Business Performance Management
Business Intelligence & Performance Management
Building on your current toolset to create best-in-class enterprise solutions
- Warwick Leitch – SPF Asia Pacific
- David Upton – SPF Asia Pacific
- Integral Energy - Duncan Moors
Business Performance Management
Overview
Paradigm Shift
BPM Leveraging your investment
Real BPM Examples• Integral Energy• Tarong Energy• Delhi Petroleum• J&J• Newcrest Mining• Flexirent• Large Retail Company• Mayne
Business Performance Management
CEO
CFOSystems
AccountantFinancial Controller
PlanningManager
VP HR VP OPS VP Marketing
Managers Managers Managers Managers
Managers Managers Managers Managers
Middle Men
Four dimensions1. Org Structure2. Chart of Accounts3. Time4. Version
Eight + dimensions5. Product6. Customer7. Employee8. Project9. Etc.
Old Days•Spreadsheets•Many questions•Slow
Moving Forward•Web Based•Collaborative•Read + Write
Business Performance Management
BPM - Leveraging Your Investment
– Finance Paradigm Shift• Empower a broader community of contributors by creating an environment to
facilitate and encourage mind share• Free finance department from acting as middle man• Everyone should have control/visibility of customer/product profitability, margins,
business impact
Business Performance Management
BPM Solution Components
• Planning– Top Down – with detail– Bottom up– Rolling Forecast– Scenario Planning– ‘What if’– Workflow – Manage submissions of budgets, forecasts, note gathering, consolidate
collaboratively• Financial Modeling
– Journal Entry, Eliminations, Statutory Consolidations – CAPEX– HR– Sarbanes-Oxley (SOX) & IFRS
• Balanced Scorecarding– Strategic alignment of metrics with strategies– Exception Reporting – Pro-active, not Re-Active, Traffic Light reports, sensitivity analysis.– Alerts & Notifications– Chained Analysis – SPF “discovery” for intuitive navigation using colour coded query chain.– Add Hoc browsing using IE and SPF Web– Security of applications in the BPM application
Business Performance Management
Real BPM Examples
• Integral Energy• Tarong Energy• Delhi Petroleum• J&J• Newcrest Mining• Flexirent• Large Retail Company• Mayne
Business Performance Management
TM1 User Conference 9 Nov 2004
Examples of TM1 flexibilityExamples of TM1 flexibility
Business Performance Management
Annual Leave Reporting
Previously reported using Cognos Powerplay:No anniversary datesNo data on leave in lieu or RDO bankOnly showed current balance - no forecast facilityLeave balance not pro-rated for part time employees
Business Performance Management
Annual Leave Reporting
Annual Leave Balance in Weeks tm1s:Leave Re tm1s:Leave Re tm1s:Leave Reporting
8/11/2004
Org Unit => AM + Tx WorkshopForecast Month => Feb 05Leave Type => Annual
Org UnitService Number First Name Surname Anniversary
Current Leave
Balance
Forecast Leave
BalanceLeave Target
Variance to Target
Booked Leave (Days)
Leave in Lieu
RDO Bank
A732 - Resource Manager Maintenance Shellharbour 0000000865 ALAN WARREN 29-Jun 13.19 13.19 8 5.19 19.00 .15 .44A925 - Emergency Services 0000002283 MICHAEL BEZZINA 10-Jul 14.12 14.12 10 4.12 22.00 .90 -A700 - Manager Southern Region & Staff 0000030554 SUSAN LEHMANN 19-Dec 8.09 12.09 8 4.09 - - 1.50A830 - Hoxton Park Operational Mgmt 0000046094 JOHN ROYAL 20-Jan 7.86 11.86 8 3.86 - 2.67 .22A873 - Transmission Technologies - Central 0000002771 FRANK HILI 9-Oct 11.78 11.78 8 3.78 - 19.08 1.11A752 - Resource Manager Nowra 0000003251 STEVEN LYMBERY 20-Jan 7.72 11.72 8 3.72 - 2.42 .89A810 - Construction & Maintenance Project Mgmt 0000018120 SUSAN BINGHAM 24-Feb 7.34 11.34 8 3.34 - - .03A854 - Vegetation Crew - Minto / Narellan 0000063991 ALLAN MCMULLAN 31-Jan 7.21 11.21 8 3.21 9.00 1.63 .44A851 - Maintenanace Operations Minto / Narellan 0000068616 GILBERT BOWIE 19-Jan 7.14 11.14 8 3.14 - .92 .86A971 - Transmission Mains Operations - North 0000021180 IAN ASTILL 8-Jan 7.11 11.11 8 3.11 16.00 1.04 -A910 - Regional Services Management 0000010960 MELISSA TABONE 31-Jan 7.04 11.04 8 3.04 - .82 .71
