Download - Enterprise Planning With IBM Cognos MA v2
© 2008 IBM Corporation
Agility to transform your business with IBM Cognos 8
Mitka Avramova
IM Sales, IBM Bulgaria SWG
After this session you will understand …
Find Out What IT Professionals Need to Know about Planning
How IBM Cognos Enterprise Planning solutions simplifies data and process management.
How IBM Cognos Enterprise Planning solutions brings greater business and IT governance efficiencies to a traditional spreadsheet-based process.
Session Objectives
Agenda
Business Processes Addressed
External Influences / Internal Factors
Typical Pain Points and Who Cares
Cognos Solution
Value Opportunity and Why Cognos
Summary
The IBM Cognos 8 Performance Management System
Applications& Blueprints
Access & Interactivity
Universal Capabilities
Business Modeling
PerformanceManagement
Platform
Information Infrastructure
Cognos Performance Management
Cognos Performance Management Platform
provides:
Independent spans all data sources across your organization
Innovative to meet the diverse needs of all business users
Focused on best practices in Performance Management
Owned by the Office of Finance
FINANCIAL PERFORMANCE MANAGEMENT Enterprise Edition
Strategy Management
and Scorecarding• Strategy Communication• Strategy Execution• Strategy Measurement
Enterprise Planning and Analysis
• Strategic Finance• Revenue Planning
and Forecasting• Expense Planning
and Control• Workforce Planning • Capital Planning
Financial Analytics• Financial Performance
Analysis• Profitability analysis• Product, Operations,
Customer, Channel, Market analysis and optimization
Financial and Management
Control• Financial Consolidation• Financial Reporting• Corporate Reporting
Planning Processes
What it is Primary Use Horizon/Frequency Who is Involved
Strategic Plan: A disciplined effort to define fundamental decisions and actions that shape and guide an organizations future addressing what the organization is, what it does, and why it does it
Define vision, SWOT, high level corporate goals and objectives and strategies for how to attain them
Horizon: 3-5, sometimes 10 years
Frequency: 1/year
• Corporate Execs• Senior Mgmt. • Strategy• Finance
Budget/ Annual Operating Plan:Projection of revenues, expenses and cash for a specified period of time. (1st year of SP). Identifies targets, at the line of business, functional or cost center level
Financial guide for the current year: control expenses, evaluate performance and determine bonus compensation
Horizon: 1 year, across months, Qtrs, weeks
Frequency: 1/year Infrequently updated
• Corporate Planning • Line of Business
Managers • Cost Center managers
Forecast: A period by period projection of either revenue or expense that considers actuals to date and any changes to market conditions
Provides the most current estimates for the balance of the year/horizon
Horizon: Balance of the year or Rolling week, month, quarter, Annual.
Frequency: Refreshed often
• Corporate Planning • Line of Business
Managers
Modeling: Process of developing models that characterize an organization allowing it to evaluate the impact of decisions to understand fully the financial 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 the financial performance of the business
• Comparison with actual• Cause & effect Analysis
Horizon: Various Frequency: Monthly, Qtrly, Annual, Ad-hoc
• Corporate Planning• Reviewed at all levels
Financial Performance Management Challenges
Spreadsheets FailingSpreadsheets Failing “there have been well-documented cases of errors and losses resulting from
spreadsheet manipulation errors and accidents.” Source: Gartner, August 2007
Disparate SystemsDisparate Systems “Average finance organizations operate 11 finance systems per billion dollars
of revenue.” Source: Hackett Group, 2007
Business RisksBusiness Risks “62 percent of enterprises … encountered a major risk event … 42 percent of
these enterprises were not well prepared for the event.”Source: IBM Global CFO Study 2008
CFO
ControllerTax /Treasury
FP & A
Challenges with Plans and Forecasts
PAIN: Inability to deliver timely, reliable forecasts & plans that align operational tactics with financial targets
PLANS & FORECASTS
DisconnectedPlans
Infrequent Unreliable Forecasts
Weak Top-Down
& Bottom-up Coordination
FP & A
Key Pains Long budgeting
processes.
Use of spreadsheets to manage the planning process.
Unreliable budgets and forecasts for decision-making.
!!
!
Closer Look atChallenges with Plans and Forecasts
FP & A
Key Pains Long budgeting
processes.
Use of spreadsheets to manage the planning process.
Unreliable budgets and forecasts for decision-making.
!!
!
Benefits of IBM CognosEnterprise Planning Solutions
IMPACT: Timely, reliable forecasts & plans that align operational tactics with financial targets. Better, confident resource allocation decision-making.
PLANS & FORECASTSFP & A
How IBM Cognos adds value
Top-Down& Bottom-Up
Alignment
Timely, ReliableForecasts
ConnectedPlanning Models We understand the value
of finance managed solutions.
