2. FACING CHALLENGES?
Poor Translation of Corporate Strategies to Budgets and Targets
Poor Alignment of Resources to Corporate Objectives
The Process or Performance Metrics are not Understood
Lack of Consensus, Commitment, and Shared Responsibility
Integration of Multiple Plans is Cumbersome
Financial Reports Do Not Lead to Management Action
Targets are Perceived as Being Unrealistic
Information is Inaccurate, Particularly Cost and Revenue
Information is Poorly Communicated and/or Difficult to Locate
Process Consumes Too Many Resources
Poor Integration Between One Year Budget and Long Term Plan
Process Focused on Products Rather Than Markets/customers
Process Unable to Perform Scenario Analysis
3. NEXT ON THE CEO’S AGENDA?
Shared Services & ERP
Improved efficiency + reduced cost of
Transaction processing…
Efficiency + Cost of Budgeting + Management Reporting
is Unchanged
4. CURRENT PERFORMANCE MANAGEMENT
FAILING
Low frequency and participation
Deteriorating relevance of results
Low-value activities dominate
“The budget is the bane of corporate
America.
It should never have existed.”
Jack Welch, CEO of GE
Fortune Magazine (May 1995)
5. CURRENT PERFORMANCE MANAGEMENT
FAILING Do I have the right
demand forecast?
Human Operations
Product
Resources
Development
Targets at risk?; Where
to trim?
Does my pipeline cover
Customer my goals?
Service
Sales Finance
Marketing
6. TRANSFORMING PERFORMANCE
MANAGEMENT BETTER
INFORMATION, FASTER RESPONSE
Operations
Human Product
Resources Development
IT
Customer
Service
Sales Finance
Marketing
Common planning, reporting platform
Linked finance and operations
Data, process, metrics standards
Advanced analytics
High participation, scale, performance
7. TRANSFORMING PERFORMANCE
MANAGEMENT GAIN TIME, CONTROL AND
CONFIDENCE
Operations
Human
Product
Resources
Development
Drivers IT
Customer
Service
Sales
Finance
Marketing
8. THREE QUESTIONS THAT DRIVE PERFORMANCE
What should
How are we doing? Why?
we be doing?
9. THREE QUESTIONS THAT DRIVE PERFORMANCE
FINANCE
MARKETING PRODUCT
DEVELOPMENT
How are we doing? Why?
What should
we be doing?
SALES OPERATIONS
CUSTOMER HR
SERVICE
IT
10. HOW ANSWERS ARE OFTEN FOUND
INTERNAL DATA
How are we HR
doing? How are we
doing?
CRM
ERP
Why? Why?
CMO MARKETING
EXTERNAL DATA
RETAIL
What should
What should we be doing? TBS/DLB
we be doing?
AC NEILSON
11. FINANCIAL PERFORMANCE MANAGEMENT CHALLENGES
CFO Spreadsheets Failing
“there have been well-documented cases of
errors and losses resulting from spreadsheet
manipulation errors and accidents.”
Source: Gartner, August 2007
Disparate Systems
“Average finance organizations operate 11
finance systems per billion dollars of revenue.”
Source: Hackett Group, 2007
Business Risks
“62 percent of enterprises … encountered a
major risk event … 42 percent of these
Tax / Controller FP & A enterprises were not well prepared for the
Treasury event.”
Source: IBM Global CFO Study 2008
12. CHALLENGES WITH PLANS AND FORECASTS
PLANS & FORECASTS
FP & A Infrequent Unreliable
Forecasts
How long does the Weak Top-Down
budgeting process & Bottom-up
take? Coordination
Are you using
spreadsheets to
manage the planning
process?
