perceptive finance – analytics solutions from sap for finance
DESCRIPTION
CFO and Finance Leadership Center - The CFO will be the future Chief Intelligence Officer as well as most of a company’s data is running through the books some how. It is utmost important that the finance function extends beyond the primary mission to support all other business functions within an organization. Enterprises in all industries and regions can make it a differentiator when they see perceptive finance as a focus area. To learn more follow us on twitter (@SAPAnalytics, @hschliebs).TRANSCRIPT
Latest Analytics Solutions from SAP to Empower the Finance Team – Perceptive Finance Henner Schliebs SAP
© 2013 SAP AG. All rights reserved. 2
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up
© 2013 SAP AG. All rights reserved. 3
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
Look at generic solution overview template (I can provide), none of them seem to follow this format – would seem
option 2 or 3 are most appropriate for us. This version has such small print
© 2013 SAP AG. All rights reserved. 4
3x Lower finance cost as percentage of revenue for top quartile organizations versus bottom quartile organizations
Source: SAP Benchmarking Services
Best Run Finance Organizations have …
76% Higher operating margin where financial systems provide historical and forward-looking views into financial and operational performance
Best Run Companies Can Achieve Financial Excellence
© 2013 SAP AG. All rights reserved. 5
And a Greater Role for Finance in Creating Value
Despite a continued focus on cost control, many CFOs are considering strategies to grow revenue.
There is also a desire to increase their involvement in strategic decisions in their companies. CFO Global Insights Dec 2010 Deloitte
“
”
� Cut costs � Conserve cash � Pay off debt
2008-2009 � Grow revenues � Use cash � Optimize costs
2010-2013
© 2013 SAP AG. All rights reserved. 6
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up
© 2013 SAP AG. All rights reserved. 7
Greater Expectations of Finance
Key CFO priorities
Internal External
Ensure Regulatory Compliance and Effective
Risk Management
Deliver Superior Service at Reduced Cost
Outperform Financial Objectives and Create Sustainable Value
© 2013 SAP AG. All rights reserved. 8
How Finance Can Run Better
Ensure Regulatory Compliance and Effective
Risk Management
Outperform Financial Objectives and Create Sustainable Value
Deliver Superior Service at Reduced Cost
Streamline financial functions and provide self-service reporting and
analysis
Shorter time to close books
% of time spent of working with the business
Lower cost of finance as % of revenue
Embed a 360° view of enterprise performance with agile budgeting and
actionable profitability reporting
Superior Return on Capital Employed (ROCE)
Lower proportion of unprofitable products and customers
Minimize # earnings warnings
Embedded risk management and controls from transactional processing
to financial reporting
Lower % revenue at risk
Reduced incidence of penalties for non-compliance
Minimize risk of financial restatements
© 2013 SAP AG. All rights reserved. 9
Real Estate Lifecycle Management
Receivables Management
Invoice to Pay
Travel Management
Shared Services
Our Solutions for Finance
Treasury and Financial Risk Management
Manage Enterprise Risk and Compliance
Accounting and Financial Close
Ensure Regulatory Compliance and Effective
Risk Management
Deliver Superior Service at Reduced Cost
Manage Financial Performance
Outperform Financial Objectives and Create Sustainable Value
� Strong cash flow and liquidity � Compliant and accurate financial reporting � Maximized profitability
SAP’s comprehensive portfolio of applications and end-to-end processes help you achieve Financial Excellence
� Reduced cost of finance � Partnering with organization to drive
value
Achieve Financial Excellence � Ensure Regulatory Compliance and Effective Risk Management � Outperform Financial Objectives and Create Sustainable Value � Deliver Superior Service at Reduced Cost
© 2013 SAP AG. All rights reserved. 10
© 2013 SAP AG. All rights reserved. 11
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up
© 2013 SAP AG. All rights reserved. 12
Improve Financial, Operational, and Managerial Processes while Driving Profitability and Growth
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value
Achieve Financial Excellence With Financial End-to-End Processes
© 2013 SAP AG. All rights reserved. 13
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value FINANCE ANALYTICS
Achieve Financial Excellence With Financial End-to-End Processes (cont.)
