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SAPinsider Benchmark Report

SAP S/4HANA Finance: State of the Market

Robert Holland April 2020

Research Partner

Report Sponsors

i | SAPinsider Benchmark Report

SAP S/4HANA FINANCE: STATE OF THE MARKET

Research Partner The best-run businesses make the world run better. With courage, perseverance, and breakthrough technology, SAP customers tackle some of the world's biggest challenges. Find out how they work with SAP to make a lasting difference – and learn about the technology solutions that fuel their innovation.

For more information, visit https://www.sap.com

https://www.sap.com/

i | SAPinsider Benchmark Report


Table of Contents

Executive Summary .............................................................................................. 1 Required Actions .............................................................................................. 2

Chapter One: SAP S/4HANA Finance State of the Market Overview..................................................................................................................... 4

Best Practices Model – DART ................................................................... 4 What are the Business Drivers for SAP S/4HANA Finance? .. 6 How Do Customers Meet Their Business Drivers? ...................... 7 Key Takeaways ................................................................................................... 9

Chapter Two: How Do SAPinsiders Approach SAP S/4HANA Finance? .................................................................................................................... 10

Top Requirements for SAP S/4HANA Finance ............................. 10 Which Tools Do Respondents Use to Support SAP S/4HANA Finance? ........................................................................................ 12 Key Takeaways ................................................................................................. 14

Chapter Three: Required Actions .............................................................. 15 Steps to Success .............................................................................................. 16

Methodology .......................................................................................................... 17 Appendix A: The DARTTM Methodology ................................................. 18

Report Sponsors ................................................................................................... 19

| SAPinsider Benchmark Report


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Executive Summary inance departments today face increasing demands to deliver real-time reporting and analysis from a broader array of sources on top of

fulfilling their historical responsibilities. Whether this involves integrating data from multiple systems into one centralized platform in order to conduct that reporting, or streamlining operations to free up resources to perform these new tasks, finance departments are being pressed to refocus priorities and look at solutions like SAP S/4HANA Finance to provide the tools they need.

In Q1 of 2020, SAPinsider surveyed 186 members of our community to understand their current plans for SAP S/4HANA Finance, the current financial systems they are running, and what is driving organizations’ SAP S/4HANA Finance strategy as they adapt to today’s financial challenges. Continuing the adoption trends that we've seen in recent reports, which reflect a steady growth in SAP S/4HANA usage, 29% of respondents indicated that they are running SAP S/4HANA (23%) or SAP S/4HANA Cloud (6%) as their primary finance and accounting system. The system most commonly in use is still SAP ECC 6.0 (54%) (see Figure 1).

Figure 1: Current primary finance and accounting system

Source: SAPinsider, April 2020

0%

10%

20%

30%

40%

50%

60%

SAP ECC6.0

SAPS/4HANA

SAPBusinessSuite onHANA

SAPS/4HANA

Cloud

Other SAP ECC5.0 orearlier

SAPBusiness

Suite

F

Since finance and logistics constitute about two thirds of any company’s set of processes, there is a lot to be gained from integration. For example, costing for production needs is automatically noted in the accounting system and has an instant effect on the enterprise balance sheet. And in the end, all these changes are displayed in real-time.

~ SAP Administrator,

Beverage Manufacturer



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The survey revealed several other trends regarding respondents' plans for SAP S/4HANA Finance.

• The majority (60%) of respondents plan to deploy SAP S/4HANA Finance integrating both financial and logistics data. 20% of respondents plan to use the SAP S/4HANA for central finance foundation deployment option for all their financial data, with another 13% planning on using that option for some of their financial data.

• Close to two thirds of respondents (62%) said that the top pain point when it comes to financial areas or processes was budgeting and financial planning, and 33% said that this is an area they do not have time to prioritize.

• More than half (58%) of respondents said that financial close was a significant pain point for them when it comes to financial areas or processes.

• When asked to rank the challenges faced with evaluating a new finance or accounting migration, cleansing and improving data quality was at the top of the list.

