The Dbriefs Business Strategy & Tax series presents:
Data Analytics and Workforce Strategies:
New Insights for Tax Efficie...
Copyright © 2014 Deloitte Development LLC. All rights reserved.1
• The basics – Analytics defined
• Analytics in the tax w...
The basics – Analytics defined
Copyright © 2014 Deloitte Development LLC. All rights reserved.3
What is Analytics?
Analytics is the practice of deriving ...
Copyright © 2014 Deloitte Development LLC. All rights reserved.4
Where is Analytics being applied?
Analytics is being appl...
Copyright © 2014 Deloitte Development LLC. All rights reserved.5
What do you see as the single most significant barrier to...
Analytics in the tax world
Copyright © 2014 Deloitte Development LLC. All rights reserved.7
Global tax management challenges
In the U.S., strict
requ...
Copyright © 2014 Deloitte Development LLC. All rights reserved.8
Process
DB
2. Data staging 4. Data Analysis
5.Businessapp...
Copyright © 2014 Deloitte Development LLC. All rights reserved.9
Tax department’s vested interest in the finance
transform...
Copyright © 2014 Deloitte Development LLC. All rights reserved.10
Value
Maturity
Independent
country tax
engines
Portfolio...
Copyright © 2014 Deloitte Development LLC. All rights reserved.11
Which of the following best describes your company’s tax...
Analytics in the world of
global talent / mobility
Copyright © 2014 Deloitte Development LLC. All rights reserved.13
The power of analytics may be realized immediately and
c...
Copyright © 2014 Deloitte Development LLC. All rights reserved.14
Innovative
data sources
Business
value
Customized
segmen...
Copyright © 2014 Deloitte Development LLC. All rights reserved.15
Business
Talent
Service
Operational
Financial
Process
An...
Copyright © 2014 Deloitte Development LLC. All rights reserved.16
Global Mobility Analytics Framework
Measures
Hindsight I...
Copyright © 2014 Deloitte Development LLC. All rights reserved.17
Applying analytics to manage tax risk: Business
travelers
Copyright © 2014 Deloitte Development LLC. All rights reserved.18
Keys to success
Develop a roadmap linked to questions, K...
Copyright © 2014 Deloitte Development LLC. All rights reserved.19
What area do you see analytics most readily being applie...
A client perspective
Copyright © 2014 Deloitte Development LLC. All rights reserved.21
Context
• MasterCard business model drives global busine...
Copyright © 2014 Deloitte Development LLC. All rights reserved.22
Data analytics: Global business travel
• Data analytics ...
Copyright © 2014 Deloitte Development LLC. All rights reserved.23
When applying analytics to solve your crunchy questions,...
Question and answer
Copyright © 2014 Deloitte Development LLC. All rights reserved.25
Eligible viewers may now
download CPE certificates.
Clic...
Copyright © 2014 Deloitte Development LLC. All rights reserved.26
Contact information
James Bowtell
+1 (212) 436-4450
jbow...
Copyright © 2014 Deloitte Development LLC. All rights reserved.27
This presentation contains general information only and ...
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarant...
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Data Analytics and Workforce Strategies: New Insights for Tax Efficiency and Performance Improvement - Deloitte Dbrief, May 5, 2014

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Organizations are finding new ways to apply data analytics for informed decision making to drive desired business outcomes. How can finance executives use analytics in global talent, rewards, and employment tax programs to create value across the business?

Learn how leading organizations are deploying data analytics to create value in their workforce strategies.

