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Transform and Simplify Your Office of Finance.

The Webinar will start at 11:00 CEST


Featured speakers today are:

Wilco Boosman, Group Finance Program Manager SAP Convergence,


Zurich Insurance
Wilco is currently leading Zurichs SAP Convergence Program with the aim to
implement a common Chart of Accounts supported by a single SAP instance for the
Finance functions at group and country level. The program started in 2011 and is
scheduled to complete the last roll-in projects by the end of 2017. With 20 years
experience in various roles in Finance and IT functions, Wilco sees the current and
future challenge in financial services as the need to combine local regulatory
requirements and group objectives in programs designed to target long-term
benefits.
David Ormerod, Director EPM Solutions, EMEA CoE for EPM & LoB Finance
David has almost 20 years experience in designing and implementing Enterprise
Performance Management solutions. He has worked for a number of customer
organisations spanning a wide variety of industry sectors including
telecommunications, financial services, media and oil & gas. In recent years he has
worked as a Solution Consultant and Technical Account Manager for several
Performance Management software vendors including Hyperion and Oracle, prior to
joining SAP in February 2010, where he is responsible for EPM Business
Development in EMEA. David started his career as an academic in Earth Sciences,
which sparked his early interest in analysis and modelling processes.

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Transform and Simplify Your Office of Finance


Wilco Boosman

Group Finance Program Manager SAP Convergence,


Zurich Insurance

David Ormerod

SAP EMEA CoE for Finance

Agenda
The CFO Agenda for Finance Organizations
How SAP is Enabling Real-Time Finance
Finance Transformation At Zurich Insurance
Leveraging Real-Time Finance
Wrap-Up and Questions

SAP Simple Finance Supports The CFO Agenda

Proactively engage with the


business to plan, model, analyze
and predict the financial
implications of strategic and
operational decisions.
Optimize finance processes for
efficient and collaborative
relationships with customers,
suppliers, banks, and
government authorities.
Maintain global regulatory
compliance and controls of
accounting and tax standards,
across currencies, languages
and industries.
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IT Complexity Places Limits on Finance


76% of Finance executives believe at least half their
time should be on high-value planning and analytic
activities
Source CFO.com Research 2013

28%

Drive business
innovation
Drive business
innovation

72%

Keep the
lights on
Keep the
lights on
Forrester IT Survey, 2013

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SAP Simple Finance the Most Comprehensive Portfolio


Business
Partnership

Operations

Financial Planning
and Analysis

Treasury and
Financial Risk
Management

Develop and Translate


Strategy

Compliance

Collaborative
Finance Operations

Accounting and
Financial Close

Payments and Bank


Communications

Receivables Management

Accounting

Enterprise Risk
Management

Planning, Budgeting and


Forecasting

Cash and Liquidity


Management

Collaborative
Invoice to Pay

Entity Close

Controls and Compliance


Management

Profitability and Cost


Management

Debt and Investment


Management

Travel Management

Corporate Close

Access Governance

Monitoring and Reporting

Financial Risk
Management

Financial Shared Services

Reporting and Disclosure

International Trade
Management

Financial Close
Governance

Fraud Management

Commodity Risk
Management

Enterprise Risk
and Compliance
Management

Audit Management

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SAPs In-Memory Data Management Innovation


Providing Real-time Platform for Enterprise Applications

A common Database Approach for OLTP and


OLAP Using an In-Memory Column Database
Hasso Plattner

SAP
In-Memory
Cache

VS.

Transact

Analyze

Accelerate

Transactions + Analysis
directly in-memory

Transforming Through Innovation and Customer Focus


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SAP Simple Finance core component:


Financials Add-On for Suite on HANA

SAP Accounting

SAP Cash Management

powered by SAP HANA

powered by SAP HANA

Integrated
Business Planning

Alternative in-memory
functionality for ERP customers

New product for


Group Cash Management

New capabilities and enhanced


integration for ERP and BPC.

