SAP’NİN YENİ FİNANS ÇÖZÜMÜ “SAP SIMPLE FINANCE” İLE FİNANS ORGANİZASYONUNUZU GÜÇLENDİRİN

SAP FORUM İSTANBUL 2014Basit Düşün Fark YaratSAP Simple Finance

Konuşmacı Adı : Cenk Kıral

Firma Adı : SAP EMEA Finance Center of Excellence

2© 2014 SAP AG or an SAP affiliate company. All rights reserved.

AGENDA:

CHANGING ROLE OF CFO AND FINANCE

TRANSFORMATION

WHAT IS SIMPLE FINANCE ?

WHAT ARE THE MAIN BENEFITS?

IT IMPLICATIONS

BUSINESS SCENARIOS

CUSTOMER STORIES: ZURICH

INSURANCE AND SAP


Today’s Challenging World Needs

Strong CFOs

3© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3

CFO

Steward Service

Provider

StrategistVolatility

Focus

on Risk

New

Regulations

Globalization

Pressure on

Margins

Innovative

Business

ModelsCFOs are Looking for Ways to

Transform Their Organizations

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4

CFO Personal Priorities

Division of Time

CFOs are spending most of their time in their

“strategist” role and are revisiting their

“operator” role

Time spent as a strategist remains high:

Thirty-one percent of CFOs’ time is spent

working as a driver of strategy

Time spent as an operator has rebounded:

Twenty-three percent of CFOs’ time is

spent focused on finance organization's

efficiency and service levels/effectiveness

Time spent as a catalyst has declined:

Twenty-four percent of CFOs’ time is spent

working as an agent for change

Time spent as a steward has continued to

fall: Twenty-two percent of CFOs’ time is

spent overseeing accounting, control, risk

management, and asset preservation 2Q10 2Q11 3Q13

CFOs’ Division of TimeAllotment of time CFOs actually spend in each of their

four roles

Catalyst Strategist

Steward Operator

(31%)

(23%)

(24%)

(22%)

Source: Deloitte CFO Signals Survey, Q3-2013

Copyright © 2014 Deloitte Development LLC. All rights reserved.

© 2014 SAP AG. All rights reserved. 5

The Mission:ENABLE FINANCE as an OFFICE OF INNOVATION


requires

FINANCIAL EXCELLENCE

urges

FINANCE TRANSFORMATION

and

SAP Simple Finance is a greatenabler/facilitator/catalyst for this transformation


Technical Pressures Confronted by CFOs

Need for Real-Time

Analytics

Cloud Infrastructure

Drive to Lower IT Costs

Effectively Managing

Growing Data Volumes

Copyright © 2014 Deloitte Development LLC. All rights reserved.

7© 2014 SAP AG or an SAP affiliate company. All rights reserved.© 2014 SAP AG or an SAP affiliate company. All rights reserved. 7

Accounting and

Financial Close

Financial

Planning and

Analysis

Treasury and

Financial Risk

Management

Collaborative

Finance

Operations

Enterprise Risk

and Compliance

Management

Collaborative

Invoice to Pay

Travel Management

Receivables

Management

Enterprise,

Risk Management

Controls and

Compliance

Management

Access Governance

Accounting

Entity Close

Corporate Close

Develop and

Translate Strategy

Planning, Budgeting

and Forecasting

Profitability and

Cost Management

Payments and Bank

Communications

Cash and Liquidity

Management

Debt and Investment

Management

Monitoring and

Reporting

Reporting and

Disclosure

Financial Close

Governance

Commodity Risk

Management

Financial Shared

Services

Financial Risk

Management

International Trade

Management


Fraud Management

Audit Management

Finance Value Map

SAP Simple Finance

summary


SAP Simple Finance

What is it?

Finance Innovation

natively build on HANA

consumable as a managed service

from the SAP HANA Enterprise Cloud

or on-premise

available at ONE cloud subscription price (incl.

licenses, Infrastructure and application management)


Simple Finance in a nutshell

Transformative

business value

Consumer-grade

user experience

Consumable as a

managed service+ +

from real-time

analytics enabled by HANA

for all devices provided by

BI and Fiori

from the HANA Enterprise Cloud

or on-premise

Simplified and

Faster

Accounting

Processes &

Reports

(FI-CO merging)

Much More

Efficient Way of

Handling

Receivables

Overall Cash

Management

in a much

integrated

and faster

manner

KEY VALUE POİNTS OF SAP SİMPLE FİNANCE

Much Better

Optimized Closing

Process with

Significantly Faster

Results

1 2 3 4 5 Truly and

Only

Integrated

Financial

Planning

11© 2014 SAP SE or an SAP affiliate company. All rights reserved.

