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Best practices and success stories from the Adriatic region
Grega Jerkič, [email protected], In516ht d.o.o., Slovenia
15 years working on analytical projects (50+); co-owner and CEO, official trainer for IBM Cognos TM1, BI; mentor on multiple international projects; member of ICV Slovenija; co-author of Training Kit (Exam 70-463) Implementing a Data Warehouse with Microsoft SQL Server 2012 (MCSA)
Agenda
• Who we are, what we do?
• Business Cases from Adriatic Region
• How we do it and what we have learned?
IN516HT („INSIGHT“) - Know Your Numbers
• Most experienced Slovenian IBM BA partner
• Team with 10+ years experience
• Business Focus
• Simulations and Planning(act and react to different unpredicted activities)
• Analytical Marketing(understand and predict customers habits)
• Big Data(data warehouse and data quality)
• Best Performing IBM Business Partner
• IBM Business Analytics Excellence Award
• Best Teaming IBM Business Analytics Partner in CEE
• Best IBM Software Business Partner
• Best IBM Software Business Partner
• Best IBM Business Analytics Partner
2011
Awards for our work
2013
2012
2014
References
• Budgeting, Forecasting and Projections
• Profitability Calculations and Simulations
• 15+ projects
• 1000+ users
Facts
• Companies spend 90% of effort on analysing past• Requirement to be agile and adaptive in ever
changing business environment• More than 90% of companies use „manual“ Excel for
planning and simulations
A man who does not think and plan long ahead will find trouble right at his door.
Confucius
Be Different
• Focus on anticipating the future
• Yearly budgeting and projection for the whole group Petrol:• Sales budget on the level of gas station• Multiple different businesses (gas, retail, energy)• Expense budget on more than 1000 cost centres • CAPEX• P&L on the level of gas station (different allocations)• 150+ users budgeting, 500+ users analysing• 1 person in IT and controlling department runs the whole
process• Integration with central analytical solution and financial
consolidation• Daily data refresh
• Each market (30+) send the monthly excel with forecast values• Consolidation of data in one large Excel • Each market has different active SKU• Reporting either on SKU or higher• From 500 to 3000 SKU
• Demand Forecast• Done in Excel• Need all the information from supply chain• Simulations for months on hand• Weekly reporting of orders and inventory (consolidated on SKU
over all countries)
• Monthly sales, forecast accuracy, minimum stock, need to order,…
Issues
• Monthly rolling sales forecast model for 50+ countries
• One-click to open new period
• Prepopulated
• Tracking lead time changes
• Forecast accuracy reports
• Monthly rolling demand forecast model
• Prepopulated with all needed data (sales, forecast, inventory, pricing, etc.)
• Simulations for months on hand
• Integration with existing ERP (MS NAV and SAP) for creating purchase orders
• 80+ suppliers
• 100 active users
• 4 -5 planning cycles
• Fast month close
• Add-hoc analysis
and predictions
• One Version of the Truth
• 80+ KPI• Customer Value
• ARPU
• Costs broken down to specific activity
• Energy – Utility providers
• Sales budget
• Expense budget
• P&L
• First solution in 1 month to solve „standard“ budgeting issues
• Profitability simulations on different levels of organization
• HR specific module to simulate utilisation
• Complex investment planning and simulation of different amortization plans
• Simulation of the whole bank performance
• P&L and BS merged from different „business“ modules
• Budgeting by KPI• Simulation of
interest rates• Profitability on the
level of profit centres
Why all this examples? Flexibility
• Open platform to simulate any kind of business processes
• Think Big – Start Small principle
• Build for business users
• Build for prototyping solutions
• Powerful in-memory technology to create large and complex models (not just „standard“ P&L, BS, CF)
Our Methodology
• Discovery Workshops• Existing Excel solutions
• Create prototypes – seeing is believing
• Project• Create blueprint – think big, start small
• Training of power users
• Iterative development of each module• Agile principles
• Client active in development phase
• Multiple iterations
• Weekly workshops to see if the module would be ok
Why Agile Implementation?
TCO or what our client‘s see as a first benefit
• Centralized view (no more manual Excel merging)
• Workflow – process under control (no more emails with Excel files)
• More people involved in the planning process –responsibility
• Create multiple scenarios in minutes, what-if, impact analysis, etc.
• Finance – Sales – Operational planning connected
How to start?
• Start from top – financial plan and needed KPI‘s
• Define dimensions and granularity of planning
• Define measures and calculations
• Build „performance matrix“
Next Stage
• Create business sub-areas around dimensions that are known to people that will budget
• Do not budget sales by general ledger account, Budget number of new employees by profiles and not final amounts, etc.
• Test your assumptions inside organization
• Define rules how to merge sub-areas in to the financial plan
• Build user usage
responsibility matrix
Function Decision Roles Primary Work Contributor Status
Executive Management •
Finance Executive •
Managers •
Analysts •
Controlling Managers •
Analysts •
Sales … •
Marketing … •
IT … •
HRM …
Frequence
Users Daily Weekly Monthly Quaterly Yearly
Management • • •
Finance • • • •
Accounting • • •
Controlling • • • • •
Sales • •
Marketing • •
IT
HRM
Just Try It
• You as a controller have a lot of experience
• Invest in education / training of TM1
• IBM Cognos Express Trial licenses
