Transform and Innovate Business Process

Using SMART Technologies

BUSINESS LEADERS in FINANCE and TECHNOLOGY at the core of DIGITAL TRANSFORMATION AGENDA

T A B L E O F C O N T E N T S

Read here

FOREWORD

Message from Oracle

Read here

INTRODUCTION

Section I CFO OPTIMISM LEVELS

Read here

This section covers the optimism level of Chief Financial Officers (CFOs) for various parameters related to the performance of their individual company and the overall corporate sector for the last three years.

Section II FUTURE READINESS OF BUSINESSES Read here

Future Readiness of Businesses are captured by understanding the readiness of Finance leaders in the following core areas - Digital adoption, Data security and Investment in Digitization. The barriers to adopting digitization, degree of challenges faced in the absence of digitization, benefits of digitization and plans of migrating to cloud by Finance leaders have been captured through a survey.

Section III TRANSFORMING AND INNOVATING BUSINESS PROCESSES This section covers the digital transformation that organizations have gone through by migrating various functions of finance to cloud. The benefits derived from the various cloud solutions have been quantitatively and qualitatively captured. Read here

01

01

F O R E W O R D

Oracle shares the same challenges as other companies and organizations across industries and across the world. Expectations of those we each serve has evolved. Every constituent is demanding more –customers, partners, employees, and citizens. This means we have to provide exceptional experiences from beginning to end and we all need to stay ahead of ever-changing expectations. To do this, we have leveraged cutting-edge technologies using Oracle Cloud to drive increased efficiencies across our business – ultimately reducing time-to-value and achieving significant cost savings. As we've embarked on our business transformation, Oracle Cloud for ERP and EPM has proven to be the ideal platform for Finance. The benefits we have seen boil down to four categories:

Douglas Kehring Executive Vice President, Corporate Operations

1.Higher Efficiency. Automation across the business enables our employees to collaborate and work more productively. We've eliminated routine work and manual intervention, enabling our teams to focus on what matters most – customer success. For example, by leveraging Oracle ERP Cloud, we eliminated 35% of manual accounting activities, and reduced time to completemonthly accounts payable close by 30%. 2.Smarter Decisions. Our finance leaders are able to make smarter decisions quickly based on visibility from analytics and data as well as emerging technologies, like machine learning and artificial intelligence. For example, at Oracle we are now able to close our books and report earnings in less than 12 days. 3.Faster Rate of Change. With Oracle Cloud ERP and EPM, our teams have the ability to leverage quarterly updates to stay ahead of changing expectations and needs. Every 90 days, we uptake 100 new features on average to continuously improve and innovate the experience. 4.Better User Experience. At Oracle, we've implemented a unified, consumer-grade user experience across the finance tasks. The new experience makes it simple, fast, and intuitive to complete tasks. Beyond our own successful transformation, Oracle has been helping organizations of all sizes and industries tackle their own cloud transformations. The Oracle Cloud enables them to embrace advanced digital tools to drive enhanced strategic decisions, and empowers them to leverage their own resources to discover productivity unseen before. There are countless success stories, and we believe if there is any time for your organization to engage in a technology driven transformation, it is now.

Back to TOC

02

01

I N T R O D U C T I O N

Technology readiness of Finance leaders which also indicates the future readiness of businesses can be broadly measured by the level of digitization adopted, quantum of data security measures taken and the level of investment on digitization. Cloud technologies are becoming one of the major investments for businesses of all sizes and Finance leaders adopting various level of digitization are planning to migrate to cloud. While there are various considerations, the major benefits are related to ease of access to various smart technologies without upgrading infrastructure, absence of cost of equipment and software upgrades, flexibility to scale up, easy access to different functionalities in cloud, increase in value added analysis, access to applications anytime and anywhere and reduction in time-to-market. This in turn has led to increased efficiency and productivity of organisations. Understanding the optimism level of Finance leaders/CFOs and their priorities helps to gauge the changing aspects of businesses on a micro level. Today's rapidly changing, volatile and competitive business environment demand Finance leaders to take strategic decisions based on real time information and quick insights. Finance leaders thus have to take charge frommerely managing the financial performance of a company to assume the role of a strategic business partner, drive business transformation and contribute to risk management; balancing performance, efficiency and risk at the same time. As finance is the core for any business transformation, Finance leaders must be equipped with the latest smart digital technologies. Without digital technologies they will be unable to detect and respond to real-time business challenges. Faced with various degree of challenges with respect to managing processes, costs and reaching out to customers or markets and falling behind their peers who have been able to transform their business models through digitization, Finance leaders are embracing advanced digital tools to drive enhanced strategic decisions. Finance leaders across organizations are thus becoming technologically ready.

