1. © 2010 IBM Corporation IBM Institute for Business Value Global Banking Industry Point of View

2. © 2010 IBM Corporation2CFO Study Banking Point of View 2003 The 2010 IBM CFO Study is the fourth edition since 2003 and builds upon our primary research from 2005 and 2008 CFO Studies Introduction 201020052008

3. © 2010 IBM Corporation3CFO Study Banking Point of View CFO Study 2010 key messages Leading Finance organizations are evolving to become Value Integrators and thereby more effective executing on their core Finance activities, monitoring business performance, driving the integration of information across the organization and managing enterprise risk. There are two capabilities that Value Integrators have focused on to improve their Finance effectiveness and contribute to enterprise outperformance. Finance execution excellence matters more than ever. CFOs that have more efficient Finance organizations are more successful at driving operational excellence. Finance organizations must also deliver value through analytics and business insight. Those that have strong business insight are helping drive greater value across their enterprises. By doing both well – executing core Finance activities efficiently and providing the insight their businesses need – Value Integrators are helping their enterprises make smarter decisions. Source: IBM Institute for Business Value, The Global CFO Study 2010 Introduction

4. © 2010 IBM Corporation4CFO Study Banking Point of View The Global CFO Study 2010 is the largest known CFO-level study of its kind with over 1,900 participants, 164 in Banking Geography Enterprise Size (US$) Title Scope of Role Asia Pacific, 29% EMEA, 42% Americas, 29% BU / Program Area, 10% Country, 34% Region, 7% Enterprise / Global, 49% Others, 11% SVP / Controller / Treasurer, 15% CFO / Deputy CFO / Director, 74% <=$500MM, 17% $501MM to $1B, 7% >$1B to $5B, 29% >$5B to $10B, 9% >$20B, 21% >$10B to $20B, 6% Banking CFO Study 2010 Firmographics N = 164 Source: IBM Institute for Business Value, The Global CFO Study 2010 Geography = Country of Company Headquarters 20% of participants were in the Financial Services industry, 164 in Banking. Introduction

5. © 2010 IBM Corporation5CFO Study Banking Point of View Our study was conducted at the height of the economic crises and comes to market as signs of a new economic environment emerge Introduction Source: IBM Institute for Business Value; Based on IMF Global Economic Outlook Sep. 2009, CPB Netherlands Bureau for Economic Policy Analysis 24 Dec. 2009, JP Morgan Global Manufacturing PMI (Jul 2006 – Dec. 2009)  Liquidity driven crises  Real estate bubble burst  Failure of collateralized debt obligations  Drop in global commerce  Cost reduction pressures  Rising unemployment  Drop in commodity values  Dramatic drop in consumer demand  Increased risk, volatility and uncertainty  Subdued growth  Continued cost pressures  Continued high un- employment  Reduced global commerce and demand  End-to-end stimulus and government hand in business  Sovereign debt concerns  Industry restructuring and consolidation  Continued uncertainty, elevated volatility and risk New Economic EnvironmentGlobal Financial Crises Economic Environment, Recent Past and Looking Forward Change in Industrial Production Mfg. Purchasing Manager’s Index Consumer Confidence Signs of Stability

6. © 2010 IBM Corporation6CFO Study Banking Point of View Source: The World Bank Global Development Finance 2009; Outlook summary; CFO Magazine, September 2009. Survey of 400 CFO’s: Finance Confronts the New Normal; Reuters Fri Sep 11, 2009 Fri Sep 11, 2009 - Walden Siew; Survey of 700 CPA’s: ERM Initiative at North Carolina State University in collaboration with AICPA Independent reports confirm global economic challenges have been severe and a new operating environment is unfolding “Several factors point to continued weakness. Unemployment continues to rise throughout the world, housing prices in many countries are still falling (adding to negative wealth effects), bank balance sheets are fragile, and much more consolidation and recapitalization required.” - World Bank, September, 2009 “A year after the collapse of investment bank Lehman Brothers, frozen credit markets are piecing themselves together again but the face of borrowing is dramatically different.” - Reuters September, 2009 “60% of CPAs believe the complexity of risks have changed “extensively” or a “great deal” in the last five years. 36% were caught off guard. 44% have no enterprise-wide risk management process, 43% do not require it and 75% indicate key risks are communicated on an ad hoc basis. ” - AICPA;AICPA Business Brief 05v1|2009 “88% of CFOs believe when the economic recovery takes hold, companies will ‘operate in a new environment.’” - CFO Magazine September, 2009 Introduction Impact of Global Economic Challenges

