IBM Finance Forum - The Economic Balancing Act


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Sweden's economy has been on a roller coaster ride in recent years, first there was the fallout from the worst post-war global recession, and now we find ourselves travelling at full speed as growth rebounds with renewed vigour. That's all great news for now but in the meantime we have all learned some valuable lessons - with growth comes increased risk, we need to manage that, with growth comes increased cost, we need to manage that too and with growth comes ever greater opportunity both good and bad. How can business prepare for and anticipate that? What role does the finance organisation now play in keeping everything in blanace?

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IBM Finance Forum - The Economic Balancing Act

  1. 1. The Economic Balancing ActMatthew Stent, Nordic Market Development
  2. 2. strategy balanceharmony controlcommittment understanding planning agreementcreativity common goal team-work focus achievement target IBM Confdential May 2011
  3. 3. But what happens if the wind blows? 8% 6% 4% 2%Economic Growth 0% Sweden 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 -2% -4% -6% -8% Phase 1 Phase 2 Phase 3 Panic Opportunity What next? Increased control New regulations New normals? Cost cutting Increased workloads Back to old ways? Restriction Stressed to capacity Strive for growth? Resturcturing Progressive strategy How to differentiate? Casualties New entrants Smarter thinking?Source: IBM 2011 IBM Confdential May 2011
  4. 4. Calmer times? Hardly....• Recovery has largely happened• What is the new norm?• What are businesses investing in now to respond to future challenges? ”We shall have no better conditions in the future if we are satisfied with all those which we have at present.” Thomas Edison IBM Confdential May 2011
  5. 5. Businesses continue to focus on cost and efficiency withstrong emphasis on customers, insight and collaboration 2011’s Most Critical Business Priorities Cost reduction / improved efficiency 76% Improved customer service 73% Increased employee productivity 70% New ways to reach customers 67% Optimizing key business processes 62%Increased insights for better decision making 62% Increased flexibility / nimble enterprise 60% Collaboration 58% (Scale 0-10 top 8,9,10 combined) Efficiency Focus Innovation Focus Source: IBM 2011 IBM Confdential May 2011
  6. 6. And whats important to CFO’s? IBM Confdential May 2011
  7. 7. 70% of firms are implementing analytics solutions toimprove business insights and customer knowledge A deep-dive into business analytics With the primary* benefit areas and intelligence shows the current identified as… stage of implementation… ImprovePlanned, but Investment 30% not started Decisions Improve Efficiency & 11% SupportStarted, but Organizational Expansion not 40% Effectiveness Strategies completed 37% 15%Completed / EnhanceMaintaining 20% Customer Targeting Improve No plans to Customer Insight 16% implement 10% 21%Source: IBM 2011 IBM Confdential May 2011
  8. 8. Where does the decision making power overtechnology lie? CFO involvement in 77% of all technology decisions IBM Confdential May 2011
  9. 9. The role and responsibility of finance chiefs isalso widening dramatically Information Technology 43 Strategy/Business Development 41 Human Resources 39 Operations/Production 38 Risk 37 Customer Service 37 Procurement 35 Marketing/sales 33 Research/development 30 Supply-chain Management 25 Legal 24 Sustainability 23 Source: Accenture CFO Study 2011 IBM Confdential May 2011
  10. 10. And its unlikely to slow down.....Source: Gartner 2011 Source: KPMG March 2011 IBM Confdential May 2011
  11. 11. How prepared is your business for when thewind next blows? or IBM Confdential May 2011