The document discusses several challenges facing CFOs and finance organizations, including: evolving regulatory requirements, differing accounting standards, fragmented data sources, and the need for improved performance management and reporting. It outlines key capabilities needed for finance organizations to succeed, such as speed, flexibility, alignment, and focus. Architectural complexity from multiple legacy systems, ERPs, and data silos also makes transforming finance organizations difficult. The document provides examples of how companies have implemented Teradata solutions to improve profitability analysis, transaction processing, and customer insights.

1. CFO challenges and solutions
November 23, 2010
Michael Ingemann
Director – CFO Services, EMEA

2. Teradata Confidential>
Agenda
• Today’s CFO Challenges
• Solving the Finance Organization Challenge
• Architectural Complexity Gets in the Way
• Examples from industries and customers
• Summary

3. Teradata Confidential>
Evolve finance to play a
more strategic advisory
role to the business
Establish consistent
enterprise performance
metrics
Quickly consolidate and
release accurate financial
results with leaner staffs
Consistently and confidently
comply with evolving
regulations (e.g., SOX, IFRS)
What makes this really complicated?
Enterprise
Performance
Management
Financial
Reporting and
Analysis
Operations
Reporting and
Analysis
Today’s Finance Organizations Must Focus on
Transforming Numerous Capabilities Simultaneously

4. Teradata Confidential>
Complication #1
• Companies must address legal,
statutory and tax requirements
• Differing/conflicting local and
regional requirements:
> US GAAP, UK GAAP, IAS, etc.
• Constantly changing accounting and
reporting standards
> Segment Reporting FAS 131/IAS 14
> Pooling & Goodwill FAS141/142
> Sarbanes-Oxley, Basel, Solvency…
Multiple Statutory Reporting Requirements
And it all must be accurate and auditable!

5. Teradata Confidential>
5th Annual Teradata Report on Enterprise Decision-Making, September 2006
Complication#2
• KPI/metrics
• Common definitions/calculations
• BI Governance
• Technology
• Logical data model
• Reporting tool
Decisions Require Greater Speed and Depth and
alignment with company strategic objectives!
And remember alignment to statutory reporting
requirements!

6. Teradata Confidential>
FRAGMENTED
DATA SOURCES
AD-HOC
PROCESS
MULTIPLE
ROLES
DISPARATE BI TOOLS AND
REPORTING SYSTEMS
DIFFERENT
METRICS
HIRING
QUALITY
EBITDA
BRAND
SERVICE
LEVELS
COMPANY
HEALTH
GOAL
PLAN
ANALYZE
REPORT
MODEL
CUSTOMER
SERVICE
MARKETING
EXECUTIVE
FINANCE
HUMAN
RESOURCES
Complication #3
Information System “Spaghetti”
Multiple
ERP
Multiple
POINT
APPLICATIONS
Multiple
LEGACY
APPLICATIONS
Multiple
SUPPLY
CHAIN
Multiple
DATA
WAREHOUSES
FINANCEPLANNINGOPERATIONS
?
?
?
?
?

7. Teradata Confidential>
Complication #4
IT and Finance Speak Different Languages
Finance:
• To much time is used to explain
the objective of the report, I am
requesting…
• Required reports are received +2
days after my request…
• Operational reports do not tally
to our statutory reporting…
• IT doesn’t not understand our
requirements…
IT:
• Are using Excel as the main
reporting engine => mgt relies on
“them” and/or Hyperion/Cognos
solutions…
• Which needs additional ETL
processes and maintenance from
IT…
• Don’t understand the meaning of
common definitions and
calculations, they make their own!
• Are doing “something” with data,
which make our data look “wrong”

8. Teradata Confidential>
Complication #5
Profitability is based on aggregated data…
Customer, Store, Brand, Product etc.
• Aggregated data
• No use of non-financial data
• Excel is the “engine”
• Poor traceability
• No drill-down capabilities
• Etc.

9. Teradata Confidential>
ERP is Not the Silver Bullet
• Optimized for Transaction Processing
> Enforces optimal, standard processes
> But poor for analytics, since company strategies differ to
achieve competitive advantage
• Limited Flexibility
> Changes are costly and time-consuming
> Inherent structured nature of ERP stalls
company’s incentive to evolve and
progress
• Limited View of the Business
> Multiple ERPs in the same company
thwart a unified view
> Data from key operational areas are
not contained within ERP

10. Teradata Confidential0 >
Agenda
• Today’s CFO Challenges
• Solving the Finance Organization Challenge
• Architectural Complexity Gets in the Way
• Examples from industries and customers
• Summary

11. Teradata Confidential1 >
• Established objectives
• Change mobilization
• Information sharing
• Accountability
• Strong data quality
• Integrated monitoring
• Timely information
• Weak operational links
• Static systems
• Departmental silos
• Relevant metrics
• Disparate systems
• Weak data architecture
• Data latency
• Focus
• Flexibility
• Alignment
• Forward looking
• Simplicity
• Sustainability
• Speed
Solving the Finance Organization Challenge
Requirements for Success Barriers to Overcome Capabilities Needed

