ACG Business Analytics Blog

For companies with large data stores, the benefits of performing analytics are impossible to deny: an IBM study revealed that enterprises which conduct analytics have up to 1.6x revenue growth, 2x EBITDA growth and 2.5x stock price appreciation of those that don’t. [1] However, as data volumes continue to escalate, the cost of providing analytics climbs as well. 90% of companies with 1,000 or more employees access several distinct data sources to complete their accounting close, and 43% use four of more. In the finance industry, professionals spend only 22% of their time performing actual analysis – the rest is spent waiting for data or verifying its authenticity. [2] 

Because large datasets lead to longer downtimes for maintenance, most IT departments perform automation to manage systems. These custom built systems tend to be fragile, require updates when source systems are updated or added, and rely on the knowledge of a few key members of the team. Issues that do arise require substantial involvement of IT personnel, and if critical members of the team are absent, they can cause massive delays.

IBM Cognos Command Center is a new product offered by IBM that facilitates database management by consolidating all of your resources into one dashboard. Cognos Command Center is designed to be usable by business professionals without extensive technical knowledge, and provides enterprises with a robust alternative to custom data warehouse management.

Why should you use IBM Cognos Command Center? Here are a few reasons:

Command Center is Intuitive

Cognos Command Center comes packed with plugins so you can snap-in functions that would normally require custom coding and maintenance from IT. Perform file operations, secure data transfers, and native database functions without writing one line of code. Save money on IT resources, and better utilize your existing employees by allowing them to spend less time on routine tasks. Command Center takes the guesswork out of process failures by alerting you immediately by email, and translating commonly encountered errors into plain English. IT can even add procedures to deal with recoverable errors automatically and silently.

Command Center is Secure

Manage your servers from anywhere in the world via the web or your mobile device. Many complex systems involve the use of stored login credentials, but most companies do a poor job securing this data, representing a major security risk from both internal and external sources and accounting for 13% of all breaches according to a Verizon’s 2013 Data Breach Investigations Report. [3] Cognos Command Center encrypts sensitive data, and users can run processes that utilize stored login credentials without ever being able to read them. In the event of failure or intrusion, any change, no matter how small, can be traced to a single user.

Command Center is Flexible

IBM Cognos Command Center uses global variables to aid in synchronization of data between servers. Manage your workflow centrally, and update parameters on every server you own with a single click. Never lose hours of uptime to rolling back data because of a forgotten parameter again! Command Center integrates workflows for heterogeneous environments into one management system, and its plugin-based system means functionality can quickly be added for new storage systems as they are introduced.

Command Center is Supported

IBM Cognos Command Center is the newest member of the IBM Cognos Business Intelligence family. IBM was ranked a clear “leader” in Gartner’s 2013 Business Intelligence & Analytics Magic Quadrant. The Cognos platform’s ability to serve as a complete BI solution has been bolstered by IBM’s recent high profile acquisitions. IBM Cognos received high marks from clients regarding road map and future vision, product quality, and ability to integrate with information infrastructure. [4] The addition of Command Center to the Cognos family represents IBM’s ongoing commitment to deliver the most full-featured business intelligence platform available.

Summary

Almost half of new business initiatives fail because of poor data, according to a recent article on the EPM Channel website. While manual processes can temporarily fix issues, The IBM TM1 technology uses a series of checks and balances to ensure that businesses can build a database on clean data, saving employees time and avoiding costly mistakes.

How Do TM1 Financial Systems Ensure Clean Data?

Almost half of new business initiatives fail because of poor data, according to a recent article on the EPM Channel website. This trend fuels mistakes in everything from bill payments to shipping, and often means that your best employees spend more time organizing data instead of analyzing it.

This is a long-standing pain a lot of businesses incur with dirty data. With Big Data, businesses have large amounts of data, so the quality of that comes into question. Organizations often are looking at ways to improve their data because they have too many manual processes in place or their data is being cleaned in a non-automated fashion. If your data is clean and organized, you’ll streamline processes and align the organization on a set of numbers. As the EPM Channel article points out, it’s best to do this at the start, saving employee resources and avoiding costly problems.

There are systems that can help. TM1 financial solutions enforce what’s called referential integrity in data. Many times, when pulling data to put into TM1, there are problems in supporting systems that must be fixed. For instance, if you’re pulling data from a financial system that’s doing consolidations, there could be numbers at an account level that do not necessarily total to the parent account that they should roll up into. That’s because the system allows users to store two different numbers. This means there are a number of child accounts that fail to add up to the appropriate total because the database doesn’t enforce referential integrity.

