Achieve Financial Excellence with innovative SAP Finance ... · Engine Unstructured Text Engine SAP...

Kai Finck, Senior Vice President, Finance SolutionsMarch, 20th 2014

Achieve Financial Excellencewith innovative SAP Finance Solutions

CFO

Today’s Volatile World Needs Strong CFOs

Steward Operator

Strategist

2© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3

Leading CFOs Are Stepping Up …

CFO

Strategist

Steward

Change Agent

Service ProviderGuardian

Operator


4

RegulatoryCompliance

ReportGeneration

Manual localProcesses

Stakeholder NeedsInternal ControlsRisk Management

Data GovernanceInformation Self ServiceStrategic Advisory

Global ProcessesCollaborationService Quality

… Transforming Their Own Organization


Real Time – Paradigm for a Volatile World


Our Private Lives Happen in Real Time


Legacy platforms and‘silo’ applications

Today’s Barriers

‘Slow pedaling’business applications

Need to understandthe ‘art of the possible’


70%of effort in analytics ispreparing data foranalysis

40%of IT managers requiredmore than two days toprepare financial data formonthly reporting

25%of LoB end users indicatethat faster access toinformation would have asignificant impact ontheir organization

Do You Understand the Art of the Possible?

Accounting andFinancial Close

Financial Planning andAnalysis

Treasury and FinancialRisk Management

CollaborativeFinance Operations

Enterprise Riskand Compliance

Management

CollaborativeInvoice to Pay

Travel Management

Receivables Management Enterprise Governance,Risk, and Compliance

Access Risk Management

Global Trade Compliance

Accounting

Entity Close

Corporate Close

Develop and TranslateStrategy

Planning, Budgeting andForecasting

Profitability and CostAnalysis

Payments and BankCommunications

Cash and LiquidityManagement

Debt and InvestmentManagement

Monitoring and Reporting Reporting and Disclosure

Financial CloseGovernance

Commodity RiskManagement

Shared ServicesFramework

Financial RiskManagement Sustainability Reporting


The Reward of Excellence

3xLower finance costas % of revenue

76%Higher operatingmargin

22%Lower audit costs

56%Fewer treasuryFTEs

44%Fewer financeFTEs

26.1%Fewer days toclose the books

Source: SAP Benchmarking Services


ALIGNED, AGILE, PREDICTIVE• Single source of truth• Real time finance processes• Unmatched insight and foresight

Real Time Finance



AlignedSingle Source of Truth

Provide seamless access to allyour financial data

Ensure data consistency acrossall Finance solutions

Support personalized analyticswithin the system of record


Customer Benefits of Single Source of Truth

SAPERP

SAP HANA PlatformSingle source of truth

SAPBPC

SAPBW, BI

Legacy ERP Legacy ERP Legacy ERP

Corporate alignment• Fully harmonized data

• Reduced reconciliation effort

Personalized analytics• User-defined data views

• Drill-down to line item level

• All relevant dimensions

• Customer-specific dimensions

Aggregation on the fly

Central Journal

SAP’s Next Gen Architecture for a Single Source of Truth

SAPERP

In-Memory Database

PredictiveEngine

BusinessFunctionLibrary

PlanningEngine

UnstructuredText Engine

SAP HANA Platform

SAPBPC

SAPBW

SAP HANA Live (Virtual Data Model)

Legacy ERP Legacy ERP Legacy ERP

Legacy ERP systems feed single source of truth• Real-time replication of all accounting records into a single

SAP HANA platform via SAP SLT• No need to physically consolidate back-end systems

SAP HANA platform provides single source of truth• Real-time reporting through configurable views

(semantically integrated virtual data model)• Library of methods for shared use by all solutions• Single data instance in shared in-memory database

SAP solutions leverage single source of truth• Processing of accounting records in a central journal• Aggregation of shared data on the fly• New unified accounting architecture in SAP ERP

Introducing SAP Smart Accounting

LogisticsDocument

CODocument

FIDocument

Totals & IndicesFinancial Accounting

Totals & Indices

Management Account.

From … Stability

Processing

Analytics

CO Document

FI Document

Flexibility

HANA views on the fly

Pre-Defined Aggregates

Flexibility

Stability

Processing

AnalyticsLogical document

LogisticsDocument

… To

Customer benefits• Harmonized internal

and external reporting

• Account driven datamodel

• Significantly reducedreconciliation effort

• Higher flexibility inreporting and datacustomization

• Significantly reducedmemory consumption

Reporting Flexibility in SAP Smart Accounting

User-defined reporting

Users can explore data on the fly by restrictingfinancial statements to self-defined data sub-segments

SAP will continue to provide standard reports butwith focus on frequently used reports

Available information

• All record dimensions can be used forsegmentation

• Unrestricted selection of multiple dimensionsfor segmentation

• Customer-specific dimensions can be easilyadded and are available for segmentation

Single Sourceof Truth

Central journalReplicate accounting recordsfrom legacy systems in real-timeinto a virtual central journal

