The majority of enterprises recognize that data and analytics are transforming their businesses. But what about the Chief Financial Officer (CFO) and Finance? How are data and analytics changing their professions? To find out, the IBM Center for Applied Insights asked over 1,000 organizations across five industries about their Finance departments’ approach to data and analytics, cloud and engagement. Findings show that enterprises with analytically advanced Finance organizations reported better outcomes when it came to decision making, growth and agility.

1. © 2015 IBM Corporation
Breaking the data barrier
Lessons from analytically advanced Finance organizations
September 2015

2. © 2015 IBM Corporation
The majority of enterprises recognize that data and analytics are
transforming their businesses
2 © 2015 IBM Corporation
59%
say data and analytics are
transforming the way they work
But what about the chief
financial officer (CFO) and
Finance?
How are data and analytics
changing their professions?
Source: IBM Center for Applied Insights, “Inside the mind of Generation D: What it means to be data-rich and analytically driven”, 2014

3. © 2015 IBM Corporation
Data silos and inadequate tools are making it difficult for Finance to
tap the full potential of their enterprise’s data
Questions How important are each of the following areas of responsibility to your enterprise? How effective is your organization in the following areas?
Which of the following changes in finance technology will be most important for improving the finance function’s ability to deliver services effectively?
Sources: 1 Adapted from IBM Institute for Business Value “Pushing the frontiers: CFO insights from the Global C-suite Study”, 2014; 2 Hackett Group, “2014 World Class Finance
EPM Playbook”; 3 Adapted from CFO Research (Sponsored by SAP), “Shaping the Finance Function of Tomorrow: Finance’s Strategic Mandate and the Innovations that will help
them meet it”, February 2014
3
Lack of integrated
information is a top barrier
to Finance effectiveness1
Reliance on outmoded
tools2
71%
report
pervasive use of
spreadsheets
for strategic
planning
Top technology gaps for
Finance effectiveness3
35%
36%
43%
46%
Using mobile more
effectively
Increasing use of
cloud
Acquiring new
analytical tools
Better integrating
existing information
systems
IBM Confidential
42%
46%
58%
Optimize planning,
budgeting and
forcasting
Develop talent in the
finance organization
Drive integration of
information across the
enterprise

4. © 2015 IBM Corporation
ANALYTICAL CAPABILITY
MATURITY
n = 271 (Finance organizations with sophisticated analytics ); n= 818 (All other Finance organizations)
Source: Additional data from IBM Center for Applied Insights, “Inside the mind of Generation D: What it means to be data-rich and analytically driven”, 2014
Yet, one group of Finance organizations is overcoming these
challenges and significantly advancing their analytics capabilities
4 IBM Confidential
All other Finance
organizations:
Descriptive or predictive
analytics
75%
Most analytically
advanced Finance
organizations:
Prescriptive analytics
25%
Three primary
types of
analytics
1. Descriptive: A basic
form of analytics that
describes what
happened
2. Predictive: A more
advanced form of
analytics that forecasts
what may happen in
the future
3. Prescriptive: Sophisticated
analytics that shows the likely
result of a variety of options and
then recommends a course of
action to achieve a desired
outcome

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Questions: To what extent are you using each of the following as input to your company's analytic process? ‘already using’, ‘plan on using’, ‘not using’.
Please indicate which of the following capabilities and skill sets are being utilized in your business today.
Source: Additional data from IBM Center for Applied Insights, “Inside the mind of Generation D: What it means to be data-rich and analytically driven”, 2014
These Finance organizations are tapping a broad range of data
sources with a variety of sophisticated analytics
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Analytics techniques usedData sources used
TraditionalAdvanced
Analytically advanced
Finance organizations
All other Finance
organizations

6. © 2015 IBM Corporation
Question: To what extent are you using digital channels in the following ways? ‘already using’, ‘plan on using’, ‘not using’
Source: IBM Analytics; Additional data from IBM Center for Applied Insights, “Inside the mind of Generation D: What it means to be data-rich and analytically driven”, 2014
These analytically advanced Finance organizations are also adept at
using mobile and social to improve engagement and efficiency
6 IBM Confidential
Analytically advanced
Finance organizations
All other Finance
organizations
Use of digital channels

7. © 2015 IBM Corporation
Question: To what extent is your business deploying each of the following solutions in a cloud environment?
Source: Additional data from IBM Center for Applied Insights, “Inside the mind of Generation D: What it means to be data-rich and analytically driven”, 2014
Their enterprises are also relying more heavily on cloud – even for
critical transactional systems
7 IBM Confidential
Use of cloud
25%
36%
34%
36%
47%
48%
Transactional systems
Data storage
Web apps and solutions
Analytically advanced
Finance organizations
All other Finance
organizations

8. © 2015 IBM Corporation
Questions: To what extent do you agree or disagree that each of the following statements describes your enterprise where 1 is ‘do not agree at all’ and 5 is ‘agree completely’?
How effective is your enterprise in doing the following today? Please rate on a scale of 1 to 5, where 1 is 'not effective at all' and 5 is 'extremely effective’.
Source: Additional data from IBM Center for Applied Insights, “Inside the mind of Generation D: What it means to be data-rich and analytically driven”, 2014
The payoff from their approach to analytics, engagement and cloud
is reflected in the outcomes they report
8 IBM Confidential
Better decisions Growth Agility
+6%Share of wallet
points
+6%
3-year
customer
retention points
+6%
% of revenue
from digital
channels points
2.5x
High
workforce
productivity more likely
18%High operating
efficiency
more likely
+6%Perfect order
performance
points
+18%
Making the
optimal
decision
quickly points
+14%
Reacting to
new/disruptive
market
entrants
points
Analytically advanced Finance
organizations vs. Others
Analytically advanced Finance
organizations vs. Others
Analytically advanced Finance
organizations vs. Others

9. © 2015 IBM Corporation
The behaviors of analytically advanced Finance organizations
provide a blueprint for improving Finance effectiveness
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Establish an integrated
Finance data strategy,
using analytics to
prescribe action
Leverage mobile and
social to improve
information transparency
and accelerate decision
making
Tap into best-of-breed
cloud-based apps,
without major internal IT
investment