090522 Agility For Sustainability Management Cxo Workshop


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  • When thinking about risk management, most companies historically have focused primarily on financial risk management. In today’s dynamic marketplace, this is even more profound as most companies are highly concerned about managing financial and credit risks. However, in the recent Global CFO Study conducted by IBM Global Business Services, they found that 87% of all business risks are actually non-financial risks. These include: Operational [HIGHLIGHT SUB BULLETS], Legal and Regulatory [HIGHLIGHT SUB BULLETS], Strategic [HIGHLIGHT SUB BULLETS], Political and Geo-Political [HIGHLIGHT SUB BULLETS], and even Environmental risks [HIGHLIGHT SUB BULLETS]. The interesting point with this survey is that most companies are solely focused on financial related risks, and this silo’d perspective leaves them open and exposed to a great number of other potential risks that could occur across their organization, any of which could have significant impact to the performance of the company. Financial risk management is extremely critical, especially in today’s marketplace. However, for a company to truly optimize their strategic performance, they must develop and implement a comprehensive risk management and GRC program that not only addresses financial risk, but also the other almost 90% of risks that possibly could significantly impact the company.
  • Other quotes: “ When the economy is moving forward robustly, most executives focus on growing sales. But inevitably when the economy slows and times get tough that focus shifts. Most executives turn inward, looking at how their business is operating, as they face hard choices on how to preserve the company… use the downturn to make your business more effective so when growth returns you'll be in an even better position to move quickly” CFO.com (whitepaper 10 Secret Strategies to Recession-Proof Your Business) “ Most management processes are linked to each other in one way or another. Budgeting and planning, for instance, are intrinsically intertwined with other financial processes like consolidation, reporting, risk management and analysis. These processes, in turn, provide critical insight for managing risk, steering corporate performance and shareholder value, as well as making strategic decisions.” CFO.com (whitepaper Managing Risk through Better Financial Planning ) “ CFO’s four top priorities over the next 12 months, audit committee board members ranked them as follows: Enterprise-wide risk management and buy-in from business lines; Systematic risk management across the industry; Transparency and financial reporting, and Internal controls and tightened margin/collateral controls.” CFO Magazine, Survival in the age of risk, Oct 21 2008 "Financial executives who can not only drive cost reduction, but also provide broader insights on opportunities to improve margins, manage capital more efficiently, and identify business opportunities that result from changing economic conditions, will be in demand,“ CFO Magazine, Crisis Demands New CFO Skills, Oct 17 2008
  • These macro economic drivers are putting increasing pressures on the overall business and on the CFO. This causing a change in focus for the CFO on activities that they are spending increasing amounts of time. (Insert source to graph) The change in focus is causing a shift in CFO priorities. Setting up operations (solutions and processes) that are lean and support changing compliance needs Being the enabler and change agent for the business to drive execution more effectively to strategy Deliver financial services that support business innovation A study done by the international federation of accountants interviewed leading CFOs across the world on key topics they are required to focus on. Not surprisingly, all of the topics were outside of financial transactions and required more of their time to be spent on business insight and managing risk and driving business performance. The role of the CFO is naturally becoming more performance focused – they are responsible for most of the key profit and risk drivers. The CFO is looked upon as a strategic advisor to the business 20% of Fortune 100 CEOs were once CFOs, further proof of their growing prominence in the executive ranks.
  • They ask: What should our target enterprise information architecture be? How do I align company-wide reporting, planning and execution? Can SAP help? How is SAP different from other vendors? Is SAP’s enterprise integration, vision or is it implementable today? Can I get there in small, manageable steps ? Can we see proof of an integrated system for reference ? Can SAP handle our scenarios? How quickly could we implement?
  • Compliance Management is a business initiative, NOT a security initiative…
  • This slide shows how the threats and challenges from the previous slide are addressed with the solution and which benefits result.
  • $13.8bn company with operations in more than 200 countries 100% SAP and Business Objects strategy moving forward – 3 year roadmap SAP Business Planning and Consolidation replaces Hyperion SAP Strategy Management for KPI reporting SAP GRC Access Controls replaces Approva Currently running a pilot of Data Integrator, xCelsius, Web Intelligence and Supply Chain Performance Management Reviewing SAP Profitability and Cost Management, SAP GRC Process Controls, SAP Risk Management and Spend Analytics Centralization of data centers yielded $280 million in cost savings. SAP enabled the firm to reduce the number of data centers globally from 80 to one in New Jersey. A direct impact in hardware investments and a reduction of 100 IT staff members was the result. A single SAP installation now serves all country organizations with 24x7 service. Colgate-Palmolive also expects to see cost savings as global network-bandwidth costs drop. • Business practice changes accounted for $150 million in cost savings. Colgate-Palmolive experienced an inventory reduction of 13% in one year of using SAP. Also, improved planning and production cycle times increased cash flow by 13% over 1999. By using automated replenishment based on point-of-sales information from retailers (CPFR), Colgate-Palmolive achieved 98% forecasting accuracy with business partners Wal-Mart and Kmart. The bulk of these savings were achieved in the US, which accounts for 25% of the business. When rolled out globally, Colgate-Palmolive expects total savings in excess of $600 million. • Management determination attributed to a gross profit margin of 54%. With a corporate culture dedicated to improving efficiency, senior management is deeply involved in the details of sales, manufacturing and distribution. For example, package redesign at Colgate-Palmolive saved a few cents on each unit -- and management attributed 60% of the firm's capital spending to savings projects.
