Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2014 Wellesley Information Services. All rights reserved. How to Extract the Greatest Value from SAP Business Planning and Consolidation Across the Organization Gary Young VantagePoint

1 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

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 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

4 Defining the Value of EPM and BI

5 Success in EPM — Alignment and Insight

6 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

7 The Purpose The Goal Improved performance and managed growth across the enterprise Enterprise Performance Management The Need Empowered decisions, process control, and mitigation of risk

8 The Process 1. Strategic five year plan 2. Annual budget 3. Management and ad hoc reporting / dashboards 4. Forecasting / Modeling 5. Consolidation 6. Financial / GAAP reporting A closed-loop process that provides control to leaders who are continually responding to business challenges and new reporting demands

9 The Platform Enterprise Performance Management SAP extractors Multiple sources Excel interface Financially aware Single version of the truth Robust functionality Flexible Financial Application… for Finance

10 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

11 Requires a New Mindset Think Big Go Deep Perform Start Small

12 1 Platform BPC Mindset Solve the problem at hand Close the loop Leverage beyond finance EPM Platform 5 2 Integrate a BI interface 3 4 Paint the bigger picture

13 1 BPC Mindset Leverage beyond finance Paint the bigger picture Develop the EPM Roadmap  Situation analysis  Vision planning  Gap Analysis  Technology solution Establish credibility in the overall direction Situational Analysis Visioning Gap Analysis Technology Solution EPM Roadmap

14 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

15 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

16 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

17 BPC Mindset (cont.) 3 Close the loop Leverage beyond finance Reports Data discovery Dashboards Advanced analytics Predictive analytics Operational & Transactional Informational Strategic

18 BPC Mindset (cont.) 3 Close the loop Leverage beyond finance Forecast  Rolling forecast, sensitivity analysis, re-forecast, version comparison Modeling  Financial, sales & operational, optimization

19 BPC Mindset (cont.) 3 Close the loop Controlling Consolidations Internal Audit Financial consolidation  Entity close cycle  Intercompany reconciliation  Data submission for corporate close

20 BPC Mindset (cont.) 3 Close the loop Financial / GAAP reporting  Corporate close  Financial management review  External financial reporting Controlling Internal Audit Consolidations

21 1 Platform BPC Mindset (cont.) EPM Platform Solve the problem at hand Close the loop Leverage beyond finance Integrate a BI interface Paint the bigger picture

22 1 Platform BPC Mindset (cont.) EPM Platform Solve the problem at hand Close the loop Leverage beyond finance Integrate a BI interface Paint the bigger picture

23 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

24 The Objective of BPC MI / MES / CRM / HCM Data Creation ERP EPM BI Data Collection & Validation Process & Reporting Analytics Finance & IT HR, Operations & Sales Strategic Leadership Financial Leadership DATA INSIGHT S ACTIVITY STRATEGY DECISIONS GROWTH Aligning Distilling Accelerating Provide Insights for Growth

25 The Breadth of BPC Applications and functions Platform / Application / Version Finance HR Operations Sales Marketing Strategic Planning Budget Reporting & Analysis Forecast Consolidation Disclose S&OP Operational Modeling Dashboards HCM CAPEX Profitability

26 The Breadth of BPC (cont.) Aplications and functions Platform / Application / Version Business Function Finance HR Operations Sales Marketing Strategic Planning Budget Reporting & Analysis Forecast Consolidation Disclose S&OP Operational Modeling Dashboards HCM CAPEX Profitability

27 Integration with Analysis Tools Aplications and functions Parameter- driven reports

28 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

29 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

30 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

31 Case Study — Energy Transfer Partners Rapid acquistions created a series of challenges:  Different financial systems  Multiple chart of accounts  Time and effort to consolidate and produce reports  Manual processes  Confidence in data  Lack of flexibility Massive growth - $5.4B to $47.7B in just four years Rapid acquistions created a series of challenges: Different financial systems Multiple chart of accounts Time and effort to consolidate and produce reports Manual processes Confidence in data Lack of flexibility

32 Case Study (cont.) Preparation is Mission Critical Preparation 1.Know your mission 2.Build a team a.Functional b.Collaborative c.Vested 3.Tool and equip for success a.SAP BPC b.Train c.Experience Getting there

33 Case Study (cont.) Build the Platform Consolidation Streamline Consolidations Mission – data integration and process mapping Key Insight Know the overall mission Getting there

34 Case Study (cont.) Build the Platform Budgeting Shorten Cycle Time and Improve Accuracy of the Budgeting Process Mission – increase the integrity of: 1.Annual Budget 2.Headcount Planning 3.Capital Project Dollars 4.Margin Planning Key Insight Leverage the tool Getting there

35 Case Study (cont.) Build the Platform Monthly Rolling Forecast Mission – Finance recast Key Insight Capitalize on work completed Rolling Forecast Getting there

36 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 Case Study (cont.)

37 Case Study (cont.) Leverage the Platform to Gain Insights 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 Getting there

38 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. Case Study (cont.)

39 Case Study (cont.) Go Beyond Real-Time Decisions Mission – Enable meaningful daily decisions Model operational activities to facilitate impactful decisons Key Insight Take Creative Freedom and Realize Possibilities Pinnacle Performance Arriving there

40 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 Case Study (cont.)

41 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

42 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 EMPOWER IMPLEMENT ARCHITECT

43 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   Requires login credentials to the SAP Service Marketplace Energy Transfer Partner’s case study  SAP Solution in Detail: Streamlined Planning and Consolidation for Finance Teams in Any Organization  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

44 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

45 Your Turn! How to contact me: Gary Young Please remember to complete your session evaluation

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