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Three Financial Offerings Today

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These are some of our ambitions. I am sure these are also your ambitions.

They are not new. … <name some of them>

With HANA we are able to tackle with these targets in a new way. We can come

a bit closer to these ultimate targets.

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Business Agility: Acquisitions and reorganizations break the continuity from

past results to future scenarios. We overcome this disruption by running a

system of record on line item level without persistent aggregates. This gives

flexibility in adapting the enterprise to market requirements while keeping

historic data valid in new business contexts – simplifying realignment and

avoiding restatements.

Keen insight: Historic and predictive analytics run on different data sets with a

variety of methods – resulting in a multitude of contradicting views of the past,

fuzzy snapshots of the present, and ambiguous pictures of the future. With next

generation finance real-time information, intra-month soft closes, simulation

with a consistent set of methods on a unified line-item basis produces reliable

forecasts and a solid foundation for business decisions.

Inherent reconciliation: The reconciliation of disconnected data silos is a

recurring nightmare of expensive manual and complex automated tasks that

leaves everyone with the queasy feeling that someone might have missed a

major inconsistency. Next generation finance eliminates reconciliation effort by

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Absprung OneDocument

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What are the capabilities of an accounting system based on SAP HANA ?

There is only one single source of truth for Financial and Managerial Accounting. All General Ledger will be stored in one repository, the revenue and cost part of the P&L has all relevant detail like as to customers, products and regions.

The processing and analysis is based on line items rather than pre-configured totals. Thus you have the highest granularity available, your analysis is not restricted by first setting up aggregates in order to evaluate data fast enough. The aggregates would limit the kind of analysis you can do fast. With HANA you can do all analysis fast, you have all dimensions available which you have in your line items.

The solution is easy to adapt. Any number of customer specific dimensions can be added consistently in Accounting. Some industries like banking and insurance see more and more regulations, which require to add fields to accounting, sometimes 30 or even 80 fields.

Reporting based on this data is fast and flexible. State of the art BI frontend tools can be used for operational reporting, thus the benefits of BI tools are inherited to the transactional system.

The month end closing process is accelerated, some steps can even be run on a daily/weekly basis rather than just at period end. Thus the accounting system can give you insight on a daily/weekly basis.

Finally consolidations could also be run on the original accounting data. Data replication would become obsolete, some consolidation functionality could even be run on the fly in reporting.

! Achtung Demo ! Receivables Manager

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Throughput Boost data throughput by overcoming the lock issue

and reducing data volume to be posted

(Non)-Reconcialition No reconciliation because of ‚One Document‘

Flexibility One starting point to extend and adapt simply and

straightforwardly

Data Volume Reduce data volume dramatically by eliminating

redundancies Performance Expectation: achieve identical response times as

before plus optimize

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In the traditional period close, the system created a list of valid orders and then

looped through this order list to calculate e.g. WIP for each order in turn. This

resulted in relatively small selects with an aggregation per order. This

procedure did not benefit from the HANA architecture (in fact sometimes it was

slower than on a classic database).

In the new approach, stored procedures on HANA are used to select the valid

orders, then the costs per order and to aggregate this data so that it is ready for

use in the relevant calculation (WIP calculation, variance calculation, results

analysis,…)

Instead of calculating e.g. work in process for each order in turn, the system

returns to ABAP to perform the calculation on the whole data set and update

the tables with the results of the calculation. This results in significant

performance improvements.

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Among business intelligence disciplines, prediction provides the most business

value but is also the most complex. Each discipline builds on the one below it –

these are additive, not exclusive, in practice

[[Analysis is probably better described as “How did it happen”. The why is part

of predictive.]]

Reporting, what happened, is the traditional capability which we also have in an

OLTP system.

Analysis requires slice and dice and good visualization, to analyze “how did it

happen” or “why did it happen”.

Monitoring is typically built with dash boards and scorecards, what’s happening

now.

Our objective is to reduce the ‘complexity’ by embedding predictive capabilities

in our BI client tools and business applications. Examples for this are Cash and

Liquidity Forecast and Credit Risk Analysis, Market Risk Analysis.

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In a traditional model we run actual processing and budget control in an OLTP

system, the blue boxes on the left side, and planning and forecasting in a OLAP

system, green and orange box on the right side.

With HANA we run both in the same system. The advantages are: Actuals and planning are based on the same data model. If you extend eg the

accounting model for profitability analysis, the planning model is likewise adjusted.

This simplifies system maintenance. Model extension can be like adding

dimensions or configuration of allocations. The actuals are always available for planning and forecasting, no replication into a

planning system is needed. This increases the time to act eg for cash forecasting.

Data needed for budget control in your transactions is available once the planning and budgeting process is finished, there is no need to “retract” any data back from a

planning system to transactional system

Thus the advantage is simplification of the system.

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