Agility to transform your business with IBM Cognos 8

Suneet IBM India

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 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

Corporate Planning Line of Business Managers Cost Center managers

Provides the most current estimates for the balance of the year/horizon

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 Reporting: Collection, analysis, summarization and presentation of the financial performance of the business

What-If Analysis Acquisition modeling Scenario Analysis Define contingency plans

Ad-hoc

Corporate Planning Strategy Sales/HR/IT

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 Failing
there have been well-documented cases of errors and losses resulting from spreadsheet manipulation errors and accidents.
Source: Gartner, August 2010

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

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

FP & A

PLANS & FORECASTS Forecasts

Timely, Reliable

How IBM Cognos adds value

We understand the value of finance managed solutions.

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

PLANS & FORECASTS

Collaborative Plan & Forecast

Emphasis on user experience; workflow; auditability and process control

ENTERPRISE PLANNING IBM Cognos 8 Planning and TM1

Post-Planning Goal seeking, Allocations

High Participation Plan & Forecast

Pre-Planning Analytics Alternative hierarchies, trending

PERFORMANCE MANAGEMENT ROADMAP

AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------

ADDRESS Initial Needs

DRIVE Best Practices

EXTEND EnterpriseWide

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

100% Web : Consumption Integration with Cognos PM portal Integrated EXCEL capabilities

Centralized Control and Management

Central application management process, deployment, security

DRIVE BEST PRACTICES

AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------

ADDRESS Initial Needs

DRIVE Best Practices

EXTEND EnterpriseWide

ADVANCE Performance Management

Support Best Practices DRIVER BASED PLANNING ROLLING FORECASTS TIMEFRAME-APPROPRIATE

Cognos Innovation Center

Performance Blueprints

PLANS
HIGH PARTICIPATION & DATA VOLUMES A WIDER / DEEPER VIEW

BEST-PRACTICE THOUGHT LEADERSHIP

AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------

ADDRESS Initial Needs

DRIVE Best Practices

EXTEND EnterpriseWide

PM for Strategy Execution

RESEARCH, CASE STUDIES, PUBLICATIONS

Axson Sonax

Hope BBRT

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
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

CAPITAL EXPENDITURE PLANNING

Cap Ex

OPERATIONS, MARKETING, ETC.

STRATEGIC FINANCIAL PLANNING & FORECASTING

Revenue Plan

SALES PLANNING & FORECASTING

HUMAN RESOURCES

WORKFORCE PLANNING

Depreciation Expenses

EXPENSE PLANNING & CONTROL

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

Market Demand

EXTEND Enterprise - Wide

AUTOMATION ---------------------------------- TRANSFORMATION ----------------------------

ADDRESS Initial Needs

DRIVE Best Practices

EXTEND EnterpriseWide

ADVANCE Performance Management

Model the Whole Business

Cognos Solution Map

Industry Performance Blueprints

Financial Services Retail Public Sector Manufacturing

Link operational plans to financial plans

Increase forecast
reliability Performance Blueprints accelerate

implementations

Life Sciences

Extend Enterprise Wide

Continued Investment in Industry Blueprints
Manufacturing
Trade Promotion Management S&OP Executive Review Sales & Operations Planning Transportation and Logistics Performance

Pharmaceuticals & Life Sciences

Clinical Trial Planning

Samples Optimization (Joint w/ TM1) Clinical Trial Enrollment Forecasting Sales Quota Allocations

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

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

Retail
Store Operations Store Development Promotion Planning Merchandising Performance Management Retail Financial Workbench

ADVANCE PERFORMANCE MANAGEMENT

AUTOMATION

---------------------------------- TRANSFORMATION ----------------------------

ADDRESS Initial Needs

DRIVE Best Practices

EXTEND EnterpriseWide

ADVANCE Performance Management

Pervasive Performance Management

IBM Cognos Performance Management Platform

Continuous Business Alignment

Applications & Blueprints

Access & Interactivity

Universal Capabilities

Business Modeling Performance Management Platform

Information Information Infrastructure 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

BUSINESS VALUE GUIDES

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 Planning Analyst Model Building Cognos Planning Contributor Application Administration Cognos Planning Fast Track Cognos Innovation Center

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.