discover the benefits of an integrated financial planning · profitability & costing analysis...

Discover the benefits of an integrated financial planning

Agenda

• Introduction

• Business benefits of an integrated financial planning

• Overview of the SAP planning solutions

• Real-time planning and reporting in a modern finance department

We are Flexso, experts in SAPReliable, innovative, flexible & solution driven

From SAP innovation to business innovation

History

Close to the customer

Facts & figures

• 200 consultants

• 32 million euro

• 20% growth per year

• 5% attrition

• 120 active customers

• Top in Belgium

• 25 countries

• 4500 Cronos consultants

Enterprise management

Business competence centers

Discover the benefits of an integratedfinancial planning

Challenges of finance departments

Increasing complexity of external conditions

Pressure to support global growth

initiatives

Requirement to reduce the cost of finance

Accelerated adoption of technology innovations

Digital work style enabled by networks and mobility

Explosion of Big Data

Benefits of an agile and integrated financial planning

Benefits of an agile and integrated financial planning

Agenda

• What is integrated business planning?

• Why is integrated business planning relevant?

• Financial planning integration

• Foundations

• Use cases: relevance of integrated financial planning

• Conclusion

What is integrated business planning?

• Planning process

• Integration of critical business functions

› Enterprise performance management (finance)

› HR

› Sales & operations

› …

• Improve insight on business process & financial flows

• To maximize financial value

OperationalPlanning

Corporate Strategy

Corporate Performance Management

Integrated Business Planning creates the link between different LOB’s

What is integrated business planning?

FINANCEFinancial Budget & Forecast

Profitability & Costing Analysis

RESOURCESCapital Expenditure planning

Investment planningMaintenance budgetting

SALES & MARKETING

Demand planning

OPERATIONSSupply planning

Production planningMRP

HUMAN CAPITALStrategic Workforce Planning

Talent Management

Cross company interest

Why is integrated business planning relevant?

S&OP HR Finance

General Management

Why is integrated business planning relevant?

Integrated Business Planning features Business benefits

End-to-end view Faster, more informed decision-makingMore effective resource allocation

Clear view on responsibilities & ownership of targets

Increased ownership of targetsRapid commitment to revised plans

Efficient planning Faster planningReduced need for resources to support planning

Effective planning Improved customer satisfaction

Integrating insights from operations to assess financial impact

Today’s focus: Integrated financial planning

• Report on business activities and their profitability

› Financial statements

› Enterprise performance management

› Cost calculation of resources

• Budget: set financial targets

› Model expected outcomes

› Use financial and non-financial drivers

• Financial feasibility of business plan and objectives

› What if? Scenario building

• Manage cash of the organization

Operational

Planning

Corporate Strategy

Corporate Performance Management

FINANCE

RESOURCES

SALES & MARKETING

OPERATIONS

HUMAN CAPITAL

Finance is the beating heart of your organization

Integration

Selling goods / servicesPurchasing & production

Employees

Treasury

Buildings & Equipment

P&L

REVENUE- COGS

GROSS MARGIN- OPEX

RENT

EMPLOYEE COSTS

EBITDA- DEPRECIATION

EBIT- INTREST- TAXES

NET PROFIT

Employees Treasury



Integration = sharing information across departments

Foundation of an integrated financial planning

• Business model:

› Standardized dimensions (semantics)

› Level of detail? For global model vs. specific needs

› Iterations of top-down and bottom-up planning

• Flexibility of model to adapt to changing needs

› Data at lowest possible level (cover all domain specific needs)

› Identify & separate possible change drivers

=> Important exercise to achieve agility & integration

Without an integrated planning solution

Sales and operations planning


Employees

Treasury


With an integrated planning solution

Sales and operations planning


Employees

Treasury


HCM and Finance - Use case SWIFT

SWIFT Business Case

Integration of HCM and Finance


Employees

Treasury


SWIFT Business Case - For labour cost planning

Integration of HCM and Finance

• Labour costs is crucial for OPEX

• Corporate strategy: Right person @ right location

• New strategic initiative:

› Impact on P&L

› Balance supply and demand of the right people

Planning FTE’s => effect on P&L

NEW FTE’S

TOTAL FTE’S

ACTUAL COSTS

EMPLOYMENT COST

ACTUAL FTE’S

New Parameters

STANDARD COST FTE

New strategicinitiative

Changingparameters

(like index change)