  • If you think you are making good decisions based on your insights – How do you know you can rely on your insights? Everyone in the organization has different ways of getting information and using it to make decisions. Anything from excel to discussions, surveys and of course BI applications are used today to get insights and make decisions. The concern is – are these insights enough to make good decisions over and over again and diligently execute on them? Are these reliable, accurate, up to date, consistent with the information received in another organization, and can you timely execute based on this information or is it a more lengthy process to do so? Even Business Intelligence tools are not enough. Although they are very good at displaying information about your business, they are based on historical data, often times they do not represent a complete picture about your business and they do not enable you to take action based on the information you find.
  • Overriding Business Trend 1990 – and ongoing Globalization + Electronic Business + Year 2000 compliance, Internet as point of sales -> Integrated Enterprise 2000 – and ongoing Mergers, Acquisitions, Off-Shoring, Outsourcing, Collaboration, increasing speed of change -> The Business is a Network Key Characteristics 1990 – and ongoing Departmental efficiency User interfaces for experts In-house standardization “ Data-based” architecture for integrity 2000 – and ongoing Collaboration in the business network Interfaces for casual usage Leverage of open standards “ Process-based” architecture for flexibility Technology Architecture Impact 1990 – and ongoing: Three-Tier Client/Server Architectures and best of breed proliferation 2000 – and ongoing: Service-Oriented Architecture and need for unification and standardization IT response 1990 – and ongoing: Standardize and Integrate internal business processes and app’s 2000 – and ongoing: Achieve “lose coupling” of business processes to achieve flexibility and increase reach into business network Key Enabler for fast time to value 1990 – and ongoing : Business Process Standardization 2000 – and ongoing: Business Process Flexibility Killer Applications 1990 – and ongoing : Groupware, ERP, Middleware, Relational Databases 2000 – and ongoing: Business Process Platform IT architects role 1990 – and ongoing : Technology focus 2000 – and ongoing: Business Process Focus
  • 090522 Agility For Sustainability Management Cxo Workshop

    1. 1. Won-Joon Hyoung President & CEO SAP Korea, Ltd. April 2008 Agile management for Sustainability in an Uncertain Economy Closing the gap between strategy and execution
    2. 2. 회사개요 <ul><li>혁신적인 비즈니스 솔루션 시장을 선도하는 SAP 는 모든 기업용 소프트웨어 시장 및 산업에 적합한 솔루션을 제공하여 글로벌 포츈지 Global 500 대 기업의 80% 이상이 SAP 를 사용 중에 있습니다 . </li></ul><ul><li>직원 수 : 43,861 명 (2008 년 1 월 현재 ) </li></ul><ul><li>법인 : 약 50 개국 </li></ul><ul><li>고객 : 120 개국 43,000 기업 61,000 사업장 </li></ul><ul><li>사용자수 : 1 천 2 백만명 </li></ul><ul><li>교육센터 : 약 53 개국 77 개 </li></ul><ul><li>R&D 인원 : 12,951 명 ( 전체의 약 30%) </li></ul><ul><li>컨설턴트 : 3,850 여개 파트너사의 180,000 명 이상 컨설턴트 </li></ul>
    3. 3. SAP's Performance in the Last 10 Years Revenue Operating income* Employees © SAP 2009 / Page CAGR total revenues: 10% CAGR operating income*: 15% 20,975 24,178 28,410 28,797 29,610 32,205 35,873 1999 2000 2001 2002 2003 2004 2005 796 1,244 1,471 1,688 1,880 2,086 2,410 5,110 6,265 7,341 7,413 7,025 7,514 8,513 2006 39,355 2,705 9,402 2007 43,861 2,735 10,242 2008 2,842 11,567 51,536
    4. 4. 포츈지 Global 500 대 기업 중 SAP 고객 비율 n.b. the Public Sector is not covered by the Global 500. Source: Fortune Magazine, Global 500 2003; SAP Analysis 78% 81% 76% 63% 37% 48% 54% 100% 93% 100% 86% 100% 97% 69% 87% 87% 57% 86% CP Retail A&D Auto E&C HT Chem Mill Mining O&G Pharma Bank FSP Ins Media Serv.P Telco Util Consumer Discrete Process Financial Services Services SAP customer Global 500 comp SAP Solution 은 포츈지 Global 500 대 기업 중 산업별 Market Share 1 위
    5. 5. SAP 코리아 고객 <ul><li>SAP 주요 고객 </li></ul><ul><ul><li>국내 5 대 그룹이 모두 SAP 를 사용 중 </li></ul></ul><ul><ul><li>2005 년 총 매출액 상위 10 대 기업 중 5 개 기업 </li></ul></ul><ul><ul><li>상위 10 대 전기 · 전자 기업 중 7 개 기업 </li></ul></ul><ul><ul><li>상위 10 대 통신 기업 중 6 개 기업 </li></ul></ul><ul><ul><li>상위 10 대 자동차 · 운송장비 기업 중 10 개 기업 </li></ul></ul><ul><ul><li>상위 10 대 기계 · 중공업 기업 중 6 개 기업 </li></ul></ul><ul><ul><li>상위 10 대 1 차 금속 회사 중 5 개 기업 </li></ul></ul><ul><ul><li>상위 5 대 금융 회사 중 5 개 기업 </li></ul></ul><ul><ul><li>상위 5 대 정유 · 석유화학 회사 중 8 개 기업 </li></ul></ul>
    6. 6. FORTUNE 500 1998 1998 10 년 후 , 얼마나 많은 기업들이 sustain 했을까요 ? ? %
    7. 7. FORTUNE 500 2008 2008 56 % They’re All … Gone.
