Accounting Transformation Program€¦ · FS-CD Payments Contract Portfolio System 3 1 2 WAVE 3...

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Department:

Country:

Accounting Transformation Program

New Accounting Model

CFO

Italy

13th September 2018

Internal

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Generali Group - Overview

Accounting Solution: Starting Point

Accounting Solution: Where We Are

Accounting Solution: Next Steps

Lessons Learnt

Agenda

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Generali Group - Overview


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Generali Italia

more than

4.200 Point of

Sales

8,000

employees

6 million

customers

73 billion

of AUM

In the Top 10

Most Valuable

Italian Brands

Winner of Global

Innovation Award

2017 EFMA-

Accenture

13 billion Euro

In premiums

Generali GroupOverview

Generali is an important player in the global insurance industry – a strategic and highly important sector for

the growth, development and welfare of modern societies.

Generali Group

60 countries

in the world

71,000

employees

57 million

customers

542 billion

of AUM

Among the 50

smartest companies*

of the world

One of the world’s

largest

companies**

68 billion Euro

In premiums (2017)Over 67% from outside Italy

*MIT Technology Review (2015)

** Fortune Global 500 – ranked 57th

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Accounting Solution: Starting Point


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Insurance Industry evolutionDigital Economy

The Insurance Industry is deeply impacted by Digital Economy, business digitalization, new business model

changes and complexity

New

Economic

Reality

New

Demographic

Reality

$ € ¥

New

Business

Models

New

customer

behavior

New

Products

$

New cost

pressures

▪ Speed to Market

▪ Operational Simplification

▪ Reduced Architectural Complexity

▪ Increased Transparency

Challenges

The new challenges require a new integrated Accounting platform in order to, increase efficiency and

effectiveness, reducing time and effort for providing data to the stakeholders


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Insurance Regulation EvolutionPain points

The Generali’s Accounting solution, has supported the business growth since 2001 but the new Regulatory

evolution (IFRS4, SOLVENCY 2, IFRS17, etc.) required to deeply review the current solution

The current solution is not fully IAS

compliant….

Distributed Accounting processes

(Statutory and Managerial) on several

platforms

Performance issues during data

transfer, computing and reporting

Systems and processes redundancy

with high TCO

Accounting model with different

levels of detail

Long time & high reconciliation

effort spent for monthly/yearly

closing procedures

No integrated Accounting views

among functions (Statutory and

Managerial)


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Accounting Solution: Starting Point Architecture

The Generali’s Accounting solution was supported by the following architecture:

Consolidation System

Investment Management

System

BPC on HANA

IAS Adj &Reporting Package

Overhead Cost allocation Engine

Reporting (Disclosure

Managment)

P2P

Controlling

Treasury

HR(Payroll)

FI-GL Accounting

FI-Tech. Accounting

FS-CDPayments

Contract Portfolio Systems

SAP FS-CDCollections/disbursements, such as accounts receivable and/or payable accounting, handling of payments,

processing of incoming payments and dunning

SAP FI-CIAccounting system for managing large

data volume, enabling data analysis and Industrial Accounting

Accounting Data Compression 2When the Accounting data are transferred to SAP FI-

GL, the system compresses data, deleting other details (e.i. internal LOB, etc.)

Accounting Data Compression 1When the data are transferred to SAP FI,

the system compresses data, deleting some details (e.i. Contract Number,

Customer Number, etc.)

Distributed Accounting system

BWReporting

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Accounting Solution: Where We Are


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Main Benefits & Achievements

• Extended Accounting Model with more then

new 40 Business Dimensions

• All documents are posted at line item level,

without any compression, enabling data

analysis at any Business Dimension level

• No Reconciliation effort between Statutory

Vs. Management Accounting

• Parallel Accounting principals adoption

(Local & IAS)

• Fast Closing process (3 Working Days

Saved)

• Flexible and personalized reporting, thanks

to the new SAP S/4 Reporting Capabilities

(leveraging on HANA Data Base)

• Extendible Accounting Model, ready for

adopting the latest IFRS and Business

requirements

Accounting Solution: Where We AreArchitecture

In order to properly support the new Business challenges and Regulation requirements, Generali decided to

accelerate it’s Finance transformation, adopting S/4 Central Finance solution



System

BPC on HANA

IAS Adj & Reporting Package


Reporting (Disclosure Mangmnt)

P2P

Controlling

Treasury

HR(Payroll)

FI-GL Accounting

FI-Tech Acc.

FS-CDPayments

Contract Portfolio System

Starting Point Where We AreTime



System

BPC on HANAIAS Adj & Reporting Package


Reporting (Disclosure Mangment)

Treasury

HR(Payroll)

S/4 HANA (Central Finance Scenario)

SLT

P2P

Controlling

FS-CDPayments


FI-GL Accounting FI-Tech Acc.

BWReporting

BWReporting

FI-GLLocal GAAP

FI-GLIAS Reporting


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Accounting Solution: Next StepsArchitecture

Following the Generali’s Accounting solution Roadmap

Where We AreTime



System

BPC on HANAIAS Adj & Reporting Package



Treasury

HR(Payroll)


SLT

P2P

Controlling

FS-CDPayments


Next Step – WAVE 2 (2018)

3Investment Management System fully integrated with S4H, adopting IAS Principals

1 Contract Portfolio System adapted in order to pass all New Dimension required

2 Full update of all new Accounting Model Dimensions



System

BPC on HANA

Reporting Package



Treasury

HR(Payroll)


SLT

P2P

Controlling

FS-CDPayments


3

1

2

Next Step – WAVE 3 (2021)



System

BPC on HANA

Reporting Package



Treasury

HR(Payroll)


SLT

P2P Controlling

FS-CDPayments


IFRS17 Engine

FI-GLLocal GAAP

FI-GLIAS ReportingFI-GL

Local GAAPFI-GLIAS Reporting FI-GL

Local GAAPFI-GLIAS Reporting

BWReporting


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Finance Transformation Program Lessons Learnt

Central Finance is a really flexible solution! Enabling complex Accounting Model implementation also when the Regulatory requirements are not fully clear

Fast and lean implementation with minimal effort on Training and Change Management

Central Finance capabilities enable real-time reporting at line item level with no time and performance restrictions

HANA Studio reporting tool enables business self-service reporting, reducing IT effort in report development and maintenance

AIF tool is a full and user friendly suite for managing data exchange monitoring/ correction, reducing data reconciliation bottleneck and effort

Thank You

Morgan Cristina

Pracek Gianluca

Accounting Transformation Program€¦ · FS-CD Payments Contract Portfolio System 3 1 2 WAVE 3...

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