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PUBLIC

Financial Planning & Profitability AnalysisReimagine Performance

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expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,

and they should not be relied upon in making purchasing decisions.

Disclaimer


“Changes are accelerating as

businesses face a perfect storm of

digital disruption, product

fragmentation, and shifting customer

expectations.

Finance leaders can no longer debate

whether they need to adapt, but decide

how – and how quickly.”

Particularly as digital technologies transform business

Source: CFO.com, July 2015


“Sixty-three percent of

CEOs from high-

performing organizations

believe that technology

will have the greatest

effect on the future role

of the CFO.”

“The greatest

opportunity for a CFO to

impact the value of an

organization: contributing

to performance and

growth, says 6 out of 10

CEOs.”

What the CEO says about the future of the CFO

Source: Forbes (Jan 2015)


Most organizations still use spreadsheets

Desktop spreadsheets are

the tools most commonly

used. Seven out of 10 midsize

or larger companies use them.

Yet nearly half (48%) of

participants said that

spreadsheets make it difficult

to manage the planning

processes.

More than one third (35%) of

organizations routinely find errors

in data, and one fourth (26%) find

errors in formulas. Finding and

fixing errors is one more reason

why spreadsheets are time-

consuming.

Microsoft Excel was originally

released in September 1985.

That is to say, the technology is

older than many of the finance

professionals using it.

Source: Ventana Research, January 2015


In fact, performance management–related technologies are at the top of the

list of analytics upgrades and enhancements

Business analytics upgrades – Which of the following business analytics technologies is your

organization currently upgrading or enhancing?

48

45

44

41

28

26

26

19

18

3

13

0 5 10 15 20 25 30 35 40 45 50

Budgeting, planning, and forecasting

Performance measurement, dashboard, and scorecard

Financial reporting and consolidation

Data warehouse

Financial modeling

Big data

Customer and product profitability

Predictive modeling

Statistical analysis

Other

None of the above

Percentage of Respondents

Source: Gartner. John E. Van Decker, Christopher Iervolino. Survey Analysis: Gartner-FEI Study Helps You Understand the CFO’s Technology View in 2016. July 2016.


19%

19%

30%

33%

39%

40%

54%

0% 20% 40% 60%

Cost control

Performance management

Travel & expense management

Financial planning and analysis (FP&A)

Working capital optimization

Governance, risk and compliance (GRC)

Core accounting and closing

And there’s still much room for improvement

Source: How Finance Leadership Pays Off, Oxford Economics, 2017

Please rate your organization’s effectiveness in the following functions, areas, and activities."Very effective" responses


Digital transformation requires finance to

Assess new

business models

Deliver live insight

to the business

Increase efficiency and

ensure compliance

PUBLIC

The Future of FinanceAggregate Insights from SAP Performance Benchmarking

https://valuemanagement.sap.com/vlm/?ID=616

https://valuemanagement.sap.com/vlm/?ID=616&isNewUI=1&SurveyLanguage=English#/


By role By industry

The Future of Finance Assessment Participant Profile

Participant Profile | Digital Economy | Strategic Growth | Business Performance | Efficiency and Compliance | Key Takeaways | Next Steps

Source: Digital Finance Readiness Assessment 2017 N=81

By region

19%

25%

56%

ExecutiveManagement (C-Level , SVP)

InformationTechnology (VPor Below)

BusinessFunctional (VP orBelow)

16%

24%

3%

57%

Asia Pacific

Europe, Middle East, Africa

Latin America

North America

3%

3%

3%

4%

4%

4%

4%

4%

4%

4%

5%

5%

5%

5%

5%

6%

6%

12%

15%

Automotive

Engineering, Construction and Operations

Media

Aerospace and Defense

Life Sciences

Mill Products

Oil and Gas

Professional Services

Retail

Utilities

Travel And Transport- Airlines & Logistics

Banking

High Tech

Industrial Machinery and Components

Public Sector

Chemicals

Mining

Other

Consumer Products

https://valuemanagement.sap.com/


Finance to become Strategic Partner Driving Transformation In a Digital Economy

4.3vs.

3.2

83% Organizations consider it

important for the Finance function to be

a strategic partner supporting business

model transformation, M&A and other

major capital investment decisions but

less than 40% are able to achieve this


important that planning and budgeting

are dynamic activities, allowing for

rapid adjustments to meet changing

business requirements, but less than

35% are able achieve this


important to provide its front line

leaders with the real time

product, project or customer

profitability information but only

20% are able achieve this

4.0vs.

2.7

4.0vs.

2.6

Finance is a strategic partner

supporting business model

transformation

Strategic Planning to meet

changing business requirementsReal-time visibility into detailed

profitability information


The percentage figures denote the respondents with maturity levels 4 & 5, on a scale of 1-5; 5 being the highest importance / adoption level.


Best Practice


Quickly Adapt To Changing Business Environments To Support Strategic Growth

3.5vs.

2.4


important to perform flexible

modeling of its structures and

can also instantly implement it in

the system, but only 18% are

able to do so


important to carry out what-if

analysis to identify the impact of

scenarios such as proposed M&A’s

and divestitures, but only 16% are

able to do so


important to integrate the

financial data and processes, of

the acquired entity, within a

month of acquisition, but only

21% are able to do so

3.9vs.

2.3

3.6vs.

2.5

Flexible modeling of

organizational structure

What-if Analysis to predict the

impact of key business

decisions

Easy integration of the

acquired data and processes


The percentage figures denote the respondents with maturity levels 4 & 5, on a scale of 1-5; 5 being the highest importance / adoption level.


Best Practice


SAP EPM solutions

Close and disclose▪ SAP Digital Boardroom

▪ SAP BPC

▪ SAP Disclosure Management

application

Strategize and plan▪ SAP Digital Boardroom

▪ SAP Strategy Management

application

▪ SAP BPC

▪ SAP Analytics Cloud

Analyze and optimize▪ SAP Digital Boardroom

▪ SAP Analytics Cloud

▪ SAP FSPER

▪ SAP BPC

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functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason

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