Agenda Discover the benefits of an integrated financial planning

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2 Agenda Discover the benefits of an integrated financial planning Introduction Business benefits of an integrated financial planning Overview of the SAP planning solutions Real-time planning and reporting in a modern finance department

3 We are Flexso, experts in SAP Reliable, innovative, flexible & solution driven

4 History From SAP innovation to business innovation

5 Facts & figures Close to the customer 200 consultants 32 million euro 20% growth per year 5% attrition 120 active customers Top in Belgium 25 countries 4500 Cronos consultants

6 Business competence centers Enterprise management

7 Discover the benefits of an integrated financial planning

8 Challenges of finance departments Increasing complexity of external conditions Explosion of Big Data Pressure to support global growth initiatives Requirement to reduce the cost of finance Digital work style enabled by networks and mobility Accelerated adoption of technology innovations

9 Benefits of an agile and integrated financial planning

10 Agenda Benefits of an agile and integrated financial planning What is integrated business planning? Why is integrated business planning relevant? Financial planning integration Foundations Use cases: relevance of integrated financial planning Conclusion

11 What is integrated business planning? Planning process Integration of critical business functions Enterprise performance management (finance) HR Sales & operations Improve insight on business process & financial flows To maximize financial value

12 What is integrated business planning? Integrated Business Planning creates the link between different LOB s FINANCE Financial Budget & Forecast Profitability & Costing Analysis HUMAN CAPITAL Strategic Workforce Planning Talent Management Corporate Performance Management Corporate Strategy RESOURCES Capital Expenditure planning Investment planning Maintenance budgetting OPERATIONS Supply planning Production planning MRP Operational Planning SALES & MARKETING Demand planning

13 Why is integrated business planning relevant? Cross company interest S&OP HR Finance General Management

14 Why is integrated business planning relevant? Integrated Business Planning features End-to-end view Clear view on responsibilities & ownership of targets Efficient planning Effective planning Business benefits Faster, more informed decision-making More effective resource allocation Increased ownership of targets Rapid commitment to revised plans Faster planning Reduced need for resources to support planning Improved customer satisfaction

15 Today s focus: Integrated financial planning Integrating insights from operations to assess financial impact Report on business activities and their profitability Financial statements Enterprise performance management Cost calculation of resources Budget: set financial targets Model expected outcomes Use financial and non-financial drivers Financial feasibility of business plan and objectives What if? Scenario building Manage cash of the organization HUMAN CAPITAL OPERATIONS FINANCE Corporate Performance Management Corporate Strategy Operational Planning SALES & MARKETING RESOURCES

16 Integration Finance is the beating heart of your organization Selling goods / services Purchasing & production Buildings & Equipment Employees Treasury

17 P&L Selling goods / services Purchasing & production Employees REVENUE - COGS GROSS MARGIN - OPEX RENT EMPLOYEE COSTS EBITDA - DEPRECIATION EBIT - INTREST - TAXES NET PROFIT Buildings & Equipment Treasury

18 Foundation of an integrated financial planning Integration = sharing information across departments Business model: Standardized dimensions (semantics) Level of detail? For global model vs. specific needs Iterations of top-down and bottom-up planning Flexibility of model to adapt to changing needs Data at lowest possible level (cover all domain specific needs) Identify & separate possible change drivers => Important exercise to achieve agility & integration

19 Sales and operations planning Without an integrated planning solution Selling goods / services Purchasing & production Buildings & Equipment Employees Treasury

20 Sales and operations planning With an integrated planning solution Selling goods / services Purchasing & production Buildings & Equipment Employees Treasury

21 HCM and Finance - Use case SWIFT

22 Integration of HCM and Finance SWIFT Business Case Selling goods / services Purchasing & production Buildings & Equipment Employees Treasury

23 Integration of HCM and Finance SWIFT Business Case - For labour cost planning Labour costs is crucial for OPEX Corporate strategy: Right right location New strategic initiative: Impact on P&L Balance supply and demand of the right people

