© 2018 RSM US LLP. All Rights Reserved. © 2018 RSM US LLP. All Rights Reserved. DATA DRIVEN DECISIONS Transform data into information Independent Community Bankers of America May 30, 2018
© 2018 RSM US LLP. All Rights Reserved. © 2018 RSM US LLP. All Rights Reserved.
DATA DRIVEN DECISIONS
Transform data into information
Independent Community Bankers of America
May 30, 2018
© 2018 RSM US LLP. All Rights Reserved.
Your Presenters
Technology and Management
Consulting
Performance Management &
Analytics – Central Region
Leader
Loretta Keyes
Manager
Technology and Management
Consulting
Christina Churchill
Principal
2
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Objectives
Overview: In order to succeed in today’s fast-paced business
environment, leaders need timely and actionable data to make
strategic decisions. Financial Institutions have a lot of customer data
but traditionally have struggled with converting data into information.
Advancements in technology enable real-time reporting, easy to use
dashboards and customer analytics.
Attendees to this session will learn:
• What is Big Data?
• How do we determine the most useful leading indicators?
• What tools are available what work with our core application?
• And how to manage your data.
3
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BIG DATA
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What is Big Data?
Big data is a term for data sets that are so large
or complex that traditional data processing
application software are inadequate to deal with
them. Challenges include capture, storage,
analysis, data curation, search, sharing, transfer,
visualization, querying, updating and information
privacy.
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How does it work?
Sunday Football
• Who do advertisers target? − 20 year-old men
• What ads do they run?− Beer, Big Trucks, Electronics, Wings, Horror Movies
What does data show us?
• 45% of NFL watchers are women
Big data, predictive analytics, artificial intelligence, machine learning and psychometric modeling, target consumers with precision.
Source: 2017 NFL Statistics, NFL.com, February 4, 2018
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Why does Big Data matter?
Financial Institutions can improve, or modernize,
nearly every aspect of day-to-day activities.
Enables institutions to develop….
− operational efficiencies
− targeted marketing
− optimized transaction processing
− personalized wealth management advice
− product development
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What’s the challenge?
8
How can we
analyze all this
data?
How do I know
which attributes are
important?
Is there an
easier way?
Where is the
data stored?
Where do
we start?
Why do
we care?We KNOW our
customers!We don’t have
“Data Scientists”
We don’t have
real-time dataWe’re too
small
ROI? Management
disinterestCost
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Today, many environments look like this
General Ledger System Payroll Expense
System
CRM Revenue
System
MASSIVE
SPREADSHEETS
MASSIVE
SPREADSHEETS
YTD
Actuals
Dept B
Dept C
Dept A
V.1V.2V.3
And you have all of this for
budgets, actuals and forecasts!
Resulting in overwrites,
deletions, lost versions late
nights and confusion!
MASSIVE
SPREADSHEETS
Source: Prophix
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Time for a CHANGE
and it only gets worse over time…
Additional
data source
Additional
data source
Additional
data source
More users
BUT IT DOESN’T
HAVE TO BE THIS WAY…
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HOW TO DO IT
Source: Prophix
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How to do it
Payroll Excel /
CSV
Core
System
CRM Data
Warehouse
Data Sources/Systems
Import / Integration Wizard
ModelsBusiness Definitions & Calculations
Reports and TemplatesInput Templates
Reports
Dashboards
Drill back to
view
transaction
data
Source: Prophix
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ANALYTICS & REPORTING
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Analytics & Reporting
Getting the Data
Data Analytics
Financial Reports
Visual Reporting
Automating Reports
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What is Corporate Performance Management?
Outcome Benefit
Reduced time and effort CPM has proven to reduce budgeting, planning, forecasting and analytics time by 50-70%A
Increased automationShortens time to prepare an analysis or report, increasing analysts’ time spent on value-
added analysis/idea-creation
Faster resultsDelivers more timely (if not real-time) and accurate information to enhance and promote
objective data-driven decision making
Powerful analyticsEnhanced software tools allow for rapid consolidation of information and more powerful
analytical capabilities
Improved risk management Automated model controls – reduced model risk management demands
Single data truthIntelligently consolidating planning functions (i.e. forecasting, budgeting and reporting)
and providing a single truth of information
Enhanced organization
alignment
Effectively aligns corporate strategy with the execution of operations, enhancing integrated
planning
CPM is an umbrella term used to describe software applications that
automate your business’ budgeting planning and forecasting processes
and enable companies to define, analyze and execute strategic goals
relative to finances, operations, business modeling, analysis and key
performance indicators
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How do we use CPM?
