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© 2012 IBM Corporation IBM Smarter Analytics CFO Performance Insight Cheong Weng Seng Business Analytics Performance Management IBM software ASEAN 20 June 2012

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Page 1: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation

IBM Smarter Analytics CFO Performance Insight

Cheong Weng Seng

Business Analytics – Performance Management

IBM software – ASEAN

20 June 2012

Page 2: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 2

Agenda

Why Smarter Analytics?

Smarter Analytics and Finance.

Analytics @ IBM Finance

CFO Performance Insight

Page 3: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 3

“At the World Economic Forum last month in Davos, Switzerland, Big Data was a marquee topic. A report by the forum, “Big Data, Big Impact,” declared data a new class of economic asset, like currency or gold.

“Increasingly, businesses are applying analytics to

social media such as Facebook and Twitter, as well as to product review

websites, to try to “understand where

customers are, what makes them tick and

what they want”, says Deepak Advani, who

heads IBM’s predictive analytics group.”

Wall Street Journal: “Companies are being

inundated with data—from information on customer-buying habits to supply-chain efficiency. But many managers struggle to

make sense of the numbers.”

“Big Data has arrived at Seton Health Care Family,

fortunately accompanied by an analytics tool that will

help deal with the complexity of more than two million patient contacts a year…”

“The Oscar Senti-meter — a tool developed by the L.A. Times, IBM and the USC Annenberg

Innovation Lab — analyzes opinions about the Academy Awards race shared in millions of

public messages on Twitter.”

“Data

is the new oil.” Ann Winblad,

Co-founder & Managing Director

Hummer Winblad Venture Partners

"…now Watson is being

put to work digesting

millions of pages of

research, incorporating

the best clinical practices

and monitoring the

outcomes to assist

physicians in treating

cancer patients.”

Page 4: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 4

The healthcare industry spends $250 - $300 billion on healthcare

fraud, per year. In the US alone this is a $650 million per day problem.1

1 rogue trader at a leading global financial services firm created $2 billion worth of losses, almost bankrupting the company.

5 billion global subscribers in the telco industry are demanding unique and personalized offerings that match their individual lifestyles.2

$93 billion in total sales is missed each year because retailers don’t

have the right products in stock to meet customer demand.

Source: 1.Harvard, Harvard Business Review, April 2010.

2,IBM Institute for Business Value, The Global CFO Study, 2010.

The need for analytics is pervasive across business and industry

Page 5: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 5

The emergence

of big data

Creating the need for

organizations to

understand and anticipate

customer behavior and

needs based on customer

insights across all

channels

Creating new

opportunities to capture

meaningful information

from new varieties of

data and content coming

at organizations in huge

volumes and at

accelerated velocity

Creating the need for all

parts of the organization

to optimize all of their

processes to create new

opportunities, to mitigate

risk, and to increase

efficiency

1 The shift of power

to the consumer 2 Accelerating

pressure to do

more with less 3

Today’s organizations are facing many disruptive forces that are

fueling the need for analytics

Page 6: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 6

Respondents who believe analytics

creates a competitive advantage

57% increase

More organization are using analytics

to create a competitive advantage

2010

58% 2011

37%

To the point where analytics has evolved from business initiative to

business imperative

Source: The New Intelligent Enterprise, a joint MIT Sloan Management

Review and IBM Institute of Business Value analytics research partnership.

Copyright © Massachusetts Institute of Technology 2011

1.6x Revenue Growth

2.0x EBITDA Growth

2.5x Stock Price Appreciation

Source: Outperforming in a data-rich, hyper-connected world, IBM Center for

Applied Insights study conducted in cooperation with the Economist

Intelligence Unit and the IBM Institute of Business Value. 2012

And they are outperforming their

competitors in key financial measures

Page 7: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 7

Operations Analyst

Marketing Manager

Benefits Officer Call Center

Manager

Line of Business users want capabilities and integrated solutions to

capitalize on today’s information-centric and insight-driven world

What is happening? Why ? What should we do about it?

