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Making the right decision

Enterprise Performance Management (EPM) Proposition Offerings Deck February 2011
Strictly Private & Confidential

Helping you drive success by putting information at the heart of your decision making

Contents
Enterprise Performance Management Proposition
The PwC CEO survey perspective on performance management What drives the need for performance management across the enterprise?

2 3

Components of the PwC EPM solution

Cycle of strategy to execution Leadership and governance Performance management architecture Enterprise wide engagement Components of the PwC EPM solution The EPM Blueprint The PwC difference EPM contacts Appendix EPM tools and methodologies

4 5 11 13 19
26 27 28 29 30

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Stormy waters
The PwC CEO survey perspective on performance management
CEOs are looking to the finance function to provide more insight and advice, yet only 11% of finance personnel are engaged in true business partner roles

Figure 9: Percentage of time spent on activities 6% 30% 20% 25% Strategy and planning 19% Budgeting and forecasting Performance improvement projects Business analysis Management reporting

There is very little insight provided, and little value-add. If I ask for comment or pose questions, they are answered reactively. FTSE CEO, Financial service sector

Management reporting Financial reporting

46%

23%

Despite the significant amount of time devoted to planning and forecasting, satisfaction with the quality of MI coming out of these activities remains low. 80% of participants in the survey stated that they were dissatisfied with the quality of management information.
Figure 8: Quality of management information 14% 4% 14%

54%

77%

Multiple applications and database in use corporate wide

Single suite of applications and database in use corporate wide ie 'single version of truth'

While 46% of participants draw financial data from a central repository, only 23% can access management reporting from a common source

Highly satisfied Satisfied

CEO survey
68%

Dissatisfied
Highly dissatisfied

Consider the economic challenges we are facing, the key improvement that is needed is faster information, with more depth of analysis comparing us to the outside world. FTSE CEO, Oil and gas sector

PwCs research indicates a primary reason is the strong dissatisfaction with the quality of management information, especially forward-looking analysis
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Are you about to capsize?

What drives the need for performance management across the enterprise?
We witness common performance management challenges at all levels of a business

External

Regulators

Shareholders
I need real long-term insight into the business beyond that given in the statutory accounts

Environmental agencies

CEO

(The Past) Do I have a clear picture of performance across the business?

(The Present) Am I deploying resources in the most optimum manner to attain our vision?

(The Future) I dont have genuine foresight through predictive, risk based scenario plans

(Evolution) What will the evolution of vision and strategy mean for my organisation?

What price do I pay and what burden do I place upon my team to answer my questions?

Finance

My ability to plan and monitor performance against the plan, is undermined by inconsistent data in multiple systems

How do I reduce the cost of maintaining all these systems?

HR

IT

I need clarity and transparency into the business financial and non-financial metrics

Am I compliant with all regulatory requirements?

Am I making available what the business demands at the right time, in the right place on the right device?

How do I protect the information and ensure the right governance procedures are in place?

Do our staff understand and believe in our corporate culture?

Are we setting our people individual objectives that are inline with delivering our organisations aspirations?

I need to be able to monitor staff development and ensure it aligns to career aspirations

Leadership teams

Suppliers

Develop Products & Services

Procure Materials & Services

Production

Planning & Logistics

Marketing & Sales

I want to identify the most profitable products and services

Customer Service

Market

Can I improve the links between commercial and development to better understand customer requirements and needs?

I need analysis of supply market risk management, including reputational risk

I want to Improve demand forecasting processes, skills and tools

I need to understand and track drivers of customer satisfaction and experience I want to define customer r etention performance and track drivers of retention

I want to be able to align shop floor activity to corporate strategy

I want to increase my focus on high value / high potential customers

However most organisations see EPM projects as a solution for finance or IT

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Increasing velocity & maximising performance

Components of the PwC EPM solution
PwC promotes an enterprise wide solution based on four integrated components

A continuous cycle of strategy to execution

Value

Performance management activities are considered as a series of end to end processes such as Strategy to Plan, rather than discrete activities like strategic planning, business planning and budgeting Strategy can be converted into tangible metrics, measured and forecasted into the future and incorporated into the learning, development and reward culture of the business These processes need to remain fluid, allowing changes in strategy to flow through into the actions of the people in the organisation

Leadership sponsoring change of behaviour and governance to make it stick

Leadership & Governance

Enterprise performance management requires a cultural shift from managing by reports and numbers to managing by influencing changes in actions and behaviours This requires top down leadership and a strong governance framework

Across an integrated performance management system architecture

The components of an EPM architecture stack

Information strategy EPM & BI applications

Information strategy EPM & BI applications

The business reference model describing the information needed to drive the business Integrated performance management and business intelligence applications

Enterprise information platform

Source systems and infrastructure

Enterprise information platform Source systems & infrastructure

A consistent repository of data reflecting the requirements identified in the Information Strategy Diverse transactional systems (ERP, CRM, etc) and potential 3P systems (supplier, customer, market data, social network)

Supporting the performance management needs across the entire enterprise

Procure Materials & Services Develop Products & Services

Marketing & Sales

An enterprise wide performance management strategy identifies the important metrics across the entire organisation Operational performance can be linked to corporate strategy Operational teams can understand how they contribute to strategic performance

Production

Planning & Logistics

Customer Service

Suppliers

As a result the entire business can leverage benefits from PwCs EPM solution
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Market

Cycle of strategy to execution

Components of the PwC EPM solution

Maintaining control at speed

Cycle of strategy to execution: improving and integrating the process Historically performance management activity was conducted as a series of discrete processes undertaken throughout the year
In the ERP world, the drive towards transactional excellence led organisations to move away from individually considering discrete areas of transaction processing, such as procurement, accounts payable or fixed assets and move towards considering end to end transactional process such as Purchase to Pay. Addressing management processes piecemeal has similar limitations
Instead of looking at strategic planning, business planning, budgeting and individual target setting separately, PwC advocates an integrated approach that breaks the cycle of performance management into three end-to-end processes.

3. Recognise to reward
Recognise to Reward hard wires the behaviours of functions, teams and individuals to activity contributing to delivery of strategic objectives. This requires linking remuneration strategy to delivery of the measures identified in 'Strategy to Plan'. Also covers aligning individual performance management to business performance management and linking performance outcome to the learning and development programme.

1. Strategy to plan
'Strategy to Plan' is the end to end process by which organisations ready themselves to execute against their strategic objectives. This process includes key performance and risk indicator definition, cascading of metrics to engage the business, long range business planning and short term resource allocation through, where appropriate, comprehensive functionally integrated budgeting.

Value

2. Measure to forecast
'Measure to Forecast is the process by which organisations monitor and manage the execution of the long term strategy on an ongoing basis. Performance is measured by capturing, consolidating, reporting and analysing actual results aligned to the financial and non-financial measures prescribed during Strategy to Plan'. The goal is to provide insight to identify and understand plan deviations early and define and execute the right actions to improve performance. The process culminates with a realistic forecast of the expected business outcomes.

