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© 2013 Acxiom Corporation. All Rights Reserved. © 2013 Acxiom | Company Confidential
Rob Jenkins
May 2013
Discover Best Practices for Integrated Planning and Profitability
Integrating SAP Business Planning and Consolidation, SAP Profitability and Cost
Management and Salesforce.com to bring the power of activity-based costing and
pipeline analytics to the budgeting & forecasting cycle
© 2013 Acxiom Corporation. All Rights Reserved.
Agenda
• About Acxiom
• Project Objectives
• Existing Planning / Costing Environment / Process
• Project Challenges and Solution Design
• SAP Business Planning and Consolidation, SAP Profitability and Cost
Management & CRM Integration
• Plan Forward
• Q&A
2 ©2013 Acxiom | Company Confidential
© 2013 Acxiom Corporation. All Rights Reserved.
About Acxiom
• Acxiom is an enterprise data, analytics and software-as-a-service company
• We create and use data, analytics and software to strengthen connections between
people, business and their partners
• Better connections enable more effective marketing, greater customer value and
improved margins
• For over 40 years, we’ve been an innovator across every important source and use of
data
• We power 50 trillion transactions/year and 15,000 databases for 7,000 clients around
the world
3 ©2013 Acxiom | Company Confidential
Better Connections. Better Results.
© 2013 Acxiom Corporation. All Rights Reserved.
Project Objectives
4 ©2013 Acxiom | Company Confidential
• Implement application to facilitate Acxiom’s business planning and consolidation processes &
reporting of Actuals, Budget, Forecast
• Retire Hyperion Essbase
• Develop planning process linked to profitability application SAP Profitability and Cost Management
leveraging common Finance data warehouse and data management tools
• Automate “Revenue Walk” calculations using CRM source data
• Deploy Finance self-service application (IS coding no longer required) to reduce change
management cycle time
• Automate planning process for increased efficiency/speed (including workflow approvals and
collaboration)
• Increase what-if scenario capabilities to optimize planning for $1B budget
• Enhance reporting and analysis capabilities using standard desktop and BI tools already owned
(drillable, assumptions, SAP BusinessObjects business intelligence compatible)
© 2013 Acxiom Corporation. All Rights Reserved.
Various Flat File Loading
ABM Data Warehouse
Essbase
Key Data Sources • Process Data
(mainframe, servers) • Time Data (3 systems) • Org data (PeopleSoft
HR data)
• Cost Allocation
• Budgeting • Forecasting • Close out
PeopleSoft
Human Resources Asset
Management Accounts Payable
Purchasing Billing A/R General Ledger
Excel Plugin
Internal Portal
Management Reporting
Various Flat File Loading
Existing Environment / Process
5 ©2013 Acxiom | Company Confidential
Before the Project
© 2013 Acxiom Corporation. All Rights Reserved.
Solution Deployment – Business Line P&L
6 ©2013 Acxiom | Company Confidential
After SAP Profitability and Cost Management Deployed
Implemented SAP Profitability and Cost Management for Business Line Profitability in 30
days
Cycle time:
Decrease in model change cycle time (Finance self-service): 45 days to 1 day
Reduced model calculation time: 5 hours to 20 minutes
New capability of preliminary close reporting: day 10 to day 2
Accuracy:
Improved accuracy through more direct assignments and fewer allocations
Simple:
Increased transparency and analytics through activity cost pools and drillable data sets
Eliminated support of Essbase reporting environment and maintenance required
Resources:
Reduced FA inputs enabling more focus on analysis
Decreased IS support resulting in headcount re-deployment
© 2013 Acxiom Corporation. All Rights Reserved.
Solution Deployment – Customer P&L
7 ©2013 Acxiom | Company Confidential
After SAP Profitability and Cost Management Deployed
Implemented SAP Profitability and Cost Management for Customer Profitability in 90 days
• Initiated data sourcing and application setup prior to model configuration
• Model built with Actual, Budget, Forecast
• Model Development & Reporting lessons learned:
Model size:
Rolled up customer bill_to = 40K to 12K
Implemented pre-calc routines, console mgr., alt. hierarchies
IT infrastructure enhanced: larger server, maxed VM memory
Reporting: Lack of reporting warehouse/BI tool
Business Line P&L production process with common resources
Network Connectivity: Terminal server needed to address network latency
• SAP Profitability and Cost Management is effective multi-dimensional calculation engine but
requires relational DB environment for efficient reporting solution for model of this size
© 2013 Acxiom Corporation. All Rights Reserved.
SAP Business Planning & Consolidation Project Challenges
8 ©2013 Acxiom | Company Confidential
• Multi-dimensional planning
Revenue plan inclusive of a Backlog walk (Backlog, New Business, Churn, New Logo)
Expenses by Org, Customer, Market/Geo, Product, Account, Activity
Labor Expense – 6000 Associates
• Integration of SalesForce.com data
No PeopleSoft common key
No other Contracts system to manage Backlog / Bookings
• Integration of SAP Profitability and Cost Management Actuals for allocation of Budget
Expenses
• Level of Detail:
3K+ Cost Centers by 100+ Accounts by 250+ Activities by 12K+ Customers
© 2013 Acxiom Corporation. All Rights Reserved.
