sap businessobjects spend performance management

]

Orange County Convention Center

Orlando, Florida | May 15-18, 2011

SAP BusinessObjects Spend Performance Management

Value Proposition and Colgate Palmolive Global Implementation

Experiences and Solution Roadmap

Francisco Ramos

Colgate Palmolive Co.

Raj Alluri

SAP Labs, LLC

Real Experience. Real Advantage.

[ Agenda

SAP BusinessObjects Spend Performance Management

Value Proposition and Colgate Palmolive Global

Implementation Experiences - 30 Mins

Francisco Ramos

Colgate Palmolive Co.

What’s new in SPM3.0 and Solution Roadmap – 30 Mins

Raj Alluri

Director, Solution Management

SAP Labs, LLC

2


[ Learning Points

Colgate Palmolive business case for Spend Performance

Management implementation

Project scope

Project key challenges & learning's

3


[ Colgate Palmolive Co.

15.6B global consumer products company

Founded in 1806

35,000 Colgate people worldwide

Products sold in 200+ countries and territories

The Company focuses on strong global brands in its core

businesses

Oral Care

Personal Care

Pet Nutrition

Home Care

4


[ Spend Analytics Background

BI Custom Reporting application developed in 2004

Based on Accounts Payable information only

Rule base logic for spend classification

Colgate implemented SRM/EBP solution for indirect

procurement between 2007 and 2010

Classification of Indirect Spend has being a challenge

Users not always classify spend properly (EBP)

Rule engine data maintenance is resource consuming (BI)

IT spending to many resources maintaining and enhancing

existing application

Procurement dependency on a few “Power Users”

to generate information for the organization

5


[ Areas of Opportunity

Increase utilization

Easy of Use

Self Service Capabilities

Better classification of spend

Provide context information

Commodity prices

Budgets

Contract and Purchase Order data

Better analytical capabilities

From Corporate summary to document level information

Tool to empower users to find and report on the

data they need

6


[ SAP Spend Performance Management (SPM)

SAP is Colgate’s strategic partner for information systems.

Leverage Colgate’s and SAP investment in technology

SPM delivers a BI data model for spend and context information

User interface delivered as part of the solution

Solution to keep-up with external innovation and business needs as we

upgrade BI & SPM in the future

Easy of Use

Intuitive Web based UI built on Adobe Flash

Users can set their own preferences and create their own reports,

dashboards and briefing books

Leverage third party vendor services for classification of Indirect

spend

7


[ Colgate Palmolive project scope

Data

Spend (Account Payables)

Purchase Orders

Travel & Entertainment

External Factors (Commodity

Prices)

Budgets for Direct spend

Two years of data

Geography

Global Implementation

Seven SAP ERP’s / One SAP

SRM

Organization

Direct

Indirect

Logistic

8


[ Project Timeline for Global Implementation

2008 - Meetings with SAP to review Colgate business needs

and SAP prototypes

2009 3rd / 4th Qtr - Ramp-up

2010 1st / 3rd Qtr – Implementation

2010 4th Qtr – Data validation

2011 1st / 2nd Qtr – End User Training / Go Live

9


[ Key Challenges

New Spend Hierarchies

Direct Spend – Two levels, Spend Segment / Sub-Segment

Indirect Spend – Three levels, iCode Category / Sub-Category / Cost Driver

Data integrity based on subsidiary business practices

SMI / Contract Manufacturing Spend

Vendor Classification in R/3 systems

Purchase Order information

SPM Technical challenges

SPM 2.1 was a ramp-up product

Adobe Flash UI memory limitations

Java based tool

Netweaver JAVA stack need to be properly configured/optimized

Fixes delivered once a month as full patches.

No standard interface from BI standard content to SPM content

SAP delivered solution is based on flat file interfaces

10


[ Current Implementation Status as May 16th, 2011

Division Direct Procurement Indirect Procurement

Europe 30 users – July Go Live 22 Uses – Live Feb

Asia / SP 33 users – July Go Live 26 Uses – June Go Live

North America 32 users – July Go Live 23 Uses – Live March

Latin America 42 users – July Go Live 63 Users – Live May

AMED 5 users – July Go Live 4 Users – June Go Live

Hill’s 15 users – Live April 10 Users – Live April

Total 157 Users 148 Users

11


[ Best Practices

Data is the key component

Have a good understanding of the complexity of your

Transactional & Master Data

Data validation is key and it can take a lot of effort and time

Define Spend Hierarchies that facilitate sourcing initiatives

Involve your basis/technical group early in the implementation

Make sure that the Java stack is properly configured/tuned for

the expected workload in production.

Ensure a process is in place to deploy Adobe Flash.

