epm statementofdirection financial process

7/31/2019 EPM StatementOfDirection Financial Process

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You probably know aboutthe gap between strategyand execution that manycompanies face today. Other

vendors may help you solvepieces of the problem. ButSAP provides the compre-hensive, forward-looking sup-port you need for strategic

alignment, predictable perfor-mance, and confident deci-sions. By providing supportfor financial processes, SAPBusinessObjects enterpriseperformance management(EPM) solutions can helpensure that you have reliable

information, manage risk pro-actively, and improve visibilityacross your enterprise.

SAP BUSINESSOBJECTS EPMSOLUTIONS FOR FINANCIALPROCESSESSTATEMENT OF DIRECTION FOR 20102014

SAP Statement of DirectionSAP BusinessObjects EnterprisePerformance Management Solutions


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4 Preface

5 Vision and Road Map5 Recent Developments5 Further Enhancements

6 Strategy Management6 Further Enhancements

7 Budgeting, Planning, andForecasting

7 Further Enhancements

8 Financial Consolidation andReporting

8 Future Enhancements9 XBRL Publishing9 Intercompany Reconciliation

10 Profitability and CostManagement

10 Future Enhancements

11 Financial InformationManagement

11 Future Enhancements

12 Summary12 For More Information

CONTENT


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This statement of directiondescribes SAPs vision,strategy, and developmentplans for the SAP

BusinessObjects enterpriseperformance managementsolutions that support keyfinancial processes. It dis-cusses the future role ofthese products within theoverall SAP solution portfo-lio by laying out a multiyear

road map.The vision and road map described inthis document are those that SAP cur-rently plans to realize. To react to shift-ing markets, SAP may postpone, cancel,or accelerate some of the planned func-tionalities for any number of reasonsand at any time.

PREFACE

4 SAP Statement of Direction SAP BusinessObjects EPM Solutions for Financial Processes


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The recent economic crisis hasclearly demonstrated the need for agilityin responding to rapid market changeswith new business strategies. To executeyour strategies effectively, you must alignthem with the operational side of your

organization. This requires enterprise-wide visibility during the full strategy life-cycle. For maximum performance, yourstrategies must also achieve the rightbalance of risk and opportunity.

SAP BusinessObjects enterprise per-formance management (EPM) solutionscan help you manage processes for plan-ning, budgeting, forecasting, reporting,and analysis in an increasingly dynamicmarketplace. The solutions provide robust

support for evaluating profitability, achiev-ing cost-reducing synergies, and report-ing results in a more compliant and timelymanner. Such support can help youimprove decision making, achieve an opti-mum balance between risk and opportu-nity, gain greater control over perfor-mance, and increase organizational agility.

This document provides a road map forSAP BusinessObjects EPM solutionsthat support closed-loop performancemanagement with best-in-class func-

tionality in the following core domains: Strategy management Planning, budgeting, and forecasting Financial consolidation Profitability and cost management

Recent Developments

After acquiring Business Objects inearly 2008, SAP published a road mapfor converging its newly expanded port-folio of EPM solutions and integrating

them with SAP BusinessObjects busi-ness intelligence (BI) solutions and SAPBusinessObjects governance, risk, andcompliance (GRC) solutions. In designingthis road map, SAP has emphasized thefollowing principles:Harmonize To deliver a shared user

experience that incorporates the samelinguistic support, visualizations, andtechnology platforms across ourapplications

Connect To provide EPM solutions

that support SAP BusinessObjectsBI solutions and integrate with theSAP ERP application and the SAPNetWeaver technology platform whileremaining open to non-SAP technolo-gies and platforms

Extend To continue working with ourpartners and key industry experts todefine product innovations that bringvalue to our customers and createbest-in-class solutions

During 2008 we released new versions

of SAP BusinessObjects EPM solu-tions that were optimized for SAP andnon-SAP environments. In addition, weintroduced the SAP BusinessObjectsPlanning and Consolidation application,version for SAP NetWeaver. To createa powerful and comprehensive solution,we also enhanced the integration of SAPBusinessObjects EPM solutions withthe SAP BusinessObjects BI and GRCsolutions. New releases in 2009 furthered

this integration, creating a framework forclosed-loop performance management.Individual product enhancements con-tinued to provide market-leading function-ality with minimum effort and disruptionto our customers.

