Are you a CFO, CEO, or CMO who wants to improve your enterprise's profitability through better Profitability Management practices?
You have to get just about every business process right, every time.
After years of helping a broad spectrum of businesses across a wide variety of industries, we've developed a unique profitability consulting practice with a refined view of how to improve profit. That view has allowed us to develop the Ultimate Guide to the Best Practices for Improving Your Enterprise's Profitability Using SAP's Business Process and Cost Management Tool and associated best practices.
What is the SAP Performance Management Solution
SAP Profitability and Performance Management or PaPM is a new product suite. It represents the evolution of the SAP Profitability and Cost Management (PCM) solution acquired with the Business Objects acquisition. It is a rebranding of Performance Management for Financial Services or FS-PER. A native SAP HANA-based solution that helps organizations in conducting complicated calculations maintain large volumes of data to drive improved business decisions. SAP PaPM provides next-generation integrated performance management applications with no set data limits.
Integrated Seamlessly with the SAP HANA Platform
It provides ready-to-go planning functions. Integration with SAP S/4 HANA and ERP It can smoothly integrate with SAP S/4 HANA business suite and Enterprise Resource Planning to unleash data models, metadata, and master data. It also facilitates Data Element Synchronization, which makes master and metadata accessible together with all specified searches in FS-PER.
Key Capabilities Used to Improve Profitability
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Cost Analysis: Calculate the cost of the services, applications and internal clients that IT provides or supports using a transparent and robust costing methodology that reflects how they consume IT resource.
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Profitability and Performance Management: Ensure Cost and Profitability Reporting is fully integrated with planning and budgeting giving visibility of FUTURE product costs and customer profitability.
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Cost Management: Cost of key business processes are benchmarked against external data and peers.
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Performance Insights: Cost of key business processes reported every period together with forecasts for future periods.
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Advanced Business Modeling: Enable contributors who amend non-financial driver data, to update rolling monthly re-forecasts.
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SAP Analytics Cloud: Enable end-users to slice and dice the data over the web and carry out their own 'What-if?' analysis in real time so they can test out the impact of changes before committing to them.
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Model Management Functionality: Enable rapid and flexible model building.
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Self-Service: Enable self service for end-user enquiries.
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Shared Services Costing: Provide the capability for End-Users to trace back through assignments so they can see exactly what cost has been assigned and where it comes from.
First level supervisors will be especially interested in this subject where internal labor loans take place routinely.
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Profitability Modeling: Ensure functionality and flexibility that allows model builders to make assignments that reflect reality and are therefore more accurate.
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Model Configuration Maintenance: Ensure minimal manual intervention required of business users for replenishing and recalculating models.
You can set and achieve healthy performance goals using simulation capabilities of SAP Profitability and Performance Management. You can also use the flexible modelling, prebuilt content, and sophisticated models for corporate, value chain, and financial investment sustainability and act with confidence to improve operations by using real-time what-if analysis and simulations to inform sustainability decisions.
Risk and Solvency
You can expect complete transparency and full results through computations. Risk, Capital, and Solvency evaluations. You can utilize it as a risk and solvency platform for modeling and orchestrating the full process flow of regulatory Solvency II. Risk-based capital calculations and ORSA to provide total transparency and drill-down results via computations.
Part II of our Ultimate Guide
Part II of our Ultimate Guide will provide you with the other 11 critical steps required to maximize Profitability.
We have also expanded on these concepts with a downloadable guide which you can get by clicking on the button.
