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IBM Global Business Services Finance Transformation Workbench Financial Management According to the recent 2008 IBM Global CFO Study, one-third of CFOs and senior finance executives stated they are ineffec- tive at measuring and monitoring business performance. The study of 1,200 CFOs suggests that current financial manage- ment models lack the effectiveness and flexibility to accommodate the needs of global enterprises from a Business Performance Analysis and Risk Management perspective. The IBM Finance Transformation Workbench is designed to accelerate the analysis of your organization’s finance function and the development of clear and concise finance transformation opportuni- ties, supported by the application of IBM’s world-class finance function solution offer- ings. The FT Workbench integrates IBM’s leading thinking and intellectual property (IP) on finance transformation into one ana- lytical tool that can provide the following benefits for your enterprise: Addresses the complete CFO agenda Applies world-class finance function principles to root cause analysis and resolution Identifies a roadmap of initiatives, appro- priately staged and prioritized, for a change program to improve finance effectiveness Produces a full business case to support the change program How can this help you? It will assist your enterprise on the path to becoming an Integrated Finance Organization (IFO). According to the IBM 2008 CFO Study, IFOs represent one in seven of the organizations surveyed that have developed mature capabilities in Business Performance Analysis and Risk Management. In fact, the IFOs in the study had revenue growth rates nearly double that of industry peers and can be more prepared for risk because they are more aware of risk. IFOs have more mature finance capabilities addressed by four commonalities: 1) globally mandated standards, 2) stan- dard common processes, 3) a company- wide standard chart of accounts and 4) common data definitions. Further, these organizations have made significant progress consolidating onto a common financial application platform, resulting in fewer financial data reconciliation issues and increased confidence in reported numbers. Highlights According to the 2008 IBM Global CFO Study, one-third of CFOs and senior finance executives stated that they are ineffective at measuring and monitoring business performance. The FT Workbench is designed to accelerate the analysis of a client’s finance function and the development of clear and con- cise finance transformation opportunities. FT Workbench embodies a method for conducting func- tional actionable analysis by using a structured framework and approach to generate valu- able and actionable solutions. By investigating the organiza- tional responsibilities and IT application portfolio in relation to business components, solutions to shortfalls such as duplica- tions, over-extensions, gaps and deficiencies can be identified.

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Page 1: Finance Transformation Workbench - IBM€¦ · Finance Transformation Workbench Financial Management According to the recent 2008 IBM Global CFO Study, one-third of CFOs and senior

IBM Global Business Services

Finance Transformation Workbench

Financial Management

According to the recent 2008 IBM GlobalCFO Study, one-third of CFOs and seniorfinance executives stated they are ineffec-tive at measuring and monitoring businessperformance. The study of 1,200 CFOssuggests that current financial manage-ment models lack the effectiveness andflexibility to accommodate the needs ofglobal enterprises from a BusinessPerformance Analysis and RiskManagement perspective.

The IBM Finance TransformationWorkbench is designed to accelerate theanalysis of your organization’s financefunction and the development of clear andconcise finance transformation opportuni-ties, supported by the application of IBM’sworld-class finance function solution offer-ings. The FT Workbench integrates IBM’sleading thinking and intellectual property(IP) on finance transformation into one ana-lytical tool that can provide the followingbenefits for your enterprise:

● Addresses the complete CFO agenda

● Applies world-class finance function principles to root cause analysis and resolution

● Identifies a roadmap of initiatives, appro-priately staged and prioritized, for achange program to improve financeeffectiveness

● Produces a full business case to supportthe change program

How can this help you? It will assist yourenterprise on the path to becoming anIntegrated Finance Organization (IFO).According to the IBM 2008 CFO Study,IFOs represent one in seven of the organizations surveyed that have developed mature capabilities in Business Performance Analysis and RiskManagement. In fact, the IFOs in the studyhad revenue growth rates nearly doublethat of industry peers and can be moreprepared for risk because they are moreaware of risk.

IFOs have more mature finance capabilitiesaddressed by four commonalities: 1) globally mandated standards, 2) stan-dard common processes, 3) a company-wide standard chart of accounts and 4) common data definitions. Further, theseorganizations have made significantprogress consolidating onto a commonfinancial application platform, resulting infewer financial data reconciliation issuesand increased confidence in reported numbers.

Highlights

■ According to the 2008

IBM Global CFO Study, one-third

of CFOs and senior finance

executives stated that they are

ineffective at measuring and

monitoring business

performance.

■ The FT Workbench is designed

to accelerate the analysis of a

client’s finance function and the

development of clear and con-

cise finance transformation

opportunities.

■ FT Workbench embodies a

method for conducting func-

tional actionable analysis by

using a structured framework

and approach to generate valu-

able and actionable solutions.

■ By investigating the organiza-

tional responsibilities and IT

application portfolio in relation to

business components, solutions

to shortfalls such as duplica-

tions, over-extensions, gaps and

deficiencies can be identified.

Page 2: Finance Transformation Workbench - IBM€¦ · Finance Transformation Workbench Financial Management According to the recent 2008 IBM Global CFO Study, one-third of CFOs and senior

Improve finance effectiveness

The FT Workbench is the latestIBM tool developed that can be used to help you transform your financeorganization to generate value. It isdesigned to help CFOs and seniorfinance executives determine how toimprove finance’s efficacy, by increasingthe level of capability and maturity. Youneed to have transparent and standard-ized finance processes and informationto make fact-based decisions, reducefinance costs, and effectively partnerwith business units. This can help toenhance growth opportunities throughintegrated reporting, analytical and riskmanagement capabilities.

