Recomendados
Recomendados
Más contenido relacionado
La actualidad más candente
La actualidad más candente (20)
Similar a Presentation: IXN Webinar, CFOs and Big Data. Why they should care and what they should do
Similar a Presentation: IXN Webinar, CFOs and Big Data. Why they should care and what they should do (20)
Último
Último (20)
Presentation: IXN Webinar, CFOs and Big Data. Why they should care and what they should do
- 1. CFOs and Big Data: Why Should You Care? What Should You Do? Thomas Kilburn Camron Allan Pras Chatterjee The Consultants Company The Consultants Company SAP Moderator: Chris Herbert, IXN November 18, 2013
- 2. TODAY’S GOAL To provide a simple view of the cluttered Big Data landscape from the perspective of the CFO, and provide straightforward guidance on some prescriptive measures that should be considered by CFOs to ensure that they are proactively identifying and managing potential challenges and opportunities.
- 3. KEY QUESTIONS What is on the minds of CFOs today? How does data flow through the Finance function? How can the CFO assume a leadership role in leading big data initiatives? Where can they start? How can finance data be combined to drive value in other areas of the company? What are the top EPM tools that you will be asked to invest in to drive ROI (e.g. EPM, In-Memory, Mobility) How does the CFO help to empower other Lines of Business to leverage data?
- 4. TODAY’S SPEAKERS Thomas Kilburn Managing Director, Business Strategy The Consultants Company Camron Allan Managing Director, Technology Strategy The Consultants Company Pras Chaterjee Direct of Product Marketing, Enterprise Performance Management SAP Thomas has a 20-year track record in working with executives to help them understand analytics and map their needs to capabilities that will deliver value, including most recently, reviewing the impacts that Dodd Frank legislation will have on analytics strategies for US financial institutions. His experience has included senior roles at IBM, SAP, Bell Canada, and a number of software startups. In 2011, he cofounded The Consultants Company, where he leads business strategy. Cam is an acknowledged expert in Finance Analytics and Data Architecture. Having started his career with Clarity Systems, Cam branched out into the world of EPM and Data to include many other technologies and establish a complementary expertise in data architecture. As a sought-after senior consultant, Cam has been consulted on several occasions for projects that were North America firsts for a given technology. In 2011, the same year he co-founded TCC, he was the recipient of an award from the Government of Ontario for his work on the econometric modeling. As a recognized authority in the area of EPM, Pras has been a prominent contributor to the evolution of this solution area for well over a decade, through senior roles in both strategy and delivery. His perspective is particularly valuable since it extends back into the roots of the current extensive SAP BPC suite through his experience at several best-ofbreed software vendors that were ultimately incorporated through acquisition. Pras is a designated CMA (Certified Management Accountant) who has worked in budgeting and forecasting at various prominent multinationals across multiple countries including U.S., Canada, China, Belgium, UK, Brazil, Australia and France.
- 5. WHAT WE EXPECT TO COVER 1. The Evolution of the Role of the CFO 2. Big Data: A Quick Primer 3. The Role the “Big Data CFO” 4. What You Can/Should Do Today
- 7. PRIMARY RESPONSIBILITIES Traditional Roles 1. Managing the finances 2. Reducing costs 3. Putting in place the appropriate controls
- 8. A LOOK AT THE PAST DECADE CFO-CIO Alignment Talent Crunch The “Activist” Recovery Best Bets Smart Spending Back to Basics Expanded Leadership High-Performance Culture Business Performance Management Information
- 9. WHO OWNS THE DATA Who’s Responsible for Data ROI?
- 10. HOW FINANCE IS PERCEIVED
- 11. TRANSITIONING IT OWNERSHIP Keeping the lights on Increasing importance Partners / Enablers Transformational
- 12. EXPANDING BOUNDARIES CFOs Have Always had to Incorporate Other Data into their Analysis Other Data Economic/Market Indicators Non-Financial Data External Data Finance Internal Data Data Growth
- 14. THE RISE OF BIG DATA
- 15. WHAT’S IN A WORD?