Disconnected
Are your budgets and Plans
forecasts as reliable
for decision-making PAIN: Inability to deliver timely, reliable forecasts &
as you would like? plans that align operational tactics with financial
targets
14. SPREAD –SHEET BASED PLANNING &
REPORTING- LIMITATIONS
Time consuming
Data movement from one system to another
Duplication of efforts
Multiple of work-sheets and files to work with
Complex
Large number of formulae and macros known only to the individuals
who have created them
Inflexible
Difficult, time-consuming for making changes
Not Integrated
Stand-alone spreadsheets
16. PLANNING & BUDGETING
Develop long-range, financial, cost center, and
headcount plans, forecasts, and budgets across the
enterprise
Gain consensus and consolidate top-down and
bottom-up operational plans with financial plans
Increase accountability across the organization
through a high-participation planning process
Support timely updates of forecasts to address
changing market influences, new initiatives, and
competitive factors
17. THE PLANNING PROCESS: KEY ISSUES
The main processes within Budgeting and Planning include…
Corporate Typical Process Gaps
vision, strategic
Long-range objectives
and targets
3 - 5 years
by quarter Strategic Planning
Annual Budgeting Cycle
(corporate, business units, departments)
1 year Operating Capital
by month Budgets Budgets
Financial Forecasts
(Departments or Cost Centers)
1 month Production Forecasts/Schedules
by day (Production/Manufacturing)
18. BEST PRACTICES IN PLANNING
TOP DOWN / BOTTOM UP RECONCILIATION
WHAT IF
Reconciliation Benefits TOP
Realistic & executable plans DOWN
Involvement in the process
Shared understanding of business
Reconciliation
economics & Agreement
Continuous learning
Model that adapts to changing
market conditions BOTTOM
UP
WHAT IS
19. BEST PRACTICES IN PLANNING -
COLLABORATION
Increased number of value chain participants requires increased
collaboration.
Increased & Broader Input
Ownership of targets
More alliances and outsourcing
agreements
High Predictability
Optimize use of resources
Increased focus on core competency Low Predictability
External
Contributors
Buy-in of strategy •Customers
•Centralized •100% of •Partners
•Top-down only managers •Suppliers
(Traditional (Enterprise (X-tra
Planning) Planning) Planning)
20. BEYOND BUDGETING
Budgeting Planning
Historical based Future based
Incremental (+5%) Driver-based
Annual Continuous
Control expenses Drive the business
Finance driven Anyone can drive
By the few for the By the many for the
many many
21. A GAME-CHANGING EVENT
Cognos
Spreadsheets
Visibility Cycle time
Control and versioning Process
Green-Line
Plan and forecast End-user
drivers experience
Accountability Compliance
22. OUR CORPORATE PERFORMANCE
MANAGEMENT APPROACH
Our framework for CPM contains 3 primary components:
Organization Process
Alignment and including
Strategic
Accountability Reward Planning,
Results Planning
Budgeting &
Balanced Score
Forecasting
carding
Monitor
Individual Business
Results Planning
Phase 2
Phase 1
Shareholder
Value
Analysis Budgeting
Reporting & Performance
Performance Measurement Forecasting
Measurement Reporting
(Financial &
Operational)
23. OUR CAPABILITIES IN ENTERPRISE
PERFORMANCE MANAGEMENT
New Models Integrate Planning, Target Setting, Budgeting, Forecasting, and Performance
Management Into a Single Process.
Strategic Planning
Performance
Target Setting Management
Budget Creation Forecasting
24. OUR CAPABILITIES AND OFFERING IN
NEW AREAS
Top down and Bottom up Management Reporting with
Planning with budgeting
KPI and Accountability
Scenario and version Analysis Statements
Work flow control Balanced Scorecard with
Activity Management
Predective Analysis
Rolling Forecasts
Profitability and Cost
Actuals v Budgets analysis Management
We Believe In Process to Technology Consulting.
IBM COGNOS, other best of the breed products to Meet the Above Requirements.
