digital planning in financial serviceskonferenciak.advalorem.hu/uploads/files/neil sellers...

May 2018

Copyright © 2018, Qubix International Ltd. All rights reserved. Enabling the Predictive Enterprise

Digital Planning in Financial ServicesPredict and model future financial outcomes.

Neil Sellers – QubixGroup Director


What’s Right for You?

# of Business

Analytics Projects….

300+

Customers Include:

•Lloyds Banking Group

•Nomura Securities

•Mizuho International

•Tesco Bank

•Schroders

• ICAP

•Debenhams

•Canon

•BT

•NHS England

•Angel Trains

•Perkins Engines

•Carpetright

Experienced Consultants

Average 8 years of

experience

Why Qubix?

Proven.

Trusted.

Flexible.

15+ YearsPlatinum

Customer ListOracle Trainers

Global ReachOffices:

USA – UK – Australia – India –

Japan - Slovenia

Our depth of capability…

Strategy &

Roadmap

DesignTrain

Optimise

Support

Integrate

Our Approach…

With You, Not to You

Outcome DrivenWhat’s right for you?

The Qubix Journey Method


5

OUTCOME-DRIVEN CHALLENGERSTRUSTED

WHAT’S RIGHT FOR YOU

MAXIMISE YOUR RETURNS

FASTER TIME TO BENEFIT

DELIVER AS PROMISED

1ST TO CLOUD

INDUSTRY BENCHMARKING

FIXED SCOPE SOLUTIONS

WE INNOVATE

CUSTOMERS LOVE US

ORACLE PLATINUM PARTNER

1000+ ENGAGEMENTS

AWARD WINNING

Making you successful is our focus, so we

make it our business to understand your

priorities

We have done it before, so we know how

to get the results you want rapidly

We don’t only deliver the project, but

also deliver free training to make sure

adoption is successful

Qubix will make sure all expectations and

milestones of every engagement are

completed

Qubix was a the lead partner when Oracle

brought to EPM to the Cloud and is

leading Analytics Cloud charge

We have a partnership with Aberdeen

Group to provide industry thought

leadership and industry benchmarking

Remove risk of escalating projects costs

with our fixed scope projects which have

predefined parameters and costs

We employ Predictive Analytics, AI,

Machine Learning and big data at our

customers to provide business outcomes

We have had customers travel globally for

us to talk about what we have helped

them achieve

2016 Oracle Platinum partner for EPM

We have a broad range of experienced

consultants who can deliver a range of

projects across Oracle EPM Cloud and

Business Analytics Cloud

We have been awarded many accolades

in the EPM and Business Analytics space


Cloud Customers

Customers Live

Churn

22

100%

0%

We’ve been taking a lead since the start

Global Partner Specialised in Performance

Management and Analytics

Good, Better, Best packages copied globally

To create Fixed Scope Offerings

On-Premises & Cloud-to-Cloud Integration

With add on Value - CloudBridge

Re-imagined deployments to fit Cloud

With Cloud Go-Live Wizard

Industry specific pre-built solutions

To Create Template Solutions

Oracle Cloud Leaders


Survive or ThriveUsing the Digital Cloud to innovate?

In a turbulent political and economic environment like today, change happens on a daily basis. What does this mean to you?

Copyright © 2018, Qubix International Ltd. All rights reserved. Enabling the Predictive Enterprise 8

Innovation changes everything!


What CEOs Care About

NEW MARKETSBusiness Agility and Entering

GROWTHFinancial

“SURVIVAL”

Digital Transformation of the Business

Change is the New Constant

11

Ability to Respond

Pace of Change

88%of organizations are undergoing some type of transformation today

Since 2000, 52% of companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist

