Finance Digital Transformation - SAP · 6$3 6( ru dq 6$3 diiloldwh frpsdq\ $oo uljkwv uhvhuyhg...

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CUSTOMER

Antonio Giannelli, SAPMarch 14th, 2018

Finance Digital Transformation

Digital Finance Transformation

3CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Finance

Real-time, continuous processes with no manual processes or media breaks

Full transparency of all information accessible to everyone in every moment


S/4HANA Finance: The Technical Foundation to store elementary dataNew Data Model leveraging SAP HANA capabilities

LogisticsDocument

CODocument

FIDocument

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

SAP ERP Stability

Processing

Analytics

UniversalJournalEntry

Flexibility

Aggregation on the fly

via HANA views

Pre-Defined Aggregates

Flexibility

Stability

Processing

AnalyticsSingle repository

across applications

LogisticsDocument

S/4HANA Finance

Customer Benefits ofS/4HANA Finance

• Harmonized internal and external reporting

• Higher flexibility in reporting and analysis

• Significantly reduced reconciliation effort

• Significantly reduced memory consumption

• Deployable as central finance in case of heterogeneous system landscapes

4


FAAT_PLAN_VALUES

ACDOCA

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MLIT* MLCR*

ANLC

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BSAD

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BSIKBSIS BSAS

BSID

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Document Totals Indices

Finance

GL, AR, AP

New GL

CO

AA

ML

SAP Business

Suite

Header Item

SAP S/4HANA database & table structuresprepares your data structures for new real-time requirements, big data and high throughput


Document

MATERIAL VALUES

VBAK

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(new)

VBFA (Simplified)

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Used for Master Data only

MLDOC

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ML Valuation

Used for Master

Data only

CKMLKEPH

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SALES FINANCEDocument

Header Item

MATERIAL QUANTITIES

Material Document

IndicesTotals

MATERIAL VALUESValuation in MM or Valuation ML

Aggregates

Hybrid: Master Datawith Valuated Stock

MBEW

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MBEWH

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MARDH

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MSKAH

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Aggregates

Stock Aggregates History

Inventory Movements Hybrid: Master Data with Stock Aggregates

SAP Business Suite

GL, AR, AP

New GL

CO

AA

ML

Sales Order

Delivery

Billing Document

Status Info

Conditions

Document Flow

KONV

VBFA

Header Item

CKMLPP

CKMLCR

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ANEK

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Simplifying database & table structures to prepare for scale


Financial planning and analysis

Accounting and financial close

Treasury management

Financial operations

Governance, risk, and compliance for finance

Collect

• Support New Digital Business Models

• Leverage Data like Sentiment Analysis

Understand

• Leverage Data for Machine Learning

• Analyze without Recollecting

Change

• Predictive & Collaborative Planning

• Intuitive Data Exploration

• Simulate changes in organization

SAP S/4HANA Supports Live Business: The New Requirements


A comprehensive Portfolio for the CFOCovering All Business Areas Across All Roles

Finance and Risk Chief Financial Officer

Vice President, Finance

Head, Corporate Reporting

Head, FinanceOperations

Head, CorporateTreasury

Risk, Compliance & Audit Officer CISO, CIO

Financial Planning& Analysis

Accounting& Financial Close

FinanceOperations

TreasuryManagement

Enterprise Risk& Compliance

Cybersecurity& Data Protection

Planning, Budgeting, and Forecasting

Financial Accounting Record to ReportPayments and Bank Communications

Enterprise Risk Management

Access Governance and Identity Management

Profitability and Cost Management

Entity Close Order to CashCash and Liquidity Management

Controls and Compliance Management

Single Sign-on

Management Reporting Corporate Close Procure to PayDebt and Investment Management

Automated Monitoring and Screening

Access Monitoring

Financial Reporting Indirect Tax ManagementFinancial Risk Management

Policy Lifecycle Management

Data Loss Prevention

Direct Tax Management Real Estate ManagementRisk Management for Commodities

Audit Management

Financial Close Governance

Travel and Expense Management

Treasury GovernanceInternational Trade Management

Financial Shared Service Management

Financial Process Governance


Steer the business on an operational and strategic level through continuous information flow

Continuous, end-to-end automation improving efficiency, data integrity, and visibility into finance processes

Monitor in real-time the progress, quality, and financial results of the closing cycle to avoid bottlenecks and address business concerns

Get closer to the business and make better strategic decisions thanks to real-time insight

Enabling strategic finance with a modern system delivering instant insight to the entire business anywhere, available on-premise and in the cloud

