Contents/Agenda
•
Introductions
•
The value of CPM and it’s functionality
•
CPM Selection
•
CPM Design
•
CPM Implementation
Your Tactical Team
4Josh LaSov
Tactical Cloud, LLC
VP – Consulting Services
[email protected]
C: 410.804.5725
Current State of Business Analytics
675%
Effort is wasted
rekeying and
manually rolling
up data
90%
Spreadsheets
contain data
and formula
errors
64%
Annual plans are
out of date by
the time they are
put into effect
3
out of
4
of finance leaders have
seen their strategic
influence increase over
the last three years
Current State of FP&A
7
An immediate and recurring ROI is available for those FP&A departments that can have
their staff focus on value-add activities and not basic duties.
What if we Could?
8
Plan and forecast
in a fraction of the
time it takes now?
Improve forecast
accuracy?
Reallocate
resources
from tactics
to strategy?
Access data you
could trust at
your fingertips?
Analyze to deliver key insights
and improve performance?
Move from managing
the planning process
to analyzing the plan?
CPM Solution Functionality
9
1. Integrated Planning
•
Budgeting & forecasting
•
Detailed planning (i.e. sales, personnel,
operational, capex)
•
Workflow
2. Automated Reporting
•
Self-service and on-demand internal and
external reporting
3. Analytics
– Solve Business Questions
•
Dashboards and scorecards (desktop and
mobile)
•
Drill-down and around into transaction level
detail
4. Consolidations/Financial Close
Note: CPM software is designed from a usability standpoint for
people without an information technology background.
CPM Integrates Single or Disparate Data
Sources for Value-add Analytics
10
Visualization/
Reporting Layer
Analytics Layer
Transaction Layer (Source
Systems)
Corporate
Performance
Management
(CPM) w/BI
Dashboards and
Reporting
Payroll
Legacy
ERP
CRM
The Value of a Tool over Excel
11
Outcome
Benefit
Reduced time and effort
CPM has proven to reduce planning, reporting and analysis time by
50-70% (i.e. automated reporting and budgeting)
Improved enterprise value
Enhanced profitability and working capital management/optimization,
creating an immediate and recurring ROI
Enhanced organization alignment
With the ability to prepare budgets/forecasts and run reports/analytics
across the organization, we find increased alignment
Resource reallocation
Reallocate resources from tactics to value-add activities (i.e. strategy)
Increased forecast accuracy
Better resource and execution planning that improves financial results
Faster results
Delivers more timely (if not real-time) and accurate information to
enhance and promote objective data-driven decision making
Powerful analytics
Enhanced software tools allow for rapid consolidation of information and
more powerful analytical capabilities (i.e. profitability by customer or
product)
Improved risk management
Automated model controls – reduced model risk management demands
(i.e. excel formula errors or human errors)
Our leading clients have stopped performing their planning and
analysis functions in excel.
What Research Groups are Saying…
12
“For every $1 invested in business analytics, organizations realized an
average return in excess of $10”
– Nucleus Research
“Analytics drive 30% or more better improvement or better decisions”
– Aberdeen Group
“Companies in the top third of their industry averaged 6% higher
profitability than their competitors due to data driven decision making”
-Harvard Business Review
“Optimized sales plans increase sales attainment 17%”
What CPM Users are Saying…
13
“CPM has become the backbone of our finance organization. The ROI is
greater than any other software we have deployed – CPM is the most
valuable piece of software that any company can put in place”
– Mike Dinsdale, CFO of DocuSign
“It used to take us months to compile our budget. Now, it takes less than a
day with CPM.”
– Pamela Langshaw, Finance Manager of Coca-Cola
“We are passionate about where CPM is taking us. Our businesses are all
decentralized and different from one another. I didn’t want to push a
solution on our users; instead, they are pulling CPM in themselves.”
What is the ROI?
14
1. Improved decision making
(data-driven) and control from greater
business visibility
What is the opportunity cost or lost
from not having this level of
information/analytics?
2. Incremental revenue gains through
faster and more effective planning
and analytics
Improved forecast accuracy, deeper
analytics on operations, data-driven
strategic options planning
3. Unprecedented productivity gains
and cost savings through
increased automation
50-70% time reduction on planning,
reporting and analysis activities
Business
Visibility
Deeper
Insights
Time to
Information
Data-driven
Strategic
Options
Planning
Reduced
Revenue
Leakage
Revenue
Gains
Cost
Savings
Better
Insight into
Spending
FTE Time
Savings
Value from
CPM
2014 Gartner User Survey Analysis
2014 Gartner User Survey Analysis
16
Implementing Adaptive is painless and
with some training we will help your
CPM DESIGN &
IMPLEMENTATION
FP&A Best Practice Maturity Continuum
18
Basic
Developing
Leading
Strategic Planning
• No formal planning • Subjective decision making
• Formal but disconnected planning • Limited data used in decision making
• Integrated planning
• Objective data-driven decision making
• Financial and operational resources matched to capital required to execute strategic initiatives
Budgeting and Forecasting
• Annual budget preparation • Budget and forecast preparation • Moderate understanding of key drivers
• Rolling forecasts implemented
• Thorough understanding of key drivers with a focus on forecast accuracy and predictability
Management Reporting and Analysis
• Reports indicate if high-level targets were met
• Reporting is a manual process
• Standard, recurring management reports with detailed analysis • Ability to drill-down and around on
results, as needed
• Reporting drives re-forecasting decisions • Real-time results
• Dashboards/scorecards with KPIs (visualization)
Planning Accuracy
• Material variances in planned to actual performance explained
• Reasonably accurate planning • Predictability in planning, resulting in increased target accuracy
Risk Management
• Limited understanding of key business risks
• Identification of select upside and downside risks
• Identification of key upside and downside risks with pro-active planning based on likelihood and impact of events
Organization Structure
• Decentralized business planning functions • Score keeper role
• Centralized business planning • Limited strategic influence
• Centralized function providing decision support • Tightly integrated and aligned with other business
units
Technology
• Disparate systems and no one single data truth
• Integrated and automated technology (i.e. CPM, BI)
• Full utilization of CPM/BI software • Common information platform • On-demand, self-service culture
