utilizing data analytics to improve performance

Utilizing Data Analytics to

Improve Performance

June 15, 2016

Sponsored by:

Kevin Surovcik

Al Bruce

www.netsuite.com

© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk

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Moderator

Steve Shannon

Director

Partnership Marketing

IMA

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Featured Presenter

Al Bruce Cloud Solutions and Enabling

Technologies SME Senior Manager, Business Advisory Services

Grant Thornton

7


Featured Presenter

Kevin Surovcik NetSuite and Enabling Technologies

Practice Lead Principal, Business Advisory Services

Grant Thornton

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Learning Objectives

Upon completing this webinar, you will be able to:

1. Understand how to better assess and measure budget

tradeoffs related to investments

2. Recognize how data patterns can be used to predict

and guide performance improvements

3. Explain how data analytics can be used to assist your

organization with its bottom-line financial performance


Performance Improvement

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Lets start with the quantity of data

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2009

0.8 ZB

The digital universe – 2009 through

2020

Growing by a factor of

2020

35 ZB

A zettabyte (ZB) is a really big number


The Source of data

12

Streaming from daily life


"There is a big data revolution, but it is

not the quantity of data that is

revolutionary. The big data revolution is

that now we can do something with the

data."

Why do analytics matter?

13

Gary King,

Director of Harvard's Institute for Quantitative Social Science (IQSS)


14

Polling Question 1

a) Chief Financial Officer

b) Chief Information Officer

c) Chief Operating Officer

d) Not yet defined

e) Other

Who is responsible for your company's BI / business analytics?


Polling Question 1 Results (Placeholder)

15


Purpose of the Finance Function

16

Measure financial health and allocate capital to meet strategic objectives

Interesting questions:

1. How do changes in the leading indicators

impact the lagging indicators?

2. How do we align the business functions

to maximize our objective?

3. What are the constraints in the business?

What are their economic values?

4. How will capital projects impact the

financials given those constraints and

other capital projects?

5. What is the best we can do under any

given set of circumstances?

Financial accounting:

• Income statement

• Balance sheet

• Cash flow statement financial health

lagging indicators

Management accounting:

• Fixed costs

• Variables costs

• Contribution margin capital allocation

leading indicators


71% of CFOs have seen their overall level of

strategic influence increase over the past years

New Role of Finance

17

Source: 2014 CGMA Survey

Reporting Insight and Action

Control Enabling Innovation

Cash Management Execution

Efficiency Agility

Data Gathering Risk Management


Sensing and Responding

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The basis of competition in this dynamic environment

Sense

Analyze

Respond

Human factor dominant:

decisive action

• Mid-course corrections

New "battlefield " drivers

• Mean time To detect

• Mean time To respond

Growing capability

and ubiquity

• transactions and

operational data

Technology rich and capability

constrained

• Meaningful and useful

information related to event,

cause, impact and options


Flight Analogy: Knowledge and Technology

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DALLAS

MEXICO

CITY

1◦

LONDON


Business Analytics Barriers

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Takes too long

Labor-intensive

Data integrity/accuracy/reliability issues

Calculations are difficult to audit

Limited communication/collaboration

Functionality doesn't meet enough of my needs

Difficult to make changes

Limited ownership/accountability

End result is often already out of date

Not integrated with performance reporting system

All other responses

BPM Pulse Survey Results, December

2013


Analytics Definition

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Making data timely and actionable

• Data is

historical

• Decisions

are about

the future

• Leverage

knowledge

and

technology to

bridge the

gap


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Polling Question 2

a) Descriptive

b) Descriptive and diagnostic

c) Descriptive, diagnostic and predictive

d) Descriptive, diagnostic, predictive and prescriptive

e) None

What types of analytics are you using to support decision- making in the business?



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The Process of Using Data Analytics..

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Analytics can help you… • Continuous, iterative exploration

and an investigation of past business performance to gain insight and drive business planning for the future.


