A Comprehensive Alternative to Spreadsheet Planning

A Comprehensive Alternative to Spreadsheet Planning September 24, 2009

Agenda
Introduction
Corporate Overview
Challenges Facing the Office of CFO Today
Alternative to Spreadsheet Planning
Live Product Demo
Why Edgewater
Q & A

SAP BPC Capability
Technology Management Consulting Firm

Provide a unique blend of specialty IT services
Leverage proven industry expertise in strategy, technology and enterprise performance management
Focus on middle and Global 2000 market

Founded in 1992

Headquartered in Wakefield, MA
300 Employees, 240 Consultants
600 Clients
Large North American Footprint
+2000 Projects Completed to Date
Publicly Traded (NASDAQ: EDGW)

Challenges Facing the Office of CFO Today
Under pressure to drive profitability improvements and increase the resilience of their organizations.
This can not be done without aligning the organization around shared strategic objectives, and plans that can be adjusted to the rapidly changing realties of the market.
Improve planning accuracy and associated costs
Reduce budget cycle time and be confidence in financial results and reports

The Problem Is…
Data - accuracy and predictability

Historical data in multiple systems and spreadsheets - no central, data store

Process – efficiency and standards

No linkage and enforcement with standard business processes
Budgeting process takes too long and is error prone

Execution - usability and adaptability

Existing planning products are difficult to use and inflexible – designed for power users
Too much dependency on IT for business specific tasks

“
Companies typically realize only about 60% of their strategy’s potential value because of defects and breakdowns in planning and execution.”
Source: Harvard Business Review
Many modeling products just don't offer a good mix of usability and flexibility.”
Source: Simplicity Is Golden – CFO.com January 2006

And…
Global regulations - accentuating critical data, process and execution issues
“
By 2012, 90% of public companies will face mandatory, audited public reporting requirements for financial controls, and 50% will face mandatory non-financial reporting (0.8 probability).”
Source: Gartner - 2nd March 2007 - “Audits and Events Drive Governance, Risk and Compliance Spending” by Eid and Caldwell *
One of every ten public companies, whether based in the US or abroad” is having to re-state earnings”
Source: CFO Europe.com – “Say Again?”: April 2007

Sarbanes Oxley and other government and regulatory mandates require companies to be accountable for the accuracy of their finances”
Audit costs as part of the compliance process are extremely high
Mandated process changes
Globalization

Continuous Planning – from “nice to have” to necessity
Increased economic uncertainty - throw your annual budget out the window

What if the cost of fuel is a key cost driver of your business?
What if the price of crude oil is a key revenue driver of your business/state?

Continuous planning and rolling forecasts required to quickly adapt to dynamic economic conditions

What are new opportunities and risks?
How will these impact our targets?
What action do we take and what is the potential impact?

Rollercoaster ride

>40% increase in barrel of oil in 4 mos
>60% decrease in barrel of oil in 3 mos

And the Solution Is…
SAP BusinessObjects Planning and Consolidation (BPC)
Forrester Rating of the Planning product capabilities of EPM vendors, on a scale of 1-5 (Oct 2007)

Sample ROI

Reduced financial close from 5 days to 1 day
70% headcount reduction in finance department
Saved thousands by changing the reports distribution
Planning cycle went from 4 weeks to hours
Required 25% of the resource of other vendors to maintain
Millions dollar increase in revenue by providing better performing what-if scenario for tracking trade promotion opportunity
This is a world-class enterprise solution at an affordable price

SAP BPC
Streamlined planning, budgeting, forecasting and fast close
Familiar and easy to use

Enables rapid adoption by leveraging native Microsoft Office tools (e.g. Excel) and web browsers accessing a central database
User owned and managed

Process-centric

Configurable business process flows guide users and drive process consistency

Unified

Single, integrated application reduces maintenance, improves data integrity, and simplifies deployment while enabling flexible planning & consolidation functions

