Digital Finance Strategies for Utilities
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The document outlines the transformation of finance functions through digital finance solutions, emphasizing the need for automation, data analytics, and greenfield budgeting for cost optimization and efficiency. Key indicators of a 'transformed' finance function include the utilization of technology to enhance planning, streamline processes, and enable better resource management. It highlights the importance of adapting these solutions to meet client needs and presents the expertise of the consulting team behind these implementations.
Digital Finance Strategies for Utilities
- 2. Digital Finance can help you solve key challenges of today’s finance function “TRANSFORMED” FINANCE OF THE FUTURE DIGITAL FINANCE Are your finance operations time and cost efficient? Future-proof finance departments will have to leave legacy systems and rely on digital technologies for improved planning, streamlined processes and better cost management. QUESTIONS CHALLENGING TODAY’S FINANCE FUNCTION Agile Efficiency Driven Situational Reactive Resource Optimized Cost Savings Oriented Do you utilize the full potential of automation? Do you use data analytics to ensure transparency and accountability? Page 2Digital Finance
- 3. Our Digital Finance solutions address the key indicators of a “transformed” finance function DIGITAL FINANCE SOLUTIONS Greenfield Budgeting Robotic Process Automation Data Analytics DIGITAL FINANCE INDICATORS Agile Efficiency Driven Situational Reactive Resource Optimized Cost Savings Oriented Page 3Digital Finance
- 4. Greenfield Budgeting is targeted at cost optimization and savings Re-evaluate your budget from line zero to reduce costs, increase transparency and achieve greater profits. Greenfield Budgeting involves justification of all budget line items. 1 Greenfield Budgeting approach can be altered and adapted as per client’s need GREENFIELD BUDGETING WHAT IS REQUIRED? HOW YOU WILL BE IMPACTED Assist in budget planning and optimization Typical process for Greenfield Budgeting1 Increase organization wide transparency Present consolidated view of spending across all BUs Define clear next steps for process improvement Deliver cost savings of around 25% DEMAND ANALYSIS Identify and justify required services MEASURE IDENTIFICATION Identify cost saving measures IMPLEMENTATION Plan and roll-out identified measures Page 4Digital Finance
- 5. WHAT IS REQUIRED? RPA can help your finance function to operate more efficiently and smartly 1 RPA approach can be altered and adapted as per client’s need HOW YOU WILL BE IMPACTED RPA is based on virtual robotic users that don’t affect the existing systems and helps in reducing redundant human functions. 30 – 50% of applicable rule- based finance activities have the potential to be fully- automated. Free up employee capacity for more value-adding tasks Typical process for RPA1 ROBOTIC PROCESS AUTO- MATION (RPA) Aid in cost savings ranging from 10 – 30% Increase process speed up to 4 times Reduce human errors and improves quality IDENTIFICATION & SELECTION Select potential activities for automation OPTIMIZATION & PILOT Test for automation potential on pilot activities IMPLEMENTATION Transfer of processes for automation OPERATIONS Realize benefits through automation Page 5Digital Finance
- 6. WHAT IS REQUIRED? Data Analytics makes finance function agile, responsive and performance driven HOW YOU WILL BE IMPACTEDDATA ANALYTICS Page 6 SCOPE DEFINITION Define requirements, scope, visualization, expectations BUILD Configure and build data & analytics platform TRAIN Launch dashboard and train relevant staff on usage MAINTAIN Refine content and ensure regular maintenance Data analytics can help organization to build new revenue streams or optimize the current business processes, while increasing overall transparency. Customized data dashboards can acquire, manage, analyze and present financial data in an interactive setup. Deliver real-time data to improve finance operations Reduce time and effort in data reporting Improve financial planning and forecasting through better insights Ensure more accountability and control over data Digital Finance Typical process for Data Analytics1 1 Data Analytics approach can be altered and adapted as per client’s need
- 7. We are able to provide a multidisciplinary team with vast experience in strategy, finance and digital Relevant topics of expertise • Data Strategy • Digital Analytics & Transformation • Process Automation Max is an expert in Digital and Data strategy at innogy consulting. With vast exposure across many industries, he brings 10+ years of experience in analytics and data management. MAX DEITMER Partner, Digital Practice SEBASTIAN KOENIG Director, Digital and Data Relevant topics of expertise • Finance Strategy • Budget Forecasting • C-Level Support Oliver has over 22 years of management consulting experience and 17 years with energy clients from around the globe. OLIVER RIEDEL Managing Director US Relevant topics of expertise • Corporate Strategy • Cost Optimization • Digital Finance Jonathan has 12+ years of experience as a consultant and a P&L leader. Previous employers include A.T. Kearney, Alcoa and the KION Group. JONATHAN CHEN Principal Relevant topics of expertise • Data driven Business Models • Corporate Data Strategy • Business Process Automation Sebastian has 16 years experience in digital, e-commerce and working with data for optimization and reporting across various industries. Page 7Digital Finance
- 8. We have extensive experience in delivering finance projects supported by our Digital Practice Digital Finance Page 8 8 3 13 28 35 8 In 2017, our 200+ consultants delivered 91 projects, 40% of these in the Finance segment Conventional Generation, Supply & Trading Renewables Grid Retail Finance Other 100 101 Data Strategy Data Visualization Data Management Our dedicated Digital Practice supports technical implementation of Digital Finance solutions Digital Practice Mission Statement We discover new business opportunities or optimization potential based on digitalization and realize measurable value by implementing our solutions Key Support Areas Dedicated Staff • Growing team of 20+ full-time digital specialists • Data scientists, engineers, analysts and experts on demand
- 9. innogy consulting combines best-in-class management consulting with deep energy expertise ENERGY DNACONSULTING EXPERTISE Upstream • Renewable power generation Midstream • Supply & Trading • Distribution networks electricity + gas Downstream • Sales to end consumers Digital FinanceLean Management Change Management Strategy Development Cost Reduction Financial Analysis & Benchmarking Re-organization Process Optimization Innovation • Advanced analytics • New digital business models We have consulting expertise across diverse segments and a proven track-record of impactful projects. We are an energy focused consulting firm – with access to experts from the innogy Group. Page 9Digital Finance
- 10. Since 1981 we have been helping utility clients succeed through our unique access to global energy experts GLOBAL PRESENCE ACCESS TO INNOGY GROUPHISTORY LEADING PRACTICES innogy consulting started its operation in 1981 and in past 37 years it has transformed from a small organization to a global management consulting firm offering various services to utility clients. We offer traditional management consulting expertise within the following practices: Strategy, Operations, Change Management, Digital, and LRN Lab. We have worked on projects spanning across the entire energy value chain. Our extensive knowledge in management consulting is backed by 45,000 global energy experts from the innogy Group, who have practical utility experience and help us in delivering real world recommendations and exceed clients expectations. In order to provide the best client service we have local offices around the world: Essen, Berlin, Munich, Frankfurt, Den Bosch, Prague, London, Dubai, Boston. We staff our projects on a global basis, leveraging the unique expertise of each team member. Page 10Digital Finance
- 11. JONATHAN CHEN Principal 200 Portland Street, Boston, MA-02114 +1-857-928-6386 jonathan.chen@innogy.com Page 11Digital Finance