CIMA Dublin MIAGEN on FP&A Best Practices June '15

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New Thinking, New Possibilities, Cloud CPM

T H E G L O B A L L E A D E R I N C L O U D B I & C P M
FP&A Best Practices
Improve your budget & forecast process

 Howard Kent - Chairperson
 Teddy Murphy – CEO, MIAGEN
 Tim Lee – Senior Consultant, MIAGEN
Today’s speakers

 Best Practices for Planning & Forecasting
 Demonstration
 Panel Discussion
Agenda

Teddy Murphy – CEO, MIAGEN
Best Practices for Planning &
Forecasting

20 Years ago in Budgeting

More than 90% of spreadsheets
contain serious errors, while
more than 90% of spreadsheet
users are convinced that their
models are error-free.
“
”

What has changed............
• Systems - for everything
• Too much data - information overload
• Valuable information – but difficult to find
• Everyone's busy (silos) - doing what?
• More Change - decision making difficult
Today - 2015

10 Years from today............
• Algorithms, Artificial Intelligence, Integrated
• Global connectivity to relevant data, holistic
• Trust systems to produce valuable information
• CFO – Informed Decision Maker & Strategic Leader
• Agile Organisation – Decision Making easier
The Future

The Current State of Planning
Time, Effort, Integrity

What Finance is Saying:
Process and Tech Priorities
8%
9%
9%
11%
11%
13%
16%
Ongoing monitoring
Quality of data
Reducing operating costs
Enterprise-wide view
Product and customer profitability
Sharing relevant information
Decision making
3%
2%
16%
17%
23%
35%
8%
11%
8%
11%
18%
29%
8%
10%
10%
18%
24%
14%
GRC
Reconciliations
Cloud computing
Workflow
ERP
Business analytics
Ranked 1st Ranked 2nd Ranked 3rd
Process Improvement Technology Priorities

Organizations that don’t put
analytics at the core of their
business are not going to survive.
“
”

Where Next? Not Legacy
Powerful Features
o Very Expensive
o Highly Complex
o Slow to Deploy
o Hard to Use
o IT-Intensive
Easy to Use
o Manual / Slow
o Error Prone
o Non-Collaborative
o Doesn’t Scale
o Not Secure
LEGACY ENTERPRISE
LOW-END TOOLS
CLOUD SOLUTIONS
Powerful Features
Easy to Use
Quick to Deploy
No IT Required
Collaborative
Scalable
Continuous Innovation
 

Transforming CPM with the Cloud
Powerful Features
o Very Expensive
o Highly Complex
o Slow to Deploy
o Hard to Use
o IT-Intensive
Easy to Use
o Manual / Slow
o Error Prone
o Non-Collaborative
o Doesn’t Scale
o Not Secure
LEGACY ENTERPRISE
LOW-END TOOLS
CLOUD SOLUTIONS
What do They
Offer?
Powerful Features
Easy to Use
Quick to Deploy
No IT Required
Collaborative
Scalable

Finance Lookstothe Cloud
Source: Forrsights Software Survey, Q4, 2013
Base: 1,417 enterprise and SMB companies
57%
67%
69%
68%
69%
72%
75%
Opex no Capex
Low cost
Ease of updates
Quicker innovation
Reallocate resources
Speed of delivery
Improved agility
Agility
and
Speed
Cost
“How important were the following benefits in your firm's decision to use SaaS?”

Role of Finance – WhereAre You?
Transaction
Management
 Annual
budgeting
 Financial
accounting
Controlling the
Business
 Variance
reporting
 Tax, audit,
treasury
Planning & Analysis
 Rolling forecasts
 Performance
management
 Analysis of drivers
Integrated Functional
Excellence
 Enterprise-wide collaboration
 Empowering business units to
self serve analysis
 Predictive, ‘what if’ planning
Accountants
Dominated by
complex systems
and detail
1
Process Managers
Focus on improved
reporting and
minimising risk
2
Business Partners
Decision support
Provides sound
financial analysis
3
Business Leaders
Integral part of management
Creates value by providing
information and analysis for
operating and strategic decisions
4
Stage
Key Capabilities
Expectations have increased for finance organisations

