Finance Transformation & IT

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30 Οκτ 2013 (πριν από 4 χρόνια και 11 μέρες)

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Business Transformation and IT

Finance Transformation & IT


FEI Summit



Carlos Passi

Asst Controller, Business Transformation

Business Transformation and IT

© Copyright IBM Corporation 2009

2

Agenda


IBM Finance
Transformation



Leveraging Technologies & Tools


Global Integration


Risk Management


Business Analytics


IT Infrastructure (Virtualization & Cloud)



Evolution of IBM Finance

Business Transformation and IT

© Copyright IBM Corporation 2009

3


Country focused


High labor count


Disparate systems


Administrative focus

PEOPLE (ORG)

Global CoE’s / Outsource

Agile & Value Focused

Productive & Collaborative

Effectiveness

Efficiency

(1)
Finance E/R
>3%

1
Cost of Finance as a % of Revenue

(1)
Finance E/R
<2%

(1)
Finance E/R Goal
<1%

(1)
Finance E/R
1.4%

‘94

‘08

‘00

‘96

‘98

‘02

‘04

‘06

PEOPLE (ORG)

Unit, Application & Geo Specific

Slow & Task Focused

Country Centric & Isolated

Continuous

progress marked with significant milestones

(1)
Finance E/R
1.5%


Conducted Hackett benchmarking study


Finance
E/R 2x competition


Created Global Finance Process Owners


Focus on core accounting transaction systems
(Transaction foundation)


Implemented common processes (WWCOA) &
global systems



Undertook several enterprise initiatives: Y2K / Euro
conversion / VM migration / Web exploitation


Focus on reduction of WW application portfolio
(theoretical minimum)


Conducted second Hackett study to reset
benchmarks


Horizontal integration of processes (SAP Assets,
Payables, Procurement)


Improve collaboration/access for internal
customers (ODW)


Focus on core competencies / Outsource
transaction processes (BTO AP/FA)


Ubiquitous self service access to financial
information (Portal, FIUI)


Global Centers of Excellence: Planning / Financial
systems / Acct / Treasury


WW Finance transformation in Planning, Services,
Cash Management, Tax, Business Controls, A/R,
Capital Tracking, Access Management


Cognos BI & Planning Systems

Access | Integration | Innovation

PROCESS

Complex & Disparate

Local Initiatives

Transactional / Reporting

Characteristics
(Starting Points)

High Cost & Disjointed

TECHNOLOGY

Legacy / Interfaced

Proprietary / Monolithic


Disintegrated Portfolio

Characteristics
(Best of Breed)

PROCESS

Simplified & Standardized

Enterprise/Horiz Initiatives

Decision Support / Analysis

TECHNOLOGY

Open & Standard / SOA

OnDemand / Self
-
Serve

Small Strategic

Portfolio

Low Cost & Integrated

Over the past decade, Finance
has leveraged new
IT
technologies

to
transform the organization,
driving
simplification
,
productivity

&
effectiveness
.

The Journey…

Business Transformation and IT

© Copyright IBM Corporation 2009

4

Data Standards (WWCOA), Currency, Product Maps

Enterprise Layer

Enterprise business transaction applications and
corporate data facilities

Finance Transaction Layer

Ledger, Fixed Assets, A/R, A/P,
Intercompany, Pricing, Costing, Treasury

Financial
Enrichment Layer

Financial
Warehousing,
Planning

Decision
Support


Consolidation,
Reporting &
Analysis

Single World Wide Consolidation System,
Cognos BI Tools, CFO Portal

APPLICATIONS / SOLUTIONS

Common World Wide Planning
System, Consolidated & Geographic
Finance Information Warehouses

Common Ledger, F/A, A/P,
A/R, Interco (WW Run
-
Once
Solutions)

Finance as a Service
(SOA) e.g. SABRIX,
WWPRT

The Stack…

Business Transformation and IT

© Copyright IBM Corporation 2009

5


STRATEGIC

OPERATIONAL

SYSTEMS


FIW
-
C

CORPORATE


Accounting

Consolidation

Lotus Notes


Databases

Lotus Notes


Databases

JAPAN

FIW
-
MC

AP

FIW
-
MC


NA/LA

FIW
-
MC

E/ME/A

LEDGER

LEDGER


EDGE


Web

Server

EMEA

AP

FIUI

Executive

Dashboard

APEX

Actuals

Americas

LEDGER

CFO Portal

Our
processes and information technology

are centered
around trusted sources of data

Business Transformation and IT

© Copyright IBM Corporation 2009

6

INCREASE VALUE

MANAGE RISK

REDUCE COST

Finance leverages and exploits new technologies to drive
value, manage risk and reduce cost

& Consolidation

New

Technologies

& Tools

Business
Analytics

IT

Infrastructure

Global
Integration

Risk
Management

Blue Harmony


COGNOS Integration


Research (STAR)

Continuous Control
Monitoring (CCM)


Virtualization


Cloud Computing

Business Transformation and IT

© Copyright IBM Corporation 2009

7

Blue Harmony (Enterprise Transformation Initiative)

