Financial Process

Analytics
 Agenda
1 Overview

2 Our solution

3 Value proposition

4 Our team

5 Selected credentials

B | Financial Process Analytics

Financial Process Analytics: Overview

Financial Process Analytics | 3

Setting the context…

With finance being the key partner to the business, it can offer value way beyond the traditional role of providing the standard set of financial
reports. The C-Suite can leverage financial data to gain actionable insights.

Some of the questions that financial analytics can answer are:

1. Which customer segments are offering the highest margins and revenue and how are those going to change in the future?
2. Am I making the right investment decisions?
3. Am I using the data to identify the potential fraud indicators?
4. How do the business decisions affect key value drivers such as sales, margins, etc.?
5. How do customer relationships affect working capital?

Key trends and drivers

D 1 Rapid expansion of the business

Lack of confidence in
Revenue leakage R
reported numbers
I 2 Increased complexity in the process
Revenue
V
leakage
E 3 Increased regulatory risks and compliance
Policy non compliance Existence of fraud R
indicators
S 4 Rapid expansion of the business

4 | Financial Process Analytics

Financial Process Analytics
We can help

Our Financial Process Analytics solution helps CFOs provide forward looking strategic
business insights and enables management to make more fact based decisions, with more
confidence.
It can offer the C-Suite real-time monitoring and traceability from overall trending to
transaction level actionable insights, and can play a significant role in:
• Transforming huge volume of data into usable management information
• Bringing out trends and patterns in business data, interrelationship between people,
resources, processes and performance
• Helping identify potential exceptions to internal controls
• Enabling strategic data driven decision-making and day-to-day management.
• The solution can be offered as an on-site solution or an off-site service - including
periodic refreshes (managed services).

Financial Process Analytics | 5

 Our solution

6 | Financial Process Analytics

Our approach
Implementation of Financial Process Analytics

Our approach
We have a 4 stage solution consisting of Identify, Design and Develop, Deliver and Sustain. Each step of our approach is explained below.

Identify Design and Develop Deliver Sustain

• The identify stage will help • Interview the process owners • Analyse the results and discuss • Conduct workshops to help
in setting the context, to understand the processes with the process owners the client view and interpret
understanding client systems, and identify the metrics • Modify business rules, as the dashboards.
pain points and finalize the • Define the business rules for needed to remove false • Build a sustainable model and
scope and operating model the metrics and confirm the positives, if any provide analytics playbook
• Define the timelines for same with the management • Re-run the queries for final which will be like a user
analytics development • Design and develop the output manual that covers the work
• Define the project analytics engine covering • Discuss with management and performed
management protocols data review, transformation agree upon action plan with
and processing timelines

Our approach
• Scope and value charter • List of analytics tests/KPI’s • Analytics model, ETL design • Training material (if any)
• Agreed upon timeliness along with business rules • Analytics dashboards covering • Analytics playbook
• Operating model Process MIS and KPIs • Presentations to the
• Financial analytics results management committee

Note: The above approach is illustrative and needs to be co-developed with the client based on the client needs

Financial Process Analytics | 7

Analytics Operating Model
Analytics deployment model
Onsite model Offsite model
Data extraction

• Client IT team extracts relevant tables and • Client IT team extracts relevant tables and
reports from ERP and provides to EY Analytics reports from ERP and sends the data to
team analytics team via mails/Parcel Post/SFTP/EY
Delivers.

Excel
Data preparation

• EY Analytics team works at the client’s office, • EY Analytics team prepares the raw data tables
prepares the raw data tables received and load it received and load it into the tool for analysis
Prep into the tool for analysis

Flat file Other

• EY Analytics team processes the analytics • EY Analytics team processes the analytics
scripts for the agreed-upon tests, including a scripts for the agreed-upon tests, including a
Execution

quality review of the output quality review of the output

Report results

• Analytic reports are generated, populated into • Analytic reports are generated, populated into
dashboards and shared with the client teams dashboards and shared with the client teams

8 | Financial Process Analytics

Value proposition

Financial Process Analytics | 9

Benefits of financial analytics

Financial analytics can help clients leverage their data to gain valuable insights that can be translated to immediate action to correct the present
state where needed, or reveal the path to a successful future state

• Identify hidden trends and anomalies early thereby reducing the review and
Financial confidence auditing efforts later
• Increases confidence in the numbers reported and processes followed

• Real-time monitoring and traceability from overall trending to transaction level,

Business and risk increasing transparency
insights • Provides forward looking strategic insights and enables management to make
more fact based decisions with more confidence

• Reports on controls exceptions at a transaction level at any time for improved

Enhanced efficiency management oversight
and improved quality
• Reduces cost and increases savings

10 | Financial Process Analytics

Our team

Financial Process Analytics | 11

FAAS analytics team overview

Resources experienced in information

• 600+ professionals with experience across analytics landscape management, descriptive and
250 diagnostics analytics
• Experience in analytics strategy, analytics enablement and analytics
People

delivery
• Highly leveraged team with a mix of business, technical and statistics Resources experienced in advanced
analytics consisting of statisticians,
skills 350 PhDs and domain experts

• Seamless integration with engagement teams worldwide, including Scripts available in scripts library for
‘Onsite – Offsite Model’ standardized processes and sectors
Process

