Accenture Advanced Enterprise Performance Management Solution for SAP

Back to the business of business: using SAP-based

solutions to exploit today’s insight and fuel tomorrow’s

business success

Enterprise Performance Management

makes available the right information

to back more insightful, faster decisions

today for an even better business

tomorrow

Imagine that your organization had the

capability to extract and interpret key

sales or operations insight to shape your

business strategy. In today’s business

environment, such an ability to closely

monitor and adjust the levers of value—

allowing executives to cut through the

complexity of global operations and act

at speed—is more critical than ever.

Organizations that use SAP applications

to run their business rely on specific

data to conduct financial practices—

close the books, report results, plan

and budget, control costs, or comply

with stringent legislation. Accenture

believes that such organizations have an

opportunity to develop more sophisti-

cated capabilities to achieve increased

insight, allowing them to better adapt

to market conditions and opportunities.

At Accenture, obtaining this information

and interpreting it is called enterprise

performance management (EPM). Ac-

centure is working with organizations

to help them get back to the business

of business: moving beyond their focus

on just running the numbers to better

identify and manage the drivers of high

performance.

Excellence in enterprise systems has

the potential to drive high performance

Accenture’s ongoing and extensive

research into high-performance busi-

ness reveals the enormous potential

of enterprise systems to influence the

three essential building blocks of high

performance: market focus and position,

performance anatomy, and distinctive

capabilities. Particularly, excellence in

enterprise systems provides technology-

powered levers for developing distinctive

capabilities—the integrated processes

and services that represent a company’s

unique formula for business success…

in essence, competitive advantage.

While SAP-based enterprise solutions

most directly contribute to distinctive

capabilities, they also provide the busi-

ness intelligence and analytics capability

that allow an organization to make more

informed decisions about the alignment

of all three building blocks for optimal

performance.

Vodafone teamed with

Accenture to take advantage

of SAP BusinessObjects Plan-

ning and Consolidation (for-

merly OutlookSoft) technology

to improve planning, control,

and management accounting

processes. Vodafone now has

powerful cross-area analysis and

reporting capabilities with new

functionalities and analysis di-

mensions that allow for suitable

performance indicators for new

business lines (such as proposi-

tion-based profit and loss); high

flexibility of traffic, profitability,

and estimating models—all fully

and easily customizable by some

200 users; system performance

that is compatible with critical

closing timelines; and excellent

system usability, especially for

integration of reporting with

standard office tools.

At Siemens, Accenture worked

closely with SAP to pioneer

the development of a financial

reporting solution, which made

all reporting and closing infor-

mation available via the Web for

1,200 consolidated subsidiaries

spanning 16 business units—

making it the world’s largest S

AP enterprise controlling/con-

solidation system implementa-

tion. Among its many benefits,

the solution provided a con-

solidated data resource to 3,000

users throughout the Siemens

corporate finance organization,

reduced the cycle time for finan-

cial reporting and consolidation

by 50 percent, and lowered costs

by 25 percent through stream-

lined information delivery.

EPM as a value creator

A Harvard Business Review study reported that best-in-class companies with EPM systems achieved 2.95 percent higher returns on assets and 5.14 percent higher returns on equity.2

Accenture’s vision for EPM, based on

extensive experience and research, is

wider in scope than is common—en-

compassing the capabilities required to

manage and optimize business perfor-

mance across the entire organization. It

includes governance for a holistic view

on enterprise performance, business

intelligence for thorough analytics, and

enterprise information management for

data integration.

Firmly grounded in driving total return

to shareholders, the Accenture approach

to more advanced EPM consistently

defines and models the key drivers of

both current and future value and fa-

cilitates the translation of performance-

driving strategies into tangible tactics

and plans. (See Figure 1) The benefit po-

tential is significant in driving competi-

tive advantage, increased profitability,

and market leadership through1:

Figure 1: Accenture Enterprise Performance Management Framework

(Details of the framework are shown on Page 7)

1 Enterprise Performance Management: Transforming

fi nance in the journey to value-based management,

Accenture 2006, available at: http://www.

accenture.com/Global/Consulting/Finance_Mgmt/

Enterprise_Performance_Mgmt/R_and_I/

EnterpriseValueBasedManagement.htm

2 Christopher D. Ittner and David F. Larcker, Coming Up

Short on Non-Financial Performance Measurement,

Harvard Business Review, November 2003.

Monitor

Operate

Target Setting Enablers

Business Strategy

Better execution of strategies, •

allowing optimal resource allocation

and maximizing sustained shareholder

value.

Translation of strategic goals into •

tactical execution.

Enhanced monitoring of strategy •

execution across the organizational

dimensions.

More insightful, faster decision •

making.

Optimized business performance •

across a single enterprise or business

network.

