Best Practices and Strategies for Transforming the Retail Office of ...

Top Investment Buckets for theOffice of the CFOOFFICE OF THE CFOCore CIOThemesCompliance andRisk StrategyOptimizedOfferingsGovernance, Riskand Compliance(GRC)PerformanceManagementCorporatePerformanceManagementCostContainment andEfficienciesSpend Optimization© SAP 2007 / Page 8

GRC Access ControlKey Solution Capabilities and Benefits• Identifies and prevents access and authorization risks incross-enterprise IT systems to prevent fraud and reduce thecost of continuous compliance and control• Provides end-to-end automation for detecting, remediating,mitigating, and preventing access and authorization riskacross the enterprise• Allows for true cross-enterprise SoD risk mitigation byintegrating into SAP and non-SAP systemsCommon Customer Challenges Addressed• Need to comply with SOX regulations for section 404, orsimilar regulations• Weak support for the audit process to ensure the rightmeasures are in place to prevent fraud• Manual or people-intensive compliance processes involvingemails, spreadsheets and/or paper• Costly, manual remediation• Uncontrolled role management• Excessive super-user access• Inefficient and un-auditable user provisioning• Reactive vs. preventativeValue Proposition• Establish approach and process to manage risk rules• Gain alerts on potential violations• Identify business functions which produces risks whenexecuted by same individual• Focus on prevention vs. “a point in time” detection• Simplify compliant enterprise level role administration• Enforce compliant security for Privileged Access• Increase visibility through timely notification• Deliver audit ready, detailed reporting• Lower risk and save money through proactivecompliance© SAP 2007 / Page 10

GRC Process ControlKey Solution Capabilities and Benefits• Simplifies Governance, Risk and Compliance acrossbusiness Processes• Provides a control management solution that integratesend-to-end financial compliance activities- from documentingbusiness processes and identifying risks to deploying theright controls, testing them, and ultimately, providing theconfidence for management certification.• Allows for proactive identification of operationalinefficiencies, fraud detection, and reduction of financiallosses• Monitors controls across IT landscape to ensure properchange-control management and prevention of new riskintroduction• Cross-enterprise support - identifies risk acrossorganization’s heterogeneous business landscapeCommon Customer Challenges Addressed• Need to comply with SOX and other regulations• No central repository for control documentation• Manual and people-intensive testing of controls• Lack of visibility into control and compliance environment© SAP 2007 / Page 11Value Proposition• Central repository for all business and IT controls includinguser access controls from SAP GRC Access Control• Automate monitoring, testing, assessment , remediationand certification of enterprise-wide business processes• Gain visibility in business processes to ensure that theyoperating as designed• Identify most effective and efficient controls needed forcompliance• Optimize business processes in a timely and cost effectivemanner• Leverage SAP NetWeaver to unify technologycomponents into a single platform, allowing organization toreduce IT complexity and cost

GRC Risk ManagementKey Solution Capabilities and Benefits• Balance business opportunities with financial, legal, andoperational exposure to minimize the market penalties fromhigh-impact events• Enable cross-enterprise manual and automated riskidentification and monitoring processes with tools for thelines of business to mitigate risks, and the ability to reporton risks in their business context of strategy andperformance management• SAP AG has been using GRC Risk Management for 4yearsCommon Customer Challenges Addressed• Company performance targets means there is little roomfor surprises – analysts, investors and business executiveswant predictability of results• Globalization means risks are much harder to monitor thanin the past• Businesses are being pressured by governments andregulators to establish and communicate effective riskmanagement processes• Businesses are looking for ways to lower TCO. SAP GRCRisk Management helps to decrease costs of riskmanagement by automating as much of the requiredinformation flow as necessary.Value Proposition• Automates risk identification and monitoring acrossthe enterprise• Enable lines of business to mitigate top industryrisks• View risks in context of strategy and objectives© SAP 2007 / Page 12

