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2013 IBM Corporation

Path to Finance Transformation

1.State of Play & New

Pressures Faced

2.Reshaping the role of

finance

Agenda

3.Success Stories

4.Where to Start ?

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Global businesses are striving to

engage the empowered

2

and connect seamlesslywith their ecosystem

customer

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Combined with forces that are changing how welive, work & play

Pervasiveconnectivity

Big data

Social

Analytics

Mobile Cloud

Transformation forces

We are here

Sensorsand devices

Socialmedia

VoIP

Enterprisedata

2013 2015

Percentageof uncertaindata

Making data the new oil

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Analytics Market Trends

Application-Centered Today Analytics-Centered Tomorrow

Transformation

Moving to a New Paradigm

A

pplication-Centered Today Analytics-Centered Tomorrow

Transformation

Moving to a New Paradigm

The impact of the transformational shift: (1) Analytics becomes central & pervasive(2) Data fuels business outcomes

All Data

Data

about

Things

Data

about

People

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

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Technology is the single most importantexternal force shaping the organizations future

CEO Studies 20042013

2004 2006 2008 2010 2012 2013

Technology factors

Market factorsMacro-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]

Ins ights from the

2013 IBM Glob al C-sui te Study

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Shift from managing performance to enabling performance

+

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Warehouses(Relational & OLAP)

Transaction Systems Flat, Legacyor Modern

ExternalSources

How are we doing? Why?What should

we be doing?

How we are actually making decisions

12

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CFOs Want to Do Better in Five Key Areas

Ins ights from the

2013 IBM Glob al C-sui te Study

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15

Enabling performance not managing it

Source: 2010 IBM Global CFO study

Automate production of metrics

Drive common planning

and corporate and

management reporting Advance analytics

Drive data and process standardsManage Risk

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Performance enablingorganization

Market

Empowered business teams

Business team

CBA

From performance management to performance enabling

Functions

Market

Performance managementorganization

InformationCBA

Information

Decisions A

ccountable L

eadership

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+

I

II

III

While timeless responsibilities remain, Finance leaders areredefining imperatives and how they approach them

19

Protect enterprise viabilitythrough careful cash andcapital management

Leverage trustedinformation to understandthe state of the business

Create effective andefficient financialoperations

1

2

3

Drive agility throughenterprise integration

Help the business makebetter decisions byanticipating the future

Lead business modelinnovation through a newdiscipline of performance

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Drive agility through enterprise integration:

Weave analyt ics into

the fabric of the

enterprise

Streamline and

autom ate analyt ics

Optim ize analyt ics,

execut ing in

i ts ideal locat ion

Work f rom data that

provides a single

vers ion of the t ruth

Cont inual ly move

talent to highest value

act ivi t ies

BACK OFFICE FRONT OFFICEAGENT OFINTEGRATION

Finance

IT

HR

Procurementsourcing

Customerservice, casemanagement

Sales

Marketingpromotions

Cross-channelcommerce,fulfillment

CFO

I

KEY CHARACTERISTICS

Finance

IT

HR

Procurementsourcing


Sales

Marketingpromotions


CFO

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Becker Underwood transformed its planning andperformance management

Challenge

Corporate expansion through acquisitions and organic

growth resulted in lack of visibility and consistency.

Solution

Implemented planning to achieve quick, high-impactresults focused on sales and order/refresh process

Incorporated customer and product-level plans intoa 12-month rolling forecast for greater visibility

Results

Resolved supply chain issues resulting in 50 percentdecrease over three years

Incorporated order data into the forecast process andincreased accuracy by up to 15 percent

Better access to information across the organizationhas led to better customer service and shorter lead times

Becker Underwood producesspecialty bio-agronomic andcolorant products. Foundedin 1982 and headquarteredin Ames, Iowa, thecompanys annual revenuesare more than $240 million.

CHALLENGE

SOLUTION

CHALLENGE RESULTS

21

I

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Zurich Insurance implements sales performance management tostreamline its agency management & compensation

Challenge

Previous systems no support for multiple channels andindvidual country requirements

Data models not consistent on a global basis Needed a consistent application of agency incentives

Solution

Flexibility for countries & channels

Extensible global data model

Reuse of a consistent framework of tables/reports/calculationsthat can be re-used across each country roll-out

Indonesia: deployed for 2 ChannelsAgency and BancAssurance. 3500 payees initially. Total project from scoping toGo-live 6 months

Singapore: 2 ChannelsAgency and FinancialAnalysts/Brokers.

Zurich Insurance selectedICM(formerly Varicent) in late2011.

CHALLENGE

SOLUTION

RESULTS

23

I

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Help the business make better decisions by anticipating the future:

Cons istent ly apply analyt ical

r igor to new and emerging

data sources

Integrate f inancial and

operat ional informat ion

to create insight

Remain ahead of new,

emerging comp l iance

requirements

KEY CHARACTERISTICS

ACTIONABLE INSIGHT

Opportunities Customer needs

Customer behaviors

Risk factors

Competitive threats

Apply predict ive analyt ics to f ind

anomal ies, opt imize decis ions and

business processes, and del iver

foresight to the business.

