SAP FORUM İSTANBUL 2014Basit Düşün Fark YaratSAP Simple Finance
Konuşmacı Adı : Cenk Kıral
Firma Adı : SAP EMEA Finance Center of Excellence
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AGENDA:
CHANGING ROLE OF CFO AND FINANCE
TRANSFORMATION
WHAT IS SIMPLE FINANCE ?
WHAT ARE THE MAIN BENEFITS?
IT IMPLICATIONS
BUSINESS SCENARIOS
CUSTOMER STORIES: ZURICH
INSURANCE AND SAP
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Today’s Challenging World Needs
Strong CFOs
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CFO
Steward Service
Provider
StrategistVolatility
Focus
on Risk
New
Regulations
Globalization
Pressure on
Margins
Innovative
Business
ModelsCFOs are Looking for Ways to
Transform Their Organizations
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CFO Personal Priorities
Division of Time
CFOs are spending most of their time in their
“strategist” role and are revisiting their
“operator” role
Time spent as a strategist remains high:
Thirty-one percent of CFOs’ time is spent
working as a driver of strategy
Time spent as an operator has rebounded:
Twenty-three percent of CFOs’ time is
spent focused on finance organization's
efficiency and service levels/effectiveness
Time spent as a catalyst has declined:
Twenty-four percent of CFOs’ time is spent
working as an agent for change
Time spent as a steward has continued to
fall: Twenty-two percent of CFOs’ time is
spent overseeing accounting, control, risk
management, and asset preservation 2Q10 2Q11 3Q13
CFOs’ Division of TimeAllotment of time CFOs actually spend in each of their
four roles
Catalyst Strategist
Steward Operator
(31%)
(23%)
(24%)
(22%)
Source: Deloitte CFO Signals Survey, Q3-2013
Copyright © 2014 Deloitte Development LLC. All rights reserved.
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The Mission:ENABLE FINANCE as an OFFICE OF INNOVATION
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requires
FINANCIAL EXCELLENCE
urges
FINANCE TRANSFORMATION
and
SAP Simple Finance is a greatenabler/facilitator/catalyst for this transformation
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Technical Pressures Confronted by CFOs
Need for Real-Time
Analytics
Cloud Infrastructure
Drive to Lower IT Costs
Effectively Managing
Growing Data Volumes
Copyright © 2014 Deloitte Development LLC. All rights reserved.
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Accounting and
Financial Close
Financial
Planning and
Analysis
Treasury and
Financial Risk
Management
Collaborative
Finance
Operations
Enterprise Risk
and Compliance
Management
Collaborative
Invoice to Pay
Travel Management
Receivables
Management
Enterprise,
Risk Management
Controls and
Compliance
Management
Access Governance
Accounting
Entity Close
Corporate Close
Develop and
Translate Strategy
Planning, Budgeting
and Forecasting
Profitability and
Cost Management
Payments and Bank
Communications
Cash and Liquidity
Management
Debt and Investment
Management
Monitoring and
Reporting
Reporting and
Disclosure
Financial Close
Governance
Commodity Risk
Management
Financial Shared
Services
Financial Risk
Management
International Trade
Management
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Fraud Management
Audit Management
Finance Value Map
SAP Simple Finance
summary
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SAP Simple Finance
What is it?
Finance Innovation
natively build on HANA
consumable as a managed service
from the SAP HANA Enterprise Cloud
or on-premise
available at ONE cloud subscription price (incl.
licenses, Infrastructure and application management)
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Simple Finance in a nutshell
Transformative
business value
Consumer-grade
user experience
Consumable as a
managed service+ +
from real-time
analytics enabled by HANA
for all devices provided by
BI and Fiori
from the HANA Enterprise Cloud
or on-premise
Simplified and
Faster
Accounting
Processes &
Reports
(FI-CO merging)
Much More
Efficient Way of
Handling
Receivables
Overall Cash
Management
in a much
integrated
and faster
manner
KEY VALUE POİNTS OF SAP SİMPLE FİNANCE
Much Better
Optimized Closing
Process with
Significantly Faster
Results
1 2 3 4 5 Truly and
Only
Integrated
Financial
Planning
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Setting the Scene Evolution of Finance New Innovations Sales Essentials Assets & Resources Summary
New Innovation: Financials Add-On
SAP Accounting powered by SAP HANA
Architecture
User
Experience
Processes
Capabilities
Documents based
No totals, no indices
FI CO CO-PA Single Source of Truth
Highest Granularity,
Flexible, Extensible
Significantly Faster
Optimization
Real-time Modern UX
• SAP Fiori apps
• SAP Smart Business
• SAP BO BI solutionsSAP Accounting
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Choice of Deployment
Offered as a managed service in the SAP HANA
Enterprise Cloud
offered as a subscription license
targeting LE / UMM-customers via direct channel initially
Delivered via Simple Finance Add-On for Suite on HANA
Contains new Accounting and Cash Management natively
build on HANA plus enhanced ERP-BPC-integration
perpetual licenses for Accounting and Cash Management
targeting all customer segments via all sales channels
SAP Simple Finance offers complete choice of deployment (cloud,
on-premise, hybrid as it can work seamlessly with on-premise and cloud
apps) for lower IT cost and easy adoption.
