Reshaping

Path to Finance Transformation
Reshaping the Office of Finance for Todays Turbulent Times

Brett Ison
Business Analytics
Growth Markets Unit
IBM Software Group
2013 IBM Corporation
Agenda
1.
2.
3.
State of Play & New

Pressures Faced
Reshaping the role of

finance
Success Stories
4.
Where to Start ?
Global businesses are striving to

engage the empowered
customer
and connect seamlessly
with their ecosystem
Combined with forces that are changing how we

live, work & play
Transformation forces
Pervasive
connectivity
Making data the new oil
Big data
Sensors
and devices
Percentage
of uncertain
data
Social
We are here
Cloud
Mobile
Social
media
Analytics
VoIP
Enterprise
data
2013
2015
Analytics Market Trends

The impact of the transformational shift:
Application-Centered Today
(1) Analytics becomes central & pervasive

(2) Data fuels business outcomes
Analytics-Centered Tomorrow
Moving to a New Paradigm
Data
about
Things
Data
about
People
Transformation
All Data
Data
about
Money
IBM will invest further in creating more skils in the market

IBM will aim to invest in partners who are building an analytics applications
Data owners seek to monetize data becoming both potential clients and potential competitors
Data aggregators and brokers are emerging; access to data will increasingly require licensing
Revenue Management Best Practice: Example
Technology is the single most important

external force shaping the organizations future
CEO Studies 20042013
2004
2006
2008
2010
2012
Insights from the

2013 IBM Global Csuite Study
2013
Technology factors
Market factors
Macro-economic factors
People skills
Regulatory concerns
Socio-economic factors
Globalization
Environmental issues
Geopolitical factors
Source: Question E8What are the most important external forces that will impact the enterprise over the next 3 to 5 years?; n=884 [CEO only]
CxOs vary in their views about which external pressures are

most significant
Insights from the
External forces impacting the enterprise

(35 Years)
CEO
CFO
CHRO
CIO
CMO
CSCO
Technology factors
Market factors
Macro-economic factors
People skills
Regulatory concerns
Socio-economic factors
Globalization
Environmental issues
Geopolitical factors
Source: Question E8What are the most important external forces that will impact the enterprise over the next 3 to 5 years?; n=4,009
Shift from managing performance to enabling performance
How we are actually making decisions
How are we doing?
Transaction Systems
12
What should
we be doing?
Why?
Warehouses
(Relational & OLAP)
Flat, Legacy
or Modern
External
Sources
CFOs Want to Do Better in Five Key Areas

Insights from the
Enabling performance not managing it

Drive data and process standards
Drive common planning

and corporate and
management reporting
Automate production of metrics
Manage Risk
Advance analytics
Source: 2010 IBM Global CFO study

15
From performance management to performance enabling
Accountable
Leadership
Functions
Decisions
Information
Business team
C
Information
Empowered business teams

Market
Market
Performance management
organization
Performance enabling
organization
While timeless responsibilities remain, Finance leaders are

redefining imperatives and how they approach them
Create effective and

efficient financial
operations
Leverage trusted
information to understand
the state of the business
Protect enterprise viability

through careful cash and
capital management
Drive agility through

enterprise integration
II
Help the business make

better decisions by
anticipating the future
III
Lead business model

innovation through a new
discipline of performance
19
Drive agility through enterprise integration:
BACK OFFICE
AGENT OF
INTEGRATION
FRONT OFFICE
Cross-channel
commerce,
fulfillment
Finance
Finance
Cross-channel
commerce,
fulfillment
IT
IT
Sales
Sales
CFO
Procurement
sourcing
CFO
Marketing
promotions
Customer
service, case
management
HR
Procurement
sourcing
Marketing
promotions
HR
Customer
service, case
management
KEY CHARACTERISTICS
Weave analytics into
the fabric of the
enterprise
Streamline and
automate analytics
Optimize analytics,
executing in
its ideal location
Work from data that

provides a single
version of the truth
Continually move
talent to highest value
activities
Becker Underwood transformed its planning and

performance management
Challenge
CHALLENGE
Corporate expansion through acquisitions and organic
growth resulted in lack of visibility and consistency.
SOLUTION
Solution
Implemented planning to achieve quick, high-impact
results focused on sales and order/refresh process
Incorporated customer and product-level plans into
a 12-month rolling forecast for greater visibility
Results
CHALLENGE
RESULTS
Resolved supply chain issues resulting in 50 percent

decrease over three years
Incorporated order data into the forecast process and

increased accuracy by up to 15 percent
Becker Underwood produces

specialty bio-agronomic and
colorant products. Founded
in 1982 and headquartered
in Ames, Iowa, the
companys annual revenues
are more than $240 million.
Better access to information across the organization

has led to better customer service and shorter lead times
21
Petrol dramatically decreases analytics query times

An IBM appliance accelerates complex queries, delivering point-of-sale suggest-sell insights
The need:
Petrol d.d. wanted to use historical and transactional data from its retail
stores to improve sales, but its analytics environment could not manage
the required query volumes or complexity.
The solution:
With an IBM DB2 Analytics Accelerator for z/OS appliance
boosting IBM Cognos software query performance, Petrol store
employees access product sales data to more effectively suggest-sell at
the point of sale.
The benefit:
Helps increase sales in retail stores
Reduces Cognos query times

Improves suggest-selling by delivering historical and transactional
sales and customer data to store personnel in seconds
IBM provides us with tools

that align with smarter
commerce, enabling us to
deliver the right message to
the right person at the right
time, to understand product
affinities and intelligently
drive the sale, all in a
customer-centric way.
Mr. Pavel Batista,
chief information officer, Petrol d.d.
Solution components:
IBM DB2 Analytics
Accelerator for z/OS
IBM Cognos Controller
IBM SPSS Modeler
ZSP03693-USEN-00
22
Zurich Insurance implements sales performance management to

streamline its agency management & compensation
CHALLENGE
Challenge
Previous systems no support for multiple channels and
indvidual country requirements
Data models not consistent on a global basis
Needed a consistent application of agency incentives
SOLUTION
Solution
Flexibility for countries & channels

Extensible global data model
Reuse of a consistent framework of tables/reports/calculations
that can be re-used across each country roll-out
RESULTS
Zurich Insurance selected

ICM(formerly Varicent) in late
2011.
Indonesia: deployed for 2 Channels Agency and Banc

Assurance. 3500 payees initially. Total project from scoping to
Go-live 6 months
Singapore: 2 Channels Agency and Financial
Analysts/Brokers.
23
Help the business make better decisions by anticipating the future:
Point of Impact
Operating Plan
Execution
Finance
Cross-channel
commerce,
fulfillment
IT
Product &
Marketing
Propensity to
buy
Sales
ACTIONABLE INSIGHT
Opportunities
Customer needs
Customer behaviors
Risk factors
Competitive threats
Foresight
Procurement
sourcing
Marketing
promotions
HR
Predictive
Demand
Planning/Forec
asting
Customer
service, case
management
II
Fraud & Risk

Analytics
KEY CHARACTERISTICS
Consistently apply analytical
rigor to new and emerging
data sources
Integrate financial and

operational information
to create insight
Apply predictive analytics to find

anomalies, optimize decisions and
business processes, and deliver
foresight to the business.
Remain ahead of new,

emerging compliance
requirements
Anticipate the future: Predictive & Financial Analytics
Example outcomes:
II
Australia Posts objective was to forecast

its daily cash flows in order to maximise
investment returns
The solution for treasury cash flow was combined with

daily P&L from SAP with the historical cash flow forecast
combined with the daily agency cash flow. A predictive
model was then overlayed on to the cubes to provide
what the daily position would be
Lead business model innovation through a new discipline

of performance: Creating the future
III
OUTTHINK AND OUTMANEUVER

THE COMPETITION
New business model decisions
Business model innovation
and prototyping
Long term financial roadmaps
Value and risk drivers across
the entire value chain
MODEL
MODEL
MODEL
Internal
levers
External
opportunities
CFO
C-SUITE
MODEL
MODEL
KEY CHARACTERISTICS
Clearly understand
value and risk
drivers
28
Rigorously and
continuously realign
resources to new
opportunity
Use advanced analytics to

identify the right actions to
capitalize on market and
technology changes
Integrate data and

innovate across
multiple business
units
Create long term financial

roadmaps encompassing
business model
transformation
McCormick protects profit with detailed understanding of customer

value and price volatility
III
CHALLENGE
Challenge
Significantly reduce the profit at risk due to volatile
commodity input prices
Solution
SOLUTION
Collect and analyze sales plan data by customer and across
over 30,000 SKUs
Evaluate the resulting profit contribution of product input
in the bill of material
Results
RESULTS
Diagnosed profit improvement moves ahead of time;
commodity price increases can be passed on to consumers
or renegotiated with industrial customers
Conducted value engineering with operations to reformulate
flavors using commodities from different regions and suppliers
Recorded $56 million in cost savings from their
Comprehensive and Continuous Improvement program with
TM1 and Cognos
29
McCormick is a global leader

in flavor. With more than $4.0
billion in annual sales, the
company manufactures,
markets and distributes spices,
seasoning mixes, condiments
and other flavorful products to
the entire food industryretail
outlets, food manufacturers
and food service businesses in
more than 110 countries.
Borghetti's co-pilot flying high at Virgin
III
Virgin Australia's CFO Sankar Narayan has helped chief

executive John Borghetti transform the airline from a lowcost carrier to a premium brand.
The airline's business efficiency project is on target to
deliver gains of $60m this year, rising to $200m
in two year's time.
"We took out the whiteboard in the meeting room next door
and put a giant screen in there which connected to the
laptops. We didn't want to deal with paper reports any more
because they have a time gap, a time delay. You need to be
able to click through in real time. It changes the level of
engagement.
That is a mind-shift change. You can hold people accountable for the micro
outcomes as opposed to the top-level outcomes," Narayan says.
Source: DAMON KITNEY THE AUSTRALIAN MAY 06, 2013 12:00AM
Balanced scorecard playbook in Statoilambition to action
Balanced scorecard creating a self regulating system
to action
Ambition
to action
Define
Success
Define
to
action
Metrics
Define
Actions
Translated
to action
Ambition
Define
Success
Define
toMetrics
action
Define
Actions
Translated
to action
LESS
MORE
Cost cutting
Calendar driven
Absolute KPIs
Controlling
Cost conscious
Event driven
Relative KPIs
Self Regulating
Ambition
Define
Success
Define
to
action
Metrics
Define
Actions
to action
to action
IBM Case Study

Spot and analyze trends
and anomalies
Predict potential threats

and opportunities
Compare what-if
scenarios
Investigation Reporting
Grey Market Analytics
Dashboards
Assemble and interact

with relevant information
Business Analytics
Assess and manage risk
Data Warehouses
Financial information strategy
Common worldwide
planning system
Single worldwide
consolidation system
Business Fin'l
Treasury
Mgmt.
Mgmt.
Planning
Info
Info
Corporate
Whse
Acctg
Consol
Geo
Whse
Single worldwide
financial information
warehouse (FIW)
Common information
Common geographic
mega-centers
Accounts
Payable
Assets
Manage
risk
Common ledger
Ledger
Employee
Disbursements
Intercompany
Accounts
Receivable
Common data definitions and processes

