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Digital Finance

Alain Brissaud, Head of Business Development Finance, SAP France

Paris, le 9 novembre 2017 séminaire ASPROM


Digital Finance
What will it mean for the CFO?
The world is changing quickly
Digital technologies are disrupting business models in EVERY industry

Digital Technologies are Here to Stay Digital business models are disruptive.
The rules have changed.

Mobile Hyper In-Memory Asian Paints is not just selling paints, they
sell outcomes – painted buildings and rooms
Connectivity Computing

Tesla is not just a car manufacturer, it has


established itself to a major player in the
Utilities and high-tech battery business
Internet Big Data Machine
of Things Learning AngloGold Ashanti is not just another
mining company, it is changing is approach to
mining efficiency with precision-mining

John Deere is not just an machinery


manufacturer, they transform them self to a
Social Cloud full service provider for the farmer

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New Business Models create Opportunities and Challenges
Finance transformation will help drive innovation and manage volatility

Managing increased Proliferation of


market volatility new business models

Currency exchange risk Blurring industry lines

Consumer preferences Mergers and acquisitions

Tax changes Disruptive competitors

Complex regulatory requirements Digitally enabled business models

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Digital Technology is transforming how Business gets done
The future of the finance function will be determined by new technologies

Predictive
and cognitive In memory

Networks

User
experience
Transforming
finance
Blockchain organizations

Cloud Robotics and


machine learning

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Digital finance : from Process driven to Data driven

Real-time, continuous
processes with no
manual processes or
media breaks

Full transparency
of all information
accessible to
everyone in the
moment

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Public 6
HANA overview

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Re-think Data Management for Real-time Business
Need to eliminate redundant data copies, materialization and models

A Common Database Approach for OLTP and


OLAP Using an In-Memory Columnar Database
Hasso Plattner

Separated Transactions + Analysis + Acceleration One atomic copy of data for Transactions +
processes Analysis, All in Memory

SAP HANA
ETL ETL Cache (DRAM)

VS
Transact Analyze Accelerate

 3 copies of data in different data models  Eliminate unnecessary complexity and latency
 Inherent data latency  Less hardware to manage
 Poor innovation leading to wastage  Accelerate through innovation and simplification

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imagine
… responding in real-time to changes in demand
for higher market responsiveness
… empowering employees with real-time
business insights for higher engagement
…connecting to machines and devices in real-
time for higher customer service
… delivering personalized offers in real-time for
higher customer experience
©©
2016 SAP
2013 SE or
SAP AG.anAll
SAP affiliate
rights company. All rights reserved.
reserved. Public 99
HANA = …

In-memory Database

+
+ Application Platform

Column and
row store

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Avoid bottlenecks
Rethink the three-tiers paradigm

Today With HANA


Calculations
Applicative layer

Database
Calculations

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SAP HANA Platform
Introducing SAP HANA Dynamic Tiering

Priority and Performance


Data Volume and Price
HANA column store
hot • In DB
• In memory
• No restrictions, all features available
HANA Non-Active Data Concept / Disk

warm
store of dynamic tiering
• In DB
• On disk
• No restrictions, all features available

Cold
Near-line Storage
• External to DB
(NLS) •

Near-line Storage
Read access, no updates
Archive
Traditional Archive
Archive
• External to DB
• Archive storage
• No read access or updates

© 2016 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any Public
time. 12
S/4 HANA
New ERP Suite for ultimate simplification
We’ve come a long way together

✓ Integration ✓ 45 years of innovation across industries


✓ Standardization ✓ 300,000+ customers
✓ Globalization ✓ 74% of the world’s transaction revenue touches an SAP system
✓ Trust ✓ Always providing multiple ways of innovation adoption

SAP R/2 SAP R/3 SAP ERP SAP Hana Suite on HANA
TX/ Apps on Hana Connectivity
Mainframe Client/Server www / mysap.com In Memory The Digital Core (IoT, ML,BC )

1972 1992 2004 2011 2013 2015 2017

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Data Footprint

Compression Column Any attribute as OLAP + OLTP


store an index together

Traditional DB on HANA

593 GB

118.6 GB

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Data Footprint
SAP Finance with aggregates and indices

Finance
Document Totals Indices
Header Item
GLT0 KNC1 KNC3 BSIS BSAS BSIK
GL, AR, AP BKPF
BKPF BSEG
BSEG
LFC1 LFC3 BSID BSAD BSAK

