Arjuna - SAP Finance Day

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Arjuna - SAP Finance Day Presentation Transcript

  • 1. ArjunaRealize Financial Excellence in SharedServices OrganizationsFelix PechtoldNovember 2012
  • 2. Agenda1. DSM & Explanation of Arjuna2. Scope & Business Case3. Strategy & How Tooling Supports4. Shared Services Framework5. Question & Answers Page 1
  • 3. Bright Science.Brighter Living.TM creatingvalue for CUSTOMERS EMPLOYEES Meeting consumer Engaged, motivated demands, becoming and talented team supplier of choice SHAREHOLDERS SOCIETY Delivering sustainable Innovations addressing: value creation Global Shifts Health & Wellness Climate & EnergyPage Page 2
  • 4. Unique business positions of DSM Health Nutrition Materials • Global leader in nutritional ingredients for feed, food and personal care • Market leader in anti-infectives and key custom manufacturing player • Market leader in sustainable high performance materials • Merchant market leader in nylon precursor caprolactam • Innovator active in advanced biofuels, biochemicals and biomedical materialsPage Page 3
  • 5. DSM at a glance 2011, continuingoperations • Net sales € 9,048m • EBITDA € 1,296m • Net Profit € 594m • ROCE 14.0% • Capital Employed € 6,581m • Capex incl acquisitions € 1,508m • R&D € 476m • Workforce 22,224 • Amongst leaders in sustainability No 1 in 6 out of 8 years DJSI * Innovation Center and Corporate Activities related Sales & EBITDA weighted distributed over clustersPage Page 4
  • 6. 1. Explanation of Arjuna: The way toArjuna “CSD” “One DSM” Finance Leverage Arjuna Management Financial Agenda Operations Collaborating in ‘One DSM’Page 5
  • 7. 1. Explanation of Arjuna: Arjuna mission statement With Arjuna we are creating a strong foundation for excellent shared financial services within DSM worldwide.We introduce a new vision on organisational excellence, with different points of view, new insights and inspiration. We develop harmonised and streamlined financial processes and supporting tools which will be serviced by a new global FinancialShared Service Organisation, with a Back-Office in India and 6 regional Front-Offices close to our Business Groups and markets. And we do all this in a down-to-earth and respectful way. We are on a journey. Finance in motion, creating new perspectives! Page 6
  • 8. 1. Explanation of Arjuna: Arjuna objectives1. Harmonized & lean processes; improve quality, compliance, speed, transparency2. Enable Finance to focus on more value adding tasks3. Create platform for leverage of other Functions4. Enable Acquisitions and Partnering via easier integration Tooling Goal: (agility) Implement financial processes and5. Reduce costs supporting systems for global Financial Shared Service OrganizationPage 7
  • 9. 1. Explanation of Arjuna: Arjuna roadmap• Runs from 2011 – 2014 • 2011 Mobilization, design & development • 2012 Build SSC Tooling/Processes and Piloting • 2013 – mid 2014 Migration• 5 Pilots with increasing scale & complexity to detail design, test, demonstrate feasibility & capability • Pilot 1 - AR/CM (DSM Business Support Sittard) • Pilot 2 - AP (DSM Food Specialties Delft) • Pilot 3 - AP, GL/Closing, AA (DSM Business Support Sittard) • Pilot 4 – AP, AR/CM, GL/Closing, AA, Reporting, Taxes (SFAC DSM Nutrional Products Basel) • Pilot 5 - AP, AR/CM,GL/Closing, AA, Reporting, Taxes (DSM Engineering Plastics Sittard) Page 8
  • 10. Agenda1. DSM & Explanation of Arjuna2. Scope & Business Case3. Strategy & How Tooling Supports4. Shared Services Framework5. Question & Answers Page 9
  • 11. 2. Scope & Business Case: New organizational model Retained Organisation Activities to be performed close to business for strategic, know-how, sensitivity / confidentiality SSO Organisation SSO Front-Offices Account Man. Problem Solving Language, bus. Legal/ Fiscal/ BGs/SUs /Steering of BO proximity Statutory SSO Back-Office in Hyderabad India Transactional processes, rule-based activities Page 10
  • 12. 2. Scope & Business Case: What is in scope of Arjuna? Wave 1 : focus on trans. processes ================= Wave 2: expand scope Accounts ==================================== Accounts Receivable Payable Asset Acc. • Billing General Ledger • Invoice • Reporting (partly) (incl closing and Processing • Customer consolidation) • Capital Project Payment Receipt Accounting Other • Payments • G/L Accounting Creation and Application Completeness • Investment Reporting • Accounts Payable • Accounts and Correctness Related • Tax Accounting Inquiry, Problem Receivables Accounting • GL Processing • Data Coll. & Val. • Insurance Claims Resolution and Inquiry, Problem and Problem • Master Data for Corp. & BU Handling & Correspondence Resolution and Resolution Rep. Processing • Procurement Correspondence • IC Reconciliation • Man. & Fin. • Management Card Program • Customer Credit • Cash man. Exec. Report (SEM) Activities and Administration Management • Master Data Man. • Collections • Master Data (partly) Controlling Training (partly) • KPI/process • Master Data • T&E (partly) • Legal/Fiscal Acc. reporting • Master Data • Bus. Proc. Man. • CBS/Intrastat rep. (partly) (partly) (partly) • Collections • BS Valuation & • Budget Creation / • Corp. & BU • Consolidation (partly) Result Det. Authorization Planning, ASR, • Treasury • Purchasing Entries Support • Accruals, prov., Analysis (non- • Tax Planning and Prod.Cost., • Managerial Rep. routine) Advise invent. val. • Transfer pricing • Performance • Insurance Policy • Master data Man./MT’s Review & • Bus. Proc. Man. Negotiation • Bus. Risk Man. • Insurance Risk • Ad hoc analysis Assessment Retained Org. activities SSC activities Page 11