Corporate data standards-financial elements
Single worldwide chart of accounts
Finance lead client
Common
transaction applications
Common
data definitions
Operational
efficiency
Business
insight
CFRS
Measure and
monitor behavior
Turn insight into action,

optimizing results
Continuous Control
Monitoring
PRISM
Exhibits
attribute
Does not exhibit

attribute
Likelihood of a deal achieving objectives
Understand customer
sentiment and behavior
Plan, budget and

forecast resources
Jam / IDEA Lab
Attribute 17 Attribute 18
SEE
IBM Research
Predictive Analytics;
WWSpend; STAR
Align strategic and

operational decisions
33
Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5
LEADSONLY
PILLAR
LEADSAND-LOAD
PILLAR
LOADONLY
PILLAR
Firm
LOADONLY
PILLAR
WEEKLY PILLAR WEIGHTING MODEL

Computes historically optimal weights for
each pillar, by week, geo/region, and brand
FINAL OPTIMIZED ASSESSMENT
an optimal weighted average of the four pillars
for each geo/region, and brand
Drive insight and agility by linking across domains

IBM delivers one comprehensive, analytic and planning platform
Marketing
Sales
Incentive
Compensatio
n
Quota Plan
Territories
Sales
Channels
Sales
dashboard
Sales
Performance
Management
Campaign
scorecard
Promotion
plan
Customer /
Product
profitability
Revenue
plan
Workforce
Operations
Ops KPIs
S&Op plan
Capacity &
Inventory
plan
Product
allocation
New
products
Operational
Performance
Management
Workforce
KPIs
Headcount
plan
Salary &
comp
Staffing plan
Training &
Development
Financial
Performance
Management
Finance
Long-term
plan
CapEx &
Working
capital
Cash flow
plan
EPS / DCF
projections
Risk
Reporting
Disclosure
Management &
Financial Close
Advance analytic maturity by leveraging capabilities

IBM delivers best-in-class predictive and big data analytics
Likelihood of churn
Future lifetime value
Credit worthiness
Customer data
Transaction history
Predictive models
Profitability analysis
on retention,
performance
and patterns
Social Media history
Sales
Performance
Management
Operational
Performance
Management
Financial
Performance
Management
Change policy,
In-process decision
management
Disclosure
Management &
Financial Close
Where to start ?
Drive enterprise
agility
Quick Starts,
Proof of
Concepts &
Business Case
Development
Consulting,
implementation,
software
Lead a discipline
of performance
Anticipate the future
Performance Management
o Client Briefing 1 day
o Maturity Assessment - 1 wk
o Business Value Assessment 2 wks
o Performance reporting demo
Roadmap session 1 day
Finance Healthcheck
Revenue Management Diagnostic
Sales performance Management
Pilot
Business Analytics Experience

Workshop
Business Analytics and Optimization
Jumpstart
Predictive Proof of Concept
Financial Metrics Briefing

Performance Management Diagnostic
Predictive analytics
Financial analytics
o Performance reporting, dashboards
and KPIs
o Planning , budgeting, and forecasting
o Disclosure management and
financial close
Fraud and risk analytics
Big data exploration

Profitability modeling and optimization
Strategic planning and management
Risk and assurance analytics
Operational analytics
Digital front office
Talent and
change
management
Workforce analytics and optimization | Workforce and talent assessment | Workforce collaboration | Change management |
Culture transformation
Infrastructure
and systems
Business and IT services sourcing | Security | Business resilience | Application rationalization | Cloud and systems | Big data
Financing
Project financing | Leases and loans | Global asset recovery services

Thank You
PM Snapshot Services and Solutions Overview
PM Diagnostic (BVA)
Domain Areas
Customer Analytics
(CCI)
Planning,
Budgeting &
Forecasting
Business
Analytics &
Reporting
(primary
focus on
TM1)
(core BI
primarily
Cognos)
Dashboards
& Scorecards
Financial Analytics
(CFO Dashboard)
(core BI
primarily
Cognos. Also
SPSS for
predictive)
Supply Chain
Analytics &
Dashboards
Cognos Optimization (BVA)
Human Capital
(Workforce)
Analytics
Industry Specific
Analytics (e.g.,
DSR)
IBM has successfully developed, incubated, and deployed

analytics-based initiatives across several areas
Focus Areas
Sales
Management
Risk
Management
Development
HR Resource
Management
Planning &
Forecasting
6.8
2.3
(0.5)
(0.7)
2.0
12.3
GF A/R + Others
Buyback
FCF (Ops)
13%
2.9
1.4
(1.5)
6.2
(0.6)
0.0
(0.6)
(0.1) (1.5)
3.5
0.3
Term Debt (New - Maturity)
21.7
23%
0.3
3.3
(2.8)
0.2
(3.0)
Change in CP Balance
4.4
17.5
37%
0.8
2.8
2.9
14.9
42%
1.0
12.9
15
Acquisition
4.3
2.7
13.7
IBM Cash
20
(4.1)
1.0
(5.1)
(0.1) (1.5)
0.0
(0.1)
(0.7)
(2.0)
(1.9)
(0.2) 12.0
0.0
(1.9)
(0.7)
(0.0) (2.0)
0.0
(0.3)
$B
Dividend
Acquisition
Dividend
(0.7)
GF A/R + Others
2.6
Buyback
FCF (Ops)
GF A/R + Others
Acquisition
7.6
Available GCF
Buyback
FCF (Ops)
Core Debt
9.6
Net Income
12.3
Total Equity 13.5
Core Debt to Cap 49%
CP
0.5
25
Dividend
GF A/R + Others
Acquisition
Dividend
Buyback
FCF (Ops)
X </= $4,778
67%
Mean = $4,694M
2007 System z Revenue Probability Distribution

X </= $4,386
5%
2.5
10.0
10.0
3Q'09
4Q'09
10
4Q'08
0
2Q'05 3Q'05 4Q'05
1Q'06
2Q'06 3Q'06 4Q'06
1Q'07
2Q'07 3Q'07 4Q'07
1Q'08
2Q'08 3Q'08 4Q'08
40
ROA May 31 -$3.0B
51%
44%
28%
15%
Debt Maturity Profile by Quarter next 5 years

3,500
Te rm D e bt M aturity
P rofile a s of M ay'0 9
2,900
3,000
2,000
35
40%
30%
20%
10%
0%
1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09
1 ,470
1,500
50%
Term Debt
10
1 ,242
1,042
1,000 1,005
1,000
5 10
500
321
500
6,000
21
64
F e b '1 0
M a r'1 0
A p r'1 0
M a y'1 0
J u n '1 0
138
3Q10 4Q1 0 1 Q1 1 2Q 11 3Q11 4Q 11 1Q12 2Q 12 3 Q1 2 4 Q1 2 1Q13 2Q 13 3Q13 4Q 13 1 Q1 4 2 Q1 4 3 Q1 4 4Q 14 1Q15 2Q 15
5,000
4,000
$Million
Bank Debt
Average % (CP+Bank Debt):~25%

% Of Debt In CP & Bank Debt
25
20
15
CP Plus Bank Debt / Total Debt (%)
CP
30
USD
USD IGC
EUR
CHF
3,000
JPY
2,000
1,000
C u rrenc y
U SD
U SD I GC
EU R
JP Y
CHF
Tota l
2009
2010
20 09
65 1
4 ,531
0
0
0
5 ,182
2010
33
0
1,3 84
5 10
0
1,9 27
2011
201 1
1, 67 5
0
83 0
0
32 1
2, 82 6
2012
2012
1 ,400
1 ,500
0
0
0
2 ,900
2013
2 01 3
2,003
0
0
510
0
2,513
2014
20 14
0
64
1 ,038
204
0
1 ,306
2015
2 015
0
0
0
0
1 38
1 38
2016
201 6
0
0
0
0
0
0
2017
20 17
3 ,0 00
0
0
0
0
3 ,0 00
2018
2 01 8
1,60 0
0
0
0
0
1,60 0
2019
20 19
7 50
0
0
0
0
7 50
2020
2 020
0
0
0
0
0
0
2021
20 21
0
0
0
0
0
0
2022
2022
0
0
0
0
0
0
20 23
2 02 3
0
0
0
0
0
0
2024
2024
0
0
0
0
0
0
LIQUIDITYANALYSIS / CASH - DEBT< 3 MONTHS
0.5
$40
($B)
Interest Expense as a % (QoQ)
Total
15 ,093
6 ,095
3 ,252
1 ,225
45 8
26 ,123
4%
3%
$15
US
TC + IIG
Others Countries
Total WWCash
7.3
1.5
2.0
10.8
Actual
2Q07 3Q07
7.0
1.2
2.0
10.2
10.6
1.0
2.3
13.8
4Q07
12.9
0.6
2.7
16.1
June 4, 2009
1Q08
Actual
2Q08
8.7
0.7
2.7
6.2
1.1
2.6
12.0
9.8
3Q08
6.8
0.1
2.9
9.8
Actual
4Q08
Actual
1Q09
8.0
1.7
3.2
8.2
1.1
2.9
12.9
12.3
2Q09
Projected
3Q09 4Q09
7.3
1.6
3.1
5.3
1.7
3.0
6.0
1.0
3.0
12.0
10.0
10.0
Debt < 3 Months

US
TC + IIG
Others Countries
$10
1Q07
Cash
5%
3M Libor (QoQ)
$25
$20
Percentage (%)
Total Debt ($B)
>2024
> 20 24
3,9 82
0
0
0
0
3,9 82
6%
Total Debt
$35
$30
Total WWDebt
5.7
0.0
2.7
8.3
4.9
0.0
2.2
7.1
2.9
2.0
2.4
3.9
2.8
2.3
2.7
3.1
4.6
0.4
3.4
2.3
9.1
2.9
2.6
2.2
1.4
2.0
1.2
0.2
1.8
1.7
0.8
4.8
3.4
0.3
2.2
0.3
1.6
1.5
1.6
7.3
9.0
7.3
7.7
5.2
3.2
7.2
US
TC + IIG
1.6
1.5
2.1
1.2
7.6
(1.0)
8.9
(2.2)
6.0
(2.4)
1.6
0.8
3.8
(2.5)
6.6
(0.3)
7.0
0.9
6.5
(3.2)
1.9
1.4
3.8
0.7
Others Countries
(0.6)
(0.2)
(0.2)
0.4
(0.6)
0.2
0.7
1.4
1.2
1.5
1.5
1.4
2.5
3.1
6.5
7.1
2.9
2.6
2.1
7.7
9.1
4.8
5.2
4.8
4.1
5.9
2%
4.2
4.45
4.7
4.95
Liquidity< 3 Months
$5
5.2
$0
1%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Revenue ($B)
Consolidating and
analyzing data
from disparate
sources to
address
compliance
issues and
pinpoint risks
Pension Equity Impact
1Q'09
60%
Applying science
to the art of
opportunity
identification,
seller deployment
and prospecting
2Q'09
2,500
Debt ($B)
Values in 10^ -3
1Q'05
1.5
1Q'09
Simulating future
performance of
development
portfolio &
investment mix
2001
Using matching
engine to analyze
unstructured job
and resume
information to
identify best staff
for open positions
on projects
2002
2003
2004
2005
2006
2007
2008
2009
World wide
Predicting and
optimizing
performance by
analyzing
productivity and
pipeline
Formula for Success:

Bold Vision + Rigorous Analytics + Business Value Focus + Perseverance = Impact!
We practice what we preach !!!

