g a infomart cognos tm1 planning budgeting-forecasting solution

© 2010 IBM Corporation

Business Analytics

Planning, Forecasting and Budgeting powered by IBM Cognos


Business Analytics

Finance & IT ChallengesOverview Of Financial Performance Management Product

Portfolio Enterprise Planning & Advanced Analytic SolutionsProof PointsQ&ASummary

Agenda


Business Analytics

Uncertainty – The New NormalVelocity and Volatility

“Over 60% of Finance executives believe that when the recovery takes hold, the heightened uncertainty in the business will remain”

CFO Magazine/Duke University Business Outlook, September 2009

“~60% of Finance organizations believe that they have to make major changes to respond [to growing industry/sector pressures]...”

2010 IBM CFO Study


Business Analytics

Persistent Challenges

Spreadsheets FailingSpreadsheets Failing“there have been well-documented cases of errors and losses resulting from spreadsheet manipulation errors and accidents.” Gartner, August 2007

Disparate SystemsDisparate Systems“Average finance organizations operate 11 finance systems per billion dollars of revenue.” Hackett Group, 2007

Business RisksBusiness Risks“62 percent of enterprises … encountered a major risk event … 42 percent of these enterprises were not well prepared for the event.”IBM Global CFO Study 2008


Business Analytics

Driving a Smarter Enterprise

EXECUTIVEMANAGE-MENT


MARKETINGMARKETING

PRODUCTIONAND

DISTRIBUTION

PRODUCTIONAND

DISTRIBUTION PURCHASING

PURCHASING

TECHNOLOGY

IT/R&D

TECHNOLOGY

IT/R&D

CUSTOMER

SERVICE

CUSTOMER

SERVICE

MARKETINGMARKETING SALESSALESSALESSALES

FINANCE

FINANCE

FINANCE

FINANCE



MARKETING

MARKETING

PRODUCTIONAND

DISTRIBUTION

PRODUCTIONAND

DISTRIBUTION PURCHASING

PURCHASING

HUMANRESOURCESHUMAN

RESOURCESHUMAN

RESOURCESHUMAN

RESOURCESTECHNOLOG

YIT/R&D

TECHNOLOGY

IT/R&D

CUSTOMER

SERVICE

CUSTOMER

SERVICE

SALESSALES

FINANCE

FINANCE

• 70% of CFOs believe they have an advisory or decision making role on an Enterprise Agenda

• Finance needs to improve its effectiveness in order to deliver on the Enterprise Agenda

34%

28%

26%

21%

23%

Driving integration of information across the enterprise

Providing inputs into enterprise strategy

Supporting / managing / mitigating enterprise risk

Measuring / monitoring business performance

Driving enterprise cost reduction

62% 85%

52% 80%

59% 80%

39% 73%

51% 77%

0% 20% 40% 60% 80% 100%

Gap

Importance Effectiveness

Source: 2010 IBM Global CFO study

2

1

3


Business Analytics

This requires improved finance efficiency and business insight

Source: IBM Global 2010 CFO study


Business Analytics

Finance & IT ChallengesOverview Of Financial Performance & Strategy

Management Product Portfolio Enterprise Planning & Advanced Analytic SolutionsProof PointsQ&ASummary

Agenda


Business Analytics

Financial Performance Management is the systematic reporting, analysis, planning, and optimization of enterprise performance to support growth, profitability, and compliance demands.

Financial Performance Management systems structure and automate the processes that help companies

–Plan, forecast and control enterprise resources;

–Measure, analyze and optimize performance;

–Report to external stakeholders with confidence.

