Once again, IOD offers an abundance of learning opportunities to help you increase your product knowledge, sharpen your professional skills and get the information you need to solve problems or move your project forward. I've scanned the Business Analytics Forum Guide (BA Forum being a major component of IOD 2011) to highlight 10 ways you can come back from Vegas much better equipped to turn insight into action. Some of the opportunities are located in the EXPO, others are breakout sessions that you'll need to schedule in your Agenda Builder.
1. Play in the Usability Sandbox: Share your experience to shape product direction. Test-drive new prototypes and meet with our usability experts in small-group design review and feedback sessions. You'll also have the chance to vote on and prioritize use requirements. This year's sessions include Dashboarding (BGN-1545), Mobile BI (BGN-1549). Advanced Data Modeling (BGN-1550) and Social Networking Analytics (BGN-1554). See page 67 of the Business Analytics Forum Guide for a full list.
2. Learn to better navigate IBM Support: New
this year, our "Navigating IBM" drop-in area lets you talk one-on-one
with subject matter experts who can guide you through the programs,
processes, policies and systems you need to use for Support and
Training. We've geared these sessions to focus on increasing your
satisfaction with demonstrations and discussions focused on online
support and knowledge resources, searching and enrolling in training,
Web IDs and IBM Customer Numbers (ICNs) and using the support request
tool. You'll find it in the EXPO.
3. Drop in on our Demo Theaters: These
30-minute sessions help you lean more about topics that might not be
covered in full breakout sessions. Join our product managers as they guide you through new solutions and little-known
product features in IBM Cognos 10, IBM Cognos TM1, IBM SPSS Decision
Management and more.
4. Labs! Labs! Labs!
Our Hands-on Labs feature experienced professional instructors providing classroom-quality training. Each three-hour session takes you on a deep dive directly into a specific product to give you a greater understanding of its features and potential. Many of the nearly 20 sessions at this year's event were suggested by last year's attendees. Titles include Foundations of Predictive Analytics: IBM SPSS Statistics (BGN-3469), New Self-Serve Reporting Capabilities in IBM Cognos BI (BGN-3632) and Advanced Generated SQL Concepts and Complex Queries (BGN-3696). See page 63 of your Business Analytics Forum Guide for the full list and be sure to add these sessions to your Agenda Builder.
Our Products Lab lets you test drive our products at your own pace and on your own schedule with step-by-step instructions and direct input from product experts who are always on-hand. You'll find it in the EXPO and you can drop in any time.
Also in the EXPO, our Services and Education Lab lets you explore our training options, discover our new new approaches and work one-on-one with our consulting services team. Discover how to share your knowledge with your team back home with Web-based training courses, self-paced virtual classroom options, IBM Cognos embedded learning videos and instructor-led online training. Drop in whenever, no need to book.
5. Take advantage of pre-conference training: Get a head start on the conference with two full days of hands-on training specially priced for Forum attendees. This year's sessions include Professional Report Authoring (B51C9), Automated Data Mining (0ACG2), Data Management and Manipulation (0G5C9) and Authoring Reports with Multidimensional Data (B51C1). See page 18 of your Forum Guide for more.
6. Get certified for free: Save up to $600 by taking three IBM Software Certification exams at no charge, and take as many more as you'd like for 50 percent off the normal fee. Certification exams are available throughout the conference and a full list of certification exams is available here.
7. Boost your business leadership skills in our Business Leadership Forum: An industry-specific program for executives, managers and decision-makers. We've put together a rich curriculum of customer case studies, panel discussions and industry solution overviews focused on resolving key business challenges. Choose from 34 sessions exploring operational efficiency, customer and financial analytics, risk and compliance. Session titles include "How Banks Can Improve Customer-Centricity with Advanced Customer Customer Profitability Analytics" (LFM-2609), "Driving B2B Sales with Predictive Analytics" (LSA-2268), "Fighting Fraud in Government Services" (LGV-1999) and "Getting Business Value from IBM Watson" (LSA-3008). See page 54 of your Forum Guide for a full list.
