DATA DRIVEN DECISIONS · environment, leaders need timely and actionable data to make strategic...

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DATA DRIVEN DECISIONS

Transform data into information

Independent Community Bankers of America

May 30, 2018

© 2018 RSM US LLP. All Rights Reserved.

Your Presenters

Technology and Management

Consulting

Performance Management &

Analytics – Central Region

Leader

Loretta Keyes

Manager

Technology and Management

Consulting

Christina Churchill

Principal

2


Objectives

Overview: In order to succeed in today’s fast-paced business

environment, leaders need timely and actionable data to make

strategic decisions. Financial Institutions have a lot of customer data

but traditionally have struggled with converting data into information.

Advancements in technology enable real-time reporting, easy to use

dashboards and customer analytics.

Attendees to this session will learn:

• What is Big Data?

• How do we determine the most useful leading indicators?

• What tools are available what work with our core application?

• And how to manage your data.

3


BIG DATA


What is Big Data?

Big data is a term for data sets that are so large

or complex that traditional data processing

application software are inadequate to deal with

them. Challenges include capture, storage,

analysis, data curation, search, sharing, transfer,

visualization, querying, updating and information

privacy.


How does it work?

Sunday Football

• Who do advertisers target? − 20 year-old men

• What ads do they run?− Beer, Big Trucks, Electronics, Wings, Horror Movies

What does data show us?

• 45% of NFL watchers are women

Big data, predictive analytics, artificial intelligence, machine learning and psychometric modeling, target consumers with precision.

Source: 2017 NFL Statistics, NFL.com, February 4, 2018


Why does Big Data matter?

Financial Institutions can improve, or modernize,

nearly every aspect of day-to-day activities.

Enables institutions to develop….

− operational efficiencies

− targeted marketing

− optimized transaction processing

− personalized wealth management advice

− product development


What’s the challenge?

8

How can we

analyze all this

data?

How do I know

which attributes are

important?

Is there an

easier way?

Where is the

data stored?

Where do

we start?

Why do

we care?We KNOW our

customers!We don’t have

“Data Scientists”

We don’t have

real-time dataWe’re too

small

ROI? Management

disinterestCost


Today, many environments look like this

General Ledger System Payroll Expense

System

CRM Revenue

System

MASSIVE

SPREADSHEETS

MASSIVE

SPREADSHEETS

YTD

Actuals

Dept B

Dept C

Dept A

V.1V.2V.3

And you have all of this for

budgets, actuals and forecasts!

Resulting in overwrites,

deletions, lost versions late

nights and confusion!

MASSIVE

SPREADSHEETS

Source: Prophix


Time for a CHANGE

and it only gets worse over time…

Additional

data source

Additional

data source

Additional

data source

More users

BUT IT DOESN’T

HAVE TO BE THIS WAY…


HOW TO DO IT

Source: Prophix


How to do it

Payroll Excel /

CSV

Core

System

CRM Data

Warehouse

Data Sources/Systems

Import / Integration Wizard

ModelsBusiness Definitions & Calculations

Reports and TemplatesInput Templates

Reports

Dashboards

Drill back to

view

transaction

data

Source: Prophix


ANALYTICS & REPORTING


Analytics & Reporting

Getting the Data

Data Analytics

Financial Reports

Visual Reporting

Automating Reports


What is Corporate Performance Management?

Outcome Benefit

Reduced time and effort CPM has proven to reduce budgeting, planning, forecasting and analytics time by 50-70%A

Increased automationShortens time to prepare an analysis or report, increasing analysts’ time spent on value-

added analysis/idea-creation

Faster resultsDelivers more timely (if not real-time) and accurate information to enhance and promote

objective data-driven decision making

Powerful analyticsEnhanced software tools allow for rapid consolidation of information and more powerful

analytical capabilities

Improved risk management Automated model controls – reduced model risk management demands

Single data truthIntelligently consolidating planning functions (i.e. forecasting, budgeting and reporting)

and providing a single truth of information

Enhanced organization

alignment

Effectively aligns corporate strategy with the execution of operations, enhancing integrated

planning

CPM is an umbrella term used to describe software applications that

automate your business’ budgeting planning and forecasting processes

and enable companies to define, analyze and execute strategic goals

relative to finances, operations, business modeling, analysis and key

performance indicators


How do we use CPM?

