1. Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2014 Wellesley Information Services. All rights reserved. A Canvas for Improved Performance: Developing the EPM Roadmap and Business Case for SAP Business Planning and Consolidation Gary Young VantagePoint

2. 1 In This Session 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

3. 2 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

4. 3 Defining the Value of EPM and BI

5. 4 Establishing the Need for BPC Process Efficiences  Automation  Reduced cycle time  Decrease in data management and increase in analysis Business Effectiveness  Improved business intelligence  Extended knowledge of the business  Better business decisions  Increased confidence  Reduced risk

6. 5 Defining the Functionanlity of BPC Modeling Tool  Financial and non-finacial applications  Central repository of data  Single version of the truth  Drill down  Full view of the business  Predictive Intelligence Tool  Process control  Owned by Finance  Foundational Efficiency Tool

7. 6 Defining 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

8. 7 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

9. 8 Introduction

10. 9 Identifying Your Position in the Journey Requires that you ask the right questions  Even when the company thinks it knows the answer Requires the right people be in the room  Vision can’t be cast from the bottom-up Requires consensus on the answers  Need to understand the cross functional impact

11. 10 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

12. 11 Building the EPM Roadmap Situational Analysis Visioning Gap Analysis Technology Solution EPM Roadmap Interactive discovery, prioritization, scenerio planning, and reccomendations for addressing business challenges and opportunities

13. 12 Building the EPM Roadmap (cont.) A comprehensive look into the business to understand the pains, people, impact, and urgency Situational Analysis Baseline Current Business State - Assessment

14. 13 Building the EPM Roadmap (cont.) 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) Situational Analysis A comprehensive look into the business to understand the pains, people, impact, and urgency It’s about Change Management Cross-funtional buy-in

15. 14 Building the EPM Roadmap (cont.) A collaborative look at what success looks like for Management, LOB Leaders, and IT Visioning Establish desired end state Expose all options Align options to vision Adopt final direction Scenario planning 1 2 3 4 6 5 Determine viability 3 Define the mission, vision, and value proposition for all parties impacted by the performance enhancement

16. 15 Building the EPM Roadmap (cont.) Uncover and prioritze all process, resource, and technolgy gaps hindering the company from moving to the desired end state Gap Analysis

17. 16 Building the EPM Roadmap (cont.) Determination of viable options and credible constraints for the adoption of systems and support Technology Options Platform / Application / Version Business Challenge Budget tied to Strategy Confidence in #s Timely close Forecast accuracy Data analysis ERP HANA BW / BI Cloud Strategy Mgt. Platform constraints Platform direction Breadth of resolution Compatability Ownership Adoptability Functionality/ Interface Access / Adoption Process efficiencies Disclosure Mgt. BPC Variables to address:

18. 17 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

19. 18 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 Project Economics Business Case

20. 19 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 Technology Solution Need & Direction Take the initial research in the Technology Option work and engage IT to help validate the solution (including TCO analysis)

21. 20 Developing the Business Case (cont.) Determine the resources required to see the roadmap executed and the needs addressed Resource Plan

22. 21 Developing the Business Case (cont.) 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 Engage the right resources Resource Plan

23. 22 Developing the Business Case (cont.) Establish the right structure Resource Plan Application Consultant Functional Lead Application Architect Project Manager Client Partner Project Manager Business Lead Technical Lead Executive Sponsor SME Team IT Support Executive Steering Committee Operational Steering Committee Enterprise Consultant Technical Application Consultant Environmental Consultant Key: Blue Letters = Full Time Orange Letters = Part Time

24. 23 Developing the Business Case (cont.) Define the cost for implementing the proposed solution and analyze it against the opportunity cost of not doing it Project Economics 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

25. 24 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

26. 25 Putting it all Together Requires the Right Plan  EPM Roadmap Requires the Right Team  Champion/sponsor, cross-functional, implementation partner Requires the Right Tool FunctionUsageToolUser Enterprise ReportingHighly formatted, widely delivered, non-interactive reports Interactive reports Crystal Enterprise Web Intelligence IT Analyst Enterprise DashboardsDashboard Highly functional dashboard Dashboards* Design Studio Power User IT Self ServiceSimple dashboards/InfoGraphics/Storyboard Excel-based analysis and reporting LumiraAnalyst EPM Add-in for Office Analysis for Office Analyst * interim solution

27. 26 The Results – A Canvas for Performance

28. 27 Second Part of the Journey — Implementation Definition Realization Deployment Deliverables  Efficiency results  Better intelligence/improved decision making  Risk mitigation  Change management/culture shift

29. 28 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

30. 29 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

31. 30 Where to Find More Information EPM Roadmap and strategy  https://service.sap.com/sap/support/pam 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 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 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).

32. 31 7 Key Points to Take Home 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

33. 32 Your Turn! How to contact me: Gary Young gyoung@vantagepoint-solutions.com +1 770.778.5847 Please remember to complete your session evaluation

34. 33 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.