how to extract the greatest value from sap business ... · pdf filecase study overview —...

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How to Extract the Greatest Value from SAP Business Planning and Consolidation Across the Organization

Gary YoungVantagePoint

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In This Session

• Unleashing performance with BPC Scope of this session Define the end-game of Enterprise Performance Management Illustrate the full capacity of SAP BPC Strategies for leveraging it across the organization

Intention of this session Help you extract the greatest value from SAP BPC Show creative examples of how others have leveraged its

power Provide a few tools that can lead you on your journey

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What We’ll Cover

• Defining Success in Enterprise Performance Management• Reviewing the Core Functionality of SAP BPC• Developing the BPC Platform• Fully Leveraging the BPC Platform• Case Study Overview — Energy Transfer Partner’s BPC Journey• Wrap-up

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What We’ll Cover


4

Defining the Value of EPM and BI

5

Success in EPM — Alignment and Insight

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What We’ll Cover


7

The Purpose

The GoalImproved performance and managed

growth across the enterprise

Enterprise Performance Management

The NeedEmpowered decisions, process control, and mitigation of risk

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The Process

1. Strategic five year plan

2. Annual budget

3. Management and ad hoc reporting / dashboards 4. Forecasting / Modeling

5. Consolidation

6. Financial / GAAP reporting

A closed-loop process that provides control to leaders who are continually responding to business challenges and new reporting demands

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The Platform


• SAP extractors• Multiple sources• Excel interface• Financially aware• Single version of the truth• Robust functionality• Flexible

Financial Application… for Finance

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What We’ll Cover


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Requires a New Mindset

Think Big

Go Deep

Perform

Start Small

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1

Plat

form

BPC Mindset

Solve the problem at hand

Close the loop

Leverage beyond finance

EPM Platform

5

2

Integrate a BI interface

3

4

Paint the bigger picture

13

1

BPC Mindset



• Develop the EPM Roadmap Situation analysis Vision planning Gap Analysis Technology solution

• Establish credibility in the overall direction

Situational Analysis Visioning Gap

AnalysisTechnology

Solution

EPM Roadmap

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BPC Mindset (cont.)

2 Solve the problem at hand

• Prioritize the projects based on greatest impact• Establish a sequence that builds on itself Process Technology Adoption Minimal business disruption

• Communicate well throughout the project• Celebrate the win

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BPC Mindset (cont.)

3 Close the loop

• Set corporate goals and enable alignment by connecting them to KPI’s at the execution level

• Manage prioritized initiatives that have clear ownership and inter-dependencies

• Drive consistency with common definitions and clear direction

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BPC Mindset (cont.)

3 Close the loop

• Annual Plan Best practices Driver based budgeting, target setting, multi-currency

Multi-step iteration Sales, revenue (COGS), expenses, capital expenditure,

workforce, allocations

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BPC Mindset (cont.)

3 Close the loop

Leverage beyond finance• Reports• Data discovery• Dashboards• Advanced analytics• Predictive analytics

Operational & Transactional

Informational

Strategic

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BPC Mindset (cont.)

3 Close the loop

Leverage beyond finance• Forecast Rolling forecast, sensitivity analysis, re-forecast, version

comparison• Modeling Financial, sales & operational, optimization

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BPC Mindset (cont.)

3 Close the loop

Controlling

Consolidations

Internal Audit

• Financial consolidation Entity close cycle Intercompany reconciliation Data submission for corporate close

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BPC Mindset (cont.)

3 Close the loop

• Financial / GAAP reporting Corporate close Financial management review External financial reporting

Controlling

Internal AuditConsolidations

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1

Plat

form

BPC Mindset (cont.)

EPM Platform

5

2

3

4


Close the loop




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1

Plat

form

BPC Mindset (cont.)

EPM Platform

5

2

3

4


Close the loop




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What We’ll Cover


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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

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The Breadth of BPC

• Applications and functions

Platform / Application / Version

Finance

HR

Operations

Sales

Marketing

Stra

tegi

c Pl

anni

ng

Bud

get

Rep

ortin

g &

A

naly

sis

Fore

cast

Con

solid

atio

n

Dis

clos

e

S&O

P

Ope

ratio

nal

Mod

elin

g

Das

hboa

rds

HC

M

CA

PEX

Prof

itabi

lity

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The Breadth of BPC (cont.)

• Aplications and functions

Platform / Application / Version

Bus

ines

s Fu

nctio

n Finance

HR

Operations

Sales

Marketing

Stra

tegi

c Pl

anni

ng

Bud

get

Rep

ortin

g &

A

naly

sis

Fore

cast

Con

solid

atio

n

Dis

clos

e

S&O

P

Ope

ratio

nal

Mod

elin

g

Das

hboa

rds

HC

M

CA

PEX

Prof

itabi

lity

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Integration with Analysis Tools

• Aplications and functions

Parameter-driven reports

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Integration with Analysis Tools (cont.)

