Chief Finance Officers Embrace Big Data Technology to Unlock Financial Insight

• Leading global and retail banks across US and EMEA

• Biggest names in digital media and entertainment

• The world’s largest telecom operators

• Technology noted as visionary by leading analyst firms

• Our finance applications help our customers to centralise control and financial reporting to empower decision making

• Expertise in deliver high performance finance engines, using in-database & in-memory processing to deliver results quickly

• Over 15 years of experience delivering finance transformation projects across industries

About Aptitude Software

Aptitude Software combines finance expertise) with leading Big Data technology to help our customers achieve new levels of financial insight, control and transparency

The CFO’s 2014 Juggling Act: Reduce Costs While Driving Profits

As we transition from downturn to growth, enterprises are focused on delivering profitability, but not while losing control of costs

The Perfect Storm

DataTransaction Volumes

Channels, Customers

& Complexit

y

Margins

Business is More Complex Than Ever

• More products

• More customers

• More channels

• More competition

• More systems

• More data

More than twice as many?_x000d__x000d_

More than 50% more?_x000d__x000d_

Between 10% and 50% more_x000d__x000d_

The same

Less

0% 10% 20% 30% 40% 50% 60%

More than twice as many?_x000d__x000d_

More than 50% more?_x000d__x000d_

Between 10% and 50% more_x000d__x000d_

The same

Less

0% 5% 10% 15% 20% 25% 30% 35% 40%

Number of Products Versus 5 Years Ago

Number of Customers Versus 5 Years Ago

The Charge to the CFO: “Do More With Less”

Chief Executives regard CFOs as their ‘second in command’, because of the importance of financial control and financial insight

Gartner ‘Survey Analysis: CFOs' Top Imperatives From the 2013 Gartner FEI CFO Technology Study’, John E. Van Decker, 2 May 2013

Facilitate analysis and decision making

Ongoing monitoring of business performance

Creating an effective environment for sharing relevant information

Quality of data used for business decisions

Measuring product and customer profitability

0 10 20 30 40 50 60 70% of respondents

CFOs' Top Imperatives for Enterprise Technology Investment 2013-2014

Big Data ≠ Profitability

Only a few leading firms are using Big Data to drive profitability, even though they have developed the ability to capture and correlate data

“Profitability should not be conflated with omniscience. […] Big Data has arrived, but Big Insights have not!"

Financial Times Magazine ‘Big data: are we making a big mistake?’ Tim Harford. 28 March 2014

What Does “Big Data” Mean to the CFO?

There is a large gap between recognized importance (of using data) and its actual use… particularly in Finance !

IBM ‘Pushing the frontiers’ CFO Insights from the Global C-suite Study. February 2014

Capabilities/tools used to support Finance

Intuition Spreadsheet ERP Analytic tool

14% 52% 19% 15%

50% 100%0%

Generating Insight into Profitability of Individual Customers is Complex Calculating profitability accurately requires granular data, a multitude of complex allocation methodologies, and a massive amount of processing

Case Study: Leading Retail Brokerage

• Leading US retail brokerage wanted to determine cost and profitability drivers for different product offerings

• Existing finance/allocation systems were geared towards serving reporting needs and aggregated data

• Packaged app couldn’t handle the volume and variety of data necessary to run calculations

Customer Challenges

› Legacy allocation systems

›Used for financial reporting purposes

›12 hour set-up time

›+24 hour batch window

›Required custom coding to change allocation routines

› Lack of transparency into logic

› Lack of flexibility to

36 hrs !!!

A Big Data Killer Application

Enterprises that can calculate the detailed profitability of customers, products, channels in minutes rather than days have a distinct competitive edge

Understanding Cost and ProfitabilityThe need for profitability insight exists across industries (although taking different forms)

Financial servicesEnsuring targeted offers are profitable.

Making smart investments in mobile banking.

Calculating non-traditional business metrics e.g. household profitability.

CFO & LOB EXECUTIVE MANAGEMENT

TelecommunicationsMaking infrastructure investment decisions – allocating cost of base stations by product/customer usage.

Profitability of individual components of products bundles.

HealthcareRegulatory reporting to understand cost to serve patients, profitability of total delivery.

Understanding cost of care.

Driving profitability within the constraints of regulation (medical loss rations etc.)

RetailUnderstanding warehouse activity and occupancy costs per product (SKU) and product instance profitability.

Direct product profitability.

Vendor profitability.

Optimizing supply chains and warehousing cost.

Aptitude Allocation Engine for Profitability Insight

Makes Possible the Previously Impossible

• Measure cost and profitability at levels of detail, flexibility and speed never before possible

• Addresses depth and scale of insight not met by ERP systems or packaged applications

• Enables CFOs and business leaders to leverage data to drive strategic decision making

Designed to runin-database on leading Enterprise Data Warehouses

– optimized for Big Data!

New!

Summary: CFO Challenges

• Leading enterprises are now heavily focused on driving profitable growth – this is the new imperative– Complexity, volume and competition make this difficult

• Enterprises rely on Finance teams to:– Close the books quickly and accurately – of course

– But NOW to deliver financial insight and drive profitability

• Leading CFOs know to be data-driven and look to Big Data technologies to achieve their goals