Real Time Close. Case Study and Demo

Transcription

1 Real Time Close Case Study and Demo November

2 Session Overview The next step in the evolution of financial performance management is Real Time Close (RTC) RTC will enable delivery of continuous financial insights for organizations by leveraging elements of continuous accounting, real time reporting and predictive analytics powered by SAP Analytics Cloud, a next generation planning, predictive analytics, and business intelligence SaaS solution from SAP. Our RTC case study and demo will demonstrate how a visual interface, enabled by daily data feeds and sophisticated algorithms is able to support variance analysis and predict a financial performance on a daily basis with increased accuracy across financial and non-financial indicators. 2

3 How to better predict revenue, costs, and overall business performance? How to improve closing efficiency and accuracy? How to better anticipate financial risks? How to improve reporting efficiency and accuracy? How to better manage financials? Planning, Budgeting and Forecasting Financial Close and Consolidation Management Reporting and Analysis P&L Planning Rolling Forecasts Legal Consol. External Reporting Business Intelligence Data Warehouse Driver Based Planning Allocation Engines Scenario Planning Manage ment Consol. Matrix Consol. Visualisation Big Data The convergence of digital technologies opens new possibilities for Finance Performance Management Predictive Analytics Cognitive Technologies (Machine Learning) Natural Language Processing (NLP) Natural Language Generatio n (NLG) Voice and Facial Recognition Augmented Reality (AR) Sentiment Analysis Crowdsourcing Prescriptive Analytics Internet of Things (IoT) Virtual Agents (Chat Bots) Next Gen Finance Performance Management Robotic Process Automation (RPA) Virtual Reality (VR) Blockchain 3

4 REAL TIME CLOSE IS DRIVER BASED PREDICTIVE ACCOUNTING 4

5 Real Time Close / Driver-Based Predictive Accounting Sales Customers Predicted Close Inventory Milestones Continuous Accounting Daily drivers Predicted Financials Contract Build AR FTEs Real Time Reporting AP Locations Expenses Weather Predictive Analytics Retire Run Working Capital Seasonality D5 D10 D15 D20 D25 D30 Sample Business Life cycle + Daily Financials and drivers + Key Enablers = New Capability Features: Daily access to KPIs such as inventory and working capital Daily forecast of period-end via predictive analysis (e.g. daily flash ) Continuous monitoring along both management and legal views Potential for daily scenario planning and short term recommendations Single point of control over analysis rule-set (consistency) Benefits: Smoother workload profile throughout the period and during period end Effort reduction of repeatable analysis More time for analysis, identification of opportunities with short term benefits More frequent decisions capable of influencing positively on operations Issues & root causes identified earlier, leading to more proactive and efficient resolution 5

6 Building Blocks of Real Time Close CONTINUOUS ACCOUNTING Embed accounting tasks and reconciliation directly in daily business activities Key enablers Clear business drivers Data consistency Modern accounting engine Key outcomes Reconciled Financial information Quantified business events in real time REAL TIME REPORTING Visibility of performance on a (near) real time basis and enables corrective actions Consistency of data models Self service reporting tools Data reliability Control rooms for monitoring of process health Increased effectiveness of FP&A and BP s PREDICTIVE ANALYTICS Understand patterns and trends and apply cognitive rules to identify anomalies and outliers in financial data Availability of historical data Predictive engine Trust, built on accuracy Predictive reporting that focuses on outliers and anomalies Self learning setup that minimizes the gap between actuals and prediction 6

7 Reference Architecture Existing Systems RTC / Predictive Close Solution Operational Business systems Manuf. Logistics ERP CRM Payroll Financial systems EPM External Sources Procureme nt Other Data Warehouse Front End User Interface for control Room Generate Predictive and Real time reports Distributes outputs Predictive Engine Analysis Library Driver data Rules Engine Scripting Engine (optional) Tools like SAP Analytics Cloud can be leveraged to implement RTC as it embeds both reporting and predictive engine as part of managed analytics Social Media Weather Other Existing Elements New Elements 7

8 Example Delivery Approach 1 Assessment and Pilot 2 Implementation 3 Continuous RTC Improvement Define Analytical Model: Life Cycles, Events, Drivers and Data attributes Assess data availability Identify continuous accounting gaps Tool selection Business Case Deploy Pilot Address Gaps (systems, process & data) Define RTC governance Design and Implement RTC Solution Continuous improvement initiatives to improve accuracy of RTC solution Adopt (evolving) business scenarios to ensure RTC remains accurate Year 1 Year 1+ Pilot BU (incl. Baseline RTC Impl.) Continuous Accounting Gaps RTC Pilot Live BU 2 BU 2 on boarded BU 3 BU 3 on boarded Sprints BU 4 BU 4 on boarded BU 5 8

9 Key take aways Real Time Close is driver based predictive accounting What s happening? What s the root cause? What s the impact? Critical Success Factors are: Technology Data Mind set Leadership The first steps are: 1. Assess the potential of your data and systems for RTC 2. Develop an analytical model for your business 3. Understand the shift of mind set needed to make this work 4. Execute a pilot, learn from it 5. Scale it up, roll it out, manage the change 9

10 For more information: Mateus Begossi Ritesh Bhushan 10

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