IBM Financial Management ConsultingServices developed the FT Workbenchas a diagnostic and decision supporttool that can help you determine whatneeds to be done and how to get there more quickly and for less cost.Ultimately, this helps a company reactmore nimbly to fast changing macroand micro business conditions.

The FT Workbench can identify short-falls throughout finance, people,process and technology. This includesduplications, over-extensions, gaps anddeficiencies that prevent your enterprisefrom operating optimally and identifyingvaluable business opportunities. Usedin conjunction with IBM consulting serv-ices (which can cut the cost of anengagement by up to one-third), thetool starts with a high-level view of all of

the department’s activities, such asbudgeting, reporting and closing. It thenbreaks down each one into tasks thatcan be benchmarked against bestpractices.

Key finance function issues

The IBM Finance TransformationWorkbench is one of many toolsdesigned to help IBM FinancialManagement Services more effectivelyand efficiently advise senior financeexecutives on how to improve financefunctions and identify specific actionplans to realize those improvements.Realize the following benefits with theFT Workbench:

● Achieve scalability throughout infor-mation channels, tools, templatesand other assets to properly identifyand characterize underperformingfinance functions to determine rootcause and potential solutions.

● Learn how to assess your financeorganization’s performance analysiscapabilities and determine how wellyou are able to help with decisionsupport, and better partner with andhelp manage, the line of businessfinancial performance.

● Develop a clear roadmap for financefunction transformation/change/improvement strategy.

● Discover ways to streamline andautomate your data gathering andmanagement processes.

● Evaluate your suboptimal financefunctions and more efficiently manageand update your assets and methodsconsistently across the board. Thisincludes financial control/risk man-agement issues and regulatory andstatutory compliance challenges(SOX, SEC reporting and IFRS).

● Capture multiple views (process, met-rics, components and resource) with“distributed” documents to link themethod with upstream and down-stream analysis.

The FT Workbench provides an inte-grated and seamless view of varioussolution models (processes, metrics,resources, organization structure, skills,enabling technology) and financial data.Using reliable and time-tested financialtools such as ROI, NPV and paybackperiod, powerful and compelling busi-ness cases are developed.

Past, present and future

The CFO’s role has expanded dramati-cally over the past 7 - 10 years.Practically speaking, given the rapidityand degree of change and newdemands upon finance, most have hadlittle choice but to address issues withpoint solutions and quick fixes. Formany, this has resulted in greater com-plexity, disjointed and unreliable/unrecognizable data and high cost offinance. It is very likely the future paceof change will continue to increasedemands upon finance. Current chal-lenges, such as the financial markets

Page 3: Finance Transformation Workbench - IBM€¦ · Finance Transformation Workbench Financial Management According to the recent 2008 IBM Global CFO Study, one-third of CFOs and senior

crisis, increased level of risk, increasedfinancial scrutiny, IFRS, and a host ofother factors, will likely lead to new andunforeseen challenges as these con-stant demands are approached withquick fixes. You need to be able tovisualize a clear evolution for financethat is connected and optimized, con-sidering what is being done today andwhat is anticipated for the future.

IBM’s FM consultants use the FTWorkbench to bring the finance ecosys-tem into clear view. It resolves thosehistorical challenges by putting thewhole ecosystem together into one flex-ible and highly customizable computermodel. It then provides the tools toanalyze the best ways to increasefinance’s level of maturity and capability.

Conclusion

“CFOs need quick access to the truth;they need process and data common-ality through enterprise standards toachieve higher levels of efficacy,” saidWilliam Fuessler, Global FinancialManagement Leader, IBM GlobalBusiness Services. “The delay in under-standing the true state of the businesscan mean the difference between prof-itability and lost growth potential. TheFinance Transformation Workbench tool

is yet another example of IBM’s high-value services proposition, which auto-mates labor-based process and usesour intellectual property to createrepeatable software-like assets.”

Why IBM

The FT Workbench tool is designed toaccelerate the analysis of your financefunction and development of clear andconcise finance transformation opportu-nities, supported by the application ofIBM’s world-class finance function solutions. The FT Workbench is anapplication that integrates IBM’s leading thinking and IP on FinanceTransformation into one analytical tool;applies world class finance functionprinciples to root cause analysis andresolution; and is designed to addressthe CFO agenda and help improveeffectiveness of the finance function,especially as you move towardsbecoming an Integrated FinanceOrganization.

With more than 4,100 financial man-agement resources located across theglobe, IBM has a strong record of serv-ing as a trusted advisor to CFOs andfinance leaders. Our dedicated teamsof research and thought leadership pro-fessionals provide insights into theissues facing finance professionals,

enabling us to offer deep finance func-tion expertise coupled with effectivetechnology implementation and integra-tion capability.

We offer proven finance transformationtools and experience, such as SAP,Oracle and Cognos. IBM FinancialManagement Consulting Servicesbrings strong partnerships; we are thenumber one SAP consulting providerand a leading integrator ofOracle/Hyperion applications. Ourrecent acquisition of Cognos has addedover 200 experienced Cognos practi-tioners to our financial managementpractice.

We bring experienced IBM financeexecutives to meet with clients, includ-ing former CFOs, controllers and CIOs.Our consultants have worked with 75%of the global Fortune 50 and 80% ofthe FT 50. We frequently leverage ourIBM CFO and his team to share theirfinance transformation story and les-sons learned.

For More Information

To learn more about IBM GlobalBusiness Services, contact yourIBM sales representative, or visit:

ibm.com/gbs/finmgmt

Page 4: Finance Transformation Workbench - IBM€¦ · Finance Transformation Workbench Financial Management According to the recent 2008 IBM Global CFO Study, one-third of CFOs and senior

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