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Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
Unleashing the Power of Analytics for Finance & Procurement
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Unleashing the Power of Analytics for Finance & Procurement

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Using analytics tools to collect massive amounts of big data from your Procurement or Finance department is easy. However, extracting the meaning of that data, and using it to drive real value to your …

Using analytics tools to collect massive amounts of big data from your Procurement or Finance department is easy. However, extracting the meaning of that data, and using it to drive real value to your organization might be a real challenge.

In this session, Genaro will share SAP´s view on how the power of collective insight can be unleashed using leading edge business intelligence, agile visualizations and advance predictive analytics to all users, using any device.

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  • Anexample: Theworkflowwiththeletterevery AE needstosign at theend of each Q, confirmingthat he hasn´tsignedanysideletterwithanycustomerisanexample of automatic control associatedcorporategovernance. Anotherexampleisthe GAF process. Anautomated control tomitigatetherisksassociated in a sales process.
  • Analytic solutions from SAP are uniquely positioned to enable collective insight. We do this by delivering an enterprise business intelligence solution (SAP BusinessObjects BI 4.1) that gives users the power to engage with all their data, on any device, across any platform, in real-time. Agile visualizations (SAP Lumira) intuitively allow users to explore and present data, both big and small, drive real-time understanding of the business and by applying advanced predictive analytics (SAP Predictive Analysis) to more information and processes across the enterprise we can confidently anticipate what comes next and guide better, more profitable, forward looking decision making. All this is delivered on a modern, open real-time data platform powered by SAP HANA. Its Big Data ready, supports multiple deployment options, drives collaboration and is fully integrated with SAP’s mobile platform, securing both the data and the device.The power of collective insight however can only truly be unleashed by delivering all of these. Point solutions that do not offer the same breadth of market proven capabilities, combined with rich industry and process expertise and that only address a fraction of the data available by definition are unable to drive value across all three dimension and therefore will only lead to more dark data, more silos, more shadow IT teams and will inhibit innovation. SAP is focused on analytics, and will drive innovation and differentiation in each of these 3 areas. Only SAP can deliver enterprise business intelligence AND agile visualizations AND advanced predictive analytics.
  • WhathappenedtoAnalytics
  • In order to deliver collective insight, analytics as we know it needs to change and evolve. SAP, via BusinessObjects started this journey for many thousands of customers around the world when we made BI a reality over 20 years ago. But analytics has and needs to continue to move from asking what happened, to asking why it happened, what will happen next and ultimately what is the best that can happen. As analytics matures along this curve it’s a journey, but it’s a journey that does not leave the other behind. Its it the sum of all the parts that ultimately drives collective insight. You cannot just look at predictive modelling, without great visualizations and the underlying semantics that drive faultless data governance. Its this need for analytics to be end to end that truly holds the key to unlocking dark data and driving collective insight. Ease of adoption and rapid implementation at any point on the maturity curve are a prerequisite alongside the to ensure users work with solutions that are business focused and enable storytelling.By doing this you can mature your use of analytics, improve user engagement and drive collective insight.
  • The power of collective insight can be articulated with three core characteristics. The ability to engage. The ability to visualize. And the ability to Predict. We’ll describe these in more detail shortly but if you can drive collective insight in your organization built around these three concepts then the possibilities are endless.For example:Imagine if you could predict demand or supply across your entire supply chain immediately… What benefits would that bring you?What about providing exactly the right offers and services to every customer as they needed them? Would that help you serve them better?How about being able to understand what your customers and potential customers are saying about you right now…How could you use that information?Or finally, would you like the ability to predict market trends and customer need and use this to innovation and bring new products and services to market quicker?This is the opportunity that right now, by not enabling collective insight we are missing out on.At SAP we follow a concept of design thinking which is generally considered to be the ability to combine empathy for the context of a problem, creativity in the generation of insights and solutions, and rationality to analyze and fit solutions to the context. Design thinking can help you identify your possibilities and we’ll come back to this at the end of the presentation.In the meantime lets look at each area in turn, example the benefits of each and how our customers are already benefiting from it.