HR

Finance(P&L)

Financial Budget and Liquidity Planning -Use case GOB

GOB Business Case

Integration of financial budget & liquidity planning


Employees

Treasury


GOB Business Case

Integration of financial budget & liquidity planning

Planned OPEXPlannend

Governmentallowance

Budget

Cash Planning

€ Time

Planned Loans

Actual cash balance

What-if scenario’s across domains

Advantages of integrated financial planning

• S&OP: impact of increase in demand

• HR: efficient staffing of new initiatives

• Treasury: fund operations and investments

Decision support for strategic initiatives (product/service, investments)

Insight in profitability

Manage profitability

To move towards integrated financial planning

Next steps

Workshops

Planning process

Business model

Agility

Identify key processes

Importance of planning

Importance of integration

Fit-gap analysis

Where are we?

Where do we want to go?

Overview of the different SAP planning solutions

Overview of the different SAP planning solutions

Agenda

• Challenges of existing planning solutions

• Overview of different solutions

• Solution history

• “Fit for purpose” guidance

• Conclusion

Challenges of existing planning solutions:

• Rigid and slow planning and closing process

• Missing simulation features (what-if scenarios)

• Non-integrated, multi-solution corporate planning architecture

(planning silos)

• Missing alignment between budget, forecast and monthly closing

cycles

• Complex and manual reporting integration

SAP Planning – Focus of different solutionsBPC STANDARD ON BW BPC EMBEDDED ON BW (ON HANA)

BPC OPTIMIZED FOR S/4 HANABUSINESS OBJECT CLOUD - PLANNING

SAP Business Planning and Consolidation

• Enterprise performance management tool

• BPC key capabilities:

› Planning

• Budgetting, Forecasting and Long Term Planning

• Allocation and calculation mechanism

› Reporting

• Management reporting & variance analysis

› Financial consolidation & IFRS

• Intracompany eliminations and elimination of investments

• Automated financial statements

SAP Business Objects Cloud

https://www.youtube.com/watch?v=tyjLiHplfBE

Planning solutions - history

BPC 7.0 MS

BPC 7.5 NW

BPC 7.5 MS BPC 10.1 MS

BPC 10.0 NW

2007 2010 2012 2015

BPC 10.0 MS

BPC 10.1 Standard Model

BPC 10.1 Embedded Model

BW IP BW IP/PAK BW IP/PAK in BW 7.5

2017

MS = MicrosoftNW = Netweaver (on BW)IP = Integrated PlanningPAK = Planning Application Kit

BPC solution comparison

Input & reporting flexibility

vs. Standardized input & analytical

capabilities

Workflow & collaboration

Integration

Calculations andallocations

Planning & reporting user

interface

Administration

Performance

Simplified LOB data administration

vs. Combination of IT Central Models

& LOB Models

Reporting acceleration

vs. Full HANA integration

Guided workflow

vs. Ad-Hoc User interaction

Solitary LOB environment

vs. Integrated solution

Simplified & Flexible

vs. Standardized & performant

BPC Standard

• Planning and reporting user interface

› EPM Excel add-in: high level of excel integration

• Administration

› Simplified datamodel administration

› Full business ownership on masterdata maintenance and security

› Standard user-interface for file upload and calculation execution

• Performance

› Direct reporting advantages of HANA for reporting

› Logic is not pushed down to HANA

› Client and Network sensitive

BPC Standard

• Workflow and Collaboration

› Business Process Flows to streamline the process

› Automatic emails

• Integration

› Standalone LOB environment

› Master- and transaction data integration requires data preparation and causes data

duplication

• Calculations

› Flexibility on maintenance of scripts and dimension member formulas

› Limitation of scripts and more complex calculations requires IT support

BPC Embedded


› Analysis for office Excel add-in: intuitive interface with “pivot like” analytical capabilities

