The IBM Finance Transformation team recently held an online client discussion where more than twenty finance and business services leaders from leading UK businesses came together to discuss re-inventing business services in the post-COVID world.

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Flavio Sciutti
VP of Finance and CFO
IBM UK & Ireland
London
June 9th 2020
Finance and Business Services
leadership round table
The New Normal: Re-inventing business
services in the post-COVID world.
© 2020 IBM Corporation

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Agenda
1. Introduction & Objectives
2. How did IBM address the immediate COVID challenge?
3. What do we prioritize in the next 30 days and next 3 months?
4. What will change post COVID (later)?
5. IBM PoV & breakout
6. Feedback and questions

3. 3 IBM Services©2019 IBM Corporation 18 June 2020
How IBM UKI Finance is Managing the Disruption
Now Soon LaterSurvival
• Focus on risk and cash
• Regular/daily crisis meetings
• Links to government, and suppliers
• Manage staff morale/focus
• Controls and risk impact
• Focus on underlying data to pre-empt
problems
Timeline
Impact on key
financial activity:
Impact on Quarter
end
Impact on DSO /
DPO

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How did we make it happen?
Jan
29th
Feb 3rd
Feb
16th
Feb
28th
Mar
2nd
Mar
13th
Mar
17th
Mar
19th
Mar
22nd
Mar
23rd
Mar
27th
Activated BCP in
Dalian, initiated WFH
approvals & testing
21 of the 60
accounts ready
for WFH in Dalian
Infected person
found living near IBM
office, 30 employees
under observation
48 of the 60 accounts
ready for WFH, all
employees quarantine
are released
Work at office
resumes in batches
under strict controls
Dalian de-actives
BCP!
▪ WFH @ 25%
▪ 47 clients yet to
authorize
▪ WFH @ 45%
▪ 6 clients yet to
authorize
▪ WFH @ 64%
▪ 3 clients yet to
authorize
▪ WFH @ 99%
▪ 3 clients yet to
authorize
▪ WFH @ 99%
▪ 1 client unable to move
to WFH due to
regulatory restrictions
Phase II
~300 Clients 40 Countries 60 Facilities

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Focus on Cash flow and Risk Management
Now
5 to 30 Days
Soon
1 to 3 Months
Later
3 to 12 Months
Survival
Day 0 to 5
degradation in delivery
capacity or Service Level
Agreements of Clients’
operation during this crisis.
Enabled by:
• Financial insight into the challenges faced
by our clients due to COVID-19
• Highly customized commercial payment
terms
• Client can invest in critical infrastructure
and transformation projects such as:
• Predictive analytics
• Predictive cash management
• Automation and AI
Keeping the lights on….
1. Clients focussing on cash flow in all sectors –
changing purchasing behaviour
2. Cash flow becoming a strategic priority in
‘cash rich’ industries such as Oil & Gas and
Banking
a) Oil & Gas – price of oil
b) Building Society – mortgage payment
holidays
3. Cost Reduction & Financial Control – large UK
bank

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Focus on Supply Chain and Cost
Now
5 to 30 Days
Soon
1 to 3 Months
Later
3 to 12 Months
Survival
Day 0 to 5
degradation in delivery
capacity or Service Level
Agreements of Clients’
operation during this crisis.
Enabled by:
• Employee engagement for remote
working - change management
• Extreme automation
• Customer, government, and supplier
relations
• Predictive analytics
• Focus on KPIs
• Trade payable financing
• Predictive cash management
Keeping the lights on….
1. Protect employees and move to new
ways of working
2. Stabilize operations and assure supply
of critical product
3. Rapid cost take out through automation
4. Risk analysis (worst/best case) across
key metrics - particularly cash
5. Immediate channel expansion

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Most corporations will NOT be returning to the old normal-
use the opportunity to address long term changes to your Operating Model
Focusing on Smarter Operations, Intelligent Workflows and Data Insights
Now
5 to 30 Days
Soon
1 to 3 Months
Later
3 to 12 Months
Survival
Day 0 to 5
degradation in delivery
capacity or Service Level
Agreements of Clients’
operation during this crisis.
Enabled by:
• Smarter operations – new skills, agile
ways of working
• Intelligent workflows – re-imagined
E2E processes, exponential
technologies
• Data- single source of truth, actionable
insights
Re-invent
1. Assess changes to core business
2. Implement structural solutions,
scalable and flexible
3. Develop differentiated capability and
low cost to serve
4. High focus on financial metrics and
leveraging data to identify risks early
5. Building resiliency into rebuilt finance
and supply chain

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What are you currently doing to address the
crisis? What are your challenge areas?
What do you see as the biggest challenge for you
over the next 12 months?
Aim of this session is to present back one or two
key challenges for discussion with the wider
group
Breakout discussion

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Feedback

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IBM Team
Sameer Jalundhwala
Executive Partner, Finance
Practice Leader, Europe
sameer.jal@uk.ibm.com
Flavio Sciutti
Vice President Finance,
CFO UK&I
Flavio.Sciutti@ibm.com
Noel Cullen
Associate Partner,
Finance Transformation
Noel.Cullen@ibm.com
Miles Quinton
Vice President,
Global Business Services
miles.quinton@uk.ibm.com
Ed Robinson
Director IGF UKI
IBM Global Financing
EDROBINS@uk.ibm.com
Angela Preece
Process transformation SME,
Cognitive Process Re-Engineering
ANGELA.PREECE@uk.ibm.com
Neel Thakrar
Finance Transformation Consultant
Neel.Thakrar1@ibm.com
Rupert Clegg
Associate Partner,
Finance Transformation
rupert.clegg@uk.ibm.com

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11© 2020 IBM Corporation