Agility to transform your business with IBM Cognos 8

1. Agility to transform your business with IBM Cognos 8 Mitka Avramova IM Sales, IBM Bulgaria SWG

2. Session Objectives After this session you will understand … • Find Out What IT Professionals Need to Know about Planning • How IBM Cognos Enterprise Planning solutions simplifies data and process management. • How IBM Cognos Enterprise Planning solutions brings greater business and IT governance efficiencies to a traditional spreadsheet-based process.

3. Agenda • Business Processes Addressed • External Influences / Internal Factors • Typical Pain Points and Who Cares • Cognos Solution • Value Opportunity and Why Cognos • Summary

4. Applications& Blueprints Access & Interactivity Universal Capabilities Business Modeling PerformanceManagementPlatform Information Infrastructure The IBM Cognos 8 Performance Management System

5. Cognos Performance Management Cognos Performance Management Platform provides: • Independent spans all data sources across your organization • Innovative to meet the diverse needs of all business users • Focused on best practices in Performance Management • Owned by the Office of Finance

6. FINANCIAL PERFORMANCE MANAGEMENT Enterprise Edition • Financial and • Management Control • Financial Consolidation • Financial Reporting • Corporate Reporting • Enterprise Planning and Analysis • Strategic Finance • Revenue Planning and Forecasting • Expense Planning and Control • Workforce Planning • Capital Planning • Strategy Management • and Scorecarding • Strategy Communication • Strategy Execution • Strategy Measurement • Financial Analytics • Financial Performance Analysis • Profitability analysis • Product, Operations, Customer, Channel, Market analysis and optimization

7. Planning Processes

8. Spreadsheets Failing “there have been well-documented cases of errors and losses resulting from spreadsheet manipulation errors and accidents.”Source: Gartner, August 2007 Disparate Systems “Average finance organizations operate 11 finance systems per billion dollars of revenue.” Source: Hackett Group, 2007 Business Risks “62 percent of enterprises … encountered a major risk event … 42 percent of these enterprises were not well prepared for the event.”Source: IBM Global CFO Study 2008 CFO Tax /Treasury Controller FP & A Financial Performance Management Challenges

9. Long budgeting processes. Use of spreadsheets to manage the planning process. Unreliable budgets and forecasts for decision-making. Infrequent Unreliable Forecasts DisconnectedPlans Weak Top-Down& Bottom-up Coordination Challenges with Plans and Forecasts PLANS & FORECASTS FP & A ! ! ! Key Pains PAIN:Inability to deliver timely, reliable forecasts & plans that align operational tactics with financial targets

10. Long budgeting processes. Use of spreadsheets to manage the planning process. Unreliable budgets and forecasts for decision-making. Closer Look atChallenges with Plans and Forecasts FP & A ! ! ! Key Pains

11. We understand the value of finance managed solutions. Enable a vision of “Beyond Finance” Drive Best Practices through the Innovation Center and Blueprints Timely, ReliableForecasts Top-Down& Bottom-Up Alignment ConnectedPlanning Models Benefits of IBM CognosEnterprise Planning Solutions PLANS & FORECASTS FP & A How IBM Cognos adds value IMPACT: Timely, reliable forecasts & plans that align operational tactics with financial targets. Better, confident resource allocation decision-making.

12. Replaces spreadsheet-only processes Engages the whole organization to make better informed decisions Replaces rigid, annual budgeting with continuous planning for higher responsiveness Supports best practices such as drive based planning and rolling forecasts Connects operations and finance Enterprise Planning Plan, forecast and control enterprise resources IBM Cognos Solutions IBM Cognos 8 Planning IBM Cognos TM1 Performance Blueprints

13. IBM Cognos Solutions for Enterprise Planning Pre and Post-PlanningAlternative hierarchies, Allocations, Reporting and Analysis PLANS & FORECASTS CollaborativePlan & ForecastEmphasis on user experience; workflow; auditability and process control

14. ENTERPRISE PLANNINGIBM Cognos 8 Planning and TM1 Post-PlanningGoal seeking, Allocations High Participation Plan & Forecast Pre-Planning AnalyticsAlternative hierarchies, trending

15. CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING PHARMA/HEALTHCARE FINANCIALSERVICES RETAIL MANUFACTURING

16. CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING PROFESSIONALSERVICES CONSUMERGOODS ENERGY FOOD & BEVERAGE TELECOMMUNICATIONS PUBLIC SECTOR

17. COGNOS PLANNING CUSTOMERS and THEIR PRIMARY DATA SOURCES Essbase

18. PERFORMANCE MANAGEMENT ROADMAP AUTOMATION ---------------------------------- TRANSFORMATION ---------------------------- ADVANCE Performance Management DRIVE Best Practices EXTEND Enterprise- Wide ADDRESS Initial Needs 3 1 2 4 Embrace and Extend Your Existing Infrastructure

19. Familiar Environments Web, Excel Centralized Control and Management Centralized Modeling Approach Central application management – process, deployment, security 100% Web : Consumption Integration with Cognos PM portal Integrated EXCEL capabilities Automating the Planning Process With Cognos Planning & TM1 4

20. DRIVE Best Practices 2 Cognos Innovation Center Support Best Practices Performance Blueprints DRIVE BEST PRACTICES AUTOMATION ---------------------------------- TRANSFORMATION ---------------------------- EXTEND Enterprise- Wide 3 1 ADDRESS Initial Needs ADVANCE Performance Management 4 • DRIVER BASED PLANNING • ROLLING FORECASTS • TIMEFRAME-APPROPRIATE PLANS • HIGH PARTICIPATION & DATA VOLUMES • A WIDER / DEEPER VIEW