II

Point of ImpactOperating Plan

Execution

Finance

IT

HR

Procurementsourcing


Sales

Marketingpromotions


Foresight

PredictiveDemand

Planning/Forecasting

Product &Marketing

Propensity tobuy

Fraud & RiskAnalytics

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Anticipate the future: Predictive & Financial Analytics

Example outcomes:

The solution for treasury cash flow was combined withdaily 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

Australia Posts objective was to forecast

its daily cash flows in order to maximiseinvestment returns

II

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28

Lead business model innovation through a new disciplineof performance: Creating the future

III

C-SUITECFO

OUTTHINK AND OUTMANEUVERTHE COMPETITION New business model decisions

Business model innovation

and prototyping Long term financial roadmaps

Value and risk drivers across

the entire value chain

Externalopportunities

Internallevers

MODEL

MODEL

MODEL

MODEL

MODEL

Clearly und erstand

value and r isk

dr ivers

Rigorously and

cont inuou sly realign

resources to new

oppor tuni ty

Use advanced analyt ics to

ident i fy the r ight act ions to

capital ize on m arket and

technology changes

KEY CHARACTERISTICS

Create long term financial

roadmaps encom passing

business model

t ransformat ion

Integrate data and

innovate across

mul t ip le business

uni ts

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McCormick protects profit with detailed understanding of customervalue and price volatility

29

Challenge

Significantly reduce the profit at risk due to volatilecommodity input prices

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

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 theirComprehensive and Continuous Improvement program withTM1 and Cognos

McCormick is a global leaderin flavor. With more than $4.0billion in annual sales, thecompany manufactures,markets and distributes spices,seasoning mixes, condiments

and other flavorful products tothe entire food industryretailoutlets, food manufacturersand food service businesses inmore than 110 countries.

CHALLENGE

SOLUTION

RESULTS

III

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Borghetti's co-pilot flying high at Virgin

Virgin Australia's CFO Sankar Narayan has helped chiefexecutive John Borghetti transform the airline from a low-cost carrier to a premium brand.

The airline's business efficiency project is on target todeliver gains of $60m this year, rising to $200m

in two year's time.

"We took out the whiteboard in the meeting room next doorand put a giant screen in there which connected to thelaptops. We didn't want to deal with paper reports any morebecause they have a time gap, a time delay. You need to beable to click through in real time. It changes the level ofengagement.

Source: DAMON KITNEY THE AUSTRALIAN MAY 06, 2013 12:00AM

That is a mind-shift change. You can hold people accountable for the microoutcomes as opposed to the top-level outcomes," Narayan says.

III

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Balanced scorecard playbook in Statoilambition to action

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Balanced scorecard creating a self regulating system

to actionDefine

Success

DefineMetrics

DefineActions

Ambition

to actionDefineSuccess

DefineMetrics

DefineActions

Ambition

to actionDefineSuccess

DefineMetrics

DefineActions

Ambition

Translated

Translated

to action

to action

to action

to action

to action

to action

LESSCost cutting

Calendar driven

Absolute KPIs

Controlling

MORECost conscious

Event driven

Relative KPIs

Self Regulating

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33

IBM Case Study

Predict potentia l threatsand op portun i t iesSpot and analyze trends

and anomalies

Assemble and interact

with relevant inform ation

Compare what-if

scenarios

Unders tand customer

sentiment and behaviorPlan, budg et and

forecast resources

Assess and manage risk

Measure and

moni tor behav ior Turn insight into action,

optim izing results

Align strategic and

operational decis ions

Business Analytics

Businessinsight

Operationalefficiency

Managerisk

CFRS

Grey Market Analyt ics

Exhibitsattribute

Does not exhibitattribute

Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18

Likelihoodofa dealachievingobjectives

Exhibitsattribute

Does not exhibitattribute

Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18

PRISM

Cont inuous Cont ro l

Monitor ing

SEE

Invest igat ion Report ing

Data WarehousesFinancial information strategy

Common

datadefinitions

Commontransaction applications

Common ledgerLedger

AcctgConsol

CorporateWhse

Fin'lPlanning

GeoWhse

EmployeeDisbursements

Intercompany

AccountsPayable

AssetsAccountsReceivable

Common datadefinitions and processes

Corporatedata standards-financial elements

Single worldwide chartofaccounts

Finance lead client

Commonworldwideplanningsystem

Singleworldwidefinancialinformationwarehouse(FIW)

Commongeographicmega-centers

Singleworldwideconsolidationsystem

BusinessMgmt.Info

TreasuryMgmt.

InfoCommon information

Jam / IDEA Lab

Dashboards

Predic t ive Analyt ics;

WWSpend; STAR

LEADS-ONLY

PILLAR

LEADS-AND-LOAD

PILLAR

LOAD-ONLY

PILLAR

LEADS-ONLY

PILLAR

LEADS-AND-LOAD

PILLAR

LOAD-ONLY

PILLAR

LEADS-ONLY

PILLAR

LEADS-AND-LOAD

PILLAR

LOAD-ONLY

PILLAR

FirmLOAD-ONLY

PILLAR

FirmLOAD-ONLY

PILLAR

FINAL OPTIMIZEDASSESSMENTanoptimal weightedaverageofthe four pillars

for eachgeo/region, andbrand

WEEKLY PILLARWEIGHTINGMODELComputes historically optimal weights for

eachpillar, by week, geo/region, andbrand

IBMResearch

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Marketing

Campaignscorecard

Promotionplan

Customer /Productprofitability

Revenueplan

Sales

IncentiveCompensation

Quota Plan

Territories

SalesChannels

Sales

dashboard

Long-termplan

CapEx &Workingcapital

Cash flowplan

EPS / DCF

projections RiskReporting

Finance

Workforce

WorkforceKPIs

Headcountplan

Salary &comp

Staffing plan

Training &Development

Operations

Ops KPIs

S&Op plan

Capacity &Inventoryplan

Productallocation

New

products

IBM delivers one comprehensive, analytic and planning platform

Drive insight and agility by linking across domains

SalesPerformanceManagement

OperationalPerformanceManagement

FinancialPerformanceManagement

DisclosureManagement &Financial Close

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IBM delivers best-in-class predictive and big data analytics

Likelihood of churn

Credit worthiness

Future lifetime value

Predictive models Profitability analysison retention,performanceand patterns

Customer data

Transaction history

Social Media history

Change policy,In-process decision

management

Advance analytic maturity by leveraging capabilities

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Where to start ?