  • Analytic solutions from SAP are uniquely positioned to enable collective insight. We do this by delivering an enterprise business intelligence solution (SAP BusinessObjects BI 4.1) that gives users the power to engage with all their data, on any device, across any platform, in real-time. Agile visualizations (SAP Lumira) intuitively allow users to explore and present data, both big and small, drive real-time understanding of the business and by applying advanced predictive analytics (SAP Predictive Analysis) to more information and processes across the enterprise we can confidently anticipate what comes next and guide better, more profitable, forward looking decision making. All this is delivered on a modern, open real-time data platform powered by SAP HANA. Its Big Data ready, supports multiple deployment options, drives collaboration and is fully integrated with SAP’s mobile platform, securing both the data and the device.The power of collective insight however can only truly be unleashed by delivering all of these. Point solutions that do not offer the same breadth of market proven capabilities, combined with rich industry and process expertise and that only address a fraction of the data available by definition are unable to drive value across all three dimension and therefore will only lead to more dark data, more silos, more shadow IT teams and will inhibit innovation. SAP is focused on analytics, and will drive innovation and differentiation in each of these 3 areas. Only SAP can deliver enterprise business intelligence AND agile visualizations AND advanced predictive analytics.
  • Financial Planning and AnalysisIncrease organizational agility, control costs, and align execution on strategy.Accounting and Financial CloseExecute a fast, accurate, compliant close that reduces money and effort.Treasury and Financial Risk ManagementIncrease insight and control for managing cash, liquidity, and risk.Collaborative Finance OperationsImprove finance efficiency through increased automation.Enterprise Risk and Compliance ManagementImprove finance efficiency through increased automation.
  • An example of tangible benefits of this solution is DSO (Day Sales Outstanding) that is the number of days needed to collect the payments.A dedicated system such as SAP Receivables Management can for example alert on past-due accounts, track and manage with a workflow all pending disputes. This can help reducing DSO.In this slide we can see the impact of reduction of DSO depending on revenue, reduced DSO days and banking interest rate: we understand now the value that this solution can provide and why the driver is the Revenue!
  • KPI: Payment Approval, to be approved, errorComplete Filter
  • Analytic solutions from SAP are uniquely positioned to enable collective insight. We do this by delivering an enterprise business intelligence solution (SAP BusinessObjects BI 4.1) that gives users the power to engage with all their data, on any device, across any platform, in real-time. Agile visualizations (SAP Lumira) intuitively allow users to explore and present data, both big and small, drive real-time understanding of the business and by applying advanced predictive analytics (SAP Predictive Analysis) to more information and processes across the enterprise we can confidently anticipate what comes next and guide better, more profitable, forward looking decision making. All this is delivered on a modern, open real-time data platform powered by SAP HANA. Its Big Data ready, supports multiple deployment options, drives collaboration and is fully integrated with SAP’s mobile platform, securing both the data and the device.The power of collective insight however can only truly be unleashed by delivering all of these. Point solutions that do not offer the same breadth of market proven capabilities, combined with rich industry and process expertise and that only address a fraction of the data available by definition are unable to drive value across all three dimension and therefore will only lead to more dark data, more silos, more shadow IT teams and will inhibit innovation. SAP is focused on analytics, and will drive innovation and differentiation in each of these 3 areas. Only SAP can deliver enterprise business intelligence AND agile visualizations AND advanced predictive analytics.