12. Teradata Confidential2 >
Speed
Reduced Cycle Times and
Speed of Insight – Action
• Ability to track performance variances back to tactical and operational
drivers enabling tactical policy changes needed to improve performance
Flexibility
Rapid Adaptation through
Organizational Agility
Foundational Pillars
for Success
Best Practice Characteristics
• Changing reporting views can be implemented quickly and cost effectively
without impacting operational systems
• Multiple analytical views of the business are not hampered by external
reporting requirements
• Less time spent on data collection and validation and more time spent on
transacting and analyzing the business
• Simplified and faster close, consolidation and
reconciliation through dimensional views facilitating
a thinner chart of accounts
Alignment
Linked Goals, Objectives and
Actions Enterprise-Wide
Forward Looking
Anticipating the Future
Focus
Attention to Key Value Drivers
Sustainability
Evolves with the Business
Simplicity
Consolidate and Standardize
• Transformation of the planning process from an annual budgeting process
into a core, ongoing piece of the management process – includes rolling
plans and event based forecasting
• Seamless integration of operational and financial data to identify the few,
key drivers which management needs to concentrate upon to drive the
business
• Organizations focus upon a data management foundation that is
consistent across the enterprise and is flexible
• Architectures that scale effectively to support more users and data
• Information consistency is a key enabler in improving operational
efficiency through reduced complexity
• The cost of compliance is lower for companies that standardize
System Capabilities for Success

13. Teradata Confidential3 >
12.5x
Source: Hackett Book of Numbers 2010
Foundational Pillars
Next Generation Capabilities – Leading
Finance Organizations Find a Means
Enterprise Data Warehouse –
Foundation for Success
Speed
Reduced Cycle Times and
Speed of Insight – Action
Flexibility
Rapid Adaptation through
Organizational Agility
Alignment
Linked Goals, Objectives and
Actions Enterprise-Wide
Forward Looking
Anticipating the Future
Focus
Attention to Key Value Drivers
Sustainability
Evolves with the Business
Simplicity
Consolidate and Standardize
Percent of companies
with high use of data
warehousing/data marts
to support business
performance reporting,
2009
Percent of management
reports generated from a
centralized data repository,
2009

14. Teradata Confidential4 >
Agenda
• Today’s CFO Challenges
• Solving the Finance Organization Challenge
• Architectural Complexity Gets in the Way
• Examples from industries and customers
• Summary

15. Teradata Confidential5 >
Ad-Hoc
Tools and Processes
Multiple
Sources
Multiple
Purpose Built
Data Marts
Inconsistent
Data Sourcing
Disparate
Reports
Dependent End-users
and Decision Makers
Risk
Management
Regulatory
Reporting
Capital
Allocation
Profitability
Architectural Complexity Gets in the Way
Legacy
Systems
Other ERP
PeopleSoft
SAP
Oracle
Flat Files
Operational Systems Analytical Repositories Analytics and Reporting

16. Teradata Confidential6 >
Simplification, Standardisation, Consolidation
• Simplifying and standardizing finance architecture provides sustainable cost reduction
• Single version of the truth with consistency of data and metrics across the organization enables fact based, data
driven decisions fostering a culture of accountability
• Automation of data integration & validation frees finance to focus on analysis, commentary and business change
• Ability to drill to detail and connect the dots provides new insights and value enhancement opportunities
The optimal Technology platform for Profitability
analysis!
Source
Systems
General Ledger
AP FAARPurch PA
Consolidation
Financial Systems Calculation
Engines &
Applications
HR
HR
PR
Other
Planning Allocation
Profitability
Mktg
HR
IT
Legal
Billing
Ntwk
Cust
Mgmt
Sales
Data Warehouse
Based on Logical Data Model
Reporting
& Analytics
Financial Reporting
Management Reporting
Regulatory Reporting
Operational
Analytics
Tactical Info Delivery
Accounting
Hub
1101
1001
1011
Data Management
Accounting
Treatment Rules
Sub-Ledger
Next Generation Finance Infrastructure
Hierarchy
Management Rules Management
Customer Introduction & Life-Cycle Maintenance Proc ess
SalesLogistics
SalesRep/
DSDRep
Finance/
OverallData
Steward
System
Up load Cu stom ers
Upda te log istics
inf orm ation
Up date Custom er
Pr ofile I nfor matio n
Cr edit App rova l
Re qd?
Resolve
Du plicates
yes
Set St atus t o
Ch arg e
Up date Billing
Info rma tionno
Upda te Hier arch y
I nfor matio n
Upda te Trade
Chann el
Inf orm ation
Review Aler ts
Hier archy,
Cha nnel,
Addr ess info
com plete?
Duplicate
r esolut ion
re qd?
yes
no
Put cu stome r
st ate to
ACTIVE
Alert
resp ective r ole
yes
no
Workflow Management
Security
Management
Data Quality
& Governance
Master Data
Management
Metadata
Management

