SAP ERP Financials Vision, Strategy & Roadmap Dr. Jens Baumann ERP Solution Management, SAP AG
SAP ERP Financials Vision, Strategy & Roadmap Dr. Jens Baumann ERP Solution Management, SAP AG
The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook
Everyday Challenges in Finance…
Increasing pressure to support the entire enterprise
Senior Management
“How can I help grow revenue and shareholder value?”
A/R and Collections
“How can we streamline payment processes?” Finance
“How can we reduce material and inventory costs?”
Supply Chain
SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 3
“How can we reduce the cost of financial compliance?” “How can I help LOBs understand their most important metrics?”
Business Managers
Auditors & Regulators
…that translate into technology priorities Streamlining processes and implementing tools that are used for decision making are the key priorities
Core processes and business support are the main technology priorities for the CFO Technology priorities of CFO* Percent of respondents citing as a priority
Gartner CFO system priorities through 2009 **
Automating routine finance processes
68
Implementing data analysis/ business intelligence applications
62
Supplying relevant finance data for a mgmt dashboard
61
Standardizing business & finance applications
Automate finance processes Implement shared service centers for finance services
Implement CPM applications
Implement Corporate performance management applications to provide the right systems to support strategic activities
Ensure consistency of financial & non financial data
Streamline information architecture that has strong data integration capabilities to address this requirement
57
Consolidating corporate databases
Other
Streamline transaction processing
43
1
Source: Sources: *Economist intelligence unit survey, April 2006 SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 4
**Gartner CFO system priorities through 2009, published August 2006
What Are the Principles of the SAP Strategy…?
Stable & Integrated Financial Management platform
Efficiency and Effectiveness in Finance
Enabling Innovations without disruption
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The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook
SAP’s Game Plan for Financial Management
Support Strategy, Ensure Compliance, and Improve Financial Operations
Drive Strategy and Growth Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management
Enhance Finance and IT Partnership Empower the Information Worker Deliver Financials capabilities at a lower cost and more flexibly Enable Innovation without Disruption
Ensure Compliance & Mitigate Risk Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Performance Mgmt
Financial Reporting
Risk
Collections
Payments
Finance
Compliance
Governance
Treasury Accounting
Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration
Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement
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SAP’s Game Plan for Financial Management
Support Strategy, Ensure Compliance, and Improve Financial Operations
Drive Strategy and Growth Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management
Enhance Finance and IT Partnership Empower the Information Worker Deliver Financials capabilities at a lower cost and more flexibly Enable Innovation without Disruption
Ensure Compliance & Mitigate Risk Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Performance Mgmt
Financial Reporting
Risk
Collections
Payments
Finance
Compliance
Governance
Treasury Accounting
Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration
Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement
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Corporate Performance Management Enabled by SAP Roles Manager Self Service Business Unit Analyst
Business Consolidation Legal Consolidation Management Consolidation
Long-Term Plan Financial Statements Cash Flow Mid-Term Plan Sales Headcount Budget Maintenance Cost …
Marketing
Operations
CEO & Board Sales
Finance
LOB EXECUTIVES (Strategic) MID-MANAGERS (Operational)
Performance Measurement Financial, Workforce & Operations Analytics xAPP Analytics Formatted Reporting SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 9
Strategy Management Balanced Scorecard Value Based Management
SAP’s Game Plan for Financial Management
Support Strategy, Ensure Compliance, and Improve Financial Operations
Drive Strategy and Growth
Ensure Compliance & Mitigate Risk
Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance
Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting
Mgmt
Enhance Finance and IT Partnership Empower the Information Worker Enable Innovation without Disruption Deliver Financials capabilities at lower costs
Risk
Collections
Payments
Finance
Compliance
Governance
Treasury Accounting
Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration
Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement
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SAP Solutions for Governance, Risk and Compliance Mgmt Providing the framework for an integrated approach to GRC
SAP Solutions for GRC Industry-Specific GRC
Enterprise wide GRC Framework
Cross-Industry GRC GRC Repository: Documentation and Monitoring
Standardize components
Risk Management Access Control