  • Billing Schemes via-Shell Company-Non-Accomplice Vendor-Personal PurchasesA shell company is an entity that has no active business and usually exists only inname as a vehicle for another company’s business operations.2 In essence, shells arecorporations that exist mainly on paper, have no physical presence, employ no one andproduce nothing. They are frequently used to shield identities and/or to hide money. Ashell company can often be identified by a number of red flag indicators including:• No phone number• No e-mail address• No physical address• No company logo• No contact person• No federal identification numberNon-Accomplice VendorPerp overbills company on behalf of existing vendorVendor not involved in the schemeTwo common techniques: Pay-and-returnCounterfeit invoicesPersonal Purchases with Company FundsPerp uses company checks to buy personal items. Common examples:Home supplies/constructionSide businessPay medical, utility, credit card bills, etc.Merchandise may be returned for cash
  • Transcript

    • 1. #AribaLIVE Unleashing the Power of Analytics for Finance and Procurement Genaro Pena Vice President SAP GRC Analytics EMEA @genaropena © 2014 Ariba – an SAP company. All rights reserved. @ariba
    • 2. Objectives of the Session Today • – Understand meaning: Improve visibility and control over spend – Automate & align procure to pay, optimize cash management – Identify ways to reduce risk, fraud and meet compliance more efficiently Help you understand how to use analytic tools, not only to analyze massive amounts of data but also:… Increase value to your organization © 2014 Ariba – an SAP company. All rights reserved.2
    • 3. High-Performing Companies 50% More Likely to Use Analytic Information Strategically Have significant decision-support/ analytical capabilities Value analytical insights to a very large extent Have above average analytical capability within industry Use analytics across their entire organization Low PerformersHigh Performers Source: High Performing companies out-perform their industry in terms of profit, shareholder return and revenue growth. Competing on Analytics, Thomas Davenport © 2014 Ariba – an SAP company. All rights reserved.3
    • 4. Analytics Analytics Analytics Business Applications Business Applications Business Applications Business Applications Analytic Capabilities
    • 5. Analytics Solutions from SAP One Platform: Integrated, Standardized and Simplified © 2014 Ariba – an SAP company. All rights reserved.5
    • 6. Evolution of Analytics: Help to Analyze, Predict and Act © 2014 Ariba – an SAP company. All rights reserved.6
    • 7. The Proof Is in the Numbers Data Driven companies that couple advanced analytics IT solutions with consistent organizational practices enjoyed 4% higher productivity and 6% higher profitability. Andrew McAfee, Principal Research Scientist at the MIT Center for Digital Business “ ” © 2014 Ariba – an SAP company. All rights reserved.7
    • 8. Graphics: grasundsterne GmbH Cloud Mobile Technology Trends Evolving to Make Consumption of Analytics Easier © 2014 Ariba – an SAP company. All rights reserved.8
    • 9. Enabling the Enterprise-class Agile Visualization Customers want: AGILITY for business users + The ability to SCALE and GOVERN BI strategically across the organization. AgilityforBusinessUsers Enterprise scale and governance © 2014 Ariba – an SAP company. All rights reserved.9
    • 10. How Analytics Have Evolved to Deliver Collective Insight End-to-end Easy adoption Fast Implementation Business focused © 2014 Ariba – an SAP company. All rights reserved.10
    • 11. SAP Lumira all Data at Your Fingertips © 2014 Ariba – an SAP company. All rights reserved.11
    • 12. SAP Lumira: Mobile BI Tailored Experience Swipe, Tap, Zoom to Answers on the Devices of Your Choice © 2014 Ariba – an SAP company. All rights reserved.12
    • 13. Unleashing the Power of Collective Insight in Procurement ENGAGE PREDICTVISUALIZE Instantly predict market trends and innovate new product and services quicker Predict demand or supply across your entire network immediately Provide exactly the right offers and service levels to every supplier/vendor Understand what the market is saying about your suppliers & vendors, right now Imagine the potential… © 2014 Ariba – an SAP company. All rights reserved.14