8. Have lunch with your peers: Our "Birds of a Feather" lunches let you discuss your challenges, strategies and successes with people just like you in a relaxed and informal setting. This year's topics include BI and Cloud Computing, Professional Report Authoring, Predictive Analytics, Statistics and Support. Our Industry Lunches let you discuss the challenges you're facing and the strategies you're using to resolve them. Whether you're in Banking, Retail, Healthcare or Manufacturing, these lunches are also a great way to reconnect with friends and expand your network with new contacts.
9. Talk to Support: Schedule time with an IBM Cognos or SPSS technical product expert for 30 minutes of one-on-one attention to resolve your toughest technical challenges. These experts have deep expertise within and across our Business Analytics product portfolio, so nothing is off-limits. Just be sure to indicate the issue and/or product you'd like to discuss. Previous topics have included Integrating BI with Active Directory authentication, Recommendations for fail-over while building cubes and Predictive modeling tips, techniques and best practices.
10. Schedule a workshop: This year's event offers a wide range of in-person and interactive workshops. You'll work in small groups with experienced IBM subject matter experts to boost your Analytics Quotient (BAW-3805), explore a Business Intelligence Competency Center (BAW-3808), or become a Value Integrator in Finance (BAW-3807). A full list is on page 60 of your Forum Guide.
Organizational design around business intelligence and business analytics has been evolving over the last few years. We have seen many different types of formations and naming conventions around the business intelligence competency center (BICC), the Business Analytics Center of Practice, the Center of Excellence. They may be virtual or structured. They may report to the CIO, CFO, the CEO or a line of business. However, in a recent survey by the Business Applications Research Center, it has been found that organizations who have this formation in their organization outperform in every area that was measured.
And, regardless of the exact details of how it is configured, it appears that the most successful design is when there is both a shared service center and a larger community of stakeholders that keep in regular communication. Perhaps is it a Business Analytics Community of Excellence? We would love to share thoughts, organizational design ideas and best practices in this area. How is your organization currently structured for success?
entering the cockpit of a modern jet airplane and seeing only a single
instrument there. How would you feel about boarding the plane after the
following conversation with the pilot?
Q: I’m surprised to see you operating a plane with only a single instrument. What does it measure?
A: Airspeed. I’m really working on airspeed this flight.
Q: That’s good. Airspeed certainly seems important. But what about altitude. Wouldn’t an altimeter be helpful?
A: I worked on altitude for the last few flights and I’ve gotten pretty
good on it. Now I have to concentrate on proper air speed.
Q: But I notice you don’t even have a fuel gauge. Wouldn’t that be useful?
A: You’re right. Fuel is significant but I can’t concentrate on doing
too many things well at the same time. So on this flight I’m focusing on
air speed. Once I get to be excellent at air speed, as well as
altitude, I intend to concentrate on fuel consumption on the next set of
We suspect you wouldn’t board the plane after this discussion. Even
if the pilot did an exceptional job on air speed, you would be worried
about colliding with tall mountains or running low on fuel. Clearly,
such a conversation is a fantasy since no pilot would dream of guiding a
complex vehicle like a jet airplane through crowded airspace.
This is an often cited story by many business strategists and other
management prognosticators which I will attribute to Drs. David Norton
and Robert Kaplan, pioneers of the Balanced Scorecard. It’s intended to
reflect how critical the actual indicators are that we setup for not
only pilots but also the indicators by which you establish for your
entire workforce because these indicators will serve as the guiding
force behind their decision-making.
Why is this so important? Well, many reasons starting with the
business environment has substantially changed where no longer can a
company operate rudderless without a core set of metrics to steer each
of its employees individually and as a collective unit in the right
direction. That right direction is the enterprise strategy. The speed
at which these decisions are being made seem to have increased
exponentially in just in the past 5 years. The days of top-down,
command-and-control authority over decision-making are far from over in
deference to a more nimble, decentralized execution hierarchy intended
on keeping pace with the velocity of the related competition and
customer expectations. The need for getting relevant and actionable
information to the business users has never been more pronounced than
we’re seeing today. If you can’t react fast enough to the market
realities your customers will go elsewhere. We live in a world where
product or brand loyalties are becoming more and more a thing of the
past. It’s about execution. Good execution is about making smarter,
more informed decisions that support the organization’s goals.
