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General Session: Finance Takes Control and Transforms with the Cloud Eric Adams, Managing Director, Deloitte Consulting LLP Kevin Byrne, CFO, Millennium Management LLC Dee Houchen, Snr Product Marketing Director ERP GTM, Oracle
Presented with
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Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Change is the New Constant
4
Ability to Respond
Pace of Change
88% of organizations are undergoing some type of transformation today
Since 2000, 52% of companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist
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A warning to execs At current churn rate, 75% of the S&P 500 will be replaced by 2027
61 Years
18 Years
25 Years
1958 1980 2010+
Average Longevity
Corporate Longevity in the Digital Age
Source: Innosight, Creative Destruction Whips through Corporate America
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IF YOU’RE NOT DISRUPTING, YOU’RE BEING DISRUPTED
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New Paradigm
Cost & Quality
Command & Control
Process & Transactional
OPERATIONAL EFFICIENCY
OPERATIONAL AGILITY Growth & Speed
Learning & Adaptive
Collaborative & Analytical
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• Finance still spends 78% of its time on transaction processing4
• 76% of business leaders say their current on‐premises ERP system does not meet their needs5
• 67% of companies surveyed said the proliferation of spread-sheets makes it difficult to perform analysis
• Only 36% use scenarios and “what-if” analyses to re-check possible outcomes of a strategy1
• Adverse opinions have increased 45% from audits of internal controls2
• $1 million+ average spent on SOX compliance costs, because of increased external auditors scrutiny3
• Transactional tasks will move to integrated business services solutions that use robotics,
which will automate or eliminate up to 40% of transaction accounting work by 20206
• By 2020, finance staff spend more time—up
from 25% to 75%—on decision support,
predictive analytics and performance management6
• 70% of organizations state that they have a strategy going forward for GRC integration and those that indicate they are leading their organizations GRC strategy the preference for
SaaS grows to 45%7
Data-Driven Decisions Still Elusive
Complacency with Compliance
Complex Legacy Systems and Environment
Barriers to Operational Agility FUTURE CURRENT CHALLENGE
1 APQC Financial Planning and Analysis, 2015 2 “Current Issues, Trends, and Open Questions In Audits of ICRF”, PCAOB, 2015 3 Protiviti SOX Compliance Survey. 2015 “ ”
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Leading CFOs will embrace external influences as a catalyst for change
Continued Cost Pressures
Regulatory Compliance
Business Strategy Change
Clients continue to be challenged
by legacy cost structures and
subpar cost ratios
Remaining agile to respond to
uncertain change
Reshaping Finance to align to the
Businesses they serve
Forward looking CFOs…
Stagnant top-line growth has
continued to challenge clients to
reduce their legacy cost structures
and improve their efficiency ratios
A substantial amount of CFOs
cite industry-specific
regulation as the top
impediment to growth
Multiple business environment
factors are impacting Finance,
business line divestitures, creation
of Service Companies and Legal
Entity rationalization
Description
Finance is at the center of corporate-
wide programs to reduce cost and are in
many cases playing a leadership role to
enable organizations to adopt a “cost
conscious culture”
Finance develops flexible foundational
systems, and adopt regulatory processes
as enhanced business practices
Use business mix change as a catalyst
to enhance their entire operating model
and eliminate unnecessary outputs,
streamline and automate processes,
improve spans of control and upskill
their talent base
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Leading CFOs will embrace external influences as a catalyst for change
Forward looking CFOs… Description
Policy Change Adoption
Strategic Response to Technology
Disruption
Impacts go well beyond policy to
include process, technology and
enhanced data requirements
Embracing the new capabilities to
transform
CFO’s have recently been
confronted with adopting a myriad
of Accounting and Regulatory
Policy changes
Integrate the management of Regulatory
and Accounting policies and create
processes that are nimble enough to
adapt to changing requirements
Seize disruption as an opportunity and a
means to reinvent the Finance function
through innovative uses of technology to
reduce costs by significantly automating
processes as well as adding value
through advanced analytics and
visualization capabilities
Innovative Technologies such as
Cloud, Robotics Process
Automation, Cognitive
Computing, and Advanced
Visualization are providing
opportunities to significantly
transform Finance
Revenue Growth and Capital
Constraints
Managing through a challenging
economic environment
Decisions around Business Strategy,
Organic Growth, and Inorganic Growth
were some of the top areas that CFOs
said their executive teams struggled
with most
Develop internal capabilities to identify
viable options for organic and inorganic
growth and evaluate the relative costs,
benefits, and capital consumption
implications
Copyright © 2016 Deloitte Development LLC. All rights reserved. 11
What’s next for the CFO across these eight critical areas
CFOs can create a consistent capital
allocation framework that aligns with
business strategy, develop internal analytical
capabilities to identify options for growth
