ibm: driving a mobile-ready enterprise

1 #SmarterEnterprise

Driving a Future-Ready Enterprise

Chad Peruba,

Business Unit Executive, Performance Management Strategy

IBM Business Analytics

[email protected]

mailto:[email protected]


New dynamics put new pressures on CFOs

In the U.S., non-financial companies have

a record $1.45 trillion in cash (Forbes)

“...growth and job creation are still too

weak. New risks are arising while several

old risks remain.” (IMF)

75% of security breaches are driven by

financial motives (Verizon)

Business model innovation

Uncertainty and volatilityRegulatory environment

• Changing nature of transactions

(e.g., mobile)

• Partnering for speed

• Growth in emerging markets

• Cash-rich balance sheets

• Uneven economic recovery

• Growing shareholder expectations

• Changes to currency and financial

institutions

• Globalization and demographic shifts

• Higher levels of transparency

• New cybersecurity / information

security regulations

• Focus on corporate governance


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


Enterprises want to do better in five key areas


Transform the

system of

engagement

Span finance and

operations, risk &

performance management

Infuse scenario

and predictive

intelligence

Guided business processes, mobile, collaboration

Financial & Operational Performance Management

Narrative Reporting & Disclosure Management

Sales Performance Management

Governance, Risk and Compliance

Predictive intelligence and scenario analytics

Three analytics imperatives drive a future-ready enterprise

Big data platform


Spanning the Enterprise

SalesMarketing FinanceOperations HR

• Campaign

scorecards

• Promotion plans

• Customer and

product

profitability

• Revenue plans

• Sales dashboards

• Sales forecasts

• Incentive

compensation

• Quota plans

• Territories

• Sales channels

• Enterprise

scorecards

• Strategic

financial plans

• Profit and loss

• Balance sheets

• Cash flow

• Workforce KPIs

• Headcount

plans

• Salary and

compensation

• Staffing plans

• Training and

development

• Operational KPIs

• Strategy and

operations plans

• Capacity and

inventory plans

• Product allocation

• New products

IBM FOPM Customers use the solution in all areas of their organization…not just finance.

Strategy and activity driver-aligned organization


Leading customers move beyond Finance

Top Planning Areas From A Survey of Top 75 Best-Practice IBM Customers

Human Resources

Sales Planning

Production & Distribution

Marketing

Other

Beyond

Finance

67%

Finance*

33%

Financial Statements

Expense Planning

Capital & Initiative

*220 Planning Applications across 75 companies.

Every company has at least one Finance implementation


IBM Big Data & Analytics Performance Blueprints – pre-defined solutions and

accelerators – to speed up automation and best-practices

Pre-defined solution building blocks

Pre-defined data, process, and policy models

Share best-practices

Increase project success rate

Accelerate time-to-value

Drive better outcomes

Increase plan & forecast reliability

Optimize resource allocations

Improve decision quality

IBM Big Data & Analytics Performance Blueprints

IntegratedFinancial Planning

& Forecasting

ExpensePlanning &

Control

CapitalExpenditure

Planning

FINANCEFINANCE

OPERATIONS,MARKETING,

ETC.

DepreciationExpenses

Ca

p E

x

Re

ve

nu

e P

lan

Ma

rke

t D

em

an

dProduct

Profitability Analytics

Other Operating Expenses

Workforce& CompensationExpenses

HUMANRESOURCES

Workforce Planning

SalesPlanning &Forecasting

SALES

Workforce driver


Latest releases, 4Q2104

• Expense Planning and Control. Create driver-based expense

plans that align with corporate objectives using an intuitive and

integrated planning process that resolves the challenges of

lengthy expense planning cycles and disconnected plans.

• Capital Expenditure Planning. Manage capital project requests,

their justification and the capital request approval process.

• Workforce Planning. Gain forward-looking visibility into

workforce decisions at both the divisional and company levels and

use headcount projections as drivers in other planning processes.

• Sales Planning and Forecasting. Manage your organization’s

revenues, archive historical data and projections for

reference/analysis and integrate the sales planning process into

supply chain forecasts, headcount projections, sales

compensation planning, and integrated financials.