Analytics can help you…

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Analytics can help you… • Validate trends

• Pinpoint root causes of issues

• Comprehensively view performance • Illustrate future possibilities


Results can be used to…

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• Streamline operations

• Increase cost efficiency

• Optimize financial margins

• Forecast performance

• Improve budgeting

• Enhance mission

effectiveness


Prescriptive Difference

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The enterprise: all financial, operational, regulatory constraints

Forward-looking content:

1. Collaboration + trust in cross-functional planning

2. Optimal course of action defined in planning cycle

3. Fast and low cost-of-ownership (agility)


So where to start?

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Close

Books

Consolidate

Financials

Report

Results

Analyze

Close FP&A

Efficiently

Repeat

Plan

and Model

Source: Adaptive Insights

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Information Everywhere

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Source: Adaptive Insights


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Polling Question 3

a) The cost of incorporating advanced analytics

technologies into current business processes

b) Achieving key stakeholder buy-in

c) Time spent to implement technology

d) Change management efforts within the organization

e) Generating adequate ROI

f) None of the above / Other

What is your biggest business concern with incorporating analytics into your planning cycles?



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Leading Strategies

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• Collaboration and Buy-in

• Flexible Framework

• Invest in Technology

• Data Governance &

Integration

• Hierarches Drive Analytics

• Single Repository

• Establish Performance

Metrics

data analytics


Data Analytics = Humans, not just IT

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Leadership must champion

integrated decision-making through

stakeholder representation, inviting

a variety of perspectives.


Elevate Engagement

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A cooperative

arrangement in which

two or more parties

(which may or may

not have a previous

relationship) work

jointly towards a

common goal.

"Few things in life are less efficient than a group of people trying to write a sentence. The advantage of this

method is that you end up with something for which you will not be personally blamed."

Scott Adams

"Coming together is a beginning, staying together is

progress, and working together is success."

Henry Ford

Need to share data and collaborate with teams across the enterprise

HR

Finance

Sales

Marketing


Creating a Framework for Flexibility

35


Invest in Technology

36

Software Licenses

9%

Hardware

IT Personnel

Maintenance

Training

Customization &

Implementation

68% Subscription Fee

Customization

Implementation

& Training

On-Premise Software Cloud Computing

43%

26%

14%

7%

1%

32% T

C

O

T

C

O

Source: Yankee Group DecisionNote Technology Analysis

“Customers can spend up to four times the cost of their

software license per year to own and manage their

applications.”

– Gartner

“The End of Software”

“Cloud computing yields substantial economies of scale

and skill, and lowers total cost of ownership (TCO).”

– The Hurwitz Group

“The Compelling TCO Case for Cloud Computing”

77% less than

On-Premise


37

Polling Question 4

a) Not enough data

b) No trust in the data

c) No adequate reporting system in place

d) Lack of understanding

e) None of above / other

What is your biggest technical concern with incorporating advanced analytics into your planning cycles?



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Data Governance & Integration

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Data governance focuses on terminology

Customers

Financials

People

Product

Suppliers

Data Governance:

Provides the controls for applications, dimensions, and processes to support alignment of

disparate systems through understanding business

TERMINOLOGY

Organization and

Processes


Hierarchies Drive Analytics

40

Glue for business harmony

Role and function of data governance

• Merger and Acquisition

• ERP consolidation

• Financial and Operational Alignment

• Chart of Accounts management

Govern

Rationalize

Sh

are

C

on

tro

ls

ERP

• OBI

Financials

Analytics

CRM

(e.g., NetSuite)

.

EPM

• Planning

• Consolidation

• Profitability

EDW

• Subject Area

Marts

• Source Marts

Hierarchy

Structure

Data integration strategy

• Owned and driven by the business, with IT

controls

• Connecting capability of ERP transactions to

EPM models (profitability, planning, consolidation)


Centralized Visibility

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B u d g e t

• Report

• Share

• Drill-down

• Analyze

• Refresh

• Compare

• Decide

• Take Action

Actuals

Forecast

R e p o r t i n g

Management

F i n a n c i a l

Centralized

Visibility &

Insights

Common Visibility


Establish Performance Metrics

42

Nimbleness &

Improved

Decisions

Reports Plans

KPIs

Sales

Plans

Sales

Ops

Finance

Finance

Plans


43

Case Study #1

Grant Thornton Solutions • Evaluated current business systems and processes; Provide direction on future state Analytics

