ibm canada: driving a future-ready enterprise

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  • 1 #SmarterBiz

    Driving a Future-Ready Enterprise

    Paulo MonteIBM Performance Management

  • 2 #SmarterBiz

    19Middle East and Africa 51

    Asia Pacific

    Central and Eastern Europe

    57Western Europe

    155

    Japan

    98

    North America

    102

    South America

    94

    CFO insights from the IBM Global C-suite Study: 576 CFO interviews from around the world

    Source: Question E--Participant Country

  • 3 #SmarterBiz

    CFOs rank second only to CEOs in collaborative C-suite influenceC-Suite collaboration partners

    Source: Question B6--Which of your C-suite peers do you work most closely with in support of the enterprise?

    78%

    65%

    24%

    CEO CFO All others

    Source: CFO insights from the Global C-Suite Study, IBM Institute for Business Value, 2014

    Finance has a role in bringing

    balance to the funding of

    innovation. We play a role in

    challenging ideas and calling

    out where they are not working.

    Finance applies discipline to the

    process

    CFO, Life Sciences, Unites States

  • 4 #SmarterBiz

    Technology is of ever-increasing importance to CFOsthe key moving forward is capturing its potential

    2010 2013

    Macro-economic factors

    Market factors

    Technology factors

    Regulatory concerns

    People skills

    Geopolitical factors

    Socio-economic factors

    Environmental issues

    Globalization

    We need to have the right

    information on time and give

    it the interpretation value.

    There is a need to frame

    information in a financial focus

    CFOIndustrial Products company, Mexico

    Source: Question E8--What are the most important external forces that will impact the enterprise over the next 3 to 5 years?Source: CFO insights from the Global C-Suite Study, IBM Institute for Business Value, 2014

    Most important external forces

  • 5 #SmarterBiz

    The gaps between importance and effectiveness have grown since 2005, demonstrating growing business pressures

    Largest gaps between importance and effectiveness

    58%

    19%

    46%

    34%

    42%

    37%

    27%33%37%

    205%increase

    35%increase

    Drive integration of information

    across the enterprise

    Develop talentin the financeorganization

    Optimize planning,budgeting and

    forecasting

    Execute Continuous

    finance process improvements

    Measure/monitorbusiness

    performance

    2005

    2013

    Source: Question CFO1--How important are each of the following areas of responsibility to your enterprise? CFO2: How effective is your organization in the following areas?Source: CFO insights from the Global C-Suite Study, IBM Institute for Business Value, 2014

  • 6 #SmarterBiz

    Finance organizations continue to rely on spreadsheets and intuition two-thirds of the time

    Intuition Spreadsheet ERP Analytic tool

    14% 52% 19% 15%

    50% 100%0%

    Capabilities/tools used to support Finance

    Source: Question CFO6--What capabilities / tools does your organization use for the following activities?Source: CFO insights from the Global C-Suite Study, IBM Institute for Business Value, 2014

    We need to ensure we

    deliver value through

    changing technology

    versus being a slave to

    our systems

    CFO, Insurance, United Kingdom

  • 7 #SmarterBiz

    Flashback: The Global CFO Study identified 4 Finance profiles, with one group, Value Integrators, outperforming the rest

    Low

    High

    HighLow

    Value Integrator

    DisciplinedOperator

    Scorekeeper

    ConstrainedAdvisor

    Finance Efficiency

    Enterprise-wide information standards

    Standard financial chart of accounts

    Common finance data definitions and data governance

    Standard/common finance processes

    Operational planning and forecasting capability

    Finance talent development

    Common planning platform

    Value IntegratorPerformance optimizationPredictive insightsEnterprise risk managementBusiness decision making

    Disciplined OperatorFinance operations focusedInformation provisionPerformance interpretation

    Constrained AdvisorAnalytics focusedSub-optimal executionFragmented data

    ScorekeeperData recordingControllershipMultiple versions of the truth

    Business Insight

    Finance efficiency and business insight

    Source: IBM Institute for Business Value, The Global CFO Study 2010, The Global C-suite Study 2013

  • 8 #SmarterBiz

    * Value Integrators are 30% and Performance Accelerators are 7% of the overall CFO population interviewed.

