Cost Management in a Digital World

Transcription

1 Cost Management in a Digital World Leslie Casson Stevens, SAP June 2, 2017

2 What is digital? What does digital have to do with cost management? How will it impact my job? 2

3 What is digital?

4 Digital in our daily lives Smartphones Directions Communication Reminders Shopping Entertainment Photography News Information 4

5 Digital in our daily lives Connected Devices Thermostats Refrigerators Coffee Makers Televisions Security Systems Alexa, Cortana Amazon Dash 5

6 Digital in our working lives Mobile Business Systems Alerts Approvals Tasks Instructions Analytics Transactions Training 6

7 Digital in our working lives Connected Devices Machinery Vehicles Robots Drones Satellites Environmental systems 3-D printers 7

8 Market Trends Digital Transformation New forms of Systems of Intelligence emerging Artificial Intelligence & Machine Learning, IoT, Insights By 2018, 75% of enterprise and ISV development will include Artificial Intelligence or machine learning functionality in at least one application, including business analytics tools - IDC Embedded Machine Learning, Analytics providing built-in guidance Developers are adopting embedded Machine Learning to build new analytic applications taking on new market opportunities By 2019, APIs will be the primary mechanism to connect data, algorithms, and decision services distributed across digital economy value chains, clouds, and datacenters.- IDC Conversational Applications: the new User Experience Completely re-imagined user interface and experience By 2019, natural-language generation will be a standard feature of 90% of modern BI platforms - Gartner 8

9 What does digital have to do with cost management?

10 Cost Management Objective Increased Readiness Digital technologies make cost planning, analysis and control more effective, which, in turn, enable increased readiness. 10

11 Digital-enabled Business Capabilities Technology Business Use Business Value Mission Benefit Internet of Things (IoT) Predictive Maintenance Lower spare parts inventory Maintenance only when needed Machine Learning Invoice Matching Fewer exceptions Fewer late payments Fewer unmatched disbursements Conversational Applications Level 1 Help Desk Staff redeployed to higher value tasks Consistent advice Trend analysis Increased asset uptime Extended asset life Reduced failures Funds freed up for reuse More accurate reporting of status More productive users More productive support staff 11

12 Digital Transformation With technologies like machine learning and IoT, we are turning systems of record into systems of intelligence. Bill McDermott, SAP 12

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14 Predictive Maintenance Complex assets today are equipped with many sensors Sensors not connected to business systems can turn things on and off, set warning lights, activate system overrides, etc. Connected sensors and business systems can: Analyze conditions leading to failure Predict failure Automatically schedule maintenance when needed Automatically source parts and supplies 14

15 Early Benefits of Digital Business to US Army Logistics Modernization Program Prepositioned Stock Planning Move to in-memory plaform, SAP HANA, reduced planning cycle from weeks to hours More frequent planning cycles allow more effective prepositioning of stock and faster reaction to changing conditions Lower Cost Faster Planning Cycle Improved Product Alignment to Need Improved alignment of stock and need reduces inventory overstocking and waste and lowers overall cost Reduced Inventory Waste Increased Planning Frequenc y Bottom line: increased readiness 15

16 How will it impact my job?

17 Next Generation Cost Management Live Data Cost analysis in real time In-year projections for more effective use of funds Responsive support for planning and budgeting Better understanding of what drives cost and what doesn t Greater granularity for more precise cost analysis Report on any data element Analyze data at the transaction line-item level Cost Data enriched with Context New insights from analyzing dollars and related non-financial data together Geographic data Weather data Sensor data 17

18 What s In It For Me? From number cruncher to true cost analyst From looking in the rear view mirror to predicting the future From spreadsheets and reconciliations to realtime reporting, anywhere, anytime, from any device From support function to strategic mission enabler and the warfighter and taxpayer s hero! 18

19 Thank you. Contact information: Leslie Casson Stevens Industry Value Advisor 1300 Pennsylvania Ave., NW Suite 600, North Tower/Gray Washington, DC