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Dow Finance

Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

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Align the strategy

Dow Finance SWOT Analysis

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

Strengths

  • EFFICIENCY: Industry-leading cost structure and operational excellence
  • PORTFOLIO: Diverse portfolio across high-value growth markets
  • SUSTAINABILITY: Strong ESG performance metrics and circular initiatives
  • FINANCIAL: Robust cash flow generation supporting growth investments
  • INTEGRATION: Vertically integrated operations enhancing supply stability

Weaknesses

  • CYCLICALITY: Vulnerability to economic cycles affecting core markets
  • LEGACY: Aging infrastructure requiring significant capital investment
  • DIGITAL: Underinvestment in advanced financial analytics capabilities
  • FORECASTING: Limited predictive modeling for commodity price volatility
  • DECENTRALIZATION: Siloed financial processes across business segments

Opportunities

  • SUSTAINABILITY: Capitalize on growing demand for sustainable solutions
  • DIGITALIZATION: Leverage advanced analytics for improved forecasting
  • MARKETS: Expand into high-growth regions, particularly Asia-Pacific
  • INTEGRATION: Enhance value chain integration with strategic partners
  • INNOVATION: Develop financial models for breakthrough technologies

Threats

  • COMPETITION: Intensifying global competitive landscape
  • REGULATIONS: Evolving environmental regulations and compliance costs
  • VOLATILITY: Unpredictable raw material and energy cost fluctuations
  • DISRUPTION: New market entrants with innovative business models
  • GEOPOLITICAL: Trade barriers and regional economic instabilities

Key Priorities

  • DIGITALIZATION: Accelerate deployment of advanced financial analytics
  • SUSTAINABILITY: Develop financial framework for ESG-focused initiatives
  • FORECASTING: Enhance predictive models for commodity markets
  • INTEGRATION: Streamline financial processes across business segments
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Align the plan

Dow Finance OKR Plan

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

DIGITAL REVOLUTION

Transform finance through cutting-edge analytics

  • PLATFORM: Implement integrated financial analytics platform with real-time dashboards for all business units by Q3
  • AUTOMATION: Reduce manual reporting processes by 40% through AI-powered automation, saving 2,500 hours quarterly
  • TRAINING: Complete advanced analytics certification for 85% of finance team members by end of Q2
  • INSIGHTS: Deliver 5 high-impact predictive analyses that influence strategic business decisions worth $50M+
SUSTAINABLE GROWTH

Drive financial framework for ESG leadership

  • METRICS: Develop comprehensive financial measurement system for sustainability initiatives across all segments
  • ROI: Quantify financial returns for top 10 circular economy projects with projected 5-year NPV of $300M+
  • REPORTING: Implement enhanced ESG financial reporting that exceeds TCFD standards by end of Q2
  • CAPITAL: Secure $500M in sustainability-linked financing with favorable terms based on ESG performance metrics
PREDICTIVE POWER

Master market forecasting with precision

  • MODELS: Deploy machine learning models that improve commodity price prediction accuracy by 30% vs traditional models
  • SCENARIOS: Create dynamic financial simulation tool capable of modeling 50+ variables with real-time market inputs
  • VALIDATION: Achieve <5% variance between forecasted and actual performance across key financial metrics
  • INTEGRATION: Connect predictive tools to operational planning systems in all business units by end of Q2
ONE FINANCE

Unite financial processes across the enterprise

  • STANDARDIZATION: Harmonize financial processes across all business segments reducing variations by 75%
  • EFFICIENCY: Decrease finance cost-to-revenue ratio from 1.2% to 0.9% through process optimization
  • COLLABORATION: Implement cross-functional financial planning approaches for all major business initiatives
  • VISIBILITY: Create single-source financial truth platform with 99.5% data accuracy accessible to all key stakeholders
METRICS
  • Adjusted Operating EBITDA Growth: 12% by 2026
  • Finance Digital Transformation Index: 85/100
  • Sustainability-Linked Financial Impact: $250M+
VALUES
  • Integrity
  • Respect for People
  • Protecting Our Planet
  • Customer-Centricity
  • Inclusion and Collaboration
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Align the learnings

Dow Finance Retrospective

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

What Went Well

  • MARGINS: Successfully maintained operating EBITDA margins despite input cost pressures
  • PACKAGING: Performance Materials & Coatings segment exceeded revenue expectations
  • COST: Delivered $250M in cost savings through operational excellence initiatives
  • CASHFLOW: Generated strong free cash flow supporting dividend and share repurchases
  • SUSTAINABILITY: Advanced circular economy initiatives with measurable financial returns

Not So Well

  • VOLUME: Industrial Intermediates segment volumes declined 3% year-over-year
  • EUROPE: Regional economic headwinds impacted EMEA performance expectations
  • VOLATILITY: Unexpected energy cost fluctuations compressed margins in Q4
  • CAPEX: Delays in key capital projects impacting strategic growth initiatives
  • INVENTORY: Higher than optimal inventory levels affecting working capital metrics

Learnings

  • FLEXIBILITY: Need for more agile budgeting processes to respond to market changes
  • MODELING: Current forecasting models underestimated commodity price volatility
  • INTEGRATION: Better alignment needed between finance and operational planning
  • BENCHMARKING: Regular competitive analysis critical for strategic positioning
  • TRANSPARENCY: Enhanced scenario planning improves stakeholder communications

Action Items

  • IMPLEMENT: Develop advanced predictive models for commodity price forecasting
  • OPTIMIZE: Execute working capital improvement plan to reduce inventory by 12%
  • ACCELERATE: Fast-track digital transformation initiatives for finance functions
  • ENHANCE: Strengthen financial analysis capabilities for sustainability projects
  • INTEGRATE: Consolidate financial planning systems across business segments
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Drive AI transformation

Dow Finance AI Strategy SWOT Analysis

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

Strengths

  • DATA: Vast amounts of historical financial and operational data
  • INFRASTRUCTURE: Established ERP systems ready for AI integration
  • LEADERSHIP: Executive commitment to digital transformation
  • EXPERTISE: Strong foundation in quantitative financial analysis
  • RESOURCES: Capacity to invest in AI talent and technologies

Weaknesses

  • FRAGMENTATION: Disconnected data sources across business units
  • SKILLS: Limited specialized AI expertise within finance teams
  • LEGACY: Outdated forecasting models not optimized for AI
  • CULTURE: Risk-averse approach to implementing new technologies
  • GOVERNANCE: Underdeveloped data governance and security protocols

Opportunities

  • AUTOMATION: Streamline routine financial processes with AI
  • PREDICTIVE: Enhance forecasting accuracy with machine learning
  • INSIGHTS: Generate deeper business intelligence from existing data
  • EFFICIENCY: Reduce finance operational costs by 25-30% with AI
  • DECISION-MAKING: Support strategic decisions with AI-driven scenarios

Threats

  • COMPETITION: Competitors rapidly adopting AI for financial advantage
  • TALENT: Fierce competition for skilled AI finance professionals
  • COMPLEXITY: Regulatory challenges in implementing AI solutions
  • INVESTMENT: Risk of significant investment with uncertain ROI
  • DISRUPTION: Potential business disruption during implementation

Key Priorities

  • TALENT: Develop specialized AI capabilities within finance teams
  • AUTOMATION: Prioritize high-impact AI use cases for immediate value
  • GOVERNANCE: Establish robust data governance framework for AI
  • INTEGRATION: Create seamless data pipeline across business units