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Optimising performance
Cycle of strategy to execution: from insight to foresight through metrics The cycle of strategy execution is underpinned by understanding the right metrics, planning and measuring against these metrics and linking the behaviours and activities of the workforce to delivery of these metrics
High performance Insight and foresight The right metrics

External
I am confident that the information obtained from the business reflects reality

CEO
I can monitor our performance against strategy and can effectively plan for the future

Understand the breadth of metrics across the enterprise that underpin an organisations strategic goals CFO

Value

Planned and measured

I have consistent data that I can trust enabling transparency into the financial and non-financial metrics

Integrating transparent planning and reporting processes on a platform of quality information

CIO
I know what information is needed and can produce it in the most effective way

HR Director Driving the desired behaviours

Driving performance through alignment of the behaviour of the workforce

I have clear line of sight into staff skills, training, motivation and how this aligns to our culture

Leadership Teams
I can monitor my individual performance and understand its effect on the overall strategy

The signs of a high performing organisation

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Plan the race ahead

Cycle of strategy to execution: Strategy to plan In PwCs experience, a large proportion of large companies report either no link or a weak link between the strategy and budget processes
Overview Strategy to Plan' is the end to end process by which organisations ready themselves to execute against their strategic objectives. This process includes defining the key indicators of performance and risk that underpin and validate the strategy. Business engagement is achieved through cascading aligned financial and non-financial measures to key functions, teams and individuals within the organisation. The longer term objectives are quantified through long term business planning and the short term resource allocation is defined through, where appropriate, producing a comprehensive, functionally integrated budget.

Value

PwC considers the aspects of Strategy to Plan as differentiated by the level of granularity, audience and content strategic planning, long range planning, budgeting and operational planning and scheduling - increasing consistency and alignment across the organisation.

Offerings Strategic modelling and value driver analysis KPI and KRI definition Cascading metrics to functions, teams and individuals Integrating business planning to individual objective setting Scorecarding and board reporting

Benefit Common understanding of the key indicators of performance and risk that have the most significant impact on the business Business engagement at all levels with a focus on activities and actions linked to achieving strategic objectives Standardisation and simplification by reducing detail and complexity, centralising process control and ownership and definition of a common data model Integrated set of planning processes with clear handover points to improve alignment between strategic plans, business plans and budgets Integrated technology to automate and remove redundant activities including data collection, aggregation and reconciliation Driver based approaches enabling key drivers to model financial outcomes More frequent planning to smooth the planning effort across the year and minimise resource peaks Reduction in granularity and shift of focus to material and controllable cost drivers Outputs become action orientated with clear accountability

Long range planning

Budgeting data model definition Budget process blueprint EPM technology review and selection EPM technology configuration, deployment and on-going exploitation Change management supporting sustainable transition

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Monitor your performance

Cycle of strategy to execution: Measure to forecast High performing companies are significantly more effective in their use of cross functional information, driver-based forecasting and predictive analytics
Overview 'Measure to Forecast is the process by which organisations monitor and manage the execution of the long term strategy on an ongoing basis. Performance is measured by capturing, consolidating, reporting and analysing actual results. Reporting and analysis must be aligned to the financial and non-financial measures prescribed during the Strategy to Plan process. The goal is to create transparency around the actual performance against targets, provide insight to identify and understand plan deviations early and define and execute the right actions to improve performance. The process culminates with a realistic forecast of the expected business outcomes given the performance to date, the target set in 'Strategy to Plan' and the programme of performance improvement actions. This is often not as easy as it sounds. Key challenges include: Lack of consistent, streamlined information to support management decisions Lack of integration between management, legal and regulatory reporting Reliance on largely manual reporting processes Non-transparent and inconsistent data "silos" in different functions that have grown by evolution No cross-functional ownership and governance for data definitions, reports and systems Lack of flexible and scalable tools used in the reporting and analysis cycle Offerings Financial (statutory), management and regulatory reporting Industry/function specific analysis (e.g. profitability and cost analysis, cash flow forecasting, scenario analysis, pricing and trade spend analysis, R&D project analysis, capacity planning) Process standardisation, automation and acceleration Benefit Timely reports and analyses based on metrics that matter Consistent view of the business across all reporting dimensions, e.g. statutory, management and line of business views produced in an integrated process Reporting information that can be trusted and provides insight Predictive analytics and forecasts that provide real foresight The ability to make decisions faster so as to seize opportunities or to intervene quickly when performance moves off target

Value

EPM technology configuration, deployment and on-going exploitation

Organisational transformation to enable shared reporting platforms and processes and business partnering Data model design and data management Governance and controls framework design

An organisation freed from data gathering and devoted to analysis and decision support
Lower costs and less complexity in the preparation of standard reports and analyses with the business enabled to self-serve on reporting requirements Finance recognised by the business for driving rigorous and analytical cross-functional dialogue and action plans based on commonly agreed performance measures

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Celebrate your success

Cycle of strategy to execution: Recognise to reward Reward systems are increasingly mistrusted by staff, reducing the effectiveness and alignment of staff behaviour to organisation strategy
Overview Recognise to Reward is the process used to close the loop on performance management and hard wire the behaviours of functions, teams and individuals to activity contributing to delivery of the organisation's strategic objectives. This requires linking the remuneration strategy to delivery of the financial and non-financial measures identified in 'Strategy to Plan'. The process goes beyond financial reward and should cover all forms of staff recognition. This includes aligning the individual performance management process to the business performance management process and linking performance outcome to the organisation's learning and development programme.

Value

It is important that there is a clear and transparent link between performance measures and reward otherwise the organisation risks credibility with the entire performance management process. The meaning of the measures and how the individual roles and behaviours can affect them must be spelt out to limit cynical views of reward bearing no relation to organisation strategy. Increasingly, studies are reflecting the limits of financial rewards in changing or motivating behaviours, reinforcing the importance of total reward strategy.

Offerings Definition of business performance aligned individual performance management frameworks Saratoga benchmarking of reward for market competiveness Non financial reward option analysis Tax effective reward and pensions advice Performance aligned learning and development programmes

Benefit Individual performance management activity aligned to business performance management activity Organisation wide understanding of the reward system and importance of measures to applying the strategy Workforce incentivised to executive against activities aligned to delivering desired strategic outcomes Awareness of market/competitive reward offerings and where your organisation fits Tax efficient reward for staff resulting in lower reward costs Triggers to employee training linked to business performance and embedded in the individual performance management process

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Leadership and governance

Components of the PwC EPM solution

Change your ways for good

Leadership and Governance True performance management means different ways of working for everyone with an emphasis on actions to influence metrics rather than the numbers
Overview Leadership - transitioning an organisation from running its business based on performance reporting to driving its business based on performance management requires a paradigm shift in behaviours. This change of culture from focusing on the values of the numbers in the reports to focusing on the actions and activities undertaken to influence the numbers requires strong and unified leadership from the top.

