Technology as an Enabler for Finance Transformation

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Leveraging automation and business intelligence tools across Finance, Accounting and Procurement

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Technology as an Enabler for Finance Transformation

  1. 1. Technology as an Enabler for Finance Transformation:Leveraging Automation and Business Intelligence Toolsacross Finance, Accounting & Procurement
  2. 2. Siemens in the USASnapshot of 2009 A Global Company with strong U.S. presence Rank 30th on Fortune Global 500 Rank #1 on Fortune’s Electronics, Electrical Equipment list Export $1.6 billion from U.S. operations 20% of Siemens’ global revenue generated in US—largest country Would be in the Fortune 120 if a standalone company in the U.S. Every Business Day… …We help the U.S. Postal Service process all letter mail delivered to American homes and businesses U.S. Fast Facts Fiscal Year 2009: …We filter one in ten glasses of water consumed by AmericansRevenues $21.3 billion …We help treat more than 30,000 cancer patients with our radiation therapy systemsOrders $19.9 billion …We process 190 million U.S. healthcare informationEmployees 64,000 transactionsBuilding …We help provide baggage security services in 450 ofLocations 760 America’s commercial airportsGlobal HQs 9 …We average more than five new U.S. patents to help improve the lives of millions of AmericansPatents 5,329 …We help provide power to more than 100 million people (1)
  3. 3. Global MatrixVertically aligned sectors/divisions --- Regionally managed central functions/shared services Industry Energy HealthcareDivisions Divisions Divisions Drive Technologies Fossil Power Generation Imaging & IT Industry Automation Renewable Energy Workflow & Solutions Building Technologies Oil & Gas Diagnostics Mobility Energy Service Lighting (OSRAM) Power Transmission Industry Solutions Power Distribution
  4. 4. Global Shared Services NA: Accounting and FinancePortfolio of services Accounts Payable Fixed Assets 2.2M invoices Expense Reporting 600K Expense Reports, 28K Cards Asset Additions/ changes Imaging Operations Disposals/physical inventory Vendor Maintenance EZ-X / Expense Reimbursement Closing/reporting Invoice Processing Audits – Continuous Monitoring Tax reporting Payment Processing AP Inquiries Accounting/Control/Reporting General Ledger Journal Entries Account Reconciliations Closing/Reporting Tax Audit support 18K returns, 70 audits Inter Company Clearing Sales & Use Tax Returns Accounts Receivable 400K Invoices Property Tax Returns Accounts Payable Unclaimed Property Returns Collections Accounts Receivable (FI Billing) Audits & Consulting Dispute management Clarification Server / Disputes Strategic Review/Claim mgmt Cash Applications Annual Reports Customer Master Data 1042 Filings Maintenance (CMDM)
  5. 5. Global Shared Services NA: Accounting and FinanceEvolution and key achievements Initial Transition (’00/’03) Standardize / Offshore (’03-’05) Transform (’06-’09) Initial transition – lift and shift Developed & implemented Automation/outsourcing of offshore service delivery all transactional activities Developed basic tools to center enable centralized delivery Web Based Self Service Drove standardization functionality Electronic Imaging & archiving capabilities Implemented formal Call tracking / incident benchmarking management system Standardized SLA with Continuous Monitoring / transactional pricing Fraud Detection / Compliance controls Formalized metrics and reporting End to end process improvements and savings A&F services grew from 10% to 95% market share while reducing cost per transaction by 60-70% across all mature service lines