Most relational databases or ERP applications don’t necessarily enforce these rules. They try to put business rules in place, but fundamentally the technology allows users to enter data in different places, creating conflicting information. When pulling data into the TM1 financial systems software, the detail-level account data rolls up into the parent account, creating that figure. This method ensures that the parent figure isn’t entered separately and avoids any situations where the child accounts don’t add up to the parent number. Therefore, users who leverage TM1 as there database are much more likely to have quality, clean data.

To learn more about TM1 financial solutions or see a TM1 demo contact ACG.

Summary

Does your company suffer from common forecasting problems? In a white paper on the subject, the IBM Beyond Budgeting Round Table illustrates how the IBM Cognos TM1 business intelligence solution can help finance managers identify common symptoms and implement solutions that lead to a healthier organization.

7 Ways IBM Cognos Aids Forecasting

Whether companies realize it or not, they likely suffer from at least one symptom of forecasting illness. Misconceptions and antiquated forecasting processes lead to decreased accuracy, quality and profitability for businesses. To successfully treat these forecasting illnesses, finance managers must identify common symptoms and implement solutions that lead to a healthier organization.

In a white paper titled “Seven Symptoms of Forecasting Illness” the IBM Beyond Budgeting Round Table illustrates how the IBM Cognos TM1 business intelligence solution can help identify and cure these pervasive ailments.

1) Semantic confusion: A company might show signs of semantic confusion if the organization finds it difficult to deal with unexpected or undesirable forecasts. This symptom can manifest as a blurred line between the forecast and the company’s goal.

Cure: To address this symptom, companies can use the IBM Cognos TM1 business intelligence solution to allow managers to create, maintain, and reference multiple forecast scenarios easily and efficiently.

2) Visual impairment: A company may suffer from visual impairment if it is obsessed with the year-end forecast numbers, or if it is surprised by new developments at the beginning of the fiscal year.

Cure: Companies should focus on building a comprehensive company forecast strategy. BP is a great example of the power of combined forecasting. BP brought all of the company’s stakeholders together in a large auditorium and efficiently completed a comprehensive company forecast.

In some companies, salespeople are either pushing their numbers to count toward next year’s sales goals or holding their numbers to this year to benefit themselves under their compensation plans. You really need to separate compensation from the forecasting process to take this manipulation out of the process and get truer information.

3) Systemic overload: Systemic overload is characterized by an increasing need to add greater detail and additional analysis in the misguided view that more data is always better in the forecasting process.

Cure: Don’t get stuck in the fine details. With IBM’s TM1 financial planning solution, companies can quickly build scenarios that reflect potential realities while achieving a balance between initial data input and subsequent analysis.

For best practices, you should only be planning the primary financial line items in your business. You should identify 20-50 of these line items that are most important in your business. If you go into too much detail in your budget, you are going to spend all your time configuring the budget and not enough time doing the analysis of it afterward.

4) Prosperity syndrome: If a company’s forecast reflects optimistic growth regardless of negative industry trends or current economic conditions, it may be suffering from prosperity syndrome.

Cure: To alleviate this symptom, companies should consider current market conditions, examine expected competitor strategies and rely on accurate data provided by TM1 financial systems.

5) Lack of coordination: If an organization has multiple sources, or silos, of data, it can’t create reliable, consistent forecasts.

Cure: In order to have a good forecasting process, you also need good data organization in the company. This can be achieved by adopting a single forecasting system throughout the entire organization and feeding data into the forecasting system from other enterprise systems like the General Ledger or the Human Resource Management systems.

6) Asocial behavior: If an organization routinely manipulates or alters its forecasts, even if doing so is not in the best interest of the company, it may suffer from asocial behavior.

Cure: Companies should reward managers and employees based on the value they provide, rather than rewarding “sandbaggers” for abusing the system. This can be achieved by eliminating links between incentive compensation and forecasts.

7) Lack of executive sponsorship: If individual departments are attempting to improve the forecasting process, but others are split over the importance of the task, an organization may suffer from a lack of executive sponsorship.

Cure: In order for a company to be successful in their financial planning and reporting efforts, it has to come from the top down. These processes will touch multiple parts of the organization and must be designated a key strategic initiative of the entire company in order for it to be successful.

All companies suffer from at least one type of forecasting illness. These factors are a reminder that every business needs to constantly examine its core process and culture to ensure they’re using the most accurate forecasting process and tools. By implementing a data analysis tool like the IBM Cognos TM1 business intelligence solution, organizations can achieve a high level of efficiency and promote healthier forecasting.