utilizing data analytics to improve performance
Post on 21-Jan-2018
74 Views
Preview:
TRANSCRIPT
Utilizing Data Analytics to
Improve Performance
June 15, 2016
Sponsored by:
Kevin Surovcik
Al Bruce
www.netsuite.com
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Webinar Features
Should you experience any technical difficulty, please click the “Help” icon at the bottom of the console for audience support.
Audio Broadcast: ► You should hear sound through
your computer speakers or
headphones
► To listen to the audio by telephone,
click the “Request Call-in” icon on
the bottom Panel for teleconference
Asking Questions: ► Questions may be submitted
using the Q&A icon on the left
side of the console
► Questions will be addressed after
the formal presentation
Pop-up Blockers: ► Please temporarily disable your
internet pop-up blockers
Volume Slider
2
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Join the Conversation
#InsideTalk
@IMA_News
3
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
• Download a PDF of the slides
– Resources icon
– Link in post-event email
– IMA Webinar Library
• IMA Members can also view this webinar again
www.imanet.org/programs_events/imawebinars.aspx
Visit IMA’s website:
Webinar Materials and Access to Recording
4
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
5
• CMAs, CFMs & CPAs can report 1 hour of CMA and
NASBA approved CPE for today’s event.
• Click the “CPE” icon at the bottom of your console to
access your Certificate of Completion. Please print
or save for your records.
• Your CPE credit will be automatically recorded in
your transcript.
CPE Credit Requirements
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Moderator
Steve Shannon
Director
Partnership Marketing
IMA
6
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Featured Presenter
Al Bruce Cloud Solutions and Enabling
Technologies SME Senior Manager, Business Advisory Services
Grant Thornton
7
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Featured Presenter
Kevin Surovcik NetSuite and Enabling Technologies
Practice Lead Principal, Business Advisory Services
Grant Thornton
8
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
9
Learning Objectives
Upon completing this webinar, you will be able to:
1. Understand how to better assess and measure budget
tradeoffs related to investments
2. Recognize how data patterns can be used to predict
and guide performance improvements
3. Explain how data analytics can be used to assist your
organization with its bottom-line financial performance
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Performance Improvement
10
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Lets start with the quantity of data
11
2009
0.8 ZB
The digital universe – 2009 through
2020
Growing by a factor of
2020
35 ZB
A zettabyte (ZB) is a really big number
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
The Source of data
12
Streaming from daily life
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
"There is a big data revolution, but it is
not the quantity of data that is
revolutionary. The big data revolution is
that now we can do something with the
data."
Why do analytics matter?
13
Gary King,
Director of Harvard's Institute for Quantitative Social Science (IQSS)
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
14
Polling Question 1
a) Chief Financial Officer
b) Chief Information Officer
c) Chief Operating Officer
d) Not yet defined
e) Other
Who is responsible for your company's BI / business analytics?
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Polling Question 1 Results (Placeholder)
15
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Purpose of the Finance Function
16
Measure financial health and allocate capital to meet strategic objectives
Interesting questions:
1. How do changes in the leading indicators
impact the lagging indicators?
2. How do we align the business functions
to maximize our objective?
3. What are the constraints in the business?
What are their economic values?
4. How will capital projects impact the
financials given those constraints and
other capital projects?
5. What is the best we can do under any
given set of circumstances?
Financial accounting:
• Income statement
• Balance sheet
• Cash flow statement financial health
lagging indicators
Management accounting:
• Fixed costs
• Variables costs
• Contribution margin capital allocation
leading indicators
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
71% of CFOs have seen their overall level of
strategic influence increase over the past years
New Role of Finance
17
Source: 2014 CGMA Survey
Reporting Insight and Action
Control Enabling Innovation
Cash Management Execution
Efficiency Agility
Data Gathering Risk Management
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Sensing and Responding
18
The basis of competition in this dynamic environment
Sense
Analyze
Respond
Human factor dominant:
decisive action
• Mid-course corrections
New "battlefield " drivers
• Mean time To detect
• Mean time To respond
Growing capability
and ubiquity
• transactions and
operational data
Technology rich and capability
constrained
• Meaningful and useful
information related to event,
cause, impact and options
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Flight Analogy: Knowledge and Technology
19
DALLAS
MEXICO
CITY
1◦
LONDON
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Business Analytics Barriers
20
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Takes too long
Labor-intensive
Data integrity/accuracy/reliability issues
Calculations are difficult to audit
Limited communication/collaboration
Functionality doesn't meet enough of my needs
Difficult to make changes
Limited ownership/accountability
End result is often already out of date
Not integrated with performance reporting system
All other responses
BPM Pulse Survey Results, December
2013
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Analytics Definition
21
Making data timely and actionable
• Data is
historical
• Decisions
are about
the future
• Leverage
knowledge
and
technology to
bridge the
gap
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
22
Polling Question 2
a) Descriptive
b) Descriptive and diagnostic
c) Descriptive, diagnostic and predictive
d) Descriptive, diagnostic, predictive and prescriptive
e) None
What types of analytics are you using to support decision- making in the business?
