© 2012 IBM Corporation
Business Analytics: Driving Profitable Growth, Addressing Regulation and Risk
Ray J Payette
April 26th
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Source: IBM IBV/MIT Sloan Management Review Study 2011Copyright Massachusetts Institute of Technology 2011
More organizations see
As competitive advantage
2010 2011
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Organizations competing on analytics substantially outperform their peers
Source: IBM IBV/MIT Sloan Management Review Study 2011Copyright Massachusetts Institute of Technology 2011
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RealizedPotential
• Low value activities• Limited relevance, frequency
and participation • Poor insight into causality • Weak, delayed coordination
Source: CFO Executive Board 2011; IBM Analysis
30% of performance potential is lost due to subpar performance management
Performance potential squandered by poor practices
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HR
Technology foundation is under pressure
CRM
ERP
G/L
DW
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“For 55 percent of companies, their budget assumptions are useless by three months into the new year.”
Feb
2012Budget approved
Speed and agility do not match the marketplace volatility
Dec
Forecast Forecast Forecast
June
Source: APQC
2013 Budget
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Staff leverage is weak
Providing value-added
analysis
Collecting and validating the data
Administeringthe process
30%23%
47%
Source: APQC
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Monthly reports do not help us understand root causes … or profitability levers
Which products, customers, segments?
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PotentialCurrent
The more you infuse analytics into your business, the higher your AQ and the better you and your business will perform
Raise your analytic maturity to gain the time, control, and confidence
• Automate processes• Increase agility• Gain new insightAQ
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Business Analytics in Action
Future Chips reports full year results
Future Chips refiles financial
statements
A day in the life of Future Chips
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Our finance organization is like an old Beetle on the German autobahn. Our company and our careers are at stake if we do not change! — CFO of Future Chips
“”
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Transforming the decision process
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
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Transforming the decision process
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
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From looking backward to looking forward
Leading vs. lagging | External & internal vs. internal only | Forecasting vs. budgeting only
IBM Cognos Business Intelligence 10 – comprehensive dashboards
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Demo
Review performance dashboard
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Insight everywhere you need it
• In the boardroom or 35,000 feet in the air
• Actionable information on the desktop and your mobile device (NEW)
• Timely, rich and interactive content
IBM Cognos 10 – Mobile and comprehensive dashboards
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Transforming the decision process
Profitability issue in Asia
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
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The data I need is not just in corporate systems.
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I don’t know exactly what I’m looking for.
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I can’t afford to wait for someone else to build it.
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We need to understand and respond faster to marketplace changes.
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Demo
Analysis and what-if scenarios
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Agile, personal analytics
• Access to external and corporate-sanctioned data sources
• Boundless freedom to perform analysis
• “Write-back” for what-if scenarios and planning template development
IBM Cognos Insight
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Transforming the decision process
Rapid product introduction
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
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From spreadsheet formulas and links to visual modeling
Visual vs. Text | Business-User vs. IT specialist | Agile Prototype-to-Deploy
IBM Cognos TM1 10 (Performance Modeler)
=100*(Sheet2!B$29+'[Northern Region.xls]Frcst'!$B$3+'[Southern Region.xls]Forecast'!$B$3+'[Southern Region.xls]-Frcst'[Northern Region.xls]Sheet2'!$B$3)
From Spreadsheet formulae & links to
Visual Modeling & Composition
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Demo
Prepare ad-hoc forecast models
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Intuitive modeling and application deployment
• Multidimensional modeling tools• Big time savings, less risk and better
visibility• Visual interface for intuitive modeling
IBM Cognos TM1 10 (Performance Modeler)
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Transforming the decision process
Forecast models updated with new products
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
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From detailed and numeric to Driver-based forecasts
From manual aggregation to Process automation
Corporate
BU's
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Demo
Update and revise forecast
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Planning, analysis, forecasting & profitability modeling
• Driver-based models• Easier scenarios to address risk• Easy distribution and aggregation of
templates• Real-time reporting against plan,
budgets and forecasts
IBM Cognos TM1 10 (Cognos Insight, Contributor, Excel)
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Transforming the decision process
Revised, positive forecast
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
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Narrative-based reviews flush out what is really happening
Analytical insight Gain consensus, plan & execute
On going reports & analysis
Speed alignment and decision-making
Performancenarrative
Financial & performance data
Review, edit,Approve, certify
MD&A disclosures
Publish to shareholders, regulators, etc.