…enabling them to answer three main business questions

Page 8: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 8

All perspectives Past – historical, aggregated

Present – real-time

Future – predictive

Analytically sophisticated organizations distinguish themselves by their

ability to leverage

At the

point of

impact

All decisions Major and minor

Strategic and tactical

Routine and exceptions

Manual and automated

All people All departments

Experts and non-experts

Executives and employees

Partners and customers

All information Social media, emails, chats

Transactions

Data warehouses

Documents

Sensors

Video

Location

etc...

Page 9: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 9

They are extending beyond enterprise data to capture the huge

opportunity big data presents

from surveillance cameras trade events per second

meter readings per annum

Analyze product sentiment

Predict power consumption

Monitor events of interest Identify potential fraud

Prevent customer churn

call detail records per day are images, video, documents…

Improve customer satisfaction

Volume Velocity Variety

5 100’s of Tweets create daily

12 terabytes

video

feeds million

350 billion 500 million 80% data

growth

Page 10: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 10

While we see organizations driving transformation through analytics in

four high-value areas

Churn management

Social media sentiment analysis

Propensity to buy/Next best action

Rolling plan, forecast and budget

Financial close process automation

Real-time dashboards

Predictive maintenance

Supply chain optimization

Claims optimization

Operational and financial risk visibility

Policy and compliance simplification

Real-time Fraud identification

1

3 4

Grow, retain and

satisfy customers

Manage risk, fraud &

regulatory compliance

Increase operational

efficiency

Transform financial

processes

Examples

2

Page 11: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 11

You could apply visibility on

customer buying habits into

improving your merchandising

and supply network

capabilities?

You could identify network

bottlenecks faster to drive

higher network performance

and lower network operating

costs?

You could close tax loopholes

by focusing audit resources

on only those returns that

seemed most unusual?

Organizations are turning to Analytics:

What if…

T-Mobile did!

What if… What if…

New York State did!

• Savings of over $6m+

annually on cost optimization

of network

• Savings of between $1m to

$2m annually from just in time

capacity investment

Elie Tahari did!

• Boost sales by >10%

• Achieve 30% savings in

managing supply chain

and mitigating

merchandise transfers

• Saved the state more

than US$889 million over

5 years

• Enabled faster refunds

processing

Page 12: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 12

Insurance Create a customer

focused

enterprise

•Customer

Retention & Growth

Enterprise risk

optimization

•Compliance

•Financial &

Operational

Risk Analytics

Increase flexibility

& streamline

operations

•Claims

Optimization

Government Improve citizen

services

•Citizen Services

Analytics

Manage resources

effectively

•Operational

Analytics

•Budget & Financial

Management

Strengthen

national defense

•Defense

Readiness

Improve public

safety

•Crime Prediction

Retail Deliver a smarter

shopping

experience

•Market Basket

Analysis

•Sentiment

Analysis

Build smarter

operations

•Store operations

Smarter

merchandising &

supply chains

•Store assortment

Telecomm

Deliver smarter

services that

generate new

revenue

•Churn Prediction

•Network

Analytics

Build smarter

networks

•OPEX and

CAPEX planning

Transform

operations

•Next best action

Banking Create a customer

focused enterprise

•Customer

Profitability

•Marketing

Optimization

Enterprise risk

optimization

•Compliance

•Financial &

Operational

Risk Analytics

Increase flexibility

& streamline

operations

•Payments analytics

Analytics cut across industries and solutions

Industrial Improve

production

efficiency

- Predictive

maintenance

- Supply

chain metrics

Optimise

global

operations

- Sales and

operations

planning

Page 13: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 13

How does CFOs use analytics to value add?