24 Planning FTE s => effect on P&L New strategic initiative HR Changing parameters (like index change) ACTUAL FTE S ACTUAL COSTS NEW FTE S New Parameters Finance (P&L) TOTAL FTE S STANDARD COST FTE EMPLOYMENT COST

25 Financial Budget and Liquidity Planning - Use case GOB

26 Integration of financial budget & liquidity planning GOB Business Case Selling goods / services Purchasing & production Buildings & Equipment Employees Treasury

27 Integration of financial budget & liquidity planning GOB Business Case Budget Planned OPEX Plannend Government allowance Planned Loans Actual cash balance Cash Planning Time

28 Advantages of integrated financial planning What-if scenario s across domains S&OP: impact of increase in demand HR: efficient staffing of new initiatives Treasury: fund operations and investments Decision support for strategic initiatives (product/service, investments) Insight in profitability Manage profitability

29 Next steps To move towards integrated financial planning Workshops Planning process Business model Agility Fit-gap analysis Where are we? Where do we want to go? Identify key processes Importance of planning Importance of integration

30 Overview of the different SAP planning solutions

31 Agenda Overview of the different SAP planning solutions Challenges of existing planning solutions Overview of different solutions Solution history Fit for purpose guidance Conclusion

32 Challenges of existing planning solutions: Rigid and slow planning and closing process Missing simulation features (what-if scenarios) Non-integrated, multi-solution corporate planning architecture (planning silos) Missing alignment between budget, forecast and monthly closing cycles Complex and manual reporting integration

33 SAP Planning Focus of different solutions BPC STANDARD ON BW BPC EMBEDDED ON BW (ON HANA) BUSINESS OBJECT CLOUD - PLANNING BPC OPTIMIZED FOR S/4 HANA

34 SAP Business Planning and Consolidation Enterprise performance management tool BPC key capabilities: Planning Budgetting, Forecasting and Long Term Planning Allocation and calculation mechanism Reporting Management reporting & variance analysis Financial consolidation & IFRS Intracompany eliminations and elimination of investments Automated financial statements

35 SAP Business Objects Cloud

36 Planning solutions - history BPC 7.0 MS BPC 7.5 MS BPC 10.0 MS BPC 10.1 MS 2017 BPC 7.5 NW BPC 10.0 NW BPC 10.1 Standard Model BPC 10.1 Embedded Model BW IP BW IP/PAK BW IP/PAK in BW 7.5 MS = Microsoft NW = Netweaver (on BW) IP = Integrated Planning PAK = Planning Application Kit

37 BPC solution comparison Planning & reporting user interface Workflow & collaboration Input & reporting flexibility vs. Standardized input & analytical Administration capabilities Simplified LOB data administration vs. Combination of IT Central Models Performance & LOB Models Reporting acceleration vs. Full HANA integration Guided workflow vs. Ad-Hoc User interaction Integration Simplified & Flexible vs. Standardized & performant Solitary LOB environment vs. Integrated solution Calculations and allocations

38 BPC Standard Planning and reporting user interface EPM Excel add-in: high level of excel integration Administration Simplified datamodel administration Full business ownership on masterdata maintenance and security Standard user-interface for file upload and calculation execution Performance Direct reporting advantages of HANA for reporting Logic is not pushed down to HANA Client and Network sensitive

39 BPC Standard Workflow and Collaboration Business Process Flows to streamline the process Automatic s Integration Standalone LOB environment Master- and transaction data integration requires data preparation and causes data duplication Calculations Flexibility on maintenance of scripts and dimension member formulas Limitation of scripts and more complex calculations requires IT support

40 BPC Embedded Planning and reporting user interface Analysis for office Excel add-in: intuitive interface with pivot like analytical capabilities Administration Integrated central datamodel that can be enhanced with local dimensions, local models and local queries Integrated masterdata administration enhanced with local hierarchies Performance Full HANA acceleration for reporting All native planning functions are pushed down to HANA

