GRC 2015 – One Week On!

By Thomas Frenehard, GRC Solution Management

Originally posted on SAP Analytics, 23 June 2015

Steve Lucas delivering the keynote address at SAPinsider 2015 Nice

Steve Lucas of SAP delivering the keynote address at SAPinsider 2015 Nice

Last week, SAPinsider held its GRC 2015 event in Nice, France and it was energising and fast paced! For those who couldn’t attend, I thought I’d share with you some of the great discussions I had with customers and also one of the announcements made that should be of interest to SAP’s GRC community.

Do More With Less

Of course this has been top of mind for many companies with the recent economic turmoil where resources are scarce and investments most often reduced to vital activities. But every customer I spoke with mentioned that their management is now asking them to increase their regulatory and operational efficiency coverage with “optimized options”. In essence, to do more controls with less resources.

It was motivating to hear feedback from customers who have already taken this path and leveraged their internal audit department to help. This showed that a true collaboration between the compliance team and the internal auditors can lead to the set-up of a sound and very efficient internal control system.

Three Lines of Defense

The three lines of defense was definitely THE hot topic at the event. And I could see the acronym 3LOD gain more and more traction, day by day. Many companies were interested in discussing how to align their operations, compliance, and audit departments. Interestingly, IT and business departments both mentioned this as a key (process) roadmap item for them in the near future. For business, the intent is to achieve the assurance level required by their executives and for IT departments the rationalization of the software landscape that would be brought with this approach was a definitive winner.

Operational Risk Management

Here I’m not referring to the banking Operational Risk Management (ORM) approach, but the intent to do risk management (identification, analysis and mitigation) at the operations or asset level. Having the ability to still be able to integrate the results in a wider Enterprise Risk Management framework so that a unique reporting of the company risk profile can be displayed at any time – without requiring lengthy manual risk consolidation.

It was interesting to hear the different opinions on what ORM is for each sector as there doesn’t seem to be a single – widely adopted – definition or approach. This is definitely one of the key points I took home that I’ll need to think about this summer!

Congratulations are In Order!

Last but not least, congratulations to EY and Integrc, two of our great partners in the area of GRC who have decided to combine forces. I wish them all the very best in the process! In conclusion, if you’ve never been, Nice is a lovely city, filled with history, beautiful landscapes, and delicious food. Associated with a great event, I have to admit that my week was far from being a punishment.

 

Note from the editor:

Thank you Thomas for this succinct wrap-up of GRC focus topics and discussions at the recent SAPinsider event in Nice.

Should readers of CFOKnowledge want to learn more about the GRC or Financials events, here are a few links to some excellent blogs from my colleague Derek Klobucher. I think you’ll enjoy them!

ŸHow Real-Time Analytics Will Kill a Financial Tradition

ŸWhy Paranoia Is Good for Business

ŸScreen Your Partners or Risk Guilt by Association

 

 

 

Nice and Simple – 6 Super Sessions for SAPinsider

GRC

Financials

 

 

 

Fully refreshed and recharged after a slight break in event-related activity (see my earlier post regarding the SAPPHIRE NOW event), attention now turns to Nice in France, where the SAP solutions for Finance teams shall be heading soon to attend our next “major” of the season with the SAPinsider conferences. While containing a number of topic areas, my attention will be focused on two areas in particular, the Financials and GRC events.

I don’t know about you, but when attending business conferences I like to do a little bit of forward planning, so that I can get the most out of my time spent at the event – a little bit like planning a route around the Disney theme parks I guess, but with more time spent seated, rather than queuing and without all those people walking around in character outfits. But planning takes time, which many of us don’t have in abundance during our working hours, and so to help provide some focus I want to share my “ super six” sessions to see at SAPinsider, to give you a nice and simple start towards your event agenda.