Page 14: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 14

IBM CFO Study 2010

Page 15: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 15 CFO Study ASEAN Point of View

2003

The 2010 IBM CFO Study is the fourth edition since 2003 and builds

upon our primary research from 2005 and 2008

CFO Studies

2010 2005 2008

Page 16: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 16

The Global CFO Study 2010 is the largest known CFO-level study of

its kind with over 1,900 participants

Geography Sector Enterprise Size (US$)

Title Scope of Role

Asia Pacific,

27%

EMEA,

42%

Americas,

31% Public, 13% Communications,

13%

Industrial,

25% Distribution,

28%

Financial Services, 20%

BU / Program

Area, 5%

Country,

27%

Region,

11%

Enterprise /

Global, 57%

Others, 8% SVP /

Controller /

Treasurer,

14%

CFO / Deputy

CFO / Director,

78%

<=$500MM,

25%

$501MM to

$1B, 15% >$1B to

$5B, 28%

>$5B to

$10B, 11%

>$20B,

14% >$10B to

$20B, 7%

Global CFO Study 2010 Firmographics

N = 1,910

Source: IBM Institute for Business Value, The Global CFO Study 2010

Geography = Country of Company Headquarters

Others, 1%

CFO Study ASEAN Point of View

Page 17: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 17

A broader enterprise-focused role requires core Finance efficiency

be in place to reliably support business insight and decision making

Addressing the Broader Enterprise-Focused Role of Finance

Source: IBM Institute for Business Value, The Global CFO Study 2010

Finance Efficiency

Business Insight

Demands on

Finance

Help drive enterprise

cost reduction

Support risk

management

Partner in strategy and

value creation

Improve access to and

reduce cost of capital

Provide performance

insight and anticipate

Finance

Capabilities

Needed

CFO Study ASEAN Point of View

Page 18: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 18

Analysis of CFO responses and objective enterprise financial

measures identified enablers to deliver efficiency and insight

Finance Efficiency and Business Insight Enablers

Corporate philosophy on

information standards

Common Finance data

definitions and data governance

Standard Financial chart of

accounts

Standard / common Finance

processes

Enabler

Analytical capability (operational

planning and forecasting)1

People / talent (effectiveness of

developing people in Finance)

Technology (deployment of a

common planning platform)

1 Also analyzed Scenario Planning, Predictive Analytics

Source: IBM Institute for Business Value, The Global CFO Study 2010

Finance Efficiency

Business Insight

CFO Study ASEAN Point of View

Page 19: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 19

Four Finance profiles become apparent when respondents are

segmented by efficiency and business insight

Note: Percentages in white refer to ASEAN study population, percentages in orange refer to global study population

Source: IBM Institute for Business Value, The Global CFO Study 2010

Finance

Efficiency

Business Insight

Low High

Low

High

23%

12%

32%

33%

Finance Profiles

6%

6%

69%

19%

Global

ASEAN

CFO Study ASEAN Point of View

Page 20: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 20

Value Integrators in ASEAN excel in both efficiency and business

insight, contributing to financial outperformance

Efficiency + Business Insight Contributes to Outperformance

Revenue Growth: N = 17; EBITDA: N = 16; ROIC: N = 16

Source: IBM Institute for Business Value, The Global CFO Study 2010

Value Integrators in ASEAN also have an almost 18% better operating efficiency ratio than all other companies examined.

17.4%

24.0%

13.1%11.4%

13.8%

-2.7%

53% better

74% better

5.8 x better

EBITDA 5-year CAGR, 2004-2008

Revenue 5-year CAGR, 2004-2008

ROIC 5-year average, 2004-2008

Value Integrators

All other enterprises

CFO Study ASEAN Point of View

Page 21: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 21

Three key themes emerged from examining the four profiles

Source: IBM Institute for Business Value, The Global CFO Study 2010

Delivering efficiency through standards matters

more than ever

Providing business insight drives performance

improvement beyond Finance

The greatest rewards come from doing both well

“Role of Finance has to evolve

beyond book keeping.”

CFO, Malaysia

“We need to make smarter

decisions, not necessarily faster

ones.”

