finance transformation - nswcfo.com.au · finance is looking to manage the whole lifecycle align...
TRANSCRIPT
1 © 2014 Adaptive Insights | Confidential & Proprietary
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
2 © 2015 Adaptive Insights | Confidential & Proprietary
The Changing
Role of Finance
3 © 2015 Adaptive Insights | Confidential & Proprietary
3 out of 4 of finance leaders have
seen their strategic
influence increase over
the last three years
4 © 2015 Adaptive Insights | Confidential & Proprietary
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
5 © 2015 Adaptive Insights | Confidential & Proprietary
Role of Finance – Where Are You?
Based on 2012 survey by audit, tax and consulting firm Armanino LLP
6 © 2015 Adaptive Insights | Confidential & Proprietary
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
7 © 2014 Adaptive Insights | Confidential & Proprietary
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
8 © 2014 Adaptive Insights | Confidential & Proprietary
What is Lean Finance?
9 © 2014 Adaptive Insights | Confidential & Proprietary
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
10 © 2015 Adaptive Insights | Confidential & Proprietary
Successful performance
management transformation
aligns people, processes,
and data.
11 © 2015 Adaptive Insights | Confidential & Proprietary
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
12 © 2014 Adaptive Insights | Confidential & Proprietary
Why Now?
Speed Is
Incredibly Important
Information
Travels Fast
Competitors Respond
More Quickly
13 © 2015 Adaptive Insights | Confidential & Proprietary
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
14 © 2015 Adaptive Insights | Confidential & Proprietary
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
15 © 2014 Adaptive Insights | Confidential & Proprietary
Two BIG Opportunities to Improve
Close
Books
Consolidate
Financials
Report
Results
Analyze
Close FP&A
Efficiently
Repeat
Plan
and Model
16 © 2014 Adaptive Insights | Confidential & Proprietary
Close
Books
Consolidate
Financials
Report
Results
Analyze
Close FP&A
Efficiently
Repeat
Plan
and Model
Two BIG Opportunities to Improve
17 © 2015 Adaptive Insights | Confidential & Proprietary
Executives Finance Sales Ops
Plans Models Dashboards Reports Forecasts
Current Systems Hold Finance Back
Manual. Siloed. Error-Prone.
18 © 2015 Adaptive Insights | Confidential & Proprietary
The New Role of Finance
Requires Rethinking Business Analytics
Reporting
Planning
Analytics
Consolidation
Integration
Cloud
19 © 2015 Adaptive Insights | Confidential & Proprietary
5 Proven
Strategies
20 © 2015 Adaptive Insights | Confidential & Proprietary
of CFOs see the cloud as the
future for their applications
81 %
21 © 2015 Adaptive Insights | Confidential & Proprietary
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
22 © 2015 Adaptive Insights | Confidential & Proprietary
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.
23 © 2014 Adaptive Insights | Confidential & Proprietary
FP&A Architecture at Enterprise:
Current State
Corporate
(FP&A Ops)
On-Premise/
Legacy Platform
Business Unit/
Division
Country/
Region Plant
Function/
Branch
24 © 2014 Adaptive Insights | Confidential & Proprietary
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
25 © 2014 Adaptive Insights | Confidential & Proprietary
Finance Sales
Marketing HR
Need to share data and collaborate
with teams across the enterprise
Elevate Engagement
Get Managers Involved
26 © 2015 Adaptive Insights | Confidential & Proprietary 26
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
27 © 2015 Adaptive Insights | Confidential & Proprietary
Link Analytics and Plans
Make Better Decisions, Faster
Sales
Plans
Finance
Plans
Finance
Ops
Sales Agility and
Better
Decisions KPIs
Reports Plans
28 © 2014 Adaptive Insights | Confidential & Proprietary
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
29 © 2015 Adaptive Insights | Confidential & Proprietary
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
30 © 2014 Adaptive Insights | Confidential & Proprietary
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
31 © 2014 Adaptive Insights | Confidential & Proprietary
Institute Performance Monitoring and Reporting
Diagram of forecasting and reporting
Forecast Actual
32 © 2014 Adaptive Insights | Confidential & Proprietary
Close
Books
Consolidate
Financials
Report
Results
Analyze
Close FP&A
Efficiently
Repeat
Plan
and Model
Two BIG Opportunities to Improve
33 © 2014 Adaptive Insights | Confidential & Proprietary
Create a Continuous Cycle of Planning &
Analysis
…and make the move from spreadsheets to drive change
Assess &
Monitor Risks
Analyze
& Report
Performance
Goals &
Objectives
34 © 2014 Adaptive Insights | Confidential & Proprietary
2,500 Customers
Customer
Satisfaction 85
Countries
35 © 2014 Adaptive Insights | Confidential & Proprietary
160+ Australian Customers
36 © 2015 Adaptive Insights | Confidential & Proprietary
#1 in Customer Experience
in Customer Experience
in Customer Satisfaction Among Top
Vendors
in Usability, Best ROI
in Value for Money and Visionary
Execution
37 © 2014 Adaptive Insights | Confidential & Proprietary
Big Ideas
Recap
Cloud And
Technology
Are Enablers
Collaborate With
Organization
Performance
Management
Processes
38 © 2015 Adaptive Insights | Confidential & Proprietary
Questions
39 © 2014 Adaptive Insights | Confidential & Proprietary