12

MOBILE & SOCIAL

RETAIL

Commerce Anywhere on

Any Device

HEALTH SCIENCES

Personalized Medicine

FINANCIAL SERVICES

Online Banking and Mobile Payments

COMMUNICATIONS

Machine-to-Machine

Communications

$1+ trillion in Mobile eCommerce revenue by 2018

$17+ billion in Big Data revenue by 2018

BIGDATA

$530+ billion in Cloud Services revenue by 2020

CLOUDSERVICES

$290+ billion in Machine-to-Machine revenue by 2018

THE INTERNET OF THINGS

UTILITIES

Smart Grids and Flexible Power Consumption

ASSET INTENSIVE

Flexible CapitalPlanning &

Deployment

$

HOSPITALITY

“Above Property” Cloud Solutions

Digital is Transforming How Industries Create Value


"By 2021, Enterprises' Spending on Cloud Services and Cloud-Enabling Hardware, Software, and Services Will More than Double to Over $530 Billion”

- IDC FutureScape: Worldwide Digital Transformation 2018 Predictions


Strategic Priorities for Global CFOs

CFOs Want to Modernize Finance

Source: Oracle-Accenture Research: Empowering Modern Finance: The CFO as Technology Evangelist

• Data analysis

• Systems expertise

• Business partnering

• Big Data

• Mobile

• Cloud-based systems

• Respond faster to internal and external clients

• Flex the business model in response to change

Improve Speed of Decision-Making

Leverage High-Impact Digital Technologies

Restructure the Finance Skill Set


Generating Value that’s Tangible from Digital

0 5 10 15 20 25

Mobile

Social

Cloud

Big Data

Timeliness of decision making ROI Time to value Reduce costs Agility

Source: Longitude Survey results for Empowering Modern Finance – The CFO as Technology Evangelist, commissioned by Oracle and Accenture

• Cost and ROI are major drivers for cloud and mobile

• Improved business agility is most associated with mobile


DON’T GET LEFT BEHIND

Modern Finance is evolving from governance to guidance

Digital EPM is the new Business Sat Nav to get you back in the driving seat and transforming your company

Every Line of Business needs Digital Planning

SALES MARKETING HUMAN RESOURCES

OPERATIONS SERVICE

Revenue Planning

Territory & Quota Planning

Compensation Planning

Sales Performance Reports

Campaign Planning

Media Mix Planning

Product Lifecycle Planning

Marketing Briefs

Workforce Planning

Payroll Planning

Position-based Budgeting

HR Briefing Books

Demand Planning

Sales & Operations Planning

Product Profitability Analysis

Operations Review Reports

Call Center Planning

Resource Planning

Service Revenue Planning

Service Performance Reports

17

18

Pivot to the cloud

Copyright © 2018, Qubix International Ltd. All rights reserved. Enabling the Predictive Enterprise19

Qubix Digital Scorecard


Integration with Oracle Analytics Cloud

•Native Integration with Essbase Cloud

•Connect to Performance Management Cloud

•Relational Sources

•Cloud and On-Premise connectivity

•Prescriptive Dashboards for Consumers

•Self-Service Analysis for LOB Users

•Explore, Visualize, Share Insights


Prepare to Simulate - Value

Strategic modelling is a powerful tool for understanding how firms adapt to a changing environment.

Business modelling is used to make sense of strategic initiatives and to anticipate their impacts through simulation.

Source: Strategic Modelling and Business Dynamics, J Morecroft


Strategic Planning Solutions

– Environment for users to model strategic decisions and immediately see the Financial

outcome of these options.

– Ability to adjust the BIG LEVERS of the organisation as opposed to the smaller levers we

use in Operational Planning solutions.


Strategic Planning and Modelling

▪ Funding / Debt / Capital Structure Modelling

▪ Merger, Acquisition & Disposal Modelling

▪ Shareholder Value Impact Analysis

▪ High Level Operational Levers

▪ Powerful What If Capability for Risk Analysis

▪ Project Selection Impact Analysis

▪ Reorganisaton / Transformation Analysis

Strategic Financial Planning Solution common features:

▪ Integration with Operational Planning

▪ Integration with Scorecard Solutions

▪ Easy to Use Analytical Tools

▪ Dynamic Impact Consolidation

▪ Unlimited What If Scenario Modelling

▪ Long Term Capability

▪ Transparency of data and logic

▪ Audit Trail


Goal Seek

– This allows simulating the values in an account to meet a specific goal, or value, in another account for a given scenario.


