Move from Business Intelligence to Advanced Analytics by Integrating IBM

SPSS with Cognos TM1

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Perficient is a leading information technology consulting firm serving clients throughout

North America.

We help clients implement business-driven technology solutions that integrate business

processes, improve worker productivity, increase customer loyalty and create a more agile

enterprise to better respond to new business opportunities.

About Perficient

• Founded in 1997

• Public, NASDAQ: PRFT

• 2013 revenue ~$373 million

• Major market locations throughout North America• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los Angeles, Minneapolis, New Orleans, New York City, Northern California, Philadelphia, Southern California, St. Louis, Toronto and Washington, D.C.

• Global delivery centers in China, Europe and India

• >2,100 colleagues

• Dedicated solution practices

• ~90% repeat business rate

• Alliance partnerships with major technology vendors

• Multiple vendor/industry technology and growth awards

Perficient Profile

BUSINESS SOLUTIONSBusiness IntelligenceBusiness Process ManagementCustomer Experience and CRMEnterprise Performance ManagementEnterprise Resource PlanningExperience Design (XD)Management Consulting

TECHNOLOGY SOLUTIONSBusiness Integration/SOACloud ServicesCommerceContent ManagementCustom Application DevelopmentEducationInformation ManagementMobile PlatformsPlatform IntegrationPortal & Social

Our Solutions Expertise

Tony FirmaniDirector of Advanced AnalyticsTony is an experienced consultant and advanced analytics practice leader at Perficient, with more than 17 years developing and implementing solutions across a variety of industries, including financial services, marketing, healthcare, insurance and pharmaceuticals.

Jim MillerNational FPM Practice LeaderJim leads Perficient's national financial performance management practice with more than 30 years of extensive applications and system design and development experience.

Denver StokesTechnical ConsultantDenver is a technical consultant and data analyst at Perficient, providing data mining, predictive analytics and financial performance management consulting services.

Thought Leaders

• From BI to Advanced Analytics

• Departmental Solutions

• Finance Office Pain Points

• Which Processes to Improve

• IBM TM1 + IBM SPSS

• IBM’s Forecasting Methodology

• Forecasting + Advanced Analytics

• Demo / Why Perficient ?

Agenda

Data Mining, Forecasting & OptimizationDoes this new customer fit the profile of a high value patron? Which offer is most likely to get a response per segment? What are my long & short-term forecasts for staffing & peak weekend traffic?

ROI

Moving from Business Intelligence to Analytics

Which Departments Need Forecasting?

• Compensation Management • Sales Performance Management • Staffing Optimization • Training Certification • Intranet Employee Portal

• Retail Sales Analysis • Retail Assortment Planning• New Product Planning• Customer Profitability • Customer Churn Analysis

• Financial Consolidations • Financial Reporting • Planning • Driver Based Budgeting • Rolling and Predictive Forecasts• Risk Analysis

• Demand Analysis• Inventory Optimization • Logistics Planning• Cost Planning • Product Profitability • Production Planning

Financial Operations

Workforce Customer

Complete Management of Your BusinessLong-term Sales & Operational Planning Ad Hoc Analysis & Formatted Reporting

Today’s Finance Technology Pain Points

• Fact: Finance teams are stretching the limits of spreadsheet capacity• Fact: Too much time spent collecting and scrubbing data• Fact: Data is not transparent, leading to distrust in forecasts/reports• Fact: Data governance regulations are tightening, and spreadsheets

cannot support this trend – finance teams are feeling the pressure to answer

• Fact: Reporting requirements are changing on a monthly basis, and spreadsheets are not easily adaptable

• Fact: Finance and IT teams have different agendas, but ultimately need to work together to build efficiency

What else can we add to this list?

Pursuit of Internal Excellence: Which Processes Can Improve?

