Huntsman Corporation achieves 1,060% ROI With IBM Business Analytics

Financial close process standardized, improving productivity and creating enterprise-wide accounting uniformity

BOSTON – February 23, 2010 – Nucleus Research analysts examined the deployment of IBM Cognos TM1 at Huntsman Corporation, which generated a return on investment (ROI) of 1,060% with a payback in five weeks.

Huntsman Corporation manufactures products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Operating in five segments, the publicly held company employing approximately 12,000 people identified an opportunity to achieve cost reductions while upgrading its systems for compliance with Sarbanes Oxley.

Administrators at Huntsman initially relied on three different deployments for closing monthly, quarterly and annual statements, each requiring different systems for multiple ERP solutions. Analytical tools available from non-IBM reporting vendors were not flexible enough to provide the granularity of financial analysis required. A systems review found the fully automated IBM Cognos TM1, already in use in an existing deployment, was the most functional solution and was implemented enterprise-wide across all accounting workflows.

In using pre-existing accounting software, the full deployment of IBM Cognos TM1 increased reporting visibility and did not require additional accounting staff to achieve Sarbanes Oxley compliance. Audit fees were greatly reduced because all data resided in one deployment and audit reporting became far more rapid. Accountant efficiencies have improved enterprise-wide, eliminating manual workflows, reconciliations and rework during the financial close process and increasing productivity by 50%.

”The Huntsman deployment had a high ROI because it created enterprise-wide uniformity in the financial close. This meant that Sarbanes-Oxley compliance was achieved without adding headcount, accountants became more productive and the annual audit resulted in far fewer billable hours” said David O’Connell, senior analyst, Nucleus Research.

All Nucleus Research ROI case studies are independent assessments, evaluating the costs and benefits from the IT deployment. The case study is available at www.NucleusResearch.com

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