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©1982 – 2001 Systems Union Holdings Ltd.
'Financial Analytics & Technologies Beyond'
Ashley Clarke
CEO, Asia Pacific
Systems Union Limited
©1982 – 2001 Systems Union Holdings Ltd.
SunSystems Market Positioning
Enterprise>$US 1Billion
Mid Market$US 50M - $US 1Billion
Small Business<$US 50M
International& Domestic
Organizations
3
SunSystems with major organisations SunSystems in financial services
SunSystems global customer portfolio
SunSystems in hospitality
SunSystems in not-for-profit
SunSystems in oil & gas
©1982 – 2001 Systems Union Holdings Ltd.
Issues in Finance
Demands for Increased Transparency and Corporate governance
Scandals Enron Arthur Anderson Worldcom
Ethical issues…ie chinese walls between audit and consulting
All leading to reduced investor / public confidence
©1982 – 2001 Systems Union Holdings Ltd.
Research Feedback – CFO Magazine (US)
Research Date – August 2002
141 CFO’s in publicly listed companies
17% pressured by CEO to mis represent results in last 5 years
60% had released more info in last 3 months
18% do not reconcile pro forma results to US GAAP although advised by US Securities and Exchange Commission
5% had violated GAAP normally in revenue and reserve recognition
©1982 – 2001 Systems Union Holdings Ltd.
Research Feedback – Cap Gemini Ernst Young (US)
Research Date – August 2002
265 CFO’s
56% state that their inadequate financial systems are obstacles to transforming their companies financial accounting methods.
6 out of ten respondents state that budgeting, forecasting and decision support systems are in adequate or insufficiently integrated.
Only 4% say their companies have integrated, Web-based budgeting, forecasting and decision support tools.
©1982 – 2001 Systems Union Holdings Ltd.
Research Result : HK Polytechnic University
Research Date – August 2002.
226 CFO’s, CEO’s, FD’s.
44% claim need for better financial information / business analysis.
37% frustrated by lack of timely information on current system.
©1982 – 2001 Systems Union Holdings Ltd.
Research Feedback – Hong Kong Corporate Market
Research Date – September 01
115 CFO’s
70% state they have inadequate systems.
©1982 – 2001 Systems Union Holdings Ltd.
eCFO Conference – 10/01
C. 75% of respondents have systems that do not allow simple questions to be answered
how much do you spend on stationery.
How much do we spend on travel between city x and city y and how many room nights.
Who are my top 10 customers.
What were my top 10 deals last month
©1982 – 2001 Systems Union Holdings Ltd.
* Size of the Bubble = 2005 Relative Revenues
0%
5%
10%
15%
20%
25%
30%
35%
00
-05
CA
GR
4% 6% 8% 10% 12% 14% 16% 18%
ERM as % of 2005 Total Packaged Applications
ASEAN
ANZ
India
Greater China
Korea
ERM Impact In Asia Pacific
Source – IDC 2001
All will operate within more complex environments
The Profits Squeeze
EXTERNAL PRESSURE Globalization Legislation Skills Shortage Competition Outsourcing New Technologies Demanding Clients
INTERNAL PRESSURE Time & Expense
Administration Staff Retention Training & Development High Resource Costs Speed & Mobility Compliance Demands Tighter Margins Information overload
©1982 – 2001 Systems Union Holdings Ltd.
Finance’s New Role
Current Finance Concerns: Gross margin
contribution of product lines
Monthly reports to management
Annual budget cycle
Quarterly and annual financial reports
Additional Concerns for Finance: Contribution of each
product to the bottom line
Real-time financials to enterprise-wide decision makers
Rolling, reforecast budget goals for operating entities
©1982 – 2001 Systems Union Holdings Ltd.
Right Person
Right Format
Right Time
Challenge
How to access and deliver mission-critical information from key operational systems to employees, customers, and partners
Personalized view
©1982 – 2001 Systems Union Holdings Ltd.