Further Enhancements

In 2011 we plan to announce the releaseof new software that will provide a har-monized, Web-based user experienceacross multiple EPM applications. Thisplan includes support for closed-loopbusiness processes to link planning,consolidation, profitability, and strategymanagement with embedded risk andprocess control.

We intend to continue to adopt SAPproduct standards including accessibility,globalization, documentation, and secu-rity across our EPM solutions and focuson best-in-class product enhancementsand innovations. To protect customerinvestments and minimize upgrade dis-ruption, we plan to move all current EPMapplications forward as stand-aloneengines in the new version.

Moving beyond 2011 we expect subse-

quent enhancements to include anin-memory EPM suite that will deliver newlevels of performance to core businessprocesses, as well as additional supportfor risk-adjusted performance manage-ment. We also plan to strengthen theportfolio with new industry and line-of-business solutions and accelerators. Aswe continue to invest in other innovations,we will evaluate new deployment options,such as an on-demand delivery model.

VISION AND ROAD MAPMAXIMIZE PERFORMANCE FROMSTRATEGY THROUGH EXECUTION

5SAP Statement of Direction SAP BusinessObjects EPM Solutions for Financial Processes


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STRATEGY MANAGEMENTDELIVER ON CORPORATE STRATEGYWITH ENTERPRISE-WIDE ALIGNMENT

The SAP BusinessObjects StrategyManagement application helps businessusers at all levels rapidly align resourcesto execute on strategies, understandrisk, and drive effectiveness and profit-ability. By linking strategic plans to spe-

cific initiatives, performance measures,and internal resources, you can set clearpriorities that employees can act on withconfidence and purpose.

In March 2008 SAP introduced a newrelease of SAP BusinessObjects StrategyManagement that integrates with SAPNetWeaver and SAP BusinessObjectsGRC solutions to help you more effec-tively apply risk measures to your busi-ness strategies.

In 2009 we significantly enhancedthe scorecard functionality in SAPBusinessObjects Strategy Managementto enable performance comparisonsacross contexts. Comprehensive dataviews and templates allow the fast cre-ation of multiple new contexts for score-cards. Business users have additionalflexibility in data presentation througha customizable home-page design thatcan incorporate information from SAPBusinessObjects Xcelsius Enterprise

software and Microsoft Office files.

Integration with SAP BusinessObjectsBI solutions added support for multidi-mensional analysis, ad hoc reporting,data visualization, and dashboards. Singlesign-on with SAP BusinessObjectsEnterprise software enables the inclusion

of scorecards and metrics managementwith these tools.

Integration with SAP BusinessObjectsPlanning and Consolidation allows directsourcing of target and actual values forkey performance indicators (KPIs) andscorecards. It also makes budget andactual values immediately usable for bud-get and expenditure KPIs within SAPBusinessObjects Strategy Management.

Further EnhancementsGoing forward, we plan to extend thedata management functionality of SAPBusinessObjects Strategy Managementby enhancing its connectivity with otherSAP BusinessObjects software, includ-ing the SAP BusinessObjects FinancialInformation Management application. Inaddition, the future release shouldprovide: Enhanced functionality for scorecards Enhanced functionality for initiatives

management Greater flexibility in the content

and structure of strategy diagrams Improved visualizations

The City of Henderson is thesecond-largest city in Nevada, withabout 260,000 residents and a full-service local government. The cityturned to the SAP BusinessObjects

Strategy Management applicationto streamline planning and align dailytasks with key organizational goals.The software helps the city spendless time on planning and reviewsand more time improving operationalperformance and determining thebest way to allocate resources.

We chose this application becauseits designed for business users. Wecould roll it out incrementally within

a non-SAP environment, and wecould quickly customize the user inter-face and generate paper reports,says assistant city manager BristolEllington.