Improve Financial, Operational, and Managerial Processes while Driving Profitability and Growth
© 2013 SAP AG. All rights reserved. 14
Manage Financial Performance Driving Business Results through Intelligent Finance
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value FINANCE ANALYTICS
Margin Management
Predictive Finance
Finance Intelligence
Embedded Analytics
HANA live for Finance
Operational Finance
Reporting
Drive Decisions and actions for greater
revenue
Improve Control and respond to maximize profitability
Optimize Refine and tune for long term
sustainability
© 2013 SAP AG. All rights reserved. 15
Accounting and Financial Close Driving Business Results through Intelligent Finance
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value FINANCE ANALYTICS
Finance Intelligence Embedded Analytics HANA live for Finance Operational Finance Reporting
Control Compliance and transparency
Execute Speed and efficiency
Analyze Insight for better decisions
© 2013 SAP AG. All rights reserved. 16
Treasury and Financial Risk Management Driving Business Results through Intelligent Finance
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value FINANCE ANALYTICS
Commodity Risk Analytics Embedded Analytics HANA live for Finance Finance Intelligence Operational Finance
Reporting
Control Seamless End-to-End
Compliance
Execute Agility with Simplicity
Predict Instant Insight to Action
© 2013 SAP AG. All rights reserved. 17
Collaborative Finance Operations Driving Business Results through Intelligent Finance
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value FINANCE ANALYTICS
Finance Intelligence Embedded Analytics HANA live for Finance Operational Finance Reporting
Control Insight to Action
Transform Drive business value
Deliver Excellence in Finance
© 2013 SAP AG. All rights reserved. 18
Manage Enterprise Risk and Compliance Driving Business Results through Intelligent Finance
Manage Enterprise Risk and Compliance
Proactively manage enterprise risk and
compliance at reduced cost
Accounting and Financial Close
Provide timely and accurate financial and regulatory reporting
Treasury and Financial Risk Management
Seize and fund business
opportunities as they arise, while avoiding financial
risks
Collaborative Finance
Operations Improve finance efficiency and
deliver superior service at reduced
cost
Manage Financial
Performance
Outperform corporate financial
objectives and create sustainable
value FINANCE ANALYTICS
Fraud Management Embedded Analytics HANA live for Finance Finance Intelligence Operational Finance Reporting
Assess Seamless End-to-End
Assessment
Execute Agility with Simplicity
Decide Instant Insight to Action
© 2013 SAP AG. All rights reserved. 19
Agenda
Describing the new normal for CFOs
Introducing financial excellence
Elaborating on financial analytics
Experiencing solutions
Wrap-up
© 2013 SAP AG. All rights reserved. 20
New Technologies Help CFOs Better Address Their Challenges
Mobility Cloud In-Memory
FINANCE ANALYTICS
© 2013 SAP AG. All rights reserved. 21
Empowering More Efficient Finance with SAP on HANA
The Most Modern Platform for Real-Time Financial Excellence
Real-Time Financial Close
Real-Time Finance
Operations
Real-Time Treasury
Management
Real-Time Compliance
Real-Time Performance Management
© 2013 SAP AG. All rights reserved. 22
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
© 2013 SAP AG. All rights reserved. 23
Where to Find More Information
Analytics applied to Finance: www.sap.com/appliedanalytics
Experience it yourself at our new CFO and Finance Leadership Center by visiting: www.sapcfo.com
And subscribe to the monthly newsletter: www.sap.com/finance-newsletter
Follow us: https://twitter.com/sapanalytics
Follow me: https://twitter.com/hschliebs
Thank You! Contact information: Henner Schliebs Analytics Solution Marketing [email protected] @hschliebs
© 2013 SAP AG. All rights reserved. 25
Net Margin Analysis (HANA / Non-HANA)
Current Customer Situation � No chance at identifying which customers and products are destroying your profit � Difficult determining which process costs can be reduced � Hard analyzing profitability impacts consistently across your organization � Lack of rebalancing product mix to achieve higher profitability
Description � SAP Net Margin Analysis provides pre-built and customizable dashboards and
reports to analyse net margin and cost to serve across dimensions
Value Proposition � Better manage and reduce process costs � Increase margins by segmenting your customers, products, sales territory, sales
channel based on the impact they have on profitability � Increase revenues by identifying the amount of monthly revenue that is “left on the
table” due to customers with net margin below the customer segment average
Outcome Opportunity � Improve your revenues � Reduce opportunity costs and profit-destroying customers � Manage and optimize margins
SAP BusinessObjects BI solutions SAP Profitability and Cost Management
SAP Predictive Analysis SAP Net Margin Analysis
© 2013 SAP AG. All rights reserved. 26
Predictive Finance (HANA/Non-HANA)
Current Customer Situation � Lacking sophisticated, forward-looking capabilities � No support for data mining and predictive modeling for financial measures � Weak support for operational departments in regards to financial impact analysis � Needing a solution to support cash flow optimization
Description � Predictive Finance is a solution that helps the finance department uncover
potential improvements to the company’s performance by delivering rich data mining and predictive modelling capabilities to business users
Value Proposition � Reach your business goals faster by turning dormant data into new opportunities � Stay agile and gain a competitive edge with efficient forecasting and planning � Solve problems before they happen by exposing hidden risks and hazards
Outcome Opportunity � Improve your planning processes with advanced analytics to take action before
gaps come up � Focus on the most profitable areas to increase margins with decision support � Predict your most influential B/S and P/L positions with sophistication to
outperform your goals
SAP Predictive Analysis SAP Lumira
SAP CO-PA Accelerator SAP BI Suite
© 2013 SAP AG. All rights reserved. 27
Finance Intelligence (HANA/Non-HANA)
Current Customer Situation � Official reporting processes are not flexible and require IT for changes � Ad hoc analyses are cumbersome � Hard to include non-Finance data in analyses to support operations
Description � The solution provides business users in financial departments with the tools to
easily visualize any kind of data from any source without the need of IT expertise. Merging data sets, sharing models with colleagues and even external constituents, and showing results rather than excel tables make it a must for every employee.
