The evolution of the CFO role from controlling and reporting to strategy and support for the exec team now includes responsibility to deliver value for key stakeholders, such as investors. Top finance organizations are capable in multiple components of enterprise performance management (EPM), including strategic planning, execution, cost visibility, driver behavior, forecasting, planning, predictive analytics, ERM, and process productivity improverment (lean and Six Sigma). This workshop covers effective EPM frameworks, optimal organizational structure, talent management, leveraging technology to improve processes, and best practices for process change. Speaker: Birgit Starmanns, Senior Director, Solution Marketing, SAP Presentation delivered at CFO Dimensions 2013 Workshop

1. 1© 2013
Best in Class Finance
Transformation - Best Practices
for the Finance Function
Birgit Starmanns
Senior Director, Finance Solutions, SAP
birgit.starmanns@sap.com

2. 2© 2013
AGENDA
Market Observations
EPM within the Complete Finance Function
Innovations Support Finance Transformation

3. 3© 2013
Market Observations

4. 4© 2013
Internal and External Pressures on Finance
Require More Value-Added Activities
Increasing
globalization
Increased
focus on risk
Volatility in
economic
conditions
Pressure on
margins
Innovative
business models
On-going changes to
regulatory requirements

5. 5© 2013
Top Business Priorities for the CFO
Finance executives prioritize closer collaboration with the business
Over the next 2 years, priorities for finance are:
Control costs and improve profitability
Support and fund growth objectives
Improve finance efficiency/reduce cost of finance
76% of Finance executives believe at least half their time
should be on high-value planning and analytic activities,
though only 55% achieve this
76% want Finance to be more involved working with the
business during the next two years
*Source: Source: CFO.com Research 2013

6. 6© 2013
Technology Supports the Role of the CEO
and the CFO
71% of CEOs believe that technology is the top driver of
organizational change (the #1 factor), surpassing people
skills (69%) and market factors (68%)*
Finance expects their business will demand help with
growth (strategic planning), increased value (cost
management) and managing uncertainty (planning,
budgeting and forecasting) **
The top improvement area for finance executives is
improving capabilities for predictive analytics and
simulations**
*Source: IBM Leading Through Connections – Insights
from the Global Chief Executive Officer Study
**Source: CFO.com Research 2013

7. 7© 2013
Achieve Financial Excellence
Enable Finance Transformation to Better Support Business Needs
ControlPredict Execute
Seamless end-to-end
compliance
Instant insight to action Agility with simplicity

8. 8© 2013
EPM within the
Complete Finance Function

9. 9© 2013
Achieve Financial Excellence with
End-to-End Solutions
Head of Corporate
Reporting
Corporate
Treasurer
VP Finance Head of Finance
Operations
Chief Compliance
Officer
Financial
Planning and
Analysis
Accounting
and Financial
Close
Treasury and
Financial Risk
Management
Collaborative
Financial
Operations
Enterprise Risk
and Compliance
Management
3xLower finance cot as percentage of revenue for top quartile
organizations versus bottom quartile organizations
Source: SAP Performance Benchmarking

10. 10© 2013
Financial Planning and Analysis
76%
Higher operating margin where financial systems provide historical and
forward-looking views into financial and operational performance
Source: SAP Performance Benchmarking
Develop and Translate Strategy
Provides enterprise-wide alignment of corporate and operational goals.
Planning, Budgeting and Forecasting
Helps organizations monitor and achieve critical key performance indicators (KPIs) in a
defined period of time.
Profitability and Cost Management
Manages organizational costs to optimize profitability.
Monitoring and Reporting
Provides analysis to support financial and operational decision making.

11. 11© 2013
Accounting and Financial Close
26.1%Fewer days to close annual books in an integrated G/L
system so that no reconciliations are necessary
Source: SAP Performance Benchmarking
Financial Accounting
Accounting support for multiple financial reporting standards, industries, currencies, and languages.
Entity Close
Strong governance, fast execution, and real-time insight into the entity’s financial close.
Corporate Close
Elimination of bottlenecks for faster financial consolidation and reporting cycles.
Reporting and Disclosure
Publication of regulatory disclosures as well as creation of XBRL filings, for a holistic regulatory
disclosure process.
Financial Close Governance
Trusted view of subsidiary performance and compliance through consistent financial master data.

