The 2014 Guide to SAP Enterprise Performance Management (EPM) Solutions: An excerpt David Williams SAP
Performance Management Challenges for Finance
The new normal for Finance professionals Volatile economic conditions Increasing globalization Increased focus on risk Pressure on margins Ongoing changes to regulatory requirements Ability to make sound decisions to benefit the organization Innovative business models 2014 SAP AG or an SAP affiliate company. All rights reserved. 2
Performance management challenges for Finance Increase organizational alignment and agility Help the enterprise make better decisions that drive profitability Deliver a faster, more reliable close-todisclose process Planning and forecasting cycle time Plan and forecast accuracy Time split between business analysis/support vs. admin Profit margin (vs. peers) % of profitable customers and products Resource utilization Close-to-disclose cycle time and cost Number of restatements required Cost of audit and compliance as % of revenue 2014 SAP AG or an SAP affiliate company. All rights reserved. 3
What represents Best Practice Increase organizational alignment and agility Help the enterprise make better decisions that drive profitability Deliver a faster, more reliable close-todisclose process Ensuring everyone understands how they help the organization succeed Allocating budgets to initiatives that create the most value and streamlining planning processes Instantly sensing changes in KPIs and enabling rapid reforecasting and easy scenario analysis that helps manage risk and cope with volatile economic conditions Delivering faster access to information and more detailed analysis of big data for business users Understanding and identifying opportunities for cost to serve reduction Providing decision makers with reliable data on the true profitability of products, services, and customers Reducing cycle time by driving efficiency with automation and standardization Increasing confidence in financial reports with high transparency and a detailed audit trail Allowing finance teams to analyze the reasons for the numbers rather than just reporting them 2014 SAP AG or an SAP affiliate company. All rights reserved. 4
BI, Analytics, and Performance Management continue to dominate CFO s IT investment desires Top Initiatives Today: Enterprise Top Initiatives 2014: Enterprise BI, Analytics & Perf Mgmt 22 21 13 BI, Analytics & Perf Mgmt 22 20 13 Enterprise business apps 17 14 12 Enterprise business apps 15 8 10 Business process mgmt (BPM) 12 11 8 BPM 15 11 5 Mobile technologies 7 13 6 Cloud computing 11 8 8 Cloud computing 8 7 7 Mobile technologies 7 11 8 Data/document mgmt & storage 5 9 7 Big data 5 5 12 Big data IT mgmt On-demand apps/saas Security technologies Networking, voice & data comm's Governance, risk & compliance (GRC) apps Social networking 5 3 4 5 8 2 11 6 5 5 5 5 4 3 8 1 3 5 12 4 Data/document mgmt & storage Security technologies On-demand apps/saas IT management Social networking GRC apps Networking, voice & data comm's 5 8 3 8 8 3 3 3 7 2 3 6 1 3 7 1 5 3 5 7 3 Ranked 1st Ranked 2nd Ranked 3rd Ranked 1st Ranked 2nd Ranked 3rd Source: Gartner. John Van Decker. Survey Analysis: CFOs' Top Imperatives From the 2013 Gartner FEI CFO Technology Study. May 2013. 2014 SAP AG or an SAP affiliate company. All rights reserved. 5
CFO s continue to emphasize Performance Management as their top initiative for BI and Analytics Top Initiatives Today: Finance Investment in Business Analytics BI, analytics, performance mgmt Integrated financial mgmt apps/erp BPM Reconciliation mgmt apps 2 35 23 17 11 11 10 18 18 29 24 14 Performance measurement, scorecard, and dashboard Financial reporting and consolidation Budgeting, planning and forecasting 54% 45% 43% GRC apps 3 8 8 Data warehouse 35% On-demand apps/saas 5 5 7 Customer and product profitability 30% Cloud computing 11 33 Big data 22% Mobile technologies Disclosure Mgmt Solutions Social networking 3 6 6 23 5 33 Predicitive modeling Statistical analysis 18% 16% Ranked 1st Ranked 2nd Ranked 3rd Percentage of respondents Source: Gartner. John Van Decker. Survey Analysis: CFOs' Top Imperatives From the 2013 Gartner FEI CFO Technology Study. May 2013 2014 SAP AG or an SAP affiliate company. All rights reserved. 6
SAP EPM Solutions for Finance: An overview
EPM for Finance Increase organizational alignment and agility Set and translate strategy Create plans, budgets, and forecasts Help the enterprise make better decisions that drive profitability Strategize and plan Analyze and optimize Analyze performance Model and optimize profitability Deliver a faster, more reliable close to disclose process Close and disclose Prepare consolidated financial statements for management and regulatory purposes Disclose financial data to internal and external stakeholders 2014 SAP AG or an SAP affiliate company. All rights reserved. 8
EPM for Finance (cont.) Increase organizational alignment and agility Set and translate strategy Create plans, budgets, and forecasts Help the enterprise make better decisions that drive profitability Analyze performance Model and optimize profitability Enterprise Performance Performance Management Management Deliver a faster, more reliable close to disclose process Prepare consolidated financial statements for management and regulatory purposes Disclose financial data to internal and external stakeholders 2014 SAP AG or an SAP affiliate company. All rights reserved. 9
Plan and analyze to better support the business, and accelerate the financial close with SAP solutions for EPM Strategize and plan SAP Strategy Management SAP Business Planning and Consolidation Close and disclose SAP Intercompany SAP Business Planning and Consolidation SAP Financial Consolidation SAP Disclosure Management SAP Notes Management SAP Financial Information Management Enterprise Performance Performance Management Management Analyze and optimize SAP Business Planning and Consolidation SAP Profitability and Cost Management SAP BusinessObjects Business Intelligence 2014 SAP AG or an SAP affiliate company. All rights reserved. 10
Recent key releases SAP Business Planning and Consolidation, starter kit for SAP Financial Results Insight mobile app July SAP Strategic Financial Planning rapid deployment solution (for use with the SAP Business Planning and Consolidation application) August SAP Strategy Management 10.1 October SAP Financial Consolidation 10.0 SP12 November SAP Profitability and Cost Management 10.0 SP 08 November SAP EPM Unwired 3.0 mobile app Dec. SAP Business Planning and Consolidation 10.1, version for SAP NetWeaver Dec. 2014 SAP AG or an SAP affiliate company. All rights reserved. 11
