Transform Data to Insight
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What if your finance organization had a faster, simpler way to transform operational transactions into meaningful insight? View this slide deck with Workday and KPMG as we explore new technologies and solutions for streamlining the analysis of vast amounts of data in the changing world of finance.
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Transform Data to Insight
- 1. Transforming Data into Financial Insight with Workday and KPMG
- 2. Transforming Data into Financial Insight with Workday and KPMG Looking Forward with Workday is a webinar series designed to give you insight into how your organization can do more with Workday. This series will share how we support how you manage your people and your business. Topics will include solution strategies and roadmaps, specific use cases, live demos, and customer stories.
- 3. This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, Workday’s business results and directions could differ materially from results implied by the forward-looking statements. Forward-looking statements include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancements or upgrades to our existing applications or plans for future applications; and any statements of belief. Further information on risks that could affect Workday’s results is included in our filings with the Securities and Exchange Commission which are available on the Workday investor relations webpage: www.workday.com/company/investor_relations.php Workday assumes no obligation for and does not intend to update any forward-looking statements. Any unreleased services, features, functionality or enhancements referenced in any Workday document, roadmap, blog, our website, press release or public statement that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday, Inc. services should make their purchase decisions upon services, features, and functions that are currently available. Safe Harbor Statement
- 4. kpmg.com/socialmedia The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities. © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization
- 5. Help Slides Media Player Resource List Q&A Housekeeping Items Speakers Survey Housekeeping Items
- 6. Workday Confidential Brian Anderson Principal KPMG US Samantha Buchner Solution Marketing Director Workday Michael Bambo Director KPMG US Thomas Kelley Principal Financial Solution Consultant Workday
- 7. Agenda 01 The Finance Hub 02 Workday Intelligent Data Foundation 03 Demo 04 Q&A
- 8. 8 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. What is a Finance Hub? GeneralLedger & ERP Financial Reports Management Reports Custom Apps Spreadsheets Transaction Systems Functional Applications Finance Hub Data Validations Mapping Rules Calculations Accounting Rules Audit & Reconciliation Source System integration Transactional, business event, & balance data from disparate source systems Standardization & Validation Source system records standardized & undergo rules- driven validations Accounting Rules Engine Transactions generate accounting entries based on preconfigured rules GL & ERP Integration Applying applicable reference data and dynamically close the books on a demand basis Analysis & Reporting Develop data-driven analytical insights, based on business dimensions & transaction attributes A Finance hub solution provides a robust accounting engine that centralizes the organization's accounting rules, integrates and aligns data from disparate source systems, and automates the generation of accurate, detailed, and auditable accounting journal entries Regulatory Reports
- 9. 9 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Where does Finance Hub fit within the architecture? The following outlines where the Finance Hub fits within the high-level Finance architecture and which upstream/downstream systems interact throughout:
- 10. 10 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. What is driving interest in a Finance Hub? Trends driving adoption in a Finance hub include: • Rapid acceleration of leap frogging from legacy systems to maturing cloud-based ERP platforms • Opportunity for finance organizations to drive transformational initiatives and manage cost pressure created by efforts to modernize platforms • Shift to more frequent reporting and analytic cycles (i.e, monthly/quarterly to daily) driven by regulatory and management reporting • Desire to have more integrated financial, regulatory and management reporting (e.g., customer and product profitability) • Move to centralized business event-based accounting in order to improve ability to respond to regulatory demands and business driven initiatives • Increased complexity of tracing data lineage from final reports back to source environments
- 11. 11 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Why use a Finance Hub? Automate critical finance processes from source systems through to the core GL, eliminating error prone, time- consuming, and manual tasks Unlock new capabilities and drive standardization Integrate, validate, enrich, and standardize transaction-level data from disparate source systems while providing clear data lineage Automate reconciliations between GL and business transactions across multibasis accounting Drill through from GL journal entries to underlying business transactions and source systems Generate multi-basis accounting (i.e., US GAAP, IFRS) from a single transaction event Extend your chart of accounts and business dimensions by using configurable data elements (e.g., Loan ID, Customer, etc.) Quickly react to changing regulatory requirements Consistent accounting treatment across disparate sources
