The future of Analytics in Finance BA4All Insights Session September 16th, 2014 François De Witte – Guy Van der Sande

AGENDA

1. USG People & USG Professionals

2. Why BA is important

3. What should you take into account

4. Keys to success

5. The journey of data analysis

6. Key challenges - general

7. Challenges for a CFO: case studies

8. Conclusions

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1. USG People Group

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2.3 billion Eur

Main countries of operation:

Benelux, France, Germany

>40 years of experience

N°2 in the Netherlands and Belgium

90.000 flex workers

at work every day

MEMBERS

Quoted on Euronext Amsterdam

USG Professionals

A strong foundation with years of experience

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We offer multiple solutions

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Project sourcing & interim management ICT-consultancy

In- & Outsourcing Search & selection

2. Why BA is important The pressures on organisations are at a point where analytics has

evolved from a business initiative to a BUSINESS IMPERATIVE.

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Why BA is important

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Source: ”The intelligent Finance Organisation” survey of KPMG Bermuda 2014

Why BA is important

Financial activities covered: survey of 140 finance executives

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Source Aberdeen group Survey: “Speeding up and cashing with financial analytics” – June 2014

Why BA is important

[Big] Data, [Big] Money ?

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• Customer behavior

• Growth and innovation

• Future customer lifetime values

• Efficiency of execution

• Meet compliance and regulations

3. What should you take into account

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Consistent

Comparable – reusable

Connected

Single version of the truth

4. Keys to success

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Keys to success From descriptive to prescriptive

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5. The journey of data analysis

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The journey of data analysis

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Training

Regulation

Management Partner

Search &

Selection

BICC

OR

GA

NIS

AT

ION

C

ON

TE

NT

Business

requirements

Techn. setup

Governance

Data source

analysis

Data source

integration

Development

Review

Training

Regulation

Management Partner

Search &

Selection

BICC

OR

GA

NIS

AT

ION

C

ON

TE

NT

Business

requirements

Techn. setup

Governance

Data source

analysis

Data source

integration

Development

Review

6. Key challenges - general

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• Manual processes

• Ignoring data integration fundamentals

• Bringing the information on time

• Unrealistic expectations

• Risk of strategy fragmentation - Silos

• Reconciliation of various systems - different ERPs etc.

• Implement predictive analytics

• How to deal with Big Data?

• Data security - ownership

• Choice between doing it yourself or outsource?

7. Challenges for a CFO: case studies

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• What does the CFO need?

Accurate, relevant and forehanded information,

enabling the CFO to develop his new role:

• be proactive in order to anticipate

• think with the business and challenge the business

• be a true business partner

• Challenges:

• VVV: Variety, volume, velocity (Gartner)

• Unstructured data

• Manual data

• Accuracy of the information

• Have the right information at the right time

Challenges for a CFO - case studies

Cash forecasting

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• Cash forecasting:

Aim to report a company’s future cash availability resulting

from its operating, investment and financing activities

• BI Challenges:

• variety internal and external sources with different

formats

• common interface for data crunching, trend analysis

• integrate historical A/P and A/R data, external sources

and Big Data

• user-friendly dashboards

• Facilitator: use of data providers (internal or external)

Challenges for a CFO - case studies Example: Cash forecasting

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Source: Discover Edge

Challenges for a CFO - case studies Example: Cash forecasting

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Source: Discover Edge

Challenges for a CFO - case studies

DSO and Credit collection

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• DSO monitoring is a crucial factor to optimise working capital

• Different sources: Accounts receivable, credit management,

external sources (Graydon, Van Dijk,

B-information, etc.), credit insurance payment behavior

• Big Data helps to evaluate Credit Risk

• Dashboard is crucial

Challenges for a CFO - case studies Example: DSO and Credit Collection

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Source: Discover Edge

Challenges for a CFO - case studies Example: DSO and Credit Collection

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Source: Discover Edge

Challenges for a CFO - case studies

Bank relationship management

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• Aim CFO: balanced relationship with relationship banks

→ fair allocation of the business wallet

• Challenges:

• Tracking the business allotted to each bank

• Modelling why and when a bank won business,

and why and when not

• Automation data collection

• User friendly format

• How:

• Data mining and analysis

• Focus on discrepancies / variances & explanation

8. Conclusions

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• BA is essential to finance: finance needs BA !!

• Strategic CFO’s care about data integration

• The CFO becomes a potential CIO-ally

• The “single version of truth” and “data governance” are real

challenges

• Efficient BI, processes and technology are facilitators,

but do not replace the job of finance

The new role of finance is to become

« THE BUSINESS PARTNER » with a

strategic view based on analytics

Contact details

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François De Witte

Head of the Competence Center Treasury and Finance USG Finance

professionals

Britselei 80 - 2000 Antwerpen

M +32 (0) 475 56 84 36

E francois.dewitte@ext.usgfinance.be

Twitter @F_DeWitte

Guy van der Sande

Head of the Business Intelligence Competence Center USG ICT Professionals

Britselei 80, 2000 Antwerpen

T +32 (0)3 213 72 57

M +32 (0)476 50 16 26

E guy.vandersande@ext.usgict.be

Twitter @BICC_at_USG