    • 14. Emergence of a New Class of Enterprise Applications • Through 2015, analytics applications will remain one of the fastest-growing categories of BI and business applications. • Traditional approaches to BI struggle to meet the increased demand for the analytics insights…forcing the adoption of packaged analytic applications… …embedded with “best practices and deployment expertise.” “The Top Five Concerns in the Analytic Applications Space for the Coming Year,” Gartner, December 2009” “ ” © 2014 Ariba – an SAP company. All rights reserved.15
    • 15. SAP Spend Performance Management Gain full spend visibility – Automated data capture from SAP and non-SAP software – Data accuracy for faster insights Increase spend under management – Set up performance targets – Collaborate effectively to act on insights Rapidly identify savings opportunities – Find and act on savings potential – Proactively monitor contract compliance Reduce supplier risk – Pinpoint supplier risks and supply concentration – Find and act on qualified alternate suppliers SAP Global Ledger Purchasing cards Travel and expense SAP NetWeaver Business Warehouse SAP ERP SAP BusinessObjects Data Enrichment and Classification OnDemand * Note: SAP BusinessObjects Data Enrichment and Classification OnDemand solution separately priced. Maximize savings – minimize supplier risk 16
    • 16. SAP BusinessObjects Spend Performance Management for iPad © 2014 Ariba – an SAP company. All rights reserved.17
    • 17. Analytic Solutions from SAP: Integrated, Standardized and Simplified © 2014 Ariba – an SAP company. All rights reserved.18
    • 18. Driving Business Results through Financial Excellence From the CFO to a Broad Set of Finance Teams VP of Finance Head of Finance Operations Chief Compliance Officer Corporate Treasurer Head of Corporate Reporting FINANCIAL PLANNING AND ANALYSIS • Develop and Translate Strategy • Planning, Budgeting and Forecasting • Profitability and Cost Management • Monitoring and Reporting ACCOUNTING AND FINANCIAL CLOSE • Accounting • Entity Close • Corporate Close • Reporting and Disclosure • Financial Close Governance TREASURY AND FINANCIAL RISK MANAGEMENT • Payments and Bank Communications • Cash and Liquidity Management • Debt and Investment Management • Financial Risk Management • Commodity Risk Management COLLABORATIVE FINANCE OPERATIONS • Receivables Management • Collaborative Invoice to Pay • Travel Management • Financial Shared Services ENTERPRISE RISK AND COMPLIANCE MANAGEMENT • Enterprise Risk Management • Controls and Compliance Management • Access Governance • International Trade Management • Fraud Management • Audit Management
    • 19. Receivables Management - Process Overview Evaluate customer credit and book sales Issue bills and invoices Manage disputes Manage collections Service customers  Define corporate customer credit policy  Create sales order  Real-time automatic credit worthiness check of sales order  Evaluate credit blocked sales orders (exception handling)  Evaluate customer credit risk exposure across all geographies 1 2 3 4  Produce aging reports, identify overdue accounts, and calculate DSO  Execute collection activities  Ensure timely recording of payments and management of past- due accounts  Automatic processing of electronic bank statements  Automatic check processing  Automatic creation of disputes for invoice underpayments  Automatic, strategy based prioritization of accounts for collections  Monitoring success, of collection activities  Timely processing and resolution of disputes: workflow based, auditable, automated  Automatic allocation of collection worklists to processors / teams 5  Create bills and invoices  Present bills and invoices electronically  Enable online inquiry  Receive electronic payments  Process customer inquiries regarding invoices and payment status