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SAP BusinessObjects Planning andConsolidation improves productivityby streamlining and aligning bottom-upand top-down planning processes. It canaccelerate the financial close, shortenbudget cycles, and improve compliance

by automating manual processes andenabling complete visibility from budgetsto actuals. It provides a unified solutionfor planning, budgeting, forecasting,and consolidation that is designed to beowned and maintained by finance man-agers and can fit into any IT landscape.

At the same time, we continue to sup-port and develop the integrated planningfunctionality within the SAP NetWeaverBusiness Warehouse (SAP NetWeaver

BW) component that supports merchan-dise assortment planning and trade pro-motions management in the retail sector.This functionality also supports budgetingby state and local governments primarilyin North America.

In August 2008 SAP introduced SAPBusinessObjects Planning and Consoli-dation, version for SAP NetWeaver. Anupdated version for the Microsoft plat-form was also released. In 2009 a numberof enhancements were made to both ver-

sions of the product, including: Integration with SAP BusinessObjects

BI solutions (including SAPBusinessObjects Xcelsius Enterprisesoftware); SAP BusinessObjectsStrategy Management; the SAPBusinessObjects Profitability andCost Management application; andSAP BusinessObjects FinancialInformation Management

Support for new functionalityfor extensible business reporting

language (XBRL)

Specific to the latest release of SAPBusinessObjects Planning and Consoli-dation, version for the Microsoft plat-form, enhancements include supportfor Windows Server 2008, SQLServer 2008, and the 32-bit and 64-bit

versions of Windows Vista and IIS 7.0.Functional improvements include: Enhanced business process flows that

enable contributors and reviewers toreopen completed or closed steps andreset specific process-flow instances

Microsoft Excel client enhancementsthat help users fully leverage theMicrosoft Excel ribbon for quicker,easier access to menus and tools

A simplified business-rule editorthat includes right-click functions for

copying, cutting, pasting, and deletingbusiness-rule syntax and business-ruledefinitions that are easier to read

Related enhancements in the latestrelease of the version for SAP NetWeaverinclude: New business process flows that help

users create guided business processtemplates to drive consistent planningand consolidation processes acrossthe organization

Enhanced consolidation functions such

as a new GUI-based dynamic hierarchyeditor and currency conversion legalentity that make it easier to maintainlegal ownership structures

Integration with GRC process controlsto help ensure a fully compliant finan-cial close

Further Enhancements

In the next versions of SAPBusinessObjects Planning and Consoli-dation, we plan to offer new user inter-faces, further enhancements in script

logic, advanced variance analysis, andintegration with planned extended XBRLfunctionality for producing financialstatements.

Plans for the new version for theMicrosoft platform include support for theMicrosoft SharePoint portal and integra-tion with the SAP BusinessObjectsProcess Control application. The newversion for SAP NetWeaver is expectedto provide native SAP NetWeaver authen-

tication and authorization. In addition,plans call for integration with financialdata in the SAP Master Data Gover-nance application and with the SAPBusinessObjects Risk Managementapplication.

BUDGETING, PLANNING, AND FORECASTINGSTREAMLINE FINANCIAL AND OPERATIONALPLANNING PROCESSES

We intend to continueto adopt SAP productstandards including

accessibility, globaliza-tion, documentation,and security acrossour EPM solutions andfocus on best-in-classproduct enhancementsand innovations.



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To support legal statutory consolidationand management reporting, we offereither SAP BusinessObjects Planningand Consolidation or the SAPBusinessObjects Financial Consolidationapplication to new customers. Both rep-

resent strategic best-in-class solutionsfor their respective markets and willbe supported and developed as stand-alone engines. SAP has established ateam of experts to match individual cus-tomer requirements with the appropriatesolution.

SAP BusinessObjects FinancialConsolidation gives CFOs the speed,processing power, agility, and breadth ofanalysis they need for faster, more accu-

rate financial consolidation and shorterreporting cycles. It provides full processcontrol and data transparency to helpyou produce accurate and trusted finan-cial statements and comply with regula-tory requirements like InternationalFinancial Reporting Standards (IFRS).

