A Comprehensive Alternative to
Spreadsheet Planning
September 24, 2009
A Comprehensive Alternative to
Spreadsheet Planning
September 24, 2009
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AgendaAgenda
Introduction
Corporate Overview
Challenges Facing the Office of CFO Today
Alternative to Spreadsheet Planning
Live Product Demo
Why Edgewater
Q & A
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SAP BPC Capability
Technology Management Consulting Firm • Provide a unique blend of specialty IT services • Leverage proven industry expertise in strategy, technology and
enterprise performance management• Focus on middle and Global 2000 market
Founded in 1992• Headquartered in Wakefield, MA• 300 Employees, 240 Consultants• 600 Clients• Large North American Footprint• +2000 Projects Completed to Date• Publicly Traded (NASDAQ: EDGW)
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Challenges Facing the Office of CFO TodayChallenges Facing the Office of CFO Today
Under pressure to drive profitability improvements and increase the resilience of their organizations.
This can not be done without aligning the organization around shared strategic objectives, and plans that can be adjusted to the rapidly changing realties of the market.
Improve planning accuracy and associated costs
Reduce budget cycle time and be confidence in financial results and reports
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The Problem Is…The Problem Is…
Data - accuracy and predictability Historical data in multiple systems and
spreadsheets - no central, data store
Process – efficiency and standards No linkage and enforcement with
standard business processes Budgeting process takes too long and
is error prone
Execution - usability and adaptability Existing planning products are difficult
to use and inflexible – designed for power users
Too much dependency on IT for business specific tasks
Companies typically realize only about 60% of their strategy’s potential value because of defects and breakdowns in planning and execution.”
Source: Harvard Business Review
Many modeling products just don't offer a good mix of usability and flexibility.”
Source: Simplicity Is Golden – CFO.com January 2006
“
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And…And…
By 2012, 90% of public companies will face mandatory, audited public reporting requirements for financial controls, and 50% will face mandatory non-financial reporting (0.8 probability).”
Source: Gartner - 2nd March 2007 - “Audits and Events Drive Governance, Risk and Compliance Spending” by Eid and Caldwell *
One of every ten public companies, whether based in the US or abroad” is having to re-state earnings”
Source: CFO Europe.com – “Say Again?”: April 2007
“ Sarbanes Oxley and other government and
regulatory mandates require companies to be accountable for the accuracy of their finances”
Audit costs as part of the compliance process are extremely high
Mandated process changes
Globalization
Global regulations - accentuating critical data, process and execution issues
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Continuous Planning – from “nice to have” to necessityContinuous Planning – from “nice to have” to necessity
Increased economic uncertainty - throw your annual budget out the window What if the cost of fuel is a key cost driver
of your business? What if the price of crude oil is a key
revenue driver of your business/state?
Continuous planning and rolling forecasts required to quickly adapt to dynamic economic conditions What are new opportunities and risks? How will these impact our targets? What action do we take and what is the
potential impact?
Rollercoaster ride
>40% increase in barrel of oil in 4 mos >60% decrease in barrel of oil in 3 mos
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And the Solution Is…
SAP BusinessObjects Planning and Consolidation (BPC)
SAP
Busin
ess O
bjec
ts
Oracle
(Hyp
erio
n)
Cogno
s
Micr
osof
t0
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Forrester Rating of Planning Applica-tions
SAP BPC SRC Oracle Cognos Microsoft 4.24 3.28 4.21 3.86 2.5
Forrester Rating of the Planning product capabilities of EPM vendors, on a scale of 1-5 (Oct 2007)
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Sample ROI
Reduced financial close from 5 days to 1 day
70% headcount reduction in finance department
Saved thousands by changing the reports distribution
Planning cycle went from 4 weeks to hours
Required 25% of the resource of other vendors to maintain
Millions dollar increase in revenue by providing better performing what-if scenario for tracking trade promotion opportunity
This is a world-class enterprise solution at an affordable price
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SAP BPCStreamlined planning, budgeting, forecasting and fast close
Familiar and easy to use Enables rapid adoption by leveraging native
Microsoft Office tools (e.g. Excel) and web browsers accessing a central database
User owned and managed
Process-centric Configurable business process flows guide
users and drive process consistency
Unified Single, integrated application reduces
maintenance, improves data integrity, and simplifies deployment while enabling flexible planning & consolidation functions
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SAP BPCSAP BPC
Operational Tasks
Bu
sin
ess
Pro
cess
es
Strategic Planning
Budgeting
Periodic Close
Forecasting
Performance Measurement
Com
mun
icat
ion
Col
lect
ion
Con
solid
atio
n
Ana
lysi
s &
Rep
ortin
g
Dis
trib
utio
n
Supports top-down and bottom up planning leading to timely, more accurate plans that are aligned with strategic goals
Facilitates collaborative planning across all functions for more accurate budgets
