國際集團集中管理（英）

1、Ufsoft ERP forum 2002.08.08 Hangzhou,Group management of global operations -Finance management in the 21st century,Introduction.,General accounting. Tax.Accounts receivable.Accounts payable.Payroll.Employee Exp

2、enses.Inventory.Fixed assets.Project / job trackingInternal cost distribution.,Financial forecasting.Cash management. Foreign exchange.Insurance / risk management.Investment / borrowing.,Achieving “excellence” wi

3、ll entail new practices across all finance functional areas.,Functional Areas,“Common Practice”,“Good Practice”,“Finance Excellence”,Setting targets based on accounting measures:EPS/ROE/ROI,Performing basic capital/port

4、folio analysisPerforming initial M&A appraisals,Managing risk against rigid rulesConducting treasury operationsBuilding tax planDeveloping funding plan,Compiling business plansIndependently approving or developi

5、ng capital and operational budgets,Processing transactionsCompleting basic accounting/general ledger functions,Monitoring past financial performance against budgets,Reporting financial information against a schedule,Ide

6、ntifying financial impact of business strategyUnderstanding drivers of value creation,Analysing background and source data for:Drivers and trendsAccuracyCertaintyDeveloping alternatives for capital/portfolio structu

7、re,Developing options and recommendations around funding, tax and treasuryEvaluating financial and business risks in context of business objectives,Standardising and streamlining budget processUsing activity-based metr

8、ics to identify budget priorities,Automating transaction processingDeveloping best-in-class operations against:CostSpeedQuality,Managing improvements of operational processesEstablishing value based measuresIntegra

9、ting measures to ensure alignment and consistency,Developing streamlined reportingProducing real-time dataAdapting output to needsResponding to investor queries,Contributing to development of business visionIdentifyi

10、ng and modelling likely scenariosPlanning and leading long-term value creation,Proactively identifying external and internal capital allocation optionsEvaluating strategic alliances and opportunities,Empowering operati

11、onal staff to control risksManaging risk against business principlesPositively managing risks as potential opportunities,Developing budgeting process that:Is rapid and reacts to opportunitiesIncludes contingency plan

12、sFacilitating budget as the process which matches planned activities against the strategy,Outsourcing of non-core activities,Combining a balanced set of financial and non-financial measuresAligning measures with busine

13、ss strategy and tactical goals throughout organisationCommunicating strategy through choice of measures,Introducing predictive perspective to reportsManaging investor relationships and expectations,Performance Manageme

14、nt,Communication,Financial Operations,Cost Planning and Budgeting,Funding, Tax and Treasury,Investment Management,Financial Strategy,Finance as a powerful tool to run a corporation.,Frequent comparisons of Corporate repo

15、rting activities with statutory regulationsMinimal number of Corporate accounts with cost justification of increasesLimited number of reporting entitiesUnit accounting operates within Corporate policies and procedures

16、 but maintain a separate ledger(s) with a flexible chart of accountsCommon Chart of AccountsAutomated consolidation upload from unitsOriginator responsible for quality (zero-error tolerance) Automatic interface betwe

17、en General Ledger and subsystemsTransactions are coded with sufficient information for multiple reporting requirementsGeneral Ledger contains only summary data of subsystem activity,Automated account reconciliationSta

18、ndard general ledger packagesMulti-currency and multi-lingual accounting packagesFinancial database for analysis & reportingAutomatic inter-company posting, reconciliations and eliminationsInter-company charges c

19、onsolidated and funded at one time each monthReal-time integrated financial system with continuous close (Event-Based Accounting) Automation of controls / clerical functionsIntegrated financial / operational database

20、Support for:Activity Based ManagementResponsibility Reporting,Index.,Finance transformation since the 1990’s. Finance control over global operations.Case studies.,,,,Index.,Finance transformation since the 1990’s. F

21、inance control over global operations.Case studies.,,,,The agenda is shifting. . .,Recent agendaFinance process redesignImprove the control frameworkImprove operational efficiencyImplement ERP applications Redesig

