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Thack Brown, GM, Global Head, LOB Finance / SAP SESeptember, 2015
Keynote: Simplifying Finance in a Complex World
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Finance IS AT AN INFLECTION POINTKeeping Up with the Digitalization of Business
Increasing complexityof external conditions
Pressure tosupport globalgrowth initiatives
Requirement to driveefficiency and reducethe cost of finance
Business Trends
Accelerated adoption oftechnology innovations throughcloud deployments
Accelerated adoption oftechnology innovations throughcloud deployments
Millennial work style enabledby consumer grade userexperience and mobility
Millennial work style enabledby consumer grade userexperience and mobility
Instant insight and real timebusiness process enabled byin- memory technology
Instant insight and real timebusiness process enabled byin- memory technology
Technology Trends
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
Transforming Finance to Better Support the Business is HardChallenges to innovate can hold finance teams back
<12%
Sources:* CFO.com Research 2013, ** CFO.com Research 2014, ***Harvard Business Review
can respond in real-timeto information requests**
Easier to Use
say ability to meet growthtargets would improve iftheir systems were easier
to use**
80%
Predictive Analysis
say finance team needs toprovide more forward-
looking, predictive analytics**
91%
Instant PerformanceInformation
of global companies do nothave financial performance
data at the ready***
76%
Understandable Data
say it’s difficult formanagers to understand
finance data even when it iseasy to access**
58%
Strategic Support
say finance team needs toimprove its capabilities tosupport profitable growth**
87%
Resource Allocation
believe at least half their timeshould be on high-value
planning and analytic activities,though only 55% achieve this*
76%
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Outlook Interim ReportingBudgeting
Business Performance AnalysisCost Analysis
Business Performance ReportingInventory Accounting
External ReportingOrder Entry
TreasuryCash Management
Tax Filing and ReportingCustomer Billing
CreditDispute Management
General AccountingCash Accounting
Time and AttendanceCollections
Inter-companyPayroll
Cash ApplicationFixed Assets
Travel and ExpenseAccounts Payable
GBS - Transactional GBS - Knowledge-centric GBS - Outsourced Outside the GBS organization
Split 2009
Source: The Hackett Group , March 2013
Efficiency Improvements are Still NeededDespite reduced costs achieved with Shared Services
Split today
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Technology Can Support TransformationLeveraging Technology to Keep Up with the Accelerating Pace of Business
Accelerated adoption oftechnology innovationsthrough cloud deployments
Accelerated adoption oftechnology innovationsthrough cloud deployments
Millennial work styleenabled by consumergrade user experienceand mobility
Millennial work styleenabled by consumergrade user experienceand mobility
Instant insight and real timebusiness process enabledby in-memory technology
Instant insight and real timebusiness process enabledby in-memory technology
Technology TrendsBusiness Trends
Increasing complexityof external conditions
Pressure tosupport globalgrowth initiatives
Requirement to driveefficiency and reducethe cost of finance
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
The Simplification of the Universal JournalThe “Single Source of Truth”
New ArchitectureConcept: “Take the best of all worlds”(e.g. ledger, market segment, codingblock, etc.)One line item table with full detail forall applications - for instant insight &easy extensibilityData stored only once: no morereconciliation needed - by designReduction of memory footprintthrough elimination of redundancy.Fast multi-dimensional reportingpossible without replicating data tobusiness warehouse (BW).If BW is in place anyway, only onesingle extractor needed.Secondary cost elements are nowG/L accounts.
A universal journal entry can have (technically) up to 999,999 line itemsless or no need for summarization (depending on data volume)
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SAP Simple Finance - Reimagining The Finance Value Chain
Business Suite on HANA
SAP HANA Platform
AlignedSingle Source of Truth
AgileReal time processes
PredictiveDynamic Planning and Analysis
SAP Cash Managementpowered by SAP HANA
New product forGroup Cash Management
SAP Accountingpowered by SAP HANA
Alternative in-memoryfunctionality for ERP customers
SAP Integrated BusinessPlanning for Finance
New capabilities and enhancedintegration for ERP and BPC
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Instant InsightReal end-to-end in memory
Intuitive User ExperienceAll devices
Flexible and Non-disruptiveCloud or on premise
Financial Planningand Analysis
Treasury andFinancial Risk
Enterprise Riskand Compliance
Accounting andFinancial Close
FinanceOperations
Simple FinanceTransforming Finance with Instant Insight
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Close Books in a DayTask accelerationand automationIntra-period reconciliationSoft close and simulation(planned)
$ Optimize Working CapitalGroup cash managementWorking capital analyticsContinuous cash collectionsInvoice and discountoptimization
Ensure ComplianceFraud detection andpreventionAudit management
Plan DynamicallyIntegrated businessplanningPredictive forecastingBudget management(planned)
Centralize Finance• Real-time financial and operational reporting• Harmonized internal and external reporting• Group reporting in multi-ERP and M&A situations• Flexible reporting in matrix organizations• Centralized process execution
Analyze Plan Transact
Value Scenarios of SAP Simple FinanceReal-time analytics enabling real-time processes