    • 20. Receivables Management Example for a Business Case We Can Prove: SAP lowers DSO… Why… Collections Management Professional support for collections specialists – more calls means more collections Dispute Management Automated workflow with escalation makes sure no dispute gets lost in the process – disputes closed faster Structured analysis capabilities means dispute causes can be identified and eliminated – fewer disputes Example: 500M € company 1 day DSO = 500M / 365 = 1.4M € per day Savings (cost saved or financial earn) = 1.4M * 5% interest = 40K € Revenue 1 DSO 5% Interest Rate 5 DSO 5% Interest Rate 10 DSO 5% Interest Rate € 50,000,000 € 138,889 € 6,944 € 694,444 € 34,722 € 1,388,889 € 69,444 €100,000,000 € 277,778 € 13,889 € 1,388,889 € 69,444 € 2,777,778 € 138,889 €500,000,000 € 1,388,889 € 69,444 € 6,944,444 € 347,222 € 13,888,889 € 694,444 €1,000,000,000 € 2,777,778 € 138,889 € 13,888,889 € 694,444 € 27,777,778 € 1,388,889 €5,000,000,000 € 13,888,889 € 694,444 € 69,444,444 € 3,472,222 € 138,888,889 € 6,944,444
    • 21. SMARTER, FASTER, SIMPLER RECEIVABLES MANAGEMENT
    • 22. Use Case: Receivables Management Unlock Historical Data Utilize years of historical financial and customer data Apply Predictive Analyze customer traits and past behavior to better determine payment patterns Prioritize Collections Proactively manage customer payments through prioritized collection worklists Other Data Sources (Internal or External CRM A/R ARCHIVE (Years 3-7) SAP FI – A/R (Years 2-Current) SAP PREDICTIVE ANALYSIS SAP HANA In-Memory Transaction & Analysis directly In-Memory SAP RECEIVABLES MANAGEMENT Billing and E-Invoicing Dispute Resolution Collections Management Credit Evaluation and Management Improve Cash Flow , Decrease DSO and Reduce Collections © 2014 Ariba – an SAP company. All rights reserved.23
    • 23. Get More Visibility on Sources of Cash Ensure liquidity and reduce risks Increase efficiency and optimize Working Capital Analyzing global bank balances and cash positions based on data from SAP and non-SAP systems Create more accurate mid-and long-term cash forecasts via real time analysis Leveraging Smart Business to gain real time information in different places to get full picture Monitor KPIs and alerts to mitigate risks and trigger actions Wisely use money, invest surplus part to get return, and reduce financial cost Supporting group treasury functions to ensure liquidity and optimize financing activities. Smart Cash Management, powered by HANA
    • 24. SAP Smart Cash Management on HANA SAP Cash Management on HANA  Supporting the trend of centralization of Treasury functions  Cash Positions - Group-wise 0-7 days Cash Positions with integration to mid / long term Liquidity Forecasting  Cash Flow Analysis, – collected from heterogeneous systems using real-time multi-dimensional analytics powered by HANA  Central Bank Account Management including Overdraft Limit Analysis, Bank Risk Analysis including Signatory management and workflow capabilities  Smart Business for Cash Managers - analyzing big data to monitor most critical KPI’s using a mobile device © 2014 Ariba – an SAP company. All rights reserved.25
    • 25. Home Cash Manager Bank Statement Success Rate Feb 1st 2014 95.0% Cash Pool Amount By Deficit - Feb 1st 2014 (M€) -26.8 Bank Risk Feb 1st 2014 (M€) 15.7 Cash Position Today (M€) 26.0 Liquidity Structure Feb 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 Statistics Today (M€) Accepted By Bank 200.2 In Approval 42.5 Rejected by Bank 55.0 Overdraft Limit Feb 1st 2014 (M€) Available 200.2 Consumed 42.5 Exceeded 55.0
    • 26. Cash Position  Cash Position by Bank & Currency  26,046,372.00EUR    Filtered by Region (Europe), by Country (France), by Currency (All), by Bank (All), by Company (0001)  0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 Cash Position HSBC France RBS France CITI Bank France Deutsche Bank France BNP Paribas France Bank of France Laikiash EUR USD GBP EUR USD EUR USD EUR USD EUR USD EUR USD EUR   Value Drill Down by Currency EUR 1,246,372.00 Drill Down by Region Drill Down by Currency & Country Drill Down by Bank Drill Down by Bank & Currency Navigate to Bank Account
    • 27. Analytic Solutions from SAP: Integrated, Standardized and Simplified © 2014 Ariba – an SAP company. All rights reserved.28