Leadership & Governance

New systems, process and measurement won't by themselves create an alignment to organisation strategy. Leadership behaviours will set the tone for the new model of what is acceptable behaviours and what is not, but they must themselves be aligned with the new model. The ability of the leadership team to give an unified and constant front becomes one of the key factors of success.
Governance - leadership can bring a performance management culture into existence but its long term survivability is dependent on establishing an effective governance structure. This goes far beyond merely the operating rules but includes the changes in the ways of working, and the creation or restructuring of organisational bodies to maintain and reinforce the performance structure. Changing workforce behaviours will need a number of approaches including the provision of appropriate training and capability solutions, reward reinforcement and communication.

Offerings EPM readiness and capability assessment EPM culture roadmap development Performance aligned organisation design strategy and implementation EPM behavioural change strategy and implementation EPM leadership assessment, development and coaching EPM governance and organisation design

Benefit Understanding of behavioural, organisational, people, process and technological barriers to adopting a performance management led culture Clearly defined communication audiences, messages and medium and a means to measure the effectiveness of the performance management communications activity Awareness of leadership values and behaviours prior to implementation of performance systems Clearly defined performance management governance and organisational structures to embed a performance management focused mindset into the long term culture of the business Alignment of leadership and organisation wide behaviour to strategy Clearly defined set of required performance aligned organisation behaviours combined with tools and processes to achieve them

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Performance management architecture

Components of the PwC EPM solution

The foundations of high performance

Performance management architecture: building a stable platform Effective performance management requires a clearly defines business reference model underpinned by a robust, integrated technology platform
It is only recently that organisations are starting to approach EPM and BI initiatives with the same rigour as they have undertaken transformation of their transactional capability. This requires an end-to-end approach to the performance management architecture set within the context of the business reference model required to shape and monitor strategy execution. A performance management architecture vision incorporates a series of EPM and BI applications working off a consistent information set sourcing information across the full range of internal, customer, supplier, market and internet source systems.
Information strategy The business reference model describing the information needed to drive the business. The organisational model and technology standards for effective provision of EPM and BI services, approach to master data and hierarchy management. EPM & BI applications Integrated performance management and business intelligence applications. Common components include group consolidation tool, planning, budgeting and forecasting tools, profitability and cost management tools, management and board reporting tools. Enterprise information platform A consistent repository of data reflecting the requirements identified in the information strategy.

Information strategy

EPM & BI applications

Enterprise information platform

Source systems and infrastructure

Source systems and infrastructure An integrated architecture for diverse transactional systems (ERP, CRM, etc) and potential 3P systems (supplier, customer, market data, social network).

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Maximise the value of information

Performance management architecture: Information strategy A properly formulated and clearly articulated information strategy sets the direction for your performance management approach to achieving your business objectives
Overview An Information Strategy is the fundamental building block that underpins effective performance management across the organisation. It comprises two key components; what you need to report, and how you are going to report it. What you need to report is described in a Business Reference Model. This describes the information set that is first considered in Strategy to Plan, that is the key indicators of performance and risk required to support your strategic and business planning, and the cascaded functional, team and individual metrics that give management line of sight through the organisation and align the actions of the workforce to activities contributing to delivery of the strategic objectives. How you are going to report is described in a Management Information Delivery Model. This covers the MI systems architecture, the organisation design to deliver MI, the interaction of MI with processes (e.g. budgeting or month end reporting) and the accountability of teams and individuals throughout the lifecycle of information. The MI Delivery Model is a pre-requisite for effective design of the three following layers of the EPM architecture; EPM and BI Applications, the Enterprise Information Platform and the Source Systems and Infrastructure.

Information strategy

EPM & BI applications

Enterprise information platform

Source systems and infrastructure

Offerings Business Reference Model definition, including:

Data definition Standard report definition

Benefit

Cost Savings Reduce cost of error, delays or misinterpretation Operational Excellence Standards; Common data dictionary

Increase Asset Value Simplifying access to authoritative information Stakeholder Satisfaction Data reliability and integrity

MI Delivery Model definition, including:

EPM systems architecture Master data management

MI delivery organisation model including:

BI Competency Centres, self-service versus bespoke

Align IT Investments Reduce technology duplication Optimize technology investments Streamline operational services

report delivery
MI process definition MI accountability definition

EPM architecture implementation roadmap

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Provide the tools to perform

Performance management architecture: EPM and BI applications Appropriate tools and technologies powered by consistent, standardised data
Overview

Information strategy

EPM & BI applications

Gartner describes EPM and BI applications projects as the number one IT investment for delivering value to the business; however a majority of these initiatives are seen to fail. In our experience this is usually a result of inadequate project planning and insufficient time spent on preparing a holistic Information Strategy before diving into implementation. Distinct EPM and BI applications are available to drive a range of performance management activities including: Strategic modelling Analytics Planning, budgeting and forecasting Management reporting, dashboarding and scorecarding Statutory and regulatory reporting The EPM and BI applications are the tools that the business users engage with on a day to day basis. Deployed effectively following a business reference model on an integrated set of consistent data, these applications become the front-line for deploying a performance management culture across an organisation. Profitability and cost management Data mining and predictive analytics

Enterprise information platform

Source systems and infrastructure

Offerings Expertise in: Strategic modelling tools Planning, budgeting and forecasting tools Management reporting tools Dashboard and scorecard tools Consolidation and reporting tools Analytics tools Profitability and cost management tools Data mining and predictive analytics tools Applications: SAP Business Objects ( BPC, PCM and BFC) Oracle Hyperion (HFM, Hyperion Planning, Essbase, PCM and HSF) IBM/Cognos (including Planning, BI) IBM/SPSS Microsoft SAS MicroStrategy
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Benefit Flexible, driver based strategic scenario modelling allowing the business to evaluate a range of likely business outcomes and assess the impact of potential risks Streamlines the planning, budgeting and forecasting processes so they are automated and integrated improves budget cycle time with a focus on providing insight and foresight not hindsight Streamlines the actual reporting process to enable a smarter close faster turn around of results and improved compliance with regulatory and financial standards, reducing potential audits costs and business risk Drive better performance through data-driven business analytics, e.g.

Optimise revenue cycle manage and measure receivables, collection rates and monitor trends Make right time operational adjustments optimise staff, facilities and resources Expedite data-driven quality and cost improvement

Optimise and automate decisions to improve business processes with predictive analytics

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Everyone on the same page

Performance management architecture: Enterprise information platform Ensuring data is improved, streamlined, connected and consistent
Overview

Information strategy

Data is a corporate asset and as such is a potential source of competitive advantage. In order to derive this, an organisation must first be able to harness consistent and accurate data from across the enterprise and then consolidate it for the purpose of timely decision making. Increasingly this requires the creation of a central repository of data, and a series of additional applications managing the flows and messaging of data between systems. We can support you in navigating the range of architectural considerations and options available to you, and advise you on all the steps in your journey from software selection through to technical designs and programme management of any subsequent implementations.

