Transcript Session Title - SAP BI and BPC by VantagePoint Solutions
A Canvas for Improved Performance: Developing the EPM Roadmap and Business Case for SAP Business Planning and Consolidation
Gary Young VantagePoint
Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2014 Wellesley Information Services. All rights reserved.
In This Session
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Driving performance with BPC Scope of this session
Define the value of Enterprice Performance Management
Establishing the need for SAP BPC
Key steps required to building the business case (an introduction to the performance journey) Intention of this session
Demonstrate an approach that achieves buy-in and adoption
Create a framework that lays the foundation of the project blueprint
Provide a few tools that can lead your journey
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What We’ll Cover
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Defining the Broader Picture of Performance (EPM, BI, BPC) Introduction to the Performance Journey Developing the EPM Roadmap Developing the Business Case Putting It All Together — A Canvas for Performance Wrap-up
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Defining the Value of EPM and BI
Strategy Management
Alignment of Strategy & Financial Processes Distilling Data into Insights
Budgeting Planning & Consolidation ENTERPRISE PERFORMANCE MANAGEMENT Profitability & Cost Management Financial Consolidation
Confidence and Security in Financial Numbers
Process Efficiencies
KNOW SECURE GROW
Business Effectiveness
Acceleration Business Decisions
Data Exploration Reporting & Analysis BUSINESS INTELLIGENCE Dashboards & Visualization Mobile
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Establishing the Need for BPC
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Process Efficiences Automation Reduced cycle time Decrease in data management and increase in analysis
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Business Effectiveness Improved business intelligence Extended knowledge of the business Better business decisions Increased confidence Reduced risk
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Defining the Functionanlity of BPC
Efficiency Tool
Process control Owned by Finance Foundational Intelligence Tool
Single version of the truth Drill down Full view of the business Predictive Modeling Tool
Financial and non-finacial applications Central repository of data
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Defining the Objective of BPC
INSIGHT S Strategic Leadership
Distilling
Financial Leadership Finance & IT HR, Operations & Sales DATA
Provide Insights for Growth
STRATEGY GROWTH
Aligning Accelerating
ACTIVITY DECISIONS
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What We’ll Cover
• • • • • •
Defining the Broader Picture of Performance (EPM, BI, BPC) Introduction to the Performance Journey Developing the EPM Roadmap Developing the Business Case Putting It All Together — A Canvas for Performance Wrap-up
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Introduction
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Identifying Your Position in the Journey
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Requires that you ask the right questions Even when the company thinks it knows the answer
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Requires the right people be in the room Vision can’t be cast from the bottom-up
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Requires consensus on the answers Need to understand the cross functional impact
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What We’ll Cover
• • • • • •
Defining the Broader Picture of Performance (EPM, BI, BPC) Introduction to the Performance Journey Developing the EPM Roadmap Developing the Business Case Putting It All Together — A Canvas for Performance Wrap-up
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Building the EPM Roadmap
Interactive discovery, prioritization, scenerio planning, and reccomendations for addressing business challenges and opportunities Situational Analysis Visioning Gap Analysis
EPM Roadmap
Technology Solution
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Step 1 – Business Discovery
Building the EPM Roadmap (cont.)
Situational Analysis Situational Analysis Baseline A comprehensive look into the business to understand the pains, people, impact, and urgency
Objective:
Create high-level summary of BI needs by LOB and their expected impact if addressed
© 2014 SAP AG. All rights reserved. 11 12
Building the EPM Roadmap (cont.)
Situational Analysis A comprehensive look into the business to understand the pains, people , impact, and urgency Cross-funtional buy-in Typical well-rounded representation: Leadership, IT, Operations, HR, Sales Show the value to the company and to them:
IT (alleviating work) Leadership (alignment and accountability)
Sales (forecasting tool, reporting) HR (security)
It’s about Change Management
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Building the EPM Roadmap (cont.)
2 Expose all options 1 Establish desired end state 3 3 Determine viability 4 Align options to vision Define the mission, vision, and value proposition for all parties impacted by the performance enhancement Strategy Management
Alignment of Strategy & Financial Processes Distilling Data into Insights
Budgeting Planning & Consolidation ENTERPRISE PERFORMANCE MANAGEMENT Profitability & Cost Management Financial Consolidation
Confidence and Security in Financial Numbers
Process Efficiencies
KNOW SECURE GROW
Business Effectiveness
Acceleration Business Decisions
Data Exploration Reporting & Analysis BUSINESS INTELLIGENCE Dashboards & Visualization Mobile 6 Adopt final direction 5 Scenario planning Visioning A collaborative look at what success looks like for Management, LOB Leaders, and IT
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Building the EPM Roadmap (cont.)
Gap Analysis Uncover and prioritze all process, resource, and technolgy gaps hindering the company from moving to the desired end state
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Building the EPM Roadmap (cont.)
Technology Options Budget tied to Strategy Confidence in #s Timely close Forecast accuracy Data analysis Access / Adoption Process efficiencies Determination of viable options and credible constraints for the adoption of systems and support Platform / Application / Version
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Variables to address: Platform constraints Platform direction Breadth of resolution Compatability Ownership Adoptability Functionality/ Interface
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What We’ll Cover
• • • • • •
Defining the Broader Picture of Performance (EPM, BI, BPC) Introduction to the Performance Journey Developing the EPM Roadmap Developing the Business Case Putting It All Together — A Canvas for Performance Wrap-up
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Developing the Business Case
Creat a business justification that provides the details required for a credible and wise performance mangament decision EPM Roadmap Resource Plan
Business Case
Project Economics
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Developing the Business Case (cont.)