41 BPC Embedded Workflow and Collaboration Business Process Flows to streamline the process Automatic s Integration Fully integrated with the BW reporting platform Automatic master- and transaction data integration without duplication Calculations Setup of planning functions with support of IT Broad scope of out of the box planning functions

42 BPC optimized for S4 HANA Same technology as BPC embedded Integration difference Real time ERP integration of actuals and masterdata Administration Standard SAP content delivered

43 BO Cloud - Planning Planning and reporting user interface Web based: intuitive analytical capabilities and visualisation options and web grid planning Saas Solution: is not requiring any local installation Administration Simplified key user datamodeling Performance Using the HANA Cloud Platform

44 BO Cloud - Planning Workflow and Collaboration Out of the box collaboration platform with agenda integration and notification (Mobile) Integration Data transfer from SAP BW, SAP BPC standard, S4 HANA, SF, C4C,.. Model integration with SAP BPC Standard Calculations Simplified calculation and allocation options

45 Solution guidance Solution pre-study: Help your organisation in finding the optimal solution Combine business knowledge and IT expertise Use the information from integration workshops to align the solutions with a global data model Customer references: SWIFT Bridgestone

46 How real-time planning and reporting can tackle the challenges of the modern finance department

47 Agenda S/4 Hana? Embedded analytics & planning BPC? Demo: Real-time planning scenario s Real-time reporting scenario s Simulation scenario s Conclusion

48 S/4 HANA for Finance? S/4 HANA is the next generation SAP ERP solution Simplification Performance User Interface Universal Journal HANA Fiori

49 Embedded analytics & planning Datawarehouse scenarios for tactical & strategical reporting Planning on SAP & non-sap data Operational Reporting on SAP data (Embedded analytics) Planning on SAP data (BPC optimized for S/4 HANA)

50 BPC optimized for S/4 HANA Real Time Integrated Agile

51 Standard Content S/4HANA includes templates that provide support for: Cost Center Planning Internal Order Planning Project Planning Profit Center Planning Cost of Sales Planning P&L Planning Market Segment Planning Liquidity Planning Balance Sheet Planning

52 DEMO Bike production company

53 FIORI BPC Demo 1: Real-time planning scenario Bike production company: Scenario 1 Start of budget process Integration with S&OP Integration with HR Input OPEX budget Missing costcenter for web sales Complete Budget Costcenter creation Integrates planning process Accelerates planning process

54 Demo 1: key advantages Instant availability of masterdata (<-> classic BW planning approach) Make use of new user interface Analysis for Office for Excel based planning Fiori apps for masterdata maintenance Business process flow guides the user throughout the planning process Streamlines & accelerates planning process

55 FIORI BPC Demo 2: Real-time reporting scenario Bike production company: Scenario 2 Report Actual vs. Budget for manufacturing costcenters Monthly Closing: posting of payroll cost Run overhead allocation Use analytical fiori app to check manufacturing costcenters Accelerates reporting process

56 Demo 2: key advantages Instant availability of transactional data (<-> classic BW reporting approach) Make use of new user interface Analysis for Office for Excel for ad-hoc analysis Visualisation via analytical fiori apps Streamlines & accelerates reporting process

57 BPC External Demo 3: Simulation scenario s Bike production company: Scenario 3 Import of cost drivers Input of office / building rent Review rent drivers (m2 used) Allocated office / building rent Support What If scenario s

58 Demo 3: key advantages Ability to respond to what-if scenarios Use up-to-date actual/planning information Technology platform supports big data volumes Make use of new user interface Analysis for Office for Excel for ad-hoc analysis Visualisation via analytical fiori apps Supports ad-hoc simulation

59 Conclusion BPC Optimized S/4 HANA can offer: Real time planning and reporting Simulations capabilities Standard content available Agile solution that can evolve along the needs

60 Key take aways on the benefits of an integrated financial planning

61 Conclusion Key succes factors for integrated financial planning Cross-domain corporate culture Right solution at the right place Business and IT as partners All domains can benefit from integrated planning Fit for pupose planning solution Business flexibility and ownership on a solid innovative platform.

62 Q & A