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 Jabil’s 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 thinking examples utilizing the analytics library
• Master Analysts are our frontline
TM1 and Jabil
• Purchased TM1 in 2009
• Go Live in 2010
• 2500 Users World Wide
• One centralized server
• Load tested for 300 concurrent users (think time 3-5 seconds)
• 95% of use in TM1 Web
• Initially used for Actuals/Forecasting
Initial TM1 Challenges and Remedies
• Challenges:
• Enterprise Scale and Maintenance
• Partitioning
• Delayed Data Synchronization
• Remedies:
• Parallel Interaction + Model 2.0
• Open STA Testing
TM1 Benefits
• The time it takes to develop a new model is very fast
• Developers can prototype and work with functional users to
make sure they get exactly what they want.
• Very customizable
• If can’t be done using TM1 built in TM1 functionality, can easily
call external programs/applications to do work and bring it back
into TM1.
• Easy to use menu driven interface
Main Menu Interface
BU Sub Menu
TM1 Wins
• Replace plant controlled Excel-based forecasting with an integrated system
• Unify the cross-plant consolidation process and remove Excel reliance
• Provide standardized actual to forecast variance reporting• Eliminate the need for manual manipulation of data
• Fast real time analysis – SUPER FAST (and getting faster)!
• Ability to forecast in document currency with real time
currency conversion
• Automatic Reconciliation
TM1 Wins
• Major reduction in the number of data points entered in by the
sites.
• Actual load automation. (SAP +20 other Non SAP ERP’s)
• Decentralized security allowing sites not to have to wait for
corporate to add or change user access
• Built in allocation model and methodology allowing for
consistent allocations across the enterprise.
New TM1 Applications
• Pricing/Quoting for new business• Strategic Planning• Headcount Planning
What’s Next for TM1?
• What If applications
• Operations Data
• Voice of the Customer
The Enterprise Analytics Challenge
The Blind Men and the Elephant – John Godfrey Saxe (1816-1887)
Developing the Analytics Capability
Data Analysis & Business Insight
Data Prep &
Reporting
PRENATAL INFANT CHILD TEENAGER ADULT SAGE
SK
ILLS
GA
P
BI FOUNDATION –Data Sources, Reports, Visualizations, Scorecards, Predictive
Automated Reporting
Guided Analytics
Understand the Drivers
Mine for Commercial
Impact
Building the Foundation – The Analytics Library
• Goals:
• Deliver a flexible analytics solution, one stop shop concept
• Kept reports simple and clean
• Quickly answer 70-80% of financial questions
• Method:
• Joint Application Development approach
• important to have the right skills mix and resource to deliver
• Tips:
• Business Vision + BI Application Knowledge = Increased user
value
Report types organized for interrogation
• Position: Data displayed for a single point in time eg. Month, Quarter, Year
• Trend: Data displayed for 12 historical (Forecast or Actual) or 12 future periods (Forecast)
• Variance: Shows the difference between two positions with period and version as the variables. E.g. Actual v Q1 Locked Forecast for Q1 FY11, Actual Q2 FY11 vs Actual Q3 FY11
• Correlation: Show the relationship between 2 variables over time (e.g is the a linear relationship between Labor and Revenue)
• Waterfall: Shows the movement between 2 positions
Content and Structure
• 60+ Report Studio Reports• Line, Bar, 100%, Marimekko, KPI,
Gymnastics, Waterfall• 600+ Business Insight Dashboards• Dashboards Style Reports
• Capacity• Inventory• Customer Variance• Pass on Pass
Reporting Standards
• Packaged Reports: Traditional cross-tab reports are represented by data tables and comprise of Trend and Variance reports
Reporting Standards
• Bar & line: Easily spot monthly, quarterly and yearly trends for more accurate forecasting
Reporting Standards
• Bubbles: Size of the bubble measures profitability
• Marimekko: Understand the proportional relationship
Reporting Standards
Business Insight Workspace
• Combine pieces of the Analytics library (reports or individual components) to get a complete picture E.g. Forecast Review
Global SME dashboard contest
• Way to promote the sharing of best practices
• Understand if BI is adding the value we think it is
• Scoring based on:• Inverting the Triangle• Baseline Alignment• Effective Business Partnering• Communicate for Success• Highlight Relationships within the Data• Highlight Key Trends• Visual Impact and Relevance• Contributes to the Finance PDCA Cycle
SME Dashboard Contest Finalist
• Inventory is the Largest Investment at Jabil
• This Dashboard will Allow Us to Monitor Inventory at a Regional Level by Identifying Major Issues at both a Plant and Customer Level
• Updates with Weekly Indicator• Allows Drill-down to Individual Plants• Identifies Top Contributing Customer
Quickly• Provides a Quick Summary of the Major
Components of Inventory
Analysis - Starting
Current Forecast does not reflect historical growth
Current Forecast does not reflect spike in last month of
Jabil’s Quarter
What questions does this make you consider – and what data do
we need to help?
Cost Centre Forecast
DOES THIS: THIS:
THE BEST USE OF JABIL’S RESOURCE?
What questions does this make you consider – and what data do
we need to help?
Analytics Challenges
• Business• Transforming our people
• Change is Hard!• Communication
• Which is the right report for me?
• What are others using?• What does the executive team
look at?
• Technical• Performance – Hope is not a
strategy• 10.2 appears to be about
50% faster so far• DQM Migration• Aggregation Awareness• Business Insight (Cognos
Workspace)– Printing– Hierarchy changes – Listen for widget events– Concurrent query execution
(20 charts = 20 queries)
Results
• “We’ve come a long way in the last few months!” – Forbes Alexander, Jabil CFO
• Really just got visibility of the financial information above the water line
• BI has created an appreciation of the importance and necessity of all the work that went in TM1
• Execs are delighted – real time access to data that they have never had before, real insight into the data driving results
• Driving finance to change how they support – MAQ and Business Partnering is enabled by our system capabilities
Cognos 10 BI
TM1
AOP/LTP Driver Based Forecast
AOP/LTP Reports
• Revenue of quotes lost by lost categories for a period
Results - What our users say
“This dashboard is an excellent alternative to the Excel file; much more reliable for use during the forecast reviews.”Business Unit Manager
“I like being able to view my forecast as soon as it is updated. The dashboard is easy to use and having all the relevant information in a single screen saves time jumping between files.”Business Unit Coordinator
“The pass –on-pass view along with the ability to select a specific account and see trends in as quick as click makes this a valuable too l during forecast reviews.”Business Unit Director
“The time saved in producing and publishing reports by our financial analyst can now be used in identifying and closing gaps.”Accounting Supervisor
“Report Generation that used to take 3 days is now completed in minutes”Group Controller
What’s Next for BI?
• Upgrade to 10.2– Migration to Dynamic Query Mode
• Strategic and Scenario Planning– Stronger Foresight with Predictive Analytics– Metrics Studio – Balanced Scorecards
• Mobile• Limitless Visualization• Beyond Finance – Operational & HR data• Create an Information Advantage
Questions?Patrick Patterson Financial Systems Manager
Simon YannopoulosDirector, Finance Transformation Team
Q&A
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