2. 1
In This Session
• Walk through Applied’s SAP Business Planning and
Consolidation implementation project
• Hear firsthand why the company chose to implement the financial
planning aspect of BPC ahead of the financial consolidation piece
3. 2
What We’ll Cover
• Applied Materials Overview
• Why this approach was so critical to the long-term success of the
BPC project
• Potential key planning design elements that could impact future
consolidation functionality in BPC
• Insight into the key integration points between planning and
consolidations in BPC
• Cost Center Planning implementation highlights
• Wrap-up
4. 3
Applied Materials, Inc.
Stock Ticker: Nasdaq: AMAT
Fiscal 2013 Revenue: $9.1 billion
Fiscal 2013 R&D: $1.4 billion
Founded: November 10, 1967
Headquarters: Santa Clara, California
Global Presence:
81 locations in
18 countries
Principal Locations United States, Israel, Singapore, Taiwan
Employees: ~ 14,000 worldwide
Patents: ~ 10,500 issued
Data as of end of fiscal year end, October 26, 2014
*Excluding temporary and interns
5. 4
Applied’s Enterprise SAP User Base Worldwide
APAC
Taiwan
China
China
Amsterdam, British
UK, France,
Germany, Ireland,
Israel, Italy
AMNA
India
81 WORLDWIDE LOCATIONS, 18 COUNTRIES, & GROWING!
Data as of end of fiscal year end, October 26, 2014
EMEA
California,
Massachusetts,
Montana, Texas
Japan
Korea
Singapore,
Malaysia
7. 6
Key Operational Requirements
• Time zones: 6 (Extends from Pacific to North Asia)
• Regions: 7
• Segments: 4
• Languages: 7
• Global Support: 24/7/365
• Frequency of actuals refresh for planning: Hourly
8. 7
Applied’s Future-Proof BPC Landscape
Cost Center
Planning
Internal
Management
Reporting
External
Financial
Reporting
Unified Planning, Budgeting, Forecasting, Financial
Consolidations, and Management Reporting
BW-BPC
Foundation
Cost Center Planning in BPC
Business
Consolidation in
SEM BCS
Reporting MS Excel/Web Front End for BPC & BEx for BCS
Planning &
Consolidation
SAP Business Process Flows/Common Data
Model/Common Security
9. 8
Applied’s Planning and Consolidation Landscape
• Applied Materials and its 73 subsidiaries across various regions
use SAP SEM BCS for legal and management consolidation
AMAT has deployed SAP BPC for
Cost Center Planning
Planning
SAP BPC
Hyperion Planning
SAP SEM BCS
SAP BW
SAP ECC
Non-ECC Sources
Data storage,
InfoProviders,
Metadata, and
master data
11. 10
What We’ll Cover
• Applied Materials Overview
• Why this approach was so critical to the long-term success of the
BPC project
• Potential key planning design elements that could impact future
consolidation functionality in BPC
• Insight into the key integration points between planning and
consolidations in BPC
• Cost Center Planning implementation highlights
• Wrap-up
12. 11
Considerations for Implementing Planning
Ahead of Consolidation
• Legacy planning applications were on non-SAP platforms
Head Count and Cost Center Planning
Recent new acquisition with varying department business
requirements
Need to introduce uniform, enterprise-wide business
planning process
Requirement for a stable planning application that offered
native integration with existing SAP landscape
• Stable SEM-BCS consolidation application
Applied is in the process of integrating its recent acquisition
13. 12
Approach to Implement Planning Ahead of
Consolidation
• Comply with Applied’s key design principle to source ECC master
data and hierarchy when available
GL Accounts/Cost Elements, Cost Centers, Profit Centers,
Business Units
Ensured consistency of master data and hierarchy across
application layers
• Source actuals data from ECC and provide aggregated
reconciliation capability based on Business Units
Aggregation by Business Unit enabled easy reconciliation
Ensured consistency of actual transaction data across ECC,
BW, and BPC
14. 13
Approach to Implement Planning Ahead of
Consolidation (cont.)
