Strategic Enterprise Management SEM010 - EN - 30A - FV

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Release SEM 3.0A
June 2001
Material Number 50049560
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3 days
SEM / BW Integration
3 days
Strategic Enterprise
Management
3 days
Business Information
Warehouse (BW) Management
3 days
Business Information
Warehouse (BW) Reporting
4 days
Business
Planning & Simulation
3 days
Corporate Performance
Monitor
5 days
Business Consolidation
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2 days
Delta Course: SEM
2.0 > 3.0
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The training materials are not self-study programs. They complement the course instructors
presentations and explanations and include space for noting any additional information.
There may not be enough time to do all the exercises during the course. The exercises are intended to
be additional examples of concepts that are dealt with during the course. Participants can also use
them to extend their knowledge after the course.
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In the past, competition between companies was focused on their products and the respective product
markets. Historically, these product markets have been limited in respect to size and geographic
location.
Accordingly, the traditional approach to enterprise management has been focused on the internal
processes concerned with the development, manufacturing and selling of the companys products
within the local market. The operational management of these internal processes was seen as the
cornerstone of competitive advantage and corporate success.
How did such organizations measure this "success"? Depending on the efficiency of the internal
processes, a profit was either generated or not. This being the case, success was measured by a
companys ability to generate a profit from its products.
Such an approach known as the "inside-out " approach has become outmoded in the modern
competitive environment and is inadequate due to:
Concentration on the historic success of the business (without looking forward)
External influences not formally captured
More often than not, it is a purely financial approach (ignoring or not giving as much weight to
non-financial indicators)
Promotion of short-term, tactical management with little understanding of whether the operational
"success" will lead to the success of the companys overall strategies and vision
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Due to globalization several change processes in the business environment have started and are still
ongoing.
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The competition in the product markets has intensified as products and services are increasingly
sold globally.
Product life cycles have accelerated significantly and demand a far more streamlined researchand-development process.
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More and more companies seeking funding in the capital markets, thus increasing the offered
investment opportunities.
The transparency of the capital markets has increased and todays shareholders can better
compare the profitability of particular investments. This is true not only for large institutional
investors but also for the increasing number of small private stockholders.
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The mobility of qualified employees has increased. People can choose their employer more
freely today.
On the other hand, companies can obtain labor from many places in the world.
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Globalization has proved to be a double-edged sword, offering benefits but also new challenges to
businesses and their managers.
In particular, any business organization today has to satisfy its stakeholders including its
shareholders; otherwise management teams can rapidly find themselves in trouble. In particular,
institutional investors today have a great deal of power and are not afraid to use it to replace
management teams who under-perform.
Also, other stakeholder groups, such as business partners, customers, employees and communities,
are becoming more demanding. Considering that a bad reputation in the employee market, the
business partner market, the customer market or generally in society can significantly hurt a
companys ability to conduct business successfully, management has to consider carefully what
stakeholders expect from their company when they are going to make major business decisions.
Therefore, we have experienced over the last couple of years a major shift in enterprise management
best practice. Rather then managing a company with a purely LQVLGHRXW approach by assuming good
product development, efficient production and service processes are sufficient to achieve corporate
success, a real understanding of stakeholder expectations and the ability to outperform them
constantly is perceived today as a key indicator for managements success. This is turning around the
enterprise management process from an LQVLGHRXW to an RXWVLGHLQ approach.
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The bottom line is that your stakeholders all expect your organization to generate value for them.
Why else should they bother investing their money, time or effort?
Depending on which set of stakeholders you are talking about this could mean value in terms of a
better total return to shareholders (TRS), consistent increases over time in Earnings per Share (EPS),
higher bonuses for employees, job enrichment, environmental regeneration of a derelict site,
producing products that are at the right place at the right time, etc.
In other words, the company needs to create a focus around Value Based Management (VBM),
whereby all employees are aligned around a strategy of creating value. By doing this it will be easier
to justify your position within the value chain.
Additionally, by creating value, you are creating a virtuous circle for your company. If you are seen
to create value and have potential to create further value, then people will want to invest in you. This
means that you will be able to get capital at a reasonable rate, which you can then put into place
(invest) to drive your future value-creating strategies, promoting a virtuous cycle and attracting even
greater capital flow. The success of American companies in creating these virtuous circles over the
last decade has been the main reason for the majority of the global flow of capital going Stateside.
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Taking into account the fate of those who disappoint the market, it is hardly surprising that the issue
that preoccupies most executives is how they can ensure that they provide added value to their
shareholders.
Evidently, the first step to ensuring that we add value for our stakeholders is to discover what their
expectations are in the first place. We can then analyze any value gaps between their expectations
and reality and take action.
A corporation can deliver value to their stakeholders if they manage the business by creating a focus
on the key value drivers. For this reason, strategy has become the most important issue in enterprise
management today. With your strategy, you are able to determine the mid- to long-term direction of
your company and ensure that you are putting into place the investment required today for future
growth.
Nonetheless, even with the right strategy, you are not guaranteed competitive advantage in
stakeholder markets. In the information age strategy can no longer be a secret. Failure to effectively
communicate your plans can lead people to assume you have none. In turn, investors may sell their
shares.
Therefore, the key to competitive advantage is the ability to execute strategy faster and more
successfully than your competition. The enterprise which is able to deliver on a new strategy faster
and in a more reliable way than the competition is likely to be able to generate much more value for
its stakeholders.
Having implemented a strategy that aims to maximize the overall shareholder value of a corporation
we need to ensure that this added value is measurable; otherwise, how do we determine the success
of the strategy?
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Having agreed that strategy is vital for setting the direction and priorities of the business and having
decided on a corporate strategy, the challenge for management is to make the strategy work. Some
sources have indicated that less than 10% of strategies successfully formulated are effectively
implemented.
How can we ensure that our strategies are successful?
Strategic planning needs to be translated into meaningful operational targets for all employees of
an organization. By translating strategy, we will create meaningful objectives for our employees
and therefore align our human resources around our strategy. The target setting must refer to
operational value drivers that can be influenced by the employees.
In addition, we need to ensure that the strategy is funded; therefore, we need to align financial
resources of the enterprise around the strategy. Moreover, we are going to be interested in driving
the strategy forward and monitoring success in which case strategic projects / initiatives should be
linked to the financial resources and, therefore, be part of the budget.
A continuous performance monitoring process is necessary to detect deviations between

operational business execution and target setting. Based on the analysis of these deviations
management needs to act in order to steer the company back on course, or, in other words, "close
the loop" by acting on the information that we have gathered from our performance monitoring.
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The successful implementation of strategy requires that everyone in the organization knows what he
or she has to do to support overall strategy and understands the related targets. This creates a
strategic focus.
Here a vision for such organizational alignment:
Imagine every employee in the organization knowing exactly what the strategic objectives of their
department are (reflected in a department scorecard).
The employee would define together with their manager their personal targets within the
framework of the departments targets. Their personal objectives and targets would be put into an
electronic version of a personal scorecard assigned to their workplace on the intranet.
Information about performance on targets would be sent to the employees scorecard

automatically. If major variances from targets occur, they would informed immediately via alerts
to their workplace. Via e-mail or video conferencing they would be able to immediately contact
other colleagues at any location to discuss the issue and decide on corrective actions.
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This would be a very powerful technique, not only to make sure that everyones activities in the
organization are aligned with the strategy, but to create an environment that stimulates collaboration,
knowledge sharing and communication between people who need each other to be successful.
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The major focus of a SEM environment is the seven main drivers of Shareholders value (Rappaport).
The key to having this level of visibility and managing a company or a business unit according to
VBM principles is the ability to identify the relationships between the key value drivers of a business
and the measures of the operational business execution. The key value drivers according to Alfred
Rappaport are illustrated.
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Basically, management decisions in the operations, investment and financing areas influence the
seven key value drivers, which then impact corporate value.
This method is looking at the Shareholder Value Added (SVA) / Discounted Cash Flow (DCF)
approach to corporate valuation. The benefit of this approach is that we are looking at IXWXUH cash
flow generation at PXOWLSOH OHYHOV of the business (HJ, at business unit level, for the whole
company, etc.). By analyzing the likely cash flow at these levels, we can determine which strategies
are likely to generate an acceptable rate of return and so provide added value to our shareholders.
This method of valuation is increasingly being used by the financial markets as the key method for
determining an enterprises future value potential.
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Leadership from the Top

Common Objectives
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SAP AG 2001
In essence, we are talking about a new type of management process that we need to follow to help us
carry out the tasks (take into account expectations / implement strategy successfully / manage and
monitor results) that will gain us competitive advantage and create value for our stakeholders.
Beginning with the Research and Planning box and working counter-clockwise, management needs
to determine where we currently are as a business (versus the competition) and the expectations of
our stakeholders.
Having determined our current position, and taking into account our stakeholder expectations, the
management team then needs to determine where they want the business to be in X years time. They
can then develop strategies to help them reach this future target.
Having established the corporate strategic priorities, these priorities are cascaded down through the
business units. Top management now has to be able to communicate strategy quickly to all
employees so that they can understand how the new strategy effects their day-to-day work and how
they can help to implement the strategy successfully. As part of this process, personal goals and
incentives across the entire organizations have to be aligned with strategy otherwise nothing will
happen. Likewise, financial resources also have to be aligned around the strategy for successful
implementation.
The Business Execution System has to be adapted according to the strategy. You have to focus on
those areas in the business execution systems and improve or establish those processes that are
critical to make the strategy happen.
Finally, the enterprise should establish a continuous feedback loop, which allows the entire
organization and the management team to learn constantly from strategy implementation and adjust
tactics and strategy quickly where and when it is necessary.
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In essence, we are talking about the next level in the evolution of systems that support the strategic
management of enterprises.
Many organizations have moved in the last few years from a pure report-based management system
(where you look at monthly management report to know whether you have performed well compared
to the budget) to a rolling forecast-based management system. This has enabled organizations to
adapt resource allocation and business activities or to market organizational changes during the
planning period (usually the fiscal year), and has made them more flexible.
The next step is to move to a real dialog-based management system, which allows organizations to
adapt very quickly to changes when early warnings occur (for example, alerts from leading key
performance indicators or alerts from operative levels that were not communicated to management in
the past).
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SAP Strategic Enterprise Management (SEM) is a mySAP.com application component that

completely supports strategic enterprise management processes in an organization on all the relevant
levels.
It is located in the SAP solution map on the top Enterprise Management layer because strategy
should determine the business execution system (for example: On which operative business
processes do we have to focus for automation?).
It comprises five functional software components that allow tight integration of SEM processes
(component architecture). The SAP SEM application is underpinned by the SAP Business
Information Warehouse (BW). All functions of the SAP SEM components can operate on one or
several SAP BW InfoCubes.
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processes.
Focus:
Develop strategies that meet stakeholder demands and manage execution (translate into action).
Dedicate resources (capital, employees) so that this process generates returns above cost of capital
/ stakeholder expectations.
Constantly monitor and manage performance and adapt strategy.
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Strategic business planning at top level leads to corporate target setting that is then cascaded down
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KPI = Key Performance Indicator
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SAP AG 2001
ComTelStar is an international manufacturer of telecommunications equipment.
The company is a leading user of value-based management principles and has had SAP SEM in
place for one year.
In a period of global economic uncertainty, European stock has become increasingly attractive to
global markets, and telecommunications is generally viewed by brokers as a low-risk investment.
As a result of the conditions described above and steady performance in recent years, ComTelStars
Stock has significantly outperformed the market for the last six months and is now at an all-time
high.
The continued success of ComTelStars stock presents management with a challenge: Can they
continue to meet the markets expectations and present a credible strategy to deliver the required
future performance? If not, they will lose the confidence of the markets and the share price will fall,
destroying shareholder value.
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SEM010
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An example of the corporate SEM process at ComTelStar is as follows:

First, the company regularly collects external information from the financial community in order
to understand their expectations.
The management team then maps this information against their own business expectations and
recognizes that the company s own business plan needs revision because there is a significant
value gap between the market s expectations and the company s.
The management team meets within the management cockpit environment, which has been
supplied and discusses new information with regards to possible new marketing opportunities.
This will help the team find ways to close the value gap. The result of the meeting is that the
management team has identified one specific market segment (the youth market) in the consumer
mobiles business that has excellent growth potential.
Interested in the potential of this strategy, the management team asks the Strategic Business Unit
(SBU) planning manager to carry out a feasibility study and develop rough resource plans, which
will ultimately help to create a business plan and a calculation of the added value of such an
initiative.
The result clearly shows that with this new market development initiative, the company would not
only be able to close the value gap, but will exceed market expectations within 36 months.
The management team decides to start this initiative and approve the related budget. Together
with input from the management team, the SBU planning manager defines appropriate Key
Performance Indicator (KPI) targets for everyone in the organization to make sure that the
company can successfully put the strategy into place.
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SEM010
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As part of his daily management routine, Rob, the investor relations manager in ComTelStars
corporate headquarters, monitors the views of external analysts using the Editorial Workbench
within SEM-Business Information Collection (BIC).
In particular, Rob accesses information from the Web site with regards to key growth assumptions,
which the company will use in evaluating the markets expectations of future performance.
Additionally for reasons of qualitative analysis Rob copies some textual information from the
Web site to provide background information to the planning manager when the manager assesses the
markets expectations.
This information is then attached to appropriate business objects and stored in the SEM database for
easy future retrieval.
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SEM010
2-25
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SAP AG 2001
At the next strategic review, the Chief Financial Officer (CFO) and his analysts use SEM-Business
Planning and Simulation (BPS) to retrieve the latest performance forecasts (as supplied by Rob)
from the SEM database.
They compare this information with trend data from SEM-BPS and market intelligence gathered in
SEM-BIC in order to project future cash flows. They then perform a discounted cash flow analysis to
arrive at an internal valuation for the company.
This internal valuation is compared with the results of the market analysis, which is a separate
planning and calculation model, where the input parameter has been the analysts consensus growth
expectations and the output parameter has been cash flows. On the planning sheet the CFO can easily
compare the company s value based on the actual corporate five-year plan and the analysts
expectations.
The internal valuation takes into account the value that will be generated from two strategic
initiatives already agreed upon: a global cost reduction program and the launch of a new product (the
mini mobile). The variance between the two valuations is the value gap the company value based
on analyst expectations (reflected in the actual share price) is much higher than the value reflected in
internal valuations. The value gap must be closed in order to maintain the current value of the
corporation
The CFO asks each SBU to identify two initiatives to generate additional value in order to close the
gap. These are to be presented together with business justifications at the next management meeting.
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SEM010
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This slide demonstrates the action that needs to be taken on discovery of a "value gap." In essence,
we can do one of two things (inaction is not an option):
&ORVH WKH YDOXH JDS This is the most attractive option in terms of outcome but the hardest to
achieve. The assumption is that we have some capacity within the business to come up with
previously unidentified value-creating initiatives in order to bridge the value gap.
$GPLW WKH YDOXH JDS This option assumes that we have attempted the first option (close the
value gap) but failed to identify new initiatives to bridge the gap. In order to keep the damage to a
minimum, we need to lower market expectations.
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One way or another it is important to close the value gap. If we do nothing, and the market receives a
surprise during the earnings season, then we are likely to see a plunge in confidence in the company
and its management, and a resultant free-falling share price. Investors will be less likely to invest,
which may rob the company of the fuel it needs to power future growth.
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SEM010
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SAP AG 2001
The two proposals from each SBU manager are presented in the Management Cockpit (MC) room at
the next management meeting
For every proposal, a scenario was set up in the MC software to present both financial and nonfinancial information (such as market information). The flight deck is used to show sensitivity of key
value drivers and simulate overall value contribution and risk exposure for each initiative.
Market analysts from the Consumer Mobiles SBU have used SEM-BIC to monitor industry trends.
They identify increased interest in mobile communications among the under-25 youth market of
students and teenagers. As the marketing activity has previously been targeted at the lucrative
business community, this is identified as a potential opportunity for market development.
As a result of this analysis, both initiatives are stored in the SEM database so that their contribution
to closing the value gap can be analyzed in detail, and related market and internal information can be
displayed using the SEM-Corporate Performance Monitor (CPM) Management Cockpit.
The most attractive proposal is the Consumer Mobiles SBU s initiative to enter a new market
segment the youth market which is deemed to have excellent growth potential. Greg, the
consumer mobile SBU manager, is asked to come up with a detailed business case.
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Liz, the planning manager of the Consumer Mobiles SBU was asked by Greg to prepare the detailed
business plan for this new initiative and to calculate the likely added value. To do this she has to
have an idea of the likely sales volumes within the planning period (36 months) and the likely
resources needed in production, customer support, etc. This will provide cash flow information that
can then be discounted and compared for the added-value figure.
Together with people from marketing, Liz uses the simulation capabilities of SEM-BPS to model the
sales volumes generated by different levels of marketing expenditure. The dynamic simulation tools
in SEM-BPS make it possible to model the effect of different drivers on sales volume. The number
of customers that can be marketed to will decrease as sales increase. This will act as a balancing loop
to prevent the adoption rate from growing exponentially.
After using this model to calculate sales volumes and the necessary marketing expenditure, the
information is posted from the model directly to the SEM database. Liz then uses the interactive
Excel-in-Place functionality to show the calculated values.
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SEM010
2-29
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What is missing to finalize the plan are figures about necessary resources in support (headcount and
staff cost), manufacturing overhead costs and customer service costs.
For this last part, the planning manager wants to use an activity model to get an idea of the number
of staff needed to support growing customer numbers and the related resultant staff costs, etc. The
Activity-Based Management (ABM) Tool OROS (which is integrated into the planning framework
of SEM-BPS) is used to set up the Consumer Mobile activity cost calculation model to quantify the
level of demand placed upon the activities of the organization by the expected growing number of
customers and sales rates. OROS can pull data (number of customers, sales rates, and other
information necessary to run the ABM model) directly from the SEM database.
The business unit planning manager produces a detailed activity model including the major activities
required to produce the expected product volumes and to serve the customers (e.g. support calls).
Given this activity demand, OROS determines the required resources (number of Full-Time
Equivalents [FTEs], or headcount, and required expenses) in the resource model. Once resource
requirements are determined, expenses flow through Activities to the Cost Objects (products and
services). Here we can then process and analyze an activity-based profitability analysis by
combining product and customer costs and revenues.
This whole planning exercise is finished for all 36 planning periods and the output of the OROS
model (headcount and cost information) is then fed back to the SEM database to calculate a complete
valuation.
The detailed resource allocation plan for the scenario is shown in the Excel-in-Place solution within
the Planning Framework.
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SEM010
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On the basis of the detailed planning that has been carried out, the CFO and his team now revisit the
original value comparison. They find that with this new strategy and the two initiatives already in
place, they are going to be able to bridge the value gap and exceed market expectations.
SAP AG
SEM010
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In order to be able to review performance in the financial area effectively and in a timely manner, the
management team decides that consolidated financial data is needed earlier and more frequently
(consolidated data has been prepared in the past only every quarter, and only for the legal entities).
Ted, the corporate accountant, is now using SEM-Business Consolidation (BCS) to automate
creation of consolidated financial information both for legal and management entities in order to
deliver this information on a monthly basis, shortly after month end. He is using the SEM-BCS data
collection and consolidation monitors to track the progress of the consolidation process and to
process the different tasks.
Once he has completed the largely automated tasks, he is able to produce consolidated results for
each legal entity to meet statutory requirements. Additionally, he is able to produce results for each
product / market combination. This makes it possible to track the cash flow from mobile phones in
each country and each profit center.
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SEM010
2-32
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Michael, the CEO, is interested in ensuring that the new strategy is being implemented quickly and
successfully. Additionally he wishes to be sure that ComTelStar is managing its business on the
operative level in a more forward-looking way and is balancing short-term objectives like profit or
cash flow with long-term objectives, such as increasing customer satisfaction.
In order to make the new strategy, its success factors, and business objectives transparent to
everyone in the organization, Michael asks Greg, the Consumer Mobiles SBU manager, to use the
Balanced Scorecard to communicate the new strategy and define related KPI targets for everyone in
the organization.
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SEM010
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Liz and Greg get together to define their strategic priorities, determine how they are going to
translate the strategy into objectives, and decide how they can make this new strategy measurable.
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SEM010
2-34
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SAP AG 2001
Here is how the SBU Scorecard appears after the workshop:
Business Objectives have been defined and and grouped into four perspectives (Financial,
Customer, Internal and Learning & Growth). At this moment, no status icons are displayed
because we are still in the modeling and planning phase.
From this master scorecard the Balanced Scorecard of every employee of the division can be
created. This is intended to make sure that everyone in the organization contributes to the success
of this very important market development effort.
SAP AG
SEM010
2-35
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SAP AG 2001
In order to communicate the new strategy within the SBU and to describe what everyone needs to
contribute for the success of the strategy, a cause-effect-chain has been created within the
Scorecard. This clearly shows the dependencies between the various objectives and helps people to
understand how they can have a direct impact on success.
For example, the objective Build Strong Customer Relationship is dependent on the timely buildup of an appropriate Support & Delivery Infrastructure. Therefore, the people responsible for the
setup of this infrastructure understand that their work is crucial to the success of the Marketing and
Customer Service teams.
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SEM010
2-36
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SAP AG 2001
Lastly for each objective, measures are defined to make the strategy measurable and also to track
performance related to these objectives.
Due to the tight integration between SEM-CPM Balanced Scorecard and SEM-BPS Business
Planning and Simulation, the scorecard can immediately display the plan values for the various
measures and period.
Greg is now able to define stretch targets in certain areas where he feels that out-performance of
initial targets would be crucial to generate value for the corporate center and for investors. Those
adjusted plan values are stored in the SEM database and can be used as a starting point in SEMBPS to create a revised business plan and to adjust the overall plan accordingly.
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SEM010
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Once complete, Greg can use the SBU Scorecard attached to his workplace to regularly review the
performance and the implementation status of the new strategy. In this way, he will understand
which critical areas on which he must personally focus.
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SEM010
2-38
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SAP AG 2001
In Gregs Scorecard, the four perspectives are shown with related objectives and their respective
status. The status of the objective Build strong customer relationship is indicating underperformance (red Poor icon). He decides to investigate this further within the cause-effect-chain.
SAP AG
SEM010
2-39
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SAP AG 2001
In the cause-effect-chain for the theme Target Youth Market, Greg notes that poor Customer
Relationships may in the future have a negative impact on the objective Increase Market
Leadership.
Additionally, he sees that the below-target customer relationship performance (as measured by a
customer satisfaction index) may have resulted from problems with the Build up of the Support and
Delivery Infrastructure.
From his analysis, he immediately understands what is at stake and where he needs to personally
concentrate his attention.
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At ComTelStar, the Balanced Scorecards are now used by every decision maker in the company to
help them to monitor performance and take corrective action in a timely fashion.
Michael, the CEO, is also using the Management Cockpit room for his regular management team
meetings to check if the company as a whole is on the right track and to decide immediately any
necessary corrective actions.
The MC application is used in the Management Cockpit room (using the same data from the SEM
database as in the individual Balanced Scorecards, plus additional information) to support the
management team meetings.
Michael has also initiated the use of the MC room for the team meetings of the project teams who are
responsible for the various strategic initiatives.
SAP AG
SEM010
2-41
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SAP AG 2001
The Management Cockpit has several walls.
The main logical view is the black wall. The black wall shows financial and value metrics, HJ,
Economic Value Added (EVA) by region. All of the relevant financial measures (leading
measures) are looking relatively strong.
However, leading indicators such as customer satisfaction are not looking as favorable (same as in
the SBU Balanced Scorecard).
The management team investigates the white wall to track the progress of the youth market
development program. These performance measures provide some clues to overall performance.
The marketing campaign for the youth market has proved successful. However, the increase in
demand has proved to be too much for the existing production capacity and order to delivery
time has increased significantly as a result. SBU management has already reacted by dedicating
more resources for production.
The white wall also shows early signs that the marketing campaign is working well in Germany
and the UK, but is less successful in southern Europe. On the basis of this information, the
management team decides to launch a new advertising campaign specifically targeted at southern
Europe in order to meet sales targets in this region.
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SEM010
2-42
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If the management team finds anything that catches its eye and wishes to drill down and query the
database, they could utilize the Business Explorer tool in the Business Information Warehouse (BW).
This is delivered as part of the SEM-CPM component.
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The investor relations team updates the analyst extranet using SEM-Stakeholder Relationship
Management (SRM). This makes key information available to market analysts and investment
brokers.
The browser provides details of the new initiatives and key financial statistics to ensure that the new
strategy is reflected in the market valuation of the firm.
The second-half sales were good, but not spectacular. However, the investor relations department
kept the brokers closely informed and there were no surprises. The last quarterly investors briefing
was very positive. Selected brokers, fund managers and financial journalists were invited into the
Management Cockpit and given an update on key initiatives undertaken in the last 12 months. A
presentation of the expected outcomes was made using the flight simulator capabilities on SEMBPS.
The investor community is impressed with the information they have received and are convinced that
good corporate governance reigns at ComTelStar.
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Entry screen to ComTelStars investor relations homepage.
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On the basis of the information he has received, one of the most influential analysts changes his
recommendation from hold to buy.
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Twelve months later, the CFO and the CEO meet. The share price has not only maintained its value,
but continues to grow. Investors remain convinced that ComTelStar has the ability and potential to
continue adding value. In part, this is due to the good corporate governance exhibited, the confidence
this brings, and the ability of the company to get a high return on management effort.
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At the conclusion of this exercise, you will be able to:

