Magnutude 2020| Agile financial reporting with Every Angle

Dinsdag 17 september 2013

Jacques Adriaansen

Radjkoemar Ramkisoen

2

About strategy, change and agility

Agility bottlenecks and remedy

Financial operational analytics

Agile financial reporting with Every Angle

Questions

Content

3

Strategy, Change and Agility

Ambition

Competition

Technology

Legislation

Market is the major trend

Change

Some examples of changes with

effect on strategy

Organisation

Systems

Business

Strategy

4

Free after Bolwijn & Kumpe

Emerging competition factors since the sixties…

(Cost) price Mid 60-ties

Quality Mid 70-ties

Time Mid 80-ties

Innovation Mid 00-ties

Flexibility Mid 90-ties

Strategy is about making choices

to distinguish your company

from the competition

by being better than the best

Relation Ever & ever

… about Strategy and getting color

5

Innovation (Cost) price

Relation

Flexibility

Dominant strategies to address the customers’ needs

Time

Quality

Mid 60-ties

Mid 70-ties

Mid 80-ties

Mid 00-ties

Mid 90-ties

Ever & ever Product leadership

Customer intimacy

Operational Excellence

Free after Bolwijn & Kumpe

… and linked to Treacy & Wiersema

6

Agility is the most important skill

THEN

is the major trend,

Change

Strategy, Change and Agility

WHEN Ambition

Competition

Technology

Legislation

Market

Organisation

Systems

Business

Strategy

7

Reluctance to be changed

…

Too high investments needed

…

Operations IT

Agility bottlenecks

Budget > 90% used for keeping old stuff alive

Too long lead-times to answer urgent new questions

“Business specifies – IT builds/buys” myth

While IT should be

more agile than

the business !

ERP data model complexity

ERP process model complexity

RO

OT C

AU

SES

Organisation

Systems

Business

8

Reluctance to be changed

…

IT

Budget > 90% used for keeping old stuff alive

Too long lead-times • data model complexity

• process model complexity

“Business specifies – IT builds/buys” myth

Organisation

Systems

Business

Agility remedy for IT

IT more agile

than the business !

Make

‘Real Self-service BI’

happen

9

Reactive control Corrective control Proactive control

Operational Business Analytics ERP/CBI

Financial operational analytics

Bron: Business Analytics Framework (May 2012, Gartner)

Insight

Hindsight

Foresight

INFORMATION OPTIMIZATION IMPROVEMENT

Descriptive Analytics

Diagnostic Analytics

Predictive Analytics

Prescriptive Analytics

10

Manage Finance process

Reactive control Corrective control Proactive control

Operational Business Analytics ERP/CBI

Classic Finance • backwards oriented

Financial operational analytics: • Drill down in financial statements • Cash flow projection • Customer payment behaviour

Financial operational analytics

Policies and controls

Financial performance

Powerful financial budgeting and planning tools

Bron: Business Analytics Framework (May 2012, Gartner)

Insight

Stewardship

Hindsight

Transaction processing

Foresight

Strategy

11

If I have enough cash it doesn’t matter. If I don’t have enough, nothing else matters.”

€

Supplier’s

cash tap

Operating

Expenses cash tap

Your company Customer’s

cash tap

€

Your cash

L H

Inventory

L H

?

1

2

3

4

Throughput: money generated by sales

12

Agile Financial reporting with Every Angle

Cash flow projection

Based on sales information

independent requirements

sales orders

billing documenten

Based on purchase information:

purchase requisition

purchase order

invoice receipts

Financial statement analysis

Drill down into financial figures

Payment behaviour analysis

Customer behaviour

Own behaviour

13

Questions