finance transformation - nswcfo.com.au · finance is looking to manage the whole lifecycle align...

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T H E G L O B A L L E A D E R I N C L O U D B I & C P M

Finance Transformation Fintan Diviney

Area Vice President Australia & New Zealand

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The Changing

Role of Finance

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3 out of 4 of finance leaders have

seen their strategic

influence increase over

the last three years

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New Role of Finance

71% strategic influence of CFOs have seen their overall level of

increase over the past three years*

Source: 2014 CGMA Survey

CFO

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Role of Finance – Where Are You?

Based on 2012 survey by audit, tax and consulting firm Armanino LLP

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CFO Evolving From Tactical to Strategic

People

Process

Data

Inefficient

Not Aligned

Silos of Data

Efficient

Aligned

Holistic Data

Accountant

Transaction

Management

Data Driven

Performance

Management

& Analysis

Change Agent

Strategic, Data-Driven

Decision Making

Tactical Strategic

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Finance is Looking to Manage the

Whole Lifecycle

Align Financial Processes And Systems For Better Business Value And Compliance, August 2011

Start

Future

Present

Future

Plan and Predict

Measure and Optimize

Report and Comply Plan and

Strategize

Set goals

Budget

Forecast

Measure

Analyze

Resolve

Optimize

Account

Consolidate

Report

Comply

Financial

Systems

And Data

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What is Lean Finance?

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A lean finance function strives to operate at the highest level of efficiency through an optimized mix of people, process and technology to provide value-add strategic and tactical support throughout the entire organization.

Lean Finance

Employs Lean Principals

Focus on Delivering Customer Value

Optimized Process Efficiency

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Successful performance

management transformation

aligns people, processes,

and data.

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Tapping Analytics at The Core

Means Competitive Advantage

Companies that

use analytics are

more productive

and more

profitable than

their competitors.

10 Year Revenue CAGR

Analytics Leaders

Average

2X GROWTH

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Why Now?

Speed Is

Incredibly Important

Information

Travels Fast

Competitors Respond

More Quickly

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75% Effort is wasted

rekeying and

manually rolling

up data

90% Spreadsheets

contain data

and formula

errors

64% Annual plans are

out of date by

the time they are

put into effect

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The Current State of Business Analytics

Time, Effort, Integrity

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Takes too long

Labor-intensive

Data integrity/accuracy/reliability issues

Calculations are difficult to audit

Limited communication/collaboration

Functionality doesn't meet enough of my needs

Difficult to make changes

Limited ownership/accountability

End result is often already out of date

Not integrated with performance reporting system

All other responses

BPM Pulse Survey Results, December 2013

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Two BIG Opportunities to Improve

Close

Books

Consolidate

Financials

Report

Results

Analyze

Close FP&A

Efficiently

Repeat

Plan

and Model

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Close

Books

Consolidate

Financials

Report

Results

Analyze

Close FP&A

Efficiently

Repeat

Plan

and Model

Two BIG Opportunities to Improve

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Executives Finance Sales Ops

Plans Models Dashboards Reports Forecasts

Current Systems Hold Finance Back

Manual. Siloed. Error-Prone.

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The New Role of Finance

Requires Rethinking Business Analytics

Reporting

Planning

Analytics

Consolidation

Integration

Cloud

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5 Proven

Strategies

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of CFOs see the cloud as the

future for their applications

81 %

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Cloud Lowers TCO Frees Up Resources to Innovate

Software Licenses

9%

Hardware

IT Personnel

Maintenance

Training

Customization &

Implementation

68% Subscription Fee

Customization

Implementation

& Training

On-Premise Software Cloud Computing

43%

26%

14%

7%

1%

32% T

C

O

T

C

O

Source: Yankee Group DecisionNote Technology Analysis

“Customers can spend up to four times the cost of their

software license per year to own and manage their

applications.”

– Gartner

“The End of Software”

“Cloud computing yields substantial economies of scale and

skill, and lowers total cost of ownership (TCO).”

– The Hurwitz Group

“The Compelling TCO Case for Cloud Computing”

77% less than

On-Premise

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By 2016, at least 25% of enterprise finance

organizations will move to cloud for specific CPM

processes, and many will use a hybrid approach

through a combination of cloud and on-premises

solutions.

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FP&A Architecture at Enterprise:

Current State

Corporate

(FP&A Ops)

On-Premise/

Legacy Platform

Business Unit/

Division

Country/

Region Plant

Function/

Branch

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FP&A Architecture at Enterprise:

Cloud-Enabled

Corporate

(FP&A Ops)

Business Unit/

Division

Country/

Region Plant

Function/

Branch

PARENT INSTANCE

CHILD

INSTANCE

CHILD

INSTANCE

CHILD

INSTANCE

CHILD

INSTANCE

On-Premise/

Finance Platforms

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Finance Sales

Marketing HR

Need to share data and collaborate

with teams across the enterprise

Elevate Engagement

Get Managers Involved

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Report

Share

Drill-down

Analyze

Refresh

Compare

Decide

Take Action

A Universal View

Create a Repository

Centralize Insight

ACTUALS

FORECAST

BU D G E T

REPORTING

MANAGEMENT

F INANCIAL

Central

Source

for Insight

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Link Analytics and Plans

Make Better Decisions, Faster

Sales

Plans

Finance

Plans

Finance

Ops

Sales Agility and

Better

Decisions KPIs

Reports Plans

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Analytics is Key to Risk Analysis and

Responsiveness

!

Identify

Risks

Develop

Assessment

Criteria

Assess

Risks

Assess

Risk

Interactions

1

2

3

Prioritize

Risks

Respond

to Risk

Assess Risks

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Financial Planning, Budgeting, and Forecasting: Removing the Hurdles, March 2013

Rolling Forecasts Enable Accuracy and Agile Business Planning, May 2013

Best-In-Class Companies: What They Do Better

78 %

Rigorously forecast demand

and continuously plan

76 %

Forecast based on the most

up-to-date business drivers

2X More likely to have timely

financial data in plans

73 %

Plan

collaboratively

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Maximize Your Forecast Power

Adjust and Analyze Major Drivers

Profit Risk Working Capital

True rolling forecasts go

beyond the budget barrier and

predict an organization’s

performance in response to

economic change and growth.

Rolling Forecasts: How and Why, 2010

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Institute Performance Monitoring and Reporting

Diagram of forecasting and reporting

Forecast Actual

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Close

Books

Consolidate

Financials

Report

Results

Analyze

Close FP&A

Efficiently

Repeat

Plan

and Model

Two BIG Opportunities to Improve

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Create a Continuous Cycle of Planning &

Analysis

…and make the move from spreadsheets to drive change

Assess &

Monitor Risks

Analyze

& Report

Performance

Goals &

Objectives

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2,500 Customers

Customer

Satisfaction 85

Countries

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160+ Australian Customers

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#1 in Customer Experience

in Customer Experience

in Customer Satisfaction Among Top

Vendors

in Usability, Best ROI

in Value for Money and Visionary

Execution

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Big Ideas

Recap

Cloud And

Technology

Are Enablers

Collaborate With

Organization

Performance

Management

Processes

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Questions

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