Achieving Financial Excellence powered by SAP How to ... to... · Credit Manager Bad debt as % of ... Accounts Receivables and Collections ... Receivables Management SAP Customer

Achieving Financial Excellence powered by SAP

How to streamline Finance Operations?

Ralph Schoepfer, Senior Director MEE CoE Finance

SAP Finance Innovation Day 2014 – Geneva on Mar 18, 2014

Confidential

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SAP HANA Platform

Applications Analytics

SAP’s Strategy …

User Experience

Partners

&

Startups

SAP HANA Platform

Applications Analytics

SAP’s Strategy and how Finance fits into it

User Experience

Answers to the

Line of Business

Finance

Partners

&

Startups


The 2014 Agenda of Chief Financial Officers


Achieving Financial Excellence between the Poles of Key

Challenges – Executing along End-to-End Processes

Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting

Financial Accounting

Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative

Invoice to Pay Audit Management

Finance Operations Planning & Controlling Financial Reporting Treasury Risk & Compliance &

Audit

Business Insights and Prediction




Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting


Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative



Audit





Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting


Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative



Audit



Drivers for Shared Services

What We Hear from Our Clients!

Cost Pressures

Customer Satisfaction

Governance & Compliance

Globalization Service Delivery

Process Standardization Labor Mix Acquisitions

Harmonization

Operational Agility

Depth of Integration

Geographical Scope

Automation

Process Quality

Data Accuracy

Policies & Procedures

Risk of Errors


Drivers for Shared Services

What we understood based on that!

Automation is the only way to

significantly reduce cost of

Finance

System complexity and

heterogeneity of IT landscapes

should not hinder to start right

now

Transparency is key – what,

when, by whom, why, …


Document System

Finance

Text Editor

Ticketing System

Outlook

Excel

Power Point

Communication

System

10 60

Access the parked

invoice document Receive call

Create response &

spell check/format

Update the

back-end

system

Verify

identity

Respond to

the ticket &

categorize

Evaluate self performance &

generate management report

Create

ticket

180 300 360 480

* SAP Study

500 600

Total Time

Spent -

10 minutes

Service Delivery Without Automated and Integrated

Orchestration Technology

Cumulative Time

(seconds)


Shared Service Delivery

Best Practices for the Service Center Infrastructure

Generalists

Interaction Center Maximum

use of Self Service

Applications

Flo

w o

f W

ork

in

to t

he

Sh

are

d S

erv

ice

s C

en

ter

Maximum Automation

Of Core

Processes

Use of

Applications to enhance Communication and

Case Management

Best

Practice

SSC

Operations

Governance Cockpit


Delivery Platform – Communication

Consistent Working Environment


Delivery Platform – Self Services

Addressing the Comfort Zone

Mobile Platform and applications

for mobile field enablement

Kiosk Enable self-services on

kiosk systems

Duet and Alloy Access to SAP software

through Microsoft Office/

IBM Lotus Notes

Portal Extend the process to

casual users

Widgets

Phone Voice recognition

SAP Interactive

Forms software

by Adobe


Delivery Platform – Process Automation

Full Integration Front End – Back End

Please release internal order 400397

Mrs. Whang

Shared Service Frontend Back-End Systems

Access to data from

back-end systems to

solve service requests

Events within back-end

processes trigger

service requests




Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting


Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative



Audit



Responsibilities and Focus Areas for Receivables

Management

Automated, integrated, and collaborative customer to

cash processes ensure efficiency, effectiveness, and

robust cash flow.

Credit Manager

Bad debt as % of

receivables

Canceled sales

Amount of AR write-offs

Credit Evaluation and

Management

How do I improve the speed

and accuracy of credit

checks?

Billing Manager Collections Manager

Days Sales Outstanding

(DSO)

Cost of AR as % of

revenue

Bad debt as % of

receivables

How do I speed collections,

reduce DSO, and the cost

of managing receivables?

Accounts Receivables

and Collections

Speed of billing process

Cost of billing and

invoicing as % of revenue

Billing & Invoicing

How do I improve the speed

and accuracy of bills and

invoices?

Dispute Manager

Number of bills and

accounts in dispute

Average dispute duration

Cost of dispute resolution

as a % of revenue

Dispute Resolution

How do I streamline dispute

processes to ensure

fairness and consistency?

