#NP#_JU/vS8MwEP1XRj4prl1Sm67tt/6Ugc6q06kcSNamGKhNS IuCY/+7 lwnH8e7ee7y 7I2lbkh6J7TcdSQmjFMs1cloi5XawKsUsLxi/joKAreMY+SsaUHoJK7IknXJ+gcI7MelxUYuDVb9KI3U4b1Vr9aT7edHoH2kbrcbZ2TYlko/bJs/2dMsoz96ewvdmv3tg1f365RUl vUFFkQI8T9JOAFP7qYYOQWYMniQA bnUrBoCd/DIA Rf1xI0dpxaD8b59GvjEuyPwnIZ rPICl4XlV17FEWJ14Y56WXcDcmYZbxOmJBhc+f/gA=_#NP#
© Generali
Department:
Country:
Accounting Transformation Program
New Accounting Model
CFO
Italy
13th September 2018
Internal
© Generali
Generali Group - Overview
Accounting Solution: Starting Point
Accounting Solution: Where We Are
Accounting Solution: Next Steps
Lessons Learnt
Agenda
© Generali
Generali Group - Overview
#NP#_JU/vS8MwEP1XRj4prl1Sm67tt/6Ugc6q06kcSNamGKhNS IuCY/+7 lwnH8e7ee7y 7I2lbkh6J7TcdSQmjFMs1cloi5XawKsUsLxi/joKAreMY+SsaUHoJK7IknXJ+gcI7MelxUYuDVb9KI3U4b1Vr9aT7edHoH2kbrcbZ2TYlko/bJs/2dMsoz96ewvdmv3tg1f365RUl vUFFkQI8T9JOAFP7qYYOQWYMniQA bnUrBoCd/DIA Rf1xI0dpxaD8b59GvjEuyPwnIZ rPICl4XlV17FEWJ14Y56WXcDcmYZbxOmJBhc+f/gA=_#NP#
© Generali
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
© Generali
Accounting Solution: Starting Point
#NP#_JU/vS8MwEP1XRj4prl1Sm67tt/6Ugc6q06kcSNamGKhNS IuCY/+7 lwnH8e7ee7y 7I2lbkh6J7TcdSQmjFMs1cloi5XawKsUsLxi/joKAreMY+SsaUHoJK7IknXJ+gcI7MelxUYuDVb9KI3U4b1Vr9aT7edHoH2kbrcbZ2TYlko/bJs/2dMsoz96ewvdmv3tg1f365RUl vUFFkQI8T9JOAFP7qYYOQWYMniQA bnUrBoCd/DIA Rf1xI0dpxaD8b59GvjEuyPwnIZ rPICl4XlV17FEWJ14Y56WXcDcmYZbxOmJBhc+f/gA=_#NP#
© Generali
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
#NP#_JU/vS8MwEP1XRj4prl1Sm67tt/6Ugc6q06kcSNamGKhNS IuCY/+7 lwnH8e7ee7y 7I2lbkh6J7TcdSQmjFMs1cloi5XawKsUsLxi/joKAreMY+SsaUHoJK7IknXJ+gcI7MelxUYuDVb9KI3U4b1Vr9aT7edHoH2kbrcbZ2TYlko/bJs/2dMsoz96ewvdmv3tg1f365RUl vUFFkQI8T9JOAFP7qYYOQWYMniQA bnUrBoCd/DIA Rf1xI0dpxaD8b59GvjEuyPwnIZ rPICl4XlV17FEWJ14Y56WXcDcmYZbxOmJBhc+f/gA=_#NP#
© Generali
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)
#NP#_JU/vS8MwEP1XRj4prl1Sm67tt/6Ugc6q06kcSNamGKhNS IuCY/+7 lwnH8e7ee7y 7I2lbkh6J7TcdSQmjFMs1cloi5XawKsUsLxi/joKAreMY+SsaUHoJK7IknXJ+gcI7MelxUYuDVb9KI3U4b1Vr9aT7edHoH2kbrcbZ2TYlko/bJs/2dMsoz96ewvdmv3tg1f365RUl vUFFkQI8T9JOAFP7qYYOQWYMniQA bnUrBoCd/DIA Rf1xI0dpxaD8b59GvjEuyPwnIZ rPICl4XlV17FEWJ14Y56WXcDcmYZbxOmJBhc+f/gA=_#NP#
© Generali
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
© Generali
Accounting Solution: Where We Are
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© Generali
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
Consolidation System
Investment Management
System
BPC on HANA
IAS Adj & Reporting Package
Overhead Cost allocation Engine
Reporting (Disclosure Mangmnt)
P2P
Controlling
Treasury
HR(Payroll)
FI-GL Accounting
FI-Tech Acc.
FS-CDPayments
Contract Portfolio System
Starting Point Where We AreTime
Consolidation System
Investment Management
System
BPC on HANAIAS Adj & Reporting Package
Overhead Cost allocation Engine
Reporting (Disclosure Mangment)
Treasury
HR(Payroll)
S/4 HANA (Central Finance Scenario)
SLT
P2P
Controlling
FS-CDPayments
Contract Portfolio System
FI-GL Accounting FI-Tech Acc.
BWReporting
BWReporting
FI-GLLocal GAAP
FI-GLIAS Reporting
© Generali
Accounting Solution: Next Steps
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© Generali
Accounting Solution: Next StepsArchitecture
Following the Generali’s Accounting solution Roadmap
Where We AreTime
Consolidation System
Investment Management
System
BPC on HANAIAS Adj & Reporting Package
Overhead Cost allocation Engine
Reporting (Disclosure Mangment)
Treasury
HR(Payroll)
S/4 HANA (Central Finance Scenario)
SLT
P2P
Controlling
FS-CDPayments
Contract Portfolio System
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
Consolidation System
Investment Management
System
BPC on HANA
Reporting Package
Overhead Cost allocation Engine
Reporting (Disclosure Mangment)
Treasury
HR(Payroll)
S/4 HANA (Central Finance Scenario)
SLT
P2P
Controlling
FS-CDPayments
Contract Portfolio System
3
1
2
Next Step – WAVE 3 (2021)
Consolidation System
Investment Management
System
BPC on HANA
Reporting Package
Overhead Cost allocation Engine
Reporting (Disclosure Mangment)
Treasury
HR(Payroll)
S/4 HANA (Central Finance Scenario)
SLT
P2P Controlling
FS-CDPayments
Contract Portfolio System
IFRS17 Engine
FI-GLLocal GAAP
FI-GLIAS ReportingFI-GL
Local GAAPFI-GLIAS Reporting FI-GL
Local GAAPFI-GLIAS Reporting
BWReporting
© Generali
Lessons Learnt
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© Generali
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