Network and Route Performance Management

Transcription

1 Solution in Detail Passenger Travel and Leisure Executive Summary Solution Overview Contact Us Network and Route Performance

2 Running a Profitable Travel and Leisure Business Running Profitably Controlling Costs Providing Traveler Service Travelers expect fast, convenient, reliable, and safe service when traveling and enjoying leisure activities. The way to differentiate a brand is to exceed travelers expectations. The travel and leisure business is growing, but to meet profit targets in this competitive environment, carriers need to tightly control costs while offering high-quality service. Leisure travelers have high expectations for convenience and quality of service. They want seamless journeys with minimal interruptions and stopovers. Carriers must offer reliable, fast, and safe service throughout every itinerary. Customers take for granted that carriers will adhere to the highest safety and environmental standards. In emerging countries, an ever-growing middle class means the travel and leisure business is growing. This is creating increased demand for services such as air transportation while worsening conditions at impacted facilities like airports. Service networks need to offer a wide variety of options, but designing them is complex. Even more challenging is making sure appropriate responses are available when surprises occur. Costs must be continually monitored and controlled at the same time high service quality levels are maintained. The ability to perform root cause analysis and scenario planning with what-if simulation functionality enables carriers to continuously improve operations and meet company objectives. 2 / 15

3 Controlling Costs and Managing Performance Running Profitably Controlling Costs Providing Traveler Service Cost and performance management is all about understanding where money is made and lost. Managing costs starts with measuring them, and this must be done correctly. By analyzing cost to serve, carriers can assign costs to such dimensions as routes and aircraft. Accurate, timely insight into profitability at the individual network level is mandatory. Otherwise it is practically impossible to make good decisions about capacity allocation. Best-Run Passenger Travel and Leisure To manage costs and performance properly, carriers must: Identify cost and profit drivers Define flexible and user-driven modeling Analyze powerful what-if scenarios and perform simulations Integrate data from multiple sources Report the activities of business users Rapidly assess the impact of change on financial performance Drive scheduling and yield decisions in a timely and effective manner Carriers must have a system in place that automates processes, supports fact-based decision making, and helps manage the complexities of the business in a structured way. Systems must provide the depth and flexibility of modeling to do what-if simulations, perform root cause and impact analysis, and adjust planning parameters easily. By running integrated SAP applications to manage performance, carriers get business user oriented dashboards and metrics for performing business intelligence with predictive analysis. 3 / 15

4 Staying Profitable with Best-in-Class Service Running Profitably Controlling Costs Providing Traveler Service Use route and network profitability management software from SAP to gain insight into the profitability of routes, regions, and the complete network. Accurately manage route and network profitability and perform sophisticated analysis. Gain a deep understanding of the levers affecting costs and profitability. Identify underlying causes of underperformance, test potential impacts of changes, and take action to reduce costs and optimize profitability. Analyze and maximize flight, route, and network profitability to increase margins by means such as eliminating unprofitable legs 34% Greater operating margin when cost accounting supports cost analysis across multiple dimensions Source: SAP Performance Benchmarking Increase revenue per available seat miles to meet growth targets Increase passenger load factors to best use available assets 4 / 15

5 Running Profitably Controlling Costs Providing Traveler Service Solutions from SAP for performance management in the travel and leisure industry support a closed-loop process from strategy to execution. They provide an open, unified, and flexible platform for state-of-the-art analytics and a basis for full transparency and visibility into revenues, costs, and profits along all relevant dimensions. These include individual flights, complete routes, and the entire service network. SAP applications provide a backbone for capturing all transactions with associated costs, revenues, and more at the most granular level. With enterprise-wide data warehouse access to consistent, reliable, and accurate data for the whole enterprise and all individual user types, carriers are equipped to leverage data as an asset. Integrate with various operational and source systems that provide both structured and unstructured information. Provide an open platform for business analytics covering business intelligence (BI) and advanced analytics techniques such as data mining, predictive analysis, planning, and simulation. Provide mobile access to time-critical and decision-relevant information everywhere and in real time, independent of user interface or device. Offer customers the option to leverage the cloud for BI reporting, for example, or financials on demand. Use the flexible reporting and planning environment powered by in-memory technology from SAP to make informed decisions based on insights delivered in real time. 5 / 15