7. © 2010 IBM Corporation7CFO Study Banking Point of View This study examines how the CFO can make the enterprise smarter in an era of increased uncertainty Introduction Source: IBM Institute for Business Value, The Global CFO Study 2010 The impact of the New Economic Environment on the CFO’s role What can CFOs do to enable timely and informed decision-making? How can the CFO help the enterprise anticipate and shape its environment? ! ? ? What Finance model achieves the optimal mix of capabilities needed to outperform? ? CFO Study 2010 Provocative Topics

8. © 2010 IBM Corporation8CFO Study Banking Point of View Regulatory demands in the industry have put the “demand for external transparency” as the top challenge for Banking, ahead of “pressure to reduce cost base” Industry / Sector Changes Over the Next Three Years Banking N = 162 to 164; Global N = 1,844 to 1,905 Source: IBM Institute for Business Value, The Global CFO Study 2010 Introduction As a result of these factors, 66% of Banking Finance organizations believe that they have to make major changes to respond. Banking Global 69% 78% 74% 56% 61% 40% 85% 76% 70% 59% 58% 48%

9. © 2010 IBM Corporation9CFO Study Banking Point of View CFOs are taking a more prominent role as key enterprise-wide decision makers and enabling partners Elevated Role of Finance Role of Finance in Driving Decisions Across the Enterprise N = 161 to 164 Source: IBM Institute for Business Value, The Global CFO Study 2010 Introduction Banking Over 65% of Banking CFOs believe they have an advisory or decision making role on the enterprise agenda, especially around performance indicators. 91% 82% 81% 80% 75% 74% 70% 68% “The CFO function is becoming more and more critical in the current environment. Financial risk is increasing, transparency is becoming an issue, cost is a driving force. The role of the CFO is becoming more than a financial custodian…The CFO is an advisor to business; it’s a mix of control and advisory function.” CFO, European Bank

10. © 2010 IBM Corporation10CFO Study Banking Point of View N = 164 Source: IBM Institute for Business Value, The Global CFO Study 2010 28% 19% 4% 20% 28% Core Finance Enterprise Focused Similar to the Global results, in Banking, Finance also needs to improve its effectiveness in order to deliver on the enterprise agenda CFO Agenda: Importance vs. Effectiveness Gap Introduction Importance Effectiveness Driving integration of information across the enterprise Driving enterprise cost reduction Strengthening compliance programs and internal controls Driving Finance function cost reduction Executing continuous Finance process improvements Developing your people in the Finance organization 51%55%60%80%57%85%53%72%53%72%47% 75% 0%20%40%60%80%100% 26% Supporting / managing / mitigating enterprise risk 51% 77% 17% Providing inputs into enterprise strategy Measuring / monitoring business performance 67%84% 66% 83% Banking

11. © 2010 IBM Corporation11CFO Study Banking Point of View Supporting a broader enterprise focused role requires Banks to have core Finance efficiency and strong business insight Introduction Addressing the Broader Enterprise Focused Role of Finance Source: IBM Institute for Business Value, The Global CFO Study 2010 Finance Efficiency Business Insight Demands on Finance Help drive enterprise cost reduction Support risk management Partner in strategy and value creation Improve access to and reduce cost of capital Provide performance insight and anticipate Finance Capabilities Needed

