transforming finance to drive intelligent and accessible reporting & analysis

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#CFOD13Transforming Finance to Drive Intelligent and Accessible Reporting & Analysis

Bill Guilmart, Vice President, Solution Management

Karuna Mukherjea, Senior Director, Product Marketing



#CFOD13

We want to take you from here ….



#CFOD13

… to here



#CFOD13

Your Business Environment Is Constantly Changing

How deeply do these changes impact your organization

Increasing globalization

Pressure on margins

New competition

Increased focus on risk

Regulation is here to stay

Volatility in markets, commodity prices and stocks



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… And Current Technologies And Processes Can’t Handle The Volume, Velocity And Variety Of All Your Finance Data

Physical Limits



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You Need To Take Control Of A Fast-growing Volume Of Many Types Of Data ...

Worldwide digital content will double in 18 months, and every 18 months thereafter.

IDC

VELOCITY

In 2005, mankind created

150 Exabyte of information. In 2011, 1,200 Exabyte’s was created.

The Economist

VOLUME VARIETY80% of enterprise data will be unstructured spanning traditional and non traditional sources.

Gartner

ERP Data

Cost

s

Profitability

Speed

Velocity

Transactions

Op

port

un

itie

s

Revenues

Reports

Em

ails

Planning

Analysis

Mobile

Perio

d-e

nd

closin

g



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CFOs Are Struggling With ...

Inability to access detailed financial information across

all business dimensionsSo we cannot identify new opportunities to optimize our financial

performance

Time-consuming financial analysis and reporting processes with high volumes of

dataSo we have delays in

the completion of our period-end

closings

Financial decisions based on incomplete, inaccurate

and often outdated information

So we might miss our financial objectives

and not manage risk and compliance issues

properly



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Top Business Priorities for the CFOFinance executives prioritize closer collaboration with the business

Over the next 2 years, priorities for finance are:

Control costs and improve profitability

Support and fund growth objectives

Improve finance efficiency/reduce cost of finance

76% of Finance executives believe at least half their time should be on high-value planning and analytic activities, though only 55% achieve this

76% want Finance to be more involved working with the business during the next two years



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Performance Management Projects Highest Priority On CFOs Initiatives List For Business Analytics

Statistical analysis

Predicitive modeling

Data warehouse

Financial consolidation and reporting

Customer and product profitability

Performance measurement, scorecard, and dashboard

Planning, budgeting, and forecasting

Components to be updated in 2013

Percentage of respondents

Source: Gartner. John Van Decker. CFOs See the Importance of Business Analytics Improvement, Gartner Study Finds. June 2012.

Statistical analysis

Predicitive modeling

Data warehouse

Customer and product profitability

Financial consolidation and reporting

Planning, budgeting, and forecasting

Performance measurement, scorecard, and dashboard

0% 20%40%60%80%

Components to be updated in 2012

Percentage of respondents



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Evolving Role of the Finance Departments

Producing Reports

Financial Governance

Cost Cutting

Distributing Information

Managing Plans

Supporting the business

Strategic Cost Analysis

Predictive Planning

Define Growth Strategies

Drive Innovation

Trusted Strategic Advisor



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Key Technology TrendsFinancial Transformation

MobilityBusiness Analytics

Self service reporting and analysis

Integrated business planning

Travel and expense management

Payment approval

Performance management

Customer Fact Sheet

In-memory Computing

Coping with ‘big data’

Multi-dimensional profitability reporting

Sales and Operation planning – finance to SKU



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The Decision Making Revolution Is NowThe Opportunity With Transform Finance

Enable real-time decisions

Mobilize enterprise information

Increase enterprise productivity

Strategic | Operational | Collaborative



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What Will Technology Enable ?

Enhanced Analytical Insight

Processing of high volumes of data

Broader access to information

Integrated real time reporting

Provide “anytime” “anywhere” flexibility

Predictive quality to data

Bring agility and speed in decision making

Transparency



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“Always On” The Connected CFO !!



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What Represents ‘Best Practice’Increase

organizational alignment and

agility

Help the enterprise make better decisions

that drive profitability

Deliver a faster, more reliable

close to disclose process

• Ensuring everyone understands how they help the organization succeed

• Allocating budgets to initiatives that create the most value and streamlining planning processes

• Instantly sensing changes in KPIs and enabling rapid re-forecasting and easy scenario analysis that helps manage risk and cope with volatile economic conditions

• Delivering faster access to information and more detailed analysis of “big data” for business users

• Understanding and identifying opportunities for cost to serve reduction

• Providing decision makers with reliable data on the true profitability of products, services and customers

• Reducing cycle time by driving efficiency with automation and standardization

• Increasing confidence in financial reports with high transparency and a detailed audit trail

• Allowing finance teams to analyze the reasons for the numbers rather than just reporting them



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Large Disparity Between Average and Best

Working days to close

annual books

Finance costs as a

percent of revenue

7 best

14.8 average

22 worst

SAP Value Engineering Global Figures

0.4% best

1.2% worst

0.8% average

Day sales outstanding

43 best

52 average

74 worst



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Better PlanningSAP Planning and Consolidation

Increase Boost Expand

Increase agility, plan better and faster with instant insight into all relevant information

Boost productivity by streamlining strategic, financial and operational planning

Engage stakeholders outside of finance in planning activities for greater accuracy and accountability”

