A Comprehensive Alternative to

Spreadsheet Planning

September 24, 2009

A Comprehensive Alternative to

Spreadsheet Planning

September 24, 2009

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AgendaAgenda

Introduction

Corporate Overview

Challenges Facing the Office of CFO Today

Alternative to Spreadsheet Planning

Live Product Demo

Why Edgewater

Q & A

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SAP BPC Capability

Technology Management Consulting Firm • Provide a unique blend of specialty IT services • Leverage proven industry expertise in strategy, technology and

enterprise performance management• Focus on middle and Global 2000 market

Founded in 1992• Headquartered in Wakefield, MA• 300 Employees, 240 Consultants• 600 Clients• Large North American Footprint• +2000 Projects Completed to Date• Publicly Traded (NASDAQ: EDGW)

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Challenges Facing the Office of CFO TodayChallenges Facing the Office of CFO Today

Under pressure to drive profitability improvements and increase the resilience of their organizations.

This can not be done without aligning the organization around shared strategic objectives, and plans that can be adjusted to the rapidly changing realties of the market.

Improve planning accuracy and associated costs

Reduce budget cycle time and be confidence in financial results and reports

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The Problem Is…The Problem Is…

Data - accuracy and predictability Historical data in multiple systems and

spreadsheets - no central, data store

Process – efficiency and standards No linkage and enforcement with

standard business processes Budgeting process takes too long and

is error prone

Execution - usability and adaptability Existing planning products are difficult

to use and inflexible – designed for power users

Too much dependency on IT for business specific tasks

Companies typically realize only about 60% of their strategy’s potential value because of defects and breakdowns in planning and execution.”

Source: Harvard Business Review

Many modeling products just don't offer a good mix of usability and flexibility.”

Source: Simplicity Is Golden – CFO.com January 2006

“

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And…And…

By 2012, 90% of public companies will face mandatory, audited public reporting requirements for financial controls, and 50% will face mandatory non-financial reporting (0.8 probability).”

Source: Gartner - 2nd March 2007 - “Audits and Events Drive Governance, Risk and Compliance Spending” by Eid and Caldwell *

One of every ten public companies, whether based in the US or abroad” is having to re-state earnings”

Source: CFO Europe.com – “Say Again?”: April 2007

“ Sarbanes Oxley and other government and

regulatory mandates require companies to be accountable for the accuracy of their finances”

Audit costs as part of the compliance process are extremely high

Mandated process changes

Globalization

Global regulations - accentuating critical data, process and execution issues

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Continuous Planning – from “nice to have” to necessityContinuous Planning – from “nice to have” to necessity

Increased economic uncertainty - throw your annual budget out the window What if the cost of fuel is a key cost driver

of your business? What if the price of crude oil is a key

revenue driver of your business/state?

Continuous planning and rolling forecasts required to quickly adapt to dynamic economic conditions What are new opportunities and risks? How will these impact our targets? What action do we take and what is the

potential impact?

Rollercoaster ride

>40% increase in barrel of oil in 4 mos >60% decrease in barrel of oil in 3 mos

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And the Solution Is…

SAP BusinessObjects Planning and Consolidation (BPC)

SAP

Busin

ess O

bjec

ts

Oracle

(Hyp

erio

n)

Cogno

s

Micr

osof

t0

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Forrester Rating of Planning Applica-tions

SAP BPC SRC Oracle Cognos Microsoft 4.24 3.28 4.21 3.86 2.5

Forrester Rating of the Planning product capabilities of EPM vendors, on a scale of 1-5 (Oct 2007)

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Sample ROI

Reduced financial close from 5 days to 1 day

70% headcount reduction in finance department

Saved thousands by changing the reports distribution

Planning cycle went from 4 weeks to hours

Required 25% of the resource of other vendors to maintain

Millions dollar increase in revenue by providing better performing what-if scenario for tracking trade promotion opportunity

This is a world-class enterprise solution at an affordable price

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SAP BPCStreamlined planning, budgeting, forecasting and fast close

Familiar and easy to use Enables rapid adoption by leveraging native

Microsoft Office tools (e.g. Excel) and web browsers accessing a central database

User owned and managed

Process-centric Configurable business process flows guide

users and drive process consistency

Unified Single, integrated application reduces

maintenance, improves data integrity, and simplifies deployment while enabling flexible planning & consolidation functions

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SAP BPCSAP BPC

Operational Tasks

Bu

sin

ess

Pro

cess

es

Strategic Planning

Budgeting

Periodic Close

Forecasting

Performance Measurement

Com

mun

icat

ion

Col

lect

ion

Con

solid

atio

n

Ana

lysi

s &

Rep

ortin

g

Dis

trib

utio

n

Supports top-down and bottom up planning leading to timely, more accurate plans that are aligned with strategic goals

