Integrated Financial Planning ( IFP) – Sales Revenue ,Cost , Forecast and Budget

� Budgeting and forecasting are annual activities that are complex, time-consuming, political, and not always strategic. This has often resulted in erroneous planning or counterproductive use of time.

� Executives and Managers want more immediate access to information in order to visualize what is happening in their business, to assess the trends and understand the factors that are impacting on performance and to get the insight they need for timely and effective decisions.

• Industry undergoes significant structural changes in an uncertain world economic climate.

Business Challenges

Business Performance Management (BPM) with Drivers - Business Challenges

• Globalization, digitalization and increasing competition are changing the face of the industry.

• Manufacturers face a new set of challenges to their business models and cost structures. Original equipment manufacturers and suppliers are experiencing poor operating performance, reduced profitability and increasing financial and bankruptcy risk.

• Executives and Managers want more immediate access to information in order to visualize what is happening in their business, to assess the trends and understand the factors that are impacting on performance and to get the insight they need for timely and effective decisions.

Prepared and PresentedJothi Periasamy

Phone : (916)-296-0228

Not for Distribution. Solution Designed , Architected and Developed BY

Jothi Periasamy

STRATEGIC OBJECTIVES OUTCOME METRICS DRIVERS

Market

share growth

and

revenue

Market share

Actual revenue

generated

• Total market size

• Advertising spent

• Customer attrition

• Average revenue/unit

• Discounts

• Promotions

• Conversion rate to new customers

• Average number of units/sales order

Business Performance Management (BPM) with Drivers – Business Solutions

I

N

T

E

G

R

A

T

E

D

F

I

N

A

N

Profitable

growth

and efficient

use of capital

Human capital

• Actual costs related to produce

and distribute the vehicle• Cost of goods sold/unit

Employee

Engagement

Gross Margin

• Number of employees hired or

trained • Retention of top talent• Employee satisfaction

Cash Flow • Capital expenditures

C

I

A

L

P

L

A

N

N

I

N

G

(

I

F

P

)

Prepared and Presented

Jothi Periasamy

Phone : (916)-296-0228

Not for Distribution,. Solution Designed , Architected and Developed

BY Jothi Periasamy

CostRevenue

Planning/Budgeting / Forecasting Process

�SAP BPC

�SAP BW

�SAP ECC

�SAP BOBJ

�Xcelsius Dashboard

RevenueProcess

CostProcess

Budget Process

RevenueDrivers/ Scenario

CostDrivers/ Scenario

Budget Scenario

Technology Scope SAP NetWeaver Systems Landscape

EY Internal Use Only

SAP

Cash Flow

P&L

Balance Sheet

Business Performance Management (BPM) with Drivers – Technology Solutions

JDE/etc

Cost

Data Source / Actuals / Transaction Systems

Revenue

Plan/Budget/Forecast/Consolidated Data Storage

Budget

OracleSAP

SAP

Business

Objects

Xcelsius


Phone : (916)-296-0228

Not for Distribution. Solution Designed , Architected and Developed

BY

Jothi Periasamy

Business Performance Management (BPM) with Drivers - End-To-End Solutions

Integrated Financial Planning (IFP) System Demo


Phone : (916)-296-0228Not for Distribution.

Solution Designed , Architected and Developed BY

Jothi Periasamy

Integrated Financial Planning (IFP) System Demo

Executive View




Jothi Periasamy

IFP Overall Process


Developed on

�SAP BPC MS 7.0

•SAP BW 7.0 •SAP ECC 6.0•SAP BOBJ Xcelsius


Phone : (916)-296-0228

Review Your Revenue/Expense Driver Impacts in �Cash Flow , �P&L � Balance Sheet

Not for Distribution.




Jothi Periasamy

Data Collection - Collect Actuals ( 2009 Revenue and Cost)


Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Currency Conversion - Validation

Developed on

�SAP BPC MS 7.0







Jothi Periasamy

Revenue Drivers

� Average Sales per Unit

� Discount per Unit

� Adjustments per Unit

� Average Sales Units

� Customer Channel

� Contacts to Sales Order Rate


Developed on

�SAP BPC MS 7.0


� Sales Order Lost Percentage

� New Customer Conversion Rate

� Attrition Rate

� etc






Jothi Periasamy


Revenue Drivers - New Budget - RevenueDeveloped on

�SAP BPC MS 7.0







Jothi Periasamy


Revenue Drivers - New Budget - Revenue – Graphical ViewDeveloped on

�SAP BPC MS 7.0







Jothi Periasamy


Revenue Drivers - New Budget – Scenario Analysis

Increase Customer Channel for JAN 20100 To 10% Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Revenue Drivers - New Budget – Revenue

