Business Consulting Services
Financial Management Solutions       Finance on Demand      Analyst Briefing
	January 2003

© Copyright IBM Corporation 2003

IBM 500825 HIGHLY CONFIDENTIAL

	Business Consulting Services
	Practice Overview Point of View Case Studies Appendix Vendor Relationships Accelerators & Thought Leadership Services Points of View

"PLEASE NOTE THAT IBM recently completed its acquisition of PricewaterhouseCoopers' global management consulting and Information technology services business, PwC Consulting. As a result, PwC Consulting Is no longer a part of the PricewaterhouseCoopers network of firms, and Is now a part of the IBM Global Services business unit. IBM (including IBM Global Services) and PricewaterhouseCoopers are not the same organization, and neither governs or Is affiliated with the other, or any affiliate, subsidiary or division of the other."

IBM 500826 HIGHLY CONFIDENTIAL

Role of Services in IBM's Strategy

"Property of IBM. Confidential - Do Not Reprint or Reproduce"

IBM 500827 HIGHLY CONFIDENTIAL

BCS is a business services partner of unmatched breadth and depth

[D]

IBM 500828 HIGHLY CONFIDENTIAL

How we operate

[D]

IBM 500829 HIGHLY CONFIDENTIAL

FMS Solution Overview

FMS is unique in combining ERP, Transformation, and Analytics offerings in one solution area

[D]	Who Buys our Services?

IBM 500830 HIGHLY CONFIDENTIAL

FMS offers differentiated solutions

Our Five Key Differentiators

Deep Experience	A $2B business with over 6000 consultants globally FMS worked with 74% of the global Fortune 50 and 82% of the European Financial Times 50 in 2001 Unique record of strong relationships with CFOs and Finance leaders
Marketplace Recognition	Recognized as #1 in Consulting Brand Awareness with CFOs* Extensive coverage in leading business publications in FY02
Vendor Relationships	Largest integrator of SAP, PeopleSoft and Oracle Recipient of SAP Awards of Excellence, Oracle Global Partner Award and PeopleSoft Award of Excellence
Approach and Style	Provocative, future-oriented perspectives combined with "here-and-now" practicality Multi-disciplinary teams custom-tailored for each engagement Collaborative workstyle that fully engages our clients
Breadth of Capability	Unique offering footprint combines ERP, Transformation,and Analytics Capable of delivering every component of the solution: strategy, process, industry experience, applications, infrastructure, technology and operate (e.g., 2500 people in F&A outsourcing)

*Source: IBM Internal Research

IBM 500831 HIGHLY CONFIDENTIAL

FMS works with the world's premier companies and leading public entities

[D]

IBM 500832 HIGHLY CONFIDENTIAL

	Business Consulting Services
	Practice Overview Point of View Case Studies Appendix Vendor Relationships Accelerators & Thought Leadership Services Points of View

"PLEASE NOTE THAT IBM recently completed its acquisition of PricewaterhouseCoopers' global management consulting and Information technology services business, PwC Consulting. As a result, PwC Consulting Is no longer a part of the PricewaterhouseCoopers network of firms, and Is now a part of the IBM Global Services business unit. IBM (including IBM Global Services) and PricewaterhouseCoopers are not the same organization, and neither governs or Is affiliated with the other, or any affiliate, subsidiary or division of the other."

IBM 500833 HIGHLY CONFIDENTIAL

CFOs are experiencing increasing pain working with the traditional Finance value chain

(Unreadable)

(Unreadable)

Inability to forecast accurately Need for increased speed of reporting Changing regulatory requirements: e.g., Sarbanes-Oxley, Basel II, IAS Inconsistent data Manually intensive efforts Excessive working capital Low return on investments Increasing scrutiny around traditional Finance guardianship and risk

No single version of the truth Lack of visibility into product and customer profitability Weak analytical staff competencies Multiple chart of accounts and ERP instances Lack of clarity between dotted and solid line reporting Need for Finance to become more nimble and get closer to the business High cost of IT support

IBM 500834 HIGHLY CONFIDENTIAL

Business models are changing to On Demand

The On Demand era is volatile, unpredictable, competitive, changing ever-faster, shifting costs to variable, and equating technology and strategy