- 12. 12 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. What is the most appropriate methodology to utilize?The Finance Hub implementation can follow either an Agile approach or a traditional Waterfall approach. Typically, our teams have deployed a “hybrid agile” approach to successfully implement an integrated Finance Hub for our clients. What is a Hybrid Agile Delivery approach? ̶ Follows structured delivery stages that fit together with the agile approach: ̶ Upfront scoping and final testing stages such as System Integration Test (SIT) and User Acceptance Test (UAT) ̶ Agile sprint-based activities for parallel and iterative stages of Design, Build & Configuration, Unit Testing, and System Testing Why follow the Hybrid Agile Delivery approach? ̶ Rapidly ramps up to deliver a working prototype, followed by iterative sprints to continuously refine the design and configuration ̶ Minimizes possible implementation risks ̶ Creates tangible outcomes throughout the implementation ̶ Involves users in key decision making along the Finance modernization journey
- 13. 13 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Where can large programs go wrong? Key risks and mitigation strategies are listed below. 31 2 4 Chart of Accounts (CoA) Adoption Shift to new CoA does not provide the right foundation to drive business transformation and as a result, Finance user revert back to current usage of the chart — Design core CoA to support the primary financial statements for financial (SEC), regulatory (FRB, FDIC, etc.) reporting and the starting point for management reporting calculations — Approach source systems with “holistic” strategy to capture all attribution needed for various types of calculations, even if they don’t end up in the GL — Start data sourcing activities early and use production quality data to make sure all “edge” cases are captured — Allow enough time to perform extensive functional unit testing during the configuration of the accounting rules – KPMG’s approach is to have functional consultants thoroughly testing rules, as they are configured, to minimize defects identified during Integration testing and UAT — Perform quick “validation” that planned level of granularity in each element will meet the intended reporting needs from the GL — Document clear definition of usage for each element with examples (e.g., when to use cost center versus project segment) — Establish cross functional data governance council to manage CoA changes, to drive consistency, and to enforce adherence to usage — Document change impacts early in the project and empower change champions throughout each business unit to assist with transition from old to new CoA — Create a decision criteria framework to facilitate Finance Hub design patterns and associated business benefits — Ensure the right technical accounting expertise to support automation of multi GAAP posting — Leverage KPMG banking event model to providing starting point for common asset classes (loans, mortgage, deposits, etc.) — Ensure availability of bank specific source system experts to assist with data source attribute identification and mapping Accounting Rule Complexity Effort and complexity to extract accounting rules from source systems offsets the business value and leads to sub-optimal design or partial deployment of Finance Hub Alignment of Financial, Regulatory, and Management Reporting If the underlying sourcing strategy and data architecture is only designed to support financial reporting, separate solutions might be required for regulatory and management reporting Rework of accounting rules Lack of accurate and complete data from source systems during the accounting rule configuration phase could lead to high levels of defects identified late in the project schedule (requiring rework of rule configuration) KPMGApproach/MitigationStrategyKeyrisks
- 14. 14 © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Is there a process taxonomy available? The following highlights a sample of KPMG’s level three process taxonomy for the Transact to Record Process, which complements the historical Record to Report process taxonomy.
- 15. Workday Intelligent Data Foundation
- 16. 483 EXABYTES OF DATA BY 2025
- 17. What if you could turn business events into accounting and insight faster…
- 18. What are the sources of my claim, and their associated accounting? What are my policies by product or sales channel? Which policies are driving our profits and losses?
- 19. Policy Debit Customer retention Policy satisfaction score Policy Sales Channel Policy Sales Region Policy settlement cycle time Car make Car model Credit Policy agent Policy type Policy management Net promoter score Car mileage
- 20. Deeper Insight What are the sources of my claim, and their associated accounting? What are my claims by sales category or sales channel? What policies and claims are driving our losses? Claim System (AC) Ryan Taylor AS: AC ICS Claims System; ED; 01/01/2019; LU: 05/24/2020, 9:35:18.199 PM AC ICS Claims System - 05/24/2020 20:54 (Completed) AC ICS Product And Channel Mapping > > > Revenue Category: Auto Products
- 21. Go beyond the limits of traditional ERP
- 22. Policy Debit Customer retention Policy satisfaction score Policy Sales Channel Policy Sales Region Policy settlement cycle time Car make Car model Credit Policy agent Policy type Policy management Net promoter score Car mileage
- 23. Accounting Rules Engine Business Process Orchestration Always on Audit Data Transformation and Enrichment Data Lineage and Error Handling with Drill Back Claims Commissions Policies DEBITS CREDITS Ingest Operational Data Enrich Data Create Accounting Surface Reportable Insights Policy Region Customer Retention Policy Type Car Make
- 24. Accounting Rules Engine Business Process Orchestration Always on Audit In the Hands of Accounting and Finance
- 25. Intelligent Data Foundation Policies (40 systems) Claims (15 systems) Treasury (10 systems) Commissions (10 systems) Workday Data Foundationzz Workday Data Foundation Workday Accounting Center General Ledger (GL) Summarized Journals Detailed Accounting Journals Accounting Rules EngineIngest and Enrich Reporting & Analytics Benchmarking Financial Reportingand Analysis Operational Analysis Variance Reporting Management Reporting Data Lineage and Error Handling / Reporting Drill Back / Always on Audit and Controls FinanceFront Office IT
