IBM Business Analytics Software_Keynote Jerome Lefebvre

© 2013 IBM Corporation© 2013 IBM Corporation

IBM Business Analytics software for Performance Management

Jerome Lefebvre, Directeur commercial Europe Performance Management, IBM Suisse11 juin 2013

© 2013 IBM Corporation

Analytics has evolved from business initiative to business imperative

63%

58%

37%

2012

2011

2010 70%increase

Source: 1 2010 and 2011 datasets © Massachusetts Institute of Technology. 2 Analytics: The real-world use of big data. 2012 Study conducted by IBM Institute for Business Value, in collaboration with Säid Business School at the University of Oxford.

3.6x

Likelihood of organizations competing on analytics to outperform their peers2

Percentage of respondents who cited a competitive advantage from the use

of information and analytics1,2

2012


ANALYTIC-DRIVEN ORGANIZATIONS are distinguished by their ability to leverage …

All perspectives

Past (historical, aggregated)

Present (real-time)

Future (predictive)

At the pointof impact

All decisions

Major and minor

Strategic and tactical

Routine and exceptions

Manual and automated

All information

All information

Transaction data

Application data

Machine data

Social data

Enterprise content

All people

All departments

Experts and non-experts

Executives and employees

Partners and customers


Human Resources

CustomerService

Sales

Marketing

Finance & Risk

SupplyChain

Technology & ProductDevelopment

Increase operational efficiency

4

Transform financial processes

2

3Manage risk, regulation & compliance

Grow, retain and satisfy customers

1

Weaving analytics into the fabric of enterprise processes to help build smarter businesses


• Advanced client segmentation• Leveraging customer sentiment analysis • Reducing customer churn

Customers

• Optimizing the supply chain • Deploying predictive maintenance capabilities• Transform thread & fraud identification processes

Operations

• Enabling rolling plan, forecasting and budgeting• Automating the financial close process • Delivering real-time dashboards

Finance

• Making risk-aware decisions• Managing financial and operational risks• Reducing the cost of compliance

Risk

1

4

23

Examples:

Smarter Analytics addresses key functional and industry imperatives and drives accelerated outcomes

Grow, retain and satisfy customers

Transform financial processes

Manage risk, fraud & regulatory compliance

Increase operational efficiency


Financial Sector Public Retail Industrial Communications

Customer

Create a Customer-centric

Enterprise

Improve Citizen Services

Optimize the Shopping

Experience

Plan & Forecast Demand

Reduce Customer Churn

FinanceEnsure Financial

Transparency

Manage Resources Effectively

Demand Planning

Sales and Operations Planning

Optimise Capex and Opex

Risk

Optimize Risk and Manage Compliance

Reduce Fraud and Waste

Manage Operational Risk



OperationsStreamline Operations

Measure Program

Performance

Improve Store Operations

Enable Predictive Maintenance

Build Smarter Networks

1 2 3 4 5

Smarter Analytics leverages IBM’s strong industry experience to help clients address key imperatives


Performance management promises big impact

Who are our most profitable products, customers, markets

and channels?

Do demand forecasts exceed capacity?

Are we focused on the right metrics?

How much of our profit and growth is at stake in high-risk geographies?

Do current strategies deliver sufficient profit

and growth? Where can we trim?

Automate analytic processes

Drive new insight and agility

Advance analytic maturityAQAnalytics quotient

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

(1)

(1) Source: CFO Executive Board 2011; IBM Analysis

Are we aligned and coordinated across

customer, operations, finance and risk?


What makes IBM different:•One, in-memory analytic and planning architecture to span performance management processes•Scale to large user communities and data sets•Easily link operational and financial performance management•Support advanced analytic techniques (e.g., scenario and predictive)

8

Management & PerformanceReporting

Financial Performance ManagementAlign resources with opportunity

Scorecarding& Strategy Management

Profitability Modeling & Optimization

Planning Analysis & Forecasting


Challenge

� Identify areas to boost financial performance as part of a best in class, corporate-wide productivity initiative.

Solution

� Integrated planning cycle reduced data mining activities by up to 80%.

