1. Simple Finance – the finance transformation at La Trobe University Greg Hill – La Trobe University Nicole Seselj - SAP

2. ©2015 SAP SE or an SAP affiliate company. All rights reserved.2 Internal Complex business processes Large organizations can spend between 40% and 80% of their time on non-value- added activities (BCG, Complexity Report) Complex technology 73% percent of executives said the complexity of data is the largest IT challenge (Forrester, 2013 report) Where does complexity hide in enterprises? Complex decision making “Large global organizations have created so much complexity that businesses often struggle to bring good ideas to the marketplace profitably.” (McKinsey, 2014) Scattered informationTechnology limitationBatch orientation 10.2 % or $ 237 B* of profits lost by top 200 global companies due to hidden costs of complexity *Global Simplicity Index, 2013

3. ©2015 SAP SE or an SAP affiliate company. All rights reserved.3 Internal SAP HANA SAP Business Warehouse powered by SAP HANA SAP Business Suite powered by SAP HANA  Real-time analysis  Real-time reporting  Real-time business  OLAP and OLTP together  SAP HANA Enterprise Cloud for SAP Business Suite on SAP HANA  In-memory platform  Instant financial insight  No aggregates  Single source of truth  Simplified data model  Advanced processing  New user experience  On Premise and cloud SAP HANA, the great simplifier of enterprise software 2011 2013 2012 2014 2015 SAP Simple Finance powered by SAP HANA

4. ©2015 SAP SE or an SAP affiliate company. All rights reserved.4 Internal SAP S/4HANA in finance COSPCOEPCOBKBKPFBSEG BSIS BSIKBSETLFC1GLT0 SAP Simple Finance40 updatesinserts SAP Finance with aggregates and indices105 no indices no aggregates no redundancies

5. ©2015 SAP SE or an SAP affiliate company. All rights reserved.5 Internal SAP S/4HANA 3 Key Enabler to run digital transformation for key enterprises SAP HANA REAL-TIME & SIMPLIFIED SAP FIORI SAP HANA AS THE UNDERLYING PLATFORM Ÿ OLAP & OLTP MERGE Ÿ IN-MEMORY COMPRESSION Ÿ INCREASE IN SPEED SIMPLIFICATION OF APPLICATIONS AND UNDERLYING DATA MODEL Ÿ NO AGGREGATES & NO INDICES Ÿ HIGHER FLEXIBILITY & THROUGHPUT Ÿ DATA FOOTPRINT REDUCTION SAP FIORI AS THE USER EXPERIENCE (UX) PARADIGM; Ÿ CROSS-APPLICATION USER EXPERIENCE Ÿ WEB-BASED, ALL DEVICES Ÿ ROLE-BASED Ÿ DECISIVE Native Cloud

6. 6 ©2015 SAP SE or an SAP affiliate company. All rights reserved. Close Books in a Day Task acceleration and automation Intra-period reconciliation Soft close and simulation (planned) $ Optimize Working Capital Group cash management Working capital analytics Continuous cash collections Invoice and discount optimization Ensure Compliance Fraud detection and prevention Audit management Plan Dynamically Integrated business planning Predictive forecasting Budget management (planned) Value Scenarios of SAP Simple Finance ”“ Real-time analytics enabling real-time processes Centralize Finance Real-time financial and operational reporting Harmonized internal and external reporting Group reporting in multi-ERP and M&A situations Flexible reporting in matrix organizations Centralized process execution AnalyzePlan Transact

7. ©2015 SAP SE or an SAP affiliate company. All rights reserved.7 Internal Example: SAP Simple Finance – finance transformation with instant insight Forecast of project profitability  Prediction and simulation to evaluate financial impacts of strategic business options  Integrated liquidity forecasting using multidimensional real-time analytics Near real-time period closing  Better process oversight through new management dashboard  Flexible on-the-fly aggregation, no time delays of data loss due to replication Real-time revenue and cost analysis  Interactive drill down to explore root causes for deviations  Optimization strategies to improve company’s overall financial health

8. 8 ©2015 SAP SE or an SAP affiliate company. All rights reserved. Universal Journal in SAP Accounting powered by SAP HANA − Data redundancy − Reconciliation efforts − Low flexibility ERP Financials on classic database HANA views on the fly + No reconciliation + High flexibility + High performance + Reduced data volume SAP Simple Finance powered by SAP HANA FI Line ItemsCO Line Items Totals & Indices ProcessingAnalytics Universal Journal ProcessingAnalytics

