ATK

Business intelligence accurately forecasts costs and fluctuating variables to determine proposals and optimize profitability

Published on 03-May-2013

"Our business analytics platform is now an integral part of our business." - Mike Varecka, director of finance, Performance Management Program ATK

Customer:
ATK

Industry:
Aerospace & Defense

Deployment country:
United States

Solution:
BA - Business Analytics, BA - Business Intelligence, BA - Performance Management, Big Data & Analytics, Big Data & Analytics: Operations/Fraud/Threats, Smarter Planet

IBM Business Partner:
ProRes Group

Overview

Headquartered in Arlington, Virginia, Alliant Techsystems Inc. (ATK) is a global industrial company that develops and manufactures highly engineered materials and products that support mission-critical applications for defense, aerospace, security and sporting customers. Its largest customers include the US Army, Air Force and Navy, the US government and NASA. The company employs approximately 18,000 people at more than 60 facilities across 22 states, Puerto Rico and other countries.

Business need:
The company sought a solution that could quickly and accurately forecast fluctuations and costs over time and against the total value of a contract in order to calculate profitability.

Solution:
ATK uses a sophisticated business intelligence solution to gain new levels of precision in forecasting and budgeting to accurately estimate costs and determine the most competitive pricing for each contract proposal.

Benefits:
The IBM solution helped reduce the time required to update financial data, ensures consistency while maintaining enough flexibility and provide greater control of financial information.

Case Study

Headquartered in Arlington, Virginia, Alliant Techsystems Inc. (ATK) is a global industrial company that develops and manufactures highly engineered materials and products that support mission-critical applications for defense, aerospace, security and sporting customers. Its largest customers include the US Army, Air Force and Navy, the US government and NASA. The company employs approximately 18,000 people at more than 60 facilities across 22 states, Puerto Rico and other countries. ATK also has representatives in more than 50 countries and achieved annual sales revenue of USD4.8 billion in 2011.

The Opportunity
With majority of its business involving large-scale government contracts that span several years, ATK calculates the profitability of each contract by keeping a close track of labor, materials and other costs. However, its existing process was slow and error-prone. The company sought a solution that could quickly and accurately forecast fluctuations and costs over time and against the total value of a contract in order to calculate profitability.

What Makes It Smarter
When companies bid for large-scale government contracts that span several years, they are challenged with maintaining their profits over the life of the contract. ATK uses a sophisticated business intelligence solution to gain new levels of precision in forecasting and budgeting to accurately estimate costs and determine the most competitive pricing for each contract proposal. The solution allows the company managers to analyze volumes of fluctuating data, such as cost of labor and materials over time in these long-term contracts. With this forecast analysis, the manufacturer can identify options within individual departments and across the entire company and make strategic decisions to maintain a higher profit margin throughout the life of the contract.

Real Business Results
• Reduces the time required to update financial data by two days per month for forecasting contract profitability
• Ensures consistency while maintaining enough flexibility to support different business models
• Provides greater control of financial information, helping to meet Sarbanes-Oxley and other regulatory compliance requirements and to simplify external audits

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/cognos.

To learn more about ATK, visit www.atk.com.

Products and services used

IBM products and services that were used in this case study.

Software:
Cognos Controller, Cognos Business Intelligence, Cognos Collaboration

Service:
Software Services for Business Analytics

Legal Information

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