  6. 6. GSS NA Accounting and Finance TransformationStrategic role of technologyQ Q Q Q1 2 3 4 Transformation Objectives Transparency and compliance 80% of Siemens’ acquisitions in past five years Process effectiveness and efficiency have been in the USA End to end quality improvements and cost reductions Energy Wheelabrator (2005) Full scale USFilter (2004) Industry Robicon (2005) UGS (2007) Challenges Multiple vertically integrated and business specific Healthcare CTI Molecular (2005)ERP systems which bundle finance functions with Diagnostic Products (2006)engineering, production and logistic functions. Bayer Diagnostics (2007) Transformation managed and executed on North Dade Behring (2007)American level Ongoing regional & global M&A activities
  7. 7. GSS NA Accounting and Finance TransformationStrategic role of technologyQ Q Q Q1 2 3 4 Transformation Objectives Technology Approach Transparency and compliance Strategy: Process effectiveness and efficiency Sustain benefits of vertically aligned ERP systems and End to end quality improvements and cost reductions processes Full scale Complement ERP functionality with middleware and best of breed solutions to create integrated, scalable and robust technology platform Challenges Execution: Multiple vertically integrated and business specific Processes clearly defined to level 5ERP systems which bundle finance functions with Map to existing systems & best in class functionalityengineering, production and logistic functions. Key decisions on configurability, integration points, Transformation managed and executed on North process and data standardizationAmerican level Start with high impact solutions and grow end to end Ongoing regional & global M&A activities Leverage opportunities created along the way
  8. 8. Accounts PayableUsing technology to transform financial processes Invoice Invoice Invoice Submission Approval Processing Configurable workflow LOA/Approvals Automated escalations ERP 1 ERP 1 paper Scanning, ERP 1 paper E-WorkflowInvoice Indexing ERP 2 Invoice ERP 1
  9. 9. Accounts Payable Using technology to transform financial processes Invoice Invoice Invoice Submission Approval Processing Leverage multiple Configurable workflow channels for electronic LOA/Approvals submission PO Flip Automated escalations EDI for large volume vendors Low cost options Web Entry ERP 1 ERP 1 E-invoice ERP 1 E-Workflow Submission ERP 2Direct Vendor Integration ERP 1 Electronic PO & Invoice Data
  10. 10. Accounts Payable Using technology to transform financial processes Invoice Invoice Invoice Submission Approval Processing Leverage multiple Configurable workflow Built in business rules channels for electronic for compliance, PO LOA/Approvals submission match & tax PO Flip Automated escalations EDI for large volume Minimize exceptions vendors Direct integration with Low cost options multiple ERP Web Entry ERP 1 ERP 1 E-invoice ERP 1 E-Workflow E-Voucher Submission ERP 2Direct Vendor Integration ERP 1 Electronic PO & Invoice Data
  11. 11. Accounts Payable Using technology to transform financial processes Invoice Invoice Vendor / Invoice Submission Approval Customer Processing Services Leverage multiple Configurable workflow Built in business rules for Vendor Self Service channels for electronic compliance, PO match & inquiry LOA/Approvals submission tax Real time status of PO Flip Automated escalations EDI for large volume Minimize exceptions payments vendors Direct integration with Query entry Low cost options multiple ERP Web Entry E-invoice Invoices E-Workflow E-Voucher Submission OnlineDirect Vendor Integration Electronic PO & Invoice Data
  12. 12. Accounts Payable Using technology to transform financial processes Invoice Invoice Vendor / Invoice Submission Approval Customer Processing Services Leverage multiple Configurable workflow Built in business rules for Vendor Self Service channels for electronic compliance, PO match & inquiry LOA/Approvals submission tax Real time status of PO Flip Automated escalations EDI for large volume Minimize exceptions payments vendors Direct integration with Query entry Low cost options multiple ERP Web Entry E-invoice Invoices E-Workflow E-Voucher Submission OnlineDirect Vendor Integration Call Tracking & Incident mgmt Electronic PO & Invoice Automated Metrics Data Metrics 24 22 February 20 Customer 18 Maintenance 16 14 Cycle Time 12 10 8 6 S tandard 4 Target Standard 2 0 Ma r- Apr- Ma y- Jun- Jul- Aug- Se p- Oct- Nov- Dec- Jan- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07 6 February Customer 5 Maintenance 4 Cycle Time 3 2 E mergenc y 1 E mergenc y Target 0 Ma r- Apr- Ma y- Jun- Jul - Aug- S ep- Oct- Nov- De c- Ja n- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07
