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8/9/2019 Simple Finance Zurich Insurance POC Case Study
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2014 SAP SE or an SAP affiliate company. All rights reserved. 1Public
Wilco Boosman, Group FinanceProgram Manager SAP Convergence,
Zurich Insurance
Wilco is currently leading Zurichs SAP Convergence Program with the aim toimplement a common Chart of Accounts supported by a single SAP instance for theFinance functions at group and country level. The program started in 2011 and isscheduled to complete the last roll-in projects by the end of 2017. With 20 yearsexperience in various roles in Finance and IT functions, Wilco sees the current and
future challenge in financial services as the need to combine local regulatoryrequirements and group objectives in programs designed to target long-termbenefits.
Transform and Simplify Your Office of Finance.
The Webinar will start at 11:00 CEST
David Ormerod, Director EPM Solutions, EMEA CoE for EPM & LoB Finance
David has almost 20 years experience in designing and implementing EnterprisePerformance Management solutions. He has worked for a number of customer
organisations spanning a wide variety of industry sectors includingtelecommunications, financial services, media and oil & gas. In recent years he hasworked as a Solution Consultant and Technical Account Manager for severalPerformance Management software vendors including Hyperion and Oracle, prior to
joining SAP in February 2010, where he is responsible for EPM BusinessDevelopment in EMEA. David started his career as an academic in Earth Sciences,which sparked his early interest in analysis and modelling processes.
Featured speakers today are:
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Transform and Simplify Your Office of Finance
Wilco Boosman Group FinanceProgram Manager SAP Convergence,
Zurich Insurance
David Ormerod SAP EMEA CoE for Finance
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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
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2014 SAP SE or an SAP affiliate company. All rights reserved. 4Public
4
2014 SAP AG or an SAP affiliate company. All rights reserved. 4
SAP Simple Finance Supports The CFO Agenda
Maintain global regulatorycompliance and controls ofaccounting and tax standards,across currencies, languagesand industries.
Proactively engage with thebusiness to plan, model, analyzeand predict the financialimplications of strategic andoperational decisions.
Optimize finance processes forefficient and collaborativerelationships with customers,suppliers, banks, andgovernment authorities.
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76% of Finance executives believe at least half theirtime should be on high-value planning and analytic
activities
Source CFO.com Research 2013
Drive business
innovation
Keep thelights on
28%
72%
Forrester IT Survey, 2013
Drive business
innovation
Keep the
lights on
IT Complexity Places Limits on Finance
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Transforming Through Innovation and Customer Focus
Transact Analyze Accelerate Transactions + Analysis
directly in-memory
VS.
SAPs In-Memory Data Management Innovation
Providing Real-time Platform for Enterprise Applications
A common Database Approach for OLTP andOLAP Using an In-Memory Column DatabaseHasso Plattner
Cache
SAPIn-Memory
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SAP Simple Financecore component:
Financials Add-On for Suite on HANA
Business Suite on HANA
SAP HANA Platform
AlignedSingle Source of Truth
AgileReal time finance processes
PredictiveInsight and foresight
Integrated
Business Planning
New capabilities and enhancedintegration for ERP and BPC.