12. © 2010 IBM Corporation12CFO Study Banking Point of View Analysis of CFO responses and objective enterprise financial measures identified enablers to deliver efficiency and insight Finance Efficiency and Business Insight Enablers Introduction LowHigh Corporate philosophy on information standards Common Finance data definitions and data governance Standard Financial chart of accounts Standard / common Finance processes Do not see any value in enterprise-wide standards Enterprise-wide standards mandated for all business units and enforced Not adoptedEnterprise-wide > 75% Not adoptedEnterprise-wide > 75% Not adoptedEnterprise-wide > 75% Enabler Analytical capability (operational planning and forecasting) 1 People / talent (effectiveness of developing people in Finance) Technology (deployment of a common planning platform) Not deployedSatisfactory analytical capability IneffectiveEffective people / talent Not deployedDeployed to a large extent Finance Efficiency Business Insight 1 Also analyzed Scenario Planning, Predictive Analytics Source: IBM Institute for Business Value, The Global CFO Study 2010

13. © 2010 IBM Corporation13CFO Study Banking Point of View Four Finance profiles emerge when considering capabilities on both dimensions. In Banking, on average, there are more Disciplined Operators and Value Integrators, compared to Global results Finance Profiles Banking N = 118; Global N = 1,478 Source: IBM Institute for Business Value, The Global CFO Study 2010 Introduction 26% banks 10% banks 38% banks 26% banks 23% 12% 32% 33%

14. © 2010 IBM Corporation14CFO Study Banking Point of View Value Integrators in the Banking industry outperform, on average, other Finance profiles Efficiency + Business Insight Contributes to Outperformance Revenue Growth: N =72; EBITDA: N = 58; ROIC: N = 73 Source: IBM Institute for Business Value, The Global CFO Study 2010 Introduction Value Integrators in Banking also have a more than 5% better operating efficiency ratio than all other banks. 67% better 25% better 50% better 5-year CAGR, 2004-2008 5-year average, 2004-2008 Value Integrators All other banks

15. © 2010 IBM Corporation15CFO Study Banking Point of View Three key themes emerged from examining the four profiles  Delivering efficiency through standards matters more than ever  Providing business insight drives performance improvement beyond Finance  The greatest rewards come from doing both well Themes Source: IBM Institute for Business Value, The Global CFO Study 2010 “We will constantly focus on the priorities of an enterprise-wide standard mandated for all business units.” CFO, German Bank “Driving consistent standards is a very high priority for Finance since it drives process simplicity and it aligns everyone operationally in a procedurally-focused environment.” CFO, United States Bank

16. © 2010 IBM Corporation16CFO Study Banking Point of View Finance organizations in Banking struggle with structural complexity issues related to automation and standards Banking N=162; N=118; N=160; N=160; Global N=1,895; N=1,478; N=1,892; N=1,888 Source: IBM Institute for Business Value, The Global CFO Study 2010 Efficiency through standards Efficiency Challenges “…the quality of the existing management information should be enhanced and improved. Too many spreadsheets and handwork.” CFO, Netherlands Bank Banking Global

17. © 2010 IBM Corporation17CFO Study Banking Point of View IBM’s CFO Study 2008 revealed that enterprises with Integrated Finance Organizations outperformed due to enterprise-wide standards Integrated Finance Organizations and the Finance Profiles Efficiency through standards Efficiency Business Insight LowHigh Low High Source: IBM Institute for Business Value, The Global CFO Study 2010 Integrated Finance Organizations Corporate philosophy on Information standards - mandated and enforced Strict adherence to common Finance data definitions and data governance – enterprise-wide Implemented a standard Financial chart of accounts – enterprise-wide Use of standard / common Finance processes - enterprise-wide

18. © 2010 IBM Corporation18CFO Study Banking Point of View Finance Efficiency Contributes to Financial Outperformance Revenue Growth: N = 102; EBITDA: N = 89; ROIC: N =104 Source: IBM Institute for Business Value, The Global CFO Study 2010 Efficiency through standards Enterprises with high Finance efficiency All other enterprises Return on Invested Capital 5 Year Average (2004-2008) Revenue Growth 5 Year CAGR (2004-2008) EBITDA 5 Year CAGR (2004-2008) Banking Banks with high Finance efficiency are rewarded financially