  13. 13. Accounts Payable Using technology to transform financial processes Invoice Invoice Vendor / Invoice Compliance Submission Approval Customer Processing & Analytics Services Leverage multiple Configurable workflow Built in business rules for Vendor Self Service Fraud Detection channels for electronic compliance, PO match & inquiry LOA/Approvals Duplicate payment submission tax Real time status of prevention PO Flip Automated escalations EDI for large volume Minimize exceptions payments Vendor Risk analysis vendors Direct integration with Query entry Low cost options multiple ERP Web Entry E-invoice Invoices Automated E-Workflow E-Voucher Submission Online complianceDirect Vendor Integration Call Tracking & Incident mgmt Electronic PO & Invoice Automated Metrics Data Metrics 24 22 February 20 Customer 18 Maintenance 16 14 Cycle Time 12 10 8 6 S tandard 4 Target Standard 2 0 Ma r- Apr- Ma y- Jun- Jul- Aug- Se p- Oct- Nov- Dec- Jan- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07 6 February Customer 5 Maintenance 4 Cycle Time 3 2 E mergenc y 1 E mergenc y Target 0 Ma r- Apr- Ma y- Jun- Jul - Aug- S ep- Oct- Nov- De c- Ja n- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07
  14. 14. Procure to Pay Using technology to transform financial processes Invoice Invoice Vendor / Invoice Compliance Submission Approval Customer Processing & Analytics Services Leverage multiple Configurable workflow Built in business rules for Vendor Self Service Fraud Detection channels for electronic compliance, PO match & inquiry LOA/Approvals Duplicate payment submission tax Real time status of prevention PO Flip Automated escalations EDI for large volume Minimize exceptions payments Vendor Risk vendors analysis Direct integration with Query entry Low cost options multiple ERP Web Entry E-invoice Invoices Automated E-Workflow E-Voucher Submission Online complianceDirect Vendor Integration Call Tracking & Leverage line Item Incident mgmt Invoice & PO data for Electronic PO & Invoice Automated Metrics Procurement & Spend Data analysis Supplier Performance Metrics 24 22 20 18 16 14 12 Customer Maintenance Cycle Time February Contract negotiation 10 8 6 S tandard 4 Target Standard 2 0 Ma r- Apr- Ma y- Jun- Jul- Aug- Se p- Oct- Nov- Dec- Jan- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07 6 February Customer 5 Maintenance Cycle Time Procurement 4 3 2 E mergenc y 1 E mergenc y Target Analytics 0 Ma r- Apr- Ma y- Jun- Jul - Aug- S ep- Oct- Nov- De c- Ja n- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07
  15. 15. Procure to Pay Using technology to transform financial processes Vendor Invoice Invoice Vendor / Invoice Compliance Maintenance Submission Approval Customer Processing & Analytics Services Web based forms Leverage multiple Configurable workflow Built in business rules for Vendor Self Service Fraud Detection channels for electronic compliance, PO match & inquiry Built in compliance LOA/Approvals Duplicate payment submission taxchecks & controls Real time status of prevention Automated escalations EDI for large volume Minimize exceptions payments Master data Vendor Risk vendors analysisstandardization Direct integration with Query entry Low cost options multiple ERP W-9 collection LOA/Approvals Escalation/ queue E-invoice Invoices Automated E-Workflow E-Vouchermanagement Submission Online compliance Electronic signature /document controls Leverage line Item Invoice & PO data for Electronic Procurement PO & Invoice Procurement & Spend Analytics Data analysis Supplier Performance Contract negotiation Procurement Analytics