• Self-service reporting Requirements Efficient access to necessary data and application repository Data set tuning User interface Visualization Sharing information

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Integration with Visualization Tools (cont.)

• EPM Unwired BPC NW 10.0 and 10.1, Strategy Management connector Context-driven analysis and corrective action Web-enabled BI reports

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What We’ll Cover


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Case Study — Energy Transfer Partners

• Rapid acquistions created a series of challenges: Different financial systems Multiple chart of accounts Time and effort to consolidate and produce reports Manual processes Confidence in data Lack of flexibility

Massive growth -$5.4B to $47.7B in just four years

Rapid acquistions created a series of challenges:

Different financial systems

Multiple chart of accounts

Time and effort to consolidate and produce reports

Manual processes

Confidence in data

Lack of flexibility

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Case Study (cont.)

Preparation is Mission Critical

Preparation

1. Know your mission2. Build a team

a. Functionalb. Collaborativec. Vested

3. Tool and equip for successa. SAP BPCb. Trainc. Experience

Getting there

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Case Study (cont.)

Build the Platform

Consolidation

Streamline ConsolidationsMission – data integration and process mapping

Key InsightKnow the overall mission

Getting there

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Case Study (cont.)

Build the Platform

Budgeting

Shorten Cycle Time and Improve Accuracy of the Budgeting ProcessMission – increase the integrity of:1. Annual Budget2. Headcount Planning3. Capital Project Dollars4. Margin Planning Key Insight

Leverage the tool

Getting there

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Case Study (cont.)

Build the Platform

Monthly Rolling ForecastMission – Finance recast

Key InsightCapitalize on work

completed

Rolling Forecast

Getting there

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Results of Building the Platform

Efficiences• Secure and robust environment

• Quick assimilation of company acquisitions

• Confidence in reports

• Flexibility (reports, budgeting, forecasting)

• Ability to meet deadlines

• Empowered users

• Multiple missionsSolving the consolidation challenge opened opportunities to

address related business processes

Case Study (cont.)

37

Case Study (cont.)

Leverage the Platform to Gain Insights

Mgt. Reporting

Management ReportingMission – Enhance reporting and business insights1. Include metrics and non-financial drivers2. Segmentation analysis3. Reporting environment

a. Current (data and presentation)b. Context (Fin AND non-Fin)c. Complete (act, bud, for, segment, …)d. Comparative (variances, time frame)e. Consistent

Key InsightTake Creative Freedom and Realize Possibilities

Getting there

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Results from the Insights Gained

Real Business Intelligence• Responsibility-driven down to the cost center

manager

• Created a driver-based planning model

• Fluid versus static

• Value-added decisions that are forward looking

• Insights to financials by providing related metrics

Positioned them as one of the most efficient pipeline opperators in the U.S.

Case Study (cont.)

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Case Study (cont.)

Go Beyond

Real-Time DecisionsMission – Enable meaningful daily decisions

Model operational activities to facilitate impactful decisons

Key InsightTake Creative Freedom and Realize Possibilities

Pinnacle Performance

Arriving there

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Results from Going Beyond

Real-Time Decisions• Save over $2M annually in gas imbalance application

alone

• Other processes addressed by BPC:

• Tax Reporting

• FERC compliance

Put the power of performance in the hands of their people

Case Study (cont.)

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What We’ll Cover


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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)


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Where to Find More Information

• Pras Chatterjee, An up-to-date guide on SAP Business Planning and Consolidation 10.1, SAP Reporting and Analytics 2014 Interactive

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

• Energy Transfer Partner’s case study http://www.vantagepoint-solutions.com/ETPcasestudy

• SAP Solution in Detail: Streamlined Planning and Consolidation for Finance Teams in Any Organization http://sap.sharedvue.net/Asset/Get/1204/1207/Solution_in_Detail__Str

eamlined_Planning_and_Consolidation_for_Finance_Teams_in_Any_Organization?refferer=138&group=1&url=http%3a%2f%2fkaltechgroup.com%2fsap-showcase&sid=fe7c8b495d6e60b8818fbc6a84bc116b

https://service.sap.com/sap/support/pam

http://www.vantagepoint-solutions.com/ETPcasestudy

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7 Key Points to Take Home

• Think big, start small, go deep• Close the finance loop (integrate the six core financial functions) • Maximize BPC’s capabilities for: Efficiency, Intelligence, Modeling

• Leverage the platform outside of Finance• Remember why you invested in such a powerful tool Distill data, align the organization, accelerate decisions

• Integrate the appropriate analysis and visualization tools• Be confident that BPC is the chosen direction

It’s a journey – stay the course

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Your Turn!

How to contact me:Gary Young

[email protected]+1 770.778.5847

Please remember to complete your session evaluation

mailto:[email protected]

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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.

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