Transcript Enterprise Planning

Agility to transform your business with
IBM Cognos 8
Mitka Avramova
IM Sales, IBM Bulgaria SWG
© 2008 IBM Corporation
Session Objectives
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.
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
Performance
Management
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
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
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
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.
Modeling: Process of developing models
that characterize an organization
allowing it to evaluate the impact of
decisions to understand fully the
financial impact
•
•
•
•
Reporting: Collection, analysis,
summarization and presentation of the
financial performance of the business
• Comparison with actual
• Cause & effect Analysis
Frequency: 1/year
Frequency: 1/year
Infrequently updated
Who is Involved
•
•
•
•
Corporate Execs
Senior Mgmt.
Strategy
Finance
• Corporate Planning
• Line of Business
Managers
• Cost Center managers
• Corporate Planning
• Line of Business
Managers
Frequency: Refreshed often
What-If Analysis
Acquisition modeling
Scenario Analysis
Define contingency plans
• Ad-hoc
• Corporate Planning
• Strategy
• Sales/HR/IT
Horizon: Various
Frequency: Monthly, Qtrly,
Annual, Ad-hoc
• Corporate Planning
• Reviewed at all levels
Financial Performance Management Challenges
Spreadsheets Failing
 “there have been well-documented cases of
errors and losses resulting from
spreadsheet manipulation errors and
accidents.”
CFO
Source: Gartner, August 2007
Disparate Systems
 “Average finance organizations operate 11
finance systems per billion dollars of
revenue.”
Source: Hackett Group, 2007
Business 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
Tax /
Treasury
Controller
FP & A
Challenges with Plans and Forecasts
FP & A !
!
!
Infrequent Unreliable
Forecasts
PLANS & FORECASTS
Key Pains
 Long budgeting
processes.
 Use of
spreadsheets to
manage the
planning process.
 Unreliable budgets
and forecasts for
decision-making.
Weak TopDown
& Bottom-up
Coordination
Disconnected
Plans
PAIN: Inability to deliver timely, reliable forecasts &
plans that align operational tactics with financial targets
Closer Look at
Challenges 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 Cognos
Enterprise Planning Solutions
Timely, Reliable
FP & A
How IBM Cognos
adds value
 We understand the value
of finance managed
solutions.
PLANS & FORECASTS
Forecasts
Top-Down
& Bottom-Up
Alignment
Connected
Planning Models
 Enable a vision of
“Beyond Finance”
 Drive Best Practices
through the Innovation
Center and Blueprints
IMPACT: Timely, reliable forecasts & plans that align
operational tactics with financial targets. Better, confident
resource allocation decision-making.
IBM Cognos Solutions
Enterprise Planning
Plan, forecast and control enterprise resources
 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
IBM Cognos 8 Planning
IBM Cognos TM1
Performance Blueprints
IBM Cognos Solutions for Enterprise Planning
Pre and Post-Planning
Alternative hierarchies,
Allocations, Reporting and
Analysis
Collaborative
Plan & Forecast
Emphasis on user
experience; workflow;
auditability and process
control
PLANS & FORECASTS
ENTERPRISE PLANNING
IBM Cognos 8 Planning and TM1
Post-Planning
Goal seeking, Allocations
High Participation Plan &
Forecast
Pre-Planning Analytics
Alternative hierarchies, trending
CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING
RETAIL
PHARMA/
HEALTHCARE
FINANCIAL
SERVICES
MANUFACTURING
CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING
ENERGY
PROFESSIONAL
SERVICES
CONSUMER
GOODS
FOOD & BEVERAGE
TELECOMMUNICATIONS
PUBLIC SECTOR
COGNOS PLANNING CUSTOMERS and THEIR PRIMARY DATA SOURCES
Essbase
PERFORMANCE MANAGEMENT ROADMAP
AUTOMATION
1
ADDRESS
Initial Needs
---------------------------------- TRANSFORMATION ----------------------------
2
DRIVE
Best
Practices
3
EXTEND
EnterpriseWide
4
ADVANCE
Performance
Management
Embrace and Extend Your Existing Infrastructure
Automating the Planning Process With Cognos Planning & TM1
4
Centralized Modeling Approach
Familiar Environments
Web, Excel
Centralized Control and
Management
100% Web : Consumption
Central application management
– process, deployment, security
Integration with Cognos PM portal
Integrated EXCEL capabilities
DRIVE BEST PRACTICES
AUTOMATION
1
ADDRESS
Initial Needs
---------------------------------- TRANSFORMATION ----------------------------
2
Support Best Practices
 DRIVER BASED PLANNING
 ROLLING FORECASTS
 TIMEFRAME-APPROPRIATE
PLANS
 HIGH PARTICIPATION &
DATA VOLUMES
 A WIDER / DEEPER VIEW
DRIVE
Best
Practices
3
EXTEND
EnterpriseWide
Cognos Innovation Center
4
ADVANCE
Performance
Management
Performance Blueprints
BEST-PRACTICE
THOUGHT LEADERSHIP
AUTOMATION
1
---------------------------------- TRANSFORMATION ----------------------------
ADDRESS
Initial Needs
2
DRIVE
Best
Practices
3
EXTEND
EnterpriseWide
4
PM for
Strategy
Execution
RESEARCH, CASE STUDIES, PUBLICATIONS
Hope
BBRT
Axson
Sonax
Roth
Hackett
Norton
BSCol
ASSETS, RESOURCES, EVENTS
Business Content
Customer Forums
Strategy Development
Performance Blueprints
MEMBERS AND PEER NETWORK / COMMUNITY
…
Enterprise Planning
Performance Blueprints: Functional Solutions
OPERATIONS,
MARKETING,
ETC.
CAPITAL
EXPENDITURE
PLANNING
Reports
 Income Statements
Balance Sheet
 Cash flow
 Financial Ratios
STRATEGIC
FINANCIAL
PLANNING &
FORECASTING
Operating
Expenses
•
•
Pool collective
best-practice knowledge
Accelerate time-to-value
Increase project success rate
Cap Ex
•
FINANCE
Depreciation
Expenses
EXPENSE
PLANNING
& CONTROL
SALES
Revenue Plan
Pre-configured solution
building blocks that:
Market Demand
FUNCTIONAL SOLUTIONS
SALES
PLANNING &
FORECASTING
HUMAN
RESOURCES
WORKFORCE
PLANNING
Headcount
& Compensation
Expenses
 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
EXTEND Enterprise - Wide
AUTOMATION
1
ADDRESS
Initial Needs
---------------------------------- TRANSFORMATION ----------------------------
2
Model the Whole Business
DRIVE
Best
Practices
3
EXTEND
EnterpriseWide
Cognos Solution Map
4
ADVANCE
Performance
Management
Industry Performance
Blueprints
Financial Services
 Link operational plans
Public
Sector
to financial plans
Manufacturing
 Increase forecast
reliability
 Performance Blueprints
accelerate
implementations
Retail
Life Sciences
Extend Enterprise Wide
Continued Investment in Industry Blueprints
Manufacturing
Pharmaceuticals & Life Sciences