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Polling Question 2 Results (Placeholder)
23
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
The Process of Using Data Analytics..
24
Analytics can help you… • Continuous, iterative exploration
and an investigation of past business performance to gain insight and drive business planning for the future.
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Analytics can help you…
25
Analytics can help you… • Validate trends
• Pinpoint root causes of issues
• Comprehensively view performance • Illustrate future possibilities
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Results can be used to…
26
• Streamline operations
• Increase cost efficiency
• Optimize financial margins
• Forecast performance
• Improve budgeting
• Enhance mission
effectiveness
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Prescriptive Difference
27
The enterprise: all financial, operational, regulatory constraints
Forward-looking content:
1. Collaboration + trust in cross-functional planning
2. Optimal course of action defined in planning cycle
3. Fast and low cost-of-ownership (agility)
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
So where to start?
28
Close
Books
Consolidate
Financials
Report
Results
Analyze
Close FP&A
Efficiently
Repeat
Plan
and Model
Source: Adaptive Insights
28
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Information Everywhere
29
Source: Adaptive Insights
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
30
Polling Question 3
a) The cost of incorporating advanced analytics
technologies into current business processes
b) Achieving key stakeholder buy-in
c) Time spent to implement technology
d) Change management efforts within the organization
e) Generating adequate ROI
f) None of the above / Other
What is your biggest business concern with incorporating analytics into your planning cycles?
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Polling Question 3 Results (Placeholder)
31
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Leading Strategies
32
• Collaboration and Buy-in
• Flexible Framework
• Invest in Technology
• Data Governance &
Integration
• Hierarches Drive Analytics
• Single Repository
• Establish Performance
Metrics
data analytics
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Data Analytics = Humans, not just IT
33
Leadership must champion
integrated decision-making through
stakeholder representation, inviting
a variety of perspectives.
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Elevate Engagement
34
A cooperative
arrangement in which
two or more parties
(which may or may
not have a previous
relationship) work
jointly towards a
common goal.
"Few things in life are less efficient than a group of people trying to write a sentence. The advantage of this
method is that you end up with something for which you will not be personally blamed."
Scott Adams
"Coming together is a beginning, staying together is
progress, and working together is success."
Henry Ford
Need to share data and collaborate with teams across the enterprise
HR
Finance
Sales
Marketing
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Creating a Framework for Flexibility
35
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Invest in Technology
36
Software Licenses
9%
Hardware
IT Personnel
Maintenance
Training
Customization &
Implementation
68% Subscription Fee
Customization
Implementation
& Training
On-Premise Software Cloud Computing
43%
26%
14%
7%
1%
32% T
C
O
T
C
O
Source: Yankee Group DecisionNote Technology Analysis
“Customers can spend up to four times the cost of their
software license per year to own and manage their
applications.”
– Gartner
“The End of Software”
“Cloud computing yields substantial economies of scale
and skill, and lowers total cost of ownership (TCO).”
– The Hurwitz Group
“The Compelling TCO Case for Cloud Computing”
77% less than
On-Premise
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
37
Polling Question 4
a) Not enough data
b) No trust in the data
c) No adequate reporting system in place
d) Lack of understanding
e) None of above / other
What is your biggest technical concern with incorporating advanced analytics into your planning cycles?
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Polling Question 4 Results (Placeholder)
38
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Data Governance & Integration
39
Data governance focuses on terminology
Customers
Financials
People
Product
Suppliers
Data Governance:
Provides the controls for applications, dimensions, and processes to support alignment of
disparate systems through understanding business
TERMINOLOGY
Organization and
Processes
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Hierarchies Drive Analytics
40
Glue for business harmony
Role and function of data governance
• Merger and Acquisition
• ERP consolidation
• Financial and Operational Alignment
• Chart of Accounts management
Govern
Rationalize
Sh
are
C
on
tro
ls
ERP
• OBI
Financials
Analytics
CRM
(e.g., NetSuite)
.