EPM & BI applications

Enterprise information platform

Source systems and infrastructure

Offerings Improving data connectivity ETL routines and movement of structured data from source to target systems Enterprise Application Integration implementation of middleware to share business data and processes across the organisation Delivering operational and analytical data stores Facilitating single versions of the truth for customer and transactional data Build ability to track deltas and events over time Master Data Management Create strategies and frameworks for managing master and meta-data Enterprise Records Management Manage sources of unstructured data Support document search and retrieval capabilities

Benefit One version of the truth - avoid the situation where the same information exists in different forms across an organisation Wider access to information effective information use supports cross-functional collaboration across operational and geographical boundaries Compliance with legislation and regulation in the US and in Europe over 10,000 regulations govern the storage, availability and disposal of information Reduced cost of data storing and managing data is an ongoing cost to the organisation. The ability to retrieve pertinent data in a timely fashion is critical. Increasingly it is important to be able to access both structured and unstructured data (an estimated 90% of data is held in unstructured form). The ability to retrieve, search and then exploit data is key component of getting data working for the organisation Increased productivity provides the framework for accurate and timely management information, in turn reducing time spent searching for and creating information, freeing staff to work on revenue generating activities

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Embracing all sources of data

Performance management architecture: Source systems & infrastructure Aligning your operational IT architecture to support performance management
Overview

Information strategy

EPM & BI applications

To truly embrace the opportunity of enterprise performance management you will need broad horizons when it comes to sourcing data. The ERP and CRM systems are good places to start but can be supplemented with data from supplier and customer systems. Social networking sites are a good source of data for understanding the voice of the customer. There are few truly greenfield application architectures; most large organisations have seen a combination of organic and acquisitive growth resulting in a disparate IT architecture and infrastructure. In most large organisations Enterprise Architects wrestle with a myriad of different systems, and the challenges of how to efficiently operate the heritage systems and extract value from the data within them. The strategic choices for leveraging heritage systems range between: Initiatives to reduce individual islands of information and better leverage data in existing structures

Enterprise information platform

Enterprise wide ERP and CRM standardisation and consolidation programmes

It is increasingly important to be able to extract value from existing IT investments, and to harness all the data held by the organisation. This should include externally sourced third party data and other sources of commercially available data.

Source systems and infrastructure

Offerings Expertise in: Optimising operational efficiency and effectiveness of ERP, CRM and Supply Chain Management systems Data standardisation and ERP consolidation programmes Data audits and assessing the value of data in the organisation 3rd party data Semi-structured contact data Customer and supplier attitudinal data

Benefit Improve operational IT system efficiency and effectiveness Deliver value from existing IT infrastructure investment Identification of systems obsolescence and opportunities for systems decommissioning Deliver cost savings through heritage system consolidation Assess the strategic benefits of data standardisation and consolidation programmes Support strategic Enterprise Information Platform programmes (data warehousing)

Support for data aggregation and exploitation initiatives by addressing the key issues around what data needs to be fed or migrated to a data warehouse or accompanying data marts
Identify and exploit disparate data sources Silos of commercially valuable data sit throughout the organisation these need to be identified and audited Deliver tactical quick win initiatives based around exploitation of untapped data

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Enterprise wide engagement

Components of the PwC EPM solution

Engage the business engine

Enterprise wide engagement: performance is everybodys business Effective enterprise performance management requires a clear alignment of corporate strategy with metrics across the end-to-end of the value chain
The transition from insight to foresight will be realised through determining the optimum set of metrics to support the performance management needs across the entire organisation with clear alignment to the corporate strategy. It is essential that operational teams understand how they can contribute to strategic performance. This is alignment is driven by focusing on metrics that matters in terms of time horizon and business operating model.

Develop Products & Services

Procure Materials & Services

Production

Planning & Logistics

Marketing & Sales

Customer Service

Time Horizon What do you need to know now the daily update tweet to your mobile device? What matters on a monthly / quarterly time horizon? What matters strategically and what will be analysed on an ad hoc or annual cycle?

Business Operating Model What are the relationships between the entities in the end to end value chain? The operating model will shape metrics that you directly manage and those which are the responsibility of a business partner. For example, possible relationships with Production include: Wholly owned factories Toller or Contract Manufacturer under a Principal company structure Co-packer or co-manufacturer Other examples of relationships that will drive the optimum set of metrics include: The channel strategy Logistics outsourcing relationships The degree of P2P or O2C transaction processing outsourcing

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Engage the business engine

Enterprise wide engagement: performance is everybodys business Performance management challenges are pervasive across the entire business

Develop Products & Services

Procure Materials & Services

Production

Planning & Logistics

Marketing & Sales

Customer Service

Improve the links between commercial and development to better understand customer requirements and needs Understand product level P&L management to drive design decisions Customer and product segmentation Understand the value of innovation Business Case driven innovation reward those that kill innovation early Deliver streamlined, efficient NPI methods for quicker, safer, more cost effective launch

Linkage of procurement strategy with business strategy Understanding of savings / cost reduction performance in year Determining the P&L impact and shareholder value added from procurement Analysis of supply market risk management, including reputational risk Assessing the level of control and compliance with the procurement and supplier management process

Align shop floor activity to corporate strategy Understand efficiency and sources of waste with in the production processes To provide alignment with value from the customers viewpoint To identify hidden complexity in the business and move to standardised and simplified processes To drive the development of Lean capability and promote a culture of continuous improvement

Deliver integrated S&OP, leveraging total delivered cost, service and cash insights and analytics to drive informed decision making Drive efficiency in to the management of inventory across the supply chain Drive cost to serve trade offs integrated with commercial trade terms decisions Asset and Network analysis to drive the lowest cost, best service model Core vs. Noncore Improve demand forecasting processes, skills and tools Understand working capital (WC) drivers and opportunities to reduce WC cycles

Increase focus on high value / high potential customers Identify the most profitable products and services Understand the effectiveness of sales and advertising channels Understand the effectiveness of marketing, advertising and sales processes Determine the quality and assignment of sales pipeline Monitor and control sales and marketing activities including pricing Review and enhance trade terms to balance what the customer will pay for vs. what is the cost of doing business

Improve total customer experience (purchasing, fulfilment, usage, support, after sales service, directed marketing, etc) Define customer retention performance and track drivers of retention Support account / relationship development and management activity Understand and track drivers of customer satisfaction and experience Analyse ability to upsell / cross-sell to current customer base

The entire enterprise can benefit from PwCs EPM solution

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Enterprise wide engagement: Develop products and services

Innovate with direction The innovation mix is a blend of activities and processes that link and encourage innovation to happen and flourish. There is no one mix and not one type of culture
Value creation & business impact