SAP BPC
Streamlines planning and automates consolidation

Supports top-down and bottom up planning leading to timely, more accurate plans that are aligned with strategic goals
Facilitates collaborative planning across all functions for more accurate budgets
Enables continuous planning and rolling forecasts to meet rapidly changing business conditions and reduce budget cycle time
Automates the consolidation process, meeting all financial reporting requirements with a complete audit trail for a fast, accurate close

Operational Tasks
Analysis &Reporting
Collection
Distribution
Consolidation
Communication
Strategic Planning
Budgeting
Business Processes
Periodic Close
Forecasting
Performance Measurement

Familiar and Easy to Use
Familiar and easy-to-use interfaces reduce learning curve and increase adoption

Choice of Word, PowerPoint, Web and Excel interfaces
Excel without “spreadsheet hell” - live access to central data repository creates a single version of truth, ensuring organizational alignment
Allows use of native Excel functions, formatting, and formula preservation, reducing training time and costs
Easy adoption of existing Excel templates as planning schedules

Context-sensitive intelligent action panes aid productivity

Guides activities and improves productivity
Helps users know “what” to do “when”, “why” and “how”
Facilitates collaboration with built-in discussion threads and unstructured data sharing

Setup by IT owned and managed by business users
Business User Responsibility

Application Security
Users
Roles
Privileges
Hierarchies and Roll Ups
Business Process Flows
Modification of Packaged Process Flows
Creation of New Process Flows
Report Templates
Excel, Word, PowerPoint Templates
Create and Modify Metrics and Measures

IT Responsibility

Hardware
Security and Authentication
Users
Roles
Privileges
Data and Application Infrastructure
Database Server
Application Server
OLAP Structure

Self-service financial reporting ensures any user can create information on the fly
Wizard-driven interfaces simplify content creation and administration processes

Process-centric
Customizable business process flows ensure consistency and minimize training

Step-by-step guidance through planning processes
Enforce policies and procedures - track process status and completion
Out-of-the box templates for sales and revenue planning, CAPEx planning, workforce planning, budgeted financial statement reports, forecasting and more

Integrated planning and consolidation
Unified
Forecasting and consensus building

Rolling forecasts
Continuous planning
Collaboration

Business planning

Budgeting
Sales/revenue planning
Capital expenditure planning
Headcount/staffing
Expense planning
Cash flow planning

Financial reporting and analysis

Ad hoc
Automated variance analysis
Driver analysis (industry, growth, capacity, etc.)

Consolidation

Intercompany matching/reconciliation
Intercompany eliminations
Management roll-ups
Legal consolidation

Fast implementation

Pre-packaged content reduces implementation times by up to 80%
Dynamic configuration enables easy customization to specific requirements
Complete, generic reference implementation

Rapid and trusted legal compliance

Embedded expertise in meeting financial regulations including best practice in financial consolidations and internal controls
Detailed process guidance for business users

Comprehensive scope

IFRS specific chart of accounts
Pre-configured IFRS consolidation rules, controls, and calculations
Publishable financial statements

Starter Kits
Faster legal compliance – reduce implementation times

Analysis & Audit Trail

Dynamically formatted accounting and analysis reports leverage native drill down
Audit IDs for tracking data origin

IAS 1 Publishable Financial Statements

Balance Sheet (current/non-current format)
Income Statement (by function)
Cash Flow Statement (generated automatically)
Statement of Changes in Equity
Segment information

XBRL Templates

Excel templates pre-mapped with IFRS taxonomy

SAP BPC Starter Kit for IFRS
Analysis, audit trail and publishing of financial statements

SAP BPC Live Product Demo
Distribute plans and analyze variances to drive re-forecasts
Report
Consolidate and model multiple scenarios
Analyze
Collaboratively create plans and forecasts
Collect
Communicate top down targets, timelines, and guidelines
Communicate

Successful Stories – Watkins Manufacturing

Successful Stories – Beckman Coulter

Summary
Benefits
Familiar and easy to use