Continuous Accounting: The Theoretical Foundation

Real-time Insight

Efficiency and speed

Quality and governance

Rob Kugel, “Continuous Accounting Enables a Strategic Finance Department” (Ventana Research, 2015). https://blog.ventanaresearch.com/2015/10/30/continuous-accounting-enables-a-strategic-finance-department/ (local)


Continuous Accounting Enables a Strategic Finance Department

Continuous accounting embraces three main principles:

Automating mechanical, repetitive accounting processes in a continuous, end-to-end fashion to improve efficiency, ensure data integrity and enhance visibility into processes

Distributing workloads continuously over the accounting period (the month, quarter, half-year or year) to eliminate bottlenecks and optimize when tasks are executed

Establishing a culture of continuous improvement in managing the accounting cycle. Such a culture regularly sets increasingly rigorous objectives, reviews performance to those objectives and makes addressing shortcomings a departmental priority.

Rob Kugel, “Continuous Accounting Enables a Strategic Finance Department” (Ventana Research, 2015). https://blog.ventanaresearch.com/2015/10/30/continuous-accounting-enables-a-strategic-finance-department/ (local)


Demo SAP S/4HANA Finance on iPadCFO Dashboard


Demo SAP S/4HANA Finance on iPadMachine Learning to reconcile Payment and Invoices


Demo embedded in this deckSAP Financial Statement Insights for Profit and Loss



Video DemoSAP Real Spend


Central FinanceStreamline connectivity in heterogeneous environments

Example of Future Reporting User Interface


Demo embedded in this deckeQuill


Focus on Planning in ERP environment


Financial Planning Analysis 2016 CFO Research


SAP BPC Integrated in S/4HANA

Income Statement

Revenue & Sales Deductions

- Cost of Sales Goods Sold

Gross Margin

+/- Other Revenue / Other Expenses

EBIT

+/- Amortization / Depreciation

- Marketing Cost

- R&D Cost

- Administration Cost

Sales Planning on Periods*,Market Segment Planning

Cost Center Planning, Internal Order Planning,Project Planning

Profit Center Planning

Cost of sales planning,Product cost simulation**

P&L Planning, Balance Sheet Planning and Liquidity Planning

Activity Price Planning *(plan-rate for internal activity)

Activity Consumption Planning *(expected quantity of a specific activity provided by a partner cost center)

Fixed Amounts Transfer Planning *(plan for fix amount-transfers between cost centers)

Cost simulation *(simulate the transfer of fix amounts (beneath ratios and services))

* Added with S/4HANA 1610** Added with S/4HANA 1709


FIORI

S/4HANA FINANCE

Predefined Business Content

• Faster & Safer Implementation

• All relevant dimensions (FI, CO, CO-PA)

No Data & Master Data Replication

• Faster & More Frequent Plan

• Actual vs. Budget: Native & Continuous

• Drill-down to line item level

• Plan at any node level

• Single source of truth: Simpler Analysis

• No Costs of Alignment, Replication, Reconciliation

Some Capabilities dues to New Systems

• HANA & Data Model Redesign: Speed

• Improved UI (Transaction & Analytics)

• Structure Flexibility (Only source docs)

• Business Process Flows

• Simulations & Multi Versions

Some Customer Benefits in the Planning Process

ERPData

warehouse & BI

Legacy ERP Legacy ERP Legacy ERP

Planning & Consolidation

Central Finance Central Finance Central Finance

SAP HANA PlatformSingle source of truth

“ SAP SAP SAP SAPERP BPC BW BI “


Demo embedded in this deckSee Actuals and Master Data changes in SAP BPC Optimized for S/4HANA



Demo embedded in this deckPlan at node level in SAP BPC Optimized for S/4HANA



Client use case

Focus on Planning in Data Warehouse and Hybrid Planning environment


SAP BPC, version for BW/4HANAUnique Advantages

Openness

• Integrate data from cloud applications or third party data store into BPC

• Leverage Big Data to improve decision-making

Simplicity

• Simplified planning models in BW/4HANA

• Streamline data loading processes• ONE product for planning and

consolidation

Modern Interface

• Connect modern analytics solutions to your BPC data

• Present live BPC data in SAP Digital Boardroom and SAP Analytics Cloud

High Performance

• Push down calculations to HANA for faster planning and closing cycles

• Improved scalability with BW/4HANA to plan with greater details




* Embedded Model

** Standard Model





SAP Analytics Cloud - Planning

Plan Simple

Create business models and formulas in an Excel like interface

Trust

Drive high performance with the SAP Hana Cloud Platform

Capable

What if Analysis, Workflow, Driver based planning, Built in financial Intelligence, Alternative Hierarchy support, Private Versions, Excel like formulas in dimensions and reports, Allocations, Collaboration, Data Entry, Disaggregation, Versions, Time, FX, Various data acquisition methods, Operational Reporting and more….

