The document discusses the challenges facing retail CFOs, including poor visibility into store-level performance and costs. It introduces a store profitability solution from SAP that provides key performance indicator dashboards, interactive what-if modeling and cost analysis, and real-time updates to forecasts. The solution aims to help CFOs better understand profitability drivers, evaluate opportunities, and make informed investment decisions.

1. Store Profitability
At a Glance
Retail
July 2010

2. The Challenges Facing Today’s
Retail CFOs
CFO Pain Points:
Poor visibility into performance at the store level and across the
enterprise
Ongoing cost of operations, with volatile raw material and shipping
costs, and work to mitigate where possible
Multiple systems (through acquisition) and accounting standards
(international) must be quickly consolidated and reconciled
Compliance with ever-changing financial and trade regulations
Enable future growth, evaluate different opportunities and making
key investment decisions
How can we help the CFO better manage profitability in this difficult
retail environment?
© SAP 2010 / Page 2

3. Opportunities for Optimization
Are you able to calculate fully burdened
profitability by store?
What is your current process for
determining where to make investments
of additional staffing?
What’s the process for determining the
cost of individual store activities?
© SAP 2010 / Page 3

4. Solution Overview
Store Profitability Solution Components:
Crystal Xcelsius
Profitability and Cost Management
Business Planning and Consolidation
Value / Benefits:
Monitor and analyze store-level key
performance indicators
Break down cost drivers and perform
What If modeling
Real-time visibility into updated
company-wide forecasts
© SAP 2010 / Page 4

5. Store Profitability – Pain Points
Visibility is difficult.
Allocated costs are not
apparent for superior
performance
Improve store-
level
performance
No visibility to Store
impact
Inability to do what –if
Modeling
Perform What-If
Analysis
Fractured process
Evaluate Costing results in costs not
Opportunities being updated to Store
Plans
Cost of Key Activities – No
visibility into Total Service Cost
Approve &
True cost to serve each
Update Store
customer
Plans
© SAP 2010 / Page 5

6. Store Profitability– Solution Enablers
Find new
opportunities to
improve store
performance
Improve store-
level Role-based
performance dashboards
Track key metrics by
exception alerting
Interactive what-if
modeling speeds
Perform What-If decision making
Analysis
Evaluate Update store plans
Costing
Opportunity Automatically tie back
into the overall
Quickly change variables and company forecast
see resulting cost implications
ERP
in real time
Break down the cost drivers
See resulting cost Approve &
implications in real time. True Update Store
Service Cost Plans
Model your business based
upon manageable activities
© SAP 2010 / Page 6

7. Store Profitability Solution
Benefits
Flexible dashboards that can deliver information via
Visibility
Web or Microsoft Office
Scalable enterprise-class solution Alignment
Reliable on-demand what-if analysis and Incisive decision
scenario modeling making
Real time
Updates to full P&L forecasts by store in real time
© SAP 2010 / Page 7

8. Information Delivery Without
Boundaries
Communicate
financial and
operational
information via
web or live
inside
Presentations or
Outlook
Monitor and
analyze store-
level key
performance
indicators
Real-time
visibility into
performance
© SAP 2008 / Page 8

9. Enhance Operational Efficiency
Break down
cost drivers
Model your
business based
upon
manageable
activities
Interactive
what-if modeling
© SAP 2010 / Page 9

10. Real time updates to Forecasts
Update store-
level plans with
automated
business process
flows
Real-time
visibility into
updated
company-wide
forecasts
Flexibility to
update drivers
and models on
the fly
© SAP 2010 / Page 10

11. Store Profitability Solution
Find new ways to understand opportunities
Visibility into true store profitability cost allocation
Proactively address cost drivers
Impact store profitability
© SAP 2010 / Page 11

12. Contacts
Pedro San Martín
Capgemini Iberoamérica
Tel. +34 6767 65 947
pesanmar@capgemini.com
Miguel A. García H.
Capgemini México
Tel. +52 55 8503 2430
miguel.garcia@capgemini.com
www.capgemini.com
www.innovaciónfinanciera.org