    High

    Business Insight

    High

    Finance Efficiency Value Integrator

    Value Integrator *

    Performance Accelerator

    Source: CFO insights from the Global C-Suite Study, IBM Institute for Business Value, 2014

    Flash forward: Value Integrators are pushing the boundaries of efficiency and insighta subset are emerging as Performance Accelerators

    Excel at:. Better by:.

    Proftability/Economic Analysis 1.17x

    Pricing effectively 1.80x

    Demand Planning/Forecasting 2.28x

    Product/Service Development 2.36x

    M&A Success 3.23x

    +38%

    +70%

  • 9 #SmarterBiz

    IBM is the ultimate partner to drive a future-ready enterprise

    Valu

    e

    Analytic Data Management

    Maturity

    Aligninformation

    Optimizeoutcomes

    Best Practices

    Strategy Aligned Organization

    Analyzepatterns

    Span Finance and Operations

    Process Automation

    Enterprise-wideTransformation

    ContinuousSteering

    Managing multi-dimensional performance information

    Financial Consolidation and Close

    Budgeting

    Incentive CompensationManagement

    Span Financial & Operations

    Leading & External Indicators

    Driver-based modeling

    Scenario Analytics

    Rolling Forecasts

    Metrics and Scorecarding

    Strategy Management

    Product and CustomerProfitability

    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

    Accelerate& Link

    EngageFrontlines

    Value Integrators Performance Accelerators

  • 10 #SmarterBiz

    Manufacturing

    Sales

    Marketing

    Finance

    Logistics

    Productdevelopment

    HR

    Scorecarding and strategy management

    Forecasting and

    corrective actions

    Business and Op planning

    Performance reporting

    Budgeting

    Strategic planning

    Enterprise Span - System of engagement

    Cloud, Scale &

    Performance

    Advanced Analytics

  • 11 #SmarterBiz

    Amazon: Financial Planning & AnalysisReal-Time Integrated Financial Modeling

    Challenge

    Lack of Corporate Insight into Financial Plans

    Solution

    Capital Expenditure

    Headcount & Employee Expense

    Revenue / COGS

    P&L and Balance Sheet Forecast

    Hourly Variance Reporting with Actuals

    Results

    TM1 underpins all of Amazons critical Financial Processes on behalf of the Office of the CFO on a 24 x7 basis providing Weekly Forecast Routines, Month End Close, and Annual Operating Plans -Wade Diamanti, Director FP&A

    Amazon, described by Forbes as the Worlds most valuable Brand, is the largest internet retailer in the United States with $90B in annual revenue. The company also produces consumer electronics and is a major provider of Cloud Computing Infrastructure and Services.

    Challenge

    Solution

    Solution Benefit Statement

  • 12 #SmarterBiz

    McCormick protects profit with detailed understanding of customer value and uncertain prices

    Challenge

    Significantly reduce the profit at risk due to volatile commodity input prices

    Solution

    Collect and analyze sales plan data by customer and across over 30,000 SKUs

    Evaluate the resulting profit contribution of product inputin the bill of material

    Results

    Diagnosed profit improvement moves ahead of time; commodity price increases can be passed on to consumersor renegotiated with industrial customers

    Conducted value engineering with operations to reformulate flavors using commodities from different regions and suppliers

    TM1 and Cognos helped McCormick record $56 million in cost savings from their Comprehensive and Continuous Improvement program

    McCormick is a global leader in flavor. With more than $4.0 billion in annual sales, the company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industryretail outlets, food manufacturers and food service businesses in more than 110 countries.

    CHALLENGE

    SOLUTION

    RESULTS

  • 13 #SmarterBiz

  • 14 #SmarterBiz

  • 15 #SmarterBiz

    IBM Corporation 2014

    IBM, the IBM logo, and ibm.com 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 U.S. 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