Financial Performance & Strategy Management Defined


Business Analytics

9

SPSSPredictive Capabilities

TM1On-demand Planning & Analytics

Business Analytics

Business ViewpointDimension Management

Business IntelligenceReporting, Analysis,

Dashboarding, and Scorecarding

ControllerConsolidation and Corporate

Reporting

ExpressBI and planning purpose-built for

midsize companies

Analytic Applicationspackaged reporting and analysis

to optimize business performance


Business Analytics

• Account Analysis

• Close Analytics• Financial

Consolidation• Corporate

Reporting

• Financial Analytics

• Spend Analytics• Profitability

Analytics• Product, Market,

Channel Analysis

• Strategic Finance• Revenue Planning

and Forecasting• Expense Planning

& Control• Workforce

Planning• Capital and

Initiative Planning

Financial Performance and Strategy Management

Business Drivers

Close,Consolidate, and Report

Analyze &Optimize

Plan, Budgeting , and Forecasting

Performance Reporting and Scorecarding


Business Analytics



MARKETING

MARKETING

PRODUCTIONAND

DISTRIBUTION

PRODUCTIONAND

DISTRIBUTIONPURCHASIN

GPURCHASIN

G

TECHNOLOGY

IT/R&D

TECHNOLOGY

IT/R&D

CUSTOMER

SERVICE

CUSTOMER

SERVICE

MARKETING

MARKETING

SALESSALESSALESSALES

FINANCE

FINANCE

FINANCE

FINANCE



MARKETING

MARKETING

PRODUCTIONAND

DISTRIBUTION

PRODUCTIONAND

DISTRIBUTIONPURCHASIN

GPURCHASIN

G

HUMANRESOURCESHUMAN

RESOURCESHUMAN

RESOURCESHUMAN

RESOURCESTECHNOLOG

YIT/R&D

TECHNOLOGY

IT/R&D

CUSTOMER

SERVICE

CUSTOMER

SERVICE

SALESSALES

FINANCE

FINANCE

Planning and Analytics: A Distinctive IBM Advantage

IBM Advantage

Connect financial and operational planning

Address both high participation and deeply analytic planning

Over 75 performance blueprints to accelerate success

Advanced analytic value– Dashboarding/Visualization– Scenario Analytics– Statistics / Predictive Analytics

Business Drivers


Analyze &Optimize

Plan, Forecast, and Control


FINANCE


Business Analytics

Connect Financial and Operational Planning and Forecasting

IBM Advantage:

Common technology leverage with deep functional & industry

blueprints


Business Analytics

13


Business Analytics

Finance & IT ChallengesOverview Of Financial Performance & Strategy

Management Product Portfolio Enterprise Planning SolutionsProof PointsQ&ASummary

Agenda


Business Analytics

• Strategic Finance• Revenue Planning

and Forecasting• Expense Planning

& Control• Workforce

Planning• Capital and

Initiative Planning


IBM Cognos TM1 A patented 64-bit read-write in-memory OLAP engine that provides compact

data storage and exceptionally fast performance

Model design and data access that presents business information in familiar formats

Ease of use, thanks to a development environment that enables users to create sophisticated applications with no need for programming or traditional IT skills

An intuitive, flexible approach, which enables users to easily express complex, multi-dimensional business rules

Fuses Analysis & Planning together to provide greater accuracy

A component of Cognos Performance Management Platform

Business Drivers


Analyze &Optimize

Plan, Budgeting , and Forecasting



Business Analytics

Contribute• Familiar Web & Excel Deployment

• Rich Workflow

• Enterprise in scope with Application linkage

• Start small and expand enterprise wide

• Analysis Embedded in Contribution Process

Model• Centralized meta-data, data and

business rule definitions

• Owned by Office of Finance

• Support of Planning Best Practices

• Driver based Planning

• Rolling Forecasts

Analyze• Explore Performance Gaps

• Validate Corporate Drivers

• Define “What If” Scenarios

•Organizational, Product Family, Product/Channel Mix

•Test confidence levels of What If scenarios

• Validate Planning Assumptions

Evolving Customer Requirements


Business Analytics

IBM Cognos TM1 Analysis

A patented 64-bit read-write in-memory OLAP engine:

–Optimized for large data volumes–Instantaneous updates from streamed

data–Drill through to transaction systems

for greater detailed analysis Supports multi-dimensional analysis Advanced Sorting and Ranking Public and Personal Views Familiar Excel & Web interfaces


Business Analytics

IBM Cognos TM1 Advanced Analytics for Better Resource Allocation Decision-Making

Personal Scenarios

Contribution and Workflow

Easier, QuickerSolution Deployment


Business Analytics

Analyze – Scenario Modeling

Capabilities:Leverage SPSS predictive capabilities

Explore Performance Gaps

Validate Corporate Drivers

Define “What If” Scenarios– Organizational, Product Family,

Product/Channel Mix

Validate Planning Assumptions

Benefits: Ability to meet the dynamic needs

of the organization…..