Greater connection between the •

fi nance and IT departments, including

shared business goals and strategies.

Advanced EPM is within reach

Today, more than ever before, advanced

EPM is within reach of SAP users. The

integration of SAP applications and

technologies across the areas of trans-

actional excellence, compliance and risk

management, and EPM, mirror Accen-

ture’s vision for transforming finance

into a key contributor of high perfor-

mance. (See Figure 2)

From our extensive work with SAP, we

understand how the SAP application

suite that enables EPM has evolved

and is evolving to be a viable tool that

encompasses enterprise-wide initiatives

and standardization to help drive broad

business value—financial and non-

financial, tangible and intangible.

Drawing on our deep industry experience,

understanding of business processes and

the exceptional breadth of talent and ca-

pability across our organization, we have

created the Accenture Advanced Enter-

prise Performance Management Solution

for SAP. The solution is designed specifi-

cally for organizations that manage their

operations with SAP, helping them to

fully incorporate value-added EPM in-

sight throughout their enterprise to bet-

ter manage the business and outpace the

market. Accenture can determine from

the insight gained through EPM which

functions to address first in driving high

performance—whether strategy, finance,

business intelligence, customer relation-

ship management, supply chain, human

resources, or marketing.

In the Accenture 2008 High Performance Finance Study,3 only 20 percent of responding companies described their EPM capabilities as “advanced”—encompassing enterprise-wide, value-driving initiatives and standardization. But those companies with “advanced” EPM were much more satisfied than others (38 percent vs. 6 percent respectively) with the contribution of finance to overall performance and a number of key drivers of high performance.

3 The Changing Role of the Finance Organization in

a Multi-Polar World: Accenture High Performance

Finance Study 2008, Accenture 2008, available

at: http://www.accenture.com/Global/Research_

and_Insights/By_Subject/Finance_Mgmt/Finance_

Operations/TheChangRole2008.htm

Figure 2. Core pillars of finance transformation

Business Intelligence (Query, reporting, analysis)

SAP technology components as enabler

Transactional

Excellence

Compliance and Risk

Management

Enterprise Perfor-

mance Management

Enterprise Information Management (Data integration, quality, federation,

master data management)

Core Enterprise

Resource Planning,

ECC 6.0, Other Tools

Governance, Risk and

Compliance

Enterprise Perfor-

mance Management

A consistent, coherent view of

enterprise-wide performance

The Accenture Advanced Enterprise

Performance Management Solution

for SAP is a financial and commercial

planning and analysis solution that helps

organizations take advantage of the

integration of the SAP platform across

business intelligence, financial planning,

compliance, and controls to gain a consis-

tent, coherent view of enterprise-wide

performance.

The solution enables finance depart-

ments to more easily access and deliver

the accurate and actionable information

their organizations need to formulate

strategic plans, make the right decisions

about markets, products and promotions,

and report to stakeholders in a timely

manner. By combining our unique insight

and experience in enterprise performance

management, market-leading system

integration expertise, and deep industry

knowledge, Accenture has formulated a

holistic, results-driven approach to tap

the full benefit of EPM.

Key solution features:

EPM framework for a phased, logical •

approach.

Comprehensive core set of tools with •

fl exibility to customize to company-

specifi c requirements and processes.

Value and portfolio analysis tools.•

Planning, budgeting, and forecasting •

methods.

Reporting and analytic methods.•

EPM methods. •

At the core of the Advanced EPM Solu-

tion is the Accenture Enterprise Perfor-

mance Management Framework powered

by SAP—a comprehensive, industrial

approach that is proven to fully integrate

functional processes and tools. (See

Figure 3) The framework illustrates all of

the components that must incorporate

key performance metrics into core man-

agement processes as well as supporting

tools, leadership behavior, and culture.

Each component of the framework

is enabled by SAP software whereby

companies can establish a technical in-

frastructure that directly supports their

EPM efforts.

Accenture serves as a trusted and capa-

ble guide to help organizations plan for

and execute the kind of change required

to incorporate the benefits of advanced

EPM processes into their business and

maximize the returns on their SAP in-

vestment. Our clients rely on our distinct

ability to link our deep understanding

of business processes with our systems

integration experience to enable those

processes with packaged solutions.

The Accenture EPM Framework is fully enabled by SAP’s EPM applications to increase enterprise insight, accuracy, flexibility, and speed.