Im
plementing common SAP platform across
3 major processes


Leverage global resources through
common processes


Adopt standards for seamless intra
and inter
-
organization operation


Provide adequate control through
compliance and governance


Improve productivity and efficiency
to expand margin and grow EPS


Better information


Better decisions


Better executions

Blue Harmony enables
IBM’s GIE strategy as it
simplifies operations

in 3 major processes
and helps to
reach
earning
-
per
-
share
targets

Potential Benefits for IBM


Productivity efficiencies from FIN, OTC
and OTO


Enhance solution selling capabilities,
improved customer satisfaction and
retention


Improve DSO and other capital measures


Simplify IBM’s Applications landscape by
retiring ~1000
-
systems

Business Transformation and IT

© Copyright IBM Corporation 2009

8

CCM (Continuous Control Monitoring)

Managing risks in key business processes


Uses IBM Complex Event Processing (CEP) technology to extract information from internal
business applications and analyze the data against predefined criteria


Monitors high risk transactions in key business processes

that are administered
in an
automated environment

to deter and detect circumvention of controls

Current implementations & sampling of rules include:

Accounts Receivable (WW focus, 37 countries, 48 rules)


Customer / Enterprise concessions exceeding a country
limit and/or customer credit rating


Deviated Refunds (sent to IB address or changed
customer address)


Invoices for low credit rated customers


Aged (30+ days) collection activity that is not
documented for large valued invoices

Business Partners (6 countries and 67 rules)


Multiple/excessive discounts applied to same BP


Processed payment doesn’t match approved
disbursement amount


Purchase returned but credit not applied timely

General Procurement (1 country and 5 rules)


Orders open for 180 days without activity


Adherence to required to vendor source selection and
fair val
u
e (SS/FV) analysis

Screen Shot from CCM (Activity Alert):

Business Transformation and IT

© Copyright IBM Corporation 2009

9

COGNOS Integration

Increasing the value of finance through business analytics

FMS (Field Management System) Commissions


One of IBM’s largest suite of applications supporting the incentives
process


Allow sellers to track quota attainment and perform sales reporting
at a customer level


FMS enables the implementation of key business strategies:


30 days to pay; Monthly commission payments


Ledger
-
based measurements


Line
-
of
-
sight measurements for employees


Increased incentive value to employee


Timely management information to executive team


Improved discipline and controls in the process


Reduced resource stacking; Reduced manual workload


Leverage Cognos

products to solution
new business requirements; and
opportunities to
transform and simplify
processes
.


Potential to fundamentally change how
IBM Finance will support the business
and
add greater value
.

Integration

Project

Technology

New Capabilities

Backlog Reconciliation

BI

FMS Commissions

BI

BaRT (Backlog Run
-
Out Tool)

TM1 & BI

DB2

CIO Scorecard

Phase I

BI

Wall Street Systems

BI & WSS

Marquis Application Replacement

FIUI

BI

WW

Spend

TM1 &

DB2

Phased 3rd Party Replacement

Cognos EP

Planning

Investigations Measurements

BI

WW Spending Harmonization



Drives
WW standardization of spending analysis and reporting


Replaces multiple local spending Apex cubes with
one common
WW cube

using Cognos TM1 platform


Potential benefits to IBM:


Better control of spending and quicker decision making


Support career growth for finance professionals


Common source of information for better business controls and
simplified access control

Business Transformation and IT

© Copyright IBM Corporation 2009

10

STAR (Statistical Tracking & Assessment of Revenue)

Consistent

metric
-
driven model for performance estimation

w
k 13

End of Quarter

wk1 wk2 wk3 wk4 wk5 wk6

Today

METHODOLOGY

LEADS
-
ONLY
PILLAR

LEADS
-
AND
-
LOAD
PILLAR

LOAD
-
ONLY
PILLAR

Firm
LOAD
-

ONLY
PILLAR

Orders

Opportunity data from
EIW

(i.e., Siebel)

Each opportunity detail is
modeled

Revenue data to
calibrate parameters

Quarterly transactional
revenue

Load data

Provides value of
closed deals
ready to ship

Compute Probability of
Winning and
Expected
Yield

of each opportunity
using detailed EIW data

Predict, based on
history, the Future
Yield due to
opportunities not yet
in the pipeline

FINAL OPTIMIZED ASSESSMENT

an optimal weighted average of the four pillars
for each geo/region, and brand

WEEKLY PILLAR WEIGHTING MODEL

Computes historically optimal weights for
each pillar, by week, geo/region, and brand

Assessment Precision Comparison

STAR Model
:


Consistent metric
-
based method
(statistical model based on historical data)


Link tracking measures to performance


Accurate in early weeks, low volatility
over weeks


Re
-
focus human effort from estimating
outcomes to
decision
-
support

activities

Developed by IBM Research

Business Transformation and IT

© Copyright IBM Corporation 2009

11

Today, Finance IT activities align with

the

Dynamic
Infrastructure

and makes use of virtual hosting

Key Technologies
(unordered)


Service oriented architecture


End
-
to
-
end service mgmt


Comprehensive virtualization


Ensembles & scalable servers


Converged networks


Cloud computing services


Software as a service


Information as a service


IT appliances


Real
-
time data streams


Mobile client services


Virtual worlds

Top IT Requirements
(all are vital)


