May 7 – 9, 2019

SAP S/4HANA (1709) Central Finance Processing at Stanley Black & Decker

Jenn Snyder, Global IT SAP Finance Director, Business ServicesLeighton Haywood, Global IT SAP Finance Director, Application Services

83269

About the Speakers

Jenn Snyder• Global IT SAP Finance Director, Business Services

• Stanley Black & Decker

• Responsibilities include the design and delivery of SAP Finance global solutions to support all business units.

• Almost 20 years of experience in Accounting and Finance, working across Finance and IT to develop and implement efficient solutions in areas such as Finance, Controlling, Reporting, and Budgeting & Planning.

• Currently co-leads the Global S4/HANA Central Finance program for Stanley Black & Decker.

• Fun Fact: An avid lover of all things British – high tea, British television dramas, fish & chips with mushy peas, etc.

Leighton Haywood• Global IT SAP Finance Director, Application Services

• Stanley Black & Decker

• Responsibilities include the design and delivery of SAP Finance global solutions in support of Corporate and Business Services.

• A qualified accountant with nearly 25 years experience of working with SAP Financials and has delivered multiple integrated global projects covering most aspects of Finance and Controlling.

• Currently co-leads the Global S4/HANA Central Finance program for Stanley Black & Decker.

• Fun Fact: An avid collector of James Bond film memorabilia

Key Outcomes/Objectives

1. Central Finance Design

2. Central Finance Benefits

3. Central Finance Lessons Learned

Agenda

• Stanley Black & Decker Background

• Central Finance Design

• Central Finance Deployment Approach

• Central Finance Key Learnings

Stanley Black & Decker

Background

5

Stanley Black & Decker (SBD)

6

SBD Growth Strategy / Video

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Link to Purpose Video: http://purpose.sbdinc.com/

A Global Leader With World Class Franchises

Market Cap & Dividend Yield As Of Market Close 2/25/2019 $137.39 Dividend Yield Based On 4Q’18

Annualized Dividend & Stock Price As Of Market Close 2/25/20198

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Manufacturing

Logistics

Sales (OTC)

Warehouse Management

CRM

Finance

Human Resources

Analytics and BI

Supply chain planning

Product Lifecycle Management

Bac

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Corp-orate

GTSSecurity – North

AmericaIndustrials – SEF

Indus-trials –O&G

Indus-trials –

HYDGEMSecurity – Europe

Procurement

99

Today’s Complex & Fragmented IT Landscape Reflects Similarly Non-Standard, Unharmonized Processes & Data…

Original IT Functional

Transformation

Scope:

• 100+ ERPs

• 1200+ non-ERP

Systems

Future-State SBD IT Landscape

Program Initiative is to Migrate Financial Operations for all BUs into SAP S/4HANA using Central Finance.

Operational Activity – Sales, Manufacturing, & Logistics will Remain within a Few Core SAP Applications.

Global Tool & StorageSecurityIndustrial

Fastening, Hydraulics, Oil & Gas

Emerging Markets

CORP

SAP P10(ECC)

SAP BWP

SAP C11(ECC)

SAP E03(ECC)

SAP

Lan

dsc

ape

Analytics & BI

MFG

Logistics

Sales

Finance

SAP S/4(S/4 – 1709)

Reporting

Transactional

Operational

10

SAP Central Finance

Central Finance Areas of Focus & Enablement

Providing a common platform for

Finance SAP supported processes

and master data for All BUs

• Harmonized Enterprise Wide Data

• Single Source of Truth…with

Details

• Increased Shared Services

Capabilities / Enablement

• Enhanced User Experience

Central Finance

SBD Finance Community

Shared Service, FP&A, Controllership

Financial Accounting Reporting & Analytics

Receivables

ManagementCash Management

E03C11 P10

11

Central Finance is Key Enabler for Functional Transformation Initiatives for SBD Finance…

Order-to-Cash

Future State of Process Focus Areas *

Record-to-Report

Non-Transactional

Treasury / Banking

Enabling SBD Strategy:

Procure-to-Pay

* Indicates future process ownership split between BU and COE & SS

COE & GSSBU

Central Finance Key Benefits

Central Finance Significantly Increases Our Ability and Flexibility to Manage Across SBD’s Businesses and

More Easily Accommodate Mergers & Acquisitions, and Divestitures.