Published in: Business, Technology
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Data Analytics and Workforce Strategies: New Insights for Tax Efficiency and Performance Improvement - Deloitte Dbrief, May 5, 2014

  1. 1. The Dbriefs Business Strategy & Tax series presents: Data Analytics and Workforce Strategies: New Insights for Tax Efficiency and Performance Improvement Mark Steiger, Deloitte Tax LLP Forrest Danson, Deloitte Consulting LLP Nick Gonnella, Deloitte Tax LLP James Bowtell, Deloitte Tax LLP David Buchner, MasterCard May 5, 2014
  2. 2. Copyright © 2014 Deloitte Development LLC. All rights reserved.1 • The basics – Analytics defined • Analytics in the tax world • Analytics in the world of global talent / mobility • A client perspective Agenda
  3. 3. The basics – Analytics defined
  4. 4. Copyright © 2014 Deloitte Development LLC. All rights reserved.3 What is Analytics? Analytics is the practice of deriving insights from data to make more effective decisions. HindsightInsightForesight Machine learning Dynamic rule utilization Simulation and modeling Quantitative analyses Advanced forecasting Real-time exception and alerts Role-based performance metrics Management reporting with drill downs Predictive Descriptive Enterprise data management Prescriptive
  5. 5. Copyright © 2014 Deloitte Development LLC. All rights reserved.4 Where is Analytics being applied? Analytics is being applied to derive insights across a range of domains. Domains Customer • Pricing analytics • Predictive subscription and advertising • Customer Sentiment Analysis • Customer Churn Analytics • Marketing Analytics Risk • Risk sensing • Reputational risk analytics • Fraud and Anomaly detection and prevention Finance • Interactive financial visualizations • Risk adjusted planning budgeting and forecasting • Analytics for control, efficiency and reduced working capital Supply Chain / Operations • Supply Chain Network Modeling • Supply Chain Risk • Geospatial Analysis of key operation centers Workforce • Retention • Workforce Planning • Safety • Recruiting
  6. 6. Copyright © 2014 Deloitte Development LLC. All rights reserved.5 What do you see as the single most significant barrier to applying data analytics in your organization: • No issues: we are well on our way • Business issues not well defined • Application of analytics not well enough defined • Lack the necessary resources – people, capabilities, infrastructure – in the organization • Unsure / not applicable Polling question #1
  7. 7. Analytics in the tax world
  8. 8. Copyright © 2014 Deloitte Development LLC. All rights reserved.7 Global tax management challenges In the U.S., strict requirements have been enacted to identify potential weaknesses of tax processes In Europe, the trends are more to move to e-audits and deliver a standard audit file for tax to the authorities; • UK – senior accounting officer • NL – tax control framework • Germany – standard audit file for tax e- audit In Australia, since 2010 large businesses have been assigned a risk rating by the Australian Tax Office. The risk rating was derived from extending and enhancing data analytics and risk profiling techniques In China, new regulations require large taxpayers to grant the tax authorities increased access to their internal tax risk control systems In India, the strategy seems to be having more audit-based controls opposed to physical controls. Relaxation of controls is coupled with introduction of strict penalty provisions including provision for prosecution Increased requirements from tax authorities In Brazil – elimination of the filing of corporate tax returns beginning in 2014 due to large amounts of required data that the Brazilian Tax Authorities already maintain.
  9. 9. Copyright © 2014 Deloitte Development LLC. All rights reserved.8 Process DB 2. Data staging 4. Data Analysis 5.Businessapplication 1.Riskanalysis Forecasting Outlier detection Rule based analysis General Ledger Forecast to fulfill Order to cash Procure to pay 3. clean, transform Analytic DB Black lists Exchange rates Tax Rules VIES SAP 6. Case management 7. Automate extraction Tax analytics Mgmt. information Exception reporting Data quality analytics Reference db 2nd SAP system GEO analysis Soc. Network analysis Integrated client architecture
  10. 10. Copyright © 2014 Deloitte Development LLC. All rights reserved.9 Tax department’s vested interest in the finance transformation project’s success ERP initiatives offer a unique opportunity for tax departments to identify and sensitize tax data for downstream planning, reporting and audit activities Process Initiatives • ERP Selection, Design & Implementation • Transaction Tax Automation Strategy • Streamlined G/L • Shared Services • Fast Close/Consolidation • Fixed Asset Accounting • Planning, Budgeting, Forecasting & Reporting • Cash Management / Treasury • Finance Transformation Impacted Tax Topics Federal / Int’l Transaction Tax • Legal Entity P&L/BS • Book/Tax Depreciation & Amortization • Gain/Loss on asset Dispositions • Financial Derivatives • Schedule M-1/M-3 • 1120 Detail • E&P Specific Items • AMT Specific Items • Tax Attributes • Purchase Accounting • Foreign Source Income and Related Reporting • Transfer Pricing • Sales, Use, VAT & GST calculations • Tax Decisions • Custom/Duties State / Local Tax • Apportionment Factors • State Depreciation • Other State Items • Transfer Pricing Property Taxes • Real & Personal Property • Class Lives • Tax Asset Books Impacted Financial Systems • G/L • A/P • A/R • Purchasing • Asset Management • Projects • Budgets • Expense Tracking • Treasury • Cash Management
