predictive analytics for corp functions

Predictive Corporate Functions

Henner Schliebs, July 2013

Predictive Finance

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

Finance Excellence: Guidance on, Guiding for the future

Core functions of effective finance organizations include:

Reporting of historic financial information

AND

Guidance on and guiding expected (future) results

source: Association of Accountants and Financial Professionals in Business (IMA): Conceptual Framework for Managerial Costing


The Finance Conundrum: What is the future ?

Plans tell us where we want to go (vision), not where we are heading (direction)

Based on the past, what is likely going to happen ? Which factors are correlated with or impact the future ?

Vision (Plan)

Direction (Reality)

Indicators (Trends)

Past Performance


SAP Predictive Analysis - Finance Use Cases (examples)

Cost, margin and other financial trends

Time series (Forecasting)

Profitability analysis (A also bought XYZ)

Associations (Identification)

Optimized performance management

Classification (Decision Trees)

Proactive detection of financial risks

Outliers (Anomaly detection)

Late payers - attributes (Receivables)

Clustering (Segmentation)

Company performance (external factors)

Classification (Correlations)

Analyze

Optimize


SAP Predictive Analysis - Key Finance process component

SAP Predictive Analysis allows end-to-end SAP coverage for the record-to-act management process. Results of the analysis process step are used to take action (plan, re-plan, or management action outside SAP system)

Record Report Analyze Act

SAP Predictive Analysis

SAP Net Margin Analysis

SAP Business Planning

SAP ERP

SAP EPM

BOBJ BI platform

SAP Accelerators

SAP ERP foundation

SAP Accelerators

Record-to-act management process


Manage Financial Risk

SAP Predictive Analysis - Finance Value Proposition

Optimize business opportunities

Outperform Financial Objectives

Reach your business goals faster by turning dormant data into new opportunities

Stay agile and gain a competitive edge with efficient forecasting and planning

Solve problems before they happen by exposing hidden risks and hazards

Flow of people


SuccessFactors BizXWhat if we better understand the Flow of People at SAP?

…We could show our internal talents a much broader range of realistic and proven paths for professional development and career progression at SAP and in this way promote triple career pathing.

… We better understand the internal flow of talents and could think what to do to increase the number of key positions filled successfully internally

…We could identify critical patterns that more often than not result in less successful internal movements, analyze the route causes and probably define actions to improve selection (match-to-job) and/ or improve onboarding to increase sustainability

Currently our focus in communication and supporting career planning/ pathing is on movements within or job families, real life teaches us many people move between functional areas.

…We could tell Early Talent that once they join SAP “they don´t need to change when they are up for a change” and contribute to a strong Employer Branding towards Milleniums


Examples for considerations/ business impact that could be derived from understanding the Flow of People at SAP

Increase Flexibility and Agility of the Organization

Support Career Planning for Individuals

Understand and Forecast Internal Supply Chain

Globally 30% of open positions in Marketing were filled with people coming from Sales & Pre-Sales

functions.

People who move out of Development rather join Pre-Sales & Sales (50%) than Consulting (30%)

20% of people moving from a Development function into a Marketing function other than

“Solution Marketing” have left SAP within 12 months after their move or

had performance ratings below “meets expectations”

We are facing a paradigm shift in Marketing (pull vs. push, social marketing) and a change in the regional/ solution focus. With these changes ahead can we assume the same numbers for internal supply for Marketing in the future coming from Sales & Pre-Sales?

Potential Impact Dimension of Flow of People Analysis

Example of Findings

Considerations /Follow Up Actions What can we do to

increase the flow into Consulting roles from the internal workforce in Development? As also sales/ pre-sales people travel mobility cannot be the only hindering factor.

Understand from Marketing perspective of Marketing more inclusion of talent from Development is desired, if so consider related actions to support onboarding/ improve selection and consider alternative ways to support inclusion e.g. job rotation/ fellowships.


SAP Predictive Analysis – SAP Internal Use Case for HR„Flow of People“

Focus: Analysis of internal transfers across job families and functional areas

Expected Results: Identify re-curring and unhealthy patterns of career moves, classify and segmentated job groups as basis for further analysis by HR BPs

Business drivers:

Increase organizational agility

Reduce talent attrition,

Increase employee engagement


SAP Predictive Analysis – SAP Internal Use Case for HR„Flow of People“

Employee Performance Analysis


Effectiveness Analysis (successful career path)


Optimized career path management


Turnover- attributes


Analyze

Optimize


SAP Predictive Analysis – HR Use Cases (examples)

Employee Performance Analysis


Effectiveness Analysis (successful career path)


Optimized career path management


Proactive detection of talent turnover

Outliers (Anomaly detection)

Turnover- attributes


Workforce performance (movements)

Classification (Correlations)

Analyze

Optimize


Manage Retention Risk

SAP Predictive Analysis – HR Value Proposition

Optimize employee performance

Outperform HR Objectives

Evaluate your most important asset (employee) like you do for all other assets to create a performing and efficient organization

Stay agile and gain a competitive edge with a strong employer brand and a sophisticated workforce plan

Keep your high potentials and top performers within your organization - proactively

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Henner SchliebsAnalytics Product Marketing

@hschliebshenner

[email protected]

hschliebs

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