03 sumil business planning

8/6/2019 03 Sumil Business Planning

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Simpl i fy and Ac c elerate yourPlanning & Budget ingProc ess throughSAP Bus iness Planning.

Sumil Vikamsey, ACA

EPM SpecialistBusiness Objects, an SAP company

Email: [email protected]

Piyush Doshi FCA, ICWA

Managing ConsultantPricewaterhouseCoopers

mailto:[email protected]:[email protected]:[email protected]:[email protected]


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AGENDA

Budget, Planning and Forecasting

BPC Strength

Budget process demo


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AGENDA


BPC Strength

Budget process demo


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BusinessProfitability

Management

Strategy Management

Financial Transact ions & Services

CoreTransact ionsAR, AP, etc

Standardisat ion,Harmonisat ion,

Consolidat ion(SHC)

SharedServices

Account ing, FastClose

Tax

Treasury

Real Estate

Financial Value Chain

GRC

Compl iance & A ud i t

AccessControl

RiskManagement

ProcessControl

ReliableClose

CSR

SAP Del iver ing a Coherent, Consistent , FPM

Suit e for t he CFO Off ice

BusinessPlanning

BI Platform

ERP

BI Plat form

Business

Planning

Business

Consolidation


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Budget ing/Planning

Traditionally done once a year

Many companies moving to a rolling monthly/quarterly forecast

Often begins with setting top level targets and pushing down

Top down process typically followed by intensive bottom up process at a fairly lowlevel of detail

Detailed Revenue/COS planning Detailed Headcount plan (employee level detail or higher)

Detailed Expense plan

Detailed Capital Expenditure plan

Balance Sheet/Cash Flow plan

Allocations/Corporate Adjustments Various Overhead Allocations

Adjustments to bring Bottom up plan in line with Top Down Targets

Consolidation/Reporting

Consolidate, eliminations, etc.

Distribute budget reporting package(s)


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Forecast ing

Typically summary level of information

Often includes extensive assumptions/driver based models

Most companies moving to a rolling 12, 18, or 24 month forecast

Frequently included as part of quarterly guidance provided to analysts

P&L Consolidated or divisional level of detail (not usually cost centers)

Largely handled by finance with less input from division managers

Balance Sheet

Derived from P&L using drivers/assumptions

Some lines may include complex assumptions/forecasting methodologies

Cash Flow

Derived from Balance Sheet & P&L using assumptions

Often the most important component of the forecast everything else done in support of theCash Flow


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Al ignment and Comm unicat ion o f Plans


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Spreadsheets Nightm are

Flexibility without control

Difficult to maintain

Budgeting nightmare

Longer budget cycle time

Versioning Problems

Security

Workflow


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Planning & Budget ing : Basic Expec t at ions

Automate budgeting & forecasting processes

Accurately consolidate information for reporting to HO

Proper workflow & security controls

Flexibility in company financial performance analysis

Instant & easy access to financial and planning data (Drill Downs / Drill

through)

Shorten the time to close and produce report

No personal spreadsheets

Streamline Audit and compliance issues.


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11 June 2008

The Per formanc e Management Chal lenge

Data source BPM ApplicationSuites/Modules

UserInterface

Planning

Process

Reporting

unstructured data

structured data

?

KM1


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Slide 10

KM1 put slide in corp template

cylinders need to me more distinctive, and more separated (done)

we want to convey chaos (things that our customers are dealing with)

rather than gray arrows, on click 1 representative from each cyl type l ines up underneath reporting, planning, process

red arrows need to build after the individ cyls line up under each module. make the build convey that it's a complex process

user interface (each section builds on click):

* make reporting icon a stack of papers, make

* planning a stack of paper that are charts and graphs,

* process use a green screen legacy app (black screen, lime green type on it fills the UI)

right picture should be an icon of a person looking confused. (keep the photograph for later use)

Kathleen McMahon, 12/Mar/07


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High-Level Archi t ec t ure
mailto:[email protected]


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AGENDA


SAP BPC Solution

Budget process demo

Piyush Doshi FCA, ICWAManaging ConsultantPricewaterhouseCoopers



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Operatio

nalTasks

Business Processes

SAP Business Planning & Consol idat ion - A Uni f ied Approach to CPM

Planning

Bud

getin

g

Fore

castin

g

Financial

Close

Rep

ortin

g&

Measu

rement

Collection of Data

Communicate

Consolidation

Analysis &Reporting

ReportDistribution

SAP BP&C: 1 Product

Competition: 8-9 products


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BPC for Plann ing

SAP BPC 5.1 provide in a single tool a solution for all Budgeting processes.The Budget is organized by Business Process Flow, managing automaticallyBudget Version validation and approval as well as complex budget workflow

Keys Functionalities:

Automatic Budget Consolidation

HR Budgeting process COS Budgeting Process

OPEX and CAPEX Budgeting Process

Automatic Multi Currency Conversion

Top Down and Bottoms up Budget

Driver Based budget

Cash Flow Calculation


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K ey St rength of the Solut ion

Unification of all Budgeting ProcessHR, COGS, CAPEX, OPEX sharing all or subset of Master Data and

Data. One version of the truth across all budget process.

