Evolving FP&A Through

Cloud-Based Planning SoftwareJeff Caravella

What

What if we could

fix broken genes?

Assessing the FP&A Landscape

2013 2016 2018 Beyond

The Company’s Evolution

Company

Founding

Initial Public

Offering

Scaling for

Growth

Aiming to start

clinical trial

Expectations for FP&A

Partnering with business to provide

insights to help drive results

Linking strategic and operational

planning activities

Ability to synthesize and present

information across all levels of the

organization

Building a culture focused on

achieving financial results

+

Establishing and Scaling

Finance Function

Creating framework and cadence for key

financial processes (budgeting,

forecasts, KPIs, long-range planning)

Building-out finance technology and

tools to support Company’s growth

Strengthen decision-making through

data-driven insights and perspectives

Understanding Company’s Maturity of Financial

Processes and Defining a Roadmap for Success

Developing State Intermediate State Leading State

1

Basic

2

Developing

3

Defined

4

Advanced

5

Leading

▪ No formal process

▪ No established

analytical matrix

▪ No planning model

and tools

▪ No BI Tool

▪ No collaboration

▪ Inconsistent process

▪ Basic analytical and

reporting matrixes

▪Basic planning model

and tools

▪Basic BI Tool

▪Minimal

collaboration

▪Highly manual

process

▪Descriptive analytics

▪ Defined process

▪ Defined analytical

matrixes

▪ Defined planning

model and system

▪ Defined BI

▪ Some elements of

collaborative planning

▪ Heavy reliance on IT

▪Descriptive and

diagnostic analytics

▪ Enterprise-wide

process

▪Multidimensional

analytic matrixes

▪ Driver base planning

model and system

▪ Advanced BI

▪ Collaborative

planning

▪Self service finance

planning tool

▪ Predictive analytics

▪ Integrated planning

process

▪ Leading analytical

matrixes

▪ Integrated driver

base planning model

and system

connected with BI

▪ Real-time

collaborative

planning

▪ Easy

multidimensional

scenario analysis

▪ Advanced analytics

Maturity of FP&A at Editas

Source: FP&A Trends (http://www.fpa-trends.com/article/london-fpa-board-fpa-analytics-maturity-model

He

re

Where FP&A Stood

Reliance on Excel

Limited Processes

Inconsistent Approaches

Slow Turnaround on Information

FP&A Continues to Rely Heavily on Excel

Publicly Owned Privately Held

Spreadsheet (e.g. Microsoft Excel) 44% 64%

Oracle Hyperion Planning 23 5

SAP BPC 11 4

Cognos 4 5

Host Analytics 1 6

Adaptive Insights 1 5

Board - 8

Oracle Planning and Budgeting Cloud Service 1 4

Other 14 10

2016 AFP Financial Planning & Analysis Benchmarking Survey: FP&A, a Function in Transition

REPORT OF SURVEY RESULTS October 2016

Polling Question

What Are you Using for Planning, Reporting, Forecasting?

1

2

3

Oracle/SAP

Host Analytics / Adaptive / Cognos/ Other

Spreadsheets

Linking FP&A System to Enterprise Strategy

Function SystemERP

Purchasing

Travel and Expense

FP&A

HR Planning

Payroll

?

?

System Roll-out Timeline

Q4 Q1 Q3Q2Software

Assessment

Contracting

Implementation

Post Go-Live

Build

Go-Live

Balancing Needs for

System SelectionTime

Cost

Function

1

2

3

Comparing FP&A Platforms

Through External Touchpoints

User experience (Finance / Business Partners)

Flexibility of hierarchy, analysis, scenarios, planning

Integration with Office Products

Level of IT Support / Involvement

Cloud vs. On Premises Solution

Mobile options

Dataflow

Flexibility in user security

Single Sign-on, etc.

System scaling with the company growth

Integrations and Adaptors with other systems

Key Themes for Functionality We Heard

Flexibility / Ease of Use

Self-Service Capabilities

Security Features

Scalability

FP&A Role Went Beyond Budgeting

- Advocate

- Project Manager

Before

Go-Live

After

Go-Live

- Change agent

- Negotiator

- Trainer

- Administrator

- Designer

- Resource

So What’s Changed?

System is Helping to Drive Processes

Long Range Planning

R&D Pipeline Planning

Management Reporting

Program / Pipeline ReportingCash Analytics

Headcount Planning

Capex Planning

Opex Planning

Automating Existing Spreadsheets

~70Spreadsheets automated across

the reporting, budgeting, planning

processes

Increasing FP&A Cycle Time

~60%Improvement in quarterly reporting

cycle through spreadsheet automation

~30%Improvement in time for forecasting

and planning cycles

Improving Headcount Planning and Reporting

Disparate spreadsheets Centralized System

Static Planning and Update Cycle Rolling

Separate Finance/HR Processes Harmonized

How?

Driving Ownership and Accountability

Inputting opex and capex plans

Inputting hiring plans

Reviewing System Generated Mgmt Reports

Department

owners are now:

FP&A can pivot towards other value-add activities

Establishing Systematic and Consistent Way

to Track Programs / Pipeline Spending

$8.0

$6.4

$7.3

$3.6 $3.1

$4.3

$1.9 $1.9 $1.5

$0.8

21%

17%

19%

9%

8%

11%

5% 5%4%

2%

0%

5%

10%

15%

20%

25%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

Pro

gra

m 1

Pro

gra

m 2

Pro

gra

m 3

Pro

gra

m 4

Pro

gra

m 5

Pro

gra

m 6

Pro

gra

m 7

Pro

gra

m 8

Pro

gra

m 9

Pro

gra

m 1

0

% O

F S

PE

ND

ING

R&

D S

PE

ND

ING

-Y

TD

Shift Towards Value-Adding Activities

0% 5% 10% 15% 20% 25% 30% 35% 40%

Budgeting/Forecasting

Reporting

Financial Analysis & Insights

Project / Decision Support

Long Range Planning Post Pre

Hig

he

r V

alu

e

Lo

we

r

Va

lue

Moving Forward Leveraging system to

strengthen financial

discipline

Improving decision-making

and strategy around project

resources

Scaling the system as the

Company grows (incl

Integration into ERP)

Questions?