FUTURE OF FINANCIAL CLOSE & EPM

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1 FUTURE OF FINANCIAL CLOSE & EPM - Så kommer ny teknik att göra snabba bokslut ännu snabbare - Intro slides & teaser for IFRS day breakout further slides and details to be explored and covered in the breakout session

2 We are the largest EPM Consultancy in Europe- 150 dedicated EPM consultants to enable depth and breadth across the EPM landscape. Uniquely, we are Europe s only true end to end provider of EPM services, spanning advisory and functional consulting services to hosting, technical and managed services. We integrate functional and technical expertise within our teams to enable clients to fully exploit Cloud technologies with robust strategies, processes and organizational capabilities. Financial close leadership: With numerous successful implementations completed and ongoing, we are leaders in this market, leveraging a highly experienced and specialist team. 2 04/09/ inlumi

3 EPM REFERS TO AN INTEGRATED PROCESS FOR MANAGING PERFORMANCE IN THE CORPORATION Strategy Execution Develop and deploy Strategic plan Translate strategy into measurable targets based on key value drivers Define KPIs based on Strategic and Operational targets Strategic Planning Take decisions, make corrective actions Profitability analysis Financial analysis Cascade and deploy KPIs and targets to BAs, BUs etc. Data model Enablers & Calaysts Governance Provide strategic input based on results and analysis Spend analysis Ensure understanding, commitment and accountability Target Setting & Scorecards Architecture Processes Planning & Forecasting Reporting & Analytics Monitor, consolidate, report and analyze outcome and results Advanced Analytics Tax and Transfer Pricing 3 Develop plans based on targets and defined assumptions and scenarios Forecast based on actual outcome, trends and realistic scenarios Business performance

4 SUPPORTED BY MODERN INTEGRATED TECHNOLOGY Source layer Reporting, Presentation & Analysis layer Financial Reports, Advanced Analytics, Operational reports, Predictive Scenarios, Self Service, Trends, Alerts, Historical Analytics Processing layer Integration layer Data Lake Analytics Processing Big Data Integration Social Media Devices & Sensors Weather, Traffic, Demographic etc data ERP Sources

5 FINANCIAL CLOSE IS A KEY PROCESS WITHIN THE EPM SCOPE - INCREASINGLY ENABLED BY MODERN TECHNOLOGY Process Sub-ledgers reconciliation Single entity reporting Consolidation Analysis & Reporting Financial disclosure and filing Challenges Manual and decentralized process Dependency of individuals Increasing operational agility Efficiency and adding value Process Automation Un-structured data Delivering a flow of actionable, reliable, insightful data Regulatory pressure Operational requirements 5

6 FOUR KEY TECHNOLOGIES IMPACTING THE FUTURE OF FINANCE EPM 2.0! Cloud Cloud enables the scalable provisioning of IT capabilities whether hardware, software or services, acting as a carrier and enabler of other digital technologies. Finance Analytics Finance Analytics seeks to discover and interpret meaningful patterns across financial data and non-financial data, enabling predictive insights. Robotics Robotics enables the automation of manual processes, with tasks executed based on instruction and without human judgement. AI Artificial Intelligence (AI) enables machines to imitate intelligent human behaviour, learning from past behaviour to exercise judgement. 6

7 WHILE THESE TECHNOLGIES ARE REAL AND AVAILABLE, FINANCE IS STILL LAGGING STATE OF FINANCE A focus on regulatory drivers, fixing the basics & cost reduction has resulted in: Primary attention on ERP/ accounting systems, Shared Services and external reporting Controlling/FP&A still relying on spreadsheets New development and capability areas for Finance are underpenetrated The value of data is understood, but not articulated in business cases How to get from Spreadsheet Hell to Strategic Partner? Implementation of EPM technology alone is not enough to enable transformation Re-engineering of processes, talent, governance and the organisation is critical. Monday Tuesday Wednesday Thursday Friday Collecting data Time Allocation today Collecting data Maintaining Spreadsheet s Developing Reports Maintaining Spreadshee ts KEY QUESTION Other Activities Performing Analysis Developing Reports Monday Tuesday Wednesday Thursday Friday Collecting data Performing Analysis Time Allocation tomorrow Performing Analysis Interacting with Decision Makers Interacting with Decision Makers Other Activities Strategic Initiatives Personal Developme nt inlumi

8 ADOPTING NEW TECHNOLOGY IS A JOURNEY FINANCE MUST SIMULTANEOUSLY LOOK TO THE FUTURE TO STRATEGICALLY EXPLOIT THESE EMERGING TECHNOLOGIES, WHILE TAKING IMMEDIATE TACTICAL STEPS TO FIX THE BRAKES TO CHANGE. Finance must address basic pain-points and reach Fitness before these digital disrupters can be exploited and Finance can begin effective Transformation. EPM 2.0 starts by defining EPM strategies and roadmap, as well as implementing robust building blocks needed to enable acceleration to EPM 2.0. EPM Maturity Journey to EPM EPM Strategy Technology Strategy Data Strategy 2020 Path to Transformation Enabling acceleration to Analytics Process Excellence Path to Fitness EPM 2.0 Org and Talent Fixing the Basics 8 Time

9 TECHNOLOGY-DRIVEN DISRUPTION & FINANCIAL CLOSE Key technology drivers for finance Cloud Analytics Robotics Artificial Intelligence Transaction Domain (ERP) Finance Factories Fully automated & integrated 100% digitalized documentation Accounting automation Robotized processes Continuous control & process visualization Emerging trends in Financial Close Automated process and close management linked with entire close cycle Account reconciliation Disclosure Management and self learning structured reporting & filing Extended Workflow capabilities Predictive accounting Real time availability of data inlumi

10 EPM ROADMAP AND VISION Vision and Roadmap Technology Selection Implementation An EPM Roadmap should outline four key dimensions: Process People & Governance Technology Data inlumi

11 SUMMARY FINANCE IS UP FOR A BIG DIGITAL CHANGE: DRIVEN BY TECHNOLOGY BUT DEPENDENT ON STRATEGY AND PEOPLE. FINANCE MUST START TO MAKE PREPARATIONS TO EXPLOIT THESE DIGITAL DISRUPTERS, BOTH STRATEGICALLY AND TACTICALLY.. Strategic Predictive Comparative No human middleware Quality control 24/7 Digital Finance Confidence Scenarios Analysis Fast Flexible Up to date 11