Welcome to the Financial Excellence Stream - UKISUG · Corporate Close Elimination of bottlenecks for faster financial consolidation and reporting ... Automates invoice management

Welcome to the Financial Excellence Stream

Sponsored by:

Simon Geddis

SAP

Introducing Innovations in Finance:

Empowering Finance with Real-Time Insight

Agenda

Market Observations

SAP Solutions

SAP Innovations and Demos

Wrap-Up

Market Observations

© 2013 SAP AG. All rights reserved. 4

Increased Globalization Expansion into new markets

Global process standardization

Localization requirements

Economic Volatility Volatility in markets

Decreased stock valuation

Slow economic growth

The Realities of the “New Normal” for Finance

Pressure on Margins Profitability by segments

Decreased budgets and spending

Determination of the cost to serve

Focus on Risk Financial risk and fraud

Commodity risk

Social sentiment affects brand value

New Business Models Shared services organizations

Business partnerships

Leveraging big data for decisions

Regulatory Changes Increasing disclosure requirements

Country-specific regulations

Industry-specific disclosures


Top Business Priorities for the CFO Finance Executives Prioritize Closer Collaboration with the Business

Over the next 2 years, priorities for finance are:

• Control costs and improve profitability

• Support and fund growth objectives

• Improve finance efficiency/reduce cost of

finance

76% of Finance executives believe at least half

their time should be on high-value planning and

analytic activities, though only 55% achieve this

76% want Finance to be more involved working

with the business during the next 2 years

*Source: Source: CFO.com Research 2013


Technology Supports the Goals of the CEO and CFO

71% of CEOs believe that technology is the

top driver of organizational change (the #1

factor), surpassing people skills (69%) and

market factors (68%)*

Finance expects their business will demand

help with growth (strategic planning),

increased value (cost management) and

managing uncertainty (planning, budgeting

and forecasting) **

The top improvement area for finance

executives is improving capabilities for

predictive analytics and simulations **

*Source: IBM Leading Through Connections – Insights

from the Global Chief Executive Officer Study

**Source: CFO.com Research 2013


Achieve Financial Excellence

From Plan to Action

Processes and Services

Compliance and Risk

Execute Predict Control


Predict Drive strategy to execution for optimal performance

Gain real-time access to financial information and KPIs

Predict future profitability with integrated planning

Control Seamlessly manage the financial close in a unified way

Reduce financial risk and optimize working capital

Ensure regulatory compliance and governance

Execute Streamline finance operations while reducing cost

Enable self-services for access to financial data

Choose from lean and flexible deployment modes

Achieve Financial Excellence

SAP Solutions


Achieve Financial Excellence with End-to-End Solutions

3x Lower finance cost as percentage of revenue for top

quartile organizations versus bottom quartile

organizations

Source: SAP Performance Benchmarking

SAP Financial Planning and Analysis

SAP Accounting and Financial Close

SAP Treasury and Financial Risk Management

SAP Collaborative Finance Operations

SAP Enterprise Risk and Compliance Management


SAP Financial Planning and Analysis

76% Higher operating margin where financial systems provide

historical and forward-looking views into financial and

operational performance


Develop and Translate Strategy Provides enterprise-wide alignment of corporate and operational goals.

Planning, Budgeting and Forecasting Helps organizations monitor and achieve critical key performance indicators

(KPIs) in a defined period of time.

Profitability and Cost Management Manages organizational costs to optimize profitability.

Monitoring and Reporting Provides analysis to support financial and operational decision making.


SAP Accounting and Financial Close

26.1% Fewer days to close annual books in an

integrated G/L system so that no reconciliations

are necessary


Financial Accounting Accounting support for multiple financial reporting standards, industries,

currencies, and languages.

Entity Close Strong governance, fast execution, and real-time insight into the entity’s

financial close.

Corporate Close Elimination of bottlenecks for faster financial consolidation and reporting

cycles – with complete confidence in the financial data.