6 Super Sessions to See in Nice

In selecting 6 sessions, I’ve kept things as simple as possible, focusing exclusively on customer case study sessions rather than the Keynote, or the Simple Finance, EPM and GRC roadmaps sessions which are all available too. But you can select these at your discretion at the SAPinsider website. Rather, I’ve chosen customer sessions because these are where you’ll get the inside scoop about implementing software solutions, from your industry peers who want to share their experiences with you. And in my opinion, customer stories like these are the most valuable of all the event sessions. So here they are my 6 customer stories for Nice:

  1. 16 June, 2.00pm: Cargill – large-scale finance transformation project
  2. 17 June, 8.30am: GlaxoSmithKline – rolling out SAP Risk Management across the organisation
  3. 17 June, 10.30am: Sonae Indústria – revamping controlling and corporate management reporting
  4. 17 June, 2.30pm: Gazprom Neft – using SAP BPC 10.0 to align consolidated and mgmt reporting
  5. 17 June, 4.45pm: Airbus – faster, simpler integrated financial reporting and planning
  6. 18 June, 10.30am: VCEAA – reducing segregation of duties conflicts

But of course that’s not all, and you certainly don’t need to follow the above sessions if you don’t fancy them – there are many more to choose from. But whether you’re interested in SAP Simple Finance, EPM or GRC customer stories, or want to hear from SAP on any of these topics, then you can build your own agenda to suit your needs.

If you’re in Nice this year, then I wish you a very successful and informative trip. I’ll be there too, so say “hello” if you see me. And I hope that my cross-Finance customer session suggestions in some way help to make your planning that bit more Nice and Simple.

Why is There High Interest in Enterprise Performance Management? – Part 2

By Gary Cokins, Founder of Analytics-Based Performance Management LLC

In part 1 of this blog I questioned why EPM was receiving such popularity at the executive level, and posited some theories. Here in part 2 I give my view of some deep root cause effects.

Deeper root cause forces spurring interest in EPM today

There is a more deep-seated root cause than the forces described in part 1 of this blog. It involves a growing gulf related to (1) the ability of an organization’s managers to have consensus and agree with each other, and (2) the uncertainty of future external influences impacting their organization.

The figure below is a modified and simplified framework developed by Ralph D. Stacey, Ph.D., a scholar in organizational management.[1] The framework proposes that different managerial approaches are required based on where a problem resides in the two dimensional matrix with the axis “level of managers’ agreement” and “degree of uncertainty.”

Cokins SAP blog no_22

The lower left and upper right zones of the matrix are easiest to understand:

  • Bottom-left zone with high agreement and certainty. University MBA programs typically focus here. Past data is gathered and used to predict the future. Managers easily and rationally reach consensus and the expected outcomes are confidently predictable. Projects, initiatives, and actions are selected and monitored with variance analysis from plans used for mid-course control and adjustments.
  • Upper-right zone with lack of agreement and high uncertainty. In this zone there is often avoidance of decisions and it borders on chaos. Breakdowns occur here because traditional methods of planning, debating, negotiating and committing don’t work. Organizations get balkanized and either make strategic mistakes breaking from the past or take no action due to lack of confidence. Innovation and creativity should prevail in this zone, but they often come up short. 

The widening of the zones “in between”

As we move from the lower left to the upper right zone then politics and coalition building occurs. This is because there are broad differences about “how to get there” rather than the expected outcomes. Cause-and-effect relationships are rarely known or understood, so this is where a shared vision of the future state is more important than project planning. What is needed in this area of the matrix are the executive team’s ability to lead and inspire their employees and to continuously sense-and-respond to unexpected factors.

My belief as to why there is an accelerating interest in EPM is due to expanding gulf in this “in between” zone. This “in between” section of the matrix involves increasing complexity, uncertainty and change. In this section there is a gathering storm threatening all organizations. This is where agenda building overrides fact-based decision-making. This is where blind muddling by managers unfortunately overrides something more desirable – vision, inspiration, and good enterprise risk management (ERM) practices from the executives. As markets become more intensely competitive, managers are faced with more high-stakes decisions. As a result success in this “in between” area of the matrix requires both making the right decision in the first place and then executing on that chosen path direction.