12. 12© 2013
Treasury and Financial Risk Management
56%
Lower treasury and cash management FTEs where the treasury system
calculates various treasury analyses such as mark to market and value at
risk
Source: Source: SAP Performance Benchmarking
Payments and Bank Communications
Speedy decision making with reduced fees and borrowing costs.
Cash and Liquidity Management
Real-time insight into global cash management.
Debt and Investment Strategies
Strategies that lead to the best borrowing rates and lower investment costs.
Financial Risk Management
Assets and cash flows protected from financial risks.
Commodity Risk Management
Risks associated with commodity price volatility can be identified, qualified, and mitigated.

13. 13© 2013
Collaborative Finance Operations
44%
Fewer finance FTEs in transactional processes with streamlined,
automated, and integrated core finance processes
Source: SAP Performance Benchmarking
Receivables Management
Provides automated, integrated, and collaborative receivables management processes.
Collaborative Invoice to Pay
Automates invoice management and bank communications while improving the archiving
process.
Travel Management
Streamlines the entire trip lifecycle to control costs and enforce corporate and legal compliance.
Shared Services Framework
Supports financial shared services that improve productivity, help ensure compliance, and cut
operational costs.

14. 14© 2013
Enterprise Risk and
Compliance Management
22%
Lower audit cost with the use of automated controls rather than manual
controls
Source: SAP Performance Benchmarking
Enterprise Governance, Risk and Compliance
Reliable insight for preserving and growing business value and compliance management
with minimized cost and effort.
Access Risk Management
Minimized access risk and fraud prevention.
Global Trade Compliance
Heightened control of international trade supply chain.
Sustainability Reporting
Tracking and communicating your sustainability performance, collecting data, and
compiling disclosures quickly and cost-effectively.

15. 15© 2013
Innovations Support Finance
Transformation

16. 16© 2013
Achieve Financial Excellence with
End-to-End Solutions
80%of decision makers think access to the right information at the right time
is critical to their business
SourSource: SAP Performance Benchmarking
Applications In-MemoryMobile Analytics Cloud

17. 17© 2013
Application Innovations for Finance
53%
Of organizations report a large gap between availability of Big Data and
their ability to analyze it
Source: SAP Performance Benchmarking
Commodity Risk Management
Identify, qualify and mitigate risks associated with commodity price volatility.
Fraud Management
Detect fraud earlier and more accurately to reduce financial loss.
Disclosure Management
Publish your financial statements and create XBRL filings for fully compliant regulatory
disclosures.
Electronic Invoicing
Digitize your purchase orders and invoices to maximize discount capture and comply with
contracts and VAT regulations.

18. 18© 2013
How Can Mobility Transform Finance?
Enable the business to
make better decisions in
real time, anytime,
anywhere
Enable Finance executives
to manage their operations
more effectively
Accelerate key process
cycle times and eliminate
approval bottlenecks

19. 19© 2013
Broad Range of Empowerment with Mobile
Basic Alerts Pre-built Apps
Mobilize
Existing Content
Next Generation
Mobile Analytics
Compliance risks
Performance
thresholds
Approvals
Operational alerts
Travel updates
Delivered
out-of-the-box
Available for
download on app
stores
Extend enterprise
data
Leverage user roles
Reports
Explorer data sets
Operational data
Dashboards
Why?
What if?
When?
Take immediate action
Mobilizing “big data”
Flexible, ad-hoc
analysis

20. 20© 2013
Mobile Innovations for Finance
24%
Higher operating margins where enterprise mobility is embedded in all
business processes
Source: SAP Performance Benchmarking
Planning, Budgeting and Forecasting
Review planning and budget information, initiate analysis and corrective action, and
respond to alert and status updates.
Dashboards
Monitor operational finance information with real-time calculations of configurable KPIs
and visual heat maps on iPad devices.
Alerts and Approvals
Provide access to operational alerts and approvals for payments, travel requests and
expenses, and access requests.

