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Case Study: How Hunt Consolidated Deployed SAP Business Planning and Consolidation on SAP HANA to Reduce the Time It Takes to Perform Planning and Forecasting ActivitiesJohn GoochHunt Consolidated

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In This Session

• Learn why Hunt decided to implement BPC on HANA• Find out how Hunt implemented BPC with particular focus on: Reducing planning/forecast process times in several key areas Performing more detailed comparative reporting at various

levels Reducing reliance on Excel for data capture, financial modeling,

consolidation, and reporting Achieved by moving into a multi-dimensional database

environment Providing an enterprise-wide strategic solution

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About Hunt

• The Hunt Family of companies is one of the largest privately held companies in the US

• Hunt Oil Company, founded in 1934, is one of the largest independent oil and gas companies, with operations domestically and around the world

• Organizationally, Hunt consists of a parent holding company with business units responsible for energy, real estate, investments, agribusiness, and infrastructure

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What We’ll Cover

• Selecting BPC on HANA and establishing our phased approach• Improving planning and reporting processes across Hunt

Business Units• Lessons learned• Planning for the future: The roadmap and strategic direction • Wrap-up

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• “Planning” was a cumbersome process Several Excel workbooks, some with embedded BEx queries Use of BI-IP largely as “data capture” Very little real planning logic or functionality

Hunt Oil Company (HOC) did things differently than the other IBUs

• Previous landscape ERP: SAP ECC 6.0 SAP NetWeaver® Business Warehouse 7.01 on Oracle SEM-BCS 6.0 for Legal Consolidations BI Integrated Planning (BI-IP) for Plan Input Templates

• BW group support required for most aspects of planning process

Prior to BPC

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• Hunt Oil Company was the primary driver to move planning forward at Hunt Had recently instituted a renewed focus on planning with a

program-based capital expenditure (CAPEX) planning process Planning Director had previous experience with Hyperion at

another organization and wanted that same capability at Hunt• Hunt Consolidated, Inc. (HCI) needed a better view of planning

and capital needs across all business units• This drove the strategy to implement BPC across the entire

organization

The Need to Enhance the Planning Process

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• Formally evaluated Hyperion vs. BPC in a tool selection exercise Because Hunt was already an SAP customer for its ERP and

data warehouse needs, the BW group kept an eye on the development of the BPC product over the years

Performed a formal comparison, making the decision to select BPC Single-vendor strategy from a support perspective Architecture more compatible with existing components,

thus leveraging in-house skill sets No compelling feature of Hyperion that would negate the

above two benefits

Selection Process

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• Decided to implement BPC 10 version for SAP NetWeaver®, which required BW 7.3

• Strategically decided to stand up new environment for 7.3 to move forward with BPC implementation without waiting for complete BW upgrade

• New BW environment prompted Oracle DB vs. HANA decision• Entered HANA ramp-up program• Selected a strategic implementation partner

Deciding to Use HANA and BW 7.3

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• Goal was to implement BPC first for Hunt Oil Company in time to produce the 2013 annual plan The requirements were most well-understood and also most

complex Learnings from Phase 1 would be leveraged in Phase 2 Started in early 2012 with go-live by September 2012

• Project team composed of IBU, Hunt Consolidated, BW, and consultant resources

• Steering Committee provides executive oversight of the project Consists of executives from each of the business units and HCI Helped drive larger “key decisions” for the project

Project Approach

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Project Team

STEERING COMMITTEE

Executives from each IBU

STEERING COMMITTEE

Executives from each IBU

Consultant Sources1 Project Manager1 Design Consultant3 - 4 App Consultants

Consultant Sources1 Project Manager1 Design Consultant3 - 4 App Consultants

Energy Horizons1 Acct/Finance1 Project Planner

Energy Horizons1 Acct/Finance1 Project Planner

Realty1 Acct/Finance2 Invest Planners

Realty1 Acct/Finance2 Invest Planners

HCI – Planning & Analytics (Long-Term)2 dedicated analysts

HCI – Planning & Analytics (Long-Term)2 dedicated analysts

HCI – Financial Admin. (Short-Term)2 - 3 dedicated analysts

HCI – Financial Admin. (Short-Term)2 - 3 dedicated analysts

Business Warehouse1 Project Manager1 Dedicated BWSupport from 3 other resources

Business Warehouse1 Project Manager1 Dedicated BWSupport from 3 other resources

Mexico1 Acct/FinanceMexico1 Acct/Finance

Power/Energy Enterprises2 Acct/Finance

Power/Energy Enterprises2 Acct/Finance

Investments2 Acct/FinanceInvestments2 Acct/Finance

Financial Reporting1 Asst. Controller3 Acct/Finance

Financial Reporting1 Asst. Controller3 Acct/Finance

Oil Company1 Planning Director2 Acct/Finance/Ops dedicated analysts

Oil Company1 Planning Director2 Acct/Finance/Ops dedicated analysts

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1A- HOC Planning and Management