These decisions being made are happening across all levels,
geographies, and functional areas of the business everyday. For this
post I want to zero in on the first question asked which falls under
measuring and monitoring the business. This question is, how are we
the executive suite is constantly measuring and monitoring overall
business performance to ensure the company is on track to meet its
strategic targets. In addition, the function leads in marketing, sales,
finance, HR, and development all the way down to the individual
contributor levels of the organization are measuring and monitoring the
performance of their area of the business too. But how does everyone
know they’re doing the right things at all times? What are their real
priorities helping the organization achieve its goals? Is it
guesswork? Is it trust-based that the entire workforce is going to
naturally make the right decisions supporting top-line goals? How can
we be so sure?
This fictional story referenced at the beginning of this post is
really about measuring and monitoring – not an aircraft – but your
business thru a tool called a scorecard.
There are personal, departmental, and enterprise scorecards. A
scorecard includes the key performance indicators, or KPIs, for which,
in the case of a personal scorecard, an employee is responsible which,
if these KPIs are correctly defined, would include measurements that,
when looked at in aggregate, support the enterprise’s top-line strategic
goals and objectives. Inevitably, there will be shared targets for some
of the KPIs in a personal scorecard either within a specific functional
area of the business (Think Marketing Director/Marketing Associate
having similar campaign targets) or as shared KPIs across functional
groups like marketing, sales, procurement, and development/manufacturing
for something like overall corporate sales targets. To illustrate what
I mean, if the organization has a revenue target of 15% annual growth
each of these functions might also have the 15% target in their KPIs.
Of course alone none of these groups is solely responsible for achieving
that total growth target but this enterprise target is still one of
their KPI’s. This shared goals can incent these groups to work more
closely together given that it’s mutually beneficial for these teams to
work together because they’re all needed to make this corporate goal.
Also, there are typically individual KPIs for their own controllable
element of that 15% growth figure that might apply. Sales will play a
role in this 15% growth target by needing to make actual sales to
existing and new customers accounts; Marketing is also integral because
they will have to generate enough pipeline to contribute to those sales
figures; Procurement will need to make sure the appropriate amount of
labor, materials and supplies are available to produce enough product;
and, Development/Manufacturing will need to have enough finished product
ready for shipping in time to meet these customer demands. Each of
these functions and the people working within these functions would also
have their own more specific KPIs that outline what their required
contribution is to achieve this top-line revenue growth goal that will
typically be measured within the respective functions too. Make sense?
actual KPIs – typically there’s about 6-10 for each individual – are
critical because they will define the actions taken by the individual
for which they’re responsible. The ultimate alignment via scorecards
composed of KPIs across these business groups, departments, divisions,
business units, etc. is the embodiment of what we call a company’s
strategy execution framework.
Harvard Business School having done a study on this framework found
that, “a 35% increase in Strategy Execution leads to 30% gain in
shareholder value”. That’s a pretty strong argument for at least taking
a harder look at it.
How do you deploy such a framework, you ask? Well, in theory it’s
very simple. You just translate the business strategy and its related
goals into a set of performance indicators that outline the targets for
which each department and employee within each department are
responsible and away you go, right? Yes, I know. It sounds easy in
theory. But, in practice it’s a little more work.
The key is working top-down with each business and support unit area
to translate their contribution towards meeting these higher level
targets so that these lower-level, cascaded measurements, or KPIs, will,
when rolled up in total, directly tie to the top-level enterprise’s
strategic goals. This ensures proper alignment of the organization
while providing an ongoing set of metrics by which the workforce can
Even more important in defining the right KPIs is the understanding
that whatever the indicators are, this will determine the individual’s
behavior so take care as you define these. Something else that makes
this framework so effective is that it makes it that much easier to
reset the workforce when those top-level strategies change. the
infrastructure is in place to restructure the scorecards. This allows
the company to adapt more quickly.