22、n the role and organization of finance,Impact of eBusinessIncreased pressure for productivity and “value” added FinanceSpeed and transparencyAdvances in technologyChanges in the the way business is doneDistributio

23、n of skills across the organizationGlobalisation,Changing expectationsValue added finance Accessible and visible business intelligence & performance measuresGreater speed, flexibility, responsiveness and cost ef

24、ficiencySelf service / better serviceCollaboration and connected communitiesMulti-skilled employees,,,1990’s,21st Century,,,,,,. . . from transaction processing to value-added decision support.,Number Cruncher,21st Ce

25、ntury Finance Partner,Decision Supporter,Number Manipulator,,1990’s,21st Century,,Transactions MinimizedProvider of Significant Strategic valueRealigned to operate like a business,Significant Efficiencies Obtai

26、nedImplementing Analytical Solutions,Reducing Cost of Finance Building Effectiveness Foundation,Non Value Added Function,,,,,Legend,Decision supportControlReportingTransaction Processing,,,Shared services or outso

27、urced financial transaction processing,Core finance functions,,,,Few companies consider finance to be achieving its maximum efficiency and effectiveness potential.,According to CGEY’s RapidFx Benchmark Study - Only 18%

28、of companies utilize a Group/Sector/Corporate data warehouse.Only 46% of companies have implemented shared services as a key part of the company’s business strategy.Of those that do utilize shared services, only 17% ha

29、ve 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

30、 key enabler for shared services.Few companies have been successful in leveraging statistical analysis software for internal and external reporting needs.Few companies are succeeding in driving maximum business value f

31、rom their technology investments by automating and routing transaction processing.,,,,,All financial processes are coordinated around a common goal of improving shareholder value.,Shareholder Value,Enterprise value ma

32、ximization,Transactional processing,Management insight,,,,Coordinated transformation,How does finance optimize, grow, downsize, and invest in order to drive shareholder perception?,How does finance synthesize and analy

33、ze data to provide true business intelligence supporting critical decisions?,How does finance significantly improve or even get out of the traditional finance transaction business?,,,,,,Quantitative and qualitative benef

34、its of a 21st 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 in th

35、e business units. Reduced costs due to optimization of transaction processing spend.Reduced costs due to the elimination of disconnected, finance-related technology purchases.,Quantitative,Qualitative,Accurate informat

36、ion to react/recover more quickly when the economy changes.Understanding of how to combine cost cutting efforts with effectiveness improvement efforts to move along the transformation path.Evolution to a business partn

37、ering model between finance and revenue generators. Finance savvy enterprise/culture.,,,,Finance therefore becomes a proactive unit in the firm..,,Proactive Agenda,,High fixed cost business modelFTE cost reductionsMat

38、rix organization Transactional processing consolidationSemi-integrated technology platformsLarge reporting packages,Renewed shareholder value focusFinancial transparency and integrityData qualityStreamlined organiz

39、ational accountabilityVariable cost of infrastructure and workforceProductivityOrganizational adaptabilityTechnology as an enabler,,Operational excellence,Reactive Agenda,,1990’s,21st Century,,,,,,,. .to possess the

40、key characteristics of the 21st century.,Value-added customer service delivery model.Highly skilled finance decision support resources.Financial skillsets “embedded” in key business areas.,Enhanced alignment of strateg

41、y and operations.Integrated budgeting, forecasting, measurement, analysis.Optimized transactional efficiencies through outsourcing and shared services. Integrated processes across the financial supply-chain of trading

42、 partners.,,Advanced web-enabled self-service and productivity enabling tools.Integrated, corporate portals with secure links to applications.Integrated projection and analysis tool suites.,People,Process,Technology,,,

43、,Index.,Finance transformation since the 1990’s. Finance control over global operations. Case studies.,,,,A global group can only start to control if it has the right finance function.,,,,One of the first steps is to r

