sap solutions for performance management

Take Control Of Performance with SAP Solutions for CPM

The Business Challenge

Solving The Performance Gap with SAP

Why SAP?

Next Steps

SAP AG 2007, Title / First Name Last Name / 3

Relentless Pressures on Organizations… Pressure to Perform Is Immense – External and Internal Factors

Is your company in control of performance?

Political Challenges

Globalization

Industry Challenges

Financial Conditions

Disruptive Technology


Is Your Company Vulnerable?Result of Performance Gap…

SIGNITURE UTILITIES HAS TO RESTATE FINANCIALS FOR THE 3RD TIME….

SEC QUESTIONS CFO … DURING EXAMINATION OF BOOGLE TAKE OVER…

DL Computers…. Report earningsloss, stake holders up in arms…..

RETAIL GIANT DECLARES BANKRUPTCY…

Poor earnings, restatements, slow growth, fines…

Are these at risk? Financial/Operational Performance Top Line Revenue Growth Earnings Growth ROI Shareholder Value Asset Management


The Role of the CFO 2010Taking Control of Performance

Key Topics: Developing a vision for the future

Managing the information flow

Moving away from transactions

Transforming into the chief planning officer

Concern about global markets

Source: International Federation of Accountants Financial Management Accounting Committee

Interviews with leading CFOs representing well-known companies across the world

Source: CFO Magazine

26%26%

46%

16%

18%

19%

Business Insight

Complianceand Audit

FinanceServices

Financial Transactions

Today Short Term Goal

CFO Time Allocation

22%

20%

32%

GRC

CPM

ERP

20% of Fortune 100 CEOs were once CFOs


~~

The Performance Gap Causes Vulnerability

Optimal

MinimalT

ech

no

log

yT

ech

no

log

y

Accountability Incentives aligned with corporate goals Adequate resources Well communicated strategy Execution requirements well defined Effective performance monitoring Other: Strategy based on accurate data /

assumptions

* Source: Adapted from "Turning Great Strategy into Great Performance", Harvard Business Review

*40%Performance

Gap

Executive sponsor / commitment

Corporate culture of performancemeasurementP

eop

leP

eop

le


Is Your Technology Causing the Performance Gap?

Rate of Business ChangeRate of System Change

Result: Business Deadlock

Hard to use, rigid and inflexible?Hard to use, rigid and inflexible? Patchwork products, old architecture?Patchwork products, old architecture?

Spreadsheet hell?Spreadsheet hell? No confidence in answers?No confidence in answers?

Rear-view budgeting?Rear-view budgeting? No linkage to business process?No linkage to business process?

Rate of Change Rate of Change



Why SAP?

Next Steps


Close the Performance Gap with SAPGain Control

The right approach plus technologyenables performance control

USEfor business productivity

ADAPTto support rapid changes

PREDICTfor maximum results


How Does SAP CPM Close the Gap?An Iterative Process and Holistic Financial Management for On-going Performance

“SAP is the first significant vendor to focus on the CFO in this way.”


CPM Consolidation

The Value of Holistic Financial Management Fast, Accurate Close

ERP Closing CockpitTransparency

Efficiency

GRC Process Controls

Compliance


The Value of Holistic Financial Management Intelligent Risk Management

Develop Risk Intelligent StrategyDevelop Plan for Executing Strategy

Analyze Performance and Course Correct as NeededRisk Related Data in a Performance Management Context

RISKMANAGEMENT

STRATEGYMANAGEMENT


The Value of Holistic Financial Management Integrated Strategy, Financial Planning and Profitability Analysis

POST-MERGER SCENARIO

Initiatives are created for each of the 4 objectives

CFO communicates post-merger strategy with 4 key objectives: cost savings, compliance, performance management and risks

Controller plans integration of financial systems; closes, analyzes costs and profitability after month end consolidation and updated forecast

VP of procurement negotiates best rate for purchasing parts

CRO sets up the risk profile in risk management, including environmental, global trade andfinancial risks

Line manager uses access controls to segregate duties with newly acquired employees.,

Calculate resource allocation, apply to plans and predict performance

All stakeholders review scorecard to measure execution versus initial goals


The Enterprise In Control of Performance For Competitive Advantage

OPERATIONS Alignment, Agility and Visibility

Modern architecture leveraging ERP, GRC for effective service and ROI Accurate data repository for user confidence Data delivered in time and in context to every business user IT managed data access controls and security; business user managed