6 Profitably Deliver Best-in-Class Traveler Service Solution Overview Profitability and Cost Analysis Financial Performance Why SAP Profitability and Cost Make better decisions, gain better control of organizational costs, and improve profitability of routes and networks. Gain access to all detailed financial and operational source data through regular and reliable updates. Obtain full visibility and transparency into cost and profitability drivers. Accurate costing enables optimal allocation of resources. Perform flexible cost and profitability analysis to drive faster, fact-based. and more timely decisions. Assess the impact of various scenarios through what-if simulation to improve financial performance and better link strategy with execution. 6 / 15

7 Profitability and Cost Analysis Solution Overview Profitability and Cost Analysis Financial Performance Develop and Cascade Strategy Planning, Budgeting, and Forecasting Profitability and Cost Analysis Financial and Managerial Reporting Why SAP Define Mission and Version Formulate Strategy Business Modeling and Simulation Business Planning Cost Strategy and Operational Review Financial Statement Analysis Select Measures and Targets Select Strategic Initiatives Resource and Capacity Planning Prepare Budgets Data Collections Process Driver-Based Rolling Forecasts What-If Simulations Financial Planning Driver-Based Rolling Forecasts Profitability Financial Data Analysis Real-Time Analysis Profitability and cost analysis helps companies make better decisions, gain better control of costs, and improve profitability. Resource and Capacity Predictive Analysis 7 / 15

8 Profitability and Cost Solution Overview Profitability and Cost Mgmt. Capabilities Benefits The SAP Profitability and Cost application helps travel and leisure organizations make better decisions, gain better control of their organizational costs, and improve the profitability of individual routes and the entire network. 34% Increased operating margin when cost accounting supports cost analysis across multiple dimensions Source: SAP Performance Benchmarking Get access to all detailed financial and operational source data through reliable, regular updates. Use this information to make better operational decisions that optimize a company s financial performance. Attain visibility and full transparency into cost and profitability drivers. Accurate costing enables optimal allocation of resources. Run flexible profitability analyses and what-if simulations, and use the information and insights they deliver to drive timely, fact-based decisions. Assess the impact of various scenarios to improve financial performance and to better link strategy with execution. 8 / 15

9 Achieve Revenue and Profit Goals Solution Overview Profitability and Cost Mgmt. Capabilities Benefits 37% Greater revenue generated per employee in organizations with mature cost accounting and analysis Source: SAP Performance Benchmarking With SAP Profitability and Cost, companies can generate accurate and frequent updates regarding their costs and profitability. This application supports the running of what-if analyses across multiple dimensions. This is an excellent way to analyze the impact on the bottom line of various scenarios. Companies use this functionality to gain a clear understanding of how their decisions will affect revenues and profits. This application can provide insight into the levers affecting organizational costs and profitability while helping to reduce workloads and total cost of ownership. It helps identify a travel and leisure provider s most profitable routes and business segments, enabling the provider to focus on the strongest while shoring up the weaker among them. 9 / 15

10 Make Insightful Decisions on Profitability in Real Time Solution Overview Profitability and Cost Mgmt. Capabilities Benefits Get the insight to manage profitability and identify profit-creating and profitdestroying levers. SAP applications help companies better understand their bottom-line contributions and establish multidimensional views of customers, service, and channel productivity. 61% Less finance spending on strategic management when product, channel, and customer profitability is reviewed Source: SAP Performance Benchmarking With SAP applications, travel and leisure companies can better understand their customers bottom-line contributions and establish multidimensional views of customer, product, and channel productivity. By analyzing cost to serve, these companies can assign costs to customers and integrate planning and profitability by using the same cost and plan drivers. They can also track multiple products sold to a single customer and monitor customer-related downstream costs. By running integrated customer relationship management and enterprise resource planning applications to manage performance, companies gain visibility into business user oriented dashboards and metrics. This information is invaluable for running what-if analyses and simulations, greatly aiding the process of making business decisions. 10 / 15