Business Performance Management
Capital Project BudgetingDistrict => INTGYear = > 2004/05Version = > BudgetRegion = > 0 - No RegionActivity = > 91 - CAPEX Insfrastructure Integral FundedSub Activity = > 17 - Construction - Major ProjectsProject => PR017 - Werrington ZS Rebuild to 132kV
SAMP DetailsVariance to SAMP
Total Northern
Region A900 A972Total Available Hours 674,616 7,012 85,508Remaining Available Hours (4) - ()
Description Werrington ZS Rebuild to 132kVLocationRegionDraft SAMP Total Cost 8,360,000Carry Over Total Cost 11,814Expected Start Date 31/03/2004Expected Completion Date 30/04/2005Units - - - -Phasing Assumptions / Milestones Assumed Region Start date 1 Sept 04Normal Time Hours - Northern 10,192 - 10,192 - 5,096Overtime Hrs - Northern 1,408 - 1,408 - 764Normal Time $ - Northern 471,068 17,477 488,546 - 235,550Overtime $ - Northern 76,898 (1,378) 75,520 - 40,524Materials - Northern 30,000 - 30,000 - 16,277Contractors - Northern - - - - -Vehicle Usage - Northern 251,154 (174,005) 77,149 - 41,860Other Expenses - Northern 200,000 - 200,000 - 108,518Total Cost - Northern 1,029,120 (171,467) 857,654 - 434,757
Business Performance Management
Capital Project BudgetingDistrict => INTGYear = > 2004/05Version => BudgetRegion = > 0 - No RegionActivity = > 91 - CAPEX Insfrastructure Integral FundedSub Activity = > 17 - Construction - Major ProjectsProject => PR017 - Werrington ZS Rebuild to 132kVOrg Unit => A971 - Transmission Mains Operations - North
SAMP DetailsVariance to SAMP YTD Jun Dec Jan Feb Mar
Total Available Hours 71,152 6,866 4,403 5,758 4,737Remaining Available Hours (3) () () () ()
Description Werrington ZS Rebuild to 132kVLocationRegionDraft SAMP Total Cost 8,360,000Carry Over Total Cost 11,814Expected Start Date 31/03/2004Expected Completion Date 30/04/2005Units - - - - - -Phasing Assumptions / MilestonesAssumed Region Start date 1 Sept 04Normal Time Hours - Northern 2,461 () 2,461 - 343 935 369Overtime Hrs - Northern 369 () 369 - 51 140 55Normal Time $ - Northern 107,552 2,519 110,071 - 15,347 41,811 16,511Overtime $ - Northern 18,185 431 18,615 - 2,596 7,071 2,792Materials - Northern 7,861 () 7,861 - 1,096 2,986 1,179Contractors - Northern - - - - - - -Vehicle Usage - Northern 20,216 - 20,216 - 2,819 7,679 3,032Other Expenses - Northern 52,406 52,407 - 7,308 19,907 7,861Total Cost - Northern 203,266 3,099 206,366 (246) 28,941 79,264 31,152
Business Performance Management
Monthly Reports
Business Performance Management
Monthly Reports
Business Performance Management
Monthly Reports
Business Performance Management
Integral Energy
Capital (Project) Budgeting (including resource allocation)
Annual Leave Reporting
Web-enabled Management Reporting
Industry Focus: Energy
Business Performance Management
Business Performance Management
Business Performance Management
Business Performance Management
Business Performance Management
Business Performance Management
Business Performance Management
Large Retail
Sales/marketing organisation with product spanning in all aspects of family life-from children's toys, apparel and footwear to publishing
Quality focus –voted best major toy supplier for third consecutive year
Integrated forecasting & demand management application with product-level sales forecast feeding back directly into inventory ordering system
Industry Focus: FMCG
Business Performance Management
Business Performance Management
Newcrest Mining
Australia's largest listed gold miner – A$1.2 Telfer mine Project in WA double Newcrest's gold production
Budgeting/Forecasting - Highly sophisticated model - 80 cubes!