19. © 2010 IBM Corporation19CFO Study Banking Point of View Effectiveness Benefits of Finance Efficiency Banks that have adopted standards and increased Finance efficiency are performing better Efficiency through standards Finance Efficiency Helps the Enterprise React to External Forces Banking N=163 Source: IBM Institute for Business Value, The Global CFO Study 2010 Banking Global % Better 19% % Better 8% Global N = 1,886

20. © 2010 IBM Corporation20CFO Study Banking Point of View Accelerator #1: Process Ownership Banking N = 159 Source: IBM Institute for Business Value, The Global CFO Study 2010 % More 133% Efficiency through standards Banks that establish process ownership are far more likely to achieve the standards that enable Finance efficiency Adoption of Process Ownership % More 145% “Centralization of management information is important to gain oversight. Finance is owning the Master Data Management definitions” CFO, Netherlands Bank “Half of the breakdowns occur in Finance because of a lack of ownership. Successful Finance functions need to constantly ensure staff are clear on accountability and roles and responsibilities” CFO, United States Bank Banking Global Global N = 1,870

21. © 2010 IBM Corporation21CFO Study Banking Point of View A common ledger platform drives a greater adoption of standards, and in banking this holds true even more Accelerator #2: Common Ledger and Accounting Transaction Applications Banking N = 160 Source: IBM Institute for Business Value, The Global CFO Study 2010 % More 71% Efficiency through standards Implementation of a Common Ledger and Accounting Transaction Applications % More 47% While a significant number of Finance organizations have implemented a common platform, there remains a number of challenges still to be tackled including improving data quality and enterprise data integration. Banking Global Global N = 1,875

22. © 2010 IBM Corporation22CFO Study Banking Point of View Alternative delivery models enforce the adoption of standards Accelerator #3: Alternative Delivery Models for Transactional Activities % More 49% Enterprise-wide Shared Services / Centers of Excellence or Outsourcing Adoption Efficiency through standards Banking N = 164 Source: IBM Institute for Business Value, The Global CFO Study 2010 % More 69% “We have put shared service centers and centers of excellence at the point of greatest efficiency” CFO, United States Bank “…reorganize to a central shared services model with client facing Finance supporting the business units…” CFO, Canadian Bank Banking Global Global N = 1,892

23. © 2010 IBM Corporation23CFO Study Banking Point of View Three key themes emerged from examining the four profiles  Delivering efficiency through standards matters more than ever  Providing business insight drives performance improvement beyond Finance  The greatest rewards come from doing both well Themes Source: IBM Institute for Business Value, The Global CFO Study 2010 “Measuring and monitoring the business is seen as the most important area of responsibility since controls and risk are considered inherent to the Finance department.” CFO, Swiss Bank “Business analytics will become more important to us in the next three years.” CFO, Australian Bank

24. © 2010 IBM Corporation24CFO Study Banking Point of View Rear ViewForward-Looking View The following are examples of business insight from rear view to forward-looking view Source: IBM Institute for Business Value, The Global CFO Study 2010 Business Insight Business insight What happened? How many, how often? Where exactly is the problem? Why is this happening? What actions are needed? What will happen next? What if these trends continue? What are the risks or opportunities? Key Business Questions Examples of Business Insight Current View Balance sheet, profit and loss, and cash flow statements Revenue and cost variance analysis Customer, product and market profitability Spend optimization Working capital analysis Market, customer and channel pricing Sales and supply chain effectiveness Cash forecasting Scenario-based planning and forecasting Strategic investment decision support Volatility and risk-based predictive and behavioral modeling

25. © 2010 IBM Corporation25CFO Study Banking Point of View In Banking, there are challenges to effectively delivering business insights due, again, to structural complexity Banking N=160; N=118; N=160; N=163; Global N=1,889; N=1,466; N=1,864; N=1,903 Source: IBM Institute for Business Value, The Global CFO Study 2010 Business insight Business Insight Challenges Banking Global

26. © 2010 IBM Corporation26CFO Study Banking Point of View Most objective financial data validates that decision making supported by business insight contributes to enterprise outperformance Business Insight Contributes to Financial Outperformance Revenue Growth: N =72; EBITDA: N = 58; ROIC: N = 73 Source: IBM Institute for Business Value, The Global CFO Study 2010 Business insight Finance organizations with strong business insight All other enterprises Return on Invested Capital 5 Year Average (2004-2008) Revenue Growth 5 Year CAGR (2004-2008) EBITDA 5 Year CAGR (2004-2008) Banking