The collective suite of integrated methodologies that comprise EPM (e.g., strategy mapping, scorecards, customer profitability management, rolling driver-based financial forecasts, enterprise risk management, etc.) provide the solutions for this “in between” section. EPM shifts problems and decision making from this “in between” section toward the lower left zone – making them simpler problems. Here is how and why technologies become essential enablers:

  • A shift in emphasis toward applying analytics of all flavors, including predictive analytics with what-if and economic trade-off scenarios, bolsters proactive rather than reactive decision making.
  • Gathering all information into an enterprise-wide and common information platform with scalable real-time information replaces disparate and disconnected data sources. These are increasingly cloud-based and accessible with mobile devices.
  • Cross-functional communication and collaboration amongst employees and automated rule-based decisions replace self-serving silo and bunker mentality.
  • The work processes, priorities, initiatives and target-setting of managers and employee teams are aligned with the strategic intent of the executive team. These replace pet projects, minimal (or non-existent) accountability, and internally competing silo department performance metrics that are suboptimal and degrade maximizing stakeholder needs – such as for shareholders or customers.
  • Economic measures of customer profitability and potential customer value are made visible to support differentiated service levels, offers or deals to achieve maximum profit yield from the sales and marketing budget.
  • Exception reporting, alert messaging, and at-a-glance visual reporting improves traction and accelerates speed in the strategic direction set (and continuously re-set) by the executive team.

Organizations need top-down guidance from its executives with bottom-up execution. Effective EPM, not simply the narrow CFO financial view of better budgeting and control, shifts decisions that are currently waffling in the “in between” section of the matrix – and away from the dreaded upper right zone of high uncertainty and lack of managers’ agreement. Complexity is expanding due to the forces described earlier, and EPM software brings rational thinking to convert once perceived complicated problems from the upper right into simpler and solvable problems in the lower left.

Understanding what EPM does is more important than trying to define what it is.

[1] Stacey, Ralph D.; Complexity and Creativity in Organizations; Berrett-Koehler Publishers, Inc.; 1996.

 

About the Author: Gary Cokins, CPIM

Gary_Cokins

Gary Cokins (Cornell University BS IE/OR, 1971; Northwestern University Kellogg MBA 1974) is an internationally recognized expert, speaker, and author in enterprise and corporate performance management (EPM/CPM) systems. He is the founder of Analytics-Based Performance Management LLC www.garycokins.com . He began his career in industry with a Fortune 100 company in CFO and operations roles. Then 15 years in consulting with Deloitte, KPMG, and EDS (now part of HP). From 1997 until 2013 Gary was a Principal Consultant with SAS, a business analytics software vendor. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics.

gcokins@garycokins.com; phone +919 720 2718

http://www.garycokins.com

Linkedin.com contact: http://www.linkedin.com/pub/gary-cokins/0/15a/949.

6 Stories to Give You the Finance Buzz at SAPinsider

SAPInsider Financials Logo

It’s going to be a busy time this week for many of my colleagues and the visitors to SAPinsider Financials 2015 in Las Vegas, so I decided to give you my thoughts on some interesting sessions to see, if you’re attending, given that you’re spoilt for choice with such a comprehensive agenda. And I’m bucking the trend with this blog post – because instead of talking about products, I ‘m talking about customers and thought leaders, and in particular the stories that you’ll be able to see and hear at the event this week.

Excited yet? I am! And with good reason, because many valued SAP customers have decided to make the trip to Las Vegas to give an account of their experiences with SAP solutions for Finance…stories of implementation approaches, best practices, and where they have found business benefits.

So for anyone embarking on a software implementation project, or even just considering approaches to solving some of their finance department and process issues, these are key SAPinsider Financials 2015 sessions to attend.

Six in Focus – But Don’t Forget the Rest!

My six focus sessions are chosen not because I know the customer stories particularly well, but rather because they’ll give attendees a good flavor across a range of finance topics. And my apologies to the many other customers not listed here – whose sessions are equally as valuable – but I just couldn’t fit you all into one short blog post.

I would, however, encourage readers attending Financials 2015 to take a look at the many other customer-led sessions at the event this week, as well as those detailed here, just so that you select sessions that will be most relevant to you.

