a canvas for improved performance: developing … canvas for improved performance: developing the...

Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2014 Wellesley

Information Services. All rights reserved.

A Canvas for Improved Performance: Developing the EPM Roadmap and Business Case for SAP Business Planning and Consolidation

Gary YoungVantagePoint

1

In This Session

• Driving performance with BPC Scope of this session Define the value of Enterprice Performance Management Establishing the need for SAP BPC Key steps required to building the business case (an

introduction to the performance journey) Intention of this session Demonstrate an approach that achieves buy-in and adoption Create a framework that lays the foundation of the project

blueprint Provide a few tools that can lead your journey

2

What We’ll Cover

• Defining the Broader Picture of Performance (EPM, BI, BPC)• Introduction to the Performance Journey • Developing the EPM Roadmap• Developing the Business Case• Putting It All Together — A Canvas for Performance• Wrap-up

3

Defining the Value of EPM and BI

4

Establishing the Need for BPC

• Process Efficiences Automation Reduced cycle time Decrease in data management and increase in analysis

• Business Effectiveness Improved business intelligence Extended knowledge of the business Better business decisions Increased confidence Reduced risk

5

Defining the Functionanlity of BPC

Modeling Tool Financial and non-finacial

applications Central repository of data

Single version of the truth Drill down Full view of the business Predictive

Intelligence Tool

Process control Owned by Finance Foundational

Efficiency Tool

6

Defining the Objective of BPC

Finance & IT

HR, Operations & Sales

Strategic Leadership

Financial Leadership

DATA

INSIGHTS

ACTIVITY

STRATEGY

DECISIONS

GROWTH

AligningDistilling Accelerating

Provide Insights for Growth

7

What We’ll Cover

• Defining the Broader Picture of Performance (EPM, BI, BPC)• Introduction to the Performance Journey • Developing the EPM Roadmap• Developing the Business Case• Putting It All Together — A Canvas for Performance• Wrap-up

8

Introduction

9

Identifying Your Position in the Journey

• Requires that you ask the right questions Even when the company thinks it knows the answer

• Requires the right people be in the room Vision can’t be cast from the bottom-up

• Requires consensus on the answers Need to understand the cross functional impact

10

What We’ll Cover

• Defining the Broader Picture of Performance (EPM, BI, BPC)• Introduction to the Performance Journey • Developing the EPM Roadmap• Developing the Business Case• Putting It All Together — A Canvas for Performance• Wrap-up

11

Building the EPM Roadmap

Situational Analysis Visioning Gap

AnalysisTechnology

Solution

EPM Roadmap

Interactive discovery, prioritization, scenerio planning, and reccomendations for addressing business challenges and opportunities

12

Building the EPM Roadmap (cont.)

A comprehensive look into the business to understand the pains, people, impact, and urgency

Situational Analysis

Situational Analysis

Baseline

Current Business State - Assessment

13

Building the EPM Roadmap (cont.)

Typical well-rounded representation: Leadership, IT, Operations, HR, Sales

Show the value to the company and to them:

IT (alleviating work) Leadership (alignment and

accountability) Sales (forecasting tool, reporting) HR (security)

Situational Analysis

A comprehensive look into the business to understand the pains, people, impact, and urgency

It’s about Change Management

Cross-funtional buy-in

14

Building the EPM Roadmap (cont.)

A collaborative look at what success looks like for Management, LOB Leaders, and IT

VisioningEstablish desired

end stateExpose all

options

Align options to vision

Adopt final direction

Scenario planning

12

3

4

6

5

Determine viability3

Define the mission, vision,

and value proposition for all parties impacted

by the performance enhancement

15

Building the EPM Roadmap (cont.)

Uncover and prioritze all process, resource, and technolgy gaps hindering the company from moving to the desired end state

Gap Analysis

16

Building the EPM Roadmap (cont.)

Determination of viable options and credible constraints for the adoption of systems and supportTechnology

OptionsPlatform / Application / Version

Bus

ines

s C

halle

nge

Budget tied to Strategy

Confidence in #s

Timely close

Forecast accuracy

Data analysis

ERP

HA

NA

BW

/ B

I

Clo

ud

Stra

tegy

Mgt

.

• Platform constraints• Platform direction• Breadth of resolution• Compatability• Ownership• Adoptability• Functionality/

InterfaceAccess / Adoption

Process efficiencies

Dis

clos

ure

Mgt

.