Understand the purpose of the different SEM components
As part of the management team for the Diabetes Division within the
PharmaStar Corporation, you are concerned by the sudden fall in
profitability and market share for your two key product lines humanbased insulin and animal-based insulin.
Before you try to work out your strategies and business plan for the
coming years, you first decide to work out exactly what the situation is
today (we are assuming that we are at the beginning of 2001, reviewing
the year 2000 figures). You start by reviewing the year 2000 figures and
then spend some time getting to know the newly installed SEM system in
more detail.
1.
&OLHQW
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Log on to the SEM system using your assigned user name: 6(0;
your group letter and ## your group number)
(where X is
:LOO EH SURYLGHG E\ \RXU WUDLQHU
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QXPEHU ZLOO EH SURYLGHG E\ \RXU
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Your user menu has been set-up with a number of Favorites. Some of these Favorites
are Business Information Warehouse (BW) reports that have been put together by
central finance administration in order to allow you to quickly review the key Year
2000 results for the Diabetes Division.
2-1 Execute the 'LY 'LDE )< $FWXDO YV 3ODQ report. Analyze the graph and
then enter the values that you find in the box below:
3ODQ
1HW 6DOHV
$FWXDOV
*URVV 3URILW
2SHUDWLQJ 3URILW
2-2
Staying within the report, which SAP Product are we using to run the report
and what is the front end for the report?
2-3
The results you are shown in the graphic are being fed from the Report 30a
worksheet, which is accessing the data from an InfoCube in the BW. Select
the Report 30a worksheet and check the slices of data that you are seeing.
Enter the restrictions that have been made into the box below:
Select the 5HSRUW D tab
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Having briefly seen from your ad hoc analysis to date that the actual figures for
year 2000 were somewhat below plan, you decide to check the Management
Cockpit for the definitive picture of how this has impacted your key measures.
3-1
Access the 3KDUPD6WDU 'LDEHWHV 3URGXFWV Management Cockpit for the

period 12.2000.
3-2
Having opened your Cockpit, you first decide to check how your sales
compared with your competitors sales last year. This will tell us whether
the market is contracting or whether we are the only ones with a problem.
3-3
The 1HW 6DOHV SHU &RPSHWLWRU frame shows us that our sales are
declining and that although this is generally true for the competition, there
is one competitor who has seen their sales increase from April 2000 on.
Which competitor?
3-4
Having looked at the net sales, you now want to see how these lower sales
have impacted your Economic Profit over the last year. Access the
(FRQRPLF 3URILW frame and analyze.
3-5
Within the Economic Profit frame, you learn that Economic Profit stopped
hitting plan during the year. During which period did we first miss plan?
Exit the Cockpit after having done this.
Before moving on, you decide to refresh your mind with regard to how Economic
Profit is created within your company. This will help focus your mind on the task
of recovering the divisions profitability. To do this, you decide to access the Value
Driver Tree (VDT).
4-1 Access the 0DQLSXODWLQJ (FRQRPLF 3URILW Value Driver Tree.
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What is the definition of the 6WUDWHJ\ 9DOXH &UHDWLRQ )RFXV Value

Driver? How does this impact Economic Profit?
4-3
How is the 6WUDWHJ\ 9DOXH &UHDWLRQ )RFXV Value Driver impacted by

factors such as Compensation and Job Enrichment?
4-4
What do you think is the point of Value Driver Trees?
4-5
Exit the Value Driver Tree.
SEM010
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Having determined that last year was not one that will make it to the PharmaStar
Top Ten Favorite Years, you decide to familiarize yourself with the options
available to you in SEM to help build more value in the future.
5-1
Before you start trying out different planning/strategy scenarios you need
to do some external research to see whether the market is worth staying in
or whether it is likely to contract anyway. You will carry out this research
later using SEM-BIC. What does the acronym BIC stand for and which
menu options are available under BIC in the system?
5-2
When you come to carry out the different what-if scenarios, you will be
doing most of this work in SEM-BPS. What does the acronym BPS stand
for? Which menu option takes us directly through to the Planning
Framework where we configure the structure of our planning environment
and link these structures through to the BW?
5-3
When reporting, you have three main options in the system: the Balanced
Scorecard, the Management Cockpit and the Business Explorer. Which
SEM component(s) do these tools belong to? Which of the three tools is
seen as the strategy management tool and which is seen as the
performance measurement tool?
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5-4
Assuming you put some strategies into place that are going to be
successful, you will no doubt want to tell your stakeholders what you are
doing to improve performance. Which of the SEM components would you
use to do this and what are the options within this components menu?
5-5
Finally, you note that there is a Financial Consolidation component. What

is it? Why do you think that a Financial Consolidation tool may be
appropriate for a Strategic Enterprise Management system?
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Understand the purpose of the different SEM components
As part of the management team for the Diabetes Division within the
PharmaStar Corporation, you are concerned by the sudden fall in
profitability and market share for your two key product lines humanbased insulin and animal-based insulin.
Before you try to work out your strategies and business plan for the
coming years, you first decide to work out exactly what the situation is
today (we are assuming that we are at the beginning of 2001, reviewing
the year 2000 figures). You start by reviewing the year 2000 figures and
then spend some time getting to know the newly installed SEM system in
more detail.
1.
Log on to the SEM system using your assigned user name: 6(0;
your group letter and ## your group number)
(where X is
Access your SAP logon pad. Double click on the relevant server as directed by your
trainer.
Enter the following data:
&OLHQW
8VHU
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:LOO EH SURYLGHG E\ \RXU WUDLQHU
6(0; JURXS OHWWHU DQG

QXPEHU ZLOO EH SURYLGHG E\ \RXU
WUDLQHU
WUDLQLQJ
Select &RQWLQXH to log on.
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Your user menu has been set-up with a number of Favorites. Some of these
Favorites are Business Information Warehouse (BW) reports that have been put
together by central finance administration in order to allow you to quickly review
the key Year 2000 results for the Diabetes Division.
4-6
Execute the 'LY 'LDE )< $FWXDO YV 3ODQ report. Analyze the graph
and then enter the values that you find in the box below:
Within the )DYRULWHV menu option, or under 3KDUPD6WDU D %H[
5HSRUWV (as directed by your instructor), double click on the 'LY 'LDE
)< $FWXDO YV 3ODQ report.
Once the report has run and the graph has appeared, view the results. They
should appear (rounded) as shown in the box below (results may vary):
1HW 6DOHV
$FWXDOV

*URVV 3URILW
2SHUDWLQJ 3URILW
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3ODQ 90

Staying within the report, which SAP Product are we using to run the report
and what is the front end for the report?
We are using the BW Business Explorer / Analyzer (BEx) to run the report.
The standard front end for BEx reports is Excel.
2-3
The results you are shown in the graphic are being fed from the Report
30a worksheet, which is accessing the data from an InfoCube in the BW.
Select the Report 30a worksheet and check the slices of data that you are
seeing. Enter the restrictions that have been made into the box below:
Select the 5HSRUW D tab
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Exit the BEx report.
Select )LOH ([LW to leave the report. Select 1R if asked whether you
want to save any changes.
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Having briefly seen from your ad hoc analysis to date that the actual figures for
year 2000 were somewhat below plan, you decide to check the Management
Cockpit for the definitive picture of how this has impacted your key measures.
5-1
Access the 3KDUPD6WDU 'LDEHWHV 3URGXFWV Management Cockpit for the

period 12.2000.
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Having selected the Cockpit by double clicking, use the drop-down menu
for the &XUUHQW 3HULRG to select 2WKHU. Then type into the
Period field and continue.
5-2
Having opened your Cockpit, you first decide to check how your sales
compared with your competitors sales last year. This will tell us whether
the market is contracting or whether we are the only ones with a problem.
Within the Black Wall, open the Growth Logical View.
Double click on the 1HW 6DOHV SHU &RPSHWLWRU frame
5-3
The 1HW 6DOHV SHU &RPSHWLWRU frame shows us that our sales are
declining and that although this is generally true for the competition, there
is one competitor who has seen their sales increase from April 2000 on.
Which competitor?
Competitor B (as represented by the red line).
3-4
Having looked at the net sales, you now want to see how these lower sales
have impacted your Economic Profit over the last year. Access the
(FRQRPLF 3URILW frame and analyze.
Return to the Overview screen by selecting the %DFN WR RYHUYLHZ icon (upper
left-hand corner).
Open the Profitability Logical View and double click on the Economic
Profit frame.
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3-5
Within the Economic Profit frame, you learn that Economic Profit stopped
hitting plan during the year. During which period did we first miss plan?
Exit the Cockpit after having done this.
Plan is denoted by the color green. Therefore, the first period that we missed
plan was period seven. However, we should have noted that economic profit
was consistently falling from period four onward.
Select the yellow arrow to exit the Cockpit.
Before moving on, you decide to refresh your mind with regard to how Economic
Profit is created within your company. This will help focus your mind on the task
of recovering the divisions profitability. To do this, you decide to access the Value
Driver Tree (VDT).
4-1
Access the 0DQLSXODWLQJ (FRQRPLF 3URILW Value Driver Tree
6(0 &RUSRUDWH 3HUIRUPDQFH 0RQLWRU 6WUDWHJ\ 0DQDJHPHQW

9DOXH%DVHG 0DQDJHPHQW 9DOXH 'ULYHU 7UHH 7$6(0
(FRQRPLF 3URILW 0DQLSXODWLQJ (FRQRPLF 3URILW (double click to display
the VDT)
4-2
What is the definition of the 6WUDWHJ\ 9DOXH &UHDWLRQ )RFXV Value

Driver? How does this help impact Economic Profit?
Run your mouse over the Strategy/Value Creation Focus Value Drive; the
definition is:
The fact that members of the Finance function are being freed up means
that we move ever closer to our goal of the finance function being a 'strategy
and value identification' support unit, enabling non-financial managers to
identify value-creating opportunities.
Freed-up Finance managers will be able to advise/educate the business with
regards to what value is and how we create it. This will impact Economic
Profit by enabling non-finance managers to identify value-creating
opportunities, which will in turn help us to employ our capital more
profitably.
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How is the 6WUDWHJ\9DOXH &UHDWLRQ )RFXV 9DOXH 'ULYHU impacted by

factors such as Compensation and Job Enrichment?
Examine the tree and note which value drivers impact Strategy / Value
Creation Focus. Run your mouse over the relevant ones to read the details
Levels of Compensation and Job enrichment will help to motivate staff.
Motivated staff give better customer service, and the resulting happier
customers usually pay their bills on time (or at least are more likely to). If
this is the case, perhaps we can outsource credit management and free our
Finance managers up as already explained.
The other two branches of the tree are telling a similar story (happier
customers buy more and therefore they help Revenue. Additionally, because
we may be able to outsource credit management, we can free up the capital
we previously had tied up there and invest it elsewhere).
4-4
What do you think is the point of Value Driver Trees?