Think about deploying such a framework for your organization. The
best incentive I can give you for taking on this effort is that going
through the KPI definition process for each set of scorecards it forces
discussions across functions, within departments and at the executive
level that will expose how achievable these targets really are with the
current resources in place today and who is ultimately responsible for
what. This is just about the most important exercise I think a company
can go through to make sure it’s not setting itself up for failure
because its strategy isn’t attainable given the resources currently in
place. Once this KPI definition process is complete and everyone knows
who’s doing what and where the synergies lye it’s all about execution.
This framework sets companies up to execute well because they’ve already
identified their needs and resources at their disposal and now it’s a
matter of delivering. It’s go time.
If done right this will be the outcome for your organization:
Workforce is engaged in this process arguing the questions about
what the targets are, how to achieve these targets, searching out
solutions, debating resource needs and actions, and reaching specific
and practical conclusions.
Ultimate enterprise-wide agreement is made on the KPIs where
everyone agrees on their commitments for getting things done and accepts
Given the share and collaborative ownership of some KPIs, processes
are more tightly linked to one another, not compartmentalized among
Through this exercise the strategy takes account of people and
operational realities. Through the debates and bartering between
managers, directors, executives within and across functional areas, an
enlightened awareness of what everyone is responsible for and whether or
not they have the resources to accomplish it is realized and addressed.
People are chosen and promoted in light of strategic and operational plans.
Operations are linked to strategic goals and human capacities.
Most important, the leader of the business and his or her leadership
team are deeply engaged in the People, Strategy and Operational
processes – not just the strategic planning or the HR or finance staffs.
Lastly, this serves to expose gaps in execution levels and important resource needs.
More coming on this subject. Stay tuned. In my next post I’ll tell
you some of the best practices in defining the right KPIs for personal
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1. Before saving the websheet, make sure Excel calculation mode is set to ‘Manual’.
2. Delete all Rows and Columns beyond the last used cell before saving. Excel does not do a good job in cleaning up and there is no point having web render more than it needs to. Use Excel’s Go To Last Cell feature to find the last used cell. If the Last Cell includes empty rows and columns, delete the unused ones.
3. Use the subsets in the view when creating the Activeform, especially on the rows. This will eliminate the need for Active Form to insert a hidden sheet with the element names.
4. Delete any Named references with #Ref in them, do an Excel find to see if there are any #Ref in cell formula, check for external links and change/delete
5. Keep SUBNM formula to a minimum
6. Dynamic subsets puts a lock on the cubes which the dimension is part of. Use MDX instead.
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One summer’s day, a rooster scoured the barnyard looking for food. As he scratched the straw on the ground he uncovered a jewel. The rooster suspected the jewel might be valuable because of the way it glittered in the sun.
“The object is probably worth a lot”, the rooster thought to himself, “but I’d trade a bushel of these shiny things for a single kernel of corn.”
The primary moral, of course, is that beauty is in the eye of the beholder. …But, there’s something else to be learned from Aesop’s fable. What would have happened if the rooster had seen the bigger picture beyond his simple need for a little sustenance? He certainly would have known that the jewel could fetch much more than, “a single kernel of corn.” Because he lacked access to basic facilitators from which to discuss this discovery not much was to be gained from it. Imagine if he had collaborative access to his peers, including perhaps more wise and worldly roosters and hens with greater influence and relationships with other rooster groups, large villages, or other rooster- or hen-run businesses? If so, he might have been able to draw greater value out of this discovery. Workgroups could have been quickly setup to weigh options and determine how best to use this newfound resource. One might learn through this group involvement that the ‘jewel’ should be invested for a later date when times are not as prosperous? Maybe it could be used to purchase new equipment to update the existing company’s plant & equipment or analytics technology? Maybe it could be used in smaller bits to payoff the dreaded fox community to keep them at bay from invading the sanctity of their henhouse?