27. © 2010 IBM Corporation27CFO Study Banking Point of View Effectiveness Benefits of Business Insight Finance organizations with strong business insight are performing better Business insight Business Insight Helps the Enterprise Anticipate External Forces Banking N = 117 Source: IBM Institute for Business Value, The Global CFO Study 2010 % Better 25% Global N = 1,471 % Better 39% Banking Global

28. © 2010 IBM Corporation28CFO Study Banking Point of View Finance organizations with business insight have automated production of financial metrics, which facilitates faster and more efficient insight Accelerator #1: Timely Metrics Business insight Impact on Analytics Satisfaction High Automation % More 54% Financial Metrics % Better 78% Banking % More 28% Financial Metrics % Better 29% Global Banking N = 116; Global N = 1,463 Source: IBM Institute for Business Value, The Global CFO Study 2010 Banking: N = 116; Global N = 1,454 Global N = 1,454

29. © 2010 IBM Corporation29CFO Study Banking Point of View Finance organizations with business insight have automated production of operational metrics, which facilitates faster and more efficient insight Accelerator #1: Timely Metrics Business insight Banking N = 114; Global N = 1,435 Source: IBM Institute for Business Value, The Global CFO Study 2010 Banking N = 114; Global N = 1,428 Impact on Analytics Satisfaction High Automation % More 67% Operational Metrics % Better 23% Banking % More 42% Operational Metrics % Better 39% Global

30. © 2010 IBM Corporation30CFO Study Banking Point of View Finance organizations with business insight establish operational data standards, providing insight based on a common “truth.” In Banking, on average, there are more challenges in defining non- financial data standards, compared to Global results Accelerator #2: Establishment of Non-Financial Data Standards Business insight % More 14% High Adoption of Non-Financial Data Standards Global N = 1,449 Banking N = 114 Source: IBM Institute for Business Value, The Global CFO Study 2010 Banking Global % More 51% “We are very strict on financial information and it is from a single source. We use a warehouse concept to control data definition and request for information enterprise-wide” CFO, Australian Bank “Enterprise data warehouse build will enforce single source of the truth.” CFO, Australian Bank

31. © 2010 IBM Corporation31CFO Study Banking Point of View Three key themes emerged from examining the four profiles  Delivering efficiency through standards matters more than ever  Providing business insight drives performance improvement beyond Finance  The greatest rewards come from doing both well Themes Source: IBM Institute for Business Value, The Global CFO Study 2010 “The CFO can influence the organization and is increasingly important and involved in strategic direction…need to have integrated financial information for decision making.” CFO, South Africa Bank “Near real-time planning / forecasting functionality is becoming essential.” CFO, UK Bank

32. © 2010 IBM Corporation32CFO Study Banking Point of View Value Integrators in Banking outperform, on average, other banks in Revenue Growth and EBITDA Efficiency + Business Insight Contributes to Outperformance Revenue Growth: N = 72; EBITDA: N = 58; ROIC: N = 73 Source: IBM Institute for Business Value, The Global CFO Study 2010 Efficiency + Business insight Value Integrators also have a more than 5% better operating efficiency ratio than all other companies examined. Return on Invested Capital 5-year average, 2004-2008 Revenue Growth 5-year CAGR, 2004-2008 EBITDA 5-year CAGR, 2004-2008 Finance Efficiency Business Insight 15.6% 18.2% 11.8%18.0% 10.8% 14.7% 6.8%4.5% Business Insight 5.3% 9.8% 4.4% 8.4%