Why SAP solutions for EPM Complete Easy Innovative Get everything you need for performance management integrated and from one vendor Improve operability and reduce cost of ownership with direct integration into the SAP NetWeaver technology platform, the SAP ERP application, and analytics solutions from SAP Choose an industry-recognized, leading portfolio for reduced risk Deploy on-premise or in the cloud to meet the requirements of your organization Leverage industry and line of business content to get up and running faster Use simplified mobile, Web, and Microsoft Office (Excel) interfaces to satisfy all user types instead of only a few Analyze and act anytime and anywhere with mobile-ready apps for consuming information and inputting data on the fly Make faster and better decisions by eliminating wait times through the power of the SAP HANA Platform Improve planning and forecast accuracy on any data size with a platform that is predictive and Big Data-ready 2014 SAP AG or an SAP affiliate company. All rights reserved. 12
Financial Planning and Analysis with SAP solutions for EPM Strategize and plan Set and translate strategy Create plans, budgets, and forecasts Enterprise Performance Performance Management Management Analyze and optimize Analyze performance Model and optimize profitability 2014 SAP AG or an SAP affiliate company. All rights reserved. 13
SAP Strategy Management Communicate plans and objectives, align business units, prioritize resources, monitor and report progress, and proactively address issues Manage initiative portfolios, goals, and KPIs more efficiently Manage budgeted initiatives (best practices), tasks (milestones), and sub-tasks (sub-milestones) ipad option allows remote manage performance Measure and monitor scorecards easily Determine performance through easy-to-interpret scorecards and drill into more detailed screens for additional analysis and exception management Gauge each business unit s contribution to overall performance or to compare performance against peer-group benchmarks Better align on common goals, more effectively collaborate and communicate Vertically and horizontally align organizations with hierarchies of contexts Communicate with comments (add and reply) associated with objectives, KPIs, and initiatives Respond to time-sensitive alerts (homepage and email) 2014 SAP AG or an SAP affiliate company. All rights reserved. 14
SAP Business Planning and Consolidation, version for the Microsoft platform Streamline planning, budgeting, and forecasting processes in any environment Increase organizational agility Use Microsoft Excel and Web UIs to meet the needs of users in Finance and beyond Automate aggregations, allocations, and other manual processes for shorter planning cycles Quickly run different what if scenarios and course correct faster for better results Improve accuracy of plans and budgets Guide contributors and drive planning consistency with configurable business process flows Utilize a central data store versus standalone spreadsheets for a single version of the truth Perform planning and consolidations in a single app built for Finance Use a single solution for planning and consolidations for reduced cost of ownership and increased productivity 2014 SAP AG or an SAP affiliate company. All rights reserved. 15
SAP Business Planning and Consolidation, version for SAP NetWeaver Streamline planning, budgeting, and forecasting leveraging SAP NetWeaver BW Increase organizational agility Use Microsoft Excel, Web, and mobile UIs to meet the needs of users in Finance and beyond Automate aggregations, allocations, and other manual processes for shorter planning cycles Quickly run different what if scenarios and course correct faster for better results Improve accuracy of plans and budgets Drive planning consistency with configurable business process flows Utilize a central data store versus standalone spreadsheets for a single version of the truth Perform planning and consolidations in a single app built for Finance Leverage a single solution for planning and consolidations built directly on SAP NetWeaver BW for reduced cost of ownership and increased productivity Powered by SAP HANA* for instant insight and real-time planning *sold separately 2014 SAP AG or an SAP affiliate company. All rights reserved. 16
SAP Profitability and Cost Management Manage organizational costs and optimize profitability Rapid, user-friendly, and efficient modeling Leverage the predefined logical data structure Easy-to-use point and click assignments Model across multiple periods and versions Utilize a central data store versus standalone spreadsheets for a single version of the truth Scalable enterprise class solution Accurately process high volumes of data from multiple sources Support Multi-Currency and Multi-Language aliases Built in enterprise class security with full trace back and audit Extended capabilities Comprehensive reporting and analysis capability of profitability and cost drivers Powerful what-if analysis and simulations for insightful decision making Integration with other EPM applications and BI for integrated profitability management 2014 SAP AG or an SAP affiliate company. All rights reserved. 17
Accelerate the financial close to disclose process Improve speed, accuracy, and compliance while reducing costs Financial Accounting Entity Close Corporate Close Reporting and Disclosure General Ledger Sub-Ledgers Intercompany Reconciliation Entity Close Management Reporting and Analysis Consolidation Notes Management Disclosure Management Financial Close Governance Internal Controls Master Data Governance for Financials 2014 SAP AG or an SAP affiliate company. All rights reserved. 18
Where to Find More Information Check out more from David Williams at this year s Financials 2015 conference in Las Vegas, March 17-20. David will provide an overview and roadmap for enterprise performance management (EPM). 2014 SAP AG or an SAP affiliate company. All rights reserved.
2014 SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP AG s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP AG or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 2014 SAP AG or an SAP affiliate company. All rights reserved. 20