Back to TOC

CFO OPTIMISM LEVELS ect o S i n I

Back to TOC

04

Understanding the Optimism level of CFOs to gauge the business dynamics

Capturing the optimism levels of CFOs who steer the financial performance of a company helps to gauge the dynamics of businesses at a micro level.

Dun & Bradstreet conducts survey to gauge the optimism levels of CFOs across pan India on a quarterly basis. The survey captures how optimistic CFOs are about the financial performance of their companies and the overall business scenario in a dynamic and volatile environment.

A look at the optimism of the CFOs over a period of time reveals that:

Trend over the quarters Optimism for company level parameters 2017 Q1 Q2 Q3 Q4 2018 Q1 Q1 Q2 Q3 Q4

2019

2020

Q4

Q1

Q2

Q3

Operating margin of the company

Liquidity position of the company

Level of financial risks on the company’s balance sheet

Risk appetite in the current scenario

Need for raising funds

Overall Optimism level Trend over the quarters 2017 Q1 Q2 Q3 Q4 Q1

2018

2019

2020

Q1

Q1

Q3

Q4

Q3

Q4

Q2

Q2

Overall scenario for Mergers & Acquisitions

Level of financial risks for corporate sector as a whole

Negative contributor

Positive contributor

Optimism level of CFOs remain subdued for the Operating Margin of the company, the Liquidity Position of the company and Need for Funds since Q2 2019 i.e. April -June 2019 to Q1 2020 th ·CFOs continue to remain optimistic with respect to the Level of Financial Risks for the 4 consecutive quarter in Q1 2020 · The optimism for Overall scenario for Mergers and Acquisitions has improved for two consecutive quarters of Q2 2019 and Q1 2020 compared to the period of Q3 2018 and Q3 2019

Note: Data from the latest survey are captured at the time of the release of the report.

Source: D&B CFO Optimism Index

Back to TOC

05

Priorities indicate the strategies considered by CFOs

Comparing on a yearly basis, the survey shows some interesting trend on how the CFOs would want to prioritize their strategies over the next six months

CFOs have indicated Cash Flow Management and Reducing Cost as their topmost priorities during the last 3 years. Interestingly Reducing Leverage and Capex Plan have moved up the most on the list of priorities during the last two years. Percentage of CFOs choosing Organic Expansions as their topmost priority have fallen steeply during 2019 compared to 2018 and 2017.

Cash flow management Reducing cost Risk management Reducing leverage Capex plan Business restructuring Organic expansions Expansion through M&A Dividend declaration

2017

2018

2019

Expansionary priority Given the slowdown in growth momentum, the percentage of CFOs choosing expansionary priorities have fallen since Q3 2018. This marked a deviation in the trend observed during early 2017 to early 2018. Expansionary priorities of CFOs over the years

50

40

30

20

10

0

An average of 25% of CFOs indicated adopting expansionary strategies during Q1 2017 to Q2 2018. This has dropped to an average of 8% of CFOs over the last year i.e. during Q3 2018 to Q1 2020

Note: Expansionary Priority refers to Organic expansions, Expansion through M&A, Capex plan and Dividend declaration. Defensive Priority refers to Reducing leverage and cost, Risk management, Cash flow management and Business restructuring.

Data from the latest survey are captured at the time of the release of the report.

