PRISM EPM PRACTICEOVERVIEW

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

FACING CHALLENGES?

Shared Services & ERP Improved efficiency + reduced cost of Transaction processing…

NEXT ON THE CEO’S AGENDA?

Efficiency + Cost of Budgeting + Management Reportingis Unchanged

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)

CURRENT PERFORMANCE MANAGEMENT FAILING

CURRENT PERFORMANCE MANAGEMENT FAILING

Do I have the right demand forecast?

Do I have the right demand forecast?

Targets at risk?; Where to trim?

Targets at risk?; Where to trim?

Does my pipeline cover my goals?

Does my pipeline cover my goals?

Sales

Marketing

Customer Service

Finance

OperationsProduct

Development

HumanResources

TRANSFORMING PERFORMANCE MANAGEMENT BETTER INFORMATION, FASTER RESPONSE

Sales

Marketing

Customer Service

Finance

IT

Operations

Product Development

HumanResources

Common planning, reporting platformLinked finance and operationsData, process, metrics standardsAdvanced analyticsHigh participation, scale, performance

TRANSFORMING PERFORMANCE MANAGEMENT GAIN TIME, CONTROL AND CONFIDENCE

Sales

Marketing

Customer Service

Finance

IT

Operations

Product Development

HumanResources

Drivers

THREE QUESTIONS THAT DRIVE PERFORMANCE

How are we doing? Why?What should we be doing?

THREE QUESTIONS THAT DRIVE PERFORMANCE

IT

SALES

MARKETING

CUSTOMERSERVICE

HR

OPERATIONS

PRODUCTDEVELOPMENT

FINANCE

Why?How are we doing?

What should we be doing?

HOW ANSWERS ARE OFTEN FOUND

CMO

Why?

How are we doing?

What should we be doing?

INTERN

AL DATAEXTERN

AL DATA

MARKETING

Why?

How are we doing?

What should we be doing?

ERP

HR

RETAIL

AC NEILSON

TBS/DLB

CRM

FINANCIAL PERFORMANCE MANAGEMENT CHALLENGES

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 enterprises were not well prepared for the event.”Source: IBM Global CFO Study 2008

CFO

ControllerTax /Treasury

FP & A

CHALLENGES WITH PLANS AND FORECASTS

PAIN: Inability to deliver timely, reliable forecasts & plans that align operational tactics with financial targets

PLANS & FORECASTS

DisconnectedPlans

Infrequent Unreliable Forecasts

Weak Top-Down& Bottom-up Coordination

FP & A

How long does the budgeting process take?

Are you using spreadsheets to manage the planning process?

Are your budgets and forecasts as reliable for decision-making as you would like?

Even minor spreadsheet errors have a multiplicative effect Three types of errors

– Mechanical error: flawed typing or selecting– Logic error: incorrect or inappropriate calculation– Omission error: critical components left out of model entirely

Incalculable time and effort wasted in data collection and consolidation

Very little visibility to future results

DO SPREADSHEETS MEASURE UP?

Source: Spreadsheet-Based Planning: Rough Road Ahead, © Cognos 2003

Time consumingData movement from one system to anotherDuplication of effortsMultiple of work-sheets and files to work withComplex Large number of formulae and macros known only to the individuals who have created themInflexibleDifficult, time-consuming for making changesNot IntegratedStand-alone spreadsheets

SPREAD –SHEET BASED PLANNING & REPORTING- LIMITATIONS

TO- BE PROCESS STANDARD AND BEST PRACTICE

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

PLANNING & BUDGETING

The main processes within Budgeting and Planning include…

Long-range

3 - 5 yearsby quarter

1 year by month

1 monthby day

Corporatevision, strategic objectivesand targets

OperatingBudgets

CapitalBudgets

Strategic Planning

Annual Budgeting Cycle(corporate, business units, departments)

Financial Forecasts(Departments or Cost Centers)

Production Forecasts/Schedules(Production/Manufacturing)

DRILL

DOW

N

DRILL

DOW

N

ROLL UP

ROLL UP

Typical Process Gaps

THE PLANNING PROCESS: KEY ISSUES

BEST PRACTICES IN PLANNINGTOP DOWN / BOTTOM UP RECONCILIATION

Reconciliation Benefits Realistic & executable plans Involvement in the process Shared understanding of business

economics Continuous learning Model that adapts to changing

market conditions

Reconciliation& Agreement

BOTTOMUP

WHAT IS

TOPDOWN

WHAT IF

BEST PRACTICES IN PLANNING - COLLABORATIONIncreased number of value chain participants requires increased collaboration.