FAGLF FAGL FAGL


New GL FAGLF
ACDOCA LEXT* BSIS BSAS
LEXA*

CO COBK FAAT_DOC_IT
COEP COSS COSP

Traditional DB on HANA AA ANEK FAAT_YODA


ANEP ANEA ANLC ANLP

FAAT_PLAN
ML MLHD* MLIT*
_VALUES MLCD* MLCR* BSIM* CKMI1*

593 GB

118.6 GB

42.4 GB

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Data Footprint

Traditional DB on HANA S/4HANA Actual

593 GB

118.6 GB

42.4 GB
8.4 GB

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Simplifying database & table structures to prepare for scale

SALES FINANCE
Document Document Totals Indices
Header Item Header Item

Sales Order VBAK VBAP VAKPA VAPMA GL, AR, AP BKPF BSEG GLT0 KNC1 KNC3 BSIS BSAS BSIK

Delivery LIKP KIPS


LIPS VLKPA LKPMA LFC1 LFC3 BSID BSAD BSAK

FAGLF FAGLF FAGL FAGL


Billing Document VBRK VBRP VRKPA VRPMA New GL ACDOCA
LEXA* LEXT* BSIS BSAS
FAAT_
Status Info VBUK VBUP CO COBK COEP
DOC_IT COSS COSP

PRCD_
FAAT_
Conditions KONV
Elements VBOX AA ANEK ANEP
YODA ANEA ANLC ANLP
(new)
FAAT_
VBFA
Document Flow VBFA
(Simplified) ML MLHD… MLIT…
PLAN_ MLCD… MCLR… BSIM* CKMI1*
VALUES

MATERIAL VALUES
SAP Business Suite MATERIAL QUANTITIES
Valuation in MM or Valuation ML Aggregates
Aggregates Stock Aggregates History
Used for
Hybrid: Master Data Master ML
History Material Document
with Valuated Stock Data only Valuation MSSA MSSL MSSQ MSSAH MSTBH MSSQH

MATDOC_
MBEW MBEWH
MBEW CKMLCR MLPP CKMLPP MLDOC
CKMLPPWIP MKPF
MATDOC MSEG
EXTRACT MSTE MSTQ MSTB MSTEH MSTQH

EBEW EBEWH
EBEW CKMLPP MLCR CKMLCR CKMLKEPH
MLDOCCCS Inventory Movements Hybrid: Master
Used Data with
for Master DataStock
only Aggregates MARCH MARDH MKOLH

QBEW QBEWH
QBEW MLHD MLCRF MLCD CKMLMV004 MCHB MARC MARD MSKU MSLBH MCHBH MSKUH

OBEW OBEWH
OBEW MLIT MLKEPH CKLMMV004 MSKA MKOL MSPR MSLB MSKAH MSKAH

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SAP’S DATA FOUNDATION

HANA Vora

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THE SAP DIGITAL CORE

Applications

S/4HANA

Suite
HANA Vora
Platform

any DB Hadoop

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LA PLATEFORME TECHNOLOGIQUE SAP DE
TRANSFORMATION DIGITALE
IoT

Applications SAP Extensions


Leonardo
Applications

(Micro-) Services
SAP
S/4HANA SAP Cloud Platform
Identity Management

Suite
SAP HANA SAP Vora
Platform

any DB Hadoop
© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 22
LA PLATEFORME TECHNOLOGIQUE SAP DE TRANSFORMATION
DIGITALE

IoT

Applications SAP Extensions Icon

Leonardo
Applications

(Micro-) Services

SAP SAP Analytics


S/4HANA SAP Cloud Platform Cloud
Identity Management
Plan | Discover
Visualize | Predict
Suite Analytics

SAP HANA SAP Vora


Platform

anyAll
© 2016 SAP SE or an SAP affiliate company. DBrights reserved. Hadoop Public 23
La plateforme SAP pour l’Entreprise digitale dans le Cloud

CEC

Business Network

IoT

Applications SAP Extensions Icon

Leonardo
Applications

(Micro-) Services

SAP SAP Analytics


S/4HANA SAP Cloud Platform Cloud
Identity Management
Plan | Discover
Visualize | Predict
Suite Analytics
SAP HANA SAP Vora
Platform

any DB Hadoop
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+3,500 Startups on board with SAP HANA

nexvisionix

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SAP S/4HANA Finance
Key architectural elements
The evolution of SAP S/4HANA with full speed ahead