CFO / Head of Finance


Receivables Management

SAP Receivables Manager on SAP HANA



SAP Customer Financial Fact Sheet



SAP Working Capital Analytics, DSO Scope on SAP HANA




Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting


Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative



Audit



e.g. OCR Option for

SAP Invoice Manage-

ment by OpenText

Payment

e.g. SAP Invoice Management

by OpenText

Invoice

Recognition

Invoice Processing

SAP Business Suite

ERP (FI/AP)

Automated reconciliation and posting

Collaborative Invoice-to-Pay

Increased Automation based on deep Integration

S A P I n v o i c e t o P a y

e.g. SAP Archiving by OpenText

Document Archiving & Viewing Fax

FAX Document

Scan

e.g. SAP

Archiving -

Enterprise

Scan

Paper

$ € Y

eMail

SAP II

EDI

cXML

CSV

Supplier Portal

Ariba Network – Buyer Portal

P2P Docs Discounting Supplier

Enablement

98% Clean Invoices

P2P Docs

and status

The Ariba

Network


The Ariba Network

An obvious Business Case

Seller Value Buyer Value

Sourcing

Procurement

Process

AP Process

Compliance

Cash & Discount

Mgmt

3-9%

Process

Savings

€3-20

Savings/

Document

1-8%

Spend

Savings

Faster

Payment

AR Process

Processing

Orders

Sales & Marketing

Increased

Revenue

15-75%

Time

Savings

15-75%

Process

Savings

5-32%

Revenue

Increase

Source: Ariba customer surveys and interviews

The Ariba

Network

Total Savings




Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting


Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative



Audit



Real Estate Lifecycle Management

What is it all about?

Construction Investment Planning


Maintenance

Lease & Use Administra-

tion

Sales & Marketing

incl. Tenant Administra-

tion

Sustainability


Aligning Stakeholders to Achieve

Collaborative Real Estate Lifecycle Management

Effective Real Estate Lifecycle Management requires alignment all involved units.

How do I get a better property

portfolio insight?

How do I increase my

property portfolio profitability?

How do I set sustainability

goals in building operations?

Head of Real Estate

Head of Real Estate

Level of transparency of

portfolio, processes and

spending

Return on investment

Sustainability index

How can I analyze the portfolio

performance?

How do I make better

investment decisions?

How do I keep my construction

projects on track?

Asset Manager

Portfolio & Construction

Management

Level of transparency of

processes and spending

Quality of decision process

Project time, scope, cost

and quality in plan

How do I drive lease

administration more efficient?

How do I improve corporate

workspace utilization?

How do I comply to different

legal standards?

Lease & Space

Management

Property Manager

Administrative overhead

costs

Lease income/expenses

Timely rent escalation

Workspace utilization

Compliant postings

How do I keep building

operation costs under control?

How do I report on building

energy consumption?

How do I closely monitor my

maintenance budgets?