Excel Based and action pane

Ease of use, most powerful reporting and analysis capabilities,familiar environment. Very low cost of ownership

Business Process Flows to reinforce control, review andvalidation

Control and reinforce Budget process across all BU. Ensureconsistency of process everywhere in the group

Offline Capabilities

Ease of deployment and flexibility


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Office Integration

Action Panes

Contextual relevant

Across office and browsers

Unique in the market

TIAA-CREF, France Telecom, Curtiss Wright, AceInsurance

TIAA-CREF (US)Unified experience with familiar OFFICE interface

FranceTelecom (France)Drag&Drop and Office Integration; ZFP

Jefferies Group (US)expanded and fully unified interface with Officesignificantly simplifies internal and externalfinancial processes

Charter Macuser experience of the future

User Ex per ience: Mic rosof t Of f ic es


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User Ex per ience : Business Proces s Flow s

Prepackaged application functionality

to manage the performance of business

processes

Unique in the market

TIAA-CREF, NRG, Pyrotek

TIAA-CREF (US)simplify and unify budgeting andconsolidations process;

shift ownership: from 2 people to the financegroup and beyond

Ladbrokes (UK)easier to integrate, involve users, andleverage IT and processes across companynext generation functionality

NRG (US)we see BPFs as the way to standardize all

performance management processes on SAPBPC


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Budget ing Proc ess

ConsolidatedReview

Allocated Expense

PDF Publication

Product Profitability

Cashflow

HRBudgeting

DepartmentTransfer

Process &Approval

PromotionProcess

& Approval

Driver BasedAutomaticCalculation

SalaryBudgeting& Planning

Personnelexpense

Revenue&COS

Product LinesManagement

Driver BasedAutomaticCalculation

ExpensesBudgetDriver Based

AutomaticCalculation

Budget &Target

Budget VersionSetup

Multiple BudgetHierarchies

Driver&

Global assumptionSetup

Multiple Rates

Target Allocation

What-if Analysis

.

.

.

MultipleCalculation

Method

.

CAPEXOPEXDriver Based

AutomaticCalculation

Capex byAssets Class

.

Capex byProject

.


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DEMO


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LITA SCO Selec t s SAP BPC

The implementation process was incredibly quick, and theeasy-to use nature of the software meant our employees onlyrequired three days training.The implementation was so quick that during the samemonth the financial reporting component went live, we wereable to produce that month's financialreports using the new software. All in a fraction of the time itused to take.

Laurent CorbazHead of Financial Reporting & PlanningLITASCO

Company LITASCO (LUKOIL International Trading

and Supplky Company)

Location Geneva, Switzerland

Industry Oil

Products/Services traders of crude oil and refined petroleum

Revenue

Employees

Web Site www.litasco.com

SAP Solutions and Services SAP Business Planning & Consolidation

Challenges and Oppor tuni t ies

Needed insight into the vital reporting andanalysis of the organization

Needed forward-looking capability to shape

business success and insight to identify key

performers

Enterprise-wide, scalable solution that enhanced

the ability to easily manage operation and

financial requirements

Object ives

Cut reporting time Remove reliance on spreadsheets

Enhance ability to analyze KPIs

Easy integration with existing SAP systems

Highl ights Excellent training and ease of use

Streamlined successful implementation in 5-

months

Immediate access to reporting, GAAP

consolidation, KPI analysis and scorecarding

Why SAP BPC

Easily integrated with existing SAP systems Seamless budgetary reporting integration

Central data repository with real-time enterprisewide accessibility

Easy KPI analysis with scorecarding

Benef i t s

Greater 360 business insight across theenterprise

Compliance with GAAP consolidation regulations

Streamlined three month consolidation processinto one week

Predictive analytics for non-financial KPIs allowingthem to compare business targets


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L is tasco Cockp i t Managemen t


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Cock pi t Room


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Customers
mailto:[email protected]:[email protected]


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Thank You for Your T ime

Questions

Sumil Vikamsey Piyush Doshi

[email protected] [email protected]

03 sumil business planning

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