Because the enabled collaboration and feedback mechanism didn’t exist the Rooster was willing to settle for the hear-and-now need. Only he benefitted from this, not the other roosters and hens or the local community. Unfortunately, it only solved an isolated need and wasn’t effectively exploited.
This scenario is obviously entirely made up but there’s a great degree of truth in it, especially how it can impact a business enterprise. Look, ‘jewels’ exist in every organization. They don’t always make themselves known. Basically, good ideas don’t only come from the top. Or, “there isn’t a monopoly on ideas coming from only the executive suite.” They come from all over the business and can have high- or low-impacting repercussions: good and bad, that is. It’s what happens with these ideas after they’re learned that matters. A collaborative platform for wide participation in enterprise planning, budgeting and forecasting is the enabler that can take those jewels and turn them into something far more valuable that can benefit the entire organization. The key is capturing this information so that it can be acted on. Missed opportunities happen in business all the time. The individual contributors, managers, directors, and even vice presidents not to mention the C-level executives all have insights and performance-impacting contributions that can benefit the organization. But unbeknownst to the executive team, these ideas and insights into the business get lost unless there’s a channel in place for that feedback to be captured or heard.
We know the workforce is filled with employees’ great ideas; McDonald’s Big Mac Sandwich, 3M’s Post-It Notes, Sony’s Walkman, and Dunkin’ Donuts’ Munchkins are just some big-bang examples. All over the organization there’s cost savings and process efficiencies (streamlining order-to-cash), growth opportunities (expanding into new markets and product lines), and a risk awareness (unforeseen commodity/raw material price changes) that front-line employees, middle management, and even back-office workers have visibility into that necessitate a feedback loop so they are captured and acted upon.
and its planning, budgeting, and forecasting capabilities not to mention analytics power can promptly facilitate the ideas exchange process through managed contributions and enterprise-scale input and high-powered analytics with enabled comments facilitates best practices and the enterprise wide collaboration necessary to drive, monitor, and understand the business better.
A multidimensional, 64-bit, in-memory OLAP engine providesexceptionally fast performance for analyzing complex and sophisticated models, large data sets and even streamed data.
A full range of enterprise planning software requirements is supported—from high-performance, on-demand profitability analysis, financial analytics and flexible modeling to enterprise-wide contribution from all business units.
Personal scenarios created with advanced personalization enable an unlimited number of ad-hoc alternatives so individuals, teams, divisions and whole companies can respond faster to changing conditions.
Best practices suc
h as driver-based planning and rolling forecasting can become part of your enterprise planning process.
Model design and data access adapt to your business process and present business information in familiar formats.
Managed contribution makes it possible to assemble and deploy planning solutions for your enterprise and collect input from systems and staff from all divisions and locations, quickly consistently and automatically.
Integrated scorecarding and reporting— the complete picture from goal setting and planning, to measuring progress and reporting—is possible with IBM Cognos Business Intelligence.
Total control over planning, budgeting and forecasting processes is provided to Finance and lines of business.
A choice of interfaces—Microsoft® Excel®, Cognos TM1 Web and the Cognos TM1 Contributor client—allows you to work with your preferred look and feel.
built-in collaborative and social networking capabilities to fuel the exchange of ideas and knowledge that naturally occurs in decision-making processes today.
helps groups streamline and improve decision-making by providing capabilities for forming communities, capturing annotations and opinions, and sharing insights with others around the information itself.
establish decision networks and expand the reach and impact of information.
provides transparency and accountability to ensure alignment and consensus.
communicate and coordinate tasks to engage the right people at the right time.
teams are the performance management captain of the corporate ship
empowered to provide the executive team, and business and support units
with real insight and understanding of past, present, and future
performance while guiding them on what the information means to each of
their constituents and how it can be interpreted for decision making.