GRC Environmental (EH&S, CfP, and EC)Key Solution Capabilities and Benefits• Improving Environmental, Health, and Safety ProcessesWhile Cutting Costs and Ensuring Compliance (EH&S)• Turn Product Compliance into a Competitive Advantage(CfP)• Benefits for the Environment Compliance and YourBusiness (EC)Highlights• Go “green” with SAP GRC Environmental with an entirebundle for our customers• Key Customers:• EH&S - Dow Chemicals, Dupont, CN Rail• CfP – Molex, Selectron• EC – Air Products and TesoroCommon Customer Pains Addressed• Negatively impacts your ability to sell products in specificglobal markets resulting in lost revenue and profits.• Product development cycles increase resulting in reducedspeed to market and reduced market share.• Non-integrated solutions and ad hoc processes created inreaction to specific regulations will not protect companiesfrom the challenges of ever changing and emerging globallegislation expected over the next 3 to 5 years.• Being non-compliant places your company at financial riskand at a competitive disadvantage.© SAP 2007 / Page 14Value Proposition• EH&S• Improves Employee Safety through the tracking of incidents andanalysis of root causes and the identification, justification, andtracking of effective, compliant, and focused corrective actions• Ensures efficient compliance by tracking all events, associatedmaterials, and corrective actions and producing relevant nationaland international reports and where acceptable, forms andelectronic submissions• CfP• Companies are only authorized to sell products whose complianceis guaranteed – Technidata CfP removes any barriers to the salesmarket.• Added value: The solution both utilizes and extends existing SAPsystems; it can be integrated seamlessly into a company’s ITlandscapes – thus sparing available resources and know-how.• EC (formerly xEM)• Monitor and report all environment compliance issues on plant aswell as on corporate• Controlling compliance activities, management of exception, limittracking

CPM Overview of the Office of the CFOSAP can address CFO priorities by offering a tightly integrated suite of best in class ERP/GRC/CPM to uniquely meet this needBusiness InsightCompliance & AuditProfitabilityManagementPlanning andConsolidationStrategyManagementAccessControlProcessControlCSRPartner (Resell) Acquired AcquiredNetWeaver Business IntelligenceCPMGRCReliableCloseRiskManagementDifferentiate SAP through tightintegration of a complete Officeof the CFO suiteFinancial Transactions & ServicesCoreTransactionsAR, AP, etcStandardization,Harmonization,Consolidation(SHC)SharedServicesAccounting, FastCloseTaxTreasuryReal EstateFinancial Value ChainERP© SAP 2007 / Page 15

Holistic Financial Management for On-GoingPerformance© SAP 2007 / Page 16

SAP Strategy ManagementKey Solution Capabilities and Benefits• KPI monitoring and management to ensure accountabilityand alignment of resources with corporate strategy• Initiative management to support direct execution againstgoalsHighlights• Integrates with SAP and non-SAP systems• Supports all strategy management methodologies• Tracking of underlying conditions and reasons forperformance issuesCommon Customer Pains Addressed• Executives want a “balanced scorecard” approach thatcaptures both qualitative and quantitative measures fromdifferent perspectives of the organization• Employees don’t fully understand how their individualefforts support the strategy and how their decisions affectother aspects of the organization• Too much time creating and tracking small, siloed plans toaddress specific issues• Management systems don’t empower employees to makeindependent decisions• No clear linkage between the outcomes of the planning,budgeting and reporting process and the organization’sstrategic objectivesValue Proposition• Lets users make decisions that align with thestrategic goals of the organization based onunderlying measures that tie to these goals• Quickly assess strategic performance and engageresources to execute on the areas that require action• Reduce overall cost of managing and maintainingscorecards, reviews and activities that tie to strategicobjectives• Substantially lower IT’s involvement in maintainingand reconfiguring the system by putting the powerinto the end-user’s hands• Enables reporting and tracking of direct efforts toimprove performance against corporate objectivesfor improved visibility and governance© SAP 2007 / Page 17

SAP Planning and ConsolidationKey Solution Capabilities and Benefits• Efficient planning, forecasting, budgeting, financial consolidationand statutory and management reporting for the enterpriseHighlights• Integrates with SAP and non-SAP systems• Directly leverages MS Excel as primary user interface, Wordand PowerPoint for easy reporting and compliance activities• Business Process Flows to maintain financial process integrity• Automatic predictive analysis of key areas to financial nonperformanceCommon Customer Pains Addressed• Overwhelmed by disjointed spreadsheets in planning andfinancial consolidation and reporting activities• When making decisions, it is important to understand the fullcontext of the information being used to make the decision,whether the supporting evidence is structured or unstructureddata.• Business processes need to be well defined and streamlined sothat everyone can perform according to plan.• Its important that finance and operational users can leveragetools they understand to enable adoption and to reduce trainingand increase productivity.• Budget cycles very often take too long. Enabling front linemanagers, who understand what’s needed, to get engagedearly and collaborate with finance, who set the budgets –enables a smoother process that better addresses corporategoals.• The consolidation process and closing the books needs to bedone in a timely manner to meet regulatory requirements and italso needs to be done accurately and with an audit trail to avoidcostly restatements, lack of corporate confidence and providefull visibilityValue Proposition• Supports an automated, robust consolidation processthat meets all legal and reporting requirements• Enables budgets to be created aligned to plans andresources which are synchronized with corporatestrategy• Highlights probability of risk and provides contextualinformation from which to make more calculated andpredictable decisions• Leverages up-to-date actuals from systems of recordto produce accurate and timely forecasts• Enables completion of the consolidated reportingprocess for a fast, accurate close• Maintains a fully documented audit trail for regulatorycompliance and reduced audit costs© SAP 2007 / Page 18

