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  • 1 2014 Adaptive Insights | Confidential & Proprietary

    T H E G LO BA L L E A D E R I N C LOUD B I & C PM

    Lean Finance TransformationAlastair McKeating, Regional Manager

    Mike Peck, Regional Manager

  • 2 2014 Adaptive Insights | Confidential & Proprietary

    New Role of Finance

    71% strategic influenceof CFOs have seen their overall level ofincrease over the past three years*

    Source: 2014 CGMA Survey

    CFO

  • 3 2014 Adaptive Insights | Confidential & Proprietary

    What is Lean Finance?

  • 4 2014 Adaptive Insights | Confidential & Proprietary

    Aleanfinancefunctionstrivestooperateatthehighestlevelofeffectivenessthroughanoptimizedmixofpeople,processandtechnologytoprovidevalueaddstrategicandtacticalsupportthroughouttheentireorganization.

    Lean Finance

    Employs Lean Principals (along value chain) Focus on Delivering Strategic Customer Value Optimized OptimizingProcess Efficiency

  • 5 2015 Adaptive Insights | Confidential & Proprietary

    Successful performance management transformation aligns people, processes, data and culture.

  • 6 2015 Adaptive Insights | Confidential & Proprietary

    Tapping Analytics at The CoreMeans Competitive Advantage

    Companies that use analytics are more productive

    and more profitable than

    their competitors.

    10 Year Revenue CAGR

    Analytics Leaders

    Average

    2XGROWTH

  • 7 2015 Adaptive Insights | Confidential & Proprietary

    The Current State of Business AnalyticsTime, Effort, Integrity

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

    Takes too long

    Labor-intensive

    Data integrity/accuracy/reliability issues

    Calculations are difficult to audit

    Limited communication/collaboration

    Functionality doesn't meet enough of my needs

    Difficult to make changes

    Limited ownership/accountability

    End result is often already out of date

    Not integrated with performance reporting system

    All other responses

    BPMPulseSurveyResults,December2013

  • 8 2015 Adaptive Insights | Confidential & Proprietary

    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    out of date by the time they are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

  • 9 2015 Adaptive Insights | Confidential & Proprietary

    Executives Finance Sales Ops

    Plans Models Dashboards ReportsForecasts

    Current Systems Hold Finance BackManual. Siloed. Error-Prone.

  • 10 2014 Adaptive Insights | Confidential & Proprietary

    Two BIG Opportunities to Improve

    CloseBooks

    ConsolidateFinancials

    ReportResults

    Analyze

    Close FP&A

    EfficientlyRepeat

    Planand Model

  • 11 2014 Adaptive Insights | Confidential & Proprietary

    CloseBooks

    ConsolidateFinancials

    ReportResults

    Analyze

    Close FP&A

    EfficientlyRepeat

    Planand Model

    Two BIG Opportunities to Improve

  • 12 2015 Adaptive Insights | Confidential & Proprietary

    Proven Strategiesto achieve Lean Finance

  • 13 2015 Adaptive Insights | Confidential & ProprietaryFinancialPlanning,Budgeting,andForecasting:RemovingtheHurdles,March2013

    RollingForecastsEnableAccuracyandAgileBusinessPlanning,May2013

    Best-In-Class Companies:What They Do Better

    78%Rigorously forecast demand

    and continuously plan

    76%Forecast based on the most up-to-date business drivers

    2XMore likely to have timely

    financial data in plans

    73%Plan

    collaboratively

  • 14 2015 Adaptive Insights | Confidential & Proprietary

    Use Rolling ForecastsStay Ahead of the Curve

    64%Of annual targets

    are obsolete in 4-6 months

    Use Major Drivers

    Plans should never be out of date

    Frequently import actuals and plan with drivers to re-forecast quickly

    Get everyone on the same sheet of music integrated actuals & forecast

  • 15 2015 Adaptive Insights | Confidential & Proprietary

    Maximize Your Forecast PowerAdjust and Analyze Major Drivers

    Profit RiskWorking Capital

    True rolling forecasts go beyond the budget barrier and predict an organizations performance in response to economic change and growth.

