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Capitalizing on Technology
Innovations to Accelerate
Enterprise Performance
Allan Frank
June 17, 2015
Statement of Confidentiality and Usage Restrictions
This document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the disclosure of
which would provide a competitive advantage to others. As a result, the reproduction, copying, or redistribution of this document or the
contents contained herein, in whole or in part, for any purpose is strictly prohibited without the prior written consent of The Hackett
Group.
Copyright 2015 The Hackett Group, World-Class Defined. All rights reserved.
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 8
This Year - 2015 Business strategy priorities
Innovation and product expansion in existing markets again tops the list
Expand existing
product/service Expand product/service
Market expansion portfolio into new 16% 56% portfolio into existing
markets markets
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 9
Innovation has become a strategic differentiator
Are you ready?
1%
Innovation
The ability willis become
to innovate more
expected to important
become competitive
more important as a
competitive differentiator in ourdifferentiator
industry over theinnext 98%
ourfive years in
industry
next 5 years 1%
Creating disruptive innovation (of products / services / business model) is
Creating disruptive
an important partinnovation is anstrategy
of our business important part of our 62% 29% 8%
business strategy
The company has the right KPIs, processes, resources, incentives and
The company hasinthe
funding right
place KPIs,
to meet processes
its innovation and incentives
goals 34% 32% 35%
in place to meet its innovation goals
Information
Governance
Service
&
Placement
Organization
Service
Delivery
Skills Components Process
&
Sourcing
Talent
Enabling
Process Design
Technology
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 11
What is Innovation anyway?
Finding a new or better way of doing something
EFFICIENCY
(reduce costs)
SUSTAINING
(improved replacement)
DISRUPTIVE
(change the way we live, work, play)
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 12
Finance under a continuing pressure to reduce costs
Implication Innovation requires self-funding
HR
FN
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 13
2015 Key Finance Issues
Business Partnership, Technology, Talent, Analytics, Data
High
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 14
2015 Finance Improvement Priorities
Information, Analytics, Technology tops the list
Functional reorganization
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 15
Information & Analytics is a top priority because its at the
heart of driving Enterprise Performance
Top EPM Performers are 50% more likely to outperform Industry than Peers
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 16
Unfortunately, many organizations have a long way to go
to achieve World class EPM capabilities
86%
Still use Excel for planning &
performance mgmt.
83%
Are dissatisfied citing lack of
flexibility, poor data quality, too
much time invested
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 17
Top Performers are investing in advanced analytics to
address the evolving needs of the business
13%
19%
21% 26%
22% 37%
22%
32% 52%
55%
56%
50% 46% 43%
38% 207%
33%
580% 14%
5%
Peer Top Performer Peer Top Performer Peer Top Performer Peer Top Performer
Self-service analytics and reporting Scorecards / Performance dashboards Predictive modeling Multi-dimensional analysis ("slice and
dice")
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 18
Effective analysis & reporting is moving beyond Finance
to a cross-functional analytics imperative
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 19
Reporting strategy, data governance and integration are
pre-requisites to Insight
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 20
The EPM Technology Innovation Imperative
Need to redefine Business Intelligence in todays data-driven world
EPM
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 21
Five key technologies driving business innovation
Value
Internet of
Platform 3.0: Analytics Everything
Value driver: Business model innovation and disruption (big data)
Interconnected Commoditization
Convergence of technology and business
virtual
Social
services Media We are here
Mobile
Innovation Commoditization
Value driver: business process improvement Cloud
Platform 2.0:
Pervasive technology adoption in business
Interconnected
computing
platforms
Internet
Innovation
Middle- Commoditization
ware
Time
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 22
Digital Business Transformation: The intersection of
technology innovation and business innovation
Digital Business Transformation
The pervasive use of digital
technology in products, services and
Technology value chains, fundamentally Business
Innovation Innovation
transforming traditional business
outcomes
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 23
What Does Cloud Look Like?
Public Cloud
Service provider owned and
managed.
Access by subscription
Delivers select set of standardized
business process, application
and/or infrastructure services on
a flexible price per use basis.
Private Cloud
Privately owned and managed.
Access limited to client and its
partner network.
