Reviewthese requirements for final research paper and presentation due end of term. A minimum of 10-12 pages with at least 5 current peer reviewed sources. Discuss presentation criteria with...

Slide 1
Computer based financial system Implementation of SAP HANA in AGL Energy
Presented By: Hernan Figueroa
1
Overview of the Project
Implementation of a computerised accounting system in AGL
AGL is an Australian energy giant
They want to install the SAP S/4 HANA platform
It will strengthen its newly established ERP system
Well integrated, transparent and digital transformation
Tata Consultancy Services Limited (TCS) to automate AGL’s end-to-end regression test suite
SAP project by Tata Consultancy Services Limited (TCS) amounts to $16.85 million
The Accounting system which is implemented in AGL is SAP and the module used to conduct, prepare and generate reports for the preparation of financial statements is FICO module. AGL is an Australian energy giant. They want to install the SAP S/4 HANA platform to strengthen its newly established ERP system.
They want a well integrated, transparent and digital transformation of its entire operations in various segments like procurement, human resources and in their financial accounting process.
This project is initiated to make AGL become competitive in this ever changing business environment and improve the customer experiences. It has been realized by AGL that with the help of SAP testing processes will help them to achieve the objectives of the launch of the Customer Experience Transformation Program.
To implement and install the SAP system in AGL’s system and after an extensive evaluation and series of automation testing it was decided to allot Tata Consultancy Services Limited (TCS) to automate AGL’s end-to-end regression test suite, to deliver and improvise the test data management strategy and collaborate and integrate the new SAP system with the existing SAP delivery toolsets.
The budget estimated by AGL for implementation and settling of the SAP project by Tata Consultancy Services Limited (TCS) amounts to $16.85 million which will help to improve the customer experience transformation program in AGL. Under this program there will be a commitment towards development of innovative products and services which will allow the customers a greater degree of control over the supply of its energy.
With the implementation of SAP it will assist AGL to being one of the early adopter of this accounting and management software and will augment them to efficiently perform load forecasting accurately, smart meter reading through predictive analysis and enhance the customer consumption pattern through profiling and segmentation.
2
Overview of the Company
AGL Energy is a 184 year old Australian energy supply company
They provide almost 20% of the total electricity in Australia
Strength of AGL is growth, transformation and social license
Deliver a great and efficient customer experience
AGL Energy is a 184 year old Australian energy supply company delivering electricity, gas and telecommunication services throughout Australia to residential households, small, medium and large businesses. They provide almost 20% of the total electricity in Australia with a capacity of 11208 megawatt. The three essential strength of AGL is growth, transformation and social license.
Thus, all these are directed towards deliver a great and efficient customer experience. To enhance its growth capacity more and in a well integrated and planned manner, AGL Energy is on the way to implement SAP HANA throughout its system for accurate forecasting and proper management of the huge volume of customer database.
3
Budgeted financial statements
    Income Statement of AGL Energy    Budgeted    Actual    Actual    Actual    Actual
    Period Ending:    30th Jun 2021    30th Jun 2020    30th Jun 2019    30th Jun 2018    30th Jun 2017
    Total Revenue    12768    12160    13246    12816    12584
    Revenue    12768    12160    13246    12816    12584
     Growth in Revenue    5%    -8%    3%    2%     
    Other Revenue, Total         -    -    -    -
    Cost of Revenue, Total    8311    8512    9440    9070    9192
     Growth in Cost of Revenue    -2%    -10%    4%    -1%     
    Gross Profit    4457    3648    3806    3746    3392
    Total Operating Expenses    10376    10556    11774    10352    11596
    Selling/General/Admin. Expenses, Total    1070    1059    1075    1022    893
    Research & Development         -    -    -    -
    Depreciation / Amortization    761    753    625    568    484
    Interest Expense (Income) - Net Operating    -348    -345    165    -842    357
    Unusual Expense (Income)    30    30    -5    -3    199
    Other Operating Expenses, Total    552    547    474    537    471
    Operating Income    2392    1604    1472    2464    988
    Interest Income (Expense), Net Non-Operating    -232    -116    -127    -155    -160
    Gain (Loss) on Sale of Assets    -    -    -    -    -
    Other, Net    -64    -63    -66    -65    -64
    Net Income Before Taxes    2097    1425    1279    2244    764
    Provision for Income Taxes    613    410    374    662    225
     Tax Rate    29%    29%    29%    30%    29%
    Net Income After Taxes    1484    1015    905    1582    539
    Minority Interest    -    -    -    -    -
    Equity In Affiliates    -    -    -    -    -
    U.S GAAP Adjustment    -    -    -    -    -
    Net Income Before Extraordinary Items    1484    1015    905    1582    539
    Total Extraordinary Items    -    -    -    -    -
    Net Income    1484    1015    905    1582    539
    Total Adjustments to Net Income    -    -    -    -    -
    Income Available to Common Excluding Extraordinary Items    1484    1015    905    1582    539
    Dilution Adjustment    -    -    -    0    -
    Diluted Net Income    1484    1015    905    1582    539
Assumptions: The above income statement of AGL Energy for the year 2021 has been estimated based on certain assumptions. To estimate the growth rate of revenue a minimal growth rate of 5% has been assumed. For estimation of the cost of revenue a growth rate of -2% has been assumed. For estimating the growth rate in cost of revenue the average growth rate of the previous years have been considered. For calculating the tax rate the tax amount is divided by the net income before tax and the average of all the previous years from 2017 till 2020 was considered for estimating the tax rate of 2021 of AGL Energy.
We have considered 1 year budget estimation to analyse and evaluate the net income AGL Energy is able to generate after implementation of SAP in its business operations and using it for generating financial reports. The ultimate reason for implementation of the SAP in AGL Energy was to enhance the customer experience. The economic value of a company is lost as the customer experience is lessened or lost. This gets directly reflected in the financial statement through loss in revenue and profitability as well as decrease in the price of the shares of the company. Source: KPMG- How much is customer experience worth? Mastering the economics of the CX journey; September 2016
4
Budgeted financial statements - Analysis
Revenue grew in the year 2018 and 2019 but due to global slowdown and pandemic covid-19 there was a decline in the growth of revenue in 2020
Cost of revenue we can see that there has been a gradual decrease in the cost of revenue over a period of time from 2017 till 2020
Due to increase in...