    8. 8. Case I : Disappeared ‘ ENRON’ <ul><li>윤리경영 및 내부통제의 실패로 인해 … </li></ul>ENRON’s Rise & Fall ENRON’s Fraud <ul><li>미국 7 대 기업에 속하던 에너지 회사 </li></ul><ul><li>회계부정에 의한 기업범죄 사건 </li></ul><ul><li>윤리경영 실패의 대표적 사례 </li></ul><ul><li>03 년부터 순위에서 사라짐 (02 년 5 위 ) </li></ul><ul><li>Sarbanes-Oxley Act. 제정계기 </li></ul>19 80 19 81 … 19 98 2001 $90 $0.4 (Source : Google Finance, 2004)
    9. 9. Case II : Damaged ‘ Mattel’ <ul><li>환경규제 대응을 소홀히 하여 … </li></ul>Mattel’s Recall <ul><li>미국 유명 장난감 제조 및 유통회사 </li></ul><ul><li>납성분 중국산 페인트 사용 원인 </li></ul><ul><li>중국산 장난감 84 만여개 Recall </li></ul><ul><li>CEO 의 미 국회 청문회 출석 </li></ul><ul><li>Brand 이미지 실추 </li></ul><ul><li>이후 주가 급락 </li></ul>중국산 페인트 기사 (2007 년 5 월 , NYT) Mattel’s stock curve (Source : Google Finance, 2008)
    10. 10. Case III : Declined ‘ General Motors’ <ul><li>Business Decision 의 실패로 인해 … </li></ul>GM’s Bankruptcy GM’s stock curve $ 35 $ 3 2007.12 2008.11 (Source : Google Finance, 2009) <ul><li>빗나간 Decision-Making </li></ul><ul><li>대형차 시장 과잉공급 </li></ul><ul><li>하이브리드카 , 전기차 등 차세대 사업에 투자 미흡 </li></ul><ul><li>시장점유율 급락… Bailout </li></ul>
    11. 11. FORTUNE 500 This year ? 2009 ? 과연 현재의 경제 위기 속에서 sustain 할 수 있을 기업들은 ? Nobody knows, but they know themselves… ?
    12. 12. 지속가능경영에 대한 오해와 현실 © SAP 2008 / Page 오해 현실
    13. 13. 지속가능 경영 새로운 경영목표들에 대한 전체 최적화 문제 © SAP 2008 / Page Optimization with new Objectives & Constraints
    14. 14. Unprecedented economic challenges The need for performance and predictability We used to run business based on our forecast and annual plans. But now, increased Uncertainty makes it very difficult to plan, budget or forecast for our future business. Warren Buffett, “Invest” “ Be greedy when others are in fear” Invest? Wait? Freeze?