• Executing the organization’s strategy and objectives and improving performance
• Articulating a clear link between valuation/shareholders’ expectations and the drivers that influence profitability
• Creating a fact based decision making culture by linking metrics, planning, and decision making
• Setting targets and driving desired behaviors at each layer of the business
• Developing and testing alternative scenarios to facilitate planning capital and resource allocation
• Providing a cost effective platform for effective analytical processes thatare responsive to the business needs
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A quick overview…
CPM Demo
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Dashboard
18
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Dashboard (Cont’d)
19
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Drill Across
20
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Drill Across (Cont’d)
21
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Budget/Forecast
22
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Cell Comments
23
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Line Item Details
24
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Dashboards
25
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Dashboards
26
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Reporting Packet
27
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Reporting Packet
28
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Reporting Packet
29
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Reporting Packet
30
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Reporting Packet
31
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Core capabilities
CPM Core
Capability
Benefits
Budgeting
• Visible & interactive supporting details
• Integrated Top-down & Bottom-up budgeting
• Protected, flexible budget scenarios
• Visually appealing budget status updates
• Automatic budget to actual comparison
Personnel
Planning
• Formula control and accuracy
• Detailed employee compensation planning
• Department managers become accountable
• Unlimited workforce scenario planning
• Effectively manage turnover/promotion/ movement
• Flexible payroll reporting
Revenue
Planning
• Measure different revenue streams
• Evaluate revenue assumptions
• Accurately manage revenue budgets
• Continuously forecast revenue
• Consistently analyze & report revenue
Forecasting
• Routine and scheduled re-forecasts
• One step forecast adjustments
• User-defined driver-based forecasting
• Continuous rolling and what-if scenarios
• Leverage department assumptions
• Full financial cycle forecasting
Consolidations
• Consistent completion of data
• Enhanced validation & approval
• Repeatable, reoccurring consolidation
• All-inclusive currency translation
• Multiple consolidation levels supported
• Adaptability when changes are needed
Reporting
• Get the story behind the numbers
• One system, multiple report types
• Move beyond pre-defined general ledger reports
• Cross functional reporting requirements met
• Secure Institution-wide report distribution
Analysis
• Automatic variance breakdown
• Graphical trend analysis
• Complete data cross-examination
• End-user driven discovery
• Multi-level enquiry
Dashboards
Scorecards
• Transform your data into meaningful visuals
• Align your business to key goals
• Integrate with Microsoft Office
• Safe, encouraged data exploration
• Provide visibility into corporate status
Sales
Performance
Management
• Accurate and obtainable sales plan
• Enhanced visibility across the organization
• Transparency into final sales results
• Robust sales estimates
• Sales plan integration
• Better buy-in reported
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Expected Benefits
Reduce
reporting
and
planning
cycle time
Minimize
time to find,
extract and
reconcile
data
Enhance
predictive
analytics
capabilities
Accelerate
responses
to ad hoc
information
requests
Ensure
“one
version of
the truth”
Improve
Product and
Customer
Profitability
Analysis
Data
collection
& reconciliation
Before
Analysis
After
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Top 20 Big Data trends
• Forecasting
• Real-Time Data
• Workflow Automation
• Credit Decisions
• Security
• Compliance
• Cyber Crimes
• Customer & Market Trends
• Customer Behavior Models
• Updating Old Systems
• Personalization & Automation
• Fraud Detection & Prevention
• Block chain
• Machine Learning
• Automated Decision Making
• Mobile Products
• Payment Platforms
• Risk Management
• Digital Marketing
• Underwriting
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DATA DRIVEN DECISIONS
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Financial institutions have an opportunity to revolutionize the finance organization
• Avoid investments and decisions that only support “right now” – think about where you want to be 5 years from now
Few considerations for scalability
• Increase appetite for investments that promote long-term strategy
Budget constraints drive low risk tolerance
• Tools that hold valuable data are in place but are not being optimized to drive thoughtful decisions
Decisions are made without supporting data
© 2018 RSM US LLP. All Rights Reserved.
Financial Institutions today require 24/7 finance support
Expectations
• Finance needs to be available to support the institution 24/7
• Responses to inquiries “after-hours”
• Processes can be “working” even when employees are not on the clock
• Automation, outsourcing, shared services, GBS, etc. are no longer options – they are necessities
Internal initiatives
• Leading institutions will continue to train internal resources
• Finance partners with HR to train employees and realign talent in the institution
• Employees no longer focus on transactional and administrative tasks – they dedicate their time to performing useful business analyses to drive strategy
Technology factors
• Implement technologies to support a “self serve” finance function which enables business units to access reports and other information without burdening finance
• Maintain a team in-house with the technology to monitor and support outsourced processes
The global nature of business, even for financial institutions, requires finance to
support the institution around the clock
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Enable focus on making data-driven decisions to improve institutional performance
• Institutions are utilizing tools to harness
both internal and external data to drive
real-time decision-making and improve
performance
• Several data analytics platforms have
been developed for institutions and are
designed to be easily supported by
internal resources
Data analytics
Enhance decision-making
Implement dashboards
and KPIs
Uncover patterns and
trends
Sync up finance and operations
Predict and plan with accuracy
Improve performance
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The path to revolutionize
Obtain organization and stakeholder buy-in
Secure funding for initiatives
Evaluate and prioritize opportunities for enhancement
Engage strategic business partners to assist
Ave
rag
e fu
ll fin
an
ce
tra
nsfo
rmation
tim
elin
e: 1
2-2
4 m
on
ths
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© 2018 RSM US LLP. All Rights Reserved. © 2018 RSM US LLP. All Rights Reserved.
© 2018 RSM US LLP. All Rights Reserved.
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