Reduce risk of error, insider leaks, and late filings
Disclosure Management and Tagging:
Narrative Performance Reporting:
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Demo
Narrative reportingand disclosuremanagement
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Narrative business reviews and disclosure management
• Integrated workflow and narrative reporting
• Big time savings, no retyping or copying
• Rich functionality, including XBRL
IBM Cognos Financial Statement Reporting (FSR)
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Smarter Analytics. Smarter Outcomes.
Analysis & what-if scenarios
Forecast preparation
Forecast execution
Narrative businessreviews
Issue identification
Contribution &workflow
Agile modeling & scenario analytics
Re-align PM environment
Profitability monitoring
Qualitative input to alignment & decision-making
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IBM should be your partner in becoming analytics-driven
AQ?What’s your
The more you infuse analytics into your business, the higher your AQ and the better you and your business can perform.
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IBM business analytics deliver ...
Time
Drive efficiencies and scale•Eliminate intensely manual efforts•Structure and automate dynamic processes•Scale to large user communities and data sets
Control
Gain agility and preparedness•Link operational and financial performance management•Support advanced analytic techniques (e.g., scenario and predictive analytics)•Eliminate delays in coordinating around to emerging realities
Confidence
Improve effectiveness and outcomes•Dramatically reduce risk of errors•Cost-effectively address compliance•Drive new confidence in analytics-driven decision making
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IBM business analytics: complete capabilities
Business analytics and optimization solutionsIndustry solutions
Financial services
Workload-optimized systems
Public Distribution Industrial Communications
CustomerFinance
Cross-industry solutions
Human capital Supply chain/operations
Risk analyticsBusiness intelligence
Business analytics
Predictive and advanced analytics
Financial performance and strategy management
Information management and governance
Information integration and master data management | Data warehousing
Content management Data management
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Do you want to become the CEO of Future Chips?
• Business simulation• Interactive workshop• Decision making
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the best partnerfor your analytics journey
• Evaluate your finance processes• Join our analytics experience workshops• Meet your local IBM business analytics team
Join the breakout sessions to learn moreJoin the breakout sessions to learn more
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Attend IBM’s premier conference for Finance and Risk professionals!
When: May 14-17, 2012 Where: JW Marriott Grande Lakes | Orlando, FloridaWho should attend: Finance and Risk professionals (CFOs, CROs, CCOs, and other senior financial managers)Why Attend: Compelling line-up of IBM product experts, customers, and analysts Real-world experience and best practices Keynotes, workshops, roundtables and 60+ breakout sessions
Tracks include: Planning Analysis & Forecasting Integrated Risk Management Performance Reporting & Scorecarding Regulatory Compliance, Policy & IT Governance Financial Governance & Disclosure Management Operational Risk Management
For more information, visit: ibm.com/software/analytics/vision
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Business Analytics Education: Build Your Expertise
Delivering Knowledge•Get the right training for the right people at the right time•Certified instructors•Flexible training options
• Self-paced virtual classes• Instructor-led online• Public classroom• Private (On-site or virtual)• Customized
Driving Value•Accelerated deployment and adoption•Improved user performance and productivity•Business value through economies of scale•Green alternatives: on-line and self-paced•Training paths can guide you towards the right class to achieve your goals
Over 92% of our customers would take a class from us again.- 2011 Customer Survey
Contact us to help you customize a plan for you or your company: [email protected] for “IBM Cognos Training”: www.ibm.com/software/data/education/cognos.html
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Delivering Value Through Services •Lowering your risk during implementations •Building your skills for long term success•Raising the quality of your solutions
Example ServicesCognos TM1 v10 Upgrade InitiateCognos TM1 Health CheckCognos TM1 Model Design ReviewCognos TM1 Technical DesignCognos TM1 Performance Testing & TuningCognos TM1 Installation & ConfigurationCognos Planning Health CheckCognos Planning v10 Upgrade InitiateCognos Planning Migration Assessment to TM1Cognos Controller Application Planning & DesignCognos FSR Quick StartCognos XBRL Quick Start
Business Analytics Lab Services for Performance Management
Contact us to determine how Lab Services can help your company: [email protected] for “IBM Cognos Services”: www.ibm.com/software/analytics/cognos/services/
Advisory Services are best when: Planning, analyzing & designing the solution Determining approach to competency & training
Assessment Services are best at key milestones or post-implementation:
Assess or optimize application & technical design Evaluate model & report design Conduct “health checks” to improve performance
Assist Services are best for: “Hands-on" expertise for specialized services Installation and configuration Performance testing and tuning Product integration
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IBM Corporation 2012• IBM, the IBM logo, ibm.com, IBM Cognos Business Intelligence, IBM Cognos TM1, IBM Cognos Insight, and IBM Cognos
Financial Statement Reporting are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml.
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