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Technology in the Business of Finance

Technology in the Business of Finance. Jacquie Cleveland Huguette Pothier NB Power. New Brunswick. Presentation Objectives. To share with you how Information Systems and Finance work together to benefit the NB Power Group To share our lessons learned. Statistics (as of Sept 2, 2008).

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Technology in the Business of Finance

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  1. Technology in the Businessof Finance Jacquie Cleveland Huguette Pothier NB Power

  2. New Brunswick

  3. Presentation Objectives • To share with you how Information Systems and Finance work together to benefit the NB Power Group • To share our lessons learned

  4. Statistics(as of Sept 2, 2008)

  5. Variability in Operating Earnings • Major drivers • hydro generation • nuclear generation • fuel prices (heavy fuel oil, natural gas, coal) • out-of-province margins • exchange rates • demand forecasting

  6. NB Power Group

  7. Management Model

  8. The Hackett Group says… • World Class Financial Organizations outperform peers in both effectiveness and efficiency • The gap between peer group & top performers represents $6.2M per $1B of revenue • Top performers spend 40% less time collecting and compiling vs. analyzing data • Top performers have 54% less Finance FTEs

  9. The Hackett Group says… • World class companies are widening their cost advantage through: • Process simplification and standardization • Global process sourcing • Leveraging “emerging” technologies

  10. Technology in Finance • Work Streams • Financial Processes • Financial Systems Center of Expertise • SAP and Other Information Security • SAP and Financial Systems Education • International Finance Reporting Standards (IFRS) • Finance/Information Technology Governance • Self Service and Electronic Information Integration • SAP Business BI • SAP Upgrade – Functional

  11. Financial Processes Drivers: • Standardized processes across Companies • leveraging technology to streamline processes • Expect 50% employee turnover in the next 10 years Current State: • Common functions/processes identified • Record and Report largely complete • Focus on planning/budgeting/forecasting (BPC) Challenge: • verbal culture, siloed processes, changing priorities, modified systems

  12. Financial Systems Center of Expertise Drivers: • Increased understanding of SAP • Well-documented end to end processes/procedures • Improved knowledge on how to use the tools • Central access point to information • Published point of contacts for expertise • Published information for learning opportunities • Sustainment processes assured Current State: • Finance COE organization formed (Feb., 2007) • Growing recognition for enterprise-wide approach Challenges • resistance to standards, siloed priorities

  13. SAP and Other Information Security Drivers: • Segregation of duties (SOD) potential conflicts identified through Virsa • Effectiveness of existing controls/approvals • Separation of information by Company Current State: • Established problem Challenges: • not a top priority

  14. SAP and Financial Systems Education Drivers: • Needs assessment in 2007 identified this as a priority • HR Strategy for self-directed learning • Personal learning plans with HR drove Needs Assessment Current State: • Learning opportunities listed & maintained • Tips & tricks active • Recognition for same need at enterprise level Challenges: • Not a top priority, customizations in SAP

  15. Disclosures of Financial Statements International Finance Reporting Standards

  16. Finance/Information Technology Governance Drivers: • Spending priorities across Finance • Work requests multiple and conflicting • Focus on short-term fixes • Spending priorities across Companies Current State: • Finance/IT Governance Committee in place for 3 years • Spending priorities clear in Finance Challenges: • Effective committee structure

  17. Self Service and Electronic Information Integration Driver: • Right business information to the right people at the right time to enable more effective business decisions (vision) • Improve trust/access to information Current State: • Accepted priority across all Companies • Multiple projects to address problem Challenge: • Product loyalty (multiple systems), data management, multiple priorities

  18. SAP Business BI Drivers: • Quality & accessibility of key information an enterprise concern • Three existing data repositories (BI, BW, DW) • Consistency of information (regulatory reporting) Current State: • BI Strategy formed • Current initiatives in Finance to improve quality & definition of data. Challenges: • Implementation of strategy, technology vs. business priorities

  19. SAP Upgrade – Finance Functional Drivers: • Continued focus on processes • IFRS • Changing needs for controls • Reporting requirements • Need to expand functionality (e.g. fast closing) Current State: • Project identified – budget established Challenge: • scope definition

  20. Lessons Learned • Develop a governance model and processes to provide a strong relationship between Finance and Information Systems • Work with Information Systems to aid in finding just-in-time IT solutions for Finance, in anticipation of challenges as well as opportunities • Support and enhance current processes while using technology to help you transform Finance’s capabilities

  21. Jacquie Cleveland Director Enterprise Finance Systems and Strategy NB Power jcleveland@nbpower.com

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