Perceptive Finance - Analytics

Latest Analytics Solutions from SAP to Empower the Finance Team – Perceptive Finance Henner Schliebs SAP

©  2013 SAP AG. All rights reserved. 2

Agenda

Describing the new normal for CFOs

Introducing financial excellence

Elaborating on financial analytics

Experiencing solutions

Wrap-up


Increased Globalization §  Expansion into new markets §  Global process standardization §  Localization requirements

Economic Volatility §  Volatility in markets §  Decreased stock valuation §  Slow economic growth

The Realities of the “New Normal” for Finance

Pressure on Margins §  Profitability by segments §  Decreased budgets and spending §  Determination of the cost to serve

Focus on Risk §  Financial risk and fraud §  Commodity risk §  Social sentiment affects brand value

New Business Models §  Shared services organizations §  Business partnerships §  Leveraging big data for decisions

Regulatory Changes §  Increasing disclosure requirements §  Country-specific regulations §  Industry-specific disclosures

Look at generic solution overview template (I can provide), none of them seem to follow this format – would seem

option 2 or 3 are most appropriate for us. This version has such small print


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

Source: SAP Benchmarking Services

Best Run Finance Organizations have …

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

Best Run Companies Can Achieve Financial Excellence


And a Greater Role for Finance in Creating Value

Despite a continued focus on cost control, many CFOs are considering strategies to grow revenue.

There is also a desire to increase their involvement in strategic decisions in their companies. CFO Global Insights Dec 2010 Deloitte

“

”

�  Cut costs �  Conserve cash �  Pay off debt

2008-2009 �  Grow revenues �  Use cash �  Optimize costs

2010-2013


Agenda





Wrap-up


Greater Expectations of Finance

Key CFO priorities

Internal External

Ensure Regulatory Compliance and Effective

Risk Management

Deliver Superior Service at Reduced Cost

Outperform Financial Objectives and Create Sustainable Value


How Finance Can Run Better


Risk Management



Streamline financial functions and provide self-service reporting and

analysis

Shorter time to close books

% of time spent of working with the 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 penalties for non-compliance

Minimize risk of financial restatements


Real Estate Lifecycle Management

Receivables Management

Invoice to Pay

Travel Management

Shared Services

Our Solutions for Finance

Treasury and Financial Risk Management

Manage Enterprise Risk and Compliance

Accounting and Financial Close


Risk Management


Manage Financial Performance


�  Strong cash flow and liquidity �  Compliant and accurate financial reporting �  Maximized profitability

SAP’s comprehensive portfolio of applications and end-to-end processes help you achieve Financial Excellence

�  Reduced cost of finance �  Partnering with organization to drive

value

Achieve Financial Excellence � Ensure Regulatory Compliance and Effective Risk Management � Outperform Financial Objectives and Create Sustainable Value � Deliver Superior Service at Reduced Cost



Agenda





Wrap-up


Improve Financial, Operational, and Managerial Processes while Driving Profitability and Growth


Proactively manage enterprise risk and

compliance at reduced cost


Provide timely and accurate financial and regulatory reporting


Seize and fund business

opportunities as they arise, while avoiding financial

risks

Collaborative Finance

Operations Improve finance efficiency and

deliver superior service at reduced

cost

Manage Financial

Performance

Outperform corporate financial

objectives and create sustainable

value

Achieve Financial Excellence With Financial End-to-End Processes










risks




cost

Manage Financial

Performance



value FINANCE ANALYTICS

Achieve Financial Excellence With Financial End-to-End Processes (cont.)

Improve Financial, Operational, and Managerial Processes while Driving Profitability and Growth


Manage Financial Performance Driving Business Results through Intelligent Finance









risks




cost

Manage Financial

Performance




Margin Management

Predictive Finance

Finance Intelligence

Embedded Analytics

HANA live for Finance

Operational Finance

Reporting

Drive Decisions and actions for greater

revenue

Improve Control and respond to maximize profitability

Optimize Refine and tune for long term

sustainability


Accounting and Financial Close Driving Business Results through Intelligent Finance









risks




cost

Manage Financial

Performance




Finance Intelligence Embedded Analytics HANA live for Finance Operational Finance Reporting

Control Compliance and transparency

Execute Speed and efficiency

Analyze Insight for better decisions


Treasury and Financial Risk Management Driving Business Results through Intelligent Finance









risks




cost

Manage Financial

Performance




Commodity Risk Analytics Embedded Analytics HANA live for Finance Finance Intelligence Operational Finance