Source: D&B Survey and analysis

Back to TOC

FUTURE READINESS OF BUSINESSES ect o S i n II

Back to TOC

07

TECHNOLOGY READINESS OF FINANCE LEADERS Measured by understanding the readiness of Finance leaders/CFOs in the following core areas –

Digital adoption

Security and data

Investment

LEVEL OF DIGITIZATION

Intermediate Analysis of financial information using excel in combination with Tally and local softwares, advanced level of data security such as Network Segmentation, Intrusion Detection (IDS) and Intrusion Prevention System (IPS) and percentage of profit spent on digitization Advanced Focuses on advanced data mining and predictive analytics by using advanced softwares, using advanced data security applications such as Data loss prevention (DLP), Security Information and Event Management (SIEM), threat monitoring, Structured Incident Response (IR) and percentage of profit spent on digitization Finance leaders have been divided into three segments based on the level of digitization adopted by them. Level of digitization has been categorized based on adoption of digital technologies, application of digital and data security measures and investment in digitization. Each level of digitization has been defined as: Basic Analysis of financial information on excel spread sheets, use of basic data security softwares such as spyware, ransomware, etc. and percentage of profit spent on digitization

21% of Finance leaders are digitally advanced, while majority i.e. 66% have intermediate while the remaining 13% have adopted basic level of digitization

66% of Finance leaders have adopted intermediate level of digitization

Back to TOC

08

Basic 24% of Finance leaders use basic digital technologies 5% of Finance leaders have basic data and data security measures 16% of Finance leaders have invested 4.8% of their profits in basic digital technology and security measures Intermediate 29% of Finance leaders use intermediate digital technologies 42% of Finance leaders have intermediate data and data security measures 39% of Finance leaders have invested 11.3% of their profits in intermediate level of digital technology and security measures Advanced 47% of Finance leaders use intermediate digital technologies 53% of Finance leaders have advanced data and data security measures 5% of Finance leaders have invested 7.6% of their profits in advanced digital technology and security measures

DIGITAL ADOPTION

24% Basic

29% Intermediate

DIGITAL AND DATA SECURITY

47% Advanced

5% Basic

53% Advanced

42% Intermediate

DIGITAL INVESTMENT % of profit invested in digitization

Finance leaders have invested an average of 8.6% of their profits in digitization

11.3%

7.6%

4.8%

Basic

Intermediate

Advanced

16%

39%

5%

% of Finance leaders

Back to TOC

09

Barriers in adopting digitization

Internal collaboration, Managing disparate data and Competing priorities in terms of resources and budgetary allocation has emerged as the top 3 barriers in adopting digitization.

Top barriers for Finance leaders as per the stage of digitization adopted

The top barriers for adopting digitization differ for companies at different stages of digitization

Basic Cost outweighs benefit to business Lack of familiarity with digitization Senior leadership buy-in

Intermediate Internal collaboration Difficulty in integrating different processes and operations Managing disparate data

Advanced Managing disparate data Internal collaboration Senior leadership buy-in

Main barriers in adopting digitization of all Finance leaders covered in the survey

Internal collaboration

Competing priorities in terms of resources and budgetary allocation Managing disparate data

Difficulty in integrating different processes and operations

Lack of familiarity with digitization

Cost outweighs the benefit to the business

Senior leadership buy-in

Others

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

Internal collaboration is the biggest barrier for adopting digitization, while cost has emerged as one of the least important barriers

Back to TOC

10

Degree of challenges faced in the absence of digitization The survey revealed the challenges that Finance leaders faced in the various finance functions in the absence of digitization.

PROCESSES

DEGREE OF CHALLENGES

Building agile processes in line with market changes

45% Finance leaders found it difficult, to a great extent or to a very great extent, to improve upon building agile processes in the absence of digitization One in three Finance leaders found it difficult to a very great extent, to improve governance and control in the absence of digitization Majority of the Finance leaders found it difficult to improve processes, governance and risk management in the absence of digitization Finance leaders stated difficulty only to a small extent in managing and reducing cost in the absence of digitization 35% of Finance leaders found it difficult, to a great extent or to a very great extent, to reduce cost without digitization. 53% Finance leaders stated they found it difficult to improve operating margins without digitization Majority of the Finance leaders experienced difficulty, to a great extent, to connect with the market or customers In the absence of digitization, 43% of Finance leaders found it difficult to reduce the time-to-market 40% - 57% of Finance leaders found it difficult to increase the functional flexibility and speed of decision making without digitization

