delivering real-time business value for defense and security

July 2013

Delivering Real-Time Business Value for

Defense and Security SAP Business Suite Powered by SAP HANA

Public

2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

The empowered war-fighter is driving new

priorities in defense and security

Increase mission effectiveness Increase cost visibility Achieve managed readiness targets Develop and care for service members Increase energy efficiency Avoid deviations from program cost and schedule baseline

Ensure effective operations of

sustainable defense teams

Establish the combat-readiness of service members in operations using

force generation and deployment

remotely

Utilize available forces and

resources the most effective

way possible

Define and generate organizational measures and support supply chain

and MILSTRIP purchasing

The empowered

war-fighter

Increase flexibility in planning

deployment and support of

operations

Define force-element characteristics and generation of command and

control relationships to support

interoperability


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Military Planning and Operations

Force Generation

Force Deployment

Interoperability and Information Sharing

People and

Talent Core Human Resources

and Payroll Talent Management

Workforce Planning

and Analytics

Budget and

Finance Public Sector Budget

Planning Public Sector Financials

Treasury and Financial

Risk Management

Enterprise Risk and

Compliance Management

Real Estate Lifecycle

Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Collaborative Invoice

to Pay

Regulated and

Complex Procurement Defense Milstrip Purchasing

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management IT Strategy and Governance

Maintenance and Engineering

Defense Maintenance, Repair and Overhaul

Maintenance in Operations and Exercises

Enterprise Asset Management

Military Supply Chain

Defense Replenishment and Planning

(Defense) Equipment Management

Logistics and Order Fulfillment

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

Industry value map defense and security Sustaining responsive, effective, mission-capable,

and integrated defense forces


Industry value map defense and security Sustaining responsive, effective, mission-capable,

and integrated defense forces

Military Planning and Operations

Force Generation

Force Deployment

Interoperability and Information Sharing

People and

Talent Core Human Resources

and Payroll Talent Management

Workforce Planning

and Analytics

Budget and

Finance Public Sector Budget

Planning Public Sector Financials

Treasury and Financial

Risk Management

Enterprise Risk and

Compliance Management

Real Estate Lifecycle

Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Collaborative Invoice

to Pay

Regulated and

Complex Procurement Defense Milstrip Purchasing

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management IT Strategy and Governance

Maintenance and Engineering

Defense Maintenance, Repair and Overhaul

Maintenance in Operations and Exercises

Enterprise Asset Management

Military Supply Chain

Defense Replenishment and Planning

(Defense) Equipment Management

Logistics and Order Fulfillment

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

Highest real-time

business value

for defense

3

4

5

1

2


Public sector financials Optimized public sector financials (budget execution)

Enhance insights and

accuracy

Reduce

Minimize

month- and year-

end closing time

operating costs

Current Situation

Lack of easy access to real-time reporting and analysis difficult control of financial and budget figures

Long-running period- and year-end processes with multiple steps to complete

Laborious and time-consuming processes while obtaining a current understanding of financial and budget figures

Key Innovations

Deeper and faster insight down to the lowest level of detail

Accelerated monitoring of year-end-closing with faster carry-forward

Accelerated budgetary accounting operations, like account assignment changes and reconciliation

Business Process Transformation

Understanding revenue and expenditure streams instantly

Real-time, end-to-end budget and financial close

Efficient management of organizational changes

Related to

Budget maintenance Execution of funds Budget and financial closing

and reporting (Budget execution)


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Regulated and complex procurement Business value for strategic purchase optimization

Lack of clarity about which sources of supply should be negotiated and

used

Long cycle time to secure new sources and significant overhead to

manage suppliers

Real-time access to high volumes of purchasing data

Fast and complete search across all related business documents

Increase process efficiency

Optimize working capital

Lack of visibility into organization-wide demand

High volume of maverick buying

Need for greater efficiencies and savings from purchasing

Real-time calculation of savings and simulations

Visibility into supplier relationships, performance, spend, and savings in

place to reduce supply risk and

missed savings opportunities

With SAP Business Suite on SAP HANA


Today


Defense replenishment and planning Business value for real-time inventory management

No real-time insight into inventory situation might cause inaccurate

reordering, ultimately resulting in

higher levels of stock

Time-consuming inventory management reporting

Need for accurate display of actual stock to react quickly to stock

shortfalls

Inability to track material movements completely

Real-time stock insight and inventory monitoring with high performance to

support demand-driven procurement

New analytical inventory management cockpit

Real-time access to complex inventory management data

High-performance inventory management with large volumes of

documents

Real-time stock insight and inventory monitoring

Higher process efficiency in adjacent procurement processes (like

purchase order or invoicing

processing)