  • 13. 2. Scope & Business Case: 2-Wave Migration addressing activities scope of ca 600 out of current 950 FTE Now June-2014 Dec 2015 Wave I Wave II FTE L BC realization L L Activity scope; 50% AP, AR, L GL/Closing, AA L 50% S 50% Activity scope; 50% L 20% S 20% L rule based S 70% 50% 20% Reporting/Control 70% 70% 20% Wave I: Wave II: S S = Small sites (< 8 FTE) •Focus on Accounting •Increase scope by focusing on rule •Learning curve and mitigation of risks based reporting & controlling on migration; starting with small units •Increase Back-Office ratio once •Consolidate small sites; revisiting track-record established small site is not efficient; consolidation to be led by BGs (esp DNP) Page 12
  • 14. 2. Scope & Business Case: Process Improvementsin short 1 Master Data Cleansing Define and clean key Master Data and maintain the required level of quality Benefit: efficient SSO (& higher Back Office ratio), less rework / trouble shooting 2 Execute fit-gap analysis and make an action plan to realize use same terminologyHarmonized & Harmonized & Fast closing activities & schedule (5 days goal) Fast Close Develop implementation per business, ready by end 2012 Benefit: ensure smooth closing process & management report earlier available 3 VAT short- termimprovements Improve process indirect tax from new legislation to declaration Make rule based decision trees, when possible automate Benefit: efficient SSO (& higher Back Office ratio), less rework, tax compliance 4PtPimprovement Combine purchasing categories to uniform purchasing for indirect spent To be embedded in organization Benefit: efficient SSO (& higher Back Office ratio), less rework / trouble shooting 5Inter Companysimplification Comprehensive and efficient budget process Simple invoicing/cost charging process with central monitoring Benefit: reduce manual effort (also from outside finance) and enable ‘fast close’ Page 13
  • 15. Agenda1. DSM & Explanation of Arjuna2. Scope & Business Case3. Strategy & How Tooling Supports4. Shared Services Framework5. Question & Answers Page 14
  • 16. 3. Strategy & Tooling: Deliver Excellent ServiceHow do we become Excellent?The DSM Financial Shared Service Center can improve in 3 important directions:• Gaining efficiency and growth through automation (e.g. SAP FSCM, VIM, FCC) Core Financial Processes are Harmonized and Standardized BG Finance Department able to perform Value Adding Tasks• Gaining efficiency through streamlined communication (Shared Services Framework) Clear Rules of Engagement with standard communication Lines Inbound and outbound communication with clients of the service center are improved by tight integration between communication frontend and business applications• Increasing effectiveness by transparency on Business Performance and SLA’s Measuring and Proving to each other we are keeping promises Page
  • 17. 3. Strategy & Tooling: Deliver Excellent ServiceHow do we deliver Service?Delivering to all BG’s across DSM Harmonized & Lean Processes; improve quality, compliance, speed and transparency Holistic overview across clients is necessaryCollaborate with all Customer Groups Clear Rules of Engagement with standard communication Lines Has an excellent customer care ethos and focus on service qualityHas sufficient scale to optimize economies of scale and adapt to changing demands Using standard processes and technology to plug-and-play (create platform) Enable Acquisitions and Partnering via easier integration Page
  • 18. 3. Strategy & Tooling: Supported by SSF Page
  • 19. 3. Strategy & Tooling: Integrated into oneplatform SSF Including Dispute, Credit, Collection ManagementSAP Invoice Management Multi Backend Financial Closing Cockpit incl CPS scenario Page
  • 20. Agenda1. DSM & Explanation of Arjuna2. Scope & Business Case3. Strategy & How Tooling Supports4. SAP Shared Services Framework5. Question & Answers Page 19
  • 21. 4. SSF: High Level Process overview Communication with (internal / external) partners 1. Start & create 2. Processing service 3. Complete service request request service request 4. ReportingPage 20
  • 22. 4. SSF: Creation of a Service RequestPage 21
  • 23. 4. SSF: AP Process IntegrationLaunch VIM Analytics Dashboard Open SIM Analytics Document View (prefilled with Vendor ID) Create Service Request Open SIM Analytics Dashboard Open DP DocumentPage 22
  • 24. 4. SSF: Business Roles• SSC Front Office AP/GL/AR• SSC Back Office AP/GL/AR• SSC Manager• Occasional User• - (Business Users working in ECC)Each Business Role is specificallydesigned for a certain task andthereby has differences in screenlayout and Navigation Bar entries Page 23
  • 25. 4. SSF: Account Fact SheetConfirm Customer Page 24
  • 26. 4. SSF: AP Process IntegrationConfirm Vendor and Company Code Open SIM Analytics Dashboard (prefilled with Vendor ID) Result List with SIM Document ViewPage 25
  • 27. 4. SSF: InboxPage 26
  • 28. 4. SSF: ReportingPage 27