Reporting and Disclosure Publication of regulatory disclosures as well as creation of XBRL filings, for

a holistic regulatory disclosure process.

Financial Close Governance Enablement of a trusted view of subsidiary performance and compliance

through consistent financial master data.


SAP Treasury and Financial Risk Management

56% Lower treasury and cash management FTEs where the

treasury system calculates various treasury analyses

such as mark to market and value at risk


Payments and Bank Communications Speedy decision making with reduced fees and borrowing costs.

Cash and Liquidity Management Real-time insight into global cash management.

Debt and Investment Strategies Strategies that lead to the best borrowing rates and lower investment costs.

Financial Risk Management Assets and cash flows protected from financial risks.

Commodity Risk Management Risks associated with commodity price volatility can be identified, qualified,

and mitigated.


SAP Collaborative Finance Operations

44% Fewer finance FTEs in transactional processes with

streamlined, automated, and integrated core finance

processes


Receivables Management Provides automated, integrated, and collaborative receivables management

processes.

Collaborative Invoice to Pay Automates invoice management and bank communications while improving

the archiving process.

Travel Management Streamlines the entire trip lifecycle to control costs and enforce corporate

and legal compliance.

Shared Services Framework Supports financial shared services that improve productivity, help ensure

compliance, and cut operational costs.


SAP Enterprise Risk and Compliance Management

22% Lower audit cost with the use of automated controls

rather than manual controls


Enterprise Governance, Risk and Compliance Reliable insight for preserving and growing business value and compliance

management with minimized cost and effort.

Access Risk Management Minimized access risk and fraud prevention.

Global Trade Compliance Heightened control of international trade supply chain.

Sustainability Reporting Tracking and communicating your sustainability performance, collecting

data, and compiling disclosures quickly and cost-effectively.

SAP Innovations and Demos


SAP Innovations

80% of decision makers think access to the

right information at the right time is

critical to their business


Applications SAP HANA Mobile Analytics Cloud


Application Innovations for Finance

53% Of organizations report a large gap between availability of

Big Data and their ability to analyze it


Commodity Risk Management Identify, qualify and mitigate risks associated with commodity price volatility.

Fraud Management Detect fraud earlier and more accurately to reduce financial loss.

Disclosure Management Publish your financial statements and create XBRL filings for fully compliant

regulatory disclosures.

Electronic Invoicing Digitize your purchase orders and invoices to maximize discount capture

and comply with contracts and VAT regulations.


How can Mobility Transform Finance?

Enable the business to make

better decisions in real-time,

anytime, anywhere

Enable Finance executives to

manage their operations more

effectively

Accelerate key process cycle

times and eliminate approval

bottlenecks


Basic Alerts

Pre-built Apps

Mobilize

Existing Content

Next Generation

Mobile Analytics

The Broad Range of Empowerment with Mobile

Compliance risks

Performance

thresholds

Approvals

Operational alerts

Travel updates

Delivered

out-of-the-box

Available for

download on app

stores

Extend enterprise

data

Leverage user roles

Reports

Explorer data sets

Operational data

Dashboards

Why?

What if?

When?

Take immediate action

Mobilizing “big data”

Flexible, ad-hoc

analysis


Mobile Finance is Already a Reality Today

Payment

approvals

Manage departmental spend

Customer credit and

payment information

Dashboard analysis

including net margin

Travel expenses

Approve system access

Manage KPIs and

strategic initiatives


Mobile Innovations for Finance

24% Higher operating margins where enterprise mobility is

embedded in all business processes


Planning, Budgeting and Forecasting Review planning and budget information, initiate analysis and corrective

action, and respond to alert and status updates.

Dashboards Monitor operational finance information with real-time calculations of

configurable KPIs and visual heat maps on iPad devices.

Alerts and Approvals Provide access to operational alerts and approvals for payments, travel

requests and expenses, and access requests.


How can Analytics Transform Finance?