  16. 16. Procure to Pay Using technology to transform financial processes Catalog Mgmt Invoice Invoice Vendor / Invoice Compliance & PO placement Submission Approval Customer Processing & Analytics Services Increased compliance Leverage multiple Configurable workflow Built in business rules for Vendor Self Service Fraud Detection channels for electronic compliance, PO match & inquiry Reduced maverick LOA/Approvals Duplicate payment submission taxspend Real time status of prevention Automated escalations EDI for large volume Minimize exceptions payments Automated PO Vendor Risk vendors analysisplacement Direct integration with Query entry Low cost options multiple ERP E-invoice Invoices Automated SRM E-Workflow E-Voucher Submission Online compliance•Real time pricing Leverage line Item Call Tracking &•Reduced invoice Incident mgmt Invoice & PO data for Electronicdiscrepancies PO & Invoice Procurement & Spend Automated Metrics•Improved adoption Data analysis Supplier Performance•Use of negotiated Metricscontracts 24 22 20 18 16 Customer Maintenance February Contract negotiation 14 Cycle Time 12 10 8 6 S tandard 4 Target Standard 2 0 Ma r- Apr- Ma y- Jun- Jul- Aug- Se p- Oct- Nov- Dec- Jan- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07 Online 6 5 4 3 2 Customer Maintenance Cycle Time E mergenc y February Procurement Catalogs Analytics 1 E mergenc y Target 0 Ma r- Apr- Ma y- Jun- Jul - Aug- S ep- Oct- Nov- De c- Ja n- Fe b- 06 07 07 07 07 07 07 07 07 07 07 07
  17. 17. Results …Robust, integrated technology platform enables standard, compliant and cost efficient processing in a complex cross functional environment …Configurability allows further process standardization and easy rollout of policies …Visibility of data and operational / quality metrics drives end to end process improvements and best practice adoption …Fast rollout to new companies (3-6 weeks) …Flexibility to utilize multiple electronic submission solutions …Fast Vendor Adoption – One stop solution for vendors …Optimal technology investment with significant potential
  18. 18. Questions, Comments?Margarita GoshevaCIO, VP Information TechnologySiemens CorporationGlobal Shared ServicesNorth America407-487-5091 (office)3500 Quadrangle BoulevardMail Stop: AL-X 444Orlando, FL 32817margarita.gosheva@siemens.com
  19. 19. Backup
  20. 20. Strong Presence Across the U.S.Siemens USA: 64,000 Employees in all 50 States >4,000 >8,300 >4,100>5,300 >4,100 >5,700 >5,900 1-500 Employees Gray 500-1,500 Employees Green 1500-2,500 Employees Yellow 2,500-3,500 Employees Orange Over 3,500 Employees Blue
  21. 21. Global Innovation LeadershipSiemens in the USA: Home to nine worldwide businesses / divisions Healthcare Healthcare Molecular Imaging Diagnostics Healthcare Hoffman Estates, IL Chicago Oncology Care Systems Concord, CA Industry VAI Metals Worcester, MA Industry Water Technologies Warrendale, PAHealthcareUltrasoundMountain View, CA Healthcare Health Services Malvern, PA Industry PLM (Product Lifecycle Mgt.) Energy Plano, TX Energy Service Orlando, FL
  22. 22. GSS has a global footprint with wellestablished Shared Service Centers Number of GSS employees Erlangen, Nuremberg around the world The Hague in the largest locations 20081) Frimley Glasgow Germany 1,400 Prague Munich Americas 830 Vienna Iselin Lisbon Beijing Atlanta Madrid Orlando India 820 Mumbai Bangalore Mexico City Czech Rep 460 Bogota Singapore UK 450 São Paulo Austria 380 Buenos Aires China 310 Portugal 200 AMCs GSS HQ Delivery centers Regional HQs1) Headcount figures are FY 08 year end forecast, as at end May 08