• Administration

› Integrated central datamodel that can be enhanced with local dimensions, local models

and local queries

› Integrated masterdata administration enhanced with local hierarchies

• Performance

› Full HANA acceleration for reporting

› All native planning functions are pushed down to HANA

BPC Embedded


› Business Process Flows to streamline the process

› Automatic emails

• Integration

› Fully integrated with the BW reporting platform

› Automatic master- and transaction data integration without duplication

• Calculations

› Setup of planning functions with support of IT

› Broad scope of “out of the box” planning functions

BPC optimized for S4 HANA

• Same technology as BPC embedded

• Integration difference

› Real time ERP integration of actuals and masterdata

• Administration

› Standard SAP content delivered

BO Cloud - Planning


› Web based: intuitive analytical capabilities and visualisation options and web grid

planning

› Saas Solution: is not requiring any local installation

• Administration

› Simplified key user datamodeling

• Performance

› Using the HANA Cloud Platform

BO Cloud - Planning


› Out of the box collaboration platform with agenda integration and notification

(Mobile)

• Integration

› Data transfer from SAP BW, SAP BPC standard, S4 HANA, SF, C4C,..

› Model integration with SAP BPC Standard

• Calculations

› Simplified calculation and allocation options

Solution guidance

• Solution pre-study:

› Help your organisation in finding the optimal solution

› Combine business knowledge and IT expertise

› Use the information from integration workshops to align the solutions with a global

data model

› Customer references:

• SWIFT

• Bridgestone

How real-time planning and reporting can tackle the challenges of the modern finance

department

Agenda

• S/4 Hana?

› Embedded analytics & planning

› BPC?

• Demo:

› Real-time planning scenario’s

› Real-time reporting scenario’s

› Simulation scenario’s

• Conclusion

S/4 HANA is the next generation SAP ERP solution

S/4 HANA for Finance?

Universal Journal

Simplification Performance User Interface

HANA Fiori

Embedded analytics & planning

Datawarehouse scenarios for tactical & strategical reporting

Planning on SAP & non-SAP data

Operational Reporting on SAP data (Embedded analytics)

Planning on SAP data (BPC optimized for S/4 HANA)

BPC optimized for S/4 HANA

Real Time

Integrated

Agile

Standard Content

• S/4HANA includes templates that provide support for:

• Cost Center Planning

• Internal Order Planning

• Project Planning

• Profit Center Planning

• Cost of Sales Planning

• P&L Planning

• Market Segment Planning

• Liquidity Planning

• Balance Sheet Planning

DEMOBike production company

Demo 1: Real-time planning scenario

Start of budget processB

PC

FIO

RI

Missing costcenter

for web sales

Costcentercreation

Complete Budget

Accelerates planning process

Bike production company: Scenario 1

Integration with S&OP

Integration with HR

Input OPEX budget

Integrates planning process

Demo 1: key advantages

• Instant availability of masterdata (<-> classic BW planning approach)

• Make use of new user interface

› Analysis for Office for Excel based planning

› Fiori apps for masterdata maintenance

• Business process flow guides the user throughout the planning process

Streamlines & accelerates planning process

Demo 2: Real-time reporting scenarioB

PC

FIO

RI

MonthlyClosing: postingof payroll cost

Run overhead allocation

Report Actualvs. Budget formanufacturing

costcenters

Accelerates reporting process

Use analyticalfiori app to

check manufacturing

costcenters



• Instant availability of transactional data (<-> classic BW reporting

approach)


› Analysis for Office for Excel for ad-hoc analysis

› Visualisation via analytical fiori apps

Streamlines & accelerates reporting process

Demo 3: Simulation scenario’s

Input of office / building

rent

BP

C Review rent drivers (m2

used)

Allocatedoffice / building

rent

Support “What If” scenario’s

Exte

rnal

Import of cost drivers



• Ability to respond to what-if scenarios

› Use up-to-date actual/planning information

› Technology platform supports big data volumes


› Analysis for Office for Excel for ad-hoc analysis

› Visualisation via analytical fiori apps

Supports ad-hoc simulation

Conclusion

• BPC Optimized S/4 HANA can offer:

› Real time planning and reporting

› Simulations capabilities

› Standard content available

› Agile solution that can evolve along the needs

Key take aways on the benefits of anintegrated financial planning

Key succes factors for integrated financial planning

Conclusion

Cross-domain corporate culture

Right solution at the right place

Business and IT as partners

All domains canbenefit from

integrated planning

“Fit for pupose” planning solution

Business flexibility and ownership on a solid innovative

platform.

discover the benefits of an integrated financial planning · profitability & costing analysis...

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