- 16. DEFINITION adjective (bigger, biggest) “The term itself is vague, but it is of considerable size or extent getting at something that is real” [attributive] larger than other items of the - Jon Kleinberg, Cornell University. same kind informal on an ambitiously large scale [attributive] informal doing a specified action very often or on a very large scale informal showing great enthusiasm informal very popular or successful of considerable importance or seriousness “Big Data is really about new uses and new insights, not so much the data itself,” informal holding an important position or playing an influential role verb (bigs, bigging, bigged) [with object] (big something up) British informal noun (the bigs) North American informal “I scoffed at it initially. We had to hop on the bandwagon.” - Jim Davis, CMO, SAS “Big Data is really about new uses and new insights, not so much the data itself” - Rod A. Smith, IBM Technical Fellow
- 18. CAN SMALL DATA BE BIG DATA??
- 21. DO THEY REALLY KNOW WHAT BIG DATA IS? Top Enterprise Initiatives TODAY o BI, Analytics, Performance Management 55% o Big Data 19% o Cloud 6% 8,000 o Mobile 7,000 6,000 % 5,000 Top Finance Initiatives TODAY o BI, Analytics, Performance Mgmt 78% o Big Data 0% o Cloud 16% o Mobile 15% 4,000 3,000 2,000 1,000 0 Jobs in Toronto Nov. 14, 2013 Source: Indeed 7,330 2,622 1,561 319 315 95
- 22. KEY FACTORS 1. Extracting Value Integration Data Quality 2. Investment Barriers Technology Cost Culture Time Availability
- 23. DATA ASSET MANAGEMENT Fixed Asset Lifecycle Operational (OpEx) • How do I maintain it? Strategic (CapEx) • How do I get a return (value) from it? $14.5B on AT&T’s 2007 financial statements If it’s not an asset, it’s a cost Intangible assets can account for 50% of an organization’s value
- 25. THE GOOD NEWS
- 26. WHERE TO FOCUS Tech Savvy Hybrids People & Culture Data Integration Data Quality Data Ownership Data-driven Culture Advanced Technology Groups EPM Data Management Tools Advanced Analytics Visualization In-Memory DB Technologies Hadoop / MPP Appliances
- 27. THINK DATA!! THINK DATA!! What data are you using? Where does it reside? Is there any data that is not being leveraged? Celebrate data ideas.
- 28. WHERE YOU WANT TO GET TO COMPETIVE ADVANTAGE Sense & Respond Predict & Act Optimization What is the best that could happen? Predictive Modeling Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Generic Predictive Analytics What will happen? Why did it happen? What happened? ANALYTICS MATURITY The key is unlocking data to move decision making from sense and respond, to predict and act
- 29. STAND ON THE SHOULDERS OF GIANTS How to Get Started Connect Finance with IT Find a project Lead By Example Automate month-end close Budgeting / Integrated Planning Expand Horizons Customer profitability Sales forecasting Marketing Demonstrate the ROI – trumpet the success Evangelize Data Invite business cases and promote investment Challenge groups to submit requests Start Smart, and Grow Fast!
- 30. THE COMPLETE PICTURE Volume ◊ In-Memory Databases ◊ Validity Value (Timeliness) (Data Quality) (Presentation) ◊ ◊ ◊ ◊ ◊ Hadoop/MPP Velocity (Integration) People & Culture Variety ◊ ◊ ETL & DQ Tools ◊ Performance Management Tools ◊ ◊ ◊ Advanced Analytics ◊ ◊ ◊ Visualization Tools ◊ ◊
- 31. FINANCIAL PLAN/BUDGET/FORECAST ABC Company Department / CC Expense Planning Operational Headcount Plans Profit & Loss Statement Revenues Cost of Sales Gross Margin ……………$5,000 ……………3,000 …………2,000 Operating ………………………400 Payroll ……………………………300 SG&A ……………………………250 Depreciation ……………………50 Operating Profit ……1,000 Sales Planning S&OP Planning Interest Expense ……………50 Net Income ……………$950 IT & Project Planning Plans impact all areas of the business Capital Planning
- 32. INTEGRATED EFFORTS Finance Risk Aware Financial Planning Financial Budgeting Enterprise Strategy Management Human Capital Profitability and Costing Analysis/COPA/FI Resources Capital Expenditure Planning Compensation Planning Strategic Workforce Planning Key Performance Indicators Operations Supply Network Planning Production Planning and Detailed Scheduling Maintenance Budgeting Corporate Strategy Investment Planning Sales & Marketing Sales Order Management MRP/Resource Planning Trade Promotion Management Global ATP/CTP Campaign Management APO/NW BW Trade Fund Management NW BW
- 33. THE “WHAT IS” BUSINESS INTELLIGENCE BI Suite Based upon all available information: Dashboards Data Exploration Reporting and Analysis … From the information and people inside and outside your organization … Addressing the past, present, future … Answering the what, how, and why … With trust
- 34. THE “WHAT COULD BE” PREDICTIVE ANALYTICS How do historical sales, costs, key performance metrics, and so on, translate to future performance? How do predicted results compare with goals? Forecasting What anomalies might exist and conversely what groupings or clusters might exist for specific analysis? What are the correlations in the data? What are the cross-sell and up-sell opportunities? Anomalies Challenges Relationships Key Influencers Trends What are the main influencers of customer satisfaction, customer churn, employee turnover, and so on, that impact success? What are the trends: historical / emerging, sudden step changes, unusual numeric values that impact the business?
