols and standards in order to revolutionize the way computers talk to one another. For more information about Microsoft SQL Server and business intelligence solutions, go to: http://www.microsoft.com/sql/evaluation/bi/default.asp For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. 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