Value Driver Trees exist to help us understand the links between the
qualitative, softer factors (such as motivation) and the quantitative, harder
factors (such as economic profit, ROCE, etc.). By building such trees, we
can explain to our employees how we create value in an environment that
is always asking us to justify our position in the value creation process.
Weightless, intangible assets account for around 85 percent of a
companys market capitalization value; the VDT helps us to work out how
we can manage these weightless assets to drive that value.
4-5
Exit the Value Driver Tree.
Select the green %DFN arrow to exit the VDT.
Having determined that last year was not one that will make it to the PharmaStar
Top Ten Favorite Years, you decide to familiarize yourself with the options
available to you in SEM to help build more value in the future.
5-6
Before you start trying out different planning/strategy scenarios you need
to do some external research to see whether the market is worth staying in
or whether it is likely to contract anyway. You will carry out this research
later using SEM-BIC. What does the acronym BIC stand for and which
menu options are available under BIC in the system?
BIC stands for Business Information Collection.
Select the standard menu path 6(0 %,&
BIC has three menu options:
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When you come to carry out the different what-if scenarios, you will be
doing most of this work in SEM-BPS. What does the acronym BPS stand
for? Which menu option takes us directly through to the Planning
Framework where we configure the structure of our planning environment
and link these structures through to the BW?
BPS stands for Business Planning and Simulation.
The standard menu option 6(0 %36 &URVV $SSOLFDWLRQ 3ODQQLQJ
takes us directly through to the planning framework.
5-8
When reporting, you have three main options in the system: the Balanced
Scorecard, the Management Cockpit and the Business Explorer. Which
SEM component(s) do these tools belong to? Which of the three tools is
seen as the strategy management tool and which is seen as the
performance measurement tool?
The Balanced Scorecard and Management Cockpit belong to the
Corporate Performance Monitor (CPM) component. The BEx(Business
Explorer) is a BW tool that we can access via SEM.
The menu paths suggest the answer to the second and third questions:
under 6(0 &30 6WUDWHJ\ 0DQDJHPHQW you will find the
Balanced Scorecard under 6(0 &30 3HUIRUPDQFH 0HDVXUHPHQW
you will find the Management Cockpit.
5-9
Assuming you put some strategies into place that are going to be
successful, you will no doubt want to tell your stakeholders what you are
doing to improve performance. Which of the SEM components would you
use to do this and what are the options within this components menu?
You would use Stakeholder Relationship Management (SRM) to inform
your stakeholders of your progress.
Under the menu path 6(0 650 you will find the following menu
options:
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Finally, you note that there is a Financial Consolidation component. What

is it? Why do you think that a Financial Consolidation tool may be
appropriate for a Strategic Enterprise Management system?
The consolidation component is known as Business Consolidation (BCS).
BCS is an enabler or facilitator for SEM in that it helps us to cut down the
elapsed time between receiving and consolidating our financial data. This
means that the data will be available more readily for reporting and we
can get to the important tasks of learning from our results and taking
action based on those results all the more quickly. BCS also enables us to
consolidate and reconcile results with regard to both legal and internal
management structures.
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Operational Environments (OLTP systems) are characterized by the following criteria:

Detailed transaction data is essential
Current data is essential
Performance requirements are relatively predictable
End users have predictable usage patterns
Data can be tuned for performance
Hardware/software can be tuned based on performance characteristics.
Decision Support Environments (OLAP systems) are characterized by the following criteria:
Integrated data is essential
Historical data is essential
Performance requirements are not predictable
End users do not have predictable usage patterns
Data can be optimized based on performance characteristics
Hardware/software can be optimized based on performance characteristics.
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Business Information Warehouse architecture is described through three layers: extraction,

staging/storage, and presentation/analysis.
Both SAP R/3 Systems and external systems are conceivable as data sources. The extraction of the
data is triggered, controlled and monitored by the Business Information Warehouse. The data
transfer is extensively automated.
The Business Information Warehouse works on a separate database. Here, metadata that can be
preconfigured by SAP R/3 Systems is managed on the one hand. On the other hand, application data
from various source systems is staged and stored in multidimensional relational tables.
Powerful analysis and presentation possibilities are offered on this basis by relational Online
Analytical Processing (OLAP).
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The SAP Business Information Warehouse enables you to analyze data from operational R/3
applications or any other business application, including external data sources, such as databases,
online services, and the Internet.
The SAP Business Information Warehouse supports Online Analytical Processing (OLAP) and,
thanks to its structure, is particularly suitable for processing large volumes of operational and
historical data.
The Business Content functionality, which is optimized to handle core areas and processes, allows
you to examine relationships in every area of your company.
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As components of
the Business Framework, Online Transactional Processing (OLTP) applications

and the Business Information Warehouse communicate using Business Application Programming
Interfaces (BAPI).
Extraction mechanisms that prepare productive data per application for the Business Information
Warehouse exist in an R/3 OLTP.
In external applications, the prerequisites for the exchange of data between applications and the
Business Information Warehouse can be met using separate installations from third-party providers.
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The central data containers that form the basis for reports and analyses in SAP BW are called
InfoCubes. InfoCubes contain two types of data: key figures and characteristics. Each individual
InfoCube should contain a self-contained dataset, since queries always refer to one InfoCube.
An InfoCube consists of several InfoObects and is structued in a star schema, LH, it comprises a fact
table containing the key figures of the InfoCube as well as several surrounding dimension tables that
contain the characteristics of the cube.
An InfoCube is assigned to an InfoArea.
InfoCubes are supplied with data from one or more InfoSources.
A report in the Business Explorer always refers to exactly one InfoCube.
Characteristics that belong together from a logical perspective should be combined into a dimension.
For example, GLVWULFW and DUHD belong to the regional dimension.
As of R3.0, SEM-Business Planning and Simulation (BPS) has a unique component specific
transactional InfoCube.
Through the use of BW query tool, a subset of the InfoCube data is extracted based upon the
selection of characteristic dimensions.
A subset not equal to the entire InfoCube is recommended for optimum performance.
Multidimensional analysis is possible through the use of the BW OLAP processor. In this way the
data can quickly be sliced and diced to allow rapid analysis of the underlying data from multiple
perspectives.
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Data is entered into a data source such as R/3. The InfoCube can then be populated with this data so
that queries and reports can be executed.
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The Administrator Workbench is the tool to maintain, control and monitor the Business Information
Warehouse.
The Administrator Workbench tool is used in all layers of the BW system, including:
Design of all components of the Business Information Warehouse
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The software is structured into five components and features a high level of integration in terms of
the metadata and the application data. SAPs software architecture, the Business Framework
Architecture, guarantees that the individual SEM components can readily use each others
functionality when required.
The SAP SEM System architecture is designed to allow access to all the principal functions via the
Internet or an intranet using a Web browser.
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The Measure Builder is a logical infrastructure for the three Key Performance Indicator (KPI)-based
performance monitoring models of the SEM-CPM.
Balanced Scorecard
Management Cockpit
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Measures can be defined with a detailed textual description and a formula for the measure
calculation in an abstract business-oriented way independent from the technical data sourcing.
The defined Measures are grouped and listed in the Measure Catalog. Several derivations of the
same measure can be defined.
Measures can be mapped to InfoObjects in InfoCubes of the SEM database to define how their data
can be sourced.
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The Measure Builder can be populated with benchmark data from third-party vendors.
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The enterprise already has a SAP BW installation and wants to use SAP SEM within the same
infrastructure. SAP SEM is running as an application on top of SAP BW on the same hardware
and software.
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s SAP BW.
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Advantages of this scenario:

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to run SAP SEM separately.
As in configuration 1, SAP SEM is installed with SAP BW technology as unified software.
SAP SEM obtains its data from the data warehouse system and, if necessary, from external
sources.
The Data Warehouse system can be SAP BW-based or a third party solution.
Within the SEM system, BW provides data marts and reporting functionality.
Advantages of this solution:

The SEM system essentially does not add load to the data warehouse (only due to periodical
transfer of data to the SEM system).
Load and locks in the data warehouse due to long running batch processes do not affect SEM
transactions.
Changes of data (master data, hierarchies, transaction data) in the SEM system do QRW immediately
affect the data marts of the warehouse(s).
Data is transferred to SEM and back to the data warehouse(s) only DIWHU approval.
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The organizational unit installing SAP SEM does not require an operational data warehouse.
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from external sources.
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Less than half the information necessary to take strategic

decisions originate from sources inside the organization.(1)

External datasources provide roughly 72% of textual,

19% of numeric and 9% of other types of information.(2)

Danger of information overload!
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Having established that information is vital if we are to become a knowledgeable organization, it is

useful to establish sources for that information. A great deal of data will come from within our
systems (HJ, ERP systems) and organization but this will tend to be quite detailed, operational dayto-day data which, while useful for support of strategic decisions, is not by any means the whole
story.
In order to make informed strategic decisions, we need to look at a balanced set of information
internal and external, quantitative and qualitative, and so on. In order to ensure a balanced mix, we
need to supplement our internal information by looking externally.
Remember, though, that as soon as we open our eyes to the world of information the danger of
information overload becomes all too apparent.
(1) Bauer, M., Altbekanntes in neuer Verpackung, Business Computing (1996) 4, p. 46.
(2) Herget, J., Hensler, S., Online-Datenbanken in Wirtschaft und Wissenschaft: aktuelle
Nachfragestrukturen und Nutzungstendenzen, WIRTSCHAFTSINFORMATIK 37 (1995) 2, S.
135.
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In addition to demands on the organization in terms of their data requirements, the company
information officer must choose the best method of sourcing the data from the multitude of
possibilities.
Quite apart from traditional sources, such as local files, people, online databases, push services, print
media, etc., today we have the Internet. The Internet is a vast potential source of information (and
misinformation) but it will only prove useful if approached in a structured manner. The goal is to
filter out irrelevant data.
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The key is to structure how we search and how we store the information that we find. The method of
storage is also the key to turning information into knowledge. For example, you can read all about
the theory of how an upcoming tax law change may affect the company, but it becomes far more
potent and useful when you link it directly to your internal key figure "Net Operating Profit After
Tax" and see the quantitative and qualitative story together.
People must have speedy access to information that is relevant to them because information is only
useful (LH, will only give you competitive advantage) for an increasingly short period of time.
Employees today cannot afford to be deluged with useless information and must be able to find and
make sense of the relevant information immediately.
Establishing the link between the unstructured information from the external world and the
structured information contained within your internal databases, is the key to providing your people
with the information they need. Additionally you are providing it in a manner that helps them make
sense of the information.
When employees can make sense of information, they can turn it into knowledge. It is this
knowledge that helps to provide a competitive advantage in a world where knowledge is power.
Unstructured data can be retrieved and assigned to Evaluation Objects (characteristics and key
figures) in BW. Later, the information may be retrieved to support a view or result, HJ, the
estimated total market for a product that may have been derived from a particular Web site.
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The SEM-BIC component is composed of three tools:

7KH 6RXUFH 3URILOH %XLOGHU %,&63% is used to maintain the master data details for the BIC
data sources (Web sites). In particular, the Web site address, name, and any user names and
passwords that are required to access the Web site are maintained here. The resulting list can then
be called from the Editorial Workbench.
7KH (GLWRULDO :RUNEHQFK %,&(:% is the main tool of BIC. Via the EWB, we can search the
Internet, pull in data, edit that data within Word-in-Place and then link the new document to
internal key figures and characteristics within the BW system.
7KH ,QIRUPDWLRQ 5HTXLUHPHQW %XLOGHU %,&,5% is planned for a future release. This tool will
help us to automate the search for data by providing the ability to build up information profiles for
departments and people within our organization. The EWB will then provide the link between the
output from the IRB (requirements) and the SPB (possible sources) and, from this information,
will search the relevant sources.
Once you have searched for the relevant knowledge and edited it you have the opportunity (as noted
above) to use the EWB functionality to link the document to the database (hence the link to the BW
Database in the slide). Once this has been done this document can be accessed via the SEM-Business
Planning and Simulation (BPS) or SEM-Balanced Scorecard and Management Cockpit (CPM)
components, so providing the opportunity to support quantitative data with relevant qualitative data.
The document once linked to key figures and characteristics in the database is then physically
stored in the BW-Business Document Service (BDS).
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SAP-SEM provides the Business Information Collection (BIC) component to support the entire
information collection process. By following this process, and with the help of the BIC software, we
can avoid the pitfalls commonly associated with information collection (the data deluge as described
in the previous slides). The BIC component supports the process in the following way:
The Information Requirements Builder (BIC-IRB) will support the initial streamlining of the
information request process by providing templates for departments and positions (HJ, the CFO)
within which we will be able to detail the relevant information requirements. BIC-IRB will be
delivered in a later release. For the time being, in 3.0a, we do have Research Requests, which
enable Information Users to specify the details for a particular request that will then be processed
by the Information Broker. Documents can be e-mailed to users.
Once the Information Broker has received the relevant request, the data can be collected, edited
and linked to the internal (BW) key figures and characteristics within the Editorial Workbench
(BIC-EWB) with the help of the Source Profile Builder (BIC-SPB) for the Web address. The
document, once linked to the database key figures, etc., is then stored in, and can be edited via, the
BW Business Document Service (BW-BDS).
With the information now linked to the key figures and characteristics, the documents can be
accessed by information users via SEM-BPS and SEM-CPM (Balanced Scorecard and
Management Cockpit).
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The retrieval of unstructured data from the Web follows a particular process, all of which is launched
with a document request. Ultimately the document will be "delivered" either to the BW, to a user via
e-mail, or both.
This chart is an example of the process followed using the Editorial Workbench.
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Slide builds as follows. All component functionality mentioned was available as of 2.0b unless
explicitly stated:
An information request (from 3.0a) is raised or a search is triggered via BIC-IRB (*>3.0). The
details are sent to BIC-EWB.
Having received an information request, we use the BIC-EWB to source data from the Internet.
The BIC-EWB is supported by the BIC-SPB, which provides details of the possible sources.
Once we have sourced the information, edited it and attached the document to InfoObjects in the
database, the document is stored in the BW-BDS.
The InfoUser can now access the document from the SEM components BPS and CPM or directly
from the BDS, using the Business Document Navigator.
We can send the document from SEM-BIC directly to the user via e-mail..
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To summarize...
Editorial Workbench (BIC-EWB):
Calling of an Internet page or local file as a data source
Copying of unstructured information into Word-in-Place for editing
Assigning unstructured information to BW / SEM database key figures and characteristics
Source Profile Builder (BIC-SPB):
Maintenance of source data profiles
Automatic call-up of data sources in the Editorial Workbench
Information Requirements Builder (>3.0) (SEM-IRB):
Information Requirement Profiles for users and departments
Trigger Settings
Visualization of BIC documents:

SEM-BPS
Balanced Scorecard
Management Cockpit
BW - Business Document Navigator
Measure Builder (3.0a)
Document sent to user via e-mail (3.0a)

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Having analyzed last years appalling results for the Diabetics Division,
you decide to do some research to see if the diabetics drug market is
generally deemed to be declining, static or growing. On the basis of this
research, you will be able to make an informed decision with regard to
whether this market is worth further investment in terms of time and
money.
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Navigate within the SEM-BIC component
Create, edit and deliver a document to the database
Understand the potential usage of the SEM-BIC component
As the manager for the Diabetics Division you are interested in the
likely future market for diabetes products, which will enable you to
make an informed decision with regard to the future of the division.
This being the case use Business Information Collection (BIC) to log
on to the World Health Organization (WHO) Web site and find the
estimates for the potential diabetes market for the next 25 years.
Source Profile Builder

1-1
Access the Source Profile Builder.
1-2
1-2
Check whether it is necessary for you to create a new source profile for the World
Health Organization (WHO) Web site.
You find that it is not necessary to create a new source profile as you find one
already there for WHO. What is the Web site address on the current source profile
for WHO?
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Access the Editorial Workbench and create a Research Request.

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You want the results of the Research Request attached to appropriate

internal information (key figure and characteristics) within the SEM-BW
system so that we can pick them up later elsewhere in SEM (HJ, within
SEM-BPS) to help provide data for our planning scenarios. Make the
relevant settings so that the documents will be delivered to the system.
2-2
You want to search the web using the WHO Web site, the details of which
have been set up within the Source Profile Builder. Select the WHO Web
site as a Content Provider for your Research Request. Set the status to in
process. At this stage, save your work.
Having created the Research Request, execute the search using your chosen Content
Provider by using the research tab. Once in the Web site, use the search engine to
run a search for golden burden of diabetes.
Select the *OREDO %XUGHQ RI 'LDEHWHV heading.
How many people are likely to have diabetes in the United States in 2025?
2-4
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Having found how many people in the U.S. are likely to have diabetes in the
year 2025, copy the figures for the U.S. and other countries with the largest
number of diabetes cases to Word-in-Place by highlighting the relevant text
and values and clicking on the 'RFXPHQW WH[W icon. A green check mark will
appear next to the 'RFXPHQW WH[W icon, signifying success.
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Number of cases in ooos
1995
2025
United States of America
14 million
22 million
Answer to
question 1-3
2-5
Having done this, you decide to add qualitative data with regard to the
characteristics of the people involved in the study (ethnic origin, ages of those
studied, etc.). Add this to your document text. This will provide qualitative data
for data analysts who may later use this document.
2-6
After copying the quantitative and qualitative data into your document, you
want to complete the administrative details for the document, such as the title,
source and URL address.
2-7
Before delivering the document, check your work so far, enter your group
number onto the end of the document title so that you can tell you document
apart from others, and then save it. Note that your document, when saved,
appears in the Research Results worklist.
2-7
Having completed your document, you want to deliver it to the database using
the 'HOLYHU 5HVXOWV option. You want to assign the document to the Diabetics
Division and Version ;;, which is the version the Diabetics Division uses for
planning for your group number. Additionally, you want to assign the document
to the Potential Market key figure. Having done this, when you carry out
planning later, the potential market values will be available for your what-if
scenarios. Assign document/Save when finished.
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Not all of the characteristics that are in your BW system appear. Why not?
Save the assignment by clicking on the $VVLJQ 'RFXPHQW icon (the ([HFXWH icon at
bottom). When this is successful, the message Research results were delivered
will appear.
Having saved your document to the database, you now want to retrieve your
document and make a change to it.
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Select the ([HFXWH icon.

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Double click on your document to launch the Word-in-Place functionality and then
right mouse click on your document and select &KDQJH'RFXPHQW to allow
changes to be made. Alter figures in your document to reflect changes just
discovered and not yet published.
Select the green arrow to exit the transaction and say <HV when asked if the
document should be saved. Select the radio button for Current Document and then
select &RQWLQXH. The system will tell you the document has been changed.
To check that the change has been saved, return to the Business Document
Navigator, find your document under 'RFVB/QNG7H[W and launch it. Check that
the changes you made have been saved.
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You now wish to retrieve the document you have created via the SEM-CPM
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Use the following menu path to do this:
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A filter has been set at the top level of the Scorecard so that we can access all
relevant documents for the Diabetes Division at this level.
Select the $QDO\VLV button. Once in the $QDO\VLV screen, double click on the
'LDEHWHV 3URGXFWV 'LYLVLRQ Scorecard option (the top hierarchy node under
Perspective/Objective/Measure).
Now, on the right-hand side of the screen, select the 'RFXPHQWV tab (using the right
arrow icons). Now select your document.
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you decide to do some research to see if the diabetics drug market is
generally deemed to be declining, static or growing. On the basis of this
research, you will be able to make an informed decision with regard to
whether this market is worth further investment in terms of time and
money.
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At the conclusion of this topic, you will be able to:
Navigate within the SEM-BIC component
Create, edit and deliver a document to the database
Understand the potential usage of the SEM-BIC component
As the manager for the Diabetics Division you are interested in the
likely future market for diabetes products, which will enable you to
make an informed decision with regard to the future of the division.
This being the case use Business Information Collection (BIC) to log
on to the World Health Organization (WHO) Web site and find the
estimates for the potential diabetes market for the next 25 years.
Source Profile Builder

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Access the Source Profile Builder

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Check whether it is necessary for you to create a new source profile for the World
Health Organization (WHO) Web site.
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You find that it is not necessary to create a new source profile, as you find one
already there for WHO. What is the Web site address on the current source profile
for WHO?
.
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Access the Editorial Workbench and create a Research Request.