Best Practice #1
Automate KPIs, Dashboards, Scorecards

Spend LESS time collecting the data and MORE time analysing it
Automate real-time integration of data from any system
Visualise your metrics for instant understanding and new insight
Integrate pipeline and actual sales data from CRM and other systems
Analyse both Financial and Non-Financial Data
Produce timely reporting and analysis, including what-if scenarios
Automate KPIs, Dashboards, &
Scorecards
2 Mth
Return on
Investment
25+
Offices & Mines
Using
$3B
Fleet Equip
Monitored
200
Users
$7B 2K
Revenue Employees
Mining & Construction

Designed well they can convey broader meaning from a much wider
range of data than is possible in any report
The same dashboard can satisfy the demands of more user types,
so it is efficient as well as effective
Its crucial that Users can create and revise dashboards and KPIs as
this makes the data timely and relevant
Why areAutomated Dashboards
Important?
It’s much easier. Adaptive houses data across all platforms – headcount, unit sales, revenues.
Now, managers can view and create their own reports, as well as collaborate across the
organisation.
Christopher Reale
CFO
“ “

Best Practice #2
Make Driver-Based Plans You Can Drill & Flex

Two components to building a Driver-Based Plan
Volume x Price amounts remain discrete and discoverable
Persistent volume and price connections and relationships in a
logically linked hierarchy between various departments
A plan should not be built on the basis of attempting to mimic the actual
transactions, but is there to model the outcome of those transactions
A good Driver-Based Plan will allow people to ask meaningful
questions relating to the operational assumptions
Were there more average units per transaction?
Were there more sales trips than planned?
What is a Driver-Based Plan?
Being able to create various hiring scenarios to see the impact on the bottom line has been a huge
advantage for us.
Ethan Carlson
VP Finance
“ “

Benefits of Driver - Based Plans:
– Increased Accuracy
– Reduced cycle time
– Limited interpretation
– Improved collaboration ( same language as business owners )
– Aligned with business strategy
Key Prerequisites
– Identify and manage true business drivers
– Focus on business activities – not financials
– Include key non-financial drivers
Driver - Based Planning Benefits

Focus on what drives your business
Vary the outcome of plans by flexing drivers to create scenarios
Drill-down from KPIs to transactions & drill-across dimensions to get to
root causes when comparing plans to actuals
Conduct on-the-spot what-if analysis
Reconcile revenue (demand-based) with cost (supply-based) inputs
Use multi - dimensional analytical capabilities to full advantage to extract
maximum understanding
Driver-Based Plans You Can
Drill & Flex
“Simplicity is the ultimate sophistication”
– Leonardo da Vinci

• Complex business
• Huge Excel based model
• In high growth
Ramsay Healthcare - Problem

• Determined drivers and connected to market
demand
• Process for validating the drivers
• Created dynamic planning & better focus
Ramsay Healthcare - Approach

• Can instantly react to changing conditions
• More relevant information for decision making
• Finance team can now add value to the business
Ramsay Healthcare - Result

Best Practice #3
Use Rolling Forecasts

64% of annual targets
are obsolete in 4-6
months
Beyond Budgeting Roundtable

Actual FcstActual Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst
Actual Actual Fcst Fcst Fcst Fcst Fcst Fcst FcstActual Actual Actual
Actual Actual Fcst Fcst FcstActual Actual Actual Actual Actual Actual Actual
E
n
d
o
f
Y
e
a
r
Forecasting to a Fixed Point

Actuals
1st Review
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Annual Plan
x+1
Year x Year x+1
2nd Review
3rd Review
4th Review
Forecast
Migrate from annual budgets to
5-quarter rolling forecasts

Plans should NEVER be out of date
Frequently import actuals and plan with drivers to re-forecast quickly
Get everyone on the same page – integrated actuals & forecasts
Combine financial and operational data
Access to forecast models available on-demand
Drill down to variances across any dimension
Rolling Forecasts
Wanted the ability to conduct rolling forecasts and to re-forecast benefits for union employees as
contracts changed during the course of the fiscal year.
Gwen Hendrickson
Director of Finance
“ “

• The budget had become obsolete
• Error prone Excel templates
• Inefficient and very slow process
DHL - Problem

• Focus on Agility
• Use technology where possible
• Finance focus on assisting business
DHL - Approach

• Rolling Forecasts based on Actuals & KPI’s
• Finance validate and interpret
• Faster, better, unified approach
DHL - Result

Best Practice #4
Enable Self-Service, On-Demand Culture

Put business users in DRIVER’S SEAT with tools to analyse their
own data
Enable users to write their own reports and build dashboards
Provide a planning environment that is available anywhere globally in
an always updated state
Provide easy-to-use interfaces that require minimal training
Reduce strain on finance/IT organisations
Self-Service, On-Demand Culture
Adaptive Planning allows us to easily and affordably manage our international operations planning process
while at the same time satisfy our corporate systems architecture.
Betty Zawada
International Finance Manager
“ “

