Using analytics tools to collect massive amounts of big data from your Procurement or Finance department is easy. However, extracting the meaning of that data, and using it to drive real value to your organization might be a real challenge.
In this session, Genaro will share SAP´s view on how the power of collective insight can be unleashed using leading edge business intelligence, agile visualizations and advance predictive analytics to all users, using any device.
16. SAP Spend Performance Management
Gain full spend visibility
– Automated data capture from SAP and
non-SAP software
– Data accuracy for faster insights
Increase spend under management
– Set up performance targets
– Collaborate effectively to act on insights
Rapidly identify savings opportunities
– Find and act on savings potential
– Proactively monitor contract compliance
Reduce supplier risk
– Pinpoint supplier risks and supply concentration
– Find and act on qualified alternate suppliers
SAP
Global
Ledger Purchasing
cards
Travel and
expense
SAP NetWeaver
Business
Warehouse
SAP
ERP
SAP BusinessObjects
Data Enrichment and Classification OnDemand
* Note: SAP BusinessObjects Data Enrichment and Classification OnDemand solution
separately priced.
Maximize savings – minimize supplier risk
16
19. Driving Business Results through Financial Excellence
From the CFO to a Broad Set of Finance Teams
VP of
Finance
Head of
Finance
Operations
Chief
Compliance
Officer
Corporate
Treasurer
Head of
Corporate
Reporting
FINANCIAL
PLANNING AND
ANALYSIS
• Develop and
Translate
Strategy
• Planning,
Budgeting and
Forecasting
• Profitability and
Cost
Management
• Monitoring and
Reporting
ACCOUNTING AND
FINANCIAL CLOSE
• Accounting
• Entity Close
• Corporate Close
• Reporting and
Disclosure
• Financial Close
Governance
TREASURY AND
FINANCIAL RISK
MANAGEMENT
• Payments and
Bank
Communications
• Cash and
Liquidity
Management
• Debt and
Investment
Management
• Financial Risk
Management
• Commodity Risk
Management
COLLABORATIVE
FINANCE
OPERATIONS
• Receivables
Management
• Collaborative
Invoice to Pay
• Travel
Management
• Financial Shared
Services
ENTERPRISE RISK
AND COMPLIANCE
MANAGEMENT
• Enterprise Risk
Management
• Controls and
Compliance
Management
• Access
Governance
• International
Trade
Management
• Fraud
Management
• Audit
Management
20. Receivables Management - Process Overview
Evaluate
customer
credit and
book sales
Issue bills
and
invoices
Manage
disputes
Manage
collections
Service
customers
Define corporate
customer credit
policy
Create sales order
Real-time automatic
credit worthiness
check of sales order
Evaluate credit
blocked sales
orders (exception
handling)
Evaluate customer
credit risk exposure
across all
geographies
1 2 3 4
Produce aging
reports, identify
overdue accounts,
and calculate DSO
Execute collection
activities
Ensure timely
recording of
payments and
management of past-
due accounts
Automatic
processing of
electronic bank
statements
Automatic check
processing
Automatic creation of
disputes for invoice
underpayments
Automatic, strategy
based prioritization
of accounts for
collections
Monitoring success,
of collection activities
Timely processing
and resolution of
disputes: workflow
based, auditable,
automated
Automatic allocation
of collection worklists
to processors /
teams
5
Create bills and
invoices
Present bills and
invoices
electronically
Enable online
inquiry
Receive electronic
payments
Process customer
inquiries regarding
invoices and
payment status
21. Receivables Management
Example for a Business Case
We Can Prove:
SAP lowers DSO…
Why…
Collections Management Professional support for collections specialists – more calls means more collections
