delivering real-time business value for professional services

Delivering Real-Time Business Value

for Professional Services SAP Business Suite Powered by SAP HANA July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

To grow profitably, professional services firms must

align every aspect of their operations to deliver

consistent quality and high-value services to their

clients

Increase client satisfaction and retention

Have the right people on the right projects at the right time

Deliver quality services globally with a repeatable process

The real-time opportunity


Innovate and

optimize solutions

tailored for your

customers

Instant analysis of customer behavior and market

trends

Tailored solutions for customers based on real-time

detailed data

Complete customer insight in real time

Deliver efficient

and profitable

projects and

services

Early insight into deviations and risks, enabling timely

corrective measures and improved resource

productivity

Real-time analysis and simulation functionalities for

headcount, organizational management, and time

management

Market

differentiation

through superior

customer service

Real-time monitoring of service operations, service

levels, and field resource utilization

Better customer service with faster routing of high-

volume inbound communications to the best resource

Deliver exceptional client value profitably Align business operations with customer needs


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for professional services SAP solutions that deliver client value and grow revenue

Talent Supply Chain

Talent Management

Core Human Resources and Payroll

Workforce Planning and Analytics

Business Development and Sales

Segmentation and Campaign Management

Client and Opportunity Management

Bid and Proposal Management

Project-Based and Managed Services

Delivery

Engagement Management (Time and

Expense, Controlling, and Billing)

Project Management

Resource Management

Contract Management (Time and Expense,

Controlling, and Services Centric Billing)

Finance

Financial Performance Management

Accounting and

Financial Close

Treasury and Financial

Risk Management Travel Management

Enterprise Risk and Compliance

Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and

Order Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

IT Strategy and

Governance

Contact Center

Customer Service and Support Management

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Develop- ment and Integration


Industry value map for professional services Real-time value for key end-to-end processes

Talent Supply Chain

Talent Management

Core Human Resources and Payroll

Workforce Planning and Analytics

Business Development and Sales

Segmentation and Campaign Management

Client and Opportunity Management

Bid and Proposal Management

Project-Based and Managed Services

Delivery

Engagement Management (Time and

Expense, Controlling, and Billing)

Project Management

Resource Management

Contract Management (Time and Expense,

Controlling, and Services Centric Billing)

Finance

Financial Performance Management

Accounting and

Financial Close

Treasury and Financial

Risk Management Travel Management

Enterprise Risk and Compliance

Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and

Order Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

IT Strategy and

Governance

Contact Center

Customer Service and Support Management

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Develop- ment and Integration

Highest real-time

business value for

professional services

5

3

4

1

2 6


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Engagement management (1/2) Business value for portfolio and project management

Time consuming analysis and

progress monitoring of projects

Poor resource productivity and

project profitability

Impossible to monitor all aspects of a

project due to high volume of data and

detached analytics

Project progress monitoring is not

sufficient or holistic enough to support

decision processes

Deviations in costs, time, resources,

or quality are detected too late in the

process

Decisions to mitigate risks and

opportunity costs are taken too late

Improved run time of aggregated

project monitoring reports

New project line item reporting

delivering faster insights

Real-time access to large volumes of

data

On-the-fly analysis, calculation, and

decision making

Early insight into deviations and risks,

enabling timely corrective measures

Increase user productivity and

end-to-end process

efficiency by

10% Improve

Reduce

transparency of

project-related

resources by

20%

project failure

With SAP Business Suite on SAP HANA


Today


Engagement management (2/2) Business value for time and attendance management


Responses to ad hoc inquiries from

management about trends of high-

volume payroll information causes

significant costs to HR IT.

Business users have a very limited

ability to analyze payroll results.

Addressing employee inquiries about payroll is time-consuming and expensive, and HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services.

