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Finance Transformation for JABIL with IBM Cognos TM1

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  • IBM Cognos TM1 + IBM Cognos Business Intelligence = Inverted Triangle

    Patrick Patterson Financial Systems Manager

    Steven ThomsonSenior Director, Finance Transformation Team

  • Snapshot

    Founded in Michigan, 1966

    Global Manufacturing Services

    Provider

    24 Million Manufacturing Square

    Feet

    60+ Global Operations

    Tenured Management Team

    165,000 Dedicated EmployeesGlobal Electronics

    Solutions For a Changing World

  • Data Aggregation

    Our BA Investment Drivers Jabil Reporting State 2008

    Source Systems

    Forecast

    Actuals

    Plant Reporting Packages

    Regional / Sector Reporting

    Internal Analysis

    Consolidation ConsolidatedReporting

    Reporting Output

    Customers

    Board Sr Mgmt Regional / Sector Controllers

    BU Operations Site Controllers

    Tax Authorities

    Auditors SEC Local GAAP Authorities

    Exec Analysis

    Auditors

    Press Release

    SEC

    Tax Package

  • Mergers & Acquisitions

    Divisional Finance

    Corp Financial Planning and

    Analysis

    Transformation

    Divisional Finance, Planning and Analysis

    Regional Finance

    Sector Finance

    Finance in Design

    Materials & Supply chain finance

    Forecast & Variance Reviews

    MPC Structure

    Weekly Reporting

    Divisional & Sector Support

    Monthly Reporting

    Plant Finance

    Financial Reporting

    Management Reporting

    Best Practice & Finance

    Transformation

    Regional Finance Support & Challenge

    Resource Planning &

    Development

    Control Assurance & Compliance

    Regional Strategy

    Ledger Maintenance GL, AR, AP Inventory and

    Cash

    Balance Sheet Reconcillations

    SOX

    Statutory Tax & Treasury Reporting & compliance

    Balance Sheet Reconcillations

    Costing & Materials Analysis

    Commercial Influence and Direction

    Variance Analysis

    Bu & Ops Financial Management

    Workcell Forecasting & Reporting

    Forecast & Variance integration

    Sector & BU Strategy Support

    Material Strategy & Performance Evaluation

    Regional / Plant Finance support & interaction

    Pricing Review & Support

    Balance sheet & Asset

    Management & Governance

    Resource Planning and Development

    Operational & Commercial Support and

    Challenge

    Material Quoting, pricing and standard management

    Working Capital & Risk Management

    SC Strategic Development & Support

    Material Price Variance

    Driving Functional Performance & Accountability

    Contractual Support & Modelling

    Process & Tool Development & Integrity

    Business Unit Support & Interaction

    Quoting R&D Evaluation & Integrity

    Investment Reviews & Analysis

    Design Strategy Support and Influence

    Reporting Compliance & Analysis

    SEC

    Rep

    ortin

    g

    IT F

    inan

    ce

    Tech

    nica

    l Ac

    coun

    ting

    Cor

    pora

    te

    Acco

    untin

    g

    Con

    solid

    atio

    n &

    Rep

    ortin

    g

    Equi

    ty &

    Equ

    ity

    Com

    pens

    atio

    n Ac

    coun

    ting

    SEC Filings

    External Audit Support

    Debt & Equity Offerings and

    Support

    Cost Containment

    Manage IT Capital Projects

    IT Financial Support

    Forecast & Variance

    Review

    Corp & Site level support

    Cost Center Reporting and

    Analysis

    Cost Center Owner Support

    Intercompany Charge Out

    Support

    Forecast & Variance

    Review

    GL Maintenance & Balance Sheet

    reconciliation

    US GAAP Training

    Support to Finance, Ops &

    BD

    Implementation of new

    accounting standards

    External Audit Support

    Transactional Technical

    Accounting Research

    Non operating Entity

    Accounting

    External Audit Support

    Consolidation of Global Financial

    Information

    Statutory Accounting

    Financial Reporting and

    Analysis

    HR Compensation

    Committee Support

    External Audit Support

    UBS Adminisatration

    Accounting Compliance &

    Reporting

    Participant Support

    Global Cash

    Managem

    ent

    Global Financial