Define an appropriate data refresh frequency

12


[ Key Learning's

SPM solution well designed to address spend analytics business

needs

User adoption requires good data quality and modern/intuitive

user interface

Spend is classified properly

Vendors are classified properly per the role they have

To keep up with external innovation you need to pick a

solution from a vendor that reinvest in enhancing existing tools

13


[ Q &A

14


[ SAP BusinessObjects

Spend Performance Management What’s new in 3.0 and

Roadmap

15


[ SAP BusinessObjects Spend Performance Management

Roadmap

New content: Payment analysis, savings, business synergy

“What-if” and “build your own” simulations

New UI features and enhancements

Data management enhancements

Advanced charting - integration with SAP BusinessObjectsDashboards (formerly Xcelsius)

Support for SAP BusinessObjects Business Intelligence Platform (enables Mobile)

Language support(Korean, Danish, Dutch, Finnish)

Version 2.1, GA May 2010Version 3.0 Ramp-Up (RTC)

Scheduled for May 31st 2011Future Versions

Enhanced time/trend analysis

Analysis by global, local, and

document currencies

User-defined currency preferences

On the fly UoM conversion

Increased flexibility for content

storage

Out-of-the-box support for supplier

risk analysis (SP3)

Language support (English,

German, Czech, Spanish, French,

Hungarian, Japanese, Portuguese,

Russian and Simplefied Chinese)

Enhanced Integration with LoBprocurement applications

Integration with SAP BusinessObjects GRC and SAO BusinessObjects EPM applications

Predictive analytics capabilities

Supplier performance including delivery, GR and basic supplier evaluations

SAP HANA adoption

Additional integration with SAP BusinessObjects BI tools

Enhanced mobile scenarios

Available today May ‘11 >=2012

Future/Planned

Important Note: * These are planned, future releases. Everything described is just a plan, not a commitment, and is therefore subject to change or removal at SAP’s discretion.


[

What-if simulations • Ability to perform what-if simulations within the

application

• Provides a framework based on variables (global,

local), formulas and ability to perform simulations

(example: total landed cost, buy vs. build, etc.)

• Enables strategic buyers to take critical

business decisions based on what-if

simulations

• Improved sourcing decisions

Advanced analysis (savings,

payment, business synergy,

waterfall, etc.)

• Provides savings analysis over selected time

periods by commodities

• Ability to analyze payments and monitor days

payable outstanding (DPO)

• Enables purchasing organizations to track

Savings with pre-defined targets

• Better manage cash flow and effective pricing

Enhanced extractor and data

management features

• Enhanced BI to BI connections

• Improve performance and usability of extractor

starter kits for SAP systems

• Support n:n mappings between the source system

and target system fields

• Enables customers to integrate their existing

BW content directly to the spend data model.

Better TCO.

• Further simplifies and automates the

extraction process

Enhanced UI features • Adoption of business user interface

• Enhanced UI navigation and advanced charting

with SAP BusinessObjects Dashboards charts

availability within SPM UI and iPad integration

• Enables integration of spend data model with SAP

BusinessObjects BI platform and allows its

consumption in the BI tools.

• Increases speed of productivity across a

purchasing/finance users and reduces

the manual efforts and spreadsheet

dependency

• Ease of use and deployment

Important Note: Everything described is just a plan, not a commitment,

and is therefore subject to change or removal at SAP’s discretion.

What’s New in SAP BusinessObjects Spend Performance

Management Version 3.0?

NE

W

What is

the feature?

What does

it do?

What is

the value?


[

This presentation and SAP„s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

H

Key Features Business Value

SAP BusinessObjects

Spend Performance Management Version 3.0

New UI Features/Enhancements

New “landing page” provides a role-based

view of the application’s version 3.0

features

Workspace concept allows grouping

together of similar tasks

New reporting features improve

ad-hoc analysis capabilities

Provides business users an enhanced UI with

more intuitive navigation to content and

new functionality within the application

The ability to provide feature-based

authorization to the application’s new

functionality will ease of navigation and

ensure maximum use of the features version

3.0

New reporting functionality like scope

context and enhanced charting provided by

BUI will add value to the ad-hoc reporting

and charting in version 3.0 of the application


[ New Landing Page

Favorites

Recent Documents


[ Expanding Tree Hierarchies

Visualize all hierarchy levels on single screen


[ Improved Folder Management

Browse all reports from single screen


[ Ability to Filter Out Values in Reports

Excluded values


[


SAP BuinessObjects Dashboards (formerly Xcelsius)

Web Integration


Enhanced charting options Visualize data using SAP BusinessObjects

Dashboards custom charts that

incorporate an organizations corporate

themes

Utilize chart types the are only available

in SAP BusinessObjects Dashboards


[


SAP BusinessObjects Dashboards – Web IntegrationCharts Available in SAP BusinessObjects Spend Performance Management

Advanced Charting


[


SAP BusinessObjects Business Intelligence (BI) Platform


Integration between SAP BusinessObjects

Spend Performance Management and SAP

BusinessObjects Business Intelligence

platform

Access SAP BusinessObjects Spend

Performance Management data with tools

like SAP BusinessObjects Explorer, SAP

BusinessObjects Web Intelligence, etc.