CRM SCM SRM CRM SCM SRM CRM SCM SRM CRM SCM

API Add-Ons API API


Add-Ons Add-Ons Add-Ons

ERP SAP S/4HANA 1709


SAP S/4HANA 1511 SAP S/4HANA 1610
TM SER 1 FCC CPM
SAP S/4HANA EWM PPDS aATP
Finance 1503 EWM PPDS aATP PPM

U-GL U-GL BP ML U-GL BP ML


U-GL BP ML cReq.
HANA LIVE CDS views
HANA HANA CDS views
HANA CDS views
HANA

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SAP S/4HANA Finance
The foundation for enabling finance transformation

Intuitive user experience Instant insight Flexible and nondisruptive


Consistent across devices In-memory enabled Easier to deploy and extend

Continuous accounting
and controls monitoring

End-to-end Instant
process financial
automation analysis

SAP HANA

Real-time treasury Real-time and


and cash predictive
management planning

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Consumer-grade User Experience
Compelling user interface – easy-to-use from macro to detailed view

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Real-time Line Manager Insights

Holistically address operational and SAP Digital Boardroom SAP Analytics Cloud
▪ Total transparency ▪ Business intelligence
strategic analytical needs ▪ Instant data-driven insights ▪ Planning, forecasting, and simulation
▪ Simplified steering meetings ▪ Predictive
Support predefined reports and
visualizations as well as self-service
analytics
Deliver real-time planning, forecasting,
simulation, and prediction capabilities
Eliminate inconsistencies with one
accurate, up-to-date, single version of
the truth
Meet the needs of varying finance
organizations with comprehensive Analytics within SAP applications SAP HANA analytical platform
▪ SAP S/4HANA embedded analytics ▪ Mixed architecture
selection of analytics and reporting ▪ SAP Fiori integration ▪ Predictive analytics engine
▪ Predefined reports and visualizations ▪ Data quality
▪ Deeper insights into profitability ▪ Data governance

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 30


SAP S/4HANA Finance
The foundation for enabling finance transformation

Intuitive user experience Instant insight Flexible and nondisruptive


Consistent across devices In-memory enabled Easier to deploy and extend

Continuous accounting
and controls monitoring

End-to-end Instant
process financial
automation analysis

SAP HANA

Real-time treasury Real-time and


and cash predictive
management planning

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 31


The Path forward
Reimagine and transform finance

Strategy Business Risk and Efficiency


Performance Compliance

Easily architect Deliver instant insight Provide continuous Approach


new business into the hands of insight into risks, automated
models, based on the business controls, and “lights out”
new usages performance finance process

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SAP Empowers the CFO and the Finance Teams

Financial Accounting Treasury and Finance Enterprise Risk


Planning and and Financial Financial Risk Operations and Compliance
Analysis Close Management Management

Developing and Translating Strategy Accounting Payments and Bank Communications Receivables Management Enterprise Risk Management

Collaborative
Planning, Budgeting, and Forecasting Entity Close Cash and Liquidity Management Controls and Compliance Management
Invoice-to-Pay

Profitability and Cost Management Corporate Close Debt and Investment Management Lease Management Access Governance

Financial Risk
Monitoring and Reporting Reporting and Disclosure Real Estate Management International Trade Management
Management

Financial Close Commodity


Financial Shared Services Integrity Screening
Governance Risk Management
SAP S/4HANA Finance
New or significantly renewed solutions
Audit Management
Solutions that are planned for renovation with SAP HANA
SAP S/4HANA Finance solutions that have not been re-architected for SAP HANA

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Financial
Financial Planning
Dynamic planning and analysis Financial Planning
planning
andanalysis
& Analysis
Analysis
and

BPC for S4/Hana


Integrated budgeting embedded in closed loop performance management
Responsiveness to changing business environment

Sales
Set Revenue
goals
Supply chain Financial
Act Plan Liquidity
statement
HR
Finance Cost
Deliver Monitor Capital
insight executio expenditure
to action n

▪ Link operational decision with ▪ Integrated budgeting and forecasting


strategic goals ▪ Embedded planning with real-time access to
▪ Monitor execution in real time transactional data
▪ Trigger mitigation and actions ▪ Built-in predictive and simulation capabilities

