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© 2013 IBM Corporation Leverage the value of your real estate and assets Dr Claire Penny/Business Development Executive
31

Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Jan 21, 2015

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IBM Sverige

Fastigheter är ofta den största enskilda tillgångsposten på
balansräkningen och kan också stå för en av de största kostnadsposterna.
Vi visar hur ni kan få kontroll på era fastighetskostnader,
energiförbrukning, lokalplanering och nyttjandegrad. Vi kommer också att
beröra hur de nya reglerna för redovisning av hyrda/leasade
anläggningstillgångar kan mötas med hjälp av IBMs lösningar för Smarter
Buildings. Talare: Claire Penny, Business Development Executive - Smarter Physical Infrastructure, IBM. Mer från dagen på http://bit.ly/sb13se
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Page 1: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

Leverage the value of your realestate and assetsDr Claire Penny/Business Development Executive

Page 2: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

AgendaWhy IBM?

Business Drivers to Justify Paradigm Changes in Real Estate Management

Focus on Forthcoming Changes in Lease Accounting Rules

Using IWMS to Unlock Value and Reduce Real Estate Costs

Questions?

Page 3: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

AgendaWhy IBM?

Business Drivers to Justify Paradigm Changes in Real Estate Management

Focus on Forthcoming Changes in Lease Accounting Rules

Using IWMS to Unlock Value and Reduce Real Estate Costs

Questions?

Page 4: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Why IBM?Scalability: IBM operates in more than 170 countries with approximately 434,000 employees in 2012.

Stability: IBM is 101 years old and in 2012 year-end from continuing worldwide operations, IBM revenue was $104.5 billion.

Size: IBM is one of theworld’s largest informationtechnology companies

Page 5: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

AgendaWhy IBM?

Business Drivers to Justify Paradigm Changes in Real Estate

Management

Focus on Forthcoming Changes in Lease Accounting Rules

Using IWMS to Unlock Value and Reduce Real Estate Costs

Questions?

Page 6: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

2025By 2025, buildings worldwide will become the top energy consumers.

1Buildings are the number 1 contributor to global CO2 emissions.

2Real estate is the second largest expense on the income statement for most companies.

In most organizations the real estate portfolio is on the balance sheet as the third most valuable or expensive single asset.

3

42 percentWorldwide, buildings consume 42% of all electricity – up to 50% of which is wasted.

30 percentFacilities investments and operating costs can be more than 30% of corporate annual spending.

The need for efficiency in buildings is clear

Page 7: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Public Sector Drivers for Change

Estates too large

Pressure to generate revenue

Ageing estate

Organisation rationalisation

Legislation

Page 8: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Key DriverChallenged by an extremely dynamic

Environment. Geographic rebalancing in progress

Today’s Banking and Finance CRE Executive: A New Dimension of Efficiency

Jones Lang LaSalle’s 2011 Global CRE Survey*, 3 trends emerged for FSS CRE

1. Smart Growth

Driven to achieve growth targets. Rapid re-sizing. Embracing new ways of working. All quick wins delivered –

Now focus is on strategy &transformation

Pressure from the C-Suite.Challenging KPI’s which provide

Opportunities to impact the financial and strategic direction of the business.

*http://www.joneslanglasalleblog.com/sqm/insights/today%E2%80%99s-banking-and-finance-cre-executive-a-new-dimension-of-efficiency

IBM IWMS expertise and standard offerings:

Real estate managementBuild more effectiveness into real estate operations

Capital project managementGenerate highest return on invested capital

Facilities managementIncrease utilization of facility assets

Maintenance managementExtend the life of critical assets

Environmental and energy managementAchieve sustainability goals

Advanced technology platformExtend facilities applications without changes to source code

IBM IWMS perfectly positioned to accelerateefficiency

2. Flexibility

3. C-Suite connection

Page 9: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Economic drivers in Europe in 2013

Source: CBRE EMEA ViewPoint January 2013EMEA Retailer Expansion Plans

Page 10: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Why care?

SustainabilityReal EstateFinance

Because …

.. retail stores represent top-line revenue and a top-four cost of business for majority of retailers.

Because …

.. only one-third of retailers have achieved their stated energy reduction goals.

Because …

.. new accounting rules will add billions in real estate assets to the balance sheets.

Page 11: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

AgendaWhy IBM?

Business Drivers to Justify Paradigm Changes in Real Estate Management

Focus on Forthcoming Changes in Lease Accounting Rules

Using IWMS to Unlock Value and Reduce Real Estate Costs

Questions?

Page 12: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Pending Changes to FAS 13 & IAS 17

“These new leasing proposals will greatly impact every type and size business in the United States. Whether a firm is public or private, this change would impact literally every item a corporation leases - not just real estate.  Everything from computers to trucks, an ATM kiosk to a floor in an office tower, would have to be capitalized on a balance sheet,”

Mindy Berman, Managing Director of Jones Lang LaSalle’s Corporate Capital Markets practice. 