33. © 2010 IBM Corporation33CFO Study Banking Point of View Value Integrators are more effective across the entire CFO Agenda N = 1,454 to 1,469 Source: IBM Institute for Business Value, The Global CFO Study 2008, 2010 Efficiency + Business insight Effectiveness Across the Full CFO Agenda Driving integration of information across the enterprise Providing inputs into enterprise strategy Supporting / managing / mitigating enterprise risk Value Integrators Driving enterprise cost reduction Strengthening compliance programs and internal controls Driving Finance function cost reduction Executing continuous Finance process improvements Developing your people in the Finance organization Measuring / monitoring business performance Percent more effective than baseline 140%100%80%60%0%20%40% Disciplined Operators 19% Better Constrained Advisors 33% Better Value Integrators 59% Better Scorekeepers (Baseline) 0% 120% Constrained Advisors Disciplined Operators Scorekeepers Global

34. © 2010 IBM Corporation34CFO Study Banking Point of View Value Integrators drive broader improvements in data and analytics, process, technology and people What Do Value Integrators Do Differently? Source: IBM Institute for Business Value, The Global CFO Study 2010 Efficiency + Business insight Data and Analytics Process Technology Improve information delivery Drive data integrity Use different approaches to help the enterprise make decisions Focus on next tier process improvements Rationalize and standardize analytical technologies People Drive risk management through CFO direct reports of Controls and Risk Management

35. © 2010 IBM Corporation35CFO Study Banking Point of View Value Integrators drive broader improvements in data and analytics, process, technology and people N = 112 to 115 Source: IBM Institute for Business Value, The Global CFO Study 2008, 2010 Efficiency + Business insight Streamlined information delivery Value Integrators Percent adopted 100%80%60%20%40% Constrained Advisors Disciplined Operators Electronic data capture at the source Systematic data cleansing and auditing Business risks in performance reporting Utilized automated workflow tools Measurement & monitoring of processes Common reporting platform Common planning platform What Do Value Integrators in Banking Do Differently? % More 74% 16% 75% 11% 54% 43% 50% 0% 8%

36. © 2010 IBM Corporation36CFO Study Banking Point of View People are the essential enabler in all Finance teams. Significant attention is devoted to enhancing analytical and insight skills Efficiency + Business insight Source: IBM Institute for Business Value, The Global CFO Study 2010 People: Imperatives for Building the Finance Team #1 Attract and retain the right talent #2 Provide business analytics and insights training #3 Develop leadership skills “Performance management will be more effective if the competencies of Finance staff will be strengthened by more communication and advisory skills… growth in decision support by developing the competencies of staff.” CFO, Netherlands Bank “Talent management is a big factor for us. Ensuring that talent can grow with the business. Learning capabilities are needed to be sure to advance the organization.” CFO, Jamaica Bank “In our transformation of Finance, we find talent management the most critical item.” CFO, Canadian Bank

37. © 2010 IBM Corporation37CFO Study Banking Point of View Being a Value Creator: The Path Forward The Path Forward

38. © 2010 IBM Corporation38CFO Study Banking Point of View Source: IBM Institute for Business Value, The Global CFO Study 2010 The Path Forward Paths to Higher Value CFOs aspiring to evolve their Finance Model to higher capability should address performance gaps with specific action plans Finance Efficiency Business Insight LowHigh Low High Value Integrators can maintain their advantage through a program of continuous improvement to sustain capabilities and value Constrained Advisors have good business insight, constrained by structural complexity, therefore address process and data standards to improve efficiency, accuracy and speed High efficiency enabled by process and Finance data standards suggests Disciplined Operators focus on maturing business insight and partnering capabilities Scorekeepers can attempt a direct path to become Value Integrators. This will involve establishing Finance efficiency while simultaneously building business insight capabilities. Alternatively, a staged approach can also be done

39. © 2010 IBM Corporation39CFO Study Banking Point of View The Scorekeeper is characterized by low efficiency and business insight capabilities, suggesting three possible paths Source: IBM Institute for Business Value, The Global CFO Study 2010 The Path Forward With the proper mandate, sufficient resources and executive support, Scorekeepers should consider simultaneously addressing efficiency and business insight capabilities. Alternatively, a staged approach would suggest 1) addressing a Process and Data Standards foundation (efficiency first), then leveraging that to deploy improved business insight capabilities next or 2) addressing business insight capabilities first and then follow with standards Suggested Focus Areas Findings: Scorekeepers lack the standards that are foundational and essential to excel in either Core Finance or Enterprise-Focused activities –Establish process owners and drive to process commonality –Benchmark processes to identify underperforming areas and redesign –Establish and enforce Finance data standards, as broadly as possible –Rationalize and deploy a common Finance technology platform –Increase automation of data acquisition and integration –Drive error processing and reconciliation functions close to the source –Consider accelerating the journey with less risk and cost by migrating to an established and proven platform –Build upon improved Core Finance infrastructure to deploy leading analytical capabilities