Value Proposition � Ad hoc visualizations in seconds speed up decision making processes and help in
urgent situations to prevent loss of funds � Streamline decision making by taking out the IT perspective to operate more
efficiently
Outcome Opportunity � Flexible financial analyses and support for operations � Collaborative finance crossing departmental borders makes the organization aware
of financial impact of decisions
SAP BusinessObjects BI solutions SAP Lumira
SAP Explorer
© 2013 SAP AG. All rights reserved. 28
Embedded Analytics (Non-HANA)
Current Customer Situation � Important business content is hidden in tables in your ERP � Cumbersome reporting processes � Reporting embedded in transactional processes is non-existent or inflexible
Description � Embedded Analytics in the Business Warehouse deliver standard content that is
easily consumable by transactional users directly when needed to make important decisions
Value Proposition � Improve cash through visibility into and control over cash flows and forecasts to
manage cash, ensuring the enterprise has liquidity to fund its operating activities � Improve order to cash processes through an increase of the financial visibility to
your customer base � Enable the Dispute Manager to reduce DSO and increase customer profitability � Get a 360° overview about the company’s financial situation
Outcome Opportunity � Contextually answer questions when they arise: during the transactional process � Improve decision making processes
SAP BusinessObjects BI solutions SAP BI Foundation RDS
© 2013 SAP AG. All rights reserved. 29
Operational Reporting with SAP HANA
Current Customer Situation � Business performance is affected by inability to perform timely reporting on
operational data stored in SAP ERP � Reporting of operational data is too time consuming or impractical, resulting in
sub-optimal business decisions � Extremely large volumes of detailed transactional data exist in operational ERP
systems, but access to up-to-date, summarized information is also crucial
Description � This rapid-deployment solution enables real-time operational reporting with
access to massive amounts of detailed and summarized operational data to increase productivity with flexible and graphical self-service analytics
Value Proposition � Speed up operational reporting with best-in-class Business Intelligence, powered
by SAP HANA � Instant insights into your financial and financial-oriented purchasing or data
provide a basis for optimal decision making
Outcome Opportunity � Accelerated Reporting and Analysis � Accelerated Period-End Closing Processes
SAP BusinessObjects BI solutions SAP Profitability and Cost Management
SAP Predictive Analysis SAP Net Margin Analysis
© 2013 SAP AG. All rights reserved. 30
HANA Live for Financials
Current Customer Situation � No base for decision making, as data is spread all over ERP � No predefined analyses models for Working Capital
Description � HANA Live for Financials provides the content for sophisticated analyses, as well as
out-of-the box analyses around cash and invoice and goods received reconciliation
Value Proposition � Rich content provision for controllers, treasurers, accountants, and financial
analysts, as well as Executives � Combines all finance data to provide the basis for advanced analyses with SAP BI
Solutions � Analysis across organizational hierarchies, time trends, and drilldown into
transactional details for root-cause analyses � Specific applications out of the box, like working capital analysis to optimize KPIs
(like cash conversion) or goods/invoice receipts reconciliation Outcome Opportunity � Fact-based decisions for everyone � Excellence across all finance processes � Outperform your financial objectives
SAP BusinessObjects BI solutions SAP Lumira (aka Visual Intelligence)
SAP HANA live applications
© 2013 SAP AG. All rights reserved. 31
Commodity Risk Analysis (HANA)
Current Customer Situation � Measuring and reporting overall commodity position changes geographically � Risk compliance analysis across commodities and locations � Lack of a high-level overview of commodity exposures and financial derivatives
Description � The solution provides your organization with instant visibility into commodity risk-
related information across multiple lines of business. This enables your business to appropriately address commodity position risks at all levels.
Value Proposition � Better decision making through a geographical overview of net open commodity
positions � Efficient process through highlighted risk compliance across all commodities � Minimize risk by analyzing commodity exposures and related financial derivatives
Outcome Opportunity � Improve your visibility on commodity positions � Keep compliance risk to a minimum � Increase transparency by providing views on exposures with and without hedging � Provide in-depth analysis of commodity positions by time period and location
SAP BusinessObjects BI solutions SAP Commodity Risk Management
SAP Commodity Risk Analysis
© 2013 SAP AG. All rights reserved. 32
Fraud Management (HANA)
Current Customer Situation � Revenue loss related to fraud � Cost/results ratio of dealing with fraud � Manual, inefficient, slow, and inaccurate investigation process
Description � The solution provides real-time detection that leverages the power of HANA with alert
notification and management features for the fraud team, and helps minimize false positives through real-time calibration and simulation capabilities
Value Proposition � Perform analyses of fraud patterns based on historical data; design how fraud is
going to be detected � Set up and fine tune detection criteria, using simulations and the calibration tool
provided within your department � Run fraud detection and perform investigation on the resulting findings in real time Outcome Opportunity � Detect fraud earlier to reduce financial loss � Improve accuracy of detection at less cost � Prevent and deter fraud situations
SAP Fraud Management SAP BusinessObjects BI solutions
SAP Predictive Analysis
© 2013 SAP AG. All rights reserved. 33
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