Free HR IT resources focus on the

execution of organizational strategic

tasks

Leverage thresholds as a steering

mechanism to optimize business

performance

Simplify payroll data analysis with optimized representation of data

Slash time needed to access and analyze critical payroll information with SAP HANA-based high-speed read access

Increase employee productivity and

satisfaction with faster response

times to employees

Increase productivity of users

responsible for time

management by

5% Improve

Reduce

employee

satisfaction

overall costs of

time processing


Today


Financial performance management (1/2) Business value for financial and managerial reporting

A lot of data; decision-relevant

information not readily available

Data analysis not supported or

automated

Long-running batch jobs/reports

Time-intensive data analysis

Large number of time-consuming,

and non-value-added processes

required to access and provide

accurate, up-to-date information

Real-time availability of key

operational and financial reports

Increased end-user satisfaction

(accurate, detailed, visualized, timely,

and actionable information)

Acceleration of key critical-path

processes and reports

Instant response time on most data

analysis queries

Elimination of workarounds and data

latencies

End user data analysis through self-

service means

Improve service level

performance

Reduce

Minimize

month-end

closing time by

50%

operating costs



Today


Financial performance management (2/2) Business value for planning, budgeting, and forecasting


Planning performance limited to

OLAP, staged cubes for transactional

and master data

Data load performance is driven by

the amount of data extracted from

SAP Business Suite

Reporting, loading, and retraction

performance limits planning iterations

Drilldown within OLAP cube, and

drill-through to SAP Business Suite

and OLTP data within standard times

Seamless replication of master and

transactional data from SAP

Business Suite

Availability of more granular data to

support planning

Big Data challenge is negated, and

allows for faster extract and DSO

activation times

Iterative planning and real-time

simulation are supported through

improved performance

Improved performance for drilldown

(expand) and consolidation

(collapse)

Fast drill-through and live view of

transactional data in SAP Business

Suite

Improve service-level

performance

Reduce

Minimize

cycle times and

manual effort

operating costs


Today


Contact center Business value for contact management with interaction center


To successfully resolve customer

issues, companies need to be able to

quickly locate the right experts or

resources within the organization,

whether those experts work inside

the contact center or elsewhere

Managers and supervisors lack

actionable reporting and visibility into

the workload of their teams.

The high volume of customer records

and interactions results in increased

search times and greater difficulty

locating specific customer records.

Decrease average handling

time by

4%

Improve

Reduce

service-level

agreement

compliance

service cost

With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/ escalate issues to the most suitable employee roles.

A new interactive work distribution

dashboard provides supervisors with

actionable insights into the workload

of their teams and employees.

Searches in the interaction center are

significantly faster, including account

searches, interaction history, and the

customer fact sheet.


Today


Client and opportunity management Business value for sales

Difficult to identify profitable

customers within the customer pool

Inability to identify gaps in sales

pipeline, leading to missed targets

Difficult to extract actionable

information from the enterprise-wide

customer data to maximize the chance

of a sale

Minimal insight into buying preferences

of customers in social data context

Easy identification of profitable

customers with account intelligence

analytics

Faster transaction search capabilities

Complete transparency into sales

pipeline based on real-time

information with unlimited drill-down

capabilities

Real-time analysis of Big Data to

better understand buying patterns

Real-time access and assembly of all

data including social/sales data

Increase profitability by

0.5%

Increase

Improve

In-pipeline target

achievement

offer win rate by

10%



Today


Workforce planning and analytics Business value for HR transactional analytics

* Visualizations will be delivered as part of HR renewal.


Translation of organizational strategy

into HR metrics requires significant

effort or special expertise

Decisions are often based on

hunches

Difficult to zero-in on underlying

transactions from high-level key

performance indicators

Time consuming data loads in

traditional reporting tools

Integrated and personalized cockpits

that provide insight into metrics that

matter most*

Leverage thresholds as a steering

mechanism to optimize business

performance*

Powerful predefined workforce and

time management-related KPIs for

managers with the ability to navigate

into details

Embedded analytics inside business

transactions

Prebuilt virtual data models for

real-time transactional analytics

Simplified architecture

Increase revenue per employee by

5%

Optimize

Reduce

your business with

reliable real-time

HR data

time and costs of

operational reporting

by

20%


Today


Accounting and financial close Business value for entity close

Reduce time to close the

entities’ books by

50%

Enhance

cost of finance

compliance and

accuracy


Long-running processes

Time-intensive reconciliations

Limited time for analysis

Inefficiencies as a result of manual

processes and low automation

Lack of financial excellence

resulting in higher cost of equity

at the capital markets

Difficulties in supporting parallel financial reporting standards on a global basis and in simulation of scenarios

More time for analysis, less overtime,

and earlier publishing of financial

results through faster

period-end processes and better

reconciliations

Increased efficiency through smarter

reconciliations and reporting,

reducing operating costs and

improving stakeholder satisfaction

Real-time analytics down to the

lowest level of detail – delivering

quality at source, transparency, and

process efficiencies

Reduce


Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your

line-of-business and IT experts.