Facilities Management

Facility Manager

Operational costs

Energy consumption

Budget utilization


Real Estate Management

Real Estate Cockpit


Delivery Platform – Governance Cockpit

Operations Dashboard


Finance Shared Services

SAP Shared Services Manager Dashboard on SAP HANA


Core Processes

SAP Shared Service Framework

The Concept of the Solution

SAP Shared Service

Framework

Additional Engines


BCM

Finance

SSF FIN

Analytics

Automated and Deeply Integrated Service Delivery with

SAP Shared Service Framework

30 60

Receive call Verify

identity

Create

ticket

180 240 240 240

* SAP Study

240

Total Time

Spent -

4 minutes

Link

business

context

Access the

parked invoice

document

Respond to

the ticket

Automatic categorization &

update of back-end system

Evaluate self performance &

generate management report

Cumulative Time

(seconds) * SAP Study


Extract from Business Transformation Study

SUPPORTED KPI COMMENTS *2011

BEFORE *PER TICKET

AFTER *PER TICKET

SAVINGS *PD/YEAR

PROCESSING TIME

Receive email and create

request

95.675 tickets 76s 28s 159

PROCESSING TIME

Receive phone call and

create request with BCM

13.434 calls in

EMEA 63s 36s 13

PROCESSING TIME

Receive ESS and create

request

106.442 ESS

tickets 72s 35s 137

PROCESSING TIME

Re-opening. No follow-up

more needed

25.535 follow -

up tickets 55s 6s 44

MASTER DATA SEARCH

Inbox Search for Tickets

251.663 tickets

only one search

36s 6s 262


Shared Service Framework – End-to-End Process

Optimization for Best-Run Companies

Tools –

All in 1 place

Service requests

Multiple channels

Detailed Info

Knowledge Base

Surveys

Analytics

Checklists

Catalogs

Campaigns

Surveys

Leverage existing investment in SAP solutions

Multi-back-end capability to integrate non-SAP systems as well

Preconfigured software

Rapid delivery in as few as 5 weeks

Reasonable & transparent pricing

Fixed baseline scope

Faster time to value

Multi-

functional

Rapid

Deployment

HR

Finance

IT

Soon: Real Estate, Procurement, …

Processes & Forms

ESS on Behalf

Direct transaction launches from service request

Analytics

Business context

Master data

Adobe

Solution

Investment Integration

http://imagedirectory.wdf.sap.corp:6085/ImageLibrary/ImageDetailsView?imageId=ee375175-dde1-4029-aa1d-28a9cf625079


Summary

Selective automation of

key business processes 3

End2end orchestration of functional sub-processes

1

Orchestration of services

across multiple business

units

2

Harmonization

of business

processes

Enablement through SSF and Engines Enablement through Harmonization of business processes

Process harmonization:

Full leverage of economies of

scale

Maximized agility for growth and

M&A

Least complexity of landscape

Usually requires 3-5y for

completion

Optimization through SSF:

• Immediate leverage of large

share of economies of scale

• Increased agility for growth and

M&A

• Can be implemented within

weeks

*) Based on feedback from live SSF for Financials and SSF for HR implementation 6-12 months after go-live


Customer References for SAP Shared Service Framework

KPI Description Customer

DSM integrated Finance Shared

Services in a heterogeneous

system landscape and leveraged

Invoice Management plus

Receivables Management for

end-to-end processes

Coca Cola EMEA ensures low

TCO in 27 countries with SAP

Shared Service Framework as

business platform for Shared

Services in Finance and HR

SAP runs SAP and implements

Shared Service Framework for

Finance, HR and increases

customer service in multiple

dimensions

Source: SAP reference data base

Productivity

Quality

Customer Service


DSM Arjuna Project System Landscape




Collaborative

Finance

Operations

Treasury and

Financial Risk

Management

Accounting and

Financial Close

Manage Financial

Performance

Manage Risk and

Compliance and

Audit

Develop and

Translate Strategy

Profitability and

Cost Analysis

Reporting and

Disclosure

Financial Close

Governance

Payments and Bank

Communications

Debt and

Investments

Strategies

Financial Risk

Management

Commodity Risk

Management

Real Estate

Management

Finance Shared

Services

Travel Management

Global Trade

Services

Fraud Management

Planning, Budgeting

and Forecasting


Entity Close

Corporate Close

Cash and Liquidity

Management

Receivables

Management

Risk and

Compliance

Management

Internal Control &

Access Management

Collaborative



Answers to the Line of Business Finance to become a

Best-run Business


Driving Value through Financial Excellence in all Areas

Manage Risk

and Compliance

and Audit

Accounting

and Financial

Close

Treasury and

Financial Risk

Management

Collaborative

Finance

Operations

Manage

Financial

Performance

http://www.google.com/imgres?imgurl=http://www.totalplastics.com/assets/0000/2173/Dow-Corning-Logo_large.jpg&imgrefurl=http://www.totalplastics.com/products/122&h=500&w=500&sz=16&tbnid=k036Bj7RP4dpHM:&tbnh=130&tbnw=130&prev=/images?q=dow+corning+logo&hl=en&usg=__Zskg_612VJOGC7VAVy0mdjKrspA=&ei=XAoVS_6QBcWwlAe10p3BBQ&sa=X&oi=image_result&resnum=1&ct=image&ved=0CAoQ9QEwAA

http://www.tsocorp.com/


SAP Customers Are Driving Value Through

Financial Excellence Today

50% faster

closing cycle

20%

300%

reduction in Days Sales

Outstanding

improvement in

invoice handling

60% faster reporting

cycle time

66%

55%

less time to forecast

monthly revenue

reduction in time to

allocate product costs

?


Finance Solutions

CoE Finance Contact Person

Ralph Schoepfer Senior Director

CoE Finance

T +49 6227 7 47429

F +49 6227 7 832677

M +49 160 3603531

E [email protected]

Thank You

Documents

Achieving Financial Excellence powered by SAP How to ... to... · Credit Manager Bad debt as % of ... Accounts Receivables and Collections ... Receivables Management SAP Customer