Shared data and methodsShare data, data models, andmethods that are stored withinSAP HANA across solutions

New accounting architectureReporting on the fly based onindividual records with one logicaldocument for both FI and CO



AgileReal time finance processes

Run adaptable end-to-endprocesses with real-timeexecution

Provide instant insight to actionbased on real-time data

Support real-time processoversight and risk management


Period End Close: Transition to Continuous Processing

Processes designed for real-time operationseliminate close bottlenecks

Real-time analytics forprocess oversight

Close processes involve >100 tasks withmultiple batch bottlenecks

Benefit Drivers• Eliminate end of period batch bottlenecks• Continuous intercompany reconciliation• Continuous financial reporting visibility• CO-PA & line item detail reconciliation• Automation for routine tasks• Full management visibility of close tasks

Challenges• Multiple batch run dependencies• Batch bottlenecks delay downstream activities• High error correction efforts• Complex issues delayed till post close• Time pressured resolutions• Delayed visibility to reporting

Expected Benefits

50%Reduction in GL postingcorrections

60%Reduction in time to reconcilerevenue recognition issues

70%Reduction in time to resolveallocations

CloseBatches

Consolidation Batches

Close &Consolidation

Initial Period

Traditional Close

Close &Consolidation

Initial Period

Reportingon-demand

Close enclosed by HANA

Period End Close: Intercompany Reconciliation on the Fly

FBICR3Reconcile Documents

FBICS3Select Documents

FBICA3Assign Documents Automatically

New user experience Improved data drill down

Reduced time to closebooks• Improved and accelerated

automated matching

• No more batch jobs, realtime analysis supportscontinuous intra-periodprocess execution

• Improved user experienceand enhanced data drilldown reduce manualreconciliation effort

• Better process oversightthrough new managementdashboard

Period End Close: Benefit of Enhanced Data Drill Down

FI Analyst

CEO / CFO

CFO

Sales VP

Head Sales

Freight charges exceed customer charges

Profitability surprise!

Unexplained margin drop

Outstanding accruals in P&L

Unreconciled chargesNegative margin impact

Sales person using old freight calc. tool

Sales orders underestimate freight

Bottom Line

Root Cause

3 months to identify root case• Multi month root cause analysis• Poor information/visibility• Manual analysis across multiple sources

Impact 3 months 30 sec's

Accrual discrepancy $28,000,000 $95,000

Customers impacted 300 2

Customer calls 473 1

Re-invoicing costs $125,000 $37

Customer's lost 34 0

30 sec's to identify root cause• Instant visibility into charges by sales person• Rapid discovery and resolution of issue

vs.

SAP runs SAP: Accelerated Period End Close

Quality by realtimeanalytics withCOPA on HANA

AgiltyBalance Sheet& P&L

> 3.5 x faster

Real time error detectionthrough deviation analysis anddrill down to lowest level

BatchProcessing 3.5 x faster

AutomaticalRevenueAccruals

~ 2.5x faster

CostPostings

New Business Scenarios basedon realtime Sales Data

from > 2 hours to realtime> 7x faster

> 10x faster

Intercompanyreconciliation in real time

From > 2 hours to

realtime


Smart Business Cockpits

Planned Cockpits• Chief Financial Officer

• Financial Close Manager

• Cash Manager

• Receivables Manager

• Payables Manager


• Analyze global bank balances andcash positions based on data fromSAP and non-SAP systems

• Integrated liquidity forecastingincluding cash flow analysis usingmulti dimensional real-time analytics

• Central Bank Account Managementincluding overdraft limit analysis,bank risk analysis, signatorymanagement and workflow support

• Smart Business for Cash Managers,a cockpit to monitor critical KPI’s,also on a mobile device


Treasury and Financial Risk: SAP Smart Cash Management


Real Time FinanceProcesses

Real time month end closeAccelerated close with intra-monthreconciliation for real time reportingand pre-close simulation

Real time personal analyticsFlexible analytics for instant dataaccess with drill-down along anydimension down to line item level

Next gen user experienceNew role based user interfaces withembedded real time analytics andmobile access for business users



PredictiveUnmatched insight andforesight

Deeply understand thedrivers of your business

Recognize trends andanticipate future risks

Align around a joint planand adapt dynamically



One rolling plan for the entire groupPlan autonomy for the businessesDemand signals and smart forecastsUpdate of the group plan on the fly

DynamicPlanning

Rapidly changing customer demandHigh volatility of market pricesDisruptive external shocksNew untested business models

VolatileWorld


System Requirements for Integrated Business Planning

CorporateFinancial

Plan

de-centralsatellites

De-centraloperational

plans

De-centraloperational

plans

Sub-plans

Sub-plans

LoBForecast

(e.g. Sales)2

1

3

4

• Central plan governanceand process orchestrationfor group controller

• Full planning flexibility andautonomy for owners ofdepartmental plans

• Access to master data andactuals from ERP for rapidmodeling and planning

• Availability of plan data inERP for variance analysis

• Single planning solution forlow TCO and high usability

SAP Business Planning and Consolidation 10.1

• Unification of current BPC and BW capabilities in asingle model for planning and consolidation