Best Practice #5
Drive Enterprise-Wide Collaboration

Direct involvement of line managers drives ACCOUNTABILITY for
results – Planning should not just be done by the FP & A team
Need an easy-to-use application so that all managers can participate
Alerts, messaging & annotations enable collaborative communication
on key issues
Process management workflow binds the whole task together
enabling Planning Managers to drive the people and the process
Enterprise-Wide Collaboration
People who never participated in the planning
process before are now creating their own
budgets, which greatly increases their financial
accountability.
Jeffrey Chalmers
Corporate Controller
“
“
Accountability
With 25 participants in the budget process, the level
of access to information, transparency and
collaboration has increased substantially. It builds
confidence between stakeholders and the finance
team.
Mark Powers
Sr. Finance Mgr
“
“
Empowerment

Etihad
• Etihad 2012 - 10 people Finance
• Etihad 2013 - 300 people Worldwide
• Finance became consultants
Etihad Airways - Problem
• Many different data sources
• Scenario planning - difficult and time consuming
• Too much time spent gathering, validating and
reporting

Etihad
Etihad Airways - Approach
• Connected all areas of the organisation
• Assigned plan responsibility
• Moved from Cost Centre to Profit Centre
planning

Etihad
Etihad Airways - Result
• What once took 3 months is now a fluid process
• Can now answer queries and demands from
management quickly and efficiently
• Far more dynamic and agile organisation

Who are Adaptive Insights?

+2,200
customers
200+
partners
50%+
growth
85
countries
#1
share
Our cloud business analytics platform empowers management
teams to transform their planning, reporting, consolidations
and analysis – improving productivity, costs & decisions.
THE GLOBAL LEADER IN CLOUD BI & CPM

Ireland / UK Customers

Disrupting the Market via the Cloud
Powerful Features
o Very Expensive
o Highly Complex
o Slow to Deploy
o Hard to Use
o IT-Intensive
Easy to Use
o Manual / Slow
o Error Prone
o Non-Collaborative
o Doesn’t Scale
o Not Secure
LEGACY ENTERPRISE
LOW-END TOOLS
CLOUD SOLUTIONS
Powerful Features
Easy to Use
Quick to Deploy
No IT Required
Collaborative
Scalable

Complete Modern FP&A Suite
360o view of business performance – past, present & future

OneSuite also means OneProduct
Robust budgeting, forecasting
& reporting
Complete solution for
consolidations & reporting
Visualisation & analysis of any
data from any system
Analyse the Past, Manage the Present, Forecast the Future
In the Same Product
Adaptive
Planning
Adaptive
Consolidation
Adaptive
Discovery

Sources: BPM Partners Pulse Customer Survey, Gartner 2013 CPM Study, Nucleus June 2013 Value Matrix, Forester 2013 Wave
First
IN SATISFACTION
AMONG COMPREHENSIVE CPM
& BI VENDORS
Usability Drives Success
First
IN USER
EXPERIENCE
“A HIGH LEVEL
OF CUSTOMER
SATISFACTION”
First
IN CUSTOMER
EXPERIENCE

Who are MIAGEN?

CLOUD SOLUTIONS
Powerful Features
Easy to Use
Quick to Deploy
No IT Required
Collaborative
Scalable
Forecasting, Planning & Analysis
Est. 2003
Dublin London Abu Dhabi

CLOUD SOLUTIONS
Powerful Features
Easy to Use
Quick to Deploy
No IT Required
Collaborative
Scalable
Our Mission
To Enable Better Decision Making

CLOUD SOLUTIONS

Register today!
You’re invited to join us for a one-day forum
exploring the future of finance. Hear dynamic
keynotes, exchange business insights with
your peers, and have the opportunity to
engage with Solution Specialists or Adaptive
Wizards in 1:1 meetings. Select the location
that works best for you!
www.adaptiveroadshow.com
Dates & Locations
9/9 – San Francisco
9/9 – Sydney
11/9 – Dallas
16/9 – Boston
16/9 – Chicago
17/9 – Atlanta
18/9 – New York
18/9 – Toronto
14/10 - London

Thank You. Be Adaptive!

CIMA Dublin MIAGEN on FP&A Best Practices June '15

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