How to Take the Pain Out of YourBudgeting ProcessIntroducing the NetSuite Financial Planning ModuleMini PeirisVP Product Marketing, NetSuite Inc. Copyright NetSuite Inc., All Rights Reserved.
Your HostessToday:Co-Presenters:Mini PeirisRob HullVP, Product MarketingCFO & FounderNetSuite Inc.Adaptive PlanningTom KellyCIO/CTOKardia Health Systems Copyright NetSuite Inc., All Rights Reserved.
AgendaWelcomeNetSuite Now Adds Financial PlanningBudgeting, Forecasting & Reportingin Uncertain TimesCustomer Success– Tom Kelly, Kardia Health SystemsLive DemonstrationQ&A Copyright NetSuite Inc., All Rights Reserved.
Financial PlanningModuleadds Copyright NetSuite Inc., All Rights Reserved.
NetSuite Fills Gap in Current BPM LandscapeLow End:Spreadsheets Manual Error-Prone Can’t Scale GuessingGameVisibility OverNetSuite75% ofcompaniesPlanningstill relyFinancialupon spreadsheetsforModuleplanning and reporting On-premiseSaaSalternatives are simply Low TCOtoo expensive and Anytime, Anywherecomplicated for mostAccesscompanies Enterprise Scalability More than 90% ofDesigned for Mid-Marketcorporate spreadsheets Implemented by Merehave material errors inMortalsthem Empowers Business Userwith Ease of UseSource:PricewaterhouseCoopers,KPMGDelivers Strategic Value Single Source of Truth Real-Time Metrics Better Business DecisionsEnterprise:SAP (BusinessObjects)Oracle (Hyperion) Expensive Slow toImplement ExtremelyComplex RequiresSpecialized Skills(BusinessAnalysts) Rearview MirrorVisibility Copyright NetSuite Inc., All Rights Reserved.
End-to-End Business Management forStrategy, Planning & ExecutionCFOCEOAnalyzeSet GoalsMeasurePlanFinancialPlanningExecutiveBusiness UnitManagerExecuteIndividual / Employee Copyright NetSuite Inc., All Rights Reserved.
NetSuite & AdaptiveBusinessPerspective FuturePlanning &Scenarios Complete Business InsightWhat have we achieved historically?What are we planning to achieve in the future?How well are we executing against our plans?What if ?Not limited to Financial Planning– Sales quota planning, headcount planning,marketing spend, services workforce planning Copyright NetSuite Inc., All Rights Reserved.
Packaged Actuals-to-Plan IntegrationToday: NOT a shelfware app– Easy one-timesetup– Auto-map COA,Business Classes,Departments,Locations– Full “multi” withNetSuite tion,multi-currency2H 09: Bi-directional power– Drill down into variance from plan to examine transaction detail viasingle-sign-on– Bi-directional data exchange for execution against plan, budgetenforcement, Dashboard metrics against performance Copyright NetSuite Inc., All Rights Reserved.
Budgeting, Forecasting &Reporting in UncertainTimesRob HullFounder & CFOAdaptive Planning9
Adaptive Planning IntroductionBackgroundCategory LeaderFoundedFounded byby ourour CFOCFO inin 20032003 TheThe leadingleading SaaSSaaS VendorVendorAlternativeAlternative toto BothBoth ExcelExcel andandComplex/ExpensiveComplex/Expensive SoftwareSoftwareFirstFirst TrueTrue SaaSSaaS OfferingOffering forforBudgeting,Budgeting, ForecastingForecasting && ReportingReporting FreeFree SoftwareSoftware && TrainingTraining FirstFirst OnlineOnline CommunityCommunity FirstFirst withwith CollaborationCollaboration OnlyOnly OpenOpen SourceSource OfferingOfferingIndustry Awards2009 RedHerring 1002009Hot Company2009 WinnerBest BI SolutionBest forUpgrading YourSpreadsheetsRapid CustomerAdoption2009 Finalist Best BusinessSoftware Solution2009EmergingVendorCool Vendor inPerformanceManagement7004251882009 CoreVendor2008Best Newcomer10Growth6420062007 10,000 usersNot For Distribution – Private and Confidential to Adaptive Planning and Client20082009E 85 Countries
