Assignment Managing Financial Resources
Author: Peter Neirynck
Learning Team:Regional Group B – TIE team
Date: October 29, 2007
This paper analyses critically the financial performance management within IBM Software Group Belgium and IBM Southwest IOT.
In order to understand how the financial reporting is an enabler for the execution of the corporate strategy, we analyse the published financial information, the budgeting cycle and short term decision process inside IBM, each on various levels from business unit to geo-level.
The main finding is that the financial processes are very well structured within IBM, and lead to correct financial reporting.
However, this paper recommends that communication should be enhanced by application of a bottom-up approach, which would lead to more understanding/acceptance by the workforce of a finance culture.
Table of Contents
2.3IBM IOT Southwest8
2.4IBM Belgium & Luxembourg9
2.4.2Key resources within IBM Software Group Belgium11 2.4.3My role within IBM SWG Belgium11
3.5Practical utility of the data17
3.6Quality of the data17
4Short-term decision analysis18
4.2Key limiting factor19
5Business planning and budgeting20
5.2.3Rolling budgets/years forecast or out-turn24
5.4Practical Utility of the data24
5.5Quality of the data24
6.1Table of figures26
Table of abbreviations
BCSBusiness Consulting Services
CRMCustomer Relationship Management
EMEAEurope, Middle-East and Africa
IBMInternational Business Machines Corporation
IBM SWG BeLuxIBM Software Group Belgium-Luxembourg
IMTIntegrated Marketing Team
IOTIntegrated Operating Team
ITSIntegrated Technology Services
NBBNational Bank of Belgium
PBITProfit Before Interest payable and Taxation
POTProof of Technology
PWCCPrice Waterhouse Coopers Consulting
SMBSmall and Medium Business
SOAService Oriented Architecture
1 Assignment structure
This paper consists of on 4 major parts, after the executive summary, which highlights the key findings of the assignment, and the introduction to the scope and context, we will assess the usefulness of ratio-analysis for IBM Belgium. We will challenge the ratios with the ratios of HP Belgium.
In chapter 4 we will investigate the usefulness of short–term analysis for IBM Software Group Belgium.
In the last chapter we will examine the usefulness of Business Planning and Budgeting to the management of the Southwest IOT.
Figure 1: assignment structure
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate, is a complex organization with approximately 330,000 employees worldwide in 175 countries. Hereunder we created an overview of the IBM organization.
Figure 2: Organization of IBM
The Company's major operations comprise a Global Services segment, a Systems and Technology Group, a Software...