Lead a disciplineof performance

Drive enterpriseagility 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

Business Analytics ExperienceWorkshop

Business Analytics and OptimizationJumpstart

Predictive Proof of Concept

Financial Metrics Briefing

Performance Management Diagnostic

Business and IT services sourcing | Security | Business resilience | Application rationalization | Cloud and systems | Big data

Workforce analytics and optimization | Workforce and talent assessment | Workforce collaboration | Change management |Culture transformation

Project financing | Leases and loans | Global asset recovery servicesFinancing

Consulting,implementation,

software

Quick Starts,Proof of

Concepts &

Business CaseDevelopment

Talent andchange

management

Infrastructureand systems

Revenue Management Diagnostic

Sales performance ManagementPilot

Predictive analytics

Financial analytics

o Performance reporting, dashboardsand KPIs

o Planning , budgeting, and forecasting

o Disclosure management andfinancial 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

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Path to Finance TransformationThank You

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PM Snapshot Services and Solutions Overview

Customer Analytics(CCI)

Financial Analytics(CFO Dashboard)

Supply ChainAnalytics &Dashboards

Human Capital(Workforce)Analytics

Industry SpecificAnalytics (e.g.,

DSR)

Domain Areas

PM Diagnostic (BVA)

Cognos Optimization (BVA)

Planning,Budgeting &Forecasting

(primaryfocus on

TM1)

BusinessAnalytics &Reporting

(core BIprimarilyCognos)

Dashboards& Scorecards

(core BIprimarily

Cognos. AlsoSPSS for

predictive)

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IBM has successfully developed, incubated, and deployedanalytics-based initiatives across several areas

Focus Areas

SalesManagement

RiskManagement

Development HR ResourceManagement

Planning &Forecasting

Using matchingengine to analyzeunstructured joband resumeinformation toidentify best stafffor open positionson projects

Simulating futureperformance ofdevelopmentportfolio &investment mix

Consolidating andanalyzing datafrom disparatesources toaddresscomplianceissues andpinpoint risks

Predicting andoptimizingperformance byanalyzingproductivity andpipeline

ste e enuerobabilit ist ribution

Mean =$4,694M

X 2 0 2 4 T o talUSD 6 5 1 3 3 1 , 6 7 5 1 ,4 0 0 2 , 00 3 0 0 0 3 ,0 0 0 1 , 60 0 7 5 0 0 0 0 0 0 3 , 9 8 2 15, 093

USD I G C 4 , 5 3 1 0 0 1 , 5 0 0 0 6 4 0 0 0 0 0 0 0 0 0 0 0 6, 095EUR 0 1 , 3 84 8 3 0 0 0 1 , 0 38 0 0 0 0 0 0 0 0 0 0 0 3, 252JPY 0 5 1 0 0 0 5 1 0 20 4 0 0 0 0 0 0 0 0 0 0 0 1, 225CHF 0 0 3 2 1 0 0 0 1 3 8 0 0 0 0 0 0 0 0 0 0 458

T o t a l 5 , 1 8 2 1 , 9 2 7 2 ,8 2 6 2 , 9 0 0 2 , 5 1 3 1 , 3 0 6 1 3 8 0 3 ,0 0 0 1 ,6 0 0 7 5 0 0 0 0 0 0 3 , 9 8 2 2 6,123

TermDebtM aturityProfile as of M ay'09

0

1, 000

2, 000

3, 000

4, 000

5, 000

6, 000

2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 > 2 0 2 4

$Million

U S D U S D IG CE U R J P YCHF

Debt M at uri t yProf i l e byQ uart er next 5 years

510

21

500321

1,000 1,005

0 0 0

2,900

1

1,042

0

1, 4701,242

640 0 0

1380

500

1, 000

1, 500

2, 000

2, 500

3, 000

3, 500

3Q 104Q 10 1Q 112Q 113Q 11 4Q 111Q 12 2Q 123Q 124Q 12 1Q 132Q 13 3Q 134Q 13 1Q 142Q 143Q 14 4Q 141Q 15 2Q 15

$0

$5

$10

$15

$20

$25

$30

$35

$40

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

2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09

TotalDebt($B)

1%

2%

3%

4%

5%

6%

Percentage(%)

Total Debt

Interest Expenseas a% (QoQ)

3MLibor(QoQ)

$0

$5

$10

$15

$20

$25

$30

$35

$40


2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09

TotalDebt($B)

1%

2%

3%

4%

5%

6%

Percentage(%)

Total Debt


3MLibor(QoQ)

LIQUIDITYANALYSIS/ CASH-DEBT

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4040

We practice what we preach !!!

Territory OptimizationProgram (TOP)

Optimization of salesterritories for individual

sellers

Proactive Retention

Optimization of investmentsin employee retention

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

Coverage Optimization withProfitability (COP)

Sales coverage optimizationthrough client-level profit

estimation

Examples

Market Alignment Program(MAP)

Client-level view ofopportunity for resource

allocation

Smarter EnterpriseEnablement

Integrated environment forstrategic planning,

modelling, and optimization

STAR

Statistical revenueforecasting

Capacity and Productivity(CAP)

Sales capacity andproductivity analysis

PRISM

Risk assessment andmitigation in integration of

acquisitions

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1.State of Play & NewPressures Faced

2.Beyond PerformanceManagement

Agenda

3.Success Stories

4.IBMs Response

5.Where to Start ?

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IBMs Approach going forward is to

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

Descriptive

Prescriptive

Predictive

Cognitive

What has happened?

What could happen?

How can we achieve the best outcome?

How can we learn dynamically?

IBM BrandedBig Data &AnalyticsPlatform

Information Layer

How is data managed and stored?

How

caneveryone

b

emoreright.moreoften?

BusinessValue

Disrupt the market

Innovate in descriptive,predictive, prescriptive andcognitive systems

Develop Interactive Analyticswith unparalleled user interactionsolving key business problems

Provide people-centric, task andworkflow-based solutionsenabling collaboration

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1.State of Play & NewPressures Faced

2.Beyond PerformanceManagement

Agenda

3.Success Stories

4.IBMs Response

5.Where to Start ?

