CIMA Dublin MIAGEN on FP&A Best Practices June '15

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New Thinking, New Possibilities, Cloud CPM


T H E G L O B A L L E A D E R I N C L O U D B I & C P M

FP&A Best PracticesImprove your budget & forecast process


Howard Kent - Chairperson

Teddy Murphy – CEO, MIAGEN

Tim Lee – Senior Consultant, MIAGEN

Today’s speakers


Best Practices for Planning & Forecasting

Demonstration

Panel Discussion

Agenda


Teddy Murphy – CEO, MIAGEN

Best Practices for Planning & Forecasting


20 Years ago in Budgeting


More than 90% of spreadsheets contain serious errors, while

more than 90% of spreadsheet users are convinced that their

models are error-free.

“”


What has changed............• Systems - for everything

• Too much data - information overload

• Valuable information – but difficult to find

• Everyone's busy (silos) - doing what?

• More Change - decision making difficult

Today - 2015

Crunch90%

Analysis10%

VS


10 Years from today............• Algorithms, Artificial Intelligence, Integrated

• Global connectivity to relevant data, holistic

• Trust systems to produce valuable information

• CFO – Informed Decision Maker & Strategic Leader

• Agile Organisation – Decision Making easier

The Future


The Current State of PlanningTime, Effort, Integrity


What Finance is Saying:Process and Tech Priorities

Ongoing monitoring

Quality of data

Reducing operating costs

Enterprise-wide view

Product and customer profitability

Sharing relevant information

Decision making

8%

9%

9%

11%

11%

13%

16%

GRC

Reconciliations

Cloud computing

Workflow

ERP

Business analytics

3%

2%

16%

17%

23%

35%

8%

11%

8%

11%

18%

29%

8%

10%

10%

18%

24%

14%

Ranked 1st Ranked 2nd Ranked 3rd

Process Improvement Technology Priorities


Organizations that don’t put analytics at the core of their business are not going to survive.

“”


Where Next? Not Legacy

Powerful Features

o Very Expensive

o Highly Complex

o Slow to Deploy

o Hard to Use

o IT-Intensive

Easy to Use

o Manual / Slow

o Error Prone

o Non-Collaborative

o Doesn’t Scale

o Not Secure

LEGACY ENTERPRISE

LOW-END TOOLS

CLOUD SOLUTIONS

Powerful FeaturesEasy to UseQuick to DeployNo IT RequiredCollaborativeScalableContinuous Innovation


Transforming CPM with the Cloud

Powerful Features

o Very Expensive

o Highly Complex

o Slow to Deploy

o Hard to Use

o IT-Intensive

Easy to Use

o Manual / Slow

o Error Prone

o Non-Collaborative

o Doesn’t Scale

o Not Secure

LEGACY ENTERPRISE

LOW-END TOOLS

CLOUD SOLUTIONS

What do They Offer?



Finance Looks to the Cloud

Source: Forrsights Software Survey, Q4, 2013Base: 1,417 enterprise and SMB companies

Opex no Capex

Low cost

Ease of updates

Quicker innovation

Reallocate resources

Speed of delivery

Improved agility

57%

67%

69%

68%

69%

72%

75%

Agilityand

Speed

Cost

“How important were the following benefits in your firm's decision to use SaaS?”


Role of Finance – Where Are You?

TransactionManagement

Annual budgeting

Financial accounting

Controlling the Business

Variance reporting

Tax, audit, treasury

Planning & Analysis

Rolling forecasts Performance

management Analysis of drivers

Integrated Functional Excellence

Enterprise-wide collaboration Empowering business units to

self serve analysis Predictive, ‘what if’ planning

AccountantsDominated by complex systems and detail

1

Process ManagersFocus on improved reporting and minimising risk

2

Business PartnersDecision support

Provides sound financial analysis

3

Business LeadersIntegral part of management

Creates value by providing information and analysis for operating and strategic decisions

4

Stage

Key Capabilities

Expectations have increased for finance organisations


Best Practice #1Automate KPIs, Dashboards, Scorecards


Spend LESS time collecting the data and MORE time analysing itAutomate real-time integration of data from any systemVisualise your metrics for instant understanding and new insight

Integrate pipeline and actual sales data from CRM and other systemsAnalyse both Financial and Non-Financial DataProduce timely reporting and analysis, including what-if scenarios

Automate KPIs, Dashboards, & Scorecards

2 MthReturn on

Investment

25+Offices & Mines

Using

$3BFleet EquipMonitored

200Users

$7B 2KRevenue Employees

Mining & Construction


Designed well they can convey broader meaning from a much wider range of data than is possible in any report

The same dashboard can satisfy the demands of more user types, so it is efficient as well as effective

Its crucial that Users can create and revise dashboards and KPIs as this makes the data timely and relevant

Why are Automated Dashboards Important?

