IBM Cognos Beyond Budgeting Seminar 7 July 2009

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Kristin Mae Thornton
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1 IBM Cognos Beyond Budgeting Seminar 7 July 2009 Peter de Geus Solution Architect Gautam Jain - Managing Consultant - Performance Management IBM Corporation

2 Performance Management - Beyond Budgeting 10% 55% 35% IBM Corporation

3 Driver-based forecasting is often missing in many organizations, but can substantially reduce the cycle time and level of detail in forecasts Technology People / Organization Information Process Usage of driver-based forecast models that are automated wherever possible. Ability for all users (including users inputting operational data) to submit and retrieve data electronically. Forecasting system integrated with the appropriate financial, manufacturing and market/demand planning systems, preferably through an integrated information architecture and business intelligence platform. Corporate and business unit modelers work collaboratively to maintain simplicity and consistency in drivers and driver values. Mathematical kills to perform/understand basic regression analysis and modeling techniques. Business and finance associates understand key driver relationships and the external market drivers. History on all identified internal drivers, external drivers and related financial information. Keen understanding of key business driver relationships and impact on financials. Adopt corporate data standards that enable cross-system and cross-organization comparisons of the same data. Forecast of drivers of financial performance. Capture of actual driver values. Source: The Hackett Group Collection of financial results IBM Corporation

4 Elements of a successful forecast IBM Corporation

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6 Match horizon and refresh to the rhythm of your business Source: 2008 Book of Numbers, Aligning Forecasting Practices with Market Dynamics, The Hackett Group IBM Corporation

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8 A traditional model IBM Corporation

9 Utilize drivers the language of business IBM Corporation

10 Revenue planning - Telesales professional IBM Corporation

11 Less is more! Simplify your models IBM Corporation

12 Link forecasting with operational planning IBM Corporation

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22 How do we spend our time? IBM Corporation

23 Organizations are wasting valuable time IBM Corporation

24 Is there a better way IBM Corporation

25 Leave the spreadsheets behind IBM Corporation

26 More time on Monday IBM Corporation

27 Tuesday looks better as well IBM Corporation

28 More time for discussion IBM Corporation

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31 Create timely, reliable Driver-based Forecasts Reduce cycle time by 50-70% Re-allocate analyst time from 65% validating/chasing data to 65% creating value added analysis Sustain best-practices Driver-based Rolling forecasts Right participation Right frequency Improve accountability Improve forecast accuracy IBM Corporation

32 Extend Enterprise Wide Continued Investment in Industry Blueprints Manufacturing Trade Promotion Management S&OP Executive Review Sales & Operations Planning Transportation and Logistics Performance Pharmaceuticals & Life Sciences Clinical Trial Planning Samples Optimization (Joint w/ TM1) Clinical Trial Enrollment Forecasting Sales Quota Allocations Public Sector Program Objective Memorandum (POM) Grant Thornton & Cognos Federal Budget Planning & Performance Framework Business Partner BearingPoint POM Budget Planning Business Partner Higher Ed Performance Mayor s Scorecard Retail Store Operations Banking & Financial Services Retail Branch Performance Retail Banking Customer Segment Performance Corporate Banking Customer Segment Performance Insurance Product Profitability Cognos & IBM Risk Adjusted Profitability for Banking Business Partner BP Loan Pricing Store Development Promotion Planning Merchandising Performance Management Retail Financial Workbench IBM Corporation

33 Financial Performance Management Strategy Management and Scorecarding Strategy Communication Strategy Execution Strategy Measurement Enterprise Planning and Analysis Strategic Finance Revenue Planning and Forecasting Expense Planning and Control Workforce Planning Capital Planning Financial Analytics Financial Performance Analysis Profitability analysis Product, Operations, Customer, Channel, Market analysis and optimization Financial and Management Control Financial Consolidation Financial Reporting Corporate Reporting IBM Corporation

34 Performance Management Journey AUTOMATION TRANSFORMATION Analyze your historic data Assess your current processes to make the business case Get out of the spreadsheet jungle and leverage technology Move to rolling horizons Speak the language of business implement drivers Clean up your models and focus on the important items Beyond Finance Coordinate Operational & Financial Processes Target: Change the culture by broadcasting the results! Forecast Accuracy Cycle Time Time Spend on Analysis IBM Corporation

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36 Components EP Model D-list (dimensies) D-Cube (kubus) IBM Corporation

37 Components EP Model D-Link IBM Corporation

38 Components EP Model D-List D-Cube D-Link IBM Corporation

39 CUSTOMERS ENTERPRISE PLANNING FINANCIAL SERVICES PROFESSIONAL SERVICES ENERGY & UTILITIES CONSUMER GOODS IBM Corporation

40 CUSTOMERS ENTERPRISE PLANNING MANUFACTURING HEALTHCARE TELECOM IBM Corporation

Evaluation Guide. Sales Quota Allocation Performance Blueprint

Evaluation Guide. Sales Quota Allocation Performance Blueprint Evaluation Guide Sales Quota Allocation Performance Blueprint Introduction Pharmaceutical companies are widely recognized for having outstanding sales forces. Many pharmaceuticals have hundreds of sales