Christian Lindholm, VP Financials, SAP EMEA April 20, 2016sapevents.be/FID/presentations/0.2 _...
Transcript of Christian Lindholm, VP Financials, SAP EMEA April 20, 2016sapevents.be/FID/presentations/0.2 _...
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Financial Digital Transformation Christian Lindholm, VP Financials, SAP EMEA April 20, 2016
Public
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Nine changes Shaping the Finance Professional’s career
1. Today’s finance professionals find their work more engaging and influential than they had anticipated
2. Finance professionals don’t see themselves standing still – they expect to grow professionally and extend their reach into even more parts of their companies
3. Finance is becoming the central touch point in many different aspects of their enterprises
4. Finance teams must adapt to a business environment in which decisions are more complex, yet still need to be made faster than ever
5. Finance professionals are eager to be counted on for forward-looking analysis and business insight
6. Finance professionals are looking for ways to gain a deeper understanding of more parts of the business
7. Better use of sophisticated technology lies at the heart of finance’s efforts to drive performance improvement
8. Finance professionals are grasping digitalization of the information flows as the foundation for their successful delivery of advanced analytics
9. Digitalization and automation often are seen as opportunities to provide additional value, rather than as disruptive threats to finance jobs
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The Challenges for Finance Professionals
Can you respond to data requests in under a day?
Need to analyse data more quickly
Granularity is regularly sacrificed for the sake of
speed
Only 12% 90% agree 56% agree
”Finance executives recognize need for speed in data analysis – but few companies are able to deliver in real.”
cfo.com research
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The Challenges for Finance Professionals
76% of CFOs believe that at least half their time should
be spend on high-value planning and analytic
activities
More automation is required
New skill sets and capabilities is required to
take full advantage of automation
55% achive it 72% agree 68% agree
cfo.com research
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The New Reality
Strategy and
growth
Business performance
Compliance and efficiency
Traditional Finance Department Next Generation Finance Department
Inflexible and complex business models, proactive pattern identification and scenario modeling not possible
Information delays results in reactive reporting and analytics. Manual processes reduces the effectiveness of Finance.
Incomplete results due to disconnects between finance and operations.
Data redundancy leads to inconsistencies between transactional and analytical systems
Strategy and
growth
Business performance
Compliance and
efficiency
Architecting new business models Flexible modeling, deep analysis, and rapid implementation of new business models
Insight in the hands of the business Instant insight-to-action anytime, anywhere, enabled by single source of the truth
“Lights-out” finance processes Automated and networked processes, event-driven, and inherently compliant.
“The finance function is not reactive, but it is more proactive....Its job is to anticipate change based on continual updating of the key assumptions that truly drive business performance.”
—S. Venkat Padmanabhan, Senior Vice President/Head-Products (Finance and Accounts), Olam International
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How is the next generation different?
Logistics Document
CO Document
FI Document
Totals & Indices
Financial Accounting
Totals & Indices
Management Account.
From … Stability
Processing
Analytics
CO Document
FI Document
Flexibility
Views on the fly
Pre-Defined Aggregates
Flexibility
Stability
Processing
Analytics Logical document
Logistics Document
… To
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Close batches
Consolidation batches
Initial period Close and consolidation
Reporting on demand
Close and consolidation Initial period
How is the Close process transforming Soft financial close anytime
With Next Generation: � Real-time system with key performance indicators (KPIs)
instantly refreshed � Elimination of end-of-period batch bottlenecks � Continuous intercompany reconciliation � Continuous financial reporting visibility � Profitability analysis and line-item detail reconciliation � Automation for routine tasks � Full management visibility of close tasks
With traditional system: � Close activities that don’t begin until period end � Multiple batch-run dependencies � Batch bottlenecks that delay downstream activities � High error-correction efforts � Complex issues that are postponed until after close � Time-pressured resolutions � Delayed visibility into reporting
Traditional system With Next Generation system
User interaction
Ad hoc
Traditional Next Generation
Process excellence
User interaction
Ad hoc
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User interaction
Ad hoc
How is the Planning process transforming Planning and predictive finance
With Next Generation system: � Single consolidated view of all planning and forecasting information � Rollup of planning from subsidiaries into corporate planning � Rollup of planning from operations into financial planning to measure
the financial impact of operational plans � Leveraging of real-time information to immediately update plans and
forecasts � No lag time for updates across objects � Predictive capabilities to model planning options
With traditional system: � Different planning processes and interfaces � No consolidation of related plans between objects � Lack of insight of operational planning into the financial
bottom line � Manual consolidation of planning across objects � Inability to update plans and forecasts � No what-if capabilities, resulting in guesswork
Traditional system With Next Generation system
Traditional Next Generation
Process excellence
User interaction
Ad hoc
Expense Planning
P&L Planning Profitability Planning
Database
Common Planning Model
Views
Expense Planning P&L Planning Profitability
Planning
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How is Cash Management transforming Real-time cash management and forecasting
With Next Generation: � New cash management solution combining analytical functions
and related transactions � Consumer grade front-end and KPI-based analytics available � Including integrated bank account management for the central
administration of bank accounts and signatories � Integrated planning model embedded – benefiting from a
synchronized and harmonized data model � Flexible and non-disruptive cloud or on-premise deployment
options
With traditional system: � Only limited basic cash management functions � Almost no analytical capabilities � Liquidity planning function outside enterprise resource
planning � No bank account management available � Limited capabilities to integrate data from other systems � No option to run in the cloud
Traditional system With Next Generation
Traditional Next Generation
Process excellence
X
Z Y ERP
Cash management
Bank Cloud
ERP
Cash management
X
Y
Cloud
Z
Bank Bank
Bank
Bank
User interaction
Ad hoc
User interaction
Ad hoc
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How is Architectures transforming Rethink how you deploy and integrate enterprise software
With Next Generation: � Single source for finance transactions, planning, consolidation, and
reporting � Real-time integration � Support any kind of source system (Oracle, MS etc.)