    15. 15. New rules of the game : AGILITY 빠르게 변화하는 시장 상황에 대해 민첩하고 유연하게 대응할 수 있는 능력을 가진 기업 Daytona Race Rally <ul><li>Defined Rules </li></ul><ul><li>Technology </li></ul><ul><li>Well-Tuned Team </li></ul><ul><li>You know your Finish-Line </li></ul><ul><li>Driver has to Respond to All the Situation </li></ul>
    16. 16. 글로벌화로 인해 기업 전체 공급망의 복잡성 및 불확실성 이 증가하였으며 , 글로벌 시장에서의 경쟁력 확보를 위해 신속한 기업 변화의 필요성이 증대되었음 구매비 / 생상비 운송 금리 보험 취급 품질 위험 Total Landed Cost 관세 재고 Total Landed Cost Cost indicator that estimates the real impact of purchasing decisions on the company´s costs and performance 글로벌화 , 경쟁 , 고객 Behavior 등으로 인한 기업 운영 구조의 변경 Globalization make more complexity of decision making
    17. 17. Shorter Product Life Cycle 기술의 발달과 기업간의 경쟁 심화로 인해 제품의 수명 주기가 단축되었으며 , Time to Market 및 재고 관리가 운영 및 판매의 중요 성공 요소로 작용 Yesterday Mercedes <ul><li>Engineering to Product </li></ul><ul><li>Selling Life </li></ul><ul><li>End of Life </li></ul><ul><li>Engineering to Product </li></ul><ul><li>Selling Life </li></ul><ul><li>End of Life </li></ul>Today Toyota <ul><li>Engineering to Product </li></ul><ul><li>Selling Life </li></ul><ul><li>End of Life </li></ul>Tomorrow Nissan
    18. 18. Environmental Compliance: an Enterprise Challenge 세계각국의 환경 및 건강에 대한 관심 증가로 다양한 형태의 환경규제들이 기업의 비지니스 네트워크상에서 영향을 미치고 있으며 , 이를 이해하고 준비하지 못한 기업들은 비지니스 단절을 각오해야할 중대한 위험요인 이 되고 있음 CA SB 20 NAS 411 ISO-14001 ELV IEC Guide 113 Japan REACH
    19. 19. IFRS: Of growing importance… Converging accounting standards <ul><ul><li>100+ countries use IFRS and most others are seeking convergence or adoption in the future </li></ul></ul><ul><ul><li>Korea announces IFRS requirements from 2011 </li></ul></ul><ul><ul><li>Brings one-time opportunity to reassess financial reporting and take “a clean sheet” approach to financial policies and processes </li></ul></ul><ul><ul><li>Recognizes that major accounting and reporting changes may have a ripple effect impacting many aspects of a company’s organization </li></ul></ul><ul><ul><li>Adopting IFRS will impact KPIs requiring communications plans for key stakeholders </li></ul></ul><ul><ul><li>IFRS will impact a company’s infrastructure, including underlying processes, systems and controls </li></ul></ul><ul><ul><li>By acting now, well in advance of IFRS conversion deadlines, Many companies have a rare opportunity to make time work for them </li></ul></ul><ul><ul><li>Most of the world already talks to investors and stakeholders about corporate financial performance in the language of IFRS </li></ul></ul>세계적으로 급속하게 확산되고 있는 IFRS 는 “ True & Fair 한 재무관리” 라는 그 본질적 의미를 볼때 단순히 재무관리기준의 변경만을 의미 하는것이 아니라 기업의 경영관리영역 (Plan-Do-See-Adjust) 전반에 걸친 선진화 를 요구함
    20. 20. Expanding business risks 87% of Risk are not Financial* <ul><li>Strategic </li></ul><ul><ul><li>Industry consolidation and globalization </li></ul></ul><ul><ul><li>Error-filled release of software upgrade </li></ul></ul><ul><ul><li>Change in core product demand </li></ul></ul><ul><ul><li>Cancellation of major customer contracts </li></ul></ul><ul><ul><li>Performance standards and service quality </li></ul></ul><ul><li>Environmental / Health </li></ul><ul><ul><li>West Nile Virus </li></ul></ul><ul><ul><li>Safety crisis </li></ul></ul><ul><ul><li>Compliance with environmental standards </li></ul></ul><ul><ul><li>Food sanitary management problem </li></ul></ul><ul><ul><li>Climate change </li></ul></ul><ul><ul><li>Environment pollution </li></ul></ul><ul><li>Operational </li></ul><ul><ul><li>Hurricane Katrina </li></ul></ul><ul><ul><li>Data center outage </li></ul></ul><ul><ul><li>Delivery risk </li></ul></ul><ul><ul><li>Blast furnace cold run </li></ul></ul><ul><ul><li>ERP application crash </li></ul></ul><ul><ul><li>Plant disaster causing production stoppage </li></ul></ul><ul><li>Legal and Compliance </li></ul><ul><ul><li>Fraud </li></ul></ul><ul><ul><li>Product liability claims </li></ul></ul><ul><ul><li>Missed time line for legal changes </li></ul></ul><ul><ul><li>Embezzlement of parts </li></ul></ul><ul><ul><li>Safety of goods or products </li></ul></ul>* Source: IBM Global Business Services, The Global CFO Study 2008. <ul><li>Financial </li></ul><ul><ul><li>Currency exchange rates </li></ul></ul><ul><ul><li>Interest issue and increasing reserves </li></ul></ul><ul><ul><li>Accuracy of realistic balance sheet reporting </li></ul></ul><ul><ul><li>Ability to manage cash </li></ul></ul><ul><ul><li>Non-transparent markets </li></ul></ul><ul><ul><li>Economic recession </li></ul></ul><ul><ul><li>Energy and commodity costs </li></ul></ul><ul><li>Political / Geopolitical </li></ul><ul><ul><li>Change of government – and minority governments </li></ul></ul><ul><ul><li>Grants and budget changes </li></ul></ul><ul><ul><li>Constant change of ministers </li></ul></ul><ul><ul><li>Federal Accountability Act </li></ul></ul><ul><ul><li>Terrorism </li></ul></ul>17% 13% 13% 17% 32%
    21. 21. Turbulent times require companies to focus on core priorities You can’t manage what you can’t measure… Measuring without factoring-in risk is futile… The possibility of savings will always get CFOs' attention, and there is no doubt that while controlling discretionary costs has been important to some extent, for many companies it has become paramount as fixed costs rise and economic uncertainty throws doubt on revenue growth.” “ Cost Control and Beyond” White Paper by CFO Europe Research Services, Oct 21 st 2008 “ Faced with threats from all quarters — recession and credit crunch, heated global competition, continuing Sarbanes-Oxley pressures — companies are making intensive risk management a top priority, and once again CFOs find themselves on the front lines.” “ Survival in the Age of Risk”, CFO Magazine, Aug 13 th 2008 “ It may be that the most valuable trait a CFO can possess today is flexibility and responsiveness to significant swings in the dynamics of the market.” “ Crisis Demands New CFO Skills” CFO.com, Oct 17 th 2008 “ 1. Mitigate Risk 2. Spend and Profitability Management 3. Adaptive Planning and Reporting
    22. 22. Shifting priorities and pressures demand closed loop business performance optimization <ul><li>Business Insight </li></ul><ul><li>조직 및 사업의 성과를 재무적 가치로 분석 </li></ul><ul><li>CEO 에 대한 전략 조언자로서의 역활 변모 </li></ul><ul><li>(Fortune 500 대 기업의 CEO 중 20% 가 CFO 출신 ) </li></ul><ul><li>Compliance & Audit </li></ul><ul><li>외부규제와 내부관리의 조화 </li></ul><ul><li>투명하고 공정한 재무관리 </li></ul><ul><li>Finance Services </li></ul><ul><li>내 , 외부 이해관계자들에게 선진화된 재무 서비스 제공 </li></ul><ul><li>Right Time, Right Information </li></ul><ul><li>Financial Transactions </li></ul><ul><li>재무거래 자동화를 통한 비부가가치 적 요소 제거 </li></ul><ul><li>Outsourcing, Shared Service </li></ul>SCOPE Compliance & Audit Finance Services Financial Transactions Business Insight Driving shift in CFO focus Source: CFO.com 최근 CFO 들은 과거 재무거래담당관으로서의 역할에서 벗어나 실시간 사실정보를 바탕으로한 사업통찰력을 갖기를 원하고 있으며 결국 이는 운영영역 뿐 아니라 관리영역에대한 개선 및 통합 을 요구하게 됨 <ul><ul><li>Today </li></ul></ul><ul><ul><li>Yesterday </li></ul></ul><ul><ul><li>18% </li></ul></ul><ul><ul><li>19% </li></ul></ul><ul><ul><li>17% </li></ul></ul><ul><ul><li>46% </li></ul></ul><ul><ul><li>26% </li></ul></ul><ul><ul><li>20% </li></ul></ul><ul><ul><li>22% </li></ul></ul><ul><ul><li>32% </li></ul></ul>
    23. 23. Agile but under control - Allow business/Sales to change & win © SAP 2009 / Page Structured New products Control Unstable Out of control Complexity Uncertainty Game of Agility New Processes New partners New customers Build SC Network SCM/ERP Projects PI Business/Sales IT Increase responsiveness across the supply network Build efficient supply chain processes and organization Automate and Integrate IT systems
    24. 24. How to sustain? <ul><li>내 / 외부 요구사항을 극복하면서 기회를 최대화 </li></ul>External Challenges Internal Competencies Sustainability Compliance / Performance Competency Management / Operation Alignment 사회적 책임 관리수준 제고 환경 규제 국제경제 기준 운영효율 제고
