Driving a Smarter Enterprise

Transcription

1 Driving a Smarter Enterprise Loui A. Okasha Channel Manager, MENA Business Analytics 2008 IBM Corporation

2 Uncertainty The New Normal Velocity and Volatility Over 60% of Finance executives believe that when the recovery takes hold, the heightened uncertainty in the business will remain CFO Magazine/Duke University Business Outlook, September 2009 ~60% of Finance organizations believe that they have to make major changes to respond [to growing industry/sector pressures] IBM CFO Study 2

3 Driving a Smarter Enterprise 70% of CFOs believe they have an advisory or decision making role on an Enterprise Agenda MARKETING EXECUTIVE MANAGEMENT SALES Finance needs to improve its effectiveness in order to deliver on the Enterprise Agenda Importance FINANCE PRODUCTION AND DISTRIBUTION Gap FINANCE PURCHASING TECHNOLOGY IT/R&D HUMAN RESOURCES 73% 39% 1 CUSTOMER SERVICE Effectiveness 2 3 Driving integration of information across the enterprise 51% Supporting / managing / mitigating enterprise risk 77% 62% Measuring / monitoring business performance Driving enterprise cost reduction 0% 20% 80% 52% Providing inputs into enterprise strategy 40% 34% 28% 26% 85% 59% 80% 60% 80% 23% 21% 100% Source: 2010 IBM Global CFO study 3

4 Source: Nucleus Research 2008,

5 Performance Pain IBM Cognos software Impact Need for more dynamic, reliable collaborative planning, analysis and reporting system More timely, reliable decision information Too much time spent validating data, rather than providing value-added analysis to support the business. Systematic access to strategy, procurement, engineering, and financial planning data More time spent analyzing key business metrics Improved data ownership We believe in the integrity of the data. The data is more trusted. W eb-based data capture and reporting Centralized data store, consolidation of information and assumptions Robert Loreto, Senior Director of IT, Qualcomm 5

6 IBM Cognos software Impact Provide centrally managed data to analyst communities so they can focus on providing the value-added analysis to drive business; Performance Pain Reduce its application footprint; Need for greater accountability, deeper in the organization Reduce the IT delivery expense associated with supporting the finance function; Need to centralize expense planning Focus on end-user productivity by streamlining data delivery, providing the right metrics to individuals based on their roles. Need for more consistent views of data Improved ability to identify drivers of top-line revenue growth, analyze expense constraints, identify risk and address SOX compliance issues. Centralized planning reduced the footprint for financial planning by retiring 20 disparate applications Able to preserve analytics and reporting flexibility while driving more standardization. Finance can focus on providing value-add analytics to drive the business. Marc Berson, Director Business Analytics, IBM Corporation 6

7 Three Questions for Business Insight How are we doing? Why? What should we be doing? 7

8 Three Questions for Business Insight How are we doing? Why? How are we doing? Why? What should we be doing? What should we be doing? 8

9 Three Questions for Business Insight FINANCE PRODUCT DEVELOPMENT MARKETING How are we doing? Why? What should we be doing? OPERATIONS SALES CUSTOMER SERVICE HR IT 9

10 Three Questions for Business Insight Key Business Questions What happened? Where exactly is the problem? How many, how often? Why is this happening? What actions are needed? How are we doing? Rear View Examples of Business Insight Balance sheet, profit and loss, and cash flow statements Revenue and cost variance analysis Source: 2010 IBM Global CFO study Why? What should Current View we be doing? Customer, product and market profitability Spend optimization Working capital analysis Market, customer and channel pricing Sales and supply chain effectiveness What will happen next? What if these trends continue? What are the risks or opportunities? Forward-Looking View Cash forecasting Scenario-based planning and forecasting Strategic investment decision support Volatility and risk-based predictive and behavioral modeling 10

11 Business Insight: Scenario-based Planning & Forecasting Rear View Current View com panies, l a n o ti a in lt u m r Fo l changes can a c ti li o p d an ry regulato any tim e, t a ly ri ra it b ar n happe e execution th g n ti c a p im y tl significan of strategy. g m ust be m uch in n n la p, lt u s re As a h the ability to it w d e s a -b o ri a n m ore sce rapidly adapt. Kistler Forward-Looking View Place Your Bets What if? M arkus B a and China, AB CFO - North Asi M Source: 2010 IB y ud Global CFO st 11

12 Driver-based Plans Connect Operational Causes with Financial Outcomes Rear View Current View Forward-Looking View Importance of Enterprise Focused Activities Over Time Source: 2010 IBM Global CFO study Enterprise Planning for Visibility & Control 12

13 Forecast More Frequently But With a Shorter Time Horizon Rear View Current View J F M A M J Forward-Looking View J A S O N D Traditional Forecast Rolling 90 Day Enterprise Planning for Visibility & Control 13

14 Co-ordinate Global & Local Scenarios Rear View Globally coordinate plan submissions based on common business drivers and assumptions provide easy scenario modeling and variance explanation (volume, price) Forward-Looking View Current View Low Growth Business Unit ABC Sales & M arketing Capture multiple plans that reflect alternative states of Demand Generation the world Encourage local scenarios to drive anticipation and ensure timely, error-free response when conditions change Operations Call Center Hi Demand Growth (+10%) Low Demand Growth (+3%) Moderate Demand Growth (+7%) Scenario (Submitted) High Growth Moderate Growth Scenario... Hi Call Volumes (+12%) Low Call Volumes (+5%) Moderate Call Volumes (+9%) Scenario (Submitted) 14

15 Scenario-based Planning & Forecasting 15

16 Revenue MARKETING FINANCE HR Expense & Capital Workforce SALES Operations Financial Performance Management Solutions Financial Workforce Supplier / Procurement Customer / Sales OPERATIONS Analytic Applications PRODUCT DEVELOPMENT CUSTOMER SERVICE 16

17 Copyright IBM Corporation 2008 All rights reserved. The information contai ned in these materials is provided for informational purposes only, and is provided AS IS without warranty of any ki nd, express or implied. IBM shal l not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these ma terials i s i ntended to, nor shall have the effect of, creating any warranties or representations from IBM or i ts suppl iers or l icensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these material s to IBM products, programs, or services do not imply that they wi ll be available i n all countries in which IBM operates. Product rel ease dates a nd/or capabili ties referenced in these materials may change at any time at IBM s sole discretion based on market opportuni ties or other factors, and are not intended to be a commitment to future product or feature availabili ty in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products a nd services are trademarks of the International Business M achines Corporation, i n the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. 17