As starting point, we recommend a performance

and usage analysis of your current software

system.


Customer case

U.S. professional

services firm

• SAP HANA applications and SAP

Business Suite on SAP HANA

• Automated reporting

• Engagement profitability optimization

• Customer intelligence

• Spend analysis

• Audit automation

• Forensic accounting

Annual

benefit

$13M-$26M

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

Contact Information:

Jonathan Rhodes

Solution Manager

IBU Professional Services

[email protected]

mailto:[email protected]

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Appendix with detailed customer cases


SAP HANA Use Cases

Feasibility

Bu

sin

es

s v

alu

e

Lo

we

r H

igh

er

Low High

ERP operational reporting

Real-time engagement

reporting

Engagement profitability

($1.3M-$2.6M)

Customer segmentation

($0.7M-$1.4M)

Customer intelligence

($0.8M-$1.2M)

Cash and liquidity

management

Financial reporting

Workforce and talent

analytics

Spend analysis

($2.5M-$5.0M)

Expense analysis

Partner contribution

analysis ($3.6M-$7.2M) Client audit automation

($2.5M-$5.1M)

Forensic accounting

($1.5M-$3.1M)

Customer case: U.S. professional services Summary validated scenarios

SAP Business

Suite on

SAP HANA

SAP HANA

applications

SAP HANA

Platform

Legend


Feasibility

Bu

sin

ess v

alu

e

Lo

w

Hig

h

Low High

Customer case: U.S. professional services Summary validated scenarios

Engagement profitability

($1.3M-$2.6M)

Customer segmentation

($0.7M-$1.4M)

Customer intelligence

($0.8M-$1.2M)

Spend analysis

($2.5M-$5.0M)

Partner contribution

analysis ($3.6M-$7.2M) Client audit automation

($2.5M-$5.1M)

Forensic accounting

($1.5M-$3.1M)

SAP Business

Suite on

SAP HANA

SAP HANA

applications

SAP HANA

Platform

Legend

1 Revenue/ margin enhancement

Partner contribution: Increased transparency

drives profit

Engagement profitability: Analysis of the drivers

of profitability across the firm as a means to

improve its operating profit margin

Customer intelligence/segmentation: Improved

cross-sell and up-sell opportunities,

and improved overall sales pipeline and

opportunity management

2 Cost reduction

Spend analysis: Improved active spend

management and prevention of unapproved spend

Elimination of data marts and ETL processes:

FTE reduction

3 New client services

Client audit automation/ forensic accounting:

Additional revenue from new service lines

Other functions – To be discussed in future

discovery workshops

Annual revenue: US$11.3 billion

SAP HANA use cases mapped to industry value map end-to-end solutions


Customer case: European IT service provider/

professional services Summary validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Lo

w

Hig

h

Low High

Improve cash flow

by reducing DSO

(0.21% of revenue)

Accelerated project

margin analysis

(0.15% of revenue)

SAP Business

Suite on

SAP HANA

SAP HANA

applications

SAP HANA

platform

SAP HANA platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA

Scenario

(business value)

Phase ‒ deployment road map

1 Short term

Accelerated project margin analysis:

Identify deviations from targets and areas to

increase the operating margin

Improve cash flow by reducing DSO:

Leverage accelerated and real-time analysis on

DSO and cash flows

2 Medium term

3 In evaluation


discovery workshops

Legend



Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Innovation scope

SAP HANA products (HPAs, apps)

E2E solution

Professional services - engagement

management (time and expense, controlling

and billing)

Value potential 4

Feasibility 4

European IT service provider

– accelerated project margin analysis Professional services

Business context and goals

This firm has a lower margin than its competitors. The group has the objective to improve its operating

margin rate to around 7.5 % of revenue compared to 6.6 % in 2012. To meet that challenges it launched

two strategic initiatives: (1) Improve operational efficiency and reduce costs to achieve better margin; (2)

Improve offering portfolio and get larger deals.