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You want the results of the Research Request attached to appropriate internal
information (key figure and characteristics) within the SEM-BW system so that
we can pick them up later elsewhere in SEM (HJ, within SEM-BPS) to help
provide data for our planning scenarios. Make the relevant settings so that the
documents will be delivered to the system.
Select the 'HOLYHU\ SDUDPHWHU tab.
Deselect the E\ HPDLO option.
Select the E\ DVVLJQPHQW WR HYDOXDWLRQ REMHFWV option.
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You want to search the Web using the WHO Web site, the details of which have
been set up within the Source Profile Builder. Select the WHO Web site as a
Content Provider for your Research Request. Set the status to in process. At
this stage, save your work.
Select the &RQWHQW 3URYLGHU tab.
Using the F4/Possible entries method, select the World Health Organization as a
content provider and change the status to in process.
Select the 6DYH icon.
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Having created the Research Request, execute the search using your chosen
Content Provider by using the research tab. Once in the Web site, use the search
engine to run a search for golden burden of diabetes.
Select the 5HVHDUFK tab.
Use the F4/Possible entries feature to select the Who website for the Content
Provider field
Once the Web site has appeared, select the 6HDUFK option(at top of web page).
Enter the words global burden of diabetes as the search criteria and select the
6HDUFK button.
At this point, you may wish to select the &ORVH 1DYLJDWLRQ button (on left-hand
side of SAP screen) to make it easier to navigate the Web site.
Having run the search, scroll down the screen to view the results. Select the
result which is called diabetes and has the text GLOBAL BURDEN OF
DIABETES WHO Projects a 170% Growth."
Select the *OREDO %XUGHQ RI 'LDEHWHV heading.
How many people are likely to have diabetes in the United States in 2025?
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Having found how many people in the U.S. are likely to have diabetes in the
year 2025, copy the figures for the U.S. and other countries with the largest
number of diabetes cases to Word-in-Place by highlighting the relevant text
and values and clicking on the 'RFXPHQW WH[W icon. A green check mark will
appear next to the 'RFXPHQW WH[W icon, signifying success.
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Number of cases in ooos
1995
2025
United States of America
14 million
22
million
2-5
Answer to
question 13
Having done this, you decide to add qualitative data with regard to the
characteristics of the people involved in the study (ethnic origin, ages of those
studied, etc.). Add this to your document text. This will provide qualitative data
for data analysts who may later use this document.
Locate relevant information about the characteristics of the study population and
any trends that health economists have determined.
Select some appropriate data and copy into your document using the 'RFXPHQW
7H[W icon.
2-6
After copying the quantitative and qualitative data into your document, you
want to complete the administrative details for the document, such as the title,
source and URL address.
Scroll to the top of the document page and highlight the title Burden of
Diabetes. Copy this as the title of the document you have created by clicking
on the 7LWOH button.
You want to copy the URL address as administrative information so just select
the 85/ button (this will copy whatever is in the .5/ DGGUHVV field)
Lastly, you want to notate that the source of the information was the World
Health Organization. Highlight the word WHO and select the 6RXUFH button.
2-7
Before delivering the document, check your work so far, enter your group
number onto the end of the document title so that you can tell you document
apart from others, and then save it. Note that your document, when saved,
appears in the Research Results worklist.
Select the (GLWLQJ tab. Check that you are happy with your document. Make any
desired formatting changes.
Select the $WWULEXWHV tab and check that the administrative details have been
completed.
1RWH Add your group number ( ;;) onto the end of the 7LWOH so that you can
tell your document apart from the other groups.
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Select the SAP 6DYH icon to save your work.

Your document should now appear in the Research Results worklist (select the
2SHQ 1DYLJDWLRQ button to see the worklist if you closed the navigation screens
in step 2-3).
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Having completed your document, you want to deliver it to the database using
the 'HOLYHU 5HVXOWV option. You want to assign the document to the Diabetics
Division and Version ;;, which is the version the Diabetics Division uses for
planning for your group number. Additionally, you want to assign the document
to the Potential Market key figure. Having done this, when you carry out
planning later, the potential market values will be available for your what-if
scenarios. Assign document/Save when finished.
Select the 'HOLYHU 5HVXOWV icon.
Continue past any warning messages.
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number)
Not all of the characteristics that are in your BW system appear. Why not?
Save the assignment by clicking on the Assign Document icon (the Execute
icon at bottom). When this is successful, the message Research results were
delivered will appear.
The document will now have disappeared from the Research Results worklist
and is no longer editable within the Editorial Workbench.
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Having saved your document to the database, you now want to retrieve your
document and make a change to it.
Go to:
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Select DOCS_LNKD folder, then the Text folder, and locate your document.
Double click on your document to launch the Word-in-Place functionality and then
right mouse click on your document and select &KDQJH'RFXPHQW to allow
changes to be made. Alter figures in your document to reflect changes just
discovered and not yet published.
Select the green arrow to exit the transaction and say <HV when asked if the
document should be saved. Select the radio button for Current Document and then
select &RQWLQXH. The system will tell you the document has been changed.
To check that the change has been saved, return to the Business Document
Navigator, find your document under 'RFVB/QNG7H[W and launch it. Check that
the changes you made have been saved.
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A filter has been set at the top level of the Scorecard so that we can access all
relevant documents for the Diabetes Division at this level.
Select the $QDO\VLV button. Once in the $QDO\VLV screen, double click on the
'LDEHWHV 3URGXFWV 'LYLVLRQ Scorecard option (the top hierarchy node under
Perspective/Objective/Measure).
Now, on the right-hand side of the screen, select the 'RFXPHQWV tab (using the right
arrow icons). Now select your document.
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Currently, the matrix represents the typical organizational form of an enterprise.
Due to the complexity of the planning process, large numbers of staff from the most diverse parts of
the enterprise are involved in the planning operation.
Planning forms, standards, approval procedures, planning areas and objects need to be defined.
Consolidation procedures have to be set up, and planning interdependencies included.
The planning periods of the individual planning areas and staff must be matched.
All this demonstrates the necessity of coordination instruments, which prune and structure the
planning process and provide for complete planning integration at every level of planning. Only such
instruments ensure that up-to-date plan data (required, for example, for a rolling forecast process) is
both reliable and available on time.
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Regardless of the level of business process, SEM enables planning on a bottom-up or top-down
basis.
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SEM gives you the ability to link corporate strategy to operational plans.
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The requirements of group cost accounting, and consequently of your planning system in terms of
the quality and transparency of the planning process, are constantly increasing.
The functions of existing planning systems and tools to carry out this process must be integrated and
must provide for cross-system data exchange and standardized system interfaces so as to make
updated plan data available online, thereby increasing the quality of the planning process and
reducing the chance of wrong decision making.
To accommodate ad hoc questions, the enterprise must implement the planning process as a
continuous operation, as rolling planning. It must be possible to translate strategic planning into
operative planning, so as to enable this continuous type of planning.
Since the interest of the capital market has to be taken into account for companies listed on stock
exchanges, this also has to be taken into account in the planning process.
If companies also operate internally according to the shareholder value approach, this will require
additional planning control instruments.
Likewise, a planning system ought to offer open architecture, which takes into account external
market data, and the planning of business partners for example, in the areas of e-commerce and
B2B giving meaning to the idea of collaborative planning.
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Enterprise planning with SEM-BPS enables the production of group-wide strategic company
planning. It supplements the detailed plans created with components of the operational systems by
planning right across the individual organizational units, thereby ensuring the consistency of
strategic and operative planning. This increases the efficiency of the enterprise and its management
processes.
The emphasis here is not so much on an increased level of detail, but with planning the development
of an enterprise where the planning horizon stretches into the future. For this reason, you should not
choose too fine a level of detail for the object to be planned in SEM-BPS.
Standard company planning tasks, such as financial statements or sales and profit planning can be
triggered with a minimum of configuration work. You can also integrate market data.
The detail modeling and planning methods have been designed to be multidimensional and are
consequently very flexible.
User interfaces, operating concepts and methodology in SEM-BPS have universal application
regardless of the planning area. This enables you to achieve a cross-area and company-wide uniform
planning method. You can achieve cost savings, for example, in staff training.
It is possible to split your work between SEM-BPS and the R/3 system, but you can also link it to
external solutions or use SEM-BPS on its own.
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SAP-BPS offers a variety of tools to support the individual planning processes of the customer.
0DQXDO SODQQLQJ is done using Excel integration with the assistance of planning layouts that can
be individually structured.
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planning, forecasting and planning sequences support manual planning.
The integrated tool OROS ABCplus is available for SURFHVV FRVW SODQQLQJ in SEM-BPS. You can
use this to investigate whether, from a process-oriented point of view, the activities carried out in
an enterprise contribute to an increase in the value of the enterprise, and to undertake the
appropriate action.
&ODVVLFDO SODQQLQJ DSSOLFDWLRQV that allow you to realize the standard objectives of enterprise
planning, such as financial statement, profitability, investment or cash flow planning with minimal
outlay on configuration, are delivered as Business Content with SEM-BPS.
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loops into account, SEM-BPS contains the G\QDPLF VLPXODWLRQ DSSOLFDWLRQ 3RZHU6LP. This is
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time dynamic wave patterns.
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With SEM-BPS, there is great flexibility for using different planning functions within the planning
framework.
All plan data is stored in BW.
UI stands for User Interface.
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In the planning area, you determine which BW InfoCube is to supply the data that you want to plan.
You can also choose InfoCubes from an external BW System. You would access these using a
Remote Function Call (RFC).
With a planning level, you restrict the amount of data supplied from the InfoCube to whatever is
relevant to your planning task. You do this by selecting the desired key figures and characteristics.
In the planning level, you can select characteristic values that are to remain constant for all planning
packages in the planning level. In the context of the planning level, you also determine which
planning functions are to be proposed.
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In a planning package, you can make further restrictions or refine the settings made in the planning
level. A planning package can be seen as a subset of the planning level, and it describes the basis on
which the planning functions operate. From an enterprise planning perspective, planning packages
can serve as work lists where you define a subtask of the total planning task for each planning
package and then process this as a manageable task.
You can use planning functions to enter and change plan data.
A parameter group describes the concrete form of a user-defined planning function and consists of
the settings necessary to carry out the function. In particular, these settings include details on how
data is to be changed in the execution of a function (for example, a percentage rate for "revaluation"
functions). The predefined functions have similar options for settings (for example, layouts for
interactive planning).
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The diagram summarizes the hierarchy of relationships between objects in SEM-BPS.
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To define an Infocube as transactional, choose the right mouse menu and additional properties in the
definition
of the cube.
Setting the flag for an InfoCube that already exists:
If InfoCube data may be deleted: Go to the InfoCube maintenance, choose ,QIR&XEH ! 'HOHWH
GDWD FRQWHQW, and set the flag as you did above. Save and activate the InfoCube.
If InfoCube data must not be deleted: Call Transaction SE16 with table RSDCUBE, and set the
flag TRANSACTto X for the two entries of the InfoCube (OBJVERS = A and M).
Only in the case of an Oracle database: Create normal instead of Bitmap indexes (see Note
210888).
Resetting the flag for an existing InfoCube (if the flag was set by mistake, or the cube should no
longer be used for planning):
If InfoCube data may be deleted, proceed as when setting the flag, as instructed above. There is no
possibility keeping the data when resetting the flag.
For further information about transactional cubes, see Notes 351107 and 333260.
Data is written to a data request of the transactional InfoCube via SEM functions. As soon as the
number of records in this data request exceeds a certain value (50.000), this request is closed and the
request is rolled up in defined aggregates if any exist (in asynchronous mode).
Rollup, definition of aggregates and compressing is still possible.
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Transactional InfoCubes are optimized for data handling as it is needed in SEM-BPS. Transactional
InfoCubes cannot be filled via the BW Data sources. In these InfoCubes, data can only be inserted
via SEM transaction (Exceptions apply).
Non-transactional InfoCubes are optimised for being filled by extraction.
To use actual data, create two cubes which are identical except for the setting of the Transactional
flag.
To use Actual data for planning there are two options:
Copy the extracted data from the non-transactional cube into the Transactional Cube with BPS
planning function (using the multiplanning area).
Create a multi-area over both cubes to use the actual data as reference data. For reporting, define a
multicube in BW to bring plan and actual data together.
Physically, the design of these InfoCubes may differ with respect to indexing and partitioning
(depending on database).
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In the case of pure read access, HJ, reading reference data, use the standard BasicCubes.
Scenario I:
The requirements of the Business Case allow the data retention of actual data (read only access)
and planning data (read and write access) in different cubes. A BasicCube should be used for
actual data whereas a transactional cube should be used for planning data. The data is integrated
via a multi-planning area, which contains the areas assigned to the cubes. Access to the two
different InfoCubes is controlled by a characteristic, which is automatically added (the name is
planning area ).
This scenario implies that the end user works in a multi-planning area. The entire customizing is
adjusted to this. For example the actual data from the BasicCube and the planning data from the
transactional cube may exist together in the data columns in one layout. The characteristic
planning area must also be used.
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Using InfoCubes within the Business Information Warehouse, planning can be carried out on a
combination of characteristics.
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The initial planning screen forms the central working environment for planning with SEM-BPS. On
this initial screen, you will find all the customizing functions to model the planning architecture.
You can also carry out planning from this screen.
The planning architecture consists of a hierarchical classification, under which, at different levels,
an increasingly fine delimitation of the database occurs. The architecture also includes the SEMBPS planning functions that refer to this database. The different levels of the planning architecture
also lend themselves to making business assignments. For example, you can represent regions,
divisions, organizational units, etc., on separate levels of the planning architecture.
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With top-down distribution you can distribute either nonassigned values or the total value of a level
to the level(s) below it.
As a reference for the distribution, you can use the relevant key figures (HJ, sales, payroll costs,
etc.) or a specific key (HJ, percentages).
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With seasonal distribution you can use a distribution key to distribute plan or actual values from
a specific time period. You can redistribute the total value as you wish over the individual periods of
the planning period.
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Plan or actual values for various key figures can be revalued simultaneously by specifying individual
percentage changes for them. These combinations can be defined as revaluation factors.
Using object-dependent parameters, you can restrict the revaluation to a small area of the
multidimensional data structure, HJ, to a specific Business Unit.
If a calculation rule exists for a basic key figure, you can decide whether or not to have it calculated.
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Dynamic Simulation is useful for:

Understanding responses and counter-responses
Understanding the cascading effects of decisions
Experimenting with delayed effects
Comprehending complex information (financial and non-financial)
Using historical information to anticipate the future
Developing a solid strategy
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Corporations may use dynamic simulations to help answer:

What will be the expected sales behavior of a new product?
What strategies might lead to price wars?
What strategies will give us a competitive advantage?
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,QYHVWPHQW 3ODQQLQJ provides the capability to analyze the financial feasibility of investment
opportunities.
%DODQFH VKHHW SODQQLQJ provides an integrated planning scenario, allowing changes that will update
a balance sheet, income statement and statement of cash flows.
3URILW SODQQLQJ provides the capability to plan sales and profit using both top-down and bottom-up
methods.
&DSLWDO 0DUNHW ,QWHUSUHWHU provides the capability to analyze and manage shareholder value as
measured by the corporation versus the shareholder value as measured by other third parties
(analysts, investors, banks, etc.).
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What Are Planning Applications?

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Planning applications are used to solve standard tasks with the least possible amount of configuration
work. This is achieved using the SAP Business Content of the SAP Business Information
Warehouse (InfoCubes and InfoObjects) that is delivered, as well as, preconfigured planning objects
reconciled to this HJ, planning areas, levels and functions with which you can execute the
respective planning task immediately.
Sample data is available (for master and transaction data), which is also part of the delivery.
As a rule, you will use the planning applications first as sample scenarios to get an immediate idea of
the uses of SEM-BPS. You can either adjust the delivered applications to the conditions in your
enterprise, or copy the appropriate objects and modify the copied objects correspondingly.
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you decided to do some research to see if the diabetics drug market was
generally deemed to be declining, static or growing. You did this in the
last exercise within SEM-BIC (Business Information Collection).
On the basis of your study, you found that the market actually had great
potential for growth, and that the reason for PharmaStars decline had
more to do with competitor activity and internal inaction.
As the market is sound and the issues are actionable, you decide that it is
worth coming up with some scenarios to see if you can win back
profitability and regain market leadership.
You begin by extrapolating some market size and market share projections
that have been provided by the internal information department (via SEMBIC). On the basis of this information, you run a business as usual
scenario to see what will happen over the time horizon 20012005 if the
company takes no action (you consider that this will help create the
impetus for action if need be).
Having done this, you then test the effects of cutting costs to see whether
this will bring the division back to profitability. Cutting costs wont help
to regain market share so, additionally, you test the figures on the basis of
a new insulin product that R&D is working on.
Having done this for the years 20012005, you then take the 2001 figures
and distribute them across the fiscal periods to create a period plan for the
year based on your new strategy.
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Set a planning profile for your planning session
Understand the use of planning profiles
Before you begin your planning scenarios, you decide that the General
Overview (LH, the default profile) has too many planning areas/levels,
etc., that are not going to be relevant for your planning session. You
therefore begin your planning session by setting the 3KDUPD6WDU IRU
6(0 Planning Profile.
1.
Create a new Planning Profile.
Copy the 3KDUPD6WDU IRU 6(0 Planning Profile as a basis for your new profile.
Name your Profile *URXS;

number).
(where X = your course letter and ## = your group
For the rest of the BPS exercises, we are only going to use the following Planning
Levels and Planning Packages:
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Use the relevant button to remove Planning Levels 1 through 8 from your profile.
Save your work and set the profile.
2.
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General Questions
2-1
After this planning session you may want to switch back to the General
Overview. How would you do this?
2-2
Is it possible to attach a planning profile to multiple users at once?
2-3
The planning profile will be reset to General Overview once you log off.
True or false?
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Visualize within BPS documents that were created and posted
within BIC
Understand the integration between BIC and BPS
Understand how documents can be accessed via BPS
Having now set the parameters for your planning session, you
want to kick off your scenario planning by accessing a planning
assumptions document that was put together by your information
research department. They researched and created this document
within the Editorial Workbench in BIC (Business Information
Collection) and then attached it to the Diabetics Division
characteristic. This means that you should now be able to access
this document from within Business Planning & Simulation
(BPS).
The document was created based on the trends identified with
analysis of the year 2000 results, supplemented with external
data. We see the potential market increasing (in line with our own
research on the WHO Web site in BIC) but our market share
declining (assuming last year s trend continues).
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Within the PharmaStar Planning Area, use Planning Level 'LY 'LDE 'RFV to
access the documents that have been stored with reference to the Diabetics
Division.
3-1
How are we filtering the documents that we want to see, LH, which
characteristics and key figures have we used in the planning level/package?
3-2
Which specific characteristics and key figures has the 3ODQQLQJ

$VVXPSWLRQV document been attached to?
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Open the 3ODQQLQJ $VVXPSWLRQV document.