- 26. Why the Intelligent Data Foundation is Unique Designed for and managed by accounting and finance Data enriched and transformed into accounting Insights powered by one analytic engine
- 27. Accounting Center and Prism Analytics Customers
- 28. Customer Use Cases Insurance Lending Other • Process Premium and Claim transactions and automate premium (UPR) and commission (DAC) spreads • Create a cash subledger to bring in cash transactions, reconcile to bank statements and create accounting • Generate accounting from brokerage and gain global view of brokerage revenue, client revenue, and support acquisitive growth • Process commercial lending • Track and record loan events throughout the lifecycle • Capitalize operational costs into business assets • Payroll and production accounting • Transform historical data and PeopleSoft journals and vouchers (supplier invoices) • Ingest and create accounting from Employee Stock Program data
- 29. Early Value • Reduced complexity • Automated accounting creation, and plan to automate 70+ additional manual use cases • Improved flexibility and scalability • Simplified reconciliation, reduced data volume sent to reconciliation system • Gained greater business ownership and control, and lowered cost of ownership • Improved financial analysis, data lineage, & error correction Customer Journey Use Case • Process Premiums and Claims and generate financial transactions • Includes complex mapping rules, pass through and event-based accounting • Needed to calculate Unearned Premium and Deferred Acquisition cost • Needed error handling and transparent orchestration capabilities Scope • Unearned Premium: 30 million rows per month • Deferred Acquisition Costs: 14 million new rows per month, 300M rows of historical amortized data spread over the life of the policy, summarized into 40,000 rows for ease of processing • Written Premium: 4 million rows per month • Loss Reserve: 3 million rows per month • Paid Loss, Recoveries: 2 million rows per month
- 30. With Workday Accounting Center, we’ve been able to retire our custom legacy accounting hub solution and have simplified our technology environment, improved flexibility and scalability, and provided greater business ownership and control of software to our accounting and finance team. Now, financial data is provided to accountants using business language, without the need for technical interpretation. Financial reporting is done in Workday, and we’ve been able to improve the systems used for financial analysis, data lineage, and error correction. And, we’re pleased that we’ve already reduced our cost of ownership while also being able to introduce new capabilities faster. Bharat Shahdadpuri, AVP, Workday Finance & Data Management
- 32. • Finance maintained user interface to configure accounting and monitor data transformation • Validates against core FINS worktag and reference data • Supports complex mappings, logic & enrichments What is an Intelligent Data Foundation? Workday Accounting Center and Workday Prism Analytics • Creates & stores detailed accounting at instrument level (claim / policy / loan) • Automatically reconciled and drillable from the GL back to the source transaction • Stores fully balanced accounting • Industry leading self-service analytics & visualization tools • Supports granular slicing and dicing of balance sheet and P&L • Supports product level operational and trending reports • Supports broker-level productivity and performance analytics Central Configurable Accounting Rules Creates Journals from Raw Events Detailed Accounting and Advanced Analytics
- 33. Turning Business Events into Insight Ingest Raw Business Event Transaction Type Txn Type Company Product Code Currency Product Family Type Date Amount Dept Relationship Product Type Customer FICO LTV Billing Amount Claim Expense 311 Acme 100005030 USD Auto New 04/04/20 15000 456 NA GAP Smith, Joe 750 92 $35000
- 34. Enrich Generate Accounting Ingest Report Turning Business Events into Insight Accounting Center Detailed Journal Journal & GL Worktags Additional Attributes Company Currency Entity Center Account GL Date Account Desc. Affiliate Class of Business UW Year DR CR Txn Type Code Product Type Product Number Txn Date Product Channel Store Region Time Customer Customer State Store State GMS USD 100 5001 20101 1-Feb-18 Accounts Receivable 000 300 2010 5000 311 WIC 100005030 1-Feb-18 Marine Direct LIAB NE AM Smith, Joe NY NJ GMS USD 100 5001 50101 1-Feb-18 Claim Exp 000 300 2010 5000 311 WIC 100005031 1-Feb-18 Marine Direct LIAB NE PM Smith, Joe NY NJ
- 35. Teresa Serrano Global Controller DEMO Drillable reporting Transparent drill to detail data Designed for accounting Rules maintenance by business users Process orchestration and audit Supporting process configuration and record audit Insights from one source of truth Deliver insights to varied data constituencies Process Flow What we will see
- 36. DEMO
- 37. Teresa Serrano Global Controller DEMO Drillable reporting Transparent drill to detail data Designed for accounting Rules maintenance by business users Process orchestration and audit Supporting process configuration and record audit Insights from one source of truth Deliver insights to varied data constituencies Process Flow What we will see
- 38. Thank you for joining us! Join us in these upcoming sessions: Workday Confidential December 1, 2020 Tuesday 10 AM PT Workday on Workday: Best Practices for Building a Financial Data Hub with Workday Financial Management and Prism Analytics December 8, 2020 Tuesday 10 AM PT Belonging & Diversity: Learn how Netflix is using Workday’s Solutions to VIBE in their Workplace December 15, 2020 Tuesday 10 AM PT Why Investing in Digital Technologies Now Can Radically Change Your Business December 16, 2020 Wednesday 10 AM PT Using Prism to Manage Your Data Through an M&A: Learn How Warner Bros is Using Workday’s Prism Analytics to Establish One Source of Truth December 17, 2020 Thursday 9 AM PT Unlock New Value from your Workday Investment: Discover the Power of Workday Extend Apps
- 39. Q&A
- 40. For a changing world. TM