Dispute Management Automated workflow with escalation makes sure no dispute gets lost in the process – disputes closed faster
Structured analysis capabilities means dispute causes can be identified and eliminated – fewer disputes
Example: 500M € company 1 day DSO = 500M / 365 = 1.4M € per day
Savings (cost saved or financial earn) = 1.4M * 5% interest = 40K €
Revenue 1 DSO 5% Interest
Rate
5 DSO 5% Interest
Rate
10 DSO 5% Interest
Rate
€ 50,000,000 € 138,889 € 6,944 € 694,444 € 34,722 € 1,388,889 € 69,444
€100,000,000 € 277,778 € 13,889 € 1,388,889 € 69,444 € 2,777,778 € 138,889
€500,000,000 € 1,388,889 € 69,444 € 6,944,444 € 347,222 € 13,888,889 € 694,444
€1,000,000,000 € 2,777,778 € 138,889 € 13,888,889 € 694,444 € 27,777,778 € 1,388,889
€5,000,000,000 € 13,888,889 € 694,444 € 69,444,444 € 3,472,222 € 138,888,889 € 6,944,444
24. Get More Visibility
on Sources of Cash
Ensure liquidity and
reduce risks
Increase efficiency and
optimize Working Capital
Analyzing global bank
balances and cash positions
based on data from SAP and
non-SAP systems Create more
accurate mid-and long-term
cash forecasts via real time
analysis
Leveraging Smart Business to
gain real time information in
different places to get full
picture
Monitor KPIs and alerts to
mitigate risks and trigger
actions
Wisely use money, invest
surplus part to get return, and
reduce financial cost
Supporting group treasury
functions to ensure liquidity and
optimize financing activities.
Smart Cash Management, powered by
HANA
26. Home
Cash Manager
Bank Statement
Success Rate
Feb 1st 2014
95.0%
Cash Pool Amount By
Deficit - Feb 1st 2014
(M€)
-26.8
Bank Risk
Feb 1st 2014 (M€)
15.7
Cash Position
Today (M€)
26.0
Liquidity Structure
Feb 1st 2014 (M€)
Current Account 1.2
Investment 0.78
Debt 1.4
Cash Flow
Week-to-date (M€)
Inflow 200.2
Outflow 192.5
Liquidity Forecast
Whole Company, In 30 Days
1,98M
2,47M
Feb. 1st, 2014 24%
Payment Statistics
Today (M€)
Accepted By Bank 200.2
In Approval 42.5
Rejected by Bank 55.0
Overdraft Limit
Feb 1st 2014 (M€)
Available 200.2
Consumed 42.5
Exceeded 55.0
27. Cash Position
Cash Position by Bank & Currency
26,046,372.00EUR
Filtered by Region (Europe), by Country (France), by Currency (All), by Bank (All), by Company (0001)
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000
Cash Position
HSBC
France
RBS France
CITI Bank
France
Deutsche
Bank
France
BNP
Paribas
France
Bank of
France
Laikiash
EUR
USD
GBP
EUR
USD
EUR
USD
EUR
USD
EUR
USD
EUR
USD
EUR
Value
Drill Down by Currency
EUR 1,246,372.00
Drill Down by Region
Drill Down by Currency & Country
Drill Down by Bank
Drill Down by Bank & Currency
Navigate to Bank Account
29. Customer Pain Points Addressed by GRC
in Procurement and Finance
SAP GRC
Errors
Cost of
-Risk Mgmt.
-Internal
Controls,Internal
Audit,…
Operating
Cost/
Performance
Improvements
FraudAbuse, Waste Compliance
Risk-Adjusted
Management
GRC Solutions SAP Risk Mgmt SAP Process
Control
SAP Access
Control
SAP Audit MgmtSAP Fraud Mgmt
Business
Process
Efficiency:
e.g. monitor
key data
for
-DSO,
-DPO,
-DII, …
Money,
Time and
Resources
for these
GRC
business
process
Unintentional
Activities
e.g.
-Sales:
Close Foreign
Currency Deal
-Treasury:
Forget Hedging
Transaction
Waste
e.g.
-Travel Policy
Fraud
e.g.
-Lack of Segregation of
Duties
-(One-Time) Vendor
Fraud
-Conflict of Interest
Anticipate and Influence
events before they happen
e.g. Don’t report a risk at the end of
FY when it is certain to happen, but
at the beginning with
mitigation action and cost
e.g. allocate resources, budget
and time to the highest risks
e.g. risk-based approach
to Internal Audit
End-to-End
Risk and Control
System
Continuous
Monitoring
Proactive
57. Just get started!
Experience SAP Lumira & Fraud
Management
1
Try it with your own data!