• Consider potential future Consolidation needs while designing
Cost Center Planning model in BPC
Company Code, GL Accounts, Cost Centers, Profit Centers,
Business Units, Trading Partners, Functional Areas
Ensured compatibility with BPC Consolidation functionality
during data modeling in design phase (master data and
properties)
• Address Cost Center Planning reporting requirements completely
in BPC
Deployed standard MS Excel and Web-based reporting in BPC
Avoided BEx-based reporting and retraction to BW
15. 14
Approach to Implement Planning Ahead of
Consolidation (cont.)
• Portal-based single sign-on access for BPC
Provided access to BPC in existing portal page based on
the current security design
Leveraged standard BPC NW features for security
• Catered to Applied’s central master data management principle
GL Accounts/Cost Elements, Cost Centers, Profit Centers
Complied with SOX requirements and minimized change
management challenges
16. 15
What We’ll Cover
• Applied Materials Overview
• Why this approach was so critical to the long-term success of the
BPC project
• Potential key planning design elements that could impact future
consolidation functionality in BPC
• Insight into the key integration points between planning and
consolidations in BPC
• Cost Center Planning implementation highlights
• Wrap-up
17. 16
Key Planning Design Elements with Potential to
Impact Future Consolidation Functionality
Design Elements Hierarchy Cost Center
Planning
Consolidation
Company Code
(Entity)
Applicable Common master data
Segment (Profit
Center and Business
Unit)
Multiple – Applicable Common master data
Account Applicable
Common master data
Transaction Data –
Actuals – Source &
Refresh Frequency
Not Applicable Common source
Currency Applicable Common master data
Versions &
DataSource
Applicable Common master data
18. 17
Key Considerations During Implementation
• BPC is a unified planning and consolidation application
Ensured foundation laid for the current planning
implementation was aligned with potential future consolidation
functionality
Ignoring consolidation and going for post-deployment
redesign could have been difficult
• Include Consolidation Representative in design phase
Include consolidation Process Owner as a signatory to
Business Requirements Document
Validate data model and source data elements and reach
consensus
Alignment with Consolidation was a prerequisite for planning
implementation
19. 18
What We’ll Cover
• Applied Materials Overview
• Why this approach was so critical to the long-term success of the
BPC project
• Potential key planning design elements that could impact future
consolidation functionality in BPC
• Insight into the key integration points between planning and
consolidations in BPC
• Cost Center Planning implementation highlights
• Wrap-up
20. 19
Key Design Elements and Integration Points
Between Planning and Consolidation
• Checked if any dimensions used in Cost Center Planning model
would be required for future Consolidations model
What views of data do you need supported for reporting?
Consider system performance implications with adding
dimensions vs. properties
• Evaluate BW data warehousing capabilities vs. BPC-based
conversions and transformations
Consider resources, skillset, and bandwidth for support
and maintenance
Consider criticality of performance and frequency for
data loads
Choose optimal application layer for task
21. 20
Key Design Elements and Integration Points
Between Planning and Consolidation (cont.)
• Based on business requirements
and application design, master
data can be maintained in ERP,
BW, and BPC
Standard extractors are
available for sending master
data from ECC to BW
Ensure periodic
synchronization of master data
between BPC and BW layers
where needed
Import master data and
hierarchies from SAP BW
InfoObject into BPC application
BPC
BWECC
Sharing characteristics between ECC, BW, and
BPC can significantly enhance integration in
terms of understanding, alignment, and
interoperability in reporting
23. 22
Key Design Elements and Integration Points
Between Planning and Consolidation
• Profit Center Group in ECC
Leveraged Profit Center Group-based hierarchy in ECC as
source for BPC
ABAP enhancement to create alternate hierarchy with select
Profit Centers required in BPC
Periodic refresh of ECC-based alternate hierarchy in BW
InfoObject for Profit Center
Sourced PARENTH2 hierarchy for Profit Center Dimension
from BW
24. 23
What We’ll Cover
• Applied Materials Overview
• Why this approach was so critical to the long-term success of the
BPC project
• Potential key planning design elements that could impact future
consolidation functionality in BPC
• Insight into the key integration points between planning and
consolidations in BPC
• Cost Center Planning implementation highlights
• Wrap-up
25. 24
BPC Cost Center Planning Implementation
Highlights
• Head Count-based Cost Center Planning
• Cost Element/GL Account defined as Account Dimension
• Managerial reporting enabled in BPC based on:
Profit Center
Business Unit
Segment
• Business Unit defined as custom field in ECC New GL
Derived Business Unit based on attribute of Profit Center
InfoObject in BW
Enabled derivation of Business Unit based on Profit Center in
input schedule
Enhanced existing reports in BW to report on Business Unit
26. 25
BPC Cost Center Planning Implementation
Highlights (cont.)