Will you Dare to Predict?

Performance Management

Predictive Analytics

Predictive Planning


Dare to Predict – The Value

Statistical-based predictions available for Planning process

Understandable and usable by all Business users

Takes the emotional aspect out of forecasting / budgeting

Encourages establishment of forecasting best practices


Dare to Predict - When

• Generate a Plan or Forecast

• Seed or create a Baseline

• Validate for Improved accuracy and stress testing

“The value finance teams can deliver to a business, will transform the role of finance.”


Dare to Predict – How

• Functionality from Crystal Ball

Predictor

• Forecasting Methods

- ARIMA Time-series Forecasting

- Classic Time-Series Forecasting

- Non-Seasonal (Single/Double Moving

Average, Single/Double Exponential

Smoothing)

- Seasonal (Additive, Multiplicative, Holt-

Winters)

Autoregressive Integrated Moving Average Model


Dare to Predict


Qubix Case Studies

31


• Solution covered Actual, Forecast and Budget P&L, Capex and Projects data in addition to employee

level Workforce Planning and a detailed cost allocations engine.

• Full EPM and BI Suite implemented including Planning and Essbase for full cost and revenue planning,

Profitability and Cost, Close Manager and Account Reconciliation Manager for Balance Substantiation

and BI for Reporting

• Journey to the Oracle Cloud in Progress with Financial Close and Consolidation Cloud and Account

Reconciliation Cloud going live this month. POC on PBCS, PCMCS and EPRCS.

• Integration with Oracle EBS financials and Projects, including trading systems for balance uploads and

flash reporting

• Data Integration controls via Data Integration Truth Layer/Staging area framework

• Implemented sign-offs at the responsibility level for SOX compliance

Case Study – Global Investment Bank Finance Transformation



33

DRM

Planning

Projects

Finance (FIN)

E-BUS

GL (Project Data)

GL (Financial Data)

HPCM

AllocC

AllocR

Staging Truth Layer

FDMEE Tables

Data integration layer to provide:

- More robust process less prone to failure

- Better recovery from unexpected failures without DBA intervention

- Better reporting of issues encountered and more descriptive messages

- Less manual process with fewer steps to perform

- Scheduling responsibilities in Cronacle

Essbase

Mgmt Reporting

OBIEE

Analysis

Dashboards

• DRM – Data Relationship Management

• FDMEE – Financial Data Management

• HPCM – Profitability and Close Management

• OBIEE – Oracle Business Intelligence


Key highlights of the project:

• 5 Key areas of redesign showing impact/resolution and value

• Started with UK team and rolled out the JAPAC team

• Involved Financial controller’s, GL team, SOX team and Financial and Management

reporting teams

Outcome

The resulting re-engineered process were adopted by the stakeholders and underpinned the

technological solution.

Delivered a standardised process

-significant time and efficiency savings through automation of key processes,

-reduced the level of key person risk

Freed up resources to undertake value added activities such as scenario analysis in place of data

gathering and processing.



Project Features Benefits

Essbase EMEA Upgrade &

AEJ Roll Out

• Build a GFA Essbase infrastructure with Essbase 11 in Tokyo

• Migrate EMEA Essbase 6.5 Monthly and Daily cubes into the

Essbase 11 server in Tokyo.

• Rolled Monthly cube to AEJ with Asia Dodge GL data automation.

• Introduce Class Leading reporting tools

• Upgraded Essbase 11 with more robust functionality and better

performance. Including full Oracle Support

• Part of GFA architecture roadmap.

• Consistent ESSBASE monthly cubes in AEJ and Europe supporting the

delivery of MIS

Monthly Global

Consolidated Cube

• Create one global ESSBASE cube for global monthly

management reporting Ledgers data from 5 regions, globally

• Manual web interface for subsidiary data input and adjustment

data.

• Leverage Essbase staging process for future transaction drill-

through functionality

• New Fields, BS, Risk, FR

• Reduce the manual spreadsheet and operational error.

• Improve the business process efficiency.

• Single global consolidated data view for management reporting.