Cloud On-Premise
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What is the functional scope of SAP Simple Finance?
Legend
SAP Simple Finance (cloud enabled)
New or significantly renewed HANA solutions within SAP Simple Finance (cloud enabled)
Out of scope for SAP Simple Finance
Accounting &
Financial Close
Financial Planning
& Analysis
Treasury &
Financial Risk Mgmt.
Collaborative
Finance Operations
Enterprise Risk
& Compliance Mgmt.
Receivables
Management
Enterprise,
Risk Management
Controls and Compliance
Management
Access Governance
AccountingDevelop and Translate Strategy
Planning, Budgeting
and Forecasting
Payments and Bank
Communications
Cash and Liquidity Management
Profitability and Cost Management
Monitoring and Reporting
Entity Close
Corporate Close
Reporting and Disclosure
Financial Close
Governance
Collaborative
Invoice to Pay
Travel Management
Financial Shared Services
Debt and Investment Management
Commodity Risk Management
Financial Risk
ManagementInternational Trade Management
Fraud Management
Audit Management
Real Estate Management
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Business Scenarios to position Simple Finance
In all end-to-end processes you will find areas where customers have identified pain, in particular if they are already
undergoing a process of finance transformation
Five key scenarios caught significant interest in almost all customer interactions independent of their deployment model.
End-to-End ProcessBusiness
ScenarioCustomer Pain Point
1. Accounting & Financial Close Central Journal
Multiple ERP-Systems (e.g. due to M&A)
causing high TCO and slow innovation
cycles.
2. Accounting & Financial Close Month end closeLong closing cycles and / or the ambition
to have reliable finance data at any time.
3.Treasury & Financial Risk Management /
Collaborative Finance
Working Capital
Management
High Day Sales Outstanding (DSO) and /
or Cash Flow Challenges.
4.Enterprise Risk
and Compliance ManagementProcess oversight Risk of Fraud and / or high Audit costs.
5. Financial Planning and AnalysisIntegrated Financial
Planning
Need for dynamic planning and / or
aspiration for integrated planning.
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Main benefits of Simple Finance for a Customer
FI-CO merging, Closing & Receivables Processes
Financial Planning
Cash Management
Planning, Cash Management, Receivables, oCFO capability to provide Reliable & Timely Data to Business Units
Financial Closing, Reporting, COPA analysis
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SAP Simple Finance: cornerstones components
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SAP Accounting powered by SAP HANA
New Data Model leveraging SAP HANA capabilities
Logistics
Document
CO
Document
FI
Document
Totals & Indices
Financial Accounting
Totals & Indices
Management Account.
From …
Processing
Analytics
CO Document
FI DocumentHANA views on the fly
Pre-Defined Aggregates
Processing
Analytics
Logical document
Logistics
Document
… To
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Index tables removed Aggregate tables removed
BSIS Index for G/L Accounts
BSASIndex for G/L Accounts (Cleared
Items)
BSID Index for Customers
BSAD Index for Customers (Cleared Items)
BSIK Index for Vendors
BSAK Index for Vendors (Cleared Items)
BSIM Index, Documents for Material
FAGLBSIS Index for G/L Accounts – New G/L
FAGLBSASIndex for G/L Accounts – New G/L
(Cleared Items)
GLT0 General Ledger: Totals
GLT3Summary Data Preparations for
Consolidation
FAGLFLEXT New General Ledger: Totals
KNC1 Customer master (transaction figures)
LFC1 Vendor master (transaction figures)
KNC3Customer master (special G/L transaction
figures)
LFC3Vendor master (special G/L transaction
figures)
COSS Cost Totals for Internal Postings
COSP Cost Totals for External Postings
List of FI/CO Tables Replaced by CDS Views
Remark: Special Ledger remains unchanged.