37


Version ManagementPublic/private versions to allow individual users or teams to adjust the plan and simulate various planning scenarios

Key Features

• Manage public and private versions• Copy and delete versions• Publish private versions to a new

or existing version• Share private versions with others

for collaborative planning


Workflow and Input TasksInput tasks make it easy for large numbers of planners to update the plan and track approvals

Key Features

• Calendars useful for managing business process flows

• Create processes and event categories to model high level processes

• Add events to track key milestones and tasks to assign responsibility and multiple approvers

• Filter on key items to focus on critical items and show items in Gantt chart

• Create input task from a story• Request specific people update the plan

• Submit plan updates for approvals, where changes can be tracked against the original plan

• Track the individual status to manage the entire update process

• Once approved, changes can be published to a public version so everyone can see revised plan


CollaborationTeams discuss scenarios and decisions can be documented

Key Features

• Native collaboration • Create discussion topic and invite

colleagues to join

• Use messaging, reports and tasks to facilitate discussions

• Assign tasks with approval, dates with notifications to manage the processes

• Archive or delete discussions

• On-screen notifications to alert user to collaborative updates

• Add comments to story items

• Share stories with other users

• Manage and share files with others


SAP Analytics Cloud – Business Intelligence

• Prepare and model cloud and on premise data from your browser

• Support data connectors from SAP (BW, HANA, HANA Cloud Platform, Universes) and non-SAP sources

Connect & Prepare your Data

• Design, Visualize, and create your stories online

• Add simple location analytics into your visualizations

• Personalize your own dashboard views

• Simply Collaborate with your team

• Take action on your data

• Use permissions to control who can view and edit your analytics

Explore & visualize Collaborate & Share


SAP Analytics Cloud – Predictive

Automated, Guided and Trusted Experience• Time series forecasting to analyze trends, cycles, and

fluctuations in time series data and predict future outcomes

• Guided Analysis designed for Business Users

Smart Data Discovery• Uncover key influencers, outliers, groupings, and other

insights• Interact with the insights and explore hidden structures and

relationships• Find the answer to business questions using intuitive charts

and natural language.


Corporate Financial Planning Backbone – Local Predictive & Collaborative Planning – Intuitive Data Exploration – Data Consistency Integration between BPC and SAP Analytics Cloud

SAP AnalyticsCloud

SAP AnalyticsCloud


Video DemoPlanning model in SAP BPC for BW/4HANA, Predictive planning in SAP Analytics Cloud: solution integration

Focus on Close and Disclose process


SAP Finance possible Architecture with Central Finance

SAP BPC addon for S/4HANA

SAP Financial ConsolidationRegulatory Reporting and Managerial Data

reporting

SAP Business Planning & Consolidation

Modeling & Forecasting

Reporting Factory

Data Analysis and

Dashboards

Front End Tools

Corporate Application Layer

Platform Layer

Source Layer

Business Systems

SAP S/4HANA Finance – Central Finance

SAP BW SAP ECC Non SAP Flat Files S/4HANA

SAP Disclosure

Management

SAP EPM

Addin

SAP BW

SAP Financial Information Management / Data Services

(ETL)

SAP BO Webi / Lumira

SAP Analytics CloudSAP Analytics Cloud for Planning

SAP Analytics Predictive

SAP FC addon for S/4HANA

SAP Analysis for Office

S/4HANA

SAP Analytics Cloud Digital Boardroom

SAP SLT


Credentials on Corporate Closing componentsSome figures as of 2017

90% of BFC customers use FIM

Disclosure Management heavily used by FSI (95%) for Regulatory Reporting

DM

More than 800 clients

BFC

More than 900 clients

FIMMore

than 2K clients

BI(incl. EPM AddIn)

More than 25K clients

HANA

More than 7500

clients

76 of the Fortune Global 100

With and without SAP applications

Transactional, Analytical and both at the same time

Core Components

87% are big International Corporations

55% headquartered in Europe

BPC

More than 5K clients

Many Planning but also Consolidation


SAP BusinessObjects Financial Consolidation referencesSome key SAP BFC / FIM clients with a HANA platform

