Professional Documents
Culture Documents
Public
David Ormerod
Agenda
The CFO Agenda for Finance Organizations
How SAP is Enabling Real-Time Finance
Finance Transformation At Zurich Insurance
Leveraging Real-Time Finance
Wrap-Up and Questions
Public
444
28%
Drive business
innovation
Drive business
innovation
72%
Keep the
lights on
Keep the
lights on
Forrester IT Survey, 2013
Public
Operations
Financial Planning
and Analysis
Treasury and
Financial Risk
Management
Compliance
Collaborative
Finance Operations
Accounting and
Financial Close
Receivables Management
Accounting
Enterprise Risk
Management
Collaborative
Invoice to Pay
Entity Close
Travel Management
Corporate Close
Access Governance
Financial Risk
Management
International Trade
Management
Financial Close
Governance
Fraud Management
Commodity Risk
Management
Enterprise Risk
and Compliance
Management
Audit Management
2014
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66
SAP
In-Memory
Cache
VS.
Transact
Analyze
Accelerate
Transactions + Analysis
directly in-memory
Public
77
SAP Accounting
Integrated
Business Planning
Alternative in-memory
functionality for ERP customers
Aligned
Agile
Predictive
2014
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SAP Accounting
powered by SAP
HANA
Aligned
Agile
Predictive
2014
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Characteristics
New product fully
leveraging the benefits
of SAP HANA
Only available on SAP
HANA
Installation on top of
SAP ERP replacing
the accounting in SAP
ERP
Same input and output
interfaces as in SAP
ERP
Current processes and
reporting run with little
or no changes
Public
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From
Stability
Flexibility
Customer Benefits
Harmonized internal
FI
Document
Logistics
Document
Processing
Financial Accounting
Stability
and external
reporting
Significantly
Pre-Defined Aggregates
CO
Document
To
Analytics
Management Account.
reduced
reconciliation effort
Significantly
reduced memory
consumption
Flexibility
Higher flexibility in
Processing
Logistics
Document
FI Document
CO Document
reporting and
analysis
heterogeneous
system landscapes
Logical document
2014
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Objectives
Drive a global finance transformation to align with strategic group priorities
Deliver one common consolidated accounting system for all countries
Enable highly integrated and standardized processes
Accelerate key processes like financial close and reporting
Roll out globally consistent accounting and operational procedures that
comply with company standards
Resolution
Implement a common SAP software platform, chart of accounts, and
reporting dimensions across the globe
Test and validate the financials add-on for SAP Business Suite powered
by SAP HANA
Simplify IT by removing data replications and redundancies
Benefits validated
Ability to redesign finance processes to make them simpler and allow
them to be completed on the fly
Completed a prototype for accelerating financial close processes and
reporting and to achieve greater granularity within reports
Potential to use general ledger postings directly as one source of data for
consolidation with no data replication or redundancy
Removal of restrictions on data volume, enabling a one-client strategy
Fast deployment of the add-on with limited effort
>50%
Faster runtime for foreign
currency revaluation*
1,000x
Faster reporting (from 15
minutes to 1 second)*
>65%
Faster financial close
processes*
4 hours
Saved on allocation runtime*
Public
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Public
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Runtime Comparison
Closing
Closing Process*
495
minutes
223%
257%
50%
67%
511%
1450%
188%
1667%
188%
932%
90
minutes
CO Allocation FI Allocation
Open Item
Revaluation
GL Balance
Revaluation
Open Item
Regrouping
GL Balance
Regrouping
Public
13
Runtime Comparison
General Accounting
ECC 6.0
Conclusions
Extremely fast reporting
capabilities
Idoc processing does
not show much improvement
3900%
Further Optimization
233%
7%
332%
1750%
Line Item
Report
2014 SAP SE or an SAP affiliate company. All rights reserved.
Custom
Report
Inbound Idoc
Outboud
Interface
Batch
Processing
Public
14
Performance improvement of 1200% (advantage reduces a bit due to improvements implemented on ECC6)
Enables cost controlling and reduces dependencies on additional systems for aggregation & analysis
Availability of BW Real-Time reporting directly on the FICO data base, without data extraction and time delay
will remove distrust in today reporting landscape
Powerful Line Item Browser enabling any kind of reporting over all dimensions and high volume in seconds e.g.