Required Actions

Based on the responses that we received in the survey, organizations that are determining their current strategy for finance and accounting projects should:

• Look to improved functionality in SAP S/4HANA Finance to address budgeting and financial planning. New features in SAP S/4HANA and SAP S/4HANA Finance provide significant opportunities for members of the SAPinsider Community to meet new requirements and address pain points in the area of budgeting and financial planning. The biggest improvement is the Universal Journal,

COVID-19 IMPACT

SAPinsider launched our research on this topic before the biggest impacts of the COVID-19 crisis were felt. Given that this crisis is having such a broad impact globally, we asked every respondent we interviewed after the completion of the survey to see if the crisis was changing their organization’s plans.

All organizations we spoke to were still in the planning phase for their SAP S/4HANA Finance transition, with the actual deployment scheduled for 2021. None of those we interviewed said that they had changed their plans at this time, though about half indicated that they were closely monitoring their budgets.

SAPinsider is launching a full survey on the impact of the COVID-19 crisis on our community and will publish the results as soon as they are available.



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which allows for all actual data to be centralized and readily accessed, although plan data still resides in whatever planning tool is used. Another new feature is integration with SAP Analytics Cloud, SAP’s planning tool of choice.

• Prioritize master data harmonization when transitioning to SAP S/4HANA Finance. With many customers planning on using the centralization capabilities of SAP S/4HANA Finance, master data harmonization will be key to a successful move. This is crucial when integrating data from multiple systems but is particularly important in this transition given the table structure changes between older SAP ERP platforms and SAP S/4HANA Finance.

• Start the business case for SAP S/4HANA by identifying pain points and correlating those with SAP S/4HANA benefits. Building the business case was ranked second in challenges faced by respondents when evaluating a finance or accounting system migration. To make that task easier, start by looking at where your organization is facing challenges, such as purchasing or asset management, and find the SAP S/4HANA Finance features that address these issues.

• Focus on actions and requirements that help streamline period close. With financial close being highlighted by 58% of respondents as a top pain point, as you build your business case and do your SAP S/4HANA Finance implementation, focus on actions you can be taking and requirements that you can meet with the features and functionality of SAP S/4HANA and SAP S/4HANA Finance.

For us, financial information is paramount and non-financial information is used to tell the narrative or the story behind the financial information. We take financial information from SAP S/4HANA and embed it in PowerPoint and use non-financial information such as net promoter score, geopolitical, and economic environment to tell the story and produce the trend behind the numbers.

~ SAP Administrator, Global

Manufacturer



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Chapter One: SAP S/4HANA Finance State of the Market Overview According to SAPinsider Experts like Paul Ovigele, the most critical financial tasks for any organization are period close and budgeting procedures; however, simply producing financial close reporting is no longer sufficient. Finance teams are being asked to provide mid-month snapshots of data as well as forward-looking forecasts and real-time analysis of not just the data that is traditionally stored in the ERP system, but data from non-financial sources across the enterprise as well. Coupled with these requests for real-time data insight is the rapid expansion of sources and quality of information, including dynamic customer systems and networked supply chains. Navigating volumes of information to meet these complex reporting requirements has created a challenge for ERP customers who are looking at features and functionality in SAP S/4HANA Finance to help them satisfy the demand.

Best Practices Model – DART

SAPinsider grounds all our research insights in our proprietary DART model. This research model provides practical insights that connect business Drivers and Actions to supporting Requirements and Technologies. Drivers represent internal and external pressures that shape organizational direction. Organizations take Actions to address those Drivers. They need certain people, processes, and capabilities as Requirements for those strategies to succeed. Finally, they need enabling Technologies to fulfill their Requirements.

In this report, the improved functionality within SAP S/4HANA Finance, the need to reduce time required to generate data and reporting at period close, and the pressure to reduce the complexity of financial operations emerged as the key business drivers. To satisfy these drivers respondents indicated that they are taking actions to deliver real-time insight and analysis, improve efficiency

We are seeing a pendulum turn from specialized departmental solutions optimizing micro-aspects of individual finance processes towards a foundational and holistic advance of the way we go about finance, with the idea of singularity towards data, applications and processes.