CFO, Thailand

CFO Study ASEAN Point of View

Page 22: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 22

The majority of ASEAN enterprises are not able to effectively deliver

business insights

62% are poor to average

at anticipating external

forces

Over 70% manually

producing operational

metrics

Over 45% lack a common

planning platform

Over 75% not satisfied with their

operational planning and

forecasting analytical capability

Business Insight Challenges

Source: IBM Institute for Business Value, The Global CFO Study 2010

CFO Study ASEAN Point of View

Page 23: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 23

ASEAN Finance organizations are less effective at delivering

business insights than their global peers

Source: IBM Institute for Business Value, The Global CFO Study 2010

48%

76%

72%

62%

49%

55%

53%

44%

Lack of a common

planning platform

Not statisfied with

operational planning and

forecasting analytical

capability

Operational metrics

produced manually

Poor to average at

anticipating external

forces

ASEAN Global

Business Insight Challenges

CFO Study ASEAN Point of View

Page 24: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 24

The journey to business insight can be accelerated

Business Insight Accelerators

Source: IBM Institute for Business Value, The Global CFO Study 2010

Timely financial

and operational

metrics

Establishing

standards for

non-financial data

Business Insight

Analytical capability (operational

planning and forecasting)

People / talent (effectiveness of

developing people in the Finance

organization)

Technology (deployment of a common

planning platform)

CFO Study ASEAN Point of View

Page 25: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 25

73%

57%

Finance organizations in ASEAN that have business insights and

have automated production, are more efficient, and facilitate speed

of insight Accelerator #1: Timely Metrics

ASEAN, Financial: N = 34; Operational: N = 33, GB Growth Markets,Financial: N = 141; Operational: N = 141, Global, Financial: N = 1,454; Operational: N = 1,428

Source: IBM Institute for Business Value, The Global CFO Study 2010

69%

43%

Finance

organizations

with strong

business

insight

All other

enterprises

% More

57%

% More

28%

74%

47%

% More

60%

ASEAN Global Growth Markets

56%

46%

61%

43%

46%

45%

Finance

organizations

with strong

business

insight

All other

enterprises

% More

22%

% More

48%

% More

42%

High Automation of Operational Metrics

High Automation of Financial Metrics

CFO Study ASEAN Point of View

Page 26: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 26

IBM Finance Transformation

Page 27: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 27

The “Smarter” phase of IBM's transformation is underway with Finance

playing an instrumental role

2002

Sharing & partnering

2010

Making things smarter

2006

Globally integrating

• Right skills, right place, right cost

• Rationalize support functions for greater efficiency

• Radically simplify processes

• Consistent set of processes worldwide

• Leverage best practices

• Standardize and reduce waste

• Governance and performance discipline

IBM as a “dinosaur”

Pre-2000s

• Decentralized organization

• Maze of financial systems

• 14,000 Finance employees – 2x Competition

• High percent of time spent on Administrative tasks

• Finance organization viewed as low value add

• Instrumented, interconnected, intelligent

• Enable growth and productivity

• Optimize the whole system

Page 28: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 28

We are aggressively investing to enable clients and our company to drive

innovation through essential expertise

Autonomic Operations

Developer Productivity

Deep Compression

pureXML

pureScale

Pervasive Content

Stream Computing

Content Analytics

Advanced Case Management

Workload Optimized Systems

Social Analytics/Consumer Insight

2005

Decision Management

• $16B in Acquisitions Since 2005

• 10,000+ Technical Professionals

• 7,500+ Dedicated Consultants

• Largest Math Department in Private Industry

• 27,000+ Business Partner Certifications

• 8 Analytics Solutions Centers

• Optimized hardware and software offerings

• 100 analytics-based research assets;

almost 300 researchers

• Significant marketing investment

worldwide through Smarter Planet

2012

Page 29: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 29

• Typical approach to analytics involve manual

forecasting and extensive use of excel worksheets

• Minimal integration between financial and

non-financial data to optimize decision making

• Limited knowledge of new tools and applications

across functions

• Powerful set of data and reporting capabilities

which are not being leveraged for predictive analytics

• Mostly common, global financial applications

and data with high volume reporting

• Typical approach to analytics involve manual

forecasting and extensive use of excel worksheets

• Minimal integration between financial and

non-financial data to optimize decision making

• Limited knowledge of new tools and applications

across functions

• Powerful set of data and reporting capabilities

which are not being leveraged for predictive analytics

• Mostly common, global financial applications

and data with high volume reporting

In order to drive change one must first understand their starting point

IBM Finance Current Environment

Page 30: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 30

Our self-assessment led to the formation of the FLAG team charged with identifying, prioritizing and implementing initiatives to drive the adoption of analytics