75+ consultants in US (50), Europe (15), Japan and Growth Markets (12) operating as a global team
Part of IBM Corporate Headquarters organization
Strong partnership with IBM Research, Finance, and Business Units
Examples
Coverage Optimization with
Profitability (COP)
Market Alignment Program

(MAP)
Territory Optimization
Program (TOP)
Smarter Enterprise
Enablement
Sales coverage optimization

through client-level profit
estimation
Client-level view of
opportunity for resource
allocation
Optimization of sales
territories for individual
sellers
Integrated environment for

strategic planning,
modelling, and optimization
Capacity and Productivity

(CAP)
STAR
Proactive Retention
PRISM
Sales capacity and

productivity analysis
Statistical revenue
forecasting
Optimization of investments
in employee retention
Risk assessment and

mitigation in integration of
acquisitions
40
Agenda
1.
2.
3.
State of Play & New

Pressures Faced
Beyond Performance
Management
Success Stories
4.
5.
IBMs Response
Where to Start ?
IBMs Approach going forward is to
Cognitive
How can we learn dynamically?
Innovate in descriptive,
predictive, prescriptive and
cognitive systems
Develop Interactive Analytics
with unparalleled user interaction
solving key business problems
Provide people-centric, task and
workflow-based solutions
enabling collaboration
IBM Branded
Big Data &
Analytics
Platform
Prescriptive
How can we achieve the best outcome?
Predictive
What could happen?
Descriptive
What has happened?
Business Value
How can everyone

be more right.more often?
Disrupt the market
Information Layer
How is data managed and stored?
Deliver business outcomes
LOB Business Process Transformations analytics as a source of value creation

Integrated Risk Management platform to enterprise-GRC and risk enabled decision support
Integrated Performance Management solutions covering finance and critical business functions
Enable pervasive analytics
Cloud / APIs / Mobile

AZone + Answers: A place where people engage around analytics for insight & decisions
Synergies - Leverage IBMs depth and breadth of assets, skills, capabilities and knowledge
Agenda
1.
2.
3.
State of Play & New

Pressures Faced
Beyond Performance
Management
Success Stories
4.
5.
IBMs Response
Where to Start ?
Automotive Business
Process Maps
Automotive Value
Driver Trees
Sample KPI Prototypes

for Modeling
IBM maintains a comprehensive suite of tools and accelerators that support

the diagnostic
Process Value Driver Tree Automotive 2.0 Build
Process
Business processes to explore closing financial performance gaps
Revenue Growth
Cost of Goods Sold

COGS as % of Revenue
Selling, General &

Administrative
SGA as % of Revenue
Key Performance Indicators

Incentives/Vehicle
Order Fulfillment Lead Time
2.1 Plan
Production
and Service
Delivery
Forecast
Accuracy
Product
Availability
Configuration Management
and
Automotive 10.1 Change
Tree
Process Value Driver
On-time Delivery
Revenue
Cost of Goods Sold
Selling, General &

Administrative
Change and Configuration

Management
Manage Information
Technology
Return on Assets
Manage Finance
Service

Management
Manage Human
Resources
Cost of Goods Sold
Plan Effectiveness
Operational
Process
Downtime
Gross Margin
Inputs
Number of Changes in
Product Life Cycle
Logistics DollarsInventory
/ Vehicles
Carrying Cost
Percent of
FTL
Days of Supply
Inventory
Sell
Service
Manage Finance
Build
Build

Management
Design
Research &
Design
Development
Research &
Service
Development
Percent of Backhaul
Time to Market
2.2 Manage
Inbound
Logistics
Research &
Sell
Development
Inventory
and Number of Changes

Timing
Cost of Goods
Sold
Logistics Plan Adherence
Advanced Product Quality
Selling, General, and Administrative
Number of Changes Late in

10.1 Manage
Inputs
Expense
Engineering Process
Product and
Commonality
Part/ToolTree
Accuracy (continued)
Automotive Forecast
1.0 Design
Process
Percent of Change
Inventory Days of Supply
Change
Process
Operational Drivers
Supply Chain Effectiveness
Engineering Efficiency
Inputs
Build
Share of Customer Spend

Customer Focus Ratings
Change Over, Cost/Time
Order to Delivery Time

on Assets
Process Return
Value
Driver Tree Automotive
1.0 Design (continued)
Design
Fixed Assets
Time
DownTime
Design Response
Effectiveness
Total Supply Chain
Customer Demands
Revenue and Fixed Assets

Management
Manage Finance
Manage Finance
Manage Finance
Automotive Business
Process Maps
Process
Maps
Accounts Receivable
Days Receivables Outstanding
Service
Build
Service

Management
Sell
Design
Sell
Build
Build
Accounts Payable
Build
Design
Accounts Receivable
Fixed Assets
Design
1.5 Develop
Product and
Processes
Customer Retention
Adherence to Design Goals
Automotive Value
Driver Trees
Industry
Value Driver
Cost of Goods Sold
Operational
Vehicle Quality Design Effectiveness
Time
to Market
Drivers
Key
Performance Indicators
Design Failure Mode and Effects
Analysis
(DFMEA)
Share of Customer
Selling, General and Administrative
Expense Spend
Process Failure Mode and Effects Analysis
Customer Satisfaction
(PFMEA) Part/Tool Commonality
Vehicle Cost
Scrap/Rework
Customer Retention
Feature
Availability
Time to Market
Carrying Cost
Inventory
Vehicle Architecture Commonality
Manufacturing Cycle Time
Engineering Effectiveness
Production Plan
Adherence
Gross Margin
Process
Quality
Vehicle Quality
Warranty Dollar / Vehicle
Time to Market
Adherence
to Design Goals
Expense
Inventory Days of SupplyDesign Effectiveness
Sourcing Effectiveness
Failure Selling,
Mode and
Effects
Analysis
Change Over Cost / Time Vehicle Quality
General
and
Administrative Expense
TimeDesign
to Market
(DFMEA)
Time to Market
Total Delivery Costs
Part/Tool Commonality
Down
Time
Pricing Effectiveness
Process
Quality Vehicle Cost
Quality
Advanced Product
Vendor Print/Unit
(PFMEA)
Man Hours / Vehicle
1.5 Develop
Return onTiming
Assetsand
Number of Changes
Inventory
Product and
Processes
1.6 Manage
Supplier
10.2 ManageRelationship
Configurations
Percent of Change
Process Quality
and Administrative
Selling, General,Pricing
Effectiveness
Feature Availability
Forecast Effectiveness
Expense
1.6 Manage
Supplier
Relationship
Return on Assets
Profitability / Growth
Illustrative mapping for revenue performance gaps
Cost of Goods Sold
Selling, General &

Administrative
Manage Finance
Manage Information
Technology

Management
Year-on-year revenue growth

Service
Revenue
Understand
marketplace
Segment target size to actual
Revenue
Growth
Perform
portfolio
analysis Activities
and Tasks
Illustrative
mapping
for revenue
performance
Sell
Share ofgaps
customerKey
spendPerformance
Update portfolio
ManageAutomotive
portfolio
Mapping business issues to business processes

Management
IndicatorsService
1.7 Validate
Product and
Process
Selling,
General,
and Administrative
Supplier Delivery
On-time
Performance
Expense
Total Supply Chain Response Time
Operational
Order Fulfillment
Engineering Leadtime
Effectiveness
1.5 Develop
Product and
Processes
Operational
Vehicle Quality Design Effectiveness
Time
to Market
Drivers
Key
Performance Indicators
Design Failure Mode and Effects
Analysis
(DFMEA)
Share of Customer
Selling, General and Administrative
Expense Spend
(PFMEA)
Production Plan
Adherence
Gross Margin
Process
Quality
Vehicle Cost
Scrap/Rework
Feature
Availability
Inventory
Carrying Cost
Customer Retention
Time to Market
Warranty Dollar / Vehicle
Inventory Days of SupplyDesign
Effectiveness
Time to Market
Adherence
to Design Goals
Expense
Change Over Cost / Time Vehicle Quality
Configurations
Product and
Processes
Time to Market
Down
Time
Process
Quality
Advanced Product
Quality
Number of Changes
Late in
Engineering Process
Vehicle
1.6 Manage
Supplier
Relationship
Failure Selling,
Mode and
Effects
Analysis
General
and
Administrative Expense
TimeDesign
to Market
(DFMEA)
Vendor Print/Unit
(PFMEA)
Copyright IBM Corporation

2003
Time to Market
Supplier Delivery On-time Performance
Quality

Process Quality
Selling, General,Pricing
and Administrative
Effectiveness
Expense
Selling,
General, Time
and
Administrative
Expense
Design
Failure Mode
and Effects Analysis
Total Supply Chain
Response
(DFMEA)
Time to Market
Total Delivery Costs (PFMEA)
Forecast Accuracy Vendor Print/Unit Time to Market
Cost of
Goods Sold
Change
Over, Cost/Time
Design Effectiveness
SupplyTime
Chain Effectiveness
Down
1.7 Validate
Product and
Process
Vehicle Cost
Man Hours / Vehicle
Percent of Change
1.6 Manage
Supplier
Relationship
Return on Assets
Part Supplier
Quality Delivery
On-time
Performance
Selling,
General,
and Administrative Expense
Supply Chain Response
Time
Time
to Market
Time to Total
Market
Inventory
Days of Supply
Expense
Vendor Print/Unit
Number of Engineering Part/Tool
Changes Commonality
Forecast Accuracy
Delivery
Copyright
IBM Corporation
2003 On-time Performance
Adherence to Design
Goals Supplier
Vehicle Cost
Cost of Goods Sold
Part Total
Quality
Supply Chain Response Time
Cost of Goods Sold
Time to Market
Vehicle Quality
Part/ToolExpense
Commonality
Selling,
General,
and Administrative
Advance Product
Quality
Performance
Used to align KPIs with

Roles, cascade to lower
level scorecards, and
socialize
design
Used to model impact
of
Packaging Standards
1.7 Validate
Product and
Process
Number of Engineering Forecast

ChangesAccuracy
Packaging Evaluation
Part Quality
Design for Manufacturing and Assembly
Production Validation
Testing to Design Goals
Vehicle Cost Cost of Goods Sold
Adherence
Quality Planning Sign-off and Management
Time to Market
Cost of Goods Sold
Capital Efficiency
Support
Vehicle Quality

Page 14
Global Project Plan

Detailed Business Case Development
Finance PMO World Class Practice Knowledge Transfer
Logical application architecture design
Physical integration of application components

Infrastructure requirements and sizing
Daily andBAO
monthlyOpportunity
batch cycle processing
Prioritization
Copyright IBM Corporation 2003
Based on
opportunitys
ability to
help the
company
achieve its
strategic
goals
Program Risk Management