SAP HANA platform and SAP S/4HANA


(Single source of truth)
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Integration with SAP Analytics Cloud Financial Planning
& Analysis
Hybrid Scenario

SAP Analytics
Cloud

SAP Analytics
Cloud

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Real-time Customer and Product Profitability Financial Planning
& Analysis

New dimensions
Profitability characteristics at line-item level
in real time, over time
Root cause analysis and traceback based on Aggregation and analysis of granular data for profitability reporting

single source of truth


All-in cost transparency for cross charging, Advanced (and full)
Primary costing
costing
process improvements, and pricing SAP S/4HANA

Revenues
SAP PERF MGT

Costs
Self-service comparison of performance by Transactions Analysis Simulation Prediction
customer, product groups, or other
dimensions (including flexible hierarchies)

SAP HANA

Time

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Continuous Accounting Accounting and
financial close

Accelerate accounting with real-time integration of


GL, fixed assets, AP, AR, inventory, revenue, and
costs
Collaborate effectively and automate processes
with event-driven execution
Reduce cycle time through automation,
integration, collaboration, and streamlining of
processes
Provide central monitoring and self-service access
to financial information with drill down
Deliver better insight at any time from anywhere ‒
virtual “soft close”
Streamline population of Financial Consolidation
packages (FC now includes an S4 connector)
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Predictive Accounting Accounting and
financial close
Predictive accounting in relation to closing

Hard Close Fast Close Soft Close Predicted Close

t t t t

Accuracy and Speed and Efficiency Instant Insight


Confidence ▪ React to requirements for ▪ Improve management and control of operations
▪ Disclosure externally with faster filing, acceleration ▪ Allow for immediate decisions
focus on compliance ▪ Provide evidence for the ▪ Highlight service provider approach of Financials
▪ Respond to increasing quality of the finance department
department
external scrutiny ▪ Boost fast close
▪ Comply with strict ▪ Analyze data with more
regulations time available
▪ Elimination of tasks

Required Desired Inspired and Admired

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Perfect Planning, Automation and Monitoring –
SAP S/4HANA Financial Closing cockpit

Benefits Capabilities
Automated closing tasks, even in remote
Faster Entity Close through systems and powerful, user-friendly
improved closing efficiency application for manual tasks
Collaboration, notifications, and workflows
Governance and Compliance
Define a global game plan for the entity
close; leverage it for multiple org units and
closing cycles
Transparency and Insight
Audit trail, logging, documentation

Real-time insight into the closing status


Monitoring by subsidiaries and headquarter
Close Analysis

15-25% Faster Closing cycle – while ensuring high quality compliant results
Source: SAP Performance Benchmarking

* This is the current state of planning and may be changed by SAP at any time without notice.

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Real-time actual to plan Cash Cycle Treasury
management

Easily consolidate all cash data from SAP and non-


SAP systems into one single version of the truth
Monitor critical KPIs and have real-time overview and
response to cash requirements
Centralize bank account management including
overdraft limit and bank risk analysis management
Simplify and automate cash analysis and liquidity
management, reducing banking fees and borrowing
costs
Improve control and compliance through integrated
signatures with change history and workflows

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Embed Governance, Risk, and Compliance in SAP S/4HANA
Enterprise Risk &
Compliance
Manage risk and improve performance

Access
▪ Manage users and identities
Governance ▪ Enable single sign-on

▪ Automate continuous controls monitoring


Embedded Three Lines of
GRC Defense
▪ Detect anomalies and potential fraud
▪ Provide one view of risk
Finance
Cybersecurity ▪ Manage digital rights to protect applications and data
Monitoring and
Data Protection ▪ Enhance threat monitoring and analysis

International ▪ Screen related parties and manage trade compliance


Trade
▪ Leverage free trade agreements and optimize duty
rates

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Three Lines of Defense Enterprise Risk &
Compliance

▪ One view of strategic objectives and Business drivers Risks Three lines of defense
Operational L1 L2 L3
related risks, controls, and issues