Innovation direction

Innovation climate

Innovation delivery

Drives the activities relating to the role of innovation within the organisation
Number of new products/ services developed within a 12 month period Number of transformed products/ services, e.g. re-investing in underperforming products or ideas that have yet to be invested in Investment in innovation activities (both financial and in resources / also in training staff on innovation) Existing size of innovation portfolio number of new ideas being sought and considered Processes in place for proactively seeking new ideas, evaluating them and managing them through from concept Risk register and demonstration of risk tolerance... innovation has to come from pain

Focuses on developing a culture of innovation which is the centre piece of the framework
Culture conducive to innovation for example staff encouraged to idea generate, take calculated risk, investment in innovation activities e.g. time out for idea generation, supported learning, openness to new ideas Staff reward to be based partly on contribution to innovation for example, bonuses for ideas generated that are taken from concept and developed Physical office layout allows flow of ideas and doesn't hamper creativity Links with universities evidence of investment in R&D (either internally or through universities of research bodies) Collaboration with similar organisations in the area of R&D Evidence of benchmarking globally

Focuses on developing a system of processes that deliver innovation at an operational level

Return on Investment % new products generating revenue within the first 12 months Intellectual property number of patents sought for new products (success rates), number of products being trade marked per year Product life cycle number of products discontinued to allow investment in new products Margin increase from new products Revenue generated from new products within the last 12 months - 3 years as a % of total revenue

The outcome of the organisations innovation activities. It is about more than R&D, technology and inventions which lead to new products and services. The outcomes can also manifest themselves in a number of other ways, such as cost reductions, increased productivity, increases in customer and people satisfaction, reduced cycle times, increased reputation and reduced cost of poor quality. For this reason, the Investor in Innovation Framework takes a wide view of innovation results.

it is about blending a strategic mix of key drivers around and through the organisations culture that leads to the creation of value and business impact
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Fulfil your customers wishes

Enterprise wide engagement: Procurement, production, planning & logistics The supply chain metrics are applicable at location, category and enterprise level

Sales Director

Procure Materials & Services

Production

Planning & Logistics

Supply chain understand which of our customers really matter and how we should serve them My sales teams understand how their actions forecasts and trade terms drive our cost base

Focus Manufacturing, capital expenditure, health, safety, quality and environment End-to-end supply chain performance, trading off customer service, total delivered cost and cash
Number/value of stock outs Major customer issues Key product/promotion item case

Critical materials and key suppliers Time horizon Short Term Daily Weekly Critical Tweets
Critical material and key supplier

Procurement Director
The early visibility of changes in demand allows me to be more collaborative with suppliers

market news and deals Major supplier failures

Daily and weekly outturn Major capital programme news Alerts on major accidents and

failures
Medium Term Monthly to Quarterly Performance Trends
Material price vs. standard Hedging positions vs. spot prices On time in full performance Asset utilisation vs. budget Outturn volume and mix vs. budget Bill of material variance/waste vs.

fill Expediting costs vs. budget

Sales forecast accuracy Case fill vs. target Percentage/value returns Total delivered cost and cash vs. budget Inventory cover, obsoletes and write-offs Conformance to plans and schedules
Customer relationship scorecard 3rd (4th) party logistics provider

Supply Chain Director

I understand what it really costs to serve our customers Our decisions are relevant and timely trading off cost, cash and service needs

budget Progress against Capex plan Lost time accidents and frequency Audit reports scores

Finance Director
Visibility of financial information allows me to be a better business partner

Long Term Annually Strategic Development

Material competiveness Supplier relationship scorecard Internal and external benchmarks

Internal service level agreements Capital productivity and intensity Internal and external benchmarks

relationship scorecard
Internal and external benchmarks

enabling a roll-up or drill-down highlighting where performance is out of tolerance

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Optimise the commercial function

Across the enterprise: Marketing, sales and service PwC specialises in performance management solutions across the commercial funnel
Sales Director

Awareness

Perception

Purchase

Satisfaction

Loyalty

I understand which customers we should be targeting and who targets them I have greater visibility over the forward order book and how I should prioritise

Marketing

Sales
Customer Driven Performance Management

Service

Brand Equity Product & Service

Competitive

Total Sales by volume and

Total Cost to Serve Quality of Service Customer Satisfaction Complaints Call response time On time delivery Claims and Disputes

Net Promoter Score Repeat Sales Customer Up Sell Customer Cross Sell Customer Lifetime Value Customer Payment

Positioning
Positive Share of Voice Conversion Rate

value
Total Margin Sales Growth Sales Cadence Market Share Pipeline Value

Marketing Director
I understand which mechanics work for us for each of our key channels to market Pricing is always a key lever of demand now we can use it more strategically

Recognition
Advertising Reach Media Share of Voice Conversion Rate

Terms and Compliance

Customer Profitability
Recency and Frequency Cost of Sale Lifecycle Pricing Total Trade Investment

Service Director
I am much clearer about what our customers are looking for

discounts and rebates Internally Driven Performance Management

Sales v Target Coverage v Headcount Sales Cycle Times Total Cost to Serve Channel costs Employee Satisfaction

Leadership Teams
I understand how the function is performing what is working and what isnt.

as a result the Commercial function can benefit from PwCs EPM solution
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Sustainable corporate trust

Across the enterprise: Sustainability and climate change PwC integrates sustainability and climate change in its performance management solutions
Operations Director
I want to develop products to capitalise on green consumer trends I know there must be opportunity to further reduce my carbon footprint and realise efficiencies, but I dont have the MI I want a streamlined distribution network that is low cost and low carbon I want to use our environmental credentials as a differentiator What are the sustainability benefits of our products compared to the competition? Awareness of sustainability helps reduce costs and enables us to behave more joined up than ever before

I want to de-risk my supply chain and reduce costs by considering carbon in the products/services we buy

Sustainability has helped us reduce risk and meet changing customer expectations

Sales Director

e.gs of sustainability considerations across the value chain

Develop Products & Services Procure Materials & Services Production Planning & Logistics Marketing & Sales Customer Service

Our sustainability credentials differentiate our products

Marketing Director
I am clear about how our products deliver on emerging green consumer trends

Green consumer

Physical climate Energy / carbon per trends change risks to key unit of production Product/service suppliers Energy intensity of lifecycle impacts Supplier policy & alternative Current & pending performance production energy efficiency / regarding child processes carbon regulations labour, forced Sensitivity of Impacts of design labour, H&S and production process on the production environmental to changes in carbon process impact price Sustainability Supplier Weight of packaging impacts of the use sustainability per unit of phase assessments production New technologies Carbon intensity per Efficient packaging that deliver reduced unit procured design costs and reduced Water use per unit impacts of production

Carbon emissions

Green consumer

per km Number of journeys & backhauling Distribution hub planning and key future supplier locations Low carbon alternatives Using carbon to instigate partnering / shared services