21. 21© 2013
How Can Analytics Transform Finance?
Immediate insight into
financial performance and
profitability of the
organization
Quick and complete what-
if and predictive analysis
to determine the financial
impact of decisions
Combine structured and
unstructured information
for a holistic view

22. 22© 2013
Immediate Financial Insight for Better Decisions
– Finance as the Strategic Advisor
Transactional Data
Planning
Information
Market Data
Profitability
Calculations
Corporate
Strategy

23. 23© 2013
Analytics Innovations for Finance
15%
Fewer days sales outstanding where finance leadership has a financial
dashboard that provides a timely view into predefined key metrics
Source: SAP Performance Benchmarking
Consolidated Reporting and Analysis
Obtain holistic performance insight, supported by KPIs and metrics, to measure financial
and operational performance.
Embedded Analytics
Access ready-to-consume analytics while running financial transactions, from accounting
and financial reporting to treasury and credit risk.
Advanced Analyses
Predict and model potential outcomes of strategic decisions to support business growth
initiatives.

24. 24© 2013
How Can Cloud Transform Finance?
Increased usability and
mobility with people-
centric design
Quick, cost-effective
deployment of software-
as-a-service with regular
updates to capabilities
Integration into core
transactional systems to
leverage existing
processes

25. 25© 2013
Flexible Options for Modular Deployment
Traditional on-premise
On-Premise Hybrid & Cloud
Extension
Mixed on-premise & cloud.
Cloud with
Mobile
Enterprise and Partner
Cloud

26. 26© 2013
Cloud Innovations for Finance
85%
Believe the cloud will have a major impact on their organization through
efficiencies, innovation, or competitive differentiation
Source: SAP Performance Benchmarking
Financials
Access easy to consume financial information for all lines of business, with preconfigured
KPIs for personalized insight and role-based analytics.
Travel
Control travel costs, facilitate corporate and legal compliance, and increase process
efficiency with an intuitive user experience and mobility.
Financial Services Network
Leverage a single connection point and standardize integration between financial
institutions and their customers.

27. 27© 2013
How Can In-Memory Transform Finance?
Enable more agile and
more effective Finance
processes
Provide instant insight to
action based on real-time
information
Provide pervasive
modeling, planning, and
simulation capabilities to
better manage uncertainty

28. 28© 2013
Revolutionary Results with In-Memory
Report Speed Improvement
New reporting experience with near
second response time e.g. Treasury
position list and Line Item Browser for
General Ledger, Customer, Vendor
Up to
1350x
Profitability Analysis
Enables to run Profitability Analysis as
online report for different views and cost
hierarchies. Gives decision critical insight
for business planning and reviews.
124x
Incoming Payment Clearing
Advanced search for open items (e.g.
invoices) to be cleared by incoming
payments; all FI customers can improve
the processing time of one of the most
labor intensive processes in FI-AR
71x
Intercompany Reconciliation
Intercompany reconciliation runs real-time and
enables single source of truth in single instance
or central finance system landscape through
direct access to finance data tables instead of
copied data. Reduction of TCO as data is not
replicated anymore.
>200x
Document Journal Report
Stable responsiveness of the application
by various combinations of attribute
selection
978x
Acc. Receivables Dashboard
New app that enables the receivables
manager to assess and respond quickly
and appropriately to changes in customer
payment behavior
No latency
KPIs
Up toUp to

29. 29© 2013
In-Memory Innovations for Finance
68%
Of organizations have limited or no predictive modeling capabilities or
complex optimization techniques for Big Data analysis
Source: SAP Performance Benchmarking
Financial Planning and Forecasting
Develop strategic long-range plans including top down planning with driver-based inputs,
rolling period planning, and dynamic event-based forecasting.
Cash Forecasting
Project liquidity based on the cash position for all operating units, using real-time activity
from purchasing, sales, and other cash-relevant systems.
Working Capital Management
Interactively explore causes of working capital changes and optimize strategies to
improve company liquidity, efficiency, and financial health.
Financial Close Management
Provide real-time insight into the process, quality, and financial KPIs of the financial close.