Ladder of Business Intelligence LOBI Jim Cates Vice

Company Highlights n n n n Founded in 1983 High-growth semiconductor company; products include FPGAs, structured ASICs, embedded soft processors, design software, IP, development kits Publicly traded since 1988 (NASDAQ) $1. 28 billion in 2006 sales Market capitalization of ~$8 billion 2, 600 employees 15, 000 worldwide customers © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 2

2006 Revenue by Geography Asia-Pacific 27% Japan 23% North America 24% Europe 26% 2006 Total $1. 285 B © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 3

Agenda Objectives Introduce the Ladder of Business Intelligence - LOBI™ LOBI is a new, non-technical communication framework that can clearly position the value that technology investment can provide to business. Demonstrate how the LOBI framework can be used to create a BU/IT Business Value Roadmap that is customer centric. © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 4

Definition: Business Intelligence n Business intelligence: 1. Is a process for collecting the relevant data and then transforming it to actionable information in an enterprise 2. Provides a broad category of applications and technologies to deliver the right information to the right people, at the right time 3. Provides decision makers with insights into markets, competitors, partners, vendors, suppliers, and company performance © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 5

LOBI™ Triple Business role Business process © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 6 Technology

Finding the Balance Cycle Time to Information (CTI) Cycle Time to Action (CTA) Business role Fact Data Information © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 7 Information Action

What is the LOBI™ Framework? © 2007 Altera Corporation—Public

Circle of Success n People 1. Vision/mission 2. Enterprise roadmap 3. Process teams n Process 4. 5. 6. 7. n BRIA Process roadmap Gap analysis Cross functional collaboration LOBI framework People Process Technology 8. Technology architecture 9. LOBI level and it budget 10. Technology implementation © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 9

What is Information? © 2007 Altera Corporation—Public

What is Information? n Objective: CTI by business role Experience Integrated data Information Human intelligence view Artificial intelligence + Data correlation ability + Communication skills = Value of information © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 11

Cycle Time to Information/Knowledge Cycle time to Action Business role Information/knowledge © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 12

LOBI™ Business Intelligence Framework Ladder of Business Intelligence L 6 L 5 L 4 L 3 L 2 L 1 Understanding Knowledge INFORMATION Data Facts BRIA: Information Defined By BR © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 13 Enabled intuition

Ladder of Business Intelligence - LOBI™ n Objective: - Improve speed, effectiveness, and efficiency of decision making n Methodology: - Business productivity through reducing Cycle Time to Information by business role Level 6 Enabled intuition Level 5 Understanding Level 4 Knowledge Level 3 Information Level 2 Data Level 1 Facts Break-through visionary thinking Business modeling Brainstorming strategic collaboration Reusable information views Information views targeted by role Operational collaboration Retrievable organized data No timely retrieval Disorganized data Business Role Set, Process Set, Technology Set © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 14

Ladder of Business Intelligence Definition n Objective - Productivity through information delivery by business role and decreased Cycle Time to Information n Methodology: - Core process definition Level 6 Enabled intuition Level 5 Understanding Level 4 Knowledge Level 3 Information Level 2 Data Level 1 Facts • Config mgmt • Project mgmt • Productivity analysis • LCM modeling • Collaborative dev • Knowledge management • Dev data mining • Role-based UI • Customer profiles • Product mgmt • Resource allocation • Prod. stability analysis Budgeting Bug Tracking © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 15 Executive insight

Value-based IT Investment Model Strategic investments Information Knowledge Collaboration Enabled intuition Level - 3 Level - 4 Level - 5 Level - 6 Level - 2 Tactical investment Level - 1 © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 16

Impact of BU/IT Investments IT Transforming Investments are investments that are required to strategically transform the business, such as cutting-edge technologies that support business strategy that enables competitive advantage and market leadership. Examples: Acquisition investment, early adopters of new technologies, Web 2. 0 Level 5 and 6 IT Organic Growth Investments are investments that are required to upgrade, grow, and expand the business in terms of revenue and productivity. Examples: BPM, increase customer loyalty, automated sales rep, e-business, international reporting upgrade and WW network access Level 3 and 4 IT Sustain/Utility Investments are investments required to keep the infrastructure operating at advertised availability and performance ( 24 X 7, 99. 9900%). Commodities such as SW, HW, networking, telecommunication, security, support of current installed IT systems, redundancy planning, engineering bug tracking Level 1 and 2 © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 17

Business Role Information Analysis n Define business role n Define 1– 10 key questions n Information needed to answer questions n Data source needed to generate information n Do quality data sources exist? © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 19

BRIA Role Table - Example Role Key questions CFO Do I need external funding for next quarter? VP Sales VP Marketing Do I need to add more sales people? Demography TAM Competition Information Data sources exist? 1) End-of-quarter P&L 1) Cash flow projection 2) Projected next quarter sources and costs 2) Utilization of line of credits and costs 1) Yes 3) Projected next quarter usage and return 3) Projected portfolio budgets 3) Yes 1) Market share 1) Total revenue sales 2) Sales person efficiency 2) Sales team performance 3) Sales team capacity 4) Product adequacy in meeting market needs 2) No 1) Yes 2) No 1) What is the demographic profile of region x? 2) What is the TAM for product X? Marketing application 3) What is our competitors’ market share? © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 20 Yes

BRIA Table 1. Business Role 2. 1 -10 impactful business questions 3. Information needed 4. Data needed to generate information 5. Processes needed to generate information 6. Information view format by business role 7. Frequency needed (real, near, periodic) 8. Medium for display (PDA, report, etc. ) 9. Technology needed © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 21

Ladder of Business Intelligence – Altera Definition n Objective - Productivity through information delivery - by business role and decreased Cycle Time to Information n Methodology: - Core process definition - User requirements gathering sessions - Industry best practice research Level 6 Enabled intuition Level 5 Understanding • Strategic Collaboration - e. Room - MS Share. Point • Knowledge management - Design. Win - Siebel integration - MS Share. Point Level 4 Knowledge Level 3 Information Level 2 Data • Business applications - SAP, Siebel - People. Soft, i 2 - MS SQL Server Microsoft Office Suite Excel, Project Level 1 Facts • Business intelligence - SAP BW, Panaroma - MS analysis service - MS duet - Google - Wikis - Documentum - Net. Meeting, Web. Ex © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 22 Executive insight

Summary: Top LOBI™ Concepts Top 10 questions: what are the top 10 questions that need to be answered for a business role? CTI: cycle time to information CTA: cycle time to action LOBI Concepts CTK: cycle time to knowledge © 2007 Altera Corporation—Public Altera, Stratix, Arria, Cyclone, MAX, Hard. Copy, Nios, Quartus, and Mega. Core are trademarks of Altera Corporation 23 BRIA: business role information analysis LOBI triple: people, process technology