Drives efficiency, standardization and
best practices while retaining greater
customization and control
Hybrid Cloud
Access to customers, partners and third parties
Best of both worlds
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 24
Cloud Computing is part of a larger vision to provide IT
agility and flexibility to support business objectives
Strategic Impact
Faster response, more accurate
Business Strategic Objectives include planning, improved business
Continuous Improvement for all functions management
Less capital tied up; variable spending
based on usage and need; reduced
IT embraces this objective and further per-employee IT cost; shift in IT focus
defines it to be: Immediate/constant access to best
Enable strategic IT Management through Cloud technologies at no additional cost
based Computing and Managed Services Enable business transformation
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 25
Finance Cloud solutions have yet to become widely
adopted
Finance technologies used
E-Invoicing 100%
Enabled through standard ERP Enabled through best-of-breed solution Enabled through cloud solution
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 26
Recent IMA EPM Cloud Adoption Survey Only 7% using
cloud in some way but growing
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 27
Cloud risk drivers are anchored by data security and
performance management concerns
100%
92%
85%
81%
75% 75% 75%
67% 67%
59%
56% 56%
52% 50% 50% 52% 50%
48%
41%
30%
Data Security End to end Data integration Master data Relationship General lack of Cloud service Lack of upside Quality of service / Loss of control of
systems management management with maturity of cloud provider viability and downward availability / enterprise
performance cloud service technologies and business scalability of the performance of architecture as a
management providers and/or service continuity cloud service cloud services result of end user
offerings provisioning model driven initiatives
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 28
The Evolving Global Cloud The Internet of Everything
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 29
The Internet of Everything Driving a Flood of New Types
Of (BIG) Data Driving Data Management Complexity
Data is growing
exponentially and is
expected to increase to
32 ZB by 2020.
Zettabyte is 1,000 x 1,000 x 1,000
Terabytes
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 30
Evolving BI & Analytics Architecture
Answer to Swimming in Data - Requires new technologies, skills & governance
Enteprise
Data BI Applications
Structured BI Applications
Warehouse
Data RDMS
Sources
ERP
KPI Dashboards
Transaction
Std Reporting & Analysis
Visualization
BigData
Unstructured Internet Scale Analytical
Data Distributed Tools
Sources Data
Sensors & Streams
Environment
Visualization
Text & Docs Advanced Analytics
Multi Media Correlations
Internet Feeds
Open Data Data Lake
Pattern Detection
Text Mining
Dark Data Predictions
Realtime Analytics
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 31
The BI & Analytics Imperative Driving sustainable
competitive advantage
Separating the Signal from the Noise from all that Big Data
Front Line
Standardized Analytics
Knowledge
& Reporting Tools
Sensemaking Evidence-based
Worker Management1
Culture
CURRENT FUTURE
Nature of the
STATE STATE
User
Sensemaking Sensemaking
Traditional Balanced General Analytical Visualization
Internal Scorecard Intelligence Tools Tools
Corporate Core
- Expert Users
Continuous
Periodic Static Flow of Insights - Structured
and Unstructured
Nature of the Content
1. Jeffrey Pfeffer & Robert Sutton, Hard Facts, Dangerous Half Truths and Total Nonsense: Profiting from Evidence-based Management, HBS Press, 2006.
2. KSP = Knowledge Service Provider.
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 32
Intelligence on Demand IOD
We believe a new class of enterprise solution is needed to address how
knowledge work is actually performed today
1. Unifies information
2. Connects people with people
3. Connects people with information
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 33
Social Technology Can drive better collaboration &
enterprise performance
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 34
Moving towards a Mobile-First World
Giving us access to information anywhere at anytime.
Trend
Reporting will be delivered through tablets and other
smart deviceswith advanced data visualization
capabilities
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 35
Finance has the opportunity to lead the Digital Business
Transformation Charge
Digital Business Transformation
The pervasive use of digital
technology in products, services and
Technology value chains, fundamentally Business
Innovation Innovation
transforming traditional business
outcomes
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 36
Need for a Finance Technology Roadmap
ERP
Finance Ops
Fin ERP in the
Apps Cloud
Ops
Advanced Cross-
Bigdata Functional
Analytics Analytics
EPM
Traditional
Decision
Support
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 37
www.thehackettgroup.com
2015 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. 38
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