Guiding Principles (for Prioritization):

• Capitalize existing data capture

methods/tools

• Significant enhancement vs. current –

leverage for competitive advantage

• Ensure broad IBM wide application

• Deliver value through Predictive Modeling and

Optimization

• Promote and adopt ―self-service‖ model

Solicit ideas

from teams worldwide

90 ideas / comments

Prioritization 1

(by Brand / Unit)

10 opportunities

Prioritization 2

(Cross-Brand / Unit)

3-6 projects

Analytics Survey Recommendations:

Client Value

7 (8%)

Other

2 (2%)Risk & Controls

12 (13%)

Revenue

Generation

22 (25%)

Margin

Expansion

47 (52%)

Page 31: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 31

Analytics@IBM serves as the liaison between our user community and IT

Mission: To champion internal adoption of IBM

analytic solutions to improve our customer offerings and showcase a powerful message

of scalability, ROI and competitive displacement

FLAG Finance Leadership Advocacy Group

BACC Business Analytics Center of Competency

IBM Finance has made great strides in

Efficiency & Effectiveness and the journey

continues

12%

47%

2005 2011

70%30%

1994 2011

Lowering Expenses Optimizing Global Capabilities

Shifting to Higher Value

IBM Finance –

Fastest adopter of Analytics@IBM

Move beyond labor & process arbitrage

(expense productivity)

to the next wave -

Intellectual Productivity

(Expense to Revenue) (Percentage of resources in COEs)

(Decision Support)

EDUCATE

ENABLE

EVANGELIZE

Objectives:

1%

3%

1994 2011

Page 32: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 32

Real Stories: IBM Smarter Analytics

Page 33: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 33

CHALLENGE

SOLUTION

BENEFITS

• Different geographies and

brands used their own data

sources and processes supporting

expense management

• No standards meant systems

were not tied to key CHQ

management system (WWIE)

• Delays in accessing information

due to long load times of Cubes

• Implemented consistent data

and metadata standards

Developed a flexible / modern

SOA architecture allowing for

easy expansion across

geographies

• Single worldwide application

for Spend Analytics and tracking

on one TM1 Cube across all

geographies with 3,000+ current

users, 500+ concurrent active

system users

• Increased visibility across

geographies and brands

allowed for cost control

optimizations

• Common processes increase

career options of financial

analysts across IBM

• Single application to support

common set of skills required to

use and maintain

• Reduced cube load times by

80%

• Reduced calculation times

from 45 minutes to near real

time

• Lower third party licensing

costs

WorldWide Spend Application

Analytics Tool:

IBM Cognos TM1

Page 34: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 34

IBM Country Financial Risk Scorecard - Smarter Near Real-time Integrated Risk Management

Analytics Tool:

IBM Cognos BI, SPSS

CHALLENGE

SOLUTION

BENEFITS

• Vast amounts, but fragmented

data provides little opportunity

for consistent analysis and

proactive identification of

financial country risks

• Lack of automated solution

requires manual aggregation and

analysis

• Limited visibility to external risk

creates a blind spot to emerging

risks

• Created Scorecard that

automated information integration

and financial risk monitoring KRIs

– Business insights into risk

exposures

• Risk-based predictive analytics

by:

- Country

- Trends

• Enable agile decision making

to seize opportunities and

mitigate impact of unfavorable

risk events. Centralized,

consistent, and automated

approach to measure and monitor

financial risks

• Empowering chief financial

officers (CFOs) to be value

integrators

• Increase productivity of finance

leaders across the enterprise,

encourage broader global

collaboration, and elevate skill

levels. Reduce time to gather and

analyze data from weeks to

hours

Page 35: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 35

Automating IBM Treasury Reporting

Analytics Tool:

IBM Cognos FSR

CHALLENGE

SOLUTION

BENEFITS

• IBM Treasury needed a solution

to automate the collection and

aggregation of daily, updated

cash/debt data and FX rates

• Such solution would allow

Treasury Management to look at its

cash positions around the globe

and see near real-time data

quickly, easily and accurately

Using IBM Cognos FSR, the

Treasury Department was able

to automate each step in the

cash management process,

which allowed it to:

• Cut the time and effort

needed to collect, consolidate

and review monthly reports and

forecasts

• Greatly reduce the risk of

errors in this critical Finance

function

• IBM Treasury accomplished its

key objective of increasing

productivity by eliminating many

manual and error-prone

processes

• The collection, aggregation,

review and validation of the

quarterly cash and debt data and

reports were automated, while

controls and visibility over the

entire process have been

optimized

• Implementation and training

were quick since FSR leverages

the familiar user interfaces of

Microsoft Excel and Microsoft

Word

Page 36: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 36

IBM Smarter Analytics Signature Solution:

CFO Performance Insight

Page 37: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 37

Overview

Tackle High-value initiatives

Address industry imperatives

and critical processes

Deliver Proven outcomes

Built on a rich portfolio of analytics

capabilities and IBM innovations

implemented at clients world-wide

Accelerate Time-to-value

Faster return-on-investment

with short-term projects that

support the long-term roadmap

IBM Smarter Analytics Signature Solutions

A portfolio of outcome-based analytics solutions that address the most pressing industry and

functional challenges by bringing together the breadth and depth of IBM’s intellectual capital,

software, infrastructure, research, and consulting services to deliver break-away results.

Page 38: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 38

• What happened?

• How many, how often?

• Where exactly is the problem?

• Why is this happening?

• What actions are needed?

• What will happen next?

• What if these trends continue?

• What are the potential

performance gaps?

• Balance sheet, profit and loss, and cash flow statements

• Revenue and cost variance analysis

• Customer, product and market profitability

• Spend optimization

• Working capital analysis

• Market, customer, & channel pricing

• Sales and supply chain effectiveness

• Cash forecasting

• Scenario-based planning and forecasting

• Strategic investment decision support

• Volatility and risk-based predictive and behavioral modeling

Rear View Current View Forward-looking View

Organization need to adopt new ways of working to improve

efficiency and performance

CFO Study ASEAN Point of View

Page 39: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 39

CFO Performance Insight drives finance transformation by helping executives to anticipate and answer critical questions

How can we trace a

performance issue

to its root cause?

What is the impact

of changes in our

key metrics?

How are we

performing as an

organization?

What is driving

our results?

How do we know

we are spending

our budget wisely?

CFO Performance Insight

Measure and monitor financial and operational performance

Anticipate performance gaps, understand root cause and assess alternatives

Drive profit and revenue growth through the strategic application of analytics

Deliver better business insight on a stronger foundation of trusted information

Page 40: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 40

Increase visibility, insight, and control over financial performance through predictive analytics

Business outcomes

• University reduces financial

modeling process by 25

percent

• Finance company improves

reporting efficiency by 70

percent

Solution overview

Measure, monitor, and anticipate business performance

with pre-configured solution that:

• Uncovers temporal-causal relationships between

performance metrics using predictive analytics

• Enables guided root-cause analysis and what-if analytics

through executive style dashboard

Solution benefits

• Generate timely, reliable answers to financial questions

• Enhance visualization of performance trends and gaps

• Improve operational efficiency and deliver trusted

financial information

IBM Smarter Analytics Signature Solution

CFO performance insight

Page 41: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 41

How it works

IBM Smarter Analytics Signature Solution

CFO performance insight

Information management foundation

Trusted Data Delivery | Performance Workload Management |

Source systems — ERP, G/L, legacy systems

Predictive

analytics

Temporal causal

modeling

• Discover causal relationships

• Understand lead-lag indicators

• View strength of metric relationships

• Degrees of separation

What-if analysis

• Real-time reporting on alternative scenarios

• Multidimensional modeling

• Easy-to-use analysis environment

• Write scenarios back to your forecast

• Enhanced visualization

Measure, monitor, discover and

anticipate

Integrated analytics capabilities

• Identify performance gaps

• Drill down and drill through

• Guided root-cause analysis based on discovered

causal relationships

• Integrated what-if analysis to anticipate the impact

of alternative assumptions

Identify causal relationships between metrics

Page 42: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 42

DRAFT

Executive

Dashboard

Traffic light

indicators

Report List

Financial

reports

Link to ERP

Web Interface

―What-if‖

analysis

Metric

trending

Actual vs Budget

vs Forecast

Risk Status

indicators

Temporal Causal

Model Analysis

Increase visibility, insight, and control over financial performance through predictive analytics and a trusted information management foundation