In 2008 SAP released a new version ofSAP BusinessObjects Financial Consoli-dation that provided rich integration withSAP BusinessObjects BI solutions aswell as numerous enhancements related

to audits and regulatory compliance.In addition to the developments in SAPBusinessObjects Planning and Consoli-dation outlined in the previous section,

SAP BusinessObjects Financial Consoli-dation was further enhanced in 2009 to: Map data from SAP NetWeaver BW

and SAP ERP to SAP BusinessObjectsFinancial Consolidation

Write consolidated results back to SAP

NetWeaver BW, maintaining that com-ponent as the source of data truth

Enable a fast and fully compliant finan-cial close through integration withSAP BusinessObjects Process Control

Share actual and planned amountsbetween SAP BusinessObjectsFinancial Consolidation and SAPBusinessObjects Planning andConsolidation

Future Enhancements

In addition to a number of functionalenhancements and product innovations,we plan to enhance SAP BusinessObjectsFinancial Consolidation to improve trans-actional and master data integration withSAP BusinessObjects Financial Informa-tion Management and with the financialdata in SAP Master Data Governance.Both SAP BusinessObjects Financial Con-solidation and SAP BusinessObjectsPlanning and Consolidation will benefitfrom planned enhancements to our highly

differentiated financial reporting starterkits. These kits provide unique businesscontent to speed time to value and driveadoption of IFRS and other reportingregulations.

FINANCIAL CONSOLIDATION ANDREPORTINGACCELERATE YOUR FINANCIAL CLOSEAND IMPROVE COMPLIANCE

To support legal statu-tory consolidation andmanagement reporting,

we offer either SAPBusinessObjectsPlanning and Consoli-dation or the SAPBusinessObjects Finan-

cial Consolidation appli-cation to new custom-ers. Both representstrategic best-in-classsolutions for theirrespective marketsand will be supportedand developed asstand-alone engines.



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XBRL Publishing

In early 2009 we delivered new XBRLfunctionality in the form of the SAPBusinessObjects XBRL Publishingapplication by UBmatrix that works

with all SAP financial consolidationand financial reporting applications(including SAP BusinessObjectsFinancial Consolidation and SAPBusinessObjects Planning and Consoli-dation applications) and SAP BusinessSuite software. Designed for intuitiveoperation, speed, and flexibility, thisgives you greater control over theXBRL generation process for the com-munication of financial and businessdata. The functionality enables com-

panies to comply with, among others,guidelines required by the U.S. Securitiesand Exchange Commission. We plan todeliver new enhancements to supportnew XBRL disclosure requirements in2010, and moving forward, we planto introduce additional functionality tofurther help customers automate theclose-to-report process that createsfinancial statements, annual reports,stock exchange filings, and other legaland regulatory reports and disclosures.

Intercompany Reconciliation

In 2009 we also added functions tothe SAP BusinessObjects Intercompanyapplication. This peer-to-peer solutionhelps business units reconcile inter-company balances in real time via the

Web. It facilitates a faster close by givingbusiness units the tools to debate andreconcile balances directly with oneanother thereby eliminating extrawork and delays at the corporate anddivisional levels. Removing intercompany

reconciliation from the critical path canalso make your close more accurate.SAP BusinessObjects Intercompanycan be implemented in both SAP andnon-SAP software environments andworks with any consolidation application including both SAP BusinessObjectsFinancial Consolidation and SAPBusinessObjects Planning andConsolidation.

New features include reporting templates

based on best-of-breed enterprise report-ing tools in SAP Crystal solutions. Thesetemplates are fully integrated with secu-rity functions in SAP BusinessObjectsEnterprise software. In addition, masterdata from SAP BusinessObjects FinancialConsolidation can now be directlyimported and refreshed. A new admin-istration console simplifies configuration.

The next release of SAP BusinessObjectsIntercompany is expected to enhanceintegration with SAP and non-SAP source

systems to strengthen audit trails andincrease performance. Plans call forthe application to see new technologyenhancements and build upon integrationwith SAP Crystal solutions for customizedreport creation.



