Next Generation ERP Business Planning
David Ormerod, EPM Centre of Excellence, SAP EMEALondon Financial Planning & Analysis Event, 14 October 2015
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ü Agility is an increasinglyimportant source ofcompetitive advantage.
ü IT systems for FP&A arefalling short of intensifyingdemands for real-time, ad-hocanalysis.
ü Tight integration betweenfinancial planning systemsand core ERP supports moreeffective decision making.
ü Pressure on finance teams toimprove their contribution tohigh-value planning andanalysis is increasing.
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Respondents expect the demand for ad-hoc decisionsupport and analysis from finance to increase
“Over the next two years, the demand for ad-hoc decision support and businessanalysis from finance is likely to ____”
© CFO PUBLISHING LLC THE FUTURE OF FINANCIAL PLANNING AND ANALYSIS MAY 2015
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Are More Systems the Answer?
ERP 01
ERP 01 CRM01
ERP 01
ERP 12ERP 01
ERP 73 ERP 01
ERP 01 CRM01
ERP 12ERP 01
ERP 73ERP 01
ERP 01
ERP 12
ERP 01
ERP 17
ERP 01
ERP 01
ERP 28ERP 01 CRM01
ERP 73ERP 01
ERP 01ERP 01
ERP 12
ERP 73
NewPlan
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Importance of integration between planning systems andcore-ERP
Respondents with financial planning systems that are very tightly-integratedwith core ERP systems are much more likely to say their IT systemssubstantially contribute to finance’s ability to support decision making.
© CFO PUBLISHING LLC THE FUTURE OF FINANCIAL PLANNING AND ANALYSIS MAY 2015
Percentage of respondents in eachcategory who say their companies’ ITsystems “substantially contribute” tofinance’s ability to support decisionmaking (n=134).
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Requirements for Financial Planning
Key Axioms: Planning needs to be based on timely Actuals and ‘Joined Up’ acrossmultiple business areas
Three fundamental approaches:
plan in the ERP
plan in a Data Warehouse
plan using Data-marts
Ease
ofU
se
Flex
ibilit
y
‘Joi
ned-
Up’
‘Tim
elin
ess’
ERP
Alig
nmen
t*
*ERP Master data and Methods
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Planning Architectures
Goal: Interoperability
IT Centric
ü Same persistency model
ü Same core operations
ü High consistency
IT-owned
Goal: Ease of use
Line of Business Centric
ü Business user-oriented UI
ü High flexibility
ü Collaboration
LOB-owned
Enterprise DataWarehouse Data Mart
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SAP Planning Platform Evolution
BW-IPSAP Business PlanningSAP Business Planningand Consolidation 7.x
version for SAPNetWeaver
BW-IP
DB
BPC NW
DB
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SAP HANA
SAP Planning Platform Evolution
BW-IPSAP Business PlanningSAP Business Planningand Consolidation 10.0
version for SAPNetWeaver
BW-IP BPC NW
Planning Engine
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BW-IP BPC 10.0
BW-IP BPC NW
SAP Planning Platform Evolution
SAP Business PlanningSAP Business Planningand Consolidation 10.1
version for SAPNetWeaver
EmbeddedModel
SAP HANA
Planning Engine
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• One product• Cover the continuum between the extreme cases
Planning model
Planning data
SAP Planning Platform OfferingSAP Business Planning and Consolidation 10.1, version for SAPNetWeaver release
Planning application
EDW(IT-Owned)
Data Mart(LOB-Owned)
EmbeddedModel
BPC‘Standard
Model’BW-IP /
PAK
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SAP Business Planning and Consolidation 10.1, versionfor SAP NetWeaverEmbedded Model: Best of Both Worlds
Extend end-user flexibility• User experience of the EPM/Web/Mobile clients• Flexible features (e.g. BPF, work status)
Model: dimensions & measures
Data: members & attributes
Data: hierarchies
Operational: consumption
Operational: users
Operational: processes
Provide new features to all planning scenarios
Leverage HANA planning-engine• Plan operations in HANA
Leverage BW-IP’s mature models• EDW integration of BW-IP• Mature features of BW-IP
(e.g. disaggregation, plan functions)
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Instant Insightin memory-enabled