Real-time data integration from

different source systems into one

environment

Based on the current SAP technology

(S/4HANA) with user-friendly customized

interface (Fiori)

Faster integration for

mergers and

acquisitions—

creating standard

functionality for joint

reporting

Universal Journal and Parallel Ledger capabilities accommodate

different accounting models and reporting for

profitability analysis models and

heterogeneous organizational structures

Reporting flexibility

due to in-memorycapabilities

Process and data

harmonizationand

system

consolidation for

decentralized organizations

Reduced data footprint

drives faster

throughput and

analytics; reduced

integration points lower

Total Cost of

Ownership (TCO); enhanced error handling

drives decreased

maintenance cost

12

Central Finance Business Case Focus Areas

• Harmonized Processes & Data Standards• Enterprise Wide Data Standards with Automated Alignment of Financial,

Vendor & Customer Data

• Standardized Process & Controls – Financial Close, Treasury, I/Co

Reconciliation

• Improved Control & Data Accuracy – Reliability Of Financial Data

• Integration of Trusted Systems• Global Supply Management Production Solutions – Ariba & Concur Drives

Discipline / Transparency On Spend

• Treasury Processes – Transparency of FX Exposure, Trax, Loans

• Statutory Reporting & Tax Compliance • Parallel Ledger Capability

• Increased Automation | Timely Data – Reduced Compliance Risk

• Enabler for Stat & Tax COE

• Invoice To Cash – Integrated Functionality• Customer Service, AR & Sales Connectivity – Streamlined Process, Mobile

Apps = Faster Resolution

• Enhanced Reporting – Dispute Tracking | Resolution & RCA

• Reduced Past Dues & Working Capital, Enhanced Customer Experience

13

• Treasury Management• Centralization of Cash Management – Aggregation of Currency Balances

• Cash Concentration – Cash Pooling

• Inter-Company Loans

• Reporting Flexibility • Enhanced User Experience – Fiori Tiles Enable Easy Access To Screens &

Reports

• Analysis For Office (AFO) – Enables Report Creation | Development By

Users

• Drill Down Capability Into Finance Documents In CFIN & Core SAP

Environments

• M&A Integration • Accelerated Synergies From Faster Integration Of Acquisitions

• Sustaining Organization • Single FICO Environment Reducing Costs For Maintenance (Central Team)

& Upgrades

• GRC – Access & Configurable Controls • Preventative/Automated Vs. Detective/Manual

SBD Finance & IT Leadership Teams Targeting Significant Financial Benefits…

Central Finance Design

14

Central Finance Global Design Guiding Principles

Design with the future in mindLeverage digital and emerging technologies to create a scalable, future-proof solution1

Design leading practice based processesFollow functional, technology and industry leading practices to create harmonized global processes2

Drive transformation through new technologyDesign processes and solutions based on new capabilities, including future functionality on the roadmap3

Enable a truly global Finance functionUnderstand, communicate and manage impacts to the business, regions and functions4

Evolve through design using agile methodologyThink iteratively to prove and evolve solutions. Involve users and stakeholders early & often 5

Focus on standard functionalityCustomize only where there are legal, regulatory or statutory requirements or a quantifiable competitive advantage6

Our Design Approach for Global Finance is Centered Around These Guiding Principles:

1515

Central Finance Capability Map

16

CFIN Implementation Scope: Core Finance Capabilities/Processes by Organization

Accounting

Financial

Accounting•GL Acctg

•Fixed Assets

•Accruals

•Record Payroll

•Close Books

•Consolidation

•Acct. Recon. &

Cert.

•External Reporting

Intercompany

Accounting•Cross Charges

•Netting

Product

Accounting• Product

Inventory Acctg.

• Inventory Cost

Acctg.

• Product Cost

• Product Cost

Planning

• Project Acctg.

Accounts Payable• Direct Invoice

Processing

• Indirect Invoice

Processing

• Payment

Processing

• VAT & Sales/Use

Recording

• Travel & Expense

FP&A

Business Planning• Strategic Planning

• Planning &

Budgeting

• Forecasting

• Revenue/ Sales

Planning

• Cost Center

Planning

Financial

Reporting• Reporting

actuals

• Finance

Analytics

Fin. Systems

Finance Master Data• Legal Entities

• Chart of Acct.