Setting the Scene Evolution of Finance New Innovations Sales Essentials Assets & Resources Summary

New Innovation: Financials Add-On

SAP Accounting powered by SAP HANA

Architecture

User

Experience

Processes

Capabilities

Documents based

No totals, no indices

FI CO CO-PA Single Source of Truth

Highest Granularity,

Flexible, Extensible

Significantly Faster

Optimization

Real-time Modern UX

• SAP Fiori apps

• SAP Smart Business

• SAP BO BI solutionsSAP Accounting


Choice of Deployment

Offered as a managed service in the SAP HANA

Enterprise Cloud

offered as a subscription license

targeting LE / UMM-customers via direct channel initially

Delivered via Simple Finance Add-On for Suite on HANA

Contains new Accounting and Cash Management natively

build on HANA plus enhanced ERP-BPC-integration

perpetual licenses for Accounting and Cash Management

targeting all customer segments via all sales channels

SAP Simple Finance offers complete choice of deployment (cloud,

on-premise, hybrid as it can work seamlessly with on-premise and cloud

apps) for lower IT cost and easy adoption.

Cloud On-Premise

13© 2014 SAP SE or an SAP affiliate company. All rights reserved.

What is the functional scope of SAP Simple Finance?

Legend

SAP Simple Finance (cloud enabled)

New or significantly renewed HANA solutions within SAP Simple Finance (cloud enabled)

Out of scope for SAP Simple Finance

Accounting &

Financial Close

Financial Planning

& Analysis

Treasury &

Financial Risk Mgmt.

Collaborative

Finance Operations

Enterprise Risk

& Compliance Mgmt.

Receivables

Management

Enterprise,

Risk Management

Controls and Compliance

Management

Access Governance

AccountingDevelop and Translate Strategy

Planning, Budgeting

and Forecasting

Payments and Bank

Communications

Cash and Liquidity Management

Profitability and Cost Management

Monitoring and Reporting

Entity Close

Corporate Close

Reporting and Disclosure

Financial Close

Governance

Collaborative

Invoice to Pay

Travel Management

Financial Shared Services

Debt and Investment Management

Commodity Risk Management

Financial Risk

ManagementInternational Trade Management

Fraud Management

Audit Management

Real Estate Management


Business Scenarios to position Simple Finance

In all end-to-end processes you will find areas where customers have identified pain, in particular if they are already

undergoing a process of finance transformation

Five key scenarios caught significant interest in almost all customer interactions independent of their deployment model.

End-to-End ProcessBusiness

ScenarioCustomer Pain Point

1. Accounting & Financial Close Central Journal

Multiple ERP-Systems (e.g. due to M&A)

causing high TCO and slow innovation

cycles.

2. Accounting & Financial Close Month end closeLong closing cycles and / or the ambition

to have reliable finance data at any time.

3.Treasury & Financial Risk Management /

Collaborative Finance

Working Capital

Management

High Day Sales Outstanding (DSO) and /

or Cash Flow Challenges.

4.Enterprise Risk

and Compliance ManagementProcess oversight Risk of Fraud and / or high Audit costs.

5. Financial Planning and AnalysisIntegrated Financial

Planning

Need for dynamic planning and / or

aspiration for integrated planning.


Main benefits of Simple Finance for a Customer

FI-CO merging, Closing & Receivables Processes

Financial Planning

Cash Management

Planning, Cash Management, Receivables, oCFO capability to provide Reliable & Timely Data to Business Units

Financial Closing, Reporting, COPA analysis


SAP Simple Finance: cornerstones components


SAP Accounting powered by SAP HANA

New Data Model leveraging SAP HANA capabilities

Logistics

Document

CO

Document

FI

Document

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

From …

Processing

Analytics

CO Document

FI DocumentHANA views on the fly

Pre-Defined Aggregates

Processing

Analytics

Logical document

Logistics

Document

… To


Index tables removed Aggregate tables removed

BSIS Index for G/L Accounts

BSASIndex for G/L Accounts (Cleared

Items)

BSID Index for Customers

BSAD Index for Customers (Cleared Items)

BSIK Index for Vendors

BSAK Index for Vendors (Cleared Items)

BSIM Index, Documents for Material

FAGLBSIS Index for G/L Accounts – New G/L

FAGLBSASIndex for G/L Accounts – New G/L

(Cleared Items)

GLT0 General Ledger: Totals

GLT3Summary Data Preparations for

Consolidation

FAGLFLEXT New General Ledger: Totals

KNC1 Customer master (transaction figures)

LFC1 Vendor master (transaction figures)

KNC3Customer master (special G/L transaction

figures)

LFC3Vendor master (special G/L transaction

figures)

COSS Cost Totals for Internal Postings

COSP Cost Totals for External Postings

List of FI/CO Tables Replaced by CDS Views

Remark: Special Ledger remains unchanged.