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Central Journal
source system(s):
SAP (any release)
non-SAP systems
pla
n, co
nso
lidate
, re
po
rt *
Suite on
HANA
SAP HANA(platform)
ERP
central journal instance
Financials
Add-on *
process / productivity optimizations
central business transaction execution
ERP
Real-time
Reconciled
Harmonized
consolidated financial / management reporting
shared data, planning, consolidation, and reporting
* requires respective SAP products and licenses (e.g. SAP Accounting powered by SAP HANA, SAP Business Planning)
Implementation option (not a separate product) of SAP Business Suite
powered by SAP HANA with Financials Add-ons for customers with multi-ERP
system landscapes or out-of-maintenance or highly customized SAP systems
What
Dedicated central journal instance (side-car possible)
Real-time replication of finance data from SAP or non-
SAP systems onto central journal for further processing
Standard SAP Finance deployment, customer scope
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What is the Central Finance scenario about?
What is it?
• Single SAP Simple Finance system
on top of existing system landscape
• Real-time replication of all finance
transactions from legacy systems
What value does it provide?
• Single Finance platform for all group
reporting, analysis and processes
• Harmonized information across group
• Flexible drill-down to line item details
• No rip-and-replace of legacy systems
SAP
ERP
SAP HANA Platform
SAP
BPC
SAP
BI
Legacy ERP Legacy ERP Legacy ERP
Central Journal
SAP SİMPLE FİNANCE
Central Finance is not a separate solution but an implementation approach of SAP Simple Finance. It
provides a central platform for group-level transactions and analysis without full ERP consolidation.
CENTRAL FİNANCE SCENARİO
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SAP Cash Management powered by SAP HANA
New functional coverage
Daily Cash Operations
– Cash Positions and Short-Term Cash
Forecasting
– Bank Transfer, and Payment Approval
– Analyze Payment Details, and Payment
Statistics.
Bank Account Management
Liquidity Management
– Mid-term Liquidity Forecast
– Actual Cash Flow Analysis
– Embedded Liquidity Plan and Variance
Analysis
New Fiori (HTML5) user interface, and
KPI cockpit – SAP Smart Business for
Cash Management.
Integrated with FI, TRM, BCM (Bank
Communication Management), and IHC
(In-House Cash).
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Significantly Reduced Memory Consumption
HANA data base compression
No more persistent indices and aggregates/totals
No replication to data warehouse system for operational reporting
Lower TCO and higher through-put
18,5xSmaller data footprint
observed based on real
customer data
SAP Simple FinanceCustomer Stories
Internal
Zurich runs Simple Finance
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Simple Finance: measured benefits in Zurich
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SAP Simple Finance @ Zurich Insurance GroupClosing Runtime Comparison
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SAP Simple Finance @ Zurich Insurance GroupGeneral Accounting Runtime Comparison
SAP Runs SAP
SAP Business Suite powered by HANA
SAP Business Suite on HANA (ERP) went live in August
2013 in just 5 months
Global, single-instance system
First global Go-Live of ERP on HANA
BUSINESS BENEFITS
Financial close processes streamlined and with higher quality
SAP TOP in FAST CLOSE is the first DAX 30 company to report
Batch jobs eliminated cutting cycles to real-time (e.g. Inter/Co)
Effective collaboration between LoB’s, e.g. Receivables
Manager
Risk & compliance via real-time fraud detection management
Radical simplification of the technology stack
SAP Business Suite powered by HANA
SAP Simple Finance
Simple Finance
Simple Finance Add-On went live in April 2014 in just 55
days
Global, single-instance ERP system
First global Go-Live of Simple Finance
BUSINESS BENEFITS
Financial close processes radically streamlined with high quality
Financial Insights – Reporting with no limitations – elimination of
aggregates and indices allows full reporting flexiblity
Combined External and internal accounting
Role based user interface – easy to consume and effective to use
Business agility – Org. changes reflected in 1 day (vs. 1 week)
Soft Financial Close - Intra month where & when needed
Overview (2/2)
Overview
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System enablement and transformationOur Simple Finance Add-On Journey in 2014
April 2014Simple Finance Add-On Foundation
• Technical Implementation incl. New GL
• No more aggregates / indices in FI &
CO
• First reporting scenarios
August 2014
FIORI Smart Business
• 1st Cash Management function.
• Easy to consume reporting
• New Enjoy/Web Transactions
• HANA Enterprise Search
November 2014
New functionality
• Selected Reporting Scenarios incl.
HANA view
• Merge Consulting Ledger and Profit
Center Ledger
2015+ beyondFurther automate Finance Processes
• Embedded Planning
• Merge Special Ledger
• New consolidation on sFIN
ERP ERP
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SAP Simple Finance Major Values Realized
Faster Closing Process: from 1 day to 1.5 hrs
Faster Reporting Execution from 15 minutes to 1 second
(For DSO of 60 days,
3% represents 2 days =
about 150K€ for 1B€ company,
3% cost of money)
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Thank you
Contact details:
CENK KIRAL
Vice President of Finance Solutions
SAP EMEA Finance Center of Excellence
+34.606.06 12 61