Meet new customer trends demands Product carbon Performance on key labelling customer Product / service sustainability environmental and assessments social benefits Substantiated marketing messages

Finance Director
I am much clearer about the financial benefits of embedding sustainability

Leadership Teams
The business is considering sustainability and climate change at every step of the business cycle

...as a result the business can embed sustainability & climate change into its decisions
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The PwC difference

The EPM Blueprint

Your path to the podium We have developed the PwC EPM Blueprint to baseline your EPM capability, define the vision, develop a high level solution design and deliver the business case and programme roadmap
The EPM Blueprint fits within the Assess stage of our overall approach to transformation Transform*
Approximate 2 3 month exercise

Diagnostics and vision

Based on a baseline of performance management activity within the business, the EPM vision describes the ambition for the EPM programme, typically over a 25 year time horizon Reporting requirements Vision and guiding principles

High level solution design

Starting with a conceptual data model to support all EPM activity, the solution design builds out the impact on performance management processes, systems, people and organisation Data Conceptual data model Data integration model Data governance framework

Business case and roadmap

Outlines a business case for change including a comprehensive understanding of the total cost of ownership, any efficiency savings and other quantitative and qualitative benefits. Delivery of the benefits is explained in the overall roadmap for EPM deployment backed up by a detailed implementation plan for the first phase of the programme

Benchmark and maturity profile

Process High level EPM process flows

Business case for change

As-Is and To-Be definition

Data Process Systems People & org

Systems Systems architecture Software licensing, infrastructure and hosting strategy People and organisation People and organisation impact assessment Project organisation design Roadmap

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The PwC difference

Be the best Our unique proposition and our extensive experience combine to make PwC the right partner to work with you to build and deliver on your vision for the future
EPM is enterprise wide not just finance or IT centric
Marketing & Sales Procure Materials & Services Develop Products & Services

Our team PwC provides an integrated end to end EPM offering, from KPI definition to application implementation, supported by a strong IT capability:

EPM is about foresight, not just insight

We have 3,500 SAP specialists globally We have 1,700 Oracle specialists globally We design and implement EPM software solutions We have 4 delivery centres across the globe

I call the BU President, and am told how great it is that we now have one version of the truth which forms the basis for focused discussions around key business decisions. Global consumer goods company

Production

Planning & Logistics

Customer Service

The PwC difference our business case backed approach delivers sustainable change you can ask our clients Proven benefits management our EPM business cases and deep implementation experience deliver demonstrable value and enable us to take an innovative approach to pricing our services Making change stick all our consultants are trained in our Making change stick approach and are skilled in delivering sustainable change Track record listen to our clients all of our EPM client projects are referenceable

We bring together the range of expertise you need to cover all aspects of performance management
Corporate Social Responsibility including Sustainability and Climate Change

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Suppliers

Market

Enterprise Wide EPM Strategy

Industry Sector Expertise

Governance, Risk & Compliance

Building Public Trust Awards: Recognising Trust and Transparency in Corporate Reporting

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The PwC EPM leadership team

Consulting Nick Groves Partner

t: 020 7804 2125 m: 07970 825601 nick.groves@uk.pwc.com

Nick is a qualified chartered accountant and a partner specialising in Enterprise Performance Management. He has advised leading multinational clients on realising performance management solutions including performance metric definition, long range planning, budgeting, forecasting and management and statutory reporting. Nick has led the deployment of a number of global performance management and business intelligence technology solutions. Nick has a long history of working closely with the performance management software vendors, notably Oracle Hyperion, SAP Business Objects and IBM Cognos.

Consulting Richard Wyles Partner

t: 020 7212 6861 m: 07957 358674 richard.wyles@uk.pwc.com

Richard has over 18 years of EPM experience including systems strategy, financial consolidation and reporting, planning excellence, change management and project and programme leadership. As founder, and CEO of the (EPM) firm Paragon Consulting Group he developed an EPM practice of 90+ FTEs. Paragons success was based upon delivering EPM with a holistic suite of services covering process transformation, system implementation and application management services. The Paragon team at PwC is renowned for its system implementation capability, clear market leadership in Oracle Hyperion and skills in SAP Business Objects including SAP BPC.

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Appendix
Components of the PwC EPM solution EPM tools and methodologies

Plan the race ahead

Cycle of strategy to execution: Strategy to plan

Tools & methodologies

Integrated planning
We apply our enterprise-wide approach to Strategy to Plan through Integrated Planning. Our differentiated point of view considers this aspect of performance management in a holistic and integrated manner across the value chain. Diageo Global Beverage Company Better Planning PwC assisted Diageo with the redesign of its global financial planning and forecasting processes. This involved the standardisation and globalisation of new planning processes based on leading practices and lean principles. In addition, PwC supported the selection of a global planning application (SAP BPC) to enable the new processes as well as the creation of a conceptual design and data model for SAP BPC. We have since been retained to design a development strategy, implementation roadmap and business case for a global rollout of the new planning processes and SAP BPC technology. Common Planning Platform The standardised financial planning and analysis process PwC delivered enables faster management decision making. Finance professionals from all divisions and geographies speak the same planning language, focus on analysis and deliver more value to the business. Management gains increased visibility to global trends and sensitivities and can quickly model the prospects of contemplated operational adjustments.

Enabled through technology We have methodologies to support process redesign, supporting technology selection and technology implementation. Technology templates accelerate delivery of benefits and lower risk.

Global Pharmaceuticals Company

Underpinned by deep thinking Pervading our unique points of view and technology accelerators is deep thought leadership grounded in experience and understanding of client challenges.

Newmont Mining One of the worlds largest mining companies

Driver based planning mine by mine Newmont Mining developed a roadmap to move it to an EPM enabled organisation. This started with implementing new strategic planning and actuals based reporting processes and systems. We then helped the client design and implement new driver based planning and budgeting processes, implemented at a mine by mine level, producing efficient integrated phase budgets bottom-up, for the global business, for the life of each mine.

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Monitor your performance

Cycle of strategy to execution: Measure to forecast

Tools & methodologies

An enterprise wide approach
Our unique approach to the design and implementation of reporting and analysis solutions allows you to focus and address different information needs across the value chain but at the same time ensures cross-functional integration process improvement and direct alignment to the enterprise wide strategy. UKs Largest Catalogue Retailer Profitability Analysis The business performance was previously measured on Gross Margin with no view of additional product costs. There was no link between buying and merchandising decisions and operational cost impact. We supported the client to address and answer the key business questions such as where to source product, how to range product and how to dispose of excess stock. We performed an activity analysis, developed a solution to measure and analyse true product and customer profitability and managed the change to ensure enterprise wide adoption of the new performance management approach. Global Reporting, Planning & Consolidation Solution Our client aimed to transform its fragmented financial performance management environment grown by evolution and acquisition. We supported the client to implement a new global reporting, planning and consolidation system used across Finance, Supply/Procurement, Commerce, HR and IT and fully integrated across Group, Regions and more than 150 Operating Companies around the world.

