© 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
© 2013 IBM Corporation3
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.
© 2013 IBM Corporation4
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.
© 2013 IBM Corporation5
� 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
© 2013 IBM Corporation6
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.
© 2013 IBM Corporation7
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
© 2013 IBM Corporation8
Agenda
Automate analytic processes
Drive new insight and agility
Advance analytic maturity
© 2013 IBM Corporation9
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
© 2013 IBM Corporation10
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
© 2013 IBM Corporation11
Agenda
Automate analytic processes
Drive new insight and agility
Advance analytic maturity
© 2013 IBM Corporation12
Drive new insight and agility
© 2013 IBM Corporation13
Drive new insight and agility
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
© 2013 IBM Corporation14
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
© 2013 IBM Corporation15
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
© 2013 IBM Corporation16
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
© 2013 IBM Corporation17
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
© 2013 IBM Corporation18
Demo
© 2013 IBM Corporation19
[insert “Final Planning Demo.avi” to cover this entire slide]
© 2013 IBM Corporation20
[insert “Final ICM Demo.avi” to cover this entire slide]
© 2013 IBM Corporation21
[insert “Final CDM Demo.avi” to cover this entire slide]
© 2013 IBM Corporation22
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
© 2013 IBM Corporation23
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.
© 2013 IBM Corporation24
� 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.
© 2013 IBM Corporation25
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
Performance management
Predictive analytics
Risk management
© 2013 IBM Corporation26
Agenda
Automate analytic processes
Drive new insight and agility
Advance analytic maturity
© 2013 IBM Corporation27
Performance Management Maturity Model
Valu
e
Analytic data management
Maturity
Aligninformation
Optimizeoutcomes
Best practices
Strategy-aligned organization
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
© 2013 IBM Corporation28
Performance Management Maturity Model
Valu
e
Analytic data management
Maturity
Aligninformation
Optimizeoutcomes
Best practices
Strategy-aligned organization
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
© 2013 IBM Corporation29
Р еР еР еР е чччч
ы юы юы юы ю ееее -IBM
© 2013 IBM Corporation30
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
© 2013 IBM Corporation31
Closing the skills gap with IBM and more than 200 universities worldwide
© 2013 IBM Corporation32
IBM business analytics: comprehensive capabilities
Performance management
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
© 2013 IBM Corporation33
Next steps
Business Analytics Experience Workshop
Business simulation
Decision making
Interactive workshop
© 2013 IBM Corporation34
Evaluateyour financeprocesses
The best partner for your analytics journey
Joinour analyticsexperienceworkshops
Meetyour local
IBM business analytics team
© 2013 IBM Corporation35 © 2013 IBM Corporation35
© 2013 IBM Corporation36
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.
• Other company, product, and service names may be trademarks or service marks of others.
• References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.
Trademarks and notes