demystifying bpc embedded -...

Demystifying BPC Embedded

The next evolution of EPM

Christopher Kaszelik

Bluetree

[email protected]

This Presentation Covers:

• SAP EPM Tool comparison

• BPC Embedded advantages

• SAP EPM Roadmap

• Sharing insights

• Conclusion

EPM (CPM) - Introduction

Gartner defines CPM to comprise of the following components –

• Financial consolidation and close management

• Financial and Management Reporting and disclosures

• Financial Planning and Forecasting

• Strategic Planning and Forecasting & Strategic Management

• Profitability Modelling and optimization

In short Corporate Performance Management (CPM) is the process of monitoring

performance across the enterprise with the goal of improving business

performance. An EPM system integrates and analyses data from many sources.

Source: Gartner.com

SAP Solutions for EPM (current)

Strategize and plan

• SAP Strategy Management 10.1

• SAP Business Planning and Consolidation 10.1

• SAP BusinessObjects Cloud

Analyse and optimize

• SAP BusinessObjects Cloud


• SAP Profitability and Cost Management 10.0

Close and disclose


• SAP Financial Consolidation 10.1

• SAP Disclosure Management 10.1

Source: SAP AG

4.3 MS Release

5.1 MS Release

7.0 MS Release

7.5 MS Release

10 MS Release

10.1 MS Release

7.0 NW

7.5 NW Release

10 NW Release

10.1 NW Standard

10.1 NW Embedded

SAP BPC History

Based on IP

framework

SAP BPC Versions

• BPC Standard

• Full feature planning and consolidation tool based on BW and supported on HANA

• Designed for flexibility and to be administered by the business users

• Requires its own BW namespace and its own cubes

• Uses an account model – Single key figure

• Front-end: EPM Add-In

• Targeted for business users and flexibility

SAP BPC Versions

• BPC Embedded

• Leverages BW-IP logic, taking advantage of native BW Cubes

• Offers Planning Application Kit (PAK)

• BW-IP optimised for HANA

• Multi key figure model

• BPC Standard functionality becoming increasingly available and mature

• Front-end: Analysis for Office

• Leverages IT centric EDW model with BPC business oriented features

SAP BPC Versions

• BPC Optimized

• BPC Embedded on BW Embedded in S/4HANA

• Only available with S/4HANA, runs on BW Embedded

• First purpose is to replace planning functions from FI/CO, which are not present in S/4HANA Finance

• Pre-delivered BPC templates

Source: blogs.sap.com

SAP BusinessObjects Cloud (BOC)

• Finance and other line of business professionals are envisioned to eliminate the complexity of planning processes and quickly integrate corporate and divisional plans

• Bidirectional integration with SAP BPC 10.1

Source: SAP AG

• SAP BOC is a people-centric solution designed to help simplify financial planning and analysis and eliminates the need for different tools

Choosing the right solution

The following key aspects determine the choice of solution:

• Existing SAP investment & roadmap

• Integration requirement

• Scalability requirements

• Nature of functionality

• Consolidation vs Planning vs Analytics

• Complexity of the requirements

This Presentation Comprises:



• SAP EPM Roadmap


• Conclusion

BPC Embedded architecture

Source: SAP AG

BPC Embedded Calculation Engine

Planning Function Category

Preferred utilisation Advantages Disadvantages

Standard Planning Functions

First option to perform Planning Functions

• 100% Hana Optimised• Easy to Create,

Maintain and implement

• Only a limited number of basic business scenarios can be addressed

Formula Extension (FOX)

Used when Standard Planning Functions cannot fulfil Business Requirements

• Most FOX formulas are HANA Optimised

• Low to Medium Complexity to build

• Do not Support Hierarchies• Subroutines and Functions

modules are not yet supported for HANA-optimised

• Can only read data from same aggregation level

BPC Embedded Calculation EnginePlanning Function Category

Preferred utilisation Advantages Disadvantages

Planning Application Kit (PAK)

Used when Standard Planning Functions and FOX cannot fulfil Business Requirements

• 100% Hana Optimised• Addresses most of the

business scenarios• Supports Hierarchies• Can read data stored in

HANA tables/views• Can read data from

other aggregation levels

• Medium to High complexity to build

ABAP formulas

Due to the fact that ABAP is executed on the Application layer, it should be used as the last option

• Most flexible engine• Supports Hierarchies• Can leverage standard

ABAP call functions/BAPI’s and BADI’s

• Not yet HANA-optimized supported

• High complexity to build

Planning Functions

BPC Embedded offers a number of standard planning functions such as:

• Unit Conversion• Generating Combinations• Formula• Copy• Delete• Delete Invalid Combinations• Forecast

• Reposting• Reposting by Characteristic

Relationships• Revaluation• Distribute by reference data• Distribution by keys• Currency translation

Planning Functions via FOX formulas

• Planning Functions via FOX Formulas are to be utilised for more complex business cases not covered by standard planning functions.

