© 2008 IBM Corporation Agility to transform your business with IBM Cognos 8 Mitka Avramova IM...

© 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


EXTENDEnterprise-

Wide



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


EXTENDEnterprise-

Wide

PM for Strategy

Execution


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




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



DRIVE Best

Practices2

EXTENDEnterprise-

Wide3


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.

© 2008 IBM Corporation Agility to transform your business with IBM Cognos 8 Mitka Avramova IM...

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Transcript of © 2008 IBM Corporation Agility to transform your business with IBM Cognos 8 Mitka Avramova IM...