Upload
duonglien
View
220
Download
1
Embed Size (px)
Citation preview
© 2011 Wellesley Information Services. All rights reserved.
Proven Strategies for Demonstrating the Value of your SAP BusinessObjects Planning and Consolidation InvestmentGreg StimpsonMethod360
1
In This Session …
• We’ll explore target value metrics we used to pique Executive interest in replacing existing planning systems prior to a successful SAP BusinessObjects Planning and Consolidation implementation
• Dive into user experience deltas between common platforms, including exciting new integration with other applications in the SAP BusinessObjects suite of tools
• Key terms and concepts to avoid during an application deployment validation exercise
• Develop framework for Value Proposition presentation to decision makers
• Quick review of “Executive Interview Template” take away
2
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
Problem Statement
• Identify the problem• Common problems:
• Budgets and forecasts are always delivered late
• I can’t close my books fast enough• I can’t tie my numbers out
• Understand the problem• Common reasons for problems:
• Offline spreadsheets being manually consolidated• Source data from multiple disparate systems• Too many human and system resource dependencies in
the process• Document the problem
• This is a key step PRIOR to meeting with executives. You have to believe in your case to sell it through the organization. 3
Illustrating the Importance of Forecasting
4Make sure your execs are on board with the importance of forecasting before further engagement
“The only function of forecasting is to make astrology look respectable.” ~ JK Galbraith
“The trouble with … forecasting is that it’s right too often for us to ignore, and wrong too often to rely upon it.” ~ Patrick Young
“Forecasting: To observe what has happened, and guess it will happen again.” ~ JK Galbraith
“If indecision is the parent of failure, goal driven operations is the favored son of success.” ~ Anonymous executive sentiment
“Correcting trends through predictive forecasting is key to keeping doors open in the new economy.” ~ Anonymous executive sentiment
“Planning applications are a growing and key investment for executives to trim waist and make corrective business decisions.” ~ Anonymous executive sentiment
Despite the importance of accurate forecasting, the field is beleaguered with stigma
Straightening the Story
• A well-constructed value proposal will tell one story which will stand up to scrutiny and the test of time
• We had to straighten our story and substantiate our claim Even respectable news groups were susceptible to self-
contradiction – We made the conscious decision to avoid falling into this common trap!
• December, 2003. Saddam Hussein captured. Bloomberg News headline:
Bond prices then fell. Bloomberg News headline then read:
• Per Bloomberg, the capture of Saddam caused bond prices to both rise and fall? 5
“U.S. TREASURIES RISE; HUSSEIN CAPTURE MAY NOT CURB TERRORISM.”
“U.S. TREASURIES FALL; HUSSEIN CAPTURE BOOSTS ALLURE OF RISKY ASSETS.”
6
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
Executive Interviews
• Obtain full executive sponsorship by completing and documenting Executive Interviews in your Value Proposition
• Executives are not interested in pursuing projects without established value proposition
• Funneling out wasteful spending and promoting value is a key driver of successful IT operations.
7
Tactical Result
Value Proposition
Business Drivers
Business Value
Executive InterviewsThe Metrics Life Cycle (Take Home) serves as a guide to help ask the right questions of your executives and capture the results.Using the Metrics Life Cycle will help retain focus on business value and strategic vision while keeping the tactical deployment framework in mind.1. Problem statement with a business perspective2. Why the statement is important3. Identify specific measures
Executive Interviews (cont.)
• Top seven value metrics to draw attention from Execs1. Application Integration % of overall IT costs2. Percent of Financial Administration of total revenue3. Forecast accuracy4. Budget accuracy5. Monthly/Quarterly/Yearly close cycle time6. Corporate Ave. Financial Data
Efficiency (CAFDE)7. Total Cost of Ownership (TCO)
9
• There is a growing concern in the market toward the term “Proof of ROI.” ROI is intangible and oversold.
• Trending alternative terms: Value Proposition Value Driven Investment
• Identify the anticipated result from the investment of funds (Cause and Effect)
10
Executive Interviews (cont.)
“The ball rolled!”
“The bear chased the man!”
“It cost us lots of money!”
