P0825: IBM - Financial Management Solutions, Finance On Demand, Analyst Briefing

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Government Exhibit P0825

IBM logo

 Business Consulting Services 

     Financial Management Solutions

      Finance on Demand

     Analyst Briefing

Photo of person
 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

Illegible

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

IBM 500827 HIGHLY CONFIDENTIAL

BCS is a business services partner of unmatched breadth and depth

Map of the world as background with a bulleted text list in front[D]

IBM 500828 HIGHLY CONFIDENTIAL

How we operate

Two tables, one with words sideways[D]

IBM 500829 HIGHLY CONFIDENTIAL

FMS Solution Overview

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

Circle divided into 4 segments. Inside content is unreadable.[D] Who Buys our Services?

Square with unreadable content

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

Table with companies logos divided into unreadable categories[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

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  • 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

Unreadable arrow with words, Unreadable Entity, Tradional Entity below. Four small circles surrounding big circle with the words Value Networked Company in the center

Decapitalized On Demand Business

Two triangles, one upside down[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

Graphic model of the evolution in finance[D]

IBM 500836 HIGHLY CONFIDENTIAL

Finance On Demand value proposition

Finance wants to ... Finance on Demand deliversUnreadable
Adapt quickly to business changes

Speed information flows

UnreadableResponsive
Reduce costs and decapitalize

Improve quality

Increase staffing flexibility

UnreadableVariable
Enhance capabilities

Act as true business partners

UnreadableUnreadable
Provide assurance, ensure controls, and reduce risks UnreadableUnreadable

IBM 500837 HIGHLY CONFIDENTIAL

The Evolution of Finance Transformation Vehicles

Unreadable graphic showing high value and low cost of 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

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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
UnreadableUnreadableUnreadableUnreadableUnreadable
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
UnreadableUnreadableUnreadableUnreadableUnreadable
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
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IBM 500841 HIGHLY CONFIDENTIAL

Case Study: On Demand Finance at Bank of Montreal
UnreadableUnreadableUnreadableUnreadableUnreadable
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.
UnreadableUnreadableUnreadableUnreadableUnreadable
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
UnreadableUnreadableUnreadableUnreadableUnreadable

IBM 500842 HIGHLY CONFIDENTIAL

Case Study: On Demand Finance at Marathon Oil
UnreadableUnreadableUnreadableUnreadableUnreadable
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)
UnreadableUnreadableUnreadableUnreadableUnreadable
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
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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
PeopleSoft logoSAP logoOracle logo

IBM 500845 HIGHLY CONFIDENTIAL

Additional Finance Vendor Relationships

  • Lawson
    • Number #1 Partner in Lawson's Top Tier and the largest Lawson Implementation Services Partner
logo

  • JD Edwards
    • Global network of practitioners; strong focus in Pharma
logo

  • Microsoft Business Solutions
    • Strong emerging practice with Microsoft Business Services focused on Eastern US with aggressive plan to go Americas-wide
logo

  • Cognos
    • Selected as a global vendor to provide core business intelligence (Bl) tools for iAnalytics solution
logo

  • Informatlca
    • Collaborating closely since 2000 around analytic application s development and jointly trained more than 300 consultants
logo

  • Hyperion
    • Long history of successful collaboration with leading Finance clients
logo

  • Others, Including Business Objects
logo

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

IBM logoFMS
Network of Excellence Interface
What is the FMS NoEI?What's New?Tips on Using the FMS NoEI
 
About FMSSellingDelivery
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

LearningKnowledgeMethods
Training Curriculum

Training Materials

Training Schedule

Knowledge Harvesting

Research Databases

Ascendant - Methods
SearchContributeQuestions/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

IBM logoiAnalytics
Center of Excellence
About This Home PageCommunity NewsClient Showcase
 
About iAnalyticsSellingDelivery
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

LearningKnowledgeMethods
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/FeedbackContributeSearch
 
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

IBM logoOracle NoEI
Network of Excellence Interface
What is Oracle NoEI?What is new in the Oracle NoEI?Tips on using the Oracle NoEI
 
The Oracle CommunitySellingDelivery
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

LearningKnowledgeMethods
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

SearchContributeQuestions/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

IBM logoSAP NoEI
Network of Excellence Interface
SearchContributeFeedbackSAP Frequently Asked QuestionsTips on using the SAP NoEI
 
Our CommunitySellingDelivery
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

LearningKnowledgeMethods, 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
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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:

Financial Times logo
Business Finance logo
Bank Systems & Technology Online logo
CRM logo
Chronicle.com logo
The New York Times logo
Stategic Finance logo
Integrated Solutions logo
DM Review logo
CFO.com logo
Investor's Business Daily logo
American Banker
ComputerWorld logo
InformationWeek.com logo
Insight logo

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
Arrow pointing right 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

Unreadable architectural chart

IBM 500855 HIGHLY CONFIDENTIAL

Finance Information On Demand Framework

Unreadable business planning[ chart

IBM 500856 HIGHLY CONFIDENTIAL

 "Property of IBM. Confidential - Do Not Reprint or Reproduce"© Copyrights IBM Corporation 2003
Updated August 14, 2015

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