Reporting

Control Seamless End-to-End

Compliance

Execute Agility with Simplicity

Predict Instant Insight to Action


Collaborative Finance Operations Driving Business Results through Intelligent Finance









risks




cost

Manage Financial

Performance




Finance Intelligence Embedded Analytics HANA live for Finance Operational Finance Reporting

Control Insight to Action

Transform Drive business value

Deliver Excellence in Finance


Manage Enterprise Risk and Compliance Driving Business Results through Intelligent Finance









risks




cost

Manage Financial

Performance




Fraud Management Embedded Analytics HANA live for Finance Finance Intelligence Operational Finance Reporting

Assess Seamless End-to-End

Assessment

Execute Agility with Simplicity

Decide Instant Insight to Action


Agenda





Wrap-up


New Technologies Help CFOs Better Address Their Challenges

Mobility Cloud In-Memory

FINANCE ANALYTICS


Empowering More Efficient Finance with SAP on HANA

The Most Modern Platform for Real-Time Financial Excellence

Real-Time Financial Close

Real-Time Finance

Operations

Real-Time Treasury

Management

Real-Time Compliance

Real-Time Performance Management


Mobile Finance Is Already a Reality Today

Payment approvals

Manage departmental spend

Customer credit and payment information

Dashboard analysis, including net margin

Travel expenses

Approve system access

Manage KPIs and strategic initiatives


Where to Find More Information

Analytics applied to Finance: www.sap.com/appliedanalytics

Experience it yourself at our new CFO and Finance Leadership Center by visiting: www.sapcfo.com

And subscribe to the monthly newsletter: www.sap.com/finance-newsletter

Follow us: https://twitter.com/sapanalytics

Follow me: https://twitter.com/hschliebs

Thank You! Contact information: Henner Schliebs Analytics Solution Marketing [email protected] @hschliebs


Net Margin Analysis (HANA / Non-HANA)

Current Customer Situation �  No chance at identifying which customers and products are destroying your profit �  Difficult determining which process costs can be reduced �  Hard analyzing profitability impacts consistently across your organization �  Lack of rebalancing product mix to achieve higher profitability

Description �  SAP Net Margin Analysis provides pre-built and customizable dashboards and

reports to analyse net margin and cost to serve across dimensions

Value Proposition �  Better manage and reduce process costs �  Increase margins by segmenting your customers, products, sales territory, sales

channel based on the impact they have on profitability �  Increase revenues by identifying the amount of monthly revenue that is “left on the

table” due to customers with net margin below the customer segment average

Outcome Opportunity �  Improve your revenues �  Reduce opportunity costs and profit-destroying customers �  Manage and optimize margins

SAP BusinessObjects BI solutions SAP Profitability and Cost Management

SAP Predictive Analysis SAP Net Margin Analysis


Predictive Finance (HANA/Non-HANA)

Current Customer Situation �  Lacking sophisticated, forward-looking capabilities �  No support for data mining and predictive modeling for financial measures �  Weak support for operational departments in regards to financial impact analysis �  Needing a solution to support cash flow optimization

Description �  Predictive Finance is a solution that helps the finance department uncover

potential improvements to the company’s performance by delivering rich data mining and predictive modelling capabilities to business users

Value Proposition �  Reach your business goals faster by turning dormant data into new opportunities �  Stay agile and gain a competitive edge with efficient forecasting and planning �  Solve problems before they happen by exposing hidden risks and hazards

Outcome Opportunity �  Improve your planning processes with advanced analytics to take action before

gaps come up �  Focus on the most profitable areas to increase margins with decision support �  Predict your most influential B/S and P/L positions with sophistication to

outperform your goals

SAP Predictive Analysis SAP Lumira

SAP CO-PA Accelerator SAP BI Suite


Finance Intelligence (HANA/Non-HANA)

Current Customer Situation �  Official reporting processes are not flexible and require IT for changes �  Ad hoc analyses are cumbersome �  Hard to include non-Finance data in analyses to support operations

Description �  The solution provides business users in financial departments with the tools to

easily visualize any kind of data from any source without the need of IT expertise. Merging data sets, sharing models with colleagues and even external constituents, and showing results rather than excel tables make it a must for every employee.

