Upload
praveen
View
217
Download
0
Embed Size (px)
Citation preview
BPC Customer Spotlight: Bell Canada
Mario Barbieri,
Associate Director Finance,
Bell Canada
SAP BPC Implementation ProjectPlanning, Budgeting & Forecasting
May 30, 2013
Page 74 | May 30 2013 | PUBLIC
Agenda
Company description
Context of the BPC implementation
Our current BPC landscape
Transfer process
The evolution of our BPC solution
Question period
Page 75 | May 30 2013 | PUBLIC
Who we are
Bell is operating in 4 segments: • Bell Wireline• Bell Wireless• Bell Media• Bell Aliant
Segments are further broken down in Lines of Business or Units (i.e. TV,
Internet, Home Phone, Bell Business Markets, Wholesale, Field Services)
54,000 employees
2012 Operating revenues of $20B
We have one goal: To be recognized by customers as Canada’s leading
communications company
Page 76 | May 30 2013 | PUBLIC
Context of the BPC implementation
Multiple tools required to document
budget, plan, and forecast
Existing tools were built on
older technology making them expensive to
modify
Process highly manual,
decentralized and prone to
error
Inability to perform
modelling with existing tools
Confirmed the need for a new corporate-wide planning tool
Page 77 | May 30 2013 | PUBLIC
Project objectives
Accommodate submission, aggregation and consolidation (intercompany eliminations) processes and BU specific modeling
Improve and accelerate month-end reporting and standardize processes across Finance
Leverage prior investment in SAP, by integrating SAP BusinessObjects into the SAP platform (BW data, BWA, ERP)
Setup a common platform to document the plan, budget and forecast
Objectives Results
5 systems decommissioned and replaced by 1 corporate-wide planning system: BPC
Standard BPC intercompany elimination now used and various submission methods are available. Driver-based models are currently being developed.
Leveraging BPC offline distribution and BPC journal entries to accelerate month-end reporting
Daily and intra-day interfaces are in place between BW and BPC using delta loads. Master data refreshed automatically from SAP on a regular basis.
All corporately reported results are sourced from BPC and new metrics are added monthly
Decommission corporate legacy systems and all LOB-specific systems
Page 78 | May 30 2013 | PUBLIC
How is BPC used at Bell?
BPC Users
• 600 users mostly in Finance and growing
• 5 major subsidiaries• 10 line of business spanning: IT, Wholesale, Corporate, Bell TV, Bell Media, etc.
What is documented
• Financial – Mostly P&L, and Balance sheet for one LOB
• Headcount – End of period employee, full-time equivalent, etc.
• Metrics - Business unit specific operational drivers (e.g. subscribers, Average Revenue Per Unit, etc.)
Processes
• Budget – documented in November for the following 12 months
• Forecast – Corporate forecast documented 3 times a year and BU specific on a monthly basis
• 3-year Plan – Documented as part of the Strategic Planning process
• Outlook – Documented just prior to month-end close or at mid-month (as required)
• Actual – For metrics only (each BU obtains this information from various sources and loads it into BPC for month-end)
Reporting
• Corporate month-end Management reporting
• BU Management reporting
• Planning related reporting
• CRTC reporting
Support
• Managed by the Finance department. Limit the use of BADI where possible to keep flexibility and control within Finance.
• Key structural items (Dimensions, cubes, etc.) are transported. Scripts , IS and reports are ported.