Central Journal

source system(s):

SAP (any release)

non-SAP systems

pla

n, co

nso

lidate

, re

po

rt *

Suite on

HANA

SAP HANA(platform)

ERP

central journal instance

Financials

Add-on *

process / productivity optimizations

central business transaction execution

ERP

Real-time

Reconciled

Harmonized

consolidated financial / management reporting

shared data, planning, consolidation, and reporting

* requires respective SAP products and licenses (e.g. SAP Accounting powered by SAP HANA, SAP Business Planning)

Implementation option (not a separate product) of SAP Business Suite

powered by SAP HANA with Financials Add-ons for customers with multi-ERP

system landscapes or out-of-maintenance or highly customized SAP systems

What

Dedicated central journal instance (side-car possible)

Real-time replication of finance data from SAP or non-

SAP systems onto central journal for further processing

Standard SAP Finance deployment, customer scope


What is the Central Finance scenario about?

What is it?

• Single SAP Simple Finance system

on top of existing system landscape

• Real-time replication of all finance

transactions from legacy systems

What value does it provide?

• Single Finance platform for all group

reporting, analysis and processes

• Harmonized information across group

• Flexible drill-down to line item details

• No rip-and-replace of legacy systems

SAP

ERP

SAP HANA Platform

SAP

BPC

SAP

BI

Legacy ERP Legacy ERP Legacy ERP

Central Journal

SAP SİMPLE FİNANCE

Central Finance is not a separate solution but an implementation approach of SAP Simple Finance. It

provides a central platform for group-level transactions and analysis without full ERP consolidation.

CENTRAL FİNANCE SCENARİO


SAP Cash Management powered by SAP HANA

New functional coverage

Daily Cash Operations

– Cash Positions and Short-Term Cash

Forecasting

– Bank Transfer, and Payment Approval

– Analyze Payment Details, and Payment

Statistics.

Bank Account Management

Liquidity Management

– Mid-term Liquidity Forecast

– Actual Cash Flow Analysis

– Embedded Liquidity Plan and Variance

Analysis

New Fiori (HTML5) user interface, and

KPI cockpit – SAP Smart Business for

Cash Management.

Integrated with FI, TRM, BCM (Bank

Communication Management), and IHC

(In-House Cash).


Significantly Reduced Memory Consumption

HANA data base compression

No more persistent indices and aggregates/totals

No replication to data warehouse system for operational reporting

Lower TCO and higher through-put

18,5xSmaller data footprint

observed based on real

customer data

SAP Simple FinanceCustomer Stories

Internal

Zurich runs Simple Finance


Simple Finance: measured benefits in Zurich


SAP Simple Finance @ Zurich Insurance GroupClosing Runtime Comparison


SAP Simple Finance @ Zurich Insurance GroupGeneral Accounting Runtime Comparison

SAP Runs SAP

SAP Business Suite powered by HANA

SAP Business Suite on HANA (ERP) went live in August

2013 in just 5 months

Global, single-instance system

First global Go-Live of ERP on HANA

BUSINESS BENEFITS

Financial close processes streamlined and with higher quality

SAP TOP in FAST CLOSE is the first DAX 30 company to report

Batch jobs eliminated cutting cycles to real-time (e.g. Inter/Co)

Effective collaboration between LoB’s, e.g. Receivables

Manager

Risk & compliance via real-time fraud detection management

Radical simplification of the technology stack

SAP Business Suite powered by HANA

SAP Simple Finance

Simple Finance

Simple Finance Add-On went live in April 2014 in just 55

days

Global, single-instance ERP system

First global Go-Live of Simple Finance

BUSINESS BENEFITS

Financial close processes radically streamlined with high quality

Financial Insights – Reporting with no limitations – elimination of

aggregates and indices allows full reporting flexiblity

Combined External and internal accounting

Role based user interface – easy to consume and effective to use

Business agility – Org. changes reflected in 1 day (vs. 1 week)

Soft Financial Close - Intra month where & when needed

Overview (2/2)

Overview


System enablement and transformationOur Simple Finance Add-On Journey in 2014

April 2014Simple Finance Add-On Foundation

• Technical Implementation incl. New GL

• No more aggregates / indices in FI &

CO

• First reporting scenarios

August 2014

FIORI Smart Business

• 1st Cash Management function.

• Easy to consume reporting

• New Enjoy/Web Transactions

• HANA Enterprise Search

November 2014

New functionality

• Selected Reporting Scenarios incl.

HANA view

• Merge Consulting Ledger and Profit

Center Ledger

2015+ beyondFurther automate Finance Processes

• Embedded Planning

• Merge Special Ledger

• New consolidation on sFIN

ERP ERP


SAP Simple Finance Major Values Realized

Faster Closing Process: from 1 day to 1.5 hrs

Faster Reporting Execution from 15 minutes to 1 second

(For DSO of 60 days,

3% represents 2 days =

about 150K€ for 1B€ company,

3% cost of money)

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

Contact details:

CENK KIRAL

Vice President of Finance Solutions

SAP EMEA Finance Center of Excellence

[email protected]

+34.606.06 12 61

Technology

SAP’NİN YENİ FİNANS ÇÖZÜMÜ “SAP SIMPLE FINANCE” İLE FİNANS ORGANİZASYONUNUZU GÜÇLENDİRİN