• E.g. Simple tax calculation

• They can be used to cover a wider range of business requirements, however they are comparatively more complex than standard planning functions.

• The logic for FOX is defined in the planning function itself.

• Most FOX formulas are HANA-optimised. This means that they are executed on the HANA Data Base Layer.

• This excludes execution of Subroutines and Functions modules which are not yet HANA-optimised supported

Planning Functions via PAK

• The Planning Application Kit (PAK) was delivered with SAP BW on HANA to allow SAP BPC planning functions to run in-memory.

• As a result the maximum performance is gained due to deeper HANA integration.

• No data load into the application layer required.

• In planning functions it is often necessary to use data that does not lie within the aggregation level (e.g. allocation rules or escalation rates).

• PAK planning function realised via a SQL-Script procedure can easily access this “external” data stored in database tables

Planning Functions via ABAP

• FOX Script functionality can be enhanced using an ABAP Function Module.

• The ABAP code for this is complex but offers more flexibility compared to other Planning Function options.

• ABAP routines are not yet supported for HANA-optimised as they run in the Application Layer.

• They require more processing time and hence should be used only when the required functionality cannot be achieved by standard planning functions, FOX or PAK.

PAK Framework

When implementing a SQL-Script planning function, several objects need to be created:

• Create a ABAP Class

• Create a Planning Function type

• Needs to reference the ABAP class

• Create a Planning Function

• For the PAK Planning Function type created

• Create a HANA Store Procedure containing the SQL calculation logic

PAK FrameworkABAP Class

Planning Function Type

Hana Store Procedure

Planning Function

Analysis Office

• Combines Analysis Plug-In and EPM Add-In in a single installation

• Two separate ribbons

• Which Plug-In to use*?

• BPC 10.X Standard model -> EPM

• BPC 10.1 Embedded model -> Analysis **

* Refer SAP Note 2312162

** In exceptional cases, use of EPM plug-in may be necessary. Refer SAP Note 2327742

Analysis Plug-In on BPC Embedded

• Full BW meta data support, performance-optimized

• Full planning support: new lines, planning functions/sequences

• Support of work status and business process flow

• SAP is continuously improving the Analysis Plug-In features to match EPM Add-In functionality

• Major differences include:

• Formatting

• Analysis uses styles for formatting instead of formatting sheet

• Conditional formatting available in A4O

• Direct Input/Member recognition

• Other approach for report design (e.g. design panel, context menu, filter dialog)

Business Process Flow in AO 2.4

• The BPF can be launched by the end user directly in Analysis Office using HTTP connections.

• The user can access tasks in the activity workspace

• Workstatus can now also be configured

23




• SAP EPM Roadmap


• Conclusion

Roadmap for SAP Business Objects EPM solutions

Source : SAP EPM Roadmap 2016Q3

Vision for EPM


SAP BPC MS


Scope• Incremental consolidation

• Matrix consolidation

• Controls monitor

• Advanced business process flow

• Ability to open Excel reports from workspace

• Support for mobile app

Key Benefits• Better performance and productivity to run consolidation

when data changes, reducing time to close

• Easier way to run both legal consolidation and management consolidation by sharing same model and data

• Exception-based validation with greater control and visibility, enhancing accuracy

• More powerful and flexible process flow for planning and consolidation activities

• Greater productivity by allowing business users to group relevant reports together for frequent use under the same business context

• Broader adoption and increased engagement by leveraging mobile devices

SAP BPC NW-Standard & Embedded


ScopeDigital transformation

• Support for SAP BW/4HANA

• Dashboard

• Integration with predictive analytics

UX simplification and personalization

• Transformed user experience

• New home page

• UX improvement on business process flow runtime

Consolidation

• Push consolidation engine to SAP HANA

• Push control logic to SAP HANA

• Advancement consolidation monitor

• Advanced journal

Key Benefits• Support for next-generation SAP BW/4HANA

• Improved dashboard capability through integration with Lumira and Design Studio