    25. 25. What we did Management / Operation <ul><li>지금까지 우리는 … </li></ul>Sustainability Competency <ul><li>Operation 을 중심으로 한 투자 </li></ul><ul><li>비효율성 제거를 목표 </li></ul><ul><li>프로세스 Changes </li></ul><ul><li>ERP, SCM, CRM, PRM 중심 </li></ul><ul><li>KPI / 보고서 위주의 관리 </li></ul><ul><li>소극적인 규제 대응 </li></ul>내부 역량 확보를 위한 투자 Internal Competencies External Challenges
    26. 26. What we have to do Compliance / Performance <ul><li>앞으로 우리는… </li></ul>Internal Competencies External Challenges Sustainability Competency 지속적인 성장을 위한 투자 <ul><li>사회 , 환경 , 경제적 규제에 대비 </li></ul><ul><li>Clearness & Fairness </li></ul><ul><li>적극적 그리고 전략적 규제 대응 </li></ul><ul><li>성과중심의 관리 강화 </li></ul><ul><li>기존 Infrastructure 전략적 관리 </li></ul><ul><li>지속적인 관리수준 및 운영효율 제고 </li></ul>
    27. 27. The Next Agenda ‘ Sustainability ’ Execution Strategy Excellency Efficiency Sustainability External Internal Corporate Response Challenge s Strategic Transformation E nv ironment R isk P erformance Enterprise Resource Planning IT paradigm shift
    28. 28. From ERP to ERP E nterprise R esource P lanning E nvironment R isk P erformance Business Process Platform E nv ironment H ealth & S afety G overnance R isk Mgt. C ompliance E nterprise P erformance M anagement Business Sustainability ERP SCM PLM CRM SRM Business Intelligence
    29. 29. 2 단계 : 기업 내부 통합 3 단계 : 내 / 외부 기능간 최적화 1 단계 : 부문 최적화 4 단계 : 내 / 외부 전체 네트웍 최적화 MRP Basic ERP SCM, CRM, SRM, PLM /Extended ERP EPM GRC EHS Business Process Platform Less Mature Companies More Mature Companies Plan – Do – Check - Act with Clarity <ul><li>기업 내의 특정 부문 단위 별 업무 최적화 </li></ul><ul><li>Plan  Do 위주 </li></ul><ul><li>기업 내의 다양한 부문의 통합을 통해 유기적인 연계 </li></ul><ul><li>기업 전반에 걸친 성과 관리 </li></ul><ul><li>Plan  Do  See 위주 </li></ul><ul><li>기업과 외부 협력 업체 / 고객 과의 Point-to-Point 로 연계 프로세스 및 시스템 확보 </li></ul><ul><li>1 st Tier 와의 연계 </li></ul><ul><li>Plan  Do  Check  Adjust </li></ul><ul><li>기업의 전체 운영 네크워크 상의 다양한 내 / 외부 부문 / 파트너와의 통합 최적화 </li></ul><ul><li>End-to-End 가치 중심 민첩한 운영 환경 </li></ul><ul><li>Plan  Do  Check  Adjust ( 짧은 싸이클 ) </li></ul>Product 혁신 중심 Product 혁신 Process 혁신 중심 Process 혁신 중심 People 혁신 중심 Maturity of information systems for Corporate Sustainability
    30. 30. Successful Companies Focus on Achieving Sustainable Performance Excellence Performance Excellence
    31. 31. To Reach Performance Excellence You Need to Focus on Business Insight, Best Practices, and Own Practices Performance Excellence
    32. 32. Step 1: Ensure Business Insight <ul><ul><li>Unified information </li></ul></ul><ul><ul><li>Instant access </li></ul></ul><ul><ul><li>Closed loop strategy to execution </li></ul></ul>Strategy Decisions Execution Business Intelligence Platform Business network enablement Unified information Collaborative Decisions Insight Performance Optimization Applications
    33. 33. Official Launch: SAP BusinessObjects Explorer Software “ With Explorer, executives could get answers in milliseconds … brand profitability, customer buying patterns … this could change the way decisions are made” Steve Merry, Sara Lee CIO
    34. 34. Empowering the End User with Business Insight Embedded Analytics Real-time Reports Advanced Analytical Applications
    35. 35. Step 2: Implement Best Practices <ul><ul><li>Increase value through integrated processes </li></ul></ul><ul><ul><li>Reduce Total Cost of Ownership </li></ul></ul>Business partners’ solution SAP NetWeaver Integration SAP NetWeaver Composition SRM SCM ERP PLM CRM Custom solution Ecosystem solution EhP EhP SAP Business Suite
    36. 36. but Our Reality after ERP implementation is ….. ERP 혹은 운영시스템은 대부분 연계 경영정보들은 여전히 다양한 시스템 , 양식으로 제공 되고 있음 많은 경영관리 영역들이 Point Solution 으로 구성 되어 있음 Many companies have disjointed systems leading to a lack of flexibility , insight, and efficiency
    37. 37. Seeking a new way forward Many urgently seek a target for a rationalized enterprise information architecture providing flexibility, insight, and efficiency. Yet, they can only go step by step focusing on the most important with rapid and substantial returns