“The boy kicked the ball…”
“The man poked the sleeping bear…”
“The application was implemented……”
11
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
Take Home Overview
• The Metrics Life Cycle take home will help you:1. Identify business need Key points Single source of data Ease of use Ease of integration Speed to close cycle times
2. Line up key executive interviews Business stakeholders: Business Drivers Business and IT stakeholders: Business Value
3. Build and document business case
12
Do my tactical deployments drive demand for my enterprise?
Interviewee Name Interviewee Title
Interviewer Name Interviewer Title
Notes:
Value Perspective Value Family KPI
Finance Compliance & Regulatory
Customer Competitive Sustainance
Operations Usability
Growth New Market Expansion
Generate Business Value
Adaptibility
Integration Goods on hand
Stephen Vai VP - Marketing
Greg Stimpson Project Manager
Stephen and I reviewed the list of applicable KPI's, and aligned corporate directive with a Customer Integration KPI: - Currently unable to meet swings in demand for goods due to lack of customer visibility to predicted sales - BPC's integration with xCelcius dashboard for goods demand predictibility will be securely web-delivered to applicable vendors.
Business Driver Interview Template• The Business Driver template
Focuses topics and provides a list of common KPIs in the category Captures notes to be used on the final business case delivery to executive management
• Which metrics address the corporate business objectives? • Which metrics drive demand to my enterprise?
Business Driver Winner
• Based on product sales forecasting: Goods on hand Is a PRIMARY Value Metric for Business Driver
14
Vs.
Do my tactical deployments improve the value of my enterprise
Interviewee Name Interviewee Title
Interviewer Name Interviewer Title
Notes:
Value Perspective Value Family KPI
Finance Productivity
Customer Quality
Operations Profitability
Growth Timeliness
Process Efficiency Quarter Close Cycle Time
Cycle Time
Joseph Satriani
Joseph and I reviewed the list of applicable KPI's, and aligned corporate directive with a process efficiency KPI: - Quarter Close Cycle Time is currently 4 business days. Target Cycle Time for this metric is 2 business days. - This will be accomplished by eliminating the use of offline spreadsheets and manually distributing and compiling results
CIO
Greg Stimpson Project Manager
Business Value Interview Template
• Similar to the Business Driver template, but with a different target audience and strategy
• Which metrics address the corporate business objectives? • Which metrics improve operations and process?
16
Business Value Winner
• Based on the virtually identical functionality offerings andusability:• Application Integration as a % of Overall IT Costs
Is a PRIMARY Value Metric for Business Value
Vs.
17
Determining Value with Identified KPIs
• Careful initial cost estimation and consideration of key business drivers and benefits will yield empowering information for project approval
Presenting Your Business Case
• Introduction Strong hook Main point(s) Outline
• Identify – Analyze – Recommend Identify the key issue Perform your analysis Make your recommendations
Main recommendation and one alternative (sell your recommendation) Implementation plan
• Conclude Reference findings Suggest next steps
18
19
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
SAP BusinessObjects Planning and Consolidation vs. Third Party• The following slides illustrate the similarities between the Web
and Excel interfaces available when deploying the three market-leading planning and forecasting applications:
20
SAP/BPC Oracle/Hyperion IBM/Cognos
Functionality and usability
ORACLE IBM
21
SAP BusinessObjects Planning and Consolidation vs. Third Party (cont.)• Functional differences between financial planning applications on
the market is MINIMAL
Function SAP BPC Hyperion CognosTop Down/Bottom UpRolling forecastWhat-if scenario planningDistributionCommentsReportingExcel and WebCentralizedLimited IT involvementDashboarding
Cognos Web Dashboard
22
Selection box, plan data integration, multiple panes
23
Hyperion Web Dashboard
Multiple panes with frames. Various content displayed.
SAP BusinessObjects Planning and Consolidation Web Dashboard
Plan data interface to Web dashboard
25
Cognos Excel Planning
Multiple panes with frames. Various content displayed.
26
Hyperion Excel Planning
Multiple panes displayed – no frames. Formatting fully customizable.
27
SAP BusinessObjects Planning and Consolidation Excel Planning
One or multiple input panes available. Custom format easily customizable.
28
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
SAP BusinessObjects Planning and Consolidation vs. SEM BPS and SAP NetWeaver® BI Integrated Planning• The following slides illustrate the three key differences between legacy SAP
planning solutions and SAP BusinessObjects Planning and Consolidation:
29
SEM BPS BI Integrated Planning
SAP BusinessObjects
Planning and Consolidation
User Control
Single database for actuals/plan dataAnalysis Integration
30
SAP BusinessObjects Planning and Consolidation vs. SEM BPS and SAP NetWeaver BI Integrated Planning (cont.)