Business strategy and


Board and executive
Financial Corporate

management

Risk appetite
▪ Key risk indicators to highlight real- Operational Independent

objectives
risk and
Environmental management assurance
compliance
time changes in risk levels Human capital
Manage Aggregate Provide
▪ Automated controls within key Reputation operational and independent GRC Digital
risks and coordinate assurance on Boardroom
processes to provide up to 100% Technology compliance entity-level 1st and 2nd
population coverage with exception- in business risk and lines of
Compliance
operations compliance defense
based alerts Strategic activities

▪ Regulatory requirements aligned to


controls and policies
▪ Screen third parties and detect
Embed risk and control monitoring
anomalies and fraud
in SAP S/4HANA

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Market Trends – Digital Transformation
New forms of “Systems of Intelligence” emerging …

Artificial Intelligence & Machine Embedded Machine Learning, Conversational Applications:


Learning, IoT, Insights Analytics providing built-in guidance the new User Experience
• By 2018, 75% of enterprise and ISV • Developers are adopting embedded Machine • Completely re-imagined user interface and
development will include Artificial Inteligence Learning to build new analytic applications taking experience
or machine learning functionality in at least on new market opportunities • By 2019, natural-language generation
one application, including business analytics • By 2019, APIs will be the primary mechanism to will be a standard feature of 90% of modern
tools - IDC connect data, algorithms, and decision services BI platforms - Gartner
distributed across digital economy value chains,
clouds, and datacenters.- IDC

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 44


Market Trends – Digital Transformation
New forms of “Systems of Intelligence” emerging …

Artificial Intelligence & Machine Embedded Machine Learning, Conversational Applications:


Learning, IoT, Insights Analytics providing built-in guidance the new User Experience
• By 2018, 75% of enterprise and ISV • Developers are adopting embedded Machine • Completely re-imagined user interface and
development will include Artificial Inteligence Learning to build new analytic applications taking experience
or machine learning functionality in at least on new market opportunities • By 2019, natural-language generation
one application, including business analytics • By 2019, APIs will be the primary mechanism to will be a standard feature of 90% of modern
tools - IDC connect data, algorithms, and decision services BI platforms - Gartner
distributed across digital economy value chains,
clouds, and datacenters.- IDC

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Connected Data Collaboration
Business Process
Integration Mobile Big Data Innovation

Intelligently connecting People, Things and Businesses

Machine Natural IoT Networks


Learning Language Microservices
APIs
Real-time
Analytics

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The digital innovation system that enables you to
innovate at scale to confidently redefine your business.

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The Bi-Modal Architecture of the Modern Enterprise
A Digital Core and a Digital Innovation System

Mode 1: Digital Core Mode 2: Digital Innovation


SAP S/4HANA SAP Leonardo Tailor, Integrate &
Connect all parts of SAP Hybris IoT
your business to SAP SuccessFactors Machine Learning
Expand
run live with Concur Big data the Core with SAP
SAP Fieldglass Modern Analytics Cloud Platform
S/4HANA SAP Ariba Blockchain
Data intelligence

SAP HANA SAP Cloud Platform

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Systems of Record

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The next Level of Automation:

Intelligent Finance Applications


with SAP Machine Learning
SAP‘s Vision - Finance 2020
Inverting the effort pyramid through automation

Today 2020

Strategy
and Growth
Strategy and
Growth
Keeping the
lights on

Compliance, Efficiency, Automation


Business Performance Keeping the
lights on

“Up to 70% of tasks are potentially automateable with next


generation technologies“ (McKinsey 2016)

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How we prioritized
Approaching lights-out finance operations

1) Estimated from shared services penetration in the function, and selected expert interviews
Source: FERF/Robert Half 2015 Benchmarking, n=1500 in mainly US and Canada; Deloitte SSC Handbook, n=270 globally

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Automating the End-to-End processes
Increase efficiency and reduce costs with SAP’s Finance Portfolio

▪ Automate core Accounts Receivable processes like Credit Management, Dispute


Order to Cash
Management and Cash Application with SAP Receivables Management solutions
combining the strength of rule-based and latest machine-learning technology

Procure to ▪ Significantly simplify, and automate the interaction between buyers and suppliers with
Pay the SAP Ariba Business Network through digitizing the exchange of information
▪ Achieve high invoice automation-rates with SAP Invoice Management by Open Text

Record to ▪ Eliminate manual FI/CO reconciliation efforts, access information in real-time and
Report provide Self-Service Analytics for business end-users with next generation accounting
with SAP S/4HANA Finance through simplified data model and in-memory computing

