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Does finance really need enterprise software?


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This is an intro to a recent Finance Roundtable we held in Singapore. There is a more detailed article that I will post as well which provides additional context to this presentation.

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Does finance really need enterprise software?

  1. 1. Does Finance really Need Enterprise Software? Kurt J. Bilafer – Regional Vice President Analytics November 13, 2013
  2. 2. Confusion over the Role of Finance Misconception Focus is on Closing Books Doesn’t understand the business and just slows things down Excel Jockeys Reality Rapidly moving from stewards of the business to Trusted Advisor Have access to the most expensive and accurate data in the organization Embracing Innovations & Improving Transparency © 2011 SAP AG. All rights reserved. 2
  3. 3. Confusion over SAP Misconception SAP just does ERP SAP = EXPENSIVE Deployments take too long Reality Over 50% of SAP’s license revenue comes from non-ERP solutions SAP has solutions for everyone, including SMEs. We offer solutions in the Cloud, on Device and in-memory We have several offerings to accelerate your deployment © 2011 SAP AG. All rights reserved. 3
  4. 4. Greater Expectations of Finance INCREASING PRESSURES ON THE OFFICE OF FINANCE Financial Risk Management Performance Management Operational Efficiency & Effectiveness
  5. 5. How Finance Can Run Better Financial Risk Management Embedded risk management and controls from transactional processing to financial reporting Performance Management Operational Efficiency & Effectiveness Embed a 360° view of enterprise performance with agile budgeting and actionable profitability reporting Streamline financial functions and provide self-service reporting and analysis Lower % revenue at risk Superior Return on Capital Employed (ROCE) Shorter time to close books Reduced incidence of penalties for non compliance Lower proportion of unprofitable products and customers % of time spent of working with the business Minimize risk of financial restatements Minimize # earnings warnings Lower cost of finance as % of revenue
  6. 6. The Cost of Not Knowing… Operational Risk Financial Risk Strategic Risk Diminished customer loyalty Increased cost of capital Loss of revenue streams Decreased shareholder value
  7. 7. Proactively Balance Risk and Opportunity MANAGE BETTER PROTECT BETTER PERFORM BETTER Automate manual tasks Automate monitoring Align with strategy and planning Employ best practices Real-time analysis Embed analytics Reduce effort and cost Industry-specific solutions Scenario modeling
  8. 8. © 2013 SAP AG. All rights reserved. 8
  9. 9. Impact of using Enterprise Software By the Numbers 3x Lower finance cost as percentage of revenue for top quartile organizations versus bottom quartile organizations 76% Higher operating margin where financial systems provide historical and forward- looking views into financial and operational performance 26% Fewer days to close annual books in an integrated G/L system so that no reconciliations are necessary 22% Lower audit cost with the use of automated controls rather than manual controls 13% Higher financial forecast accuracy for top quartile organizations versus bottom quartile organizations 28% Lower error rate in bills sent out when billing system is integrated with A/R and re- entering data is eliminated 24% Higher operating margins where enterprise mobility is embedded in all business processes 15% Fewer days sales outstanding where finance leadership has a financial dashboard that provides a timely view into predefined key metrics