Allocated Costs (by Bus Line & Cust)
Solution Architecture & Data Flows Design
9 ©2013 Acxiom | Company Confidential
ETL Processing
Job Automation
Metadata Management
Source Data Layer
EIM Layer
SAP Performance Management Layer
Monthly GL Actuals HR Data
Sales Forecast
$ and Drivers
$, Pipeline Data, HR Data
Cost Allocations, Metadata
Actual, Budget, Forecast
Reporting
Driver Volumes
© 2013 Acxiom Corporation. All Rights Reserved.
CRM / SAP Business Planning and Consolidation Integration – Process Steps
10 ©2013 Acxiom | Company Confidential
Bu
dge
t /
Fore
cast
A
ctu
al
2) Calc Fixed Revenue from
Prior Year Closed
Contracts
1) Import & calc: A) fixed portion of
Renewals, B) Up-sell (Closed & Open*) and C) New logo (Closed &
Open*) Revenue
3) Financial Forecast of Revenue by
Client by Product
SF.com Excel Planning and Consolidation
Input Table
1) Import & calc: A) fixed portion of
Renewals, B) Up-sell (Closed only) and C)
New logo (Closed only) Revenue
4) Variable Revenue by Client = (3 –
sum of 1 & 2) SF.com
Planning and Consolidation Calculation
3) Actual Revenue by
Client by Product
Billing System
*Factored
© 2013 Acxiom Corporation. All Rights Reserved.
SAP Business Planning and Consolidation Solution Architecture
11 ©2013 Acxiom | Company Confidential
Revenue Planning Model Sales & Volume to drive revenue By Customer, Product, Entity and Account line (RevWalk) SalesForce.com integration
Expense Planning Plan Cost blocks such as HW, SW, 3rd Party, Depr., Telco, T&E. Cost Center level detail PCM integration for cost allocation to Business Lines
Labor Plan Salary, Fringe, HC by named employee
Management Reporting Automate reporting for P&L Capture and report on P&L lines by Clients and Products
Long-Range Planning High-level Strategic Scenario Analysis 3 year forward-looking P&L Modeling
Management
Reporting
(P&L)
Revenue Planning
Labor
Expense Planning
(OPEX by GL account)
Long Range
Planning
© 2013 Acxiom Corporation. All Rights Reserved.
Solution Successes
12 ©2013 Acxiom | Company Confidential
• Revenue Planning
Revenue with Backlog / Pipeline / New Business analytics
Set up for next step of Channel-based analytics
• Budget / Forecast Profitability analytics
Business Line Profitability & Customer profitability
Next Phase is Product BY Customer profitability
• Integration of Strategic Plan with Annual Budget
• Ease of reporting – interactive, drillable reporting templates
• Empowered Users
Several team members trained and participated in development of solution
Able to create their own set of reports
© 2013 Acxiom Corporation. All Rights Reserved.
Next Steps for Closed Loop Performance Management
13 ©2013 Acxiom | Company Confidential
• Reporting / Business Objects – Visualization, Mobile, Dashboards
• SAP Business Planning and Consolidation
Extend to Global with Local currency inputs
CapEx Planning
Depreciation/Amortization Calcs
Balance Sheet / Cash Flow statement
• SAP Profitability and Cost Management
Actuals for Channel
Integrate Product BY Customer Profitability
© 2013 Acxiom Corporation. All Rights Reserved.
Roadmap to an Integrated Solution with SAP Analytics
14 ©2013 Acxiom | Company Confidential
Un
ivers
e
Desig
n T
oo
l
SAP Profitability and Cost Management
Detailed Calculations and Allocations
Actual P&L
SAP Business Planning and Consolidation
Budgeting/Planning P&L, Cash Flow Balance Sheet Consolidation
Business Intelligence Universe
Executive Dashboards
Web Intelligence & Live Office
Crystal Reports
Senior Executives
Operations Mgmt
Financial Analysts
Ad hoc Reporting
Business Intelligence Analytics
Enterprise Performance Management
EPM: Planning-Profitability-BI Internal Systems
Operational Systems
PeopleSoft GL
Clarity
Other Time Track Sys
Finance DW
EPM Add-in
• Top-down planning and bottoms-up budgeting by Segment/Market
• Income Statement, Balance Sheet, Cash Flow planning
• Drillable analysis back to line item detail revenue and expense assumptions
• Easy-to-use browser-based BI reporting tools enabling graphs, charts, dashboards and mobile delivery – in addition to Excel
• Best practice data retrieval speed
• Network problems being addressed for global data access and delivery
Value Points
© 2013 Acxiom Corporation. All Rights Reserved. © 2013 Acxiom. All Rights Reserved.
Any questions?
Thank you!