~ Carsten Hilker, Global

Solution Owner, SAP S/4HANA Central Finance,

SAP



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with finance operation to free up resources, and create a single source of truth for their financial data. They are also planning for the migration to SAP S/4HANA Finance.

In order to succeed in this approach, respondents know that they need to use consistent tools and methods to simplify data synthesis and consolidation, implement “Central Finance” that delivers visibility and control over all financial data and processes, include data harmonization that enables interoperability and insight, and build an integrated ERP that connects finance with supply chain and customer systems. Respondents use or plan to use a wide range of SAP and partner tools and platforms to fulfill these requirements.

Respondents’ answers to our survey and interview questions revealed clear trends, which are summarized in Table 1 and will be examined throughout this report.

Table 1: DART model framework for enterprise security strategy

Drivers Actions Requirements Technologies • Improved functionality within

SAP S/4HANA Finance necessitates upgrade from current ERP (33%)

• Need to reduce time required to generate data and reporting at period close (31%)

• Pressure to reduce the cost and complexity of financial operations (30%)

• Delivering real-time insight and analysis across both financial and non-financial drivers and indicators (46%)

• Improve efficiency with finance operations to free up resources for higher-value tasks (45%)

• Create a single source of truth for your financial data (42%)

• Migrate to SAP S/4HANA Finance (35%)

• Consistent tools and methods to simplify data synthesis and consolidation across the organization (61%)

• "Central Finance" that delivers visibility and control over all financial data and processes (59%)

• Data harmonization that enables interoperability and insight (59%)

• Integrated ERP that connects finance with supply chain and customer systems and data (59%)

• Ability to produce snapshots to provide insight into month-end based on current data (59%)

• Profitability and performance analysis (86%)

• Integrated advanced and predictive analytics built over live data (85%)

• Financial closing cockpit software (82%)

• Comprehensive data management (81%)

• Third party reporting and analytics tools (80%)

• Cash management solutions (79%)

• Tightly integrated central finance automation (78%)

• Modern conversational user interfaces (75%)



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What are the Business Drivers for SAP S/4HANA Finance?

One third (33%) of survey respondents reported that their primary business driver for SAP S/4HANA Finance was the improved functionality in the product necessitating an upgrade from their current ERP system. A slightly smaller number of respondents (31%) said the need to reduce the time required to generate data and reporting at period end was the second biggest driver, and 30% of respondents said that they were under pressure to reduce the cost and complexity of financial operations. While the end of maintenance of existing SAP ERP systems has been, and in many organizations continues to be, a major driver for making the move to SAP S/4HANA, that may no longer be the primary reason behind performing a transition. This is particularly true with SAP S/4HANA Finance as organizations consider access to functionality like Universal Journal and integrated SAP Fiori apps as sufficient justification for the transition (see Figure 2).

Figure 2: Top drivers for SAP S/4HANA Finance


Beyond the new features in SAP S/4HANA Finance, a critical driver for SAP S/4HANA Finance is that of accelerating period close. Identified as a top pain point for financial areas or processes by 58% of respondents, the need for finance

0%5%

10%15%20%25%30%35%40%

Improved functionalitywithin SAP S/4HANA Finance

necessitates upgrade fromcurrent ERP

Need to reduce timerequired to generate data

and reporting at period close

Pressure to reduce the costand complexity of financial

operations

Organizations must be able to use real-time insight in a productive way and in many companies finance and controlling are not fully prepared for this. Nevertheless, using embedded real-time capabilities in SAP S/4HANA is a game changer. Insights down to the document level are available as soon as the transactions post.