That is their most strategic value to the business. However, because of
the explosion of information, speed of business, growing systems
through M&A and unique information capture needs of different areas
of the business not to mention growing business practice demands, such
as regulatory compliance to meet the regional, national, and global
reporting requirements, the corporation’s most important analytical
asset, finance departments, remains mired in just completing the basic
week-to-week tasks without providing this strategic guidance. As a
result, emerging trends, exploitable opportunities, efficiency gains,
addition-by-subtraction divestitures, and M&A opportunities go
undiscovered because the analytical part of finance is asleep at the
wheel. It has its proverbial head down doing the day-to-day grind of
low-value activities where this analytical blind spot can eventually
drive the company out of business. Let me illustrate.
the 1960′s, IBM was the 800-pound gorilla in the mainframe business
whose technology supremacy went unchallenged and superior performance
went virtually unabated into the 1970′s. They were the blue suits
bearing information-based mainframes to help companies use data to run
their large – sometimes multinational – businesses with greater know-how
about customers, products, operations, and financial performance far
more adeptly than any other technology could. Yes, they were considered
the masters of product innovation largely due to world-class business
practices and industry expertise. However, Big Blue got complacent and
far too comfortable in their long held pole position. Their inflated
confidence and market share eventually disintegrated as they missed the
advent of the new information-based technology, which, if they would
have had the right analytic capabilities in place, they would have seen
it coming; the emergence of the minicomputer. Minicomputers were
technologically simpler than mainframes but with stronger computing
power while requiring less resources to run them. To be fair, it wasn’t
just IBM that missed the advent of minicomputers. It was virtually
every mainframe company in existence at that time. This new technology
virtually wiped out the entire mainframe business such that no mainframe
business would be a major player in the minicomputer business at all.
What happened? What was missed? Who screwed up?
In my opinion, there were many failures that caused this emerging
technology to go unaddressed by IBM and others, but the chief culprit
who could and should have been prepared for it was finance. Yes, I
think it’s up to finance as the owners of business performance (past,
present, and future) to fundamentally understand the business climate –
internally and externally – to then advise their corporate constituents
on what the information they’ve analyzed means to them. For this to
happen finance needs to get a handle on its core responsibilities before
it can begin to really spot these performance-sapping icebergs that can
possibly turn into business shuttering threats.
Let’s get back to the technology story for a minute if that’s okay. Then, I’ll finish my point.
Where were we? IBM’s out because the mainframe business has gone
south – way south by way of the minicomputer. Exit IBM. Enter Digital
Equipment Corporation. DEC virtually created the minicomputer business
along with a few other aggressively managed companies like Data General,
Prime, Wang Computer, Hewlett-Packard, and Nixdorf. Did DEC and others
in the minicomputer business learn any lessons from IBM’s big miss on
the minicomputer market so as to not repeat the same mistake? Of course
not. The story of DEC’s demise rings almost too tellingly true to
IBM’s mainframe debacle of the 1970′s. In fact, the management gurus
and business journals missed it too. Digital Equipment Corporation was
considered by all who had some insight into the company’s operations as
being the ultimate technology company for decades to come. For certain
it was a featured company in the McKinsey Study that became the stellar
1980′s management book, In Search of Excellence. DEC seemed
destined for monster success. Still, despite all this fanfare, DEC
missed the next wave in computing technology, the desktop computer
Again, where was finance watching past performance by measuring and
monitoring it, to get analytical insight into what the future might look
like to then advise their constituents across the business on what all
of this means to each one of them? Answer: Heads down.
The desktop computing market was predictably seized not by DEC or one
of its minicomputer compadres but by Apple Computer, Tandy, Commodore,
and IBM’s PC-division. (Yes, IBM can’t be held down for long!)