CPM

Synchronize goals, initiatives, metrics with people, accountability and incentives

Intelligently manage resources and exceptions based on priorities

Intelligent action panes plus strong visualization and collaboration

Familiar office tools andintuitive web 2.0 interface

FINANCE Risk Mitigation and Corporate Confidence

Model and optimize all profitability levers Streamlined financial and operational planning

process Self-Service Business Process Flows enforce

requirements Fast, accurate close, consolidated reporting

with full audit trail

People ProcessesResources

IT Free Up Resources, Time and Money for Innovation


Strategize and PrioritizeWith Strong Visualization to aid Communication

Pathways visualize short, medium and long term strategy together with accountability, initiatives and measures aligned to corporate strategy

Custom diagrams help gain useradoption of corporate strategy

Fishbone diagrams highlightcritical inter-dependencies thatmay cause initiatives to fail


Plan and Execute With Familiar Tools for Business Users

Intuitive Web 2.0 interface with Intelligent Action Panes to guide activity and integration with MS Office

Familiar Excel Interface reduces time spent on training and operates from a single data repository


Report and Monitor For Management and Statutory Reporting

Self Service Business Process Flows ensure consistency in process adherence and minimize training

Self-Service Financial Reporting ensures any user can create information on the fly on the web or in Microsoft Excel


Model and OptimizeAll Levers Affecting Profitability

Intelligent Optimization of all profitability driversdown to granular level

Time-Driven Activity-Based Costing models surface the true drivers of product and customer profitability



Next Steps

Why SAP?


SAP CPM Enables Organizations to Close the Gap

USEfor Productivity

SAP Corporate Performance ManagementEnabling Performance Control

SOLUTION

Familiar user experience

Self-Service Business Process Flows™

Intelligent action panes

Intelligent accountability and resource controls

Collaborative custom and patent pending visualization

Live discussions and operational reviews

Intelligent exception management

Modern enterprise architecture

Intelligent optimization of all profitability drivers

Predictive analysis

Fast close with full audit trail

Governance, risk and compliance built-in; integrates with SAP business suite

ADAPTTo Change

PREDICTfor Results


Semiconductor production equipment manufacturer reduced the cost of the monthly reporting cycle by > 66%, while adding weekly and daily information

Media company reduced its budgeting process from weeks to days, while increasing revenues 13%

Benefits to our Customers…Enabling performance control

Leading financial services firm increased net profits by $600 M annually and reduced profitability analysis cycle time by 90%

A public sector agency discovered > $300 million in lost revenue in the first 18 months by tying initiatives to objectives

Oil and gas company improved its planning process by 30% while reducing spreadsheet usage by 99%

“Those who leverage cost-analytics can reduce their cost structure by 3-5%, while those who focus on profitable growth and revenue initiatives can achieve 5-15% of revenue improvements. […] clients routinely achieve a 5-10x payback within 6-12 months on their investment.” Tier 1 Consulting Firm


SAP CPM Changes the Rules for Finance

Built for Finance of 1990


Hard to use, rigid and inflexible

Patchwork products, old architecture

Spreadsheet hell

No confidence in answers

Rear-view budgeting

No linkage to any business process

Unprecedented usability and flexibility

Unified product, modern architecture

Easy interchange of MS Office and web

Governance, risk, compliance built-in

Adaptive and predictive planning

Business process inherently built-in

Existing CPM Solutions SAP CPM Solutions



SAP Enables Performance Control To Reach Your Ultimate Goals

SAP corporate performance managementEnabling Performance Control

SOLUTION ORGANIZATIONAL BENEFITSGOALS

Maximize BusinessProfitability

Optimize OperationalEfficiency

Minimize RiskCompliance/Business

Agility

Visibility

Confidence

Alignment

USEfor Productivity

ADAPTto Change

PREDICTfor Results


SAP’s Solution for Corporate Performance Management

Holistic Financial ManagementFull CFO Suite ( ERP + GRC + CPM ) from world's leading providerof business software with proven expertise in over 25 industries

Complete and Cost Effective CPMSAP’s CPM products have broader coverage and are optimizedto run on proven NetWeaver platform (over 14,000 installations)

Modern and InnovativeSAP CPM is more usable, adaptable and predictive – built for finance of 2010

SAP corporate performance managementEnabling Performance Control



Next Steps

Why SAP?