• Product Profitability Analytics. Uncover product level

profitability in the context of operational business decisions,

moving profitability management from your CFO's office to the

front lines where decisions affecting profitability are really made


What is predictive analytics?

Predictive analytics helps connect

data to effective action by drawing

reliable conclusions about current

conditions and future events.

—Gareth Herschel, research

director,

Gartner Group

I do not know what I may appear to the world, but

to myself I seem to have been only like a boy

playing on the sea-shore, and diverting myself in

now and then finding a smoother pebble or a

prettier shell than ordinary, whilst the great ocean

of truth lay all undiscovered before me.

—Sir Isaac Newton


The Power of Predictive

• Modeling and quantifying the business

• Scaling the analytics to include small subsets of the business to the entire organization

• Providing an interactive user experience to manage data and scenarios

• Enabling scope to cover almost all operational and financial aspects of the business

• Direct integration to predictive intelligence modeling for statistical impact

IBM offers best-in-class predictive and big data analytics

Likelihood of churn

Credit worthiness

Future lifetime value

Consumer data

Transactionhistory

Social mediahistory

Transactionhistory

Profitability analysis on retention,

performance and patterns


Need to tap into more knowledge

REDEFINING YOUR SYSTEM OF ENGAGEMENT

Need to make quicker, better

informed decisions

Out of the office shouldn’t mean

out of the loop

Too few peopleengaged too infrequently

Decision makinglatency

Workers tetheredto their laptop


Today’s System of Engagement

Individual Phone Calls

Excel – AnalysisGroup Email

Delays in Response

More Emails

More Delays

More Delays

More CallsTake Action (Finally) More

Delays

Collaboration?


IBM Concert Transforms the Way You Work

COLLABORATIVEUser Experience

TASK LISTSPersonalized and Prioritized

METRICSFocus On What Is Important

ALERTSInstant Notifications

MOBILESupport for iOS and

AndroidProfitability

Modeling and Optimization

Scorecarding and Strategy Management

Planning Budgeting and

Forecasting

Management and

PerformanceReporting

24


Three imperatives for improving management outcomes

Data

collection

New business

modeling

Profitability

and pricing

Performance

scorecarding

Error

checking

Decrease effort Increase focus

Process

monitoring

Increase in value from analytic initiatives

1

2

Span The Enterprise

3 The Power of Predtive

Transform the system

of engagement


IBM Watson Analytics – consumable predictive intelligenceInfuse scenario

and predictive

intelligence


Business value assessment

Align business capabilities with business strategy, and recommend a road map for improved value.

Solution workshop

Lay out the path ahead, from immediate improvements to a common future vision.

Proof of concept

Prove the path forward, starting small and scaling up.

1

Visioning workshop

Whether via web seminar, at your facility or in an IBM solution center, we can begin charting a course.

2

3

4

IBM Big Data & Analytics

Performance Blueprints

Take proven next steps


Next Steps

• Meet me in the Social Café to continue the conversation

• Find more information about Performance Management at https://ibm.biz/BdFzuE

• Please join us at Insight 2014, the conference for Big Data and Analytics, at

Mandalay Bay in Las Vegas, October 26 – 30. More information is available in

the Social Café or you can visit https://ibm.com/ibminsight

https://ibm.biz/BdFzuE

https://ibm.com/ibminsight

Join us at IBM Insight 2014.

the largest big data in the world

sessions and innovative

Streams on Business Analytics,

Enterprise Content Management

And Information Management

found

networking

opportunities

invaluable

business- and industry-

focused sessions featuring

top experts from around

the world

technical sessions,

hands- on labs and

developer activities that

include cloud, mobile,

security, social, Watson

and more

exhibitors at the EXPO

Including showcases

from 250+ Business Partners

in training, certification, hands-on labs,

networking, executive one-on-one meetings,

expert talks and food and entertainment

client and

Business Partner

speakers from

across all industries

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© Copyright IBM Corporation 2014.

attendees at the one-day

Business Partner Summit

Attend IBM Insight to learn how big data and

analytics can help you outperform your peers.

With IBM business and technical solutions for

big data and analytics, you can turn cloud,

mobile and social into competitive advantage.

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http://www-01.ibm.com/software/events/insight/