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Business Intelligence:Optimizing Data Across the Enterprise
 

Business Intelligence:Optimizing Data Across the Enterprise

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Financial professionals often have too little and too much information at the same time. What they need is the data to make a great business decision fast. Discover how the finance executive of 2011 ...

Financial professionals often have too little and too much information at the same time. What they need is the data to make a great business decision fast. Discover how the finance executive of 2011 sifts through an exponentially growing pile of internal and external data to determine the best way to integrate and channel information to the right decision makers, at the right time, while maintaining appropriate controls over critical enterprise data.

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    Business Intelligence:Optimizing Data Across the Enterprise Business Intelligence:Optimizing Data Across the Enterprise Presentation Transcript

    • Event Sponsors © 2011 Proformative. Proprietary and confidential
    • Welcome to ProformativeProformative is the largest and fastest growing online resource forsenior level corporate finance, treasury, and accounting professionals.An ad-free, noise-free community of more than 400,000 CFOs,Controllers, Treasurers and related professionalsA resource where corporate finance and related professionals excel intheir careers through: Uniquely valuable, online Peer Network Direct subject-matter-expert advice Valuable Features and ResourcesAll of it completely free and noise-freeCheck it out at www.proformative.com © 2011 Proformative. Proprietary and confidential
    • Learning ObjectiveAfter participating in this event you will be able to: • Define how to utilize mass data (internal and external) for better decision-making • Make better informed decisions by comparing your financial performance against relevant peers • Use leading indicators to anticipate changes in your companys environment • Reduce time and increase accuracy of recurring processes requiring external data, like currency translation © 2011 Proformative. Proprietary and confidential
    • THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALSThe Need for Speed: How to get data to makegreat business decisions – FastMichael HuzinecDirector, Business Analytics, Baker Tilly
    • Background • CPA, Finance & Accounting Degrees • Business Intelligence & Corporate Performance Management Field for over 15 years • Exciting times in this area as information is exploding and technology advances are presenting both opportunities & challenges2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Discussion Summary • The Data Explosion & New Types of Information • The Business Opportunities…and Challenges • The Role of Finance in Driving and Managing the Opportunities • Key Considerations & Creating an Information Strategy2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • The Data Tsunami Overwhelmed with too much data? “…40 exabytes (1,073,741,824 gigabytes) of data created in 2008…more than created in the previous 5,000 years combined…” IBM Institute for Value “Every 2 Days We Create As Much Information As We Did Up To 2003” Eric Schmidt from Google2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • An Explosion In Volume… …Variety, Velocity & Volatility • It’s only going to get worse…2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • The Growing Data Sources Core & Legacy Internal Data ERP Data + New Age External, Internal, Environmental & Market Data2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • The Information Challenge Is Only Getting Harder… Scope & Size of Data Sets Lack of Insight 1 in 3 managers frequently make decisions without information they need Volume of Digital Data Complexity, Connectedness & Growth Rate Inefficient Access 1 in 2 don’t have access to the information across their organization needed to do their jobs Variety of Information Volume of Information & Velocity of Decisions Inability to Predict 3 in 4 leaders say more predictive information would drive better decisions Velocity of Decision Making Source: IBM Institute for Business Value2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Leveraging Cloud & Other Technology to handle the Data “Tsunami” High Create True Competitive Advantage Increased in your market Competitive Relevance & • Maximize value from unlimited data AdvantageData Utilization Impact available • More data available to businesses of all sizes Status quo: Lower cost • Better tools, lower costs In line with and increase • Mobile technologies • Tools to crunch big data market speed • Memory, dasd, etc. virtually unlimited now Low • Need to get the decision makers the right info at the right time in the right High Low context Resource Use 2011 © Baker Tilly © 2011 Proformative. Proprietary and confidential Baker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • The business value of Leveraging Information for Better Decisions“Business analytics is the key toenabling organizations to turn oceans $166Bof data into actionable decisions for a opportunitycompetitive advantage.” 