    38. 38. SAP can today provide the Target & Transition SAP, can today provide a comprehensive, consistent and integrated enterprise solution target that can meet today‘s fundamental challenges... FLEXIBILITY INSIGHT EFFICIENCY ...and provide examples and transition options that allow focus on the most important manageable steps
    39. 39. GRC Assessment Pyramid Executives Workforce GRC Policy Financial Human Resource Procure to Pay Order to Cash Internal Controls Controls provide a mean to connect GRC policy objectives to business processes and workforce. GRC management allows to manage and ensure that controls meet regulatory and internal requirements. Risks GRC Assessment will map against the 3 layers: GRC policy, internal controls and processes
    40. 40. Tools for G overnance, R isk and C ompliance Process Controls SAP EH&S*, SAPxEM*, CfP* ORM (Operation Risk Mgmt) * GIAS Global internal audit standards EH & S Environmental Health & Safety Industry-specific Controls SAP Standard Apps MS Standard Tools MIC (Management of internal control) AIS (Audit Information System) GTS (Governance Transaction System) ARS (Audit Reporting System) ACL (Audit Command Language ) SOX Documentation & Audit Support Financial and System Audits Fraud Prevention General GIAS* Audits Risk-based GIAS* Approach User Management Roadmap related GIAS* Audits Access Controls Process Controls Access Enforcer, Compliance Calibrator Role Expert, Firefighter SAP GRC Toolbox xEM Extended Emission Management CfP Compliance for Products
    41. 41. SAP EHS allows Colgate to Govern and Execute an EHS Strategy globally Process Integration Core Business Processes Public & Markets Compliance Framework Management Procurement Service Production R&D Sales Authorities Worldwide Regulations Corp. Policies SAP EHS Management A comprehensive and integrated EHS Management increases operational visibility, reduces overall risks and costs of EHS compliance, while achieving worldwide compliance and improving company reputation. Visibility Data Exchange & Collaboration Collaboration § Adapt to Compliance Requirements Mitigate EHS Risks Enhance the brand Comprehensive and Integrated EHS Management
    42. 42. Bringing it together... Opportunities for driving sustainable growth <ul><li>Centralization of data centers  $280 million savings </li></ul><ul><li>Business practice changes  $150 million savings </li></ul><ul><li>Mgmt. determination contribute  gross profit margin of 54%. </li></ul>The convergence of EPM, GRC and BI and the ability to exploit business user applications which span these domains, lies at the heart of our performance optimization strategy.  Colgate Palmolive believes that SAP Business Objects is the only vendor that can provide this complete solution and we are very excited to be working with them as we continue to develop our joint vision”. CIO, Colgate Palmolive Co. <ul><li>Executive Management </li></ul><ul><li>Cascading strategy throughout organization </li></ul><ul><li>Accurate, timely, pertinent information </li></ul><ul><li>Accelerated decision-making </li></ul><ul><li>CFO/Corp. Controller </li></ul><ul><li>Accurate collaborative forecasting and planning </li></ul><ul><li>Visibility and transparency into cost drivers and profitability </li></ul><ul><li>Time for forward-looking business analysis and recommendations </li></ul><ul><li>Production / Operations Management </li></ul><ul><li>Collaborative planning and forecasting </li></ul><ul><li>Understanding of cost drivers and profitability </li></ul><ul><li>Alignment of resources with corporate strategy </li></ul><ul><li>Marketing Management </li></ul><ul><li>Focus on profitable markets, customers and products </li></ul><ul><li>Resources aligned with strategy and profitable targets </li></ul><ul><li>Rapid, logical decision-making </li></ul>FINANCE Operations Production Marketing <ul><li>Procurement </li></ul><ul><li>Single view of purchase data </li></ul><ul><li>Increased procurement efficiency </li></ul><ul><li>Rationalize suppliers & spend </li></ul>
