IBM Performance Management
Transcript of IBM Performance Management
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2008 IBM Corporation
Ag i li ty to transform your business wi th
IBM Cognos 8
Suneet
IBM India
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After this session you will understand
Find Out What IT Professionals Need to Know aboutPlanning
How IBM Cognos Enterprise Planning solutionssimplifies data and process management.
How IBM Cognos Enterprise Planning solutionsbrings greater business and IT governanceefficiencies to a traditional spreadsheet-based
process.
Session Object ives
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Agenda
Business Processes Addressed
External Influences / Internal Factors
Typical Pain Points and Who Cares
Cognos Solution
Value Opportunity and Why Cognos
Summary
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The IBM Cog nos 8 Performance Management System
Applications
& Blueprints
Access
& Interactivity
Universal
Capabilities
Business
Modeling
Performance
Management
Platform
Information
Infrastructure
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Cognos Performance Management
Cognos Performance Management Platform
provides:
Independentspans all data sources across your organization
Innovativeto meet the diverse needs of all business users
Focusedon best practices in Performance Management
Owned by the Office of Finance
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FINANCIAL PERFORMANCE MANAGEMENT
Enterprise Edition
StrategyManagement
and ScorecardingStrategy Communication
Strategy ExecutionStrategy Measurement
Enterprise Planningand Analysis
Strategic Finance
Revenue Planningand Forecasting
Expense Planningand Control
Workforce Planning
Capital Planning
Financial AnalyticsFinancial Performance
Analysis
Profitability analysis
Product, Operations,
Customer, Channel,Market analysisand optimization
Financial andManagement
ControlFinancial Consolidation
Financial Reporting
Corporate Reporting
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Plann ing Processes
What it is Primary Use Horizon/Frequency Who is Involved
Strategic Plan: A disciplined effort todefine fundamental decisions andactions that shape and guide anorganizations future addressing what theorganization is, what it does, and why itdoes it
Define vision, SWOT, high levelcorporate goals and objectivesand strategies for how to attainthem
Horizon: 3-5, sometimes 10years
Frequency: 1/year
Corporate Execs Senior Mgmt. Strategy Finance
Budget/ Annual Operating Plan:Projection of revenues, expenses andcash for a specified period of time. (1styear of SP). Identifies targets, at the lineof business, functional or cost center
level
Financial guide for the currentyear: control expenses, evaluateperformance and determinebonus compensation
Horizon: 1 year, acrossmonths, Qtrs, weeks
Frequency: 1/yearInfrequently updated
Corporate Planning Line of Business
Managers Cost Center managers
Forecast: A period by period projection ofeither revenue or expense that considersactuals to date and any changes tomarket conditions
Provides the most currentestimates for the balance of theyear/horizon
Horizon: Balance of the yearor Rolling week, month,quarter, Annual.
Frequency: Refreshed often
Corporate Planning Line of Business
Managers
Modeling: Process of developing modelsthat characterize an organizationallowing it to evaluate the impact of
decisions to understand fully thefinancial impact
What-If Analysis Acquisition modeling Scenario Analysis
Define contingency plans
Ad-hoc Corporate Planning Strategy Sales/HR/IT
Reporting: Collection, analysis,summarization and presentation of thefinancial performance of the business
Comparison with actual Cause & effect Analysis
Horizon: VariousFrequency: Monthly, Qtrly,Annual, Ad-hoc
Corporate Planning Reviewed at all levels
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Financ ial Perform ance Management Chal lenges
Spreadsheets Failing
there have been well-documented cases oferrors and losses resulting fromspreadsheet manipulation errors andaccidents.Source: Gartner, August 2010
Disparate Systems
Average finance organizations operate 11finance systems per billion dollars ofrevenue.Source: Hackett Group, 2011
Business Risks
62 percent of enterprises encountered amajor risk event 42 percent of these
enterprises were not well prepared for theevent.Source: IBM Global CFO Study 2012
CFO
ControllerTax /
Treasury
FP & A
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Chal lenges w ith Plans and Forecasts
PAIN: Inability to deliver timely, reliable forecasts &plans that align operational tactics with financial targets
PLANS & FORECASTS
DisconnectedPlans
Infrequent UnreliableForecasts
Weak Top-Down
& Bottom-upCoordination
FP & A
Key Pains Long budgeting
processes.
