dee houchen - oracle

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Empowering Modern Finance: The CFO as Technology Evangelist

Dee Houchen Snr Product Marketing Director Oracle

Oracle Confidential – Internal/Restricted/Highly Restricted


Oracle Corporation

• $38.5B in revenue on a trailing twelve-month basis *

• 400,000 customers in 145 countries

• $34B in R&D since 2004

• $60B on more than 100 acquisitions

• More than 25,000 partners

• More than 120,000 employees

• 18,000 customer support specialists, speaking 29 languages

• 17,000 implementation consultants

• 2.2 million students supported annually

• #1 in 50 product/industry categories

• #2 software company in the world

• #2 cloud company in the world

• More than 17,000 patents worldwide

• 36,000 developers and engineers

• 15 million developers in Oracle online communities

• 900 independent Oracle user groups with 500,000 members

Scale Innovation

3

* GAAP revenue reported in USD as of August 31, 2014


Last Year’s Survey

Source: The CFO as Catalyst for Change, Longitude, Oracle and Accenture, May 2013

Lack of time

Consumed with costs, economic volatility, and organizational complexity

Insufficient collaboration a barrier to strategic effectiveness

Lack of familiarity with technology

Growing strategic influence of CFOs

CFOs are poised to become more effective change agents

CFOs turning to technology to meet new expectations & expanded role


Things Are Changing

Cost – Containment Strategies

Weak

Collaborations

Technology Wary

Investments in growth

Strengthening Partnerships

Technology Advocate


Survey Sample

1,275

29%

21%

41%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

250 - 500m 500m -1bn 1bn - 5bn > 5bn

Revenue

975 300

Respondents Senior finance executives

Line of business executives

North America

21% Europe 52%

Middle East & Africa

7%

Latin America

5%

Asia Pacific

15%

Source: Longitude Survey results for Empowering Modern Finance – The CFO as Technology Evangelist, commissioned by Oracle and Accenture, March 2014 Source: Empowering Modern Finance – The CFO as Technology Evangelist, published by Oracle and Accenture, March 2014


Key Findings in Modern Finance

The modern CFO is the evangelist for technology adoption

Source: Longitude Survey results for Empowering Modern Finance – The CFO as Technology Evangelist, commissioned by Oracle and Accenture, March 2014 Source: Empowering Modern Finance – The CFO as Technology Evangelist, published by Oracle and Accenture, March 2014

Modern finance can enable maximum operational productivity and efficiency

Modern finance delivers insight and value to the rest of the business

Modern finance acts as a service-oriented, strategic partner to the business


The Modern CFO is a Technology Evangelist


Question 1:

Is the CFO / finance division playing a crucial role in technology innovation?


0%

10%

20%

30%

40%

50%

Strongly Agree Slightly Agree Neither Slightly Disagree Strongly Disagree

Global EMEA MEA Americas APAC

When asked whether they agree with this statement.

Our CFO is a Strong Evangelist for Technology

Overall strongly agree - 41%

EMEA - higher % agree

APAC is more ambivalent

Source: Longitude Survey results for Empowering Modern Finance – The CFO as Technology Evangelist, commissioned by Oracle and Accenture, March 2014


Our CFO is an Evangelist for Technology

Finance vs. Other Business Executives

When asked whether they agree with this statement

Consensus

67%

Within

finance

function

68%

Outside

finance

function



Cost and ROI are major drivers for cloud and mobile

Improved business agility is most associated with mobile

The value of big data is similar across traits

Timelines of decision making

Emerging Technologies Generate Tangible Value According to Respondents

0 5 10 15 20 25

Mobile

Social

Cloud

Big Data

Timeliness of decision making ROI Time to value Reduce costs Agility



Question 3:

Have you deployed mobile applications around finance?


Applications Already in the Cloud

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

Financial accounting

Planning budgeting &forecasting

Human resource systems

Financial consolidation &reporting Core financials being moved to

cloud (24%)

Only 21% of respondents have moved their business intelligence and analytics to the cloud



Which Applications are You Moving to the Cloud within the Year?