Plan to ▪ Improve forecast accuracy, accelerate and automate the financial close along with lower
Forecast compliance and auditing costs with SAP Business Planning and Consolidation
▪ Simplify financial planning and analysis with SAP Cloud for Planning

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Journey to smart automation in SAP S/4HANA Finance

S/4HANA Finance – The Digital Core as


foundation for digital automation

Accurate digital data reduces


reconciliations and enables Machine
higher degree of automated Engines Learning
processing from end to end

Engines loaded with pre-


defined high specific process
knowledge enables rule-
based automation Finance

Machine Learning identifies


hidden patterns in knowledge
intensive processes and
executes processing
Accurate
Robotics Process Automation digital data
helps to run repetitive,
rule-based monotone tasks Robotics Process
and bridges temporary gaps Automation

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S/4HANA Finance: The Foundation for Continuous Innovation
Benefit from newest SAP Leonardo innovations as they emerge

FINANCE
Financial planning Accounting and Treasury Financial Governance, risk
and analysis financial close management operations & compliance

▪ Predictive Planning, ▪ Enhanced Closing ▪ Cash and Liquidity ▪ SAP ▪ Predictive


Budgeting and Automation Management Cash Application Detection Methods
(Increase the
Forecasting
▪ GR/IR Monitor ▪ Remittance/ and Risk Scores
accuracy of liquidity
Payment Advice
forecast)
▪ P&L Prediction ▪ Invoice to Record
Automation

Leonardo Machine Learning

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SAP Leonardo delivers Breakthrough Technologies
Intelligent finance applications increase efficiency and reduce cost

▪ Automating the End-to-End processes


Increase efficiency and reduce costs with SAP’s
Finance Portfolio Automate

▪ Detect and prevent fraud


Identify and rank information that positively correlates
with fraud

▪ Proactive context sensitive support


The digital assistant boost productivity of your Detect
Predict
financial experts

▪ Prediction of future values


More insights into the future to facilitate taking the
right decisions

Assist

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Example: SAP Cash Application Automate
Intelligent invoice matching powered by Leonardo machine learning

History
Payments Matching
Invoices proposals
Machine Learning

SAP Cash Application intelligently learns matching criteria from


historical data and automatically clears payments

Automation Speed Reduce TCO Integrated with S/4


▪ Increase efficiency ▪ Faster payment matching ▪ Learns from historical ▪ Integrated with S/4HANA
▪ Reduce errors ▪ Reduce DSO data Cloud and On-premise
▪ Enable finance to focus ▪ Increase liquidity ▪ Learns from ▪ Compliments standard
accountant behavior rules
on strategic tasks ▪ Improve customer service.
▪ Does not require on- ▪ Maintain current
going maintenance processing workflow
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Example: SAP Business Integrity Screening Detect
Detect and rank Information that positively correlates with fraud

Fraud Investigators learn from their company’s investigative


history to
Detect new fraud patterns
Reduce false positives
Fraud Management Team

Detect Fraud Predictive Detection Methods


leverage robust, state-of-the-art machine learning algorithms
Reduce false
positives automatically detect and rank attributes within classified data that
positively correlate with fraudulent cases
Save money
incorporate with existing detection methods into new Fraud
Management strategies

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Monitoring temps réel / blocage de
transactions
Tests prédéfinis, analyse prédictive
Productivité dans la phase d’investigation
(faux-positifs, documentation…)
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Combining the power of different approaches
SAP Business Integrity Screening covers the full spectrum of anomaly detection

Known Unknown /complex


patterns patterns

Similar, but
Known Unusual Unknown
different from
behaviors behaviors behaviors
known behaviors

Rules Predictive
algorithms

Hybrid combination of rules and


predictive algorithms to detect irregularities

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Example: SAP CoPilot
The digital assistant for the live enterprise
Assist

Business context awareness


Understanding the business context, and pro-actively suggesting
solutions using predictive functionality

Conversational (multi-modal) UI
Conversational UI using Natural Language Processing functionality
with a focus on the next-gen UX to create a human-like experience

Cross Applications
Allows seamless transition across platforms; start a task on a mobile
device and continue later, on a desktop or vice versa