    Risk Mgm

    t &

    Hedging

    Regional

    Treasury

    Global Credit

    Mgm

    t

    Controls & Processes

    Support the Organization

    Compliance & Regulatory Reporting

    Planning

    Special Projects

    Decision

    Support to BU

    and Ops

    Executive Office

    Support

    Divisional

    Finance Support

    Legal

    Legal

    Tax Calc, KPMG & SEC Filing

    SOX

    Customs Regulation

    Payroll and Benefit Reporting

    International, Federal, State & Local

    Audit

    VAT & Sales Tax support

    Systems

    Education

    People D

    eployment

    Continuous

    Improvem

    ent & Transform

    ation

    Cash Taxes

    Acquisitions

    Grants

    Footprint & Entity Structure

    Transfer Pricing

    Global

    Sourcing

    Supplier Financial R

    eview Supply

    chain

    Chair G

    lobal C

    redit Com

    mittee

    A/R C

    ollection, A/R

    Aging & D

    elinquency M

    onitoring

    New

    & Existing C

    ustomer C

    redit M

    gmt Plants

    Potential new

    customers financial

    reviews. Business

    Developm

    ent

    Regional education

    & support to plant finance & Bu

    Regional C

    redit M

    gmt

    Regional Financial

    Risk M

    gmt &

    Hedging

    Execution of global cash, financial risk & credit m

    anagement

    Regional C

    ash M

    gmt & Liquidity

    Mgm

    t

    Regional Best

    Practice, Business continuity

    Risk m

    itigation & H

    edging Strategy

    Pricing & BD

    Support / Strategies

    Capital structure

    analysis & optim

    ization

    Exposure Identification & Forecasting

    FAS52, FAS133 and other account standard com

    pliance

    Manage Financial

    Institutions H

    edging relationship

    Education & Training

    Treasury front office, global best practice, business continuity

    Chair Financial R

    isk M

    gmt C

    omm

    ittee

    Capital M

    arket, C

    redit facility & Securitization

    Debt C

    ompliance

    Banking & Financial Institution R

    elationship Mgm

    t

    Cash

    Forecasting & Liquidity M

    gt

    Intercompany Loan

    Mgm

    t

    Treasury Back office, global best practice, business continuity

    Credit R

    ating Agency R

    eporting & Analysis

    Special Projects

    Bank Account & C

    ash Managem

    ent Structure O

    versight

    Education & Training

    IT Financial Support

    Risk Assessment

    Finance

    Compliance

    Strategic

    Operations

    ERM

    Controls / Mitigation plan

    SOX

    Section 302

    Testing / Reporting

    Data mining / Fraud Mitigation

    Section 404

    Hotline Reporting

    Legal

    Medical

    EICC

    JDAS

    HR

    ISO

    Com

    plian

    ce /

    Regu

    lator

    yCorporate

    HR

    Entity Level

    Plant

    IT

    Cont

    rols

    & Pr

    oces

    ses

    Supply Chain

    IIA S

    tand

    ards

    Reporting

    Audit Committee

    Quality Assurance

    Education

    Jabil Finance

    Corporate Reporting

    Corporate Tax

    Corporate Treasury

    Risk & Assurance

    Corporate Controlling

    Time to Review our Reporting Needs!

  • Inverting the Triangle

    Data Analysis & Business Insight

    Data Prep & Reporting Reduce

    Waste

    IncreaseValue-Add

    Start State Future State

    Less time for preparation - more for interrogation, insight and engagement with business and operations to influence decisions

    Reporters to analysts Communicate For Results focussed analytics quickly highlighting issues

    and opportunities to our business partners less is more Standardized suite of reports and tools one version of the truth Realizing this vision requires replacement of rather than addition to current

    reporting & analysis

  • Desired Reporting State 2011-2013

  • Software Toolset

    Controller

    Statutory Reporting Integrated Consolidations Automated GL account controls and reconciliation

    TM1

    Integrated management accounting & forecasting All of our data in one place

    Data management framework for easy interrogation Automated actual loads

    Cognos BI

    On demand analytics for the end user Advanced visualization & insight - CFR Executive reporting and dashboards

  • How to Invert the Triangle?