SAP Business Profitability Management byAcornKey Solution Capabilities and Benefits• Solutions for Maximizing Profitability• Time-driven Activity Based CostingHighlights• Integrates into SAP or non-SAP systems• Profitability modeling for all business drivers, down to SKU level• Time-driven analysis for capacity utilization and optimizationCommon Customer Pains Addressed• Typical customer initiatives can be Net Profit, Revenue, or Costmanagement oriented. Examples:• Profit: customer / product / channel profitability• Revenue: activity based pricing, market basket analysis• Cost mgmt: cost to serve, staffing and capacity planning• What is your budget for costing or profitability in any division orbusiness unit of your company? Enterprise-wide? Who hasapproved this initiative?• How do you know which customers and products contribute the mostto your profitability? How do you verify these numbers to seniormanagement?• How large is your staff supporting current profitability measurementinitiatives? How long does it take to produce the information requiredby executives and stakeholders?• How many “performance measurement” tools do you have for all thecomponents of your business? What are those tools?• Where do you have excess capacity or constrained resources in yourorganization?• What are the drivers of revenue and cost across all elements of yourbusiness?• How integrated is your view of revenue, cost, profit, and resourcecapacity/utilization?© SAP 2007 / Page 19Value Proposition• Gain visibility into where you truly make and lose money in yourbusiness and why, so you can dramatically increase profitabilityand shareholder value.• Identify unprofitable customers, products, channelsand divisions• Use this information to dramatically improveprofitability• Grow revenue profitably, not at the expense of corporate profits.• Optimize efficiency by reducing costs of operation by identifyingwasteful activities, areas of overcapacity, and inefficient workflowsand processes. Enable the reallocation of resources to maximizecorporate profitability• Provide enterprise wide measurement (content) as the foundationof an integrated and successful CPM solution• Link to the iterative process of planning, strategy,and analysis/monitoring• Operate from one version of the truth with nodepartmental silos for maximum impact• Clients routinely achieve a 5-10x payback within 6-12 months ontheir investment

Know, Manage, and Anticipate SpendKnow what you spent • Manage current spend • Anticipate future spendKey Pain PointsInability to determine how much is spent, withwhom and on what due to the:• Large number of heterogeneous systems in whichsupplier and spend data is stored• Complexity involved with extraction and creation ofmeaningful analytics & reports• Unclassified or misclassified spend data, e.g. fromprocurement cards, legacy systems, etc. with nocorresponding PO• Lack of flexible reporting, e.g. reliance on IT toanswer what seem like simple questionsKnowing how much is spent, with whomand on what allows customers to realizethe many value drivers against muchwider proportion and better classificationof organizational spend. This includes:• Cost reductionValue Proposition• Supplier rationalization• Improved compliance• Greater total spend coverage• Process efficiency© SAP 2007 / Page 20

Key xApp Spend Analytics Screen ShotsRole-based dashboardFull Report ViewSavings drill downxAppSpend SRMAnalyticsInitiate sourcing event© SAP 2007 / Page 21

SAP Spend AnalyticsKey Solution Capabilities and Benefits• Turning Spend Insight into SavingsHighlights• Position into SAP or non-SAP account and a good way toturn the procurement conversation and interest to thefinancial organization• SAP xApp Spend Analytics is a comprehensive solutionoffering new technology and bundled services thataggregates, normalizes, classifies, and enriches spend data.Leveraging SAP’s powerful NetWeaver/BI platform andAdobe Flex UI, SAP xApp Spend Analytics providesextremely easy to use, robust, flexible analytics to helpcompanies identify spend, drive sourcing strategy, andreduce costsCommon Customer Pains Addressed• Inability to gain visibility into global spend• Difficulty aggregating data from disparate systems• Poor data quality• Difficult for business users to dynamically access evolvinginformation needs• Difficult to select the right suppliers due to unreliable, out-ofdateinformation© SAP 2007 / Page 22Value Proposition• Enables companies to identify sourcing opportunities, thenprioritize and define their sourcing strategy.• Enables companies to fully leverage their entire spendwhen negotiating with suppliers.• Enables companies to monitor and correct contract noncompliance• Sourcing and Procurement industry leaders (across rangeof capabilities including spend analysis) realize 2.7% moreannual cost reductions than average companies, and 9%greater operating income (ASUG Benchmark).• 2%-12% savings opportunity for additional spendanalyzed, and 7% savings associated with increasedcontract compliance due to visibility (AberdeenGroup).