SAP Cash Managementpowered by SAP HANA
New product forGroup Cash Management
SAP Accountingpowered by SAP HANA
Alternative in-memoryfunctionality for ERP customers
2014 SAP AG or an SAP affiliate company. All rights reserved. 8
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Business Suite on HANA
SAP HANA Platform
AlignedSingle source of truth
AgileReal time finance processes
PredictiveInsight and foresight
SAP Accounting
powered by SAPHANA
SAPsNext Generation Accounting Solution
Characteristics
New product fullyleveraging the benefitsof SAP HANA
Only available on SAPHANA
Installation on top ofSAP ERPreplacingthe accounting in SAPERP
Same input and outputinterfaces as in SAPERP
Current processes andreporting run with littleor no changes
2014 SAP AG or an SAP affiliate company. All rights reserved. 9
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Zurich Insurance Group: Testing and Validating the
SAP HANA Platform for Finance Transformation
Company
Zurich InsuranceGroup (Zurich)
Headquarters
Zurich
Industry
Insurance
Products and Services
General and Life insurance
Employees
55,000
Profit
US$4.7 billion
eb Site
www.zurich.com
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, andreporting dimensions across the globe
Test and validate the financials add-on for SAP Business Suite poweredby SAP HANA Simplify IT by removing data replications and redundancies
Benefits validated
Ability to redesign finance processes to make them simpler and allowthem to be completed on the fly
Completed a prototype for accelerating financial close processes andreporting and to achieve greater granularity within reports
Potential to use general ledger postings directly as one source of data forconsolidation 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
Zurich wanted to be one of the first customers to evaluate the financialsinnovation delivered with SAP HANA. Deployed as a simple add-on forSAP Business Suite powered by SAP HANA, we are really impressedby the results in terms of the performance, simplification, and agility itcould bring to our f inance community.
Wilco Boosman, Director SAP Convergence, Zurich Insurance Group (Zurich)
>50%Faster runtime for foreigncurrency revaluation*
1,000xFaster reporting (from 15minutes to 1 second)*
>65%Faster financial closeprocesses*
4hours
Saved on allocation runtime*
*Results of a validation projectby Zurich.
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1. Data volume restriction will shortly violateSAP table size recommendations
2. Lack of flexibility for multi-dimensionalreporting (limitation on reporting dimensions)
3. Long running batch processes (allocation,closing and report run times)
4. Business distrust in todays reportinglandscape preventing business insights
5. Complex closing processes driven by systemlimitations and current architecture
Current Pain PointsFinancials add-on for SAP Business
Suite powered by SAP HANA1. Restriction on data volume has been
eliminated
2. Limitation on dimensions has been removedenabling higher reporting granularity
3. Performance improved by factor 24, andwith system optimizations by factor 10+
4. New tool set provides trusted real-timereporting capability e.g. during closing time
5. Closing process will be simplified andaccelerated by eliminating several closingsteps and data reconciliation
Outcome of ZURICHs Customer Validation (CuV)
The CuV and extended testing have proven that Financials add-on for SAP Business Suitepowered by SAP HANA is stable with significant benefits in higher performance for fastclosing and (real-time) reporting. The main focus of the SAP innovation is simplification,which would also address Zurichs current pain points and enables further standardizationof the system landscape and business processes.
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Runtime Comparison
Closing
CO Allocation FI Allocation Open ItemRevaluation
GL BalanceRevaluation
Open ItemRegrouping
GL BalanceRegrouping
IFRS RollupCluster
Cross Checks Download forConsolidation
Balance C/F
Closing Process*
ECC 6.0
188%
188%257%
1450%
223%50%
67%511%
1667%
932%
449% Runtime Reduction
495minutes
90minutes
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Runtime Comparison
