SEM BPS Value Case Creation
Sometimes, you are under the gun to prove the new business planning system will pay for itself. In fact, if you’re a SAP BPS or SAP BPC consultant, or project manager on a SEM BPS project or SAP BOBJ project, it is almost assured that you will need to ‘make your case’.
SEM BPS Value Case Template To The Rescue
Fortunately, help is available. You don’t need to develop such a case from scratch, Value Engineers (us) have already developed the framework.
Spreadsheet Model of Likely Benefit Areas
We’ve put together a handy spreadsheet model of the most likely benefit areas and shown some of the assumptions you can make as far as improvement possibilities and probabilities. The areas you are most likely to affect in the Retail Industry, which, globally represents more than 12 trillion in annual sales (and that was a long time ago), is our focus, but the model is applicable, with slight modification in nearly every industry:
Use SEM BPS to Plan and Simulate Various Scenarios in a Closed Loop Planning Environment
- Strategy Management
- Improved performance monitoring efficiency
- Affecting
- Company Revenue
- Operating Margins
- Improved revenue from tying initiatives to strategy
- Budgeting & Forecasting costs (as % of revenue)
- Gap in productivity that can be improved by outlooksoft
- Business Planning
- Improved Forecasting Accuracy
- Affecting
- Business operations reporting & analysis (as % of revenue)
- Gap in productivity that can be improved by outlooksoft
- Improved Business and operations Analysis & reporting Productivity
- G/L and financial closing costs (as % of revenue)
- Gap in productivity that can be improved by outlooksoft
- Business Consolidation
- Improved Business and operations Analysis & reporting Productivity
- Affecting
- Business operations reporting & analysis (as % of revenue)
- Gap in productivity that can be improved by outlooksoft
- Improved financial closing productivity
- G/L and financial closing costs (as % of revenue)
- Gap in productivity that can be improved by outlooksoft
- Reduced IT costs to support planning & consolidation
- Headcount cost of IT support to Finance planning & consolidation ($M)
- Gap in productivity that can be improved by outlooksoft
- Profitability Management
- Increased profitability from improved insights into costs
- Affecting
- TTM revenue ($M)
- Operating margin
- Expected margin improvement
- Improved productivity in Profitability analysis
- Affecting
- Costs associated with Profitability / segment analysis (as % of revenue)
- Total costs for profitability/segment analysis ($M)
- Gap in productivity that can be improved
Strategy Development and Management Requires Work
Within the realm of Strategy Management, you won’t get these benefits without considerable thought and effort being put into the actual business strategy of your company. In short, the SAP BusinessObjects or SAP SEM Business Planning & Simulation solution provide strong technical solutions to what is at its base, a management exercise.
SAP for Retail Industry
The retail industry value chain is complex. For this reason, we recommend the implementation team consist of a mixture of SAP SEM BPS or SAP BOBJ BPC consultants and business consultants (sometimes they come bundled in one person, sometimes not). Of course, you will need an expert SAP BW modeling guru to ensure the datawarehouse is configured correctly. Our SAP BPS consulting practice has deep expertise across both the Retail Industry landscape and SAP for Retail Industry tools and techniques.
If your company consist of business entities that use multiple currencies, then you will need to have, in addition to the BW and BPS consultants, a Financial Consultant to ensure that you not only have your currency translations set up technically correct in both the SAP BW and BPS (or BPC) systems, but that the company has a clearly defined currency translation strategy.
Do not take this part of the project lightly, as this is one of the more complex areas you will encounter, especially when you go beyond 3 currencies.
SEM BPS Value Case Template
Don't forget to grab your copy of the SEM BPS Value Case Template.
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