Personal Edition sap.com/trylumira
+ free trial
– search “sap fraud management”
2
… in the cloud
https://cloud.saplumira.com
http://www.sap.com/pc/tech/in-memory-computing-
hana/software/fraud-management/index.html
3
Anexample: Theworkflowwiththeletterevery AE needstosign at theend of each Q, confirmingthat he hasn´tsignedanysideletterwithanycustomerisanexample of automatic control associatedcorporategovernance. Anotherexampleisthe GAF process. Anautomated control tomitigatetherisksassociated in a sales process.
Analytic solutions from SAP are uniquely positioned to enable collective insight. We do this by delivering an enterprise business intelligence solution (SAP BusinessObjects BI 4.1) that gives users the power to engage with all their data, on any device, across any platform, in real-time. Agile visualizations (SAP Lumira) intuitively allow users to explore and present data, both big and small, drive real-time understanding of the business and by applying advanced predictive analytics (SAP Predictive Analysis) to more information and processes across the enterprise we can confidently anticipate what comes next and guide better, more profitable, forward looking decision making. All this is delivered on a modern, open real-time data platform powered by SAP HANA. Its Big Data ready, supports multiple deployment options, drives collaboration and is fully integrated with SAP’s mobile platform, securing both the data and the device.The power of collective insight however can only truly be unleashed by delivering all of these. Point solutions that do not offer the same breadth of market proven capabilities, combined with rich industry and process expertise and that only address a fraction of the data available by definition are unable to drive value across all three dimension and therefore will only lead to more dark data, more silos, more shadow IT teams and will inhibit innovation. SAP is focused on analytics, and will drive innovation and differentiation in each of these 3 areas. Only SAP can deliver enterprise business intelligence AND agile visualizations AND advanced predictive analytics.
WhathappenedtoAnalytics
In order to deliver collective insight, analytics as we know it needs to change and evolve. SAP, via BusinessObjects started this journey for many thousands of customers around the world when we made BI a reality over 20 years ago. But analytics has and needs to continue to move from asking what happened, to asking why it happened, what will happen next and ultimately what is the best that can happen. As analytics matures along this curve it’s a journey, but it’s a journey that does not leave the other behind. Its it the sum of all the parts that ultimately drives collective insight. You cannot just look at predictive modelling, without great visualizations and the underlying semantics that drive faultless data governance. Its this need for analytics to be end to end that truly holds the key to unlocking dark data and driving collective insight. Ease of adoption and rapid implementation at any point on the maturity curve are a prerequisite alongside the to ensure users work with solutions that are business focused and enable storytelling.By doing this you can mature your use of analytics, improve user engagement and drive collective insight.
The power of collective insight can be articulated with three core characteristics. The ability to engage. The ability to visualize. And the ability to Predict. We’ll describe these in more detail shortly but if you can drive collective insight in your organization built around these three concepts then the possibilities are endless.For example:Imagine if you could predict demand or supply across your entire supply chain immediately… What benefits would that bring you?What about providing exactly the right offers and services to every customer as they needed them? Would that help you serve them better?How about being able to understand what your customers and potential customers are saying about you right now…How could you use that information?Or finally, would you like the ability to predict market trends and customer need and use this to innovation and bring new products and services to market quicker?This is the opportunity that right now, by not enabling collective insight we are missing out on.At SAP we follow a concept of design thinking which is generally considered to be the ability to combine empathy for the context of a problem, creativity in the generation of insights and solutions, and rationality to analyze and fit solutions to the context. Design thinking can help you identify your possibilities and we’ll come back to this at the end of the presentation.In the meantime lets look at each area in turn, example the benefits of each and how our customers are already benefiting from it.