Business Evolution

Decapitalized On Demand Business [D]

IBM 500835 HIGHLY CONFIDENTIAL

In the On Demand business, Finance is becoming a discipline

Finance On Demand Trends Four trends are changing the way Finance creates value at our clients: Responsive: Process is being seamlessly embedded into technology enabling rapid sense and respond capabilities across the value chain Variable: Technology advances are allowing Finance to become a virtual organization Focused: Managing information effectively is becoming Finance's core competency Resilient: Finance is strengthening its fiduciary role around managing risk and opportunity

Evolution in Finance's Model [D]

IBM 500836 HIGHLY CONFIDENTIAL

Finance On Demand value proposition

Finance wants to ...	Finance on Demand delivers	Unreadable
Adapt quickly to business changes Speed information flows	Unreadable	Responsive
Reduce costs and decapitalize Improve quality Increase staffing flexibility	Unreadable	Variable
Enhance capabilities Act as true business partners	Unreadable	Unreadable
Provide assurance, ensure controls, and reduce risks	Unreadable	Unreadable

IBM 500837 HIGHLY CONFIDENTIAL

The Evolution of Finance Transformation Vehicles

IBM 500838 HIGHLY CONFIDENTIAL

Transformation yields both immediate and future benefits

$$$$ 

"Today"		"Tomorrow"
Transformational Benefits	Savings	Ongoing Benefits	Savings
Hardware/software maintenance and rationalization	$$$	Lower HR costs (e.g., FTE's/$B Rev)	$$$$
Reduction number of Finance Applications	$$$	Better cash flow	$$
Shared Services	$$	Lower exception processing costs	$$
Process Engineering	$$	Taxes & benefits	$$
Productivity	$$	Increased focus on core competency	$$$$
Management Leverage	$$	Overall Cost of Finance	$$$$
Fixed Costs Effectiveness (e.g., Rent)	$$	Cost of IT Support in Finance	$$$
iAnalytics - qualitity decision support		Reduction in Hidden Cost of Finance	$$
Leverage vendors to manage spend	$$
Labor arbitrage (3 tier approach)	$$$$

Operational Differentiators

Unreadable

IBM 500839 HIGHLY CONFIDENTIAL

	Business Consulting Services
	Practice Overview Point of View Case Studies Appendix Vendor Relationships Accelerators & Thought Leadership Services Points of View

"PLEASE NOTE THAT IBM recently completed its acquisition of PricewaterhouseCoopers' global management consulting and Information technology services business, PwC Consulting. As a result, PwC Consulting Is no longer a part of the PricewaterhouseCoopers network of firms, and Is now a part of the IBM Global Services business unit. IBM (including IBM Global Services) and PricewaterhouseCoopers are not the same organization, and neither governs or Is affiliated with the other, or any affiliate, subsidiary or division of the other."

IBM 500840 HIGHLY CONFIDENTIAL

Case Study: On Demand Finance at BP

Unreadable	Unreadable	Unreadable	Unreadable	Unreadable
Responsive	Insight-driven decision making	Provide decision makers at all levels with the right information, when and where they need it Increase customer service by leveraging technology and emphasizing quality	Increased Customer Satisfaction and Improved Quality and Service Delivery Enabled Upstream Business Units and Asset Managers to do realtime planning and forecasting, as well as "what-if" simulations around their financial and operational metrics	Customer satisfaction ratings growing continuously: 2000: 3.69 2001: 3.76 2002: 3.83
Unreadable	Unreadable	Unreadable	Unreadable	Unreadable
Focused	Return on Investment	Shift focus from transaction processing to partnering with the business on value drivers Reduce monotonous tasks for finance employees; freeing up time to innovate	Crated a "visionary" planning and forecasting environment that provided standarization, data transparency, collaboration, and innovation across its 55 Upstream business units and management teams	Acquisition integration cycle times reduced by 30-50% Employee attrition rates low
Unreadable	Unreadable	Unreadable	Unreadable	Unreadable

