Pricing Efficiency
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    Pricing Efficiency Pricing Efficiency Document Transcript

    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsApplies to:SAP for Automotive. For more information, visit the Automotive BPX Community Pages.SummaryAs the new vehicle sales profit margins are shrinking, dealers are increasingly looking for ways to enhancetheir profit margins and new ways to grow their business. They are constantly evaluating tools that will helpthem measure and analyze their activities across all of their dealership departments. In this article, learn howSAP solutions that dealers use to run their day-to-day operations will also help in gathering and analyzingdata to provide actionable intelligence. SAP DBM and BusinessObjects together deliver powerful yet veryuser-friendly and easy-to-use tools to capture and analyze the various aspects of dealership operations.Author: Prathap ParagiCompany: SAP stCreated on: 1 July 2010Author BioPrathap Paragi has been with the SAP Automotive group since 1996. In his current role as a solutionmanger in IBU, his focus is on the SAP Automotive after Sales and Service topics. One of his prime activitiesincludes leading the Go to Market activities for DBM in Americas.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 1
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsTable of ContentsUnderstanding Dealership Performance and Improving Profit Margins ........................................................... 3 Analytics using SAP DBM and BusinessObjects ........................................................................................ 3 Sample Dashboards and Reports .............................................................................................................. 4Tools for DBM Analytics ................................................................................................................................ 5Sample Architecture for Analytics using SAP DBM ........................................................................................ 7Related Content ............................................................................................................................................ 8Copyright ...................................................................................................................................................... 9SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 2
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsUnderstanding Dealership Performance and Improving Profit MarginsRegardless of the size of the dealership during this time of a challenging economy, profitability, utilizationand inventory are the primary concerns for today’s automotive retailers. When revenue drops dealers look fornew and innovative ways to increase their profit margins, SAP Dealer Business Management (DBM)supports the needs of today’s dealerships in the areas of Vehicle, Parts and Service sales. By supportingthese processes, SAP DBM collects the transactional data of the day-to-day operations of the dealership.Analytics shed the light into the questions that dealers are asking. Analytics are only possible if there are aset of extractors which ensures access to transactional data from a BI landscape. For example Vehicle SalesOrders, Parts Orders, Vehicle Service Technician repair time entries are all included in the covered datasources.Analytics using SAP DBM and BusinessObjectsRanging from a simple report to a complex dashboard, SAP DBM uses the rich tool set of SAPBusinessObjects to fulfill the needs of any dealership or dealer group. Whether it’s the daily statistical reportsthat can be generated using Crystal Reports or the dashboards that can be delivered using Xcelsius, DBMcan meet the needs of dealerships of all sizes. Along with the Crystal Reports and Xcelsius, BusinessObjectsExplorer can also be used to generate ad-hoc reporting on an intuitive unified interface. Figure 1: Sample Dashboard of Vehicle InventorySAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 3
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsAs depicted in the sample dashboard in Figure 1 above, one can get a snapshot of vehicles in stock byvehicle model and their valuation -- all of which are displayed in a pinwheel graph while the display of theVehicle aging data is in a Bar graph. One can also drill down into more detail from the graphs by placing thecursor on the appropriate pie in the graphs. In our example it would then highlight the share of the vehiclesdata as well as the Unit of Measure, either quantity or stock value. Also, one can further drill down into thedata by individual dealer location for a dealer group or display the data for all dealer groups.Sample Dashboards and ReportsThe flexibility in selectively displaying the data in the dashboards make the graphs more personalized basedon the needs of the user. The next picture illustrates the sample dashboards related to Vehicle Sales,Vehicle Service and Parts Management. Figure 2: Overview of DBM DashboardsFor daily reporting, Crystal Reports generates statistical output. The output data can be formatted to meetindividual reporting needs. Figure 3 represents a view of the Crystal report that can be generated on thedata extracts from DBM.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 4
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjects Figure 3: Sample Crystal report for DBMTools for DBM AnalyticsSAP delivers extractors which are part of the Logistics Information System (LIS). Combining their usage withthe existing extractors from Vehicle Management System (VMS), one can meet the needs of the VehicleObject-based reporting.During the implementation time one can further enhance and support the needs of the customer by using thefollowing:  SAP ETL Layer based on DBM7.0 and standard extractors  Enterprise Data Warehouse (InfoCubes)  BEX Queries  Crystal Reports  Xcelsius Dashboards.Profitability for Vehicle Sales, Vehicle Service and Part Sales process can be analyzed using CO-PA. Figure4 is a sample CO-PA based profitability report. Further CO-PA based drill down reports can be generatedusing transaction KE30.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 5
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjects Figure 4: Sample CO-PA based Profitability reportFor more information on the DBM7.0 based extractors or profitability reporting please refer to the help guidesfor DBM7.0 or use the following link:http://help.sap.com/saphelp_dbm700/helpdata/en/2f/15882d703f49588019612297e222be/frameset.htmSAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 6
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsSample Architecture for Analytics using SAP DBMRobust data presentations can be generated in the form of reporting or dashboards. Figure 5 presents anexample architecture depicting how reports or dashboards can be generated from DBM. Figure 5: Architecture Overview of DBM using Business ObjectsFor more information on the SAP BusinessObjects in greater details, please refer to the SAP BusinessObjects Community website.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 7
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsRelated ContentBPX communities:  Automotive BPX community, visit: Automotive BPX Community  BusinessObjects BPX community, visit: BusinessObjects BPX communityBlogs related to DBM 7.0:  DBM7.0 Overview: http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/17879  Customer management: http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/18085  Parts Process: http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/18765SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 8
    • Analyze and Improve Dealership Profit Margins with SAP DBM and BusinessObjectsCopyright© Copyright 2010 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.The information contained herein may be changed without prior notice.Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9,iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Serv er,PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes,BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX,Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe SystemsIncorporated in the United States and/or other countries.Oracle is a registered trademark of Oracle Corporation.UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks ofCitrix Systems, Inc.HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, MassachusettsInstitute of Technology.Java is a registered trademark of Sun Microsystems, Inc.JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented byNetscape.SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentionedherein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, andother Business Objects products and services mentioned herein as well as their respective logos are trademarks or registeredtrademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company.All other product and service names mentioned are the trademarks of their respective companies. Data contained in this docume ntserves informational purposes only. National product specifications may vary.These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAPGroup") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable fo r errors oromissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in theexpress warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituti ng anadditional warranty.SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com© 2010 SAP AG 9