Introducing SAP Enterprise Performance

Management (EPM) OnDemand

The revolution of performance management
David Williams and Bryan Katis, SAP
September 19, 2012
Legal disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without
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if such damages were caused by SAPs willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results
to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-
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purchasing decisions.

2012 SAP AG. All rights reserved. 2

Is Finance making progress to becoming a better partner
to the business?

Where is your finance organization today on the road

to becoming a more highly valued partner to the
business?

Where's the road?

12% 4% Recently started and hopeful

22%
Making some progress but facing
obstacles
30% Gaining traction and overcoming
some obstacles
32% Rolling along with confidence and
learning more about this journey

Source: APQC. 2012

2012 SAP AG. All rights reserved. 3

Less than a quarter of Finances time is being spent on
providing value-added analysis to the business!

Financial Analyst time

23%
Collecting and validating
data
47% Administering the
process
Providing value-added
analysis
30%

Source: APQC. 2012

2012 SAP AG. All rights reserved. 4

Performance management projects highest priority on
CFOs initiatives list for business analytics

Components to be updated in 2012 Components to be updated in 2013

Performance measurement, Planning, budgeting, and
scorecard, and dashboard forecasting
Planning, budgeting, and Performance measurement,
forecasting scorecard, and dashboard
Financial consolidation and Customer and product
reporting profitability
Customer and product Financial consolidation and
profitability reporting

Data warehouse Data warehouse

Predicitive modeling Predicitive modeling

Statistical analysis Statistical analysis

0% 20% 40% 60% 80% 0% 20% 40% 60% 80%

Percentage of respondents Percentage of respondents

Source: Gartner. John Van Decker. CFOs See the Importance of Business Analytics Improvement, Gartner Study Finds. June 2012.

2012 SAP AG. All rights reserved. 5

Most popular targets for financial process improvement

0% 20% 40% 60% 80% 100%

Plan, budget,
forecast/analyze, re-plan
Close/consolidate/report

General accounting (any

sub-process)
AP transaction mgmt.
(any sub-process)
Working capital mgmt.

Source: APQC Survey Results. APQC. 2012

2012 SAP AG. All rights reserved. 6

Growing demand for cloud apps

We believe that the

right application
strategy for most organizations is a
hybrid (configured) approach that can
accommodate integrated suites, departmental point
solutions and ad hoc custom applications, with a
mix of on-premises and cloud
deployment. Source: Gartner. Neil Chandler.
Applying Gartner's Pace Layer Model to Business
Analytics. December 2011
Technology platforms, like mobile computing
and the cloud, are secondary in the mind of the
CFO (see Figure 6). We expect this to change in the
2013 study, since the inquiries we received in the first
six months of 2012 from end-user clients show that
these are growing areas of investigation
and potential investment in the finance
organization. Source: Gartner. John E. Van
Decker. CFOs see business analytics as important,
Gartner Study Finds. June 2012

2012 SAP AG. All rights reserved. 7

SAP Enterprise Performance Management OnDemand
The revolution of performance management

Built for business In the cloud Anytime, anywhere

Purpose-built packaged Extreme performance Mobile-first and Microsoft

apps based on best- delivered through the SAP Office ready
practice HANA Application Cloud

2012 SAP AG. All rights reserved. 8

Built for business
Purpose-built packaged apps based on best-practice

Get up and running fast with

best practice-based,
preconfigured apps that solve
specific business problems

Break-down barriers to user

adoption with mobile-ready
apps that look and feel like
consumer apps and run on any
device

Improve organizational agility

with real-time variance
analysis and the ability to
iterate and adapt on the fly

2012 SAP AG. All rights reserved. 9

In the cloud
Extreme performance delivered through the SAP HANA Application Cloud

Plan better and act faster with

instant insight and real-time
planning capabilities powered Real-time
P&L
Analysis Future
by the SAP HANA Application
Cloud Expense
Insight

Lower your cost of ownership Sales and

SAP Operations
leveraging existing on premise solutions
Planning

investments combined with for

Capital
native cloud-based apps EPM 10.0 Project
Planning Future

Reduce upfront costs with

software as a service based on
subscription pricing

2012 SAP AG. All rights reserved. 10

Anytime, anywhere
Mobile-first and Microsoft Office ready

Increase engagement with

simplified, intuitive mobile
interfaces for business users
and executives as well as
Microsoft Office (Excel) for
Finance

Tap into the information you

need wherever whenever

Analyze, iterate and adapt on

device or on the desktop

2012 SAP AG. All rights reserved. 11

SAP EPM OnDemand
First three applications
Expense Insight
Empowers department
managers to understand
details of anything charged
to their cost center and
dispute/resolve miscoded,
incorrect, or duplicate
expenses
2012 SAP AG. All rights reserved.
Capital Project
Planning
Packaged solution for
establishing the complete
picture of the financial
consequences of capital
investment projects and
optimizing the use of capital
Real-time P&L
Analysis
Delivers P&L reporting at
any level of detail by
allocating costs based on
consumption of resources
13
Right data at right time increases organizational agility

Accelerating the speed of intelligence, as Ms. Hughes

puts it, is the finance functions fundamental challenge

The benefit of being able to push data quickly is if you get the
right data and the right collection of data to the decision maker
more rapidly, youre going to speed up decisions that change
that outcome
Hazel Hughes, SVP of finance and business
control for the Education Group at Houghton
Mifflin Harcourt, in Accelerating the Speed of
Intelligence for Fast and Flexible Forecasting.
(CFO Research Services, 2011).