EPM
• Planning
• Consolidation
• Profitability
EDW
• Subject Area
Marts
• Source Marts
Hierarchy
Structure
Data integration strategy
• Owned and driven by the business, with IT
controls
• Connecting capability of ERP transactions to
EPM models (profitability, planning, consolidation)
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Centralized Visibility
41
B u d g e t
• Report
• Share
• Drill-down
• Analyze
• Refresh
• Compare
• Decide
• Take Action
Actuals
Forecast
R e p o r t i n g
Management
F i n a n c i a l
Centralized
Visibility &
Insights
Common Visibility
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Establish Performance Metrics
42
Nimbleness &
Improved
Decisions
Reports Plans
KPIs
Sales
Plans
Sales
Ops
Finance
Finance
Plans
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
43
Case Study #1
Grant Thornton Solutions • Evaluated current business systems and processes; Provide direction on future state Analytics
• Worked closely with implementation teams ERP and HRIS. Coordinated data requirements and sourcing strategy for analytics solution
• Integrated data from ERP, customer and proposal database, various third party, home grown systems to provide broad and thorough data warehouse
• Leveraged analytics features for forecasting and planning implementation
Benefits and Values Achieved • Implemented Projects Analytics and Financials Analytics for better visibility
• Reduced time and resources for creating reports with automated methods for report generation
• Secured more time for improved analysis and insight
• Created integrated and comprehensive framework
• Leading global clinical research organization providing full range of early- to late-stage clinical development services
• Situation: Due to tremendous growth, business model began to overwhelm its technologies; Burdened by overly manual processes and cumbersome spreadsheets to manage the business
Company Overview & Situation
Leading Global Clinical Research Organization
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
44
Case Study #2 US-based Healthcare and Pharmaceutical Company
Grant Thornton Solutions
• Enabled the management of a global, a corporate, and multiple subsidiary chart of accounts across several ERP's
• Provided integration of mapping logic support local data loading and analytics requirements
• Automated integration for Budgeting, Planning, and Forecasting System
• Implemented various work streams: – CoA Deployment
– High Availability
– Corporate Planning
– Governance
Benefits and Values Achieved • Enhanced effectiveness of financial analysis, reporting and decision-making by mapping current subsidiaries and future
acquisitions into a single aligned Corporate CoA utilizing Grant Thornton Accelerator
• Provided comprehensive dimensional master for Corporate Planning, Budgeting, and Forecasting
• Ensured data consistency between corporate planning and accounting
• Resolved reconciliations differences with dimensional mismatches
• Enabled integration of business dimensions into financial DW initiative
• Provided “Acquisition Playbook” for integrating financials of acquired companies through common definition and mapping to subsidiary specific dimensional requirements
• Created rapid and seamless integration of CoA and financial analytics for management, regulatory, and tax-related reporting
• US-based diversified healthcare company finding solutions
• Situation: Selected a system integration and acquisition growth.
Company Overview & Situation
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Final Comments:
45
• Invest in technology (e.g., data warehouse and analytical
tools) to capture desired data and create correlations.
• Establish performance metrics beyond financial measures
and agree on mission-driven indicators. …Customer
Safety, Customer retention, Mission and Event Outcomes
• Acknowledge the human element and the importance of
effective change management.
• Build collaboration into the process in order to view the
organization as a whole rather than as a collection of
departments and interests.
Prepare your organization for optimal
results:
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Final Comments:
46
• Develop or acquire personnel to bring data analytics and
business intelligence skills into your organization.
• Commit to act on the trends and insights discovered
through data analytics
• Create a cross-functional steering committee that can set
aside other biases in order to act on the analysis.
• Dedicate organization-wide focus to an ongoing data
analytics program, as opposed to conducting a one-time
exercise.
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Benefits of Data Analytics
1. Closing the gap between ideas and results
2. Faster to market
3. Practical, executable recommendations
4. Greater resilience
5. Improved performance
6. Intelligence in the moments and a stronger
capability for predicting the future
47
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
This Grant Thornton LLP presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenters and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered.
For additional information on matters covered in this presentation, contact your Grant Thornton, LLP adviser.
Disclaimer
48
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Questions & Answers
Use the Q & A Panel to send your questions to our panelists.
49
Kevin Surovcik
NetSuite and Enabling
Technologies Practice Lead
Principal, Business Advisory
Services
Grant Thornton
Al Bruce
Cloud Solutions and Enabling
Technologies SME Senior
Manager, Business Advisory
Services
Grant Thornton
Steve Shannon Director
Partnership Marketing
IMA
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
Thank You to Our Featured Presenters!
50
Kevin Surovcik
NetSuite and Enabling Technologies
Practice Lead Principal, Business
Advisory Services
Grant Thornton
Al Bruce
Cloud Solutions and Enabling
Technologies SME Senior Manager,
Business Advisory Services
Grant Thornton
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
51
► Complete the Evaluation poll – 2 Options
• On your screen
• Resources Icon
► Access to your CPE Certificate – 2 Options
• Click the “CPE” icon at the bottom of your console
or
• Click the link in your post-event email
► Please print a copy of the CPE certificate for your records.
► Your CPE credit will be automatically recorded in your transcript.
Final Reminders
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
52
Next Inside Talk Webinar:
• Transform Your Spreadsheets to Deliver Smarter Planning, Budgeting, and Forecasting
• Wednesday, June 22, 2016, 1 p.m. EDT
www.imanet.org/programs_events/IMAWebinars.aspx
For Upcoming Inside Talk Events:
• Visit IMA’s website at
www.imanet.org/programs_events/IMAWebinars.aspx
• Log-in with your User Name & Password
• Remember to check IMA’s Learning Spotlight for upcoming webinar events
Notification of Future Webinar Schedules
© 2016 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk
53
Thank You to Our Sponsor!
www.netsuite .com
top related