• Segment as hierarchy node in BW
Sourced segment as a node in Profit Center Hierarchy from BW
• Profit Center, Business Unit, and Segment with parallel
hierarchies and time-dependent reporting
Enabled reconciliation of actuals across ECC, BW, BPC
• Master data and actuals loaded from ECC via BW to BPC
Utilized standard extractors and pre-delivered Data Manager
packages
• Enhancement for hierarchy creation with select values in ECC
(extracted via BW for BPC)
Selection parameters provided for creation of Profit Center
hierarchy based on select members in ECC
27. 26
Transformation in BPC vs. BW
• Transformation
When source system has data in a form that is different from
what is required in target system, we require transformation
E.g., If master data is unique, BPC users need only to
provide the member ID. By adding specific prefixes to
dimension members, BPC master data can be both unique to
improve system usability and familiar to improve user
comfort.
• Data transformation can be handled in BPC as well as in BW
Evaluate requirement on a case-to-case basis and determine
most optimal application to perform data transformation
28. 27
Transformation Handled in BPC
• BPC dimension naming conventions were handled in BPC
BPC dimension members with a prefix is a commonly used
method by BPC experts to assure unique master data across all
dimensions in the Application Set
BPC works optimally with unique master data even across
dimensions, though unique master data is not a system
requirement
Added prefix in BPC for most dimensions
E.g., Prefix “PC_” was added for profit centers using BPC
transformation
29. 28
Transformation Handled in BW
• Selective hierarchy transformation and refresh handled in BW
BW was utilized for creation of time-dependent Profit Center
Hierarchy and periodic synchronization with ECC Profit Center
Group Alternate Hierarchy
Only when delta was noticed, new data was sent to BPC
by BW
You must run the master data load package before running
the hierarchy import package; otherwise, you will get a
missing member error
31. 30
Streamlined Cost Center Planning
• Integrated Cost Center Planning brings together SAP BPC-BW
technical capabilities and Applied’s business processes in a
single, unified platform
CC Planning – Reporting
Planning Levels
Actuals Data Reconciliation
based on Business Unit
ECC BW
ECC
Reporting
ECC BW BPC
ECC BW BPC
Cost Centers &
Cost Element
Additional Levels
Possible
Reporting
ReportingReporting
BEx
Reporting
BPC
EPM Excel
Reporting
32. 31
Input Schedules for Cost Center Planning
• BPC EPM Add-in supported MS Excel-based input schedules
For Cost Center Planning by Cost Center Group
For Headcount and Labor Rate
• Customized Excel front end to simplify user adoption
• Leveraged Member Recognition functionality
• Derived dimension member values from attributes of other
dimensions (for Profit Center from property of Cost Center
dimension)
• One source of truth for Actuals from ECC via common BW
34. 33
Reports for Cost Center Planning
• BPC EPM Add-in supported MS Excel-based reports
For Cost Center Planning by Cost Center Group
• Customized Excel front end to simplify user adoption
• Report structure used member recognition technique
• Drill through from one data set to another
• Standard EPM Add-In field selection functionality and tools (EPM
Context and EPMSelectMember) utilized for selections within
report
• Two levels of security for reports in BPC
Data security (Which data is a user able to access and
change?)
