Post on 13-Jul-2015
Delivering Real-Time Business Value
for Public Sector SAP Business Suite Powered by SAP HANA
July 2013 Public
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 4 Public
SAP Business Suite powered by SAP HANA The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
Cloud Social
Big Data Mobile
One platform bringing it all together
Advanced
analytics
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5 Public
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 Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 6 Public
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 Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
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Highest real-time
business value
for public sector
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 7 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 9 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 11 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 12 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 13 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 14 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 15 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 18 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 19 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 20 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 22 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 23 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 24 Public
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.
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 25 Public
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