realizing the value of enterprise soa
TRANSCRIPT
Realizing the Value of Enterprise SOADoug MerrittCorporate Officer and member of the Executive Council, head of Business User Development, SAP AG
Managed
Risk
Open Ecosystem
NetWeaver
SAP BUSINESS SUITE
Enhancement Packs
CUSTOMERNEEDS
Stability
Predictability
Openness
Flexibility
SOA ENABLED
Business User Applications
Stability Within Technology Evolution
Addressing the Needs of Our Customers
Business Suite Business SuiteSAP NetWeaver
Other Applications
Buying Centers
Information & Process Access
Performance Management Financial
Performance Mgmt.
Risk and Compliance IT
Compliance Financial
Compliance
Productivity Tools
Enterprise wide Strategy management
Enterprise wide Risk Management
COO
Operational Compliance
Operational Performance Mgmt.
CFO CIO
Significant ImpactsAnd significant recovery periods
Half of the companies require >1 yr toregain lost value, 22% never recover
Source: Deloitte, Disarming the Value Killers, 2005
22% 50%
22%
Recovery Period<= 1 year1 to 3 years
> 3 yearsNot recovered
6%
Source: Deloitte, Disarming the Value Killers, 2005
Nearly half of the Fortune 1000 lost >20% of stock value
28% 20%
24% 28%
Value Loss0-15%15-20%
20-25%>25%
Integrity and Innovation in a Networked Enterprise
Strategy to ExecutionRisk Adjusted Performance
Real-time Business InsightLean Compliant Operations
Unified Financial Management Across the Network
CIOCFOCOO
SAP Enterprise SOA Enabled Solutions
Business Suite Business SuiteSAP NetWeaver
Other Applications
Buying Centers
Information Worker
Corporate Performance Management
Governance, Risk, and
Compliance
Duet Enterprise Search
Mobile Adobe Forms Analytics Dashboard
Voice
Strategy ManagementSpend Analytics
Supply Chain RiskCustomer Analytics
Enterprise Risk Management
Access ControlsCisco Composite
Global Trade ServicesProcess Controls
Environ. Compliance
Profitability Mgmt.Budgeting / Planning
Consolidation
Information Work Extends to New Roles and Processes
Information Work
Core Business Processes
Adjacent Business Processes
Existing Apps
Business User Organization Focus
Task Work
SAP Business
Suite
Information Worker Applications
Organizational Performance Apps
SAP Solutions for Information WorkersA portfolio of solutions to enable your workforce
Duet xApp Mobile Time and Travel
xApp Mobile Sales
Collaborative Portal
Enterprise SearchxApp Analytics
Desktop Mobile Web
Interactive Forms by Adobe
Interactive Forms by Adobe
Addressing the Needs of Our Customers
Business Suite Business SuiteSAP NetWeaver
Other Applications
Buying Centers
Information & Process Access
Performance Management Financial
Performance Mgmt.
Risk and Compliance IT
Compliance Financial
Compliance
Productivity Tools
Enterprise wide Strategy management
Enterprise wide Risk Management
COO
Operational Compliance
Operational Performance Mgmt.
CFO CIO
Overcome Fragmentation: Gain Transparency with a Holistic Approach
Supply chain Customers and channel
Board and audit committeeEvidence for decisions and
directivesCompliance and risk
officeIntegrated risk analysis
Executives and managersIncreased confidence in business results
IT operationsSecure IT infrastructure
ProcurementAntiterrorist
trade practices
Finance Global financial reporting compliance
Human resources Environment, health, and safety compliance
Sales and serviceBalancedcredit profile
SALARIES
Risks Management Steps Process automation for the virtuous cycle
Actionable, role-based
dashboards and alerts
Establish risk appetite
and thresholds
Collaborate and aggregate across the
enterprise
Balance cost of risk avoidance
and opportunity
SAP GRC Risk ManagementProviding the framework for an integrated approach to ERM
Business Process Platform
SAP GRC Risk Management
GRC Repository
Global Trade Environment / Safety Supply Risk xApp Others…Access / Process
External Provider
KRIs / ContentSources
Strategize & Prioritize
Plan & Execute
Report & Monitor
Model & Optimize
Strategy Management
Business Planning
Profitability Management
Business Consolidation
Corporate performance management – an iterative processIntegrated strategy, financial planning and profitability analysis
Strategize & Prioritize with Strong Communication
Fishbone diagrams highlightcritical inter-dependencies thatmay cause initiatives to fail
Strategize &
Prioritize
Strategy Maps allow for visualization of strategy in a manner that can be tailored to any end-user
Plan & Execute with the Right Tools for Business Users
Intuitive Web 2.0 interface with Intelligent Action Panes to guide activity and integration with MS Office
Familiar Excel Interface reduces time spent on training and operates from a single data repository
Plan &
Execute
CPM Consolidation GRC Process Controls
The Value of Holistic Financial Management Fast, Accurate Close
ERP Closing CockpitTransparency Compliance
Efficiency
The Value of Holistic Financial Management Intelligent Risk Management
Develop Risk Intelligent StrategyDevelop Plan for Executing Strategy
Analyze Performance and Course Correct as NeededRisk Related Data in a Performance Management Context
RISKMANAGEMENT
STRATEGYMANAGEMENT
Integrated Enterprise GRC and CPMBringing It All Together
INFORMATION
COMPLIANCEMANAGEMENT
PERFORMANCEMANAGEMENT
RISKINTELLIGENCE
SAP Leadership in the “Office of the CFO”
BusinessConsolidation
BusinessPlanning
Business Profitability
Management
NetWeaver Platform
“SAP is the first significant vendor to focus on the CFO in this way.”
Strategy Management
Compliance & Audit
AccessControl
RiskManagement
ProcessControl
Reliable CloseCSR
GRC
Financial Transactions & Services
Core Transactions AR, AP, etc
Standardization,Harmonization,Consolidation
(SHC)
SharedServices
Accounting, Fast Close
Tax
Treasury
Real Estate
Financial Value Chain
ERP
CPM
The Value of Holistic Financial Management Integrated Strategy, Planning, Risk, and Compliance
POST-MERGER SCENARIO
Initiatives are created for each of the 4 objectives
CFO communicates post-merger strategy with 4 key objectives: Cost Savings, Compliance, Performance Management and Risks
Controller plans integration of financial systems; closes, analyzes costs and profitability after month end consolidation and updated forecast
VP of Procurement negotiates best rate for purchasing parts
CRO sets up the risk profile in Risk Management, including Environmental, Global Trade andFinancial risks
Line Manager uses Access Controls to segregate duties with newly acquired employees.,
Calculate resource allocation, apply to plans and predict performance
CFO reviews scorecardto measure executionversus initial goals
I donI don’’t understand why we have decided to go with an 8 day close. We t understand why we have decided to go with an 8 day close. We werenweren’’t able to achieve this even before the acquisition, so how are wt able to achieve this even before the acquisition, so how are we going to do so now?e going to do so now?
Doug MerrittCorporate Officer and member of the Executive Council, head of Business User Development, SAP AG