~ SAP Administrator,

Chemical Manufacturer



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teams to reduce the time required to generate data and reporting at period close feeds into the need to increase their capacity for other requirements being placed on them, such as planning and analysis. (If finance teams are unable to finish reporting and close quickly, they are unable to transition to other high priority tasks.) Finally, the pressure to reduce the cost and complexity of financial operations demonstrates that organizations need less costly and more streamlined financial operations. Just as the pressure to reduce cost has impacted other parts of the organization, it is having a similar impact on finance departments and teams.

How Do Customers Meet Their Business Drivers?

Nearly half (46%) of respondents indicated that the main action they are taking to address their drivers is to deliver real-time insight and analysis across both financial and non-financial drivers and indicators. This real-time insight supports those drivers by providing reporting that can be used before and after period close. It also leverages the improved functionality in SAP S/4HANA Finance to allow for more informed decision making.

Figure 3: Top strategies prioritized to address the top drivers of change


0%5%

10%15%20%25%30%35%40%45%50%

Delivering real-timeinsight and analysis

across both financialand non-financial

drivers and indicators

Improve efficiencywith finance

operations to freeresources for higher-

value tasks

Create a single-sourceof truth for your

financial data

Migrate to SAPS/4HANA Finance

From a finance point of view the key attraction of SAP S/4HANA Finance is the Universal Journal, and that’s because it eliminates reconciliations at the end of the month, which also prolong the timeline. Having all the data from the different modules in the same table and just carving out the data you want is a totally different ballgame from extracting different reports from different tables that may not reconcile and do not provide a single source of truth.

~ Paul Ovigele, CEO,

ERPfixers



8

Additionally, 45% of organizations said that they were working to improve efficiency within finance operations to free up resources for higher-value tasks (See Figure 3). This aligns with all three of the top drivers since improved efficiency can be achieved by utilizing the functionality in SAP S/4HANA Finance, can help support a faster period close, and can also help reduce the cost of financial operations.

Demonstrating that centralization of their financial data is a critical goal for many organizations, 42% of respondents said that they are looking to create a single source of truth for their financial data. Respondents prove that they are able to achieve this goal as part of their upgrade using the capabilities in SAP S/4HANA or SAP S/4HANA Finance regardless of whether they are taking the approach of using the SAP S/4HANA for central finance foundation deployment option as a way to incorporate data from multiple existing ERP and other financial systems, or are simply leveraging the opportunity the transition presents to centralize their financial data in a single ERP deployment.

The final top strategy, selected by 35% of respondents, is moving to SAP S/4HANA Finance. Even though 29% of those not yet running SAP S/4HANA said they have no plans to migrate, it is notable that the main action being taken by over a third of respondents is to make the transition to SAP S/4HANA Finance happen. This is still moving ahead even with the impact of the COVID-19 crisis, as most respondents interviewed following the survey indicated that while budgets were either being closely monitored or had been somewhat reduced, their plans to migrate to SAP S/4HANA Finance were not significantly impacted (see special note about COVID-19 Impact).

The increased focus of the survey respondents on the innovations delivered by SAP S/4HANA Finance is remarkable and significant; showing a more mature but also serious approach towards evaluation of SAP S/4HANA in the context of fixing and elevating the finance function.

~ Carsten Hilker, Global

Solution Owner, SAP S/4HANA Central Finance,

SAP



9

Key Takeaways

Based on our research with respect to SAP S/4HANA Finance, the following takeaways are clear:

• Focus on improved features in SAP S/4HANA Finance that accelerate financial close. When determining your strategy for SAP S/4HANA Finance, some of the biggest improvements will not only help increase performance in general but can significantly impact the time needed to complete financial close. This will help with building the business case for SAP S/4HANA Finance as well as help make financial processes more efficient in other areas.

• Centralize your financial and planning data. Moving to SAP S/4HANA Finance allows organizations to create a centralized source of all financial data resulting in a single source of truth that can be reported on in real-time. Performing this integration can be a significant challenge during the transition but is worth the benefits in reduced cost and complexity and improved insight and analysis capabilities.