General Accounting
Line ItemReport
CustomReport
Inbound Idoc OutboudInterface
BatchProcessing
1750%
3900%
7%
ECC 6.0
Financials add-on for SAPBusiness Suite poweredby SAP HANAConclusions
Extremely fast reportingcapabilities
Idoc processing does
not show much improvement
332%
Further Optimization
233%
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Benefits seen by local business
15
Allocation:
Performance improvement of 1200% (advantage reduces a bit due to improvements implemented on ECC6)
Improvement enables removal of aggregation cost center (PoC to follow)
This enables backtracking functionality which is the desired functionality
Enables cost controlling and reduces dependencies on additional systems for aggregation & analysis
Process simplification from 31 to 13 steps
Reporting:
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 workarounds and developments
Reduction of dependencies to IT
Closing:
Simplification of closing as e.g. Rollup and BCS file generation on the Fly
Chance for reengineering for further simplification
Proven Performance Improvements based on test results :
Batch processing 233%
Outbound Interface 200% - 300%
Local closing app 300 - 400%
Core closing processes overall 449%
Line Item Report 1750%
Business Unitfeedback
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Interfaces, localprocesses, rollupon-the-fly prototypeCompleted
Customer Validation Timeline
16
Infrastructure
Upgrade SandboxDB2 and install En-hancement packs
Completed
Copy Productionto Sandbox
Completed
Migrate to Hana(loan)box (HE4) andInstall the Add-on
Completed
321
6,7 h
Sub-ledgers &reporting
Completed
Closing Test Cases forCuV Feedback to SAP
Completed
Compile separate projectapproval documentation
Sep - Oct
654
Mar-Jun
2014
Dec-Mar
2013
Test cycle scope
Sep-Oct
2014
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Simple receivables
management through
integration of finance &
sales functions
10% DSO Reduction
Account ReceivablesReceivables Management
Changes focus from data
preparation to analysis &
interpretation
28%
40%
Books ClosingFast Close Enablement
Improvementonprocessing time
Reductionin GLposting corrections
I/CO reconciliation moved
to a real time process
70%
Intercompany ReconciliationReal-time
HANA
No aggregates
Increased performance
Reductionin time toprocess
reconciliation issues
SAP Simple Finance @ SAPMajor Values Realized
2014 SAP AG or an SAP affiliate company. All rights reserved. 17
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2014 SAP SE or an SAP affiliate company. All rights reserved. 18Public
SAP Simple Financecore component:
Financials Add-On for Suite on HANA
Business Suite on HANA
SAP HANA Platform
AlignedSingle Source of Truth
AgileReal time finance processes
PredictiveInsight and foresight
Integrated
Business Planning
New capabilities and enhancedintegration for ERP and BPC.
SAP Cash Managementpowered by SAP HANA
New product forGroup Cash Management
SAP Accountingpowered by SAP HANA
Alternative in-memoryfunctionality for ERP customers
2014 SAP AG or an SAP affiliate company. All rights reserved. 18
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20 2014 SAP SE or an SAP affiliate company. All rights reserved.
Home
Cash Manager
Bank Statement
Success RateFeb 1st2014
95.0%
Cash Pool Amount ByDeficit - Feb 1st 2014
(M)
-26.8
Bank RiskFeb 1st 2014 (M)
15.7
Cash PositionToday (M)
26.0
Liquidity StructureFeb 1st 2014 (M)
Current Account 1.2
Investment 0.78
Debt 1.4
Cash Flow
Week-to-date (M)
Inflow 200.2
Outflow 192.5
Liquidity Forecast
Whole Company, In 30 Days
1,98M
2,47M
Feb. 1st, 2014 24%
Payment StatisticsToday (M)
Accepted By Bank 200.2
In Approval 42.5
Rejected by Bank 55.0
Overdraft LimitFeb 1st2014 (M)
Available 200.2
Consumed 42.5
Exceeded 55.0
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2014 SAP SE or an SAP affiliate company. All rights reserved. 21Public
SAP Simple Financecore component:
Financials Add-On for Suite on HANA
Business Suite on HANA
SAP HANA Platform
AlignedSingle Source of Truth
AgileReal time finance processes
PredictiveInsight and foresight
Integrated
Business Planning
New capabilities and enhancedintegration for ERP and BPC.