Integrated Program Approach
Stakeholder Management Strategy
Change Management Strategy
Resourcing Strategy
Detailed Business Case and Investment
Justification
Clear blueprint of the technology

architecture from end-to-end
Clear process cycles times from Source
to Target
Matrix
Develop and document all Control & Production reporting

Clear blueprint of reporting requirements
to drive priorities and build out of Target
Map all reporting requirements from data source through application
State Reporting Solution
component
Standardized
and rationalized inventory
High
business
value,
High business
value,
Map
Reporting
requirements
to source data and through the metadata
of required reporting and timing
Complex Execution
Simple Execution
layer
(AKA: Quick wins)
Develop reporting Governance and Process model
Jan 2006
High
Jun 2006
Med
Document all Financial data sources

Source Extraction Design Documents
Develop data sourcing Governance and Process model
Clear blueprint of Data requirements to

drive priorities and build out of DMP
Data Solution for Finance
Standardized and rationalized inventory
of required data sourcing and timing
Low
Develop target state COA structures & values

Clear blueprint of Meta data
requirements to drive priorities and build
Develop target state GL chart of accounts and organization
out of DMP Metadata Solution for
hierarchies to enable PeopleSoft EPM functionality
Finance
Develop target state reporting line structures for FP&A, ALM and
Standardized and rationalized inventory
Basel
to supportvalue,
and enhance reconciliation and informationLow
value
LowIIbusiness
business value,
of required metadata
Socialize
andExecution
obtain buy-in to changes
Complex
Simple Execution
Adherence
to Design
Goals
Selling,
General,
Advance Product Quality

Performance
Number
of Engineering Changes
Packaging StandardsVehicle Cost
1.7 Validate
Product and
Process
Project Plans
PROJECT BENEFITS
Physical integration points for data sourcing

Aggregated Opportunity
Scores
Physical integration points for metadata
Architecture
Finance Data
Design
Integrated Reporting
Requirements
Metadata Design
Key
Performance
Indicators
Selling, General and
Administrative
Expense
Customer Retention
Vehicle Cost
On-time Delivery
Manufacturing Cycle Time
1.5 Develop
of Changes in
Product Number
and
Product Life Cycle
Processes
Vehicle Quality
1.5 Develop
Return onTiming
Assetsand
Number of Changes
Reference KPIs for each

process and sub-process
Ongoing
Integrated Design
Customer Retention
Time to Market
Drivers
Cost of Goods Sold
1.6 Manage
Supplier
10.2 ManageRelationship
Dec 2005
Jan 2006
Project Management
Inventory
Turns
Process Value Driver Tree
Automotive
Process
2.3 Manage
Production
Used to model impact of

KPIs and related drivers
on Business Strategies
and Value
Note to template user:

Customer focus ratings
Manage portfolio life cycle
Revenue
Sell
Choose pages w/business
Manage
portfolio
Develop market and
sales plan
Customer retention
Understand
marketplace Activities and Tasks
Build
processes you wish to
Change and ConfigurationAutomotive
Capture market and competitive
data
Dealer feedback
Perform portfolio
analysis
Management
Analyze market and competitive
data
focus on; delete other
Design (1 of 2)
Share
of customer
spend
Illustrative
mapping for
cost
of pricing
goods
sold
performance
gaps
Target
to actual
Update
portfolio
Revenue
Develop vehicle targets
and options
Service
pages;
Plan
and service
Customer focus ratings
Manage
cycle production
Formulate market andsales
planportfolio lifedelivery
Time to market
of Goods Sold
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Choose pagesCost
w/business
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sales
plan
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Manage
program Develop market and
Forecast sales
and demand
Management
Customer
satisfactionActivities and Tasks
Automotive
Forecast accuracy
Build
on the CBV Learning
Capture
market and competitive
Develop program requirements
and
Balance data
demand and resources
Dealer feedback
Selling, General &
Service
Adherence to design goals
Analyze market and competitive
concept
user:
On-time delivery
other Note to template
Design
(1 of 2)
Center via Industry focus on; delete
Manage data
inventory
Administrative
Target to actual pricing
Revenue
and
Develop
vehicle targets and options
Refine
plan
Sell program details
Costs as percentage of revenue
Closebooks
pages;
Production plan adherence
Manage inbound logistics
Business Process Maps;
Formulate market and sales plan
Manage
program execution
Time to market
Build
Cost
of
Goods
Sold
Develop
inbound
logistics
strategy
processes
you
wish
to
Accuracy and timeliness of
Report
with accuracy, adequacy,
More
Processes
available
delete this note
Downtime
Inventory
Manage program
performance
to targets
Manage program
Cost
of Goods Sold
information to make decisions
Plan inbound logistics
Customer satisfaction
and timeliness
Design
on the CBV Learning focus on; delete other
Inventory days of supply
Develop concept
Executeand
inbound logistics
Selling, General &
Speed-to-decision
Manage Finance
Adherence
design goals for
pages;
Provide
data andtoinformation
concept
Center via Industry
Determine
vehicle
and
Fixed Assets
Manage containers
Order to delivery time
Note
to
template
user:
Cost
of Goods
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Administrative
decision
making
Change
and Configuration
Refine program
details
plan logistics performance
Internal customer satisfaction
characteristics
and
Measure
Choose
pages w/business
Manufacturing cycle time
Management
Manage program
execution
Engineer
product configuration
Approve finance and accounting
Number of audits
on the CBV Learning
Manage production
Accounts Payable
delete this note
General
&to
Inventory
processes
you
wishevaluate
Manage
program
to targets
Finished goods inventory days of
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Develop
and
vehicle
concept
andperformance
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Accounts Receivable
Finalize concepts and
targets
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Determine vehicle attributes
and component production
Fixed Assets
Manage
pages;
Design
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delete this note
Develop
characteristics
Manage vehicle assembly Initiate and implement strategic
Supplier satisfaction
More Processes
available Engineer
change
Design components (parts
and modules)
Manage outbound logistics
Accounts Payable on theFixed
Compliance with negotiated terms
Selling,
General vehicle
&
Learning
Assets
Develop
and evaluate
concept
and logisticsand
CBV
Design
manufacturingprocess
Develop
outbound
Trade credit terms requested by
Administrative
alternatives
Percentage of disputed invoices
Center
Industry
via
Design
tooling
distribution strategy
purchaser
Accounts Receivable
targets
Plan outbound logistics
Accounts
Payable
Business
Process
Maps; Finalize concepts and
Percentage of overdue invoices
Assess
credit
Inventory
Execute outbound logistics
Develop product andprocesses
delete this note
Bad debt
Measure
logistics performance
Monitor invoice timeliness
and modules)
Accounts Receivable Design components (parts
Assets
DesignFixed
manufacturing
process
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Design tooling
2004overdue
IBM Corporation
Collect
information
3
Accounts Payable
Page 3
Conduct collection
efforts
Accounts Receivable
Conduct strategic sourcing
Manage supplier
Select and evaluate supplier
3
Page 3
Manage e-procurement
5
Manage purchase order
Page 5
Manage supplier discount
Mobilize PMO
Down
Time
Design Response
Effectiveness
Total Supply Chain
Time
Process
Product Availability
Capital Utilization
Cash Operating Cycle
Indicators
Percent of Backhaul
Packaging Evaluation Time to Market
LogisticsValidation
Plan Adherence
Production
Testing
Advanced
Product Quality
on Assets
Process Return
Value
Driver Tree Automotive 1.0 Design (continued)
Customer Demands
PROJECT OBJECTIVES
Establish PMO to manage Roadmap
Develop and implement PMO Tools
Resourcing Strategy
Change Management Strategy
Selling,
General,
and
Quality
Planning
Sign-off
and Administrative
Management

Understand marketplace
Page 14
Perform portfolio
analysis Activities
and Tasks
Illustrative
mapping
for revenue
performance
Share ofgaps
customerKey
spendPerformance Indicators
Update portfolio
14
Packaging Standards
Timing
and Number of Changes
Cost of Goods
Sold
Capital EfficiencyInputs
10.1 Manage
Number of Changes Late in
Expense
Support
Engineering Process
Product and
Part/Tool
Commonality
Accuracy (continued)
Tree
Automotive Forecast
1.0 Design
Process
Percent of Change
Change
Process
Operational Drivers
Change
Over, Cost/Time
Order to Delivery
Time
Manage portfolio
TIMELINE
Process Value Driver Tree Automotive 10.1 Change and Configuration Management
Inputs

14
PROJECT
Forecast
Number of Engineering Incentives/Vehicle
ChangesAccuracy

IBM Benchmarking Program
Forecast Accuracy
Delivery
2003 On-time Performance
IBM Corporation
Copyright
Adherence to Design
Goals Supplier
Incentives
Gross Margin
2.2 Manage
Inbound
Logistics

Management
Automotive
Service
Supply Chain Response

Time
Time
to Market
Time to Total
Market
Inventory
Days of Supply
Expense
Vendor Print/Unit
Number of Engineering Part/Tool
Changes Commonality
Order Fulfillment
Part Quality Lead Time
Production Validation
Testing to Design
Vehicle Cost Cost of Goods Sold
Adherence
Goals
Forecast Accuracy
Product
Availability Quality Planning Sign-off and Management
Cost of Goods SoldTime to Market
Capital Efficiency
Support
Copyright IBM
Corporation 2003
On-time
Delivery
Adherence
to Design
Goals
Selling,
General,
Vehicle
Quality
Production
Plan
Adherence
Plan
Effectiveness
Process
Operational Drivers
Key
Performance
Advance Product Quality
Performance
Number
of Engineering Changes
Downtime
Return
on Assets
Packaging
Standards
Vehicle Cost

Production ValidationCost
Testing
of Goods Sold
Number of Changes in
Cost of Goods Sold
Logistics
DollarsInventory
/ Vehicles
Quality Planning Sign-off
and Management
Carrying Cost
Inputs
Capital Efficiency
Product Life Cycle
Support
Vehicle Quality
Percent of
FTL
Inventory
Days of Supply
Advance Product Quality Performance
Manage Finance
Revenue
2.1 Plan
Production
and Service
Delivery
1.7 Validate
Product and
Process
Manage Human
Resources
Part Supplier
Quality Delivery
On-time
Performance
Selling,
General,
Sample KPI Prototypes

for Modeling
Prioritization Principles
Part Total
Quality
Supply Chain Response Time
Time to Market
Vehicle Quality
Operational
Drivers
Key
Performance
Indicators
Part/ToolExpense
Commonality
Engineering
Effectiveness
Selling,
General,
and Administrative
Advance Product
Quality
Performance
Packaging Standards
Automotive
Mapping business
processes
Key Performance
Indicators
Activities issues
and Tasks to business
Revenue