Enabling Performance Control

DEMONSTRATION


Next Steps


Thank You for Your Time

Questions


Appendix

Additional slides to support the many different sales opportunities.


Help CFOs Drive Financial TransformationWith SAP’s Multi-Year Plan

2002

2005

2007

SAP GRC Risk Management SAP-CISCO GRC Composite

Applications SAP Business Profitability

Management by Acorn SAP Strategy Management SAP Business Planning &

Consolidation

2006

Build

SAP ERP Financials SAP Management of

Internal Controls (MIC) SAP Strategic

Enterprise Management (SEM)

SAP Analytics

2004

SAP GRC Global Trade Services (GTS)

SAP GRC Solutions (SAP xEM, EH&S)

SAP GRC Process Controls SAP GRC Access Controls

Partner Acquire

SAP Offerings for the CFOBuild, Partner, Acquire Strategy


How Does SAP CPM Close the Gap?An Iterative Process for On-going Performance


SAP Offers an Integrated and Complete GRC System for Managing the Sustainability Cycle


INTERNAL USE ONLY-DRAFT


A Tightly Integrated Suite of ERP, GRC, CPM CapabilitiesOnly SAP Addresses ALL CFO Priorities with Appropriate Linkages

Compliance and Audit

AccessControl

RiskManagement

ProcessControl

Environmental Compliance

Global Trade

Business Insight

BusinessIntelligence

Profitability Management

StrategyManagement

PlanningConsolidation,

Fast Close

Financial Transactions and Services

Financial Accounting

(GL, SEC Reports)

Managerial Accounting

Financial Value Chain

Real Estate /Fixed Assets

Treasury and Liquidity

Management

Tax




AccessControl

RiskManagement

ProcessControl


Global Trade

Business Insight



StrategyManagement


Fast Close



(GL, SEC Reports)





Management

Tax

Fast, Accurate, Close




AccessControl

RiskManagement

ProcessControl


Global Trade

Business Insight



StrategyManagement


Fast Close



(GL, SEC Reports)





Management

Tax

Intelligent Risk Management


SAP (today)

ORCL (w/HYSL)

SAP (w/CFO-Suite)

ERP

GRC

CPM

SAP Leadership in the “Office of the CFO”

BusinessConsolidation

BusinessPlanning

Business Profitability

Management

NetWeaver Platform

“SAP is the first significant vendor to focus on the CFO in this way.”

Strategy Management

CPM


SAP CPMFor the Enterprise in Control of Performance

Agility Via empowerment of every stakeholder to communicate, collaborate and

execute on a commonly understood and defined plan of action

Adjust plans and execution as necessary

Visibility Via the ability for all stakeholders in the organization to own, maintain and

share information in time and context

Confidence In and transparency of financial information for regulatory, statutory and

management reporting

Calculated decision making / actions by leveraging a platform that accesses a single version of the truth

Alignment Via synchronization of goals with initiatives, priorities, measures, people,

incentives, business processes, resources and budgets

Complete understanding of the drivers of profitability


Strategize and Prioritize With Strong Visualization to aid Communication

Strategy Maps allow for visualization of strategy in a manner that can be tailored to any end-user

Balanced Scorecard provides a summary view of corporate objectives and their status - weighting metrics based on those that have the most impact on corporate goals


Strategize and Prioritize With Strong Visualization to aid Communication

Balanced Scorecard can expand to show more detail behind key objectives – weighted metrics, trending, actual vs. target plus descriptions, links to external documents and ownership

Discussion Threads enable greater understanding of why key performance indicators have a particular status plus who is taking action and what is being done.



CustomersProductsChannelsSegments

…Transactions

Step 4: Understand HOW you want to

use the information

Step 3: Understand WHERE you want to use this information

Step 1: Understand your company’s core assets

Step 2: Understand all measures of

performance: NOP, Revenue, Cost,

and Capacity



Time-Driven Activity-Based

Costing models surface the true

drivers of product and customer

profitability

Intelligent Optimization of all profitability driversdown to granular level

sap solutions for performance management

Business

managerial accounting financial

business challenge solving

services financial accounting

party web pages

tightly integrated suite

db2 universal database

linkages erp compliance

sap cpm close