]

Orange County Convention Center

Orlando, Florida | May 15-18, 2011
SAP BusinessObjects Spend Performance Management
Value Proposition and Colgate Palmolive Global Implementation
Experiences and Solution Roadmap
Francisco Ramos
Colgate Palmolive Co.
Raj Alluri
SAP Labs, LLC
Real Experience. Real Advantage.
[ Agenda
SAP BusinessObjects Spend Performance Management
Value Proposition and Colgate Palmolive Global
Implementation Experiences - 30 Mins
Francisco Ramos
Colgate Palmolive Co.
Whats new in SPM3.0 and Solution Roadmap 30 Mins
Raj Alluri
Director, Solution Management
SAP Labs, LLC
2
Real Experience. Real Advantage.
[ Learning Points
Colgate Palmolive business case for Spend Performance
Management implementation
Project scope
Project key challenges & learning's
3
Real Experience. Real Advantage.
[ Colgate Palmolive Co.
15.6B global consumer products company
Founded in 1806
35,000 Colgate people worldwide
Products sold in 200+ countries and territories
The Company focuses on strong global brands in its core
businesses
Oral Care
Personal Care
Pet Nutrition
Home Care
4
Real Experience. Real Advantage.
[ Spend Analytics Background
BI Custom Reporting application developed in 2004
Based on Accounts Payable information only
Rule base logic for spend classification
Colgate implemented SRM/EBP solution for indirect
procurement between 2007 and 2010
Classification of Indirect Spend has being a challenge
Users not always classify spend properly (EBP)
Rule engine data maintenance is resource consuming (BI)
IT spending to many resources maintaining and enhancing
existing application
Procurement dependency on a few Power Users
to generate information for the organization
5
Real Experience. Real Advantage.
[ Areas of Opportunity
Increase utilization
Easy of Use
Self Service Capabilities
Better classification of spend
Provide context information
Commodity prices
Budgets
Contract and Purchase Order data
Better analytical capabilities
From Corporate summary to document level information
Tool to empower users to find and report on the
data they need
6
Real Experience. Real Advantage.
[ SAP Spend Performance Management (SPM)
SAP is Colgates strategic partner for information systems.
Leverage Colgates and SAP investment in technology
SPM delivers a BI data model for spend and context information
User interface delivered as part of the solution
Solution to keep-up with external innovation and business needs as we
upgrade BI & SPM in the future
Easy of Use
Intuitive Web based UI built on Adobe Flash
Users can set their own preferences and create their own reports,
dashboards and briefing books
Leverage third party vendor services for classification of Indirect
spend
7
Real Experience. Real Advantage.
[ Colgate Palmolive project scope
Data
Spend (Account Payables)
Purchase Orders
Travel & Entertainment
External Factors (Commodity
Prices)
Budgets for Direct spend
Two years of data
Geography
Global Implementation
Seven SAP ERPs / One SAP
SRM
Organization
Direct
Indirect
Logistic
8
Real Experience. Real Advantage.
[ Project Timeline for Global Implementation
2008 - Meetings with SAP to review Colgate business needs
and SAP prototypes
2009 3
rd
/ 4
th
Qtr - Ramp-up
2010 1
st
/ 3
rd
Qtr Implementation
2010 4
th
Qtr Data validation
2011 1
st
/ 2
nd
Qtr End User Training / Go Live
9
Real Experience. Real Advantage.
[ Key Challenges
New Spend Hierarchies
Direct Spend Two levels, Spend Segment / Sub-Segment
Indirect Spend Three levels, iCode Category / Sub-Category / Cost Driver
Data integrity based on subsidiary business practices
SMI / Contract Manufacturing Spend
Vendor Classification in R/3 systems
Purchase Order information
SPM Technical challenges
SPM 2.1 was a ramp-up product
Adobe Flash UI memory limitations
Java based tool
Netweaver JAVA stack need to be properly configured/optimized
Fixes delivered once a month as full patches.
No standard interface from BI standard content to SPM content
SAP delivered solution is based on flat file interfaces
10
Real Experience. Real Advantage.
[ Current Implementation Status as May 16
th
, 2011
Division Direct Procurement Indirect Procurement
Europe 30 users July Go Live 22 Uses Live Feb
Asia / SP 33 users July Go Live 26 Uses June Go Live
North America 32 users July Go Live 23 Uses Live March
Latin America 42 users July Go Live 63 Users Live May
AMED 5 users July Go Live 4 Users June Go Live
Hills 15 users Live April 10 Users Live April
Total 157 Users 148 Users
11
Real Experience. Real Advantage.
[ Best Practices
Data is the key component
Have a good understanding of the complexity of your
Transactional & Master Data
Data validation is key and it can take a lot of effort and time
Define Spend Hierarchies that facilitate sourcing initiatives
Involve your basis/technical group early in the implementation
Make sure that the Java stack is properly configured/tuned for
the expected workload in production.
Ensure a process is in place to deploy Adobe Flash.
Define an appropriate data refresh frequency
12
Real Experience. Real Advantage.