Planning is Essential – In Recession & RecoveryThe CFO’s Role in Navigating the DownturnCFOs need to replace traditional budgeting and planning with a more aggressive crisisplanning mode focused on cash. They should prepare scenarios based on different economicassumptions and risks, such as the sudden unavailability of funding or bankruptcies of majorcustomers or suppliers. And they must develop contingency plans in case the scenarioscome to pass. Survival is not a certainty.“The CFO’s Role in Navigating the Downturn,” The McKinsey Quarterly, December 2008Frequent-planningFrequent ReRe-planningMoreWhat-Ifs” inMore ““What-Ifs”in FutureFutureHow many times did your company re-plan, reforecast, or create what-if scenarios last quarter?4 orMore5342314%14%Will the uncertain economic environment causeyou to re-plan, re-forecast, and perform what-ifanalyses more frequently in the next quarter?Don’t KnowD o n 't K n o w26%NoN o120114%35%29%YesYes17%50% 2X as many re-planning 3 times per quartervs. Q4 08Source: BPM Forum / Adaptive Planning poll of finance professionals, May 200911Not For Distribution – Private and Confidential to Adaptive Planning and Client
“The Last Process gBudgeting andand ForecastingForecastingBudgeting and Forecasting are Critical to Business Success,but Are the Last Remaining Manual Processes12Not For Distribution – Private and Confidential to Adaptive Planning and Client
Spreadsheet-Based Budgeting13Slow Error-ProneError-Prone Risky Costly Ineffective “ the average corporation spends 4 months and 20 – 30%of financial managers’ time budgeting.” – APQC Study 88% of Spreadsheets Audited Had Errors- Average of Surveys from Accounting Firms since 2000Missing Minus Sign Caused Fidelity’s Magellan Fund toOverstate Projected Earnings by 2.6B - CFO Research50% of companies say too time consuming and 73% planto make process changes – BPM Forum (Jan 2008)“ the budgeting process at most companies has to be themost ineffective process in management.” - Jack WelchNot For Distribution – Private and Confidential to Adaptive Planning and Client
Meeting Your RequirementsFast Controlled WellWellAligned14 Affordable Strategic Reduce Cycle Times by Up to 90%Enable More Frequent ForecastsImplement a Consistent, Standardized ProcessEliminate Excel-Based ErrorsCreate a Single “Version of the Truth”Run Unlimited Versions of “What-If” ScenariosFit Within Constrained BudgetsAvoid the Cost and Complexity of Enterprise SoftwareImprove Communication, Participation and AccountabilityProvide Deeper Analysis and Insights For The BusinessNot For Distribution – Private and Confidential to Adaptive Planning and Client
Innovative SolutionBudgetingBudgeting && ForecastingForecasting Collaborative ModelingSpreadsheet-Like InterfaceOrganizational Roll-UpP&L, Balance Sheet, Cash FlowUnlimited VersionsReportingReporting && AnalysisAnalysis Drag & Drop Report BuilderActual, Budget, ForecastMulti-Dimensional Reporting“What-If?” AnalysesCustomizable DashboardsCollaborationCollaboration && CommunityCommunity 15Discussion Groups, Online Docs,Attachments, SearchAlignment, Agility, AccountabilityBest Practices & Peer ConnectionsNot For Distribution – Private and Confidential to Adaptive Planning and Client
Excellent Fit for Companies of All Sizes16SoftwareSoftware icationsOtherOtherNot For Distribution – Private and Confidential to Adaptive Planning and Client
Customer BenefitsSignificantly reduce costs of running Finance/ERP andbudgeting & planning processes using SaaSAchieve strong fiscal control based on accurate and timelyhistorical data and up to date plansBetter plan accuracy based on sound data and centralizedplans – dramatically reducing budgeting and forecastingcycle times by up to 90%Effective execution of business strategy by improvingplanning across finance, sales, service and supportImproved business agility and increased accuracy offorecasting based on real time view of performance and theability to course correct in a timely mannerStrategically changes the way companies do business Copyright NetSuite Inc., All Rights Reserved.
Early Customer SuccessWith NetSuite and the Financial Planning module,we have been able to link together strategy,planning, and execution.We can continuously monitor actual performancewhile rapidly analyzing multiple ‘what-if’ scenarios,which allows us to be far more nimble and effectivein making both tactical and strategic decisions.James JonesDirector, Financial Planning & Analysis Copyright NetSuite Inc., All Rights Reserved.
boardsREGIONOrdersControlMany Websites12 Languages, 170 Currencies Copyright NetSuite Inc., All Rights Reserved.
