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This deck is a SoH Executive positioning document in 3 parts for Public Sector
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Delivering Real-Time Business Value for Public Sector
1.
Delivering Real-Time Business
Value for Public Sector SAP Business Suite Powered by SAP HANA July 2013 Public
2.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 2Public The real-time opportunity Successful public sector organizations effectively align goals and resources to balance risk and opportunities for optimal government support to constituents. Align resources to desired outcomes Understand the costs of delivering citizen services Enable flexibility to anticipate shifts in priorities
3.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 3Public Quickly analyze financial and budgeting data Understand revenue and expenditure streams instantly Perform end-to-end budget and financial closes in real time Detect fraud earlier to reduce financial loss Optimize resources Conduct more efficient payroll exception handling based on real-time data Increase focus on business operations and staffing to deliver better citizen services Optimize citizen engagement by reducing average handling time Gain insight instantly Gain complete visibility into end-to-end procurement activities Perform real-time calculation of savings and simulations in purchasing Gain faster insight into grant-related operations down to the lowest level of detail Becoming a citizen-centric enterprise Align business operations with constituent needs
4.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 4Public SAP Business Suite powered by SAP HANA The next-generation business platform Real-time business In-memory Business transactions Digital connections Collaborative business CloudSocial Big DataMobile One platform bringing it all together Advanced analytics
5.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 5Public Industry value map for public sector Enabling the citizen-centric enterprise Public Security Investigation Management Emergency and Disaster Management Cyber Resilience Sustainable Government Funding Tax and Revenue Management Social Contribution Collection Fraud, Waste and Abuse Delivering on Citizen Needs Social Benefit Decision Making Benefit Payment Services Multichannel Citizen Service Grants Management for Grantor Best-Run Cities Energy and Environmental Resource Management Sustainability Reporting Real-Time Situational Awareness People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Budget and Finance Public Sector Budget Planning Public Sector Financials Treasury and Financial Risk Mitigation Enterprise Risk and Compliance Management Real Estate Lifecycle Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Regulated and Complex Procurement IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance City Performance Management Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration
6.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 6Public Industry value map for public sector Enabling the citizen-centric enterprise Public Security Investigation Management Emergency and Disaster Management Cyber Resilience Sustainable Government Funding Tax and Revenue Management Social Contribution Collection Fraud, Waste and Abuse Delivering on Citizen Needs Social Benefit Decision Making Benefit Payment Services Multichannel Citizen Service Grants Management for Grantor Best-Run Cities Energy and Environmental Resource Management Sustainability Reporting Real-Time Situational Awareness People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Budget and Finance Public Sector Budget Planning Public Sector Financials Treasury and Financial Risk Mitigation Enterprise Risk and Compliance Management Real Estate Lifecycle Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Regulated and Complex Procurement IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance City Performance Management Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration 1 2 1 2 3 45 Highest real-time business value for public sector
7.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 7Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA Business value for planning, budgeting, and forecasting With SAP Business Suite on SAP HANA 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, which 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
8.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 8Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (1/10) Business value for public sector financials Lack of easy access to real-time reporting and analysis, resulting in difficulty controlling financial and budget figures Decision-relevant information not readily available. Long running period and year-end processes with multiple steps to complete Limited time for analysis Laborious and time-consuming processes while obtaining a current understanding of financial and budget figures Time-intensive reconciliations Real-time analytics down to the lowest level of detail – delivering quality at source, transparency, and process efficiencies Increased end-user satisfaction (accurate, detailed, visualized, timely, and actionable information) More time for analysis, less overtime, and earlier publishing of financial results through faster period-end processes Increased efficiency through smarter reconciliations and reporting, reducing operating costs and improving stakeholder satisfaction Enhance insights and accuracy Reduce Minimize month- and year- end closing time cost of finance With SAP Business Suite on SAP HANA
9.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 9Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Long-running billing processes Limited transparency of grant-related information, especially detail analysis Real-time end-to-end grant close Faster budget and billing execution Faster insight into grant-related operations down to the lowest level of detail Accelerated analysis of awarded grants against submitted applications Faster consolidation for donor/sponsor reporting Accelerated overhead calculation process Comprehensive reporting on all grant related information, master and transactional data Faster and more efficient management of donor relations SAP Business Suite powered by SAP HANA (2/10) Business value for grants management – grantee With SAP Business Suite on SAP HANA Improve Compliance and accuracy Reduce Minimize Reporting and month end closing time and Grant close out Advance financing of sponsored projects