[ Key Learning's
SPM solution well designed to address spend analytics business
needs
User adoption requires good data quality and modern/intuitive
user interface
Spend is classified properly
Vendors are classified properly per the role they have
To keep up with external innovation you need to pick a
solution from a vendor that reinvest in enhancing existing tools
13
Real Experience. Real Advantage.
[ Q &A
14
Real Experience. Real Advantage.
[
SAP BusinessObjects
Spend Performance Management Whats new in 3.0 and
Roadmap
15
Real Experience. Real Advantage.
[ SAP BusinessObjects Spend Performance Management
Roadmap
New content: Payment analysis,
savings, business synergy
What-if and build your own
simulations
New UI features and
enhancements
Data management enhancements
Advanced charting - integration
with SAP BusinessObjects
Dashboards (formerly Xcelsius)
Support for SAP BusinessObjects
Business Intelligence Platform
(enables Mobile)
Language support(Korean, Danish,
Dutch, Finnish)
Version 2.1, GA May 2010
Version 3.0 Ramp-Up (RTC)
Scheduled for May 31st 2011
Future Versions
Enhanced time/trend analysis
Analysis by global, local, and
document currencies
User-defined currency preferences
On the fly UoM conversion
Increased flexibility for content
storage
Out-of-the-box support for supplier
risk analysis (SP3)
Language support (English,
German, Czech, Spanish, French,
Hungarian, Japanese, Portuguese,
Russian and Simplefied Chinese)
Enhanced Integration with LoB
procurement applications
Integration with SAP
BusinessObjects GRC and SAO
BusinessObjects EPM applications
Predictive analytics capabilities
Supplier performance including
delivery, GR and basic supplier
evaluations
SAP HANA adoption
Additional integration with SAP
BusinessObjects BI tools
Enhanced mobile scenarios
Available today May 11 >=2012
Future/Planned
Important Note: * These are planned, future releases. Everything described is just a plan, not a commitment, and is therefore subject to change or removal at SAPs discretion.
Real Experience. Real Advantage.
[
What-if simulations Ability to perform what-if simulations within the
application
Provides a framework based on variables (global,
local), formulas and ability to perform simulations
(example: total landed cost, buy vs. build, etc.)
Enables strategic buyers to take critical
business decisions based on what-if
simulations
Improved sourcing decisions
Advanced analysis (savings,
payment, business synergy,
waterfall, etc.)
Provides savings analysis over selected time
periods by commodities
Ability to analyze payments and monitor days
payable outstanding (DPO)
Enables purchasing organizations to track
Savings with pre-defined targets
Better manage cash flow and effective pricing
Enhanced extractor and data
management features
Enhanced BI to BI connections
Improve performance and usability of extractor
starter kits for SAP systems
Support n:n mappings between the source system
and target system fields
Enables customers to integrate their existing
BW content directly to the spend data model.
Better TCO.
Further simplifies and automates the
extraction process
Enhanced UI features Adoption of business user interface
Enhanced UI navigation and advanced charting
with SAP BusinessObjects Dashboards charts
availability within SPM UI and iPad integration
Enables integration of spend data model with SAP
BusinessObjects BI platform and allows its
consumption in the BI tools.
Increases speed of productivity across a
purchasing/finance users and reduces
the manual efforts and spreadsheet
dependency
Ease of use and deployment
Important Note: Everything described is just a plan, not a commitment,
and is therefore subject to change or removal at SAPs discretion.
Whats New in SAP BusinessObjects Spend Performance
Management Version 3.0?
NE
W
What is
the feature?
What does
it do?
What is
the value?
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
H
Key Features Business Value
SAP BusinessObjects
Spend Performance Management Version 3.0
New UI Features/Enhancements
New landing page provides a role-based
view of the applications version 3.0
features
Workspace concept allows grouping
together of similar tasks
New reporting features improve
ad-hoc analysis capabilities
Provides business users an enhanced UI with
more intuitive navigation to content and
new functionality within the application
The ability to provide feature-based
authorization to the applications new
functionality will ease of navigation and
ensure maximum use of the features version
3.0
New reporting functionality like scope
context and enhanced charting provided by
BUI will add value to the ad-hoc reporting
and charting in version 3.0 of the application
Real Experience. Real Advantage.
[ New Landing Page
Favorites
Recent Documents
Real Experience. Real Advantage.
[ Expanding Tree Hierarchies
Visualize all hierarchy
levels on single screen
Real Experience. Real Advantage.
[ Improved Folder Management
Browse all reports from
single screen
Real Experience. Real Advantage.
[ Ability to Filter Out Values in Reports
Excluded values
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BuinessObjects Dashboards (formerly Xcelsius)
Web Integration
Key Features Business Value
Enhanced charting options
Visualize data using SAP BusinessObjects
Dashboards custom charts that
incorporate an organizations corporate
themes
Utilize chart types the are only available
in SAP BusinessObjects Dashboards
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects Dashboards Web Integration
Charts Available in SAP BusinessObjects Spend Performance Management
Advanced Charting
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects Business Intelligence (BI) Platform
Key Features Business Value
Integration between SAP BusinessObjects
Spend Performance Management and SAP
BusinessObjects Business Intelligence
platform
Access SAP BusinessObjects Spend
Performance Management data with tools
like SAP BusinessObjects Explorer, SAP
BusinessObjects Web Intelligence, etc.