Global Trade
Environment
Process Control
Business Process Platform
Other Business Applications
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Automating Controls and Processes
SAP’s Game Plan for Financial Management
Support Strategy, Ensure Compliance, and Improve Financial Operations
Drive Strategy and Growth
Ensure Compliance & Mitigate Risk
Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance
Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting
Mgmt
Enhance Finance and IT Partnership Empower the Information Worker Enable Innovation without Disruption Deliver Financials capabilities at lower costs
Risk
Collections
Payments
Finance
Compliance
Governance
Treasury Accounting
Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post Merger Integration
Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement
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Example: Financial Supply Chain Management - FSCM provides enhanced tools to improve Cash Flow and Cash Management - Choose from the following options according to your individual needs
Electronic bill presentment and payment
Credit management Check creditworthiness
Issue invoice
Forecast cash
Cash and liquidity management
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Finance working capital
Dispute management Collections management
Resolve disputes
Treasury and risk management
Collect cash
Settle & pay
Reconcile
In-house cash
SAP Solutions for Fast Close
Integrated Financial and Managerial Accounting (New GL in mySAP ERP)
Keep and balance multiple ledgers faster and more accurately
Document entry Accnt / SEG
Debit
------------------- A ---------- B
100
Credit
Rules-Based Accounting Document Split
60 40
Multi-dimensional balancing Accnt / SEG
Debit
---------- A ---------- B ---------- A ---------- B
60 40
Credit
60 40
New Benefits New GL GL Migration Migration Services BenefitsServices Fixed-price Fixed-price service service offerings offerings for for different migration scenarios different migration scenarios Acctg Unified Unified Financial Financial && Managerial Managerial Acctg Scenario-based New GL Support reporting rqmnts Scenario-based New GL migration migration Support of of multiple multiple reporting rqmnts cockpit cockpit Support Support of of Parallel Parallel Accounting Accounting Remote service sessions Remote service sessions including including Faster Close Faster Close data validation data validation Increased Increased transparency transparency Development Development support support including including 24h 24h Reduced TCO Reduced TCO support support on on production production weekend weekend SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 14
Local GAAP U.S. GAAP xxx xxx xxx
IFRS
xxx xxx xxx
xxx xxx xxx
Multi-dimensional
Multiple Valuation
Parallel Ledgers
SAP Solutions for Fast Close
Example: The Closing Cockpit in SAP ERP
The Closing Cockpit adds business value because it Supports standardization across closing periods and subsidiaries Accelerates the closing process and strongly improves user productivity by unique access, automation, and collaboration Creates transparency and supports compliance by providing a perfect overview of the closing status and drilldown to all details SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 15
SAP’s Game Plan for Financial Management
Support Strategy, Ensure Compliance, and Improve Financial Operations
Drive Strategy and Growth
Ensure Compliance & Mitigate Risk
Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance
Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting
Mgmt
Enhance Finance and IT Partnership Empower the Information Worker Enable Innovation without Disruption Deliver Financials capabilities at lower costs
Risk
Collections
Payments
Finance
Compliance
Governance
Treasury Accounting
Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration
Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement
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Example: SAP Travel Management – People Centric People Centricity We offer different user interfaces, YOU decide which ones to use. Voice
Duet
Mobile Devices
New Mobile T&T
New / Classic UI: WebD. SAPGui
SAP NetWeaver/SOA
Travel Management in mySAP ERP (Travel Request, Travel Planning, Travel Expense)
Use the User Interface you need, based on best-in-class technology You have the choice between Web UI, Offline Solution, PDA and Blackberry support, Voice integration, and even Microsoft Office integration SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 17
SAP Travel Management – People Centric (Duet) Make travel reservations through Microsoft Office (mySAP ERP) Employee: Submit travel requests Search travel options Recreate past travel itineraries Manager: Approve / Reject travel requests View travel and budget reports
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Key Benefits: Reduce travel processing operating costs Improve corporate travel policy compliance
SAP’s Game Plan for Financial Management
Support Strategy, Ensure Compliance, and Improve Financial Operations
Drive Strategy and Growth
Ensure Compliance & Mitigate Risk
Stakeholder Communication Strategy Management Budgeting and Planning Benchmarks and KPI’s Intangibles Management Performance