Note
to template
user:
Management
Automotive
Vehicle Cost
Tree
Forecast Accuracy Vendor Print/Unit Time to Market
Cost of
Sold
Value Driver Tree
Goods
Automotive
2.0
CostBuild
of Goods Sold
Process
move
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portfolio life cycle
business process
areas
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COGS as % of Revenue
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Management
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portfolio
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sales plan
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retention
on which you wish to
Key Performance
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and Tasks
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Understand
focus;
Build
Design &
Service &
Design
Segment target size to actual Development
Change and ConfigurationAutomotive
Selling,
&
Capture
market General
and competitive
datamarketplace
delete note
Development
Dealer feedback
Perform portfolio
analysis
Management
Analyze
data
Administrative
focus on; delete other
Design (1 of 2)
Share
of customer
spend
Research &
Illustrative
mapping for
cost
of pricing
goods
sold
performance
gaps
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to actual
Update
portfolio
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SGA
as % of
Revenue
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Develop
vehicle
targets
and options
Development
Service
pages;
Plan production and service Customer focus ratings
Manage
Formulate market andsales
planportfolio life cycle
Time to market
of Goods Sold
Incentives per vehicle
Sell
Choose pagesCost
w/business
Change
and Configuration
Inventory
Build
Develop market anddelivery
sales plan and demand
Customer retention
Manage
program
Forecast sales
Management
Days Inventory Onhand Automotive
Customer satisfactionActivities and Tasks
Forecast accuracy
Build
on the CBV Learning
Captureand
Balance data
demand and resources
Dealer feedback
Selling, General &
Design
Service
Adherence to design goals
concept
user:
On-time delivery
other Note to template
Design
(1 of 2)
Center via Industry focus on; delete
Fixed Assets Analyze market and competitive
Manage data
inventory
Administrative
Target to actual pricing
and
Develop
vehicle targets and options
Refine
programand
details
planRevenue
SellRevenue
Fixed
Assets
Costs as percentage of revenue
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pages;
Production plan adherence
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market
and
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plan
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program
execution
Time to market
Build
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of Goods
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inbound
logistics
strategy
processes you
to Sold
Change
and
Configuration
Accuracy
and timeliness of
Report
with accuracy,
adequacy,
More Processes
available
delete this note
Finance
Downtime
Manage
Manage
Finance
Inventory
Manage Finance
Accounts
Payable
Manage
program performance
to targets
Manage program
Cost
of Goods Sold
information to make decisions
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logistics
and timeliness
Design
Days PayablesOutstanding
on the CBV Learning focus on; delete other
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Executeand
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logistics
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design
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data
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Determine
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attributes
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Manage containers
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Note
toCost
template
user:
ofAccounts
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Sold Receivable
Administrative
decision making
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and Configuration
Refine program
plan logistics performance
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Design
Build
Days
Receivables Outstanding
Choose
pages
w/business
Manufacturing cycle time
Management
Manage program
execution
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product
configuration
Approve finance and accounting
Number of audits
on the CBV Learning
Manage production
Accounts Payable
delete this note
General
&to
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processes
you
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Manage
program
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production
pages;Inventory
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Accounts Receivable
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delete this note
Develop product and processes
characteristics
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More Processes
available Engineer
change
Design components (parts
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logistics
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Compliance with negotiated terms
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&
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Develop
and evaluate
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and logisticsand
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manufacturingprocess
Develop
outbound
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credit
terms
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Percentage of disputed invoices
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tooling
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2
Accounts Receivable
targets
Plan outbound logistics
Accounts
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Business
Process
Maps; Finalize concepts and
Page 2
Percentage of overdue invoices
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processes
Execute outbound logistics Assess credit
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delete this note
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Measure
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Monitor invoice timeliness
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Monitor invoice accuracy
Design tooling
2004overdue
IBM Corporation
Collect
information
3
Accounts Payable
Page 3
Conduct collection
efforts
Accounts Receivable
Conduct strategic sourcing
Manage supplier
Select and evaluate supplier
3
Page 3
Illustrative mapping for revenue performance gaps Manage e-procurement
5
Manage purchase order
Page 5
Manage supplier discount
Activities and Tasks
Automotive
Selling,
General, Time
and
Administrative
Expense
Design
Failure Mode
and Effects Analysis
Total Supply Chain
Response
(DFMEA)
Time to Market
Total Delivery Costs (PFMEA)
Cost of
Goods Sold
Over, Cost/Time
Change
SupplyTime
Chain Effectiveness
Down
1.6 Manage
Supplier
Relationship
Process
1.7 Validate
Product and
Process
Mapping business issues

to business
processesto explore closing financial performance gaps
Business
processes
Copyright IBM Corporation

2003
Time to Market
Supplier Delivery On-time Performance
Late in
Number of Changes
Engineering Process
Vehicle Quality
Revenue
Customer Retention
Key
Performance
Selling, General and
Administrative
Expense Indicators
Vehicle Cost
On-time Delivery
1.5 Develop
of Changes in
Product Number
and
Product Life Cycle
Processes

Page 2
Drivers
Inventory
Turns
Process Value Driver Tree
Automotive
Process
2.3 Manage
Production
Time to Market
Operational
Order Fulfillment
Engineering Leadtime
Effectiveness
Product Availability
Capital Utilization
Accounts Payable
Cash Operating Cycle
Process
Days Payables Outstanding
Automotive
and Administrative
General,
Supplier DeliverySelling,
On-time
Performance
Expense
Total Supply Chain Response Time
Days Inventory Onhand
Indicators
Production
Plan
Adherence
Performance
Key
Drivers
Business Value / Strategic Alignment
Profitability / Growth
Automotive
Revenue

move the red ovals to
business process areas
on which you wish to
focus; delete note
Operational Drivers
Incentives
Automotive

Capital Efficiency
Vehicle Quality
Production ValidationCost
Testing
of Goods Sold
Support
High - complex to
implement and/or adopt
Advance Product Quality Performance
Packaging Standards
Production Validation Testing
Capital Efficiency

Support
Medium
Low - relatively simple to

implement and/or adopt
Based on the opportunitys ability to be implemented and/or adopted
Degree of Confidence / Sustainability
KPIs and related drivers

Interview
Data
on
Businessand
Strategies
and Value
Templates
Reference KPIs for each

process and sub-process
Roadmap
Used to align
KPIs withand
Roles, cascade to lower
Interdependencies
level scorecards, and
socialize design
Institute of Business Value
Legend:
Integrated Design & Foundation
General Accounting, AP, FA
Management Reporting & Treasury
Data Sourcing
High Level Implementation Roadmap
2005
Q4
ENHANCED INTEGRATED INTEGRATED

FINANCIAL FP&A AND FINANCE DATA
CONTROL CONSOLIDATIONMANAGEMENT
Q3
2006
Q1
Q2
Mobilize PMO
2007
Q3
Program Management
Integrated
Q4
a
Q1
Q2
a
2008
Q3
Q4
a
Q1
a
Q2
Q3
Q4
a
Target Architecture
Interim Architecture
Finance
1 Requirements
Pilot and Phased Implementation

Of
2MDM (Values and Hierarchies)
CDE 2
(Single Data Source) Design and Implementation (DMP)
Length of effort to
Phased
Implementation
4 forFrontier
all Data Sources be sized with DMP
Segment and FP&A
Multi
Dimensional
Data Mart
Design
3 Allocations
6Design
and Build
Planning Design and
PM&A Upgrade
3
Implementation
7Integrated
Migrate Segments to
Length of effort
Source from PM&Arequires sizing
of Accounts Length of effort to
Conversion
2 Chart
be sized with
Controllers, DMP
Eliminations,
and FP&A
3andConsolidation
Settlement Design
Hyperion HFM/Analytics
Design and
Implementation
8
5AP & FA Design and Implementation
BUSINESSMDM Implementation &

Integrated FP&A
Enhanced Reporting
PM&A
Accounting
Factory
Common Source
FUNCTIONALITY
Environment
And Access
Data Acquisition Design
& Common COA valuesof Truth
CBM Functional Scope
Reference Technology
Architecture
Business Case Model
Leading Practices and

External References
Australia Post
Australias Largest Retailer Forecasts across 5000 stores with SPSS + TM1
Predictive analytics pays off for Australia Post
The Business Pain
Cash Forecasting and Management across a

hugely dispersed retail branch network
Government agency uses IBMs SPSS software and TM1 software to improve agency payment forecasting.
Hamish Barwick (CIO)
24 October, 2012 13:47
Manual cash flow forecasts are a thing of the past for Australia Post with the
implementation of two software packages which crunch data to produce accurate daily,
monthly and annual forecasting reports.
Speaking at IBMs Information On Demand conference in Las Vegas, Australia Post
business analytics manager Armand Mizan told delegates that its manual forecasting took
weeks to produce and was not always accurate.
In addition, Australia Post staff had little visibility around movement of agency cash flows.
The company works as an agent on behalf of companies such as the Australian Tax Office
(ATO), telecommunications and utility providers. It receives payments for these companies
at 4500 retail outlets and online. These payments go through an Australia Post bank
account and are re-distributed back to the agency.
Lack of data scientists could derail big data projects: IBM[1]
In pictures: IBM Information On Demand day one[2]
According to Mizan, Australia Post processes $50 billion worth of agency payments per year.
To help the department overcome the problem of manual cash flow forecasting, it decided to implement IBMs SPSS predictive
analytics software and Cognos TM1 enterprise planning software.
We had a monthly cash flow model which was based on actual figures, he said.
This would then populate the daily cash flow through a translation. From that, the agency forecast model is produced through SPSS
and the results sent back out into TM1.
How It Was Solved
SPSS provides generated forecasts of cash

transactions by type, at daily level by store.
Cognos TM1 receives the SPSS forecast and

allows for detailed adjustment for known local
factors.
Value To The Customer
Large reduction in working capital requirements
Cash optimisation
Reductions in Costs
Increased accuracy in Forecasting
Streamlined internal financial reporting
Executive Dashboards and Management

reporting
In order to check and determine the accuracy of the information in SPSS, Australia Post took historical data from August to October
2011 and put it through the software to produce a forecast.
That forecast was compared to the actual data from 2011. We achieved an accuracy level of between 95 and 98 per cent using SPSS,
Mizan said.
Business outcomes
Australia Post now has fully integrated actuals and forecasted monthly cash flows for the next four years. The monthly and daily cash
flow models are also aligned.
There is also greater visibility of agency financial data, something which Mizan said the company did not have before.
Technical difficulties
However, Mizan admitted that the SPSS and TM1 project was not without its teething problems.
Lead business model innovation through a new discipline of

performance: Creating the future
III
OUTTHINK AND OUTMANEUVER

THE COMPETITION
New business model decisions
Business model innovation
and prototyping
Long term financial roadmaps
Value and risk drivers across
the entire value chain
MODEL
MODEL
MODEL
Internal
levers
External
opportunities
CFO
C-SUITE
MODEL
MODEL
KEY CHARACTERISTICS
Clearly understand
value and risk
drivers
52
Rigorously and
continuously realign
resources to new
opportunity
Use advanced analytics to

identify the right actions to
capitalize on market and
technology changes
Integrate data and

innovate across
multiple business
units
Create long term financial

roadmaps encompassing
business model
transformation
IBMs own transformation can serve as a model for clients

looking to grow and evolve
IBM transformation outcomes
Operating in over 170 countries with more than 430,000 employees,