    • 28. Customer Pain Points Addressed by GRC in Procurement and Finance SAP GRC Errors Cost of -Risk Mgmt. -Internal Controls,Internal Audit,… Operating Cost/ Performance Improvements FraudAbuse, Waste Compliance Risk-Adjusted Management GRC Solutions SAP Risk Mgmt SAP Process Control SAP Access Control SAP Audit MgmtSAP Fraud Mgmt Business Process Efficiency: e.g. monitor key data for -DSO, -DPO, -DII, … Money, Time and Resources for these GRC business process Unintentional Activities e.g. -Sales: Close Foreign Currency Deal -Treasury: Forget Hedging Transaction Waste e.g. -Travel Policy Fraud e.g. -Lack of Segregation of Duties -(One-Time) Vendor Fraud -Conflict of Interest Anticipate and Influence events before they happen e.g. Don’t report a risk at the end of FY when it is certain to happen, but at the beginning with mitigation action and cost e.g. allocate resources, budget and time to the highest risks e.g. risk-based approach to Internal Audit End-to-End Risk and Control System Continuous Monitoring Proactive
    • 29. Support decisions and promote accountability with insightful analytics and sign-off Perform automated, exception-based monitoring of ERP systems Evaluate control design and effectiveness; raise and remediate issues Perform periodic risk assessments to determine scope and test strategies Document controls and policies centrally; map to key regulations and impacted organizations SAP Process Control for Procurement and Finance Ensure effective controls and on-going compliance © 2014 Ariba – an SAP company. All rights reserved.30
    • 30. Controls Testing… Evaluate Manual Test and Assessments Manual Test & Assessmt. Workflow Send Test Plan Do Manual Work …. …. © 2014 Ariba – an SAP company. All rights reserved.31
    • 31. Example: Manual Test of Effectiveness Offline Version (Via eMail/Adobe Interactive Forms) © 2014 Ariba – an SAP company. All rights reserved.32
    • 32. … And Automated Controls Monitoring Evaluate Manual Test and Assessments Manual Test & Assessmt. Workflow Automated Monitoring Legacy Apps © 2014 Ariba – an SAP company. All rights reserved.33
    • 33. Continuous Monitoring / Auditing Examples: Procure-to-Pay Process  Detect duplicate vendor invoices; detect payments made without reference documents  Detect large vendor outgoing payments made in the last 60 days  Detect outgoing payments where payment address or bank data is allowed to be changed while making payments  Detect vendors and employees with the same bank account information  Indentify vendors that are marked for deletion but yet not blocked  Identify vendors to whom terms of payment are set as „payable immediately“  Identify vendors where cash payment is the payment method assigned  Monitor change to alternate payee and other sensitive vendor master fields  Identify cases where the purchase order value is less than the goods receipt value  Detect purchase orders that were created on the same day as the goods were received  Identify purchase orders that were created on or after the day the invoice was received  Identify split purchase orders  Indentify cases where quantity orderded in the purchase order is greater than the quanity requested in th purchase requisition  ... © 2014 Ariba – an SAP company. All rights reserved.34
    • 34. How to fight against fraud? Source: Chartered Institute of Management Accountants© 2014 Ariba – an SAP company. All rights reserved.36
    • 35. Fraud, Waste, and Abuse Hit All Industries “Survey participants estimated that the typical organization loses 5% of its revenues to fraud each year. Applied to the 2011 Gross World Product, this figure translates to a potential projected annual fraud loss of more than $3.5 trillion” REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 2012, ACFE © 2014 Ariba – an SAP company. All rights reserved.37
    • 36.  Procurement  Sales  Finance Fraud Is a Cross-industry Topic • A significant portion of the corruption schemes associated with conflict of interest cases occur in Procurement departments. • Due to the nature of the different schemes, other areas usually involved are Sales and Finance. • The industries most commonly victimized in our current study were the banking and insurance, government and public administration, and manufacturing sectors. SOURCE: REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 2012, ACFE © 2014 Ariba – an SAP company. All rights reserved.38
    • 37. What does it mean for an organization? Your key qualifying questions  How does your org identify fraud before damage occurs?  How do you keep track with changing fraud behaviors?  How do you cope with false positive signals?  Are you able to check all transactions for fraud and ensure no business impact? © 2014 Ariba – an SAP company. All rights reserved.39