Reduce inventory levels

Minimize

Optimize

out of stocks

working capital



Today


Logistics and order fulfillment Business value for insight-driven supply chain planning

Lack of near-real-time information

No ad hoc operational reporting

Time-consuming data loads in traditional reporting tools

Need to create reporting, queries, and dashboards by each customer

individually

Inability to run subdaily planning jobs and analyze the results because of long data-preparation times in the data warehouse that prevent a fast response to ad hoc queries from customers which may result in lost sales

Decision-support based on near-real-time information

Standard analytical reporting possible with streamlined data load

Advanced data-retrieval and computing capabilities of

SAP HANA used to optimize the

reporting of data in supply chain

planning

Reduce supply chain costs

Optimize

Increase

inventory levels

customer service

level



Today


Defense maintenance, repair, and overhaul Business value for maximized asset utilization and uptime

Maintenance scheduling consumes a great deal of time

Manual and error-prone process of preselection of maintenance plans

Possibility of missing needed objects for maintenance calls

High number of maintenance plans that need to be scheduled frequently

Accelerated mass transactions

Instant analysis on top of transactions

Preselection of plans due speeds the process significantly

Real-time analytics on all data, including machine-sensor information

Scheduling of all maintenance plans within a specific timeframe

Planning several times a day (instead of once a week) for up-to-date

scheduling information in

maintenance operations

Faster response times for more accurate maintenance scheduling

Increase asset utilization

and reduce

unplanned asset

downtime

Maximize

Use

asset uptime

up-to-date scheduling

information on

maintenance

operations



Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your line-of-business and IT experts.

As starting point, we recommend a performance and usage analysis of your current system.


Customer case: Defense and security organizations Summary of validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

SAP Business

Suite on

SAP HANA

SAP HANA

Applications

SAP HANA

Platform

Financial

expenditure

reporting

Operational

reporting for

public sector

financials

Maintenance

optimization

Material

requirements

planning

Phase deployment road map

SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA

Scenario

(business value)

1 Short term

Financial expenditure reporting

Maintenance optimization

Material requirements planning

2 In evaluation

Operational reporting for public sector financials

3 In evaluation

Other functions tbd in future discovery workshops

SAP HANA use cases mapped to industry value map end-to-end solutions


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Financial operational reporting for public sector financials Defense and security

Business context and goals

Use case: Financial operational reporting for public sector financials Business value:

1. Effective financials operational reporting especially at end of fiscal year and quarter when near-real-time decisions are being made based on the question of what money needs to

be obligated

2. Reduced wait time for reports

3. Effective and efficient financial-close process

Business challenges

Impact on an ability to perform financial analysis Reports that time-out and cause operational inflexibility and delays Inability to complete expenditures at end of quarter or year because the status of funds and

obligations not visible

Contribution of SAP HANA

Military agencies have seen the potential for improved reporting that may become available to other departments that have similar needs. Any government organization needs a clear view of

the status of funds especially near the end of fiscal quarters and years, when heavy transaction loads prevail.

Value drivers/KPIs

Time to run financial reports Service-level performance Period-end closing times Budget cycle time

Innovation scope

SAP HANA Platform (customer-specific)

End-to-end (E2E) solution

Defense and security SAP HANA Platform

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Material requirements planning (MRP) Defense and security

Business context and goals

This arm of the military has a requirement to conduct MRP within its SAP software environment

Business challenges

During early 2012 while this program was undergoing its prefielding planning, the government program office identified MRP scalability as one of the programs major risks. SAP escalated this issue to Bill McDermott at the request of the customer. SAP successfully identified several policy

and implementation areas that needed to be addressed by the government and the system

integrator.

In regard to MRP scalability, SAP believes that the customer has data-setup and data-integrity issues and an inability to run relevant reports and perform analysis. Both are likely to be bottlenecks

to scaling up the solution to an estimated 160,000 users from the current user base of 3,000.

Contribution of SAP HANA

SAP HANA would help the MRP run ingest and process the anticipated volume of data

Value drivers/KPIs

Supply chain cost Bill of material management Supply chain readiness Inventory levels

Innovation scope

SAP Business Suite on SAP HANA

(now and in the future)

End-to-end (E2E) solution

Defense and security defense replenishment

and planning

Value potential 5

Feasibility 4

Low High

1 5

Low High

1 5

delivering real-time business value for defense and security

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