Provide a fact based approach planning processes


Business Analytics

Model• Centralized meta-data, data and business rule definitions

• Owned by Office of Finance

• Support of Planning Best Practices

• Driver based Planning

• Rolling Forecasts

Analyze


Contribute

Model


Business Analytics

IBM Cognos TM1 Modeling

Expression based modeling environment to define future based planning and analysis assumptions

Integrated with HISTORICAL SPSS based forecasts

On demand interactive simulation to test business scenarios

Provides real time responsiveness for large and sophisticated models

Can be deployed through Microsoft Excel & Contributor for new planning and analysis solutions

An extension of the analysis process

Owned by finance/business user


Business Analytics

IBM Integrated Planning & Advanced Analytics Modeling

Capabilities: Fusion of Statistical & Judgment based forecasting

Sophisticated Statistical capabilities to:– Generate statistical base line forecasts derived from historical data – Validate current forecast assumptions and drivers– Identify inaccurate planning

Centralized meta-data, data and business rule definitions

Certified connectors to SAP BW & R3

Owned by Office of Finance

Support of Planning Best Practices– Statistical & Driver based Planning– Rolling Forecasts

Benefits: Ability to meet the dynamic needs of the organization

Flexible to meet the broad requirements of financial & operational planning solutions

Adapts to your business process

Single version of the truth for all planning processes


Business Analytics

Contribute• Familiar Web & Excel Deployment

• Rich Workflow

• Multiple Personalized Scenarios based on statistical base-line forecasts

• Enterprise in scope with Application linkage

• Start small and expand enterprise wide

• Analysis Embedded in Contribution Process

Analyze


Model


Business Analytics

Contribution

Capabilities: Familiar Web & Excel Deployment

Rich Workflow

Provides statistical base line personal scenarios

Application linkage–Start small and expand enterprise wide

A component of Cognos Performance Platform

Benefits: Timeframe-appropriate Plans

High Participation & Data Volumes

A Wider / Deeper View

Increased accuracy


Business Analytics

IBM Cognos TM1 Excel Based Contribution

TM1 Server Explorer for power users to maintain dimensions, cubes, rules, and integration

TM1 Excel to create rich planning and analysis solutions

TM1 Web to deploy TM1 based Excel applications across the organization

IBM Cognos 8 Business Intelligence for enterprise level analysis, scorecarding and financial & production reporting.


Business Analytics

Workflow Pick lists (driver execution) Undo/Redo feature End User Personalization (Multi

pane docking) Multiple Personalized Scenarios

based on statistical base-line forecasts

Personalized Hierarchies Color code data changes Charting Drill down Support

IBM Cognos TM1 Managed Contribution


Business Analytics

Finance & IT ChallengesOverview Of Financial Performance Management Product

Portfolio Enterprise Planning & Advanced Analytic SolutionsProof PointsQ&ASummary

Agenda


Business Analytics

ChallengeChallenge

Needed budgeting, forecasting data faster (within 3rd-4th working day of months versus 10th)

Solution required to pass internal security audits

SolutionSolution Consolidated KPIs (of 100K records)

in less than two minutes; unified views for management calls

Budgeting reduced to one month from three; updates in real-time to meet today’s turbulent economy

Complex financial analytics on data updated hourly

Comprehensive security, audit trails

Live on system within 6 weeks

Reduction in travel expenses

DHL Global Forwarding North America – Leading air, ocean freight

Business Drivers


Analyze &Optimize




Business Analytics

ChallengeChallenge

Data for project costs gathered from a myriad of personnel and business units for Rate Modeling

Spreadsheets unable to handle the data volumes on highly complex projects.

SolutionSolution Fast, accurate financial reporting

for projects and financial performance

An integrated budgeting process with what-if scenarios, forecasting, analysis, automated consolidation

Analysis of cost base, producing 800+ reports/month for budgeting/planning process

BAE Systems, Defense and Aerospace

Business Drivers


Analyze &Optimize




Business Analytics

ChallengeChallenge

Slow budgeting and performance management software – delayed data/slow processes

Data across 13 units from a multiplicity of systems

Difficult maintenance for thinly stretched IT Staff

SolutionSolution Faster, more simplified

budgeting process

Greater access to daily reports that directly affect profitability

Analytics to identify proper staffing levels and success of marketing campaigns

Improved inventory management

Blue Mountain: Ontario’s Largest Mountain Resort

Business Drivers


Analyze &Optimize




Business Analytics

Planning, Budgeting and Forecasting

FROM

Limited reach, low speed

Financial - only focus

Static, long horizons

Inconsistent data definition

Move Finance from a BackOffice process

TOHigh participation, high frequency

Driver-based, connected across finance and ops

Rolling, Dynamic horizon

Consistent data definitions

Value Integrator

Summary


Business Analytics

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g a infomart cognos tm1 planning budgeting-forecasting solution

Technology

memory olap

distribution

evolving customer

explore performance

business rule

ment marketing

expand enterprise

validate corporate