FINANCIAL MANAGEMENT USING CFO Vision™ · PDF filereporting and analysis solution ......

© 2000 eNiklas N.V.

FINANCIALMANAGEMENT

USINGCFO Vision™

Kari Kuusisto, eNiklas


Agenda

• Introduction and background• Financial Management• CFO Vision™• Case Alko Inc.• Summary


Field of Finance• Global competition• Investors• Customers• Personnel• Business strategy• Re-design of processes• Relevant information available on-

line


Challenges

• Constant changes in business• All recources in full use (even more)• Flexible and efficient reporting• Low expences• Faster• Reliable and relevant information


ChangeMeta Group

1998

Increase Profitand

Add Value

Optimize and Save

70%70% 30%30%

2003

Increase Profitand

Add Value

Optimize and Save

70%30%


Financial Management• Process

–customer orientation–control using information technology–processes instead of departments

• Technology–automation of processes–high integration of applications–easy access to valid information


Financial Management

• Organisation–business intelligence–members of business teams


Corporate Cops• Administer rules and regulations• Think in terms of oversight and

surveillance• Limit access to information to a “need to

know” basis• Enforce compliance with policies and

procedures• Monitor the collection and disclosure of

information


Business Advocates• Know the business and be involved• Think in terms of service and

involvement• Encourage wide use of financial

information• Integrate business operations

throughout the company• Provide financial discipline for the

business operations


Development ofBusiness Partner

• Information provider• Corporate Cop• Commentator• Advocate• Business Partner


Spreadsheet• Manual work flow• Audit trail• Compare figures manually• Difficult control quality of data• Inaccurate reporting• Hard to keep time-schedule• Difficult to handle multidimentional

information


SystemEnvironment• Operational systems of Finance

–General Ledger–Invoicing–Pay Roll–Etc.

• Other operational systems–Production–Purchase–Maintenance–ERP


Financial Data Warehouse

Import, consolidation and quality of data

Finance

DW

General Ledger and other basic systems

First phase:•Needs of FinancialManagement

OLAP


Financial Data Warehouse

Import, consolidation and quality of data

Finance Management CustomerPerformance

BSC

FDW Customer DW

General Ledger and other basic systems

Concept:•FDW is a part ofwhole DataWarehousearchitecture•FDW used for BSC•Data Warehousing isa process, not database

