How to Extract the Greatest Value
from SAP Business Planning and
Consolidation Across the
Organization
Gary Young
VantagePoint
Produced by Wellesley Information Services,
LLC, publisher of SAPinsider. © 2014 Wellesley
Information Services. All rights reserved.
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
2
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
3
Defining the Value of EPM and BI
Strategy
Management
Budgeting
Planning
&
Consolidation
Alignment of
Strategy &
Financial
Processes
ENTERPRISE
PERFORMANCE
MANAGEMENT
SECURE
GROW
Business Effectiveness
Distilling Data
into Insights
Reporting
&
Analysis
Financial
Consolidation
Confidence and
Security in
Financial Numbers
Process Efficiencies
KNOW
Data
Exploration
Profitability
&
Cost
Management
BUSINESS
INTELLIGENCE
Acceleration
Business Decisions
Dashboards
&
Visualization
Mobile
4
Success in EPM — Alignment and Insight
5
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
6
The Purpose
The Goal
The Need
Improved performance and managed
growth across the enterprise
Empowered decisions, process
control, and mitigation of risk
Enterprise
Performance
Management
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The Process
A closed-loop process that provides control to leaders who are
continually responding to business challenges and new reporting
demands
6. Financial / GAAP reporting
1. Strategic five year plan
2. Annual budget
5. Consolidation
3. Management and ad hoc
4. Forecasting / Modeling
reporting / dashboards
8
The Platform
Financial Application… for Finance
• SAP extractors
• Multiple sources
Enterprise
Performance
Management
• Excel interface
• Financially aware
• Single version of the truth
• Robust functionality
• Flexible
9
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
10
Requires a New Mindset
Think Big
Start Small
Go Deep
Perform
11
Platform
BPC Mindset
1
Paint the bigger picture
2
Solve the problem at hand
3
Close the loop
4
Integrate a BI interface
5
Leverage beyond finance
EPM
Platform
12
BPC Mindset
1
•
•
Paint the bigger picture
Develop the EPM Roadmap
 Situation analysis
 Vision planning
 Gap Analysis
Leverage
beyond finance
 Technology
solution
Establish credibility in the overall direction
Situational
Analysis
Visioning
Gap
Analysis
Technology
Solution
EPM Roadmap
13
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
14
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
15
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
16
BPC Mindset (cont.)
3
•
•
•
•
•
Close the loop
finance
& Transactional
Reports Leverage beyondOperational
Data discovery
Informational
Dashboards
Advanced analytics
Strategic
Predictive analytics
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BPC Mindset (cont.)
3
•
•
Close the loop
Forecast Leverage beyond finance
 Rolling forecast, sensitivity analysis, re-forecast, version
comparison
Modeling
 Financial, sales & operational, optimization
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BPC Mindset (cont.)
3
•
Close the loop
Financial consolidation
 Entity close cycle
 Intercompany reconciliation
 Data submission for corporate close
Controlling
Consolidations
Internal Audit
19
BPC Mindset (cont.)
3
•
Close the loop
Financial / GAAP reporting
 Corporate close
 Financial management review
 External financial reporting
Controlling
Consolidations
Internal Audit
20
Platform
BPC Mindset (cont.)
1
Paint the bigger picture
2
Solve the problem at hand
3
Close the loop
4
Integrate a BI interface
5
Leverage beyond finance
EPM
Platform
21
Platform
BPC Mindset (cont.)
1
Paint the bigger picture
2
Solve the problem at hand
3
Close the loop
4
Integrate a BI interface
5
Leverage beyond finance
EPM
Platform
22
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
23
The Objective of BPC
INSIGHT
S
STRATEGY
GROWTH
Aligning
Accelerating
ACTIVITY
DECISIONS
Strategic Leadership
Distilling
Financial Leadership
Finance & IT
HR, Operations & Sales
DATA
Provide Insights for Growth
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Operational
Modeling
Dashboards
Profitability
CAPEX
HCM
S&OP
Disclose
Consolidation
Forecast
Reporting &
Analysis
Budget
•
Strategic
Planning
The Breadth of BPC
Applications and functions
Platform / Application / Version
Finance
HR
Operations
Sales
Marketing
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Operational
Modeling
Dashboards
Profitability
CAPEX
HCM
S&OP
Disclose
Consolidation
Forecast
Reporting &
Analysis
Budget
Strategic
Planning
•
Business Function
The Breadth of BPC (cont.)
Aplications and functions
Platform / Application / Version
Finance
HR
Operations
Sales
Marketing
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Integration with Analysis Tools
•
Aplications and functions
Parameterdriven 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
28
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
29
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
30
Case Study — Energy Transfer Partners
•
Massive growth $5.4B to $47.7B in
just four years
Rapid acquistions created a series of challenges:
 Different financial systems
Rapid acquistions created a series
of challenges:
 Multiple chart of accounts
financial systems
 Time and effort to consolidate and produceDifferent
reports
 Manual processes
Multiple chart of accounts
 Confidence in data
Time and effort to consolidate
 Lack of flexibility
and produce reports
Manual processes
Confidence in data
Lack of flexibility
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Case Study (cont.)
Preparation is
Mission Critical
1.
Know your mission
2.
Build a team
3.
a.
Functional
b.
Collaborative
c.
Vested
Getting
there
Tool and equip for success
a.
SAP BPC
b.
Train
c.
Experience
Preparation
32
Case Study (cont.)
Getting
there
Build the
Platform
Streamline Consolidations
Mission – data integration and process
mapping
Consolidation
Key Insight
Know the overall mission
33
Case Study (cont.)
Getting
there
Build the
Platform
Shorten Cycle Time and
Improve Accuracy of the
Budgeting Process
Budgeting
Mission – increase the integrity of:
1.
Annual Budget
2.
Headcount Planning
3.
Capital Project Dollars
4.
Margin Planning
Key Insight
Leverage the tool
34
Case Study (cont.)
Getting
there
Build the
Platform
Monthly Rolling Forecast
Rolling Forecast
Mission – Finance recast
Key Insight
Capitalize on work
completed
35
Case Study (cont.)
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 missions
Solving the consolidation challenge opened opportunities to
address related business processes
36
Case Study (cont.)
Leverage the Platform
to Gain Insights
Getting
there
Mgt. Reporting
Management Reporting
Mission – Enhance reporting and business
insights
1.
Include metrics and non-financial drivers
2.
Segmentation analysis
3.
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 Insight
Take Creative Freedom
and Realize Possibilities
37
Case Study (cont.)
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.
38
Case Study (cont.)
Arriving
there
Go Beyond
Pinnacle
Performance
Real-Time Decisions
Mission – Enable meaningful daily
decisions
Model operational activities to facilitate
impactful decisons
Key Insight
Take Creative Freedom
and Realize Possibilities
39
Case Study (cont.)
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
40
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
41
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)
Enterprise
Performance
Management
42
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%2fkaltechgrou
p.com%2fsap-showcase&sid=fe7c8b495d6e60b8818fbc6a84bc116b
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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
gyoung@vantagepoint-solutions.com
+1 770.778.5847
Please remember to complete your session evaluation
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companies. Wellesley Information Services is neither owned nor controlled by SAP SE.
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