Combined with specify analysis We have helped many leading organisations to either transform their enterprise information environment and/or design and implement industry/function- specific solutions which provide new insights and have led to significant measurable business results.

Leading Global Brewery

Enable transformational change Our methodologies and tools are proven and have been applied successfully to the most complex situations. Our methodologies are not just enabling an accelerated implementation of new reporting and analysis tools but also a sustainable transformational change to the organisation.

Leading Global Agro-Chemical Company

Business Transformation The client aimed to maximise the standardisation and scalability of business processes and services across the company with particular focus on the support functions of HR, procurement, finance and information services. This is to enable scalable and reliable delivery of these services while freeing up the rest of the business to focus on its main business activities. As a key enabler for this business transformation, we established a globally harmonised management information and reporting environment with common measure, processes, tools and governance structures.

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Celebrate your success

Cycle of strategy to execution: Recognise to reward

Tools & methodologies

Culture assessment
Our culture survey tool enables the assessment of the current culture, staff motivation towards reward and the values they believe drive behaviour. This information provides a base line of culture and indicates the types of interventions that are needed, other than merely changing the reward strategy. A leading pharmaceutical company Behavioural change PwC assisted one of the worlds leading pharmaceutical companies to communicate new reward and grading structures. PwC worked closely with the central teams in the US/UK and used change communication techniques to help underpin rapid workforce integration at all levels. PwC completed a series of projects designed to establish a new internal brand while re-positioning all aspects of grading, reward and recruitment.

Training strategy Any change in process will introduce the need for knowledge transfer. A clear training strategy will ensure the smooth introduction of new ways of working and in some cases can itself be a nonfinancial reward.

A global FMCG business

Performance improvement PwC worked in partnership with a global FMCG business to design develop an implement a performance improvement training programme aimed at: improving ownership of end to end process, improving clarity around responsibility for communicating performance variances, team dynamics, the importance of networking in solving problems. The training was co designed with the client to cover the basic spectrum of: increased knowledge, skills enhancement and attitude change.

Competencies & skills framework Reward strategy must be aligned to the strategic measures but also the organisation design. Jobs and roles are grouped by competencies, each competency having an appropriate market value.

A large pharmaceutical company

Organisation design This global pharmaceutical organisation recognised its Compensation and Benefits function was not structured to deliver an efficient service to an organisation that was increasingly globalising. PwC assisted the company to review the effectiveness of the C&B organisation including: Reviewing the current organisation structure Benchmarking how other global organisations are structured to deliver similar reward services globally Assessing alternative operating models and reporting structures

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Change your ways for good

Leadership and Governance

Tools & methodologies

Leadership star
This tool displays the make up of the leadership team across a series of leadership types, such as visionary leadership, managerial leadership, personal leadership and technical leadership. A large pharmaceutical company Behavioural change PwC assisted a large pharmaceutical company delivering strategic and tactical advice for implementing a transformational change around the behaviours and mindset of clients employees, consisting of: a code of conduct roll-out and implementation, Risk management strategy and vision, compliance assurance mapping, compliance IT (and KPI) strategy and global promotional practices

Culture roadmap The creation of a cultural roadmap is useful in pulling together all the interventions that will affect the organisation culture. It helps management to see the foundations and the timing of different actions and the interconnections between them.

A leading energy company

Performance drive PwC assisted one of the largest energy companies in the world to transform the way it operates one of its key businesses. The main objectives of this workstream were; create a culture of ownership and performance drive within the clients operations, define and land the desired organisational behaviours, leadership and innovation as vehicles for driving business performance, develop business focused leadership, align local HR reward and recognition policies and develop the organisational capabilities required to underpin successful implementation.

Ten tests of Organisation Design All organisation design is a compromise: a trade off between different views and models. The ten tests allows assessment across strategic fit and good design principle promoting a considered view of this trade off.

A large pharmaceutical company

R & D operating model design PwC assisted a large pharmaceutical company to design, construct and implement a new operating model for R&D. PwC also advised on the definition and implementation of new R&D policies, processes and systems, focusing on initiatives to get stakeholders as well as the front-line involved, and to encourage changes in peoples behaviours in a shift towards a project-oriented R&D.

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Maximise the value of information

Performance management architecture: Information strategy

Tools & methodologies

Top-Down Integrated Approach
Reinforce strategic clarity for the performance measurement mission. A properly Top-Down formulated and clearly articulated strategy sets the direction for your Performance Management System to monitor Bottom-Up implementation company wide. Global Drinks Manufacturer BI Project Background: As part of a global finance transformation PwC supported the client in developing a new BI capability. Our approach: This included creation of global reporting and governance processes and the design of a new reporting framework, i.e. BI landscapes and reports for all business areas in scope. PwC also supported creation of the new reporting organisation and governance. Benefits: Globally aligned and transparent reporting.

IT Performance Framework PwCs pragmatic approach that addresses prevailing business and IT issues in the market today with EPM in a way that drives accelerated and sustainable value to the business and creates a realistic road map for process and technology transition. .

Global Manufacturer

Master Date Management Project Background: M&As created multiple processes and technologies. Business units could not provide basic product and pricing reporting as data was inaccessible. 75+ people involved in the data collection covering 25 different IT systems. Our approach: Developed management processes in support of MDM model stewardship program, maintenance processes, and technology recommendations. Benefits: Resources were not distracted by legacy data issues and were able to focus on enterprise process efficiencies.

Integrated Technology Platform Overall alignment of the EPM suite integrating performance measurement, planning, budgeting and financial consolidation processes enable the shift to higher-value activities to achieve successful strategy implementation. A single integrated EPM technology platform is the support required to success on performance management.

Engineering Company

Standardising Data Set Project Background: Client problems with new CRM system due to multiple data sources (largely due to acquisitions) and conversion of legacy customer data. Our approach: Identified and defined the data elements that were critical to this initiative. Established data quality metrics. Reviewed existing processes for maintaining data. Benefits: Determined that 40% of customer data was duplicated across divisions. Provided a detailed assessment of client data, developed business rules and created an improvement plan.

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Provide the tools to perform

Performance management architecture: EPM and BI applications

Tools & methodologies

Methodology
Tried and tested EPM implementation methodology to turn strategy into sustainable business performance.

A Large Financial Services client

Application Selection PwC appointed to support selection process for group reporting and consolidation reporting system Review of finance processes Delivered detailed specifications for new system Management of system selection process Proof of concept management and delivery Established ongoing programme of continuous improvement

KPI libraries
PricewaterhouseCoopers Advisory: Complete the KPI as short as possible. Leave words out such as: number, percentage, relation, etc. Example: Percentage sickness absence This should be: Sickness absence Give each KPI a unique number, starting with the department code, followed by an _ (underscore) and finish with the KPI name. Example Management Team: MT1_SicknessAbsence PricewaterhouseCoopers Advisory: The KPI owner is the person who is responsible for the result of that specific KPI. This person also takes actions if the KPI report 'amber' or 'red'.

