demystifying cost and implementation challenges with adaptive insights

1© 2015 Adaptive Insights | Confidential & Proprietary

T H E G L O B A L L E A D E R I N C L O U D B I & C P M

Demystifying Cost and Implementation Challenges with Adaptive Insights


Critical risks & challenges to FP&A modernization

Cloud can mitigate these risks and challenges

Customer success stories

Agenda


Current FP&A Pain PointsNeed for FP&A Modernization is Clear

• Takes too long• Labor intensive • Inflexible process• High costs

• Significant time spent on consolidating, validating, and reconciling data

• Significant manual effort to execute the FP&A process

No standard process

• No one single source of data• Time and effort spent reviewing and

updating multiple spreadsheets, reconciling multiple versions of plans

Information silos,

spreadsheet hell

• Significant IT interventional required to maintain legacy on premise system

• Significant IT effort on building reports and ad-hoc report requests

Significant reliance on IT

• Significant levels of concerns around data integrity and longer cycle

• Limited ability for finance and business managers to track performance again plan

Limited visibility into

business


KEY CHALLENGES

Risks and Challenges to FP&A Modernization

• Legacy FP&A platforms are expensive, implementation costs tend to be very high

• Additional costs to upgrade, enhance and maintain on premise platforms

Costly and resource intensive

• Long implementation cycle times, even upgrades to existing legacy platforms, can take months to plan and deploy

• Precious business and IT resources tied up in these projects

Long implementation

cycle times

• Many operational and finance users, fail to use the platform, because of legacy UI, and default back to excel only mode

• Limited collaboration between finance and business users

Low adoption

• Weak ROI for traditional on premise FP&A modernization

• Challenges in securing executive sponsorship


Project Risks Associated with FP&A Modernization

“What do you see as the greatest potential project risks (FP&A modernization)?”

Source: BPM Pulse Survey Results, December 2014

No real risks (do not select any other in list)

Lack of end user acceptance/buy-in, low usage

Selecting wrong vendor

System doesn't deliver on its promises

Project stalls and never gets completed

Missed target dates

Budget overruns related to technology purchase

Budget overruns related to services

15%

39%

39%

46%

23%

46%

39%

46%

Risk Themes

Cost & resource intensive

Long implementation

cycles

Adoption and usability issues


Leverage Cloud to Address Costs and Implementation Challenges

Faster time to market

Usability and Adoption

Lower costsCostly and resource intensive

KEY CHALLENGES & RISKS….

Long implementation cycle times

Low adoption

….MITIGATED BY CLOUD


Cloud Lowers Total Cost of Ownership

Software Licenses 9%

Hardware

IT Personnel

Maintenance

Training

Customization & Implementation

68% Subscription Fee

Customization Implementation& Training

On-Premise Software Cloud Computing

43%

26%

14%

7%

1%

32%TCO

TCO

Source: Yankee Group DecisionNote Technology Analysis

“Customers can spend up to four times the cost of their software license per year to own and manage their applications.”

– Gartner “The End of Software”

“Cloud computing yields substantial economies of scale and skill, and lowers total cost of ownership (TCO).”

– The Hurwitz Group “The Compelling TCO Case for Cloud

Computing”

77% less than On-Premise


TRANSFORMATION DRIVER CAPABILITY VALUE

Increased Self-Service, Usability and Mobility

• Self-service that actually works• Significant change to UI for users and

managers• Access from devices and integration

with Excel

• Improved usability• Improved productivity• Aligns with mobility shift in

workplace

Platform Outsourcing • Minimizes investments in technology stack

• Reduces barriers to implementation & scalability

• Lower capital expenditure

• Lower TCO and lower maintenance

• Faster implementation

Scalability & Flexibility • Globally native configuration• Easier to replicate standard model to

new geographies/BUs

• Quicker configuration• Consistent implementation• Easier to standardize delivery;

yet flexible to configure

Innovation • Forced innovation every 90-120 days• No baggage of the legacy system to

carry forward

• Finance and business leverages the latest technology to budget, plan and report

Visibility & Reporting • Enhanced reporting, dashboards with role based data views, next best actions for end-users etc.

• Accountability for end-to-end data

• Enhanced usability increases finance and business users ability to track performance against plan in real time

Transformational Capabilities Offered by the Cloud Model


Cloud Enabled FP&A Modernization Improves Agility and Reduces Costs

Access from anywhere

Business ownership

Easy to use

Easy product updates

Quick implementation

Lower costs

86%

50%

82%

79%

75%

64%

“What benefits have you achieved from cloud based performance management (FP&A) system?”