What you need

• Business Decision Support

• Providing information, analysis, and metrics

• Execution in current markets



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Profitable GrowthSAP Profitability and Cost Management

Build Reduce Improve

Achieve revenue and profit goals with competitive products

Achieve revenue and profit goals with lower costs and efficient resource allocation

Improve customer satisfaction and retention

What you need

• Revenue growth and preservation from existing and new markets

• Overhead and cost reduction

• Prioritization of investments and resources



#CFOD13

Strategic AlignmentSAP Strategy Management

Communicate Preserve Monitor

Communicate priorities based on strategy and corporate initiatives

Preserve accountability across the enterprise to meet the strategic objectives

Collaborate, monitor, measure and manage performance

What you need

• Framing and/or adapting strategy

• Influencing strategy and operational priorities

• Ensuring initiatives achieve desired business outcomes

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http://imagedirectory.wdf.sap.corp:6085/ImageLibrary/ImageDetailsView?imageId=819a742b-fdc4-4df7-9399-9c9788d1c1ae

http://imagedirectory.wdf.sap.corp:6085/ImageLibrary/ImageDetailsView?imageId=2d015da7-efd9-4f02-abad-52c6efc3b0fe



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Better Quicker Answers For FinanceBreakthrough Innovation With In-memory Computing

With in-memory technology integrated in your business, you’ll see immediate benefits

Gain Real-Time – know it when it happens

Go Deeper – ask any question on any data

Act Broadly – manage large volumes of data

Run Faster – analyze at the speed of thought

Get Flexibility – eliminate pre-fabrication requirements

In-memory computing is a technology that analyses massive quantities of data in local memory so that the results of complex analyses and transactions are available at your fingertips – and business decisions can be executed without delay



#CFOD13

Better Quicker Answers For FinanceBreakthrough Innovation With Mobile Technologies

With mobile technology integrated in your business, you’ll see immediate benefits

Real Time – Gain immediate access to information

Accelerate – Real time planning and forecasting applications

Collaborate – Rapid consensus by simulating “what-if?” scenarios

Complete - multiple versions of plans and large volumes of data

Mobile technologies enables CFO, Finance Executives and Financial Analysts access to key information anytime and anywhere in a secure manner to increase impact and productivity of the finance organization.



#CFOD13

Enterprise Performance Management

EnterprisePerforman

ce Manageme

nt

Strategize and Plan

Analyze and Optimize

Close and Disclose

Increase organizational alignment and agility

• Set and translate strategy

• Create plans, budgets and forecasts

Help the enterprise make better decisions that drive profitability

• Analyze performance

• Model and optimize profitabilityDeliver a faster, more reliable close to disclose process

• Prepare consolidated financial statements for management & regulatory purposes

• Disclose financial data to internal and external stakeholders



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Better Utilize Your Data To Gain A Competitive Advantage

Base decisions on the latest, granular multi-structured data

Make decisions on analytics rather thanintuition

Frequently reassess forecasts and plans

Utilize analytics to support a spectrumof strategic, operational, and tactical decision making

Rapidly evaluate alternative scenarios

Leading businesses can outpace the competition because they can:

How well do you leverage your own data ?

Fumblers

Fact Finders

Fumblers

Fact Finders

20%

n=1,002Source: IDC‘s SAP HANA Market Assessment, August 2011



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Further InformationCFO and Financial Leadership CenterOur pages dedicated to the CFO and Financial Leadership, a single information source with cutting edge material to help CFOs benchmark their performance in key areas that span performance management, financial close, risk and compliance, shared services, treasury and accounts payable, and receivables functions:

http://www.sapcfo.com/

Enterprise Performance ManagementVisit the Enterprise Performance Management overview pages on the SAP global website for thought leadership papers, solution briefs, demos, and customer stories:

http://www.sap.com/epm

SAP Solutions for Finance NewsletterFind out what's new in SAP solutions for finance. To receive future issues, please subscribe here:

http://www.sap.com/finance-newsletter

http://www.sapcfo.com/

http://www.sap.com/epm

http://www.sap.com/finance-newsletter



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Social Media

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www.twitter.com/sapepmwww.twitter.com/SAP_IFRS_XBRLwww.twitter.com/cfoknowledge

http://cfoknowledge.wordpress.com/

www.sdn.sap.com/irj/bpx/financial-excellence

SAP EPM Group:http://www.linkedin.com/groups?home=&gid=2327383&trk=anet_ug_hm&goback=%2Egmp_2327383

http://blogs.sap.com/analytics/

EPM Playlist:http://www.youtube.com/playlist?list=PLB3220A879856DD4E

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http://www.facebook.com/sapifrs

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http://www.twitter.com/SAP_IFRS_XBRL

http://www.twitter.com/cfoknowledge



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Thank You!



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Manage Financial Performance And Accelerate The Financial Close With SAP Solutions For EPMStrategize and Plan

• SAP Strategy Management

• SAP Business Planning and Consolidation

Analyze and Optimize


• SAP Profitability and Cost Management

• SAP BusinessObjectsBusiness Intelligence

Close and Disclose

• SAP Intercompany


• SAP Financial Consolidation

• SAP Disclosure Management

EnterprisePerformance Management

Solution today



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