What happened next? Like Rick Blaine says in the movie Casablanca,
“Play It Again, Sam.” Apple, Tandy, IBM and the rest of the desktop
computer gang focused on making the best desktop computers they could
but ended up missing the next new, new thing. Apple Computer and IBM
lagged 5 years behind bringing the latest-and-greatest technology rage
to the market: portable computers. That market was owned by Silicon
Graphics, Sun, and Apollo – all newcomers to this market.
each case, the leading companies mentioned were regarded as the gold
standard given their product excellence and operational execution only
to be quickly pushed aside by an out-of-nowhere, technologically
superior solution that reset the market’s expectations rendering the
prior leader’s solution frumpy and stale. Missing emerging trends in
the marketplace and not adapting to them quickly enough can ring a death
knell for most companies. Think Wang, Silicon Graphics, Apollo. For
others, this misstep can set them back 5 or even 10 years before they’re
back on their feet again.
As a note, in the above example, I simply chose the technology sector
but we could have easily used the retail merchandising sector (Think
Sears vs. Nordstrom) or retail books (Think Barnes & Noble vs.
Amazon), or Automotive (Think GM vs. Toyota). Each situation is an
example of a failure to see the changing landscape which, I believe,
finance is mostly at fault for squandering these opportunities.
How come finance? I think finance failed their companies in each
instance because they weren’t effective enough in managing the
day-to-day, low value tasks which, if they had them under control, they
would have greater leverage to spend time on higher-value practices like
forecasting and business analytics to uncover data points that can help
the entire business spot emerging market forces before it’s too late to
respond. This responsibility to identify these threats and
opportunities lies squarely on finance. If not them, then who else? Be
careful because whomever you’ll name will probably expect finance to
provide them with the meaningful insight into performance results across
the business as well as external information, which, again, means it’s
incumbent on finance.
So, how does finance get to that point where it’s able to provide
this kind of insight with the resources it has because Lord knows it’s
not going to get additional headcount? Well, it all starts with finding
a way to better leverage the resources it has. This requires finance
teams to get the lower value tasks automated as much as they can so that
they can off-load these process management steps to take on added
capacity for these analytic practices.
What are the world class finance teams doing to be analytic leaders
in their industry? World class analytic finance teams have these
repeatable practices down to great consistency and repeatability from
Process: Financial close, financial consolidation, and financial reporting processes;
Process: Disclosure management-related efforts, including all external reporting, such as regulatory compliance reporting;
Solution: Identify these processes and automate the end-to-end needs through a disclosure management technology solution, such as IBM Cognos FSR;
Process: Financial, strategic, and operational
budgeting and forecasting, including Profitability modeling and
real-time analytical capabilities;
Solution: Leverage an enterprise-class budgeting,
forecasting and profitability modeling solution with real-time
calculation capabilities for high volume data sets, such as IBM Cognos TM1;
These practices are the foundational elements required for finance to
be the advisor in providing guidance to the business. Excel at the
practices mentioned above and you’re soon positioning your analytic
experts on your finance team to do the real analysis they’re supposed to
be doing. It’s incumbent upon the CFO’s finance department to provide
this guidance and leadership given finance’s role as the performance
managers for the company. It is therefore finance’s job to provide
insights into past, present, and future performance but also trends,
anomalies and market opportunities that become visible only after
thorough analysis of the information-based business results gleaned from
systems, i.e. ERP, CRM, SCM, etc. and processes, i.e. forecasting,
what-if scenario analytics, etc.
This finance role is looked to not only explain past business
performance and its financial effects but also advise and guide the
strategy in determining where to make investments with the resources at
hand. The CFO’s analytics team – finance – needs to spend its time not
on the everyday execution of basic, low value process steps, like
compiling, validating, and reconciling data for various internal and
external reporting needs but also analyzing past, present, and future to
present guidance on what’s happened, what’s happening now, and what
could happen. Only with an infrastructure in place to easily manage
these basic elements of the finance team’s mandate can the real
value-added analytic insights come to light. Otherwise, their companies
will continue to drive through its business climate with a perpetual
blind spot on what’s coming soon rendering them the next Tandy Computer,
Silicon Graphics, or Apollo.
It’s up to you finance to not let this happen.
Check out more blogs by Tim O'Bryan by clicking here!
We are conducting a BICC research study over the next month. If you have any information you would like to share on BICC org structures or any other best practices and/or would like to be a part of this research study, please drop me a line here.