SAP E-Sourcing SolutionSAP E-SourcingSpend Visibility &AnalysisProject & ProcessManagementSupply MarketLeverageSourcing /NegotiationContractManagement &Compliance• Monitor CommoditySpend• Standard &ConfigurableReports• Export to PDF & MSExcel• Consistent easy touse interface• Standardize projectprocess: steps,tasks, owners, duedates, etc.• User dashboards• Centralize allsourcing projectmanagement• Supplier selfregistration• Supplier portal: singleentry point for all bidand contract activities• Manage prospectivesupplier database• Simple to complexRFX events• Business scenarioaward optimization• Reverse andforward auctions• Total costmodeling• Contract authoring• Utilize standardtemplates andclause library• Collaboration andapproval workflows• Compliancetracking© SAP 2007 / Page 23

SAP eSourcingKey Solution Capabilities and Benefits• Fast, flexible and sustainable sourcing using SAP E-SourcingHighlights• Position into SAP or non-SAP account and great for netnewERP deals to improve overall implementation of usersand access• Hosted solutions so customers are up and running withinweeks• Key Customers: Abbott Labs, Canadian Pacific,Cephalon, General Mills, Synopsys• Non-SAP references: 75% of the customer base is non-SAP!Common Customer Pains Addressed• Inconsistent use of best practices and processes acrossprocurement employees and/or spend categories• Lack of visibility into key projects and milestones• Lost savings opportunities by not creating adequatecompetition amongst potential suppliers• Manual, time-consuming processes create procurementbottlenecks for budget stakeholders• Inability to comply or prove compliance with regulations orpolicies© SAP 2007 / Page 24Value Proposition•Reduced supplier costs through competitivebidding and best-value award decisions•Increased compliance and reduced risk usingworkflow-enabled, auditable sourcing processes•Reduced cost-of-ownership by running SAP fora closed-loop process to manage strategicsourcing process: ->request->source->award->purchase transaction•Increased internal service levels, bycollaborating closely with other businessfunctions, and by reducing the cycle time tocomplete sourcing processes

Office of the CFO PortfolioCompliance and RiskStrategy (GRC Suite)GRC Access ControlsGRC Process ControlGRC Risk ManagementGRC Global TradeServicesGRC Environmental(EH&S, CfP, and xEM)PerformanceManagement (CPM Suite)SAP Strategy ManagementSAP Planning andConsolidationSAP Business ProfitabilityMgt by AcornCost Containment &Efficiencies(Spend Optimization)SAP eSourcingSAP Spend Analytics (xSA)© SAP 2007 / Page 25

Close the Performance Gap with SAPGain ControlUSEfor business productivityADAPTto support rapid changesPREDICTfor maximum resultsThe right approach plus technology optimizesperformance for the finance organization© SAP 2007 / Page 26

Thank you!© SAP 2007 / Page 27

Copyright 2007 SAP AGAll rights reservedNo part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changedwithout prior notice.Some software products marketed by SAP AG and its distributors c ontain proprietary software components of other software vendors.SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as theirrespective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned andassociated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy,and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, orother items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties ofmerchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitationshall not apply in cases of intent or gross negligence.The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in thesematerials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pagesWeitergabe und Vervielf ältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durchSAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.SAP, R/3, mySAP, mySAP.com, xApps , xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erw ähnte SAP-Produkte und Servicessowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erw ähntenNamen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zuInformationszwecken. Produkte können länderspezifische Unterschiede aufweisen.Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderenVereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmtenGeschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung f ür Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht dieRichtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gew ähr, wederausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gew ährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zwecksowie f ür die Gew ährleistung der Nichtverletzung geltenden Rechts.SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung f ür direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendungdieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.Die gesetzliche Haftung bei Personenschäden oder die Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinkszugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gew ährleistungen oder Zusagen überInternetseiten Dritter ab.Alle Rechte vorbehalten.© SAP 2007 / Page 28