� Conducted sensitivity and scenario analyses enhancing visibility, generated insights and increased productivity savings.

Results

� Accelerated productivity savings to 4% of cost of goods, approximately $100 million per year.

� Enhanced integrated planning cycle through better risk and sensitivity analysis.

� Reduced transportation costs through optimization resulting in savings of over 40 million miles

� Delivered 80% savings in supply planning efforts – moving from 5 days to one.

Del Monte Foods is a well-known producer and distributor of premium quality, branded food and pet products for the U.S. retail market, generating approximately $3.7 billion in net sales in fiscal 2010. The business is split 50:50 consumer packaged goods and pet products.

Hear it first hand: http://www.youtube.com/watch?v=3rFtrCzfWVQ

Financial Performance ManagementWhat if you could increase productivity and reduce costs?

9

Del Monte

© 2013 IBM Corporation10

Operational Performance ManagementConnect and drive finance & operational coordination


























Operational Performance ManagementConnect and drive finance & operational coordination





























What makes IBM different:•One, in-memory analytic and planning architecture to span performance management processes•Scale to large user communities and data sets•Easily link operational and financial performance management•Support advanced analytic techniques (e.g., scenario and predictive)











Challenge

� Significantly reduce the cycle time of their financial budgetingprocess.

Solution

� Streamlined budgets and planning processes

� Collect and analyze sales plan data by customer and across over 30,000 skus and evaluate the resulting profit contribution of product input in the “bill of material”

Results

� Diagnose profit improvement moves ahead of time; commodity price increases can be passed on to consumers or renegotiated with industrial customers. Maybe even reformulate some of our favorite flavors using commodities from different regions and suppliers.

McCormick is a global leader in flavor. With more than $3.5 billion in annual sales, the Company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retail outlets, food manufactures and food service businesses in more than 110 countries.

Operational Performance ManagementCould you measure profit contributions of each ingredient?

11

McCormick


What makes IBM different:•Purpose-built to support range of compensation approaches and sales operations processes across industries •Scalable to high volume data sets, complex hierarchies and enterprise-wide program requirements •Flexible data model for reduced data transformation•Visual flow approach for configuration by business users

12

Sales Performance ManagementAutomate the processes and functions for making salespeople moreefficient and effective

Territory Management

Quota Planning

Incentive CompensationManagement

ChannelManagement

$£€


Sales Performance ManagementCould you make sure you are paying your commission properly?

Elavon is a major processor of credit card transactions and a subsidiary of U.S. Bancorp. The company offers merchant processing in more than 30 countries and was founded in 1991 in Atlanta.

Challenge

� Reduce the cycle time associated with incentive compensation processing and eliminate manual spreadsheets

Solution

� Automate payment calculations, including hundreds of millions of transactions

� Provide accurate and timely reports to plan participants

� Improve management visibility and flexibility

Results

� Increased payment accuracy and reduce monthly processing from two weeks to two days

� Improved transparency of employee performance across the company, along with the flexibility to adapt the solution to meet its unique and changing requirements

Elavon


Carrefor

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• Reallocation

• Replenishment

• Markdown

Merchandise Planning steps and tools

At the country level, the role of Merchandise Planning is…

• Before the year, season or collection have begun

• During sales, or season/collection

• Around 7 steps (detailed further on)

• With dedicated tools

…to cover the full life cycle of the product

…to pull 3 main levers…to lead financial and product performance













• Reallocation• Replenishment• Markdown





• Reallocation• Replenishment• Markdown





• Reallocation

• Replenishment

• Markdown




…to lead financial and product performance

…to pull 3 main levers…to cover the full life cycle of the product








• Reallocation

• Replenishment

• Markdown





…to pull 3 main levers…to cover the full life cycle of the product

…to pull 3 main levers…to lead financial and product performance


…to pull 3 main levers


«Le réel n'est jamais ce qu'on pourrait croire, mais il est toujours ce qu'on aurait dû penser. »Gaston Bachelard


Disclaimer

IBM Business Analytics Software_Keynote Jerome Lefebvre

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