25. THE TEAM
20 Plus team with consultants being CA and/or MBA
Experienced Senior Management Team with 35+
years in this arena
2 Million hours of pooled expertise on the
technologies
A consulting process defining the road map from
Planning to Scorecard for any organization
26. TECHNOLOGY EXPERTISE
All our Consultants are IBM Certified
Our senior team are authorised IBM Cognos trainers
All versions of Cognos BI to the latest
Cognos TM1
Cognos Planning
Cognos Controller
28. THE 2011 BI SURVEY 10 RANKED IBM
COGNOS TM1…
• Goal achievement • Goal achievement
• Self-service • Self-service
• Suitability
The Planning Peer Group
The Database Peer Group
BARC BI Survey 10
BARC BI Survey 10
Cognos TM1 10 PART OF COGNOS ENTERPRISE
• Improved, flexible solution design environment
• Easily spans analytics and planning requirements
• Unrivaled performance at high user and data scale
29. COGNOS ENTERPRISE PERFORMANCE
MANAGEMENT: A REVOLUTION WITH TM1 10
Performance Reporting and Scorecarding
Analytics
Customer
Service Product Human
Marketing
Development Resources
Sales Operations Finance IT
Expense Planning Workforce Capital Planning Strategic Profitability
& Control Planning Finance Modeling
Enterprise Planning
and Analysis
High Performance Platform
30. FLEXIBLE SOLUTION DESIGN ENVIRONMENT
Simplifies design for performance
management solutions
Empowers MORE planning application
development, more prototyping
Easily wires Cognos Insight “personal
analysis” into enterprise solutions
Spans
Address Broad Range of Performance Management Challenges
31. FAST, EASY MODELING
Guided modeling steps
– define dimensions
– build cubes
– define rules
– easy linking paradigm
Widespread use of drag and
drop and visual composition
Easy transfer of applications
from development to test to
production environments
Empowering more users to model, reduced time to value
32. USER EXPERIENCE FLEXIBILITY
Excel-Based Desktop Managed Collaboration
Customer Product Human
Service Sales Marketing Operations Development Finance Resources IT
Span All Users and User Experience Needs
33. PROVEN ANALYTICS ENGINE
Distributed Cognos TM1 Server
–Improved WAN performance
–Better user scale
Built on the high-
performance, stable 9.5.2 Server
Engine
First-in-line with parallel
Distributed Cognos TM1 Server
interaction
More tools to accelerate ETL +20% Contributor performance
improvement
performance
Multi-server management
console
Delivers Quality, Scale, and Performance
34. ONLY IBM: POWERS PERFORMANCE
MANAGEMENT TRANSFORMATION
What used to be:
x Low frequency planning and participation
x Deteriorating relevance
x Low-value activities
Will become:
Visibility to performance gaps, alternatives
Reliable forecasting
Commitment to achievable goals
35. BUSINESS BENEFITS
Business Process Flow
Multi- Dimensional Modeling + Scalability + Slice & Dice
Simulation Modelling
Robust allocation engine
Integration with Source Systems
User friendly + Intuitive interface,
MS office integration
36. IBM COGNOS TM1 Best in Class “What If” Analysis & Planning Engine
Personal Hierarchies: As a proximate effect of our in-memory
analytic architecture, we support dynamic modeling of hierarchies and
dimensions that are often the basis of better business decisions.
Personal Scenarios: This ability drawn from the server-side
virtualization supports an unlimited number of ad-hoc alternatives that
allow individuals, teams, divisions and whole companies to respond to fast
changing conditions.
Manage Contribution: The best decisions are those where
relevant data are collected from systems and people alike, Contributor for
TM1 extends our commitment for higher participation analytic processing
so that contributions to performance management decision making can
engage people in a structured, automated, and auditable way.
37. PERSONALIZED HIERARCHIES
Create customized consolidations
Advanced filtering:
– Hierarchical level
– Spelling pattern
– Attribute value
– Element name
– Expression
Alias support
38. PERSONAL SCENARIOS
No predetermined
model requirements for
scenarios Unique
Unlimited flexibility
for end user scenario
building
Available in all
TM1 clients (Excel, TM1
Web, Contributor, Frag
ment for
Cognos 8 BI)
39. MANAGED CONTRIBUTION
Workflow
Pick lists (driver
execution)
Undo/Redo feature
End User Personalization
(Multi pane docking)
Personal Scenarios
Personal Hierarchies
(advanced filtering and
user defined hierarchies)
Color code data changes
Charting
Hierarchy Support