SAP Innovation Awards 2018 Entry Pitch Deck

PwCEnterprise Insights

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PwC

“Enterprise Insights powered by SAP HANA has enabled our clients - from the Office of the CFO through to line management - to draw meaningful information to make informed decisions in line with their business strategy. This solution connects data across configuration, security and transactions in ways that were not previously possible.”

- Bob Clark, Enterprise Systems Solutions Leader, PwC

Enterprise Insights provides CFOs, controllers and audit and compliance professionals with a holistic, universal view of risk and compliance analytics across their business and digitally enabled IT environments. It provides insight into an organization’s data to improve efficiency, lower costs and reduce and quantify risk through information management, purpose-built analytics and continuous monitoring capabilities. We lower the cost of compliance through analytics, automation and workflow.

Enterprise Insights

CFOs, controllers and compliance professionals can get risk and compliance analytics across multiple ERP and business solutions on a real-time, cloud-based solution that leverages SAP HANA technologies. Enterprise Insights is based in the "in memory" processing power of SAP HANA which supports the transformation of database management, data management and analytic intelligence. PwC's analytic accelerators leverage SAP HANA Calc Views and data is securely transferred to SAP HANA through SAP data extraction tools.

Insights determines financial impact of segregation of duties violations across three ERP instances with potential savings of over $1 Mil in potential fees and labor associated with audit.

Insights analyzes GL postings to help remediate material weakness

Insights can detect$ millions of unbalanced journal entries entered

United States Professional Services

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Participant Information

PwC

Enterprise Insights

Elizabeth McNichol, Principal

PwC’s US Enterprise Systems Solutions practice combines cross-sector, cross-application experience to help clients mitigate risk and improve their enterprise systems. We solve high-risk enterprise systems challenges to help our clients gain value from their technologies, processes and data to improve compliance and business performance.

www.pwc.com

Professional Services

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Solution OverviewCFOs, controllers and audit and compliance professionals have not had a holistic, universal view of risk and compliance across their business and digitally enabled IT environments. Enterprise Insights provides a lens into an organization’s data to improve efficiency, lower costs and reduce and quantify risk through information management, purpose-built analytics and continuous monitoring capabilities. Through deploying Enterprise Insights, our clients have lowered the cost of compliance through analytics, automation and workflow.

Enterprise Insights is based in the "in memory" processing power of SAP HANA which supports the transformation of database management, data management and analytic intelligence. PwC's analytic accelerators leverage SAP HANA Calc Views and data is securely transferred to SAP HANA through SAP data extraction tools. Enterprise Insights provides an action framework that creates an accountability model within the organization, facilitating ease of end user data consumption and decision support.

The power of SAP HANA and PwC’s analytics accelerators has transformed how our clients perform their compliance and risk activities, allowing them to reach previously unachievable automation standards.

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Solution Details

Enterprise Insights Analytics powered by SAP HANA• Cloud based risk analytics platform, with direct SAP data acquisition from client

systems to the SAP HANA database• Powerful PwC analytic accelerators built using Calc Views, including dashboards

and outputs that are focused on specific business, control, and compliance needs. Through developed content packages, clients get the benefit of countless control optimization and process improvement engagements performed for clients in their industry.

• Visual analytics provide interactive drill-down capabilities to allow clients to pinpoint areas of risk and potential improvement. Client customizable report templates allow Calc View outputs to directly populate client workpapers.

• Seamless integration between analytics, controls, and monitoring processes. • Process enablement and simplification include process and controls repository,

workflow and document management and issue tracking tailored to the client's organization.

• Open connectivity to other SAP systems and non-SAP systems

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Benefits

• Fully automated our clients compliance control testing through HANA based analytics, resulting in significant cost reduction related to testing and control performance

• Transactional analysis of specific risk areas allows for identification of impact of issues • Data analytics related to the major business cycles and industry verticals have identified areas of operational improvement, increases in

margin, cost savings and cash leakage• Big data financial analytics capabilities have resulted in allowing our clients to mitigate major audit issues, including material weaknesses

Business value:

Results delivered:

Human empowerment:

• Insights detected $35M of duplicate payments that was leaked over 3 years• Insights detected $400M of backed dated journals• Insights detected $5M of asset depreciation not recorded correctly• Insights identified 70,000 invoices being put on hold incorrectly • Insights detected $2M of unbalanced journal entries entered• Insights analyzed 155M GL postings to help remediate material weakness

• Ability to shift employee focus and time from manual execution to value generating activities• Reduction in costly and time consuming human error and attempted fraud• Process improvement and simplification, along with actionable data supports proactive identification of potential issues and improves

leaderships ability to make decisions

Results delivered:• Insights determined financial impact of segregation of duties violations across three ERE' instances saving over $1 Mil in potential

fees and labor associated with audit. • Insights detected 500+ users that could update their own salaries• Insights prevented a client from receiving a significant deficiency around user access.

