© 2012 IBM Corporation

Business Analytics: Driving Profitable Growth, Addressing Regulation and Risk

Ray J Payette

April 26th

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Source: IBM IBV/MIT Sloan Management Review Study 2011Copyright Massachusetts Institute of Technology 2011

More organizations see

As competitive advantage

2010 2011

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Organizations competing on analytics substantially outperform their peers

Source: IBM IBV/MIT Sloan Management Review Study 2011Copyright Massachusetts Institute of Technology 2011

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RealizedPotential

• Low value activities• Limited relevance, frequency

and participation • Poor insight into causality • Weak, delayed coordination

Source: CFO Executive Board 2011; IBM Analysis

30% of performance potential is lost due to subpar performance management

Performance potential squandered by poor practices

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HR

Technology foundation is under pressure

CRM

ERP

G/L

DW

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“For 55 percent of companies, their budget assumptions are useless by three months into the new year.”

Feb

2012Budget approved

Speed and agility do not match the marketplace volatility

Dec

Forecast Forecast Forecast

June

Source: APQC

2013 Budget

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Staff leverage is weak

Providing value-added

analysis

Collecting and validating the data

Administeringthe process

30%23%

47%

Source: APQC

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Monthly reports do not help us understand root causes … or profitability levers

Which products, customers, segments?

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PotentialCurrent

The more you infuse analytics into your business, the higher your AQ and the better you and your business will perform

Raise your analytic maturity to gain the time, control, and confidence

• Automate processes• Increase agility• Gain new insightAQ

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Business Analytics in Action

Future Chips reports full year results

Future Chips refiles financial

statements

A day in the life of Future Chips

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Our finance organization is like an old Beetle on the German autobahn. Our company and our careers are at stake if we do not change! — CFO of Future Chips

“”

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Transforming the decision process

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

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Transforming the decision process

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

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From looking backward to looking forward

Leading vs. lagging | External & internal vs. internal only | Forecasting vs. budgeting only

IBM Cognos Business Intelligence 10 – comprehensive dashboards

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Demo

Review performance dashboard

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Insight everywhere you need it

• In the boardroom or 35,000 feet in the air

• Actionable information on the desktop and your mobile device (NEW)

• Timely, rich and interactive content

IBM Cognos 10 – Mobile and comprehensive dashboards

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Transforming the decision process

Profitability issue in Asia

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

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The data I need is not just in corporate systems.

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I don’t know exactly what I’m looking for.

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I can’t afford to wait for someone else to build it.

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We need to understand and respond faster to marketplace changes.

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Demo

Analysis and what-if scenarios

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Agile, personal analytics

• Access to external and corporate-sanctioned data sources

• Boundless freedom to perform analysis

• “Write-back” for what-if scenarios and planning template development

IBM Cognos Insight

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Transforming the decision process

Rapid product introduction

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

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From spreadsheet formulas and links to visual modeling

Visual vs. Text | Business-User vs. IT specialist | Agile Prototype-to-Deploy

IBM Cognos TM1 10 (Performance Modeler)

=100*(Sheet2!B$29+'[Northern Region.xls]Frcst'!$B$3+'[Southern Region.xls]Forecast'!$B$3+'[Southern Region.xls]-Frcst'[Northern Region.xls]Sheet2'!$B$3)

From Spreadsheet formulae & links to

Visual Modeling & Composition

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Demo

Prepare ad-hoc forecast models

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Intuitive modeling and application deployment

• Multidimensional modeling tools• Big time savings, less risk and better

visibility• Visual interface for intuitive modeling

IBM Cognos TM1 10 (Performance Modeler)

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Transforming the decision process

Forecast models updated with new products

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

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From detailed and numeric to Driver-based forecasts

From manual aggregation to Process automation

Corporate

BU's

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Demo

Update and revise forecast

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Planning, analysis, forecasting & profitability modeling

• Driver-based models• Easier scenarios to address risk• Easy distribution and aggregation of

templates• Real-time reporting against plan,

budgets and forecasts

IBM Cognos TM1 10 (Cognos Insight, Contributor, Excel)

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Transforming the decision process

Revised, positive forecast

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

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Narrative-based reviews flush out what is really happening

Analytical insight Gain consensus, plan & execute

On going reports & analysis

Speed alignment and decision-making

Performancenarrative

Financial & performance data

Review, edit,Approve, certify

MD&A disclosures

Publish to shareholders, regulators, etc.

Reduce risk of error, insider leaks, and late filings

Disclosure Management and Tagging:

Narrative Performance Reporting:

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Demo

Narrative reportingand disclosuremanagement

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Narrative business reviews and disclosure management

• Integrated workflow and narrative reporting

• Big time savings, no retyping or copying

• Rich functionality, including XBRL

IBM Cognos Financial Statement Reporting (FSR)

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Smarter Analytics. Smarter Outcomes.