17. Teradata Confidential7 >
Agenda
• Today’s CFO Challenges
• Solving the Finance Organization Challenge
• Architectural Complexity Gets in the Way
• Examples from industries and customers
• Summary

18. Teradata Confidential8 >
When you have a best-of-breed platform…
RETAIL:
•Detailed profitability by
Customer/basket
•Total overview on daily sales
•Detailed insight into gross margin
components
BANKING:
•Enrich data at transactional level and
aggregate compliance reports on the fly
•Alignment between source systems by
LDMs
•Detailed profitability by Customer
MANUFACTORING:
•Detailed cost
controlling
TELCO:
•Detailed
profitability by
Customer
•Campaign
profitability
•Improved cash
flow!
•Total customer
view=> reduce
credit risk etc
•Compare actual costs with standard
cost rates on the lowest level of data
•Efficient QA analysis of raw materials
by supplier
•Efficient Sales & Operational planning!
•Combine customer behavior with
customer financials/profitability
•What are my subsidy costs on handsets
and how profitable are customers with
highest subsidy costs
•How efficient are my call centers?
•What are the elements of my service
costs across the company?

19. Teradata Confidential9 >
Major Mobile Services Company Streamlines Millions of
Transactions
Royalty & Residuals Management
Situation
World leading mobile device manufacturer &
network provider, whose core business strategy
is to deliver innovative services and media to
their customers through their devices, needed a
solution to manage millions of micro-transactions
for content and applications
Problem
Massive transaction volumes, coupled with
complex licensing agreements, created
challenges around revenue and cost recognition,
and royalty management associated with content
Solution
Deployed Teradata Royalty & Residuals
Management with Microgen to handle contract
data integration, reporting and royalty/revenue
share calculation. Moved client to an exception-
based, straight-through processing environment,
enhancing the existing and legacy systems
Impact
• Drove significant
operational cost savings
• Automated royalty
calculation, and delivered
rights usage validation &
enforcement
• Delivered full suite of
accounting and
reconciliation services
• Enabled robust business
monitoring and reporting
with full transparency into
the underlying transactions
and processes

20. Teradata Confidential0 >
Otto Group
Corporate Performance Management
Impact
• Integrated, detailed view of profitability
across all 13 German mail order
companies
> 400 profit and loss positions at
customer/item level refreshed daily
• Better able to identify/terminate
unproductive catalogues
> Supports goal of 1% annual
reduction in 1 B Euro catalog spend
• Reduced return rates and overstock
losses
> Discovered the late deliver date
which had high customer rejection
was shorter than expected
> Confirmed customer still wanted
before making late shipment
• Shifted budget dollars for on-line
products based upon click-stream
analysis of likely purchase conversion
Situation
• Leading mail catalog and online retailer, 123 major companies
in 20 countries (Germany HQ)
• Three segments: Retail operations, Financial Services, and
Services (Logistics and Travel)
• 2008-9 revenues of EUR 10.1B
• Approximately 49,500 employees
Problem
• Unable to monitor daily shifts in profitability by product by
customer by sales channel
> Daily view needed to determine resource allocation
decisions between on-line and catalogue channel
> Holistic view by customer and product unavailable – one
system tracked product only and the other customer only
Solution
• Process and Activity-Based Profitability Accounting system
(P.A.P.A.) built using
> Teradata Database
> Business Objects reports
> Thinking Networks for planning data management

21. Teradata Confidential1 >
Situation
• Top 10 Spanish savings bank
• New strategy focused on becoming a “customer-centric”
organization
• Management aimed to improve insight into customer
behavioral and analytical metrics
Problem
• Existing profitability methodologies could not perform detailed
“bottom-down” calculations of customer value
• Existing methodologies did not produce results trusted across
all major constituencies (e.g. Marketing, Finance)
• No way to tie operating costs to contribution to customer
profitability, at contract level
Solution
• Implemented Teradata system
• Teradata Value Analyzer application
• Teradata Relationship Manager application
Impact
• Detailed profitability
metrics for customer;
contracts; products
• Customer profitability
metrics added insight to
bank’s CRM
programs/initiatives
• A flexible platform to
implement corporate
strategy, i.e. corporate
objectives based on
client/product profitability
• Elimination of
inconsistencies in
corporate data:
economies of scale to
face the incoming
financial sector
complexity
Caixa Galicia Savings Bank
Customer Contract Profitability

22. Thank you!
Any comments/Questions
Michael Ingemann
Director – CFO Services
Europe, Middle East and Africa
Teradata division
Mobile: +45 20 84 78 88
Michael.ingemann@teradata.com
Teradata.com