Reporting

1B – HCI Short-term

Planning and Management

Reporting

1C – HCI Long-term Planning

1D –BOBJ

Strategy and

Proof

23 Weeks 20 Weeks 16 Weeks 12 Weeks

Initial SAP BPC on HANA Project

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What We’ll Cover



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SAP, BW, and BPC Landscape

BPC Models

SAP ECC 6.0

Oracle

Dev, QA, Sandboxes

SAP BW 7.01

Oracle

Dev, QA, Sandboxes

Dev, QA, Sandboxes

SAP BW 7.3/BPC NetWeaver Version 10

HANA

ETLInitialETL

Final ETL

Staging

Transformations

BPC Data Mgr.

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Architecture of Staging Data from BI to BPC

FINANCE

Transform as much using BW ETL / routines

BFIGL_C02

0GL_ACCOUNT (CHAR 10, ALPHA)0COMP_CODE (CHAR 4, no conv)0COSTCENTER (CHAR 10, ALPHA)0FISCPER (NUMC 7, PERI7)

0GL_ACCOUNT (CHAR 10, ALPHA)0COMP_CODE (CHAR 4, no conv)0COSTCENTER (CHAR 10, ALPHA)0FISCPER (NUMC 7, PERI7)

CFINANCE

BI Reporting Objects BI Staging Objects BPC Models

CACCOUNT (CHAR 32)CCOMPANY (CHAR 32)CCOSTCTR (CHAR 32)CTIME (CHAR 32)

CACCOUNT (CHAR 32)CCOMPANY (CHAR 32)CCOSTCTR (CHAR 32)CTIME (CHAR 32)

ACCOUNT (CHAR 32)COMPANY (CHAR 32)COSTCENTER (CHAR 32)TIME (CHAR 32)

ACCOUNT (CHAR 32)COMPANY (CHAR 32)COSTCENTER (CHAR 32)TIME (CHAR 32)

Basic BPC Data Manager mapping

only

In Staging, make the Type, Length, Conv. Routine align with expected BPC targets.

Keeping as separate objects ensures changes don’t negatively impact BI reporting objects!

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Current BPC Landscape

FINANCE HCI

FINANCE HEQ

FINANCE HMX FINANCE

HOCFINANCE

HRIFINANCE

HEH

FINANCE HP

FINANCE HEE

CAPOPS INVEST PORTFOLIO

PROJECT HEH

CAPEX HCI

DEBTCONSOL

Blue – Plan/Forecast dataRed – Debt model dataBlack – Actual consolidated data

Consistent dimensionality to align with corporate FINANCE model

Unique dimensionality supporting each BU’s planning needs

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Improving the Planning Process Using BPC on HANA

1. Leveraged script logic to automate certain calculations, provide ability for “what-if” analysis, and speed up overall plan process

2. Changed a manual, bottom-up OPEX process into a dynamic, rate-and volume-based process

3. Integrated a program-based CAPEX process in EPM that mimics current business process

4. Eliminated cumbersome Access database and replaced with a consistent process and data integrity checkpoints

5. Utilized logic to automate the “push-down” of certain allocations, etc., and “push-up” of consolidated data to corporate

6. Used a combination of script logic, business rules, and templates to ease the generation of financial statements

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Script Logic and “What-If” Scenarios

• Allows the users to update pricing tables or re-load volumes to the system and automatically update results in BPC at a cost center level Price Differentials (Revenue/Volume) – Price

Revenues Volume * (Price + Differential)

Royalty Calculations Uses MDX IIF to “look up” certain royalty rates and gas fees

based on the scenario price Conversion of BBL (oil) and MCF (gas) volumes Calculates BOE/MCFE for universal reporting across

products

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Script Logic and “What-If” Scenarios (cont.)