Immediate insight into financial

performance and profitability of

the organization

Quick and complete what-if and

predictive analysis to determine

the financial impact of decisions

Combine structured and

unstructured information for a

holistic view


Immediate Financial Insight for Better Decisions Finance as the Strategic Advisor

Transactional

Data

Planning

Information

Market

Data Budget

Information

Corporate

Strategy

What-If

Simulations

Profitability

Calculations

Profitability

Calculations

Immediate insight into

financial performance, KPIs,

and profitability through

dashboards

Quick and complete what-if and

predictive analysis data to

determine the financial impact of

business decisions

Combine structured and

unstructured information for

a more complete picture of

finance results


Analytics Innovations for Finance

15% Fewer days sales outstanding where finance leadership

has a financial dashboard that provides a timely view into

predefined key metrics


Consolidated Reporting and Analysis Obtain holistic performance insight, supported by KPIs and metrics, to measure

financial and operational performance.

Embedded Analytics Access ready-to-consume analytics while running financial transactions, from

accounting and financial reporting to treasury and credit risk.

Advanced Analyses Predict and model potential outcomes of strategic decisions to support business

growth initiatives.


How can Cloud Transform Finance?

Increased usability and mobility

with people-centric design

Quick, cost-effective deployment

of software-as-a-service with

regular updates to capabilities

Integration into core transactional

systems to leverage existing

processes


Flexible Options for Modular Deployment

Traditional on-premise

On-Premise

with Mobile

Hybrid & Cloud

Extensions

Mixed On-Premise & Cloud

Cloud with

Mobile

Enterprise and Partner Cloud

Chose from modular

deployments for SAP ERP

Financials, SAP EPM, and

SAP GRC solutions

Leverage SAP solutions in

the Cloud for fast

deployment for finance with

no local installations

Combine your on-premise

investment with specific

solutions, such as travel

and Ariba supplier networks


Cloud Innovations for Finance

85% Believe the cloud will have a major impact on their

organization through efficiencies, innovation, or

competitive differentiation


Financials Access easy to consume financial information for all lines of business, with

preconfigured KPIs for personalized insight and role-based analytics.

Travel Control travel costs, facilitate corporate and legal compliance, and increase

process efficiency with an intuitive user experience and mobility.

Financial Services Network Leverage a single connection point and standardize integration between

financial institutions and their customers.


How can In-memory Transform Finance?

Enable more agile and more

effective Finance processes

Provide instant insight to action

based on real-time information

Provide pervasive modeling,

planning, and simulation

capabilities to better manage

uncertainty


The Revolutionary Results with Financials on SAP HANA

Financials on HANA: Financials Lab Preview Highlights

Report Speed Improvement

New reporting experience with near-

second response time (e.g., Treasury

position list and Line Item Browser for

General Ledger, Customer, Vendor)

Up to

1350x

Profitability Analysis

Enables you to run Profitability Analysis as

online report for different views and cost

hierarchies. Gives decision critical insight

for business planning and reviews.

124x

Incoming Payment Clearing

Advanced search for open items (e.g.,

invoices) to be cleared by incoming

payments; all FI customers can improve

the processing time of one of the most

labor-intensive processes in FI-AR

71x

Intercompany Reconciliation

Intercompany reconciliation runs real-time

and enables single source of truth in single

instance or central finance system

landscape through direct access to finance

data tables instead of copied data.

Reduction of TCO as data is not replicated

anymore.

> 200x

Document Journal Report

Stable responsiveness of the application

by various combinations of attribute

selection

978x

Acc. Receivables Dashboard

New app that enables the receivables

manager to assess and respond quickly

and appropriately to changes in customer

payment behavior

No latency

KPIs

Up to Up to


SAP HANA for Finance: Suite Deployment Options

SAP Business Suite

powered by SAP HANA SAP Business Suite

SAP HANA as side-by-side

scenario

Any DB

SAP

ERP

SAP HANA

SAP

ERP

SAP HANA


SAP HANA Innovations for Finance

68% Of organizations have limited or no predictive modeling

capabilities or complex optimization techniques for Big

Data analysis


Financial Planning and Forecasting Develop strategic long-range plans including top down planning with driver-

based inputs, rolling period planning, and dynamic event-based forecasting.