IBM 500841 HIGHLY CONFIDENTIAL

Case Study: On Demand Finance at Bank of Montreal

Unreadable	Unreadable	Unreadable	Unreadable	Unreadable
Responsive	Insight-driven decision making	Organized along lines of business without granular financial data below sub-Line of Business Financial information inadequate to support the bank's Value Based Management strategy Little visibility into organization; unable to allocate capital or resources or make appropriate levels of Investment consistent with VBM strategy Inability to align incentive compeneation with VBM strategy Little insight into components of profitability, such as gross margin on services, to support pricing and analysis.	Multidimensional (LOB, product, channel, customer) P&L's and balancesheets for the entire organization. New profitability methodologies and processes to support VBM measurements. Delivery of critical information on any view to business managers "on demand." Granular information on business provided "on-demand". Pricing and forecasting data improved and integrated with VBM.	BMO estimates gaining $150 million per annum in NIAT for each additional 1% increase in revenue and each 1% decrease in NIE as a result of better decision making and investments.
Unreadable	Unreadable	Unreadable	Unreadable	Unreadable
Focused	Return on Investment	Inability to react to market and organizational changes in profitability measurement. Finance consumed with transaction processing - no ability to analyze and affect change. Minimal information to support business decisions.	Finance focuses on analysis and value creation - not transactions. Information supports dynamic scenarios and re-measurement based on market or organizational changes. Operationalized VBM strategy.	Faster responses to changing conditions; contributor to $150 million p.a. improvement
Unreadable	Unreadable	Unreadable	Unreadable	Unreadable

IBM 500842 HIGHLY CONFIDENTIAL

Case Study: On Demand Finance at Marathon Oil

Unreadable	Unreadable	Unreadable	Unreadable	Unreadable
Responsive	Insight-driven decision making	Marathon experiencing a performance gap relative to competitors Provide dscision makers at all levels with the right information, when and where they need it Increase customer service by leveraging technology and emphasizing quality	Information On Demand helped to improve the return on capital deployed in the business unit Increased the overall transparency of business performance by providing accurate and consistent views of the data	1 % Improvement In Return on Invested capital (ROIC)
Unreadable	Unreadable	Unreadable	Unreadable	Unreadable
Focused	Return of Investment	Shift focus from transaction processing to partnership with the business on value drivers Reduce monotonous tasks for finance employees; freeing up time to innovate	Improved procurement capability Developed management scorecards and economic profitability reports Developed a common value and profitability model across the business	2-5% Improvements In Procurement
Unreadable	Unreadable	Unreadable	Unreadable	Unreadable

IBM 500843 HIGHLY CONFIDENTIAL

	Business Consulting Services
	Practice Overview Point of View Case Studies Appendix Vendor Relationships Accelerators & Thought Leadership Services Points of View

"PLEASE NOTE THAT IBM recently completed its acquisition of PricewaterhouseCoopers' global management consulting and Information technology services business, PwC Consulting. As a result, PwC Consulting Is no longer a part of the PricewaterhouseCoopers network of firms, and Is now a part of the IBM Global Services business unit. IBM (including IBM Global Services) and PricewaterhouseCoopers are not the same organization, and neither governs or Is affiliated with the other, or any affiliate, subsidiary or division of the other."

IBM 500844 HIGHLY CONFIDENTIAL

Key FMS Vendor Relationships

• Strategic Vendors
  • Finance Applications service offers tied to the Big 3 represent about 48% of FMS sales globally

  • SAP FICO sales represent almost 40% of Finance Apps sales followed by Oracle at about 35% and PeopleSoft around 25%

  • Moreover, we're recognized frequently:
    • SAP Award of Excellence every year, in each location awarded
    • Oracle Global Partner Award
    • PeopleSoft Award of Excellence
    • Significant participation by key vendors in each of BCS's solution sets

IBM 500845 HIGHLY CONFIDENTIAL

Additional Finance Vendor Relationships

Lawson Number #1 Partner in Lawson's Top Tier and the largest Lawson Implementation Services Partner
JD Edwards Global network of practitioners; strong focus in Pharma
Microsoft Business Solutions Strong emerging practice with Microsoft Business Services focused on Eastern US with aggressive plan to go Americas-wide
Cognos Selected as a global vendor to provide core business intelligence (Bl) tools for iAnalytics solution
Informatlca Collaborating closely since 2000 around analytic application s development and jointly trained more than 300 consultants
Hyperion Long history of successful collaboration with leading Finance clients
Others, Including Business Objects

