© 2008 Eventure Events. All rights reserved.

Technology in the Businessof Finance

Jacquie Cleveland

Huguette Pothier

NB Power

New Brunswick

Presentation Objectives

• To share with you how Information Systems and Finance work together to benefit the NB Power Group

• To share our lessons learned

Statistics(as of Sept 2, 2008)

Number of employees 2,500

Number of generating stations (owned) 16

Installed capacity 3,959 MW

Fuel Nuclear, Oil, Coal, Gas, Hydro, Diesel

Direct & indirect customers Over 370,000

Transmission lines 6,780 km

Export capacity 2,677 MW

Import capacity 1,980 MW

Primary distribution wires 20,351 km

Number of poles 525,000

Variability in Operating Earnings

• Major drivers

– hydro generation

– nuclear generation

– fuel prices (heavy fuel oil, natural gas, coal)

– out-of-province margins

– exchange rates

– demand forecasting

NB Power Group

Management Model

The Hackett Group says…

• World Class Financial Organizations outperform peers in both effectiveness and efficiency

• The gap between peer group & top performers represents $6.2M per $1B of revenue

• Top performers spend 40% less time collecting and compiling vs. analyzing data

• Top performers have 54% less Finance FTEs

The Hackett Group says…

• World class companies are widening their cost advantage through:

– Process simplification and standardization

– Global process sourcing

– Leveraging “emerging” technologies

Technology in Finance

• Work Streams– Financial Processes

– Financial Systems Center of Expertise

– SAP and Other Information Security

– SAP and Financial Systems Education

– International Finance Reporting Standards (IFRS)

– Finance/Information Technology Governance

– Self Service and Electronic Information Integration

– SAP Business BI

– SAP Upgrade – Functional

Financial Processes

Drivers:– Standardized processes across Companies– leveraging technology to streamline processes– Expect 50% employee turnover in the next 10 years

Current State:– Common functions/processes identified– Record and Report largely complete– Focus on planning/budgeting/forecasting (BPC)

Challenge: – verbal culture, siloed processes, changing priorities,

modified systems

Financial Systems Center of Expertise

Drivers:– Increased understanding of SAP– Well-documented end to end processes/procedures– Improved knowledge on how to use the tools– Central access point to information– Published point of contacts for expertise– Published information for learning opportunities– Sustainment processes assured

Current State:– Finance COE organization formed (Feb., 2007)– Growing recognition for enterprise-wide approach

Challenges– resistance to standards, siloed priorities

SAP and Other Information Security

Drivers:– Segregation of duties (SOD) potential conflicts

identified through Virsa

– Effectiveness of existing controls/approvals

– Separation of information by Company

Current State:– Established problem

Challenges:– not a top priority

SAP and Financial Systems Education

Drivers:– Needs assessment in 2007 identified this as a priority– HR Strategy for self-directed learning– Personal learning plans with HR drove Needs

Assessment Current State:

– Learning opportunities listed & maintained– Tips & tricks active– Recognition for same need at enterprise level

Challenges:– Not a top priority, customizations in SAP

International Finance Reporting Standards

Disclosures of Financial Statements

Finance/Information Technology Governance

Drivers:– Spending priorities across Finance – Work requests multiple and conflicting– Focus on short-term fixes– Spending priorities across Companies

Current State:– Finance/IT Governance Committee in place for 3

years– Spending priorities clear in Finance

Challenges:– Effective committee structure

Self Service and Electronic Information Integration

Driver:– Right business information to the right people at the

right time to enable more effective business decisions (vision)

– Improve trust/access to information

Current State:– Accepted priority across all Companies– Multiple projects to address problem

Challenge:– Product loyalty (multiple systems), data management,

multiple priorities

SAP Business BI

Drivers:– Quality & accessibility of key information an enterprise

concern– Three existing data repositories (BI, BW, DW)– Consistency of information (regulatory reporting)

Current State:– BI Strategy formed– Current initiatives in Finance to improve quality &

definition of data.Challenges:

– Implementation of strategy, technology vs. business priorities

SAP Upgrade – Finance Functional

Drivers:– Continued focus on processes– IFRS– Changing needs for controls– Reporting requirements– Need to expand functionality (e.g. fast closing)

Current State:– Project identified – budget established

Challenge: – scope definition

Lessons Learned

• Develop a governance model and processes to provide a strong relationship between Finance and Information Systems

• Work with Information Systems to aid in finding just-in-time IT solutions for Finance, in anticipation of challenges as well as opportunities

• Support and enhance current processes while using technology to help you transform Finance’s capabilities

© 2008 Eventure Events. All rights reserved.

Jacquie Cleveland Director

Enterprise Finance Systems and Strategy

NB Power

jcleveland@nbpower.com