Key differences between legacy andSAP BusinessObjects Planning and Consolidation
Function SEM BPS BI IP SAP BPCGUI Based Config
Web Based Config
Prebuilt templates
Custom templates
Variable Integration
Separate Variables
OLAP functions in templates
Analysis integration
Business Driven environment
MS Office Integration
High Volume operational data
Individual cell locking
Planning & Consolidation
User driven scenario modeling
BI IP = SAP NetWeaver BI Integrated Planning; SAP BPC = SAP BusinessObjects Planning and Consolidation
31
SAP BusinessObjects Planning and Consolidation vs. SEM BPS and SAP NetWeaver BI Integrated Planning (cont.)
BPS Excel Interface
Web Designer
Separate Analysis
16 functions
Planning Folders
BPS Security
BPS Variables
BPS0 Configuration
BEx Interface
Web App Designer
BEx Analysis
13 functions
BEx Workbooks
BEx Security
BEx Variables
RSPLAN Web Config
MS Office Interface
Integrated Designer
Integrated Analysis
Multiple functions
User build folders
Integrated Security
Integrated Variables
Integrated Config
BPS BI IP BPC
32
SEM BPS Web Template
SAP’s early legacy Web models were indeed a thin client Web-based delivery, but cumbersome and slow, in retrospect.
33
SAP NetWeaver BI Integrated Planning Web Template
With the introduction of IP, the Web interface improved, and integrated with SAP NetWeaver Visual Composer for graphic display.
SAP BusinessObjects Planning and Consolidation Web Dashboard
Plan data interface to Web dashboard. Full Xcelsius®
integration – now a highly refined Web based interface.
SEM BPS Excel Planning
Early SEM BPS Excel models. Real estate largely absorbed by variables with poor runtimes and slow to render screens.
36
SAP NetWeaver BI Integrated Planning Excel Planning
Far more advanced with SAP BEx integration. Much smoother delivery of content to user.
37
SAP BusinessObjects Planning and Consolidation Excel Planning
Simple or advanced, user controlled Excel interface.
38
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
SAP BusinessObjects Planning and Consolidation — User Experience Demo• Take a look at: The SAP BusinessObjects Planning and Consolidation user
interface Integration with Xcelsius® dashboards Integration with mobile device
39
BPC DEMO
40
41
What We’ll Cover …
• Pending SAP BusinessObjects Planning and Consolidation Project — Setting the Stage
• Value Metrics: Executive Interviews• Metrics Life Cycle — Overview• SAP BusinessObjects Planning and Consolidation vs. Third Party• SAP BusinessObjects Planning and Consolidation vs. SEM BPS
and SAP NetWeaver BI Integrated Planning• SAP BusinessObjects Planning and Consolidation User
Experience Demo• Wrap-up
Resources
• Richard Karlgaard, “Predicting the Future: How the right belief system will help predict the future,” Forbes Magazine (Feb 2006 Issue) “The only function of forecasting is to make astrology look
respectable” – John Kenneth Galbraith “Forecasting: to observe what has happened, and guess it will
happen again” – J.K. Galbraith• “The trouble with … forecasting is that its right too often for us to
ignore, and wrong too often for us to rely on it” – Patrick Young• Bloomberg Headlines: Nassim Taleb in “The Black Swan Theory” Nassim Nicholas Taleb, “The Black Swan: The Impact of the
Highly Improbable,” Random House; 1 edition (April 17, 2007)
42
7 Key Points to Take Home
• Value metrics can be used to define SAP BusinessObjects Planning and Consolidation implementations
• Executive interviews and onboarding is an essential component to obtaining project approval
• Revisiting established metrics throughout the project life cycle will keep executives and stakeholders on early watch of project success/risk
• Ease of integration as a value proposition should not be undersold
• Functionality and usability differences between the three industry leaders in the planning/forecasting space is negligible
• Tools and templates make project approvals as well as implementations easier!
• Application investments are a big budget item. Proper effort should be expended to ensure they are made wisely!
43
45
DisclaimerSAP, R/3, mySAP, mySAP.com, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor controlled by SAP.