Your Technology Strategy: Cost Center or Strategic Business Investment? Lee Kilmer VP, Enterprise Performance Management, Infor 1 What We ll Talk About CFO Concerns Transformational Technologies and how these can be leveraged for business advantage Questions and Answers 2
Infor, the numbers Financial Strength $2.8b total revenue $1b Invested capital in last 12 months 5 straight quarters of double digit license growth Growth Scale Investment 1,500 partners 140 new partners in the past year 2,300 new customers 3d 3rd 9,000 13,000 largest enterprise applications company 1,700 new employees in the past year engineers & technical consultants 600 new engineers in the past year employees 5,293 new product features 3 Specialized by industry 8 of the top 10 aerospace companies 80 of the top 100 automotive suppliers 9 of the top 10 pharmaceutical companies 26 of the top 50 industrial distributors 7,000+ machinery manufacturers 19 of the top 35 retailers 6 of the top 10 brewers Over 60% of US hospitals 9 of the top 10 high tech companies 90% of the Las Vegas Strip More than 5,500 customers 1,100+ state and local governments 4
5 Office of the CFO solution footprint Mobility Reporting Workspace Dashboards Social Financials General & Strategic Ledgers Projects Lease Management Expense Management Supply Chain Human Capital GRC Assets Performance Technology Accounts Payable Accounts Receivable Cash & Treasury Contract Management Procurement Supply Chain Planning Inventory Management Sales Management HR Management Talent Management Service Delivery Workforce Management Continuous Monitoring Audit Compliance Regulatory Compliance Risk & Scoring Work Order Management Reliability Management Sustainability Predictive Management Financial Reporting Budgeting Planning Consolidations Strategy Management Local.ly Cloud Based Localizations Tax, Reporting, Accounting, Bank Messages Business Analytics Analytics Dashboards Operational Reports In-Context BI ION Integration Workflow Alerts Business Vault Business Cloud Hybrid Upgrade/S - PaaS 6
What are your concerns? Performance Risk Execution Efficiency >70% correlation between highperformance companies & high-performance finance organizations -Accenture 8 out of 10 successful organizations focus on risk -IBM CFO Study 70% of time finding data 30% analyzing data -IBM CFO Study 48% of CFOs believe IT systems are barriers to effectiveness -KPMG International. Market Leadership Brand Equity Profit Margins 7 Current systems inhibit progress 73% 52% 2 out of 3 can't achieve their objectives "out of date & inflexible integral to their operations IT Management Slideshow: CFO and CIO: A Love-Hate Relationship By Don Reisinger 8
Just Do It Fundamentals Do It Well Operational Efficiency Do It Better Company-Wide Financial Performance Do It to Accelerate Growth Strategic Growth Stages of Financial Performance Maturity 9 4 Technologies driving transformation 90% expect modern technologies to change the way we work within 3 years 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 9.79% 55.29% 34.92% Not at all Will partially change the way we work Will completely change the way business is managed Social Business Cloud Analytics Mobility 0.00% Source: IDC Manufacturing Insights 2011 - N=348 10
Cloud becoming more accepted As perceived objections to SaaS, such as security, flexibility, and integration, continue to fall by the wayside, more and more companies will move to SaaS solutions for financial planning, reporting, analysis, and transactional systems like accounting Source: Planning, Analysis, And Reporting Solutions Drive Financial Performance Management By Paul D. Hamerman, Forrester Research, January 23, 2013 11 Point Era Monolithic Era Internet t Era 1980 1995 2010+ Simplicity accommodates change and innovation 12
Styles of Cloud Computing Public Cloud Hybrid Cloud Private Cloud Develop strategic and operational plans Combination of public and private clouds On-premise or dedicated hosting environment 13 Cloud transformation Di Drivers Faster implementation cycles Elastic cost transparency Relief from labor intensive patching and upgrades Subscription licensing (rental) Agility and flexibility Use Cases Edge applications Upgrade, non-production instances Upgrade to Cloud / SaaS 14
Mobility is Gen Y s Business Software 15 Workforce Transformation 18-30 2 3 57% out of ages of fgen Y most important technology in their lives BYOD 2016 200m devices Source: Cisco Connected World Technology Report, Nov. 2011 Source: Cisco Connected World Technology Report, Nov. 2011 Source: Forrester, Mobile Is The New Face Of Engagement, J. McCarthy & T. Schadler Feb 2012 16