IBM saw $104.5B revenue and $17.6B income in 2012
Created globally integrated Shared Services

with owners accountable for meeting productivity
goals
Cumulative Enterprise Productivity Savings
Drove continuous improvement through

structured approaches, shared GIE principles,
governance and across Shared Service
measurement of process maturity
2011-2015 ~$8B savings

2006-2010 ~$6B savings
Applied proven principles of Shared Services

transformation to all of IBMs spending
Shared Services
End-to-End Process Transformation
Integrated Operations
Sharing
partnering
Sharing
andand
partnering
Consistent world-wide processes, best

practices, standardization, governance
and performance discipline
53
Globally integrating
Globally integrating
Right skills, right place, right cost,

rationalized support functions,
radically simplified processes
Making things smarter
Instrumented, interconnected, growth

enablement, whole system optimization
IBMs transformation agenda using Analytics
Manage Risk
Operational Efficiency
Enterprise Risk Management Efficient service delivery through

and advisor to business units and standardization, automation and
centralization
senior management
Use Cases
Business Insight
Trusted Business Advisors
Use Cases
Use Cases
Country Financial Risk Scorecard
WW Spend
STAR
Business Partner Grey Market Analysis
Business Intelligence Dashboards
PRISM M&A Risk Management
Employee Expenses Monitoring &

Analysis
Strategic Planning Optimization
Critical Parts Management Tool
Workforce Analytics
Coverage Optimization
SO Cost and Risk Management
Labour Claiming Analytics
Services Backlog Run Out and Revenue

Analytics
Business Partner Optimization and
Opportunity Growth
Transformation for Quota and
Opportunity Alignment
IBMs commitment to Business Analytics is a catalyst behind its transformation

IBM Growth Initiatives
BAO Revenue
(including SW, HW and services)
Smarter
Planet
Growth
Markets
Business
Analytics
and
Optimization
10%
CAGR
Cloud and
Next
Generation
Data Center
2009
2015
Includes software,
hardware and services
Source: IBM Investor Relations, May 2010; $16B refers to cross-IBM revenue
including Software, Services and Systems.
New & Improved
Q2
Q3
IBM Delivers Performance Management
Improved!
Improved!
Management & Performance Reporting

Disclosure
Management
& Financial
Close
Planning
Analysis &
Forecasting
Analytic Data Management
Profitability
Modeling &
Optimization
Hierarchy Management
Scorecarding
& Strategy
Management
Sales
Performance
Management
Integration and Automation
Common Information & Technology Platform

Improved!
Improved!
NEW!
NEW!
Three imperatives guide todays most effective CFOs
Drive agility through

enterprise analytics
CFOs design integrated operating models and

processes that are the foundation of a globally
integrated enterprise that proactively adapts and
continually positions for the future.
Help the business make

better decisions by
anticipating the future
New analytics and data sources enable CFOs to

offer predictive and prescriptive insights and drive
a forward-looking culture that permeates the
organization and better shape the future.
Lead business model

innovation through a new
discipline of performance
CFOs are guiding the evolution of the organizations

value creation engine with profit opportunities to
create the future.
In order to drive change one must first understand the starting point
IBM Finance Current Environment 2009
Most Common, global financial applications and

data with high volume reporting
Powerful set of data and reporting capabilities
which are not being leveraged for predictive
analytics
Limited knowledge of new tools and
applications across functions
Minimal integration between financial and nonfincial data to optimize decision making
Typical approach to analytics involve manual
forecasting and extensive use of excel
worksheets
IBM has successfully developed, incubated, and deployed

analytics-based initiatives across several areas
Focus Areas
Sales
Management
Risk
Management
Development
HR Resource
Management
Planning &
Forecasting
6.8
2.3
(0.5)
(0.7)
2.0
12.3
GF A/R + Others
Buyback
FCF (Ops)
13%
2.9
1.4
(1.5)
6.2
(0.6)
0.0
(0.6)
(0.1) (1.5)
3.5
0.3
21.7
23%
0.3
3.3
(2.8)
0.2
(3.0)
4.4
17.5
37%
0.8
2.8
2.9
14.9
42%
1.0
12.9
15
Acquisition
4.3
2.7
13.7
IBM Cash
20
(4.1)
1.0
(5.1)
(0.1) (1.5)
0.0
(0.1)
(0.7)
(2.0)
(1.9)
(0.2) 12.0
0.0
(1.9)
(0.7)
(0.0) (2.0)
0.0
(0.3)
$B
Dividend
Acquisition
Dividend
(0.7)
GF A/R + Others
2.6
Buyback
FCF (Ops)
GF A/R + Others
Acquisition
7.6
Available GCF
Buyback
FCF (Ops)
Core Debt
9.6
Net Income
12.3
Total Equity 13.5
Core Debt to Cap 49%
CP
0.5
25
Dividend
GF A/R + Others
Acquisition
Dividend
Buyback
FCF (Ops)
X </= $4,778
67%
Mean = $4,694M
2007 System z Revenue Probability Distribution

X </= $4,386
5%
2.5
10.0
10.0
3Q'09
4Q'09
10
4Q'08
0
2Q'05 3Q'05 4Q'05
1Q'06
2Q'06 3Q'06 4Q'06
1Q'07
2Q'07 3Q'07 4Q'07
1Q'08
2Q'08 3Q'08 4Q'08
40
ROA May 31 -$3.0B
51%
44%
28%
15%
Debt Maturity Profile by Quarter next 5 years

3,500
Te rm D e bt M aturity
P rofile a s of M ay'0 9
2,900
3,000
2,000
35
40%
30%
20%
10%
0%
1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09
1 ,470
1,500
50%
Term Debt
10
1 ,242
1,042
1,000 1,005
1,000
5 10
500
321
500
6,000
21
64
F e b '1 0
M a r'1 0
A p r'1 0
M a y'1 0
J u n '1 0
138
3Q10 4Q1 0 1 Q1 1 2Q 11 3Q11 4Q 11 1Q12 2Q 12 3 Q1 2 4 Q1 2 1Q13 2Q 13 3Q13 4Q 13 1 Q1 4 2 Q1 4 3 Q1 4 4Q 14 1Q15 2Q 15
5,000
4,000
$Million
Bank Debt
Average % (CP+Bank Debt):~25%

% Of Debt In CP & Bank Debt
25
20
15
CP Plus Bank Debt / Total Debt (%)
CP
30
USD
USD IGC
EUR
CHF
3,000
JPY
2,000
1,000
C u rrenc y
U SD
U SD I GC
EU R
JP Y
CHF
Tota l
2009
2010
20 09
65 1
4 ,531
0
0
0
5 ,182
2010
33
0
1,3 84
5 10
0
1,9 27
2011
201 1
1, 67 5
0
83 0
0
32 1
2, 82 6
2012
2012
1 ,400
1 ,500
0
0
0
2 ,900
2013
2 01 3
2,003
0
0
510
0
2,513
2014
20 14
0
64
1 ,038
204
0
1 ,306
2015
2 015
0
0
0
0
1 38
1 38
2016
201 6
0
0
0
0
0
0
2017
20 17
3 ,0 00
0
0
0
0
3 ,0 00
2018
2 01 8
1,60 0
0
0
0
0
1,60 0
2019
20 19
7 50
0
0
0
0
7 50
2020
2 020
0
0
0
0
0
0
2021
20 21
0
0
0
0
0
0
2022
2022
0
0
0
0
0
0
20 23
2 02 3
0
0
0
0
0
0
2024
2024
0
0
0
0
0
0
LIQUIDITYANALYSIS / CASH - DEBT< 3 MONTHS
0.5
$40
($B)
Interest Expense as a % (QoQ)
Total
15 ,093
6 ,095
3 ,252
1 ,225
45 8
26 ,123
4%
3%
$15
US
TC + IIG
Others Countries
Total WWCash
7.3
1.5
2.0
10.8
Actual
2Q07 3Q07
7.0
1.2
2.0
10.2
10.6
1.0
2.3
13.8
4Q07
12.9
0.6
2.7
16.1
June 4, 2009
1Q08
Actual
2Q08
8.7
0.7
2.7
6.2
1.1
2.6
12.0
9.8
3Q08
6.8
0.1
2.9
9.8
Actual
4Q08
Actual
1Q09
8.0
1.7
3.2
8.2
1.1
2.9
12.9
12.3
2Q09
Projected
3Q09 4Q09
7.3
1.6
3.1
5.3
1.7
3.0
6.0
1.0
3.0
12.0
10.0
10.0
Debt < 3 Months

US
TC + IIG
Others Countries
$10
1Q07
Cash
5%
3M Libor (QoQ)
$25
$20
Percentage (%)
Total Debt ($B)
>2024
> 20 24
3,9 82
0
0
0
0
3,9 82
6%
Total Debt
$35
$30
Total WWDebt
5.7
0.0
2.7
8.3
4.9
0.0
2.2
7.1
2.9
2.0
2.4
3.9
2.8
2.3
2.7
3.1
4.6
0.4
3.4
2.3
9.1
2.9
2.6
2.2
1.4
2.0
1.2
0.2
1.8
1.7
0.8
4.8
3.4
0.3
2.2
0.3
1.6
1.5
1.6
7.3
9.0
7.3
7.7
5.2
3.2
7.2
US
TC + IIG
1.6
1.5
2.1
1.2
7.6
(1.0)
8.9
(2.2)
6.0
(2.4)
1.6
0.8
3.8
(2.5)
6.6
(0.3)
7.0
0.9
6.5
(3.2)
1.9
1.4
3.8
0.7
Others Countries
(0.6)
(0.2)
(0.2)
0.4
(0.6)
0.2
0.7
1.4
1.2
1.5
1.5
1.4
2.5
3.1
6.5
7.1
2.9
2.6
2.1
7.7
9.1
4.8
5.2
4.8
4.1
5.9
2%
4.2
4.45
4.7
4.95
Liquidity< 3 Months
$5
5.2
$0
1%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Revenue ($B)
Consolidating and
analyzing data
from disparate
sources to
address
compliance
issues and
pinpoint risks
Pension Equity Impact
1Q'09
60%
Applying science
to the art of
opportunity
identification,
seller deployment
and prospecting
2Q'09
2,500
Debt ($B)
Values in 10^ -3
1Q'05
1.5
1Q'09
Simulating future
performance of
development
portfolio &
investment mix
2001
Using matching
engine to analyze
unstructured job
and resume
information to
identify best staff
for open positions
on projects
2002
2003
2004
2005
2006
2007
2008
2009
World wide
Predicting and
optimizing
performance by
analyzing
productivity and
pipeline
Formula for Success:

Bold Vision + Rigorous Analytics + Business Value Focus + Perseverance = Impact!
How IBM Finance is leveraging on Smarter Analytics to the critical

processes?
Planning, Analysis and

Forecasting Star &
WorldWide spend Application
Backlog runout
Enterprise Risk Management

Performance Reporting and
Scorecard Treasury
Reporting
WorldWide Spend Application