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Hamish Barwick (CIO) 24 October, 2012 13:47

Predictive analytics pays off for Australia PostGovernment agency uses IBMs SPSS software and TM1 software to improve agency payment forecasting.

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 Demandconference 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.

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 p roduce 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.

Australia PostAustralias Largest Retailer Forecasts across 5000 stores with SPSS + TM1

The Business Pain Cash Forecasting and Management across a

hugely dispersed retail branch network

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 localfactors.

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

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52

Lead business model innovation through a new discipline ofperformance: Creating the future

III

C-SUITECFO

OUTTHINK AND OUTMANEUVERTHE COMPETITION New business model decisions

Business model innovation

and prototyping Long term financial roadmaps

Value and risk drivers across

the entire value chain

Externalopportunities

Internallevers

MODEL

MODEL

MODEL

MODEL

MODEL

Clearly und erstand

value and r isk

dr ivers

Rigorously and

cont inuou sly realign

resources to new

oppor tuni ty

Use advanced analyt ics to

ident i fy the r ight act ions to

capital ize on m arket and

technology changes

KEY CHARACTERISTICS

Create long term financial

roadmaps encom passing

business model

t ransformat ion

Integrate data and

innovate across

mul t ip le business

uni ts

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53

IBMs own transformation can serve as a model for clientslooking to grow and evolve

IBM transformation outcomes

Created globally integrated Shared Serviceswith owners accountable for meeting productivitygoals

Drove continuous improvement throughstructured approaches, shared GIE principles,governance and across Shared Servicemeasurement of process maturity

Applied proven principles of Shared Servicestransformation to all of IBMs spending

2011-2015 ~$8B savings

Operating in over 170 countries with more than 430,000 employees,IBM saw $104.5B revenue and $17.6B income in 2012

Cumulative Enterprise Productivity Savings

2006-2010 ~$6B savings

Shared Services End-to-End Process Transformation Integrated Operations

Consistent world-wide processes, bestpractices, standardization, governanceand performance discipline Right skills, right place, right cost,

rationalized support functions,radically simplified processes Instrumented, interconnected, growth

enablement, whole system optimization

Sharing and partnering

Globally integrating

Sharing and partnering

Globally integrating

Making things smarter

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IBMs transformation agenda using Analytics

Manage RiskEnterprise Risk Management

and advisor to business units andsenior management

Operational EfficiencyEfficient service delivery throughstandardization, automation and

centralization

Business InsightTrusted Business Advisors

Use Cases Use Cases Use Cases

WW Spend

Employee Expenses Monitoring &

Analysis

Workforce Analytics

Coverage Optimization

SO Cost and Risk Management

Labour Claiming Analytics

STAR

Business Intelligence Dashboards

Services Backlog Run Out and Revenue

Analytics

Business Partner Optimization and

Opportunity Growth

Transformation for Quota and

Opportunity Alignment

Country Financial Risk Scorecard

Business Partner Grey Market Analysis

PRISM M&A Risk Management

Strategic Planning Optimization

Critical Parts Management Tool

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IBMs commitment to Business Analytics is a catalyst behind its transformation

IBM Growth Initiatives

Includes software,

hardware and services

10%CAGR

2009 2015

Source: IBM Investor Relations, May 2010; $16B refers to cross-IBM revenueincluding Software, Services and Systems.

BAO Revenue(including SW, HW and services)

SmarterPlanet

Cloud andNext

Generation

Data Center

GrowthMarkets

BusinessAnalytics

andOptimization

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New & ImprovedIBM Delivers Performance Management

Common Information & Technology Platform

ProfitabilityModeling &Optimization

Management & Performance Reporting

DisclosureManagement& FinancialClose


Integration and AutomationHierarchy ManagementAnalytic Data Management

PlanningAnalysis &Forecasting

Improved!

Improved!

Scorecarding& StrategyManagement

NEW!NEW!Improved!

Improved!

Q2 Q3

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Three imperatives guide todays most effective CFOs

CFOs design integrated operating models andprocesses that are the foundation of a globallyintegrated enterprise that proactively adapts andcontinually positions for the future.

New analytics and data sources enable CFOs tooffer predictive and prescriptive insights and drivea forward-looking culture that permeates theorganization and better shape the future.

CFOs are guiding the evolution of the organizationsvalue creation engine with profit opportunities tocreate the future.

Drive agility throughenterprise analytics

Help the business makebetter decisions byanticipating the future

Lead business modelinnovation through a newdiscipline of performance

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IBM Finance Current Environment 2009

In order to drive change one must first understand the starting point

Most Common, global financial applications anddata with high volume reporting

Powerful set of data and reporting capabilitieswhich are not being leveraged for predictive

analyticsLimited knowledge of new tools andapplications across functions

Minimal integration between financial and non-

fincial data to optimize decision makingTypical approach to analytics involve manualforecasting and extensive use of excelworksheets

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IBM has successfully developed, incubated, and deployedanalytics-based initiatives across several areas

Focus Areas

SalesManagement

RiskManagement

Development HR ResourceManagement

Planning &Forecasting

Using matchingengine to analyzeunstructured joband resumeinformation toidentify best stafffor open positionson projects

Simulating futureperformance ofdevelopmentportfolio &investment mix

Consolidating andanalyzing datafrom disparatesources toaddresscomplianceissues andpinpoint risks

Predicting andoptimizingperformance byanalyzingproductivity andpipeline

ste e enuerobabilit ist ribution

Mean =$4,694M

X 2 0 2 4 T o talUSD 6 5 1 3 3 1 , 6 7 5 1 ,4 0 0 2 , 00 3 0 0 0 3 ,0 0 0 1 , 60 0 7 5 0 0 0 0 0 0 3 , 9 8 2 15, 093