    • 38. SAP Fraud Management High-level Overview Prevent fraud by stopping fraudulent business transactions and process optimization Detect fraud in real time within business processes and by mass detection by multi-rule strategies Investigate fraudulent transactions efficiently with alert management capabilities and network analyzer tool, and case management Improve performance by real-time calibration and simulation on current and historical data Powered by SAP HANA – high performing, configurable and scalable standard solution © 2014 Ariba – an SAP company. All rights reserved.40
    • 39. SAP Fraud Management Key Differentiators Data mining and documentation  Integrated case management for investigation, documentation and audit compliance  Native full text search  Graphical search modeling Predictive Analytics  Unleash the potential of Big Data  Intuitively design and visualize complex predictive models  Bring predictive analytics to everyone in the business Big Data  Analize huge data volumes in miliseconds in real time  Powerful simulation and calibration tools  SAP and non-SAP systems 10101010101 01000101001 10010110110 © 2014 Ariba – an SAP company. All rights reserved.41
    • 40. Providing More than 15 Predefined Scenarios to Detect and Prevent Fraud in the Procurement Processes  Address search (PEP list search)  High-value keyword search in invoices  Vendors or partners located in high-risk countries  Irregularities in purchase orders and invoices  The invoice receipt quantity is greater than the goods received quantity. In purchasing, it is possible to defraud by invoicing a higher quantity than is actually received.  The amount paid in an invoice is greater than the amount shown in the relevant purchase order item.  Partners appearing in purchase orders and residing in high-risk countries can be flagged, where high-risk countries are those identified in the lists published by Transparency International (for example, http://transparency.org/cpi2012/results).  Irregularities in payments to vendors  Split payments’: Many small payments to a vendor, when the sum of the payments would exceed a limit on such purchases.  There are invoices without corresponding purchase orders.  Payments were made to banks in a country other than that of the vendor in the invoice.  Employees have the same bank data as regular vendors. • Frequent changes in the master data of a vendor (bogus business, flip-flop payee)  The bank data of the vendor has been changed and then reverted to the original data (flip-flop bank data).  The Alternative Payee field has been changed and then reverted to the original state (flip-flop payee).  Conflicts of interest in connection with new vendors  Rapid growth in volume of business with your organization; and  Purchasing approvals granted by a very limited number of employees.  Potentially suspicious activity with respect to one-time vendors  There are many invoices from the one-time vendor; or  There are invoices of a one-time vendor that have been posted to the account of a regular supplier, and these invoices exceed a threshold in invoice value. © 2014 Ariba – an SAP company. All rights reserved.42
    • 41. • Monitor key performance indicators • Create management reports • Manage alert workload • Investigate & evaluate cases • Document & decide remediation actions • Release business transactions • Execute mass and real-time detection • Generate alerts • Stop suspicious business transactions • Activate detection strategies • Simulate and calibrate SAP Fraud Management. Key Features Achieve effective and efficient fraud management • Prepare data acquisition • Define detection and investigation objects • Define rules & predictive models SAP HANA © 2014 Ariba – an SAP company. All rights reserved.43
    • 42. Just get started! Experience SAP Lumira & Fraud Management 1 Try it with your own data! Personal Edition sap.com/trylumira + free trial – search “sap fraud management” 2 … in the cloud https://cloud.saplumira.com http://www.sap.com/pc/tech/in-memory-computing- hana/software/fraud-management/index.html 3
    • 43. Thank You! Contact information: Genaro Pena Vice President EMEA, GRC Solutions genaro.pena@sap.com
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