Headquarter Switzerland UKI France USA UK USA Japan

Sector Cement Producer Publishing and events

Energy & Utilities Consumer Products

Financial Services Food and Agriculture

general worldwide trading company

Conso entities 1,600 300 1,560 400 2300 2,300 3,000

Data rows in the conso *

4,2 millions 2 millions 7 millions 9,6 millions 4 millions 20 millions1200 accounts

15 millions

Consolidation Duration*

3 – 4 min < 2 min 10 min 3 min 5 min 20 min 12 min

Scope of use Management and external reporting, IC reconciliation, Rolling Forecast, Mid-Term Plan / Budget

Financial Close to Disclose Actual, Forecast, Budget, other financial kpis

Financial Close to Disclose Actual, Budget, Forecast, Last Estimate, HR, cash

Financial Actual legal and management reporting (very detailed granularity)

Single stream reporting for IFRS/UK GAAP, management , Corep / Finrepreporting

US gaap Financial Actual legal and management reporting, cash

IFRS and JP gaapFinancial Actual legal and management reporting, Budget, 3YPlan

Nb of users 1,260 130 2,600 720 4,000+ 2,000 2,300

Cloud Platform AWS No SAP HEC No No No SAP HEC

ERP / GLs to connect to

35 local ERP platforms (mainly JD. Edwards, some SAP and SAGE)

1 SAP ERP ECC on HANA as a source

6 ERP systems (Sage, Oracle, SAP)

12 SAP ERP systems mainly

10 different systems

20 source ledgers including JDE, Scala, SAP, …)

10 local ERPs (only 2 SAP)

* Consolidation time for a full Monthly Actual consolidation process (few minutes only when consolidation run in incremental mode)


SAP Financial Consolidation 10.1 SP05 │ SAP S/4HANA interoperability

SAP Labs benchmarks*

System/Process Metrics Bench A Bench B

Import in SAP Financial Consolidation Average duration 1:52min 2:30min

Source – SAP S/4HANA ACDOCA records 1,001,735,086 1,001,735,086

SAP HANA calculation view Output rows 321,081 321,081

Target – SAP Financial Consolidation Imported packages 200 200

Data Link mapping rules

Reporting units 200 200

Analysis dimension 100 100

Accounts 1,000 2,000

Category / Data Entry Period 1 1

*Please note that actual performance results may vary depending on system configurations, servers, architectures, networks and storage used. The performance survey result provided in this email is for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.


The potential future close-calendar


What are the advantages of a Continuous Accounting?

Accuracy and Confidence– Disclosure externally with focus on

compliance– Respond to increasing external

scrutiny– Comply with strict regulations

Instant Insight– Improve management and control

of operations– Allow for immediate decisions– Highlight service provider approach

of Financials department– Boost fast close

Speed and Efficiency– React to requirements for faster

filing, acceleration– Indicate quality of Financials

department– Analyze data with more time

available– Elimination of tasks

Required Desired Inspired and Admired


Video demo SAP Financial Consolidation 10.1 with SAP Analytics Cloud.


Live DemoSAP Disclosure Management


Demo Financial Insight on iPadBPC IFRS Starter Kit with BI

IFRS Starter Kit: Overview and Appendix

Focus on Solutions for Profitability


SAP solutions for real-time customer and product profitabilityFS-PER interacting with S/4HANA

SAP HANA

Transactions Simulation Prediction

Primary costing on ERP dimensionsin SAP S/4HANA

Advanced costing on detailed level in FS-PER

Aggregation and analysis of granular data for profitability reporting

Analysis

Time

Co

sts

Rev

en

ue

s

New Dimensions


FS-PER Framework : The New HANA-based Performance Management


* Ca. 3 GByte/minute read performance single thread. Ca. 2 GByte/minute write performance single thread. If data access performance of GByte/s is needed or direct access is not allowed, then (non-permanent) replication should beused.

Integrates with your systems in High Speed

FS-PER Framework : Data Integration

… without Data Replication*


FS-PER Framework : The Calculation Engine

Perform native sophisticated complex calculations …... or use external libraries such as PAL, and R


FS-PER Framework : Analyze, Simulate & Forecast

Reuse your Model to Simulate Scenarios

Drill-Down into Results for Audit

Use your Budget Data to Forecast


FS-PER Framework : Business Focused Solution

Execute Allocation

ExecutionUser

Analyze and

Report

AnalysisUser

ModellingUser

Integrate Data

Source

Collect Data

Enrich Data

Create Cost

Driver

Create Allocation

Rules

Define Reports

Software can be configured by Business DepartmentIT-persons can focus on installation and data integration, but don‘t need to model calculations.


