ibm finance forum johan lindstrom 2014

© 2014 IBM Corporation

IBMs Finance Transformation mot bättre

verksamhetsstyrning

Johan Lindstrom

CFO IBM Sverige

© 2014 IBM Corporation 2

Our Strategy is built around Transformation – our enterprise model

evolved based on Innovation and Global Integration

Reality of Global

Integration

Emergence of a New

Computing Model

Innovation and

Integration

Shift to higher value

business

Invest in Growth Markets

Global Integration

Invest in Innovation

Ongoing productivity and

margin improvement

International

Multi-national

Global Enterprise We saw Change Coming

… and Transformed IBM

Up to 1990s

2000 and beyond


14,000 Finance employees – 2x Competition

Decentralized organization

Disparate Financial Systems

High percent of time spent on Administrative tasks

Finance organization viewed as low value add

Lack of corporate-wide

data strategy

Inconsistent definitions

Unique measurements

Slow close process

Lack of data integrity and

transparency

No global process

leadership

Inefficient processes

Inability to implement best

practices across units

No measure of process

efficiency

Multiple data

centers/applications

Lack of integration

20 – 25 years old

!

Pre-1994, IBM Finance was mostly decentralized and a maze of

Financial Systems

Vital information was lost at every consolidation level


8 process teams formed

Driven by external benchmarks

Linked to IT initiatives

Process Enhancements

Key initiatives

Improve productivity by 50% within 24 months

Significantly increase data quality and availability

Objectives

Data Strategy

Common chart of accounts

Information warehouse

Functional productivity "Workbench"

Information Technology

Reduce data centers

Reduce key applications

Create/implement strategic,

integrated architecture

After defining the major objectives, IBM took a three prong approach

for its Finance Transformation


Changing Focus of Finance’s Job Requirements and Skills

Finance value is bifurcating Skills need to evolve from Core to

Consultative

Process Efficiency

•Deploy Global Processes

•Deliver Standardized Support

•Leverage Skills/Tools for Scale

•Accurate and Timely Data

Actionable Insight

•Headlights and Roadmaps

•Expertise in Growth Areas

•Business Intelligence/Analytics

•Align Resources for Rev. Growth

Value Proposition

Efficiency

Standards

Harmonization

Agility

Effectiveness

Predictive

Business Acumen

Actionable

Profitable Growth

Skills

Str

ate

gic

In

sig

ht

Quantitative Qualitative

Core Leadership

Consultative Analytical

Pulling

Reports

Performing

Ledger entries

Accounting

Principles

Reconciling

Data

Project

Management

Building Trust

Data

Modelling

Trend

Analysis Forecasting

Statistical

Techniques

Packaging &

Presenting

Negotiating

Problem

Solving

Listening

Business

Acumen

Partnership

Influencing Risk

Management

Invoicing

Financial

Concepts

Insight

Generation

Change

Management

Scenario

analysis

Business

Ethics

Persuasive

Communication

ibm finance forum johan lindstrom 2014

Data & Analytics