• Transactional Accounting, Close & Consolidations• Budgeting & Forecasting• Managerial Reporting & Analysis

Step 1 Step 3 Step 5Step 2 Step 4

Identify & quantify improvement opportunities utilizing benchmarks

Define key metrics and calculate baseline values

Analysis & review to identify the operational approach to achieving improvement targets

Technical enablement of data driven & process driven solutions

Monitor & post mortem review to feed the continous improvement cycle

Identify Target Metrics with Adaptive Roadmap

Measure the function• What is your total finance function cost as a % of revenue? • Number of finance function FTE’s per billion of revenue? • Average cycle time in days to complete the annual budgeting cycle?• Average cycle time in days to complete the monthly consolidated financial

statements?

Assess your strengths & weaknesses• Analysis? (financial, operational or both?)• Systems?• Business Process? • Personnel?

…then create time by pursuing efficiency BUT don’t wait on the “value add” until all the efficiency projects are done. Start changing processes and redefining the organization in a deliberate path of incremental steps.

Product Suite – IBM TM1 + IBM SPSS

Extend from a finite list of TM1 scenarios to optimize to the best forecast with SPSS Advanced Analytics

Fusion of Planning, Analysis & Reporting• Planning, budgeting & forecasting

• Managed planning (workflow & approval)• Free form planning • Sophisticated data spreading input methods

• ‘What if’ analysis & modeling• Personal scenarios/sandboxes• Interactively test new business assumptions• Flexible and intuitive modeling experience• Easily create simulations

• Reporting• Excel, desktop, and web-based reporting

Variety of User Interfaces• TM1 Application Portal and Workflow• Cognos 10• Excel• Performance Modeler• Cognos Insight• TM1 Web

IBM Cognos TM1 for Planning and Analysis

IBM SPSS Modeler Time Series Component

Repurpose the majority of your time from data management to analytics

IBM’s Unique Methodology: Temporal Causal Modeling

Proprietary algorithms developed by IBM Watson Research Center, that discover causal relationships between drivers and KPIs, and answer the following:

Which metrics have the most impact on my performance?• Use historical data to discover those metrics that have the strongest

impact on selected business objectives, directly or indirectly• Use historical data to evaluate the strength of user-specified metric

relationships

How do these metrics interact with each other?• Use historical data to discover significant causal relationships among

metrics: time lag between metrics, strength, degrees of separation.

What is driving my performance?• Use identified causal relationships to automatically discover the metric

values driving observed performance

If nothing else changes, what will my future performance be? • Use causal-temporal model to project future performance based on

historical data

Temporal Causal Modeling

• Discover causal relationships

• Assess lead-lag indicators

• Examine strength of metrics relationships and degrees of separation

• Anticipate the momentum of metrics drivers

Predictive Analytics

Forecasting / Advance Analytics Practice

Experience in manufacturing, banking, insurance, telco and other vertical industries. Consulting recommendations and production methods provided in the following industries:

Forecasting

• Forward price curves in energy industry• Inventory, demand and defect rates for

manufacturing• Sales, revenue, foot traffic for retail• Advertising spend and flight plans for

retail, online• Customer attrition rates for telco• Profitability, losses, liquidity, risk for

insurance & banking

Financial Performance

• Global healthcare & utilities• Global risk management• Global digital services• Major specialty retail/web retailer• Global pharmaceutical• Global legal services• Major specialty retailer• Research & government research• Automobile & wholesale distribution• Commercial information provider• Medical supplier

Technologies in action

Advanced Analytics JumpstartDefine deliverables and outputs, scope work engagement and mentor

• KPI: Reduce Average Handling Time• Problem: I can’t get to first call resolution on each call• Decision: When should I not push to FCR THIS call?• Who: Analyst, SME, workforce management team,

customer• What is the goal? Identify outlier calls• What are the output considerations?

Management Portals / Dashboards

Advanced Analytics Practice

Recap: Why Use Perficient?

Leading IT consulting firm serving clients throughout North America• Proven IBM BA implementer for over 15 years;

Proven track record• We stand by our commitments • We have a solid base of reference accounts

• We can be flexible and creative on how we structure our deals• Billing flexibility• Phased approach

• Proven project methodology with our user-centered approach

• Domain expertise in multiple industries

Thank You!

For more information contact:Joe Sarno

joseph.sarno@perficient.com

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