• Executing the organization’s strategy and objectives and improving performance

• Articulating a clear link between valuation/shareholders’ expectations and the drivers that influence profitability

• Creating a fact based decision making culture by linking metrics, planning, and decision making

• Setting targets and driving desired behaviors at each layer of the business

• Developing and testing alternative scenarios to facilitate planning capital and resource allocation

• Providing a cost effective platform for effective analytical processes thatare responsive to the business needs


A quick overview…

CPM Demo


Dashboard

18


Dashboard (Cont’d)

19


Drill Across

20


Drill Across (Cont’d)

21


Budget/Forecast

22


Cell Comments

23


Line Item Details

24


Dashboards

25


Dashboards

26


Reporting Packet

27


Reporting Packet

28


Reporting Packet

29


Reporting Packet

30


Reporting Packet

31


Core capabilities

CPM Core

Capability

Benefits

Budgeting

• Visible & interactive supporting details

• Integrated Top-down & Bottom-up budgeting

• Protected, flexible budget scenarios

• Visually appealing budget status updates

• Automatic budget to actual comparison

Personnel

Planning

• Formula control and accuracy

• Detailed employee compensation planning

• Department managers become accountable

• Unlimited workforce scenario planning

• Effectively manage turnover/promotion/ movement

• Flexible payroll reporting

Revenue

Planning

• Measure different revenue streams

• Evaluate revenue assumptions

• Accurately manage revenue budgets

• Continuously forecast revenue

• Consistently analyze & report revenue

Forecasting

• Routine and scheduled re-forecasts

• One step forecast adjustments

• User-defined driver-based forecasting

• Continuous rolling and what-if scenarios

• Leverage department assumptions

• Full financial cycle forecasting

Consolidations

• Consistent completion of data

• Enhanced validation & approval

• Repeatable, reoccurring consolidation

• All-inclusive currency translation

• Multiple consolidation levels supported

• Adaptability when changes are needed

Reporting

• Get the story behind the numbers

• One system, multiple report types

• Move beyond pre-defined general ledger reports

• Cross functional reporting requirements met

• Secure Institution-wide report distribution

Analysis

• Automatic variance breakdown

• Graphical trend analysis

• Complete data cross-examination

• End-user driven discovery

• Multi-level enquiry

Dashboards

Scorecards

• Transform your data into meaningful visuals

• Align your business to key goals

• Integrate with Microsoft Office

• Safe, encouraged data exploration

• Provide visibility into corporate status

Sales

Performance

Management

• Accurate and obtainable sales plan

• Enhanced visibility across the organization

• Transparency into final sales results

• Robust sales estimates

• Sales plan integration

• Better buy-in reported


Expected Benefits

Reduce

reporting

and

planning

cycle time

Minimize

time to find,

extract and

reconcile

data

Enhance

predictive

analytics

capabilities

Accelerate

responses

to ad hoc

information

requests

Ensure

“one

version of

the truth”

Improve

Product and

Customer

Profitability

Analysis

Data

collection

& reconciliation

Before

Analysis

After


Top 20 Big Data trends

• Forecasting

• Real-Time Data

• Workflow Automation

• Credit Decisions

• Security

• Compliance

• Cyber Crimes

• Customer & Market Trends

• Customer Behavior Models

• Updating Old Systems

• Personalization & Automation

• Fraud Detection & Prevention

• Block chain

• Machine Learning

• Automated Decision Making

• Mobile Products

• Payment Platforms

• Risk Management

• Digital Marketing

• Underwriting


DATA DRIVEN DECISIONS


Financial institutions have an opportunity to revolutionize the finance organization

• Avoid investments and decisions that only support “right now” – think about where you want to be 5 years from now

Few considerations for scalability

• Increase appetite for investments that promote long-term strategy

Budget constraints drive low risk tolerance

• Tools that hold valuable data are in place but are not being optimized to drive thoughtful decisions

Decisions are made without supporting data


Financial Institutions today require 24/7 finance support

Expectations

• Finance needs to be available to support the institution 24/7

• Responses to inquiries “after-hours”

• Processes can be “working” even when employees are not on the clock

• Automation, outsourcing, shared services, GBS, etc. are no longer options – they are necessities

Internal initiatives

• Leading institutions will continue to train internal resources

• Finance partners with HR to train employees and realign talent in the institution

• Employees no longer focus on transactional and administrative tasks – they dedicate their time to performing useful business analyses to drive strategy

Technology factors

• Implement technologies to support a “self serve” finance function which enables business units to access reports and other information without burdening finance

• Maintain a team in-house with the technology to monitor and support outsourced processes

The global nature of business, even for financial institutions, requires finance to

support the institution around the clock


Enable focus on making data-driven decisions to improve institutional performance

• Institutions are utilizing tools to harness

both internal and external data to drive

real-time decision-making and improve

performance

• Several data analytics platforms have

been developed for institutions and are

designed to be easily supported by

internal resources

Data analytics

Enhance decision-making

Implement dashboards

and KPIs

Uncover patterns and

trends

Sync up finance and operations

Predict and plan with accuracy

Improve performance


The path to revolutionize

Obtain organization and stakeholder buy-in

Secure funding for initiatives

Evaluate and prioritize opportunities for enhancement

Engage strategic business partners to assist

Ave

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e fu

ll fin

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tim

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e: 1

2-2

4 m

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