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© 2011 IBM Corporation

Business Analytics software

IBM Spotlight

Chief Financial OfficerFinancial Performance Management



Relevant Information

Actionable Insights

SmarterDecisions

BetterOutcomes



Business Analytics allows CFOs to gain insight for better outcomes



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CFOs: Intent on Shaping Better Business OutcomesMajor Gaps Exist and All Effectively Addressed by IBM

• 60% of CFOs plan major changes

• 70% believe they have an advisory or decision making role on

enterprise agenda

• 60% of CFOs plan major changes

• 70% believe they have an advisory or decision making role on

enterprise agenda

Source: 2010 IBM Global CFO study



• Cognos FSR• Cognos Controller• Cognos TM1• Cognos BI

• Cognos Business Viewpoint

• Cognos Analytic Applications

• Open Pages Risk Mgt

• Cognos BI (Incl. Metrics Studio)

• Cognos TM1• Cognos FSR

• Cognos Business Viewpoint

• IBM SPSS• Cognos Analytic

Applications

• Cognos TM1• Cognos BI• Cognos FSR • Cognos Business

Viewpoint

• IBM SPSS• Cognos Analytic

Applications• Open Pages Risk

Mgt

Business Drivers

Close,

Consolidate,

and Report (CCR)

Performance

Reporting &

Scorecarding (PRS)

Planning, Analysis,

& Optimization

(PAO)

Financial Performance Management

IBM Cognos Financial Performance Management Solutions



The Close, Consolidate, Report Process

CLOSECLOSE CONSOLIDATECONSOLIDATE REPORTREPORT

First MileData quality and control system for collection and reconciliation

ConsolidationFinancial consolidation and systems for processing and preparation

Last MileLeveraging financial data from the closing process for reporting Certifying and publishing financial Governance documents

First Mile Consolidation Last Mile

• Data Input & Changes

• Collect data from ERP and Legacy systems

Closing Process

• Close Sub Ledgers and Systems

• Account Reconciliation

• IntraGovernmentalTransactions (IGT)

• Prepare journal entries: accruals& adjustments

Closing Process(Accounting Processes)

Compliance & Control

• Create single taxonomies

• Sub-Organizations

• IGT eliminations

• closing adjustments

• Management adjustments

• Allocations

• Advancedformula calculations

Internal controls &compliance testing

Consolidation

Internal Reporting

• Financial reporting adjustments

• Balance sheets & other preparation

External Reporting

• Financial governance documentation

• Publish quarterly, annual reports

• Financial reporting

• BI reporting systems

Reporting

Reporting(Reporting Systems)

6



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Business Drivers

Close,Consolidate, and Report

Analyze &Optimize

Plan, Forecast, and Control

Performance Reporting and Scorecarding

• Automated reporting allows for creation of

filings and documents, including

quarterly/annual reports, congressional budget books and board books

• Business rules ensure that summary data in one section always ties out to detail data in the document

• Reconciliation Management automates reconciliation and account balancing processes within documents

• Internal Controls, Work Flow and Audit Trail ensures the correct steps are followed in the creation, submission and approval of each document section

CLARITY FSRTM for Financial Governance



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Background and Challenge

Solution

IBM Cognos FSR

• Integrate Level IV tagging with the actual financial report creation

• Reengineered de-centralized data collection process

• 250 FSR Users

�Redeployed 10 FTEs to other activity

�Automated controls in their reporting,

reducing the overhead of accounting

policy

� Validation Chain automatically

built into application

�Reduced errors in reporting process

Benefits

• Frequent Data Errors in Financial Reporting

• Numerous data sources

• Burdensome Accounting Policy requirements

Cigna Uses FSR as the Cornerstone of their Financial Reengineering Effort

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