• Prioritize changes that reduce complexity. Even though the centralization of data can involve significant preparation when performing the transition, these changes will reduce the overall complexity of many financial reporting and operational processes. This simplification will also help reduce the cost of financial operations, as many previously complex tasks can be performed more quickly and efficiently, freeing up resources for higher value tasks.

• Plan for an eventual transition to SAP S/4HANA Finance. With the current global situation, organizations are being forced to reprioritize ongoing plans. Some have cancelled everything except critical and time sensitive tasks, others are delaying decisions to preserve funds for an uncertain future, and a few are moving ahead or even accelerating plans. However, even SAPinsiders who are currently not even considering a transition to SAP S/4HANA Finance will need to eventually do so as SAP’s end of maintenance deadlines approach. Ensure that you have the information you need to be ready when that happens.



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Chapter Two: How Do SAPinsiders Approach SAP S/4HANA Finance? A move to SAP S/4HANA Finance involves not only the technical transition, but also teams across both IT and line of business functions working together to ensure that requirements and standards across the organization are understood, considered, and addressed. This section explores how respondents prioritized the different requirements and capabilities that their organizations needed around SAP S/4HANA Finance and the tools they used to support those requirements.

Top Requirements for SAP S/4HANA Finance

Respondents to the survey selected consistent tools and methods to simplify data synthesis and consolidation across the organization, with 61% indicating that this was important or very important to their organization (see Figure 4).

Figure 4: Top requirements for SAP S/4HANA Finance


55%56%57%58%59%60%61%62%63%

Consistent toolsand methods to

simplify datasynthesis andconsolidation

across theorganization

"Central Finance"that deliversvisibility and

control over allfinancial data and

processes

Dataharmonizationthat enables

interoperabilityand insight

Integrated ERPthat connectsfinance with

supply chain andcustomer

systems and data

Ability toproduce

snapshots toprovide insightinto month-end

based on currentdata

One of the key drivers that I have come across in companies is shortening the time of close. This ensures that organizations are not getting any surprises during the close process, and thereby have better insight into what the financial close numbers will look like. Tools such as predictive accounting, predictive analytics, and real-time profitability analysis help provide that insight so that you know what is likely to be coming.


ERPfixers



11

Having consistent tools and methods to simplify data synthesis and consolidation across the organization is important because it allows organizations to develop real-time insight and perform analysis of their financial and non-financial data. When the data is effectively consolidated and centralized—as is possible using the Universal Journal, a new feature in SAP S/4HANA Finance—it helps improve efficiency of finance operations and provides a fully integrated, single source of truth, which significantly reduces the time required for period close.

The second most important requirement selected by respondents was that of “Central Finance” that delivers visibility and control over all financial data and processes (59%). While this option could involve SAP S/4HANA for central finance foundation (SAP Central Finance)—a deployment option enabling real-time replication of financial transactions from multiple SAP and non-SAP ERP systems using SAP Landscape Transformation Replication Server (SAP SLT)—this requirement is more about having a centralized repository of financial data, which allows organizations to have a single source of truth.

Other top requirements include data harmonization that enables interoperability and insight (59%), an integrated ERP that connects finance with supply chain and customer systems and data (58.5%), and an ability to produce snapshots to provide insight into month-end based on current data (58.5%). Data harmonization is particularly important for organizations looking to centralize multiple existing ERP systems into a single SAP S/4HANA Finance instance, especially if those systems have been using different or disconnected charts of accounts, while an integrated ERP system is critical for supporting the action of delivering real-time insight and analysis.

The ability to produce snapshots to provide insight into month-end data based on current data, or to be able to perform a soft close to the period based on current transactions, connects directly to the driver for a faster period close, as well as supporting the action of improving

We expect embedded analytics to provide better access to data, and the updated platform in general to allow better integration with analytical and visualization tools.