• Benefits Achieved Reduced overall process time so end users have the ability to

run multiple “what-if” scenarios and store results for comparison purposes

Provided the ability to perform analysis at various levels from a top level cost center area, down to an individual cost center

Elimination of cumbersome, complex workbooks that had to calculate differentials, BOE, etc., on the fly

Results are now stored in BPC and can be accessed by users without having to have access to a workbook

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Dynamic Operating Expense Plan Process

• Replaced a time-consuming, bottom-up, error prone BI-IP process with an accurate rate/volume-based process

• Utilizes an EPM template to calculate and store OPEX rates at a high level within the cost center structure (Areas)

• Rates are then used in script logic to calculate and store the OPEX dollars down at the lowest cost center level

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Dynamic Operating Expense Plan Process (cont.)

• EPM part of the process Users interface with an EPM template that pulls in the last

rolling 12 months of actual OPEX $ and actual volumes Calculates an “actual” OPEX Rate

Actual OPEX $

Actual Volumes

OPEX Rate

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• EPM part of the process (cont.) Forecasted production is also pulled in and multiplied against

the “actual” rate to derive a Forecasted OPEX amount Users have the ability to override the dollar amount, which

generates a new OPEX Rate behind the scenes

Forecasted Production

Forecasted OPEX

OPEX Rate

Override

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• EPM part of the process (cont.) The EPM template will send the calculated rate, or the override

rate, if one is entered

Forecast Rate – Sent to BPC

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• Script logic part of the process: Once the rates are stored in BPC, by high-level area and by

OPEX account, script logic is utilized to calculate and store OPEX dollars at a cost center level Logic performs a lookup to the rate and multiplies by the

stored production volumes

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• Benefits Achieved Reduced the overall time it took for OPEX planning, while at the

same time generating more accurate data down to the lowest level of detail

Leveraged the flexibility of BPC EPM – Utilized “.INP” members at parent nodes to store rates

at higher levels within the cost center hierarchy Logic – Calculations performed at a base level

Process is now completely driven off of fluctuating volumes, instead of static dollar input Allows for “What-If” scenarios based on changes in

rates/volumes

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• Be careful with service pack upgrades! Use of the script logic LOOKUP command worked for

generation of data in SAP BPC NW v10, SP8 Upgrade to SP9 caused exceedingly long running times, From 10 minutes to 50 minutes!

Applied SAP Notes 1805886 and 1809782, which corrected the long runtimes, but truncated the member character limit in the LOOKUP to 20 characters

Applied SAP Note 1863799, which switched the limit back to 32 characters

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Integration of Program CAPEX Data via EPM Template• The business had recently designed and created the concept of a

program-based CAPEX solution Data was captured via manually created Excel templates for

each program, then manually compiled for reporting• Created EPM templates that had the same look and feel as the

original program template, but integrated actual, plan, and forecast data from BPC Template could be refreshed for any program and data sent

back to BPC Business chose to refresh and send the templates offline to

each Program Manager Once complete, the template was brought back online and data

sent to BPC

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Integration of Program CAPEX Data — Challenges

• Matching the structure of the existing Excel template to the dimensionality of BPC Changing dimensions in row axis Changing comparison scenarios (Category) in rows

Account Dimension

Op/Non-Op Dimension

Changing Category, based on user selection

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Integration of Program CAPEX Data — Challenges (cont.)• Conditional formatting on rows, based on user selected Category• Conditional formatting on columns, based on closed periods

User selected -INPUT

Closed vs. Open Months

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Integration of Program CAPEX Data — Challenges (cont.)• Cell protection – To prevent users keying over data inadvertently Couldn’t lock effectively using EPM functions Read-Only Data tab – Not dynamic enough Read-Only Data formula – Would work for columns, but

alternating input rows caused issue Resorted to Visual Basic to lock based on row/column criteria

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Integration of Program CAPEX Data via Data Manager• Certain program engineers used ARIES to model detailed CAPEX

deliverables Utilized BPC Data Manager to load this data from ARIES directly

to BPC Aligned with data which was sent via the program EPM

templates, and could be viewed in the template Reduced manual Excel work

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Integration of Program CAPEX Data

• Benefits Achieved BPC’s integration with Excel and formatting capabilities

allowed for the template to be built with the same look and feel as the original file Allowed for quicker end-user buy in Consistent template design across the business

Removed the manual process of copying/pasting data to prepare the files, as well as eliminated the manual process of compiling the data as it was received back from users Time savings gained!

