©1982 – 2001 systems union holdings ltd. 'financial analytics & technologies...

©1982 – 2001 Systems Union Holdings Ltd.

'Financial Analytics & Technologies Beyond'

Ashley Clarke

CEO, Asia Pacific

Systems Union Limited


SunSystems Market Positioning

Enterprise>$US 1Billion

Mid Market$US 50M - $US 1Billion

Small Business<$US 50M

International& Domestic

Organizations

3

SunSystems with major organisations SunSystems in financial services

SunSystems global customer portfolio

SunSystems in hospitality

SunSystems in not-for-profit

SunSystems in oil & gas


Issues in Finance

Demands for Increased Transparency and Corporate governance

Scandals Enron Arthur Anderson Worldcom

Ethical issues…ie chinese walls between audit and consulting

All leading to reduced investor / public confidence


Research Feedback – CFO Magazine (US)

Research Date – August 2002

141 CFO’s in publicly listed companies

17% pressured by CEO to mis represent results in last 5 years

60% had released more info in last 3 months

18% do not reconcile pro forma results to US GAAP although advised by US Securities and Exchange Commission

5% had violated GAAP normally in revenue and reserve recognition


Research Feedback – Cap Gemini Ernst Young (US)

Research Date – August 2002

265 CFO’s

56% state that their inadequate financial systems are obstacles to transforming their companies financial accounting methods.

6 out of ten respondents state that budgeting, forecasting and decision support systems are in adequate or insufficiently integrated.

Only 4% say their companies have integrated, Web-based budgeting, forecasting and decision support tools.


Research Result : HK Polytechnic University

Research Date – August 2002.

226 CFO’s, CEO’s, FD’s.

44% claim need for better financial information / business analysis.

37% frustrated by lack of timely information on current system.


Research Feedback – Hong Kong Corporate Market

Research Date – September 01

115 CFO’s

70% state they have inadequate systems.


eCFO Conference – 10/01

C. 75% of respondents have systems that do not allow simple questions to be answered

how much do you spend on stationery.

How much do we spend on travel between city x and city y and how many room nights.

Who are my top 10 customers.

What were my top 10 deals last month


* Size of the Bubble = 2005 Relative Revenues

0%

5%

10%

15%

20%

25%

30%

35%

00

-05

CA

GR

4% 6% 8% 10% 12% 14% 16% 18%

ERM as % of 2005 Total Packaged Applications

ASEAN

ANZ

India

Greater China

Korea

ERM Impact In Asia Pacific

Source – IDC 2001

All will operate within more complex environments


Using Corporate Information

The Profits Squeeze

EXTERNAL PRESSURE Globalization Legislation Skills Shortage Competition Outsourcing New Technologies Demanding Clients

INTERNAL PRESSURE Time & Expense

Administration Staff Retention Training & Development High Resource Costs Speed & Mobility Compliance Demands Tighter Margins Information overload


Finance’s New Role

Current Finance Concerns: Gross margin

contribution of product lines

Monthly reports to management

Annual budget cycle

Quarterly and annual financial reports

Additional Concerns for Finance: Contribution of each

product to the bottom line

Real-time financials to enterprise-wide decision makers

Rolling, reforecast budget goals for operating entities


Right Person

Right Format

Right Time

Challenge

How to access and deliver mission-critical information from key operational systems to employees, customers, and partners

Personalized view


What information !!


Business Issue.…Balanced Scorecard

Internal Business

Financial Perspective

Return on Capital Employed

Cash Flow

Project Profitability

Profit Forecast Reliability

Customer Perspective

Pricing Index

Customer Banking Survey

Customer Satisfaction Index

Market Share

Hours with Customers on NewTender Success RateSafety Incident IndexProject Performance IndexProject Closeout Cycle

Innovation and Learning % Revenue from New Services

Rate of Improvement Index

# of Employee Suggestions

Revenue per Employee

Corporations typically have 20/30 sources of information


ERM Delivery

Information must Come from Any Relevant Systems

Analytics

PSA

SCM

Procurement

PeopleManagem’t

CRM

Financials &Bus. Mgmnt


How Up to Date is information !!


Month 1 Month 2

Typical Timing for Production of Month-end Reports

Consolidated Reports from

month 1


Month 1 Month 2

Production of Month-end Reports - Changing

Time taken to close books can be reduced


Month 1 Month 2

Time Delay – Issues not Addressed in Timely Manner

15th of the month – Alert to CFO indicating 250K is overdue

Traditionally board will only know about an issue half way through the following month


Forward Visibility not IT Constrained

More visibility

Month End


Kuala Lumpur

Tokyo London

Shanghai

Data Sources(Alert)

in any language

and currency

On Line , Real time InformationFrictionless


Who is Going to Receive the Information !!


Wireless SunSystems

SQL ServerORACLE

Other ApplicationsCustomers

Partners/SuppliersEmployees

Wireless Ad-hoc EnquiriesWAP / i-Mode / SMS/ MMS

Intuitive Alertssent via SMS/MMS

Your CompanyYour Company


What Information will be Received !!


Objectives

Enable Fast, Accurate Financial Decision-making That Creates an Expanding Relationship Between the Tactical and Strategic

Reduce Unnecessary Losses and Expenses by Pinpointing Operating Deviations As They Arise

Create and Seize Revenue Opportunities Using New and Old Forms of Analyses to Drive Business Strategy

Empower Financial and Non Financial Managers

Debtors Summary

Aged Analysis Top Clients


Practical Trends


Important Technology Segments – Source Aberdeen Group

Consolidation and Reporting

Budgeting and Forecasting

Planning and Analysis

Financial Risk Management (new)

Profit Optimization (new)

Taxation (new)


Analytics Market

Analysts Predictions, Global BI market growth: $4.2B 2001 to $17B 2004 (Giga) Analytic applications: $500M 2001 to $3B 2004 (Giga) Financial analytics: $843M 1999 to $2.1B 2004 (IDC) CRM analytics: $301M 1999 to $2.3B 2004 (IDC) Accounting software $3.6B 2001 to $3.9B 2005 (Gartner)

Market Drivers Increase in fierce competition Rapid explosion of data More decentralized decision making Increase in the need for knowledge workers


Number of BI Users in a Company with 1,000 Employees

0

50

100

150

200

250

300

350

BI Tools Analytic Apps Portals

Source: Giga Information Group

Low

High


Practical Trends – the next 24 months

Document Imaging, more deployment options

Language

Streamline process..employees / suppliers / customers

Intuitive….systems from which no facts can hide

Centralisation

Audio – visual board reports

Word / Powerpoint integration


“Financial Analytics – the ability to get real time information in one language and one currency from all internal systems and to deliver it or to access it wherever you are in the world”


Issues in Finance

Corporate governance

Scandals Enron Arthur Anderson Worldcom

Ethical issues…ie chinese walls between audit and consulting

All leading to reduced investor / public confidence

BUT TECHNOLOGY IS THERE TO SUPPORT ENHANCED LEGISLATION IF THAT IS WHAT IT TAKES TO ACHIEVE GREATER BUSINESS CONFIDENCE


'Financial Analytics & Technologies Beyond'

Ashley Clarke

CEO, Asia Pacific

Systems Union Limited

©1982 – 2001 systems union holdings ltd. 'financial analytics & technologies...

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