10.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 10Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (3/10) Business value for receivables management With SAP Business Suite on SAP HANA More time spent preparing data; less time for analysis Collaboration beyond finance team hindered by perceived system complexity Limitations in analysis capabilities and dimensions because of reliance on finance aggregates Large data volumes that lead to batch processing and reporting latency Difficulty in identifying exceptions in thousands of pages of reports Increase cash collections and accelerate dispute resolution Optimize Gain working capital instant overview of receivables portfolio Instant portfolio overview that lets managers focus team efforts on tactical wins Ability to involve sales executives and other business partners to accelerate collections and dispute resolution More accurate document-level calculation of DSO that allows identification of root causes of changes to DSO Real-time reporting on all accounts receivable data including credit, collections, and disputes Anywhere, anytime access to key receivables status
11.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 11Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (4/10) Business value for payables management With SAP Business Suite on SAP HANA Expensive and error prone manual process steps High cost per invoice due to large number of tasks Need to improve compliance and audit turnaround time Inability to determine exact moment of payment Inability to influence cash position Inability to understand where control over invoice-to-pay cycle is lost Inability to make use of cash discounts Risk of supply chain interruptions with key suppliers Loss of supplier loyalty affects contract renewals Scalable automation of invoice-to-pay reconciliation process Actionable insight with live access to items in process and multidimensional insight to AP process performance Extensive control over influence factors to DPO Optimization of cash position through precise timing of supplier payments DPO lower than net payment terms allows strategic decision making on payment along cash position Additional dynamic discounts can be offered or leveraged Decrease days payables outstanding Optimize working capital Reduce lost supplier discounts
12.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 12Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (5/10) Business value for asset planning and scheduling With SAP Business Suite on SAP HANA Maintenance scheduling consumes a great deal of time High amount of master data influences performance of data maintenance Manual and error-prone process of preselecting maintenance plans Potential to miss necessary objects for maintenance calls High number of maintenance plans that need to be scheduled frequently leads to a weekly scheduling scheme Accelerated mass transactions Instant analysis on top of transactions Preselection of due plans, which speeds up the process significantly Real-time analytics on all data, including machine sensor information Scheduling of all maintenance plans within a specific time frame Planning several times a day (instead of once a week) results in up-to-date scheduling information in maintenance operations Faster response times lead to more accurate maintenance scheduling Increase asset utilization and reduce unplanned asset downtime Maximize Gain asset uptime up-to-date scheduling information on maintenance operations
13.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 13Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (6/10) Business value for financial and managerial reporting With SAP Business Suite on SAP HANA Risk of noncompliance due to unfulfilled (overruns in) audits A lot of data; decision-relevant information not readily available Data analysis not supported or automated Long-running batch jobs and 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 Timely execution of compliance- relevant validation tasks 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 operating costs
14.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 14Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (7/10) Business value for entity close Minimize time to close the entities’ books Enhance cost of finance compliance and accuracy With SAP Business Suite on SAP HANA Long running processes Time-intensive reconciliations Limited time for analysis Inefficiencies due to manual processes and low automation Missing financial excellence results 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
15.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 15Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (8/10) Business value for SAP Shared Service Framework for finance With SAP Business Suite on SAP HANA Vendor, customer, and employee queries generate a high load on the shared services organization (SSO). This demands an extremely efficient working environment for agents in the SSO. SSO agents spend a lot of time searching for vendor, customer, and employee data. The SSO is under constant pressure to improve the quality of service and to lower the costs of providing those services. SAP HANA-based acceleration of inbox performance speeds navigation within the inbox. It allows the SSO agents to review and prioritize their work more efficiently. Faster identification of vendors, customers, and employees allows the agent to provide more responsive service, which leads to improved satisfaction of the agents and the clients of the SSO. Reduced costs and faster response times allow the SSO to meet its service level agreements and budget objectives and to improve its KPIs. Increase productivity for shared services agents Improve Reduce employee satisfaction overall costs of delivering services
16.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 16Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (9/10) Business value for access control role analytics With SAP Business Suite on SAP HANA Most companies face a high volume and ongoing increase of unused and orphaned roles. Scheduled batch jobs are required to analyze a transaction log with millions of records (such batch jobs usually take hours to complete). The cost of ongoing role maintenance can be high – one customer estimated active ERP role maintenance costs at about US$4,000 annually. Unused roles and orphaned roles constitute unneeded access risk to the organization (and possible compliance issues). Accelerated analysis of role usage to isolate unused and orphan roles Deeper insight into roles for uncovering any potential risk for the organization Role usage and assignment information provides valuable insight to business executives during business reengineering and reorganization. Trigger the assigned workflow directly from the analysis to remove unused roles assigned to users Expose orphaned roles across the system landscape quickly to begin the decommission process Identify unused and orphaned roles Consolidate Reduce most-frequently used (active) roles noncompliance and overall access risk