Cash Forecasting Project liquidity based on the cash position for all operating units, using

real-time activity from purchasing, sales, and other cash-relevant systems.

.

Working Capital Management Interactively explore causes of working capital changes and optimize

strategies to improve company liquidity, efficiency, and financial health.

Financial Close Management Provide real-time insight into the process, quality, and financial KPIs of the

financial close.

Wrap-Up


Achieve Financial Excellence with Innovative

Technologies

Predict

Plan to Action

Outperform financial objectives

and create sustainable value

Compliance and Risk

Ensure regulatory compliance and

effective risk management Processes and Services

Deliver superior service at

reduced cost


Where to Find More Information:

Web, Social Media

www.facebook.com/sapfinancialmanagement

www.facebook.com/sapepm

www.twitter.com/cfoknowledge

www.twitter.com/sapepm

You can also follow us on:

http://cfoknowledge.wordpress.com/

http://scn.sap.com/communi

ty/epm

http://scn.sap.com/communi

ty/erp/financials

CFO and Finance Leader Center:

www.sapcfo.com

sap.com:

www.sap.com/financialexcellence

Subscribe to our monthly newsletter:

www.sap.com/finance-newsletter

www.youtube.com/playlist?list=PL447

4C3D66B0F41BF

http://www.google.co.uk/imgres?imgurl=http://www.amitbhawani.com/blog/Images/T/Twitter-Icon.png&imgrefurl=http://www.amitbhawani.com/blog/twitter-logo-generator/&usg=__LjedNPB-maBDaSt6H5N66dT4cfs=&h=256&w=256&sz=27&hl=en&start=4&sig2=iahqKiigoN2XKvd6ckcBPw&zoom=1&itbs=1&tbnid=FbMT-lNSzauZsM:&tbnh=111&tbnw=111&prev=/images?q=twitter&hl=en&gbv=2&tbs=isch:1&ei=TN3PTJ-sA4SXOsj-mc0E

http://www.google.co.uk/imgres?imgurl=http://static.technorati.com/10/09/17/18465/Facebook-icon.png&imgrefurl=http://technorati.com/blogging/article/facebook-posting-trips-up-woman-in/&usg=__zBXtxtN8b2nlf_badOiK0_61d0U=&h=512&w=512&sz=44&hl=en&start=3&zoom=1&itbs=1&tbnid=5DyhH8M7S3rMYM:&tbnh=131&tbnw=131&prev=/images?q=facebook&hl=en&gbv=2&tbs=isch:1

http://www.google.co.uk/imgres?imgurl=http://www.antilopnewmedia.com/images/wordpress_bleu.jpg&imgrefurl=http://www.antilopnewmedia.com/blogging.php&usg=__omsd54rkROa1OAWLJon1FrrTN-E=&h=480&w=480&sz=114&hl=en&start=5&sig2=Pn_qU-300wzrN5BO5QK-4w&zoom=1&itbs=1&tbnid=cta_TUjNwrFG5M:&tbnh=129&tbnw=129&prev=/images?q=wordpress&hl=en&gbv=2&tbs=isch:1&ei=0NzPTOW0CoKeOr-LmdkE

http://www.sapcfo.com/

http://www.sap.com/financialexcellence

http://www.sap.com/finance-newsletter




http://www.youtube.com/playlist?list=PL4474C3D66B0F41BF

http://www.youtube.com/playlist?list=PL4474C3D66B0F41BF

Thank you

Simon Geddis Head of Business Analytics Presales

SAP UKI

SAP Clockhouse Place

Bedfont Road

Feltham, TW14 8HD

E [email protected]

mailto:[email protected]




Welcome to the Financial Excellence Stream - UKISUG · Corporate Close Elimination of bottlenecks for faster financial consolidation and reporting ... Automates invoice management

Documents