~ Accounting and

Procurement Manager, Public Sector



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efficiency of financial operations. Given that 58% of respondents indicated that financial close was a top pain point for them, and that the new Universal Journal in SAP S/4HANA Finance provides a single source of truth in which nearly all financial data is combined not only into a single system but largely into a single table, it is no longer necessary for organizations to spend hours compiling multiple reports from different data sources that may not even agree. With SAP S/4HANA Finance, financial close can be reduced to hours instead of days by eliminating the need for additional journal entries and extensive reconciliation.

Which Tools Do Respondents Use to Support SAP S/4HANA Finance?

Profitability and performance analysis is the most popular underlying tool or technology for respondents, with 86% saying that they use or plan to use it (Figure 5). Profitability and performance analysis is key for organizations as they look to optimize performance and improve their bottom line, directly connecting to the pressure to reduce the cost and complexity of financial operations. This will also be achieved by improving efficiency in a fully integrated ERP.

Figure 5: Popular technologies in SAP S/4HANA Finance


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100%

Profitability andperformance

analysis

Integratedadvanced and

predictiveanalytics builtover live data

Financial closingcockpit software

Comprehensivedata

management

Third partyreporting andanalytics tools

Cashmanagement

solutions

Currently Use Implementing Evaluating/Aware of Need

Where SAP Fiori helps is that it makes it easier to use the system. With SAP Fiori applications you can have a single screen that has the right buttons and filters to quickly refine your view. If you’re performing a task, then you have one app which has everything that you need to process what you want to get out of the system. It’s another huge driver with deploying SAP S/4HANA Finance. Having this in combination with the Universal Journal is like having a single source of data on steroids.


ERPfixers



13

Most respondents (85%) are also looking to use integrated, advanced, and predictive analytics built over live data. With the changes that have been impacting businesses over the last two months as a result of COVID-19, there is a critical need for organizations to have up-to-the-minute insight into their financial data in order to make accurate predictions and forecasts. This data is not only easier to produce but is also more complete when it is generated from an integrated and centralized ERP system, directly connecting to that requirement. It also addresses the requirement for having consistent tools and methods to simplify data synthesis and consolidation.

The need for financial closing cockpit software, currently in use or planning to be used by 82% of respondents, is a critical part of reducing the time required to generate data and report at period close. While previously available as an add-on for SAP ECC, SAP Financial Closing cockpit for SAP S/4HANA has been part of the digital core since SAP S/4HANA 1709, providing a much tighter and more effective integration and allowing for a more transparent, efficient, and compliant period close.

SAPinsiders also use or plan to use comprehensive data management (81%), third party reporting and analytics tools (80%), and cash management solutions (79%). Having comprehensive data management is a key part of SAP S/4HANA Finance, particularly if organizations are bringing together multiple data sources and want an integrated system that contains fully harmonized data. Third party reporting and analytics tools are often used by those running older ERP systems as they provide capabilities beyond what is available in SAP ECC, but they work best when running in a fully integrated and centralized ERP such as that offered by SAP S/4HANA Finance.

Another key tool for most respondents (75%), and a major factor for upgrading to SAP S/4HANA Finance, is that of modern conversational UI interfaces. While it is possible to use SAP Fiori with older ERP systems, the integration available with SAP S/4HANA Finance has added significant



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benefits to the system—particularly when used to report on the Universal Journal. While other tools can be used to provide reporting, the integrated SAP Fiori-based applications provide quick and easy ways for any authorized user to access, filter, and display the data that they need to perform their roles on a daily basis.

Key Takeaways

When it comes to equipping organizations with the capabilities and technologies required for an effective enterprise security strategy:

• Centralize financial data to deliver better visibility and control. Using the capabilities of SAP S/4HANA Finance to bring together data from different sources will not only allow for a single source of the truth when it comes to financial data, but will provide better visibility and control over financial data and allow for a faster audit process.

• Clean and harmonize data as part of the transition process. This is particularly true of master data, as many organizations are looking to integrate data from multiple financial systems. Whether integrating multiple charts of accounts or connecting multiple third-party sources into SAP S/4HANA for central finance foundation, harmonization is critical.