  11. 11. Copyright © 2014 Deloitte Development LLC. All rights reserved.10 Value Maturity Independent country tax engines Portfolio of distinct tax technology tools Integrated enterprise and tax solutions Limited technology Domestic return focus • Spreadsheet software • No automation • No rules maintenance • Limited controls Global return focus • Single country tax apps • Some externally maintained rules • Limited automation Return and provision focus • Provisioning systems • Tax classification systems • Workflow & risk tools • Limited multi country systems Global Tax Process focus • Integrated tax and business process • Global data warehouse • Tax Portal • Enhanced data analysis for planning • Tax data leveraged for trend analytics Static Reactive Proactive Progressive Where are you today? Tax technology maturity mix
  12. 12. Copyright © 2014 Deloitte Development LLC. All rights reserved.11 Which of the following best describes your company’s tax focus around data analytics? • Our company is extremely focused on tax analytics and using core data to drive our corporate effectiveness and strategy • Our company is exploring the use of tax data analytics but I have not seen tangible efforts as of yet • Our company has not embraced the use of tax data analytics to any great extent • Unsure / not applicable Polling question #2
  13. 13. Analytics in the world of global talent / mobility
  14. 14. Copyright © 2014 Deloitte Development LLC. All rights reserved.13 The power of analytics may be realized immediately and continually by following through the analytics cycle: Applied analytics Applied Analytics Business Results Facts What data can be leveraged to understand the business and improve performance? Understanding What is currently happening or has happened related to our business and why? What should we do about it? Actions How do we look to the future and build analytic insights directly into business processes? Issues What business problem are you trying to solve?
  15. 15. Copyright © 2014 Deloitte Development LLC. All rights reserved.14 Innovative data sources Business value Customized segmentation analysis Unique opportunity to accelerate HR Analytics capability by leveraging proprietary workforce data with non-traditional external data to pinpoint risk and exposures. Data aggregation and data cleansing Advanced Analytics Evaluate and create variables Develop analytical models Score Each Location or Group/Cluster Non-traditional data sources unlock new insights into workforce populations Traditional internal data sources Non-traditional external individual or household level data sources Financial Data Lifestyle data Census data Household data Consumer data Personnel Records Claims and Safety History Operations Data Model Score / Estimated Value Outcome Low impact Outcomes LOW HIGH ActualResultantData High impact Outcomes ‘Middle of the Pack’ Outcomes Ø Identification of High Potentials “HIPOs” Ø Align global HR initiatives Ø Retention of HIPOs Analytics for the global talent agenda
  16. 16. Copyright © 2014 Deloitte Development LLC. All rights reserved.15 Business Talent Service Operational Financial Process Analytics applied to global mobility Measuring mobility effectiveness and return to the organization Mobility Centric Business and Strategy Centric Measures the extent to which mobility processes result in accuracy, timeliness and efficiencies Measures the cost of providing mobility related compensation and benefits to mobile employees under the global mobility program Measures the efficiency of global mobility program administration including the cost of internal and external administration resources Measures the quality of mobility service delivery to company, business and assignee Measures the impact of assignments on talent retention, and performance management Measure the contribution made to the business including growth and customer satisfaction Effectiveness Impact
  17. 17. Copyright © 2014 Deloitte Development LLC. All rights reserved.16 Global Mobility Analytics Framework Measures Hindsight Insight Foresight Examples Strategic alignment Business Measures the contribution made to the business including growth and customer satisfaction • Proportion of assignments meeting specific business goals • Increase or decrease by region, business or sponsor • Attributes of successful candidates Talent Measures the impact of assignments on talent retention, and performance management • Retention of assignees two years post assignment • Availability of suitable roles and promotion opportunities post assignment • Career planning • Attributes of successful assignments Effectiveness Service Measures the quality of mobility service delivery to company, business and assignee • Customer satisfaction • Mobility responsiveness • Areas requiring attention to enhance satisfaction • Impact of service on productivity • Interventions in individual assignments Operational Measures the efficiency