Business challenges

This service provider is using its business intelligence tool based on SAP NetWeaver BW to analyze project margin and faces the following issues: (1) Lengthy reports, especially for consolidated views (up to 20 minutes wait time); (2) Slow drill-downs, especially for profitability reporting, which is critical; (3) Users in need of more flexibility and agility for report creation; (4) System slowdowns for countries in different time zones than Europe when the BI software is updated; (5) High IT effort to optimize and fine-tune performance (for example, create other reports).

Process innovations

Real time and accelerated reporting especially for critical reports : Profitability analysis, finance (closing, payroll) Resource management (plan vs. actual utilization, consultant availability) System integration monthly review Mobile BI for management: enable analysis and decision making anytime, anywhere

Contribution of SAP HANA Value drivers/KPIs Acceleration of reports Ability to drill down to find causes Near real-time analysis to improve decision making Create an IT scalable platform

Operating margin

Low High

1 5

Low High

1 5




Innovation scope


E2E solution

Professional services - treasury and financial

risk management

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5


This firm has a lower margin than its competitors. The group has the objective to improve its operating

margin rate to around 7.5 % of revenue compared to 6.6% in 2012. To meet that challenge it launched

two strategic initiatives: (1) Improve operational efficiency and reduce costs to achieve better margin.

(2) Improve offering portfolio and get larger deals

Business challenges

It is using its business intelligence tool based on SAP NetWeaver BW to analyze project margin and is facing the following issues : Lengthy reports especially for consolidated views (up to 20 minutes wait time) Slow drill-downs, especially for profitability reporting ,which is critical Users in need of more flexibility and agility for reports creation System slowdowns for countries in different time zones than Europe when the BI software is updated High IT effort to optimize and fine-tune performance (for example, create other reports)

Process innovations

Real-time and accelerated reporting especially for critical reports: Profitability analysis Finance (closing, payroll) Resource management (plan vs. actual utilization, consultant availability) System integration monthly review Mobile BI for management: enable analysis and decision making anytime, anywhere

Contribution of SAP HANA Value drivers/KPIs Acceleration of reports Ability to drill down to find causes Near real-time analysis to improve decision making Create an IT scalable platform

DSO

Technology services

– free cash flow by reducing DSO Professional services


Customer case: IT service provider in APJ/


Feasibility

Bu

sin

ess v

alu

e

Lo

w

Hig

h

Low High

Development of new

service called rapid

migration services

(0.43% of revenue)

SAP HANA + BI for

optimizing HR and

CRM analytics

(0.15% of revenue)

SAP Business

Suite on

SAP HANA

SAP HANA

Applications

SAP HANA

platform


Scenario

(business value)

Phase ‒ deployment road map

1 Short term

New rapid migration services: Services contain

SAP NetWeaver BW3.x upgrade, RDB migration

to SAP HANA, and new application to improve

usability and higher insight enabled by BI or

predictive analysis

Talent supply chain: SAP HANA/BI use cases

around HR (recruitment, resource management)

2 Medium term

3 In evaluation


discovery workshops

Legend





Innovation scope

SAP HANA platform (customer specific)

E2E solution

Professional services - talent management

Value potential 4

Feasibility 4

Low High

1 5

Low High

1 5

IT service provider

– SAP HANA and BI for optimizing HR and CRM analytics Professional services


Need for building an enterprise-wide BI platform to significantly improve operational and strategic

reporting across hire-to-retire and opportunity-to-remittance processes

Business challenges

Hire-to-retire: High latency for operational reporting (for example, recruitment); absence of predictive and what-if analytics in PA, compensation and payroll; real-time reporting needed in employee lifecycle management (ELCM); Weblog and keyword search required for skills management; standard HR reporting (leave, payroll, and so on) is not available. Opportunity-to-remittance: Demand supply matching cost allocations

Process innovations

Enable real-time operational reporting for HCM; adopt solutions for predictive analytics; enable real-time reporting for ELCM process; adopt advanced search tools for keyword and log searches; unlock standard reporting for hire-to-retire; single reporting source across the enterprise; single BI platform across the enterprise; enterprise-wide real-time operational reporting

