国际集团集中管理英课件

1、国际集团集中管理英1 Ufsoft Ufsoft ERP forum 2002.08.08 Hangzhou Group management of global operations - Finance management in the 21st century 国际集团集中管理英2 IntroductionIntroduction. . General accounting. Tax. Accounts receivable. Accounts payable. Payroll. Employee Expenses. Inventory. Fixed assets. Project /

2、job tracking Internal cost distribution. Financial forecasting. Cash management. Foreign exchange. Insurance / risk management. Investment / borrowing. 国际集团集中管理英3 Achieving “excellence” will entail new Achieving “excellence” will entail new practices across all finance functional areaspractices acro

3、ss all finance functional areas. . Functional AreasFunctional Areas “Common “Common Practice”Practice” “Good “Good Practice”Practice” “Finance “Finance Excellence”Excellence” Setting targets based Setting targets based on accounting on accounting measures:measures: EPS/ROE/ROI Performing basic Perfo

4、rming basic capital/portfolio capital/portfolio analysisanalysis Performing initial Performing initial M&A appraisalsM&A appraisals Managing risk against Managing risk against rigid rulesrigid rules Conducting treasury Conducting treasury operationsoperations Building tax planBuilding tax plan Devel

5、oping funding Developing funding planplan Compiling business Compiling business plansplans Independently Independently approving or approving or developing capital developing capital and operational and operational budgetsbudgets Processing Processing transactionstransactions Completing basic Comple

6、ting basic accounting/general accounting/general ledger functionsledger functions Monitoring past Monitoring past financial performance financial performance against budgetsagainst budgets Reporting financial Reporting financial information against a information against a scheduleschedule Identifyin

7、g financial Identifying financial impact of business impact of business strategystrategy Understanding drivers Understanding drivers of value creationof value creation Analysing background Analysing background and source data for:and source data for: Drivers and trends Accuracy Certainty Developing

8、Developing alternatives for alternatives for capital/portfolio capital/portfolio structurestructure Developing options Developing options and recommendations and recommendations around funding, tax around funding, tax and treasuryand treasury Evaluating financial Evaluating financial and business ri

9、sks in and business risks in context of business context of business objectivesobjectives Standardising and Standardising and streamlining budget streamlining budget processprocess Using activity-based Using activity-based metrics to identify metrics to identify budget prioritiesbudget priorities Au

10、tomating Automating transaction transaction processingprocessing Developing best-in-Developing best-in- class operations class operations against:against: Cost Speed Quality Managing improvements Managing improvements of operational of operational processesprocesses Establishing value Establishing v

11、alue based measuresbased measures Integrating measures Integrating measures to ensure alignment to ensure alignment and consistency and consistency Developing streamlined Developing streamlined reportingreporting Producing real-time Producing real-time datadata Adapting output to Adapting output to

12、needsneeds Responding to investor Responding to investor queriesqueries Contributing to Contributing to development of development of business visionbusiness vision Identifying and Identifying and modelling likely modelling likely scenariosscenarios Planning and leading Planning and leading long-ter

13、m value long-term value creationcreation Proactively Proactively identifying external identifying external and internal capital and internal capital allocation optionsallocation options Evaluating strategic Evaluating strategic alliances and alliances and opportunitiesopportunities Empowering Empowe

14、ring operational staff to operational staff to control riskscontrol risks Managing risk against Managing risk against business principlesbusiness principles Positively managing Positively managing risks as potential risks as potential opportunitiesopportunities Developing budgeting Developing budget

15、ing process that:process that: Is rapid and reacts to opportunities Includes contingency plans Facilitating budget Facilitating budget as as thethe process which process which matches planned matches planned activities against activities against the strategythe strategy Outsourcing of non-Outsourcin

16、g of non- core activitiescore activities Combining a balanced Combining a balanced set of financial and set of financial and non-financial non-financial measuresmeasures Aligning measures Aligning measures with business with business strategy and tactical strategy and tactical goals throughout goals

17、 throughout organisationorganisation Communicating Communicating strategy through strategy through choice of measureschoice of measures Introducing predictive Introducing predictive perspective to reportsperspective to reports Managing investor Managing investor relationships and relationships and e

18、xpectationsexpectations Performance Management CommunicationFinancial Operations Cost Planning and Budgeting Funding, Tax and Treasury Investment Management Financial Strategy 国际集团集中管理英4 Finance as a powerful tool to run a Finance as a powerful tool to run a corporation. corporation. Frequent compar

19、isons of Corporate reporting activities with statutory regulations Minimal number of Corporate accounts with cost justification of increases Limited number of reporting entities Unit accounting operates within Corporate policies and procedures but maintain a separate ledger(s) with a flexible chart

20、of accounts Common Chart of Accounts Automated consolidation upload from units Originator responsible for quality (zero-error tolerance) Automatic interface between General Ledger and subsystems Transactions are coded with sufficient information for multiple reporting requirements General Ledger con

