FP&A Systems and Their Value

FP&A Systems and Their Value

Contents/Agenda Introductions The value of CPM and it s functionality CPM Selection CPM Design CPM Implementation 2

INTRODUCTIONS

Your Tactical Team Josh LaSov Tactical Cloud, LLC VP Consulting Services jlasov@tacticalcloudllc.com C: 410.804.5725 4

THE VALUE OF CPM

Current State of Business Analytics 75% Effort is wasted rekeying and manually rolling up data 90% Spreadsheets contain data and formula errors 64% Annual plans are out of date by the time they are put into effect 3 out of 4 of finance leaders have seen their strategic influence increase over the last three years 6 Note: Statistical research performed and sourced from Adaptive Insights.

Current State of FP&A 7 An immediate and recurring ROI is available for those FP&A departments that can have their staff focus on value-add activities and not basic duties. Note: Statistical research performed and sourced from APQC.

What if we Could? Plan and forecast in a fraction of the time it takes now? Improve forecast accuracy? Reallocate resources from tactics to strategy? Access data you could trust at your fingertips? Analyze to deliver key insights and improve performance? Move from managing the planning process to analyzing the plan? 8

CPM Solution Functionality 1. Integrated Planning Budgeting & forecasting Detailed planning (i.e. sales, personnel, operational, capex) Workflow 2. Automated Reporting Self-service and on-demand internal and external reporting 3. Analytics Solve Business Questions Dashboards and scorecards (desktop and mobile) Drill-down and around into transaction level detail 4. Consolidations/Financial Close 9 Note: CPM software is designed from a usability standpoint for people without an information technology background.

CPM Integrates Single or Disparate Data Sources for Value-add Analytics Dashboards and Reporting Visualization/ Reporting Layer Corporate Performance Management (CPM) w/bi Analytics Layer Payroll Legacy ERP CRM 10 Transaction Layer (Source Systems)

The Value of a Tool over Excel Outcome Reduced time and effort Improved enterprise value Enhanced organization alignment Resource reallocation Increased forecast accuracy Faster results Powerful analytics Improved risk management Benefit CPM has proven to reduce planning, reporting and analysis time by 50-70% (i.e. automated reporting and budgeting) Enhanced profitability and working capital management/optimization, creating an immediate and recurring ROI With the ability to prepare budgets/forecasts and run reports/analytics across the organization, we find increased alignment Reallocate resources from tactics to value-add activities (i.e. strategy) Better resource and execution planning that improves financial results Delivers more timely (if not real-time) and accurate information to enhance and promote objective data-driven decision making Enhanced software tools allow for rapid consolidation of information and more powerful analytical capabilities (i.e. profitability by customer or product) Automated model controls reduced model risk management demands (i.e. excel formula errors or human errors) 11 Our leading clients have stopped performing their planning and analysis functions in excel.

What Research Groups are Saying For every $1 invested in business analytics, organizations realized an average return in excess of $10 Nucleus Research Analytics drive 30% or more better improvement or better decisions Aberdeen Group Companies in the top third of their industry averaged 6% higher profitability than their competitors due to data driven decision making -Harvard Business Review Optimized sales plans increase sales attainment 17% -Aberdeen Group 12

What CPM Users are Saying CPM has become the backbone of our finance organization. The ROI is greater than any other software we have deployed CPM is the most valuable piece of software that any company can put in place Mike Dinsdale, CFO of DocuSign It used to take us months to compile our budget. Now, it takes less than a day with CPM. Pamela Langshaw, Finance Manager of Coca-Cola We are passionate about where CPM is taking us. Our businesses are all decentralized and different from one another. I didn t want to push a solution on our users; instead, they are pulling CPM in themselves. -SAB Miller 13

What is the ROI? 1. Improved decision making (datadriven) and control from greater business visibility 14 What is the opportunity cost or lost from not having this level of information/analytics? 2. Incremental revenue gains through faster and more effective planning and analytics Improved forecast accuracy, deeper analytics on operations, data-driven strategic options planning 3. Unprecedented productivity gains and cost savings through increased automation 50-70% time reduction on planning, reporting and analysis activities Value from CPM Business Visibility Revenue Gains Cost Savings Deeper Insights Time to Information Datadriven Strategic Options Planning Reduced Revenue Leakage Better Insight into Spending FTE Time Savings

2014 Gartner User Survey Analysis 15

2014 Gartner User Survey Analysis Implementing Adaptive is painless and with some training we will help your team not rely on 3 rd party support 16

CPM DESIGN & IMPLEMENTATION

FP&A Best Practice Maturity Continuum Basic Developing Leading Strategic Planning No formal planning Subjective decision making Formal but disconnected planning Limited data used in decision making Integrated planning Objective data-driven decision making Financial and operational resources matched to capital required to execute strategic initiatives Budgeting and Forecasting Annual budget preparation Budget and forecast preparation Moderate understanding of key drivers Rolling forecasts implemented Thorough understanding of key drivers with a focus on forecast accuracy and predictability Management Reporting and Analysis Reports indicate if high-level targets were met Reporting is a manual process Standard, recurring management reports with detailed analysis Ability to drill-down and around on results, as needed Reporting drives re-forecasting decisions Real-time results Dashboards/scorecards with KPIs (visualization) Planning Accuracy Material variances in planned to actual performance explained Reasonably accurate planning Predictability in planning, resulting in increased target accuracy Risk Management Limited understanding of key business risks Identification of select upside and downside risks Identification of key upside and downside risks with pro-active planning based on likelihood and impact of events Organization Structure Decentralized business planning functions Score keeper role Centralized business planning Limited strategic influence Centralized function providing decision support Tightly integrated and aligned with other business units 18 Technology Disparate systems and no one single data truth Integrated and automated technology (i.e. CPM, BI) Full utilization of CPM/BI software Common information platform On-demand, self-service culture

Tactical Cloud s Proven Implementation Methodology Plan Deliver Close Initiate Analyze Design Configure Validate Deploy Optimize Transition and planning of the implementation. Ensure expectations Well aligned. Requirements, architecture and conceptual discovery are complete. Design of all solution elements are finalized. Configuration, development and unit testing are completed. Business and solution readiness are achieved. Go-Live - operational use of the solution is realized. Ongoing functional state is achieved. Manage Scope Schedule Budget Change Quality Communication Risk Phase I Design, Phase II Prototype, Phase III - Finish

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