Business Suite on HANA

SAP HANA Platform

Aligned

Agile

Predictive

Single Source of Truth

Real time finance processes

Insight and foresight

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SAPs Next Generation Accounting Solution

SAP Accounting
powered by SAP
HANA

Business Suite on HANA

SAP HANA Platform

Aligned

Agile

Predictive

Single source of truth

Real time finance processes

Insight and foresight

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Characteristics
New product fully
leveraging the benefits
of SAP HANA
Only available on SAP
HANA
Installation on top of
SAP ERP replacing
the accounting in SAP
ERP
Same input and output
interfaces as in SAP
ERP
Current processes and
reporting run with little
or no changes

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Architecture of SAP Accounting powered by SAP HANA

From

Stability

Flexibility

Customer Benefits

Harmonized internal
FI
Document
Logistics
Document

Processing

Financial Accounting

Stability

Totals & Indices

and external
reporting

Significantly

Pre-Defined Aggregates

CO
Document

To

Totals & Indices

Analytics

Management Account.

reduced
reconciliation effort

Significantly
reduced memory
consumption

Flexibility

Higher flexibility in
Processing

Logistics
Document

FI Document

Aggregation on the fly

CO Document

via HANA views

reporting and
analysis

Central journal for


Analytics

heterogeneous
system landscapes

Logical document

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Zurich Insurance Group: Testing and Validating the


SAP HANA Platform for Finance Transformation
Company
Zurich Insurance
Group (Zurich)
Headquarters
Zurich
Industry
Insurance

Products and Services


General and Life insurance
Employees
55,000
Profit
US$4.7 billion
Web Site
www.zurich.com

Objectives
Drive a global finance transformation to align with strategic group priorities
Deliver one common consolidated accounting system for all countries
Enable highly integrated and standardized processes
Accelerate key processes like financial close and reporting
Roll out globally consistent accounting and operational procedures that
comply with company standards
Resolution
Implement a common SAP software platform, chart of accounts, and
reporting dimensions across the globe
Test and validate the financials add-on for SAP Business Suite powered
by SAP HANA
Simplify IT by removing data replications and redundancies

Benefits validated
Ability to redesign finance processes to make them simpler and allow
them to be completed on the fly
Completed a prototype for accelerating financial close processes and
reporting and to achieve greater granularity within reports
Potential to use general ledger postings directly as one source of data for
consolidation with no data replication or redundancy
Removal of restrictions on data volume, enabling a one-client strategy
Fast deployment of the add-on with limited effort

Zurich wanted to be one of the first customers to evaluate the financials


innovation delivered with SAP HANA. Deployed as a simple add-on for
SAP Business Suite powered by SAP HANA, we are really impressed
by the results in terms of the performance, simplification, and agility it
could bring to our finance community.

>50%
Faster runtime for foreign
currency revaluation*

1,000x
Faster reporting (from 15
minutes to 1 second)*

>65%
Faster financial close
processes*

4 hours
Saved on allocation runtime*

*Results of a validation project


by Zurich.

Wilco Boosman, Director SAP Convergence, Zurich Insurance Group (Zurich)


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Outcome of ZURICHs Customer Validation (CuV)


The CuV and extended testing have proven that Financials add-on for SAP Business Suite
powered by SAP HANA is stable with significant benefits in higher performance for fast
closing and (real-time) reporting. The main focus of the SAP innovation is simplification,
which would also address Zurichs current pain points and enables further standardization
of the system landscape and business processes.
Current Pain Points
1.
2.
3.
4.
5.

Data volume restriction will shortly violate


SAP table size recommendations
Lack of flexibility for multi-dimensional
reporting (limitation on reporting dimensions)
Long running batch processes (allocation,
closing and report run times)
Business distrust in todays reporting
landscape preventing business insights
Complex closing processes driven by system
limitations and current architecture

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Financials add-on for SAP Business


Suite powered by SAP HANA
1.
2.
3.
4.
5.

Restriction on data volume has been


eliminated
Limitation on dimensions has been removed
enabling higher reporting granularity
Performance improved by factor 2 4, and
with system optimizations by factor 10+
New tool set provides trusted real-time
reporting capability e.g. during closing time
Closing process will be simplified and
accelerated by eliminating several closing
steps and data reconciliation

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Runtime Comparison
Closing
Closing Process*

495
minutes

449% Runtime Reduction


ECC 6.0

223%
257%

50%

67%

511%

1450%

188%
1667%

188%

932%
90
minutes

CO Allocation FI Allocation

Open Item
Revaluation

GL Balance
Revaluation

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Open Item
Regrouping

GL Balance
Regrouping

IFRS Rollup Cross Checks Download for Balance C/F


Cluster
Consolidation

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Runtime Comparison
General Accounting
ECC 6.0