Self Learning
Using machine learning functionality to gain knowledge based on
SAP CoPilot - One digital assistant historic data, experience, and take action in response to new or
with one personality across all unforeseen events

products and solutions, industries Simple Access to Enterprise AI Platform


and lines of business Integration to SAP and Non-SAP Solutions
Simple access to Natural Language Processing and Machine
Learning functionality via APIs

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SAP S/4HANA Finance
The foundation for enabling finance transformation

Intuitive user experience Instant insight Flexible and nondisruptive


Consistent across devices In-memory enabled Easier to deploy and extend

Continuous accounting
and controls monitoring

End-to-end Instant
process financial
automation analysis

SAP HANA

Real-time treasury Real-time and


and cash predictive
management planning

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 62


Flexible and Non-disruptive Paths to SAP S/4HANA Finance
Choose the best option for rapid success

Flexible deployment options Flexible and nondisruptive paths to SAP S/4HANA Finance
New implementation

Cloud

Central finance
ERP system - A

instant data
ERP system - B
replication
Hybrid
ERP system - C SAP S/4HANA Finance
central Instance

System migration

On premise Former SAP ERP system

Migrated to SAP S/4HANA


Finance

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Central Finance – the non-disruptive path to SAP S/4HANA
Benefit quickly from in-memory innovations on THE financial transformation platform

Unite all data from a multi-system


S/4HANA
landscape in one Central Finance
instance. Central
Finance

Advanced reporting & planning Transformation platform Scalable execution


at segment, entity and group level for the live business of local and central processes

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Central Finance – the Sidecar Approach to Innovation
Accelerate your transformation with instant data replication

SAP

SAP Instant data replication


Central Finance
THE central S/4HANA instance

Non
SAP

Processes

▪ Procure to Pay ▪ Record to report ▪ Plan to Forecast


▪ Order to cash ▪ Central payment / treasury ▪ Transfer pricing
▪ Tax reporting ▪ Internal controls and risk management

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On-the-fly analysis – macro to granular

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On-the-fly analysis – digital boardroom

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On-the-fly analysis – digital boardroom

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On-the-fly analysis – digital boardrooms

Total Instant Simplified


transparency data-driven insights boardroom processes

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Digital Finance Value Scenarios
Renewing one process at a time
Value scenarios across the entire value chain

Dynamic planning and Close books in a day Real-time actual-to-plan “Lights-out” finance Always-on compliance
analysis cash management

 M&A and divestitures what-  “Soft close”  Instant visibility into working  Real-time receivables and  Instant identification and
if analysis  Instant profit-and-loss capital payables reconciliation prediction of potential fraud
 Accelerated group planning insights and real-time cost  Real-time liquidity planning  Immediate reaction to  Smart strategies for fraud
cycles control  Real-time bank counter- collection prevention
 Predictive forecasts and  Multidimensional reporting party risk management  Buyer-supplier integration  Improved compliance and
dynamic simulation on the fly  Higher transparency on with business networks higher audit management
 End-to-end customer and  Integrated regulatory and foreign exchange risks  Employee perfect-trip efficiency
product profitability managerial reporting  Automated payment experience  Integrated controls in
 Rapid design of new  Reduced reconciliations processes  Improved property processes
business models  Centralized finance productivity
instance

10% to 20% reduction in 10% to 20% reduction in 10% to 20% reduction in 10% to 25% reduction in Reduction of audit cost
budget and forecasting general ledger and treasury and cash accounts receivable and elapsed time from
costs* financial closing as well as management costs* management costs * audit start to report
audit costs*
*Improvement ranges are SAP estimates. Lower end of range reflects conservative improvement estimate from a move to SAP S/4HANA Finance from SAP Business Suite, and higher end of range reflects the conservative improvement of a
move to SAP S/4HANA Finance from SAP ERP on any database. For additional information, contact the North America Industry Value Engineering team.

