technology in the business of finance
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Technology in the Business of Finance. Jacquie Cleveland Huguette Pothier NB Power. New Brunswick. Presentation Objectives. To share with you how Information Systems and Finance work together to benefit the NB Power Group To share our lessons learned. Statistics (as of Sept 2, 2008). - PowerPoint PPT PresentationTRANSCRIPT
© 2008 Eventure Events. All rights reserved.
Technology in the Businessof Finance
Jacquie Cleveland
Huguette Pothier
NB Power
New Brunswick
Presentation Objectives
• To share with you how Information Systems and Finance work together to benefit the NB Power Group
• To share our lessons learned
Statistics(as of Sept 2, 2008)
Number of employees 2,500
Number of generating stations (owned) 16
Installed capacity 3,959 MW
Fuel Nuclear, Oil, Coal, Gas, Hydro, Diesel
Direct & indirect customers Over 370,000
Transmission lines 6,780 km
Export capacity 2,677 MW
Import capacity 1,980 MW
Primary distribution wires 20,351 km
Number of poles 525,000
Variability in Operating Earnings
• Major drivers
– hydro generation
– nuclear generation
– fuel prices (heavy fuel oil, natural gas, coal)
– out-of-province margins
– exchange rates
– demand forecasting
NB Power Group
Management Model
The Hackett Group says…
• World Class Financial Organizations outperform peers in both effectiveness and efficiency
• The gap between peer group & top performers represents $6.2M per $1B of revenue
• Top performers spend 40% less time collecting and compiling vs. analyzing data
• Top performers have 54% less Finance FTEs
The Hackett Group says…
• World class companies are widening their cost advantage through:
– Process simplification and standardization
– Global process sourcing
– Leveraging “emerging” technologies
Technology in Finance
• Work Streams– Financial Processes
– Financial Systems Center of Expertise
– SAP and Other Information Security
– SAP and Financial Systems Education
– International Finance Reporting Standards (IFRS)
– Finance/Information Technology Governance
– Self Service and Electronic Information Integration
– SAP Business BI
– SAP Upgrade – Functional
Financial Processes
Drivers:– Standardized processes across Companies– leveraging technology to streamline processes– Expect 50% employee turnover in the next 10 years
Current State:– Common functions/processes identified– Record and Report largely complete– Focus on planning/budgeting/forecasting (BPC)
Challenge: – verbal culture, siloed processes, changing priorities,
modified systems
Financial Systems Center of Expertise
Drivers:– Increased understanding of SAP– Well-documented end to end processes/procedures– Improved knowledge on how to use the tools– Central access point to information– Published point of contacts for expertise– Published information for learning opportunities– Sustainment processes assured
Current State:– Finance COE organization formed (Feb., 2007)– Growing recognition for enterprise-wide approach
Challenges– resistance to standards, siloed priorities
SAP and Other Information Security
Drivers:– Segregation of duties (SOD) potential conflicts
identified through Virsa
– Effectiveness of existing controls/approvals
– Separation of information by Company
Current State:– Established problem
Challenges:– not a top priority
SAP and Financial Systems Education
Drivers:– Needs assessment in 2007 identified this as a priority– HR Strategy for self-directed learning– Personal learning plans with HR drove Needs
Assessment Current State:
– Learning opportunities listed & maintained– Tips & tricks active– Recognition for same need at enterprise level
Challenges:– Not a top priority, customizations in SAP
International Finance Reporting Standards
Disclosures of Financial Statements
Finance/Information Technology Governance
Drivers:– Spending priorities across Finance – Work requests multiple and conflicting– Focus on short-term fixes– Spending priorities across Companies
Current State:– Finance/IT Governance Committee in place for 3
years– Spending priorities clear in Finance
Challenges:– Effective committee structure
Self Service and Electronic Information Integration
Driver:– Right business information to the right people at the
right time to enable more effective business decisions (vision)
– Improve trust/access to information
Current State:– Accepted priority across all Companies– Multiple projects to address problem
Challenge:– Product loyalty (multiple systems), data management,
multiple priorities
SAP Business BI
Drivers:– Quality & accessibility of key information an enterprise
concern– Three existing data repositories (BI, BW, DW)– Consistency of information (regulatory reporting)
Current State:– BI Strategy formed– Current initiatives in Finance to improve quality &
definition of data.Challenges:
– Implementation of strategy, technology vs. business priorities
SAP Upgrade – Finance Functional
Drivers:– Continued focus on processes– IFRS– Changing needs for controls– Reporting requirements– Need to expand functionality (e.g. fast closing)
Current State:– Project identified – budget established
Challenge: – scope definition
Lessons Learned
• Develop a governance model and processes to provide a strong relationship between Finance and Information Systems
• Work with Information Systems to aid in finding just-in-time IT solutions for Finance, in anticipation of challenges as well as opportunities
• Support and enhance current processes while using technology to help you transform Finance’s capabilities
© 2008 Eventure Events. All rights reserved.
Jacquie Cleveland Director
Enterprise Finance Systems and Strategy
NB Power