Conclusions
Extremely fast reporting
capabilities
Idoc processing does
not show much improvement

Financials add-on for SAP


Business Suite powered
by SAP HANA

3900%

Further Optimization

233%

7%

332%

1750%

Line Item
Report
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Custom
Report

Inbound Idoc

Outboud
Interface

Batch
Processing
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Benefits seen by local business


Business Unit
feedback
Allocation:

Performance improvement of 1200% (advantage reduces a bit due to improvements implemented on ECC6)

Improvement enables removal of aggregation cost center (PoC to follow)

This enables backtracking functionality which is the desired functionality

Enables cost controlling and reduces dependencies on additional systems for aggregation & analysis

Process simplification from 31 to 13 steps


Reporting:

Availability of BW Real-Time reporting directly on the FICO data base, without data extraction and time delay
will remove distrust in today reporting landscape

Powerful Line Item Browser enabling any kind of reporting over all dimensions and high volume in seconds e.g.
search over text field in 20 million records in 3 seconds

Reduction of workarounds and developments

Reduction of dependencies to IT
Closing:

Simplification of closing as e.g. Rollup and BCS file generation on the Fly

Chance for reengineering for further simplification

Proven Performance Improvements based on test results :

Batch processing 233%

Outbound Interface 200% - 300%

Local closing app 300 - 400%

Core closing processes overall 449%

Line Item Report 1750%

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Customer Validation Timeline

Infrastructure
2

Copy Production
to Sandbox

Upgrade Sandbox
DB2 and install Enhancement packs

Migrate to Hana
(loan)box (HE4) and
Install the Add-on

Completed

Completed

Completed

Dec-Mar
6,7
h
2013

Test cycle scope


5

Closing Test Cases for


CuV Feedback to SAP

Sub-ledgers &
reporting

Completed

Completed

Interfaces, local
processes, rollup
on-the-fly prototype
Completed

Compile separate project


approval documentation
Sep - Oct

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16

Mar-Jun
2014

Sep-Oct
2014

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SAP Simple Finance @ SAP


Major Values Realized

Account Receivables

Books Closing

Intercompany Reconciliation

Receivables Management

Fast Close Enablement

Real-time

10% DSO Reduction

28%
40%

Simple receivables
management through
integration of finance &
sales functions

Improvement on
processing time

70%

Reduction in time to
process
reconciliation issues

Reduction in GL
posting corrections

Changes focus from data


preparation to analysis &
interpretation

I/CO reconciliation moved


to a real time process

HANA
No aggregates
Increased performance

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SAP Simple Finance core component:


Financials Add-On for Suite on HANA

SAP Accounting

SAP Cash Management

powered by SAP HANA

powered by SAP HANA

Integrated
Business Planning

Alternative in-memory
functionality for ERP customers

New product for


Group Cash Management

New capabilities and enhanced


integration for ERP and BPC.

Business Suite on HANA

SAP HANA Platform

Aligned

Agile

Predictive

Single Source of Truth

Real time finance processes

Insight and foresight

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SAP Cash Management powered by SAP HANA


SAP Cash Management powered
by SAP HANA

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Supporting the trend of centralization of Treasury


functions

Cash Positions - Group-wise 0-7 days Cash


Positions with integration to mid / long term
Liquidity Forecasting

Cash Flow Analysis, collected from


heterogeneous systems using real-time multidimensional analytics powered by HANA

Central Bank Account Management including


Overdraft Limit Analysis, Bank Risk Analysis
including Signatory management and workflow
capabilities

Business Cockpit for Cash Managers - analyzing


big data to monitor most critical KPIs using a
mobile device

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Home

Cash Manager
Bank Statement
Success Rate
Feb 1st 2014

95.0
Cash Position
Today (M)

Cash Flow
Week-to-date (M)
Inflow

200.2

Outflow

192.5

Liquidity Forecast

Liquidity Structure
Feb 1st 2014 (M)

Whole Company, In 30 Days

2,47M

1,98M

Current Account

26.0
Bank Risk
Feb 1st 2014 (M)

Investment
Debt

1.2
0.78
1.4

Cash Pool Amount


By
Deficit - Feb 1st 2014
(M)

Feb. 1st, 2014

Payment Statistics
Today (M)
Accepted By Bank

15.7

-26.8

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24%

Overdraft Limit
Feb 1st 2014 (M)
200.2

Available

200.2

In Approval

42.5

Consumed

42.5

Rejected by Bank

55.0

Exceeded

55.0

20

SAP Simple Finance core component:


Financials Add-On for Suite on HANA

SAP Accounting

SAP Cash Management

powered by SAP HANA

powered by SAP HANA

Integrated
Business Planning

Alternative in-memory
functionality for ERP customers

New product for


Group Cash Management

New capabilities and enhanced


integration for ERP and BPC.