21. Norton BSCol DRIVE Best Practices 2 Axson Sonax RESEARCH, CASE STUDIES, PUBLICATIONS Hope BBRT MEMBERS AND PEER NETWORK / COMMUNITY Roth Hackett ASSETS, RESOURCES, EVENTS … Strategy Development Performance Blueprints Business Content Customer Forums BEST-PRACTICE THOUGHT LEADERSHIP AUTOMATION ---------------------------------- TRANSFORMATION ---------------------------- EXTEND Enterprise- Wide 3 1 ADDRESS Initial Needs PM for Strategy Execution 4

22. Pre-configured solution • building blocks that: • Pool collectivebest-practice knowledge • Accelerate time-to-value • Increase project success rate Enterprise PlanningPerformance Blueprints: Functional Solutions • FUNCTIONAL SOLUTIONS • Strategic Financial Planning & Forecasting • Strategic Long Range Planning • Risk Analysis • Sales Planning& Forecasting • Sales Compensation Planning • Workforce Planning • Expense Planning & Control • Allocations • Capital ProjectPlanning • Discretionary Capital Expenditure • Initiative Planning FINANCE FINANCE SALES Market Demand • Reports • Income StatementsBalance Sheet • Cash flow • Financial Ratios SALESPLANNING &FORECASTING Revenue Plan OPERATIONS,MARKETING,ETC. STRATEGICFINANCIALPLANNING & FORECASTING HUMANRESOURCES Cap Ex CAPITALEXPENDITUREPLANNING WORKFORCEPLANNING OperatingExpenses Headcount& CompensationExpenses Depreciation Expenses EXPENSEPLANNING& CONTROL

23. DRIVE Best Practices EXTEND Enterprise- Wide 3 2 Industry Performance Blueprints Cognos Solution Map Model the Whole Business EXTEND Enterprise - Wide AUTOMATION ---------------------------------- TRANSFORMATION ---------------------------- 1 ADDRESS Initial Needs ADVANCE Performance Management 4 Retail Financial Services • Link operational plans to financial plans • Increase forecast reliability • Performance Blueprints accelerate implementations Public Sector Manufacturing Life Sciences

24. Pharmaceuticals & Life Sciences Clinical Trial Planning Samples Optimization (Joint w/ TM1) Clinical Trial Enrollment Forecasting Sales Quota Allocations Banking & Financial Services Retail Branch Performance Retail Banking Customer Segment Performance Corporate Banking Customer Segment Performance Insurance Product Profitability Cognos & IBM Risk Adjusted Profitability for Banking – Business Partner BP Loan Pricing Extend Enterprise WideContinued Investment in Industry Blueprints Manufacturing • Trade Promotion Management • S&OP Executive Review • Sales & Operations Planning • Transportation and Logistics Performance Public Sector • Program Objective Memorandum (POM) • Grant Thornton & Cognos Federal Budget Planning & Performance Framework – Business Partner • BearingPoint POM Budget Planning – Business Partner • Higher Ed Performance • Mayor’s Scorecard Retail • Store Operations • Store Development • Promotion Planning • Merchandising Performance Management • Retail Financial Workbench

25. DRIVE Best Practices EXTEND Enterprise- Wide 3 2 IBM Cognos Performance Management Platform Pervasive Performance Management Continuous Business Alignment Applications & Blueprints Access & Interactivity Universal Capabilities Business Modeling Performance Management Platform Information Infrastructure ADVANCE PERFORMANCE MANAGEMENT AUTOMATION ---------------------------------- TRANSFORMATION ---------------------------- ADVANCE Performance Management 4 1 ADDRESS Initial Needs Information Infrastructure

26. PERFORMANCE BLUEPRINTS What they are: • Pre-defined data, process and policy model • Developed by Cognos Innovation Center • …In conjunction with leading customers • Enables best practices • Driver-based • High Participation • High Frequency • Enables rapid time-to-value • Reduced project implementation time and risk BUSINESS VALUE GUIDES APPLICATION BRIEFS BLUEPRINT MODELS

27. BUSINESS VALUE • Links operational causes to financial effects • Finance can quickly see the impact of changes in operational plans on corporate financials • Departments and functions can intelligently improve resource allocations in support of corporate objectives • Ensures consistent set of corporate guidelines • Delivers value out-of-the-box • A head-start for implementation • Based on best practices • Reduces implementation project time and risk • Improves project success rate • Accelerates time-to-value

28. Cognos Innovation Center Whitepapers Additional Resources For You: Continue your learning • Cognos Planning Analyst Model Building • Cognos Planning Contributor Application Administration • Cognos Planning Fast Track Get implementation assistance • Download the Cognos Solutions Implementation Methodology & roadmaps for BI, Migration & Conversion • Ensure success with services from Cognos Consulting Leverage additional customer resources • Proven Practices & other valuable Support resources

29. Key Principles • Structure and automate the process • Owned by Finance • Managed by IT • Adopt Best-Practices • Driver-based planning • Rolling Forecasts • Engage all the right people • Forecast frequently • Radiate Beyond Finance • Synchronize financial and operational plans • Performance Management for Strategy Execution • Link strategic objectives to the resource allocation process

30. Summary of Key Points • Improving performance management requires more than automating the existing planning, budgeting, and forecasting process • Leading companies are adopting best-practices and moving performance management beyond finance. • IBM Cognos can help you reduce the time and risk to drive greater business value.