It’s much easier. Adaptive houses data across all platforms – headcount, unit sales, revenues. Now, managers can view and create their own reports, as well as collaborate across the organisation.

Christopher RealeCFO

“ “


Best Practice #2Make Driver-Based Plans You Can Drill & Flex


Two components to building a Driver-Based PlanVolume x Price amounts remain discrete and discoverablePersistent volume and price connections and relationships in a

logically linked hierarchy between various departmentsA plan should not be built on the basis of attempting to mimic the

actual transactions, but is there to model the outcome of those transactions

A good Driver-Based Plan will allow people to ask meaningful questions relating to the operational assumptionsWere there more average units per transaction?Were there more sales trips than planned?

What is a Driver-Based Plan?

Being able to create various hiring scenarios to see the impact on the bottom line has been a huge advantage for us.

Ethan CarlsonVP Finance

“ “


Benefits of Driver - Based Plans:

– Increased Accuracy

– Reduced cycle time

– Limited interpretation

– Improved collaboration ( same language as business owners )

– Aligned with business strategy

Key Prerequisites

– Identify and manage true business drivers

– Focus on business activities – not financials

– Include key non-financial drivers

Driver - Based Planning Benefits


Focus on what drives your business

Vary the outcome of plans by flexing drivers to create scenarios

Drill-down from KPIs to transactions & drill-across dimensions to get to root causes when comparing plans to actuals

Conduct on-the-spot what-if analysisReconcile revenue (demand-based) with cost (supply-based) inputs

Use multi - dimensional analytical capabilities to full advantage to extract maximum understanding

Driver-Based Plans You Can Drill & Flex

“Simplicity is the ultimate sophistication” – Leonardo da Vinci

• Complex business• Huge Excel based model• In high growth

Ramsay Healthcare - Problem

• Determined drivers and connected to market demand

• Process for validating the drivers• Created dynamic planning & better focus

Ramsay Healthcare - Approach

• Can instantly react to changing conditions

• More relevant information for decision making

• Finance team can now add value to the business

Ramsay Healthcare - Result


Best Practice #3Use Rolling Forecasts


64% of annual targets are obsolete in 4-6

months

Beyond Budgeting Roundtable


Actual FcstActual Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst

Actual Actual Fcst Fcst Fcst Fcst Fcst Fcst FcstActual Actual Actual

Actual Actual Fcst Fcst FcstActual Actual Actual Actual Actual Actual Actual

End

of

Year

Forecasting to a Fixed Point


Actuals

1st Review

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Annual Plan x+1

Year x Year x+1

2nd Review

3rd Review

4th Review

Forecast

Migrate from annual budgets to 5-quarter rolling forecasts


Plans should NEVER be out of dateFrequently import actuals and plan with drivers to re-forecast quicklyGet everyone on the same page – integrated actuals & forecasts

Combine financial and operational data Access to forecast models available on-demandDrill down to variances across any dimension

Rolling Forecasts

Wanted the ability to conduct rolling forecasts and to re-forecast benefits for union employees as contracts changed during the course of the fiscal year.

Gwen HendricksonDirector of Finance

“ “

• The budget had become obsolete• Error prone Excel templates• Inefficient and very slow process

DHL - Problem

• Focus on Agility• Use technology where possible• Finance focus on assisting business

DHL - Approach

• Rolling Forecasts based on Actuals & KPI’s

• Finance validate and interpret• Faster, better, unified approach

DHL - Result


Best Practice #4Enable Self-Service, On-Demand Culture


Put business users in DRIVER’S SEAT with tools to analyse their own data

Enable users to write their own reports and build dashboardsProvide a planning environment that is available anywhere globally

in an always updated stateProvide easy-to-use interfaces that require minimal training Reduce strain on finance/IT organisations

Self-Service, On-Demand Culture

Adaptive Planning allows us to easily and affordably manage our international operations planning process while at the same time satisfy our corporate systems architecture.