11 Innovations for Profitability and Cost Solution Overview Profitability and Cost Mgmt. Capabilities Benefits 80% Of decision makers believe access to the right information is critical Source: SAP Performance Benchmarking Innovative solutions from SAP provide faster access to profit and expense information, anytime, anywhere. With SAP HANA software, companies can perform a flexible ad hoc analysis based on real-time cost and profitability data. Predictive analyses with SAP HANA enable forecasting and advanced modeling such as what-if simulations. Applications SAP Business Suite applications, powered by SAP HANA and in-memory computing, deliver real-time cost and profitability information while comprehensively supporting the fundamental needs of a business. Analytics The SAP Net Margin Analysis analytic application provides purpose-built, predefined analytics that supports net margin management so that companies can improve their profitability. Mobile Insert image # here With the SAP Enterprise Performance On Demand solution, companies can access real-time profit and expense information from mobile devices. 11 / 15

12 Manage Financial Performance Value Map Solution Overview Profitability and Cost Analysis Financial Performance Manage Financial Performance Develop and Translate Strategy Planning, Budgeting, and Forecasting Profitability and Cost Analysis Monitoring and Reporting Why SAP Accounting and Financial Close Financial Accounting Entity Close Corporate Close Reporting and Disclosure Financial Close Governance Treasury and Financial Risk Payments and Bank Communications Cash and Liquidity Debt and Investments Strategies Financial Risk Commodity Risk Collaborative Finance Operations Receivables Collaborative Invoice to Pay Travel Shared Services Framework SAP solutions help companies outperform financial expectations. Enterprise Risk and Compliance Enterprise Governance, Risk, and Compliance Access Risk Global Trade Compliance Sustainability Reporting 12 / 15

13 Why SAP? Solution Overview Profitability and Cost Analysis Financial Performance Why SAP Innovative technologies from SAP allow companies to respond quickly to market dynamics and provide real-time visibility into their enterprise performance. With SAP applications and the anytime, anywhere access to data they provide, companies keep flexibility high while reducing risks and total cost of ownership. Tight Integration With SAP software, companies have tightly integrated solutions that support end-to-end business processes and link strategic goals to initiatives, key performance indicators, and people. Financial With full lifecycle financial management, companies can control performance, improve planning processes, and optimize capabilities. Aligned Strategies By leveraging key breakthrough innovations, companies can harness the power of Big Data, mobile devices, and intuitive analytics to better align strategies and execution. 13 / 15

14 Find Out More About How Your Organization Can Become Best-Run Benchmark Your Performance Position your organization for dominance in this new economy with the business performance benchmarking program from SAP available free to SAP customers and select prospects. The SAP benchmarking program has helped more than 3,000 organizations assess their strengths, uncover areas for improvement, and identify best practices and IT strategies that generate clear, tangible value not someday, but today. Go Live in Weeks Here s the fastest way to run your business better: our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly including preconfigured software and implementation services in just weeks. With a defined scope and predictable costs, there are no surprises. Join Your Community of Practices Visit valuemanagement.sap.com >> Visit sap.com/solutions/rds >> Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It lets members help one another solve problems, learn, and invent new ways to get things done faster. Find out how to connect with people, content, and resources. Visit scn.sap.com >> 14 / 15

15 Solution in Detail Passenger Travel and Leisure Executive Summary Solution Overview Contact Us CMP (13/07) Travel and transportation solutions from SAP: SAP Community Network:

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