Source: CFO Research Services, 2011

2012 SAP AG. All rights reserved. 14

Engaging beyond Finance for better results and greater
accountability

The new devices that are coming on

the market, like the tablets and
iPhones, will enable us to build a
system in the future that will more
easily take advantage of the input
from every employee.
Anders Pehrsson, Vice President and Group
Controller, Atlas Copco This should not be only the finance
department; people sometimes
believe that budgets or rolling
forecasts are only done by finance. It
should be done by [all] the people
involved.
Troy Parwata, Finance Director of Tigaraksa Satria

Source: CFO Research Services, 2011

2012 SAP AG. All rights reserved. 15

Demo
John Hack
Peter logs
on to
Expense
Insight.
First, he
reviews
travel
expenses.
Peter
selects All
Expense
Types.
Peter
selects
the Travel
Sub-Type..
The information is
filtered to display all
types of travel
expenses.

Peter has three

options now: He can
select Back to go back
to the overall total
expenses for Travel;

He can select the

particular travel
expense Sub-Type he
would like to review,
for example Business
Travel;

He can close the All

Expense Types pop-up
to see the breakdown
of travel expenses (by
travel Sub-Type).
Here, Peter has closed
the All Expense Types
pop-up. He can see the
breakdown of all travel
expenses
Now Peter decides to
review Expense Items
so he selects the
Expense Items option
from the menu.
Each expense item is
displayed with some
details. Peter reviews
the expense item and
he checks the total. He
can sort (for example
by type, date, cost
center).

He can search for

information (for
example Travel Emit
Smith with show
details of all travel
expenses for that
person).

Peter selects the 3rd

item (Office Supplies)
because it has the
exact same details as
the 4th item.
All details for the
expense item Peter
selected are displayed.
Peter checks the
details and realizes
that they are the exact
same for both Office
Supplies expenses.
Peter decides to ask
his assistant to
investigate this.
Peter adds a comment
explaining his concern
to his assistant,
Caroline.
Peter is curious about
the expense item so he
selects Additional
Information to display
the details of the office
supplies expense line
item.
Peter goes back to
Expense Items by
selecting Back twice.

He selects the travel

item for Emit Smith.
He knows Emit moved
department since
January so there is the
potential of wrong
expenses. Peter checks
Emits cost center and
he knows it is not
correct.
Peter adds a comment
for Caroline
Peter logs off.
Caroline logs on to
Expense Insight.
Caroline views
Expense items (her
Home Page) and
notices comments for
Travel line item and
Office Supplies line
item (blue icon).
Caroline selects the
Travel Item for Emit
Smith.
Caroline sees Peter's
comment.
Caroline responds 'Hi
Peter, This is definitely
a wrong expense. I will
start dispute as it
needs to be fixed
immediately'
Caroline selects the
Dispute icon.
Caroline selects the
expense dispute
reason as 'Not My
Expense'.
Caroline notes that the
status of the dispute is
Not Resolved (which is
accurate).

Caroline adds a
comment and selects
Send Dispute. She
sends the dispute to
Fred. She expects Fred
to check the issue and
resolve it. Expense
Insight sends an email
to Fred about the
dispute.
Caroline logs off.
Fred logs on to
Expense Insight
Fred's homepage is set
as the Expense
Disputes page. He
notices the dispute
submitted by Caroline
and selects it.
Fred sees that the
dispute is not resolved
and he reads the
comment from
Caroline.
Fred changes the
dispute to resolved
(after he moves Emit
to the correct cost
center).
The dispute details
show that it was
resolved by Fred on
April 30, 2012.
Fred logs off.
Additional Resources

Website:
http://www.sap.com/solutions/cloud/enterprise-
performance-management-on-
demand/highlights/index.epx

SAP Analytics TV (EPM Featured Playlist):

http://www.youtube.com/playlist?list=PLB3220A8798
56DD4E&feature=plcp

Blogs:

CFO Knowledge:
http://cfoknowledge.wordpress.com/

The Decision Factor:

http://www.the-decisionfactor.com/home/

Analytics from SAP:

http://blogs.sap.com/analytics/

2012 SAP AG. All rights reserved. 49

Thank You!