predictive analytics for corp functions
DESCRIPTION
Learn how Corporate Functions like HR and Finance can leverage sophisticated solutions for predictive modeling, data mining and advanced visualization. Follow me on twitter @hschliebsTRANSCRIPT
Predictive Corporate Functions
Henner Schliebs, July 2013
Predictive Finance
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Finance Excellence: Guidance on, Guiding for the future
Core functions of effective finance organizations include:
Reporting of historic financial information
AND
Guidance on and guiding expected (future) results
source: Association of Accountants and Financial Professionals in Business (IMA): Conceptual Framework for Managerial Costing
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The Finance Conundrum: What is the future ?
Plans tell us where we want to go (vision), not where we are heading (direction)
Based on the past, what is likely going to happen ? Which factors are correlated with or impact the future ?
Vision (Plan)
Direction (Reality)
Indicators (Trends)
Past Performance
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SAP Predictive Analysis - Finance Use Cases (examples)
Cost, margin and other financial trends
Time series (Forecasting)
Profitability analysis (A also bought XYZ)
Associations (Identification)
Optimized performance management
Classification (Decision Trees)
Proactive detection of financial risks
Outliers (Anomaly detection)
Late payers - attributes (Receivables)
Clustering (Segmentation)
Company performance (external factors)
Classification (Correlations)
Analyze
Optimize
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SAP Predictive Analysis - Key Finance process component
SAP Predictive Analysis allows end-to-end SAP coverage for the record-to-act management process. Results of the analysis process step are used to take action (plan, re-plan, or management action outside SAP system)
Record Report Analyze Act
SAP Predictive Analysis
SAP Net Margin Analysis
SAP Business Planning
SAP ERP
SAP EPM
BOBJ BI platform
SAP Accelerators
SAP ERP foundation
SAP Accelerators
Record-to-act management process
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10
Manage Financial Risk
SAP Predictive Analysis - Finance Value Proposition
Optimize business opportunities
Outperform Financial Objectives
Reach your business goals faster by turning dormant data into new opportunities
Stay agile and gain a competitive edge with efficient forecasting and planning
Solve problems before they happen by exposing hidden risks and hazards
Flow of people
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SuccessFactors BizXWhat if we better understand the Flow of People at SAP?
…We could show our internal talents a much broader range of realistic and proven paths for professional development and career progression at SAP and in this way promote triple career pathing.
… We better understand the internal flow of talents and could think what to do to increase the number of key positions filled successfully internally
…We could identify critical patterns that more often than not result in less successful internal movements, analyze the route causes and probably define actions to improve selection (match-to-job) and/ or improve onboarding to increase sustainability
Currently our focus in communication and supporting career planning/ pathing is on movements within or job families, real life teaches us many people move between functional areas.
…We could tell Early Talent that once they join SAP “they don´t need to change when they are up for a change” and contribute to a strong Employer Branding towards Milleniums
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Examples for considerations/ business impact that could be derived from understanding the Flow of People at SAP
Increase Flexibility and Agility of the Organization
Support Career Planning for Individuals
Understand and Forecast Internal Supply Chain
Globally 30% of open positions in Marketing were filled with people coming from Sales & Pre-Sales
functions.
People who move out of Development rather join Pre-Sales & Sales (50%) than Consulting (30%)
20% of people moving from a Development function into a Marketing function other than
“Solution Marketing” have left SAP within 12 months after their move or
had performance ratings below “meets expectations”
We are facing a paradigm shift in Marketing (pull vs. push, social marketing) and a change in the regional/ solution focus. With these changes ahead can we assume the same numbers for internal supply for Marketing in the future coming from Sales & Pre-Sales?
Potential Impact Dimension of Flow of People Analysis
Example of Findings
Considerations /Follow Up Actions What can we do to
increase the flow into Consulting roles from the internal workforce in Development? As also sales/ pre-sales people travel mobility cannot be the only hindering factor.
Understand from Marketing perspective of Marketing more inclusion of talent from Development is desired, if so consider related actions to support onboarding/ improve selection and consider alternative ways to support inclusion e.g. job rotation/ fellowships.
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SAP Predictive Analysis – SAP Internal Use Case for HR„Flow of People“
Focus: Analysis of internal transfers across job families and functional areas
Expected Results: Identify re-curring and unhealthy patterns of career moves, classify and segmentated job groups as basis for further analysis by HR BPs
Business drivers:
Increase organizational agility
Reduce talent attrition,
Increase employee engagement
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SAP Predictive Analysis – SAP Internal Use Case for HR„Flow of People“
Employee Performance Analysis
Time series (Forecasting)
Effectiveness Analysis (successful career path)
Associations (Identification)
Optimized career path management
Classification (Decision Trees)
Turnover- attributes
Clustering (Segmentation)
Analyze
Optimize
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 20
SAP Predictive Analysis – HR Use Cases (examples)
Employee Performance Analysis
Time series (Forecasting)
Effectiveness Analysis (successful career path)
Associations (Identification)
Optimized career path management
Classification (Decision Trees)
Proactive detection of talent turnover
Outliers (Anomaly detection)
Turnover- attributes
Clustering (Segmentation)
Workforce performance (movements)
Classification (Correlations)
Analyze
Optimize
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21
Manage Retention Risk
SAP Predictive Analysis – HR Value Proposition
Optimize employee performance
Outperform HR Objectives
Evaluate your most important asset (employee) like you do for all other assets to create a performing and efficient organization
Stay agile and gain a competitive edge with a strong employer brand and a sophisticated workforce plan
Keep your high potentials and top performers within your organization - proactively
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Henner SchliebsAnalytics Product Marketing
@hschliebshenner
hschliebs
Predictive Finance Demo: http://bit.ly/PF-demo Predictive Finance Slides: http://bit.ly/PF-slides Predictive Finance Radio Show: http://bit.ly/PF-Radio1 Flow of people blog: http://bit.ly/SAP-TA-blog Talent Analytics Video: http://bit.ly/TA-YT