    43. 43. 경영진의 전략과 각 조직의 실행이 연계되지 못한 단계 © SAP 2008 / Page EXECUTION LEVEL (Tactical) MID-MANAGERS (Operational) LOB EXECUTIVES (Strategic) Excel 시장 설문 ERP Application ( 실행 보고서 ) ERP Application ( 실행 보고서 ) Marketing Finance Sales Operations CEO & Board 회의 사업 Idea 벤치 마킹 자료 BI Application
    44. 44. Suppliers Customers Logistics Partners EXECUTION LEVEL (Tactical) MID-MANAGERS (Operational) LOB EXECUTIVES (Strategic) Marketing Finance Sales Operations CEO & Board ONE PLATFORM TO RUN YOUR BUSINESS STRATEGIC ENTERPRISE MANAGEMENT BI PLANNING SCORECARD P-D-C-A 를 통해 전략 / 계획부터 실행에 대한 민첩한 운영이 이루어지는 단계 © SAP 2008 / Page EPM Increase Return on Capital by 5% Global Strategy P C D A P C D A P C D A P C D A
    45. 45. 삼성의 변화 Forecast 에서 Commitment 로… Performance Improvement on process by fast PDCA (Weekly S&OP) Plan <ul><li>프로세스에 대한 세부 룰 정의 </li></ul><ul><li>최적화된 계획 수립 </li></ul><ul><ul><li>수익성 , 시장 상황 , 내부 상황을 고려한 최적화 계획 </li></ul></ul>Do <ul><li>계획데로 실행 ( 영업 , 생산 , 구매 , 물류 … ) </li></ul><ul><li>100% 의 데이터 정확도 </li></ul><ul><li>룰과 원칙에 입각한 실행 </li></ul>Check <ul><li>계획 vs 실행 분석 </li></ul><ul><li>예외상황에 대한 전체 네트워크 공지 </li></ul><ul><li>원인 분석 </li></ul><ul><li>해결방안 준비 </li></ul>Adjust <ul><li>해결방안의 실행 </li></ul><ul><li>지속적인 개선 </li></ul><ul><li>프로세스를 통한 근본 원인 해결 </li></ul>“ Say what you do, do what you say” 삼성전자 윤종용 부회장 <ul><li>Commit 한 계획에 대해서 주기적으로 Check 실행 </li></ul><ul><li>예외상황 발생시 최적의 결과를 끌어낼 수 있는 해결 방안 준비 및 실행 </li></ul><ul><li>성과 평가 시 각 개인 별 Commitment 에 대한 실행력 평가 </li></ul>
    46. 46. Performance Management 와 주 단위 계획 내 일별 재조정 프로세스 채널 D/C 지역 DC 중앙 DC 제조 공급사 스토어 구매 채널 DC 지역 DC 중앙 DC 제조 공급사 스토어 구매 요청 A 100 B 100 응답 A 100 B 50 단방향 수요 예측 응답 Customer 영업 1 주 후 <ul><li>전체 Process 를 위해 1 주 이상의 시간 필요 </li></ul>P D C A 글로벌 납기약속 글로벌 수요 관리 글로벌 공급 계획 글로벌 경영계획 Global Material Plan 고객 영업 P D C A P D C A P D C A 요청 1 A 100 B 100 응답 1 A 100 B 50 요청 2 A 125 B 75 Vessel ? Air ? 최종 확정 A 120 B 75 Air 양방향 수요 예측 응답 <ul><li>전체 Process 를 1 시간 내 처리 </li></ul><ul><li>일 3 회 PDCA 실행 </li></ul><ul><li>실시간 글로벌 가시성 확보 </li></ul><ul><li>주 단위 / 월 단위 PDCA </li></ul>Air ! Global Synchronized Fast PDCA 응답 2 A 120 B 75
    47. 47. Lenovo 의 전략 – 실행 통합 프로세스 Finance 까지 연계하는 전략 / 계획 / 실행 연계 프로세스 Closed-Loop 계획 / 실행 프로세스
    48. 48. Where to innovate © SAP 2008 / Page
    49. 49. 리더쉽의 종류 © SAP 2008 / Page 공정성과 단합력 상상력과 창조력 도전정신과 시장개쳑 조직을 위한 헌신 Guus Hiddink Leonardo da Vinci Christopher Columbus 조자룡 [ 趙子龍 ]
    50. 50. 민첩한 기업 CEO 의 리더쉽 - 민첩성을 겸비한 전체 조화 능력의 리더 공정성과 단합력 상상력과 창조력 도전정신과 시장개쳑 조직을 위한 헌신 만약 전체 팀이 11 명이 아닌 전 세계에 흩어져있는 10,000 명 이상이라면 ? 11 명의 축구팀같이 신속하고 유기적으로 운영할 수 있을까 ? © SAP 2008 / Page EPM
    51. 51. <ul><li>“ It's not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change .” </li></ul><ul><ul><li>- Charles Darwin - </li></ul></ul>
    52. 52. 민첩성 중심의 기업으로의 변화 운영의 효율성 중심 1990s 2000s 2010s 비즈니스의 민첩성 중심 전사적 자원 계획 및 관리 내 / 외부 변화에 대한 민첩성 대응 능력 Operational Excellence Agile Enterprise © SAP 2008 / Page
    53. 53. 2 단계 : 기업 내부 통합 3 단계 : 내 / 외부 기능간 최적화 1 단계 : 부문 최적화 4 단계 : 내 / 외부 전체 네트웍 최적화 MRP Basic ERP SCM, CRM, SRM, PLM /Extended ERP EPM GRC EHS Business Process Platform Less Mature Companies More Mature Companies Plan – Do – Check - Act with Clarity <ul><li>기업 내의 특정 부문 단위 별 업무 최적화 </li></ul><ul><li>Plan  Do 위주 </li></ul><ul><li>기업 내의 다양한 부문의 통합을 통해 유기적인 연계 </li></ul><ul><li>기업 전반에 걸친 성과 관리 </li></ul><ul><li>Plan  Do  See 위주 </li></ul><ul><li>기업과 외부 협력 업체 / 고객 과의 Point-to-Point 로 연계 프로세스 및 시스템 확보 </li></ul><ul><li>1 st Tier 와의 연계 </li></ul><ul><li>Plan  Do  Check  Adjust </li></ul><ul><li>기업의 전체 운영 네크워크 상의 다양한 내 / 외부 부문 / 파트너와의 통합 최적화 </li></ul><ul><li>End-to-End 가치 중심 민첩한 운영 환경 </li></ul><ul><li>Plan  Do  Check  Adjust ( 짧은 싸이클 ) </li></ul>Product 혁신 중심 Product 혁신 Process 혁신 중심 Process 혁신 중심 People 혁신 중심 Maturity of information systems for Corporate Sustainability
    54. 54. Announcing SAP’s Sustainability Solution Map
    55. 55. © SAP 2008 / Page Thank you! Won-Joon Hyoung SAP Korea, Ltd. President & CEO