USD I G C 4 , 5 3 1 0 0 1 , 5 0 0 0 6 4 0 0 0 0 0 0 0 0 0 0 0 6, 095EUR 0 1 , 3 84 8 3 0 0 0 1 , 0 38 0 0 0 0 0 0 0 0 0 0 0 3, 252JPY 0 5 1 0 0 0 5 1 0 20 4 0 0 0 0 0 0 0 0 0 0 0 1, 225CHF 0 0 3 2 1 0 0 0 1 3 8 0 0 0 0 0 0 0 0 0 0 458

T o t a l 5 , 1 8 2 1 , 9 2 7 2 ,8 2 6 2 , 9 0 0 2 , 5 1 3 1 , 3 0 6 1 3 8 0 3 ,0 0 0 1 ,6 0 0 7 5 0 0 0 0 0 0 3 , 9 8 2 2 6,123

TermDebtM aturityProfile as of M ay'09

0

1, 000

2, 000

3, 000

4, 000

5, 000

6, 000

2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 > 2 0 2 4

$Million

U S D U S D IG CE U R J P YCHF

Debt M at uri t yProf i l e byQ uart er next 5 years

510

21

500321

1,000 1,005

0 0 0

2,900

1

1,042

0

1, 4701,242

640 0 0

1380

500

1, 000

1, 500

2, 000

2, 500

3, 000

3, 500

3Q 104Q 10 1Q 112Q 113Q 11 4Q 111Q 12 2Q 123Q 124Q 12 1Q 132Q 13 3Q 134Q 13 1Q 142Q 143Q 14 4Q 141Q 15 2Q 15

$0

$5

$10

$15

$20

$25

$30

$35

$40


2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09

TotalDebt($B)

1%

2%

3%

4%

5%

6%

Percentage(%)

Total Debt


3MLibor(QoQ)

$0

$5

$10

$15

$20

$25

$30

$35

$40


2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09

TotalDebt($B)

1%

2%

3%

4%

5%

6%

Percentage(%)

Total Debt


3MLibor(QoQ)

LIQUIDITYANALYSIS/ CASH-DEBT

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CHALLENGE

SOLUTION

BENEFITS

Different geographies andbrands used their own datasources and processes supportingexpense management

No standards meant systemswere not tied to key CHQmanagement system (WWIE)

Delays in accessing information

due to long load times of Cubes

Implemented consistent dataand metadata standards

Developed a flexible / modernSOA architecture allowing for

easy expansion acrossgeographies

Single worldwide applicationfor Spend Analytics and trackingon one TM1 Cube across allgeographies with 3,000+ currentusers, 500+ concurrent activesystem users

Increased visibility across

geographies and brandsallowed for cost controloptimizations

Common processes increasecareer options of financialanalysts across IBM

Single application to supportcommon set of skills required to

use and maintain

Reduced cube load times by80%

Reduced calculation timesfrom 45 minutes to near realtime

Lower third party licensingcosts

WorldWide Spend Application

Analytics Tool:IBM Cognos TM1

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STAR (Statistical Tracking & Assessment of Revenue) Consistent metric-driven model for performance estimation

wk 13

End of Quarterwk1 wk2 wk3 wk4 wk5 wk6 Today

METHODOLOGY

LEADS-ONLY

PILLAR

LEADS-AND-LOAD

PILLAR

LOAD-ONLY

PILLAR

FirmLOAD-ONLY

PILLAR

Orders

Opportunity data fromEIW (i.e., Siebel)

Each opportunity detail is

modeled

Revenue data tocalibrate parameters

Quarterly transactional

revenue

Load data

Provides value of

closed deals

ready to ship

Compute Probability of

Winning and Expected

Yield of each opportunity

using detailed EIW data

Predict, based on

history, the Future

Yield due to

opportunities not yet

in the pipeline

FINAL OPTIMIZED ASSESSMENTan optimal weighted average of the four pillars

for each geo/region, and brand

WEEKLY PILLAR WEIGHTING MODELComputes historically optimal weights for

each pillar, by week, geo/region, and brand

Assessment Precis ion Compar ison

STAR Mod el:

Consistent metric-based method(stat ist ical model based on his torical data)

Link tracking measures to performance

Accu rate in early weeks, low volat i l i ty

over weeks

Re-focus h uman effort from estimating

outcomes to dec is ion-support ac t iv i t ies

IBM

Res

earc

h

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

DeltatoActual

I-view STAR1 STAR2

f

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Application: BaRT Backlog RunoutTracking billions of dollars in revenue commitments

CHALLENGE

SOLUTION

BENEFITS

Limits in Essbase meant using

manual spreadsheets compiled atseveral levels of consolidation toget answers

Poor visibility into when revenueshould be forecast to berecognized

Inability to look at past backlogand drill to details such as contract,

country or division to performmeaningful analysis

Insight gained with a discreteview of revenue for each dealunder contract as well as aportfolio of contracts.

Automation of the backlog totrack the revenue commitment

Single global interface for

tracking services revenue

Automates generating answerswhile allowing business users tointervene and perform analysis

Enables constant view through

trusted data source

Reduced need for independentspreadsheets and reducing therisk of data loss

Lower maintenance costs withincreased reliability

P th t Fi T f ti

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IBM Country Financial Risk Scorecard Smarter Near Real-time Integrated Risk Management

Analytics Tool: IBM

Cognos BI, SPSS,OpenPages

CHALLENGE

SOLUTION

BENEFITS

Vast amounts, but fragmented

data provides little opportunityfor consistent analysis andproactive identification offinancial country risks

Lack of automated solutionrequires manual aggregation andanalysis

Limited vis ib i l i ty to external r isk

creates a blind spot to emerging

risks

Created Scorecard thatautomated information integrationand financial risk monitoring KRIs

Business insights into riskexposures

Risk-based predictive analyticsby:

- Country- Trends

Enable agi le decis ion making

to seize opportunities andmitigate impact of unfavorable

risk events. Centralized,consistent, and automatedapproach to measure and monitorfinancial risks

Empowering chief financialofficers (CFOs) to be valueintegrators

Increase prod uctiv ityof financeleaders across the enterprise,encourage broader globalcollaboration, and elevate skil llevels. Reduce time to gather andanalyze data from weeks to

hours

P th t Fi T f tiChina Financial Dashboard Summary Report (Extract)

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Path to Finance Transformationy p ( )

IBM Country Risk Score Actual PredictionQ4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012

Economic Indicators Low Low Low Low Low Liquidity Factors High High High High High

Risk/Reward Me di um L ow Me di um L ow Me di um L ow Me di um L ow Me di um L ow

Shareholder Value Lowes t Medium Low Low Low Low

Worldwide IBM Country Risk Heat Map 1Q 2012 Enterprise Risk Heat Map 1Q 2012

China IBM Country Risk Score

Financial Performance Risk Indicators

ERM Risks: Operational

Risk Category Status

1 Business Partner

2 Cyber Risk

3 Talent & Leadership

4 Employee Relations

5 Annuity Base

6 Regulatory Compliance

7 Integrity & Compliance

8 Physical Security

9 Reputation/Brand Value

10 Business Transformation/HRMS

11 Scaling Solutions

12 Service Delivery

13 Legal Structure

14 Real EstateLiquidity - Intercompany Aging

CF Credit Concentration

FY11 1Q'12 FY12 FY15

$/ Sha re YtY $/Sh are YtY $/Sha re YtY $/Sha re CAGR

11-15

IBM $ 4, 71 2 1 6% $ 1, 105 7 % $ 5,577 18% $8,348 15%

GCG Share 18% 1pts 1 7 % ( 0p ts ) 20% 1pts 21% 3pts

GtG/GtH 0 $0 $55 $3 0 0 $0 $0

IBM $3,652 18% $882 11% $4,414 21% $6,871 17%

PRC Share 18% 1pts 18% (0pts) 20% 2pts 22% 3pts

GtG/GtH 0 $0 $22 $0 0 0 $0 $0

IBM $560 14% $118 1% $ 613 10% $790 9%

HKG Share 21% 1pts 1 9 % ( 1p ts ) 22% 1pts 24% 3pts

GtG/GtH 0 $0 $8 $2 $0 $0 0 $0

IBM $501 6% $ 10 5 ( 14 %) $550 10% $687 8%

TWN Share 17% 0pts 1 4 % ( 3p ts ) 18% 1pts 18% 2pts

GtG/GtH $9 $0 $ 23 $17 $0 $0 0 $0

Revenue Mix Track

59% 60% 59%53%

11% 9% 12%15%

28% 29% 28% 31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

F Y2011 1Q 2012 F Y2012 F Y2015

STG SWG Services

Long Term SingingsTrack

70 100

221

410

-

50

100

150

200

250

300

350

400

450

500

FY 2 01 1 1Q 201 2 FY 20 12 FY 2 01 5

Key Drivers' Impact to China Growth

3,0283,660

2,560

666

3,1372,085

473

2,398

425483

1,575

400

2,016

78249

271

199

51

-

1,000

2,000

3,000

4,000

5,000

FY

2011

1Q

2012

FY

2012

FY

2011

1Q

2012

FY

2012

FY

2011

1Q

2012

FY

2012

0%

5%

10%

15%

20%

25%

30%

Rest HE SystemDist'd SW PRC YTY

PRC w/o Top banks&Telco

YTY

GeoE

Metro


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Automating IBM Treasury Reporting

Analytics Tool:IBM Cognos FSR

CHALLENGE

SOLUTION

BENEFITS

IBM Treasury needed a solutionto automate the collection andaggregation of daily, updatedcash/debt data and FX rates

Such solution would allowTreasury Management to look at itscash positions around the globeand see near real-time dataquickly, easily and accurately

Using IBM Cognos FSR, theTreasury Department was ableto automate each step in thecash management process,which allowed it to:

Cut the time and effortneeded to collect, consolidateand review monthly reports andforecasts

Greatly reduce the risk oferrors in this critical Financefunction

IBM Treasury accomplished itskey objective of increasingproductivity by eliminating manymanual and error-proneprocesses

The collection, aggregation,review and validation of thequarterly cash and debt data andreports were automated, while

controls and visibility over theentire process have beenoptimized

Implementation and trainingwere quick since FSR leveragesthe familiar user interfaces ofMicrosoft Excel and MicrosoftWord


COP

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Resource shifts aligned with COP result in increased productivity whileshifts misaligned with COP resulted in decreased productivity

Path to Finance TransformationIllustrative example COP

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High Revenue Growth Low Revenue Growth

Profit Margin 1. High Opportunity Headroom2. Low Opportunity

Headroom3. High Opportunity

Headroom4. Low Opportunity

Headroom

A. High Add Add Add Maintain

B. Medium Add Maintain Maintain Maintain

C. Low Maintain Cut Cut Cut

D. Very low Cut Cut Cut Cut

11%

30%32%

27% 28%26%

27%

64% 78%

31% 32% 30%

62%Cut Clients(19 054)

Maintain Clients (3 390)

Add Clients (8 299)

Technicalsellers(FTE)

Quotasellers(FTE)

Totalsellers(FTE)

Profit

42% 40% 44%

-10%

Revenue

6%

#Clients

Brand X, Geo YRev CAGR

19%

4%

5%

Coverage Optimization with Profitability (COP) add-cut-maintainanalysis is based on profit margin, revenue growth, and future revenueopportunity

Path to Finance TransformationOnTARGET

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OnTARGET is a prospecting tool helping sellers and managers findmost promising opportunities