Finance partners with front office and operations teams to
create straight-through processes that reduce cycle times
and improve data quality
Integrate Risk with Finance, implement flexibility into
systems/processes, strengthen existing corporate governance
and manage regulatory relationships
Invest in capabilities to provide
advanced analytics in cost
management, profitability and capital
consumption
Clarify organizational priorities with executive
team, rationalize current portfolio of change
initiatives and sharpen existing governance
capabilities
Define a concrete achievable vision that is consistently
understood and the business to gain support upfront and
through the transformation journey
Identify skillsets and mindset required to successfully partner
and work with the business leaders to define priorities
focusing on the highest value efforts
Identify talent needs, develop skillsets that
range from strategic agility to critical thinking
and create personalized talent
attraction/retention programs
CFO
critical
actions
by focus
area
Overall
organization
Within finance function
Growth and
capital
allocation
Operating
ecosystems
Regulatory and
compliance
obligations
Analytical
insight
and value
creation
Finance
talent
Business
partnering
Finance
operating
model
Business
change
portfolio
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Strategy for Modern Finance
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External Data Mart
Batch Reporting
Data Gathering
Limited Forecasting
Manual Spreadsheet-based Budgeting
Native Multi-Dimensional
Embedded Intelligence
Data Driven Decision Making
Advanced Scenario Modeling
Enterprise Planning & Budgeting
Traditional Finance Modern Finance Benefits
Transaction-centric Digital Back Office
On Premises Cloud
Proactive and Forward Looking
Improved and Faster Decisions
Increased Participation and Accuracy
Real-time Information Access
Reduced Risk
Collaborative, Intuitive and Mobile
Agile, Innovative and Lower TCO
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The “Future” Finance Organization
Source: Finance 2020: Death by digital The best thing that ever happened to your finance organization, David A.J. Axson, 2015
MANAGEMENT INSIGHT
COMPLIANCE & CONTROL
OPERATIONAL AGILITY
Analytics Competency
• Analytics “gurus” do more than analyze financials
• They assess product, customer, expense and project trends
Communications and Control
• These centers focus on control, compliance, communications and risk management
• They consolidate the fundamentals of finance—statutory accounting, compliance, tax, treasury and investor relations
• The centers are nimble, responsive and cost-effective, aligning specialized teams around streamlined work processes
Integrated Business Services
• These teams deliver complete services to employees, customers and suppliers across functions
• They bundle accounting and transaction processing typically performed by finance with tasks from other business areas
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What Accelerates Companies to the Cloud? Buying Triggers
OPERATING EFFICIENCY
CONFIDENT GROWTH
DIGITAL MODEL
On-Premise upgrade Avoidance
Shared Service Initiative
Multi-ERP Rationalization
LOB Strategy
Infrastructure Investment Avoidance
X X
Global Expansion
New Market Entry
Mergers & Acquisitions
Scale & Hyper-growth IPO
Operating Model Shift
Mobile Enablement
Social Collaboration
Revenue Management
Subscription Billing
Subsidiary Strategy
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Finance Journey to Cloud: Transform Your Way
PLAN TO REPORT
SOURCE TO PAY
ORDER TO CASH
PROJECT MANAGEMENT
Purchasing | Inventory
Order Management
CORE
Financial Reporting Compliance
Sourcing and Contracts
Configure, Price, Quote
Project Execution Management
Enterprise Planning and Budgeting Narrative Reporting
Supplier Qualification Management
INDEPENDENT SERVICES
Account Reconciliation
Revenue Management
Financial Close & Consolidation Advanced Financial Controls
Fin
anci
als
Self-Service Procurement | Supplier Portal
Travel and Expense Management
Advanced Collections
Project Financials
Grants Management
CORE-DEPENDENT EXTENSIONS
INSIDE OUT
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Finance Journey to Cloud: Transform Your Way
PLAN TO REPORT
SOURCE TO PAY
ORDER TO CASH
PROJECT MANAGEMENT
Financial Reporting Compliance
Sourcing and Contracts
Configure, Price, Quote
Project Execution Management
Enterprise Planning and Budgeting Narrative Reporting
Supplier Qualification Management
INDEPENDENT SERVICES
Account Reconciliation
Revenue Management
Financial Close & Consolidation Advanced Financial Controls
Existing Legacy Core
Applications
Self-Service Procurement | Supplier Portal
Travel and Expense Management
Advanced Collections
Project Financials
Grants Management
CORE-DEPENDENT EXTENSIONS
OUTSIDE IN
Purchasing | Inventory
Order Management
CORE Fi
nan
cial
s
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Finance Journey to Cloud
CORE
CORE-DEPENDENT EXTENSIONS
INDEPENDENT SERVICES
BUILD A DIGITAL CORE INNOVATE AT THE EDGE
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Finance is Embracing the Cloud
500+ new features in latest releases
22 industries
1000+ go lives
2,800+ customers
60+ countries
6k consultants trained
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Finance Takes Control and Transforms with the Cloud
Eric Adams, Deloitte Consulting LLP, Managing Director, FSI Oracle Lead
Kevin Byrne, CFO, Millennium Management LLC
Dee Houchen, Snr Product Marketing Director ERP GTM, Oracle
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Agenda
Oracle & Deloitte
Trends in Finance
How is ERP in “the Cloud” different than on-
premise ERP solutions?
