THACK BROWN

GM, GLOBAL HEAD LOB FINANCE

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TECHNOLOGY TRENDS

Increasing complexity to support

multiple business models

Pressure to support global

growth initiatives

Requirement to reduce the cost

of finance

Accelerated adoption of technology

innovations

Millennial work style enabled by

networks and mobility

Explosion of Data

BUSINESS TRENDS

Challenges and Opportunities for Financial Excellence

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Boardroom of the Future

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Technology Driven Instant Insights, Prediction,

Simulation and Analysis

Decision makers must get information faster, absorb and analyze it faster and make

adjustments faster.

To become a strategic business partner the CFO has to make sure that Information Tools and

Technologies are leveraged in order to enable the Business to make the right decisions at the

right time.

By integrating these key technologies based on the HANA Platform SAP has created a wide range of

solutions and applications supporting the transformation of the Finance organization and preparing it

for future challenges.

In Memory Computing Analytics Cloud Mobile

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2011

Technology-Enabled Acceleration of SAP’s Vision of Finance

Finance Run

Better Together

• Customer

Centricity

• Operational

Excellence

• People &

Organization

2015

Planning

• Implementation of Business

Planning and Consolidation

(BPC) on HANA

Record-to-Report

• SAP Financial Closing Cockpit and

implementation of process optimizing

factors utilizing HANA processing

power

• Fastest close in the DAX from 18

working days to 13 working days

Operational Excellence

• Mission critical: CRM on HANA,

ERP on HANA, Redesigned Q2C

process, FSCM

• Good Receipts & Invoice Receipts

App, Cash Forecasting App,

Receivables Manager

Simple Finance

• All data is available on

transactional granularity;

reporting requests can

be handled on an

ad-hoc basis

Risk Management

• Implementation of GRC 10.1 suite including

access controls, process controls and fraud

management to gain end-to-end view on risks

Procurement

• Implementation of ARIBA Network

(Buy & Cash Management)

• Speed up Inter-Enterprise

Purchase-to-Invoice Automation

and Collaboration

Analytics

• Implementation SAP BW on HANA

• SYBASE Unwired Platform for mobile use

of analytics

Powered by

SAP’s

solutions

2011

Acceleration of the

Vision of Finance

HOME RUN

Last mile of

Finance Run

Better Together

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One data instance as common basis for

Transactions, Analysis, and Reporting

• A single data copy in a shared data model

• Aggregation of elementary records in real time

• From serial processes to event driven collaboration

• Various copies of data in different data models

• Inherent data latency and alignment issues

• Serial processes to ensure data quality

Separation of Transactions,

Analysis, and Accelerated Reporting

SAP HANA (DRAM)

Transact Analyze Accelerate

Cache

Simple Finance:

In-memory Computing Enables a Single Source of Truth

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Close Books in a Day

Task acceleration and

automation

Intra-period reconciliation

Soft close and simulation

(planned)

$ Optimize Working Capital

Group cash management

Working capital analytics

Continuous cash collections

Invoice and discount optimization

Ensure Compliance

Fraud detection and prevention

Audit management

Plan Dynamically

Integrated business planning

Predictive forecasting

Budget management

(planned)

Centralize Finance

• Real-time financial and operational reporting

• Harmonized internal and external reporting

• Group reporting in multi-ERP and M&A situations

• Flexible reporting in matrix organizations

• Centralized process execution

Analyze Plan Transact

Real-time Analytics Enabling Real-time Processes

Value Scenarios of SAP Simple Finance

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Central Finance for Heterogeneous Landscapes

Non-disruptive Step Towards System Consolidation

Mergers, acquisitions,

divestitures

Businesses cutting across

multiple ERP systems

Dynamic and complex

matrix organizations

Centralized process

execution as shared service

Real-time reporting from

operational data

Real-time Real-time Add

Remove

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Closing Books in a Day

From Monthly to Weekly Or Daily Close with Dynamic Simulation

New key capabilities

• Elimination or acceleration of batch jobs

• Streamlined intra-period reconciliation

• Harmonization of internal and external accounting

• Line item drill down for faster root cause analysis

Business benefits

More up-to-date managerial reporting

Enablement of soft close and intra-period simulation

Lower cost of close and avoidance of peak activities

Duration of month end close

in workdays

Source: SAP Benchmarking Services

Laggards Best-in-Class Target

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Dynamic Planning with Integrated Business Planning

Business Benefits

• Shorter planning cycles

• Better educated target setting

• Higher accuracy of forecasts

• End-to-end scenario simulations

• Lower cost of budgeting process

Connecting Departmental Plans In Real-time to a Group Plan

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SAP Runs SAP – Major Value Realized

Account Receivables: Receivables Management

Books Closing: Fast Close Enablement

Improvement on

processing time

Reduction in G/L

posting corrections

I/Co reconciliation: Real-Time capabilities

Reduction in

time to process

reconciliation

issues

Days sales

outstanding

reduction

28%

40% 70%

01/2012 03/2013 08/2013 04/2014 Q1/2015

BW on HANA

Dynamic Planning: Integrated Planning & Analytics

CRM on HANA ERP on HANA Simple Finance

on HANA

Time to

implement org

changes (down

from 1 week)

1 day

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Earlier period closing

Better forecasting

Simulation of results or organizational structures

Better insights into customer behavior

Real time sales and costs analysis in any fashion

Better service level in the customer facing applications

Business Benefits Coming from Real-time Finance

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Thank You

Thack Brown GM, Global Head LoB Finance