8% 18% 13% 16% 16% 29%

Risk from a volatile environment

21%

18%

11%

18%

13% 18%

Improving governance and control

11%

13% 13% 11%

18%

32%

COST

Reducing cost of finance

13% 26%

8% 18%

11%

24%

Managing working capital

16% 21%

13%

18% 11% 21%

Improving operating margins

8% 13% 5%

21% 21%

32%

CUSTOMERS/MARKET

Time-to-market

8% 18% 8% 24% 11% 32%

Flexibility and speed of decision making

5% 13% 13% 29%

37%

Functional flexibility

16% 26%

13%

34%

5%

To a moderate extent

To a great extent

To a very great extent

To a small extent

To some extent

Not at all

Back to TOC

11

Basic Improved efficiency, Financial savings, Improved ability to identify growth opportunities Intermediate Improved efficiency, Financial savings, Improved sales cycle Advanced Improved efficiency, Financial savings, Improved cross functional collaboration Overall, Improved efficiency, Financial savings and Improved sales cycle are the top 3 benefits that the Finance leaders are likely to get from digitization in the next 3 years as stated by 92%, 58% and 39% of Finance leaders respectively. Top benefits as per the stage of digitization Top 3 benefits that digitization will bring in the next 3 years

TOP 3 BENEFITS THAT FINANCE LEADERS CONSIDER DIGITIZATION WILL BRING IN THE NEXT 3 YEARS

92% Improved efficiency 58% Financial savings

39% Improved sales cycle 37% Improved ability to identify growth opportunities Improved cross functional 3% collaboration

13%

Better prioritization of receivables

13% silos

Standardized data across

16% Reallocation of talent

Improved efficiency and financial savings were cited by majority of the Finance leaders as the top benefits that they would realise in the next 3 years

Note: Around 5% of Finance leaders have mentioned other benefits for digitization

Back to TOC

12

37%

Planning to migrate to cloud 63% of the surveyed Finance leaders stated that they are planning to migrate to cloud.

63%

YES

NO

Migration to cloud- As per the level of digitization

63% of Finance leaders who have adopted advanced levels of digitization have a plan to migrate to cloud. Around 55% of Finance leaders who have intermediate level of digitization and 100% of Finance leaders who have basic level of digitization also plan to migrate to cloud.

ADVANCED INTERMEDIATE

BASIC

YES

NO

Migration to cloud in the future

32%

year

1

55% of Finance leaders plan to migrate to cloud in the next one to two years.

23%

year

2

23%

year

3

9%

year

5

Around 90% of Finance leaders who plan to migrate to cloud want to do so in the next 3 years

Note: Around 13% of Finance leaders did not mention the time frame for migration to cloud

Back to TOC

13

Roadmap on migration to cloud Around 57% of Finance leaders have a cloud map as per the survey

Advanced 63% of Finance leaders in this category plan to migrate to cloud and 75% have a cloud roadmap Intermediate 55% of Finance leaders in this category plan to migrate to cloud and at the same time 50% have a cloud road map Basic 100% of Finance leaders in this category plan to migrate to cloud, while 60% have a cloud roadmap. Cloud roadmap

YES 57%

No 43%

% of Finance leaders who have a cloud roadmap

60%

BASIC

50%

INTERMEDIATE

75%

ADVANCED

Close to 60% of the surveyed Finance leaders have a cloud road map

Back to TOC

14

KEY TAKEAWAYS

Technology Readiness of Finance Leaders

Today's Finance leaders are digital transformers

Survey reveals 47% of Finance leaders use advanced level of digital technologies , 53% of Finance leaders have implemented advanced data and data security measures and 5% of Finance leaders have invested an average of 7.6% of the profits to adopt advanced level of digitization

Ÿ 66% of Finance leaders have adopted intermediate level of digitization Ÿ 21% of Finance leaders have adopted advanced level of digitization Ÿ 13% of Finance leaders have adopted intermediate level of digitization

Barriers to adopting digitization Degree of challenges in the absence of digitization