Intuitive User Experienceall devices
Flexible and Non-disruptivecloud or on premise
SAP S/4 HANA Finance
”“The world’s leading Finance solutions. Reinvented
FinancialPlanningand Analysis
Treasury andFinancialRisk
Enterprise Riskand Compliance
AccountingandFinancialClose
FinanceOperations
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S/4 HANA Finance - Business Planning & Consolidation
SAPERP
SAP HANASAP Accounting
SAPBPC 10.1
FioriReports
Analytics
Cloud orOn-Premise
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S/4 HANA Finance - Business Planning & Consolidation
SAPERP
SAP HANASAP Accounting
SAP Central Finance
SAPBPC 10.1
FioriReports
Analytics
Cloud orOn-Premise
SAP and non-SAP
LegacyERP
LegacyERP
LegacyERP On-Premise
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Next Generation ERP Business Planning
”“Convergence of SAP ERP and SAP Business Planning (BPC)
Key capabilitiesSingle planning solution withstrengths of current solutionsReal-time access to master andtransactional data for modelingand variance analysisFlexible drill-down on drivers ofprofitability including customer,product, geography and channelIdentification of trends andforecasts using predictive analysisSeamless integration of planningscreens into ERP workflowsEnd-to-end simulation capabilitiesPre-built planning models foraccelerated adoption
SAP HANA Platform
Accounting
Business Planning
Predictive Analysis
Pre-built starter content
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S/4 HANA Finance – BPC 10.1 Templates*
S/4 HANA Finance includes templates thatprovide support for:§ Cost Center Planning§ Internal Order Planning§ Project Planning§ Profit Center Planning§ Cost of Sales Planning§ P&L Planning§ Market Segment Planning§ Balance Sheet (SFIN 2.0)
S/4 HANA Finance also includes:§ Queries§ Planning Functions§ Sequences
(*Previously known as Integrated Business Planning for Finance)
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New Approach to ERP Planning
Before in ECCn Planning silos with separate data storesn Long running batch jobsn Peer-to-peer transfer programsn Cumbersome processn Many manual steps – fault pronen Simulation impossible
S/4 HANA Business Planningn Common Financial Planning modeln Leverage In-Memory-planning capabilitiesn Faster planning cyclesn Better decisions through end-to-end
simulation capabilities
ExpensePlanning P&L PlanningProfitability
Planning
HANA
Common Planning Model
Views
ExpensePlanning P&L PlanningProfitability
Planning
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Real Time Planning Architecture
S/4 HANA Finance
SAP HANAView
Real
-
-
-
Real-time read of:
- Actuals
- Masterdata
- Hierarchies
Embedded BW
including embedded BPC 10.1
Step-through Demo
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SAP S/4 HANA Finance with BPC
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SAP S/4 HANA Finance with BPC
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Summary: Next Generation ERP Business Planning
Real TimenAccess Actual data real timenIncrease accuracy leveraging allocations and calculations usedfor actualsnPlan at any level of detail and aggregate data on the fly fromactuals transactions
Joined-UpnSave time and reduce errors with a single, integrated solution forplanning and actualsnLower cost of ownership and reduce data duplication byplanning directly on existing SAP BW and ERP objectsnEliminate silos, reduce errors by working across multipleplanning functions through one system on a fully integrated basis.
AgilenEngage across Finance and SAP ERP by consuming data foractuals and plans with one tool and consistent user experiencenRapidly deploy pre-packaged templates and functional contentfor real time planning with instant access to ERP for data andmaster datanAllows not only for the entry of but rather the development ofplan values directly within a single application.
Benefits of using SAP Business Planning and Consolidation, optimized for S/4HANA Finance
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Thank you
Contact information:
Dr David OrmerodEPM Centre of ExcellenceSAP EMEA
http://twitter.com/dormerod