Page 79 | May 30 2013 | PUBLIC
BPC applications – as of May 2013
Corporate
P&L
TAFIFinancial transfer
TAHRHeadcount
transfer
HRHeadcount
MetricsFinancial metrics
Media FIMedia P&L and Balance sheet
BRSResidential P&L
RateFX rates
SAP Business Warehouse (BW 7.0 with BWA) - Staging area
BPC (7.5 NetWeaver)
SAP ECC 6.0
Page 80 | May 30 2013 | PUBLIC
Our landscape - Financials
Corporate• Documentation of the
official financial plan, budget, forecast
• Corporate reporting
BRS• Documentation of the
financial plan, budget, forecast for the Residential Business unit
• BU specific reporting
MediaFI• Documentation of the
financial plan, budget, forecast for the Residential Business unit
• BU specific reporting
TAFI• Documentation of
financial transfers • Discussed in more detail
later on
Applications
Dimensions # of members # of hierarchies Corporate BRS MediaFI TAFI
CATEGORY 153 - � � � �
ACCOUNT 13,587 4 � � � �
TIME 217 2 � � � �
COST CENTER 42,848 8 � � � �
TRADING PARTNER 365 1 � � � �
DATA SOURCE 149 1 � � � �
POSTING LEVEL 7 2 � � � �
REPORTING CURRENCY 2 - � � � �
BIZ TYPE 169 2 �
DEPARTMENT 105 1 �
VENDOR 1135 1 �
TAGROUPID 1404 1 �
TAID 307 1 �
TAFROMTO 2 1 �
Page 81 | May 30 2013 | PUBLIC
Our landscape – HR & others
HR• Documentation of the
official EOP/FTE plan, budget, forecast
• Corporate and BU reporting
TAHR• Documentation of
EOP/FTE transfers• Discussed in more detail
later on
Metrics• Documentation of the
official operational metrics plan, budget, forecast
• Corporate and BU reporting
Rate• Used to hold the
currency conversion exchange rates and other global drivers
Applications
Dimensions # of members # of hierarchies HR TAHR
CATEGORY 153 - � �
ACCOUNT HR 6 1 �
TIME 217 2 � �
COST CENTER 42,848 8 � �
EMPLOYEE 34,857 1 �
BARGAINING UNIT 28 1 � �
FORCE STATUS 15 1 � �
TIER 13 1 � �
EMPLOYEE GROUP 9 1 � �
BILLABLE 4 1 � �
FULL TIME/PART TIME 4 1 � �
MANAGEMENT 3 1 � �
DATA SOURCE 149 1 � �
TAGROUPID 1404 1 �
TAID 307 1 �
TAFROMTO 2 1 �
Applications
Dimensions
# of
members
# of
hierarchies Metrics Rate
CATEGORY 153 - � �
ACCOUNT METRICS 271 1 �
TIME 217 2 � �
BUSINESS UNIT 47 2 �
PRODUCT 42 2 �
DISTRIBUTION
CHANNEL 28 1 �
NETWORK
TECHNOLOGY 20 2 �
CUSTOMER TYPE 15 1 �
REGION 15 1 �
POSTPAID/PREPAID 4 1 �
DATA SOURCE 149 1 �
RATE 2 - �
RATE ENTITY 1 - �
INPUT CURRENCY 20 - �
Page 82 | May 30 2013 | PUBLIC
Implementation challenges
Under estimated change management efforts
Willingness of users and process owners to let go of the old tools
Incorporating needs from diverse groups
Offering users the same flexibility as the previous manual process
Training was conducted before each planning cycle, and various techniques were used:
F2F, tips & tricks, e-learning, clips, desk guide
Main planning cycles were conducted in parallel so that users could reconcile results
between the two tools
Created a monthly forum for BU coordinators to voice their needs and include in project
feedback
Provided access to the BU coordinators to run specific data manager packages to facilitate
their processes
Page 83 | May 30 2013 | PUBLIC
Lessons learned
Finding skilled resources to help with development was a challenge
Underestimated the integration efforts with SAP BW
Creating two applications with exactly the same dimensions is not a best practice
BW environment impacts the performance on your BPC platform
• Brought in experts for specific development items
• Built the expertise internally, including training material on scripting
• Issue with data stored at parent nodes in BW• Many BW dimension members had to be
renamed• Work-around required since BPC 7.5 does not
handle time-dependent hierarchies
• The administrative effort to maintain the two applications outweighs the benefits of ownership and performance
• We refined our governance around when a new application needs to be built
• BW Accelerator available in our BW was a MUST to meet performance expectations
• Dependency on BW jobs/processes impacts predictability of BPC – issue to address as part of our BW/BPC roadmap
Page 84 | May 30 2013 | PUBLIC
Transfer process
• For financial reporting purposes Bell aligns budgets, forecasts and historical actuals to current organizational and reporting structures.