21、tains only summary data of subsystem activity Automated account reconciliation Standard general ledger packages Multi-currency and multi-lingual accounting packages Financial database for analysis & reporting Automatic inter-company posting, reconciliationsreconciliations and eliminations Inter-comp

22、any charges consolidated and funded at one time each month Real-time integrated financial system with continuous close (Event-Based Accounting) Automation of controls / clerical functions Integrated financial / operational database Support for: Activity Based Management Responsibility Reporting 国际集团

23、集中管理英5 IndexIndex. . Finance transformation since the 1990s.Finance transformation since the 1990s. Finance control over global operations.Finance control over global operations. Case studies.Case studies. 国际集团集中管理英6 IndexIndex. . Finance transformation since the 1990s.Finance transformation since t

24、he 1990s. Finance control over global operations.Finance control over global operations. Case studies.Case studies. 国际集团集中管理英7 The agenda is shifting. . .The agenda is shifting. . . Recent Recent agendagenda Finance process redesignFinance process redesign Improve the control Improve the control fra

25、meworkframework Improve operational Improve operational efficiencyefficiency Implement ERP Implement ERP applications pplications Redesign the role and Redesign the role and organization of financeorganization of finance Impact of eBusinessImpact of eBusiness Increased pressure for Increased pressur

26、e for productivity and productivity and “value” added Finance“value” added Finance Speed and transparencySpeed and transparency Advances in technologyAdvances in technology Changes in the the way Changes in the the way business is donebusiness is done Distribution of skills Distribution of skills ac

27、ross the organizationacross the organization GlobalisationGlobalisation Changing Changing expectationsxpectations Value added finance Value added finance Accessible and visible Accessible and visible business intelligence & business intelligence & performance measuresperformance measures Greater spe

28、ed, Greater speed, flexibility, flexibility, responsiveness and cost responsiveness and cost efficiencyefficiency Self service / better Self service / better serviceservice Collaboration and Collaboration and connected communitiesconnected communities Multi-skilled employeesMulti-skilled employees 1

29、990s21st Century 国际集团集中管理英8 . . . from transaction processing to value-. . . from transaction processing to value- added decision supportadded decision support. . Number Cruncher 21st Century Finance Partner Decision SupporterNumber Manipulator 1990s21st Century Transactions Minimized Provider of Si

30、gnificant Strategic value Realigned to operate like a business Significant Efficiencies Obtained Implementing Analytical Solutions Reducing Cost of Finance Building Effectiveness Foundation Non Value Added Function Legend Decision support Control Reporting Transaction ProcessingShared services or ou

31、tsourced financial transaction processing Core finance functions 30% 40% 10% 20%20% 25% 35% 20% 20% 35%30% 15% 10% 20% 50% 20% 国际集团集中管理英9 Few companies consider finance to be achieving Few companies consider finance to be achieving its maximum efficiency and effectiveness its maximum efficiency and

32、effectiveness potentialpotential. . According to CGEYs RapidFx Benchmark Study - Only 18% of companies utilize a Group/Sector/Corporate data warehouse. Only 46% of companies have implemented shared services as a key part of the companys business strategy. Of those that do utilize shared services, on

33、ly 17% have clear performance measures. 67%, however, view this as very important. Only 37% of companies say technology has been the key enabler for their shared services. However, 79% say technology should be the most important key enabler for shared services. Few companies have been successful in

34、leveraging statistical analysis software for internal and external reporting needs. Few companies are succeeding in driving maximum business value from their technology investments by automating and routing transaction processing. 国际集团集中管理英10 All financial processes are coordinated around All financ

35、ial processes are coordinated around a common goal of improving shareholder value.a common goal of improving shareholder value. Shareholder Value Enterprise value maximization Transactional processing Management insight Coordinated transformation How does finance optimize, grow, downsize, and invest

36、 in order to drive shareholder perception? How does finance synthesize and analyze data to provide true business intelligence supporting critical decisions? How does finance significantly improve or even get out of the traditional finance transaction business? 国际集团集中管理英11 Quantitative and qualitativ

37、e benefits of a 21Quantitative and qualitative benefits of a 21st st century finance organization.century finance organization. Improved shareholder value due to an ability to understand and influence the true drivers that impact it. Reduced costs due to elimination of shadow finance organizations i

38、n the business units. Reduced costs due to optimization of transaction processing spend. Reduced costs due to the elimination of disconnected, finance-related technology purchases. Accurate information to react/recover more quickly when the economy changes. Understanding of how to combine cost cutti

39、ng efforts with effectiveness improvement efforts to move along the transformation path. Evolution to a business partnering model between finance and revenue generators. Finance savvy enterprise/culture. 国际集团集中管理英12 Finance therefore becomes a Finance therefore becomes a proactiveproactive unit in u

40、nit in the firm. the firm. Proactive Agenda High fixed cost business model FTE cost reductions Matrix organization Transactional processing consolidation Semi-integrated technology platforms Large reporting packages Renewed shareholder value focus Financial transparency and integrity Data quality St