Use ofspreadsheets tomanage theplanning process.
Unreliable budgetsand forecasts fordecision-making.
!! !
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Closer Look at
Chal lenges with Plans and Forecasts
FP & A
Key Pains Long budgeting
processes.
Use ofspreadsheets tomanage theplanning process.
Unreliable budgetsand forecasts fordecision-making.
!! !
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Benef its of IBM Cognos
Enterpr ise Planning Solut ions
IMPACT: Timely, reliable forecasts & plans that alignoperational tactics with financial targets. Better, confidentresource allocation decision-making.
PLANS & FORECASTSFP & A
How IBM Cognos
adds value
Top-Down
& Bottom-UpAlignment
Timely, ReliableForecasts
ConnectedPlanning Models
We understand the valueof finance managedsolutions.
Enable a vision ofBeyond Finance
Drive Best Practicesthrough the InnovationCenter and Blueprints
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IBM Cognos Solut ions
Replaces spreadsheet-only processes
Engages the whole organization to
make better informed decisions Replaces rigid, annual budgeting with
continuous planning for higherresponsiveness
Supports best practices such as drivebased planning and rolling forecasts
Connects operations and finance
Enterpr ise Plann ingPlan, forecast and control enterprise resources
IBM Cognos 8 Planning
IBM Cognos TM1
Performance Blueprints
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IBM Cog nos Solut ions for Enterpr ise Planning
PLANS & FORECASTSPre and Post-Planning
Alternative hierarchies,
Allocations, Reporting and
Analysis
Collaborative
Plan & Forecast
Emphasis on user
experience; workflow;
auditability and processcontrol
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Post-Planning
Goal seeking, Allocations
High Participation Plan &
Forecast
Pre-Planning Analytics
Alternative hierarchies, trending
ENTERPRISE PLANNING
IBM Cog nos 8 Plann ing and TM1
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PERFORMANCE MANAGEMENT ROADMAP
Embrace and Extend Your Existing Infrastructure
ADDRESS
Initial Needs1
DRIVE
Best
Practices
EXTEND
Enterprise-
Wide
ADVANCE
Performance
Management
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
2 3 4
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Automating the Planning Process With Cognos Planning & TM1
100% Web : Consumption
Integration with Cognos PM portal
Integrated EXCEL capabilities
Familiar EnvironmentsWeb, Excel
Centralized Control andManagement
Central application management
process, deployment, security
Centralized Modeling Approach
4
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DRIVE BEST PRACTICES
ADDRESS
Initial Needs1EXTEND
Enterprise-
Wide
ADVANCE
Performance
Management
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE
Best
Practices2 3 4
Cognos Innovation Center Performance BlueprintsSupport Best Practices
DRIVER BASED PLANNING
ROLLING FORECASTS
TIMEFRAME-APPROPRIATE
PLANS
HIGH PARTICIPATION &
DATA VOLUMES
A WIDER / DEEPER VIEW
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BEST-PRACTICE
THOUGHT LEADERSHIP
Norton
BSColAxson
Sonax
Hope
BBRTRoth
Hackett
RESEARCH, CASE STUDIES, PUBLICATIONS
ASSETS, RESOURCES, EVENTS
MEMBERS AND PEER NETWORK / COMMUNITY
Business Content
Customer Forums
Strategy Development
Performance Blueprints
ADDRESS
Initial Needs1EXTEND
Enterprise-
Wide
PM for
Strategy
Execution
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE
Best
Practices2 3 4
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Enterpr ise Plannin gPerformance B luepr ints: Funct ional Solut ions
FUNCTIONAL SOLUTIONS
Strategic FinancialPlanning & Forecasting
Strategic Long RangePlanning
Risk Analysis
Sales Planning& Forecasting
Sales CompensationPlanning
Workforce Planning
Expense Planning &Control
Allocations
Capital Project
Planning Discretionary Capital
Expenditure
Initiative Planning
Pre-configured solutionbuilding blocks that:
Pool collectivebest-practice knowledge
Accelerate time-to-value
Increase project success rate
WORKFORCEPLANNING
SALESPLANNING &
FORECASTING
STRATEGICFINANCIAL
PLANNING &FORECASTING
EXPENSEPLANNING& CONTROL
CAPITALEXPENDITURE
PLANNING
HUMANRESOURCES
SALESFINANCEFINANCE
OPERATIONS,MARKETING,ETC.