search over text field in 20 million records in 3 seconds
Reduction of dependencies to IT
Closing:
Simplification of closing as e.g. Rollup and BCS file generation on the Fly
Public
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15
Infrastructure
2
Copy Production
to Sandbox
Upgrade Sandbox
DB2 and install Enhancement packs
Migrate to Hana
(loan)box (HE4) and
Install the Add-on
Completed
Completed
Completed
Dec-Mar
6,7
h
2013
Sub-ledgers &
reporting
Completed
Completed
Interfaces, local
processes, rollup
on-the-fly prototype
Completed
16
Mar-Jun
2014
Sep-Oct
2014
Public
16
Account Receivables
Books Closing
Intercompany Reconciliation
Receivables Management
Real-time
28%
40%
Simple receivables
management through
integration of finance &
sales functions
Improvement on
processing time
70%
Reduction in time to
process
reconciliation issues
Reduction in GL
posting corrections
HANA
No aggregates
Increased performance
2014
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17
17
SAP Accounting
Integrated
Business Planning
Alternative in-memory
functionality for ERP customers
Aligned
Agile
Predictive
2014
2014SAP
SAPAG
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anSAP
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Public
18
18
2014
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19
19
Home
Cash Manager
Bank Statement
Success Rate
Feb 1st 2014
95.0
Cash Position
Today (M)
Cash Flow
Week-to-date (M)
Inflow
200.2
Outflow
192.5
Liquidity Forecast
Liquidity Structure
Feb 1st 2014 (M)
2,47M
1,98M
Current Account
26.0
Bank Risk
Feb 1st 2014 (M)
Investment
Debt
1.2
0.78
1.4
Payment Statistics
Today (M)
Accepted By Bank
15.7
-26.8
24%
Overdraft Limit
Feb 1st 2014 (M)
200.2
Available
200.2
In Approval
42.5
Consumed
42.5
Rejected by Bank
55.0
Exceeded
55.0
20
SAP Accounting
Integrated
Business Planning
Alternative in-memory
functionality for ERP customers
Aligned
Agile
Predictive
2014
2014SAP
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21
21
Cost
Planning
Profitability Planning
Strategic Planning
Operational
Planning
Procurement
Planning
Headcount
Planning
Sales
Planning
Price
Planning
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Production
Planning
Investment
Planning
Marketing
Planning
Revenue
Planning
Public
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Entry of planning
models and plan
data
Variance analysis
actuals vs. plan
Flexible reporting
and analysis of
actuals
SAP
ERP
SAP
BPC, BW
Customer benefits
Seamless integration of planning
into SAP ERP user interface and
workflows
No need for Data Replication
Plans developed in SAP
Business Planning and
Consolidation will be accessible
in SAP ERP for variance analysis
Fully harmonized master data
and data between accounting,
planning, and financial risk
management
End-to-end simulation capabilities
2014
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23
SAP Accounting
Integrated
Business Planning
Alternative in-memory
functionality for ERP customers
Aligned
Agile
Predictive
2014
2014SAP
SAPAG
SEororan
anSAP
SAPaffiliate
affiliatecompany.
company.All
Allrights
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Public
24
24
Any DB
SAP HANA
Financials
add-on *
Financials
add-on *
SAP ERP
SAP ERP
SAP HANA
SAP/
Other
ERP
SAP HANA
* optional
2014
SAP
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2525
Simple
Flexible
Comprehensive
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Modern Architecture
Subscription Price
Seamless E2E Experience
Rapid Onboarding
Extensible Solution
Integrates into the SAP Portfolio
Clear Service Levels
Scalable Scope Options
Highest Level Security & Privacy
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Summary
and
Overview
Summary
and
Overview
26.1%
56%
76%
Fewer days to
close the books
Fewer treasury
FTEs
Higher operating
margin
22%
3x
Lower audit
costs
44%
Lower finance
cost as % of
revenue
Fewer finance
FTEs
28
2014
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28
CFO Financial
Leadership
Center
Simple
Finance
SAP Solutions
for Finance
Newsletter
www.sapcfo.com
www.sap.com/simplefinance
www.sap.com/financenewsletter
2014
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29
Q&A
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Thank You
Contact
information:
Dr David Ormerod
EMEA CoE for Finance
david.ormerod@sap.com http://twitter.com/dormerod