Source: Lawrence et al., Analytics-driven solutions for customer targeting and sales-force allocation, IBM SYSTEMS JOURNAL, VOL 46, NO 4, 2007

Before

Yellow pages approach to prospecting

Sellers lacked tools that provided qualityprospects and information based on past andlikely future purchases

Disconnected data stored in heads and on hard

drives

Managers lacked an automated way to identifyother products clients may be interested in (howto identify cross-selling opportunities)

After

References a large universe of existing clientsand potential new clients

Incorporates relevant data that may requiremultiple existing tools to access

Includes analytical models to help identify thebest sales opportunities

Integrates all such data for each company undera single user interface designed by end users tofacilitate easy navigation


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We are aggressively investing to enable clients and our company to driveinnovation through essential expertise

Autonomic Operations

Developer Productivity

Deep Compression

pureXML

pureScale

Pervasive Content

Stream Computing

Content Analytics

Advanced Case Management

Workload Optimized Systems

Social Analytics/Consumer Insight

2005

Decision Management

$16B in Acquisitions Since 2005

10,000+ Technical Professionals

7,500+ Dedicated Consultants

Largest Math Department in Private Industry

27,000+ Business Partner Certifications

8Analytics Solutions Centers

Optimized hardware and software offerings

100 analytics-based research assets;almost 300 researchers

Significant marketing investmentworldwide through Smarter Planet

2012


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"IBM's solutions were reported to be used for a broader set of CPMprocesses than were SAP's (and somewhat more than Oracle's as well).IBM also had a higher overall satisfaction rating than either Oracle orSAP"

This platform approach (of IBM) stands in contrast to the traditional

mega-vendor approach to CPM, which involves offering a variety ofsoftware applications that challenge end users to obtain value.

Cognos TM1 finished #1 in Agility, Self-Service, and Project Length in oneor more of following vendor groups IT Giants, Performance Management,OLAP Analysis, and BI Giants

Gartner User Survey Analysis: Customers Rate Their CPM Vendors, 2012.Published: June 4, 2013. Analysts: Christopher Iervolino, John E. Van Decker

Nucleus Research Note: Technology Value Matrix First Half 2013, Corporate Performance Management,Document N93 Published: June 2013

The Customer Verdict, Barc Survey 12

Innovation Builds on Hard Won Advantages for Clients

IBM stands out versus alternatives


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Introducing IBM Cognos TM1 V10.2

Measurement

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 performancereporting processes in one easy to design, deploy, and run package on premise or via cloud.

Performance

Enable faster insightand sharper executionthrough dramaticperformance gainsmade in queryprocessing, LAN and

web performance.

Integrate metrics andscorecards into thehigh participationplanning, forecasting,and profitabilityanalysis to driveclosed-loopperformancemanagementprocesses.

Deployment

Drive performancemanagement throughevery part of theorganization whetherstarting in finance oroperations with oneeasy to design, deploy,and run package onpremise or via cloud.

Engagement

Engage the entireworkforce from theregular managementcontributor to the mostsophisticated businessanalysts with the tools

and software profilesthey require,eliminating delay,wasted effort, andoffline-shadowsystems.

Whats New?


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Looking AheadProject Concert Enhances PM with Social, Mobile, and Enhanced Task

Management

Common Information & Technology Platform

ProfitabilityModeling &Optimization

DisclosureManagement& FinancialClose


PlanningAnalysis &Forecasting

Scorecarding& StrategyManagement

Q4 2014

20142014 Q4 Q4 Q4


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Marketing

Campaignscorecard

Promotion plan

Customer /

Productprofitability

Revenue plan

Sales

IncentiveCompensation

Quota Plan Territories

Sales Channels

Sales dashboard

Finance

Long-term plan

CapEx &

Working capital Cash flow plan

EPS / DCFprojections

Risk Reporting

Workforce

Workforce KPIs

Headcount plan

Salary & comp

Staffing plan

Training &Development

Operations

Ops KPIs

S&Op plan

Capacity &Inventory plan

Productallocation

New products

IBM delivers one comprehensive, analytic and planning platform

Drive insight and agility by linking across domains







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Smarter Outcomes delivered to peer group

Customer /Sales

CustomerRelationshipDashboards

Stage wise Pipelinetracking andpredicted closure

Sales forceProductivity

Detailed Account

and Large DealPlanning and

Analytics

Fact based salesreview process

Finance

Strategic FinancialOperational

Planning

Cash Flows, P&LManagement

Predictiveforecasting and

monitoring toimprove DSO

Facilities,Procurement and

Vendor Performance

Financial Close,Consolidate and

Report

RiskReducing cost of

Compliance

Managing ProjectDelivery Operational

Risk

Enterprise PolicyComplianceManagement

Fraudulent ClaimsManagement

IT Governance

DeliveryCustomer, Program,

Project Profitability

Resource Allocationand Utilization

Efficiency

Project Quality,Time and Cost

Monitoring andAnalysis

Project Quality

Metrics Analysis

Operational Costs

Management

HR

Hiring ChainVisibility, Efficiency

& Effectiveness

Learning Costs,Efficiency andEffectiveness

Early WarningSystem for TopTalent and All

Attrition

Succession PipelinePlanning

Headcount,Compensation andBenefits Planning

KPMG

Deloitte

Wipro

IBM

UST Global

IBM

PatniTCS

Wipro

IBM

UST Global


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Business AreasWhats Included?