33% more 12x more 32% more Revenue EBITDA ROIC Profit Return on Invested Growth Capital Growth 12.5% 11.9% 9.4% 9.0% 7.3% 0.6% Businesses that can effectively leverage information to drive better decisions and understanding All other enterprises Source: IBM Global Business Services, The Global CFO Study 2010 Revenue, EBITDA Growth: 5 yr CAGR (’04-08); ROIC: 5 yr Avg (04-08) Data is provided for illustrative purposes and is not intended to be a guarantee of market opportunity.2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Three examples of how companies can leverage new information to make better decisions Integrated and flexible solutions are critical to creating competitive advantageManufacturing – Better Field Service & Production Decisions Leveraging machine diagnostic data to determine which parts of machines in the field will or are breaking down Proactively service machines Don’t ship product with potentially defective partsFinancial Services – Better Investment Decisions Tracking all available data on investment decisions React faster and make better investment decisions based on alerts and insight into what’s being saidMarketing– More targeted marketing spend & effectiveness monitoring ….All of these solutions Monitoring the effectiveness of events and campaigns focused on better Recruiting company advocates with social clout decisions impact the budgeting and planning processes. 2011 © Baker Tilly © 2011 Proformative. Proprietary and confidential Baker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Finance Challenges and OpportunitiesChallenges: Old FinanceToo transaction focused … What are the• Static Processes• Traditional Reporting takes up the questions you could majority of time• Manually intensive Ad-Hoc and what if answer with more analysis relevant information, in• Few integrated data sources available for analysis a timely manner, that• Little to no energy left for valued insights would make the biggest…Little time to help drive insights and impact?better decisions 2011 © Baker Tilly © 2011 Proformative. Proprietary and confidential Baker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Finance Challenges and OpportunitiesOpportunities: New FinanceApply the new technology capabilities to…• Integrate ERP, CRM, CPM, BI, social technology, other Ability to adjust plans external and internal data sources quickly to new• Focus on decisions which greatest impact information and organizational goals insights is quickly• Use of mobile devices (tablets, cell phones) becoming a must have• Leverage enterprise social technology• Use alert based technology to drive adjustments to for organizations to plans and forecasts compete effectivelyand ultimately drive improvements acrossyour organization… Consider…A finance organization that can harness their role as keepers ofthe data to continually support improving operations based onbetter information and decisions Source: IBM Global Business Services, The Global CFO Study 2010 Revenue, EBITDA Growth: 5 yr CAGR (’04-08); ROIC: 5 yr Avg (04-08) Data is provided for illustrative purposes and is not intended to be a guarantee of market opportunity.2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • How Finance Can Help Drive an Information Strategy and Better Business Results• Roles and Responsibilities • Define finance’s role in achieving business objectives and strategy • Understand roles and responsibilities for decisions• Information Requirements • Identify all information requirements • Push better data to the decision makers • Plan to leverage information that may be collected• Opportunities Roadmap • Decisions possible with better faster information • Use tactical quick hits with big opportunities • Shift focus to more value driven activities2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Key Considerations 1. Data available to all businesses sizes– CAN’T ignore it – companies are already competing and winning with it 2. Technology costs have plummeted and capabilities are now unlimited 3. Better information is available, quicker than ever before. 80% of new information will be non traditional formats 4. Leverage new technology platforms and previously unavailable access to new data sources 5. Leverage benchmarking data to assess areas for process improvement 6. Requires a structured way to think about / apply new capabilities for turning information into better decisions2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Creating an Information Strategy… Consider if you could leverage the unlimited amount of datato drive better and faster information into your organization to ultimately make better decisions Define Analytics Trusted Information Information Platform Information Strategy2011 © Baker Tilly © 2011 Proformative. Proprietary and confidentialBaker Tilly refers to Baker Tilly Virchow Krause, LLP an independently owned and managed member of Baker Tilly International.
    • Thank You© 2011 Proformative. Proprietary and confidential
    • Polling Question© 2011 Proformative. Proprietary and confidential
    • THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS Best Practices on External Drivers Alex Ortiz, Director of Product Marketing, Host Analytics
    • Agenda• 5 Best Practices• Historical Challenges and New Solutions• 3 Case Studies in Using External Drivers © 2011 Proformative. Proprietary and confidential
