This document summarizes a webinar about leveraging technology to power financial planning and analysis (FP&A). It began with defining FP&A and discussing how technology can impact areas like input collection, data processing, and output sharing. It then demonstrated the Adaptive Insights cloud-based planning and consolidation software. The webinar emphasized the importance of building a strong business case for any FP&A technology project by outlining benefits, investments, timelines and approvals. It suggested focusing first on cultural and process changes before implementing new solutions.
3. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Leveraging Technology to Power
FP&A
4. Proformative Event Notes
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6. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Leveraging Technology to Power FP&A
Jeffrey S. Wuest, President, SynFiny Advisors LLC.
Michael Shannon, Solution Specialist, Adaptive Insights
7. AGENDA
7
• Financial Planning & Analysis Defined (FP&A)
• Technology impact on FP&A
• Sharing Data, Creating Insights, FP&A Value Add
• Demo of a CPM Suite
• A Business Case for FP&A technology project
• Recap and Q&A
9. WHAT IS FINANCIAL PLANNING
AND ANALYSIS?
9
The SynFiny Advisors definition:
The critical value creation processes, which requires
a deep understanding of business fluency, finance,
modeling, data systems and processes, and
accounting.
This typically combines financial and non-financial
data as required to create strategic and operational
financial plans.
When done well, these processes are a clear
competitive advantage and thus are viewed as
critical by senior leaders.”
10. WHICH PROCESSES ARE
TYPICALLY OWNED BY FP&A?
10
Strategic Planning
Budgeting
Forecasting
Management Reporting
Financial Analysis
Capital Planning
Business Modeling
11. FINANCIAL PLANNING & ANALYSIS
AS GROWTH ENGINE
11
Reconcile
Actual to
Forecast/Budget
Forecast/Budget
Aligned to
Strategy
Improved
Business
Decisions &
Analysis
Deliver
Financial Strategy
via FP&A Systems &
Processes
Lower Cost and Improved
Efficiency/Productivity
• +6% Productivity
• +25% lower SG&A cost
Big Data –
Real Time Data &
Visualization
Real time data (2 to 5x
faster cycle time
Master data enables
analysis
Faster decisions and
actions than competition
Make better investment
decisions
Higher Sales/Lower Cost
• Sales increase of app
+~2% per year
• Cost decrease of app.
+~2% per year
13. WHERE MOST FINANICAL PLANNING
TIME IS SPENT
13
• Sales
• Cost
• Marketing
• Overheads
• Currency /
Commodity
Collect
Inputs
• Revenue
• COGS
• Budgets
• Override
• Plugs
• Before
and
After Tax
Process
Data
• Management
Reports
• Analysis
• External
Reports
Share
Output
45% 40% 15%
14. FUTURE OF TIME SPENT ON
FINANCIAL PLANNING
14
•Sales
•Cost
•Marketing
•Overheads
•Currency /
Commodity
Collect
Inputs
• Revenue
• COGS
• Budgets
• Reserves
• Before
and After
Tax
Process
Data
• Management
Reports
• Financial
Analysis
• Cost Analysis
• Budget
Analysis
• External
Reports
Share
Output
10% 30% 60%
15. LEVERAGE TECHNOLOGY
TO STEP CHANGE FP&A
15
AREA OF WORK PAST TODAY
FP&A Systems Only excel, highly non-standard FP&A tools available.
Input and Processing Too much time spent collecting
excel templates or emails
Input and processing happens in
the FP&A system
Outputs Unintegrated systems make
cutting and pasting a must
Integrated systems enable
automated and efficient data
analysis and reporting
Closing Books Weeks to Months Days to Weeks
Accounting Systems Slow & poorly designed. Mostly
locally, un-integrated systems
Fast & well designed. Fully
integrated and standard ERP.
Chart of Accounts No common chart of accounts,
Accounts created for each use
Standard chart of accounts.
Simplified for business use.
Ability to view details Only high level analysis. Unable
to view details
Low level analysis. Drill into all
levels of transactions.
16. “KEY WATCH OUT”
FIX FP&A PROCESSES AND THEN TOOLS
16
Deliver FP&A Process First, Then Tools –
Avoid replacing costly systems when a
financial planning issue arises. Instead,
focus on the real root causes. The root
cause is typically related to work process,
organization design, or company culture.
18. FINANCIAL PLANNING & ANALYSIS
AS VIRTUOUS PLANNING CYCLE
18
Reconcile
Actual to
Budget/Forecast
Update Budget
or Forecast
Improved
Business
Decisions &
Analysis
Deliver
Financial Strategy
via FP&A Technology
ERP to CPM/EPM
Automation used to
understand actuals to
budget/forecast
CPM/EPM Tools support
the creatation of the
future budget and
forecast data needed to
deliver strategy
BI/Analytic Tools
translate data into
insight supporting
both reporting and
analysis
Big Data - Real
Time Data &
VisualizationWork Flow / Social Tools
enable teams to
communicate more
easily about decisions to
deliver financial strategy
19. FP&A DRIVEN INSIGHTS
FOR THE BUSINESS
19
Other Functions Own FP&A Owns By working together
C-Suite leaders own the
business strategy which
articulates the plans from
today to the future
Developing the broader
financial strategy which
ensures the future plans are
achieved via operations
The business and financial
strategies are unified into
a single and achievable
operational plan
Supply Chain creates the
demand and supply plans via
ERP systems
Providing a revenue and cost
of goods forecast based on
units and future pricing/cost
expectation.
Unit and Currency sales or
cost can be easily
explained.
Supply Chain provides detailed
level of demand and supply
plans via ERP Systems (by sku,
country, category)
Developing a detailed mix
analysis for both revenue and
cost of goods.
Make changes to revenue
or cost plans. Especially
marketing plans to offset
any negative impact of mix
All Functions own providing
SG&A budget inputs and
understanding their spending
Creates SG&A budget
objectives and visibility which
align to the Financial Strategy
Control and improve SG&A
spending to deliver higher
savings (more with less)
Sales and Marketing develop
trade or marketing plans to
build the business
Analyze and assess the viability
of the sales or marketing
investment choices
Develop and deliver trade
or marketing plans which
deliver financial strategy
22. BUSINESS CASE FOR
FP&A TECHNOLOGY
22
Building blocks to a well written business case:
Business rationale for the change
Scope of the full project
Benefits realized
Changes to company cultural
Required investments or resources
Significant interdependencies
High level timeline
Review and approved
23. DESIGN CHOICES FOR
FP&A TECHNOLOGY
23
High level design choices:
Drives Faster Business Decision Making
Link budget/forecast with actuals
Detailed reconciliation process
Automated/semi-automated with ERP system
Standard Reporting & Analysis
Big Data but no need to integrate from start
Validate or helps cleanse master data
24. TO RECAP
24
How to use Technology to Power FP&A?
C-level leaders need to be supportive of change
Focus on culture/org/process and then solutions
Expect more from Finance & Accounting systems
Big data to create insights and drive decisions
ERP for lower level, real time analytical data
Work with IT on joint projects to improve data
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A Few Final Items