    Business Partnering Workshop

    Master Analyst Qualification

    Business Partnering & Master Analyst Moving away from report

    generation to a role where finance can partner with Jabils business and operations functions

    BI Simulation (Future Chips) Introduce the Baseline It is not about which reports to use

    on which days of the month. It is about changing the mindset in finance to understand how we can add value to the decision making process

    Critical thinking examples utilizing the analytics library

    Master Analysts are our frontline

  • TM1 and Jabil

    Purchased TM1 in 2009

    Go Live in 2010

    2500 Users World Wide

    One centralized server

    Load tested for 300 concurrent users (think time 3-5 seconds)

    95% of use in TM1 Web

    Initially used for Actuals/Forecasting

  • Initial TM1 Challenges and Remedies

    Challenges:

    Enterprise Scale and Maintenance

    Partitioning

    Delayed Data Synchronization

    Remedies:

    Parallel Interaction + Model 2.0

    Open STA Testing

  • TM1 Benefits

    The time it takes to develop a new model is very fast

    Developers can prototype and work with functional users to

    make sure they get exactly what they want.

    Very customizable

    If cant be done using TM1 built in TM1 functionality, can easily

    call external programs/applications to do work and bring it back

    into TM1.

    Easy to use menu driven interface

  • Main Menu Interface

  • BU Sub Menu

  • TM1 Wins

    Replace plant controlled Excel-based forecasting with an integrated system

    Unify the cross-plant consolidation process and remove Excel reliance

    Provide standardized actual to forecast variance reporting Eliminate the need for manual manipulation of data

    Fast real time analysis SUPER FAST (and getting faster)!

    Ability to forecast in document currency with real time

    currency conversion

    Automatic Reconciliation

  • TM1 Wins

    Major reduction in the number of data points entered in by the

    sites.

    Actual load automation. (SAP +20 other Non SAP ERPs)

    Decentralized security allowing sites not to have to wait for

    corporate to add or change user access

    Built in allocation model and methodology allowing for

    consistent allocations across the enterprise.

  • New TM1 Applications

    Pricing/Quoting for new business Strategic Planning Headcount Planning

  • Whats Next for TM1?

    What If applications

    Operations Data

    Voice of the Customer

  • The Enterprise Analytics Challenge

    The Blind Men and the Elephant John Godfrey Saxe (1816-1887)

  • Developing the Analytics Capability

    Data Analysis & Business Insight

    Data Prep &

    Reporting

    PRENATAL INFANT CHILD TEENAGER ADULT SAGE

    SKIL

    LS G

    AP

    BI FOUNDATION Data Sources, Reports, Visualizations, Scorecards, Predictive

    Automated Reporting

    Guided Analytics

    Understand the Drivers

    Mine for Commercial

    Impact

  • Building the Foundation The Analytics Library

    Goals:

    Deliver a flexible analytics solution, one stop shop concept

    Kept reports simple and clean

    Quickly answer 70-80% of financial questions

    Method:

    Joint Application Development approach

    important to have the right skills mix and resource to deliver

    Tips:

    Business Vision + BI Application Knowledge = Increased user

    value

  • Report types organized for interrogation

    Position: Data displayed for a single point in time eg. Month, Quarter, Year

    Trend: Data displayed for 12 historical (Forecast or Actual) or 12 future periods (Forecast)

    Variance: Shows the difference between two positions with period and version as the variables. E.g. Actual v Q1 Locked Forecast for Q1 FY11, Actual Q2 FY11 vs Actual Q3 FY11

    Correlation: Show the relationship between 2 variables over time (e.g is the a linear relationship between Labor and Revenue)

    Waterfall: Shows the movement between 2 positions

  • Content and Structure

    60+ Report Studio Reports Line, Bar, 100%, Marimekko, KPI,

    Gymnastics, Waterfall 600+ Business Insight Dashboards Dashboards Style Reports

    Capacity Inventory Customer Variance Pass on Pass

  • Reporting Standards

    Packaged Reports: Traditional cross-tab reports are represented by data tables and comprise of Trend and Variance reports

  • Reporting Standards

    Bar & line: Easily spot monthly, quarterly and yearly trends for more accurate forecasting

  • Reporting Standards

    Bubbles: Size of the bubble measures profitability

  • Marimekko: Understand the proportional relationship

    Reporting Standards

  • Business Insight Workspace

    Combine pieces of the Analytics library (reports or individual components) to get a complete picture E.g. Forecast Review