Integrated model calculates completely dynamic/real-time
Builds up Group-wide multi-currency, multi-escalation financial model from mine engineering physicals with projections out to life of each of their mines (30 years)
Ratios: EVA, EPS, WACC, Std & Poor
Current focus: Project Asset Register, 64-bit, Executive Dashboard
Industry Focus: Mining
Business Performance Management
#MINORITY INTEREST
#EXPLORATION
#TOGURACI / GOSOWONG
#BODDINGTON
#CRACOW
#DIVIDENDS & DEPRECIATION
#PAYROLL
#CORPORATE ADMIN COSTS
#NOMINAL TO REAL
# DEFERRED MINING - CADIA EAST
#TAX
#HEDGING
#CORPORATE ADMIN RECOVERIES - Real & Nominal
#CORPORATE ADMIN - Cracow
#DEBT
#CVO
#TELFER
#STETS OUT OTHER ACCOUNT CODES USED BY LOM
#MINORITY INTEREST
#TAX
#PROJECT SITE COSTS
#PROJECT ACCOUNTING ADJUSTMENTS
#PROJECT ROYALTIES
#PROJECT REVENUE
#CURRENCY CONVERSION
Business Performance Management
Mayne
Australia’s leading provider of private health care services.– develops and manufactures generic pharmaceuticals & consumer
health products for world markets
TM1 replaces SAP BW
Applications: GL Reporting, Payroll Reporting
Currently developing: Doctor Pay model – automating fortnightly payment invoice to all Doctors in Mayne medical centre Australia-wideDocumentation! (Meta Data)Planned applications: pharmacy sales data - over 30,000 sales lines
Industry Focus: Health
Business Performance Management
Business Performance Management
Tarong EnergyQueensland Government Owned Corporation, generating about one quarter of Queensland's electricity supply from coal, hydropower, wind and gas
Asset intensive industry with complexities in project-based organisation, maintenance cycles and amortisation of large assets, and hedging energy contracts
Project:– Budgeting/ Rolling 5 year forecasts
- Balance Sheet, P&L, Cash Flows, Eliminations, Project Ledger, Tax, Statutory reporting
– Dupont Report
Project Status: – Kicked off mid-Oct. Two days to replicate existing ESSBASE structure!– Model now 90% complete. Reporting Phase. Dec go-live with Budget expense, payroll
and project data entry via web. IT Buy-InFuture: modeling Electricity agreement, Gross Margin, eventually pool spot-prices for Hedging.
Industry Focus: Energy
Business Performance Management
Business Performance Management
Business Performance Management
Flexi-Rent
Forecasting driven from key drivers
The ability to re-forecast on a monthly basis to take account of changes in interest rates, sales volumes, product mix, average deal sizes and many other variables
The ability to forecast and analyse the profitability of individual products and sales channels
The ability to conduct detailed sensitivity analysis of key business drivers.
These benefits will allow Flexirent to forecast their future performance in a far more accurate and timely manner.
Industry Focus: Finance
Business Performance Management
Delhi Petroleum
Oil and Gas Company which operates a range in joint ventures within Australia
TM1/SPF Plus for Reporting and Analysis and Budgeting and Forecasting
Utilising their Geo Survey and Volume Supply systems as sources for TM1 so that volume can be fed into their models to drive forecasting and publish to the web
Industry Focus: Resources
Business Performance Management
Johnson & Johnson
Balanced Scorecard
Traffic Light Reports
Citrix for clients
Rollout to Asia
Industry Focus: FMCG & Health
Business Performance Management
AGL
Had TM1 for over 6 yearsAround 100 users with very little understanding of TM1Budgeting and forecasting very primitiveUsers received as spreadsheet to enter data and sent it back to HQ to input3 separate companiesVery slow and little accountabilityMany mistakes and no timely consolidation of data
Industry Focus: Energy
Business Performance Management
AGL
Upgrade to 8.1.8 TM1 and SPF Plus 9.1.6Users enter data directly through the webNow forecasting HR, P&L, Balance Sheet, Cash flow, non financialNo rollout costs or client software to upgradeFAST!Instant consolidation of forecastAccountability using WorkflowRe-educated users to the power of TM1What-if now available
Industry Focus: Energy