• More accurate planning with user-friendly predictive capabilities using the predictive analysis library in SAP HANA

• Continuous improvement of user experience with SAP Fiori UX

• Fresh new home page design allowing personalization and quick access to frequent used features

• Optimized “My activities” user experience to better suit business need

• Further improvement on consolidation performance by pushing consolidation calculation logic to SAP HANA DB

• Enhancement control capability and performance by reusing SAP HANA rules framework

• Flexible consolidation monitor including tasks, work status, controls, and calculations

• Multiple journal templates, advanced journal settings and validation, journal upload

• Consolidation of investment, intercompany profit elimination of inventory/asset

SAP BPC - Embedded


ScopeLine-of-business flexibility

• Model planning function in Web client

• Planning function with business process flow and Web reporting

• Navigation attribute support• Support for SAP BusinessObjects

Analysis for Microsoft Office workbook from SAP BusinessObjectsEnterprise

Collaboration• Advanced comment

UX simplification and personalization• Query-less reporting

Consolidation• Real-time consolidation• Matrix consolidation• Various enhancements

Key Benefits• Business user enabled to create planning functions/sequences with

simplified user experience

• Powerful planning capability enabled in Web client

• Full support for navigation attribute in business process flow and data access profile

• Better integration with business intelligence (BI) platform, support SAP BusinessObjects Analysis for Microsoft Office workbook from SAP BusinessObjects Enterprise in business process flows

• Full commentary capabilities, enhancing complex planning processes

• Enable business user to create ad-hoc reports(input forms) without IT involvement

• Continuous improvement for consolidation with SAP S/4HANA

• Matrix consolidation capability provided by introducing U.S. elimination rule

• Better compounding support, flexible hierarchy support in business rule, transport

SAP BPC NW – Optimized for S/4


Scope• Enhancements in the area of simulation of

cost allocations

• Activity price and activity consumption planning

• Workbook redesign

• Basic sales planning workbook

• Model extension tool (MET)

• Integration with SAP Integrated Business Planning for sales and operations

Key Benefits• Enhanced support for simulating impact of changes on key drivers of

allocated costs on receiving administrative and production cost centers. Now, the distribution mechanisms “ratio,” “consumed activity,” and “fixed amounts” can be included in the simulation.

• Easy to estimate the consumption of and resultant costs of consuming internal services during the planning process

• Planning workbooks will be redesigned to meet SAP Fiori UX style guides

• End-user-friendly, simple workbook to record expected sales prices and quantities by material and customer group

• To reduce setup time, MET automatically generates info objects and many other artifacts needed to get the planning solution running in a shorter time frame, including customer-specific planning dimensions

• Enhanced data quality and reduced effort in integrating sales and operational planning data into the overall profit-and-loss planning process




• SAP EPM Roadmap


• Conclusion

Common Implementation Mistakes

• Wrong choice of tool

• Product fit

• One size fits all mindset

• Not knowing product limitations

• Inability to establish clear specifications and business case

• Lack of detailed design

• Lack of clear stakeholders and senior support

• Resource commitments

• Functional as well as technical

• Insufficient Training

• Inadequate Testing

• Inadequate Staffing of implementation team

Big Bang or Phased roll-out?

• EPM implementations should be considered as a journey and should be deployed in a phased manner to maximise the outcome

• Generally the business users with traditional IT knowledge (mostly from OLTP background) make transition to these platforms. It is necessary that they work with the tool for sometime to understand strengths and weakness of the product

• The first phase of the roll-out should be out of the box solution leveraging RDS (Rapid deployment solutions)

• Once the key business users have familiarized themselves with the tool, the remaining phases should be planned

• This approach will set up a constructive and collaborative environment for the subsequent solution requirement analysis and design phases




• SAP EPM Roadmap


• Conclusion

5 Leading Insights

• BPC Embedded wins on integration and performance

• Planning Application Kit for in-memory calculations deliver huge impact to clients

• Analysis Office is the only supported front-end tool but needs to catch-up with EPM Add-In

• Most significant benefits of BPC on S/4HANA

• BPC & BOC – Stronger together

Reference to More Comprehensive Information

• SAP Road Map for EPM Products Q3 2016

• Gartner Magic Quadrant Report for CPM

• https://blogs.sap.com/2016/07/22/bpc-classic-vs-bpc-optimized-comparison-matrix/

https://blogs.sap.com/2016/07/22/bpc-classic-vs-bpc-optimized-comparison-matrix/

Questions?

Christopher Kaszelik

[email protected]

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