Agility



rapid deployment, self
-
service, …


Resiliency



availability, disaster recovery, …


Security



trusted computing, surveillance, …


Greenness



energy efficiency, low impact, …


Low Cost



TCO (HW, SW, labor,

facilities,

…)

Evolution of IT Infrastructure


IT Simplification

Business Transformation and IT

© Copyright IBM Corporation 2009

12



Substantial savings: energy, software
and system support costs


zLinux target: 80% energy, 85% floor
space


Inventory hygiene, including application
to server mapping


Dramatically faster provisioning


Improved security and resiliency


Quality


simple, stable, available



Decision
-
Making: Integrating Enterprise
and business unit view


Mindset/culture of distributed vs.
mainframe


Workload selection
--

multidimensional
nature


Incomplete/dated inventory records


Detailed date for internal business case


Integrating project/ program priorities

Next Steps:

Evolution of business intelligence to
Cloud Computing

Expected Benefits of Virtualization

Large Scale Migration Challenges

Virtualization benefits are significant

Business Transformation and IT

© Copyright IBM Corporation 2009

13

Delivering Business Intelligence through Cloud Computing

Cloud computing provides
dynamically scalable

and
virtualized

computing resources
as a
self service
.


Tenants can
subscribe

to this
service focusing on
capability
instead of infrastructure.


Infrastructure and capabilities are
standardized

and provisioned
through

automation
.


Business model allows tenants to
pay for usage,
fixed cost vs
variable cost

WHAT IS CLOUD COMPUTING?

WHAT WILL THIS BRING?


Saves
$23M over 5 years

(
on System z Linux
)


Infrastructure savings


provisioning a common
service


Operations expense


reducing BI infrastructure


Talent restructuring


common BI tooling
landscape


Supports
a
massive
install base of +200K
knowledge workers


Provides delivery of a
widely used, common
service

within the IBM enterprise


Centralizes the delivery of BI services using
economy of scale to
deliver value to all adopters,
regardless of size


Enables faster time to value for adopters and allows
users to
consume services at a rate and pace to
match their investment


Creates a standard BI process that
prevents an
infrastructure build per project

investment

Business Transformation and IT

© Copyright IBM Corporation 2009

14

Overview

for a private B
usiness
I
ntelligence (BI)

C
loud
offering


In 1Q09, the 3rd most popular search term on
Gartner.com was
business intelligence


Despite the difficult economic conditions, in 2008
the growth in BI platform sales was at 20%

Strategy is a tops down approach that starts with business services to
capture tactical ROI and market interest:


Leverage existing GA products & services to jumpstart sales for
private clouds


Use the CIO account to drive product requirements and a marketing
showcase


Consolidate and virtualize BI silos across an enterprise for large cost
savings/avoidance


Grow cloud at the rate and pace of the market

…while offering a stake in the ground for expansion into clod delivered data
centric consolidation and cloud services.

Business
intelligence

Master data
management /
integration

Content / data
management

14

The vision

Business Transformation and IT

© Copyright IBM Corporation 2009

15

Transformation Roadmap for BI Cloud

Phase 1: 3
-

6 mo

Phase 2: 6mo
-

12mo

Phase 3: > 12mo

Bring Cloud to the User


Consolidate & centralize BI


Leverage data as
-
is


Standardize boarding
processes & services


Identify the processes for
automation


Identify services for catalog

Expand the Cloud


Create a standard services
catalog


Automate the boarding process


Provide auditing


Automate billing and rating
capability


Integration w/CHQ cloud
transformation team


Notes integration pilot*

Expansion into data


ETL services


Offering data warehouse
services


Semi
-
structured /
unstructured data access


Evolution into IMCC
platform offerings

The BICC is the underlying foundation for the entire transformation in IBM



Boarding schedule for
IBM tenants

Target is 120,000 IBM tenants by 1H2010

Business Transformation and IT

© Copyright IBM Corporation 2009

16

Effectiveness

Basics

Enterprise
Integration


Standard / Common Process


Automation


Functional Best Practices


Financial Reporting


Shared Services


Web Enablement


Core Competency


Decision Support



Process Outsourcing /

Global COEs


Technology Exploitation


Rationalized ERP


Information On Demand

Globalization

>
3%

<
2%

<1
%

E/R

1994

2002

1998

The evolution of Finance at IBM

Business
Analytics


COGNOS


STAR model

Infrastructure


Virtualization


Cloud
Computing

Risk
Management


Continous
Control
Monitoring

Global
Integration


Blue
Harmony

Business Transformation and IT

© Copyright IBM Corporation 2009

17


Finance Transformation in IBM


The Journey


Transformation has been an Evolutionary process…



Moving from a
Country Based

Model to a
Global

model


Standardizing Data and Systems


Reengineering Common Global Processes


Implementing and Promoting Self
-
Service


Consolidating Core Functions into Shared Services



Globalizing Centers of Excellence


It is Hard…


Business Transformation and IT

© Copyright IBM Corporation 2009

18

passi@us.ibm.com