  23. 23. Siemens in the USASnapshot of 2009 A Global Company with strong U.S. presence Rank 30th on Fortune Global 500 Rank #1 on Fortune’s Electronics, Electrical Equipment list Export $1.6 billion from U.S. operations 20% of Siemens’ global revenue generated in US—largest country Would be in the Fortune 120 if a standalone company in the U.S. Answers for America’s Industrial Needs We’re a leading provider of product lifecycle software for digital manufacturing We process all mail in the USA for the U.S. Postal Service U.S. Fast Facts We’re a leading provider of air pollution control systems Fiscal Year 2009: We provide building and lighting solutions for airports, hospitals, stadiums and renowned American landmarksRevenues $21.3 billion We’re the #1 provider of light rail mass transit vehicles We’re the #1 supplier of water treatment systems for industry andOrders $19.9 billion municipalitiesEmployees 64,000 Answers for America’s Energy Needs We provide turbines powering one-third of America’s total daily energy needsBuildingLocations 760 We’re a leading provider of power generation and delivery solutions designed to help reduce C02 emissionsGlobal HQs 9 Answers for America’s Healthcare Needs We’re the first integrated healthcare company that brings togetherPatents 5,329 imaging and lab diagnostics, therapy, and IT. We’re the #1 healthcare IT service provider (1)
  24. 24. Siemens in the USAEvery Business Day… …We help the U.S. Postal Service process all letter mail delivered to American homes and businesses …We filter one in ten glasses of water consumed by Americans …We help treat more than 30,000 cancer patients with our radiation therapy systems …We process 190 million U.S. healthcare information transactions …We help provide baggage security services in 450 of America’s commercial airports …We average more than five new U.S. patents to help improve the lives of millions of Americans …We help provide power to more than 100 million people
  25. 25. A pioneer of our time – yesterday, today and tomorrow From the first direct transatlantic telegraph cable – to the floating wind turbine Vom ersten direkten Transatlantikkabel – zu From the Electric Victoria – to the freischwimmenden Windanlagen Greenster Vom ersten direkten Transatlantikkabel – zu From the first views inside the body freischwimmenden Windanlagen one – to 3D body scans in less than second
  26. 26. Innovation is our lifeblood Major R&D investments Major innovations€3.9 billion in fiscal 2009, or 5.1% of Our patent position in fiscal 2009:revenue Germany: No. 231,800 R&D employees worldwide Europe: No. 217,000 software engineers USA: No. 12176 R&D locations in over Most recent innovations:30 countries around the world Somatom Definition Flash: CT with fastest imaging and lowest7,700 inventions in FY2009 radiation dosageMore than 56,000 active patents Efficient power transport (HVDC): the new 800-kV high-voltage, direct- current transmission system minimizes power losses Arvedi endless strip steel production: new plant delivers energy savings of 45 percent and steel of superior quality
  27. 27. Committed to profit and growth Revenue by Sector Revenue by regionHealthcare Cross-Sector Asia, Australia Germany 7,7 Businesses€11.9 billion 7% €5.4 billion 16.5% 15% 15% % 45% 49% Industry 27% 41.5% 33% 29% Europe, CIS, Energy €35 billion Americas Africa, Middle East Total Revenue Sectors and (excl. Germany)€25.8 billion Cross-Sector Businesses Location of customer Revenue and employees Key figures100.000 500 Continuing operations (in millions of euros) FY2008 FY2009 Employees in thousands 80.000 400 Revenue 77,327 76,651 60.000 300 New orders 93,495 78,991 40.000 200 Income 1,859 2,457 20.000 100 Free cash flow 5,739 3,786 Revenue in millions of euros Employees 427,000 405,000 FY 1985 1990 1995 2000 2009
  28. 28. Global presence – basis for competitiveness Germany 128.000 83 12.8 Asia, Australia Americas 32%15% 84 80 20.8 91.700 70.300 2.6 1 16,5 Europe, CIS, Africa, Middle 17% % 23%27% East (excl. Germany) 31.8 114.900 67 41,5 28% %As of September 30, 2009 Employees Revenue (billions of euros) Major facilities

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