Ready to learn about some of the exciting sessions ahead? Then let’s go:

  1. Keynote address, TODAY, Tue 17 March at 8:30 am – Okay, it’s strictly an SAP-led session, but there’ll be a panel discussion in which thought leaders will be asked to give their view about challenges and opportunities facing CFOs. It’s sure to be an interesting discussion – and let’s face it, no-one wants to miss the keynote!
  2. Sun Products, Wed 18 March at 8:30 am – A session where you should learn some best practice advice on implementing credit, dispute, and collections management.
  3. Velux, Wed 18 March at 10:30 am – I really like the sound of this session, in which you’ll hear how Velux moved from a traditional to “beyond budgeting” approach.
  4. McKesson, Thu 19 March at 8:30 am – For anyone seeking advice on implementing SAP ERP Financials then this is a session for you!
  5. Bentley Systems, Thu 19 March at 1:00 pm – Hear how Bentley Systems automated and shortened the payment processing lifecycle with SAP Bank Communication Management.
  6. Telephone and Data Systems, Thu 19 March at 4:30 pm – This is one for those of you interested in financial consolidations, with particular focus on project planning.

Don’t Be Shy – Get Networking!

All of these customers are attending the event to share their knowledge and experience with you, and I know that if you have questions for them after hearing their sessions that they’ll be delighted to speak with you…so do take advantage of this in the event networking sessions.

And remember to also take a look at the full agenda, so that you can plan your sessions and make the best use of your time. I hope you have an interesting and informative week, and that you return to work buzzing with the excitement of the potential to put in practice what you have learned at the event.

Have a great week!

Simplifying Finance in an increasingly complex world – outlook on Financials / GRC 2015

SAPInsider Financials Logo

By Henner Schliebs, SAP. Originally posted on SAP Business Trends, 17 February 2015. Reposted with permission.

We all have read the new mantra multiple times: if we simplify everything – we can do anything. This holds true for the finance department more than ever, considering that the use of technology is key to enabling a real-time business process environment. There were some threatening results revealed in a recent study that the CFO magazine has published, like “80% of respondents would need easier to use technology if they’d wanted to meet their growth targets”. So, this latest shift in technology enabling true real-time processes will be the focus topic of this year’s Financials 2015 / GRC 2015 event hosted in Las Vegas in March (Wynn Hotel, 3/17-3/20, follow the discussion #Financials2015).

As there will be hundreds of sessions that show customer success stories, the latest and greatest in financial management, EPM, Analytics, GRC and Ariba solutions I would like to highlight the Simple Finance sessions so that you can build your agenda around those, especially given that any S4/HANA journey will start with Simple Finance:

  1. start with the keynote where Thack Brown will elaborate on the need for speed (aka real-time finance processes) and introduces some external thought leaders to the panel discussions around a modern finance organization. I won’t tell too much when mentioning that Thack will launch another important mile stone of Simple Finance to the public…
  2. one of the most compelling use cases of Simple Finance is the central journal, so this session lead by Carsten Hilker shows you how to non-disruptively start your Simple Finance implementation arriving at one source of the truth
  3. for those in need of a high-level introduction to Simple Finance I’d highly recommend Martin Naraschewski’s session about the roadmap to Simple Finance, where he will elaborate on the needs of a typical finance transformation initiative
  4. one thing that was highly anticipated by you all is more insight into Integrated Business Planning – your unique opportunity to natively connect EPM with your Simple Finance ERP system to allow planning, simulations and scenario modeling directly on your transactional data. Pras Chatterjee off course will show integration to the new Cloud for Planning solution as well
  5. new to the game is the Simple Finance Cash Management solution that is introduced by Christian Mnich, where he will give insights into how to better plan and forecast liquidity based on an integrated process leveraging your ERP / S4HANA system
  6. a dedicated session on the new Accounting solution will provide better understanding of the concepts of the greatest innovation since R/3 building the base for S4HANA. Stefan Karl will guide you through this
  7. want to learn how to get to Simple Finance? Join charming expert Birgit Starmanns and understand what to consider if you want to adopt Simple Finance including advanced predictive finance analytics
  8. join our partner John Steele at Deloitte when he talks about real-time finance processes and the role that HANA plays in this highlighting finance use cases like fast close, financial risk management or finance operations
  9. the experts from TruQua will deliver a thrilling session around the analytics that Simple Finance can provide in form of HANA Live content or via integration of SAP Analytics and EPM solutions. Dave Dixon’s presentation is a good example
  10. finally you’d want to learn about the fast close capabilities of Simple Finance where Stefan Karl walks you through how to become a world’s fastest closing company like SAP

Note there are many “hands-on”-like sessions on the Monday (3/6) as part of the Pre-Conference Workshops that deliver tremendous value for practitioners.