Contribution of SAP HANA

Fast reporting access on all SAP NetWeaver BW data; leverage real-time replication to get up-to-the-minute insight; planning performs calculations in-memory; loading performance pushed into SAP HANA natively; no indexes, statistics, or DBA maintenance required; flexibly remodel cubes quickly and reduce materialized layers

Value drivers/KPIs

Hire-to-retire: Reduce end-to-end hiring cycle time; reduce bench buffer; improve recruitment team productivity; improve compensation team productivity; improve leave-and-payroll team productivity; reduce data storage and maintenance cost Opportunity-to-remittance: Gain additional revenue from improvement in lead conversion ratio; reduce marketing spend; improve productivity of cost allocation team




Innovation scope


E2E solution

Professional services - SAP HANA platform

Value potential 4

Feasibility 4

Low High

1 5

Low High

1 5

IT services provider – development of SAP HANA-related

rapid migration services Professional services


Renovation of invested SAP NetWeaver BW and SAP ERP software system (customer's view);

addition of attractive new service line (company view)

Business challenges

This firm has much experience and expertise, especially in SAP NetWeaver BW. Target is to get

more utilization and to enrich their service portfolio for upsell and cross sell purposes.

Process innovations

This firm is under post-merger integration. It plans to combine two accounting systems and

business performance analysis into a new software system based on SAP NetWeaver BW. This

internal project will be done as a trial rapid migration. The company will then take the lessons

learned from this internal experience and use the knowledge in the external selling process.


The company will try to adopt SAP Business Suite on SAP HANA and other SAP software to

improve business performance analysis. As a next step, it will adapt its own industry-specific

solution for the automotive industry or for mega-sized trading companies to realize systems with

no boundary between OLTP and OLAP.

Value drivers/KPIs

Increase revenue by obtaining new service contracts from existing customers or by gaining new

customers


Customer case: service provider in APJ/


Feasibility

Bu

sin

ess V

alu

e

Lo

w

Hig

h

Low High

Resource planning

(€2.9 million)

Billing

management

(€2.69 million)

Sales reporting

(€3.12 million)

Legend

SAP Business

Suite on

SAP HANA

SAP HANA

applications

SAP HANA

platform

Phase - deployment road map Annual revenue: €750 million

1 Short term

Resource planning: Improve remote use of

internal resources (particularly new-through-

acquisition resources); improve use of local internal

resources and reduce domestic and international

travel

Billing management: Automate billing, prompts for

hours near limits, blocks on charging to large jobs,

workflow on extensions, automated dunning on

overdue accounts; reduce domestic and international

travel by using local resources

Sales reporting: Reporting on wins and losses

by job type and industry)

2 Medium term

3 In evaluation


discovery workshops


Scenario

(business value)





Service provider in APJ

– workforce planning and analytics Professional services

Innovation scope


E2E solution


Value potential 4

Feasibility 4

Low High

1 5

Low High

1 5


Improve remote use of internal resources (particularly new-through-acquisition resources), improve

use of local internal resources and reduce domestic and international travel

Business challenges

Visibility and sharing of internal resources between operating centers

Process innovations

Provide visibility into resource availability at time of job setup ‒ in operating center, in region, and

globally ‒ by skill; reduce use of subcontractor resources when internal resources are available.


Transparency in resource utilization across regions and business units in real time

Value drivers/KPIs

Global visibility of resource and skill availability

Hours and salaries saved




Service provider in APJ

– client and opportunity management Professional services

Innovation scope


E2E solution


Value potential 4

Feasibility 4

Low High

1 5

Low High

1 5


Job managers are tied up with routine jobs instead of focusing on margin and quality improvement

Business challenges

Time-consuming and partly manual process for completion of billing and job extensions by job

managers

Process innovations

Automate billing, prompts for hours near limits, blocks on charging to large jobs, workflow on

extensions, dunning on overdue accounts


Acceleration of reports

Value drivers/KPIs

Reduce job manager administration time for billing and extensions

Hours and salaries saved

delivering real-time business value for professional services

Technology

service management

infrastructure management

organizational management

proposal management

campaign management

opportunity management

sap ag

business value