Source: BPM Pulse Survey Results, December 2014

Value Buckets

Lower costs


Usability and adoption


Leverage Adaptive to Mitigate Cost Concerns and Risks


Usability & Adoption

Lower cost

Proven Customer Success and ROI


Adaptive Reduced Costs and Implementation Cycles Significantly

Legacy on-Premise FP&A

Adaptive Cloud

100%

25%

TCO (Indexed)


Adaptive Cloud*

36-48

10-12

Implementation Cycle Times (Weeks)

70-85% reduction

75% + reduction

* High level estimate, would vary based on the scope of the implementation project


Adaptive Delivers Transformational Benefits to Customers


Adaptive Cloud

100%

5 %

Budgeting and Planning Cycle (Indexed)

Customers have realized transformational benefits using cloud, enabling them to execute faster, reduce time and effort and cut costs

95% faster budgeting &

planning process


Adaptive Cloud

100%

50%

Consolidation Cycle Times (Indexed)

50% quicker financial

consolidation


Reduced costs

Eliminate HW and SW costs

Reduced staffing requirements

Avoid additional hires

Improved efficiency &

effectiveness

Enhanced finance & manager

productivity

Reduced budgeting cycle

times

Reduced time on audit cycle times

Enhanced Visibility

Improved visibility for managers

Increased trust in data quality

Reduced time spent on

reconciliations

Benefits Achieved by Adaptive’s Customers

Source: Nucleus Research


Adaptive’s Usability Helped Boston Scientific Scale Up

10 users1 location• St Paul, MN

60 users3 locations• Puerto Rico• Ireland

300 users6 locations• Costa Rica• California• Indiana

380+ users11 instances• SCM• HCM

2012 2013 2014+2011

Phased deployment Business user led Grew as business required


Overview• NYSE: BSX• Revenue: $7 Billion• Employees: 24,000• Mfg. Sites: 12• Countries: 100+

Challenges• Running Oracle Hyperion,

costly to upgrade and extend

• IT intensive and lack of user control

• No standard process

Requirements• Consistent financial

planning across different plant operations

• Implement a reliable and trusted source of information

Solutions• Chose Adaptive for

forecasting, planning and accounting across multiple sites

Boston Scientific Leveraged Adaptive to Reduce Costs

Value & Risk Mitigation• We achieved a better

budget process at a fraction of the cost compared to the millions of dollars and years of investment spent maintaining our on premise solution”, Boston Scientific

• Increased productivity and reduction in staffing requirements

• Greater flexibility in the process, models and structures


Overview• NYSE: GTIV• Revenue: $1.7 Billion• Employees: 14,600• Locations: 400

Challenges Failed Oracle project Inflexible system Reliant on IT Too difficult for end users 250+ spreadsheets for

each branch

Requirements Easy for end users End-user reporting No IT – Finance owns Fast Implementation

Solutions• Deployed Adaptive

Planning from Adaptive Insights for its 500+ users serving customers across 310 locations

• Deployment grew from a divisional level to become the corporate standard

Leveraged Adaptive to Mitigate Implementation Risk and Drive Usability

Value & Risk Mitigation• “With Adaptive Insights’

simple, easy to generate charts and graphs, we’ve realized a financial reporting vision that was never obtainable before; The budget process is much simpler, more interactive, and takes a lot less time”, Gentiva

• Adaptive’s budgeting process has reduced workloads by more than two months for the finance team


2,500 Customers Worldwide

MediaFinancial Services

Non-Profit / Edu

Consumer

Manufacturing

Other

HealthcareSoftware

Biggest Brands & Hottest Companies Choose Adaptive


Summary Payback is an excellent measure of risk; our customers have

achieved rapid payback and compelling ROIs

Build the business case, using inputs from broad range of

stakeholders, incorporate direct and in-direct benefits

Use correction factors (scenarios) to build a credible business

case

Focus on human factors to ensure maximized ROI, secure

executive sponsorship


The Adaptive Suite

Unified BI & CPMBuilt for the cloudPowerful & flexible Intuitive experienceContinuous innovation

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Maneesh Chhabra Director, Industry [email protected]

Priya RajanSr. Marketing [email protected]

Steve GraessleSenior Solutions [email protected]

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