Report access (Which report is a user able to access?)
36. 35
Guiding Principles in Design
• Ensured efficient data collection mechanism
• Assigned Cost Center Planning ownership to operational
business units
• Defined consistent methodology and timeline to complete
forecasts
• Automated rolling forecasts through BPC
• User’s perspective weighed during design phase
• Overarching strategic goal was to reduce end-to-end process time
in delivery of timely and useful information for external reporting
and internal decision support and to enable integrated reporting
37. 36
Best Practices
• Central Master Data Management
Prefer single source of master data
Ensured consistency with business reporting, compliance
with numbering conventions, and business rules
Leverage data warehouse application’s heavy weight lifting
capability instead of agile BPC layer
Performed data transformations, conversions, periodic data
synchronization, validation in SAP BW
Ensured BPC system performance was not adversely
impacted
38. 37
What We’ll Cover
• Applied Materials Overview
• Why this approach was so critical to the long-term success of the
BPC project
• Potential key planning design elements that could impact future
consolidation functionality in BPC
• Insight into the key integration points between planning and
consolidations in BPC
• Cost Center Planning implementation highlights
• Wrap-up
39. 38
Where to Find More Information
• SAP EPM Community on SDN
http://scn.sap.com/community/epm/planning-and-consolidation-
for-netweaver?url_id=text-search-best-best-scn-community-
epm-planning-and-consolidation-for-netweaver
SAP Community Network provides rich content on SAP BPC
for SAP NetWeaver
Hot news and featured content on current topics from
experts and teams involved in implementation can be
accessed at this site
Also available is extensive forum discussions on EPM
• SAP Business Planning and Consolidation (BPC) TV
www.youtube.com/user/SAPBPC
Videos of customers talking about how they use the BPC
application to help improve business performance
40. 39
Where to Find More Information (cont.)
• SAP Help
http://help.sap.com/bopacnw101/
SAP BusinessObjects Planning and Consolidation 10.1, version for
SAP NetWeaver
• SAP How-to guides
http://wiki.scn.sap.com/wiki/display/BPX/Enterprise+Performance+Ma
nagement+%28EPM%29+How-to+Guides
SAP EPM “How-to” guides are intended to simplify implementation
Specific product features and procedures are explained in a
practical business context
• SAP EPM official community on LinkedIn
www.linkedin.com/groups?&gid=2327383
View blogs, product features, conference info from SAP America
representatives, as well as discussions and promotions in the
official SAP EPM group on LinkedIn
41. 40
7 Key Points to Take Home
• BPC is a unified application for planning and consolidation
Regardless of which solution is implemented first, ensure
adequate business representation from Planning,
Consolidation, reporting groups
• Ensure consistent master data management by sourcing it from
ERP when possible
Ensure consistent data by leveraging native integration
• Evaluate between adding dimensions and adding dimension
properties
Evaluate and choose optimal functionality to address business
requirements
42. 41
7 Key Points to Take Home (cont.)
• Lay BPC foundation for the future
Save significant rework in future implementations
• Leverage Data Warehouse capabilities
Conserve BPC performance for core planning and
consolidation – analysis and reporting
• Utilize BPC’s powerful Excel-based EPM reporting capabilities
Empower business users with ad hoc reporting capabilities
• Go standard; choose custom only when unavoidable!
Planning and consolidation is not rocket science!
43. 42
Your Turn!
How to contact us:
Sunil Enaganti
sunil_enaganti@amat.com, @sunilenaganti
Vish Arunachalam
@arunvis
Please remember to complete your session evaluation
44. 43
Disclaimer
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or
an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective
companies. Wellesley Information Services is neither owned nor controlled by SAP SE.
The statements in this presentation regarding the future of the Applied Materials’ technologies and commercial prospects are forward
looking and actual results could be materially different from those expressed or implied by such forward looking statements as a result of
various risk factors
The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant
business, economic and competitive uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to
Applied Materials. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements.
