Finance Transformation for JABIL with IBM Cognos TM1

IBM Cognos TM1 + IBM Cognos Business Intelligence = Inverted Triangle

Patrick Patterson Financial Systems Manager

Steven ThomsonSenior Director, Finance Transformation Team

Snapshot

Founded in Michigan, 1966

Global Manufacturing Services

Provider

24 Million Manufacturing Square

Feet

60+ Global Operations

Tenured Management Team

165,000 Dedicated EmployeesGlobal Electronics

Solutions For a Changing World

Data Aggregation

Our BA Investment Drivers Jabil Reporting State 2008

Source Systems

Forecast

Actuals

Plant Reporting Packages

Regional / Sector Reporting

Internal Analysis

Consolidation ConsolidatedReporting

Reporting Output

Customers

Board Sr Mgmt Regional / Sector Controllers

BU Operations Site Controllers

Tax Authorities

Auditors SEC Local GAAP Authorities

Exec Analysis

Auditors

Press Release

SEC

Tax Package

Mergers & Acquisitions

Divisional Finance

Corp Financial Planning and

Analysis

Transformation

Divisional Finance, Planning and Analysis

Regional Finance

Sector Finance

Finance in Design

Materials & Supply chain finance

Forecast & Variance Reviews

MPC Structure

Weekly Reporting

Divisional & Sector Support

Monthly Reporting

Plant Finance

Financial Reporting

Management Reporting

Best Practice & Finance

Transformation

Regional Finance Support & Challenge

Resource Planning &

Development

Control Assurance & Compliance

Regional Strategy

Ledger Maintenance GL, AR, AP Inventory and

Cash

Balance Sheet Reconcillations

SOX

Statutory Tax & Treasury Reporting & compliance

Balance Sheet Reconcillations

Costing & Materials Analysis

Commercial Influence and Direction

Variance Analysis

Bu & Ops Financial Management

Workcell Forecasting & Reporting

Forecast & Variance integration

Sector & BU Strategy Support

Material Strategy & Performance Evaluation

Regional / Plant Finance support & interaction

Pricing Review & Support

Balance sheet & Asset

Management & Governance

Resource Planning and Development

Operational & Commercial Support and

Challenge

Material Quoting, pricing and standard management

Working Capital & Risk Management

SC Strategic Development & Support

Material Price Variance

Driving Functional Performance & Accountability

Contractual Support & Modelling

Process & Tool Development & Integrity

Business Unit Support & Interaction

Quoting R&D Evaluation & Integrity

Investment Reviews & Analysis

Design Strategy Support and Influence

Reporting Compliance & Analysis

SEC

Rep

ortin

g

IT F

inan

ce

Tech

nica

l Ac

coun

ting

Cor

pora

te

Acco

untin

g

Con

solid

atio

n &

Rep

ortin

g

Equi

ty &

Equ

ity

Com

pens

atio

n Ac

coun

ting

SEC Filings

External Audit Support

Debt & Equity Offerings and

Support

Cost Containment

Manage IT Capital Projects

IT Financial Support

Forecast & Variance

Review

Corp & Site level support

Cost Center Reporting and

Analysis

Cost Center Owner Support

Intercompany Charge Out

Support

Forecast & Variance

Review

GL Maintenance & Balance Sheet

reconciliation

US GAAP Training

Support to Finance, Ops &

BD

Implementation of new

accounting standards

External Audit Support

Transactional Technical

Accounting Research

Non operating Entity

Accounting

External Audit Support

Consolidation of Global Financial

Information

Statutory Accounting

Financial Reporting and

Analysis

HR Compensation

Committee Support

External Audit Support

UBS Adminisatration

Accounting Compliance &

Reporting

Participant Support

Global Cash

Managem

ent

Global Financial

Risk Mgm

t &

Hedging

Regional

Treasury

Global Credit

Mgm

t

Controls & Processes

Support the Organization

Compliance & Regulatory Reporting

Planning

Special Projects

Decision

Support to BU

and Ops

Executive Office