- 35. THE ELEPHANT(S) IN THE ROOM
- 36. ALL-IN-ONE
- 37. QUICKER ANSWERS
Notas del editor
- Want it to be a roundtable discussion. Will not do a product demo, or make you read a bunch of slides.
- 2005 – economy rebounding, not cost cutting anymore, but weak economic conditions made spending more critical; also Sarbanes Oxley not appreciated2006 – CFO looked to for more leadership – profile building, high profile financial reporting issues invite more scrutiny, more expected2007 – Challenge to CFOs to go behind the numbers and spend more time on analytical processes2010 – Managing balance sheets, raising capital, re-financing2011 – Prior to the early 2000s the typical CFO was a bean counter, responsible mainly for reporting the numbers, measuring performance with integrity and accuracy, and managing the company’s checks-and-balances processes. CFOs had accounting and financial acumen as well as strong quantitative skills, but their purview was relatively narrow and confined mostly to their department. Today, however, regional differences loom larger than ever, and multinationals no longer have the luxury of keeping finance issues within geographical boundaries. Managing a company’s financials has become increasingly complex. Most large companies have a head of accounting team up with the CFO, who in turn plays a much more strategic role. A once-obscure discipline, risk management has squarely hit the executive agenda, and CFOs had better be ready for it. They’re also expected to have experience in operations and other corporate functional areas—and to encourage their subordinates to pursue cross-functional paths to broaden and deepen their teams’ skills. Whereas today CFOs are required to develop and implement systems and processes for budgeting and performance metrics, tomorrow they’ll also be required to provide the management team with real-time operational and financial data and analyses. They’ll continue to perform the traditional functions of managing the finances, reducing costs, and putting in place the appropriate controls, but strategic thinking will become more important.
- 39% of respondents in the Gartner study said that IT reports the CFO. 52% Felt that IT should report to the CFO.In the AICPA study, respondents overwhelmingly felt that the CFO, not the CIO, was responsible for driving value from data.It has always been the CFO’s job to present numbers to the board and to other executives. The numbers have traditionally been financial.IT supports this function; they don’t drive it.The CFO’s training and analytical rigour lend credibility to the numbers.
- 32% felt that Finance stuck to their knitting or consumed analysis from other departments as part of the budgeting and planning function.58% felt that Finance led or supported analytics in other departments. Now, this could be financial or non-financial metrics.Only 9% felt that Finance and IT were equal partners when it came to analytical tasks.What this shows is that Finance and the CFO are in a leadership position within the organization.
- 55% still view IT as keeping the lights on. Only 13% see IT as being transformational.However, it is encouraging to see that 31% see IT’s role as using technology to proactively raise business performance. Means IT has been moving away from a support role.
- CFOs used to deal solely with internal, financial information. In the nineties – with the Balanced Scorecard – there was a push to incorporate non-finance metrics. As more data has become available, the CFO has had to incorporate more external data into the decision making process. Although interest rates, exchange rates, and stock market information have been available, it’s availability and frequency have skyrocketed. Now CFOs are needing to take other market data into account. Many executives are wondering how social media data can be leveraged and it’s only a matter of time before device data works its way into algorithm, as the internet of things explodes.