Analytics Tool:
IBM Cognos TM1
BENEFITS
SOLUTION
Increased visibility across
geographies and brands
allowed for cost control
optimizations
CHALLENGE
Different geographies and

brands used their own data
sources and processes supporting
expense management
No standards meant systems
were not tied to key CHQ
management system (WWIE)
Delays in accessing information
due to long load times of Cubes
Implemented consistent data

and metadata standards
Common processes increase

career options of financial
analysts across IBM
Developed a flexible / modern

SOA architecture allowing for
easy expansion across
geographies
Single application to support

common set of skills required to
use and maintain
Single worldwide application

for Spend Analytics and tracking
on one TM1 Cube across all
geographies with 3,000+ current
users, 500+ concurrent active
system users
Reduced cube load times by

80%
Reduced calculation times
from 45 minutes to near real
time
Lower third party licensing
costs
STAR (Statistical Tracking & Assessment of Revenue)

Consistent metric-driven model for performance estimation
STAR Model:
METHODOLOGY
Opportunity data from
EIW (i.e., Siebel)
Each opportunity detail is
modeled
Revenue data to
calibrate parameters
Quarterly transactional
revenue
Predict, based on
history, the Future
Yield due to
opportunities not yet
in the pipeline
Compute Probability of
Winning and Expected
Yield of each opportunity
using detailed EIW data
wk1 wk2 wk3 wk4 wk5 wk6
Consistent metric-based method

(statistical model based on historical data)
Load data
Provides value of
closed deals
ready to ship
Link tracking measures to performance

Accurate in early weeks, low volatility
over weeks
Orders
Re-focus human effort from estimating

outcomes to decision-support activities
wk 13
Today
End of Quarter
LEADSONLY
PILLAR
LEADSAND-LOAD
PILLAR
LOADONLY
PILLAR
WEEKLY PILLAR WEIGHTING MODEL

Computes historically optimal weights for
each pillar, by week, geo/region, and brand
FINAL OPTIMIZED ASSESSMENT
an optimal weighted average of the four pillars
for each geo/region, and brand
I-view
STAR1
STAR2
Delta to Actual
IBM Research
Assessment Precision Comparison

Firm
LOADONLY
PILLAR
Wk 1
Wk 2
Wk 3
Wk 4
Wk 5
Wk 6
Wk 7
Wk 8
Wk 9
Wk 10 Wk 11 Wk 12 Wk 13
Application: BaRT Backlog Runout

Tracking billions of dollars in revenue commitments
BENEFITS
SOLUTION
Single global interface for
tracking services revenue
CHALLENGE
Insight gained with a discrete
view of revenue for each deal
under contract as well as a
portfolio of contracts.
Limits in Essbase meant using
manual spreadsheets compiled at
several levels of consolidation to
get answers
Poor visibility into when revenue
should be forecast to be
recognized
Inability to look at past backlog
and drill to details such as contract,
country or division to perform
meaningful analysis
Automation of the backlog to

track the revenue commitment
Automates generating answers

while allowing business users to
intervene and perform analysis
Enables constant view through
trusted data source
Reduced need for independent
spreadsheets and reducing the
risk of data loss
Lower maintenance costs with
increased reliability
IBM Country Financial Risk Scorecard

Smarter Near Real-time Integrated Risk Management
Analytics Tool:
Cognos BI, SPSS,
OpenPages
IBM
BENEFITS
SOLUTION
CHALLENGE
Vast amounts, but fragmented

data provides little opportunity
for consistent analysis and
proactive identification of
financial country risks
Lack of automated solution
requires manual aggregation and
analysis
Limited visibility to external risk
creates a blind spot to emerging
risks
Created Scorecard that

automated information integration
and financial risk monitoring KRIs
Business insights into risk
exposures
Risk-based predictive analytics
by:
- Country
- Trends
Enable agile decision making

to seize opportunities and
mitigate impact of unfavorable
risk events. Centralized,
consistent, and automated
approach to measure and monitor
financial risks
Empowering chief financial
officers (CFOs) to be value
integrators
Increase productivity of finance
leaders across the enterprise,
encourage broader global
collaboration, and elevate skill
levels. Reduce time to gather and
analyze data from weeks to
hours
China Financial Dashboard Summary Report (Extract)
Worldwide IBM Country Risk Heat Map 1Q 2012
Enterprise Risk Heat Map 1Q 2012
Financial Performance Risk Indicators

FY11
YtY
$/Share
CAGR
11-15
$1,105
7%
$5,577
18%
$8,348
15%
17%
(0pts)
20%
1pts
21%
3pts
$0
$55
$3
$0
$0
$3,652
18%
$882
11%
$4,414
21%
$6,871
17%
18%
1pts
18%
(0pts)
20%
2pts
22%
3pts
$0
$22
$0
$0
$0
IBM
$560
14%
$118
1%
$613
10%
$790
9%
Share
21%
1pts
19%
(1pts)
22%
1pts
24%
3pts
$0
$8
$2
$0
$0
$0
Share
IBM
$/Share
$4,712
16%
18%
1pts
Share
GtG/GtH
HKG
GtG/GtH
TWN
IBM
$501
6%
$105
(14%)
$550
10%
$687
8%
Share
17%
0pts
14%
(3pts)
18%
1pts
18%
2pts
$9
$0
$23
$17
$0
$0
$0
GtG/GtH
China IBM Country Risk Score

IBM Country Risk Score
Economic Indicators
Liquidity Factors
Risk/Reward
Shareholder Value
Actual
Prediction
Q4-2011
Q1-2012
Q2-2012
Q3-2012
Q4-2012
Low
Low
Low
Low
Low
High
High
High
High
High
Medium Low Medium Low Medium Low Medium Low Medium Low
Lowest Medium Low
Low
Low
Low
Liquidity - Intercompany Aging
FY15
$/Share
YtY
GtG/GtH
PRC
FY12
YtY
IBM
GCG
1Q'12
$/Share
ERM Risks: Operational

1
2
3
4
5
6
7
8
9
10
11
12
13
14
Risk Category
Business Partner
Cyber Risk
Talent & Leadership
Employee Relations
Annuity Base
Regulatory Compliance
Integrity & Compliance
Physical Security
Reputation/Brand Value
Business Transformation/HRMS
Scaling Solutions
Service Delivery
Legal Structure
Real Estate
Revenue Mix Track
Status
Long Term SingingsTrack
100%
500
90%
28%
28%
29%
31%
410
450
80%
400
70%
11%
9%
12%
350
15%
60%
300
50%
221
250
40%
200
30%
59%
60%
59%
53%
150
20%
100
70
100
10%
50
0%
FY2011
1Q 2012
FY2012
FY2015
FY 2011
1Q 2012
FY 2012
FY 2015
STG SWG Services
CF Credit Concentration
Key Drivers' Impact to China Growth
5,000
4,000
3,000
2,000
1,000
-
30%
199
425
3,028 51
49
782
271
483
1,575
3,660
HE System
PRC YTY
15%
3,137
2,560
FY 1Q
FY
2011 2012 2012
Rest
Dist'd SW
25%
2,016 20%
2,085
2,398
666
400
473
FY 1Q
FY
2011 2012 2012
FY 1Q
FY
2011 2012 2012
10%
5%
0%
PRC w/o Top banks&Telco

YTY
GeoE
Metro
Automating IBM Treasury Reporting
Analytics Tool:
IBM Cognos FSR
BENEFITS
SOLUTION
CHALLENGE
IBM Treasury needed a solution

to automate the collection and
aggregation of daily, updated
cash/debt data and FX rates
Such solution would allow
Treasury Management to look at its
cash positions around the globe
and see near real-time data
quickly, easily and accurately
Using IBM Cognos FSR, the

Treasury Department was able
to automate each step in the
cash management process,
which allowed it to:
Cut the time and effort
needed to collect, consolidate
and review monthly reports and
forecasts
Greatly reduce the risk of
errors in this critical Finance
function
IBM Treasury accomplished its

key objective of increasing
productivity by eliminating many
manual and error-prone
processes
The collection, aggregation,
review and validation of the
quarterly cash and debt data and
reports were automated, while
controls and visibility over the
entire process have been
optimized
Implementation and training

were quick since FSR leverages
the familiar user interfaces of
Microsoft Excel and Microsoft
Word
COP
Resource shifts aligned with COP result in increased productivity while

shifts misaligned with COP resulted in decreased productivity
Illustrative example
COP
Coverage Optimization with Profitability (COP) add-cut-maintain

analysis is based on profit margin, revenue growth, and future revenue
opportunity
High Revenue Growth
Low Revenue Growth
1. High Opportunity Headroom
2. Low Opportunity
Headroom
3. High Opportunity
Headroom
4. Low Opportunity
Headroom
A. High
Add
Add
Add
Maintain
B. Medium
Add
Maintain
Maintain
Maintain
Maintain
Cut
Cut
Cut
Cut
Cut
Cut
Cut
Profit Margin
C. Low
D. Very low
Rev CAGR
Brand X, Geo Y
Add Clients (8 299)
27%
Maintain Clients (3 390)
11%
Cut Clients(19 054)
64%
19%
31%
32%
30%
27%
28%
26%
42%
40%
44%
Total
sellers
(FTE)
Quota
sellers
(FTE)
Technical
sellers
(FTE)
78%
62%
30%
4%
32%
6%
5%
#
Clients
Revenue
-10%
Profit
OnTARGET
OnTARGET is a prospecting tool helping sellers and managers find

most promising opportunities
Before
Yellow pages approach to prospecting
Sellers lacked tools that provided quality
prospects and information based on past and
likely future purchases
Disconnected data stored in heads and on hard
drives
Managers lacked an automated way to identify
other products clients may be interested in (how
to identify cross-selling opportunities)
After
References a large universe of existing clients
and potential new clients
Incorporates relevant data that may require
multiple existing tools to access
Includes analytical models to help identify the
best sales opportunities
Integrates all such data for each company under
a single user interface designed by end users to
facilitate easy navigation
Source: Lawrence et al., Analytics-driven solutions for customer targeting and sales-force allocation, IBM SYSTEMS JOURNAL, VOL 46, NO 4, 2007
We are aggressively investing to enable clients and our company to drive

innovation through essential expertise
2012
$16B in Acquisitions Since 2005
Social Analytics/Consumer Insight
10,000+ Technical Professionals
Workload Optimized Systems
7,500+ Dedicated Consultants

Advanced Case Management
Largest Math Department in Private Industry

Content Analytics
27,000+ Business Partner Certifications

8 Analytics Solutions Centers
Decision Management
Optimized hardware and software offerings
Stream Computing
100 analytics-based research assets;

almost 300 researchers
Significant marketing investment
worldwide through Smarter Planet
Pervasive Content
pureScale
pureXML
Deep Compression
Developer Productivity
Autonomic Operations
2005
Innovation Builds on Hard Won Advantages for Clients