44、ealise that the board’s top responsibility is to the shareholders. Only then are changes possible leading to board reshuffles and the creation of a global CFO.Many Asian MNC’s have only recently hired a CFO. Sony did

45、so 3 years ago. Fujitsu hired its first global CFO in March 2002. Why this change ?It is global competition and global requirement to publish transparent accounting that has pushed companies to improve their finance de

46、partment. And a proper finance department in turn then assists management in building the right structure to manage a business such that it becomes competitive. CFO’s help top management push through changes that are n

47、ecessary for a company’s financial well-being, and sometimes survival. CFO’s push through workforce reductions…like at Fujitsu in Japan. CFO’s are no longer only focused on numbers. They are becoming more and more invol

48、ved in all aspects of the business. It is not uncommon that large MNC’s ask the CFO to take over the CEO job.,Source: Factiva 2002, “The new CFO of the Future” KPMG,Finance helps large groups develop strategies.,,,,Thre

49、e core aspects to change in business is creating a new role for CFO’s.GlobalisationNew techniques and conceptsTechnologyMajor challenge for CFO’ is to formulate and communicate strategy, both internally and externall

50、y. 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, “The new CFO of the Future” KPMG,Index.

51、,Finance transformation since the 1990’s. Finance control over global operations. Case studies.,,,,General Electric is able to track all its global businesses in real-time.,,,,,Full digitisation of GE’s back office: G

52、E 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 all GE businesses in real time: GE is currently leveraging tec

53、hnology 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 understan

54、ding of customers needs,,,,,Source: GE, CGE&Y Analysis,Nissan’s financial reporting was a disaster.,,,,Nissan Motor Co. Ltd. is the world’s 36th largest corporation with operations in 97 countries and investments in

55、 1,400 companies. In 1999, Nissan entered into a historic agreement with Renault S.A. of France when Renault purchased a 36.8% controlling interest in the Japanese auto manufacturer. What did Renault discover ?Nissan d

56、id not have one single set of financial reports - making it virtually impossible to make any decisions.One region’s revenue could not be compared to another. The system was not well-organized and rigorous enough for a $

57、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

58、 objectives (global Group consolidation within 7-10 working days) Provide flexible, but integrated, management database and reporting.,Source: CGEY,Financial re-engineering was one ingredient in Nissan’s recovery after

59、 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 com

60、mon consolidation system with Renault.Now all 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 GAP, the US GAP

61、 and European international accounting standards. With this database, it is now possible to extract the reports according to:Company.Business function.Market.Product.,Source: CGEY,Daiwa Securities Group Inc.,,,,Dai

62、wa is Japan’s 2nd largest securities firm with revenues of US$37.6 billion. Three years ago, it scrapped its board in favour of a smaller executive style board with outside directors.In 2001, they created for the first

63、 time a head of global finance. The head of global finance has carried out major tasks:Clean up Daiwa’s balance sheet by writing off US$1.1 billionCentralised group’s cash managementUpgraded ITInstalled a rigorous r

64、isk management system which tracks risks on a daily basis.Daiwa is very conscious of shareholder value.Fund managers have noticed this “financial turnaround” and increased their stake in Daiwa from 17% to 32% today.,So

65、urce: Factiva,IBM has streamlined its organisation through ‘Total Quality Management’ in its finance department.,,,,IBM,Objectives,Maximize shareholder value,TQM-based process re-engineering (concerning all functions th

66、roughout the company),Focus on Total Quality Finance aiming to maximise customer satisfactionLinkage of strategic planning and financial operations,Role and Functions,Exclusive responsibility for main finance decisions

67、Finance managers positioned as inspector and auditor,,Partnership with operational units to boost efficiency in product development, customer relations and basic financial transaction processingFinance managers positio

68、ned as facilitator and coach,Organisation,Decentralised:Each country ran its own treasury centre,,Core processes have been centralised (eg treasury)Small teams made up of experts specialising in specific processes acro