• Integrated quality review within projects apart from firm’s

requirements Continuous innovation on new
analytics applications as well as
enhancing existing solutions

Analytics workbench of tools (Indicative)

Access to a suite of analytics tools for every analytics requirement SAS SQL Tableau
Technology

• Investments in tools for ETL, analytics, reporting and visualization

• An analytics lab and access to state-of-the-art cloud infrastructure for SPSS ACL Spotfire
analytics
R SSIS Python

12 | Financial Process Analytics

Selected credentials

Financial Process Analytics | 13

Portfolio dashboards for financial
performance monitoring and diagnostics
Indian commercial broadcasting television network
Use cases:
• Automated report generation process
• Dashboards with drill-downs
• Visualizations to aid business insights

Key challenges in the current process:

• Time required for report preparation
• Static reports limit ability to drill-down and conduct portfolio
diagnostics
• Low visualizations limits business insights
• Business performance information is not available real time

• CFO Dashboard comprising:

• P&L
• Cash flow
• Consolidation of all company financials
• Balance sheet analysis (financial ratios, linking loans with interest, etc.)

• Portfolio Analysis Dashboard comprising:

• Ad-sales analysis
• Web analysis
• Ecommerce analysis

14 | Financial Process Analytics

Visual storyboarding and dashboarding
Leading manufacturing company based out of India

Use cases:
Capability:
• Building financial analytics dashboards for sales, marketing and finance reporting with data sources from
Descriptive and visual storyboarding
multiple areas

Our appraoch:
• Understand the current/new reporting requirements
• Identify the data source and gaps (if any) to meet the above requirements
• Schedule facilitated business requirement sessions and confirm the requirements
• Extract the required data working with the SAP and other teams
• Build dashboards iteratively and request sign-off from identified focus groups
• Documentation and user training
• Design and develop store procedures for Data transformation using MS SQL/T-SQL
• Develop dashboards, visualizations, drilldowns using Tableau

Value added:
• EY built 5-6 integrated dashboards with granular views and visualizations
• EY built transformation rules to process the data and load the data in the database environment( MS-SQL
Server Database)
• EY team developed visualizations based on detailed discussions and agreed during facilitated sessions during
requirement gathering workshops with stake holders

Financial Process Analytics | 15

Rule based analytics: Financial analytics
Leading manufacturing company based out of India

Capability: Use cases:

Descriptive and visual storyboarding • Rule based analytics for P2P process to assess the efficiency of internal controls over financial reporting

Our Approach:
• Identified high risk areas for further testing
• Test of effectiveness of internal controls over financial reporting

Value Add:
• Segregation of duties: Observed same person who has created a vendor master and also made transactions
such as creation of purchase order, goods receipt and invoice
• Less than 14% of the total active vendors had complete information in the vendor master; of which there were
vendors with invalid data
• Inefficiencies in ordering (same vendor same material same day different prices) led to an opportunity cost of
INR57 crores
• Duplicate payments with potential recovery opportunities identified and reported

16 | Financial Process Analytics

Revenue analysis
Leading technology company in India
The objective of this analysis was to look at revenue based on the
following categories:
• Revenue overview: Provides overview of current year vis-à-vis
previous year revenue across geographies
• Customer and project level analysis: To show customer and
project level information as per revenue type and geographies.
We have plotted five data metrics to identify profit making and
loss making customers and relative performance of their projects
• MoM project trend: To check how each project has performed on
month on month basis.

Insights:
• Prior year/current year numbers related India region, which
has highest revenue among geographies. Further to it, it gives
the customer/project level information on profit/loss making
customers
• The metric “avg. gross margin and avg. utilisation” metric (third
swim line) helps in identifying these customers. The customer “JG”
and “EF” is below par customers when compared to overall level

Financial Process Analytics | 17

Visual data profiling
Large client in the chemical industry based out of India

Potential duplicates for

further investigation

Changes by IT personnel

Spikes near reporting

periods

Low frequency terms Variable terms creating inconsistency

18 | Financial Process Analytics

Our offices
Ahmedabad Chennai Hyderabad Mumbai
2nd floor, Shivalik Ishaan Tidel Park, 6th & 7th Floor Oval Office, 18, iLabs Centre 14th Floor, The Ruby
Near C.N. Vidhyalaya A Block, No.4, Rajiv Gandhi Salai Hitech City, Madhapur 29 Senapati Bapat Marg
Ambawadi Taramani, Chennai - 600 113 Hyderabad - 500 081 Dadar (W), Mumbai - 400 028
Ahmedabad - 380 015 Tel: + 91 44 6654 8100 Tel: + 91 40 6736 2000 Tel: + 91 22 6192 0000
Tel: + 91 79 6608 3800 Fax: + 91 44 2254 0120 Fax: + 91 40 6736 2200 Fax: + 91 22 6192 1000
Fax: + 91 79 6608 3900
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1st Floor, SCO: 166-167
Sector 9-C, Madhya Marg
Chandigarh - 160 009
Tel: +91 172 331 7800
Fax: +91 172 331 7888

Financial Process Analytics | 19

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EYIN1807-006 Gopal Kuchibhotla

ED None Email: Gopal.Kuchibhotla@in.ey.com
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