create an analytical culture: deliver stronger business ......attract, grow and retain profitable...

© 2013 IBM Corporation

Create an analytical culture: deliver stronger business insight

Christopher Dziekan – Vice Present Strategy

19 March 2013

© 2013 IBM Corporation2

What external forces do global CEOs believe willaffect the organization most significantly?

2012 IBM Global CEO Study

External forces that will affect the organization1

2004 2006 2008 2010 2012

Macroeconomic factors

Regulatory concerns

Globalization

Socioeconomic factors

Environmental issues

Geopolitical factors

Market factors68%

People skills69%

Technology factors71%

1 IBM, Leading Through Connections: Insights from the IBM Global Chief Executive Officer Study, May 2012


New marketplace dynamics force enterprises to transform

CFOs’

opportunity:Be the agent of innovation and profitable growth

SecuritySecurity remains robust for supporting regulatory and

policy compliance needs.3

Social businessBy 2015, 40 percent of large enterprises will have a corporate “Facebook” for

circulating business and personal data.2

ComplianceThe cost of noncompliance—fines, legal fees and disrupted services—was almost three times the cost of compliance.4

Next-generation analytics80 percent of data growth is unstructured.2

Big dataThe digital universe will grow to 1.8 zettabytes (ZB) in 2011, up 47 percent

from 2010 and rocketing toward more than 7 ZB by 2015.3

Mobile enterpriseBy 2013, 80 percent of businesses will support a workforce using tablets.2

Cloud computing2011 spending on private cloud services is $13 billion. A Growth

over the next four years will exceed 26 percent annual growth.3

Emerging market growthEmerging marketplaces, led by China, fuel 2.6 times the growth rate of

developed marketplaces, contributing more than 50 percent of all new growth.3

2 Gartner3 IDC4 Ponemon Institute, The True Cost of Compliance, January 2011.


CFOs are taking focus on enterprise decision making4

Focus on profit, alignment and risk

management

Governance, risk and compliance and

Sarbanes-Oxley Act–like mandates

Focus on growthand expansion

Liquidity, cost containment and working capital

2000 2003 2006 2009 2012 2015

Financefunction focus

CFO focus

Enterprise focus

4 Adapted from CEB Finance, 2011.


� Driving integration of information across the enterprise

� Providing inputs into enterprise strategy

� Supporting, managing and mitigating enterprise risk

� Measuring and monitoring business performance

� Driving enterprise cost reduction

CFOs are focused on gaps in core and enterprise processes

1

CFO agenda: importance versus effectiveness

Enterprise

focused

Core finance� Developing your people in the finance organization

� Executing continuous finance process improvements

� Strengthening compliance programs and internal controls

� Driving finance cost reduction

2

3

Importance rank#

Effectiveness

Importance

20% 40% 60% 80% 100%

34%

28%

26%

23%

21%

35%

28%

16%

9%

Gap

5 IBM, The New Value Integrator: Insights from the Global Chief Financial Officer Study, March 2010


In 2013, finance must overcome a productivity and an insight deficit

Productivity

deficit

Anticipated changes in finance budget and full-time equivalent employees

from 2012–20136

8%

6%

4%

2%

0

-2%

-4%

Revenue Financeoperating

budget

FinanceFTEs

Ability to use data to derive insights,percentage of respondents, March 20127

29%consistently

71%Sometimes or never

Insight

deficit

6 The Hackett Group, Unlimited Options to Realize Borderless Business Services; Distilling the Key Issues of 2013, Sean Kracklauer, Michael Janssen and Lynne Schneider, January 2013.7 Anna Kipchuk, “The Insight Deficit in Finance,” CEB Finance blog, May 30, 2012.


Finance must drive an analytical culture that delivers stronger business insight at the point of impact

Who are our most

profitable products,

customers, markets

and channels?

Do demand forecasts

exceed capacity?

Are we focused on the

right metrics?

How much of our profit

and growth is at stake in

high-risk geographies?

Do current strategies

deliver sufficient profit

and growth?

Where can we trim?

Are we aligned and

coordinated across

customer, operations,

finance and risk?

Automate analytic processes

Drive new insight and agility

Advance analytic maturityAQAnalytics quotient


Agenda



Advance analytic maturity


Financial analyticsAutomate analytic processes

IBM solutions help organizations automate

and transform financial processes and drive performance

Financial reporting

Performance management

Planning, budgeting and forecasting

Disclosure management

Profitability modeling

Financial consolidation


Load and leverage spreadsheets

Connect easily to all data

Design intelligent process and automation

Integrate numbers with narratives

Financial analyticsNarrative and collaborative intensive performance reporting

Regulatory | External reporting | Investor relations | Treasury | Tax | Financial planning and analysis


Agenda






Marketing

� Campaign scorecard

� Promotion plan� Customer and

product profitability

� Revenue plan

Strategy-aligned organization

Finance

� Long-term plan� Capex and

working capital� Cash-flow plan� Earnings per

share/discounted cash flow projections

� Risk reporting

Operations

� Sales and operations planning

� Capacity plan� Inventory plan� Product allocation� New product plan

Sales

� Sales dashboard � Incentive

Compensation� Quota Plan� Territories � Sales Channels

Workforce

� Workforce scorecard

� Headcount plan � Salary and

compensation � Staffing plan� Training and

development

RiskFinanceOperationsCustomers


Customer analytics

IBM solutions provide actionable insights to attract, grow and retain profitable customers by optimizing the customer experience