Engineering Group Industry relevant KPI libraries provide a fast start to deploying scorecard and dashboard technology.

Best Practice in Application Management Services

Successfully supported Oracle Hyperion Enterprise Consolidation and Group reporting since 2006
Expert support and system development Rapid and valuable response to client issues Reduced maintenance effort Improved data quality and reduced time in data collection and reporting

PricewaterhouseCoopers Advisory: Describe detailed the definition of the KPI. Mention precisely how the calculation should be done and what values (measures) are used. Example Sickness absence: Sickness absence: (total # hours of absence per measure period / total # contract hours per measure period) * 100%. Absence hours at the days of no contract are not recorded as absence days.

KPI_ID Consumer Products Entertainment & Media Government & Public Sector Financial Services Industrial Products Pharmaceuticals/Life Sciences Energy KPI_Name KPI_Description KPI_Objective KPI_Calculation

11 Y

Industry

PricewaterhouseCoopers Advisory: Give as short as possible the formula of the KPI. This is a standard description at the dashboard next to the KPI name. Therefore it should be short, but it should give insight in what measures are connected to the calculation of the KPI For the example sickness absence would be: (# sickness absence hours / # contract hours) * 100.

Supply Chain: Capacity Utilisation The produced volume of Finished Product as a percentage of the volume of Finished Product that can maximally be produced. To identify what percentage of the maximum production capacity is actually being used. Volume of Finished Product Produced ----------------------------------------------- x 100% Line Speed x Available Hours x OE - Reference Speed is preferred over Line Speed - Available Hours based on standard days production per week - OE = Actual OE

PricewaterhouseCoopers Advisory: Give as short as possible the formula of the KPI. This is a standard description at the dashboard next to the KPI name. Therefore it should be short, but it should give insight in what measures are connected to the calculation of the KPI For the example sickness absence would be: (# sickness absence hours / # contract hours) * 100.

KPI_Owner KPI_UnitOfMeasure KPI_ValueDriver KPI_DisplayType KPI_Benchmark KPI_Functional/BusinessLevel KPI_EnteredBy KPI_EnteredDate

COO % Maximise capacity Bar graph

Ruth Gilligan 28 Jan 2009

PricewaterhouseCoop ers Advisory: What should we excel at? Measurable factors that impact strategy execution and create PricewaterhouseCoop ers Advisory: Optional: What is PwC best practice?

Breadth of experience PwC extended its EPM capability by acquiring the Paragon Consulting Group providing domain leadership in strategic planning, budgeting, forecasting, consolidation, reporting and business intelligence.

One of the worlds largest retail groups

Transforming the Reporting Process A global business where reporting overly focused on profit and loss and was highly inefficient (disjointed processes, disjointed Excel and EPM systems) We helped the client develop a world class blue print for future group reporting including an integrated data model for management and legal reporting and a new framework for standardised reporting processes Configured Oracle consolidation solution integrating with the ERP and automated parts of the process
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Everyone on the same page

Performance management architecture: Enterprise information platform

Tools & methodologies

Enterprise Information Architecture Framework

A large telecommunicati on company

Leading Global Telecoms Group PwC assisted a large telecommunication company as trusted advisor
to define the structure and vision for a long-term programme establishing an EPM suite covering MI, consolidation and financial forecasting across the group. Activity included: reviewing strengths and weaknesses of the global EPM processes, KPIs/metrics, organisation and systems, defining a targeted scope for change across group and operating company business units and processes, determining the guiding principles for long-term improvement in MI and planning, including KPI and metrics definitions and establishing a 4year road map and approach to delivery across the global business.

Portal Data Applications Warehousing Enterprise Access & Search Knowledge Management Content Delivery Reporting & OLAP Solutions Operational BI Data Mining

Data Quality & Cleansing Data Security Data Integration

Technology Enabled Enterprise Performance

A large pharmaceutical company

Dashboards

Scorecards Financial Consolidation Budgeting & Forecasting Applications

Technical Security Architecture for Knowledge Management and E-Commerce Web Portal PwC assisted a large pharmaceutical company analysing business requirements, solution architectures, implementation considerations, operational considerations, and product selection criteria specific to company's Knowledge Management and ECommerce initiatives.

Master Data Management

A large pharmaceutical company

Relevant standards for Electronic Content Management EU Model Requirement for Electronic Records Management (MOREQ) US Department of Defense (DOD) Records Management Certification

Data Management Using the Data Management Group's proprietary Tactical Development Methodology, PwC assisted the client in developing user requirements which eventually were used by the client to create functional requirements.

UK National Archives Generic Requirements for Electronic Document and Records Management

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Embracing all sources of data

Performance management architecture: Source systems and infrastructure
Tools & methodologies
IT Functional Model view
Our IT Functional Model is an integrated execution framework that includes governance, people, process, technology and metrics required for an efficient, effective and successful IT architecture.

Leading finance services company

Web Based Finance Toolkit PwC assisted a leading finance services company to design an online-portal with a long term vision to develop it into a work-flow tool to support controllers in the performance of their roles. The design of the on-line tool provided the client with a catalyst for approaching the control environment in a top down way, starting with the consolidated 10-k financial statements, working down to the underlying policy, controls and processes supporting the financial statements.

PwCs Architecture Framework Service-oriented architecture centres on the notion that IT and/or business assets are described and exposed as Services. These Services can then be composed in a loosely coupled fashion into higher level business processes.

A large pharmaceutical company

SAP R/3 implementation and validation

PwC assisted a large pharmaceutical company in the implementation of a validated SAP R/3 system. This included the definition and adherence to a formalised systems development life cycle, the definition, development and implementation of validation protocols and procedures, ensuring quality in the development and finalisation of system requirements, design and development, detailed review and assurance of system and user acceptance testing.

IT Governance Framework Cube PwC brings together unique thought leadership on Business Process Management to design and build target IT architectures. This approach based around understanding the functions well suited to BPM lends itself to defining pragmatic, implementable solutions.

Leading tobacco company

ERP solution and the implementation of 3 new regional Shared Service Centres

PwC assisted a leading tobacco company implementing a combination of SAP Corporate Finance Management (CFM) and SAP In-House Cash (IHC). These systems were linked to Citibank's CitiDirect platform to facilitate the processing of both payments on behalf and internal settlements. PwC conducted a data gathering and analysis exercise to define the business needs, write functional blueprints and RICEF requirements, build enhanced transactional FX hedge management process, database tables and functionality to efficiently identify, consolidate and hedge FX exposures.
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This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 2011 PricewaterhouseCoopers LLP. All rights reserved. 'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.