Business Analytics Overview

Next Generation of Reportingby: Paul Young, CPA, CGAProven Practices Adviser FPM/FOPM

2013 IBM Corporation

2013 IBM Corporation1

DisclaimerThis presentation is based on outlook of reporting changes for business

2013 IBM CorporationPaul Young - Presenter

BioCPA/CGA25 years of experience in Academia, Industry and Financial solutionsYoutube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

2013 IBM CorporationAgendaComplexity of ReportingTypes of ReportsSolutions

2013 IBM CorporationSource: CPA Canada 4

ComplexityBig Data Quicker access to data for decision makingMultiple entry points for data access/usersRegulatory FilingsSEC FilingsSustainable ReportingRisk Management

2013 IBM CorporationWhat is Sustainable Reporting?DefinitionSustainability reporting can helporganizationsto measure, understand and communicate their economic, environmental, social and governance performance, and then set goals, and manage change more effectively. A sustainability report is the key platform for communicatingsustainability performance and impacts whether positive or negative.Who is reporting2013 saw 95% of the fortune 250 companies producing sustainable reporting2014 Europe Introduced the Sustainability Mandate IBM Value Preposition - https://www-304.ibm.com/connections/blogs/predictiveanalytics/entry/sustainability_reporting_from_challenges_to_opportunity?lang=en_us

2013 IBM CorporationCPA CanadaSource: https://www.globalreporting.org/information/sustainability-reporting/Pages/default.aspx https://www-304.ibm.com/connections/blogs/predictiveanalytics/entry/sustainability_reporting_from_challenges_to_opportunity?lang=en_us6

Integrated Reporting FrameworkWhat is Integrated Reporting Framework?IR is an approach to corporate reporting that aims to concisely communicate all relevant aspects of how a company creates (or diminishes) value over time, primarily to inform equity and debt investors as well as society in general.MandateNot Mandatory, except for South AfricaMany countries evaluated initiatives as part of overall reporting frameworkWhat is the purpose?IR is An integrated report aims to communicate concisely how an organization creates value now and in the future by connecting key aspects of what it is currently reporting in separate channels, such as financial statements, MD&A, governance disclosures and sustainability reports.

2013 IBM Corporationhttp://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf7

Integrated Reporting Framework Key Concepts

2013 IBM Corporationhttp://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf and CPA Canada8

Integrated Reporting Framework

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Environmental, Social and Governance (ESG)Disclosures in SEC Filings and SASB StandardsWhat is SASB?SASB Standards recommend specific qualitative and quantitative disclosures about environmental, social and governance topics (sustainability topics) deemed by the SASB to be material to investors and therefore appropriate for inclusion in an SEC-registered companys mandatory SEC filings (i.e., Forms 10-K and 20-F).

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What are the industry sectors for which theSASB is issuing Standards?The ten sectors are:Released 20132014Healthcare, financials, technology & communications,non-renewable resources, transportation, and services(covering 45 industries)To be released 20152016Resource transformation, consumption (two sectors),renewable resources & alternative energy, and infrastructure(covering 35 industries)

2013 IBM CorporationHow do SASB Standards relate to MD&Areporting and the CPA Canada MD&A Guidance?SASB Standards are expressly designed to encourage companies to provide disclosure about their material sustainability and governance topics (i.e., in addition to financial and performance topics) in the MD&A section of their Form 10-K, among other public disclosures. The very existenceof SASB Standards is based on the premise that existing SEC regulations for MD&A reporting can be interpreted as calling for the disclosures recommended in each SASB Standard, which would be expected by reasonable investor.

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Soft close/Management ReportingWhat is soft close reportingIn between quarterly/year-end filings there are periods that drive management reporting of results by division/profit center/units.The month-end package includes the followingIncome Statement (department/profit center)Balance Sheet (consolidated only)Key metrics (external and internal)Commentary

2013 IBM CorporationData Analysis Demand for BusinessBusiness are driving the need for information on demand as part of managing their business cycle, i.e. real time data.Demand for more reporting on demand as part of managing trends for companies Companies using mobile devices/applications to share information on demand

2013 IBM CorporationIBM Business Analytics Value PrepositionCognos Disclosure ManagementReporting tool (one version of the truth)Cognos ControllerConsolidated Financial Reporting toolTM1Budgeting/Forecasting reporting toolOLAP Reporting ToolTM1 interoperability between Cognos Controller and Cognos Disclosure ManagementOpenPagesRisk Analytics ToolAlgorithmicsRisk Analytics Tool

2013 IBM CorporationIBM Solutionshttp://www-935.ibm.com/services/us/gbs/bus/html/gbs-csco-study.htmlIBM TM - http://www-03.ibm.com/software/products/en/cognostm1 Budgeting solutionsReporting solutionsDemand PlanningSupply Chain ManagementReal Time Reporting Cognos Disclosure Management - http://www-03.ibm.com/software/products/en/cognos-disclosure-management Cognos BI - http://www-03.ibm.com/software/products/en/category/business-intelligence

2013 IBM Corporation