Up-sell and cross-sell analysis

Price and profitability optimization

Churn prediction

Influencer/Network optimization

Retain

GrowEmpowered

consumer

Attract

Marketplace segmentation


Operational analytics

IBM solutions are driving the next wave of efficiency and growth

Asset management

Threat and fraud detection

Sales performance management

Supply chain optimization


Incentive statements

Management reports

Dashboards

Quotaplanning

Channelmanagement

Compensation management

Sales performance managementTerritory

management

Sales performance management

Customerrelationship

management

Industry data Human resources

information system

Enterprise resource planning


Risk analytics

IBM clients leverage integrated risk management to enable risk-aware decision making—a source of competitive advantage

Integrated risk management

Financial risk

IT governance

and risk

Operational risk

Regulatory

compliance


Demo


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IBM’s statements regarding its plans, directions and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction, and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release and timing of any future features or functionality described for our products remains at our sole discretion.

The information contained herein is IBM Confidential and may not be used or disclosed without express written permission from IBM Corporation.

Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending on many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

Important disclaimer


Performance management in the moment and on the goAdvances in mobile

� Agile, mobile update– Location aware – Adjust targets and remedial actions

� Mobile review and approval– Track status– Review, annotate, submit

� Mobile contribution– Interactive visualization

IBM Confidential: References to potential future products are subject to the Important Disclaimer provided earlier in the presentation.


� Advanced performance management modeling and application design

� Blended planning, profitability and scorecarding

� Same high-speed, connected architecture

Powerful, common modeling experienceAdvances in scorecarding

IBM Confidential: References to potential future products are subject to the Important Disclaimer provided earlier in the presentation.


IBM announces the intent to acquire Star Analytics’ software portfolio

Flat files data, metadata and security

� Process automation and self-service

� Workflow orchestration

� Lifecycle management

� Audit and compliance

Automation

Open reporting standards

IBM business analytics

� Extracts data, metadata and security

� Supports Oracle Essbase, Oracle Hyperion Planning and Oracle Hyperion Financial Management

� Automated, near real time

Integration

OracleEssbase

Hyperion PlanningHyperion Financial Management

Business intelligence


Predictive analytics

Risk management


Agenda





Performance Management Maturity Model

Valu

e

Analytic data management

Maturity

Aligninformation

Optimizeoutcomes

Best practices


Analyzepatterns

Span finance and operations

Process automation

Enterprise-widetransformation

Steer continuously

� Managing multidimensional performance information

� Financial consolidation and close

� Budgeting

� Incentive

compensation

management

� Span financial and operations

� Leading and external indicators

� Driver-based modeling

� Scenario analytics

� Rolling forecasts

� Metrics and scorecarding

� Strategy management

� Product and

customer

profitability

� Predictive analytics

� Big data analytics

� Planning,

analysis and

forecasting

� Collaborative and

narrative

performance

reporting

� Disclosure management

� Sales performance management

� Agile enterprise

� Risk-adjusted value management

Accelerateand link

Engagefront lines AQ

IBM is a superior performance management resource


Performance Management Maturity Model

Valu

e

Analytic data management

Maturity

Aligninformation

Optimizeoutcomes

Best practices


Analyzepatterns

Span finance and operations

Process automation

Enterprise-widetransformation

Steercontinuously

Accelerateand link

Engagefront lines AQ

Essential to realizing their potential

Dex One

Becker Underwood

Del Monte Foods

McCormick

DaimlerHertz


Р еР еР еР е чччч

ы юы юы юы ю ееее -IBM


WW Spending Applications uses IBM Business Analytics to rapidly deliver value to over 3,000 analysts. We transformed theend to end expense management and reporting for over 400,000 departments. We reduced load time by 80% and calculations from nearly 45 minutes to real time. By standardizing our processes and measurements globally It enabled us to reduce our costs significantly, by consolidating

to a single worldwide application run on one IBM Cognos

TM1 cube rather than 16 disparate Oracle Essbase cubes -VP Finance IT, IBM

IBM Global Services – We needed to generate answers about the future revenue committed by customer through services contracts across all IBM brands so that we could accurately

forecast. Limits in Essbase meant using manual spreadsheets compiled at several levels, poor visibility and forecasting, andthe inability to look at the past backlog and drill to details.

Our commitment to informed decision making led us to consider private cloud

delivery of Cognos via system Z, which is the enablement foundation that makes possible +25M savings over 5 years - IBM CIO Office


Closing the skills gap with IBM and more than 200 universities worldwide


IBM business analytics: comprehensive capabilities


Content analytics

Decision management

Risk analytics

Content management

Data warehouse

Stream computing

Big data platform

Systems, storage and cloud

Analytics

Solutions

Consulting and implementation services

Industry

Information integration and governance

Business intelligence and predictive analytics

Sales | Marketing | Finance | Operations | IT | Risk | HR

Hadoop system


Next steps

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Business simulation

Decision making

Interactive workshop


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Joinour analyticsexperienceworkshops

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IBM Corporation 2013

• IBM, the IBM logo, ibm.com, Cognos, SPSS, Algorithmics, and OpenPages are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml.

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