Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Business Analytics, Forecasting, Financial Planning: The Recipe for Impacting Performance Across the Enterprise

• Understand the concepts and inter-relationships of business analytics, dynamic planning and forecasting, and employee performance management

• Discover how to transition from a static to dynamic planning and forecasting environment that links strategy to operations

• Identify opportunities to develop and leverage analytics that deliver timely, relevant and accurate to those who impact financial and operational

Learning Objectives

After attending this event you will be able to:

Welcome to Proformative

Proformative is the leading educational resource for corporate finance professionals.

A resource where corporate finance and related professionals advance in their careers through: • Uniquely valuable, online peer network • On demand courses taught by peers and

SMEs• Valuable Features and Resources

Check it out at www.proformative.com

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Business Analytics, Forecasting, Financial Planning: The Recipe for Impacting Performance Across the EnterpriseLarry Maisel, President, DecisionVu Group, Inc.

About Larry MaiselPresident, DecisionVu Group, Inc.

• A specialized management consultancy, with a track record of delivering measurable performance improvement to our clients by providing leading companies with innovative tools and capabilities and delivered by experienced practitioners who partner with you to deliver value to your organization.

• Client experiences include MetLife, TIAA-CREF, AIG, XL Capital, Merck, Pfizer, BMS, Citigroup, Federal Reserve, ASCAP, NBC, Fox Cable, and other Global companies.

• Prior career experiences include Senior Partner at KPMG Consulting, Executive at PeopleSoft and Balanced Scorecard Collaborative, and founder DecisionVu

• Frequent author, speaker, and adjunct professor at Columbia University’s Graduate School of Business and quest lecturer at Kellogg Graduate School of Management.

• BA Economics, MBA Corporate Finance, and CPA / CGMA

A recognized track record of thought leadership

Introductions

PBA Importance, Definition, and Examples

Develop Capabilities

Integrate Performance Management with PBA

Predictive Business Analytics - MetLife Case Study

Q&A

Discussion Agenda - Predictive Business Analytics (PBA)

Drowning in data but starving for information

Courtesy of www.garycokins.com

“Without interpretation, data is just numbers”

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage” Jack Welch

Courtesy of www.garycokins.com

Some Lessons are Self-Taught

Predictive Business Analytics grows in importance

Use predictive metrics to alert and guide organizations on the best next action to take.

Business and IT leaders often misinterpret the term "KPI" and don't actually have predictive measures in place.

Using historical measures to gauge business and process performance is a thing of the past.

To prevail in challenging market conditions, businesses need predictive metrics.

Gartner Survey:1

Using Predictive Business Performance Metrics Will Increase Profitability 20%

by 2017

90 percent of respondents attained a positive ROI from successful deployment of predictive analytics.

Among respondents who have implemented predictive business analytics, 66% say it provides ‘very high’ or ‘high’ business value.”

And alarmingly, “respondents that have not yet adopted predictive technologies experienced a 2% decline in profit margins, and a 1% drop in their customer retention rate."

Other Relevant Recent Studies Quantifying PBA’s

Value

1. Gartner Press Release (1/21/2014)

The enterprise of the future, will be more reliant on empiricism and analytical decision making, and indeed be considerably different from today’s enterprise.

Predictive Business Analytics – A Working Definition

A process encompassing a range of techniques dealing with the collection, classification, analysis, and interpretation of data to gain insight, reveal patterns, anomalies, key variables, and relationships.

The organizational capabilities within which these techniques are applied, interpreted, and communicated among key constituents whose roles and responsibilities are to plan and execute using such critical information and insights to drive faster, smarter, better decisions.

Today, several terms are in current use: Predictive Analytics Business Analysis Driver-Based Forecasting, and so on

While these underlying methodologies are valuable, they are still techniques of “How to do these actions”

Businesses are expected to possess the talent, tools, processes, and capabilities to gain forward-looking insight to drive business decisions and actions.

Available borrower data:- income- payment history- current debt- work history- etc.

Model = f (input data)

New loan applicant

Score

Compare individual score to benchmark data as part of Decision Management

Determining the creditworthiness of a borrower (banks)

Courtesy of www.garycokins.com

A Simple Example to Illustrate

Thank you for your interest in this presentation. View the on-demand webinar or download the full

presentation at:www.Proformative.com

Business Analytics, Forecasting, Financial Planning: The Recipe for Impacting Performance Across the Enterprise