4-1
Copy the assumptions for SRWHQWLDO PDUNHW (prevalence estimates) and

assumed PDUNHW VKDUH to the boxes below. These figures represent the
likely trends with regard to the growing market and our market share.
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Access the document you created in the earlier SEM-BIC exercise. This
confirms your belief that the market has potential and will serve as useful
supplementary evidence with regard to the long-term potential of the
diabetes drugs market.
SEM010
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Understand how the planning architecture for your scenario
fits together
Understand how the planning architecture links through to the
Business Information Warehouse (BW) database
Comprehend how planning functions are linked to the
planning architecture and how they work in conjunction with
each other
Before you begin your planning scenarios in detail, you want to
get to know the architecture that has been set up for PharmaStar
and how this connects to the BW database. You also want to
make the necessary setting within the planning package, to ensure
that you are processing only your data version during the
planning scenarios.
5
Carry out the following tasks to get a feel for your planning area / levels and
packages.
5-1
Select the PharmaStar 3ODQQLQJ $UHD. Which InfoCube is the Planning

Area attached to? Is this InfoCube in the local SEM BW or a remote BW?
5-2
Select the Planning Level 'LY 'LDE <HDUO\ 3ODQQLQJ and note the
selection of characteristics that has been made for this level in the box
below:
&KDUDFWHULVWLF
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5-3
What does the checkmark signify when seen against a characteristic (in
this case, Version)?
5-4
At which level of the architecture (LH, Planning Area/Level or Package)

are planning functions created?
5-5
Select the DG KRF 3ODQQLQJ 3DFNDJH within the 'LY 'LDE <HDUO\
3ODQQLQJ Planning Level In order to process the scenarios for RQO\ your
group s data, change and then save the package so that it includes your
data 9HUVLRQ ; (where X = your course letter and ## = your group
number).
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Describe how the planning functions and the planning
architecture work in conjunction with each other
Process planning functions (HJ, formulas, planning sequence)
Having found the planning assumptions information (market
share and market potential), you are now going to extrapolate
these into your planning session. Remembering that the market
share assumptions reflect the downward trend identified in the
analysis of last year s results, you are going to use these figures to
simulate how your results will look over the next five years
(20012005) if the company takes no action. You will use your
old 20002005 master plan version as the starting point.
Having defined the package to include only your data Version, open the manual
planning layout 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULRV. This is the layout you will
use to display and change the data.
Once the layout is displayed, you are viewing the data from the original master
plan. This plan assumed a steady increase in SRWHQWLDO PDUNHW and PharmaStar
PDUNHW VKDUH which in turn led us to believe that we would see a healthy net
income turn into a healthy free cash flow.
7-1
7-2
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Select the 0DVWHU 3ODQ worksheet tab and note that the master plan has
been saved to this worksheet for your convenience. You can refer to this
worksheet later to see how the processing of the plan functions has
changed the values.
Return to the 8VHU worksheet tab. This is the worksheet where you will be
entering data. This data will then be stored in the database when you save.
SEM010
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You want to see how the figures would look once you have extrapolated the
declining market share based on the 3ODQQLQJ $VVXPSWLRQV document.
This will represent your %XVLQHVV DV 8VXDO scenario. Complete the following tasks
to enter the assumptions upon which your values will be calculated.
Note that the year 2000 figures in the plan represent the
original plan, not the year s actuals. As 2000 has now over,
these values are protected and will not be subject to any
changes.
8-1
Ensuring that you are in the User worksheet, enter the Prevalence
estimates from the 3ODQQLQJ $VVXPSWLRQV document into the
Potential Market fields for the years 20012005.
8-2
Enter the Market Share estimates from the 3ODQQLQJ $VVXPSWLRQV
document into the Market Share fields for the years 20012005.
Having entered the potential market and market share assumptions, you now want to
calculate the following values by using the relevant planning functions:
1XPEHU RI 'LDEHWHV 3DWLHQWV
1HW 6DOHV
*URVV 3URILW 2SHUDWLQJ ,QFRPH 1HW ,QFRPH )UHH &DVK )ORZ

When running the functions, it is best that you remain in the
planning layout. This way you are able to see the values
changing as the functions are executed.
9-1 Calculate the number of diabetes patients by executing the GLDE SDWLHQWV
planning function. This should give you a result similar to that shown below.
3RWHQWLDO
0DUNHW
0DUNHW
6KDUH
'LDEHWHV
3DWLHQWV
SAP AG

24,516,130 ST
24,600,000
24,900,000
25,200,000
25,500,000
25.800,000
62%
50%
45%
40%
40%
40%
15,200,000.600
ST
12,300,000
ST
11,205,000
ST
10,080,000
ST
10,200,000
ST
10,320,000
ST
SEM010
5-52
3RWHQWLDO
0DUNHW
9-2
Display the GLDE SDWLHQWV formula. What is the calculation that has been
carried out? After viewing this, return to the layout.
9-2
Having worked out the number of diabetes patients that PharmaStar can
expect to form their sales base, you are keen to see this translated into
sales figures. Execute the QHW VDOHV function. This should give you
results similar to those shown below.

24,516,130 ST
24,600,000
24,900,000
25,200,000
25,500,000
25.800,000
0DUNHW 6KDUH
'LDEHWHV
3DWLHQWV
62%
50%
45%
40%
40%
40%
15,200,000.600
ST
12,300,000 ST
11,205,000 ST
10,080,000 ST
10,200,000 ST
10,320,000 ST
2 ST
2 ST
2 ST
2 ST
2 ST
2 ST
0.25 USD
0.25 USD
0.25 USD
0.25 USD
0.25 USD
0.25 USD
7,600,000.30
USD
6,150,000.00
USD
5,826,600.00
USD
5,241,600.00
USD
5,304,000.00
USD
5,366,400.00
USD
&RQVXPS SHU
3DWLHQW
6DOHV 3ULFH
1HW 6DOHV
9-4
Display the QHW VDOHV function and complete the formula below.
Z_NETSALE = Z_DIABPAT *
9-5
SAP AG
Having calculated the net sales value, you are now going to recalculate the
rest of the plan. Before doing this, display the SRV SODQ UHFDOF function.
Which key figures will this formula calculate? Enter them in the formula
below.
SEM010
5-53
Now execute the SRV SODQ UHFDOF function. Your bottom line should
now reflect the values shown below.
9-6

)UHH
&DVK)ORZ

2,090,000.00
USD
640,000.00
USD

336,600.00
USD

-228,400.00
USD

-146,000.00
USD
-53.600.00
USD
You have now calculated the values for the %XVLQHVV DV

8VXDO scenario. These values have been copied to the
%XVLQHVV DV 8VXDO worksheet tab for your future reference.
10
Having calculated a value for this scenario, you are interested in any functionality that
can help to speed up this process, such as planning sequences.
A planning sequence allows us to run a number of planning functions one after another
by just executing one planning function. You are going to use the %XVLQHVV DV 8VXDO
planning sequence to execute the calculations for # of diabetes patients, net sales and
calculate position plan. Process the following steps to try out the Planning Sequence
functionality.
10-1
Display the configuration for the %XVLQHVV DV 8VXDO planning sequence.

Which planning functions and parameter groups are going to be run and in
which order? What effect will this have on the figures?
10-2
Copy and paste the figures for the years 20012005 from the 0DVWHU SODQ
worksheet to the 8VHU worksheet so that you are starting from the original
figures again.
10-3
Re-enter the prevalence and market share estimates from the 3ODQQLQJ
$VVXPSWLRQV document into the 8VHU worksheet for the years
20012005 (see Exercise 4-2 for the estimates that you should have copied
from the BIC document earlier).
10-4
Execute the %XVLQHVV DV 8VXDO planning sequence. The values calculated will
be the same as those at the end of exercise 4.
10-5
Save your datayou will be using this as the basis for your other scenarios.
SAP AG
SEM010
5-54
8QLW 6(0%36
7RSLF &RVW &XWWLQJ 6FHQDULR

Process planning functions (HJ, revaluation, planning
sequence)
Having extrapolated the relevant planning assumptions and
calculated values for your %XVLQHVV DV 8VXDO scenario, you now
have a good idea of how the figures will look if the company
takes no action over the next five years.
You now decide to see how some different scenarios might play
out. First, you are interested to see whether a cost-cutting
program will help to regain profitability (assuming that
everything else remains as per the Business as Usual scenario).
11
Using your %XVLQHVV DV 8VXDO data as the basis, revalue your costs and then
recalculate the position plan.
11-1
Display the FRVW GHFUHDVH parameter group within the Costs Revaluation
planning function. Which key figures will be revalued?
11-2
Instead of executing the cost adjustment function followed by the position

plan recalculation function, you are going to execute the FRVW FXWWLQJ
planning sequence. What planning functions does the sequence contain
and in what order?
11-3
Before you execute the cost revaluation examine your costs (for example
COGS), they should be similar to the values shown below.

&RVW RI *RRGV
6ROG
SAP AG
-5,200,000
USD

-5,200,000
USD
-5,200,000
USD
SEM010

-5,200,000
USD

-5,200,000
USD
-5,200,000
USD
5-55
11-4
Execute the FRVW FXWWLQJ planning sequence. Tthis will carry out the cost
reduction and then calculate the other key figures to give you a final figure.
Your COGS line should be showing values similar to those below after the
revaluation.

&RVW RI *RRGV
6ROG
11-5
-5,200,000
USD

-4,940,000
USD
-4,810,000
USD

-4,810,000
USD

-4,680,000
USD
-4,680,000
USD
Save the results of the cost cutting scenario.

The results of the cost cutting scenario have been copied to
the &RVW &XWWLQJ worksheet. If you wanted to keep this in
the database (in addition to the Business as Usual scenario)
for future use, then you would want to save it as a different
version. In our example, however, we are simply going to
use the values calculated to act as the base for our next
scenario.
SAP AG
SEM010
5-56
8QLW 6(0%36
7RSLF 5HJDLQ 0DUNHW 6KDUH 6FHQDULR

sequence)
The cost cutting scenario has helped to regain a certain level of
profitability but does little on its own to regain market leadership.
You decide to keep the results of the cost cutting exercise but
want to test a scenario that you believe will help PharmaStar to
win back some market share.
It so happens that the company has been working on a new
product, the insulin inhaler. This has led the company to revise
the product pricing model and the future projected estimates for
market share. Based on these new assumptions, you revise your
net sales, your costs (based on the likely higher R&D/marketing
costs that a new product will bring), and the remaining key
figures.
12
Division.
12-1
Access the 1R PRUH LQMHFWLRQV" document.
12-2
Copy the assumptions for PDUNHW VKDUH and revised SULFLQJ SHU XQLW to
the boxes below. These figures represent our estimate of the likely trends
with regard to the introduction of our insulin inhaler product.
5HYLVHG :RUOGZLGH 3KDUPD6WDU 0DUNHW 6KDUH (VWLPDWHV

SAP AG

SEM010

5-57
5HYLVHG SULFLQJ SHU XQLW

12 Return to planning level 'LY 'LDE <HDUO\ 3ODQQLQJ DG KRF SDFNDJH and copy the
market share and pricing figures into your 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULRV layout.

0DUNHW 6KDUH
6DOHV 3ULFH
14
SAP AG

62%
55%
62%
63%
64%
65%
0.25 USD
0.25 USD
0.27 USD
0.27 USD
0.28 USD
0.28 USD
You are going to use the UHJDLQ PDUNHW OHDGHUVKLS planning sequence to calculate
the effect of the increased market share and increased price on our sales. In
addition, the sequence will revalue our costs to take into account the fact that this
new product will cost extra to get it to market.
14-1
Display the UHJDLQ PDUNHW OHDGHUVKLS planning sequence to understand

which planning functions are going to be executed in the sequence.
14-2
Execute the UHJDLQ PDUNHW OHDGHUVKLS planning sequence. Your results

should be similar to those below.
SEM010
5-58
14-3
Save the results of the UHJDLQ PDUNHW VKDUH scenario.
The results of the regain market share scenario have been

copied to the 5HJDLQ 0/ worksheet. If you wanted to keep
this in the database (in addition to the other scenarios) for
future use, then you would want to save it as a different
version.
In our example, however, we are going to save this using our
current version and then carry out the last step of our
scenario.
SAP AG
SEM010
5-59
8QLW 6(0%36
7RSLF 6HDVRQDO 'LVWULEXWLRQ 6FHQDULR

Process planning functions (HJ, Distribution, planning
sequence)
If all goes according to the UHJDLQ PDUNHW VKDUH scenario, then
PharmaStar will regain profitability and market leadership with
the introduction of the insulin inhaler. Therefore, you decide to
take the figures for 2001 and distribute them to form the periodic
plan for the year.
15
Select the Planning Level 'LY 'LDE 3HULRG 3ODQQLQJ and the DG KRF SDFNDJH.
In order to process the scenarios for RQO\ your group s data, change and then save
the package so that it includes your data 9HUVLRQ ; (where X = your course letter
and ## = your group number).
(YHU\ WLPH \RX OHDYH WKH PDLQ %36 VFUHHQ WKH DG KRF
SDFNDJH ZLOO UHVHW WKH 9HUVLRQ ,W LV WKHUHIRUH HVVHQWLDO
WKDW \RX UHVHW WKH 9HUVLRQ WR ; HYHU\ WLPH \RX UHWXUQ
WR WKH SDFNDJH
SAP AG
15-1
In terms of the selection of characteristics, what is the main difference

between the 'LY 'LDE <HDUO\ 3ODQQLQJ planning level and 'LY
'LDE 3HULRG 3ODQQLQJ planning level?
15-2
Open the planning layout 'LY 'LDE 3HULRGLF 3ODQQLQJ Note that there
are no values for the periods yet.
15-3
Display the DFURVV SHULRGV planning function and note how the
yearly values are going to be distributed across the periods.
15-4
Return to the layout and execute the DFURVV SHULRGV planning
function. What has happened to the \HDUO\ YDOXHV in the first column?
Why has this happened?
SEM010
5-60
15-5
16
SAP AG
Your results should be similar to those below.
Note the value for QHW VDOHV for the current period (we ll come back to this later).
Save your data before leaving the planning screen.
SEM010
5-61
6ROXWLRQV
8QLW 6(0%36
7RSLF 6HW 3ODQQLQJ 3URILOH

Set a planning profile for your planning session
Understand the use of planning profiles
Before you begin your planning scenarios, you decide that the General
Overview (LH, the default profile) has too many planning areas/levels,
etc., that are not going to be relevant for your planning session. You
therefore begin your planning session by setting the 3KDUPD6WDU IRU
6(0 Planning Profile.
1
Create a new Planning Profile.

6(0%XVLQHVV 3ODQQLQJ 6LPXODWLRQ&URVV$SSOLFDWLRQ
3ODQQLQJ3ODQQLQJ 3URILOH icon
Right click on the 3KDUPD6WDU IRU 6(0 planning profile and select FRS\
SURILOH.
Enter the data as shown below:
)LHOG 1DPH
7R 3ODQQLQJ 3URILOH
9DOXHV
*URXS; *URXS; V SURILOH

(where X## = your assigned
group letter and group number)
Your planning profile is shown on the right hand side of the screen. Click on
3KDUPD6WDU to expand the profile.
Using your Shift and arrow keys, select planning levels 1 through 8 so that they
turn yellow, and then drag and drop them over to the SODQQLQJ DUHDV box on the
left-hand side of the screen..
Save your new profile by selecting the 6DYH icon.
Select your profile to be your default by double clicking on it. A message should
display indicating the profile has been set. Return to the main planning screen by
selecting the 3ODQQLQJ icon.
SAP AG
SEM010
5-62
General Questions
2-1
After this planning session you may want to switch back to the General
Overview. How would you do this?
On the main Business Planning & Simulation (BPS) screen, follow the
menu path:
(GLW*HQHUDO 2YHUYLHZ
2-2
Is it possible to attach a planning profile to multiple users at once?

Yes. From the planning profile screen, you would select the menu path:
3URILOH$VVLJQ WR RWKHU XVHUV
2-3
The planning profile will be reset to General Overview once you log off.
True or false?
False. The planning profile would have to be deleted or a different profile
set for the user.
SAP AG
SEM010
5-63
8QLW 6(0%36
7RSLF $FFHVV %,& 'RFXPHQWV ZLWKLQ %36

Visualize within BPS, documents that were created and posted
within BIC
Understand the integration between BIC and BPS
Understand how documents can be accessed via BPS
Having now set the parameters for your planning session, you
want to kick off your scenario planning by accessing a planning
assumptions document that was put together by your information
research department. They researched and created this document
within the Editorial Workbench in BIC (Business Information
Collection) and then attached it to the Diabetics Division
characteristic. This means that you should now be able to access
this document from within Business Planning & Simulation
(BPS).
Division.
Select 3KDUPD6WDU (Planning Area)'LY'LDE 'RFV (Planning Level)

Double click on the ad hoc package.
Right click on the Documents Planning function in the lower left section of the
screen and choose &DOO XS (or double click).
3-1
How are we filtering the documents that we want to see, LH, which
characteristics and key figures have we used in the planning level/package?
Select the ad hoc package, right click and then select GLVSOD\ SDFNDJH.
The planning package is looking to find all documents linked to the Diabetics
Division and versions A00 to D25.
3-2
Which specific characteristics and key figures has the 3ODQQLQJ $VVXPSWLRQV
document been attached to?
To display the documents:
Double click on the ad hoc package.
Right click on the Documents Planning function and choose &DOO XS (or double
click).
SAP AG
SEM010
5-64
Right click on the 3ODQQLQJ $VVXPSWLRQV document and choose the
'LVSOD\ $VVLJQPHQW option.
The document is attached to the Diabetics Division (C-DIV-62) and Version
A00.
Open the 3ODQQLQJ $VVXPSWLRQV document.
Right click on the 3ODQQLQJ $VVXPSWLRQV document and choose the
option 'LVSOD\ (or double click).
4-1
Copy the assumptions for SRWHQWLDO PDUNHW (prevalence estimates) and

assumed PDUNHW VKDUH to the boxes as below. These figures represent the
likely trends with regard to the growing market and our market share.
:RUOGZLGH 'LDEHWHV 3UHYDOHQFH (VWLPDWHV

24,600,000
24,900,000

25,200,000

25,500,000

25,800,000
3KDUPD6WDU 0DUNHW 6KDUH $VVXPSWLRQV

50%
45%
40%
40%
40%
4-2
Access the document you created in the earlier SEM-BIC exercise. This
confirms your belief that the market has potential and will serve as useful
supplementary evidence with regard to the long-term potential of the
diabetes drugs market.
Assuming you have followed the BIC exercise, you should find your
document in the list.
Select your document by right clicking and choosing 'LVSOD\.
SAP AG
SEM010
5-65
8QLW 6(0%36
7RSLF *HWWLQJ WR NQRZ WKH 3ODQQLQJ $UFKLWHFWXUH

Understand how the planning architecture for your scenario
fits together
Understand how the planning architecture links through to the
BW (Business Information Warehouse) database
Comprehend how planning functions are linked to the
planning architecture and how they work in conjunction with
each other
Before you begin your planning scenarios in detail, you want to
get to know the architecture that has been set up for PharmaStar
and how this connects to the BW database. You also want to
make the necessary setting within the planning package, to ensure
that you are processing only your data version during the
planning scenarios.
5
Carry out the following tasks to get a feel for your planning area / levels and
packages.
5-1
Select the PharmaStar 3ODQQLQJ $UHD. Which InfoCube is the Planning