IBM Smarter Analytics Signature Solution

CFO Performance Insight

Page 43: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 44

Provide insight into interactions among business metrics using advanced analytics algorithms

Discover relationships between performance indicators, achieve new insights, and drive more effective decision making

Temporal causal modeling leverages predictive analytics to answer key questions:

• What metrics have the most impact on my performance?

• How do these metrics interact with each other?

• How will my performance change when I control certain factors?

• How can I achieve my future target performance?

• How can I visualize and interpret the relationships between metrics?

Page 44: IBM Smarter Analytics CFO Performance Insight

© 2012 IBM Corporation 46

CFO Performance Insight Transform through analytics for breakaway results

Reduced time required for the planning

process by up to 75%, and reduced

reporting time from few days to few minutes

Achieved operational efficiency, through

the visualization of complex status of

business operations and market trends

Anticipated increase in overseas sales

ratio from 10% to 50% by 2014 through

improved simulation and insight into

performance

...to unlocking the

next possibility

From solving the

existing problem…

Banking Media & Entertainment

Reduced time to prepare budget reports by 70 percent, since the platform is constantly fed with incoming data

Facilitated decision-making by showing, for example, which department or product is most profitable

Improved business performance through visibility into all subsidiary business processes, enabling management to respond to problems quickly and to take preemptive moves for more efficient use of company resources

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IBM Smarter Analytics Signature Solution

CFO Performance Insight

• Performance

Management

Diagnostic

• CFO Dashboard

asset implementation

• CFO Performance

insight solution design

& implementation

IBM services

• IBM Cognos BI

• IBM Cognos TM1

• IBM SPSS Modeler

• IBM InfoSphere Information Server

IBM software

• Predictive analytics

algorithms and

techniques

• First of a Kind

combined

client/Research

projects

• Advanced industry-

specific optimization

enhancements

IBM research

• Accelerate time-to-value through repeatable solutions

• Measure and monitor financial and operational business performance

• Anticipate performance gaps, understand root cause and assess alternatives

• Outcome-based approach that drives business value at each step in the journey IBM Systems and Technology

Client value

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A smarter planet is built on Smarter Analytics

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© 2012 IBM Corporation 49

IBM Smarter Analytics is a holistic approach that turns information into insight and insight into business outcomes

Broad and integrated portfolio of information and analytics capabilities

• Largest investment in analytics software and solutions with over $16B in acquisitions since 2005

• Enterprise Class Big Data Platform as part of a comprehensive Information Management Foundation

• Analytic Capabilities that scale from personal to enterprise to next generation systems that reason and learn

• Decision management solutions that embed predictive analytics into business processes

Proven experience accelerating time-to-value and delivering breakaway results

• Over 9,000 experienced strategy, analytics, and technology experts and consultants around the globe

• Proven solutions & use cases across industries and functions, from 1000’s of client engagements

• Thought leadership and practical insights from the IBM Institute for Business Value

• Jumpstart services and eight global IBM Analytics Solution Centers to help organizations get started

Comprehensive delivery options to compliment capabilities and lower TCO

Broad range of implementation models, including:

• System Integration, Consultancy, Transformation

• Application Management Services

• Appliance, Hardware, Cloud, Mobile

Advanced technology and expertise applying innovation to real world problems

• First-of-its-kind breakthrough innovations, including IBM Watson

• World’s largest math department in private industry since 1960

• Nearly 600 analytics patents per year and first in patent ranking

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Join us

3rd July 2012

Johor room, Shangri-la Hotel KL

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© 2012 IBM Corporation 51

[email protected]

+65-6418-1055