Christian Lindholm, VP Financials, SAP EMEA April 20, 2016sapevents.be/FID/presentations/0.2 _...

Use this title slide only with an image

Financial Digital Transformation Christian Lindholm, VP Financials, SAP EMEA April 20, 2016

Public

©  2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

Nine changes Shaping the Finance Professional’s career

1.  Today’s finance professionals find their work more engaging and influential than they had anticipated

2.  Finance professionals don’t see themselves standing still – they expect to grow professionally and extend their reach into even more parts of their companies

3.  Finance is becoming the central touch point in many different aspects of their enterprises

4.  Finance teams must adapt to a business environment in which decisions are more complex, yet still need to be made faster than ever

5.  Finance professionals are eager to be counted on for forward-looking analysis and business insight

6.  Finance professionals are looking for ways to gain a deeper understanding of more parts of the business

7.  Better use of sophisticated technology lies at the heart of finance’s efforts to drive performance improvement

8.  Finance professionals are grasping digitalization of the information flows as the foundation for their successful delivery of advanced analytics

9.  Digitalization and automation often are seen as opportunities to provide additional value, rather than as disruptive threats to finance jobs


The Challenges for Finance Professionals

Can you respond to data requests in under a day?

Need to analyse data more quickly

Granularity is regularly sacrificed for the sake of

speed

Only 12% 90% agree 56% agree

”Finance executives recognize need for speed in data analysis – but few companies are able to deliver in real.”

cfo.com research


The Challenges for Finance Professionals

76% of CFOs believe that at least half their time should

be spend on high-value planning and analytic

activities

More automation is required

New skill sets and capabilities is required to

take full advantage of automation

55% achive it 72% agree 68% agree

cfo.com research


The New Reality

Strategy and

growth

Business performance

Compliance and efficiency

Traditional Finance Department Next Generation Finance Department

Inflexible and complex business models, proactive pattern identification and scenario modeling not possible

Information delays results in reactive reporting and analytics. Manual processes reduces the effectiveness of Finance.

Incomplete results due to disconnects between finance and operations.

Data redundancy leads to inconsistencies between transactional and analytical systems

Strategy and

growth

Business performance

Compliance and

efficiency

Architecting new business models Flexible modeling, deep analysis, and rapid implementation of new business models

Insight in the hands of the business Instant insight-to-action anytime, anywhere, enabled by single source of the truth

“Lights-out” finance processes Automated and networked processes, event-driven, and inherently compliant.

“The finance function is not reactive, but it is more proactive....Its job is to anticipate change based on continual updating of the key assumptions that truly drive business performance.”

—S. Venkat Padmanabhan, Senior Vice President/Head-Products (Finance and Accounts), Olam International


How is the next generation different?

Logistics Document

CO Document

FI Document

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

From … Stability

Processing

Analytics

CO Document

FI Document

Flexibility

Views on the fly

Pre-Defined Aggregates

Flexibility

Stability

Processing

Analytics Logical document

Logistics Document

… To


Close batches

Consolidation batches

Initial period Close and consolidation

Reporting on demand

Close and consolidation Initial period

How is the Close process transforming Soft financial close anytime

With Next Generation: �  Real-time system with key performance indicators (KPIs)

instantly refreshed �  Elimination of end-of-period batch bottlenecks �  Continuous intercompany reconciliation �  Continuous financial reporting visibility �  Profitability analysis and line-item detail reconciliation �  Automation for routine tasks �  Full management visibility of close tasks

With traditional system: �  Close activities that don’t begin until period end �  Multiple batch-run dependencies �  Batch bottlenecks that delay downstream activities �  High error-correction efforts �  Complex issues that are postponed until after close �  Time-pressured resolutions �  Delayed visibility into reporting

Traditional system With Next Generation system

User interaction

Ad hoc

Traditional Next Generation

Process excellence

User interaction

Ad hoc


User interaction

Ad hoc

How is the Planning process transforming Planning and predictive finance

With Next Generation system: �  Single consolidated view of all planning and forecasting information �  Rollup of planning from subsidiaries into corporate planning �  Rollup of planning from operations into financial planning to measure

the financial impact of operational plans �  Leveraging of real-time information to immediately update plans and

forecasts �  No lag time for updates across objects �  Predictive capabilities to model planning options

With traditional system: �  Different planning processes and interfaces �  No consolidation of related plans between objects �  Lack of insight of operational planning into the financial

bottom line �  Manual consolidation of planning across objects �  Inability to update plans and forecasts �  No what-if capabilities, resulting in guesswork

Traditional system With Next Generation system


Process excellence

User interaction

Ad hoc

Expense Planning

P&L Planning Profitability Planning

Database

Common Planning Model

Views

Expense Planning P&L Planning Profitability

Planning


How is Cash Management transforming Real-time cash management and forecasting

With Next Generation: �  New cash management solution combining analytical functions

and related transactions �  Consumer grade front-end and KPI-based analytics available �  Including integrated bank account management for the central

administration of bank accounts and signatories �  Integrated planning model embedded – benefiting from a

synchronized and harmonized data model �  Flexible and non-disruptive cloud or on-premise deployment

options

With traditional system: �  Only limited basic cash management functions �  Almost no analytical capabilities �  Liquidity planning function outside enterprise resource

planning �  No bank account management available �  Limited capabilities to integrate data from other systems �  No option to run in the cloud