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

Travel & expense

Logistics

Human resource systems

GRC

Procurement

Financial accounting

Financial consolidation & reporting

CRM

Business intelligence & analytics

Planning budgeting & forecasting

Planned for Next Year

Planning and budgeting is the clear leader



Barriers to Adopting Technologies to Reshape Finance

0 5 10 15 20 25 30 35 40

Lack of senior mgmt support

Ability to transform uncertainty

Staff capacity to change

Investment required

Legacy IT complexity

Uncertainty over benefits

Security concerns

Uncertainty on ROI

Focused on higher priorities

Lack of internal skills

Integration risks

EMEA Global

Risks associated with system and technology integration especially in EMEA- 57%

Change management is a key theme

No lack of senior management support



Modern Finance Delivers Insight and Value to the Business



Finance Underrates Its Performance

A. Finance allows for automated alerts regarding potential GRC-related issues in the business.

B. Finance allows for dynamic financial planning and forecasting, based on near real-time business data.

C. Finance proactively analyzes the links between various key performance indicators, to improve operational performance.

D. Finance helps facilitate scenario planning and / or modeling, using live business data to underpin this.

E. Finance provides business unit leaders with a daily up to date view of how actual business performance is matching up against budgets.

F. Finance supplies real-time information to support executive decision-making.


0 10 20 30 40 50

F

E

D

C

B

A

Below Expectations

Finance Non Finance


How Timely is Your Insight Delivery?

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

More than 1 month

Monthly

Never more than 7 days old

Never more than 1 day old

Up to the minute Improvement compared to earlier studies

The data is delivered more timely but there is still room for improvement



Question 3:

Do you plan to move finance processes to the cloud?

A. In next 12 months B. Next 2 years C. Never


How Frequently Do You Plan and Forecast?

No event based planning or forecasting

Majority plan on a quarterly basis and forecast half yearly

Planning

Annually

11%

Ongoing / Rolling

9%

Monthly

26%

Quarterly

30%

Half yearly

24%

Forecasting

Annually

9%

Ongoing / Rolling

15%

Monthly

22%

Quarterly

21%

Half yearly

33%



Modern Finance Acts as a Service-Oriented Strategic Business Partner



Performance Perception on Key Finance Function Deliverables

0% 10% 20% 30% 40%

Manage and control governance, risk & compliance issues

Analyze data to uncover trends & forecast future performance

Plan & budget accurately

Provide timely & relevant finance data

Collaborate with other department

Finance Non-Finance

There is a performance gap perception on the “excellence” of finance’s deliverables

The business expects more from Finance and the CFO – especially in higher-growth companies



Modern Finance Enables Maximum Operational Productivity and Efficiency



How Many Disparate Financial Systems are Used?

GRC

Above 20

10%

1

20%

11 - 20

15%

6 - 10

20%

2 - 5

35%

Financial Reporting

Above 20

11%

1

16%

11 - 20

18%

6 - 10

28%

2 - 5

27%

Planning & Budgeting

Above 20

9%

1

28%

11 - 20

11%

6 - 10

23%

2 - 5

29%

Financial Systems

Above 20

8%

1

19%

11 - 20

17%

6 - 10

24%

2 - 5

32%

Reporting has the most disparate systems

Over 50% of companies have more than 6 financial systems

More companies have a single budgeting system



Increase in Analyst and Treasury Personnel

Skill set focused on being a partner to the business

Staffing Trends Over the Last Two Years

0

10

20

30

40

50

60

70

Clerks Systems staff Internal audit Mgmt accountants Treasury Analysts

Increase Same Decrease



Future Staffing Trend

Growth stronger than decline

Size of Finance Function

Decrease

11%

Increase

34%

Same

55%



Almost 60% agree

<20% disagree

Finance Processes Remain Predominately Manual and Paper-Based

Manual Processes

Disagree

5%

Strongly Agree

28%

Slightly Disagree

13%

Neither

23%

Slightly Agree

31%



Question 4:

If you have plans to restructure the skills in you finance department will new mobile & social technologies change the way you structure and run Finance processes?


Top Priorities for Finance

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Improve financial close

Improve planning and forecasting

Enhance risk

Improve transactional efficiency

Improve analytics

Reduce cost of finance

Improve collaboration

Increase flexibility

Increase speed of response

Restructure finance skill set



Key Implications: Moving Forward




Key Implications

Insights and Value

• Common finance language

• Real-time data that matters

Strategic Business Partner

• Embed finance staff

Productivity

• Outsource and automate • Integrated business service

Technology

• Identify where cloud can make immediate impact


Questions & Answers

dee houchen - oracle

Economy & Finance

oracle andor

oracle corporation

empowering modern finance

modern financethe modern

cfo finance division

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technology innovation