FS-PER Framework : Deployment Options

SAP Performance Management can be deployedstand-alone or together with various differentsystems.

As a general advise it should be installed on aHANA machine, where most of the the relevant dataresides.

Stand alone,but integrated

Together withBW or BPC

Together withERP or S/4HANA


Comprehensive, documented Sample Content to accelerate the initial configuration and establish best practices in Modeling

Documentation(132 pages)

FS-PER Documentation : Free Sample Content – Cross Industries


FS-PER Teamwork : BPC / BW Integration

Smart Data Access • Connect to many Data Sources• Access external data in real-time

In-Memory Calculation Engine• High-Speed • High-Volume

Instantaneous Driver Based Planning• Complex Models (e.g. Revenue, Costs)• Integration of Offline Calculations• Business User Centric Modelling

Instant Reporting• Results immediately available

Unified BI Layer• Tool independent Reporting

Use

you

r Pla

nnin

g D

ata

from

BPC

Read

/Writ

e to

you

r SAP

BW

Dat

a W

areh

ouse


FS-PER Use Case : Re-/Insurance Cost Allocation on Product Level

Allocate actual & planned overhead GL costs (e.g. Finance, IT, HR, Operations, etc.) to individual insurance product positions

Drill-Down to Details

Product Actuals

GL Actuals GL Planned

Allocate by Volume, then by Duration

Analyze the Product Costs


FS-PER Use Case : Enterprise Cost Management for Banks

ECoM for an American Bank including Survey collections, management overlays, workflow and What-If Simulation

Cost Study Project

DefinitionsActivities Drivers Financial

HierarchiesAllocation

Keys

Business Activity

Allocation

1. Data Sourcing Process

Pro

cess F

low

Reporting and

Analytics

What-If Simulation

2. Allocation, Reporting and Simulation

1. D

ata

Sou

rcin

g P

roce

ss2.

Allo

cati

on,

Rep

orti

ng a

nd

Sim

ulat

ions


FS-PER Use Case : Telco Multi-Dimensional Profitability

Telecommunications Example for Profitability Analysis, Planning, and Forecasting using SAP BPC Integration

(Re-) Model Revenue

Allocation

Adjust Planning in BPC

Calculate Profitability

Review & Analyze


Allocate Ticket Revenue to Line Operations

FS-PER Use Case : Profitability for Railway Companies

Drill-Down

View Profitability, e.g. by Freight, and

Passenger Service

… or by Railroad Track, or by Cargo Group, or

by many other …!

Allocate Overhead Costs to ProductsAllocate Train

Costs to Waybills


FS-PER Use Case : Airline Route Profitability

Flight order• Flight number• Flight date, A/C• STD, ETD, ATD• STA, ETA, ATA• Origin Destination• Route, distance• Fuel Consumption• PAX number• Meals• Uplift

Direct Operating Costs PO’s and Invoices

Route Profitability

1

Revenue Accounting

3

Fixed Costs• Aircraft depreciation • Flight Operations • Passenger Services • Engineering costs • Stations and traffic

Overhead• General & Administration• Sales, Marketing• Advertising

2

Cost allocation mechanism

Fuel

CateringHandling

Aiports

Cost Centers

Other Revenues• Ancillary revenues• Miscellaneous

4

CargoERP

Pax & Cargo Revenues,

LHR

Landing Actuals

T - 48hrs JFK

Take OffAA101 JFK to LHR

Land + 48hrs


FS-PER Use Case : Solvency II for Insurance Companies

Based on EIOPA Regulatory Requirements

Calculate Final Solvency Capital Requirements

Solvency II is an EU Directive that codifies and harmonizes the EU insurance regulation.

Discount Portfolio Cash Flows

Calculate Risk Modules:

Life Underwriting RiskNon-Life Underwriting RiskCounterparty Default Risk

etc …

Calculate Minimum Capital Requirements

And much more…


Demo SAP Performance Management for Financial Services in a Video.

Questions? Comments?

Thank you.Contact information:

Antonio GiannelliBusiness Development Expert at Analytics, Finance and Risk CoESAP EMEA North Centre of [email protected]+33 6 09 82 86 16

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Finance Digital Transformation - SAP · 6$3 6( ru dq 6$3 diiloldwh frpsdq\ $oo uljkwv uhvhuyhg...

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