A recent IBM study of 337 CFOs and senior finance executives found that about 90% are implementing analytics solutions. However, analytics adoption is happening in pockets and isn’t pervasive across finance activities. With investment in analytics poised to double in the near term, how can Finance better capitalize on these new capabilities? To answer that question, we looked at the most effective Finance organizations and learned three important lessons from their success.

1. © 2015 IBM Corporation
Capitalizing on analytics in finance:
Creating trusted insights for the enterprise
October 2015

2. © 2015 IBM Corporation
Finance organizations are clearly interested and investing in analytics
Question: In the last 5 years, has your organization implemented any analytics solutions (i.e., software, services) to support typical financial processes?
Question: In the next 5 years, does your organization plan to implement any analytics solutions (i.e., software, services) to support typical financial processes?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
2 IBM Confidential
9 in 10
finance organizations have
implemented analytics solutions
to support their financial processes
in the last five years
Even more
finance organizations expect to
implement analytics solutions
to support their financial processes
in the next five years

3. © 2015 IBM Corporation
However, adoption is happening in pockets and is not pervasive
across Finance activities
Question: Please indicate whether you have adopted analytics for the following finance related activities?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
3 IBM Confidential
Management reporting
Profitability/margin analysis
Financial planning
Expense management
Revenue forecasting
Procurement
Cash forecasting
Order-to-cash
Finance process optimization
Mergers and acquisitions
Have implemented analytics

4. © 2015 IBM Corporation
And Finance organizations are still primarily using analytics to look
backward, rather than to anticipate and prescribe future actions
Question: Please indicate, by percentage (totaling 100%), the amount each type of analytics is currently used to support your financial processes?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
4 IBM Confidential
Type of analytics currently used to support
financial processes
Predictive PrescriptiveDescriptive

5. © 2015 IBM Corporation
With investment in analytics poised to double in the near term, how
can Finance better capitalize on these new capabilities?
Question: Please indicate whether you have adopted or will adopt analytics for the following finance related activities?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
5 IBM Confidential
Adoption of analytics
Already
implemented
Will implement
within the next
2 years
Management reporting
Profitability/margin analysis
Financial planning
Expense management
Revenue forecasting
Procurement
Cash forecasting
Order-to-cash
Finance process optimization
Mergers and acquisitions

6. © 2015 IBM Corporation
To answer that question, we looked at the most effective Finance
organizations
6
Question: How effective is your Finance organization in the following areas? 1 Least effective to 5 Most effective
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
IBM Confidential
On average, these leaders were
most effective across the 10
finance-focused activities holistically
Cash forecasting
Expense
management
Finance process
optimization
Financial planning
Management
reporting
All others
72%
Most effective
Finance
organizations
28%
Mergers and
acquisitions
Order-to-cash
Procurement
Profitability/
margin analysis
Revenue forecasting

7. © 2015 IBM Corporation
Why pay attention to enterprises with the most effective Finance
organizations? They report better financial performance…
Question: Please indicate how the revenue growth of your enterprise (or budget growth for public sector) compares to that of your industry peers over the last 3 years.
1 We significantly underperform industry to 5 We significantly outperform industry
Question: Please indicate how your enterprise’s profitability (or efficiency for public sector) compares to that of your industry peers over the past 3 years.
1 We significantly underperform industry to 5 We significantly outperform industry
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
7 IBM Confidential
Outperform on revenue growth
1.4X more
Outperform on profitability
1.7X more
Most effective Finance
organizations
All others
Most effective Finance
organizations
All others

8. © 2015 IBM Corporation
And the most effective Finance organizations are spreading that
effectiveness across the rest of the enterprise
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Effectiveness at activities outside of Finance
2.6X
2.0X
2.3X
2.3X
2.0X
2.3X
2.5X
Most effective
Finance
organizations
All others
Supply chain analytics
Customer analytics
Enterprise risk
management
Pricing and promotion
optimization
Fraud, waste and abuse
New products/services
identification
Workforce analytics
Question: How effective is your Finance organization in the following areas? 1 Least effective to 5 Most effective
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015

9. © 2015 IBM Corporation
So what are the most effective Finance organizations doing
differently?
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Investing in analytics
more consistently
across their business
and applying
advanced analytics
Collaborating
across the C-suite
regarding analytics
Utilizing analytical
applications and cloud
to deliver their analytics