• Worked closely with implementation teams ERP and HRIS. Coordinated data requirements and sourcing strategy for analytics solution

• Integrated data from ERP, customer and proposal database, various third party, home grown systems to provide broad and thorough data warehouse

• Leveraged analytics features for forecasting and planning implementation

Benefits and Values Achieved • Implemented Projects Analytics and Financials Analytics for better visibility

• Reduced time and resources for creating reports with automated methods for report generation

• Secured more time for improved analysis and insight

• Created integrated and comprehensive framework

• Leading global clinical research organization providing full range of early- to late-stage clinical development services

• Situation: Due to tremendous growth, business model began to overwhelm its technologies; Burdened by overly manual processes and cumbersome spreadsheets to manage the business

Company Overview & Situation

Leading Global Clinical Research Organization


44

Case Study #2 US-based Healthcare and Pharmaceutical Company

Grant Thornton Solutions

• Enabled the management of a global, a corporate, and multiple subsidiary chart of accounts across several ERP's

• Provided integration of mapping logic support local data loading and analytics requirements

• Automated integration for Budgeting, Planning, and Forecasting System

• Implemented various work streams: – CoA Deployment

– High Availability

– Corporate Planning

– Governance

Benefits and Values Achieved • Enhanced effectiveness of financial analysis, reporting and decision-making by mapping current subsidiaries and future

acquisitions into a single aligned Corporate CoA utilizing Grant Thornton Accelerator

• Provided comprehensive dimensional master for Corporate Planning, Budgeting, and Forecasting

• Ensured data consistency between corporate planning and accounting

• Resolved reconciliations differences with dimensional mismatches

• Enabled integration of business dimensions into financial DW initiative

• Provided “Acquisition Playbook” for integrating financials of acquired companies through common definition and mapping to subsidiary specific dimensional requirements

• Created rapid and seamless integration of CoA and financial analytics for management, regulatory, and tax-related reporting

• US-based diversified healthcare company finding solutions

• Situation: Selected a system integration and acquisition growth.

Company Overview & Situation


Final Comments:

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• Invest in technology (e.g., data warehouse and analytical

tools) to capture desired data and create correlations.

• Establish performance metrics beyond financial measures

and agree on mission-driven indicators. …Customer

Safety, Customer retention, Mission and Event Outcomes

• Acknowledge the human element and the importance of

effective change management.

• Build collaboration into the process in order to view the

organization as a whole rather than as a collection of

departments and interests.

Prepare your organization for optimal

results:


Final Comments:

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• Develop or acquire personnel to bring data analytics and

business intelligence skills into your organization.

• Commit to act on the trends and insights discovered

through data analytics

• Create a cross-functional steering committee that can set

aside other biases in order to act on the analysis.

• Dedicate organization-wide focus to an ongoing data

analytics program, as opposed to conducting a one-time

exercise.


Benefits of Data Analytics

1. Closing the gap between ideas and results

2. Faster to market

3. Practical, executable recommendations

4. Greater resilience

5. Improved performance

6. Intelligence in the moments and a stronger

capability for predicting the future

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This Grant Thornton LLP presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenters and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered.

For additional information on matters covered in this presentation, contact your Grant Thornton, LLP adviser.

Disclaimer

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Questions & Answers

Use the Q & A Panel to send your questions to our panelists.

49

Kevin Surovcik

NetSuite and Enabling

Technologies Practice Lead

Principal, Business Advisory

Services

Grant Thornton

Al Bruce

Cloud Solutions and Enabling

Technologies SME Senior

Manager, Business Advisory

Services

Grant Thornton

Steve Shannon Director

Partnership Marketing

IMA


Thank You to Our Featured Presenters!

50

Kevin Surovcik

NetSuite and Enabling Technologies

Practice Lead Principal, Business

Advisory Services

Grant Thornton

Al Bruce

Cloud Solutions and Enabling

Technologies SME Senior Manager,

Business Advisory Services

Grant Thornton


51

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Final Reminders


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