Traditional system With Next Generation


Process excellence

X

Z Y ERP

Cash management

Bank Cloud

ERP

Cash management

X

Y

Cloud

Z

Bank Bank

Bank

Bank

User interaction

Ad hoc

User interaction

Ad hoc


How is Architectures transforming Rethink how you deploy and integrate enterprise software

With Next Generation: �  Single source for finance transactions, planning, consolidation, and

reporting �  Real-time integration �  Support any kind of source system (Oracle, MS etc.)

With traditional system: �  Never truly get “One Version of the Truth” �  Many systems, applications, data sets, extractions, transformations,

processes �  Year-long integration issues between eliminating old systems

Traditional System With Next Generation

User interaction

Ad hoc


Process excellence

User interaction

Ad hoc

Any SAP or non-SAP release

SAP

Central Instance

Non- SAP


SAP S/4HANA reimagines businesses for the digital economy

Customer Experience Omnichannel

Workforce Engagement

Assets and Internet of Things

Supplier Collaboration and Business Networks

The Digital Core

�  The entire value chain is digitized, including the digital core that serves as the foundation for business innovation and optimization.

�  The digital enterprise interconnects all aspects of the value chain to drive and anticipate business outcomes in real time.

�  Enterprises across industries can lead the digital transformation by completely reimagining business models, business processes, and work.


SAP Finance Solutions

Operational Management

Enterprise Performance Management

Accounting and Financial Close

Financial Planning and Analysis

Treasury and Financial Risk

Collaborative Finance Operations

1

2

3

4

0110

1100

111

$

AP AR GL

Banks

$ € £ ¥

Suppliers

Transactions

Customers

Order

Invoice

Delivery

Payment

Order

Delivery

Employees

•  Profit and Loss •  Balance Sheet •  Cash Flow

2012 2015 2020 2013 Today

Future Historic

Payment

Invoice

Regulator Stakeholders

Investment

•  Actual vs. Budget •  What if •  Profitability •  Forecast

Close Plan Predict/Model

Cash and Liquidity

Management

Collaboration •  Receivables management •  Collaborative Invoice to Pay •  Travel Management •  Shared Services Framework •  Bank Communication / FSN

Finance Operations •  Real Estate Management •  Lease Management

2 1

3

Collaborative Finance

Operations

Close S/4HANA FINANCE

4


SAP S/4HANA Finance

Instant Insight Real end-to-end in memory

Intuitive User Experience Productivity Improvements

Business Networks Always connected

Financial Planning and Analysis

Treasury and Financial Risk

Enterprise Risk and Compliance

Accounting and Financial Close

Finance Operations

Universal Journal

Real Time Accounting

Instant Financial Analysis

Real Time and

Predictive Planning

Real Time Treasury and Cash

Management

End to End Process

Automation


The Digital Boardroom Enabling a transformation in Decision Making

Automated Processes

Real Time Processes

Production Marketing Strategy

Head of Sales

CEO CFO

Head of Products

Real Time Reporting

Agile Planning

Comprehensive Risk Management


The Benefits of Transforming your Finance IT

Respondents with tightly integrated ERP and FP&A systems deliver high value

Automation raise finance’s importance within the

organization

Advanced analytics would yield measurable financial

benefits

82% Agree 72% agree 87% agree

cfo.com research


Cirque du Soleil


Türk Telekom: Consolidating Its ERP Landscape and Powering Reporting with SAP® S/4HANA Finance

Shorter Closing period by up to 2 days

Greater Clarity and visibility into financial data

More Flexibility in business operations

Simpler Processes that eliminate unnecessary workload

“SAP S/4HANA Finance will help Türk Telekom simplify processes. Easier access to real-time financial data has accelerated reporting and analysis. The solution helps us to be more flexible in our business operations and enables us to grow organically.” Zafer Pinarcik, Group Financial Controller, Türk Telekomünikasyon A.Ş.

40387 (15/10) This content is approved by the customer and may not be altered under any circumstances.


Overview Screen Main and Context Screen Exploration Screen

Ø  Overview Screen: Group financial information and industrial production.

Ø  Context Screen: Focus on water services. Main KPIs from Workforce Management, actual and plan.

Ø  Exploration Screen: Detail information for the maintenance activities.

The POC is dynamic thanks to the possibility to explore and navigate the data. In specific, we can: -  Filter the data on screen and on the map, we can adapt the view to specific data. -  Execute simulations -  Drill-down to detail information

Digital Boardroom POC at an Utility Company


Thank You

Date post:	14-Jul-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Christian Lindholm, VP Financials, SAP EMEA April 20, 2016sapevents.be/FID/presentations/0.2 _...

Documents