• Transfers eliminate the 'noise' associated with year-over-year variances and allow for better decision-making
Purpose
• Organizational changes: people, teams, or functions moving within the organization
• Transfer of functions to a subsidiary from Bell
• Company wide re-organizations (budget reduction)
Triggering events
• The data that is most often restated via the transfer process are Revenues, Expenses and HeadcountData
• Transfers never impact financial results previously reported externally.
• Headcount transfers need to be processed at the individual employee level to keep HR data in sync
• Transfers impacting reported LOBs and accounts require approval
Complexity
Page 85 | May 30 2013 | PUBLIC
Transfer process
A solution was introduced to track individual transfers and control the approval process. It combines: - Input schedules validations and
controls- BPC validation rules- Additional intelligence via SAP
BADI (ABAP)
Page 86 | May 30 2013 | PUBLIC
What’s coming up for Bell’s BPC platform?
Compensation, commission and other driver-based models
BW upgrade to 7.3 and BPC upgrade to V10 (on HANA)
Migration of consolidation functionalities from Hyperion Enterprise to BPC 10*
2013
2015
* Equity Elimination, Cash Flow, Full Balance Sheet, Notes to Financial Statement
Page 87 | May 30 2013 | PUBLIC
Driver based models
Compensation Model
- Models headcount (FTE and EOP) needs at the individual employee level
- Calculates salary expenses based on each employee’s hourly rate
- Calculates other employee related expenses (benefits, taxes, bonus, etc.) and allocates across valid cost centers
- Performs variance analysis against actual at the employee level and waterfall reports
- Allows planner to add new headcount using “master data on the fly”
Commission model
- Models commission payment made by our Wireless business unit to the various retailers
- Leverages subscriber activation assumptions and contractual commission rates
- Determines Cost of Acquisition (COA) and Cost of Maintenance (COM)
- Performs variance analysis against actual and Marketing assumptions
Page 88 | May 30 2013 | PUBLIC
Our rationale for upgrading to BPC 10
Removes dependencies between BW and BPC, improves predictability of the BPC system (by deploying a separate BW 7.3/HANA instance)
Improves performance of the BPC system and avoids performance deterioration during peak usage period or during processing of month-end activities (by introducing HANA in-memory database)
Introduces a toolset that is simple for users to use and adopt, is easy to administer by the support team and is easy to find an expert to assist with new development activities (by upgrading BPC to version 10)
Enables the migration of the Consolidation processes from the obsolete Hyperion Enterprise (by leveraging the advanced consolidation functionalities available in BPC version 10)
Page 89 | May 30 2013 | PUBLIC
Future landscape – BPC upgrade
SAP BPC V10
PLANNING
BEx AnalyzerEPM Excel Add-in
/ Web client
BWA
CONSOLIDATIONS
HANA
SAP BW 7.3
SAP BW 7.0
BPC BW (Unicode)
Corporate BW (Non-Unicode)
NEW
Page 90 | May 30 2013 | PUBLIC
HANA proof of concept with SAP
ScenarioBPC 7.5 NW with
BWA
BPC 10 SP9 on
HANA
Copy Budget from CORPORATE app to BRS * 17-21 minutes 26 seconds
Copy TAFI to Corporate DMP - Calling custom logic (65,000 record generated and submitted) *
1 hour 54 minutes (on busy workdays)
46 seconds
Intercompany eliminations (consolidation) 3 years of data
7 minutes(100,000 records)
6 minutes **(2,478,082 records)
Lite optimize of Corporate app 26 minutes 54 seconds
Input 12,000 records via input schedule 2-3 minutes 10 seconds
Process cost center dimension (43,000 members) 18 minutes 3 minutes, 10 seconds
Report EVDRE multiple full expansion 20 minutes N/A ***
* Issue with invalid members, required notes 1803288, 1810979, 1815456, 1835293 to solve issue
** Issue identified with hierarchy selection box not working (fixed in SP14 Patch1 of EPM 10 add-in)
*** EVDRE report did not complete with memory error - Scheduled to be fixed in EPM 10 Add in SP14
• SAP migrated our live application set from 7.5 to 10 using UJBR
• SAP ran program BPC_HANA_MIGRATE_FROM_10 in TC SE38 to make a standard BPC 10 infocube HANA optimized
• SAP used a dedicated BPC 10 system to perform this proof of concept
• A number of issues were uncovered during the proof of concept and subsequently addressed
Questions?