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Financial planning and analysis – embedded model

 Real-time transactional data access – SAP BusinessObjects Business Planning and Consolidation
no replication (optimized for SAP S/4HANA Finance)
Strategic Targets
 Immediate update of plans and forecasts
Sales
 Full integration of different planning models Revenue

statement
Financial

Liquidity
Supply chain
 Planning at any level of detail and aggregation
HR
on the fly Cost
Capital expenditure

 Embedded predictive algorithms and simulation


capabilities

Transactions Planning Prediction

SAP HANA

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Accounting and financial close – soft close

 Elimination or acceleration of batch jobs Duration of month-end close


in workdays
 Streamlined intra-period reconciliation
 Harmonization of internal and external accounting
 Line-item drill-down by any dimension
 Key performance indicators instantly refreshed

>20

3
<1
Laggards Best-in-class Target

Source: SAP Benchmarking Services

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Accounting and financial close – dynamic consolidation

 Extending consolidation capabilities to embedded SAP S/4HANA Finance


model
 Real-time transactional data access – no replication
SAP BusinessObjects Business
 Advanced monitoring and incremental consolidation Planning and Consolidation
(optimized for SAP S/4HANA Finance)
 Single, integrated environment Planning Consolidation
(available today) (planned)
 Central finance option available

SAP HANA

Universal journal

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Centralization of a distributed landscape

 Real-time replication
 Complete data granularity – no loss SAP S/4HANA for central
 Consolidated reporting and analysis Legacy ERP finance foundation
 Centralized processes
 Document drill-back to source system Legacy ERP

Acquisition Centralized Consolidated


processes detailed reporting
ERP

SAP S/4HANA Finance


Legacy ERP,
can be moved Real time
over time
Transaction level SAP HANA

Reconciled
Single source of truth
Harmonized

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Treasury and risk – real-time cash management and forecasting

 Instant insight into global cash positions


 Real-time drill-down analysis
 Dynamic liquidity forecasting, cash-flow analysis
 Centralized cash management
 Day-to-day cash operations
 Bank account management

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Finance operations – real-time receivables

Periodic Continuous and


alert driven
1
Preparation
Continuous review
2 Reviewing open
cases
3 Clarification
with customer Resolution with customer

Static reports Role specific


Back office Anywhere
Periodic updates No latency

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Finance operations – end-to-end integration with Ariba Network

 Integration of end-to-end processes


X XX X

Supplier
 Real-time visibility of all documents
Order-to-cash
 Elimination of manual data entry
 Increased transparency across network
 Closed-loop reconciliations Sales and distribution Finance – accounts receivable

 Improved liquidity planning Invoice

 Effective working capital management


Order Payment

Procure-to-pay

Buyer
Procurement Finance – accounts payable

X XX X X
Initial network value focus Extending to finance

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Machine Learning meets Enterprise Areas and SAP’s digital core,
cloud and networks provides a next logical target for ML

▪ CV matching ▪ Procurement recommenders


▪ Freelancer matching ▪ Semantic product understanding
▪ EE scoring with NLP ▪ Procurement risk diversification
▪ Employee Lifetime Value ▪ Travel virtual agent
▪ Career path recommender ▪ Vendor matching
▪ Employee Churn Prediction

▪ ML Platform: ▪ Customer Lifetime Value


− Classification ▪ Cart abandonment prediction
− Regression ▪ Marketing action recommender
▪ Invoice matching
− Anomaly detection ▪ Product recommender
▪ Cash flow forecasting
− Reinforcement learning ▪ Automated sales forecasting
− Clustering ▪ Social sentiment analysis

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SAP is creating a first wave of smart applications and services
Incubation Description

Invoice ▪ Manually matching payments to invoices is a labour-intensive process in accounting


Matching ▪ We leverage machine learning to significantly increase automatic matching rates

Social Media ▪ Social media community managers are overwhelmed by tweets and facebook posts
Customer Service ▪ We automatically tag & cluster in-bound messages and automatically suggest responses

Automated ▪ Only 40% of opportunities close, sales reos spend 20% of their time on reporting
Apps
Sales Forecast ▪ We make data entry seamless and predict which opportunities will close

Real Time ▪ Most e-tailers suffer from low conversion rates as have no or basic recommenders
Recommenders ▪ We analyse customer clickstreams to provide contextual recommendations in real time

▪ Recruiters go through thousands of job applications to identify suitable candidates


CV Matching
▪ We identify the best candidates for a given job description

▪ Making business apps smart is hard for SAP developers, partners and customers
ML Platform ▪ We provide horizontal and vertical ML services and data on an open platform
Core
▪ Creating transparency on brand and logo exposure beyond text mentions is hard today
Logo Recognition
▪ We recognize brands & logos in videos & images to enable precision marketing solutions

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Thank you
Alain BRISSAUD

Head of Business Development Finance


SAP France

Mob : 06 16 46 45 56

Email : alain.brissaud@sap.com