What should your Cloud Approach look like?
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Driving business value enabled by world class software and implementation services
Oracle Corporation and Deloitte Consulting
#1 First Oracle partner to achieve Global Cloud Elite ranking
#1 Diamond Partner: Expertise in over 30 Oracle specializations
#1 Business technology transformation by Forrester Research Inc.
Deloitte
Oracle
practice
started
Exclusive
testing
partner for
Oracle Cloud
business
Ranked
No.1 NA
Systems
Integrator
Cloud
Applications
—Ramp-Up
HCM Cloud
Application
QA Testing
HCM Cloud
Early Adopter
Program
Marquee
HCM
Cloud
partner
Ranked #1
Cloud
Partner by
Oracle
Ranked #1
Cloud
Partner by
Oracle
Awarded
Global
System
Integrator of
the Year
8+ years experience working with Oracle Cloud Applications
1993 2007 2008 2009 2010 2011 2012 2013 2014 2015
Largest Oracle ERP Cloud implementation in the world at HSBC
First Oracle ERP Cloud implementation in higher education at Rutgers University
Largest Oracle HCM Cloud implementations at Wells Fargo, Macy’s, and L Brands
Cloud Transformation Excellence Award 2014 and 2015*
Trends in Finance
25
Cloud
(Federated, loosely coupled
ERP environment)
ERP Suite
(Monolithic)
Research
Mngt. OM Mfg.
FA GL Payroll
AR AP Inv.
Point Solutions
(Limited/manual interfaces
between systems)
Payroll
(Outsourced)
GL/AP/FA
Research
Management
Collections/
AR
IaaS
PaaS
IaaS
GL, AP
AR, AM
T&E
Talent Mgt.
CRM
E-Procure
Payroll
HR
PB&F
SaaS
Solution
GL
, A
R
AP
, A
M
HR
Ta
len
t
Pa
yro
ll
Ma
nu
fac
turi
ng
Sys
tem
Pro
cu
rem
en
t
PaaS
SaaS
Pre-1997 Best of Breed
1998–2014
Modern ERP
2015 +
Post-Modern ERP
2015 +
The New Modern
Cloud strategies are evolving to become an increasingly integrated part of a company’s core suite
of enterprise technologies.
Cloud strategies are evolving
Cloud and On-Premise Contrast
27
Key business differentiators between on-premise ERP and ERP Cloud relate to cost and flexibility
What is so different about ERP Cloud?
Simple, Global Access
Integrated and web-enabled; can deliver
anytime, anywhere access to the user, ensuring
one version of the truth
Superior Economics and TCO
Cloud’s pay-as-you-go model, which includes
the cost of system upgrades, makes it easier to
predict IT and operational business costs
Improved Scalability
Provides a flexible platform that can grow or
shrink as needed, enabling businesses to
explore new markets, pursue new innovations
and serve new customer segments
Innovative and Current Solutions
Continuously make available important updates
and new innovations through periodic updates
rather than major upgrade projects
Enhanced Security
Leverages economies of scale to provide
leading security; maintains highest standards
for auditability; both are a necessity to ensure
brand success
Reduced Time to Value
Decreases time to implement and deploy new
capabilities, resulting in improved resource
utilization, system adaptability, and a focus on
value rather than maintenance
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The increased implementation speed in the Cloud leaves little time to course correct; therefore, the
following principles should be applied to your transformation effort
What considerations are important to my implementation?