• Vendor Master

(Finance)

• Customer Master

(Finance)

• Material Master

(Finance)

• Additional

Accounting

Dimensions

Tax Treasury

Treasury• Cash

Management

• Manage

Investments

• Manage Credit,

Debit, Liquidity

• Manage FX

Tax• Withholding Tax

• Indirect Tax

Reporting

• Tax Provision

• VAT Reporting

GSM

Procurement

Management

OTC

Receivables

Management • Credit Mgmt.

• Collection Mgmt.

• Dispute Mgmt.

• Online

Presentment &

Payment

• Receivables

Accounting

Transactional

Procurement

Supply Chain

Master Data

Sales Master Data

Transactional

Sales

Manage Billing

Integrated

Capabilities

Legend:

• CFIN Enabled (Directly or Via Interface)

• Core SAP Enabled

• Core SAP / CFIN / Ariba

• Out of Scope

Central Finance Design Summary

• Single Financial Book of Record

• Three Parallel ledgers (US GAAP / Tax / Statutory)

• Single Source for Fx Rates

• Source for all Fixed Assets & Non-Prod Internal Orders

Record-to-Report

17

• Collections Management

• Cash Application Standardization

• Credit Management across Global Customer

• Dispute Management for Customer Service & AR Teams

Order-to-Cash

• Centralized / Consolidated Payments

• Global View of Vendor

• “No PO, No Pay” in Coordination with Parallel Ariba

Deployment

Procure-to-Pay

• Integrated / Centralized Banking Hub

• Central Creation of Bank Accounts

• Centralized Intercompany Loan Capabilities

• Visibility to Real-Time Cash Position & Fx Exposures

Treasury

• New Global Chart of Accounts

• Standardized & Harmonized Financial Master Data

• Real-time Reporting (CDS Views)

• Global BI / BW Financial Reporting

Data & Management Reporting

• Fiori-based Usage; No “GUI” Access

• Improved User Experience (Fiori), Self-service Analytics (AfO),

& Drill-down Capabilities

System Landscape

Central Finance Architecture

18

* PO Related Invoice Entry will still be required in local Instance

Current Landscape Future Landscape

Central Finance Becomes Single Point of Integration, Simplifying Data Mapping & Integration Management…

Central Finance

Deployment Approach

Central Finance Program Timeline

20

2017 2018 2019 2020 2021

Netherlands

SEF Europe

Industrial

UK / Ireland

& Nordics

Global Design Summit

& Demo

France &

South Europe

Path Towards Global Harmonized Data, Reporting & Financial Process Standardization.

Belgium

20

SEF

Nelson US

Corporate &

Global SecurityUS

SEF Europe /

AutomotiveSEF Asia

Asia / ANZ

Central

Europe

Deployment Focuses on 2-3 Deployments Per Year, Leveraging Multiple Teams Across 3 SAP ECC Systems…

Canada /

LatinAmerica

E03 ECC C11 ECC New S/4 P10 ECCLegend:

Governance Strategy

21

Multi-tier Governance Model for Each Program Ensures Execution Within & Strategic Alignment Across Programs…

Purpose Organizations Cadence

Ste

erin

g C

om

mit

tee Provides Strategic Alignment, Roadmap, &

Portfolio Management across SEF & Central

Finance Programs

Ensures Program Health by Resolving Escalated

items (e.g. Risks / Issues), & Establishing

Required Resources

Executive Leadership Including:

• BU & Corp Finance Senior Leadership

• IT Senior Leadership

• SEF & CFIN Integration Leadership

• Accenture Senior Leadership

• SAP Senior Leadership

• PMC Senior Leadership (SEF Only)

Monthly

Glo

bal

Des

ign

Au

tho

rity

Defines Global Solution Design including

Process, Data and Integration strategy

Advocates for Harmonization & Standardization

Operational Leadership:

• FT & Corporate Finance Functions

• BU’s / BU Functions

• IT Functions

• SEF or CFIN Integration

• Program Leadership

Biweekly

Pro

gra

m

Lea

der

ship Executes Project Deliverables According to

Timeline & Budget• IT Program Leadership

• Finance Program Leadership

• Accenture Program Leadership

• PMC Program Leadership (SEF Only)

Varies

(Daily,

Weekly)

Global Finance Design Board

Purpose Organizations Cadence

Guides Strategic Roadmaps Across All Apps Supporting

Financial Activities (ERP, EPM, BI, ETL)

• BU & Corp Finance Senior Leadership

• IT Senior LeadershipMonthlyCentral Finance

Executive

Steering

Committee

Global Design

Authority (GDA)

Program Leadership

Central Finance Team Structure

Executive Sponsors Program Leads

Process & Solution SAP Support

PMO

Data / Technology Change Mgmt

External Support Groups

Delivery Leads

GRC / Security / Controls

Cross S/4 Workstreams

Team:• SBD Finance• SBD IT• Accenture

SAP Basis

Team: • SBD Finance

Key Areas: • Training• Communications

MDM Tool / Governance

SAP Development

FICO Delivery Support

BI Integration

Internal Supporting PlatformsCentral Finance Workstreams

Infrastructure

**Reporting Teams Work Closely Together on Requirements

Data Services

BU Support Team

• Dedicated Members

• Subject Matter Experts

• SBD IT• Accenture

• SBD Finance Leadership • SBD IT Leadership• Accenture Leadership

• SBD VP Corporate Finance

• SBD IT CIO

• SAP Customer Care

• Accenture / Protiviti Leadership

• SBD Finance Leadership• SBD IT Leadership:

• Business Services • Application Services• Middleware & Platform• Services Management

Key Areas: • Procure-to-Pay• Treasury / Banking• RTR / Fixed Assets• Statutory Compliance• Order-to-Cash• S/4 Reporting**

Team:• SBD Finance• SBD IT• Accenture

Key Areas: • SLT Design• AIF / FICO Integration• Data Conversion / Harmonization• Reporting Integration**

Team:• SBD Finance• SBD IT• Protiviti

Key Areas: • GRC• Security • Controls

Team: • SBD IT• Accenture

Key Areas: • SLT• Development• Reporting• Architecture

• SBD IT

Team:• SBD Finance• SBD IT

Key Areas: • BP / Customer• BP / Vendor• Finance Objects

Team:• SBD IT• Accenture

Key Areas: • Testing• Deployment• Hypercare

• SAP Max Attention

• SAP Integrated Business Solutions

• Hosting Partner

Team: • SBD IT

Key Areas: • Business Objects• Business Warehouse

• SBD IT

• SBD IT

Carefully Coordinated Effort Across SBD & 5+ External Organizations…

22

Challenging Areas & Lessons Learned

• Master Data

– Common Definition / Ongoing Governance

• Utilizing New S/4 Functionality

– Document Splitting / Parallel Ledger / Group Currency

• Configuration Alignment

– Tax Codes / Document Types / Fields Status / Credit

Source / Target Alignment

• Integrated Processing

– Credit Management / Posting Periods / Exchange Rates

• Centralized Processing

– Central Credit Checks / Introduction of Banking Hub

• Financial Interfaces

– Expenses / Payroll / Finance Journal Upload

• Ongoing Landscape Planning

– Copybacks / Maintenance Slots / N+1 Environment

• Cutover Scheduling

– Downtime / Reconciliation / Activation & AIF Cleardown

• System Performance

– AIF Cleardown / Fiori / Network Bandwidth / Volume Testing

• User Interface

– Fiori / GRC & Role Design

• Skills & New Technology

– SLT / CDS Views / AIF

• Reporting

– Source & Target consistency / Non-Finance (Source System) Data

Repositioning Processing / Integration

Systems Landscape Management User Related

Recognise the Scale of Non-Alignment & Plan Accordingly Close Coordination with Related Process & Systems Owners

Significant Change Management, Training & New Skill-SetsHardware and Technical Dependencies Result from Replication

23

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Presentation Materials

Q&AFor questions after this session, contact us at Jennifer.Snyder2@sbdinc.com

and Leighton.Haywood@sbdinc.com

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