Increased & Broader Input Ownership of targets More alliances and outsourcing

agreements Optimize use of resources Increased focus on core competency Buy-in of strategy

•Centralized•Top-down only(Traditional Planning)

•100% of managers (Enterprise Planning)

•Customers•Partners•Suppliers (X-tra Planning)

Low Predictability

High Predictability

External Contributors

BEYOND BUDGETING

Budgeting Historical based Incremental (+5%) Annual Control expenses Finance driven By the few for the

many

Planning Future based Driver-based Continuous Drive the business Anyone can drive By the many for the

many

A GAME-CHANGING EVENT

Cognos

Spreadsheets

Green-Line

Visibility Control and versioning Plan and forecast

drivers Accountability

Cycle time Process End-user

experience Compliance

Our framework for CPM contains 3 primary components:

OUR CORPORATE PERFORMANCE MANAGEMENT APPROACH

Reward Results

Monitor Individual Results

Reporting(Financial & Operational)

Forecasting

Budgeting

Business Planning

Strategic Planning

Analysis

Performance Measurement

ShareholderValue

Process including Planning, Budgeting & Forecasting

Organization Alignment and Accountability

Balanced Score carding

Reporting & Performance Measurement

Phas

e 1

Phas

e 2

OUR CAPABILITIES IN ENTERPRISE PERFORMANCE MANAGEMENTNew Models Integrate Planning, Target Setting, Budgeting, Forecasting, and Performance Management Into a Single Process.

Strategic Planning

Target Setting

Budget Creation

Performance Management

Forecasting

OUR CAPABILITIES AND OFFERING IN NEW AREAS

Top down and Bottom up Planning with budgeting

Scenario and version Analysis

Work flow control

Predective Analysis

Rolling Forecasts

Actuals v Budgets analysis

We Believe In Process to Technology Consulting.IBM COGNOS, other best of the breed products to Meet the Above Requirements.

Management Reporting with KPI and Accountability Statements

Balanced Scorecard with Activity Management

Profitability and Cost Management

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

THE TEAM

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

TECHNOLOGY EXPERTISE

NEW INNOVATIONS FOR PLANNING, ANALYSIS, FORECASTING WITH IBM COGNOS 10

THE 2011 BI SURVEY 10 RANKED IBM COGNOS TM1…

• Improved, flexible solution design environment•Easily spans analytics and planning requirements•Unrivaled performance at high user and data scale

• Goal achievement• Self-service

The Planning Peer GroupBARC BI Survey 10

Cognos TM1 10PART OF COGNOS ENTERPRISE

• Goal achievement• Self-service• SuitabilityThe Database Peer GroupBARC BI Survey 10

COGNOS ENTERPRISE PERFORMANCE MANAGEMENT: A REVOLUTION WITH TM1 10

Expense Planning & Control

Workforce Planning Capital Planning Strategic Finance

Profitability Modeling

High Performance Platform High Performance Platform

Enterprise Planning and Analysis

Enterprise Planning and Analysis

Performance Reporting and Scorecarding

Analytics

Sales

Marketing

Customer Service

Finance ITOperations

Product Development

HumanResources

New:

Prototyping

New SolutionDesign & Deployment

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

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

USER EXPERIENCE FLEXIBILITY

Excel-Based

Sales Marketing Customer Service Operations

Product Development Finance IT

HumanResources

Desktop Managed Collaboration

Span All Users and User Experience Needs

PROVEN ANALYTICS ENGINEDistributed 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 interaction

More tools to accelerate ETL performance

Multi-server management console

+20% Contributor performance improvement

Delivers Quality, Scale, and Performance

Distributed Cognos TM1 Server

ONLY IBM: POWERS PERFORMANCE MANAGEMENT TRANSFORMATIONWhat 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

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

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.

IBM COGNOS TM1 Best in Class “What If” Analysis & Planning Engine

Create customized consolidations Advanced filtering:

– Hierarchical level – Spelling pattern– Attribute value– Element name– Expression

Alias support

PERSONALIZED HIERARCHIES

No predetermined model requirements for scenarios

Unlimited flexibilityfor end user scenario building

Available in allTM1 clients (Excel, TM1 Web, Contributor, Fragment forCognos 8 BI)

PERSONAL SCENARIOS

Unique

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

MANAGED CONTRIBUTION

DEMO

COGNOS TM1 PM PLATFORM: ONE TECHNOLOGY, MULTIPLE APPLICATIONS

An integratedextensibleapplication for all users and business functions, with common:

• architecture• fact data• reference data• scenarios• business rules• workflow• presentation• security

An integratedextensibleapplication for all users and business functions, with common:

• architecture• fact data• reference data• scenarios• business rules• workflow• presentation• security

Finance

Customer Product

Workforce

Consolidation

ProductProfitability

SalaryPlanning

ResourcePlanning

CustomerProfitability

ProjectMgmt

Cognos TM1PM Platform

MarketingEffectiveness

PipelineAnalysis Production

Planning

QualityTracking

BalanceSheet

Cash Flow

Profit & Loss

ChurnAnalysis

SalesCommissions

InventoryMgmt

Unified, single platform for planning, budgeting, consolidation, reporting, complex analysis

Top performing RAM based multidimensional analysis engine

Real-time, on the fly calculations, “what-if” analysis

Interactive read / write capabilities

Flexible, rapid business modeling

Fast, efficient data integration

Tight Excel integration / Web client

Streamlined planning processes

TM1 SOLUTION FEATURES / BENEFITS

B−907, BSEL Tech Park, 9th floor, opposite VashiRly Station Sector 30A, VashiNavi Mumbai – 400705 Contact: investor@prisminfoglobal.com