Area attached to? Is this InfoCube in the local SEM BW or a remote BW?
Right click on the PharmaStar Planning Area and select 'LVSOD\ DUHD (or
double-click).
The Planning Area is linked to the BASIS-PS InfoCube.
The selection is showing that the InfoCube is in the local system. If it was
in a remote system, 5HPRWH would be selected and a Remote Function Call
(RFC) destination would have been entered.
5-2
Select the Planning Level 'LY 'LDE <HDUO\ 3ODQQLQJ and note the
selection of characteristics that has been made for this level in the box
below:
Right click on the 'LY 'LDE <HDUO\ 3ODQQLQJ Planning Level and
choose 'LVSOD\ OHYHO (or double click).
Select the 6HOHFWLRQ tab.
SAP AG
SEM010
5-66
&KDUDFWHULVWLF
5HVWULFWLRQ
Currency
USD
Division
C-DIV-62
Fiscal Year
2000 - 2005
Fiscal Year Variant
K4
Group of Companies
C-TOP-1
Segment
C-SEG-A
SBU
C-BA-6000
Value Type
21
Version
5-3
What does the checkmark signify when seen against a characteristic (in this
case, Version)?
The checkmark denotes that we will be leaving the selection of the
characteristic value to the planning package. In our case, the packages will
represent different data versions.
5-4
At which level of the architecture (LH, Planning Area/Level or Package) are

planning functions created?
Planning functions are created with reference to the Planning Levels. This
way we can use them for all Planning Packages within that Level.
5-5
Select the DG KRF 3ODQQLQJ 3DFNDJH within the 'LY 'LDE <HDUO\
3ODQQLQJ Planning Level In order to process the scenarios for RQO\ your
group s data, change and then save the package so that it includes your data
9HUVLRQ ; (where X = your course letter and ## = your group number).
Right click on the $GKRF SDFNDJH and select &KDQJH 3DFNDJH.
A version has been created for each group, so enter your group number as
the version.
Save your selection by selecting the 6DYH icon.
(YHU\ WLPH \RX OHDYH WKH PDLQ %36 VFUHHQ WKH DG

KRF SDFNDJH ZLOO UHVHW WKH 9HUVLRQ ,W LV WKHUHIRUH
HVVHQWLDO WKDW \RX UHVHW WKH 9HUVLRQ WR ; HYHU\ WLPH
\RX UHWXUQ WR WKH SDFNDJH
SAP AG
SEM010
5-67
8QLW 6(0%36
7RSLF %XVLQHVV DV 8VXDO 6FHQDULR

Process planning functions (HJ, formulas, planning sequence)
Having found the planning assumptions information (market
share and market potential), you are now going to extrapolate
these into your planning session. Remembering that the market
share assumptions reflect the downward trend identified in the
analysis of last year s results, you are going to use these figures to
simulate how your results will look over the next five years
(20012005) if the company takes no action. You will use your
old 20002005 master plan version as the starting point.
Having defined the package to include only your data Version, open the manual
planning layout 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULRV. This is the layout you will
use to display and change the data.
Ensure your package is selected by right clicking on the ad hoc package (within
planning level nin) and then choosing 'LVSOD\ SDFNDJH (or double clicking).
Expand the 0DQXDO 3ODQQLQJ planning function.
Right click on the 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULRV layout and choose (QWHU
SODQ GDWD (or double click).
Once the layout is displayed, you are viewing the data from the original master
plan. This plan assumed a steady increase in SRWHQWLDO PDUNHW and PharmaStar
PDUNHW VKDUH which in turn led us to believe that we would see a healthy net
income turn into a healthy free cash flow.
6-1
Select the 0DVWHU 3ODQ worksheet tab and note that the master plan has
been saved to this worksheet for your convenience. You can refer to this
worksheet later to see how the processing of the plan functions has
changed the values.
Select the 0DVWHU 3ODQ worksheet tab.
6-2
Return to the 8VHU worksheet tab. This is the worksheet where you will be
entering data. This data will then be stored in the database when you save.
Select the 8VHU worksheet tab.

SAP AG
SEM010
5-68
You want to see how the figures would look once you have extrapolated the declining
market share based on the 3ODQQLQJ $VVXPSWLRQV document. This will
represent your %XVLQHVV DV 8VXDO scenario. Complete the following tasks to enter the
assumptions upon which your values will be calculated.
Note that the year 2000 figures in the plan represent the
original plan, not the year s actuals. As 2000 has now over,
these values are protected and will not be subject to any
changes.
7-1
7-2
Ensuring that you are in the User worksheet, enter the Prevalence
estimates from the 3ODQQLQJ $VVXPSWLRQV document into the
Potential Market fields for the years 20012005.
Enter the Market Share estimates from the 3ODQQLQJ $VVXPSWLRQV
document into the Market Share fields for the years 20012005.
Ensure that you are in the User tab and enter the data in the relevant fields
(as shown below):
3RWHQWLDO 0DUNHW
0DUNHW 6KDUH

24,516,130 ST
24,600,000
24,900,000
25,200,000
25,500,000
25.800,000
62%
50%
45%
40%
40%
40%
Having entered the potential market and market share assumptions, you now want to
calculate the following values by using the relevant planning functions:
1XPEHU RI 'LDEHWHV 3DWLHQWV
1HW 6DOHV
*URVV 3URILW 2SHUDWLQJ ,QFRPH 1HW ,QFRPH )UHH &DVK )ORZ

When running the functions it is best that you remain in the
planning layout. This way you are able to see the values
changing as the functions are executed.
SAP AG
SEM010
5-69
9-3 Calculate the number of diabetes patients by executing the GLDE SDWLHQWV
planning function. This should give you a result similar to that shown below.
5HPDLQ ZLWKLQ WKH OD\RXW RU UHWXUQ WR LW LI \RX KDYH H[LWHG
Expand the )RUPXODV planning function in the Planning function section (lower
left) of the screen.
Right click on the GLDE SDWLHQWV parameter group and choose ([HFXWH
SODQQLQJ IXQFWLRQ.
3RWHQWLDO
0DUNHW

24,516,130 ST
24,600,000
24,900,000
25,200,000
25,500,000
25.800,000
0DUNHW
6KDUH
'LDEHWHV
3DWLHQWV
9-2
62%
50%
45%
40%
40%
40%
15,200,000.600
ST
12,300,000
ST
11,205,000
ST
10,080,000
ST
10,200,000
ST
10,320,000
ST
Display the GLDE SDWLHQWV formula. What is the calculation that has been
carried out? After viewing this, return to the layout.
Right click on the
SDUDPHWHU JURXS.
GLDE SDWLHQWV parameter group and select GLVSOD\
The first screen tells us that there is a formula active for the years 2001
2005. Select the 'HWDLOV icon and you will go through to the formula itself.
The calculation is Z_DIABPAT = Z_POT_MKT * Z_MKT_SHR / 100.
The F4 button will help you translate this, but basically, we are calculating
the number of diabetes patients by taking the potential market and
multiplying it by our percent market share.
9-3
Having worked out the number of diabetes patients that PharmaStar can
expect to form their sales base, you are keen to see this translated into
sales figures. Execute the QHW VDOHV function. This should give you results
similar to those shown below.
Return to the layout by right clicking on 'LY 'LDE <HDUO\ 3ODQQLQJ
6FHQDULRV layout and choosing (QWHU SODQ GDWD.
Right click on the QHW VDOHV parameter group and choose ([HFXWH SODQQLQJ
IXQFWLRQ.
SAP AG
SEM010
5-70
3RWHQWLDO
0DUNHW
0DUNHW 6KDUH
'LDEHWHV
3DWLHQWV
&RQVXPS SHU
3DWLHQW
6DOHV 3ULFH
1HW 6DOHV
9-4

24,516,130 ST
24,600,000
24,900,000
25,200,000
25,500,000
25.800,000
62%
50%
45%
40%
40%
40%
15,200,000.600
ST
12,300,000 ST
11,205,000 ST
10,080,000 ST
10,200,000 ST
10,320,000 ST
2 ST
2 ST
2 ST
2 ST
2 ST
2 ST
0.25 USD
0.25 USD
0.25 USD
0.25 USD
0.25 USD
0.25 USD
7,600,000.30
USD
6,150,000.00
USD
5,826,600.00
USD
5,241,600.00
USD
5,304,000.00
USD
5,366,400.00
USD
Display the QHW VDOHV function and complete the formula below.
Right click on the QHW VDOHV parameter group and select GLVSOD\ SDUDPHWHU
JURXS
Z_NETSALE = Z_DIABPAT * Z_CONSPAT * Z_PRICE
Or, in other words, net sales = number of patients * number of units of the
product each patient consumes per year * price per unit.
9-5
Having calculated the net sales value, you are now going to recalculate the
rest of the plan. Before doing this, display the SRV SODQ UHFDOF function.
Which key figures will this formula calculate? Enter them in the formula
below.
Right click on the SRV SODQ UHFDOF parameter group and select GLVSOD\
SDUDPHWHU JURXS.
SAP AG
SEM010
5-71
9-6
Now execute the SRV SODQ UHFDOF function. Your bottom line should now
reflect the values shown below.
6FHQDULRV layout and choosing (QWHU SODQ GDWD.
Right click on the SRV SODQ UHFDOF parameter group and choose ([HFXWH
3ODQQLQJ IXQFWLRQ.

)UHH
&DVK)ORZ

2,090,000.00
USD
640,000.00
USD

336,600.00
USD

-228,400.00
USD

-146,000.00
USD
-53.600.00
USD
You have now calculated the values for the %XVLQHVV DV

8VXDO scenario. These values have been copied to the
%XVLQHVV DV 8VXDO worksheet tab for your future reference.
10
Having calculated a value for this scenario, you are interested in any functionality that
can help to speed up this process, such as planning sequences.
A planning sequence allows us to run a number of planning functions one after
another by just executing one planning function. You are going to use the %XVLQHVV DV
8VXDO planning sequence to execute the calculations for # of diabetes patients, net
sales and calculate position plan. Process the following steps to try out the Planning
Sequence functionality.
SAP AG
SEM010
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10-1
Display the configuration for the %XVLQHVV DV 8VXDO planning sequence.

Which planning functions and parameter groups are going to be run and in
which order? What effect will this have on the figures?
Expand the planning sequences planning function in the lower left section
of the screen.
Right click on the EXVLQHVV DV XVXDO planning sequence and select GLVSOD\
SODQQLQJ VHTXHQFH.
You can tell which specific functions and parameter groups are going to
be run by the technical names (as shown below).
In this case the %XVLQHVV DV 8VXDO planning sequence is going to execute

the following three formulas:
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Copy and paste the figures for the years 20012005 from the 0DVWHU SODQ
worksheet to the 8VHU worksheet so that you are starting from the original
figures again.
6FHQDULRV layout and choosing (QWHU SODQ GDWD
Select the 0DVWHU 3ODQ worksheet.
Copy (Ctrl C) the selection as shown below.
Select the 8VHU worksheet and paste the selection (Ctrl V).
10-3
Re-enter the prevalence and market share estimates from the 3ODQQLQJ
$VVXPSWLRQV document into the 8VHU worksheet for the years
20012005 (see Exercise 4-2 for the estimates that you should have
copied from the BIC document earlier).
Enter the data in the relevant fields (as shown below).
3RWHQWLDO 0DUNHW
0DUNHW 6KDUH
10-4

24,516,130 ST
24,600,000
24,900,000
25,200,000
25,500,000
25,800,000
62%
50%
45%
40%
40%
40%
Execute the %XVLQHVV DV 8VXDO planning sequence. The values calculated

will be the same as those at the end of exercise 4.
Right click on the Business as Usual planning sequence and choose
([HFXWH SODQQLQJ VHTXHQFH.
The results should be the same as you calculated earlier, as you started
with the same assumptions and carried out the same formula calculation,
only in a more time-efficient manner.
10-5
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Save your datayou will be using this as the basis for your other scenarios.
Save your data by selecting the 6DYH icon.

SEM010
5-74
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7RSLF &RVW &XWWLQJ 6FHQDULR

sequence)
Having extrapolated the relevant planning assumptions and
calculated values for your %XVLQHVV DV 8VXDO scenario, you now
have a good idea of how the figures will look if the company
takes no action over the next five years.
You now decide to see how some different scenarios might play
out. First, you are interested to see whether a cost-cutting
program will help to regain profitability (assuming that
everything else remains as per the Business as Usual scenario).
Using your %XVLQHVV DV 8VXDO data as the basis, revalue your costs and then
recalculate the position plan.
11-1
Display the FRVW GHFUHDVH parameter group within the Costs Revaluation
planning function. Which key figures will be revalued?
Expand the &RVWV 5HYDOXDWLRQ planning function in the lower left section
of screen.
Right click on the FRVW GHFUHDVH parameter group and select GLVSOD\
SDUDPHWHU JURXS.
The key figures (COGS, admin. costs, sales costs and R&D costs) are
going to be revalued as shown below.
SAP AG
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5-75
11-2
Instead of executing the cost adjustment function followed by the position

plan recalculation function, you are going to execute the FRVW FXWWLQJ
planning sequence. What planning functions does the sequence contain
and in what order?
Expand the planning sequences planning function.
Right click on the FRVW FXWWLQJ planning sequence and select GLVSOD\
SODQQLQJ VHTXHQFH.
be run by the technical names used.
In this case, we are running the cost adjustment followed by the position
plan recalculation.
11-3
Before you execute the cost revaluation examine your costs (for example
COGS), they should be similar to the values shown below.
Right click on the 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULR layout and
choose the option (QWHU SODQ GDWD.

&RVW RI *RRGV
6ROG
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-5,200,000
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-5,200,000
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-5,200,000
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5-76
11-4
Execute the FRVW FXWWLQJ planning sequence. Tthis will carry out the cost
reduction and then calculate the other key figures to give you a final
figure. Your COGS line should be showing values similar to those below
after the revaluation.
Right click on the FRVW FXWWLQJ planning sequence and choose ([HFXWH
SODQQLQJ VHTXHQFH.

&RVW RI *RRGV
6ROG
11-5

-5,200,000
USD

-4,940,000
USD
-4,810,000
USD

-4,810,000
USD

-4,680,000
USD
-4,680,000
USD
Save the results of the cost cutting scenario.

The results of the cost cutting scenario have been copied to

the &RVW &XWWLQJ worksheet. If you wanted to keep this in
the database (in addition to the Business as Usual scenario)
for future use, then you would want to save it as a different
version. In our example, however, we are simply going to
use the values calculated to act as the base for our next
scenario.
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sequence)
The cost cutting scenario has helped to regain a certain level of
profitability but does little on its own to regain market leadership.
You decide to keep the results of the cost cutting exercise but
want to test a scenario that you believe will help PharmaStar to
win back some market share.
It so happens that the company has been working on a new
product, the insulin inhaler. This has led the company to revise
the product pricing model and the future projected estimates for
market share. Based on these new assumptions, you revise your
net sales, your costs (based on the likely higher R&D/marketing
costs that a new product will bring), and the remaining key
figures.
12
Division.
Select 3KDUPD6WDU (Planning Area)'LY'LDE 'RFV (Planning Level)
Right click on the DG KRF SDFNDJH and choose 'LVSOD\ SDFNDJH.
Right click on the 'RFXPHQWV SODQQLQJ function and choose &DOO XS.
12-1
12-2
Access the 1R PRUH LQMHFWLRQV" document.
Copy the assumptions for PDUNHW VKDUH and revised SULFLQJ SHU XQLW to
the boxes below. These figures represent our estimate of the likely trends
with regard to the introduction of our insulin inhaler product.
Right click on the 1R PRUH LQMHFWLRQV" document and choose 'LVSOD\.
5HYLVHG :RUOGZLGH 3KDUPD6WDU 0DUNHW 6KDUH (VWLPDWHV

55%
62%
63%
64%
65%
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0.25
0.27
0.27
0.28
0.28
Return to planning level 'LY 'LDE <HDUO\ 3ODQQLQJ DG KRF SDFNDJH and copy the
market share and pricing figures into your 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULRV
layout.
13
Select 'LY 'LDE <HDUO\ 3ODQQLQJ Planning Level and DG KRF SDFNDJH.
Expand the 0DQXDO 3ODQQLQJ planning function.
Right click on the 'LY 'LDE <HDUO\ 3ODQQLQJ 6FHQDULRV layout and choose (QWHU SODQ
GDWD.
Enter the data as shown below.

0DUNHW 6KDUH
6DOHV 3ULFH
14

62%
55%
62%
63%
64%
65%
0.25 USD
0.25 USD
0.27 USD
0.27 USD
0.28 USD
0.28 USD
You are going to use the UHJDLQ PDUNHW OHDGHUVKLS planning sequence to calculate
the effect of the increased market share and increased price on our sales. In
addition, the sequence will revalue our costs to take into account the fact that this
new product will cost extra to get it to market.
14-1
Display the UHJDLQ PDUNHW OHDGHUVKLS planning sequence to understand

which planning functions are going to be executed in the sequence.
Expand the SODQQLQJ VHTXHQFHV planning function in the lower left
section of the screen.
Right click on the UHJDLQ PDUNHW OHDGHUVKLS planning sequence and

select GLVSOD\ SODQQLQJ VHTXHQFH.
be run by the technical names used.
In this case, we are going to calculate the number of new diabetes patients
our increased market share will give us. After this we are going to
calculate the value of the net sales based on the number of diabetes
patients multiplied by consumption and the new pricing model.
Additionally, we are going to revalue costs to take into account the
additional costs that invariably arise with new products. Lastly, we will
recalculate the position plan (LH, gross profit, free cash flow, etc.).
SAP AG
SEM010
5-79
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Execute the UHJDLQ PDUNHW OHDGHUVKLS planning sequence. Your results

should be similar to those below.
Return to the layout so that you can see the values being calculated.
Right click on the UHJDLQ PDUNHW OHDGHUVKLS planning sequence and

choose ([HFXWH SODQQLQJ VHTXHQFH.
14-3
Save the results of the UHJDLQ PDUNHW VKDUH scenario.
The results of the regain market share scenario have been

copied to the 5HJDLQ 0/ worksheet. If you wanted to keep
this in the database (in addition to the other scenarios) for
future use, then you would want to save it as a different
version.
In our example, however, we are going to save this using our
current version and then carry out the last step of our
scenario.
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Process planning functions (HJ, Distribution, planning
sequence)
If all goes according to the UHJDLQ PDUNHW VKDUH scenario, then
PharmaStar will regain profitability and market leadership with
the introduction of the insulin inhaler. Therefore, you decide to
take the figures for 2001 and distribute them to form the periodic
plan for the year.
15
Select the Planning Level 'LY 'LDE 3HULRG 3ODQQLQJ and the DG KRF
SDFNDJH. In order to process the scenarios for RQO\ your group s data, change and
then save the package so that it includes your data 9HUVLRQ ; (where X = your
course letter and ## = your group number).
Expand 'LY 'LDE 3HULRG 3ODQQLQJ Planning Level to show the available
packages.
Right click on the DG KRF SDFNDJH and select &KDQJH 3DFNDJH.
A version has been created for each group, so enter your group number as the
Version.
(YHU\ WLPH \RX OHDYH WKH PDLQ %36 VFUHHQ WKH DG KRF
SDFNDJH ZLOO UHVHW WKH 9HUVLRQ ,W LV WKHUHIRUH HVVHQWLDO
WKDW \RX UHVHW WKH 9HUVLRQ WR ; HYHU\ WLPH \RX UHWXUQ
WR WKH SDFNDJH
15-1
In terms of the selection of characteristics, what is the main difference

between the 'LY 'LDE <HDUO\ 3ODQQLQJ planning level and 'LY
'LDE 3HULRG 3ODQQLQJ planning level?
Right click on the 3HULRGLF 3ODQ package and select 'LVSOD\
3DFNDJH.
The main difference is the selection of the 3RVWLQJ 3HULRG characteristic.

