1. © 2008 IBM Corporation Agility to transform your business with IBM Cognos 8 Mitka Avramova IM Sales, IBM Bulgaria SWG

2. 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. Session Objectives

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

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

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

7. Planning Processes What it isPrimary UseHorizon/FrequencyWho is Involved Strategic Plan: A disciplined effort to define fundamental decisions and actions that shape and guide an organizations future addressing what the organization is, what it does, and why it does it Define vision, SWOT, high level corporate goals and objectives and strategies for how to attain them Horizon: 3-5, sometimes 10 years Frequency: 1/year Corporate Execs Senior Mgmt. Strategy Finance Budget/ Annual Operating Plan: Projection of revenues, expenses and cash for a specified period of time. (1 st year of SP). Identifies targets, at the line of business, functional or cost center level Financial guide for the current year: control expenses, evaluate performance and determine bonus compensation Horizon: 1 year, across months, Qtrs, weeks Frequency: 1/year Infrequently updated Corporate Planning Line of Business Managers Cost Center managers Forecast: A period by period projection of either revenue or expense that considers actuals to date and any changes to market conditions Provides the most current estimates for the balance of the year/horizon Horizon: Balance of the year or Rolling week, month, quarter, Annual. Frequency: Refreshed often Corporate Planning Line of Business Managers Modeling: Process of developing models that characterize an organization allowing it to evaluate the impact of decisions to understand fully the financial impact What-If Analysis Acquisition modeling Scenario Analysis Define contingency plans Ad-hocCorporate Planning Strategy Sales/HR/IT Reporting: Collection, analysis, summarization and presentation of the financial performance of the business Comparison with actual Cause & effect Analysis Horizon: Various Frequency: Monthly, Qtrly, Annual, Ad-hoc Corporate Planning Reviewed at all levels

8. Financial Performance Management Challenges Spreadsheets Failing  “there have been well-documented cases of errors and losses resulting from spreadsheet manipulation errors and accidents.” Source: Gartner, August 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 ControllerTax / Treasury FP & A

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

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

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

12. IBM Cognos Solutions  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 8 Planning IBM Cognos TM1 Performance Blueprints

13. IBM Cognos Solutions for Enterprise Planning PLANS & FORECASTS Pre and Post-Planning Alternative hierarchies, Allocations, Reporting and Analysis Collaborative Plan & Forecast Emphasis on user experience; workflow; auditability and process control

14. Post-Planning Goal seeking, Allocations High Participation Plan & Forecast Pre-Planning Analytics Alternative hierarchies, trending ENTERPRISE PLANNING IBM Cognos 8 Planning and TM1

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

16. ENERGY PROFESSIONAL SERVICES CONSUMER GOODS FOOD & BEVERAGE TELECOMMUNICATIONSPUBLIC SECTOR CUSTOMERS USING COGNOS PLANNING TO ENABLE ENTERPRISE PLANNING

17. COGNOS PLANNING CUSTOMERS and THEIR PRIMARY DATA SOURCES Essbase

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

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

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

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

22. Enterprise Planning Performance 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 Project Planning  Discretionary Capital Expenditure  Initiative Planning Pre-configured solution building blocks that: Pool collective best-practice knowledge Accelerate time-to-value Increase project success rate WORKFORCE PLANNING SALES PLANNING & FORECASTING STRATEGIC FINANCIAL PLANNING & FORECASTING EXPENSE PLANNING & CONTROL CAPITAL EXPENDITURE PLANNING HUMAN RESOURCES SALESFINANCE OPERATIONS, MARKETING, ETC. Depreciation Expenses Reports  Income Statements Balance Sheet  Cash flow  Financial Ratios Cap Ex Operating Expenses Headcount & Compensation Expenses Revenue Plan Market Demand

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

24. Extend Enterprise Wide Continued Investment in Industry Blueprints 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 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. ADVANCE PERFORMANCE MANAGEMENT ADDRESS Initial Needs 1 AUTOMATION ---------------------------------- TRANSFORMATION ---------------------------- DRIVE Best Practices 2 EXTEND Enterprise- Wide 3 ADVANCE Performance Management 4 IBM Cognos Performance Management Platform Continuous Business Alignment Pervasive Performance Management Applications & Blueprints Access & Interactivity Universal Capabilities Business Modeling Performance Management Platform 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. 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 Cognos Innovation Center Whitepapers

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.