Ÿ One in three Finance leaders found it difficult to a very great extent, to improve governance and control in the absence of digitization 53% of Finance leaders found Ÿ it difficult to improve operating margins without digitization In the absence of digitization, Ÿ 43% of Finance leaders found it difficult to reduce the time-to-market

Internal collaboration , managing disparate data and competing priorities in terms of resources and budgetary allocation are the main barriers to adopting digitization

Benefits of Digitization

Migration to Cloud

90% of Finance leaders who plan to migrate to cloud want to do so in the next 3 years and around 57% of Finance leaders have a cloud map

Ÿ 58% of Finance leaders perceive financial savings from digitization in the next 3 years expect improved efficiency from digitization in the next 3 years Ÿ 92% of Finance leaders

Back to TOC

ect o S i n III TRANSFORMING AND INNOVATING BUSINESS PROCESSES

Back to TOC

16

Transforming and Innovating Business Processes using SMART Technologies

Role of CFOs have expanded from the traditional functions: CFOs are now playing a new role by Contributing to operational decision making Becoming the strategic business partner i.e. creating new business models/new markets

The top factors that have driven the need for migration to cloud

Funding/Budget No additional capital-expenditure Work from anywhere New or different functionality Current system is not able to support additional requirements/ new business expansion

Increased/automated testing More frequent updates New organizational structure Expansion of the company into new markets/countries

Criteria's considered in terms of importance while selecting applications offered by Oracle vis-à-vis others Speed of implementation & rollout Availability of many relevant analytics & dashboard Cost of deployment Opex Vs Capex commercial model Business need met by the applications Security effectiveness Implementation expertise Flexibility in customization Ease of change management Low maintenance

Challenges that your business faced before moving over to cloud Managing

Not able to manage data completely Not able to compare information across team simultaneously

disparate data sources and reporting methods

Difficulty in collaborating with employees who are outside the office and with clients and vendors

High time-to-market

Cost of equipment and software upgrades

Lack of flexibility to meet the growing or fluctuating business demand

Back to TOC

17

Cloud Solutions by CACTUS COMMUNICATIONS

Higher improvement than expected in each of the categories by implementing Oracle fusion financials cloud service

Benefits of implementing Oracle fusion financials Cloud service

(% change)

10% 15% 20% 25% 30% 35%

Comply with accounting standards and multiple legislative or industry requirements

Cash management/flow

Closing process

0% 5%

Managing assets life cycle

Benefits realized by implementing Oracle financial consolidation and close cloud service

20%

20%

reduction in time to close the book

decrease in manual adjustment

Back to TOC

18

Cloud Solutions by CACTUS COMMUNICATIONS

Higher improvement than expected in each of the categories by implementing Oracle financial consolidation and close cloud service Oracle fusion purchasing cloud service

Enforce procurement policies Efficiently manage document revisions with visual notifications and full change history

Easy to use and maintain

Leveraging analytics for better insights

Benefits realized by implementing

Oracle fusion purchasing cloud service

(% change)

Decrease in manual intervention to create

50% 30% 30%

purchase orders from requisition

Decrease in managing document revisions manually

Time saved by automating procure-to-pay process

Note: The above figure denotes percentage change

Back to TOC

19

Cloud Solutions by INDIA PISTONS

Prior to adopting a cloud solution business anticipate to gain certain benefits Top 3 benefits that are perceived to be realized by adopting: Oracle fusion enterprise resource planning cloud service and Oracle fusion enterprise resource planning for self service cloud service

Amongst other benefits such as

Lower planning and budgeting cycle times

Streamlining processes

Controlling costs and increasing visibility into spending

Increase in staff productivity

Drop in maintenance cost

Improvement in productivity

Improvement in closing process

Managing assets life cycle

Improvement in account payables

Optimizing processes

Decrease in planning and performance cost

Reduction in time in filing regulatory compliance statements

Top 3 benefits that are perceived to be realized by implementing Oracle fusion procurement cloud service and oracle fusion procurement for self service cloud service

Reduction in time in sourcing

Reduction in cycle-time in contract management process

Increase in improvement in collaboration (document sharing, effectiveness in negotiation with sourcing teams etc.)

