What finance can learn from the toughest endurance bike race on …myweb.loras.edu/Loras/PDF/2016SymposiumBarton.pdf · 2016-03-21 · What finance can learn from the toughest endurance

What finance can learn from the toughest endurance bike race on Earth

Doug BartonDirector, IBM Analytics

©2015 IBM Corporation2

- AlbertEinstein

““

Growth comes through analogy;

through seeing how things connect, rather than only seeing how

they might be different.

What finance can learn from the toughest endurance bike race on Earth

ibm.biz/cfostudy


North America

Central and South America

Western Europe

Middle East and AfricaCentral and Eastern Europe

Asia Pacific

Japan

We interviewed 5,247 business leaders for this study, including 643 CFOs from 54 countries


We identified a group of CFOs with functions that are very efficient and excel at producing business insights

Other finance teams

81%

Finance Efficiency§ Enterprise-wide information standards§ Standard financial chart of accounts§ Common finance data definitions and

data governance§ Standard/common finance processes

Business Insight§ Operational planning and

forecasting capability§ Finance talent development§ Common planning platform

+Effectiveness at:

We call these finance teams Value Integrators

Value Integrators

19%


We also identified a small subset of Value Integrators that perform even better than the rest of the group

Other finance teams

More Advanced Analytics§ Profitability & econ analysis§ Pricing§ Demand planning & forecasting§ Product & services dev§ Mergers and acquisitions

81%

*Effectiveness at:

Value Integrators

19%

4%of total sample

We call these finance teams Performance AcceleratorsValue Integrators are both particularly efficient and skilled at producing business insights

PerformanceAcceleratorsalso possess superior analytical powers and excel at pursuing profitable growth


IBM Analytics for Performance Achievement

Guided business processes, mobile, collaboration

Financial & Operational Performance Management

Disclosure Management & Financial Close

Sales Performance Management

Governance, Risk and Compliance

Predictive intelligence and scenario analytics

Big data & analytics platform


- Albert Einstein

““

Growth comes through analogy; through seeing

how things connect, rather than only seeing

how they might be different.












“I raced my perfect race with IBM Analytics”What can finance learn from the toughest endurance bike race on Earth?

1. Get real-time data that matters

2. Model your business

3. Add contextual data and analytics to create foresight


120º F -- It’s the right time for real time

Dave’s core temperature

… & interventions

Photos courtesy of Jess Gossdeck | Monument Valley

… to guide effort ...


In a hot seat, It’s the right time for real time

§Marketing & Sales | “foot traffic” in retail gives lead time to campaign resource shifts

§Operations | Monitor machines to keep repair costs down and use maintenance resources effectively

§Finance | Link customer churn to effects on revenue and profit


Model Dave’s businessJust what matters

52 links of chain across 13 tooth sprocket turns wheel ~ 4 times

4 turns of 27” circumference wheel = 3 yards

80 revolutions per minute = 240 yards

52 teeth on big ring per each revolution

Velocity = distance / timeWatts


Distance

SlopeWind

Time

Use context & foresight to create “luck”Don’t guess when you can know

XVelocity

0mi 320mi 640mi 960mi 1,280mi 1,600mi 1,920mi 2,240mi 2,560mi 2,880mi

10,857.1 ft

8,350 ft

5,700 ft

2,850 ft

0 ft


θ


Use context & foresight to create “luck”Don’t guess when you can know

Dave logged 7 stops and 14 hours off bike over 8 days, 20 hours.

Just 7 decisions made well = 12 hour difference for no calories, zero watts! Created “Luck”!


Model YOUR business with external data and advanced analytics

§Marketing & Sales | weather is leading indicator of demand (retail) or losses (insurance); sentiment can predict adoption or churn

§Operations | advanced analytics offers predictive insight into maintenance requirements eliminating down-time and catastrophic losses

§Finance | Link economic activity data to effects on revenue and profit


“I raced my perfect race with IBM Analytics”Dave Haase, 2015 Race Across America Silver Medalist

§ Get real-time data that matters

§ Model your business

§ Add contextual data and analytics to create foresight

…and…

§ Build a great team!

§ … you can join a long list of innovative clients … Analytics

& cognitiveCloudThe Internet

of ThingsContextual

data


Point Defiance Zoo BC Egg Waratah Rugby

#madewithIBM

See how IBM technology is changing the world today.www.ibm.com/smarterplanet/us/en/madewithibm/


Organizations have rapidly expanded the use of advanced analytics* across business functions

Source: Analytics: The upside of disruption. IBM Institute for Business Value 2015 Analytics research study. © 2015 IBM Institute for Business Value.Source: Analytics: The upside of disruption. IBM Institute for Business Value 2015 Analytics research study.

Breadth of analytic use,as reported by respondents:

In2014,

10%oforganizationswereusingadvancedanalyticsinthreeormorefunctionalareas

In2015,

71%oforganizations areusingadvancedanalyticsinthreeormorefunctionalareas

* Advanced analytics are defined as the extensive useof predictive, prescriptive or cognitive analytics within a business function


Invitation: Start Today

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Data discovery powered by Cognitive

Enables the “Citizen Analyst”


Invitation: Take a test drive

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- Michelangelo

““

The greater danger for most of us lies not in setting our aim too high and falling short;

but in setting our aim too low, and

achieving our mark.

Q&A

Documents

What finance can learn from the toughest endurance bike race on …myweb.loras.edu/Loras/PDF/2016SymposiumBarton.pdf · 2016-03-21 · What finance can learn from the toughest endurance