17.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 17Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (10/10) Business value for project management With SAP Business Suite on SAP HANA Long wait and locking times along business processes hinder project execution and impact flexibility to react on deviations. There is reduced user acceptance due to affected usability in handling large project data. Reduced waiting and locking times of critical transactions along the end-to- end process result into higher process efficiency and improved employee productivity. user productivity and end-to-end process efficiency transparency and decision support to take appropriate corrective measures in time Real-time analysis of high volumes of data for complex, long-lasting projects or cross-project monitoring is challenging due to high data volumes. Due to missing 360-degree real-time transparency across applications, deviations in costs, time, resources, or quality are seen too late in the process. Acceleration of project info system reporting and new project line-item reporting, delivering faster insights Early insight into deviations and risks, enabling timely corrective measures Planned: Project execution cockpit to enable project managers and staff to analyze status and progress of one or more projects from end to end with real- time data Increase Improve
18.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 18Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (1/3) Business value for payroll processing With SAP Business Suite on SAP HANA 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 the 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 payroll management Improve Reduce employee satisfaction overall costs of payroll processing
19.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 19Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (2/3) Business value for position budgeting and control HR decisions are not fully integrated with budget administration. Personnel cost information shared by accounting and HR is inconsistent. Integrated solution for managing personnel budgets from both the human resources and finance perspectives Insight into personnel expenditures for improved decision making Improve the insight into personnel expenditures Control the personnel cost Lack of a clear view, a realistic perspective, or the ability to plan and control personnel cost effectively Proactive personnel expenditures management that is cost-effective and efficiently Reduced administrative and operational costs With SAP Business Suite on SAP HANA
20.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 20Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (3/3) Business value for effective shared services delivery With SAP Business Suite on SAP HANA Employees direct queries into the shared services organization (SSO) and expect to get prompt, accurate answers. SSO agents spend time searching for employee data using employee identification. SSO agents are under constant pressure both to improve the quality of service provided to employees and to lower the costs of providing those services. SAP HANA-based acceleration of inbox performance speeds navigation within the inbox, allowing the SSO agents to review and prioritize their work more efficiently. Faster employee identification allows the agent to provide more responsive service, which leads to improved employee satisfaction. Reduced costs and faster response times allow the SSO to meet its service level agreements and budget objectives and to improve KPIs. Increase productivity for shared services agents Improve Reduce employee satisfaction overall costs of delivering services
21.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 21Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (1/2) Business value for time and absence calculation With SAP Business Suite on SAP HANA 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 time evaluation data. Addressing employee inquiries about time 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 to 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 payroll management Improve Reduce employee satisfaction overall costs of payroll processing
22.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 22Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA (2/2) Business value for transactional analytics With SAP Business Suite on SAP HANA * 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 provide insight into metrics that matter most* Leverage thresholds as a steering mechanism to optimize business performance* Powerful predefined workforce and time management 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 using analytics to identify strategic advantages Optimize Reduce the business with reliable real-time HR data time and costs of operational reporting
23.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 23Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA Business value for operational procurement Missing real-time insight into operational procurement reporting Inability to dynamically create operational procurement-related reporting in a modern user interface Slow and costly paper-based processes High transaction costs Long-running transactions while posting documents with high volume of line items Frequent errors yield to maverick spend New configuration options for procurement analysis Modern and easy-to-consume user- interface Complete visibility into end-to-end procurement activities Real-time insight and easy-to- manipulate information Accelerated long-lasting processing of purchasing documents Increase transparency Lower Increase procurement operations cost process effectiveness With SAP Business Suite on SAP HANA KPI improvements to be validated by VE
24.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 24Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA Business value for contact management with interaction center With SAP Business Suite on SAP HANA 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 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.
25.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. 25Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. SAP Business Suite powered by SAP HANA Preventing fraud, waste, and abuse Governments are accumulating more and more records in their data centers, but often cannot turn this information into applicable knowledge. Data is often located in various systems that are not connected. Fraud detection and investigation efficiency are poor. Many investigations lead to no results (false positives). Fraud patterns are quickly changing. Seamless data integration from SAP and non-SAP systems into SAP Fraud Management for Public Sector Unleash the value of Big Data through the power of SAP HANA in- database algorithms Match number of alerts with available investigative capacity Obtain transparent, real-time information on the impacts of new or changed strategies Align to new fraud patterns and adapt quickly to changing fraud behaviors Obtain better prevention and deterrence of fraud attempts Detect fraud earlier to reduce financial loss Improve Prevent the accuracy of detection at less cost and deter fraud situations With SAP Fraud Management
26.
© 2013 SAP
AG or an SAP affiliate company. All rights reserved. Thank you Contact information: Christian Weirich Operations and Go-to-Market Services Industry Business Solutions Public Services christian.weirich@sap.com +49 6227 7-45043
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