Consume SAP BusinessObjects Spend
Performance Management data on the iPad
and IPhone using the iPad client in SAP
BusinessObjects Explorer
Real Experience. Real Advantage.
[ SAP BusinessObjects BI Platform - Universe Integration
Advanced Graphical Analyses and iPad Integration
SAP BusinessObjects
Spend Performance
Management
Flex UI
SAP NetWeaver BW
SAP
BusinessObjects
Analysis
SAP
BusinessObjects
Web Intelligence
SAP
BusinessObjects
BI Platform
SAP
BusinessObjects
Explorer
iPad Client (SAP
BusinessObjects
Explorer )
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
What-if Analysis
Key Features Business Value
Perform what-if simulations within SAP
BusinessObjects Spend Performance
Management
Provides a framework based on variables
(global, local) and formulas
Provides ability to perform business
simulations
Empower procurement end user to make
improved decisions during the sourcing
process
Build and compare different sourcing
scenarios
Manipulate the results to identify the most
beneficial scenario
Some examples for what-if analysis are
Buy now vs. buy later
Ability to analyze savings potential based on
different payments terms
Buy local vs. buy global
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
What-if Analysis
Example: Total Landed Costs Simulation
Local Variables
Global Variables
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Savings Analysis Reporting
Key Features Business Value
Calculate period over period savings at the
Item or category level
Savings formula is variance of selected
price measure between selected time
periods x quantity measure for current
time period
Compare spend for a specific Item or
category over an end-user-defined time
period
Calculate the savings gained from previous
sourcing activities
Report can be saved and added to briefing
books for presentation to senior
management or LoB stakeholders or
performance reviews
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Savings Analysis Reporting
Local Variables
Global Variables
Calculate period over period
savings at the Item or category
level
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Business Synergy Reporting
Key Features Business Value
Analyze common spend between
management organizations (business units,
divisions, plants etc. at the same level) for a
specified time period (cross tab view)
Review spend across an organization to
identify suppliers that are common
between divisions
Identify opportunities for global contracts
that cover the entire spend, resulting in
cost savings
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Business Synergy Reporting: Analyze Common Spend
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Payment Analysis Reporting
Key Features Business Value
Perform a DPO analysis by grouping the
DPO into DPO groups and reporting on
payment amounts associated with each
group
Report on the supplier by DPO group
Navigate to the payments detail report
Analyze effectiveness of the organizations
payment operations
Gain visibility into utilization of payment
terms and leverage during negotiation with
suppliers
Navigate to payments detail report to
analyze transaction level payment
information from source systems
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Payment Analysis (DPO-Days Payable Outstanding)
Fast access to
additional payment
analysis reports
Report on the
supplier by DPO
group for better
insight
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Waterfall Analysis
Key Features Business Value
Perform waterfall analysis
View waterfall chart for reports
Identify trends by performing a period-
over-period comparison of a particular
dimension in a waterfall chart
Compare dimensions on the same scale
(percentage) over two time periods
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Waterfall Analysis
Visually analyze
the spend
breakdown for
a specific item
See what portion
of item spend
comes from freight
charges versus
material costs
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Data Management Enhancements
Key Features Business Value
New user interface with enhanced
functionality to manage the data load
process
Support of BW:BW capabilities
Enhanced template administration
Capability to reload from persistent staging
area (PSA) in SAP NetWeaver BW
Data management enhancements in SAP
BusinessObjects Spend Performance
Management version 3.0 improve the
efficiency of data loading into the data
model
Support for BW to BW connectors for
data aggregation allow more and improved
options for loading data
Enhanced functionality to remove special
characters during data load speeds up the
data load process
Eliminates the need to re-extract data
from the source system with PSA
reloading
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP BusinessObjects
Spend Performance Management Version 3.0
Control all Data Load Activities From a Single Page
Real Experience. Real Advantage.
[
This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
Benefits Key Features
Checks for more than 25 configurations
in data management including
BW data source configurations
OPM cycle and source system configurations
Reporting currency setting
Data enrichment bypass setting
Import and export folders
Upload defaults (delimiter, escape character, etc)
Import/export folder setting
Concatenation character setting
SAP BusinessObjects
Spend Performance Management Version 3.0
Improved Configurations
Warns user against loading data if it finds
critical issues with configuration
This program will be down ported to SAP
BusinessObjects Spend Performance
Management 2.1 SP6 (planned)
Reduced web service calls from 50+
down to ~5, less configuration required
Backend ABAP-based program for
checking configurations (run by admin)
Real Experience. Real Advantage.
[
]
Thank you for participating.
SESSION CODE:
1201
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