Value Proposition �  Ad hoc visualizations in seconds speed up decision making processes and help in

urgent situations to prevent loss of funds �  Streamline decision making by taking out the IT perspective to operate more

efficiently

Outcome Opportunity �  Flexible financial analyses and support for operations �  Collaborative finance crossing departmental borders makes the organization aware

of financial impact of decisions

SAP BusinessObjects BI solutions SAP Lumira

SAP Explorer


Embedded Analytics (Non-HANA)

Current Customer Situation �  Important business content is hidden in tables in your ERP �  Cumbersome reporting processes �  Reporting embedded in transactional processes is non-existent or inflexible

Description �  Embedded Analytics in the Business Warehouse deliver standard content that is

easily consumable by transactional users directly when needed to make important decisions

Value Proposition �  Improve cash through visibility into and control over cash flows and forecasts to

manage cash, ensuring the enterprise has liquidity to fund its operating activities �  Improve order to cash processes through an increase of the financial visibility to

your customer base �  Enable the Dispute Manager to reduce DSO and increase customer profitability �  Get a 360° overview about the company’s financial situation

Outcome Opportunity �  Contextually answer questions when they arise: during the transactional process �  Improve decision making processes

SAP BusinessObjects BI solutions SAP BI Foundation RDS


Operational Reporting with SAP HANA

Current Customer Situation �  Business performance is affected by inability to perform timely reporting on

operational data stored in SAP ERP �  Reporting of operational data is too time consuming or impractical, resulting in

sub-optimal business decisions �  Extremely large volumes of detailed transactional data exist in operational ERP

systems, but access to up-to-date, summarized information is also crucial

Description �  This rapid-deployment solution enables real-time operational reporting with

access to massive amounts of detailed and summarized operational data to increase productivity with flexible and graphical self-service analytics

Value Proposition �  Speed up operational reporting with best-in-class Business Intelligence, powered

by SAP HANA �  Instant insights into your financial and financial-oriented purchasing or data

provide a basis for optimal decision making

Outcome Opportunity �  Accelerated Reporting and Analysis �  Accelerated Period-End Closing Processes

SAP BusinessObjects BI solutions SAP Profitability and Cost Management

SAP Predictive Analysis SAP Net Margin Analysis


HANA Live for Financials

Current Customer Situation �  No base for decision making, as data is spread all over ERP �  No predefined analyses models for Working Capital

Description �  HANA Live for Financials provides the content for sophisticated analyses, as well as

out-of-the box analyses around cash and invoice and goods received reconciliation

Value Proposition �  Rich content provision for controllers, treasurers, accountants, and financial

analysts, as well as Executives �  Combines all finance data to provide the basis for advanced analyses with SAP BI

Solutions �  Analysis across organizational hierarchies, time trends, and drilldown into

transactional details for root-cause analyses �  Specific applications out of the box, like working capital analysis to optimize KPIs

(like cash conversion) or goods/invoice receipts reconciliation Outcome Opportunity �  Fact-based decisions for everyone �  Excellence across all finance processes �  Outperform your financial objectives

SAP BusinessObjects BI solutions SAP Lumira (aka Visual Intelligence)

SAP HANA live applications


Commodity Risk Analysis (HANA)

Current Customer Situation �  Measuring and reporting overall commodity position changes geographically �  Risk compliance analysis across commodities and locations �  Lack of a high-level overview of commodity exposures and financial derivatives

Description �  The solution provides your organization with instant visibility into commodity risk-

related information across multiple lines of business. This enables your business to appropriately address commodity position risks at all levels.

Value Proposition �  Better decision making through a geographical overview of net open commodity

positions �  Efficient process through highlighted risk compliance across all commodities �  Minimize risk by analyzing commodity exposures and related financial derivatives

Outcome Opportunity �  Improve your visibility on commodity positions �  Keep compliance risk to a minimum �  Increase transparency by providing views on exposures with and without hedging �  Provide in-depth analysis of commodity positions by time period and location

SAP BusinessObjects BI solutions SAP Commodity Risk Management

SAP Commodity Risk Analysis


Fraud Management (HANA)

Current Customer Situation �  Revenue loss related to fraud �  Cost/results ratio of dealing with fraud �  Manual, inefficient, slow, and inaccurate investigation process

Description �  The solution provides real-time detection that leverages the power of HANA with alert

notification and management features for the fraud team, and helps minimize false positives through real-time calibration and simulation capabilities

Value Proposition �  Perform analyses of fraud patterns based on historical data; design how fraud is

going to be detected �  Set up and fine tune detection criteria, using simulations and the calibration tool

provided within your department �  Run fraud detection and perform investigation on the resulting findings in real time Outcome Opportunity �  Detect fraud earlier to reduce financial loss �  Improve accuracy of detection at less cost �  Prevent and deter fraud situations

SAP Fraud Management SAP BusinessObjects BI solutions

SAP Predictive Analysis


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