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PROFITABILITY AND COST MANAGEMENTMINIMIZE ORGANIZATIONAL COSTS TO OPTIMIZEPROFITABILITY

With SAP BusinessObjects Profitabilityand Cost Management, you can gain adeeper understanding of the levers thataffect organizational costs and profit-ability throughout your enterprise. It canhelp you identify the underlying causes

of underperformance, test potentialimpacts of changes, and take decisiveaction to reduce costs and optimize theprofitability of specific products, customergroups, and distribution channels.

In June 2008 SAP introduced a newrelease of the software with additionalplatform support and scalability enhance-ments. In the first half of 2009, anotherrelease deepened platform supportand integration with source systems,

as well as with SAP BusinessObjectsPlanning and Consolidation and SAPBusinessObjects BI solutions.

Enhancements to the transactioncosting model enable harnessing newperformance from a 64-bit applicationserver. Enhanced auditing and model-ing support gives users more visibilityinto the model evolution.

Integration with SAP BusinessObjectsPlanning and Consolidation allows the use

of cost drivers and unit costs as seeds

for business plans. Integration with SAPBusinessObjects BI solutions includes asingle sign-on with SAP BusinessObjectsEnterprise, as well as ad hoc reportingwith SAP BusinessObjects WebIntelligence software and data visualiza-

tion using SAP BusinessObjects XcelsiusEnterprise.

Future Enhancements

Plans for enhanced connectivity in sub-sequent releases will allow you to exportresults from the application directly intoSAP NetWeaver for reporting and anal-ysis. Integration with source systems isexpected to be improved with enhancedsupport for SAP BusinessObjects Finan-

cial Information Management.

Planned functional and architecturalenhancements in the next release includebill-of-materials support, extensions toour transactional costing functionality,and improved control over CPU resourcesfor deployments with multiple models.Plans also call for adding more database-platform support and enabling businessusers to trace sources and targets forcost assignments through new visual-ization controls.

The AmeriHealth Mercy Family ofCompanies is the largest Medicaidmanaged-care organization in theUnited States. As the companyenters new markets and launches

new services, it needs a better wayto allocate costs and make informedpricing decisions. With the SAPBusinessObjects Profitability andCost Management application, thecompany can better identify andreport cost variances, meet customerdemands for more transparent costanalysis, and identify services thatwere priced too far above or belowactual costs.

Improved data and analysis haveenhanced the accuracy of proposalrequests and helped trim claimsprocessing costs by 10%. Budgetestimates are now more accurate,quarterly cost reports are moretimely and accurate, and contractrenegotiations have improved.



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In late 2008 we introduced the SAPBusinessObjects Financial InformationManagement application, designed toallow finance professionals to reducethe risk, cost, and effort of collecting,mapping, and loading enterprise data

into SAP BusinessObjects FinancialConsolidation. By providing extensiveconnectivity to other SAP and non-SAPapplications, this software lets you inte-grate directly with data sources, performdata loads correctly, and facilitate com-pliance reporting.

In 2009 we announced extended sup-port for SAP BusinessObjects Profit-ability and Cost Management and SAPBusinessObjects Planning and Consoli-

dation. This extended support allowsefficient data movement across all sup-ported EPM applications.

Future Enhancements

Going forward, we expect to furtherextend SAP BusinessObjects FinancialInformation Management to SAPBusinessObjects Intercompany andSAP BusinessObjects Strategy Man-agement enabling the integration ofdata across all SAP BusinessObjects

EPM solutions.

FINANCIAL INFORMATION MANAGEMENTENABLE CONNECTIVITY, MAPPING, ANDLOADING FOR THE BUSINESS USER

SAP BusinessObjectsFinancial Consolidationgives CFOs the speed,

processing power,agility, and breadth ofanalysis they need forfaster, more accuratefinancial consolidationand shorter reportingcycles. With SAPBusinessObjects Profit-

ability and Cost Man-agement, you can gaina deeper understandingof the levers that affectorganizational costsand profitability through-out your enterprise.