DepreciationExpenses
Reports
Income StatementsBalance Sheet
Cash flow
Financial Ratios
CapEx
Operating
Expenses
Headcount& CompensationExpenses
RevenuePlan
MarketDemand
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EXTEND Enterpr ise - Wide
Link operational plans
to financial plans
Increase forecast
reliability
Performance Blueprints
accelerate
implementations
ADDRESS
Initial Needs1ADVANCE
Performance
Management
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE
Best
Practices2
EXTEND
Enterprise-
Wide3 4
Cognos Solution Map Industry PerformanceBlueprints
Model the Whole Business
Financial Services
Life Sciences
Retail
Public
Sector
Manufacturing
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Extend Enterpr ise WideCont inued Investment in Indu stry Bluepr ints
Pharmaceuticals & Life Sciences
Clinical Trial Planning
Samples Optimization (Joint w/ TM1)
Clinical Trial Enrollment Forecasting
Sales Quota Allocations
Banking & Financial Services
Retail Branch Performance
Retail Banking Customer Segment Performance
Corporate Banking Customer Segment Performance
Insurance Product Profitability
Cognos & IBM Risk Adjusted Profitability for Banking Business Partner BP
Loan Pricing
Manufacturing
Trade Promotion Management
S&OP Executive Review
Sales & Operations Planning
Transportation and Logistics Performance
Public Sector
Program Objective Memorandum (POM)
Grant Thornton & Cognos Federal Budget Planning &Performance FrameworkBusiness Partner
BearingPoint POM Budget PlanningBusiness Partner
Higher Ed Performance
Mayors Scorecard
Retail
Store Operations
Store Development
Promotion Planning
Merchandising Performance Management
Retail Financial Workbench
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ADVANCE PERFORMANCE MANAGEMENT
ADDRESS
Initial Needs1
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE
Best
Practices2
EXTEND
Enterprise-
Wide3
ADVANCE
Performance
Management4
IBM Cognos PerformanceManagement Platform
Continuous Business AlignmentPervasive PerformanceManagement
Applications & Blueprints
Access & Interactivity
Universal Capabilities
Business Modeling
Performance Management Platform
Information InfrastructureInformation Infrastructure
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PERFORMANCE BLUEPRINTS
What they are:
Pre-defined data, process and policy model
Developed by Cognos Innovation Center
In conjunctionwith leading customers
Enables best practices Driver-based
High Participation
High Frequency
Enables rapid time-to-value
Reduced project implementationtime and risk
BUSINESS VALUE GUIDES
APPLICATION BRIEFS
BLUEPRINT MODELS
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BUSINESS VALUE
Links operational causes to financial effects
Finance can quickly see the impact of changes in
operational plans on corporate financials
Departments and functions can intelligently improve
resource allocations in support of corporate objectives
Ensures consistent set of corporate guidelines
Delivers value out-of-the-box
A head-start for implementation
Based on best practices
Reduces implementation project time and risk
Improves project success rate
Accelerates time-to-value
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Addi t ional Resou rces For You:
Continue your learning
Cognos Planning Analyst Model Building
Cognos Planning Contributor Application Administration
Cognos Planning Fast Track
Get implementation assistance
Download the Cognos Solutions Implementation
Methodology & roadmaps for BI, Migration & Conversion
Ensure success with services from Cognos Consulting
Leverage additional customer resources
Proven Practices & other valuable Support resources
Cognos Innovation Center
Whitepapers
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Key Principles
Structure and automate the process Owned by Finance
Managed by IT
Adopt Best-Practices
Driver-based planning
Rolling Forecasts
Engage all the right people
Forecast frequently
Radiate Beyond Finance
Synchronize financial and operational plans
Performance Management for Strategy Execution
Link strategic objectives to the resource allocation process
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Summary of Key Points
Improving performance managementrequires more than automating theexisting planning, budgeting, andforecasting process
Leading companies are adopting best-
practices and moving performancemanagement beyond finance.
IBM Cognos can help you reduce thetime and risk to drive greater business
value.