With traditional system: � Never truly get “One Version of the Truth” � Many systems, applications, data sets, extractions, transformations,
processes � Year-long integration issues between eliminating old systems
Traditional System With Next Generation
User interaction
Ad hoc
Traditional Next Generation
Process excellence
User interaction
Ad hoc
Any SAP or non-SAP release
SAP
Central Instance
Non- SAP
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SAP S/4HANA reimagines businesses for the digital economy
Customer Experience Omnichannel
Workforce Engagement
Assets and Internet of Things
Supplier Collaboration and Business Networks
The Digital Core
� The entire value chain is digitized, including the digital core that serves as the foundation for business innovation and optimization.
� The digital enterprise interconnects all aspects of the value chain to drive and anticipate business outcomes in real time.
� Enterprises across industries can lead the digital transformation by completely reimagining business models, business processes, and work.
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SAP Finance Solutions
Operational Management
Enterprise Performance Management
Accounting and Financial Close
Financial Planning and Analysis
Treasury and Financial Risk
Collaborative Finance Operations
1
2
3
4
0110
1100
111
$
AP AR GL
Banks
$ € £ ¥
Suppliers
Transactions
Customers
Order
Invoice
Delivery
Payment
Order
Delivery
Employees
• Profit and Loss • Balance Sheet • Cash Flow
2012 2015 2020 2013 Today
Future Historic
Payment
Invoice
Regulator Stakeholders
Investment
• Actual vs. Budget • What if • Profitability • Forecast
Close Plan Predict/Model
Cash and Liquidity
Management
Collaboration • Receivables management • Collaborative Invoice to Pay • Travel Management • Shared Services Framework • Bank Communication / FSN
Finance Operations • Real Estate Management • Lease Management
2 1
3
Collaborative Finance
Operations
Close S/4HANA FINANCE
4
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SAP S/4HANA Finance
Instant Insight Real end-to-end in memory
Intuitive User Experience Productivity Improvements
Business Networks Always connected
Financial Planning and Analysis
Treasury and Financial Risk
Enterprise Risk and Compliance
Accounting and Financial Close
Finance Operations
Universal Journal
Real Time Accounting
Instant Financial Analysis
Real Time and
Predictive Planning
Real Time Treasury and Cash
Management
End to End Process
Automation
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The Digital Boardroom Enabling a transformation in Decision Making
Automated Processes
Real Time Processes
Production Marketing Strategy
Head of Sales
CEO CFO
Head of Products
Real Time Reporting
Agile Planning
Comprehensive Risk Management
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The Benefits of Transforming your Finance IT
Respondents with tightly integrated ERP and FP&A systems deliver high value
Automation raise finance’s importance within the
organization
Advanced analytics would yield measurable financial
benefits
82% Agree 72% agree 87% agree
cfo.com research
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Cirque du Soleil
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Türk Telekom: Consolidating Its ERP Landscape and Powering Reporting with SAP® S/4HANA Finance
Shorter Closing period by up to 2 days
Greater Clarity and visibility into financial data
More Flexibility in business operations
Simpler Processes that eliminate unnecessary workload
“SAP S/4HANA Finance will help Türk Telekom simplify processes. Easier access to real-time financial data has accelerated reporting and analysis. The solution helps us to be more flexible in our business operations and enables us to grow organically.” Zafer Pinarcik, Group Financial Controller, Türk Telekomünikasyon A.Ş.
40387 (15/10) This content is approved by the customer and may not be altered under any circumstances.
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Overview Screen Main and Context Screen Exploration Screen
Ø Overview Screen: Group financial information and industrial production.
Ø Context Screen: Focus on water services. Main KPIs from Workforce Management, actual and plan.
Ø Exploration Screen: Detail information for the maintenance activities.
The POC is dynamic thanks to the possibility to explore and navigate the data. In specific, we can: - Filter the data on screen and on the map, we can adapt the view to specific data. - Execute simulations - Drill-down to detail information
Digital Boardroom POC at an Utility Company
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Thank You