Page 13: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Current account practice

Companies have a number of specific rules to choose from to decide if a lease can be treated as a capital lease or operating lease.

There are two types of leases:

The new regulations will end this type of off-balance sheet lease finance.

Finance Operating

• Recognise:i. an asset ii. liability

• accounted for in a straightforward manner.

• Most leases• DON’T appear on the balance sheet• Expense for rent recorded as it ‘s incurred

Page 14: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

What people are saying

“This is bigger than Y2k ….I will have to add 350M to my balance sheet.”John Lucchese, EVP Finance and ControllerKindred Healthcare

“We need to cut to the chase…when can you get here for a meeting”T. Mark Buford, Senior Vice President, Corporate Controller and Chief Accounting Officer, Community Health Services

“This is my job for the next three years…. I have over 5B that I will have to add to our balance sheet” Tim Eichacker, Properties Controller, Best Buy

Page 15: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Convergence of global accounting rules affect the U.S., European Union and many other countries

Countries governed by IASB/FASB accounting standards

Page 16: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Pending changes to global lease accounting rules will place a huge strain & impact on financial reporting for public companies

$1 billionin new assets to balance sheets of large public companies in the U.S., Europe and many other countries.1

92 percentNOT PREPARED to implement the new lease accounting rules.2

Sources: 1 Goldman Sachs2, 3 CFO Research Services

Compliance will require a large effort to implement

more than 1000 leases.

Many mid- to large-sized companies expect implementation to include

Compliance will require new systems3.

Page 17: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Prior to finalization of rulespre-built spreadsheets and OSCRE-compliant templates to accelerate loading of leases details by up to 25%.

IBM IWMS (TRIRIGA) accelerates preparedness and enables compliance with new lease accounting rules A smarter way to achieve lease accounting compliance:

During transition periodvisual analysis and scenario modeling to reduce facility assets on the balance sheet by up to 20%.

After effective date of rulespre-built financial assumptions management and financial reporting to achieve auditable lease accounting.

Useful at many points in the process:

• Accelerate capture of real estate and equipment lease abstracts from third-parties• Forecast balance sheet impact of lease renewals and new real estate transactions.• Simplify complex management of financial assumptions• Generate audit reports for real estate and equipment leases.• Model facility planning scenarios to reduce facility assets on the balance sheet.

IAS 17 vs. New Lease Standard / Impact Report

Balance Sheet Impact Analysis

Projected Annual Expense Analysis

Page 18: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

AgendaWhy IBM?

Business Drivers to Justify Paradigm Changes in Real Estate Management

Focus on Forthcoming Changes in Lease Accounting Rules

Using IWMS to Unlock Value and Reduce Real Estate Costs

Questions?

Page 19: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Valu

e Add

Valu

e Add

Stand Alone Point Solutions

(Facilities, Operations etc)

Process-Driven

(IWMS)

Performance- Driven

(Performance- Driven IWMS)

Valu

e Add

Workplace Evolution

Valu

e Add

Disparate Solutions

(Separate Departmental Solutions -Integrated)

Customer /

Share Holder Value

Regional Offerings

Global Offerings

Repeatable Offerings

Business Metrics

Integrated Workplace Management Solutions drive business value

Page 20: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

CFOVP Real

Estate

Risk Man

Energy& EnvMan

FinancialPlanner

LeaseAdmin

FM

Plant Manager

CIO

3rd PartyProject Man

Space Planner

CFOVP Real

Estate

Risk Man

Energy& EnvMan

FinancialPlanner

LeaseAdmin

FM

Plant Manager

CIO

3rd PartyProject Man

Space Planner

TRIRIGA

IWMS

IWMS provides one version of the truth

Today’s Real Estate Management Future Real Estate Management - IWMS

Page 21: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Centralising Real Estate Management

TRIRIGA replaces legacy systems, delivers efficiencies through automated processes and assists with the effective management of the public sector estates by providing better information and an improved user experience

21

Today: multiple systems Future: IWMS

Page 22: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Reserve Meeting Rooms

Hot-Desking/Hoteling

Reserve Equipment

Reserve Vehicle

Catering

Visitor Management

Room Setups

Shared Resources

IWMS - Enabling efficiency and cost reduction across your entire real estate portfolio.