Mobile Analytics 1/3 Managers using mobile BI can make decisions in approximately one-third of the time that it takes managers who do not use mobile BI 2x Companies using mobile BI improved customer satisfaction at almost twice the rate of companies not using it Providing mobile BI to customer-facing employees can aid in the engagement of customers and ultimately, increase sales Source: Mobile BI 2012, Aberdeen Group, March 2012 17 Mobile transformation Di Drivers Anytime anywhere access for more users Changing workforce demographics Increased pressure for speed and agility Use Cases Point solutions provide mobile view to existing applications Design for mobile users and form factors 18
Analytics Days to decision decreased by 23% 2% Best in Class Other Time to decision in best in class companies has decreased 23% over the past year as opposed to a 2% decrease for others. They also had a 3% higher operating margin. Source: Planning, Analysis, And Reporting Solutions Drive Financial Performance Management By Paul D. Hamerman, Forrester Research, January 23, 2013 19 Types of decision making High strategic Strategic Tactical Operational value per decision Low strategic value per decision Support Strategic and Operational Decisions Metric Driven Small number of decisions Process-Driven Large number of decisions 20
CPM Agility. Intelligence. Speed. CRM Localized Reporting Inhouse CRM ERP EAM Supply Chain App Specific Performance Maturity EAM Business Analytics Cognos ERP Multiple disparate systems Lag in data reporting Complex IT involvement Distributed islands of skills HCM 21 In context user experience Gain improved insight and make better decisions. 1 2 Business analytics delivered automatically in real-time as the user interacts with the application. Drill from In-Context BI into a different application for additional analysis 1 2 22
Industrial Internet GE estimates that a 1 percent gain in fuel efficiency could be worth $2 billion a year to the aviation industry and twice that to the power industry. 23 Technologies behind the industrial internet Source: GE Industrial Internet: Pushing the Boundaries of Minds and Machines Peter C. Evans & Marco Annunziata 24
Business analytics transformation Drivers Decide and act faster Availability of big data Ever-changing g business needs Smart Machines Super computing strength Use cases In-context analytics Guided drilling, actions Advanced planning, forecasting, optimization, preventative maintenance 25 Social networking and contextual experience permeates application design 26
Social business graph People Applications Machines Data Customer Order Equipment Plant Invoice All business objects are connected to the social network WMS Shipment Colleague Order Procurement 27 Financial performance maturity matrix low fina ance performance h igh Operational Efficiency Streamline closing, increase speed, accuracy, and auditability Fundamentals Master core responsibilities and routine tasks Strategic Growth Improve strategic execution through advanced analytics and integration Company-Wide Performance Company wide metrics & benchmarks. Focus on continuous improvement low organizational performance high 28
Overview North America's largest family-owned broad line foodservice distributor $10B in annual revenues 100+ years in the food business Gordon Food Service is committed to growing both today and in the future. We actively manage today's business by constantly measuring ourselves against targeted key performance metrics.we pursue tomorrow's success via disciplined strategic and financial planning. Solution Profile Infor Lawson Enterprise Financials Infor CPM Budgeting, Forecasting, Financial Consolidation and Management Reporting & Analysis 1 2 3 Single solution for budgeting and planning 950 + users across US and Canada access the system for budgeting, planning and reporting Multicurrency reporting and consolidation Simplified international reporting and multiple business unit consolidations Ease of Use Flexibility in reporting that enables management to track business and key metrics, ability for users to drill through from CPM to Lawson and electronic imaging system 29 >70% correlation between high-performance companies & high-performance finance organizations Accenture Just Do It Fundamentals Assessment of technology & skills Do It Well Operational Efficiency Integrate adhoc reporting and query tools with mobile opportunity across multiple systems Do It Better Company-Wide Financial Performance OLAP Cubes dashboards Workflow alerts Social business Do It to Accelerate Growth Strategic Growth Pilot Enable Personalize Execute into single systems Implement Strategy Management 30
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