Smart Strategies for Uncertain Times

Smart Strategies for Uncertain Times Roopa Dhanalal Oracle EMEA GRC Sales Leader Today’s Downturn: Uncertainty or Opportunity? Pyramid of Ambition* “… most companies limit themselves by lowering Attack their expectations and and Win implementing defensive measures aimed at cost – Make Strategic Maneuvers cutting.” “For ambitious, forward- Maintain Growth looking companies, and Profitability however, a downturn Survive the Downturn represents not a threat but an opportunity.” *Source: Winning in a Downturn, Boston Consulting Group, Fall 2008 Fact: 34% of companies worldwide are introducing new products and services to gain market share from weakened competitors. Source: McKinsey Global Survey, November 2008 What McKinsey is Saying “The winners will be companies that make thoughtful choices – despite the complexity, confusion, and uncertainty – by assessing alternative scenarios honestly, considering their implications, and preparing accordingly.” McKinsey Quarterly, Leading Through Uncertainty, December 2008 <Insert Picture Here> Risk and Performance Management Management Excellence Delivered Key Areas of Concern Key Areas of Focus for Leaders • According to Paul Coombes of the LBS, the three major areas of focus are to • Strengthen Governance • Control Key Risks • Re-think Priorities Paul Coombes, London Business School, Feb 2009 Corporate Executive Board Executive Guidance for 2009 “Consequences associated with making the wrong bets have become more severe. As executives fear being caught flat-footed when new risks emerge, they defer risk trade-off considerations and instead make decisions quickly and independently when issues arise. Growth opportunities are neglected, and a complete risk picture is missed.” Smart Strategy: Manage Risk & Performance Key to symbols The Top 10 Business Risks in 2009: Up from 2008 Downturn, new regulation ‫٭‬ Down from 2008 New entry The Top 10 Ranking from 2008 in brackets The credit crunch Regulation and 1. The credit crunch (2) compliance Deepening recession ‫٭‬ 2. Regulation and compliance (1) 3. Deepening recession (New) Cost-cutting Non-traditional 4. Radical greening (9) entrants 5. Non-traditional entrants (16) Business model redundancy ‫٭‬ 6. Cost cutting (8) Radical greening Managing talent 7. Managing talent (11) Executing 8. Executing alliances and transactions (7) alliances and 9. Business model redundancy (New) transactions Reputation risks 10. Reputation risks (22) Source: The 2009 Ernst & Young Business Risk Report Smart Strategy: Manage Risk & Performance Lack of Visibility Into Risks Negatively Impacts Corporate Forecasts Fact: 70% of CFOs today can’t forecast more than one month out. CFO Magazine, December 2008 Governance issues increase Shareholders Bankers 1 2 Business Credit- model viability worthiness Board 3 4 Transparency Adequacy of of information controls 5 Management 6 Clarity of direction Job security Employees Paul Coombes, London Business School, February 2009 10 Good Governance= No Surprises Transactions Reporting CFO Dashboard CFO Enterprise Risk Management Automated Risk Control Enforcement ERP: Hyperion Strategic Planning Oracle, Financial Financial Management Financial Planning Reporting SAP, and Legacy, And Compliance Other Data Quality Management Cost & Profitability Management Infrastructure Services CIO Oracle’s Management Framework Drives Business Results • Strengthen Governance • Control Key Risks • Re-Align Priorities Oracle Helps Manage Risk & Performance Saved $1M Reduced days by avoiding GRC to close from customizations 12 to 5 days Decreased time Payback in less for first budget than 5 months iteration by 45% Reduced monthly Reduced P&L time to close to reporting from 2 days 2 weeks to 2 days Cut Segregation Analytics added of Duties time from 5-9% new sales 2 months to 2 days opportunities Intuit Achieves Payback in Less Than Five Months COMPANY OVERVIEW CUSTOMER PERSPECTIVE • Industry leading Software & Financial “We’ve been able to realize significant Services Company with products like returns on our investment in the Oracle Consumer Tax and QuickBooks GRC Controls Suite to date. The 8.0 release • Employees: 7,500 of Oracle Application Access Controls • Annual Revenue: 2.35B Governor should help us continue our efforts to deliver well-controlled and CHALLENGES/OPPORTUNITIES efficient business processes, not only • Inappropriate responsibilities granted to across the E-Business Suite, but also in our employees without review and approval PeopleSoft and Siebel applications.