Over 43,000 Objects including

250+ Dimensions

850+ Metrics

230+ Defined Calculations

1000+ Report Configurations

Embedded Data Warehouse

Financial Analytics

Ledger

Payables

Receivables

Cash Management

Customer/Vendor Risk

Workforce Analytics Talent Development

Talent Management

Talent Retention

Workforce Strength

Compensation

Common Decision-Making Model ERP AgnosticUnified Platform

Analytics Drill Through Packaged Reporting & AnalysisDatabase Agnostic

Cognos Analytic Applications

Adaptive Framework

Unlimited Extensions

Delivered ERP extraction

Unlimited Data Sources

Procurement Analytics Spend Analysis

Vendor Analysis

Contract Management

Operational Efficiency

Sales Analytics

Pipeline Performance

Sales force Performance

Sales Segmentation

Customer Relations

Pricing and Program Analytics


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Best-in-Class Domain Content Delivered On-Demand OurPlay Store

Analytics ZoneBusiness Accelerator Applications

Predictive Analytics madebusiness-friendly and

"conversational" through easy-to-use data discovery platform

IBM's partner network to deliverhorizontal & vertical domain-area best practices

Rich, interactive & innovativevisualization via ExtensibleVisualization Sales pipeline modeling Marketing & lead-generation

Resource tracking and allocation

Expertise locator

Incentive compensation modeling

Have on-demand access to BusinessAccelerator templates for areas like:

Leveraging:


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A Glimpse of our Roadmap


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Beyond 2013Consumable BI and analytics starts with a conversational experience


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Contextually aware and

easy to share

Complex made easy through simple

business terms and natural language

Surface hiddenanswers leading

a user to morequestions

Automaticallyshow mostinteresting

view of databased on

underlyingsmarts

Easy access todata with

dynamic accessto different

analytic tools

Beyond 2013Making analytics consumable


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2013 IBM Corporation 2013 IBM Corporation

IBM brings the deepest experience and broadest set of capabilities toguide you on this journey

More than 120,000 consultantsbased in over 170 countries

Deep expertise in 17 industries and

across functions like finance, HR,supply chain, and IT services

Three-tier delivery modelspanning on-site, globally integratedcapabilities and centers ofcompetency to meet shifting clientneeds around the world

Robust business process sourcingincluding marketing, finance, human

resources, procurement and supplychain

Unmatched software portfolioenhanced with $17B in acquisitionssince 2005

Leader rankings in BusinessConsulting, Strategy Consulting,Finance, Software and others as

assessed by Gartner, Forrester, IDCand 13 other analyst f irms from 2011to 2013

Predictable and compelling businessoutcomes delivered throughthousands of engagements aroundthe world

Delivered $8 billion in productivitygains over the last ten years of IBMsown transformation, driving efficiencyand fueling our growth strategy

Assessment services andaccelerators to jumpstart andexpedite business value

A leader in technology for over 100years with Nobel Prize-winninginnovation

First-of-a-kind breakthroughinnovations including IBM Watson

Analytics Solution Centersdelivering new capabilities at theintersection of mobile, social,analytics and cloud

Award-winning thought leadership

and insight from IBM Institute forBusiness Value, developed basedon face-to-face interviews withthousands of finance and C-suiteexecutives

Proven transformationsuccess

Breakthrough researchand innovation

Unrivaled expertiseand capabilities

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How can we help you achieve your objectives?

Next steps

Meet an expertby taking part in aScoping Session

Go deep with aSolution Briefing

Focus oninnovation ata peer to peerbriefing with anIBM FinanceAmbassador

Develop aroadmap usingBenchmarking &

Analytical Apps


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BACKUP


Growth and Performance (GAP)

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GAP RESOURCE CAPACITY MODEL

Enables analysis and modeling ofhistorical productivity

Test/simulates viability of salesplans/targets and hiring plans/targetsrelative to different assumptions (e.g.

productivity improvements).

Provides the ability to: Determine the optimal size of salesforce

Determine best deployment across variousregions

Make accurate financial targets and determinethe gap to target

Get a true picture of intrinsic salesforceproductivity in a region/brand

Run scenarios to assess optimal actions neededto make targets (e.g. salesforce actions,expense reallocations or productivityimprovements )

CRITICAL NEEDSBetter visibility into returnsexpected from resourceinvestment and whetherinvestments are sufficient todeliver the business plan

A robust view of productivityand opportunities to improve

A comprehensive, yet easy tograsp, tool to support F&P andfacilitate decision making

Resource Planning

How many incremental

sellers are needed in 2009 todeliver x% revenue growth in

2010?

Performance Management

Which Brands / Regions /

Units have delivered returnsin proportion to investments?

Plan ScenariosHow much revenue can I

generate with the currentsalesforce?

IBM Internal Example: Growth and Performance Modeling (GAP)provides an analytics system to performance by modelingrelationship between sales capacity and revenue.


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Unilever drives enterprise agility

Objective

Achieve cost efficiencies and build platform for revenuegrowth with focus on brand called One-Unilever

Approach

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 globaldelivery capabilities

Results

Integrated the company and created a more flexibleoperating and financial model

Greater efficiency and operational savings contributingto700M annual savings for the company

Unilever: Global consumer goods companyincluding foods, beverages, cleaning agentsand personal care products with 51+ billioneuro in 2012 revenues.

The successful partnershipbetween IBM and UnileverEurope, along with anambitious transformationagenda, will continue deliveringsignificant and sustainablebenefits for Unilever Europe.

Christian KaufmannVice President, Global Finance ServicesUnilever

CHALLENGE

SOLUTION

RESULTS

I


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Operational analytics

IBM solutions aredriving the next wave ofefficiency and growth

Assetmanagement

Threat andfrauddetection

Salesperformance

management

Supply chainoptimization


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Drive new insight and agility

Marketing

Campaignscorecard

Promotion plan Customer and

productprofitability

Revenue plan

Strategy-aligned organization

Finance

Long-term plan Capex and

working capital Cash-flow plan Earnings per

share/discountedcash flowprojections

Risk reporting

Operations

Sales andoperationsplanning

Capacity plan Inventory plan Product allocation New product plan

Sales

Sales dashboard Incentive

Compensation Quota Plan Territories Sales Channels

Workforce

Workforcescorecard

Headcount plan Salary and

compensation Staffing plan Training and

development

RiskFinanceOperationsCustomers

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Documents