Portfolio Planning

Site Selection

Transaction Management

Lease Administration

Lease Accounting

AR Tenant Tracking

Payment Processing

Client Requests

Real EstateManagemen

t

Program Management

Fund Management

Scope Management

Cost Management

Schedule Management

Resource Management

Permit Management

Vendor Engagement

Procurement

ProjectManagemen

t

Space Management

Space Chargeback

Space Requests

Strategic Planning

Move Management

Personnel Provisioning

CAD Management

Space Managemen

t

Contact Center

Service Management

Warranty Management

Preventive Maintenance

Facility Assessment

Security/Key Management

Inventory Management

Capital Planning

Resource Planning

Operations & Service

CO2 Emission Tracking

Utility Tracking

Waste Disposal

Water Consumption

Green Opportunities Tracking

Environmental Certification

Energy Star Integration

Environmental & Energy Mgt

Customer Request Central (self service, way-finding)Business Analytics (KPIs, advanced reporting)

Shared/Common Data and Process Integration

Common Workplace Platform, Database & DocumentsInternal/External Integrations

Page 23: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Market Planning &Site Selection

Reduce time from siteselection to contract

5% to 6% increasein revenue weeks

Area Opportunity Value

Project Management Reduce facility opening and remodel development cycle

6% to 8% increasein revenue weeks

IWMS drives Top-Line Performance:

International Coffee Retailor shortened new store delivers (from site selection to cup of coffee) from 50+ days down to 32 days to gain revenue days for each store with IBM TRIRIGA

Page 24: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Area Opportunity Value

IWMS drives Bottom-Line Performance:

LeaseAdmin/Accounting

Reduce expenses for invalid charges & late fees

5% to 8% reductionin operating costs

Sporting Goods Retailor reduced monthly rent obligations by $2 million by invoking Co-Tenancy rights with IBM TRIRIGA

Canadian Financial Company identified and stopped many invalid charges within the leases with IBM TRIRIGA

Cell Phone Manufacturer stopped an auto-renewal of one lease avoiding a 45M Euro expense with IBM TRIRIGA

Page 25: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Area Opportunity Value

IWMS drives Bottom-Line Performance:

Facilities Planning Reduce Inefficient workplaces 15% to 20% reductionin occupancy costs

Semi-Conductor manufacturer increased people to workspace ratio from 1:1 to 1.5:1 and saved 30 million in a year with IBM TRIRIGA .

A European Cellular manufacturer reduced its facility portfolio by 17 percent with IBM TRIRIGA.

A Global 10 company generated more than $925 million/year in real cost savings from facility portfolio reduction with IBM TRIRIGA.

Page 26: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Area Opportunity Value

IWMS drives Bottom-Line Performance:

Operations Reduce costs through streamlined maintenance

5% to 8% reduction inmaintenance costs

Financial Services/Retail Banking customer delivers frictionless workplace and business services throughout the enterprise with IBM TRIRIGA, reducing cost of operations while improving customer satisfaction

Higher Education customer gained 30-45 minutes of work time per employee/per shift with IBM TRIRIGA allowing them to expand service coverage without adding headcount.

Page 27: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Area Opportunity Value

IWMS drives Bottom-Line Performance:

Project Management Reduce project costs through increased project efficiencies

3% to 5% decreasein project costs

Canadian reality company utilizes over 20 TRIRIGA Off-Line (excel) forms

that their vendors use to update their project management activities,

improving project governance and reducing costs

US Federal Agency commissioned inspection of over 240 facilities, identified 38,685 deficiencies with an estimated repair/replace value from $12.00 to $9M. Utilizing TRIRIGA’s advanced capital planning and estimating enhanced their decision support.

Page 28: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Area Opportunity Value

IWMS drives Bottom-Line Performance:

EnergyReduce facility energy

costs/carbon emissions through increased project efficiencies

15% + reductions in energy costs

University collects, manages and analyzes data from buildings to gain intelligence and insight to energy and facilities management for a significant projected energy savings.

IBM consistently achieves energy cost reduction on equipment monitored between 10-15% and reactive maintenance decreased by 16%

Page 29: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

*Average ROI from Retail Customers in Revenue Week Increase **Michael A. Bell, Gartner Research

Market Planning &Site Selection

Reduce time from siteselection to contract

5% to 6% increasein revenue weeks

Area Opportunity Value

Project Management Reduce facility opening and remodel development cycle

6% to 8% increasein revenue weeks

Summary of benefits: Top-Line Performance

LeaseAdmin/Accounting

Reduce expenses for invalid charges & late fees

5% to 8% reductionin operating costs

Facilities Planning Reduce Inefficient workplaces 15% to 20% reductionin occupancy costs

Operations Reduce costs through streamlined maintenance

5% to 8% reduction inmaintenance costs

Project Management Reduce project costs through increased project efficiencies

3% to 5% decreasein project costs

EnergyReduce facility energy

costs/carbon emissions through increased project efficiencies

15% + reductions in energy costs

Area Opportunity Value

Bottom-Line Performance:

Page 30: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

Take Action Now!Next steps:

Ask yourself these questions:

Do you want to:Leverage the value of your real estate and assets?Drive down costs?Increase efficiency and productivity?Learn more?

If yes, to any all of these Call or Email us

30

Carsten Pedersen +45 5163 8666 [email protected]

Bengt Brander, +46 70 793 [email protected]

Claire Penny - +353 87 769 [email protected]

Peter Hargne, [email protected]

Page 31: Har ni koll på balansräkningens största post? - IBM Smarter Business 2013

© 2013 IBM Corporation

Questions?

TACK!