Upload
ibm
View
282
Download
0
Tags:
Embed Size (px)
DESCRIPTION
IBM's Dan Beer on using predictive analytics to help CEOs and CFOs plan for an era of growth at unprecedented scale. Presented at the Smarter Enterprise Summit in Ottawa, October 9, 2014.
Citation preview
1 #SmarterEnterprise
Driving a Future-Ready Enterprise
Dan Beer, Director, Performance Management, IBM Business [email protected]
2 #SmarterEnterprise
19Middle East and Africa 51
Asia Pacific
Central and Eastern Europe57Western Europe
155
Japan98
North America102
South America94
CFO insights from the IBM Global C-suite Study: 576 CFO interviews from around the world
Source: Question E--Participant Country
3 #SmarterEnterprise
CFOs rank second only to CEOs in collaborative C-suite influence
C-Suite collaboration partners
Source: Question B6--Which of your C-suite peers do you work most closely with in support of the enterprise?
78%
65%
24%
CEO CFO All others
Source: “CFO insights from the Global C-Suite Study”, IBM Institute for Business Value, 2014
Finance has a role in bringing balance to the funding of innovation. We play a role in challenging ideas and callingout where they are not working.Finance applies discipline to theprocess
CFO, Life Sciences, Unites States
”
4 #SmarterEnterprise
Technology is of ever-increasing importance to CFOs–the key moving forward is capturing its potential
2010 2013Macro-economic factors
Market factors
Technology factors
Regulatory concerns
People skills
Geopolitical factors
Socio-economic factors
Environmental issues
Globalization
We need to have the right information on time and give it the interpretation value. There is a need to frame information in a financial focus
CFOIndustrial Products company, Mexico
”
Source: Question E8--What are the most important external forces that will impact the enterprise over the next 3 to 5 years?Source: “CFO insights from the Global C-Suite Study”, IBM Institute for Business Value, 2014
Most important external forces
5 #SmarterEnterprise
The gaps between importance and effectiveness have grown since 2005, demonstrating growing business pressures
Largest gaps between importance and effectiveness
58%
19%
46%
34%
42%
37%
27%33%37%
205%increase
35%increase
Drive integration of information
across the enterprise
Develop talentin the financeorganization
Optimize planning,budgeting and
forecasting
Execute Continuous
finance process improvements
Measure/monitorbusiness
performance
2005
2013
Source: Question CFO1--How important are each of the following areas of responsibility to your enterprise? CFO2: How effective is your organization in the following areas?
Source: “CFO insights from the Global C-Suite Study”, IBM Institute for Business Value, 2014
6 #SmarterEnterprise
Finance organizations continue to rely on spreadsheets and intuition two-thirds of the time
Intuition Spreadsheet ERP Analytic tool
14% 52% 19% 15%
50% 100%0%
Capabilities/tools used to support Finance
Source: Question CFO6--What capabilities / tools does your organization use for the following activities?Source: “CFO insights from the Global C-Suite Study”, IBM Institute for Business Value, 2014
We need to ensure we deliver value through changing technology versus being a slave to our systems
CFO, Insurance, United Kingdom
”
7 #SmarterEnterprise
Flashback: The 2010 Global CFO Study identified 4 Finance profiles, with one group, Value Integrators, outperforming the rest
Low
High
HighLow
Value Integrator
DisciplinedOperator
ScorekeeperConstrained
Advisor
Finance Efficiency
Enterprise-wide information standards
Standard financial chart of accounts
Common finance data definitions and data governance
Standard/common finance processes
Operational planning and forecasting capabilityFinance talent developmentCommon planning platform
Value IntegratorPerformance optimizationPredictive insightsEnterprise risk managementBusiness decision making
Disciplined OperatorFinance operations focusedInformation provisionPerformance interpretation
Constrained AdvisorAnalytics focusedSub-optimal executionFragmented data
ScorekeeperData recordingControllershipMultiple versions of the “truth”
Business Insight
Finance efficiency and business insight
Source: IBM Institute for Business Value, The Global CFO Study 2010, The Global C-suite Study 2013
8 #SmarterEnterprise
* Value Integrators are 30% and Performance Accelerators are 7% of the overall CFO population interviewed.