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Architecture

Gain insight into how the system is setup and provides a view of the overall risk profile of the environment.

Report and monitor system configurations across applications for leading practicesand control.

Report and monitor security configurations across applications.

Insights and analytics to report & monitor transaction processing to identify anomalies, issues, and fraud.

Transaction Management & Monitoring

Workflow & Issue Management

Discovery & Diagnostic

Configuration Management Security Insights

Facilitate how issuesare reported,monitored and remediated to drive accountabilityand visibility.

Data Integration

Enterprise Insights

Client Data Sources

SAP HANA Database

Calc Views / Data Output

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Illustration

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Quote

“Enterprise Insights powered by SAP HANA has enabled our clients - from the Office of the CFO through to line management - to draw meaningful information to make informed decisions in line with their business strategy. This solution connects data across configuration, security and transactions in ways that were not previously possible. Using this data and powerful, integrated analytics at speeds powered by SAP HANA, our clients are empowered to make decisions that can prevent and detect issues, as well as leverage workflow to help resolve risks and business challenges.”

- Bob Clark, Principal, Enterprise Systems Solutions Leader, PwC

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Deployment detailsPwC has deployed Enterprise Insights at 13 customers in 2018. Go-live client examples include:

Impact of Enterprise InsightsClient Scenario• Enterprise Insights was deployed in the MS Azure Cloud with two HANA databases to automate all

configuration control tests across 5 ERP instances, covering the entire globe. • Data analytics allowed client to completely automate control tests, including removal of manual steps• Exception results are routed to control owners, where analysis and actions can be performed directly in

Enterprise Insights, further reducing business time requirements• Enterprise Insights is the foundation for the clients risk based analytics program and will be the primary

operational and compliance risk analytics platform for the clients upcoming SAP S4 transformation

• Deployed Enterprise Insights in the MS Azure Cloud with one HANA database to evaluate and categorize a full years GL posting

• Output allowed client to declutter the data, organize it into known and unknown categories, and focus on priorities

• Identified 100% of journal entries that were not controlled through automation• Provided the foundation for an action plan, including redesign of financial posting process, controls and

application security• Material Weakness fully remediated through Enterprise Insights and provides the foundation for

continuously monitoring in the future

• Enterprise Insights was deployed in the MS Azure Cloud with two HANA databases to evaluate over 20 transactional segregation of duties conflicts, across 3 SAP instances, 4 continents, 10 companies and more than 25 company codes

• Evaluation was one of the largest data analytics projects at this client, resulting in impact analysis of all issues and a positive external audit opinion

• Client has utilized Enterprise Insights to evaluate their data regularly, over the past 2 years

Casual Shoe Manufacturer SAP Journal Entries were partially controlled through a park and post process, with manual supporting controls. Manual controls failed, and large data volumes prevented appropriate analysis, resulting in a material weakness.

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Healthcare Manufacturing CompanyDuring a period in which Segregation of Duties issues were identified, external auditors required the company to quantify the impact of potential exploitation. The data volumes and complexity of the analysis can not be performed by the clients existing systems.

Fortune 50 Consumer Business CompanyTechnically advanced client has attempted to automate ERP configuration control testing, however complexity of the tests require significant manual intervention, creating added cost and inefficiency in an “automated” solution.

Typical MS Azure cloud deployments of Enterprise Insights include the following specifications:● MS Azure L16S and L32S instances (128GB and 256GB of ram)● Intel Xeon E5-2698B v3 Processor● Red Hat Linux for SAP HANA 7.4

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Additional information

Video: Enterprise Insights Overview

Video: Enterprise Insights Segregation of Duties

Video: Enterprise Insights in Action: SAP Analytics and Continuous Controls Monitoring

Video: Enterprise Insights in Action - Monitoring Global Configuration

Video: General Ledger Posting Demo