Traditional enterprise has focused on aggregating and verifying data to make mission-critical decisions. They have carried out their planning and forecast in decentralized, and excel sheet environments resulted in data accuracy issues. Today, Digital enterprises are focusing more on driver-based planning approach to capture dynamic and real-time business situations as an operational activity; analyzing those operational activities through data modeling to predict the financial results in the form of operational estimations.
Major differences between Traditional enterprise and Digital enterprise are as under:
We all understand that capturing the complexities of the global enterprise into a simple “operational estimation” model can be difficult. Maintaining them on an ongoing basis can be even more challenging. Hence VisionTree has its trusted and integrated approach to simplify financial and operational plans with the following drivers:
1. Financial Drivers :
- Financial Relationships: those relationships which give insight into behavior between two financial accounts ( i.e., Cost of Sales = % of Sales)
- Operational Estimation: purely based on unit and rates of measure ( i.e., Volume x hours per unit x cost per hour )
2. Integrated Drivers:
- Non-Flow: Models that quantify financial and operational resources but doesn’t resolve the constraints for individual functions and activities
- Flow-Based: Models that quantify financial and operational resources and address the limitations for individual functions and activities
- Optimization: Models are derived based on financial objectives either related to revenue or costs.
Additionally, recent digitization brings the following process improvement challenges.
- Speed and precision are an increasingly important source of competitive advantage.
- Current System landscape for FP&A is falling short of intensifying demands for real-time, ad-hoc analysis.
- Broken silos between financial planning systems and core ERP system doesn’t support quick decision making.
- Role of financial teams is shifting from transaction processing to high-value planning and analysis
VisionTree addresses these challenges with SAP BPC Optimized for S/4 HANA Finance Transformation Service for its clients to deliver the following Transformation benefits for greenfield implementation across Aerospace & Defense, Oil & Gas, Utilities, Consumer Products, Retail besides Engineering & Construction companies.
- Single planning solution with strengths of current solutions
- Real-time access to master and transactional data for modeling and variance analysis
- Flexible drill-down on drivers of profitability including customer, product, geography, and channel
- Identification of trends and forecasts using predictive analysis
- Seamless integration of planning screens into ERP workflows
- End-to-end simulation capabilities
- Pre-built planning models for accelerated adoption
An existing SAP BPC Customers will benefit with their Migration as under through brownfield implementation:
Key Transformation Benefits include:
- Ability to compare plan/forecast against up to date actuals
- Deliver real-time Liquidity Planning
- Dynamic forecasting with real-time ERP data helps eliminate bad practices around budget manipulation (e.g. accrue against budget)
- No need to rebuild/maintain in a separate planning tool
- Eliminate duplication of effort and potential errors & delays arising from mistakes
- Single user license gives access to embedded planning plus ‘stand-alone’ architecture for maximum flexibility
- Standardize reporting of actuals/budgets/plans and forecasts on one user interface – SAP Fiori
Key Target Audience: Chief Finance Officer, Finance Controller, Financial Planners, Financial Analysts, Finance Transformation Leaders.