Bring the work completed in developing the Roadmap, which includes the identification of need and the viable direction to address it Need & Direction Technology Solution Take the initial research in the Technology Option work and engage IT to help validate the solution (including TCO analysis)
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Developing the Business Case (cont.)
Resource Plan Determine the resources required to see the roadmap executed and the needs addressed
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Developing the Business Case (cont.) Engage the right resources
Resource Plan
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Put the right people on the team – knowledgeable, cooperative, and results-oriented Make process owners and subject matter experts available during the entire process To mitigate risk, spread the work rather then relying only on key people Make sure extended team members understand their roles
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Developing the Business Case (cont.) Establish the right structure
Executive Steering Committee Business Lead Operational Steering Committee Resource Plan Executive Sponsor Project Manager Project Manager Key: Blue Letters = Full Time Orange Letters = Part Time SME Team Technical Lead IT Support Functional Lead Client Partner Application Consultant Environmental Consultant Application Architect Technical Application Consultant
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Developing the Business Case (cont.)
Project Economics Define the cost for implementing the proposed solution and analyze it against the opportunity cost of not doing it Project Costs
Software
Hardware
Internal labor cost
External labor cost Opportunity Cost
Process inefficiencies
Lost profitabilty
Misuse of resources
Production issues due to innacurate forecasting
Disclosure risk
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What We’ll Cover
• • • • • •
Defining the Broader Picture of Performance (EPM, BI, BPC) Introduction to the Performance Journey Developing the EPM Roadmap Developing the Business Case Putting It All Together — A Canvas for Performance Wrap-up
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Putting it all Together
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Requires the Right Plan
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EPM Roadmap Requires the Right Team
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Champion/sponsor, cross-functional, implementation partner Requires the Right Tool Function
Enterprise Reporting Enterprise Dashboards Self Service
Usage
Highly formatted, widely delivered, non-interactive reports Interactive reports Dashboard Highly functional dashboard Simple dashboards/InfoGraphics/Storyboard Excel-based analysis and reporting
Tool
Crystal Enterprise Web Intelligence Dashboards* Design Studio Lumira EPM Add-in for Office Analysis for Office
User
IT Analyst Power User IT Analyst Analyst * interim solution 25
The Results – A Canvas for Performance
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Second Part of the Journey — Implementation
Definition Realization Deployment Deliverables
Efficiency results
Better intelligence/improved decision making Risk mitigation Change management/culture shift
Successful Implementation Top 10 Preparation Tips
#1. Executive Sponsorship +
Is there willingness to provide suffic i ent resources and funding?
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Does the sponsor have authority to make key decisions across functional areas?
#2. Financial Vision +
Is there a clear vision across all stakeholders?
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Gain an understanding of desired output expected from stakeholders.
#3. Clear Requirements +
Do you have existing well documented processes in place?
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Have you discussed potential new processes required and their downstream impact?
#4. Data +
What is the desired level to plan/analyze and does your actual data support this desired level?
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What other metrics are required?
#5. Project Team +
Do you have the right people for the team? Knowledgeable, cooperative, results orientated, etc.
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Is the team properly incented to commit to the project?
#6. Critical Success Factors + +
and agreed on CSF ’s?
Have you considered ongoing maintenance and support as a CSF?
#7. Communication +
Do you have an effective form of communication in place for the project?
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Is there a shared directory available for project artifacts?
#8. Implementation Partner +
Have you developed an adequate RFP to assess vendors?
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Make arrangements to meet your fin l ist s in person.
#9. Project Management + + +
Does your organization contain project management skills?
Will the project manager have proper authority over resources?
#10. Change Management +
Do you expect a high level of change to your current process?
Gain an understandingof where your highest resistance will come from.
Alignment & Insights for Higher Performance Get more from your SAP investment by leveraging our business acumen and technology experience. www.VantagePoint-Solutions.com
(888) 705-2326 27
What We’ll Cover
• • • • • •
Defining the Broader Picture of Performance (EPM, BI, BPC) Introduction to the Performance Journey Developing the EPM Roadmap Developing the Business Case Putting It All Together — A Canvas for Performance Wrap-up
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Getting Started
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Performance Journey Sessions 2 hour direction setting or 2 day deep dive
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Health Check Environmental process review System review Version control Model design (dimensions, calculations, reports) Enterprise Performance Management
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Where to Find More Information
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EPM Roadmap and strategy https://service.sap.com/sap/support/pam
Requires login credentials to the SAP Service Marketplace Harvard Business Review, Harvard Business Review on Collaborating Effectively, Harvard Business Review Press; 1 edition (May 31, 2011).
Energy Giant case study
http://www.vantagepoint-solutions.com/ETPcasestudy White paper, “Achieving success in large, complex software projects” McKinsey & Company (May 2014)
http://www.mckinsey.com/search.aspx?q=achieving+success+in+larg e%2C+complex+software John P. Kotter, Leading Change,” Harvard Business Review Press; 1 edition (November 6, 2012).
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7 Key Points to Take Home
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Think strategically on the front end Develop an EPM Roadmap that guides your path Determine the platform required to achieve results Quantify the business value Get the business buy-in Address the critical change management elements Realize it’s a repeatable process (think big)
It’s a Journey – stay committed
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Your Turn!
How to contact me: Gary Young
+1 770.778.5847
Please remember to complete your session evaluation 32
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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