Enables continuous planning and rolling forecasts to meet rapidly changing business conditions and reduce budget cycle time
Automates the consolidation process, meeting all financial reporting requirements with a complete audit trail for a fast, accurate close
Streamlines planning and automates consolidation
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Choice of Word, PowerPoint, Web and Excel interfaces
Excel without “spreadsheet hell” - live access to central data repository creates a single version of truth, ensuring organizational alignment
Allows use of native Excel functions, formatting, and formula preservation, reducing training time and costs
Easy adoption of existing Excel templates as planning schedules
Familiar and easy-to-use interfaces reduce learning curve and increase adoption
Familiar and Easy to UseFamiliar and Easy to Use
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Guides activities and improves productivity
Helps users know “what” to do “when”, “why” and “how”
Facilitates collaboration with built-in discussion threads and unstructured data sharing
Context-sensitive intelligent action panes aid productivity
Familiar and Easy to UseFamiliar and Easy to Use
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Setup by IT owned and managed by business users
Familiar and Easy to UseFamiliar and Easy to Use
Business User Responsibility Application Security
UsersRolesPrivileges
Hierarchies and Roll Ups Business Process Flows
Modification of Packaged Process FlowsCreation of New Process Flows
Report Templates Excel, Word, PowerPoint Templates Create and Modify Metrics and Measures
IT Responsibility Hardware Security and Authentication
UsersRolesPrivileges
Data and Application InfrastructureDatabase ServerApplication ServerOLAP Structure
• Self-service financial reporting ensures any user can create information on the fly
• Wizard-driven interfaces simplify content creation and administration processes
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Step-by-step guidance through planning processes
Enforce policies and procedures - track process status and completion
Out-of-the box templates for sales and revenue planning, CAPEx planning, workforce planning, budgeted financial statement reports, forecasting and more
Customizable business process flows ensure consistency and minimize training
Process-centricProcess-centric
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Integrated planning and consolidation
Unified Unified
Financial reporting and analysis
Ad hoc
Automated variance analysis
Driver analysis (industry, growth, capacity, etc.)
Forecasting and consensus building
Rolling forecasts
Continuous planning
Collaboration
Business planning
Budgeting
Sales/revenue planning
Capital expenditure planning
Headcount/staffing
Expense planning
Cash flow planning
Consolidation
Intercompany matching/reconciliation
Intercompany eliminations
Management roll-ups
Legal consolidation
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Fast implementation
Pre-packaged content reduces implementation times by up to 80%
Dynamic configuration enables easy customization to specific requirements
Complete, generic reference implementation
Rapid and trusted legal compliance
Embedded expertise in meeting financial regulations including best practice in financial consolidations and internal controls
Detailed process guidance for business users
Comprehensive scope
IFRS specific chart of accounts
Pre-configured IFRS consolidation rules, controls, and calculations
Publishable financial statements
Starter KitsStarter Kits
Faster legal compliance – reduce implementation times
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Analysis & Audit Trail
Dynamically formatted accounting and analysis reports leverage native drill down
Audit IDs for tracking data origin
IAS 1 Publishable Financial Statements
Balance Sheet (current/non-current format)
Income Statement (by function)
Cash Flow Statement (generated automatically)
Statement of Changes in Equity
Segment information
XBRL Templates
Excel templates pre-mapped with IFRS taxonomy
SAP BPC Starter Kit for IFRSSAP BPC Starter Kit for IFRS
Analysis, audit trail and publishing of financial statements
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SAP BPC Live Product DemoSAP BPC Live Product DemoR
epo
rt Distribute plans and analyze variances to drive re-forecasts
An
alyz
e
Consolidate and model multiple scenarios
Co
llect
Collaboratively create plans and forecasts
Co
mm
un
icat
e
Communicate top down targets, timelines, and guidelines
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Successful Stories – Watkins ManufacturingSuccessful Stories – Watkins Manufacturing
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Successful Stories – Beckman CoulterSuccessful Stories – Beckman Coulter
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BenefitsBenefits
SummarySummary
Familiar and easy to use Choice of word, PowerPoint, web and Excel interfaces Context sensitive intelligent action panes Managed by the business, set up by IT
Process centric Customizable business process flows
Unified Planning Consolidation Forecasting and consensus building Financial reporting and analysis
Rapid, broad adoption and reduced learning curve
Lower maintenance and cost of ownership
Greater consistency and minimal training
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Thank You for Joining UsThank You for Joining Us
To schedule a live demonstration:
• Binh Ly• EPM Practice Director• 714-287-1392• [email protected]
See edgewater.com for:
• Services offered• Solution briefs• Solution in detail• Customer case studies