IBM 500846 HIGHLY CONFIDENTIAL

FMS Learning and Knowledge Solution Accelerators

• Practitioners have full access to use and contribute to our global knowledge databases, virtual training and experience

• FMS continuously refines and enhances our FMS methods and approaches based on harvesting the best insights and materials from projects occurring around the globe

• Mature Network of Excellence linked databases for sharing knowledge globally for FMS, SAP, PeopleSoft, Oracle and iAnalytics (sample navigation screens are included)

• Our practitioners are trained to use the following project tools:
  • Methods
    • BCS and IBM methods
    • Solution set and vendor specific methods (i.e. SAP method, Oracle method)

  • Accelerators
    • Practice aides and guides
    • Pro forma deliverables
    • Industry templates
    • Other reusable information and project deliverables

IBM 500847 HIGHLY CONFIDENTIAL

FMS Network of Excellence

FMS Network of Excellence Interface

What is the FMS NoEI?	What's New?	Tips on Using the FMS NoEI
About FMS	Selling	Delivery
Vision and Points of View Leadership and Key Contacts FAQ	Marketing Service Offerings Sales Toolkits Proposals Qualifications	Practice Aides/Accelerators Engagement Storyboards Global Benchmarking Programme
Learning	Knowledge	Methods
Training Curriculum Training Materials Training Schedule	Knowledge Harvesting Research Databases	Ascendant - Methods
Search	Contribute	Questions/Feedback
Need Help? Contact Knowledge Point Service Centre
Americas: +1 888 705 4321 +1 972 861 6100 Email: knowledge.point.americas@custhelp.com	EMEA: Click and Hold Here for Contact Numbers Email: knowledge.point.emea@custhelp.com@intl	AsiaPacific: +61 2 8266 3333 +81 3 6250 6969 (Japan) Email: knowledge.point.apac@custhelp.com

The FMS, Oracle and iAnalytics navigation screens enable practitioners to easily access information. Practitioners are able to leverage firm knowledge to maximize results in the sales and delivery process.

IBM 500848 HIGHLY CONFIDENTIAL

iAnalytics Center of Excellence

iAnalytics Center of Excellence

About This Home Page	Community News	Client Showcase
About iAnalytics	Selling	Delivery
Vision and Points of View Leadership and Key Contacts Community and SIGs FAQ Alliances	Marketing Offerings Sales Toolkits Proposals Client Profiles Qualifications Demos	Capability Model Engagement Storyboards Practice Aides/Accelerators Project Deliverables
Learning	Knowledge	Methods
Training Curriculum Training Materials Training Schedule Webinars	Knowledge Harvesting iAnalytics COE View DW COE View Research Databases	iAnalytics Methods Ascendant - Methods iAnaystics Route Map
Questions/Feedback	Contribute	Search
KnowledgePoint Contact Details
In Americas" +1 888 705 4321 +1 972 661 6100 Email: knowledge.point.americas@custhelp.com	EMEA: Click and Hold Here for Contact Numbers Email: knowledge.point.emea@custhelp.com@intl	+61 2 8266 3333 +81 3 6250 6969 (Japan) Email: knowledge.point.apac@custhelp.com