Analysis & what-if scenarios

Forecast preparation

Forecast execution

Narrative businessreviews

Issue identification

Contribution &workflow

Agile modeling & scenario analytics

Re-align PM environment

Profitability monitoring

Qualitative input to alignment & decision-making

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IBM should be your partner in becoming analytics-driven

AQ?What’s your

The more you infuse analytics into your business, the higher your AQ and the better you and your business can perform.

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IBM business analytics deliver ...

Time

Drive efficiencies and scale•Eliminate intensely manual efforts•Structure and automate dynamic processes•Scale to large user communities and data sets

Control

Gain agility and preparedness•Link operational and financial performance management•Support advanced analytic techniques (e.g., scenario and predictive analytics)•Eliminate delays in coordinating around to emerging realities

Confidence

Improve effectiveness and outcomes•Dramatically reduce risk of errors•Cost-effectively address compliance•Drive new confidence in analytics-driven decision making

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IBM business analytics: complete capabilities

Business analytics and optimization solutionsIndustry solutions

Financial services

Workload-optimized systems

Public Distribution Industrial Communications

CustomerFinance

Cross-industry solutions

Human capital Supply chain/operations

Risk analyticsBusiness intelligence

Business analytics

Predictive and advanced analytics

Financial performance and strategy management

Information management and governance

Information integration and master data management | Data warehousing

Content management Data management

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Do you want to become the CEO of Future Chips?

• Business simulation• Interactive workshop• Decision making

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the best partnerfor your analytics journey

• Evaluate your finance processes• Join our analytics experience workshops• Meet your local IBM business analytics team

Join the breakout sessions to learn moreJoin the breakout sessions to learn more

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Attend IBM’s premier conference for Finance and Risk professionals!

When: May 14-17, 2012 Where: JW Marriott Grande Lakes | Orlando, FloridaWho should attend: Finance and Risk professionals (CFOs, CROs, CCOs, and other senior financial managers)Why Attend: Compelling line-up of IBM product experts, customers, and analysts Real-world experience and best practices Keynotes, workshops, roundtables and 60+ breakout sessions

Tracks include: Planning Analysis & Forecasting Integrated Risk Management Performance Reporting & Scorecarding Regulatory Compliance, Policy & IT Governance Financial Governance & Disclosure Management Operational Risk Management

For more information, visit: ibm.com/software/analytics/vision

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Business Analytics Education: Build Your Expertise

Delivering Knowledge•Get the right training for the right people at the right time•Certified instructors•Flexible training options

• Self-paced virtual classes• Instructor-led online• Public classroom• Private (On-site or virtual)• Customized

Driving Value•Accelerated deployment and adoption•Improved user performance and productivity•Business value through economies of scale•Green alternatives: on-line and self-paced•Training paths can guide you towards the right class to achieve your goals

Over 92% of our customers would take a class from us again.- 2011 Customer Survey

Contact us to help you customize a plan for you or your company: BATraining@us.ibm.comSearch for “IBM Cognos Training”: www.ibm.com/software/data/education/cognos.html

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Delivering Value Through Services •Lowering your risk during implementations •Building your skills for long term success•Raising the quality of your solutions

Example ServicesCognos TM1 v10 Upgrade InitiateCognos TM1 Health CheckCognos TM1 Model Design ReviewCognos TM1 Technical DesignCognos TM1 Performance Testing & TuningCognos TM1 Installation & ConfigurationCognos Planning Health CheckCognos Planning v10 Upgrade InitiateCognos Planning Migration Assessment to TM1Cognos Controller Application Planning & DesignCognos FSR Quick StartCognos XBRL Quick Start

Business Analytics Lab Services for Performance Management

Contact us to determine how Lab Services can help your company: BALabSvc@us.ibm.comSearch for “IBM Cognos Services”: www.ibm.com/software/analytics/cognos/services/

Advisory Services are best when: Planning, analyzing & designing the solution Determining approach to competency & training

Assessment Services are best at key milestones or post-implementation:

Assess or optimize application & technical design Evaluate model & report design Conduct “health checks” to improve performance

Assist Services are best for: “Hands-on" expertise for specialized services Installation and configuration Performance testing and tuning Product integration

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IBM Corporation 2012• IBM, the IBM logo, ibm.com, IBM Cognos Business Intelligence, IBM Cognos TM1, IBM Cognos Insight, and IBM Cognos

Financial Statement Reporting are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml.

• Other company, product, and service names may be trademarks or service marks of others.• References in this publication to IBM products or services do not imply that IBM intends to make them available in all

countries in which IBM operates.

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