9. La Trobe University is a leading Australian university with metropolitan & regional campuses across Victoria and partnerships across Asia Pacific Global reach with over 35,000 students and 3,000 staff Asset base of $1.5B and annual revenue of $600M Future Ready Implementation Integrated and coordinated planning with measurement of performance across the University Direct financial and human resources to agreed institutional priorities Clearly defined measurable targets for each priority Support clear management accountability La Trobe University - Overview

10. Excellence and creativity in the key world issues Attracting and retaining outstanding students and exceptional staff Digitally connected campuses Game changing partners Global ‘Top 500’ university Sustainability - intellectual, physical and financial resources La Trobe University - 2017 objectives

11. La Trobe Future Ready - Four Key Pillars Brilliant Basics Graduate Employability Enhanced Student Experience Ranked in Top 500 External Factors Higher Education Reform Proposal Increasingly competitive marketplace Domestic and International Demand

12. History of SAP @ LTU SAP 4.0b implementation in 1999 (subsequent upgrades to 4.6, 4.7 and ECC6.0) FICO, Assets, HCM & Payroll Further rollouts of ESS / MSS, PS, GRC, SLcM Reporting – BO (incl. BPC, SSM), BW, PCM, Fiori apps

13. The need for change Complex customisations progressively hindering improvements Over-reliance on Funds Management LTU Organisational Change Interdependency with other systems projects Month-end and reporting improvements needed New COA (Desire to use New GL) Infrastructure refresh Staff development

14. ICT Vision In the next two years… Establish trusted partners Deduplication and simplification Focus on the application of IT, not the implementation Implement Digital/Cloud first strategy Move away from managing assets to managing information and people with a strong focus on innovation and integration

15. Institutional ICT Caught in the Middle Challenge: Filling the area between consumer innovation, business responsibility and diverse range of researcher and teaching and learning requirements … blending institutional uniqueness Institution Demands  Compliance  HA/DR Strategies  Security  IP Protection  Robustness  Backup and Recovery  HR Integration Student & Staff Demands “Dropbox is easy and it’s free …” “I’m going to do it whether you support it or not...” “Why can’t I …” “Fine - I’ll use XYZ”

17. ICT Planning Principles Develop value adding strategic partnerships across, industries, suppliers and institutions Interactive immersive real time video Collaboration supports cross campus federation Tectonic Shift Mobility, Big Data Analytic, Cloud, Social ERP in the CLOUD AGILE is the new NORMAL STRATEGY determines STRUCTURE Ubiquitous WIRELESS coverage

18. ICT Strategy based on creating time Research Student First Digital Future Cloud Provide integrated systems to support student experience For eg: Student portal Social Media Monitoring and Engagement Tool delivery Accelerated connectedness Mobile First Create time through simplification of business processes Enable trust for researchers to manage their own environment Leverage collaborative solutions eResearch enabled Support T&L digital strategy through administrative and research projects Support student success strategies (ie: AEWS) Focus shift from implementation to IT to application of IT Be bold, fail fast Delivery of meaningful information and decision support tools to the end user Managed services Enable and support staff & students to BYOD Tectonic shift

19. The journey so far… Simple Finance Global pilot FI, CO, AA, PS, MM, integrated with BPC and BW (Analysis for Office) Transition to NWBC for all users Integration to PO (Process Orchestration) SAP Learning Hub for LTU ICT team Best practice & transformational Drive quality & consistency Simple & efficient process Post it once Post it right Simplified security Self service reporting Standardise where possible Eliminate customised rpts Principles Benefits Growth with flexibility Simplified & meaningful

20. SAP Simple Finance - NWBC

21. Cost Centre Documents & Reports => Display Cost Centre (KS03) Project System Display => Overview: WBS Elements (CN43N) Frequently used transactions

22. Ability to easily export to Excel Chart of Account (List) Reports (WebDynPro)

23. Prompt Screen for Analysis for Office Analysis for Office

24. Report Layout using sFIN Hierarchies and Master Data Objects Drag and Drop Ability Analysis for Office

25. Drill-down by any Master Data Objects Analysis for Office

26. Overall… Exposure to HANA Cloud (incl. uptime) ✔ SFIN delivers business needs ✔ Business uptake of new solution ✔ Supports LTU strategy ✔ Integration back to on-premise ✔ Staff development ✔ Data Migration ✗ Initial Environmental setup ✗ (was) ✔ (is) Roles & Responsibilities ✗ moving to ✔ Reporting ✗ moving to ✔

27. Greg Hill Director, Enterprise Applications La Trobe University Greg.Hill@LaTrobe.edu.au