• Support strategies for adopting soft close. Having snapshots that provide insight into financial close is becoming the focus of finance teams. Follow strategies that support the development of tools that include these functionalities, provide for faster financial close such as the SAP Financial Closing cockpit, and allow for data reporting and analysis.

• Use tools that cater to the new demands placed on finance teams. From profitability and performance analysis, to advanced and predictive analytics, and modern user interfaces like SAP Fiori, tools that help your finance teams more readily address the accelerating demands placed on them are critical to organizational success. Ensure that these features are part of your planning for SAP S/4HANA Finance, or that they are added to your implementation schedule if you have already migrated as they can help finance professionals evolve from backwards looking reporters to forward-looking strategists and true business partners.



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Chapter Three: Required Actions The previous chapters clearly show how members of the SAPinsider Community currently align business drivers and actions with supporting requirements and technologies.

Most of the respondents to this survey (77%) have at least started evaluating the business case for SAP S/4HANA Finance, with 29% saying that they are already running either SAP S/4HANA or SAP S/4HANA Cloud as their primary finance and accounting system. Respondents indicated their top challenges inhibiting adoption are competing priorities (61%) and internal capacity constraints (56%). Although competing priorities should decline the closer organizations get to the 2027 deadline for mainstream maintenance of legacy ERP systems because of the increased pressure to move onto a fully supported product, interviews with respondents suggest that a significant number view the 2030 date for the conclusion of extended maintenance to be the true deadline for transition.

While the improved functionality in SAP S/4HANA Finance was the main driver for respondents’ strategy around migrating to the product, that was closely followed by the need to reduce the time required to generate reporting and data at period close. This connected closely with respondents’ desire to deliver real-time insight and analysis on both financial and non-financial data, need to complete a soft close of their financial data prior to period end, and need to have access to technologies like integrated and advanced analytics and financial closing cockpit software.

As SAPinsider has seen in previous research, building the business case was one of the top two challenges with evaluating a finance/accounting migration to a new SAP platform, surpassed only by the challenge of cleansing and improving data quality. However, organizations are prioritizing the requirement of data harmonization, as well as looking for tools that simplify data synthesis and consolidation, in addition to the centralization of their financial data and processes.



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Steps to Success

Our research reveals that members of the SAPinsider Community should apply the following key steps as they execute their strategy around SAP S/4HANA Finance.

• Build your financial technology around streamlined processes, starting with period close, to reduce costs and provide greater value. Period close is one of the biggest pain points for users of financial systems. Ensuring that you put a focus on streamlining processes and procedures that directly impact financial close will not only accelerate that task, but it will have the additional benefit of freeing up resources for other reporting and planning activities. Access to these resources will provide greater value for the organization and reduce the overall costs involved with period close.

• Create a system that provides a single source of financial data within your organization. One of the biggest benefits in SAP S/4HANA Finance is the Universal Journal. Bringing together the Financial Accounting (FI) and Controlling (CO) components into a single line item table, the Universal Journal allows organizations implementing SAP S/4HANA Finance to consolidate all of their financial data into a single source of truth that can then be used to support all their reporting and planning needs.

• Implement tools that provide real-time insight and analysis. Whether you are using Excel-friendly financial tools and plugins or reporting based in SAP Business Warehouse or SAP BW/4HANA, or using SAP Analytics Cloud for your reporting and planning, implementing tools that allow you to access features like the centralized repository of data in the Universal Journal in real time will benefit the organization significantly.

• Integrate your financial system and ERP with other internal systems. Whether your organization is large enough to utilize the SAP S/4HANA for central finance foundation that allows the real-time integration of multiple financial systems, or you are simply pulling data from different sources into SAP S/4HANA Finance, integrating data from both existing ERP systems as well as other internal systems provides a significant advantage in both reporting and planning. Performing this centralization of financial data early in the process will have significant long-term benefits.