of global mobility program administration including the cost of internal and external administration resources • Global Mobility staff turnover rates • Vendor performance against KPIs • How to improve retention • KPIs impact overall program • Re-alignment or training of mobility personnel Financial Measures the cost of providing mobility related compensation and benefits to mobile employees under the global mobility program • Total cost per assignment • Relo cost as part of total assignment cost • Accrued cost vs. actual • Large number of vendors servicing program • Vendor service review • Policy utilization Process Measures the extent to which mobility processes result in accuracy, timeliness and efficiencies • Number of inaccurate payments • Number of days to complete cost projection • Where delays are occurring in the process • Accuracy of assignment information provided • Implement regular status updates from vendors Data and analysis capabilities Strategicimpact Talent insights Turning data into foresight
  18. 18. Copyright © 2014 Deloitte Development LLC. All rights reserved.17 Applying analytics to manage tax risk: Business travelers
  19. 19. Copyright © 2014 Deloitte Development LLC. All rights reserved.18 Keys to success Develop a roadmap linked to questions, KPIs, value and resolves related issues, challenges and opportunities associated with achieving those objectives Value Driven Rationale Integrate the initiatives and projects required to address the data related issues, challenges and opportunities into a common structure for managing progress and measuring value across the enterprise Integrated Structure & Measurable Value A single shared end-state architecture and data governance framework underpins delivery of improved access to high quality information across the enterprise Coherent End- State The roadmap should be designed to evolve and will require regular updates and maintenance throughout the delivery program Living and Evolving Program
  20. 20. Copyright © 2014 Deloitte Development LLC. All rights reserved.19 What area do you see analytics most readily being applied to in your organization: • Process • Financial • Operations • Talent • Tax • Unsure / not applicable Polling question #3
  21. 21. A client perspective
  22. 22. Copyright © 2014 Deloitte Development LLC. All rights reserved.21 Context • MasterCard business model drives global business travel: it’s a lot more than the card in your pocket – Global clients with technology implementation and consulting services • C-suite understood the need to manage global business travel tax risks – Employer requirements and employee support • Mandate to drive monitoring and control – C-suite directive supported by internal audit requirements • Requirement to support the business without adverse impacts – No impact to the business traveler: leverage the data created by booking • Deliver value back to the business – Pro-active capabilities and consultation
  23. 23. Copyright © 2014 Deloitte Development LLC. All rights reserved.22 Data analytics: Global business travel • Data analytics applied to global business travel • On-going monitoring, analysis – Hindsight: assessing historic risks – Insight: analyzing current risks – Foresight: anticipating, understanding and consulting to manage risk Data Insight Volume of trips and travelers 10,000+ per year • Expected volume, analyzed with each data re-fresh Period of analysis 1/1/2012 – current date • Assessed past risks and improved future analysis Global business travelers at risk ~5% • Lower than expected: certain countries are higher risk Profile Projects require up to 30 people to deploy • Latin America – limited tax treaties • Corporate consequences
  24. 24. Copyright © 2014 Deloitte Development LLC. All rights reserved.23 When applying analytics to solve your crunchy questions, what do you consider to be the greatest asset within your organization? • Data availability, quality, access or other attributes • Strategically aligned to data driven decision making • Clarity on the business problem • The value proposition for applied analytics is clear and compelling • Unsure / not applicable Polling question #4
  25. 25. Question and answer
  26. 26. Copyright © 2014 Deloitte Development LLC. All rights reserved.25 Eligible viewers may now download CPE certificates. Click the CPE icon in the dock at the bottom of your screen.
  27. 27. Copyright © 2014 Deloitte Development LLC. All rights reserved.26 Contact information James Bowtell +1 (212) 436-4450 jbowtell@deloitte.com Forrest Danson +1 (312) 486-2685 fdanson@deloitte.com Nick Gonnella +1 (216) 589-5446 ngonnella@deloitte.com
  28. 28. Copyright © 2014 Deloitte Development LLC. All rights reserved.27 This presentation contains general information only and the respective speakers and their firms are not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any actions that may affect your business, you should consult a qualified professional advisor. The respective speakers and their firms shall not be responsible for any loss sustained by any person who relies on this presentation.
  29. 29. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2014 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
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