Business Suite on HANA

SAP HANA Platform

Aligned

Agile

Predictive

Single Source of Truth

Real time finance processes

Insight and foresight

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Dynamic Planning Through Integrated Business Planning

Cost
Planning

Profitability Planning

Strategic Planning
Operational
Planning

Procurement
Planning

Headcount
Planning

Sales
Planning

Price
Planning

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Balance Sheet and Profit & Loss Planning

Production
Planning

Investment
Planning

Marketing
Planning

Revenue
Planning

Public

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Technology Driven Transformation: Financial Planning


Entry of
transactional and
master data

Entry of planning
models and plan
data

Variance analysis
actuals vs. plan

Flexible reporting
and analysis of
actuals

SAP
ERP

SAP
BPC, BW

SAP HANA Platform


Single source of truth
Shared data and
methods

Customer benefits
Seamless integration of planning
into SAP ERP user interface and
workflows
No need for Data Replication
Plans developed in SAP
Business Planning and
Consolidation will be accessible
in SAP ERP for variance analysis
Fully harmonized master data
and data between accounting,
planning, and financial risk
management
End-to-end simulation capabilities

Master data (e.g., cost centers)


Planning model
Actuals, plans, budgets, forecasts
Planning engine

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SAP Simple Finance Your Key for a Technology Driven


Finance Transformation

SAP Accounting

SAP Cash Management

powered by SAP HANA

powered by SAP HANA

Integrated
Business Planning

Alternative in-memory
functionality for ERP customers

New product for


Group Cash Management

New capabilities and enhanced


integration for ERP and BPC.

Business Suite on HANA

SAP HANA Platform

Aligned

Agile

Predictive

Single Source of Truth

Real time finance processes

Insight and foresight

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Adopt Innovation at Your Own Pace

SAP Business Suite


SAP HANA as
side-by-side
scenario
SAP
ERP

Any DB

SAP HANA

SAP Business Suite


powered by
SAP HANA

SAP Business Suite


powered by
SAP HANA

Financials
add-on *

Financials
add-on *

SAP ERP

SAP ERP

SAP HANA

SAP/
Other
ERP

SAP HANA

* optional
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SAP Simple Finance: On Premise and Cloud Deployment

Simple

Flexible

Comprehensive

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Modern Architecture
Subscription Price
Seamless E2E Experience
Rapid Onboarding

Extensible Solution
Integrates into the SAP Portfolio
Clear Service Levels
Scalable Scope Options
Highest Level Security & Privacy

Broad Business Scope


Best in Class Managed Cloud Services
Access to Latest Releases

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Summary
and
Overview
Summary
and
Overview

The Rewards of Real Time Finance

26.1%

56%

76%

Fewer days to
close the books

Fewer treasury
FTEs

Higher operating
margin

22%

3x

Lower audit
costs

44%

Lower finance
cost as % of
revenue

Fewer finance
FTEs

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Source: SAP Benchmarking Services

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Now Its Your Turn

CFO Financial
Leadership
Center

Simple
Finance

SAP Solutions
for Finance
Newsletter

www.sapcfo.com

www.sap.com/simplefinance

www.sap.com/financenewsletter

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Q&A

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Key Take Aways


Technology innovations such as in
memory computing and Cloud will
trigger a new process revolution,
enabling Real Time Finance.
Simple Finance is a next generation set
of solutions to help CFOs accelerate
their global Finance transformation.

It offers simple and unified experience


for easy adoption and a smooth
deployment with on-premise, cloud
and hybrid options.

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Thank You

Contact
information:

Dr David Ormerod
EMEA CoE for Finance
david.ormerod@sap.com http://twitter.com/dormerod