• Robust Essbase features for Japan and US users (total around 150 users)

Global Daily Essbase

Cube

• Build a Global daily cube to facilitate performing regional actual

vs flash reporting and global daily reporting

• Near real time analytics

• Control around data consistency

• Replaces US BO Environment

• Streamlines AEJ & TK daily process

Oracle Analytics

• Complete the design of Analytics and data warehousing for GFA

• Build the Analytics Datamart proof of concept

• Allows disparate data stacks to be reported in a single environment with

additional reporting tools.

Japan Finance Cost

Transparency Project

using Profit & Cost Mgmt

• Consistent and easily understood methodology for allocations

enabling business users to easily control and explain/defend the

cost allocation process

• Ability to simulate alternative cost allocation approaches

• Elimination of “Spreadsheet Hell”

• Reduced Effort, Enhanced Accuracy and Improved Cycle Time

• Improved Visibility & Understanding of Cost Allocations

Case Study – Global Investment Bank Global Finance Architecture


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Successful Redesign of Global Essbase and Planning with significant performance

improvements and good business realisation.

A solid framework to leverage going forward.

Case Study - Consumer Credit Reporting Agency


Revenue Planning ProcessRevenue Planning Tool aims to

1) Automate consolidation of New/Known/Pipeline

2) Process Workflow of the sales team review and adjustment process

3) Provide transparency of forecast make-up to Sales Leadership

4) Automate the revenue forecast load into PlanRep ad Mint

Sales and Revenue Pipeline forecasting



Functional Architecture



• Oracle Essbase

• Oracle Business Intelligence Enterprise Edition

• Oracle Analytics Cloud Service, PBCS, PCMCS

• Oracle Database, ODI, DRM, FDMEE

A Royal Bank of Scotland has paved the

way in banking since it was established.

From the world’s first overdraft, and the

first house purchase loan by a UK bank, to

the first fully-fledged internet banking

service, the bank has a history of making

life easier for its 30 million customers.

New General Ledger system due for

implementation with limited reporting

• No Ad-hoc analysis capability

• Report executed directly onto GL system

• Poor performing reports when

requesting aggregated views of GL data

- GL tables designed for transactions not

reporting

• No single source of truth for reporting

tools for Actual GL data

• Multiple systems taking their own

exports of Actual GL data for reporting

at different points in the day -

contradicting other reporting tools

Client Background

The bank faced a challenge of delivering clear accurate reports across the business. They could see the value of a

centralised reporting environment that would drive users to explore data and report efficiently across the business. This

removed the doubt some users had over the accuracy of the data and removed the need for users to use Excel as a

reporting tool, often creating siloes information. The global team was also have the ability to explore anomalies in the data

and drill from report to source with in the source systems to get a detailed view on issues for accurate decision making.

Qubix resources implemented the solution and the main achieved objectives include:

• GL Data Warehouse, providing a single, consistent source of GL Actuals and Reference Data

• Removed the need for reports to execute directly onto the GL tables

• Performance & Access layer for reporting tools with performance and tool requirements taken into consideration

• Reference Data vs Data validations

• Validation and reconciliation failures can be viewed via OBIEE

• Reconciliations to ensure data integrity

• Processing 1.5m rows per day

• Standard reporting using OBIEE

• Single view of data across the Enterprise

• Aggregation & viewing data at different levels of various hierarchies result in timely reporting

• Drill-through from Balance level data to Journal level data

Despite a large complex implementation, with many moving parts, this Project was developed within 10 months and went

live in 2017.It has been rolled out to over 500 users globally and is used daily to deliver financial reporting and insight across

the business.

Ledger Reporting and Management Information Reporting solution

Technology Deployed

Previous Challenges

Case Study – Large Retail Bank Group Management Reporting

Digital Planning…

Improves Plan and Forecast Accuracy

Allows adaption to change in uncertain times

Prompts Questions and Analysis using Analytics

Pathway to Best Practice AI for Growth

Aligns Strategy with Operational/HR Plans

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2

3

4

5

Qubix Digital

Turns Data Streams into Revenue

Streams

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