ibm performance management

8/13/2019 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


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


ADDRESS

Initial Needs1EXTEND

Enterprise-

Wide

PM for

Strategy

Execution


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


accelerate

implementations

ADDRESS

Initial Needs1ADVANCE

Performance

Management


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


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.

ibm performance management

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