Accounting and Tax Compliance Efficient Process Controls Risk Management Audit Support Financial Reporting
Mgmt
Enhance Finance and IT Partnership Empower the Information Worker Deliver Financials capabilities at a lower cost Enable Innovation without Disruption
Risk
Collections
Payments
Finance
Compliance
Governance
Treasury Accounting
Provide Excellence in Finance Operation Treasury Management Working Capital Optimization Fast Close Corporate Tax Optimization Shared Service Centers & BPO Post-Merger Integration
Support Excellence in Corporate Operations Travel Management Real Estate Management Talent Management & Leadership Dev. Strategic Sourcing and Procurement
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Simplifying the User Interface… Simple access in a familiar environment
NEW
Portal and Work Centers
Adobe Forms
SAP NetWeaver Busines Client
Simple form based processing
streamlined system access
Analytics Job oriented and personalized information
Intuitive productivity
Duet
Mobile & Voice
Integrated access through MS-Office
mobile access
Individual User interfaces complementing SAP GUI SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 20
SAP Solutions for Analysis, Reporting and Actionable Analytics
New BEx
Drag&Drop with BEx
Formatted Reporting
Reporting View
BI Accelerator
Visual Composer
BI Accelerator SAP xApp Analytics
Drag&Drop in Web and Excel
Native formatted reporting
Instant response time
Rich user experience
New filtering mechanism
Report bursting
Simplified data modeling
Easy model creation / adoption
Web printing via PDF
Hierarchy support
Lowered cost of operations
Fully embedded Adobe Flex (OEM)
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DEMO Financial Reporting with SAP ERP 6.0
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End of DEMO Financial Reporting
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The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook
Modernizing the Core The CIO dilemma
“
Once my system is up and running, you can touch my core processes once every 5 years ...
and it needs to be a Saturday …
and my CEO wants me to innovate every quarter”
CIO, Fortune 1000 Manufacturing Company
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SAP ERP
Enhanced and Integrated Business Processes
Human Capital Management
Financials Simplified reporting and CPM
Integrated talent management
New General Ledger
Succession management
Credit Management
Support for HR shared services
e-Invoicing, Collections
Expanded roles and self-services
Logistics and Operations
Corporate Services
Simplified sales order entry
Real-estate and property management End-to-end travel management Enterprise asset management
Services procurement SAP xApps integration
Platform Solutions Industry “switch framework” Enterprise services bundles Integrated business intelligence Eco-system of partner solutions
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Additional roles: sales, buyers
SAP ERP
Delivering predictability enhancements and innovation
2005
2006
2007
2008
2009
2010
Enhancement Packages
Next Suite Release
SAP ERP 6.0 SAP NetWeaver
Customers Adopt Innovation at their Pace Process and User Interface Simplification
Industry-Specific Enhancements
Enterprise SOA
Cross-Industry Enhancements
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Enhancement Packages
Enabling customer to adopt innovation at their pace
Enhancement Packages Optional
Enterprise Services
Switch Framework New/Improved Functionality
Support Packages
Legal/Tax Changes, Corrections
Mandatory
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ERP Enhancement Packages – Innovation w/o disruption Installation of new functionality separated from activation via Business Functions
EA* or Industry Extensions
Plug & Stay No UI or process changes by installation due to new functions “behind” Business Functions NetWeaver integration hubs (BI, XI, PI,…) stay on same NW release (NetWeaver 2004s)
ECC
Stability System will behave as before if no Business Function is activated System will only change in areas where Business Functions are activated Enhancement Packages contain most current Support Package level from underlying / corresponding ERP 2005 release
Activate & Play Usual regression test and modification adjustment efforts due to incorporated Support Package Stack but… …reduced training efforts for new functionality due to only selective UI and process changes by activated business functions Test case templates for new functionality available (structured by business function) to support efficient testing by the customer for new / changed functionality
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Upgrading to SAP ERP
Low Risk, Clear Value, Profound Opportunity
More than 3,000 live customers on SAP ERP 6.0 !
92% of upgrade projects are completed in a timely fashion 86% of upgrade projects meet or exceed functional enhancement expectations
Source: May 2006 Best Practices Survey: SAP / ASUG Benchmarking Results: Aggregate Findings Report SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 72
The New Responsibilities of Finance Transforming Finance with SAP ERP Financials SAP ERP 6.0 – A Platform for Innovation w/o Disruption Future Outlook
Legal Disclaimer This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.
SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 74
ERP Enhancement Packages – Content Concept SAP plans to deliver multiple enhancement packs over the next years. Areas covered by these enhancement packes could be as follows:
ENHANCEMENT PACKAGES
SIMPLIFICATION
ENTERPRISE SOA
FUNCTIONALITY
INDUSTRIES
Enh.P. 1
Enh.P. 2
Enh.P. 3
Enh.P. 4
Enh.P. 5
HCM Shared Services
Order To Cash
Procure To Pay
Attract To Perform
Accounting To Reporting
Adaptive Manufacturing
Order To Cash
Procure To Pay
Financial Shared Services
Credit and Collections
Learning
Fast Closing
Compensation
Treasury
Retail
Service Industries
Trading Industries
Discrete Industries
Process Industries
RTC since July 27 2007
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Enhancement Package 2 for SAP ERP: At a Glance Logistics Execution, Manufacturing Enable new developments related to supplier network collaboration in SAP Supply Chain Management 5.1 Inventory Lookup Integration of MES and QM Systems Various process enhancements in eSOA and industry enhancements
Order-to-Cash Simplification of order-to-cash processes by role "Internal Sales Representative": – New work-center view for incoming customer inquiries with order-status tracking, price and availability information – New user interfaces and POWER lists Enhancements in sales order management: – Search engine for material search as well as sales and billing documents – PDF-based print forms – Down payments based on document conditions
Financials Financial Supply Chain Management – Biller Direct – Dispute Management – Credit Management – Collections Management – Bank Relationship Management (including SWIFT integration) Business Planning and Consolidation – New Web User Interface – Multiperiod consolidation – Restatement support – Document and task approvals
Human Capital Management SAP Learning Solution – Standard support : AICC and SCORM2004 – Course program – Work center: instructor for teaching and tutoring – Partner integration of Adobe Connect HR shared services – Simplified process design – Enhanced integration with SAP ERecruiting – Integration enabled for employee interaction center – Additional services for ESS and MSS SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 76
Corporate Services
Industries Retail and wholesale Utilities Telecommunications Media Automotive Travel and transportation Aerospace and defense Mill products
SAP Travel Management – Travel request – Flexible and simplified process – Exchange infrastructure services Enterprise asset management – Enable new SAP xApp Mobile Asset Management (SAP xMAM) – Basic maintenance processing SAP Real Estate Management – Multicurrency handling – Employee assignment, move management, and room reservation
SAP Enhancement Package 2 for SAP ERP – ES Bundles Logistics Execution, Manufacturing Inventory lookup Batch traceability and analytics Integration of MES v2 Integration of quality management systems v2
Order to Cash
Financials SAP Bank Relationship Management
Customer fact sheet v2 Order to cash
Electronic bill presentment and payment v2 External cash desk
Service for Customer
Idea to Product
Customer service execution Internal service request (Duet)
Technical document management connectivity v2
Human Capital Management Absence employee time request (Duet) Benefits and compensation (Duet) Organizational management (Duet) Personnel administration (Duet)
Preview them** in www.sdn.sap.com
Corporate Services Industries Trade and commodity management Demand management v2 Advanced meter infrastructure (utilities)
Enterprise SOA
*Disclaimer: SAP reserves the right to change the ES bundles listed without further notice. **Some of the bundles listed on this page can be previewed in the ES Wiki. SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 77
ES Workplace
Travel management Asset configuration Maintenance processing Maintenance service collaboration
ES Wiki
Some FAQ’s
?
What’s the latest release?
SAP ERP 6.0
?
When was SAP ERP 6.0 generally available?
May 2006
?
How many customers are live on SAP ERP 6.0?
Over 3000
?
What’s the difference between SAP ERP 6.0 and R/3 4.6C?
Details: SAP Service Marketplace / Solution Browser
Detailed information on upgrading to SAP ERP is available on www.sap.com/erp. For more information about EHP2 and Ramp-Up: http://service.sap.com/rkt SAP AG 2007, Dr. Jens Baumann, Mastering SAP Financials / 78
Questions
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