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PUBLIC
Les Smith, Centre of Excellence, Finance, SAP
The Road to Strategic Finance:
Characteristics of a Highly Effective
...
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
1 Drive strategic growth initiatives
2 Collaborat...
3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Finance leaders
Win by big margins
Finance leader...
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
How do ANZ leaders measure up against their globa...
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
How do ANZ leaders measure up against their globa...
Achieving Strategic Success:
Finance 2020
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
38% of Australian and 42% of
New Zealand responde...
8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Financial ledgers will be data platforms
 The ...
9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 The stakes of failure are high
 Technology wil...
10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The top 3 priorities of
CFOs in Australia and Ne...
11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Enterprise analytics and key performance
indic...
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 Real-time working capital management
 Continu...
13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Robotics and machine learning will
automate 80...
14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Legislation and regulations will increase
 Hi...
15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Though still in early stages, blockchain will
...
16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Cloud applications will provide business
users...
17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
1. Formulate your plan
2. Work at two speeds
3. ...
Achieving Strategic Success with SAP
19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Value scenarios across the entire finance value ...
20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The end-to-end SAP solution
Business performance...
21PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Business performance
Reduced
Month-end closing t...
22PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Maximize efficiency
Automated
Credit limit check...
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60%
Reduction in segregation of duties
(SoD) vio...
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Take the step to building a prize-winning financ...
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Please complete session survey
Locate Session Cl...
Les Smith, Centre of Excellence, Finance, SAP
Les.smith@sap.com
Thank you
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission...
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The Road to Strategic Finance: Characteristics of a Highly Effective Finance Function - SID 51781

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Oxford Economics surveyed 1,700+ CFOs and finance leaders globally, with 300+ in ANZ. The results revealed interesting insights on how finance in ANZ compares to global leaders. Join this session to hear key themes that emerged and use cases of SAP solutions helping finance leaders become more effective in the digital age. Key themes include supporting strategic growth and line-of-business collaboration, staying on top of technology and innovations, and closing the gap between finance and risk.

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The Road to Strategic Finance: Characteristics of a Highly Effective Finance Function - SID 51781

