Transforming Finance With AnalyticsPresentation Transcript
Business Intelligence Creates The New Role for Finance: Strategic Advisors
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CBOS combines powerful informationtechnology tools with organizationaldata, analytics and financial analysisto optimize business decisions.
TDWI Tableau SoftwareCFO Magazine SAS InstituteWayne Eckerson IBMTom Davenport B-eye NetworkGartner Group Forrester ResearchIDC Wikipedia
Business Intelligence (BI) .
Common functions of business intelligence technologies are reporting, online analyticalBI technologies provide historical, processing, analytics, datacurrent and predictive views of mining, process mining, complexbusiness operations. event processing, business performance management, benchmarking, text mining and predictive analytics.
Historically, the financedepartment has:• kept the books• managed the budget• and looked after cash, capital, taxes, treasury, and statutory reporting
Finance needs to move beyond datacollection and reporting to reveal trends,patterns, and insights so it can advisethe business how best to improveoperations, optimize performance, andadapt to the changing businessconditions.
Finance can be a powerful agent of organizational change.That’s because its sits at the information core of organizations. It collects financial and non-financial data from every business unit on a regular basis and consolidates that information.
The applications that run yourbusiness on a day to day basis:• General Ledger• Order Entry• Procurement• CRM• Weblogs• Inventory Management Systems
Data Integration Data Tools Dashboard, PredictiveWarehouse •ETL Scorecards AnalyticsData Mart •Data Quality •Cleansing
Data VisualizationPublishing to the Dataweb and mobile Exploration without IT Personal Data Dashboards Dictionary
Real life BI EnvironmentAccounting and Operations System Tableau Server Desktop SQL Server Repository / Data Dictionary (Integration Services, Analytical Services, Reporting)Project Plans WebSpreadsheets Established data flow Future planned data iPad flow Desktop
Single Version of Goal: TruthStandardizing the General Building an enterprise Ledger/Chart of data warehouse Accounts Challenges Inconsistencies of Terminology Across Merging General the Organization Inaccurate data Inconsistencies in dataLedger with other •Define; Customer, Revenue, Expense and Profit data:
Mobile BICloud-based BIBI enabled ApplicationsBig DataIn some cases… the future is now!
Financial ReportsPlans and BudgetsAnalysis and ModelsPredictionsProfitability and Risk Analysis360 degree viewsSub Area Metrics
Getting a sponsor, finding and It starts at the top Understand the costunderstanding the pain Funding and Evangelizing the BI CFO certified metrics Accurate data lineage initiative Finance IT BI business partnership Change management •BI Center of Excellence with member from across the organization
SpreadmartsSpreadsheets are a personal productivity tool not an enterpriseinformation delivery system.Human data warehousesSo flexible and powerful that it has long been the go toolreporting tool. Classic example Excel vs. Crystal Reports
The finance department at AT&TMobility has benefitedfrom having a single version of truth delivered via a Teradata enterprise data warehouse .
“If you lost 1% of your AT&T Mobility’s data customers yesterday, warehouse calculates wouldn’t you like tothe profitability of all 80 know today who they million subscribers are and whether there every day. might a common theme behind the churn? With the data warehouse, we can Having access to a pinpoint those unified set of data has subscribers and work changed the financeproactively to win them department’sback,” says a director of relationship with thefinancial analysis at the business. company.
Not the right level of detail (Finance’s tendency is to categorizeand summarize)Accounting Cycles are “after the fact”Data not synchronized with company business cycles can bemisleading.Timeliness of data (Too little Too late)
Get a sponsorFind and understand the painPartner with a BI TeamHomogenize the general ledger and chart of accountsBuild an enterprise data warehouseDeliver self-service BI toolsDeliver timely and detailed dataCoexist with ExcelCreate an ad hoc environment for financial analysisLeverage the data warehouse to support other financialapplications.