Facilitates collaborative planning across all functions for more accurate budgets

Enables continuous planning and rolling forecasts to meet rapidly changing business conditions and reduce budget cycle time

Automates the consolidation process, meeting all financial reporting requirements with a complete audit trail for a fast, accurate close

Streamlines planning and automates consolidation

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Choice of Word, PowerPoint, Web and Excel interfaces

Excel without “spreadsheet hell” - live access to central data repository creates a single version of truth, ensuring organizational alignment

Allows use of native Excel functions, formatting, and formula preservation, reducing training time and costs

Easy adoption of existing Excel templates as planning schedules

Familiar and easy-to-use interfaces reduce learning curve and increase adoption

Familiar and Easy to UseFamiliar and Easy to Use

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Guides activities and improves productivity

Helps users know “what” to do “when”, “why” and “how”

Facilitates collaboration with built-in discussion threads and unstructured data sharing

Context-sensitive intelligent action panes aid productivity

Familiar and Easy to UseFamiliar and Easy to Use

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Setup by IT owned and managed by business users

Familiar and Easy to UseFamiliar and Easy to Use

Business User Responsibility Application Security

UsersRolesPrivileges

Hierarchies and Roll Ups Business Process Flows

Modification of Packaged Process FlowsCreation of New Process Flows

Report Templates Excel, Word, PowerPoint Templates Create and Modify Metrics and Measures

IT Responsibility Hardware Security and Authentication

UsersRolesPrivileges

Data and Application InfrastructureDatabase ServerApplication ServerOLAP Structure

• Self-service financial reporting ensures any user can create information on the fly

• Wizard-driven interfaces simplify content creation and administration processes

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Step-by-step guidance through planning processes

Enforce policies and procedures - track process status and completion

Out-of-the box templates for sales and revenue planning, CAPEx planning, workforce planning, budgeted financial statement reports, forecasting and more

Customizable business process flows ensure consistency and minimize training

Process-centricProcess-centric

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Integrated planning and consolidation

Unified Unified

Financial reporting and analysis

Ad hoc

Automated variance analysis

Driver analysis (industry, growth, capacity, etc.)

Forecasting and consensus building

Rolling forecasts

Continuous planning

Collaboration

Business planning

Budgeting

Sales/revenue planning

Capital expenditure planning

Headcount/staffing

Expense planning

Cash flow planning

Consolidation

Intercompany matching/reconciliation

Intercompany eliminations

Management roll-ups

Legal consolidation

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Fast implementation

Pre-packaged content reduces implementation times by up to 80%

Dynamic configuration enables easy customization to specific requirements

Complete, generic reference implementation

Rapid and trusted legal compliance

Embedded expertise in meeting financial regulations including best practice in financial consolidations and internal controls

Detailed process guidance for business users

Comprehensive scope

IFRS specific chart of accounts

Pre-configured IFRS consolidation rules, controls, and calculations

Publishable financial statements

Starter KitsStarter Kits

Faster legal compliance – reduce implementation times

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Analysis & Audit Trail

Dynamically formatted accounting and analysis reports leverage native drill down

Audit IDs for tracking data origin

IAS 1 Publishable Financial Statements

Balance Sheet (current/non-current format)

Income Statement (by function)

Cash Flow Statement (generated automatically)

Statement of Changes in Equity

Segment information

XBRL Templates

Excel templates pre-mapped with IFRS taxonomy

SAP BPC Starter Kit for IFRSSAP BPC Starter Kit for IFRS

Analysis, audit trail and publishing of financial statements

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SAP BPC Live Product DemoSAP BPC Live Product DemoR

epo

rt Distribute plans and analyze variances to drive re-forecasts

An

alyz

e

Consolidate and model multiple scenarios

Co

llect

Collaboratively create plans and forecasts

Co

mm

un

icat

e

Communicate top down targets, timelines, and guidelines

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Successful Stories – Watkins ManufacturingSuccessful Stories – Watkins Manufacturing

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Successful Stories – Beckman CoulterSuccessful Stories – Beckman Coulter

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BenefitsBenefits

SummarySummary

Familiar and easy to use Choice of word, PowerPoint, web and Excel interfaces Context sensitive intelligent action panes Managed by the business, set up by IT

Process centric Customizable business process flows

Unified Planning Consolidation Forecasting and consensus building Financial reporting and analysis

Rapid, broad adoption and reduced learning curve

Lower maintenance and cost of ownership

Greater consistency and minimal training

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Thank You for Joining UsThank You for Joining Us

To schedule a live demonstration:

• Binh Ly• EPM Practice Director• 714-287-1392• bly@edgewater.com

See edgewater.com for:

• Services offered• Solution briefs• Solution in detail• Customer case studies