We need this characteristic in our package if we are to distribute the
yearly amounts across the periods.
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SEM010
5-81
15-2
Open the planning layout 'LY 'LDE 3HULRGLF 3ODQQLQJ Note that there
are no values for the periods yet.
Expand the 0DQXDO 3ODQQLQJ option.
Right click on the 'LY 'LDE 3HULRGLF 3ODQQLQJ layout and choose (QWHU
SODQ GDWD. Choose <HV to enable Excel macros.
15-3
Display the DFURVV SHULRGV planning function and note how the
yearly values are going to be distributed across the periods.
Expand the 3HULRGLF 'LVWULEXWLRQ planning function.
Right click on the DFURVV SHULRGV parameter group and choose
'LVSOD\ SDUDPHWHU JURXS.
The values are going to be distributed equally.

15-4
Return to the layout and execute the DFURVV SHULRGV planning
function. What has happened to the \HDUO\ YDOXHV in the first column?
Why has this happened?
Return to the layout. Right click the layout and choose (QWHU SODQ GDWD.
Expand the 3HULRGLF 'LVWULEXWLRQ planning function. Right click on the
DFURVV SHULRGV parameter group and choose ([HFXWH SDUDPHWHU
JURXS.
The \HDUO\ values return to zero. This is because the column has been set
up to show values for the posting period # (unassigned). Basically, when
we were planning against the year earlier, we did not reference any
periods and thus the values were as a default unassigned (#) with
regard to the periods.
When we then do this distribution, the values become assigned, and
therefore we end up with zero against #. This does not mean that we have
no values for the fiscal year, it simply means that we have now assigned
the fiscal year values across the periods. In other words we have assigned
the values from year 2001, period # to year 2001, periods 112.
SAP AG
SEM010
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15-5
Your results should be similar to those below.
Note the value for QHW VDOHV for the current period (we ll come back to this later). Save
your data before leaving the planning screen.
1HW 6DOHV
9DOXH
&XUUHQW 3HULRG
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Success is measured by the speed with which a business strategy can be realized. To optimize
enterprise controlling. SAP has developed the New Dimensions component 6WUDWHJLF (QWHUSULVH
0DQDJHPHQW (SEM).
One of the main advantages of SAP SEM is the support it offers to strategic management processes
by linking strategic and operational actions.
Internal control of an enterprise can be carried out using value-oriented management principles.
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Complex group structures have to be managed effectively.

At the same time, increasing globalization requires decentralized group management for
independent organizational units.
Business units that are close to the market have to be managed decentrally in order to leverage their
full market potential.
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Global process optimization allows synergies (know-how, core competencies) to be detected more
quickly and used more efficiently in the group.
New business concepts can be transferred from one unit to another.
Enterprise goals are increasingly being set "from the outside" by shareholders, for example. The
executive board now has the task of implementing these goals internally.
The corporate group head office calculates key figures and defines goals for the strategic business
entities. Here, non-monetary success factors also have an influence. The group has the relevant
information earlier, and no longer has to wait until effects are seen in the income statement.
Formerly, external and internal accounting were usually separate (HJ, due to different valuation
methods). Today, the goal is to unite external and internal accounting, since the requirements for
legal consolidation also comprise a certain amount of information relevant to cost accounting.
The company is controlled according to internal enterprise structures that can be very detailed. This
means that extremely flexible structures are necessary. The company is no longer the basis of
consolidation in all areas.
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Reconciled, internal and external group reporting

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Accrual accounting and value accounting
Multiple data categories such as actual data, budget, forecast
Complete automation of activities even complex ones

Divestitures, transfers, changes in indirect investment, etc.
International accounting rules

US GAAP, IAS, HGB (German commercial code), etc.
Comprehensive reporting
Fast startups, easy handling
Fast processing, authorizations
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Steps involved in the consolidation of data.
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You can access all functions from the SEM-BCS application menu.
Organizational data is structured in hierarchies, from which you can maintain master data, start and
monitor data collection and consolidation functions (monitors), and generate reports.
Many complex functions (such as the entry of additional data for consolidation of investments and
the assignment of consolidation of investments methods) also use hierarchical displays with simple
navigation.
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A data monitor and a consolidation monitor control the status of the consolidation process and allow
for the immediate execution of activities. Each monitor covers a number of tasks required for the
data standardization and consolidation process.
Tasks are user-defined. They are grouped together in task groups that include information about their
sequence. Task groups are assigned to dimensions.
You can view the overall status of consolidation units and groups.
You can view the detail status of each task.
Periods can be opened / closed.
Tasks can be run in test or update mode.
Tasks can be blocked / unblocked.
All tasks can be run up to the next milestone.
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Consolidation units are the smallest organizational units for which data collection and consolidation
processing takes place. Important attributes of consolidation units are their description, address, data
transfer method, financial data type, tax rate (for deferred tax postings), and local currency.
Consolidation groups are time- and version-dependent aggregations of consolidation units or

consolidation groups. Important attributes of consolidation groups are their group currency and
consolidation frequency, as well as the period of first consolidation and divestiture accounting that
can be defined individually for all units and groups that belong to the group.
Dimensions are user-defined, and represent different types of consolidation, for example:
Company consolidation
cons unit = company
Business area consolidation

Profit center consolidation
Consolidation of user-defined units

n
cons unit = company / business area

cons unit = company / profit center
cons unit = user defined (for example, division)
Dimensions can be linked to each other by means of validation rules (consistency checks) and in
reporting.
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In order to create consolidated financial statements, the transaction data of all the consolidation units
included must be uniformly aggregated. For this purpose, the group headquarters provides all
consolidation units with RQH RU PRUH consolidation charts of accounts. These charts of accounts
structure the financial statement items in accordance with the internal and external requirements of
the consolidated financial statements. In the consolidation chart of accounts, all financial statement
items are arranged logically in an item hierarchy.
The consolidation chart of accounts is client-dependent only. Therefore, you can use it in different
dimensions.
To allow the integrated transfer of reported financial data from SAP transaction applications, you
must create a link between the G/L accounts and any secondary cost elements, and the consolidation
financial statement items. With the rollup method of data collection, the IDs of the transaction
accounts are identical to the IDs of the financial statement items. With periodic extract the financial
statement version items and the consolidation items are identical. In order to ensure that the IDs
correspond, you can create the consolidation chart of accounts from both the Financials (FI) chart of
accounts and the financial statement version.
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2
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Data collection from SAP Systems

Rollup from an FI-SL ledger
Periodic extract from FI-GL
Periodic extract from an FI-LC system (HJ, step consolidation)
Rollup from another SEM-BCS system (HJ, step consolidation)
Periodic extract from R/2 (planned)
Data collection from non-SAP systems

Flexible upload from data extracts created by non-SAP systems
MS Access offline data entry using an additional MS Excel interface
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Posting
Closing 1 consolidation unit

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SAP AG 2001
The concept of user-defined validation is employed in many SAP applications.
Validations are available in addition to the standard checks in the SEM-BCS posting transaction.
You can run validation when processing the following:
Document header
Individual document line
Complete document
Validation for a consolidation unit typically takes place after data collection (in local currency) and
currency translation (into group currency).
Validation across consolidation units or dimensions is essential for ensuring reconciled data in legal
and management consolidation.
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A consolidated balance sheet shows only payables and receivables that relate to non-affiliated
companies. Payables and receivables resulting from goods and services transactions within the
corporate group must be eliminated.
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Simultaneous and Step Consolidation for any type of corporate structure
Support of US GAAP, IAS and Germanys HGB
Treatment of investments, equity, goodwill (with special amortization)
Automatic recognition of activities or manual entry of activities
Automatic generation of posting documents
Processing of almost all business transactions
Predefined C/I methods included in the standard system
Easy definition of customer-specific methods through parameter selections
Method allocation using inheritance logic for multiple-level groups
Comprehensive specialized reports and unrestricted reporting
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Characteristics determine how the dataset is classified. Consolidation unit, item, and posting level
are just some examples of characteristics. Note that time categories (fiscal year, period, and so on)
are also seen here as characteristics.
The master data includes the permitted values of a characteristic (characteristic values).
Combinations of characteristics or characteristic values are often referred to in the documentation as
objects.
If there are three characteristics, the relationship between them can be illustrated using the above
graphic. The result is a cube, the sides of which represent the various characteristics (consolidation
unit, item, and posting level in this example). Each characteristic is subdivided into several
characteristic values. The slices represent combinations of characteristic values. One possible
evaluation object might be the consolidation unit *HUPDQ\, item 6DOHV, and the posting level
5HSRUWHG GDWD.
There are many key figures in your application that might be relevant to the evaluation process. Key
figures in SEM-BCS are values from transaction, local, and group currencies, and quantity
calculations, based on formulas that you have defined.
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The reporting functionality in the SAP Business Information Warehouse provides a wide range of
options for analyzing and visualizing the data stored in InfoCubes.
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Set the global system parameters
Create a consolidation unit and assign it to a hierarchy
Upload and Validate data
Execute a Currency Translation
Execute an Inter-Unit Elimination

Based on its economic success, the corporate group G1 decides to
implement the SAP component SEM-BCS by the end of 2000 in order to
secure its market position. Management wants to prepare consolidated
financial statements for December 2000 using the SAP System.
Experienced consultants are required in order to implement the SEMBCS component in such a short space of time. Your firm is one of those
eager to win the consulting contract.
Each consulting firm is required to build a prototype that will form the
basis of its presentation to the group G1 steering committee. The
competitors will be judged on the outcome of this presentation, and the
contract for implementation of SEM-BCS will be awarded accordingly.
You have been asked by the management of your consulting firm to build
a prototype with a colleague, within the next hour!
Structure of corporate group G1:
G1
G2
(where G1 and G2 are consolidation groups and A, B, C, D and E are

consolidation units).
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1-1
Session parameters:
Your first step is to set the parameters within which you will be working (HJ,
which Dimension, Chart of Accounts, etc., you are using). To set your global
parameters, you choose from the application menu.
6$3 PHQX %XVLQHVV &RQVROLGDWLRQ *OREDO SDUDPHWHUV
Enter the following:
)LHOG 1DPH
9DOXH
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1-2
Defining a consolidation unit and assigning it to the hierarchy.
Create consolidation unit ( belonging to consolidation * of the existing hierarchy

in your dimension. You can create a consolidation unit and assign it to a hierarchy
in one step. To do this, choose:
%XVLQHVV &RQVROLGDWLRQ 0DVWHU 'DWD &RQVROLGDWLRQ *URXSV
+LHUDUFK\ (GLW
Expand the hierarchy H1.
Put your cursor on Consolidation Group G2 and choose the &UHDWH icon.
Type ( as the Cons Unit and &RQVROLGDWLRQ 8QLW ( as the Medium Text. Ensure
that the &RQV XQLW radio button is selected. Now double click on the new
Consolidation Unit that you have created (() and the relevant tabs that need to be
completed will appear on screen.
In the 0DVWHU 'DWD tab, enter the following information in the appropriate fields.
Short and medium text: &RQV XQLW (

Country: 86
Language: (1
Local currency: 86'
Names 1 and 2: &RQVROLGDWLRQ XQLW (
Choose the &RUUHVSRQGHQFH tab for cons unit master data, and enter the
following.
Street: ( VWUHHW
City: ( &LW\
Choose the 0HWKRGV tab and enter the following data.

Validation Period Category: 3HULRG
Val ID rptd data: 9
Val ID std. data: 9
Choose the 'DWD &ROOHFWLRQ tab and enter the following data.
Data Transfer Method: )OH[LEOH 8SORDG (press (QWHU and the following field
will appear)
Upload method: 83/
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Now select the following menu path to complete the master data definition.
*RWR )LVFDO <HDU 9DULDQW
Select the 1HZ (QWULHV icon.

Enter the following data.
Ledger: &
Fiscal Year Variant: .
Save your assignment by clicking on the 6DYH icon.

Once you have returned to the main screen, ensure you save all of the changes you
have made to your master data by selecting the 6DYH icon.
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2-1
Master data for the consolidation chart of accounts.

To display consolidation chart of accounts master data, you choose:
%XVLQHVV &RQVROLGDWLRQ 0DVWHU 'DWD )6 ,WHPV +LHUDUFK\ (GLW
Go to the chart of accounts master data by double clicking on the chart of
accounts at the top of the hierarchy display.
You can see that your chart of accounts allows for an output length of six places
for its Financial Statement (FS) items, and that the appropriation of retained
earnings is stated in the balance sheet.
2-2
Financial Statement Items:

You would like to edit the FS (Financial Statement) Item hierarchy. The
,QVXUDQFH H[SHQVH FS item needs to be broken down into more detail so that
we can see balances for EXLOGLQJ LQVXUDQFH separate from WKLUGSDUW\ OLDELOLW\
LQVXUDQFH. To do this, we want to change the ,QVXUDQFH ([SHQVH FS item to a
totals item (grouping of FS items) and add two new FS items (value items)
underneath.
&KDQJLQJ DQ )6 ,WHP
Still within the Consolidated chart of accounts (COA) (menu path as per
question 2-1 above), navigate to the income statement item ,QVXUDQFH
([SHQVH
Double click on the item ,QVXUDQFH ([SHQVH to go to its master data.
Once you can see the master data, set the )6 LWHP W\SH to 7RWDOV LWHP and save
your change.
&UHDWLQJ WZR QHZ )6 ,WHPV
Leave your cursor on the totals item and choose the &UHDWH icon.
Enter the two new items, for example and as shown below.
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Building Insurance
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Third Party Liability Insurance
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Check the master data for your new FS Items by double clicking on them.
Save your entries.
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3-1
Running a Flexible Upload.
6DYLQJ WKH ILOH WR WKH & 'ULYH
We wish to load the data for the unit E in cons group G2 into the system. To do
this, we need to first locate the financial information, which, in this case, we have
saved to a .txt file.
To do this, return to the main SAP screen and select the 6$3 %XVLQHVV :RUNSODFH
icon. This will take you to your Business Workplace.
Within your Business Workplace, select:
6KDUHG IROGHUV 6(0%&6 %XVLQHV &RQVROLGDWLRQ
Select the document titled 8SORDG ILOHV IRU 6(0 DQG 6(0. Double click
on the 'LVSOD\ GRFXPHQW option to the left of the selected document and then scroll
down. Find and select the file for Consolidation Unit E titled
8SORDGILOHBILQBGDWDB&8BH.
Once the file opens, select the following path to save it to your drive:
)LOH 6DYH DV
Navigate to C:\Temp and save the file.
8SORDG WKH )LOH LQWR 6(0%&6
You now wish to upload the file that you have just saved to your hard drive.
Start a second SAP session by selecting the &UHDWH D QHZ VHVVLRQ icon, and from
this session choose:
%XVLQHVV &RQVROLGDWLRQ 'DWD &ROOHFWLRQ 0RQLWRU
Show all the tasks and expand the entire hierarchy by clicking on the ([SDQG
(down arrow) icon.
Place your cursor on the intersection of the line for Consolidation Unit E and the
column for the data input task.
Choose the 8SGDWH UXQ icon.
Choose the LPSRUW GDWD icon beside the 5HSRUWHG )LQDQFLDO 'DWD text.
SAP AG
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Enter the following information in the relevant fields:

Physical file name:
&?7(03?a8SORDGILOHBILQBGDWDB&8BHBB7;7
File format: $6&

Return to the Monitor screen and you should see results as below, which tells us
that the upload has been successful.
Block the task for Consolidation Unit E by putting your cursor on the intersection
of the line for E and the column for the data entry task. Choose the %ORFN (lock)
icon.
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Now that all the data has been uploaded to the ECMCT consolidation table, including our new
consolidation unit E, we need to validate the data to make sure it is consistent and correct.
4.1
Displaying a Validation:
To display the configuration for a validation, you need to access the SAP IMG
(implementation guide) by typing RVSUR in the command field or by going through the
following menu path:
6$3 PHQX 7RROV %XVLQHVV (QJLQHHU &XVWRPL]LQJ 6(0 %&6
Then select the following menu path:
6$3 5HIHUHQFH ,0* 6(0 %XVLQHVV &RQVROLGDWLRQ 'DWD 9DOLGDWLRQV IRU
5HSRUWHG 'DWD DQG 6WDQGDUGL]HG 'DWD 'HILQH 9DOLGDWLRQV 'LVSOD\ 9DOLGDWLRQ
The validation that we are using for the reported data and the standardized data is 9.
View the validation by selecting:
9 6WHS
The validation has been created so that in the event of depreciation of machinery and
equipment in the balance sheet and depreciation of machinery and equipment in the
income statement not being equal, a warning message will be issued. Evidently, this is
something we would want to solve before we continue with our preparation tasks.
If you select the &KHFN option under 9 6WHS then you will see the check that is
being carried out in more comprehensible language, as shown below.
SAP AG
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4.2
Running a Validation.
Having uploaded financial data in the last section, we wish to validate this data (HJ,
does assets = liabilities plus equity). To do this, we return to the Data Monitor using the
6$3 PHQX %XVLQHVV &RQVROLGDWLRQ 'DWD &ROOHFWLRQ 0RQLWRU
Show all the tasks and expand the entire hierarchy.
Place your cursor on the intersection of the line for cons group G1 and the column for
the validation task.
Check the results. You should find that the data for consolidation units A, B and C have
received warnings when validated. We will ignore these, but in reality, you would want
to solve these issues before you moved on.
Return to the Data Monitor. You should find that the tasks have been automatically
blocked as shown below.
Finally, block the 6WDQGDUG 3RVWLQJ task at the CG1 level, as we will not be doing
any standardizing (manual) postings.
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We need to carry out translation of Consolidation Unit 's local currency (DEM) into the
Group currency (USD) in accordance with country accounting standards.
5-1
Assignment of Currency Method.

Assign your translation method to Consolidation Unit D. You can do this from within
the Data Monitor.
Double click on &RQVROLGDWLRQ 8QLW ' and then select the 0HWKRGV tab. Enter the
following data in the appropriate field.
Translation Method: ;< (XY = 70 + your group number)
Save your change by clicking on the 6DYH icon.
5-2
Execute Currency Translation.