SAP Cash Managementpowered by SAP HANA
New product forGroup Cash Management
SAP Accountingpowered by SAP HANA
Alternative in-memoryfunctionality for ERP customers
2014 SAP AG or an SAP affiliate company. All rights reserved. 21
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Ope
rationalPlannin
g
StrategicPlanning
P
rofitabilityPlann
ing
ProcurementPlanning
CostPlanning
ProductionPlanning
RevenuePlanning
Marketing
Planning
InvestmentPlanning
PricePlanning
BalanceShee
tandProfit&
Lo
ssPlanning
Sales
Planning
HeadcountPlanning
2014 SAP AG or an SAP affiliate company. All rights reserved. 22
Dynamic Planning Through Integrated Business Planning
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SAP HANA Platform
Single source of truth
SAP
ERPSAP
BPC, BW
Customer benefits
Seamless integration of planninginto SAP ERP user interface andworkflows
No need for Data Replication
Plans developed in SAPBusiness Planning andConsolidation will be accessiblein SAP ERP for variance analysis
Fully harmonized master dataand data between accounting,
planning, and financial riskmanagement
End-to-end simulation capabilities
Shared data and
methods Master data (e.g., cost centers) Planning model Actuals, plans, budgets, forecasts Planning engine
Entry oftransactional andmaster data
Variance analysisactuals vs. plan
Entry of planningmodels and plandata
Flexible reportingand analysis ofactuals
Technology Driven Transformation: Financial Planning
2014 SAP AG or an SAP affiliate company. All rights reserved. 23
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SAP Simple FinanceYour Key for a Technology Driven
Finance Transformation
Business Suite on HANA
SAP HANA Platform
AlignedSingle Source of Truth
AgileReal time finance processes
PredictiveInsight and foresight
Integrated
Business Planning
New capabilities and enhancedintegration for ERP and BPC.
SAP Cash Managementpowered by SAP HANA
New product forGroup Cash Management
SAP Accountingpowered by SAP HANA
Alternative in-memoryfunctionality for ERP customers
2014 SAP AG or an SAP affiliate company. All rights reserved. 24
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Adopt Innovation at Your Own Pace
SAP Business Suite
SAP HANA asside-by-side
scenario
Any DB
SAP
ERP
SAP HANA
2014 SAP AG or an SAP affiliate company. All rights reserved. 25
SAP Business Suite
powered bySAP HANA
SAP ERP
SAP HANA
Financials
add-on *
SAP/OtherERP
SAP Business Suite
powered bySAP HANA
* optional
SAP ERP
SAP HANA
Financials
add-on *
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SAP Simple Finance: On Premise and Cloud Deployment
2014 SAP AG or an SAP affiliate company. All rights reserved. 26
Comprehensive Broad Business Scope Best in Class Managed Cloud Services
Access to Latest Releases
Simple
Modern Architecture Subscription Price Seamless E2E Experience Rapid Onboarding
Flexible
Extensible Solution
Integrates into the SAP Portfolio Clear Service Levels Scalable Scope Options Highest Level Security & Privacy
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Summary and OverviewSummary and Overview
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The Rewards of Real Time Finance
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3xLower financecost as % ofrevenue
76%Higher operating
margin
22%Lower auditcosts
56%Fewer treasury
FTEs
44%Fewer financeFTEs
26.1%Fewer days to
close the books
Source: SAP Benchmarking Services
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Now Its Your Turn
CFO Financial
LeadershipCenter
www.sapcfo.com
Simple
Finance
www.sap.com/simple-
finance
SAP Solutions
for FinanceNewsletter
www.sap.com/finance-
newsletter
2014 SAP AG or an SAP affiliate company. All rights reserved.
http://www.sapcfo.com/http://www.sap.com/simple-financehttp://www.sap.com/simple-financehttp://www.sap.com/finance-newsletterhttp://www.sap.com/finance-newsletterhttp://www.sap.com/finance-newsletterhttp://www.sap.com/finance-newsletterhttp://www.sap.com/finance-newsletterhttp://www.sap.com/simple-financehttp://www.sap.com/simple-financehttp://www.sap.com/simple-financehttp://www.sapcfo.com/8/9/2019 Simple Finance Zurich Insurance POC Case Study
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Q&A
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Key Take Aways
Technology innovationssuch as inmemory computing and Cloudwilltrigger a new process revolution,enabling Real Time Finance.
Simple Finance is a next generation setof solutions to help CFOs acceleratetheir global Finance transformation.
It offers simple and unified experiencefor easy adoption and a smoothdeployment with on-premise, cloud
and hybrid options.
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Thank You
Contact
information:
Dr David Ormerod
EMEA CoE for Finance
david.ormerod@sap.com http://twitter.com/dormerod
mailto:david.ormerod@sap.comhttp://twitter.com/dormerodhttp://twitter.com/dormerodmailto:david.ormerod@sap.comRecommended