IBM stands out versus alternatives
"IBM's solutions were reported to be used for a broader set of CPM
processes than were SAP's (and somewhat more than Oracle's as well).
IBM also had a higher overall satisfaction rating than either Oracle or
SAP"
Gartner User Survey Analysis: Customers Rate Their CPM Vendors, 2012.
Published: June 4, 2013. Analysts: Christopher Iervolino, John E. Van Decker
This platform approach (of IBM) stands in contrast to the traditional

mega-vendor approach to CPM, which involves offering a variety of
software applications that challenge end users to obtain value.
Nucleus Research Note: Technology Value Matrix First Half 2013, Corporate Performance Management,
Document N93 Published: June 2013
Cognos TM1 finished #1 in Agility, Self-Service, and Project Length in one

or more of following vendor groups IT Giants, Performance Management,
OLAP Analysis, and BI Giants
The Customer Verdict, Barc Survey 12
Introducing IBM Cognos TM1 V10.2

IBM Cognos TM1 V10.2 delivers powerful modeling, flexible workflow and contribution, and
deep and fast analytics that meets your performance management challenges across your
enterprise planning, analysis, forecasting, profitability modeling, scorecarding and performance
reporting processes in one easy to design, deploy, and run package on premise or via cloud.
Whats New?
Performance
Measurement
Engagement
Deployment
Enable faster insight

and sharper execution
through dramatic
performance gains
made in query
processing, LAN and
web performance.
Integrate metrics and

scorecards into the
high participation
planning, forecasting,
and profitability
analysis to drive
closed-loop
performance
management
processes.
Engage the entire

workforce from the
regular management
contributor to the most
sophisticated business
analysts with the tools
and software profiles
they require,
eliminating delay,
wasted effort, and
offline-shadow
systems.
Drive performance
management through
every part of the
organization whether
starting in finance or
operations with one
easy to design, deploy,
and run package on
premise or via cloud.
Looking Ahead
Q4
2014
Project Concert Enhances PM with Social, Mobile, and Enhanced Task

Management
2014
Disclosure
Management
& Financial
Close
Planning
Analysis &
Forecasting
Q4
Q4
Profitability
Modeling &
Optimization
Q4
Scorecarding
& Strategy
Management
2014
Sales
Performance
Management
Common Information & Technology Platform

Drive insight and agility by linking across domains
IBM delivers one comprehensive, analytic and planning platform

Workforce
Marketing
Sales
Incentive
Compensation
Quota Plan
Territories
Sales Channels
Sales dashboard
Sales
Performance
Management
Campaign
scorecard
Promotion plan
Customer /
Product
profitability
Revenue plan
Operations
Ops KPIs
S&Op plan
Capacity &
Inventory plan
Product
allocation
New products
Operational
Performance
Management
Workforce KPIs
Headcount plan
Salary & comp
Staffing plan
Training &
Development
Financial
Performance
Management
Finance
Long-term plan
CapEx &
Working capital
Cash flow plan
EPS / DCF
projections
Risk Reporting
Disclosure
Management &
Financial Close
2013
IBM
Corporation
2013
IBM
Corporation
Smarter Outcomes delivered to peer group

UST Global
Customer /
Sales
Customer
Relationship
Dashboards
Stage wise Pipeline

tracking and
predicted closure
TCS
Finance
Strategic Financial
Operational
Planning
Patni
Cash Flows, P&L

Management
Wipro
Risk
Reducing cost of
Compliance
KPMG
IBM
Managing Project
Delivery Operational
Risk
Detailed Account
and Large Deal
Planning and
Analytics
Fact based sales

review process
Facilities,
Procurement and
Vendor Performance
Financial Close,
Consolidate and
Report
Fraudulent Claims
Management
IT Governance
Sales force
Productivity
Deloitte
Predictive
forecasting and
monitoring to
improve DSO
Wipro
Enterprise Policy
Compliance
Management
UST Global
Delivery
Customer, Program,
Project Profitability
Resource Allocation
and Utilization
Efficiency
IBM
Project Quality,
Time and Cost
Monitoring and
Analysis
Project Quality
Metrics Analysis
Operational Costs
Management
IBM
HR
Hiring Chain
Visibility, Efficiency
& Effectiveness
Learning Costs,
Efficiency and
Effectiveness
Early Warning
System for Top
Talent and All
Attrition
Succession Pipeline
Planning
Headcount,
Compensation and
Benefits Planning
Cognos Analytic Applications

Common Decision-Making Model
Unified Platform
ERP Agnostic
Database Agnostic
Analytics Drill Through
Packaged Reporting & Analysis
Business Areas
Whats Included?
Embedded Data Warehouse
Over 43,000 Objects including

250+ Dimensions
850+ Metrics
230+ Defined Calculations
1000+ Report Configurations
Adaptive Framework
Unlimited Extensions
Delivered ERP extraction
Unlimited Data Sources
Financial Analytics
Ledger
Payables
Receivables
Cash Management
Customer/Vendor Risk
Workforce Analytics
Talent Development
Talent Management
Talent Retention
Workforce Strength
Compensation
Sales Analytics
Pipeline Performance
Sales force Performance
Sales Segmentation
Customer Relations
Pricing and Program Analytics
Procurement Analytics
Spend Analysis
Vendor Analysis
Contract Management
Operational Efficiency
Best-in-Class Domain Content Delivered On-Demand Our

Play Store
Analytics Zone
Business Accelerator Applications

Leveraging:
Predictive Analytics made
business-friendly and
"conversational" through easyto-use data discovery platform
IBM's partner network to deliver
horizontal & vertical domainarea best practices
Rich, interactive & innovative
visualization via Extensible
Visualization
Have on-demand access to Business

Accelerator templates for areas like:
Sales pipeline modeling

Marketing & lead-generation
Resource tracking and allocation
Expertise locator
Incentive compensation modeling
<Name Here>
<Date>
A Glimpse of our Roadmap
Beyond 2013
Consumable BI and analytics starts with a conversational experience
Beyond 2013
Making analytics consumable
Complex made easy through simple
business terms and natural language
Automatically
show most
interesting
view of data
based on
underlying
smarts
Contextually aware and

easy to share
Surface hidden
answers leading
a user to more
questions
Easy access to
data with
dynamic access
to different
analytic tools
IBM brings the deepest experience and broadest set of capabilities to

guide you on this journey
Unrivaled expertise
and capabilities
More than 120,000 consultants
based in over 170 countries
Deep expertise in 17 industries and
across functions like finance, HR,
supply chain, and IT services
Three-tier delivery model
spanning on-site, globally integrated
capabilities and centers of
competency to meet shifting client
needs around the world
Robust business process sourcing
including marketing, finance, human
resources, procurement and supply
chain
Unmatched software portfolio
enhanced with $17B in acquisitions
since 2005
Proven transformation
success
Breakthrough research
and innovation
Leader rankings in Business

Consulting, Strategy Consulting,
Finance, Software and others as
assessed by Gartner, Forrester, IDC
and 13 other analyst firms from 2011
to 2013
A leader in technology for over 100

years with Nobel Prize-winning
innovation
Predictable and compelling business

outcomes delivered through
thousands of engagements around
the world
Analytics Solution Centers

delivering new capabilities at the
intersection of mobile, social,
analytics and cloud
Delivered $8 billion in productivity

gains over the last ten years of IBMs
own transformation, driving efficiency
and fueling our growth strategy
Award-winning thought leadership

and insight from IBM Institute for
Business Value, developed based
on face-to-face interviews with
thousands of finance and C-suite
executives
Assessment services and

accelerators to jumpstart and
expedite business value
First-of-a-kind breakthrough
innovations including IBM Watson
Which of the outcomes are on your roadmap?
1
2
3
4
Customers
Grow, retain and
satisfy customers
Finance
Transform financial
processes
Operations
Increase operational
efficiency
Risk
Manage risk, fraud &
regulatory compliance
Examples:
Improve Sales force productivity
Track and Predict Stage wise Pipeline
progression and conversion
Large Account Planning and Monitoring
Enabling Rolling plan, forecasting and budgeting
Profitability per employee (Direct and Variable
costs)
Delivering real-time dashboards on Cash flow,
Expenses
Transform the entire bid to sign-off cycle
Manage project profitability at a granular level
Handle fraud in travel expenses and claims
Making risk-aware decisions on bids
Managing financial and operational risks
Reducing the cost of compliance
How can we help you achieve your objectives?
Next steps
Develop a
roadmap using
Benchmarking &
Analytical Apps
Meet an expert
by taking part in a
Scoping Session
Go deep with a
Solution Briefing
Focus on
innovation at
a peer to peer
briefing with an
IBM Finance
Ambassador
BACKUP
Growth
and Performance
(GAP)
Path
to Finance
Transformation
IBM Internal Example: Growth and Performance Modeling (GAP)

provides an analytics system to performance by modeling
relationship between sales capacity and revenue.
CRITICAL NEEDS
Better visibility into returns
expected from resource
investment and whether
investments are sufficient to
deliver the business plan
A robust view of productivity
and opportunities to improve
A comprehensive, yet easy to
grasp, tool to support F&P and
facilitate decision making
GAP RESOURCE CAPACITY MODEL

Enables analysis and modeling of
historical productivity
Test/simulates viability of sales
plans/targets and hiring plans/targets
relative to different assumptions (e.g.
productivity improvements).
Provides the ability to:
Determine the optimal size of salesforce
Determine best deployment across various
regions
Make accurate financial targets and determine
the gap to target
Get a true picture of intrinsic salesforce
productivity in a region/brand
Run scenarios to assess optimal actions needed
to make targets (e.g. salesforce actions,
expense reallocations or productivity
improvements )
Resource Planning
How many incremental
sellers are needed in 2009 to
deliver x% revenue growth in
2010?
Performance Management
Which Brands / Regions /
Units have delivered returns
in proportion to investments?
Plan Scenarios
How much revenue can I
generate with the current
salesforce?
Unilever drives enterprise agility
CHALLENGE
Objective
Achieve cost efficiencies and build platform for revenue
growth with focus on brand called One-Unilever
Approach
SOLUTION
Simplified its complex finance organization across
24 countries and 18 ERP systems
Implemented standardized finance processes and
innovative technology
Leveraging asset-based process models and global
delivery capabilities
Results
RESULTS
Integrated the company and created a more flexible
operating and financial model
Greater efficiency and operational savings contributing
to 700M annual savings for the company
The successful partnership

between IBM and Unilever
Europe, along with an
ambitious transformation
agenda, will continue delivering
significant and sustainable
benefits for Unilever Europe.
Christian Kaufmann
Vice President, Global Finance Services
Unilever
Unilever: Global consumer goods company

including foods, beverages, cleaning agents
and personal care products with 51+ billion
euro in 2012 revenues.
Operational analytics
IBM solutions are

driving the next wave of
efficiency and growth
Asset
management
Threat and
fraud
detection
Supply chain
optimization
Sales
performance
management
Drive new insight and agility
Customers
Operations
Finance
Risk
Strategy-aligned organization
Marketing
Campaign
scorecard
Promotion plan
Customer and
product
profitability
Revenue plan
Sales
Sales dashboard
Incentive
Compensation
Quota Plan
Territories
Sales Channels
Operations
Sales and
operations
planning
Capacity plan
Inventory plan
Product allocation
New product plan
Workforce
Workforce
scorecard
Headcount plan
Salary and
compensation
Staffing plan
Training and
development
Finance
Long-term plan
Capex and
working capital
Cash-flow plan
Earnings per
share/discounted
cash flow
projections
Risk reporting

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Path to Finance Transformation

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