Begin with business processes Start by aligning business processes with leading practices
and support these processes with technology instead of
the other way around
Advance with accelerators Leverage pre-defined solution approaches with
accelerators and tools that minimize the impact of
implementation activities on the business
Allow time for Oracle SR resolution Remember the infrastructure is now managed entirely by
Oracle, which requires working through the Oracle SR
process to resolve system bugs
Engage Super Users early and often The best step to a success is having key users involved in
design and testing activities as these users have credibility
in the field and are critical to widespread adoption
Make data a priority Prioritize data conversion and begin testing data loads
early as troubleshooting and resolving data issues within
upload templates can be time consuming
Governance and rigor are still necessary ERP Cloud allows acceleration of implementations and the
pace of work can sometimes be intense, making it even
more critical to maintain the right discipline
Take a structured approach to testing Like a traditional on-premise ERP solution, implementing
ERP Cloud requires a structured and comprehensive
testing methodology driven by business processes
Define success criteria up front Cloud capabilities only makes sense if the business value
is realized – define the expectations up front and manage
the project to deliver on those goals
Cloud Approach
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Clients are investing in Oracle ERP Cloud to gain ROI by driving value for their business
When should I consider ERP Cloud as an option?
Business Transition Points
• Business Consolidation
• Acquisition
• Divestiture
• Significant Business Model
Change
• IPO Preparation
• Business Transformation Mandate
(e.g., increase working capital)
System Transition Points
• Legacy Platform Support
Termination
• Costly Upgrade Alternative
• Cost Reduction for Customized
Solution
• System Consolidation
• Data Center Consolidation
• Support Cost Reduction
• Strategic Infrastructure Cost
Planning
Business Value
• Cost Reduction Enabled by Business
Process Automation and Lowered
Total IT Cost
• Revenue Growth Enabled by Greater
Customer Insight, Improved Pricing,
etc.
• Revenue Growth Enabled by
Enhanced Customer Experience and
Customer Satisfaction.
• Improved Working Capital: AP / AR /
Inventory / Cash Days Outstanding
• Enhanced Cash Flow and/or Better
Asset Efficiency
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Depending on your particular progress on the journey, we recommend you assess readiness,
business value, and your approach by following our Cloud Transition Lab framework
How do we help clients begin their journey to the Cloud?
Become Cloud Aware
Initiate Cloud Journey
• Adoption Readiness
• Operating Model Review
• TCO Analysis
• Business Value Identification
Identify Choices
Define Cloud Deployment
• Value-based Assessment
• Shareholder Value Analysis
• Business Transformation
Opportunities
• Cloud Enabler Mapping
Make Decisions with Confidence
Define Execution Plan
• High Level Roadmap
• Deployment Timeline
• Business Case
• Next Steps
32
Copyright © 2016 Deloitte Development LLC. All rights reserved.
36 USC 220506
Member of Deloitte Touche Tohmatsu Limited
Eric Adams
Managing Director
FSI Oracle Lead – North America
Deloitte Consulting LLP
Thank You!
For additional information contact:
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description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations
of public accounting.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network) is, by means of this communication, rendering professional advice or services. Before making any decision or taking
any action that may affect your finances or business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
Millennium Overview and Their
Cloud Decision
34
We are a leading alternative investment partner endeavoring to make a world of difference to our
clients, partners, and the community
Who is Millennium Management?
Millennium Management is a global investment management firm founded in 1989 that manages
approximately $34.0 billion in assets as of February 1, 2016. We have more than 1800
employees working across offices in the United States, Europe and Asia.
Over the last 25 years, our mission has remained constant: to deliver the alternative investment
industry’s highest quality returns to our investors, and to maintain a commitment to our principles
of integrity, discipline and excellence.
Millennium allocates capital across a diverse set of strategies involving a variety of
predominantly liquid asset classes. The primary focus of our business is on generating high-
quality returns by engaging and overseeing a large number of specialized trading teams, each of
which pursues specific strategies. Our core infrastructure enables trading teams to pursue their
independent strategies by delivering a flexible, scalable and efficient platform within a rigorous
control environment.
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Our implementation timeline to go live
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Accelerate Your Digital Transformation in the Cloud Learn More September 19-21 at Moscone West and Palace Hotel
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