    Rolling Forecasts: How and Why, 2010

  • 16 2014 Adaptive Insights | Confidential & Proprietary

    Link Driver-Based PlansDrive Cross-Functional Alignment

    Corporate Financial

    Plan

    SalesPipeline

    Forecasts

    ManufacturingProduction

    Plans

    LogisticsInbound & Outbound Shipments

    HRWorkforce Planning

    MarketingLead

    Generation

  • 17 2014 Adaptive Insights | Confidential & Proprietary

    FinanceSales

    MarketingHR

    Need to share data and collaborate with teams across the enterprise

    Elevate EngagementGet Managers Involved

  • 18 2014 Adaptive Insights | Confidential & Proprietary

    Organization-Wide ProcessInvolve All Departments

    Level 1Unaware

    Planning is a nuisance Business ignores targets Participation is a necessary

    evil to avoid corporate retribution

    Level 1Unaware

    Planning is core Planning process is

    critical to business decisions, goal setting, performance management

    Level 3Transformative

    Planning is tolerated Finance establishes a plan Everyone accepts the need

    to complete an orderly and accurate process

    Level 2Comprehensive

    Help your managers run their businesses more effectively

  • 19 2014 Adaptive Insights | Confidential & Proprietary

    Some of clouds biggest advocates are business users. They feel empowered by cloud technologies and they see them as more flexible because they can enact changes in real-time in line with business demands.

    Drive Self-ServiceFree from reliance on . . .

    TheROIofCloudApps,June2011

    Put Users in the Drivers Seat

    Flexible

    Self-sufficient

    Adaptive

    Proactive

    Intuitive

    Planning

    Reporting

    Analytics

  • 20 2014 Adaptive Insights | Confidential & Proprietary

    Analytics is Key to Risk Analysis and Responsiveness

    !

    IdentifyRisks

    DevelopAssessment

    Criteria

    AssessRisks

    AssessRisk

    Interactions

    123

    PrioritizeRisks

    Respondto Risk

    Assess Risks

  • 21 2015 Adaptive Insights | Confidential & Proprietary

    Create an Analytics CultureEnable KPIs Across Departments

    Executive

    Profit & Loss Scorecard (Act/Bud)Sales Pipeline

    Gross Income

    Service Backlog

    Project / Product Backlog

    Customer Retention / Turnover

    Sales & Marketing

    Billings

    Operating Income

    Expense, % of Revenue

    Paid vs. Billable Hours

    Lead & Sales Pipeline

    Cost per Lead

    Lead Conversion

    Cost per Sale

    # of New Contracts

    Backlog

    Allocations by Site, etc.

    Six SigmaHeadcount

    Expense / EmployeeUtilization

    Revenue / Employee

    Finance

    Operations HR

  • 22 2015 Adaptive Insights | Confidential & Proprietary 22

    Report

    Share

    Drill-down

    Analyze

    Refresh

    Compare

    Decide

    Take Action

    A Universal View

    Create a RepositoryCentralize Insight

    ACTUALSFORECASTBU D G E T

    REPORTINGMANAGEMENTFINANCIAL

    CentralSource

    for Insight

  • 23 2014 Adaptive Insights | Confidential & Proprietary

    Institute Performance Monitoring and Reporting

    Forecast Actual

  • 24 2015 Adaptive Insights | Confidential & Proprietary

    Link Analytics and PlansMake Better Decisions, Faster

    SalesPlans

    FinancePlans

    Finance

    Ops

    Sales Agility andBetter

    DecisionsKPIs

    Reports Plans

  • 25 2014 Adaptive Insights | Confidential & Proprietary

    Create a Continuous Cycle of Planning & Analysis

    Assess &Monitor Risks

    Analyze & Report

    Performance

    Goals & Objectives

  • 26 2014 Adaptive Insights | Confidential & Proprietary

    The New Role of FinanceRequires Rethinking Technology

    Reporting

    Planning

    Analytics

    Consolidation

    Integration

    Cloud

  • 27 2014 Adaptive Insights | Confidential & Proprietary

    of CFOs see the cloud as the future for their applications

    81%

  • 28 2014 Adaptive Insights | Confidential & Proprietary

    Cloud Lowers TCOFrees Up Resources to Innovate

    Software Licenses 9%

    Hardware

    IT Personnel

    Maintenance

    Training

    Customization & Implementation

    68% Subscription Fee

    Customization Implementation& Training

    On-Premise Software Cloud Computing

    43%

    26%

    14%

    7%

    1%

    32%TCO

    TCO

    Source: Yankee Group DecisionNoteTechnology Analysis

    Customers can spend up to four times the cost of their software license per year to own and manage their applications.

    Gartner The End of Software

    Cloud computing yields substantial economies of scale and skill, and lowers total cost of ownership (TCO).

    The Hurwitz Group The Compelling TCO Case for Cloud Computing

    77% less than On-Premise

  • 29 2014 Adaptive Insights | Confidential & Proprietary

    Perceptions of SaaS are Changing: Its about Flexibility More Than Cost

    Source: April2012TheChangingCloudA

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