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Transformation from Cumbersome to Consistent

• Original process for extraction of ARIES data (production volumes) utilized Access database Potential for inaccurate data and incomplete data fields Burden was on users of the data to scrub and populate missing

items• Worked with business owners and data owners to develop BPC

process Created file layout requirements to assure consistent files every

month Responsibility shifted to data owners to provide accurate data

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Transformation from Cumbersome to Consistent (cont.)• Benefits Achieved Significant time savings and elimination of a complex Access

database More consistent data files and automation of data loading Utilized combination of BPC Data Manager tools and BW Exit

Routines to look-up certain BPC dimension fields not provided in file

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Using End Routine BAdIs in Transformation FilesUse End Routines in Transformation files to write your own ABAP code to modify data just before BPC Data Manager writes it to the BPC Model

Whitepaper showing how to do this noted at end of presentation

Useful for performing lookups to populate values from master data for dimensions not present in source flat files

Transaction SE18/Enhancement Spot UJD_ROUTINE

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Consolidation of Plan Data

• Potential for inconsistent data from corporate, i.e. allocations, etc. in business unit plans

• Rollup of plan from business units was difficult due to inconsistencies in approach

• BPC process was designed so that push logic would be used to send all required line items from corporate down to business units

• Business units utilize push logic for submission of plan data to corporate Provides consistent mapping from all business unit FINANCE

models to corporate model

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Consolidation of Plan Data — Push Down/Push Up

FINANCE HCI

FINANCE HEQ

FINANCE HMX

FINANCE HOC

FINANCE HRI

FINANCE HEH

FINANCE HP

FINANCE HEE

Push down of Corporate allocation items, etc.

Push up of final plan/forecast data

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Consolidation of Plan Data

• Benefits Achieved Enterprise-wide strategic solution All business units receive the same set of data from

corporate at the same time Similar dimensionality in FINANCE models across business

units and corporate Drive consistency across business units and provide

visibility into business unit plans Allows for easier mapping of data back and forth between

models

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Simplifying Financial Reports

• Replaced a manual, time intensive, Excel-based financial statement generation with consistent BPC business rules, script logic, and EPM templates Income statement relatively easy to put together from plan data Balance sheet built from a combination of rules Non-planned line items – Carry forward previous balance Planned lines – Input monthly activity, then accumulate into

previous balance Cash flow built from a combination of business rules and logic Script logic – Moves monthly balance sheet activity to cash

flow accounts Business rules – Moves certain P&L line items and cash flow

adjustments to cash flow accounts

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Simplifying Financial Reports —Planning Balance Sheet Activity• Users had a requirement to be able to plan activity for the balance

sheet, rather than balances, and “accumulate” that activity into a closed month balance

• This facilitated the need to design the AuditTrail dimension with two nodes: TOT_ADJ Is the final destination for all P&L activity,

Balance Sheet balances, and Cash Flow data INTERIM Holds the intermediate balance sheet activity,

prior to accumulation in to balances

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Simplifying Financial Reports —Planning Balance Sheet Activity (cont.)• Users first enter Balance Sheet activity in the forecast/plan

months ($10 per month of incremental activity)• Logic is then used to determine the last closed month of Actuals

and accumulate the activity into the balance and carry it forward into the forecast/plan months ($610 + $10, $620 + $10, etc.)

ACTUAL PLAN

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Simplifying Financial Reports

• Benefits Achieved Enterprise-wide strategic solution Consistent business rules and script logic used across all

business units to generate financial statements Made easier by similar dimensionality in all FINANCE models

Simplified the process and thus saved time! Initially not all business units developed the same financial

statement process Opportunity to review during later phases and update Business unit now finds it easier and more accurate!

Need to balance the requests of the business unit to drive their process with the need for consistency across the organization

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What We’ll Cover



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Lessons Learned

1. Balancing IBU flexibility with consistent requirements from Hunt Consolidated

2. Starting the project early in the lifecycle of both BPC NW 10, EPM, and HANA

3. Ensuring adequate knowledge transfer and involvement during build

4. Understanding of all process steps, timing, and ownership

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The Balance for an Enterprise-Wide BPC System

Ownership of their model(s)

Flexibility to plan how they want

Visibility of model functionality

Ownership of their model(s)

Flexibility to plan how they want

Visibility of model functionality

Unique BU-specific models that push data to commonFinance models

“Wrapping” BPC/EPM around existing Excel models

Unique BU-specific models that push data to commonFinance models

“Wrapping” BPC/EPM around existing Excel models

IBU Needs/Wants HCI Needs/Wants

The balance between designing a BPC system that IBUs feel like they own that also satisfies enterprise-wide needs permeated through just about every design decision we had to make!