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SUMMARYIMPROVED EFFECTIVENESSAND OPERATIONAL CONTROL

SAP BusinessObjects enterprise per-formance management solutions canhelp your company capitalize on the valueof your existing data assets. These solu-tions can make your organization moreagile and foster the organizational align-

ment, visibility, and confidence you needfor optimal control and competitiveadvantage.

The solutions can integrate with SAPBusiness Suite applications; SAPBusinessObjects governance, risk,and compliance solutions; SAPBusinessObjects business intelligencesolutions; and SAP BusinessObjectsinformation management solutions.This comprehensive approach helps

you maximize business profitability andeffectively manage risk and compliance while optimizing corporate systems,people, and processes.

The SAP vision and road map forenterprise performance managementreflects our ongoing commitment toinvesting in solutions that: Deliver a shared user experience Integrate with SAP solutions and the

SAP NetWeaver technology platformwhile remaining open to non-SAPtechnologies and platforms

Incorporate partner innovations foradded value to our customers

In this way, we hope to continue producingsoftware that is truly the best in its class.

For More Information

To find out more about how SAP

BusinessObjects EPM solutions canimprove results for the financial profes-sionals in your organization, call yourSAP representative or visit us onlineatwww.sap.com/epm.

12 SAP Statement of Direction SAP BusinessObjects EPM Solutions for Financial Processes12


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QUICK FACTS www.sap.com/contactsap

SummarySAP BusinessObjects enterprise performance management solutions go beyondbudgeting, forecasting, and consolidation to create synergy between business objectivesand business risks that other vendors have yet to explore. Our road map is designed toprotect customer investments and deliver solutions that are best in class for their domains.

Business Challenges

Close the gap between strategy and execution Develop a proactive approach to risk management Ensure timely analysis and effective compliance reporting Boost profitability and cost optimization

Key FeaturesStrategy management Map strategies, track initiatives, and manage scorecards and

key performance indicatorsPlanning, budgeting, and forecasting Produce accurate and agile plans, budgets, and

forecasts in a timely and eff icient mannerFinancial consolidation and reporting Eliminate bottlenecks for a faster close while

improving compliance and qualityIntercompany reconciliation Enable business units to reconcile intercompany balances

and transactions directly with one another

Extensible business reporting language (XBRL) Simplify and accelerate the preparationof XBRL documents to communicate financial and business data more effectively

Profitability and cost management Manage costs and optimize profitabilityFinancial information management Reduce the risk, cost, and effort of collecting,

mapping, and loading enterprise data

Business BenetsIncreased strategic alignment by closing the gap between strategic processes and

execution processesBetter control over performance by understanding how risk will impact your strategies

and adjusting your plans and expectations accordinglyClearer priorities that employees can act on with confidence and purpose by linking

strategic plans to specific initiatives, performance measures, and internal resourcesImprovements in the quality and speed of decisions by closing your books faster and

more accurately

For More InformationCall your SAP representative or visit us online atwww.sap.com/epm.

50 089 390 (10/07)2010 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,SAP BusinessObjects Explorer, and other SAP products and servicesmentioned herein as well as their respective logos are trademarks orregistered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects,Crystal Reports, Cr ystal Decisions, Web Intelligence, Xcelsius,and other Business Objects products and services mentionedherein as well as their respective logos are trademarks or registeredtrademarks of Business Objects Software Ltd. in the United Statesand in other countries.

All other product and service names mentioned are the trademarks oftheir respective companies. Data contained in this document serves

informational purposes only. National product specications may vary.

These materials are subject to change without notice. These materialsare provided by SAP AG and its aliated companies (SAP Group)for informational purposes only, without representation or warranty ofany kind, and SAP Group shall not be liable for errors or omissions withrespect to the materials. The only warranties for SAP Group productsand services are those that are set forth in the express warrantystatements accompanying such products and ser vices, if any. Nothingherein should be construed as constituting an additional warranty.

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