Back to TOC

20

Cloud Solutions by INDIA PISTONS

Top 3 benefits that are perceived to be realized by adopting Oracle fusion order management cloud service

Adapt to new business needs

Customer satisfaction

Reduction in order fulfillment errors

Increase profitability per order

Promise orders more accurately

Decrease in average order cycle times

Reduction in inventory cost

Securely deploy new services and capabilities

Reduction in order handling costs

Top 3 benefits that your company intends to realise by implementing Oracle fusion product management cloud service

Improvement in product cycle time

Increase in time-to-market

Accelerate product development

Back to TOC

21

Cloud Solutions by INDIA PISTONS

Top 3 benefits that are perceived to be realised by implementing Oracle fusion supply planning cloud service

Long-term supply chain visibility and capacity planning

Improvement in forecast accuracy

Respond faster to demand changes

Amongst other benefits such as

Prevent manufacturing and supply disruptions Scaling to meet rapidly changing demand

Increase in asset utilization

Improve customer service

Reduction in inventory investment

Reduction in labour costs

Real-time collaboration

Less investment to adapt to change

Increase in planner productivity

Reduction in compliance risk

Reduction in freight costs

Organizational alignment

Top 3 benefits that are perceived to be realised by implementing Oracle fusion webcenter forms recognition cloud service

Increase in process automation Streamlining procure-to-pay operations by decreasing the time it takes for data entry, exception handling and approvals Strengthening financial controls with complete content life cycle management for financial documents Decrease in storage, transportation and labor costs Improvement in process visibility with real-time monitoring of key performance metrics

Back to TOC

22

Cloud Solutions by WIPRO

Benefits realized by implementing Oracle enterprise planning and budgeting cloud service

Reduction in time for creating analytics and dashboard

Real time information to inference the right outcome

Improved comparative analytics

Facilitates connected planning

Reduced planning cycle time

Spending quality time for analytics and insights due to time saved from compiling excel sheets

Decrease in budgetary cycle time

Increase in value added analysis

Reduction in IT cost

Higher than expected improvement in each of the categories by implementing

Oracle enterprise planning and budgeting cloud service

Oracle profitability and cost management cloud service

Insight to drivers of profit and cost across key business dimensions

Strategic modeling for financial forecast

Increase in accountability and transparency

Integrated financial statement planning

Connected planning

Top 2 benefits realized by implementing Oracle profitability and cost management cloud service

Reduction in dependence on IT Team for business processes

Cycle time for producing management reporting has reduced from 30-40 hours to 4 hours

Improvement in allocation processes

Reduction in time to produce management reporting

Decrease in manual adjustment due to automation

Back to TOC

23

KEY TAKEAWAYS

Factors that have driven the need to migrate to cloud for the Finance and IT leaders

Role of CFOs have expanded from the traditional functions

Ÿ They contribute towards operational decision making Ÿ They have become the strategic business partner

Ÿ Funding/Budget Ÿ Increased/automated testing Ÿ New or different functionality in cloud applications

Criterias’ considered in terms of importance while selecting applications offered by Oracle vis-à-vis others

Ÿ 30% improvement in productivity and 25% improvement in closing process By deploying oracle cloud solutions Ÿ 20% reduction in time to close the book Ÿ 30% time saved by

Ÿ Speed of implementation & rollout

automating procure-to-pay process Ÿ Cycle time for producing management reporting has reduced from 30-40 hours to 4 hours

Ÿ Business need met by the applications Ÿ Ease of change management Ÿ Availability of many relevant analytics & dashboard

Ÿ Implementation expertise

Higher than expected improvement in

Ÿ Integrated financial statement planning

Ÿ Increase in accountability and transparency Ÿ Leveraging analytics for better insights Ÿ Insight to drivers of profit and cost across key business dimensions

Back to TOC

24

GET IN TOUCH WITH AN EXPERT

Call us at 000 800 040 1038

Email us at letstalk_in@oracle.com

Chat with a sales expert Click here

UI Blue 80

Ocean

Back to TOC

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28

Made with FlippingBook - professional solution for displaying marketing and sales documents online