Support

Divisional

Finance Support

Legal

Legal

Tax Calc, KPMG & SEC Filing

SOX

Customs Regulation

Payroll and Benefit Reporting

International, Federal, State & Local

Audit

VAT & Sales Tax support

Systems

Education

People D

eployment

Continuous

Improvem

ent & Transform

ation

Cash Taxes

Acquisitions

Grants

Footprint & Entity Structure

Transfer Pricing

Global

Sourcing

Supplier Financial R

eview Supply

chain

Chair G

lobal C

redit Com

mittee

A/R C

ollection, A/R

Aging & D

elinquency M

onitoring

New

& Existing C

ustomer C

redit M

gmt Plants

Potential new

customers financial

reviews. Business

Developm

ent

Regional education

& support to plant finance & Bu

Regional C

redit M

gmt

Regional Financial

Risk M

gmt &

Hedging

Execution of global cash, financial risk & credit m

anagement

Regional C

ash M

gmt & Liquidity

Mgm

t

Regional Best

Practice, Business continuity

Risk m

itigation & H

edging Strategy

Pricing & BD

Support / Strategies

Capital structure

analysis & optim

ization

Exposure Identification & Forecasting

FAS52, FAS133 and other account standard com

pliance

Manage Financial

Institutions H

edging relationship

Education & Training

Treasury front office, global best practice, business continuity

Chair Financial R

isk M

gmt C

omm

ittee

Capital M

arket, C

redit facility & Securitization

Debt C

ompliance

Banking & Financial Institution R

elationship Mgm

t

Cash

Forecasting & Liquidity M

gt

Intercompany Loan

Mgm

t

Treasury Back office, global best practice, business continuity

Credit R

ating Agency R

eporting & Analysis

Special Projects

Bank Account & C

ash Managem

ent Structure O

versight

Education & Training

IT Financial Support

Risk Assessment

Finance

Compliance

Strategic

Operations

ERM

Controls / Mitigation plan

SOX

Section 302

Testing / Reporting

Data mining / Fraud Mitigation

Section 404

Hotline Reporting

Legal

Medical

EICC

JDAS

HR

ISO

Com

plian

ce /

Regu

lator

yCorporate

HR

Entity Level

Plant

IT

Cont

rols

& Pr

oces

ses

Supply Chain

IIA S

tand

ards

Reporting

Audit Committee

Quality Assurance

Education

Jabil Finance

Corporate Reporting

Corporate Tax

Corporate Treasury

Risk & Assurance

Corporate Controlling

Time to Review our Reporting Needs!

Inverting the Triangle

Data Analysis & Business Insight

Data Prep & Reporting Reduce

Waste

IncreaseValue-Add

Start State Future State

Less time for preparation - more for interrogation, insight and engagement with business and operations to influence decisions

Reporters to analysts Communicate For Results focussed analytics quickly highlighting issues

and opportunities to our business partners less is more Standardized suite of reports and tools one version of the truth Realizing this vision requires replacement of rather than addition to current

reporting & analysis

Desired Reporting State 2011-2013

Software Toolset

Controller

Statutory Reporting Integrated Consolidations Automated GL account controls and reconciliation

TM1

Integrated management accounting & forecasting All of our data in one place

Data management framework for easy interrogation Automated actual loads

Cognos BI

On demand analytics for the end user Advanced visualization & insight - CFR Executive reporting and dashboards

How to Invert the Triangle?

Business Partnering Workshop

Master Analyst Qualification

Business Partnering & Master Analyst Moving away from report

generation to a role where finance can partner with Jabils business and operations functions

BI Simulation (Future Chips) Introduce the Baseline It is not about which reports to use

on which days of the month. It is about changing the mindset in finance to understand how we can add value to the decision making process

Critical thinki