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Enterprise Performance Management for Finance

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Applications for financial performance management help address changing corporate finance priorities. …

Applications for financial performance management help address changing corporate finance priorities.

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  • 1. Applications for financial FINANCIAL PERFORMANCE performance management help address changing cor- MANAGEMENT porate finance priorities. By OPTIMIZE FINANCIAL PERFORMANCE integrating enterprise data FOR A COMPETITIVE EDGE and processes, the applica- tions streamline traditional finance processes and deliv- er strategic insight to better Corporate finance positions have never business challenges, such as improving align business strategies to been more challenging. In addition to operational efficiency, ensuring regula- traditional duties like financial planning, tory and statutory compliance, and ulti- achieve financial excellence. reporting, and governance, CFOs and mately controlling performance for maxi- financial managers are being tasked mized profitability. Applications for with far more strategic responsibilities. financial performance management inte- Historically, the office of the CFO has grate enterprise data and processes to had to rely on a disparate set of tools deliver critical information that supports from multiple vendors to begin to ad- decisions made by all key stakeholders. dress these many challenges – which CFOs, finance departments, and busi- include mitigating the risk of restate- ness managers are able to utilize appli- ments, improving budget cycle times, cations that cover the following critical aligning resources and execution with areas: the strategic goals of the organization, • Strategic management of resources and having a complete understanding of – Optimize efficiency by aligning en- the drivers affecting cost and profitabili- terprise strategy with individual, func- ty throughout the organization. tional, and divisional performance measures and establish goals, initia- SAP helps you to meet your obligations tives, and key performance indicators today while laying the foundation for (KPIs) that are linked and truly reflect greater agility in the future with applica- the desired strategic goals of your tions for financial performance manage- organization ment. Part of SAP® solutions for enter- • Planning, budgeting, and forecasting prise performance management, – Efficiently manage and measure applications for financial performance business plans and enable proactive, management cover the full life cycle of rather than reactive, business tactics financial management – and put you in • Consolidation and financial report- control of performance. Comprising ing – Accelerate the financial close best-of-breed functionality, the applica- process and have confidence in deliv- tions integrate enterprise data and pro- ering the information your organiza- cesses to streamline traditional finance tion and stakeholders require processes. You can gain strategic in- • Financial governance and compli- sight for calculated decision making and ance control – Ensure that financial can confidently rely on your legal and business processes meet compliance management reporting. You achieve a requirements worldwide to mitigate thorough understanding of how value is risk generated so you can align your busi- • Cost and profitability modeling – ness processes more precisely with Maximize profitability through a real- strategic goals. time understanding of cost (including IT services costing), capacity, and rev- Support Business Needs enue across many dimensions of the business such as product, channel, With the right data, performance man- and geography agement applications, and resources, finance managers can address many SAP Solution Brief SAP Solutions for Enterprise Performance Management
  • 2. Improve Business Processes to Strategize and Prioritize financial and operational planning pro- Achieve Ongoing Financial The SAP Strategy Management appli- cess with a single application. Familiar Excellence cation helps both line managers and applications such as Microsoft Excel as corporate executives develop and exe- well as intuitive, Web-enabled thin cli- Performance management is not a one- cute strategic plans. By clearly linking ents serve as native interfaces to the time event; rather, it is an iterative, on- strategic goals to initiatives, KPIs, and application, allowing you to minimize going process that must be driven from people, you can set clear priorities with training, plan more efficiently, and im- the top down. The goal is to improve accountability and risk awareness that prove budget cycle times. the financial health of the organization all stakeholders understand and can act on a continual basis. Applications for on with confidence. With innovative features such as busi- financial performance management ness process flows, you can rest as- support the performance life cycle by The software helps you transform writ- sured that processes such as annual providing strong strategy management ten plans into living documents so that budgeting or closing the books are car- technology that promotes consistency you can define, discuss, and update ried out according to corporate guide- and advances alignment (see Figure). goals with employees. Documents can lines. In addition, you can enable more Planning and consolidation software include rich contextual visualizations calculated decision making by incor- streamlines planning and ensures a that drive greater adoption of key ob- porating predictive analysis and risk- fast, confident close, and activity-based jectives across your organization. In adjusted planning. costing software manages costs and addition, you can intelligently manage helps maximize profitability. A new resources and exceptions to focus on Monitor and Analyze breadth and confidence in corporate initiatives that will have the most Financial consolidation and legal and data provides the foundation to opti- impact. management reporting processes form mize enterprise performance and ad- a critical foundation of any organiza- dress the complete spectrum of finan- Plan and Execute tion’s performance management activi- cial performance management tasks With the SAP Business Planning and ties. SAP covers the full spectrum of within the process life cycle, summa- Consolidation application, you can requirements for performing your finan- rized in the figure below. streamline the bottom-up and top-down cial consolidation with our applications. Your account team can advise you on the best choice for your business. Comprising best-of-breed Strategize and functionality, applications for Prioritize financial performance manage- ment integrate enterprise data Model and Plan Optimize and Execute and processes to streamline traditional finance processes. Monitor and Analyze Figure: Performance Management Processes
