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Cognos Global SalesInvesting in Business Intelligence & Performance Management Software
Canada's largest software company helps executives to solve business puzzles and mysteries around the world.
Founded in 1969, Cognos (CSN on TSX, COGN on Nasdaq) employs some 3,500 employees working in offices in 27 countries. The company has 23,000 clients from over 135 countries. Customers range from governments to companies in every industry in the private sector, including 80% of firms on the Fortune 1000 list. With revenues of some US$1 billion in fiscal 2007, Cognos sells its business intelligence and performance management software and related services to customers who want to understand, monitor and manage organizational performance while planning future business strategies. In other words, Cognos software empowers its customers to solve business puzzles and mysteries. Each requires a different approach. A puzzle has one single, fixed answer to questions like "Where did Cognos international revenues come from?" In contrast, a mystery requires interpretations rather than simple answers. Each new piece of information demands that researchers judge and assess risk carefully, often involving a complex set of ‘what-if’ questions. An example of a mystery is "In which global markets should Cognos concentrate on to grow its future revenues?" Cognos International Revenues The puzzle about Cognos global revenues is easy to query.
The Americas include North, South and Central America. EMEA consists of Continental Europe, the U.K., the Middle East and Africa. Overall, Cognos global revenues were up 11.6% in fiscal 2007 (12 months ending in February 2007). Cognos International Strategic Planning More complex is the mystery to decide which global markets that Cognos should develop. Business mysteries require executives to consider what might happen, and to decide how best to prepare for or respond to different scenarios. To make these decisions where much uncertainty about the future exists, senior management needs less lower level detail but more pertinent high-level intelligence. Strategic planning for global market development would benefit from statistics that show how foreign exchange rates affected Cognos global revenues in 2007.
Excluding foreign exchange gains, Cognos revenues in fiscal 2007 were up 7.4%. The strength of the euro and British pound accounted for half of EMEA’s revenue growth. Asia Pacific currency fluctuations had a significant impact on that region’s modest growth. Cognos senior management may well resolve this business mystery by focusing on U.S. sales. American clients account for over 50% of total company revenues, which were up 12.5% in 2006 without the same risks as other countries with currencies appreciating against the U.S. dollar. Using its own web-based software, Cognos executives can set revenue targets for its geographic segments and monitor company progress in real-time. Cognos Stock Price Mystery So why is Cognos’ stock down over 20% this year when leads the world with a 14% market share in business intelligence software? Part of the reason may be currency risks associated with the U.S. dollar. The other deciding factor may well be the threat of global software giants including Microsoft (6.2% market share) and Oracle (4.3%) being pursuing business intelligence and performance management software clients more aggressively. Sources For This ArticleThis article presents independent calculations and insights based on data drawn from source material on cognos.com including Cognos’ annual reports, press releases and the June 7 article ‘Mysteries, Puzzles & Business Intelligence’.
The copyright of the article Cognos Global Sales in International Trade Leaders is owned by Daniel Workman. Permission to republish Cognos Global Sales in print or online must be granted by the author in writing.
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