41、reamlined organizational accountability Variable cost of infrastructure and workforce Productivity Organizational adaptability Technology as an enabler Operational excellence Reactive Agenda 1990s21st Century 国际集团集中管理英13 . .to possess the key characteristics of the . .to possess the key characterist

42、ics of the 2121st st century. century. Value-added customer service delivery model. Highly skilled finance decision support resources. Financial skillsets “embedded” in key business areas. Enhanced alignment of strategy and operations. Integrated budgeting, forecasting, measurement, analysis. Optimi

43、zed transactional efficiencies through outsourcing and shared services. Integrated processes across the financial supply-chain of trading partners. Advanced web-enabled self- service and productivity enabling tools. Integrated, corporate portals with secure links to applications. Integrated projecti

44、on and analysis tool suites. People ProcessTechnology 国际集团集中管理英14 IndexIndex. . Finance transformation since the 1990s. Finance transformation since the 1990s. Finance control over global operations.Finance control over global operations. Case studies.Case studies. 国际集团集中管理英15 A global group can onl

45、y start to control if it A global group can only start to control if it has the right finance function.has the right finance function. One of the first steps is to realise that the boards top responsibility is to the One of the first steps is to realise that the boards top responsibility is to the s

46、hareholders. shareholders. Only then are changes possible leading to board reshuffles and the creation of a global CFO. Many Asian MNCs have only recently hired a CFO. Sony did so 3 years ago. Fujitsu hired its first global CFO in March 2002. Why this change ? It is global competition and global req

47、uirement to publish transparent accounting that has pushed companies to improve their finance department. And a proper finance department in turn then assists management in building the right structure to manage a business such that it becomes competitive. CFOs help top management push through chang

48、es that are necessary for a companys financial well-being, and sometimes survival. CFOs push through workforce reductionslike at Fujitsu in Japan. CFOs are no longer only focused on numbers. They are becoming more and more involved in all aspects of the business. It is not uncommon that large MNCs a

49、sk the CFO to take over the CEO job. Source: Factiva 2002, “The new CFO of the Future” KPMG 国际集团集中管理英16 Finance helps large groups develop strategies. Finance helps large groups develop strategies. Three core aspects to change in business is creating a new role for CFOs. Globalisation New techniques

50、 and concepts Technology Major challenge for CFO is to formulate and communicate strategy, both internally and externally. Once strategies are formulated, then these have to be translated into action plans and finance plays a key role in implementing and driving the strategy. Source: Factiva 2002, “

51、The new CFO of the Future” KPMG 国际集团集中管理英17 IndexIndex. . Finance transformation since the 1990s. Finance transformation since the 1990s. Finance control over global operations.Finance control over global operations. Case studies.Case studies. 国际集团集中管理英18 General Electric is able to track all its Ge

52、neral Electric is able to track all its global businesses in real-time.global businesses in real-time. Full digitisation of GEs back office: GE is currently working to completely digitize its back office so that almost 100% of employees can focus on “front office” activities Real-Time tracking of al

53、l GE businesses in real time: GE is currently leveraging technology in order to be able to monitor all GE businesses at any time Seamless connection with customers: GE is creating a seamless demand chain by exploiting the full potential of its e-exchange hubs and clear understanding of customers nee

54、ds Source: GE, CGE&Y Analysis 国际集团集中管理英19 Nissans financial reporting was a disaster.Nissans financial reporting was a disaster. Nissan Motor Co. Ltd. is the worlds 36th largest corporation with operations in 97 countries and investments in 1,400 companies. In 1999, Nissan entered into a historic ag

55、reement with Renault S.A. of France when Renault purchased a 36.8% controlling interest in the Japanese auto manufacturer. What did Renault discover ? Nissan did not have one single set of financial reports - making it virtually impossible to make any decisions. One regions revenue could not be comp

56、ared to another. The system was not well- organized and rigorous enough for a $50 billion company. Nissan suffered from management problems, difficulties in financial reporting. Various financial re-engineering projects were conducted with 2 goals in mind - Achieve data consistency and timeliness ob

57、jectives (global Group consolidation within 7-10 working days) Provide flexible, but integrated, management database and reporting. Source: CGEY 国际集团集中管理英20 Financial re-engineering was one ingredient in Financial re-engineering was one ingredient in Nissans recovery after 10 years of losses. Nissan

58、s recovery after 10 years of losses. Nissan implemented consistent financial measures and a database for business analysis. The system allows Nissan to have: A common chartered account. A single reporting and consulting system. A common consolidation system with Renault. Now all 315 Nissan companies

59、 will report to the same chartered account and adhere ll 315 Nissan companies will report to the same chartered account and adhere to the name accounting rules and principals. The system will report on the Japanese to the name accounting rules and principals. The system will report on the Japanese G

60、AP, the US GAP and European international accounting standards. GAP, the US GAP and European international accounting standards. With this database, it is now possible to extract the reports according to: Companyompany. Business functionusiness function. Marketarket. Product. roduct. Source: CGEY 国际