10. © 2015 IBM Corporation
These organizations are ahead in implementing analytics more
consistently across their business
Question: Please indicate whether you have adopted or will adopt analytics for the following finance related activities?
Question: Please indicate whether you have adopted or will adopt analytics for each of the following activities?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
10 IBM Confidential
Already implemented analytics
Beyond Finance
Already implemented analytics
Finance-focused activities
Most effective Finance organizations
1.3X
1.4X
1.2X
1.3X
1.3X
2.2X
1.6X
2.1X
1.6X
1.3X
1.9X
1.8X
1.8X
2.1X
1.9X
1.4X
All others
Customer analytics
Sales performance
Pricing and promotion
optimization
Enterprise risk
management
Supply chain analytics
Fraud, waste and abuse
Workforce analytics
New products/services
identification
Financial planning
Revenue forecasting
Profitability/margin
analysis
Expense
management
Procurement
Finance process
optimization
Order-to-cash
Mergers and
acquisitions

11. © 2015 IBM Corporation
And compared to their peers, they lean more heavily on predictive
and prescriptive analytics
Question: Please indicate, by percentage (totaling 100%), the amount each type of analytics is currently used to support your financial processes?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
11 IBM Confidential
Type of analytics currently used to support
financial processes
1.3X more
Predictive Prescriptive
Predictive Prescriptive
Most effective Finance
organizations
All others
Descriptive
Descriptive

12. © 2015 IBM Corporation
The most effective Finance organizations also have CFOs who
collaborate on analytics more closely with their C-suite peers
Question: How closely do you collaborate with each of the following roles – in terms of analytics? 1 No collaboration at all to 5 Very close collaboration
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
12 IBM Confidential
Finance collaboration across the C-suite on analytics
Most effective
Finance
organizations
All others
1.4X
2.2X
1.5X
1.5X
2.1X
Chief Information Officer
(CIO)
Chief Marketing Officer
(CMO)
Chief Supply Chain Officer
(CSCO)
Chief Sales Officer
(CSO)
Chief Human Resources
Officer (CHRO)

13. © 2015 IBM Corporation
These organizations are also heavier users of analytical tools and
are less dependent on spreadsheets compared to their peers
Note: 1% of All others selected Other for delivery
Question: For the activities where you have already (or soon will) have implemented analytics, please indicate how those analytics are being conducted..
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
13 IBM Confidential
Spreadsheet Analytical application ERP
Enterprise performance
management
Cash forecasting
Financial planning
Management reporting
Profitability/margin analysis
Revenue forecasting
Cost and efficiency management
Expense management
Finance process optimization
Procurement
Revenue management
Mergers and acquisitions
Order-to-cash
Analytics delivery for finance-focused activities
22%
28%
49%
56%
29%
16%
25%
11%
22%
11%
52%
61%
23%
28%
44%
73% 16%
33%
Most effective Finance organizations All others

14. © 2015 IBM Corporation
And when it comes to the delivery platform for analytics, the most
effective Finance organizations are ahead on use of cloud
Question: Approximately what percentage of your finance analytics are delivered via cloud solutions?
Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
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Finance analytics delivered via cloud solutions
20%
All Others
33%
Most effective Finance
organizations
65%more

15. © 2015 IBM Corporation
Analytics use is rising among Finance organizations. Where should
you focus to capitalize on these new capabilities?
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Move to advanced
tools and forward-
looking analyses
Move away from relying on spreadsheets or manual
processes to gather data
Decide where you can be more predictive and prescriptive
Be strategic and
pervasive with
your approach
Build the business case for analytics within finance and
across the organization and determine the key business
issues you are trying to address
Establish an integrated data strategy (both financial and
operational data)
Collaborate closely
with C-suite peers
Identify which leaders you must work with to advance
such analytics and share information and insights across
the enterprise
Focus on specific areas of collaboration
(e.g., risk, customer, workforce, sales, supply chain, etc.)

16. © 2015 IBM Corporation
APPENDIX
16 IBM Confidential

17. © 2015 IBM Corporation
We surveyed 337 Finance executives / decision makers to
understand their usage and adoption of analytics
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Source: IBM Center for Applied Insights survey of 337 Finance executives across industries, July 2015
IBM Confidential