Summary:End-to-End Business Management forStrategy, Planning & ExecutionReal-Time Business Performance Management– Elevate strategic value of Finance– Make better business decisions– Empowers timely course correctionsDramatic TCO Compared to On-Premise– Sophisticated functionality typically costing millions from on-premisevendors– Unique dynamic drill-down from top level results to transactional detailfor variance analysisBest-in-Class SuiteCloud Integration– Integration driven by NS-BOS development platform– Brings two leading SaaS vendors together: NetSuite & AdaptivePlanning Copyright NetSuite Inc., All Rights Reserved.
Customer SuccessTom KellyCIO/CTOKardia Health Systems Copyright NetSuite Inc., All Rights Reserved.
Improved Financial HealthKardia Health and 2nd WindDeveloped to bring MayoClinic - proven cardiologysolutions to marketPremier fitnessequipment dealerHQ in MinneapolisExclusive dealer formany top brandmanufacturers50 employees100 locations in 10 statesOver 300 employeesRevenue 100 million Copyright NetSuite Inc., All Rights Reserved.
2nd Wind : Managing Growth AmongstUnprecedented ChangeEnvironmentRequirementsDoubled over an 18month periodSaaSAlready running NetSuiteRolling forecastsNeeded to protect profitmargins - despite weakretail sales environmentMore realistic short-termand long-term goal settingSpreadsheets unable toaccommodate constantchangeWorkflowUnlimited what-if analysisCollaboration Not realistic sticking to astatic one-year budget Copyright NetSuite Inc., All Rights Reserved.
Transformative Results:Increased Business AgilityFlexible Budgeting Process– From static annual budget torolling forecast– Increased overall accuracyAccurate Bottom Up Sales Forecasts– Sales managers across 100 storelocations can input and updatesales projections for forecast period– Sales team gained clear view into howperformance impacts bottom lineKeyKey BusinessBusiness ImpactImpactAvoided 20 percentrevenue declinescommon amongretailers in a sloweconomy– Collaborative forecasting processimproved accuracyResponsive to Changing Conditions– Multi-dimensional reporting and what-ifscenarios to margins Copyright NetSuite Inc., All Rights Reserved.
Operating Environment at KardiaOpportunityGovernment mandate tomedical industry adopttechnology to lower costsand improve healthcareForecast AccuracySpreadsheets not up tomanaging monthly changeand adjusting projectionsExpense ControlTravel and expense costsrepresented an unusuallyhigh % of operatingbudget - Not in line withpeersVisibilityInadequate tools to makedepartment headsaccountable for theirbudgets Copyright NetSuite Inc., All Rights Reserved.
Transformative Results:Accountability to Manage ExpensesCollaborative PlanningImproved accountability– Managers see actual vs. budget– Long Range Forecasting– 5 year forecast process integrated intothe annual planning and budgetingprocessContinuous Forecasting– Monthly operating forecastCombined– Timely and accurate data andcommunication flow Copyright NetSuite Inc., All Rights Reserved.
End to End Financial Transformation Actual dataIntegrated ERP and CRM Operational AnalyticsContinuous planningStrong accountability Actual vs. BudgetCollaborative forecastingIntegration Strategy, planning, and execution linkageIntegration between actual and planAble to continuously monitor performance Copyright NetSuite Inc., All Rights Reserved.
Demonstration Financial forecasting is crucial, and even more so when times aretough and the future is more uncertain than usualYou need visibility into current business progress and the ability toevaluate scenarios quicklyAdaptive Planning gives you the tools you need:–––––28Scenario analysis: What if sales are 20% lower? What if I cut 5% of staff?Comparative reporting: budget vs. forecast, scenario comparisonsRolling actuals, forecasts: 9 months actuals from Netsuite, 3 months forecastComplete, integrated financial statements: quickly assess future cash impactDriver-based analysis: build calculations based on key business driversNot For Distribution – Private and Confidential to Adaptive Planning and Client
Simple 4-Step Integration Process1. Set up connection2. Map categories to dimensions3. Map (auto map) dimension values4. Import Actuals29Not For Distribution – Private and Confidential to Adaptive Planning and Client
Drill-Through Into Transactions30Not For Distribution – Private and Confidential to Adaptive Planning and Client
Drill-Through Into Transactions31Not For Distribution – Private and Confidential to Adaptive Planning and Client
Questions & Answers Copyright NetSuite Inc., All Rights Reserved.
SAP (BusinessObjects) Oracle (Hyperion) . Performance Management 2009 Red Herring 100 2009 Emerging Vendor 2009 Finalist Best Business Software Solution. 11 Not For Distribution – Private and Confidential to Adaptive Planning and C