How To Change Finance

Transcription

1 11:40 AM 12:30 PM The Future of Finance: Unified Accounting, Business Intelligence and Big Data Mark Nittler, Vice President- Enterprise Strategy

2 Office of the CFO Analytics & Decision Support Governance & Control Transactions 2011 Aspiration WORKDAY CONFIDENTIAL

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5 The Professional Back Office Analytics & Decision Support Governance & Control Transactions Aspiration

6 4 OUT OF 5 Finance executives think their organizations are burdened with too many low-level, manual tasks. 1 NEARLY HALF OF CEOs Say they do not have the right metrics, information, and tools needed for sound business decisions. 2 WHAT DO CFOs REALLY THINK OF THEIR CURRENT SYSTEMS? Inflexibility interferes most with finance s role. 1 Too many business decisions are based on inaccurate or incomplete data. 5 It takes too long to adapt systems to business changes. 1 Improving overall productivity is the most important driver for analytics and unified data. 5 43% of financial management systems running today are more than 10 years old. 1 WORKDAY

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8 Stuff Happens

9 Can t get There From Here Traditional ERP Heavy Complex Expensive Rigid Irrelevant Light Market Ideal Simple Economical Agile Relevant

10 The significant problems we face today cannot be solved at the same level of thinking we were at when we created them.

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12 A New Level of Thinking New Delivery New Technology New Approach 12

13 The ERP Financials Business Model

14 Traditional Business Software Architecture Dashboards, Scorecards & Spreadsheets Summary Lines Accounts Financial & Statutory Reporting Journals AP Journal Entry AR Journal Entry Pay Journal Entry WORKDAY CONFIDENTIAL

15 It Can t be Done Relational Model Analytic Model Transactions Analytics Transactions Analytics

16 Traditional Business Software Architecture Business Intelligence System Dashboards, Scorecards & Spreadsheets Data Warehouse Other Systems HR Summary Lines Accounts Financial & Statutory Reporting Data Mart Journals Segregation of Duties Workflow AP Journal Entry AR Journal Entry Pay Journal Entry Security WORKDAY CONFIDENTIAL

17 70-80% of data in an organization is unstructured Unstructured data is expected to grow by 800% over the next 5 years

18 Business Intelligence System Dashboards, Scorecards & Spreadsheets Data Warehouse Other Systems HR Summary Lines Accounts Financial & Statutory Reporting Data Mart Journals Segregation of Duties Workflow AP Journal Entry AR Journal Entry Pay Journal Entry Security

19 Business Intelligence System Dashboards, Scorecards & Spreadsheets Data Warehouse Other Systems HR Summary Lines Accounts Financial & Statutory Reporting Data Mart Journals Segregation of Duties Workflow AP Journal Entry AR Journal Entry Pay Journal Entry Security

20 A Tale of Two Divides TRANSACTIONS ANALYTICS ACTIONS

21 A New Possibility TRANSACTIONS ANALYTICS ACTIONS

22 Office of the CFO Reporting & Analysis Transactions & Accounting Unified Finance Control & Governance Accounting Analytics Governance

23 New Assumptions Business is about commerce The whole business wants good information Assume you have a computer

24 The Application Challenge Traditional Systems are designed around Administration and Accounting operational information is derived Focusing on admin, debits and credits, by design, omits important data about economic events Operational View of a Sale Financial Accounting View of a Sale Salesperson Merchandise Customer Places Order Customer Packing Material Ship Merchandise Carrier Package Cash Receive Payment Shipping Clerk Receivables Clerk

25 REAL Business - Not Accounting ERP Dr. Cr. Journal Entry Chart of Accounts General Ledger Things Labor Services Rights Purchase Sale People Entities Model the real business: Resources People Events Keep Information intact & in-context Provide views of business from any perspective

26 Business Traditional First Business Architecture Software Architecture Financial & Statutory Reporting Business Intelligence System Dashboards, Scorecards & Spreadsheets Dashboards, Scorecards & Spreadsheets Data Warehouse Other Systems HR Accounting Engine Data Mart Workflow Workflow Segregation of Duties Security AP Journal Entry Summary Lines Accounts Business Data Journals AR Buy Journal Sell Receive Journal Pay Entry Pay Entry Financial & Statutory Reporting Segregation of Duties Security

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28 8 OUT OF 10 are pursuing major financial management transformation programs. 3 TECHNOLOGY PRIORITIES 63% 67% 69% Consolidate their enterprise applications. 4 Update/modernize their legacy applications. 4 Increase the use of business intelligence, analytics, decision-support tools. 4 WORKDAY CONFIDENTIAL

29 WHY ARE BEST-IN-CLASS ORGANIZTIONS 2.5 TIMES MORE LIKELY TO USE CLOUD-BASED FINANCIAL MANAGEMENT SYSTEMS THAN ALL OTHERS? 5 By 2015, over 60% of organizations will be adopting cloud-based finance solutions. 6 36% 18% 47% 17% 15% WORKDAY CONFIDENTIAL SOURCES: 1 CFOs on Managing Finance Technology I 2 Deloitte CFO Signals I 3 APQC: True Measure of Finance Function Excellence-Deliver Value Efficiently I 4 Forrester Research, INC., Increase Business Flexibility by Embracing Future Trends, May 2012 Critical or High Priority, according to surveyed executives or business decision-makers I 5 Aberdeen: Future of Strategic Business Management- Unifying Finance and HR I 6 Saugatuck Technology, INC.,: The Third Wave-The Emergent, Impactful Era of Cloud Apps

30 Software as a Service: Economy, Speed, Simplicity Legacy Stack Customer Owned & Operated Cloud Stack Supplier Responsibility Applications Middleware Database Operating System Virtual Machine Servers Storage

31 Data Architecture Business (vs Data) Model Object Model Storage & Speed In-Memory Data

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33 Big Variety Simple Economics

34 Connect to Any Data Source

35 Connect to Public Data Sources Leverage public data sets GOVERNMENT DATA DATA MARKETS INDUSTRY BENCHMARKS Census Unemployment CPI Infochimps Azure Marketplace Compensation Attrition/Retention

36 The Big Data Breakthrough From: To: Slow Expensive Inflexible Extract Transform Load Data Warehouse BI Tools Raw Load Cloud Spreadsheet Explorer Fast Economical Self Service

37 Example: Pay-for-Performance Financial/ERP Data Big Data Analytics Policy sales Policy claims External Data

38 Future Finance Analytics Analytics Control Control Control Transactions Transactions Transactions Aspiration WORKDAY CONFIDENTIAL

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40 11:40 AM 12:30 PM The Future of Finance: Unified Accounting, Business Intelligence and Big Data Mark Nittler, Vice President- Enterprise Strategy