  • 3. Our applications support automated Reach Greater Potential Achieve operational and financial excel- consolidation processes that meet all lence by identifying and eliminating the legal and reporting requirements, in- Applications for financial performance sources of cost most crippling to your cluding those for generally accepted management drive financial excellence. business and focusing on areas that accounting principles and the interna- You can capitalize on the value of your maximize profitability. tional financial reporting standards. The corporate data to mitigate the risk of software also features support for mul- restatements, improve budget cycle SAP Solutions for Enterprise tiple currencies, currency translation times, and align resources and execu- Performance Management adjustments, minority interest and equi- tion with the strategic goals of the or- ty calculations, and intercompany rec- ganization. In addition, you gain insight The applications for financial perfor- onciliation, for example. Automating into the drivers affecting cost and prof- mance management are part of SAP processes and improving compliance itability throughout the organization, solutions for enterprise performance with regulatory and financial standards which creates competitive advantage. management – a comprehensive set of – including a full audit trail – not only The applications deliver the following solutions that help your company capi- help reduce external audit costs but business benefits: talize on the value of your existing data also enable books to be closed faster, • Strategic alignment – Synchronize assets. With these solutions, your or- generating financial reports that you goals with initiatives, priorities, re- ganization becomes more agile, gaining have more confidence in. sources, budgets, reports, risk man- organizational alignment, visibility, and agement, and analysis processes to greater confidence to give you optimal Model and Optimize access the information you need to control and competitive advantage. The BusinessObjects™ Profitability and improve performance and close the These solutions can work with SAP Cost Management application delivers gap between strategy and execution Business Suite applications; SAP solu- visibility into the true drivers impacting • Improved visibility – Ensure that all tions for governance, risk, and compli- your bottom line. By linking operational stakeholders in your organization ance; and the business intelligence activities and financial perspectives, own, maintain, and share information platform from SAP. As a result, you you’re able to gain a deep understand- in context and in real time so they can maximize business profitability, ing of the levers affecting organiza- can identify areas for improvement manage risk and compliance, and tional costs and profitability of any and evaluate strategic scenarios for optimize corporate systems, people, dimension of your business – your cus- maximum business impact and processes. tomers, products, and channels – both • Increased agility – Improve business current and future. You can identify the processes to speed performance Find Out More causes of underperformance, test your management cycles; deliver trusted assumptions, and take incisive action. data to accelerate every stakehold- To find out more about SAP solutions You can also evaluate the cost of pro- er’s ability to communicate, collabo- for enterprise performance manage- viding IT services to users within the rate, and execute on a commonly ment, visit www.sap.com/solutions enterprise. Modeling is rapid and model understood and defined plan of /performancemanagement. maintenance is minimal, giving a fast action, adjusting plans and execution time to value and low total cost of as necessary operation. • Greater confidence – Leverage a foundation of consistent and trusted enterprise performance management data for incisive decision making and for compliant regulatory, statutory, and management reporting
  • 4. QUICK FACTS www.sap.com /contactsap Summary Applications for financial performance management, part of SAP® solutions for enterprise performance management, cover the full life cycle of financial management and put you in control of performance. Comprised of best-of-breed functionality, the applications integrate enterprise data and processes to streamline traditional finance processes. You can gain strategic insight for calculated decision making and can confidently rely on your legal and management reporting. You achieve a thorough understanding of how value is generated so you can align your business processes more precisely with strategic goals. Challenges • Inconsistent or inaccurate data and reporting that could lead to the risk of restatements • Lengthy financial management cycles • Inability to predict future costs that impact growth • Lack of alignment between enterprise strategy and day-to-day operations Supported Business Processes and Software Functions • Strategy management – Align strategy with execution to achieve operational excellence • Planning – Streamline planning, budgeting, and forecasting processes to reduce perfor- mance management cycle times • Profitability and cost management – Fully understand what drives cost and profitability across any dimension of your business • Financial consolidation – Accelerate closing, manage reporting cycles, and comply with regulations Business Benefits • Strategic alignment – Synchronize goals with initiatives, priorities, resources, budgets, reports, risk management, and analysis processes to access the information you need to improve performance and close the gap between strategy and execution • Improved visibility – Ensure that all stakeholders in your organization own, maintain, and share information in context and in real time so they can identify areas for improvement and evaluate strategic scenarios for maximum business impact • Increased agility – Improve business processes to speed performance management cycles and deliver trusted data to accelerate every stakeholder’s ability to communicate, collaborate, and execute on a commonly understood and defined plan of action, adjusting plans and execution as necessary • Greater confidence – Leverage a foundation of consistent and trusted enterprise perfor- mance management data for incisive decision making and for compliant regulatory, statutory, and management reporting 50 084 068 (08/04) ©2008 by SAP AG. For More Information All rights reserved. SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other For information visit www.sap.com/solutions/performancemanagement. SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves 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 (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.