Analytic solutions from SAP are uniquely positioned to enable collective insight. We do this by delivering an enterprise business intelligence solution (SAP BusinessObjects BI 4.1) that gives users the power to engage with all their data, on any device, across any platform, in real-time. Agile visualizations (SAP Lumira) intuitively allow users to explore and present data, both big and small, drive real-time understanding of the business and by applying advanced predictive analytics (SAP Predictive Analysis) to more information and processes across the enterprise we can confidently anticipate what comes next and guide better, more profitable, forward looking decision making. All this is delivered on a modern, open real-time data platform powered by SAP HANA. Its Big Data ready, supports multiple deployment options, drives collaboration and is fully integrated with SAP’s mobile platform, securing both the data and the device.The power of collective insight however can only truly be unleashed by delivering all of these. Point solutions that do not offer the same breadth of market proven capabilities, combined with rich industry and process expertise and that only address a fraction of the data available by definition are unable to drive value across all three dimension and therefore will only lead to more dark data, more silos, more shadow IT teams and will inhibit innovation. SAP is focused on analytics, and will drive innovation and differentiation in each of these 3 areas. Only SAP can deliver enterprise business intelligence AND agile visualizations AND advanced predictive analytics.
Financial Planning and AnalysisIncrease organizational agility, control costs, and align execution on strategy.Accounting and Financial CloseExecute a fast, accurate, compliant close that reduces money and effort.Treasury and Financial Risk ManagementIncrease insight and control for managing cash, liquidity, and risk.Collaborative Finance OperationsImprove finance efficiency through increased automation.Enterprise Risk and Compliance ManagementImprove finance efficiency through increased automation.
An example of tangible benefits of this solution is DSO (Day Sales Outstanding) that is the number of days needed to collect the payments.A dedicated system such as SAP Receivables Management can for example alert on past-due accounts, track and manage with a workflow all pending disputes. This can help reducing DSO.In this slide we can see the impact of reduction of DSO depending on revenue, reduced DSO days and banking interest rate: we understand now the value that this solution can provide and why the driver is the Revenue!
KPI: Payment Approval, to be approved, errorComplete Filter
Analytic solutions from SAP are uniquely positioned to enable collective insight. We do this by delivering an enterprise business intelligence solution (SAP BusinessObjects BI 4.1) that gives users the power to engage with all their data, on any device, across any platform, in real-time. Agile visualizations (SAP Lumira) intuitively allow users to explore and present data, both big and small, drive real-time understanding of the business and by applying advanced predictive analytics (SAP Predictive Analysis) to more information and processes across the enterprise we can confidently anticipate what comes next and guide better, more profitable, forward looking decision making. All this is delivered on a modern, open real-time data platform powered by SAP HANA. Its Big Data ready, supports multiple deployment options, drives collaboration and is fully integrated with SAP’s mobile platform, securing both the data and the device.The power of collective insight however can only truly be unleashed by delivering all of these. Point solutions that do not offer the same breadth of market proven capabilities, combined with rich industry and process expertise and that only address a fraction of the data available by definition are unable to drive value across all three dimension and therefore will only lead to more dark data, more silos, more shadow IT teams and will inhibit innovation. SAP is focused on analytics, and will drive innovation and differentiation in each of these 3 areas. Only SAP can deliver enterprise business intelligence AND agile visualizations AND advanced predictive analytics.
Billing Schemes via-Shell Company-Non-Accomplice Vendor-Personal PurchasesA shell company is an entity that has no active business and usually exists only inname as a vehicle for another company’s business operations.2 In essence, shells arecorporations that exist mainly on paper, have no physical presence, employ no one andproduce nothing. They are frequently used to shield identities and/or to hide money. Ashell company can often be identified by a number of red flag indicators including:• No phone number• No e-mail address• No physical address• No company logo• No contact person• No federal identification numberNon-Accomplice VendorPerp overbills company on behalf of existing vendorVendor not involved in the schemeTwo common techniques: Pay-and-returnCounterfeit invoicesPersonal Purchases with Company FundsPerp uses company checks to buy personal items. Common examples:Home supplies/constructionSide businessPay medical, utility, credit card bills, etc.Merchandise may be returned for cash