Betty ZawadaInternational Finance Manager

“ “


Best Practice #5Drive Enterprise-Wide Collaboration


Direct involvement of line managers drives ACCOUNTABILITY for results – Planning should not just be done by the FP & A team

Need an easy-to-use application so that all managers can participate

Alerts, messaging & annotations enable collaborative communication on key issues

Process management workflow binds the whole task together enabling Planning Managers to drive the people and the process

Enterprise-Wide Collaboration

People who never participated in the planning process before are now creating their own budgets, which greatly increases their financial accountability.

Jeffrey ChalmersCorporate Controller

“ “

Accountability

With 25 participants in the budget process, the level of access to information, transparency and collaboration has increased substantially. It builds confidence between stakeholders and the finance team.

Mark PowersSr. Finance Mgr

“

“

Empowerment

Etihad

• Etihad 2012 - 10 people Finance

• Etihad 2013 - 300 people Worldwide

• Finance became consultants

Etihad Airways - Problem

• Many different data sources• Scenario planning - difficult and time consuming

• Too much time spent gathering, validating and reporting

Etihad




Etihad Airways - Approach

• Connected all areas of the organisation

• Assigned plan responsibility• Moved from Cost Centre to Profit Centre planning

Etihad




Etihad Airways - Result

• What once took 3 months is now a fluid process

• Can now answer queries and demands from management quickly and efficiently

• Far more dynamic and agile organisation


Who are Adaptive Insights?


+2,200customer

s 200+

partners

50%+growth

85countries

#1 share

Our cloud business analytics platform empowers management teams to transform their planning, reporting, consolidations

and analysis – improving productivity, costs & decisions.

THE GLOBAL LEADER IN CLOUD BI & CPM


Ireland / UK Customers


Disrupting the Market via the Cloud

Powerful Features

o Very Expensive

o Highly Complex

o Slow to Deploy

o Hard to Use

o IT-Intensive

Easy to Use

o Manual / Slow

o Error Prone

o Non-Collaborative

o Doesn’t Scale

o Not Secure

LEGACY ENTERPRISE

LOW-END TOOLS

CLOUD SOLUTIONS



Complete Modern FP&A Suite

360o view of business performance – past, present & future


One Suite also means One Product

Robust budgeting, forecasting & reporting

Complete solution for consolidations & reporting

Visualisation & analysis of any data from any system

Analyse the Past, Manage the Present, Forecast the FutureIn the Same Product

AdaptivePlanning

Adaptive Consolidation

Adaptive Discovery


Sources: BPM Partners Pulse Customer Survey, Gartner 2013 CPM Study, Nucleus June 2013 Value Matrix, Forester 2013 Wave

First IN SATISFACTION AMONG COMPREHENSIVE CPM

& BI VENDORS

Usability Drives Success

FirstIN USER

EXPERIENCE

“A HIGH LEVEL OF CUSTOMER SATISFACTION”

FirstIN CUSTOMER EXPERIENCE


Who are MIAGEN?


CLOUD SOLUTIONS


Forecasting, Planning & AnalysisEst. 2003

Dublin London Abu Dhabi


CLOUD SOLUTIONS


Our Mission

To Enable Better Decision Making


CLOUD SOLUTIONS

Crunch10%

Analysis90%

VS


Register today!You’re invited to join us for a one-day forum exploring the future of finance. Hear dynamic keynotes, exchange business insights with your peers, and have the opportunity to engage with Solution Specialists or Adaptive Wizards in 1:1 meetings. Select the location that works best for you!

www.adaptiveroadshow.com

Dates & Locations

9/9 – San Francisco9/9 – Sydney11/9 – Dallas16/9 – Boston16/9 – Chicago17/9 – Atlanta

18/9 – New York18/9 – Toronto14/10 - London


Thank You. Be Adaptive!

CIMA Dublin MIAGEN on FP&A Best Practices June '15

Business

Transcript of CIMA Dublin MIAGEN on FP&A Best Practices June '15