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July 2013
Delivering Real-Time Business Value for
Defense and Security SAP Business Suite Powered by SAP HANA
Public
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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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 3 Public
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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 4 Public
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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 5 Public
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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 6 Public
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)
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2013 SAP AG or an SAP affiliate company. All rights reserved. 7 Public
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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 8 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
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
With SAP Business Suite on SAP HANA
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2013 SAP AG or an SAP affiliate company. All rights reserved. 9 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
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
With SAP Business Suite on SAP HANA
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2013 SAP AG or an SAP affiliate company. All rights reserved. 10 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
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
With SAP Business Suite on SAP HANA
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2013 SAP AG or an SAP affiliate company. All rights reserved. 11 Public
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.
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2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
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2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix with detailed customer cases
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2013 SAP AG or an SAP affiliate company. All rights reserved. 14 Public
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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 15 Public
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
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2013 SAP AG or an SAP affiliate company. All rights reserved. 16 Public
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