Increase Customer Channel for MAY 20100 To 10%Developed on

�SAP BPC MS 7.0







Jothi Periasamy



Save Scenario Data

Developed on

�SAP BPC MS 7.0







Jothi Periasamy



Drill-Down to Product Level

Developed on

�SAP BPC MS 7.0







Jothi Periasamy

Expense Drivers

� Average Employee Costs

� Labor Productivity Rate

� Full Time Equivalent Conversion Rate

� Non-Employee Productivity


Developed on

�SAP BPC MS 7.0


� Non-Employee Productivity

� etc






Jothi Periasamy


Expense Drivers - New Budget - Expense

Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Expense Drivers - New Budget – ExpenseReflecting the 10% increase in customer channel from New Budget Revenue

for the months of January thru May.Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Expense Drivers - Expense Graphical Representation Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Expense Drivers -Save Scenario Data - Completed

Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Work Status - Budget Review Process

Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Management Reporting - Full P&L

Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Management Reporting - Cash Flow

Developed on

�SAP BPC MS 7.0







Jothi Periasamy


Management Reporting - Balance Sheet

Developed on

�SAP BPC MS 7.0







Jothi Periasamy


IFP Demo Completed

Developed on

�SAP BPC MS 7.0







Jothi Periasamy

Business Performance Management (BPM) with Drivers - Xcelsius Dashboard

Sales Flash Dashboard - Xcelsius Demo

�Sales By Region �Sales By Customer�Sales By Product

Developed on

�BPC Microsoft �SAP BW •SAP ECC •SAP BOBJ Xcelsius


Phone : (916)-296-0228

�Sales By Product





Jothi Periasamy


SAP BOBJ Xcelsius Dashboard

Developed on


Phone : (916)-296-0228

�BPC Microsoft •SAP BW •SAP ECC•BOBJ Xcelsius





Jothi Periasamy


Xcelsius Dashboard as a Content Library in BPC -

Sales Flash

Developed on

BPC Microsoft


Phone : (916)-296-0228






Jothi Periasamy


Xcelsius Dashboard Based on BPC Plan Data-

Sales By Region

Developed on

BPC Microsoft


Phone : (916)-296-0228






Jothi Periasamy


Xcelsius Dashboard Based on BPC Plan Data -

Sales By Customer

Developed on

BPC Microsoft


Phone : (916)-296-0228






Jothi Periasamy


Xcelsius Dashboard Based on BPC Plan Data-

Sales By Product

Developed on

BPC Microsoft


Phone : (916)-296-0228






Jothi Periasamy


About Author

Jothi is an Enterprise Performance Management (EPM) professional with Subject Matter Expert (SME)level expertise in SAP BPC / BI / BOBJ. He has been responsible for delivering end-to-end EPMsolution to corporations across the nation in diversified industry verticals. His solution deliveryexpertise includes Practice Building, Financial Planning, Consolidation, Business Intelligence, MasterData Services, Enterprise Architecture, and Portal Solutions. Experience overseeing and facilitatingenterprise level strategic planning, change management, and training initiatives.

Jothi has 15 years of industry implementation experience, and his expertise includes Financial Transformation and Performance Improvement Services, with a focus on helping clients create value from Financial Planning and Consolidations, Cost Allocation, Profitability and Cost Management, Activity Based Costing, Product Costing, Management/Statutory Reporting. He has worked for clients across multiple industries including Financial Services; U.S. State Governments; Healthcare; Hi-Tech; and Utility.


Phone : (916)-296-0228

Financial Services; U.S. State Governments; Healthcare; Hi-Tech; and Utility.

Jothi’s most recent experience includes working with clients to help global Financial Transformation initiatives to develop a worldwide rollout strategy and deployment plan , and also designing developing data architecture, information architecture, application architecture, technical architecture, hardware sizing, capacity planning, configuration management, build and release process. Jothi works very closely with business process owners to develop an approach and framework to standardize financial process across enterprise.

Jothi Periasamy, PMP, SCPM (Stanford PM), SCEA (JEE Architect)

SAP Certified NetWeaver BI Solutions Consultant

Motorola Certified Six Sigma Green Belt Consultant

Senior Manager

SAP EPM/BI Domain Champion West Region

Ernst & Young Advisory /Performance Improvements





Jothi Periasamy

Integrated Financial Planning ( IFP) – Sales Revenue ,Cost , Forecast and Budget

Education

Transcript of Integrated Financial Planning ( IFP) – Sales Revenue ,Cost , Forecast and Budget