Some of the preliminary content we will be looking at for the research study include:
Do you currently have an organization in place that will support the initiative and provide the proper communication and functions you need to achieve success?
If so, do you follow an in-source VS out-source BICC format?
How many people are in your BICC relative to the size of your company?
Who does the BICC report too? CFO? CIO?
What type of org structure do you follow?
I would be happy to hear any feedback/comments on this research study, drop me a line on this thread and I will contact you for more information.
Learn the value of the new IBM Cognos Planning 10.1.1 (GA November
22). You will be pleased to learn of this release as it affirms IBM’s
continued commitment to ongoing support and value-added enhancements to
the IBM Cognos Planning solution. The release fulfills our customers
latest requests with:
- features for greater ease and speed;
- improved performance; and,
- exceptional integration that improves a customer’s financial performance management capabilities.
IBM Cognos Planning v10.1.1 delivers additional functionality for
contributors (end users), faster access to data for reporting, an
improved installation features, and conformance with IBM Cognos BI
version 10.1.1 and Microsoft Excel 2010, and other key solutions.
often hear Business Analytics being so many different things that we
feel it’s near impossible to get a handle on what it really is. I’m
sure you were just getting used to the idea of what Performance
Management is and now we throw Business Analytics into the equation. To
make matters worse, there’s a great deal of prognosticators, thought
leaders, and industry analysts who still are married to the idea of
calling the space Business Intelligence. I thought it might make sense
to pass along a simple explanation of each without all of the Big 5
consulting speak that usually goes with it. So, here you are.
BI is where the historian in all of us comes out. This is where
you’re doing rear view mirror analysis, querying, reporting, with
enabled “alerts”, real-time monitoring, dashboards, scorecards, and
visualization focused on past performance. This is your investigative
practice area asking the questions ‘what happened?’ and ‘how are we
doing?’ followed by thorough analysis of the detail behind the answers
to these questions, i.e why are we on- or off-track?
Performance Management (“The Pragmatist”)
Performance Management builds off of “The Historian” to include the following: planning, budgeting, forecasting, and scenario modeling; customer and product profitability, i.e. profitability modeling and optimization; strategy management; governance, risk, and compliance;
and, financial consolidation and external reporting. Performance
Management is “the Pragmatist” who looks not only at monitoring and
analyzing past performance (“The Historian”) but also wants to then use
this past performance to help determine what the future outcomes are
expected to be (Think budget/forecast), which is based off of these past
results weighed against current conditions and intuitive insight, i.e.
the “knowns” and “unknowns” about today and the foreseeable future.
Also included is the practice of governance, risk, and compliance.
Of course, there needs to be rigor and accountability around these
processes, including stringent compliance controls to meet all
regulatory requirements. In addition, risk assessments are a necessary
component of performance management should not only your performance
assumptions (Think Risk-Adjusted Forecasting) be wrong not to mention
other business risk elements of the business including strategic risk,
market risk, credit risk, IT risk, operational risk, etc. The practice
of governance, risk, and compliance
enables customers to identify, manage, monitor and report on risk and
compliance initiatives across the enterprise, helping businesses to
reduce losses, improve decision-making capabilities about things like
resource allocation, and, ultimately, optimize business performance.
“The Futurist” looks at everything the “The Pragmatist” does but then runs what’s called Predictive Analytics
against the Performance Management data that you already have to
uncover unexpected patterns and associations and develop models to guide
what should be done next. It turns the human element in planning,
budgeting, and forecasting on its head by applying pure user-enabled
algorithms and customizable statistical analysis providing you with the
data driven answers. More simply, with predictive analytics companies
are able to prevent high-value customers from leaving, sell additional
services to current customers, develop
successful products more efficiently, or identify and minimize fraud
and risk. This is all being done by businesses all over the world
today. Predictive analytics is just what its name suggests: It’s about
giving you the knowledge to predict. [Business Analytics = [Performance Management] + [Predictive Analytics]
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