Enable a vision of “Beyond Finance”
Drive Best Practices through the Innovation Center and Blueprints
IBM Cognos Solutions
Replaces spreadsheet-only processes
Engages the whole organization to make better informed decisions
Replaces rigid, annual budgeting with continuous planning for higher responsiveness
Supports best practices such as drive based planning and rolling forecasts
Connects operations and finance
Enterprise PlanningPlan, forecast and control enterprise resources
IBM Cognos 8 PlanningIBM Cognos TM1Performance Blueprints
IBM Cognos Solutions for Enterprise Planning
PLANS & FORECASTSPre and Post-PlanningAlternative hierarchies, Allocations, Reporting and Analysis
CollaborativePlan & ForecastEmphasis on user experience; workflow; auditability and process control
Post-PlanningGoal seeking, Allocations
High Participation Plan & Forecast
Pre-Planning AnalyticsAlternative hierarchies, trending
ENTERPRISE PLANNINGIBM Cognos 8 Planning and TM1
RETAIL PHARMA/HEALTHCARE
FINANCIALSERVICES MANUFACTURING
CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING
ENERGY PROFESSIONALSERVICES
CONSUMERGOODS FOOD & BEVERAGE
TELECOMMUNICATIONS PUBLIC SECTOR
CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING
COGNOS PLANNING CUSTOMERS and THEIR PRIMARY DATA SOURCES
Essbase
PERFORMANCE MANAGEMENT ROADMAP
Embrace and Extend Your Existing InfrastructureEmbrace and Extend Your Existing Infrastructure
ADDRESSInitial Needs1
DRIVE Best
Practices
EXTENDEnterprise-
Wide
ADVANCEPerformanceManagement
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
2 3 4
Automating the Planning Process With Cognos Planning & TM1
100% Web : Consumption
Integration with Cognos PM portal
Integrated EXCEL capabilities
Familiar Environments Web, Excel
Centralized Control and Management
Central application management– process, deployment, security
Centralized Modeling Approach
4
DRIVE BEST PRACTICES
ADDRESSInitial Needs1
EXTENDEnterprise-
Wide
ADVANCEPerformanceManagement
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
BEST-PRACTICE THOUGHT LEADERSHIP
NortonBSCol
AxsonSonax
HopeBBRT
Roth Hackett
RESEARCH, CASE STUDIES, PUBLICATIONS
ASSETS, RESOURCES, EVENTS
…
MEMBERS AND PEER NETWORK / COMMUNITY
Business ContentCustomer Forums
Strategy DevelopmentPerformance Blueprints
ADDRESSInitial Needs1
EXTENDEnterprise-
Wide
PM for Strategy
Execution
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE Best
Practices2 3 4
Enterprise PlanningPerformance Blueprints: Functional Solutions
FUNCTIONAL SOLUTIONS
Strategic Financial Planning & Forecasting
Strategic Long Range Planning
Risk Analysis Sales Planning
& Forecasting Sales Compensation
Planning 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
Cap
Ex
Op
era
tin
gExp
en
ses
Headcount& CompensationExpenses
Reven
ue P
lan
Mark
et
Dem
an
d
EXTEND Enterprise - Wide
Link operational plans
to financial plans
Increase forecast
reliability
Performance Blueprints
accelerate
implementations
ADDRESSInitial Needs1
ADVANCEPerformanceManagement
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE Best
Practices2
EXTENDEnterprise-
Wide3 4
Cognos Solution Map Industry Performance Blueprints
Model the Whole Business
Financial Services
Life Sciences
Retail Public Sector
Manufacturing
Extend Enterprise WideContinued Investment in Industry Blueprints
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 Framework – Business Partner
BearingPoint POM Budget Planning – Business Partner
Higher Ed Performance
Mayor’s Scorecard
Retail Store Operations
Store Development
Promotion Planning
Merchandising Performance Management
Retail Financial Workbench
ADVANCE PERFORMANCE MANAGEMENT
ADDRESSInitial Needs1
AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------
DRIVE Best
Practices2
EXTENDEnterprise-
Wide3
ADVANCEPerformanceManagement
4
IBM Cognos Performance Management Platform
Continuous Business Alignment
Pervasive Performance Management
Applications & Blueprints
Access & Interactivity
Universal Capabilities
Business Modeling
Performance Management Platform
Information InfrastructureInformation Infrastructure
PERFORMANCE BLUEPRINTS
What they are:
– Pre-defined data, process and policy model• Developed by Cognos Innovation Center
• …In conjunction with leading customers
– Enables best practices• Driver-based
• High Participation
• High Frequency
– Enables rapid time-to-value• Reduced project implementation
time and risk
BUSINESS VALUE GUIDES
APPLICATION BRIEFS
BLUEPRINT MODELS
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
Additional Resources 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
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
Summary of Key Points
Improving performance management requires more than automating the existing planning, budgeting, and forecasting process
Leading companies are adopting best-practices and moving performance management beyond finance.
IBM Cognos can help you reduce the time and risk to drive greater business value.