EPM has had no dearth of technology and buzzwords

Excel HyperionMonte Carlo Simulation

Sensitivity & Scenario Analysis

BI Tool Predictive modelling

Cognos SAP

Oracle

Data Marts

Zero-based budgeting

Yet EPM maturity today is underwhelming

Management reports are manually collated in Excel60%

Time is spent on data gathering Vs. analysis50%

Organizations carry out ad-hoc, manual data testing61%

DRIVING ACTION FROM INSIGHTS

Too late

Too little

More information, fewer insights

More past than future

More internal than external

Will it be different with digital?

Internet of Things

Machine Learning

NLG

Big Data

Integrated Business PlanningCognitive

NLP

Hadoop

Social, Mobile, Analytics, Cloud (SMAC)

Yes, if we can reimagine 5 cornerstones for EPM transformation

Standardization with

mass customization

Operating model for

specialization

Literacy and numeracy

Experience drives

effectiveness

Agility >= accuracy

1 2

3

4

5

Standardization with mass customization - e-commerce gets it

400+ flights, 257,000 Properties, dozens of rental car companies

Our Common Database

140+ different front ends

Experience drives effectiveness - the secret behind successful digital

assets

Bloomberg

Professional

Bloomberg TV + Bloomberg

Business

Bloomberg

Business for

Apple Watch

Bloomberg

Radio+

Bloomberg

Businessweek+

Mass customization and experience enhancement can overcome

fundamental EPM challenges

Business unit performanceSales Department

Marketing Department

Regional performanceSales Department

Marketing Department

Sales performanceSales Department

Marketing Department

Production performanceSales Department

Marketing Department

COGS spendSales Department

Marketing Department

A&SP spendSales Department

Marketing Department

9© 2015 Copyright . All Rights Reserved. 9© 2015 Copyright . All Rights Reserved.

TYPICAL SITUATION

Extraction Transformation Load

Source level data governance

Data transformation leads to

opaque data lineage

Visualization

Application

Modelling

Reporting

DATA

SOURCES

Define data sources and

governance

Consistent Operational

model

INTERNAL EXTERNAL BOTH STRUCTURED UNSTRUCTURED

Multiple information supply

chains

Embedded governance in information

supply

Digital advancement allows flexibility in data and computation models

Our experience with clients validates the hypothesis

Agility >= accuracy

200m

400m700m

Low Fuel

Unfortunately most EPM efforts are skewed towards the past

Poor data quality

Legacy technology

Driving the last point of accuracy

Bottom-up forecasting

Rolling forecasts

Driver-based forecasting

80:20 rule

Digital leverage

80%

20%

50%

50%

Past

Forward

looking

Past

Forward

looking

Example : SKU-level prices impact forecasting for CPG companies based

on real-time input price variation

Structured

Data

Unstructured

Data

Procurement plans

Operating plans

Materials movements

Competitors plans

Commodity exchange

Weather forecasts

Political movements

Customers preferences

Machine learning

(NLP/NLG)

Cognitive

SKU linked

profitability report

Price and scheme

optimizer for each

SKU

Scenario analysis at

SKU level

Literacy and numeracy: it's no longer enough to only deal with numbers

Effective EPM combines the qualitative and quantitative

Past performance

News feed Industry prospects

Financial score

Market & business

insights

Structured &

unstructured

internal data

Example: fundamentally changing the planning and forecasting cycle

Forecast Strategic

Plan

Annual

Contract

Action

Time

Integrated Business

Planning

Operating models for specialization

Data

Curation

Data

Governance

Analysis

Reports

We expect EPM practitioners to be superhuman

10-15%

Analytics Data Collection

25-35% 55-65%

Business

Partnering

Not surprisingly, the process is frustrating and longer

Book Closure DoneI don't get reports on

time. They lead to so

much rework

Yes you are right, I also

have too many data

sources to work on. It

takes time and I cannot

do more analytics .

Day 1 to 3

In-country and regional report preparation

focuses on data gathering, reconciliation,

cross checking and formatting

Not surprisingly, the process is frustrating and longer

Day 4 to 6

Region 1

Region 2

Region 3

Region 5

Region 4

Reconcile

Cross check

Ensure accuracy

Report preparation in a region focuses on

data gathering from countries, reconciling,

and cross checking rather than qualitative

analysis

Let me know

why the cost of

production has

gone up.

Why have

sales dropped

in your

country?

Not surprisingly, the process is frustrating and longer

Day 7

That’s what I do too, reformat

reports in the common chart

of accounts.

I do not get reports on

time from the regions,

they do not include

competitive analysis, and I

have to rewrite the

commentaries.

Mgmt. Team

The reports received from various regions are collated, reconciled

and qualitative inputs are used to create the final report

Operating model redesign to a competency-based organization is

imperative

Tra

nsacti

on

al

Complexity

Dimension

Pro

cessin

g

Action

Dimension

The new operating model

Country Region Headquarters

Trend discussion with sales teamStrategy discussion with

business leadersCorporate strategy discussion

Global centralized hub

Empowered dashboard

Data scientist Reporting COE Analytics COE

EPM transformed

Standardization with

mass customization

Experience drives

effectiveness

Agility >= accuracy

Literacy and numeracy

Operating model for

specialization

Driving action from insights!

DESIGN • TRANSFORM • RUN 24© 2015 Copyright Genpact. All Rights Reserved.

About Genpact

Genpact (NYSE: G) stands for “generating business impact.” We architect the Lean DigitalSM enterprise through a unique approach

based on our patented Smart Enterprise Processes (SEPSM) framework that reimagines our clients’ middle and back offices to generate

growth, cost efficiency, and business agility. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We

have grown to over 70,000 people in 25 countries, with key management and a corporate office in New York City. We believe we are able to

generate impact quickly and power Intelligent OperationsSM for our clients because of our business domain expertise and experience running

complex operations, driving our unbiased focus on what works and making technology-enabled transformation sustainable. Behind our

passion for technology, process, and operational excellence is the heritage of a former General Electric division that has served GE

businesses since 1998. For additional information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.

Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.

© 2015 Copyright Genpact. All Rights Reserved.

Genpact Research Institute

The Genpact Research Institute is a

specialized think tank harnessing the

collective intelligence of Genpact – as

the leading business process service

provider worldwide - its ecosystem of

clients and partners, and thousands of

process operations experts. Its

mission is to advance the “art of the

possible” in our clients’ journey of

business transformation and adoption

of advanced operating models.

www.genpact.com/research-institute