Trade Promotion Management

Clinical Trial Planning

S&OP Executive Review

Samples Optimization (Joint w/ TM1)

Sales & Operations Planning

Clinical Trial Enrollment Forecasting

Transportation and Logistics Performance

Sales Quota Allocations
Public Sector
Banking & Financial Services

Program Objective Memorandum (POM)

Retail Branch Performance

Grant Thornton & Cognos Federal Budget Planning &
Performance Framework – Business Partner

Retail Banking Customer Segment Performance

BearingPoint POM Budget Planning – Business Partner

Corporate Banking Customer Segment Performance

Higher Ed Performance

Insurance Product Profitability

Mayor’s Scorecard

Cognos & IBM Risk Adjusted Profitability for Banking –
Business Partner BP

Loan Pricing
Retail

Store Operations

Store Development

Promotion Planning

Merchandising Performance Management

Retail Financial Workbench
ADVANCE PERFORMANCE MANAGEMENT
AUTOMATION
1
ADDRESS
Initial Needs
Pervasive Performance
Management
---------------------------------- TRANSFORMATION ----------------------------
2
DRIVE
Best
Practices
3
EXTEND
EnterpriseWide
IBM Cognos Performance
Management Platform
Applications & Blueprints
Access & Interactivity
Universal Capabilities
Business Modeling
Performance Management Platform
Information
Information Infrastructure
Infrastructure
4
ADVANCE
Performance
Management
Continuous Business Alignment
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
BUSINESS VALUE GUIDES
• Driver-based
• High Participation
• High Frequency
– Enables rapid time-to-value
• Reduced project implementation
time and risk
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 Innovation Center
–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
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 bestpractices and moving performance
management beyond finance.
 IBM Cognos can help you reduce the
time and risk to drive greater business
value.