OLAP


CFO Vision

• A multi-user financial consolidation,reporting and analysis solution

• Based on financial datawarehousing

• OLAP technologies• For both group and local reporting

and analysis• Integrated budgeting solution• Web deployment


CFO Vision

Access & Mapping & Validation

Financial Data

Journal EntriesKey Performance Indicators

Currency ConversionEliminations

Consolidations

Managem

ent Data

Access &

Mapping &

Validation

General LedgerAccounts PayableAccountsReceivable

Accounting Systems Budgeting / Forecasting Treasury System

StockControlStock

Control

HumanResourceHuman

Resource

PayrollPayroll

Sales &MarketingSales &

Marketing

Other OLTPSystems

Other OLTPSystems

Head OfficeRequirementsHead Office

Requirements

LocalReporting

LocalReporting

StatutoryReportingStatutoryReporting

Activity BasedReporting

Activity BasedReporting

Working CapitalManagement

Working CapitalManagement

Legal/TaxationReporting

Legal/TaxationReporting


CFO Vision

Traditional tasksGeneralGeneralLedgerLedger

SpreadSpreadSheetSheet

Mapping &Validation

Allocation

Journals

CurrencyConversion

Eliminations

Consolidation

Cost / ProfitCentre

Variance Analysis

Text Annotations& Charts

Standard Reports

IncomeIncomeStatementStatement

BalanceBalanceSheetSheet

CashFlow


CFO Vision

GeneralGeneralLedgerLedger

SpreadSpreadSheetSheet

ActivityActivity

SalesSales

ProductionProduction

Mapping &Validation

Allocation

Journals

CurrencyConversion

Eliminations

Consolidation

FinancialFinancialWarehouseWarehouse

Cost / ProfitCentre

What-If ScenariosVariance Analysis

OrganizationalRestructuring

Performance Indicators

Text Annotations& Charts

Ad Hoc

IncomeIncomeStatementStatement

BalanceBalanceSheetSheet

CashFlow

ABC /ABM

Product

Customer


CFO Vision

OrganizaOrganizationtion

Local /Local /RemoteRemote

PeriodPeriod

StructureStructure

SASSAS

CFO VisionCFO Vision


CFO Vision

DataDataMappingMapping

JournalJournalEntriesEntries

BusinessBusinessRulesRules

DataDataMangmntMangmnt

ReportingReporting InformationInformation


Ad hoc -analysis

Drill in to detailDrill in to detail

Include otherInclude otherdimensionsdimensions

Full formattingFull formatting

Calculated itemsCalculated itemsInclude textInclude textcommentscomments


Reporting and Analysing• User profiles

–Analytical - information provider–Business Manager - information

consumer–Occassional Users - consumers

• One version of the truth• Distributed static reports• Reporting browser• Multidimentional capabilities (OLAP)


Open OLAP

• Web browser GUI• Great number of users• Open OLAP Service uses the same

data base as client• Same functionality as through client

(some differencies)


• Retail sales of alcoholic beverages arethe principal function of Alko

• Alko is a chain of speciality shops thatoperate responsibly, impartially andefficiently

• Alko has a nationwide service networkand an extensive range of high-qualityproducts

Alko Inc.


Key figures 1999

• Net sales, MFIM 2 306• Operating profit, MFIM 259• Personnel 2 175• Stores 271• Products 1 476


Background

• Alko Inc. became independent companyand did not have appropriate solutionfor operational finance reporting

• Further needs of management reporting• Prioritize new solution rather than

customize existing one


...

Requirements

• Focus on operational reporting offinancial information

• Fast and accurate reporting routine tobe able to concentrate on analysis

• Developing management reporting• Multidimentional views of analysis


Why CFO Vision™

• Multidimentional approach• Efficient delivery of reports through

browser (Open OLAP)• Report library• Support IT architecture in the company• Excel compatible


CFO Project

• Pilot at the beginning of Summer 1999• The project activities in August 1999• The target was to be able to build up

income statement by the end ofFebruary 2000

• The implementation in collaboration withSAS Institute and eNiklas

• Use of RWM


CFO Interfaces Pricing Purchase Cash Budgeting General HR

Order Register Ledger

UNIX UNIX UNIX NT UNIX UNIX

DW/WA

CFOVisionTM

Transactionssummarized in DataWarehouse


Clients

BaseSAS

CFO VisionTM server

HP/UNIXDW/WA

Web clients

Financial DataWarehouse

Web -serverOpen OlapServerWin NT

TechnicalTechnicalTechnicalTechnicalenvironmentenvironmentenvironmentenvironment

300 pcs 30 pcs


Installation of softwareCFOVisionTM

Web -versionsin 270 stores

Client -versionsinAdministrationand Middlemanagement

Remote installation


Experiences• Import of data and consolidation takes

10 - 15 minutes• Amount of dimensions has great

influence on consolidation time• Over 70.000 lines of data monthly basis• Efficient consolidation demands high

quality of import data• Re-consolidation easy because of good

control of consolidation process


Experiences, cont.

• Data Warehouse and WarehouseAdministrator contribute constructionand control of interfaces toward sourcedata bases

• Accurate import data enables effectiveand fast process of consolidatedreporting for complex information needs

• Feed back from users has been positive• Stable application


Experiences, cont.

• When definitions has been completedapplication reflects accordingly

• Ad hoc -analysis easy to create• Update of base definitions is user

friendly• Client reports look good


Issues for improvement

• It takes time to learn idea of reporttemplate

• Few modifications of report templatecreated with client are not availablethrough Web client

• Printing features could be better


Project Status

• The prior objectives reached• Year 2000 figures reported by CFO

Vision™• Integration with all other systems

completed• Number of users increase gradually


Income Statement2000


Summary

• The field of Finance is changing• Efficient process of Finance• Focus on analysing• Financial Management is a provider

of advanced business information• Role as a Business Partner• Value added


Summary• Financial Management need to be

close to the business• Make the process of Finance

integrated and efficient• Combine financial and non-financial

information to get new views to thebusiness


Questions,please ?

FINANCIAL MANAGEMENT USING CFO Vision™ · PDF filereporting and analysis solution ......

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