• Unified models based on BW meta-data utilizingproven data harmonization services provided by BW

• Seamless integration with SAP ERP

• End-user centric plan configuration and planningcapabilities (incl. UI) provided by BPC NW 10.0

• Support for integrated business planning, dynamicmodeling and simulation

• HTML5 UI support for device-independent planning

SAP HANA Platform

SAP ERP / 3rd party ERP

SAP NetWeaver /SAP Business Warehouse

EPM Excel Add-in/HTML 5 Web UI

SAP Business Planning and Consolidation10.1, version for SAP NetWeaver

BPC NW and BW-IP come together in Unified BW-based model

Introducing SAP Business Planning and Consolidation 10.1

BPC

BW

Architecture for Financial Planning with Classic ERP

SAP HANAPlatform

SAPERP

SAPBPC, BW

Customer benefits• Single SAP planning solution

combining the data harmonizationstrengths of SAP BW-IP with theflexibility and end-user centricity ofSAP Planning and Consolidation

• Unified models for enterprise-wideplanning and reporting scenarios

• Improved integration with SAP ERP

• Rich set of SAP HANA-optimizedplanning and reporting functions

Replication of data• Master data (e.g., cost centers)• Planning model• Actuals, plans, budgets, forecasts

• Entry of transactionaland master data

• Variance analysisactuals vs. plan

• Entry of planningmodels and plan data

• Flexible reporting andanalysis of actuals

Any DB


Unmatched Insightand Foresight

Integrated business planningFacilitate collaborative planningprocesses, linking departmental plansto a central plan

Dynamic business planningProvide new user experience for driverbased planning, simulations, andpredictive forecasting

Single analytical solutionProvide single solution for planning,real time consolidation, profitabilityanalysis, and reporting


What Will our Professional Lives Be in Real Time?



Demo

Financials Add-On to SAP Business Suite powered by SAP HANA


Business Suite on HANA

SAP HANA Platform

AlignedSingle Source of Truth

AgileReal time finance processes

PredictiveInsight and foresight

Cash ManagementNew product for

Group Cash Management

AccountingAlternative in-memory

functionality for ERP customers

IntegratedBusiness Planning

New capabilities and enhancedintegration for ERP and BPC.

Fraud & AuditManagementNew HANA based apps for

fraud detection and assurance

Adopt Innovation at Your Own Pace

SAP Business Suitepowered bySAP HANA

SAP ERP

SAP HANA

SAP Business SuiteSAP HANA as

side-by-side scenario

Any DB

SAP ERP

SAP HANA

SAP Business SuiteCentral journal on

SAP HANA

SAP ERP

SAP HANA

SAP ERP


SAP HANAAccelerators

SAP NetWeaverBusiness

Warehouse SAP GovernanceRisk and

Compliance

SAP BusinessPlanning andConsolidation

Starting your Journey towards Real Time

SAPERP

SAP HANAside-by-side


Your Choice of Deployment Option

On Premise

SAP HANA Enterprise Cloud

Public CloudSAP Cloud for Travel and Expense

Ariba Network

SAP Financial Services Network


DRIVES BUSINESS REINVENTION,MODERNIZATION AND ACCELERATION

Adopting SAP ERP powered by SAP HANA


Key Take AwaysTechnology innovations like in memorycomputing will trigger a new processrevolution, enabling Real Time Finance

For this purpose, SAP is providing arenewed Finance solution portfolioon the basis of the SAP HANA platform

SAP supports customers to flexiblychoose their own non-disruptiveevolutionary path towards real time



Our offer - Creating a Point of View

What is it?

A Point of View (PoV) is a customer-specific, executive document

It ties SAP's solutions to your company’sbusiness strategy and/or pain points

Addresses the most critical concerns ofyour C-level executives

It is based on SAP’s leadingBenchmarking data


Our offer - Creating a Point of View

Approach

Identifying your key questions and understand your company’sstrategy and business challenges is key

Partnering with our customers should ensure setting the rightexpectations regarding scope, investment and timelines

Preparing an outside in “Move the Needle” analysis and gatherbenchmarks to highlight challenges and opportunities willsupport our customers to find the appropriate solution fit

Validating our key findings together with our customers willdocument our customers’ specific storyline

ENGAGE

with us to leveragetechnology innovations

to transform Finance

PARTICIPATE

Use the businessscenarios

recommendation todiscover the value ofSAP Suite on HANA

EXPERIENCE

The power ofSAP solutions for the

Office of the CFO

Now It IsYour Turn

visit SAPCFO.COM© 2014 SAP AG or an SAP affiliate company. All rights reserved. 61


© 2014 SAP AG or an SAP affiliate company. All rights reserved.

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National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, andSAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forthin the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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