40. © 2010 IBM Corporation40CFO Study Banking Point of View The Constrained Advisor has low efficiency and high business insight, so the focus should be on standards and efficiency Source: IBM Institute for Business Value, The Global CFO Study 2010 The Path Forward Current inefficiency may be making analytic support difficult & complex for Constrained Advisors. Addressing structural complexity inherent in Finance can help improve efficiency, timeliness and integrity of analysis. Suggested Focus Areas Findings: Constrained Advisors have advanced their analytical capabilities without addressing standards that improve speed, efficiency and reliability –Establish process owners for core Finance and decision support processes –Target core Finance processes to improve efficiency and speed –Drive data standards for financial and operational metrics and analysis models –Leverage commonality to automate more with technology

41. © 2010 IBM Corporation41CFO Study Banking Point of View The Disciplined Operator is characterized by high efficiency but low business insight, so the focus should be on business insight Source: IBM Institute for Business Value, The Global CFO Study 2010 The Path Forward Building upon a solid foundation of Finance efficiency, Disciplined Operators can concentrate on developing the high-value skills and tools required to provide forward-looking analytical support to the business. With their fiduciary and reporting responsibilities demanding less executive attention, they can invest more effort in becoming Value Integrators. Suggested Focus Areas Findings: Disciplined Operators have more advanced Core Finance capabilities and are positioned to leverage a foundation of standards to deploy analytics –Apply process ownership and standards to decision support processes –Apply data ownership and standards to analytical data and operational metrics –Attract and retain higher order talent and deploy decision support COEs –Drive commonality into the decision support technology platform –Deploy advanced analytical models such as predictive modeling as deeply into operational systems as feasible

42. © 2010 IBM Corporation42CFO Study Banking Point of View The Value Integrator is characterized by both high efficiency and business insight capabilities, so the focus should be on “sustaining” Source: IBM Institute for Business Value, The Global CFO Study 2010 The Path Forward Value Integrators have achieved the requisite balance of efficiency and business insight to effectively partner on Enterprise-Focused activities. Suggested Focus Areas Findings: Value Integrators can maintain their advantage through a program of continuous improvement to sustain capabilities and value –Adopt a continuous improvement program to sustain and expand current capabilities –Deploy a robust governance and succession program for process and data management –Increase focus on attracting and retaining talent –Expand focus on value creation analysis to drive further performance improvements –Protect from downside performance by embedding risk into performance analytics –Embed risk measures and predictive analytics into operational systems and processes

43. © 2010 IBM Corporation43CFO Study Banking Point of View Conclusions They have implemented common process and data standards across their organizations to increase speed and curtail reconciliation and duplication. With reliable, integrated information as their springboard, they have also developed the talent, technology and analytical capabilities to proactively uncover and communicate business insight. By executing their core financial activities efficiently and providing the insight their businesses so desperately need, Value Integrators are helping their enterprises make smarter decisions. Value Integrators How can the CFO help the enterprise anticipate and shape its environment? What can CFOs do to enable timely and informed decision-making? What Finance model achieves the optimal mix of capabilities needed to outperform? Finance EfficiencyBusiness Insight How can you increase the effectiveness of Finance to satisfy rising expectations? How do you drive the integration of information across the enterprise? How do you control costs and improve productivity? How do you ensure data integrity to produce valid insights? Do you have the business insight to drive performance improvement beyond Finance? Does your Finance organization have the talent to provide forward-looking insight? The CFO Study reveals that Value Integrators provide compelling insights into how the CFO can make the enterprise smarter in an era of increased uncertainty