High
Business Insight
High
Finance Efficiency Value Integrator
Value Integrator *
Performance Accelerator
Source: “CFO insights from the Global C-Suite Study”, IBM Institute for Business Value, 2014
Performance AcceleratorProfitability and economic
analysisPricingDemand planning and
forecastingProduct and services
developmentMergers and acquisitions
Flash forward: Value Integrators are pushing the boundaries of efficiency and insight–a subset are emerging as Performance Accelerators
9 #SmarterEnterprise
IBM is the ultimate partner to drive a future-ready enterprise
Value
Analytic Data Management
Maturity
Aligninformation
Optimizeoutcomes
Best Practices
Strategy – Aligned Organization
Analyzepatterns
Span Finance and Operations
Process Automation
Enterprise-wideTransformation
ContinuousSteering
• Managing multi-dimensional performance information
• Financial Consolidation and Close
• Budgeting
• Incentive CompensationManagement
• Span Financial & Operations
• Leading & External Indicators
• Driver-based modeling
• Scenario Analytics
• Rolling Forecasts
• Metrics and Scorecarding
• Strategy Management
• Product and CustomerProfitability
• Predictive Analytics
• Big Data Analytics
• Planning, Analysis, and Forecasting
• Collaborative and Narrative Performance Reporting
• Disclosure Management
• Sales Performance Management
• Agile enterprise
• Risk-adjusted Value Management
Accelerate& LinkEngage
Frontlines
Value Integrators Performance Accelerators
10 #SmarterEnterprise
McCormick protects profit with detailed understanding of customer value and uncertain prices
Challenge
Significantly reduce the profit at risk due to volatile commodity input prices
Solution
Collect and analyze sales plan data by customer and across over 30,000 SKUs
Evaluate the resulting profit contribution of product inputin the “bill of material”
Results
Diagnosed profit improvement moves ahead of time; commodity price increases can be passed on to consumersor renegotiated with industrial customers
Conducted value engineering with operations to reformulate flavors using commodities from different regions and suppliers
TM1 and Cognos helped McCormick record $56 million in cost savings from their Comprehensive and Continuous Improvement program
McCormick is a global leader in flavor. With more than $4.0 billion in annual sales, the company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retail outlets, food manufacturers and food service businesses in more than 110 countries.
CHALLENGE
SOLUTION
RESULTS
11 #SmarterEnterprise
Transform the system of
engagement
Span finance and operations, risk &
performance management
Infuse scenario and predictive
intelligence
Guided business processes, mobile, collaboration
Financial & Operational Performance Management
Narrative Reporting & Disclosure Management
Sales Performance Management
Governance, Risk and Compliance
Predictive intelligence and scenario analytics
Three analytics imperatives drive a future-ready enterprise
Big data platform
12 #SmarterEnterprise
Demonstration
13 #SmarterEnterprise
Build your agenda
Datacollection
New business modeling
Profitability and pricing
Performance scorecarding
Errorchecking
Decrease effort Increase focus
Processmonitoring
Increase in value from analytic initiatives
Transform the system of engagement
Infuse scenario and predictive intelligence
Span finance and operations risk &
performance management
Join us at IBM Insight 2014.
the largest big data in the world
sessions and innovativeStreams on Business Analytics,Enterprise Content ManagementAnd Information Management
foundnetworkingopportunitiesinvaluable
business- and industry-focused sessions featuringtop experts from around the world
technical sessions, hands- on labs and developer activities that include cloud, mobile, security, social, Watson and more
exhibitors at the EXPOIncluding showcasesfrom 250+ Business Partners
in training, certification, hands-on labs,networking, executive one-on-one meetings,expert talks and food and entertainment
client andBusiness Partner speakers fromacross all industries
IBM, the IBM logo, and ibm.com are trademarks of IBM Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml.© Copyright IBM Corporation 2014.
attendees at the one-day Business Partner Summit
Attend IBM Insight to learn how big data and analytics can help you outperform your peers. With IBM business and technical solutions forbig data and analytics, you can turn cloud,mobile and social into competitive advantage.
15 #SmarterEnterprise
Next Steps
• Meet me in the Social Café to continue the conversation
• Find more information about Performance Management at https://ibm.biz/BdFzuE
• Please join us at Insight 2014, the conference for Big Data and Analytics, at Mandalay Bay in Las Vegas, October 26 – 30. More information is available in the Social Café or you can visit https://ibm.com/ibminsight
16 #SmarterEnterprise