    • Best Practice #1:Put In An Early Warning System © 2011 Proformative. Proprietary and confidential
    • BP #2:Use Leading Indicators“Leading indicators extend the value of lagging indicators and provide amechanism for gaining competitive advantage. According to a Wharton researchstudy, companies that build and verify a set of leading indicators earn a 2.95%higher return on assets and a 5.14% higher return on equity. Yet, less than25% of companies attempt this.” - Michael Smith, Analyst Source: The Gartner Business Value Model: A Framework for Measuring Business Performance Publication Date: 26 March 2010 ID Number: G00175097 © 2011 Proformative. Proprietary and confidential
    • & Use Economic IndicatorsThat Influence Your Co.The ten components of The Conference Board Leading EconomicIndex® for the U.S. include:• Average weekly hours, manufacturing• Average weekly initial claims for unemployment insurance• Manufacturers’ new orders, consumer goods and materials• Index of supplier deliveries – vendor performance• Manufacturers new orders, nondefense capital goods• Building permits, new private housing units• Stock prices, 500 common stocks• Money supply, M2• Interest rate spread, 10-year Treasury bonds less federal funds• Index of consumer expectations © 2011 Proformative. Proprietary and confidential
    • BP #3:Compare Results Versus Peers 15% yr/yr rev. growth Better or worse than peers? Consider benchmarking with key financial ratios: • Revenue growth rates • R&D spend/sales • Operating margin © 2011 Proformative. Proprietary and confidential
    • BP #4: Eliminate Risks of Keying In DataExample: Tax accountant drops a minus sign… …causing a $2.6 billion error… …resulting in the President apologizing to shareholders that they would not get a $4.32/share distribution at end of year —From the Risks Digest Start Here: Target recurring manually processes, like monthly currency rate translation, for automation. © 2011 Proformative. Proprietary and confidential
    • BP #5:Use External Drivers For More Accurate ForecastsVentana Research: What would make your revenue forecasting process more accurate? © 2011 Proformative. Proprietary and confidential
    • Agenda• 5 Best Practices• Historical Challenges and New Solutions• 3 Case Studies in Using External Drivers © 2011 Proformative. Proprietary and confidential
    • Most Companies Lack Leading Indicators & Competitive BenchmarksQ: Please assess the amount of information you receive through reports in each of the following areas.80%85% Ventana Research © 2011 Proformative. Proprietary and confidential
    • 1980’s Technology Not BuiltFor External Drivers Industry Benchmarks Economic Currency Indicators Rates Built for: Leaving Out External Drivers Internal Data © 2011 Proformative. Proprietary and confidential
    • The Cloud Shows Us A Better Way Aggregation Integration © 2011 Proformative. Proprietary and confidential
    • The Cloud Is Built To Handle External Data 1st & 2nd Gen 3rd Gen Benefits + = Better Models Better Data Better Decisions © 2011 Proformative. Proprietary and confidential
    • Agenda• 5 Best Practices• Historical Challenges and New Solutions• 3 Case Studies in Using External Drivers © 2011 Proformative. Proprietary and confidential
    • 1. Better Planning With Indicators & BenchmarksChallenges• Unreliable 5-year financial and operational plansSolution• Real-time access to 1,300+ external indicators via the cloud• Easily add external drivers to their planning process• Dashboards highlight changes in external indicatorsBenefits• More accurate medium and long range plans• Spot new opportunities and avoid risks brewing outside their organization © 2011 Proformative. Proprietary and confidential
    • 2. Monitor Currency Rate ChangesChallenges• 50% of revenues outside the U.S.A.• Foreign currency exchange rate movements can have a material impact on resultsSolution• Updated exchange rates that can be seamlessly integrated into their cloud based Corporate Performance management application• US $, Canadian $, Euro €, UK £, China Yuan.Benefit• Now possible to easily monitor the impact of rate changes on both future forecasts and current consolidated results © 2011 Proformative. Proprietary and confidential
    • 3. Better Board Level Report For Decision MakingChallenges• Tedious searching for benchmarks• Manual data transfer risks• Merging benchmark data into board reportsSolution• SEC filings with 5 years of history w/ income statement, balance sheet, ratios• Consistent data structure• Complete reporting packageBenefit• Better decision making © 2011 Proformative. Proprietary and confidential
    • Thank You© 2011 Proformative. Proprietary and confidential
    • Polling Question© 2011 Proformative. Proprietary and confidential
    • Q&A© 2011 Proformative. Proprietary and confidential
    • We will send you a follow-up survey and wouldappreciate your feedback.Please join us at www.proformative.com to ask anyadditional questions you may have and to continuethis conversation with your peers and the expertsyou heard from today. If you have questions about CPE Credit please contact Tonya Walsh at twalsh@proformative.com © 2011 Proformative. Proprietary and confidential
    • Event Sponsors © 2011 Proformative. Proprietary and confidential