  • Global SME dashboard contest

    Way to promote the sharing of best practices

    Understand if BI is adding the value we think it is

    Scoring based on: Inverting the Triangle Baseline Alignment Effective Business Partnering Communicate for Success Highlight Relationships within the Data Highlight Key Trends Visual Impact and Relevance Contributes to the Finance PDCA Cycle

  • SME Dashboard Contest Finalist

    Inventory is the Largest Investment at Jabil

    This Dashboard will Allow Us to Monitor Inventory at a Regional Level by Identifying Major Issues at both a Plant and Customer Level

    Updates with Weekly Indicator Allows Drill-down to Individual Plants Identifies Top Contributing Customer

    Quickly Provides a Quick Summary of the Major

    Components of Inventory

  • Analysis - Starting

    Current Forecast does not reflect historical growth

    Current Forecast does not reflect spike in last month of

    Jabils Quarter

    What questions does this make you consider and what data do

    we need to help?

  • Cost Centre Forecast

    DOES THIS: THIS:

    THE BEST USE OF JABILS RESOURCE?

    What questions does this make you consider and what data do

    we need to help?

  • Analytics Challenges

    Business Transforming our people

    Change is Hard! Communication

    Which is the right report for me?

    What are others using? What does the executive team

    look at?

    Technical Performance Hope is not a

    strategy 10.2 appears to be about

    50% faster so far DQM Migration Aggregation Awareness Business Insight (Cognos

    Workspace) Printing Hierarchy changes Listen for widget events Concurrent query execution

    (20 charts = 20 queries)

  • Results

    Weve come a long way in the last few months! Forbes Alexander, Jabil CFO

    Really just got visibility of the financial information above the water line

    BI has created an appreciation of the importance and necessity of all the work that went in TM1

    Execs are delighted real time access to data that they have never had before, real insight into the data driving results

    Driving finance to change how they support MAQ and Business Partnering is enabled by our system capabilities

    Cognos 10 BI

    TM1

  • AOP/LTP Driver Based Forecast

  • AOP/LTP Reports

  • Revenue of quotes lost by lost categories for a period

  • Results - What our users say

    This dashboard is an excellent alternative to the Excel file; much more reliable for use during the forecast reviews.Business Unit Manager

    I like being able to view my forecast as soon as it is updated. The dashboard is easy to use and having all the relevant information in a single screen saves time jumping between files.Business Unit Coordinator

    The pass on-pass view along with the ability to select a specific account and see trends in as quick as click makes this a valuable too l during forecast reviews.Business Unit Director

    The time saved in producing and publishing reports by our financial analyst can now be used in identifying and closing gaps.Accounting Supervisor

    Report Generation that used to take 3 days is now completed in minutesGroup Controller

  • Whats Next for BI?

    Upgrade to 10.2 Migration to Dynamic Query Mode

    Strategic and Scenario Planning Stronger Foresight with Predictive Analytics Metrics Studio Balanced Scorecards

    Mobile Limitless Visualization Beyond Finance Operational & HR data Create an Information Advantage

  • Questions?Patrick Patterson Financial Systems Manager

    Simon YannopoulosDirector, Finance Transformation Team

    Q&A

    IBM Cognos TM1 + IBM Cognos Business Intelligence = Inverted Triangle SnapshotOur BA Investment Drivers Jabil Reporting State 2008Slide Number 4Slide Number 5Desired Reporting State 2011-2013Software ToolsetHow to Invert the Triangle?TM1 and JabilInitial TM1 Challenges and RemediesTM1 BenefitsMain Menu InterfaceBU Sub MenuTM1 WinsTM1 WinsNew TM1 ApplicationsWhats Next for TM1?The Enterprise Analytics ChallengeDeveloping the Analytics CapabilityBuilding the Foundation The Analytics LibraryReport types organized for interrogationContent and StructureReporting StandardsReporting StandardsReporting StandardsReporting StandardsBusiness Insight WorkspaceGlobal SME dashboard contestSME Dashboard Contest FinalistAnalysis - StartingCost Centre ForecastAnalytics ChallengesResultsAOP/LTP Driver Based ForecastAOP/LTP ReportsSlide Number 36Results - What our users sayWhats Next for BI?Questions?

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