- Different methods to catch different fish, i.e. Both big fish, but entirely different composition and methods to handle
- People & CultureYou’ve probably don’t need to hire anyone new. It’s just that you don’t have the right people working together. IT and Finance need to cross-pollinate in order to maximize data ROI. Assemble an Advanced Technology Group and give them a mandate; a problem to solve.Data ManagementMuch ROI can come from the data management tools you already have in-house. You are not getting good return on these investments. If your team can’t solve the problems with the tools they’ve got, they’ll let you know. It’s also time to take a leadership position on data ownership. Embrace the new ownership/stewardship paradigm and commit your resources to resolving data quality issues. Allocate funds and champion projects which will fix data quality problems at source.ToolsMany of these tools have been around for a while, but have been used by the few. Predictive analytics, data mining, statistics. All work best on large data sets. They require higher order thinking which means they need to be combined with People in order to see returns.TechnologiesHardware prices continue to fall, enabling new technologies. Storing and processing large amounts of data has never been cheaper and more within reach, but spending on hardware alone will not ensure ROI. Once your team comes and asks for more space or power – you’ll know you’ve officially got a “big data” problem.
- People & CultureYou’ve probably don’t need to hire anyone new. It’s just that you don’t have the right people working together. IT and Finance need to cross-pollinate in order to maximize data ROI. Assemble an Advanced Technology Group and give them a mandate; a problem to solve.Data ManagementMuch ROI can come from the data management tools you already have in-house. You are not getting good return on these investments. If your team can’t solve the problems with the tools they’ve got, they’ll let you know. It’s also time to take a leadership position on data ownership. Embrace the new ownership/stewardship paradigm and commit your resources to resolving data quality issues. Allocate funds and champion projects which will fix data quality problems at source.ToolsMany of these tools have been around for a while, but have been used by the few. Predictive analytics, data mining, statistics. All work best on large data sets. They require higher order thinking which means they need to be combined with People in order to see returns.TechnologiesHardware prices continue to fall, enabling new technologies. Storing and processing large amounts of data has never been cheaper and more within reach, but spending on hardware alone will not ensure ROI. Once your team comes and asks for more space or power – you’ll know you’ve officially got a “big data” problem.
- Move your organization up the maturity level
- From “single view” to “most successful”
- From “single view” to “most successful”
- BIG IDEA: GIVE BUSINESS USERS BETTER ACCESS TO MORE INFORMATIONThe BI platform must connect to any data including unstructured data, but it must offer the ability to expose and aggregate it under a single umbrella so business users can find what they are looking for without having to understand the data structures behind the datasets.That is the function of SAP BusinessObjects semantic layer aka the universe.We have done a lot of work on the semantic layer in the last couple years.The majority of our customer have told us that they want to build universe that consumes more than one source without leaving the universe authoring environment and that’s what we are delivering in 4.0.Customer have told us to that they wanted a better, more robust design tool and that’s what we are delivering in 4.0. I’ll come back to this in a moment.We have also recognized that accessing universes from Web Intelligence, Crystal Reports, and Dashboards was different and consistent. In 4.0, we are delivering the same query panel whether you are in Crystal, Web Intelligence, Dashboards, or Live Office.In other words, in 4.0, we are giving you a semantic layer that lives up to its promise to increase user self-sufficiency and make relevant information accessible by business users
- It’s not enough to know how your organization has performed historically. You must also understand what impacts that performance, the implied patterns in trends, how that information relates to business performance; for example the housing market and its impact on consumer credit, or the increase in stress related illness.What if:. . .You could identify hidden revenue opportunities within your customer base through predictive analytics? . . . You could retain your high-value customers/employees/vendors/partners with the right retention offers?. . . Your call center agents could delight customers with the best next-step recommendations? . . . You could increase cross-sell and up-sell effectiveness through cross-channel coordination? . . . You could build long-term customer/employee/vendor/partner relationships with intelligent interactions?
- Get valuable financial insights anytime, anywhere Accelerate key process cycle times in planning and forecastingProvide intuitive access to information and analysisCollaborate and respond in real time for better results