Consume SAP BusinessObjects Spend

Performance Management data on the iPad

and IPhone using the iPad client in SAP

BusinessObjects Explorer


[ SAP BusinessObjects BI Platform - Universe IntegrationAdvanced Graphical Analyses and iPad Integration

SAP BusinessObjects

Spend Performance

Management

Flex UI

SAP NetWeaver BW

SAP BusinessObjects

Analysis

SAP BusinessObjects

Web Intelligence

SAP BusinessObjects

BI Platform

SAP BusinessObjects

Explorer

iPad Client (SAP BusinessObjects

Explorer )


[


SAP BusinessObjects

Spend Performance Management Version 3.0 What-if Analysis


Perform what-if simulations within SAP

BusinessObjects Spend Performance

Management

Provides a framework based on variables

(global, local) and formulas

Provides ability to perform business

simulations

Empower procurement end user to make

improved decisions during the sourcing

process

Build and compare different sourcing

scenarios

Manipulate the results to identify the most

beneficial scenario

Some examples for what-if analysis are

‒ Buy now vs. buy later

‒ Ability to analyze savings potential based on

different payments terms

‒ Buy local vs. buy global


[


SAP BusinessObjects

Spend Performance Management Version 3.0 What-if Analysis

Example: Total Landed Costs Simulation

Local Variables

Global Variables


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Savings Analysis Reporting


Calculate period over period savings at the

Item or category level

Savings formula is “variance of selected

price measure between selected time

periods x quantity measure for current

time period”

Compare spend for a specific Item or

category over an end-user-defined time

period

Calculate the savings gained from previous

sourcing activities

Report can be saved and added to briefing

books for presentation to senior

management or LoB stakeholders or

performance reviews


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Savings Analysis Reporting

Local Variables

Global Variables

Calculate period over period savings at the Item or category level


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Business Synergy Reporting


Analyze common spend between

management organizations (business units,

divisions, plants etc. at the same level) for a

specified time period (cross tab view)

Review spend across an organization to

identify suppliers that are common

between divisions

Identify opportunities for global contracts

that cover the entire spend, resulting in

cost savings


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Business Synergy Reporting: Analyze Common Spend


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Payment Analysis Reporting


Perform a DPO analysis by grouping the

DPO into DPO groups and reporting on

payment amounts associated with each

group

Report on the supplier by DPO group

Navigate to the payments detail report

Analyze effectiveness of the organization’s

payment operations

Gain visibility into utilization of payment

terms and leverage during negotiation with

suppliers

Navigate to payments detail report to

analyze transaction level payment

information from source systems


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Payment Analysis (DPO-Days Payable Outstanding)

Fast access to additional payment

analysis reports

Report on the supplier by DPO group for better

insight


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Waterfall Analysis


Perform waterfall analysis

View waterfall chart for reports

Identify trends by performing a period-

over-period comparison of a particular

dimension in a waterfall chart

Compare dimensions on the same scale

(percentage) over two time periods


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Waterfall Analysis

Visually analyze the spend

breakdown fora specific item

See what portion of item spend

comes from freight charges versus material costs


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Data Management Enhancements


New user interface with enhanced

functionality to manage the data load

process

Support of BW:BW capabilities

Enhanced template administration

Capability to reload from persistent staging

area (PSA) in SAP NetWeaver BW

Data management enhancements in SAP


Management version 3.0 improve the

efficiency of data loading into the data

model

Support for BW to BW connectors for

data aggregation allow more and improved

options for loading data

Enhanced functionality to remove special

characters during data load speeds up the

data load process

Eliminates the need to re-extract data

from the source system with PSA

reloading


[


SAP BusinessObjects

Spend Performance Management Version 3.0 Control all Data Load Activities From a Single Page


[


BenefitsKey Features

Checks for more than 25 configurations

in data management including

BW data source configurations

OPM cycle and source system configurations

Reporting currency setting

Data enrichment bypass setting

Import and export folders

Upload defaults (delimiter, escape character, etc)

Import/export folder setting

Concatenation character setting

SAP BusinessObjects

Spend Performance Management Version 3.0 Improved Configurations

Warns user against loading data if it finds

critical issues with configuration

This program will be down ported to SAP


Management 2.1 SP6 (planned)

Reduced web service calls from 50+

down to ~5, less configuration required

Backend ABAP-based program for

checking configurations (run by admin)


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