Please be sure this is just the Simple Finance top 10 – please be sure you also learn from customers how SAP Financial Management solutions helped them achieve targets.

Follow the discussion on twitter or facebook or SCN and please share your thoughts.

10 Things to See and Do at SAPinsider Financials 2015

SAPInsider Financials Logo

By David Williams, Head of EPM and GRC Product Marketing, SAP

We’re already well into 2015 and the first key event for the SAP EPM (Enterprise Performance Management) team, partners, and most importantly, our customers, is just about upon us. SAPinsider Financials 2015, hosted by Wellesley Information Services, and co-located with SAPinsider GRC 2015, runs from March 17 – 20 in Las Vegas. It’s one of the key annual events that features EPM-related content. Given there’s so much to see and do at the event, and I often get asked for an agenda of EPM content, I thought why not put together a list of 10 things to see while attending the event. Think of it as a checklist of don’t miss items/sessions. Here we go:

  1. Cloud for Planning, Cloud for Planning, Cloud for Planning. The latest and greatest cloud-based planning and analysis application has been available since February. Make sure to check out one of the many SAP Cloud for Planning sessions and demos to see why it sets a new standard for planning in the cloud
  2. SAP Business Planning and Consolidation 10.1, version for SAP NetWeaver. “BPC” continues to be one of the most widely deployed planning and consolidation applications on the planet. Discover what’s new in the latest release and see how BPC fulfills integrated business planning for Finance capabilities as part of Simple Finance
  3. Close to Disclose. Closing the books and disclosing results continues to be a highly-manual task for many. Discover how you can accelerate/automate the financial close to disclose in one of the presentation or demo sessions including a Jumpstart deep dive on March 16th
  4. Speaking of Jumpstarts, there are 6 Finance ones and these are a good way to get up to speed on subjects such as SAP Simple Finance, simplifying plan and report deign in SAP Business Planning and Consolidation, and the impact of big data on Finance and GRC security among others
  5. EPM solution center. Go deep into product demos with our solution experts across a range of topics including planning, consolidation and profitability analytics, while not forgetting of course the new SAP Cloud for Planning application
  6. Show floor demos. Have a seat and take a well-earned rest from all that walking around the show floor, while watching one of the EPM solution experts show you the latest and greatest product features
  7. Customer delivered sessions. For many the key attraction of SAPinsider is hearing our customers’ financial transformation stories, in their own words. In 2015 you can hear from Lexmark, Velux, Delicato, IDEXX, Telephone and Data Systems and Applied Materials among others
  8. Simple Finance. It’s bound to be a big draw, and so there’s a number of SAP Simple Finance focused sessions. But of course don’t miss the keynote address to hear about the SAP vision to help simplify finance
  9. Visit our partners. Why not take the opportunity to speak with some of our business partners at the event? This year you’ll find the event global sponsor PwC, premier sponsors EY, KPMG and Z Option, as well as Deloitte, itelligence and BlackLine among others
  10. Say hi to the SAP team. Really please do – we’d be delighted to meet you. There will be a number of our subject matter experts at the event that can discuss topics such as planning and financial consolidations

The complete agenda is available here. Safe travels to Las Vegas and if you’d like to meet send me a tweet @daveswilliams!

EPM Reflections #4: A forensic approach to profitability analysis

EPMReflections 2014_4

Although we had started our new series of Financial Excellence with Game-Changers radio shows in March, the show I bring you here, Predicting Profitable Performance in Challenging Times, is from April 2014. I particularly liked this show because it deals with the often overlooked subject of profitability.

04_SAP Radio Show

A thoroughly engaging and entertaining show – in fact all of these radio shows are anything but dull – my favourite quote in the show is something said by SAP’s Rob Jenkins, who expresses that it is possible to “achieve a near-forensic view of product and customer profitability”. Having started my SAP career in the team that created SAP Profitability and Cost Management, I couldn’t agree more with Rob – and I love the image that a “forensic view” conjures up, implying to me that one can really get to the detail of the source of customer profitability if one has a mind to do so.