Business Issue.…Balanced Scorecard
Internal Business
Financial Perspective
Return on Capital Employed
Cash Flow
Project Profitability
Profit Forecast Reliability
Customer Perspective
Pricing Index
Customer Banking Survey
Customer Satisfaction Index
Market Share
Hours with Customers on NewTender Success RateSafety Incident IndexProject Performance IndexProject Closeout Cycle
Innovation and Learning % Revenue from New Services
Rate of Improvement Index
# of Employee Suggestions
Revenue per Employee
Corporations typically have 20/30 sources of information
©1982 – 2001 Systems Union Holdings Ltd.
ERM Delivery
Information must Come from Any Relevant Systems
Analytics
PSA
SCM
Procurement
PeopleManagem’t
CRM
Financials &Bus. Mgmnt
©1982 – 2001 Systems Union Holdings Ltd.
Month 1 Month 2
Typical Timing for Production of Month-end Reports
Consolidated Reports from
month 1
©1982 – 2001 Systems Union Holdings Ltd.
Month 1 Month 2
Production of Month-end Reports - Changing
Time taken to close books can be reduced
©1982 – 2001 Systems Union Holdings Ltd.
Month 1 Month 2
Time Delay – Issues not Addressed in Timely Manner
15th of the month – Alert to CFO indicating 250K is overdue
Traditionally board will only know about an issue half way through the following month
©1982 – 2001 Systems Union Holdings Ltd.
Forward Visibility not IT Constrained
More visibility
Month End
©1982 – 2001 Systems Union Holdings Ltd.
Kuala Lumpur
Tokyo London
Shanghai
Data Sources(Alert)
in any language
and currency
On Line , Real time InformationFrictionless
©1982 – 2001 Systems Union Holdings Ltd.
Wireless SunSystems
SQL ServerORACLE
Other ApplicationsCustomers
Partners/SuppliersEmployees
Wireless Ad-hoc EnquiriesWAP / i-Mode / SMS/ MMS
Intuitive Alertssent via SMS/MMS
Your CompanyYour Company
©1982 – 2001 Systems Union Holdings Ltd.
Objectives
Enable Fast, Accurate Financial Decision-making That Creates an Expanding Relationship Between the Tactical and Strategic
Reduce Unnecessary Losses and Expenses by Pinpointing Operating Deviations As They Arise
Create and Seize Revenue Opportunities Using New and Old Forms of Analyses to Drive Business Strategy
Empower Financial and Non Financial Managers
©1982 – 2001 Systems Union Holdings Ltd.
Important Technology Segments – Source Aberdeen Group
Consolidation and Reporting
Budgeting and Forecasting
Planning and Analysis
Financial Risk Management (new)
Profit Optimization (new)
Taxation (new)
©1982 – 2001 Systems Union Holdings Ltd.
Analytics Market
Analysts Predictions, Global BI market growth: $4.2B 2001 to $17B 2004 (Giga) Analytic applications: $500M 2001 to $3B 2004 (Giga) Financial analytics: $843M 1999 to $2.1B 2004 (IDC) CRM analytics: $301M 1999 to $2.3B 2004 (IDC) Accounting software $3.6B 2001 to $3.9B 2005 (Gartner)
Market Drivers Increase in fierce competition Rapid explosion of data More decentralized decision making Increase in the need for knowledge workers
©1982 – 2001 Systems Union Holdings Ltd.
Number of BI Users in a Company with 1,000 Employees
0
50
100
150
200
250
300
350
BI Tools Analytic Apps Portals
Source: Giga Information Group
Low
High
©1982 – 2001 Systems Union Holdings Ltd.
Practical Trends – the next 24 months
Document Imaging, more deployment options
Language
Streamline process..employees / suppliers / customers
Intuitive….systems from which no facts can hide
Centralisation
Audio – visual board reports
Word / Powerpoint integration
©1982 – 2001 Systems Union Holdings Ltd.
“Financial Analytics – the ability to get real time information in one language and one currency from all internal systems and to deliver it or to access it wherever you are in the world”
©1982 – 2001 Systems Union Holdings Ltd.
Issues in Finance
Corporate governance
Scandals Enron Arthur Anderson Worldcom
Ethical issues…ie chinese walls between audit and consulting
All leading to reduced investor / public confidence
BUT TECHNOLOGY IS THERE TO SUPPORT ENHANCED LEGISLATION IF THAT IS WHAT IT TAKES TO ACHIEVE GREATER BUSINESS CONFIDENCE