Some accomplishments:

Requirements of data from IBUs

Easier maintenance and support

Re-usable functionality

Requirements of data from IBUs

Easier maintenance and support

Re-usable functionality

Some accomplishments:Common Finance models

Activity-based planning, accumulating into Balances

Common EPM template design standards / formatting

Common Finance models

Activity-based planning, accumulating into Balances

Common EPM template design standards / formatting

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Lessons Learned





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Being on the “Bleeding Edge”

• We started the project in early 2012, while BPC NW 10 on HANA was still in Ramp-Up Having an escalation path and ready workarounds was critical

to keep the project going At one point early in the project, we had a workbook

corruption issue that ended up being due to a change in how MS Office 2010 handled meta data in Active X objects!

Be aware of functionality differences between different versions of BPC Some MDX commands are available in Microsoft version that

aren’t in SAP NetWeaver Some capabilities are implemented differently in EPM than in

EVDRE

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Enabling HANA on BPC

Transaction SPRO, IMG Planning and Consolidation Configuration Parameters Set Global Parameters

Transaction SPRO, IMG Planning and Consolidation Configuration Parameters Set Environment Parameters

Transaction SA38/SE38 – Execute ABAP

SAP Note 1657623, 1657612 are important notes to review for buffer sizing and shared object memory usage. We had to increase parameter abap/shared_objects_size_MB.

Review SAP Note 1743412 on enabling HANA for BPC, as well as SAP Note 1734706, the collective BPC 10 NW on HANA note.

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Lessons Learned





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Knowledge Transfer and Co-Development

• It was absolutely critical that we had heavy involvement in the project of IBU resources that would own their model and process These resources co-developed the models, templates, reports,

and logic alongside our integration partners• We also had involvement of resources from Hunt Consolidated They would end up understanding what the IBUs had built They could also serve as the “first line of support” when an IBU

ran into issues with BPC We often leveraged these involved business resources to

deliver later BPC Administration and EPM Report/Writer training classes to IBUs that came on later in the project

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Lessons Learned





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Understanding the Process and Documenting It!

• Because of the aggressive timeline of the project and the newness of the tool, the planning process with BPC could best be described as “emergent”

• Additionally, because some aspects of the process were shared between IBUs and Hunt Consolidated, working out the ownership was and still is a challenge

• We try to mitigate this challenge IBUs document their process as best they can Regular weekly meetings with IBUs and Hunt Consolidated to

talk about open issues, the current forecast, etc.

Even though we want the business (both IBUs and Hunt Consolidated) to own the models and process in BPC, it helps to leverage our BW resources who can perform a sort of “data oversight” function

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What We’ll Cover



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Phase 2 — IBU Planning and Reporting

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2.0 –HCI

Design2A – Hunt Investment

2B – Hunt Mexico

2C – Hunt Energy

Horizons2D – Hunt

Power

43 Weeks Total

Three variations on IBU deployment method:- Complete modeling within BPC- “Wrapping” of EPM around Excel-based model- Templates for input of data only

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3- Legal Consolidation and

Financial Reporting (replacing BCS)

4 – Hunt Refining Company 5 - Treasury

24 Weeks 25 Weeks

Phase 3–5

Consolidation project completed in parallel with Phase 2HRC project in flight leveraging a hybrid approach

TBD Weeks

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What We’ll Cover



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Where to Find More Information

• http://scn.sap.com/docs/DOC-4259 Script Logic Primer – BPC for NW (Sheldon Edelstein, 2012) 7.x but much is still applicable in BPC 10

• https://service.sap.com/notes * SAP Note 1805886 – K2 performance: lookup and tuple SAP Note 1863799 – K2: Wrong component type in calculate engine

• http://scn.sap.com/docs/DOC-4230 How To Use Start/End Routine BAdIs (again, 7.x but applicable)

• http://scn.sap.com/docs/DOC-41342 How To Migrate 7.x BAdIs to BPC 10 Very good resource!

* Requires login credentials to the SAP Service Marketplace

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7 Key Points to Take Home

• Balance the flexibility of BPC to facilitate business ownership/adoption, along with consistency of processes across business units

• Stage BPC data and dimensions in BW custom objects• Provide end-users flexibility to perform faster what-if analysis• Consistently design FINANCE models, fed by more detailed

business-specific planning models• Utilize automatic generation and “.INP” members for input of data

at parent levels, as well as creation of “Stat” accounts by business owners

• Strive for a consistent EPM input/report template design• Continuous Improvement – Implement items learned in

subsequent phases

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Your Turn!

How to contact me:John Gooch

[email protected]

Please remember to complete your session evaluation

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