2014-profit and margin management with sap nma
TRANSCRIPT
Profit and Margin Management with SAP NMA Carsten Hilker, Solution Manager, SAP Julien Delvat, Practice Manager, Alta Via Consulting
LEARNING POINTS
Learn how SAP Net Margin Analysis can help you …
Identify net margin improvement opportunities
Uncover cost reduction potentials
Develop tactical / strategic transformation initiatives
RETURN ON INVESTMENT
NUCLEUS Research : “An investment in analytics represents one of the richest investment opportunities “ Analytics “pay back $10.66 for every $1.00 spent”
http://nucleusresearch.com/research/research/analytics-pays-back-10.66-for-every-dollar-spent/
BEST PRACTICES
Focus on revenue-related data The more analytics was used to learn about revenue drivers, including who the customers are, what they buy, and their price sensitivities, the more line-of-business managers were able to increase their top lines
Focus on cost-related data By gaining more knowledge about margins of the different products and services within a company’s offering, the better able an organization was to dedicate efforts towards higher-margin activities
WHAT USED TO BE IMPOSSIBLE
© FreeDigitalPhotos.net / pakorn
What was missing:
Possibility to handle very large volumes (combinations of products, customers, …)
Integration to other applications like PCM
Attractive and powerful visualization
Mobile enablement
What is now available:
SAP HANA COPA Accelerator
SAP Data Services
SAP Dashboards, Explorer, Web Intelligence
Mobile BI
WHY NOW?
SOLUTION DETAILS
Analytical Application Pre-defined – includes data service, data model, reports and dashboards
Purpose-built for margin and cost analysis
Single source of cost data ERP CO-PA Profitability Analysis
PCM
BW or any external cost data
Built on SAP HANA End-to-end HANA business process
High performance for high data volume
Direct impact and business outcome
WHAT IS SAP NMA?
A new analytical application for margin and cost analysis
Business Requirement Actively monitor and manage the primary factors driving margin within the organization
Help stakeholders discover cost structure issues
Reduce indirect costs through optimizations and changes to business practices
Model and Simulate optimization initiatives of tactical or strategic nature across the company
Boost profits by transforming profit-destroyers and leveraging profit-creators
Solution Offering Pre-defined and purpose-build analytical (information-centric) application
Cross-functional profitability - current net margin information across the organization
Profit and cost by customer, product and channel
Reliable tracking of indirect cost (overhead and cost-to-serve) across functions
What If Analysis - help executives explore alternatives in simulation before creating initiatives
Role-based dashboards and KPI content
SAP Innovations
enable business
transformation Applications Mobile Database & Technology
Cloud Analytics
SOLUTION AT-A-GLANCE
Profitability Summary Dashboard
Corporate summary of revenue and net margin Corporate KPI scorecard with the time trends Profitability analysis and costs for Customer Segments, Product Category, Services and Channel
Segment Analysis Dashboard
Drill-down Profitability analysis for each of the hierarchies Whale curve analysis, identifying profit creators and profit destroyers for customers and products
Whale Curve Analysis
Which customers are profit destroyers? Which customers contribute most to net profit? Where is the low hanging fruit?
Actual net margin
Potential net margin or
increase in profit if
profit destroyers
become breakeven
Whale Curve for cumulative net margin
Margin Analysis
Waterfall analysis showing cost components for customers, product and channel
Operational Cost Analysis
Ad-hoc analysis into all costs across all dimensions
Cost Savings Simulator
Identify potential savings by using cost influencers Select a cost that needs to be controlled and see the effect of each cost influencer like order size,
sales channel etc Perform what-if analysis to identify steps that would maximize the cost savings.
Call to Action Dashboard
Transform profit destroying customers into winners Classify your least profitable customers into four segments and compare to the winner. Identify actions to transform each customer to a winner by controlling costs and driving revenue
Visibility across your Enterprise
Text
Finance Product
Management Operations Sales/Marketing
Maximize Profitability
Optimizing manufacturing cost, product mix / alterna- tives requires a sound understanding of operational margins
Deep insight into the cost structure and drivers of (activity/ process) cost for optimization initiatives
Breakdown of net margin to allow focus on optimization and changes to business practices / incentives
Focused target market management for profit (net margin) and growth optimization
Shared insight for active, continuous net margin improvement
+ + + =
RAPID DEPLOYMENT SOLUTIONS
HOW SOON CAN MY BUSINESS USERS GET THIS?
What are SAP RDS?
Fast • Quickly address specific needs
• Gain fast time to value with seamless rapid-deployment tools, embedded best practices
• Speed end-user adoption with guides and educational materials
Simple • Clearly priced services and project time
frames – help ensure a predictable outcome
• Modular yet integrated solutions – help ensure long-term landscape integrity
• Support across all environments (on-premise, mobile, and cloud) – leveraging the cloud to accelerate projects and deployment
A complete solution
Deployed in weeks
SAP RDS: Rapid Deployment Solutions
What is part of the service?
Software Implementation
Quickly address the most urgent business processes
Content
SAP-supported best practices, templates, and tools make solution adoption easier
Enablement
Training material, guides, go live support
Service
Fixed scope and timeline to provide maximum predictability and lower risk
SAP RDS: Rapid Deployment Solutions
WHERE TO GO FOR MORE INFORMATION?
SAP NET MARGIN ANALYSIS
http://www.sap.com/solutions/rapid-deployment/software/hana-net-margin-analysis/index.html
PRODUCT VIDEO
http://www.sap.com/asset/index.epx?id=8ed40d62-b216-42bb-aba6-55e790c433be
SAPPHIRE / ASUG
Live Demo this week
Meet Ramesh Sunder or Sumita Jayaraman at Demo Table BA502 in the Analytics Campus
KEY LEARNINGS
SAP Net Margin Analysis can help you …
Identify net margin improvement opportunities
Uncover cost reduction potentials
Develop tactical / strategic transformation initiatives
CONTACTS FOR QUESTIONS
Profit and Margin Management with SAP NMA
Carsten Hilker Solution Manager
Julien Delvat Practice Manager
Alta Via Consulting [email protected]
THANK YOU FOR PARTICIPATING
Please provide feedback on this session by completing a short survey via the event mobile application.
SESSION CODE: 2014
For ongoing education on this area of focus, visit www.ASUG.com
APPENDIX
Key Considerations
Built with SAP BI platform (Dashboards, Explorer, Web Intelligence)
Caters to Costing or Account based COPA
Available as MS SQL or HANA based version
Runs within Mobile BI (no additional license)
Configurable Cost Hierarchy
Can analyze external and SAP data (CO-PA, PCM)
SLT or Data Services for data loads
System Landscape
SAP HANA
NMA HANA Schema
Explorer & Exploration Views
(iPad)
SBOP
Experience
SBOP Business Intelligence Platform
Explorer Info Spaces
SBOP Explorer
NMA HANA Information Model
Solution Scope
Explorer & Exploration Views
(On Premise) SAP
Dashboards
In Memory In Memory
SAP Web
Intelligence
Universe
CO-PA PCM Third Party
Mobile for iPad
SAP
Data Services
SAP
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