  1. 1. PUBLIC Les Smith, Centre of Excellence, Finance, SAP The Road to Strategic Finance: Characteristics of a Highly Effective Finance Function
  2. 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 1 Drive strategic growth initiatives 2 Collaborate regularly with business units 3 Have effective core finance processes 4 Improve efficiency with automation 5 Have strong influence beyond the finance function 6 Are well equipped to handle regulatory change Six ways CFOs are leading the pack
  3. 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Finance leaders Win by big margins Finance leaders are 90% more likely than nonleaders to report market-share growth. Finance leaders are 30% less likely than nonleaders to worry about rising costs. Finance leaders are 43% less likely than nonleaders to struggle with outdated systems. Market-share growth Cutting-edge technology Control over costs 30%43%90%
  4. 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ How do ANZ leaders measure up against their global peers? Only 38% of Australian and 42% of New Zealand respondents ranked “driving strategic growth” among their top three priorities Australia and New Zealand lag 20% behind global peers on strategically influencing key decisions (incl. procurement, supply chain) When it comes to understanding the importance of emerging technologies, leaders in Australia sit above the global pack, whereas New Zealand leaders lag dramatically  XX Surprisingly, only 56% of Australian and 34% of New Zealand leaders say they are collaborating effectively with procurement X Australia and New Zealand fall behind their global peers on effective collaboration with IT X
  5. 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ How do ANZ leaders measure up against their global peers? “Disruptive effects from tech transformation” is reported as the #1 challenge to making finance more efficient Lack of workforce skills is the outweighing challenge for ANZ on becoming more efficient ANZ leaders see tech as less critical to building effectiveness than global peers and leaders XX ANZ leaders are lagging in collaboration with governance, risk, and compliance (GRC) versus global peers and leaders X Australian finance leaders fall behind global peers on effective core finance processes but are ahead on cost controls X  X
  6. 6. Achieving Strategic Success: Finance 2020
  7. 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 38% of Australian and 42% of New Zealand respondents ranked “driving strategic growth” among their top three priorities 01 Finance’s primary role will be supporting and executing business strategy  Business model transformation  Mergers, acquisitions, and divestitures  Capital allocation
  8. 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Financial ledgers will be data platforms  The ecosystem will be as important as the platform  Finance is connected to robust business networks Finance organizations will implement finance platforms, not ERP systems Finance leaders in Australia and New Zealand see technology as less critical to building effectiveness than their global peers and leaders 02
  9. 9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  The stakes of failure are high  Technology will enable proactive risk management  Requirements are increasingly driven at the board level Finance will own true enterprise risk management Australia and New Zealand are lagging in collaboration with IT, GRC, and procurement versus global peers and leaders 03
  10. 10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ The top 3 priorities of CFOs in Australia and New Zealand are risk, efficiency, and working capital management 04 Finance will be a business value creator  Transfer pricing  Working capital management  Tax optimization  Currency and commodity hedging
  11. 11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Enterprise analytics and key performance indicators (KPIs)  Self-service robots Finance will be the analytics hub of the organization The importance of real-time analytics and predictive analytics to leaders in ANZ is not realized today; however, they recognize the significant role these will play over the next 2 years 05
  12. 12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Real-time working capital management  Continuous accounting and soft close  Dynamic planning Core finance processes will become dynamic and continuous “Disruptive effects from technology transformation” is reported as the #1 challenge to making finance more efficient in Australia and New Zealand 06
  13. 13. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Robotics and machine learning will automate 80% of shared services  Financial reporting, planning, and budgeting will be highly automated  “Lights-out finance” will be the norm Critical financial processes will be highly automated When it comes to understanding the importance of emerging technologies, leaders in Australia sit above the global pack, where as New Zealand leaders lag dramatically 07
  14. 14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Legislation and regulations will increase  Highly automated compliance capabilities are needed  Insight into business networks and business partners is key Compliance will be a strategic differentiator Only 50% of CFOs globally report that they meet on a regular basis with the risk committee, in fact collaborating with other line of businesses 08
  15. 15. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Though still in early stages, blockchain will mature quickly over the next 3 to 5 years  It will bring a two-fold increase in transparency and accuracy in commercial activities between entities Blockchain will reduce transaction costs and increase compliance and transparency 09 Only 33% of global finance leaders realize the importance of blockchain to the future success of the finance function
  16. 16. 16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  Cloud applications will provide business users the same experience as in private life  Purchasing apps will feel like Amazon, travel and entertainment (T&E) systems like Travelocity, budgeting tools like Mint Finance will offer internal users a consumer-grade experience 10
  17. 17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 1. Formulate your plan 2. Work at two speeds 3. Choose your partners Steps to the future
  18. 18. Achieving Strategic Success with SAP
  19. 19. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Value scenarios across the entire finance value chain Value scenarios across the entire finance value chain  Mergers and acquisitions  Dynamic planning and analysis  Real-time customer and product profitability  Continuous accounting  Continuous consolidation  Real-time line manager insights  Revenue recognition and lease accounting (IFRS 15/16)  Real-time plan to actual cash cycle  Bank counter-party risk management  Foreign exchange risks  Real-time receivables management  Automated cash application processes  Buyer-supplier integration  Corporate real estate management  Three lines of defense  Fraud management and screening  Access governance and cybersecurity  International trade management Financial planning and analysis Accounting and financial close Treasury management Financial operations Governance, risk, and compliance for finance VP of finance Head of corporate reporting Corporate treasurer Head of finance operations Chief compliance officer
  20. 20. 20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ The end-to-end SAP solution Business performance  A high-profile CFO can boost revenues.  “Siloed” finance hurts performance.  Growing companies leverage technology.  Core finance is key to profitability. Risk management and compliance  Finance remains tightly tied to GRC.  Macro forces present the biggest medium-term business risks.  Finance execs are sanguine about regulatory challenges…  …Yet some think GRC could do better. Efficiency  Automation enables a strategic finance function.  Daily chores impede adoption of better tools…  …Yet upgrades would help.  Many expect technology’s role to grow. Boost your organization’s performance by ensuring all parts of the business benefit from the finance function’s insight and influence. Maximize efficiency by automating core transactional processes, giving finance executives more bandwidth for value-added tasks. Optimize risk management and compliance by encouraging closer collaboration between finance and your organization’s third line of defense. Use analytics and other digital tools to decrease data complexity, and explore emerging technologies to give your finance function a competitive advantage.
  21. 21. 21PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Business performance Reduced Month-end closing time 75% Faster key business processes <1 second​ For real-time insight into years of data Decreased​ Sales reporting from 2 hours to 20 minutes “The journey we are on will allow us to connect our employees, suppliers, customers, and networks to our digital core. With SAP S/4HANA at the center, we are designing and building solutions that are mobile, intuitive, robust, and valuable, enabling our customers to be more autonomous and productive and to easily do business with us.” David Scullin, CIO, Ballance Agri-Nutrients​
  22. 22. 22PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Maximize efficiency Automated Credit limit checks, PO processing, job orders, production orders, and railway freight calculation Faster Closing of books Better Visibility of raw-material consumption and goods-in-transit stocks​ “With SAP S/4HANA Enterprise Management as our preferred digital core to manage day-to- day business operations and future growth strategy, we look forward to efficiency, productivity and market-share gains.” Yaswant Mishra, President (Corporate) and CFO, Mangalam Cement Limited
  23. 23. 23PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 60% Reduction in segregation of duties (SoD) violations for each role 50% Decrease in access management cycle time 30% Fewer composite and single roles “We have a more transparent environment thanks to SAP governance, risk, and compliance solutions, and we are better informed about SoD violations. It is easier to identify, categorize, mitigate, monitor, control, and report risks in our business processes.” V.R. Indarsarath, Vice President – IT, Wheels India Limited Optimize risk management and compliance
  24. 24. 24PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Take the step to building a prize-winning finance function with SAP Leverage financial expertise in strategic decision making Envision finance as an organization-wide service Consider next-gen technology to automate routine tasks Use analytics to enhance agility and drive strategic growth Encourage collaboration between finance and business units
  25. 25. 25PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
  26. 26. Les Smith, Centre of Excellence, Finance, SAP Les.smith@sap.com Thank you
  27. 27. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See http://global.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. © 2017 SAP SE or an SAP affiliate company. All rights reserved.

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