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Assessing the FP&A Landscape
2013 2016 2018 Beyond
The Company’s Evolution
Company
Founding
Initial Public
Offering
Scaling for
Growth
Aiming to start
clinical trial
Expectations for FP&A
Partnering with business to provide
insights to help drive results
Linking strategic and operational
planning activities
Ability to synthesize and present
information across all levels of the
organization
Building a culture focused on
achieving financial results
+
Establishing and Scaling
Finance Function
Creating framework and cadence for key
financial processes (budgeting,
forecasts, KPIs, long-range planning)
Building-out finance technology and
tools to support Company’s growth
Strengthen decision-making through
data-driven insights and perspectives
Developing State Intermediate State Leading State
1
Basic
2
Developing
3
Defined
4
Advanced
5
Leading
▪ No formal process
▪ No established
analytical matrix
▪ No planning model
and tools
▪ No BI Tool
▪ No collaboration
▪ Inconsistent process
▪ Basic analytical and
reporting matrixes
▪Basic planning model
and tools
▪Basic BI Tool
▪Minimal
collaboration
▪Highly manual
process
▪Descriptive analytics
▪ Defined process
▪ Defined analytical
matrixes
▪ Defined planning
model and system
▪ Defined BI
▪ Some elements of
collaborative planning
▪ Heavy reliance on IT
▪Descriptive and
diagnostic analytics
▪ Enterprise-wide
process
▪Multidimensional
analytic matrixes
▪ Driver base planning
model and system
▪ Advanced BI
▪ Collaborative
planning
▪Self service finance
planning tool
▪ Predictive analytics
▪ Integrated planning
process
▪ Leading analytical
matrixes
▪ Integrated driver
base planning model
and system
connected with BI
▪ Real-time
collaborative
planning
▪ Easy
multidimensional
scenario analysis
▪ Advanced analytics
Maturity of FP&A at Editas
Source: FP&A Trends (http://www.fpa-trends.com/article/london-fpa-board-fpa-analytics-maturity-model
He
re
Where FP&A Stood
Reliance on Excel
Limited Processes
Inconsistent Approaches
Slow Turnaround on Information
FP&A Continues to Rely Heavily on Excel
Publicly Owned Privately Held
Spreadsheet (e.g. Microsoft Excel) 44% 64%
Oracle Hyperion Planning 23 5
SAP BPC 11 4
Cognos 4 5
Host Analytics 1 6
Adaptive Insights 1 5
Board - 8
Oracle Planning and Budgeting Cloud Service 1 4
Other 14 10
2016 AFP Financial Planning & Analysis Benchmarking Survey: FP&A, a Function in Transition
REPORT OF SURVEY RESULTS October 2016
Polling Question
What Are you Using for Planning, Reporting, Forecasting?
1
2
3
Oracle/SAP
Host Analytics / Adaptive / Cognos/ Other
Spreadsheets
Linking FP&A System to Enterprise Strategy
Function SystemERP
Purchasing
Travel and Expense
FP&A
HR Planning
Payroll
?
?
System Roll-out Timeline
Q4 Q1 Q3Q2Software
Assessment
Contracting
Implementation
Post Go-Live
Build
Go-Live
User experience (Finance / Business Partners)
Flexibility of hierarchy, analysis, scenarios, planning
Integration with Office Products
Level of IT Support / Involvement
Cloud vs. On Premises Solution
Mobile options
Dataflow
Flexibility in user security
Single Sign-on, etc.
System scaling with the company growth
Integrations and Adaptors with other systems
Key Themes for Functionality We Heard
Flexibility / Ease of Use
Self-Service Capabilities
Security Features
Scalability
FP&A Role Went Beyond Budgeting
- Advocate
- Project Manager
Before
Go-Live
After
Go-Live
- Change agent
- Negotiator
- Trainer
- Administrator
- Designer
- Resource
System is Helping to Drive Processes
Long Range Planning
R&D Pipeline Planning
Management Reporting
Program / Pipeline ReportingCash Analytics
Headcount Planning
Capex Planning
Opex Planning
Automating Existing Spreadsheets
~70Spreadsheets automated across
the reporting, budgeting, planning
processes
Increasing FP&A Cycle Time
~60%Improvement in quarterly reporting
cycle through spreadsheet automation
~30%Improvement in time for forecasting
and planning cycles
Improving Headcount Planning and Reporting
Disparate spreadsheets Centralized System
Static Planning and Update Cycle Rolling
Separate Finance/HR Processes Harmonized
How?
Driving Ownership and Accountability
Inputting opex and capex plans
Inputting hiring plans
Reviewing System Generated Mgmt Reports
Department
owners are now:
FP&A can pivot towards other value-add activities
Establishing Systematic and Consistent Way
to Track Programs / Pipeline Spending
$8.0
$6.4
$7.3
$3.6 $3.1
$4.3
$1.9 $1.9 $1.5
$0.8
21%
17%
19%
9%
8%
11%
5% 5%4%
2%
0%
5%
10%
15%
20%
25%
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
Pro
gra
m 1
Pro
gra
m 2
Pro
gra
m 3
Pro
gra
m 4
Pro
gra
m 5
Pro
gra
m 6
Pro
gra
m 7
Pro
gra
m 8
Pro
gra
m 9
Pro
gra
m 1
0
% O
F S
PE
ND
ING
R&
D S
PE
ND
ING
-Y
TD
Shift Towards Value-Adding Activities
0% 5% 10% 15% 20% 25% 30% 35% 40%
Budgeting/Forecasting
Reporting
Financial Analysis & Insights
Project / Decision Support
Long Range Planning Post Pre
Hig
he
r V
alu
e
Lo
we
r
Va
lue
Moving Forward Leveraging system to
strengthen financial
discipline
Improving decision-making
and strategy around project
resources
Scaling the system as the
Company grows (incl
Integration into ERP)