BPC

Variables to address:

17

What We’ll Cover

• Defining the Broader Picture of Performance (EPM, BI, BPC)• Introduction to the Performance Journey • Developing the EPM Roadmap• Developing the Business Case• Putting It All Together — A Canvas for Performance• Wrap-up

18

Developing the Business Case

Creat a business justification that provides the details required for a credible and wise performance mangament decision

EPM Roadmap Resource Plan

Project Economics

Business Case

19

Developing the Business Case (cont.)

Bring the work completed in developing the Roadmap, which includes the identification of need and the viable direction to address it

Technology Solution

Need & Direction

Take the initial research in the Technology Option work and engage IT to help validate the solution (including TCO analysis)

20

Developing the Business Case (cont.)

Determine the resources required to see the roadmap executed and the needs addressed

Resource Plan

21

Developing the Business Case (cont.)

• Put the right people on the team – knowledgeable, cooperative, and results-oriented

• Make process owners and subject matter experts available during the entire process

• To mitigate risk, spread the work rather then relying only on key people

• Make sure extended team members understand their roles

Engage the right resources Resource Plan

22

Developing the Business Case (cont.)

Establish the right structure

Resource Plan

Application Consultant

Functional Lead

Application Architect

Project Manager

Client Partner

Project Manager

Business Lead

Technical Lead

Executive Sponsor

SME Team

IT Support

Executive Steering Committee

Operational Steering Committee

Ente

rpris

eC

onsu

ltant

Technical Application Consultant

Environmental Consultant

Key:Blue Letters = Full TimeOrange Letters = Part Time

23

Developing the Business Case (cont.)

Define the cost for implementing the proposed solution and analyze it against the opportunity cost of not doing it

Project Economics

Project Costs

Software Hardware Internal labor cost External labor cost

Opportunity Cost Process inefficiencies Lost profitabilty

Misuse of resources Production issues due to

innacurate forecasting Disclosure risk

24

What We’ll Cover

• Defining the Broader Picture of Performance (EPM, BI, BPC)• Introduction to the Performance Journey • Developing the EPM Roadmap• Developing the Business Case• Putting It All Together — A Canvas for Performance• Wrap-up

25

Putting it all Together

• Requires the Right Plan

EPM Roadmap• Requires the Right Team

Champion/sponsor, cross-functional, implementation partner• Requires the Right Tool

Function Usage Tool UserEnterprise Reporting Highly formatted, widely delivered, non-interactive reports

Interactive reportsCrystal EnterpriseWeb Intelligence

ITAnalyst

Enterprise Dashboards DashboardHighly functional dashboard

Dashboards*Design Studio

Power UserIT

Self Service Simple dashboards/InfoGraphics/Storyboard

Excel-based analysis and reporting

Lumira Analyst

EPM Add-in for OfficeAnalysis for Office

Analyst

* interim solution

26

The Results – A Canvas for Performance

27

Second Part of the Journey — Implementation

Definition RealizationDeployment

Deliverables Efficiency results Better

intelligence/improved decision making

Risk mitigation Change

management/culture shift

28

What We’ll Cover

• Defining the Broader Picture of Performance (EPM, BI, BPC)• Introduction to the Performance Journey • Developing the EPM Roadmap• Developing the Business Case• Putting It All Together — A Canvas for Performance• Wrap-up

29

Getting Started

• Performance Journey Sessions 2 hour direction setting

or 2 day deep dive

• Health Check Environmental process

review System review Version control Model design (dimensions,

calculations, reports)

Enterprise Performance Management

30

Where to Find More Information

• EPM Roadmap and strategy https://service.sap.com/sap/support/pam Requires login credentials to the SAP Service Marketplace

• Harvard Business Review, Harvard Business Review on Collaborating Effectively, Harvard Business Review Press; 1 edition (May 31, 2011).

• Energy Giant case study http://www.vantagepoint-solutions.com/ETPcasestudy

• White paper, “Achieving success in large, complex software projects”McKinsey & Company (May 2014) http://www.mckinsey.com/search.aspx?q=achieving+success+in+larg

e%2C+complex+software• John P. Kotter, Leading Change,” Harvard Business Review Press; 1

edition (November 6, 2012).

31

7 Key Points to Take Home

• Think strategically on the front end• Develop an EPM Roadmap that guides your path• Determine the platform required to achieve results• Quantify the business value • Get the business buy-in • Address the critical change management elements• Realize it’s a repeatable process (think big)

It’s a Journey – stay committed

32

Your Turn!

How to contact me:Gary Young

gyoung@vantagepoint-solutions.com+1 770.778.5847

Please remember to complete your session evaluation

33

Disclaimer

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor controlled by SAP SE.