Does Finance really Need Enterprise Software?Kurt J. Bilafer – Regional Vice President Analytics

November 13, 2013

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Confusion over the Role of Finance

Focus is on Closing Books

Doesn’t understand the business and just slows things down

Excel Jockeys

Rapidly moving from stewards of the business to Trusted Advisor

Have access to the most expensive and accurate data in the organization

Embracing Innovations & Improving Transparency

Misconception Reality

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Confusion over SAP

SAP just does ERP

SAP = EXPENSIVE

Deployments take too long

Over 50% of SAP’s license revenue comes from non-ERP solutions

SAP has solutions for everyone, including SMEs. We offer solutions in the Cloud, on Device and in-memory

We have several offerings to accelerate your deployment

Misconception Reality

Greater Expectations of Finance

Financial Risk Management

Operational Efficiency & Effectiveness

Performance Management

INCREASING PRESSURES ON THE OFFICE OF FINANCE

How Finance Can Run Better

Financial Risk Management

Performance Management

Operational Efficiency & Effectiveness

Streamline financial functions and provide self-service reporting and

analysis

Shorter time to close books

% of time spent of working withthe business

Lower cost of finance as% of revenue

Embed a 360° view of enterprise performance with agile budgeting

and actionable profitability reporting

Superior Return on Capital Employed (ROCE)

Lower proportion of unprofitable products and customers

Minimize # earnings warnings

Embedded risk management and controls from transactional

processing to financial reporting

Lower % revenue at risk

Reduced incidence of penaltiesfor non compliance

Minimize risk of financial restatements

The Cost of Not Knowing…

Operational Risk Financial Risk Strategic Risk

Diminished customer loyalty

Increased cost of capital

Loss of revenue streams

Decreased shareholder value

Automate manual tasks

Employ best practices

Reduce effort and cost

Automate monitoring

Real-time analysis

Industry-specific solutions

Align with strategy and planning

Embed analytics

Scenario modeling

MANAGE BETTER PROTECT BETTER PERFORM BETTER

Proactively Balance Risk and Opportunity

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Impact of using Enterprise SoftwareBy the Numbers

3x Lower finance cost as percentage of revenue for top quartile organizations versus bottom quartile organizations

76% Higher operating margin where financial systems provide historical and forward- looking views into financial and operational performance

26% Fewer days to close annual books in an integrated G/L system so that no reconciliations are necessary

22% Lower audit cost with the use of automated controls rather than manual controls

13% Higher financial forecast accuracy for top quartile organizations versus bottom quartile organizations

28% Lower error rate in bills sent out when billing system is integrated with A/R and re- entering data is eliminated

24% Higher operating margins where enterprise mobility is embedded in all business processes

15% Fewer days sales outstanding where finance leadership has a financial dashboard that provides a timely view into predefined key metrics