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Methodology Between February and April of 2020, SAPinsider examined the experiences of businesses and technology professionals related to their enterprise security strategy. Our survey was administered to over 180 customers from the SAPinsider Community and generated responses across a wide range of geographies, industries, and company sizes. Respondents completed an online survey and provided feedback in customer interviews that questioned them on topics such as:

• What are the top drivers for the SAP S/4HANA Finance strategy at your organization?

• What technologies are being evaluated or have already been adopted by your organization to support your SAP S/4HANA Finance strategy?

• What are your top three pain points when it comes to financial areas or processes?

• What are the issues preventing you from implementing SAP S/4HANA Finance?

The demographics of the respondents included the following:

• Job function: Functional areas reported by respondents include: Information Technology (67%), Finance and Accounting (24%), GRC (3%), and Supply Chain (3%).

• Market sector: The survey respondents came from every major economic sector, including: Industrial (37%), Software and Technology (20%), Retail, Distribution & CPG (12%), Public Sector (9%), Healthcare and Life Sciences (7%), and Financial Services & Insurance (7%).

• Geography: Of our survey respondents, 50% were from North America, 27% were from Europe, the Middle East, and Africa, 15% were from Asia-Pacific, Japan, and Australia, and 8% were from Latin America.

North America

50%

EMEA27%

APJ15%

LATAM8%



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Appendix A: The DARTTM Methodology SAPinsider has rewritten the rules of research to provide demonstrable deliverables from its fact-based approach. The DART methodology serves as the very foundation on which SAPinsider educates end users to act, creates market awareness, drives demand, empowers sales forces, and validates return on investments. It is no wonder that organizations worldwide turn to SAPinsider for research with results. The DART methodology provides actionable insights, including:

• Drivers: These are macro-level events that are impacting an organization. They can be both external and internal and require the implementation of strategic plans, people, processes, and systems.

• Actions: These are strategies that companies can implement to address the drivers’ impact on the business. These are the integration of people, processes, and technology. These should be business first but fully leverage technology-enabled solutions to be relevant for our focus.

• Requirements: These are business- and process-level requirements to support the strategies. These tend to be end-to-end for a business process.

• Technology: There are technology- and systems-related requirements that enable the business requirements and support the overall strategies that the company is taking. They must consider the current technology architecture and provide for the adoption of new and innovative technology enabled capabilities.

For more information, visit SAPinsiderOnline.com.

© 2020 SAPinsider, all rights reserved. All print and electronic rights are the property of SAPinsider.

https://sapinsideronline.com/



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Report Sponsors

Avalara helps businesses of all sizes get tax compliance right. Delivering comprehensive, automated, cloud-based compliance solutions for various transactional taxes, including sales and use, VAT, GST, excise, communications, lodging, and other indirect tax types. Our solutions are designed to be fast, accurate, and easy to use, and we offer more than 700 pre-built connectors into leading accounting, ERP, ecommerce and other business applications, including SAP. Learn more about our SAP integrations and speak to a tax specialist at avalara.com/vatlive.

BlackLine is a provider of cloud-based solutions for Accounting & Finance. These solutions complement SAP and extend the ERP investment by automating and streamlining manual accounting processes. BlackLine's solutions address processes like balance sheet account reconciliation, transaction matching, and manual journal entries, building trust in the numbers and freeing critical resources to focus on more value-added work. www.blackline.com/SAP

Vertex, Inc. provides tax technology and services to businesses in all industries, of all sizes, in more than 100 countries. They count on Vertex to meet their tax obligations with speed, efficiency, and accuracy, giving them the confidence to do business anywhere. By supporting the entire tax cycle, and combining data, analytics and expertise, Vertex makes tax a seamless part of our clients’ business transactions and client experience. Our cloud-based, hosted, and on-premise solutions cover every major line of tax, including sales and consumer use, value added and payroll. Headquartered in Pennsylvania, with offices worldwide, Vertex is privately held and employs over 900 professionals. www.vertexinc.com

https://www.avalara.com/vatlive/en/index.html

http://www.blackline.com/SAP

http://www.vertexinc.com/



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