IBM 500849 HIGHLY CONFIDENTIAL

Oracle Network of Excellence

Oracle NoEI Network of Excellence Interface

What is Oracle NoEI?	What is new in the Oracle NoEI?	Tips on using the Oracle NoEI
The Oracle Community	Selling	Delivery
Oracle Community Information Headlines Go Live Announcements Oracle NoEI FAQs Strategic Alliances	Sales and Marketing Proposals Oracle Statement of Qualifications Engagement Experience by Module by Application Release	Engagement Work Products by Client by Module by Applications Release Practice Aides/Accelerators
Learning	Knowledge	Methods
Oracle Community Webinars Oracle Sandbox Learning Tools and Resources Upcoming Oracle Traning	New! IBM BCS KM Integration Update Oracle Discussion Forum External Research Services Other NoEI Databases	Oracle Method Ascendant - Methods
Search	Contribute	Questions/Feedback
Need Help? Contact Knowledge Point Service Centre
KnowledgePoint Contact Details
In Americas" +1 888 705 4321 +1 972 661 6100 Email: knowledge.point.americas@custhelp.com	EMEA: Click and Hold Here for Contact Numbers Email: knowledge.point.emea@custhelp.com@intl	+61 2 8266 3333 +81 3 6250 6969 (Japan) Email: knowledge.point.apac@custhelp.com

IBM 500850 HIGHLY CONFIDENTIAL

SAP Network of Excellence

SAP NoEI Network of Excellence Interface

Search	Contribute	Feedback	SAP Frequently Asked Questions	Tips on using the SAP NoEI
Our Community			Selling	Delivery
SAP Leadership and L&K Organization NEW! IBM CBS Capability Statement Take advantage of Discussion Question Functionality What's new in the SAP NoEI			Proposals Marketing Capability Statement Engagement (Unreadable)	Business Practices Engagement Work Products Knowledge Havesting Snapshots
Learning			Knowledge	Methods, Standards and Tools
SAP Training Information SAP Sloution Awareness Training - NEW! SAP Early Product Training - NEW!			SAP Discussion Forum SAP Infopacks Knowledge Point and SAP Helpdesk Available CM ROMs of SAP Material	AscendantSAP Methods AscendantSAP Toolset Ascendant / Client Service Site Project Management Community
APAC KnowledgePoint: +01 2826 (Unreadable) or +01 35493 6969 Email: knowledge.point.apac@custhelp.com EMEA: Click and Hold Here for Contact Numbers Email: knowledge.point.emea@custhelp.com@intl			In Americas: +1 888 705 4321 +1 972 661 6100 Email: knowledge.point.americas@custhelp.com	SAP EMEA Helpdesk: +49-6227-73 2222 (Unreadable)

IBM 500851 HIGHLY CONFIDENTIAL

Thought Leadership

Our institute for Business Value creates fact-based insights which are highly valued by our clients. FMS routinely surveys CFOs and issues white papers based on industry points of view

Introduces, explains, and explores shared services, a business strategy that involves centralizing various business units to reduce costs and increase customer satisfaction.

Provides insight on leveraging e-business with tools, strategies and action plans for success in today's economy..

Examines the approach and strategies organizations may use to manage and reduce costs, enabling the release of investment capital to fuel their businesses' growth.

Emphasizes the key role CFOs play in successful agency transformation — a transformation necessitated by new technologies and globalization.

IBM 500852 HIGHLY CONFIDENTIAL

Thought Leadership

Our Thought Leaders are Featured in Leading Publications including:

IBM 500853 HIGHLY CONFIDENTIAL

Finance Transformation operating model

Key Attributes Organization: Virtual Process & Technology: Seamlessly aligned with organization Information Management: Core competency of Finance Skills: People and organizational capabilities aligned with Business Requirements Role: Finance Functioning as a Business Partner

Finance Operating Model Dimensions Corporate - Governance Defining Finance strategies Providing CFO/CEO/Policy Committee/Board support Defining policies, standards, & rules Ensuring financial information integrity Small core based at Corporate Corporate - Technical/COE Driving value through corporation Supporting M&A, alliances Undertaking strategy and business planning Managing assets Audit and risk management Expert teams based at Corporate Unreadable Transaction Processing Processing transactions Managing information Performing the close Processing performed at Global and / or Regional Level by service provider (SSC / Outsourced) organization(s)

IBM 500854 HIGHLY CONFIDENTIAL

Finance Transformation architecture

Conceptual Application Architecture

IBM 500855 HIGHLY CONFIDENTIAL

Finance Information On Demand Framework

IBM 500856 HIGHLY CONFIDENTIAL

"Property of IBM. Confidential - Do Not Reprint or Reproduce"

© Copyrights IBM Corporation 2003