Académique Documents
Professionnel Documents
Culture Documents
Session Objectives
Agenda
Business Processes Addressed External Influences / Internal Factors Typical Pain Points and Who Cares Cognos Solution Value Opportunity and Why Cognos Summary
Universal Capabilities
Information Infrastructure
Financial Analytics
Financial Performance Analysis Profitability analysis Product, Operations, Customer, Channel, Market analysis and optimization
Planning Processes
What it is 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 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 Forecast: A period by period projection of either revenue or expense that considers actuals to date and any changes to market conditions Primary Use Define vision, SWOT, high level corporate goals and objectives and strategies for how to attain them Horizon/Frequency Horizon: 3-5, sometimes 10 years Who is Involved Corporate Execs Senior Mgmt. Strategy Finance
Frequency: 1/year
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 Horizon: Balance of the year or Rolling week, month, quarter, Annual. Frequency: Refreshed often
Provides the most current estimates for the balance of the year/horizon
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
Ad-hoc
CFO
Disparate Systems
Average finance organizations operate 11 finance systems per billion dollars of revenue.
Source: Hackett Group, 2011
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 2012
Tax / Treasury
Controller
FP & A
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
FP & A
! !
Key Pains
Long budgeting processes. Use of spreadsheets to manage the planning process. Unreliable budgets and forecasts for decision-making.
FP & A
Timely, Reliable
IMPACT: Timely, reliable forecasts & plans that align operational tactics with financial targets. Better, confident resource allocation decision-making.
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Performance Blueprints
PLANS
HIGH PARTICIPATION & DATA VOLUMES A WIDER / DEEPER VIEW
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Axson Sonax
Hope BBRT
Roth Hackett
Norton BSCol
Enterprise Planning
Performance Blueprints: Functional Solutions
FUNCTIONAL SOLUTIONS
Pre-configured solution building blocks that: Pool collective best-practice knowledge Accelerate time-to-value Increase project success rate
FINANCE
Reports Income Statements Balance Sheet Cash flow Financial Ratios
SALES
Operating Expenses
Cap Ex
Revenue Plan
HUMAN RESOURCES
WORKFORCE PLANNING
Depreciation 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
Market Demand
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Increase forecast
reliability Performance Blueprints accelerate
implementations
Life Sciences
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 Mayors Scorecard
Retail
Store Operations Store Development Promotion Planning Merchandising Performance Management Retail Financial Workbench
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PERFORMANCE BLUEPRINTS
What they are: Pre-defined data, process and policy model
Developed by Cognos Innovation Center In conjunction with leading customers
BLUEPRINT MODELS
BUSINESS VALUE
Links operational causes to financial effects
Finance can quickly see the impact of changes in
Key Principles
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.