Figure 3. Accenture Enterprise Performance Management Framework

Incentives and Rewards Standardized Processes

Integrated IT Architecture

Leadership and Capability Data Structures and Controls

Enablers

Monitor

Operate

Business Strategy

Target Setting

Integration of Information and Management Processes Enablers (People, Process and Technology)

Determine Key

Measures of Success

Assess Portfolio Value

Set Targets for Key

Measures of

Accountability

Cascade Targets to

Lower Level Metrics/

Organization

Determine Key Value

Drivers

Refine Corporate

Vision and Strategic

Objectives

Develop Plans to

Achieve Targets

Allocate Resources

(all categories) to

Achieve Plans

Review, Challenge and

Finalize Plans and

Forecasts

Develop Action Plans,

Re-allocate Resources

and Update Forecast

Review Performance

with Executive

Management

Monitor Key

Measures of Business

Performance

Backed by the power of Accenture

and SAP

The Accenture-SAP alliance is unlike any

other. It is rooted in a long-time strategic

relationship with executive-level com-

mitment, complementary strategies and

talent, and joint developments.

SAP brings the very best of performance-

enabling technology products while

Accenture brings a thorough technologi-

cal understanding of the SAP Business-

Objects suite, honed from 30 years of

SAP experience. The combination helps

clients to uncover the hidden benefits of

integrated SAP applications and tap into

more business insight for compliance,

financial planning, and growth. In fact,

Accenture is SAP’s primary partner in

implementing and integrating its enter-

prise resource planning central compo-

nent, business intelligence, and master

data management software which are

critical enablers of EPM. Accenture has

been recognized by SAP with more SAP

Pinnacle Awards than any other partner.

Accenture brings to our clients the best

of our EPM and SAP resources and skills,

among them:

More than 26,500 SAP practitioners •

globally—including more than 150

specializing in EPM, more than 2,300

focusing on business intelligence, and

more than 2,600 specializing in SAP

BusinessObjects software

Accenture Information Management •

Services that offers keen insight as

to data management and integration.

Accenture is SAP’s distinguished

partner in Master Data Management

capabilities.

Accenture Business Process Repository •

for SAP that houses thousands of

leading business practices and process

knowledge capital.

Accenture Delivery Suite for SAP with •

proven delivery methodologies and

tools for cost-effective delivery.

Accenture Global Delivery Center •

Network that offers 24/7 access to

skills in more than 40 centers around

the globe. More than half of the

centers in the network are home to

SAP capabilities.

“Accenture is one of the best providers for clients to consider when they need business process and strategy consulting expertise in addition to technical design and implementation skills.”

Forrester Wave: SAP Implementation Providers, Q4 ’07 (December 2007)

“…SAP BusinessObjects now has a broad portfolio of [EPM and Governance, Risk and Compliance (GRC)] applications and its overall vision is very strong… linkage of Corporate Performance Management (CPM) with GRC through its Strategy Management component is a visionary move…”

Gartner Magic Quadrant for Corporate Performance Management (CPM) Suites by Neil Chandler, Nigel Rayner, John E. Van Decker, (December 19, 2008)

Copyright © 2009 Accenture

All rights reserved.

Accenture, its logo and

High Performance Delivered

are trademarks of Accenture.

SAP is a trademark of SAP AG,

Germany

Contact UsFor more information or to sign up for

a workshop on how Accenture can help

you define your organization’s approach

to enterprise performance manage-

ment leveraging your SAP environment,

contact us at Accenture.AEPMforSAP@

accenture.com. To learn more about how

Accenture is helping organizations lever-

age SAP to become high-performance

businesses and governments, visit www.

accenture.com/sapgetcreative.

About AccentureAccenture is a global management

consulting, technology services and

outsourcing company. Combining unpar-

alleled experience, comprehensive capa-

bilities across all industries and business

functions, and extensive research on

the world’s most successful companies,

Accenture collaborates with clients to

help them become high-performance

businesses and governments. With more

than 186,000 people serving clients in

over 120 countries, the company gener-

ated net revenues of US$23.39 billion for

the fiscal year ended August 31, 2008.

Its home page is www.accenture.com.

About SAPSAP is the world’s leading provider of

business software*, offering applications

and services that enable companies of all

sizes and in more than 25 industries to

become best-run businesses. With ap-

proximately 76,000 customers (includes

customers from the acquisition of Busi-

ness Objects) in over 120 countries, the

company is listed on several exchanges,

including the Frankfurt stock exchange

and NYSE, under the symbol “SAP.” (For

more information, visit www.sap.com)

* SAP defines business software as

comprising enterprise resource planning

and related applications.

"Accenture and SAP have a strong history of partnering, and working together, we have developed deep domain knowledge and expertise for the benefit of our customers. SAP now has a fully configured portfolio for Enterprise Performance Management, including strategy, forecasting, reporting and analytics, that works seamlessly with our Intelligence Platform and Business Suite to enable customers to close the loop between strategy and execution. Together with our trusted partner Accenture, we can deliver high return-on-investment and rapid time-to-market for customers."

John Schwarz

CEO, SAP BusinessObjects solution portfolio, and Member, SAP Executive Board