From within the Data Monitor:
the currency translation task.
Check the results by selecting the &XUUHQF\ WUDQVODWLRQ and GLIIHUHQFHV options.
Return to the Monitor screen and you should see that the translation has been
successful.
Block the task for Consolidation Group 1 by placing your cursor on the intersection of
the line for CG1 and the column for the currency translation task.
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6.1
Executing a Validation:
Having now entered standardizing data and carried out a currency translation we want
to finally validate the data in group currency before we continue to the consolidation
tasks within the Consolidation Monitor.
We do this from within the Data Monitor.
the validation task.
Check the results. You should find that the data in consolidation units A, B and C have
received warnings. We will ignore these, but in reality, you would want to solve these
issues before you moved on.
blocked.
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We now have aggregated, validated financial statement data for our entire consolidation group
hierarchy. It is time to perform the consolidation tasks. In particular, it is necessary to perform
the inter-unit elimination task for inter-unit receivables and payables.
7-1 Executing the elimination task from the Consolidation Monitor.
Having prepared all of our data, we want to run the consolidation tasks. We will be
doing this from within the Consolidation Monitor.
%XVLQHVV &RQVROLGDWLRQ &RQVROLGDWLRQ 0RQLWRU
You run the inter-unit elimination task from the consolidation monitor by placing your
cursor on the intersection between the line for cons group G1 and the column for the
AR/AP IU elimination task.
Review the results and return to the Consolidation Monitor.
7KLV LV DV IDU DV ZH DUH JRLQJ IRU 6(0 )RU WKH IXOO ILYHGD\ GHWDLOHG FRXUVH
SOHDVH DWWHQG 6(0 6(0%&6 RU $& (&&6
Some IMG menus (enter RVSUR in the Command Field and then follow *RWR 6$3
5HIHUHQFH ,0*) that you may find of use with regard to integration issues and that
you can use to access screen-sensitive help are as follows:
BW Integration
6(0 &RQQHFWLRQ WR %XVLQHVV ,QIRUPDWLRQ :DUHKRXVH
R/3 Integration
6(0 %XVLQHVV &RQVROLGDWLRQ ,QWHJUDWLRQ 3UHSDUDWLRQ IRU &RQVROLGDWLRQ
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Set the global system parameters
Create a consolidation unit and assign it to a hierarchy
Upload and Validate data
Execute a Currency Translation
Execute an Inter-Unit Elimination

Based on its economic success, the corporate group G1 decides to
implement the SAP component SEM-BCS by the end of 2000 in order to
secure its market position. Management wants to prepare consolidated
financial statements for December 2000 using the SAP System.
Experienced consultants are required in order to implement the SEMBCS component in such a short space of time. Your firm is one of those
eager to win the consulting contract.
Each consulting firm is required to build a prototype that will form the
basis of its presentation to the group G1 steering committee. The
competitors will be judged on the outcome of this presentation, and the
contract for implementation of SEM-BCS will be awarded accordingly.
You have been asked by the management of your consulting firm to build
a prototype with a colleague, within the next hour!
Structure of corporate group G1:
G1
G2
(where G1 and G2 are consolidation groups and A, B, C, D and E are

consolidation units).
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1-3
Session parameters:
Your first step is to set the parameters within which you will be working (HJ,
which Dimension, Chart of Accounts, etc., you are using). To set your global
parameters, you choose from the application menu.
6$3 PHQX %XVLQHVV &RQVROLGDWLRQ *OREDO SDUDPHWHUV
Enter the following:
)LHOG 1DPH
9DOXH
'LPHQVLRQ
XY (XY = 70 + your group number,

group 01 = 71, group 10 = 80, etc.)
9HUVLRQ
100
)LVFDO <HDU
2000
3HULRG
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&RQV FKDUW RI DFFRXQWV
XY (XY = 70 + your group number)
/HGJHU
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1-4
Defining a consolidation unit and assigning it to the hierarchy.
Create consolidation unit ( belonging to consolidation * of the existing hierarchy

in your dimension. You can create a consolidation unit and assign it to a hierarchy
in one step. To do this, choose:
%XVLQHVV &RQVROLGDWLRQ 0DVWHU 'DWD &RQVROLGDWLRQ *URXSV
+LHUDUFK\ (GLW
Expand the hierarchy by placing your cursor on + and then selecting the ([SDQG
/HYHO icon.
Put your cursor on Consolidation Group G2 and choose the &UHDWH icon.
Type ( as the Cons Unit and &RQVROLGDWLRQ 8QLW ( as the Medium Text. Ensure
that the &RQV XQLW radio button is selected. Now double click on the new
Consolidation Unit that you have created (() and the relevant tabs that need to be
completed will appear on screen.
In the 0DVWHU 'DWD tab, enter the following information in the appropriate fields.
Short and medium text: &RQV XQLW (

Country: 86
Language: (1
Local currency: 86'
Names 1 and 2: &RQVROLGDWLRQ XQLW (
Choose the &RUUHVSRQGHQFH tab for cons unit master data, and enter the following.
Street: ( VWUHHW
City: ( &LW\
Choose the 0HWKRGV tab and enter the following data.

Validation Period Category: 3HULRG
Val ID rptd data: 9
Val ID std. data: 9
Choose the 'DWD &ROOHFWLRQ tab and enter the following data.
Data Transfer Method: )OH[LEOH 8SORDG (press (QWHU and the following field
will appear)
Upload method: 83/
Now select the following menu path to complete the master data definition.
*RWR )LVFDO <HDU 9DULDQW
Select the 1HZ (QWULHV icon.
Enter the following data.
Ledger: &
Fiscal Year Variant: .

SAP AG
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Save your assignment by clicking on the 6DYH icon.
You may at this point be asked to enter a &XVWRPL]LQJ 5HTXHVW 1XPEHU. If you
are, then select the &UHDWH UHTXHVW icon, enter some text and then press enter.
Once you have returned to the main screen, ensure you save all of the changes you
have made to your master data by selecting the 6DYH icon.
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Master data for the consolidation chart of accounts.

To display consolidation chart of accounts master data, you choose:
%XVLQHVV &RQVROLGDWLRQ 0DVWHU 'DWD )6 ,WHPV +LHUDUFK\ (GLW
Go to the chart of accounts master data by double clicking on the chart of
accounts at the top of the hierarchy display.
You can see that your chart of accounts allows for an output length of six places
for its Financial Statement (FS) items, and that the appropriation of retained
earnings is stated in the balance sheet.
2-4
Financial Statement Items:

You would like to edit the FS (Financial Statement) Item hierarchy. The
,QVXUDQFH H[SHQVH FS item needs to be broken down into more detail so that
we can see balances for EXLOGLQJ LQVXUDQFH separate from WKLUGSDUW\ OLDELOLW\
LQVXUDQFH. To do this, we want to change the ,QVXUDQFH ([SHQVH FS item to a
totals item (grouping of FS items) and add two new FS items (value items)
underneath.
&KDQJLQJ DQ )6 ,WHP
Still within the Consolidated chart of accounts (COA) (menu path as per
question 2-1 above), navigate to the income statement item ,QVXUDQFH
([SHQVH by expanding the COA as follows:
,6 1HW LQFRPH 1HW LQFRPH %HIRUH 0LQRULW\

,QWHUHVW ,QFRPH IURP &RQWLQXLQJ 2SHUDWLRQV ,QFRPH
EHIRUH 7D[HV 2SHUDWLQJ ,QFRPH 2SHUDWLQJ ([SHQVHV
OR
Alternatively, you can place your cursor on the ,6 (Income Statement)

hierarchy, choose the 6HDUFK (binoculars) icon and enter ,QVXUDQFH ([SHQVH as
the search term. A hit list will pop up and you can select the financial statement
item you are interested in and be navigated to the item.
Double click on the item ,QVXUDQFH ([SHQVH to go to its master data.
Once you can see the master data, set the )6 LWHP W\SH to 7RWDOV LWHP and save
your change by clicking on the 6DYH icon. Note that the ,QVXUDQFH
([SHQVH indicator in the hierarchy has now changed to reflect that it has gone
from being a value item to being a totals item.
&UHDWLQJ WZR QHZ )6 ,WHPV
Leave your cursor on the totals item and choose the &UHDWH icon.
SAP AG
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Enter the two new items, for example and as shown below.
)6 LWHP
0HGLXP 7H[W
311201
Building Insurance
311202
Third Party Liability Insurance
Select the FKHFNPDUN icon to continue.

Check the master data for your new FS Items by double clicking on them.
Save your entries by clicking on the 6DYH icon.
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8QLW 6(0%&6
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Running a Flexible Upload.
6DYLQJ WKH ILOH WR WKH & 'ULYH
We wish to load the data for the unit E in cons group G2 into the system. To do
this, we need to first locate the financial information, which, in this case, we have
saved to a .txt file.
To do this, return to the main SAP screen and select the 6$3 %XVLQHVV :RUNSODFH
icon. This will take you to your Business Workplace.
Within your Business Workplace, select:
6KDUHG IROGHUV 6(0%&6 %XVLQHV &RQVROLGDWLRQ
Select the document titled 8SORDG ILOHV IRU 6(0 DQG 6(0. Double click
on the 'LVSOD\ GRFXPHQW option to the left of the selected document and then scroll
down. Find and select the file for Consolidation Unit E titled
8SORDGILOHBILQBGDWDB&8BH.
Once the file opens, select the following path to save it to your drive:
)LOH 6DYH DV
Navigate to C:\Temp and save the file.
8SORDG WKH )LOH LQWR 6(0%&6
You now wish to upload the file that you have just saved to your hard drive.
Start a second SAP session by selecting the &UHDWH D QHZ VHVVLRQ icon, and from
this session choose:
Show all the tasks and expand the entire hierarchy by clicking on the ([SDQG
(down arrow) icon.
Place your cursor on the intersection of the line for Consolidation Unit E and the
column for the data entry task, as shown below:
SAP AG
SEM010
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Choose the 8SGDWH UXQ icon..
Choose the LPSRUW GDWD icon beside the 5HSRUWHG )LQDQFLDO 'DWD text as shown
below.
Enter the following information in the relevant fields:

Physical file name:
&?7(03?a8SORDGILOHBILQBGDWDB&8BHBB7;7
File format: $6&

Return to the Monitor screen and you should see results as below, which tells us
that the upload has been successful.
Block the task for Consolidation Unit E by putting your cursor on the intersection
of the line for E and the column for the data entry task. Choose the %ORFN (lock)
icon.
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Now that all the data has been uploaded to the ECMCT consolidation table including our new
consolidation unit E, we need to validate the data to make sure it is consistent and correct.
4.1
Displaying a Validation:
To display the configuration for a validation, you need to access the SAP IMG
(implementation guide) by typing RVSUR in the command field or by going through the
6$3 PHQX 7RROV %XVLQHVV (QJLQHHU &XVWRPL]LQJ 6(0 %&6
Then select the following menu path:
6$3 5HIHUHQFH ,0* 6(0 %XVLQHVV &RQVROLGDWLRQ 'DWD 9DOLGDWLRQV IRU
5HSRUWHG 'DWD DQG 6WDQGDUGL]HG 'DWD 'HILQH 9DOLGDWLRQV 'LVSOD\ 9DOLGDWLRQ
The validation that we are using for the reported data and the standardized data is 9.
View the validation by selecting:
9 6WHS
The validation has been created so that in the event of depreciation of machinery and
equipment in the balance sheet and depreciation of machinery and equipment in the
income statement not being equal, a warning message will be issued. Evidently, this is
something we would want to solve before we continue with our preparation tasks.
If you select the &KHFN option under 9 6WHS then you will see the check that is
being carried out in more comprehensible language, as shown below.
SAP AG
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4.2
Running a Validation.
Having uploaded financial data in the last section, we wish to validate this data (HJ,
does assets = liabilities plus equity). To do this, we return to the Data Monitor using the
6$3 PHQX %XVLQHVV &RQVROLGDWLRQ 'DWD &ROOHFWLRQ 0RQLWRU
Show all the tasks and expand the entire hierarchy by clicking on the ([SDQG icon.
the validation task as shown below.

Check the results. You should find that the data for consolidation units A, B and C have
received warnings when validated. We will ignore these, but in reality, you would want
to solve these issues before you moved on.
blocked as shown below.
Finally, block the 6WDQGDUG 3RVWLQJ task at the CG1 level, as we will not be doing any
standardizing (manual) postings.
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We need to carry out translation of Consolidation Unit 's local currency (DEM) into the
Group currency (USD) in accordance with country accounting standards.
5-1
Assignment of Currency Method.

Assign your translation method to Consolidation Unit D. You can do this from within
the Data Monitor.
Double click on &RQVROLGDWLRQ 8QLW ' and then select the 0HWKRGV tab. Enter the
following data in the appropriate field.
Translation Method: ;< (XY = 70 + your group number)
Save your change by clicking on the 6DYH icon.
5-2
Execute Currency Translation.

From within the Data Monitor:
the currency translation task.
Check the results by selecting the &XUUHQF\ WUDQVODWLRQ and GLIIHUHQFHV options.
Return to the Monitor screen and you should see that the translation has been
successful.
Block the task for Consolidation Group 1 by placing your cursor on the intersection of
the line for CG1 and the column for the currency translation task and then choosing the
%ORFN (lock) icon.
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6.1
Executing a Validation:
Having now entered standardizing data and carried out a currency translation we want
to finally validate the data in group currency before we continue to the consolidation
tasks within the Consolidation Monitor.
We do this from within the Data Monitor.
the validation task as shown below.

Check the results. You should find that the data in consolidation units A, B and C have
received warnings. We will ignore these, but in reality, you would want to solve these
issues before you moved on.
blocked.
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We now have aggregated, validated financial statement data for our entire consolidation group
hierarchy. It is now time to perform the consolidation tasks. In particular, it is necessary to
perform the interunit elimination task for interunit receivables and payables.
7-1 Executing the elimination task from the Consolidation Monitor:
Having now prepared all of our data, we now want to run the consolidation tasks. We
will be doing this from within the Consolidation Monitor:
%XVLQHVV &RQVROLGDWLRQ &RQVROLGDWLRQ 0RQLWRU
You run the interunit elimination task from the consolidation monitor by placing your
cursor on the intersection between the line for cons group G1 and the column for the
AR / AP IU elimination task as shown below:

Review the results and return to the Consolidation Monitor.
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Some IMG menus (enter RVSUR in the Command Field and then follow *RWR ! 6$3
5HIHUHQFH ,0*) that you may find of use with regard to integration issues and that
you can use to access screen-sensitive help are as follows:
BW Integration
6(0 &RQQHFWLRQ WR %XVLQHVV ,QIRUPDWLRQ :DUHKRXVH
R/3 Integration
SEM Business Consolidation Integration: Preparation for Consolidation
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Two major areas, the Management Cockpit and the Balanced Scorecard, as well as delivered
templates
Features:
Integration and standardization of global, regional and divisional reporting
Easy and flexible definition of reports

Reporting of non-financial data
Support for strategic decision making
Support for Value-Based Management
Support for translation of strategic objectives into operative targets
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Close performance monitoring is the precondition to detect deviations in the organizations

performance from its target setting.
Deviations need to be analyzed with respect to their cause and their impact on the overall
performance of the company.
In a single-loop learning process, the analysis of deviations leads to actions on the operational
level to bring the organization back on target. The organizations wants to stick to its original
strategy but changes the way to transform the strategy into action.
In a double-loop learning process deviations are also analyzed with respect to the validity of the
strategy and the strategic planning process. It may lead to the insight that the strategy was based
on a wrong strategic assumption or that the strategic planning process needs to be redesigned.
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The InfoCubes of the SEM database technically lie in the OLAP structures of the SAP Business
Information Warehouse. This can be the SEM system instance itself or a remote SAP-BW which, in
addition to the SEM database, hosts other data.
Multidimensional OLAP analysis with the Business Explorer includes:

Tabular reports with MS-Excel formatting features
Free drill-down capabilities
Slice and dice capabilities.
KPI Reporting is based on interpretation models:
0HDVXUH %XLOGHU: A measure database with business-oriented measure descriptions, providing an

infrastructure for the SEM-CPM interpretation models
0HDVXUH 7UHH YLVXDOL]DWLRQ: Interpretation model for visualization of the impact of operational
value drivers on Key Performance Indicators (KPIs) with strategic relevance
%DODQFHG 6FRUHFDUG LQWHUSUHWDWLRQ PRGHO: Management System to model strategies, deploy
them and measure their execution by linking them to the right KPIs
0DQDJHPHQW &RFNSLW LQWHUSUHWDWLRQ PRGHO: Innovative Ergonomic approach to KPI

visualization online and/or on the walls of a meeting room to boost management communication
and effectiveness
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The Measure Builder is a logical infrastructure for the three KPI-based performance monitoring
models of the SEM-CPM.
Balanced Scorecard
Management Cockpit
Driver Trees
n
Measures can be defined with a detailed textual description and a formula for the measure
calculation in an abstract business-oriented way, independent of the technical data sourcing.
The defined Measures are grouped and listed in the hierarchical Measure Catalog.
Several derivations of the same measure can be defined, HJ, Return on Capital Employed (ROCE)-1
for the corporate level and ROCE-2 for business units.
Measures can be mapped to InfoObjects in InfoCubes of the SEM database to define how their data
can be sourced.
Measures can be classified, HJ, by industry.
n
n
The Measure Builder is delivered with predefined KPIs.

The Measure Builder can be populated with benchmark data from third-party vendors.
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SAP AG 2001
A major topic of SAP Strategic Enterprise Management is to bridge the gap between high level
formulation of corporate vision and strategy and the operational target setting and budgeting process.
Lack in strategy execution is mostly caused by the fact that the strategy formulation and the
operational target setting process in an organization are not closely integrated.
Examples
Management is judged by budget execution.
The budget is focused on financials and is not generated with the strategic goals in mind.
There is a missing link between ressource allocation and strategic initiatives.

n
The Balanced Scorecard combines the top-down communication and deployment of the strategy with
the bottom-up process of performance monitoring.
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Strategies & Objectives

Cause & Effect Linkage
Initiatives
Measures & Targets
Leadership from the Top

Common Objectives
Corporate, SBU, Division, etc
Shared Services
Train the Organization

Create Employee Awareness
Get Employee Feedback
Create Strategy focused Org.
Owners of Objectives & Measures

Align personal Goals with Objectives
Competency Development
Team Scorecards
Capital Budgeting
Initiative Management
Budgets for Initiatives
Current Plan vs. Expectations

Scenario Planning
Simulation & Forecasting
BSC embedded Feedback System

Assessment & Comments
Regular Review of Strategy Map
Test Hypotheses
Feed Results into Business Planning
Inbound
Logistics
R&D
Get Market Expectations (Fin.Analysts)
Business Analysis
Business Information Collection
Manufacturing
Outbound
Logistics
Marketing
& Sales
Network Design
Knowledge Sharing
Best Practise
Knowledge Management
Reengineer Processes
Execute improved Processes
Track Performance of Reengineering
SAP AG 2001
The management process supported by the Balanced Scorecard is continuous, not scheduled in a
fixed period.
The starting point is the analysis of the business environment as a precondition to setting up and
evaluating strategic scenarios (see the box Research & Planning).
The next steps are:
Formulate a detailed strategy
Deploy the corporate strategy to all organizational units while taking into account their specific
needs
Support the strategy communication process by training

Align human resources
Align financial resources
Monitor performance during business execution
Learn from the deviations and spread the insights through the organization
Adjust the strategic planning process if necessary
Reformulate the corporate strategy as often as required
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Financial
Customer
Internal Business Processes
Learning & Growth
The strategy for growth and profitability viewed from the perspective of the shareholder
The strategy for creating value and differentiation from the perspective of the customer
The priorities for excellence in various business processes which will create customer and
shareholder satisfaction
The priorities to create a climate that supports organizational change, innovation and growth
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Maximize Use of
Increase Profitability Through
t
Existing Assets
Premium Brands
t
New Sources of
Revenue
Non-Gasoline
Revenue & Margin
Fast, Friendly,
Clean Service
Cash Expense
vs. Industry
Cash Flow
Dealer Profit Growth

Dealer Satisfaction
Build the Franchise

Create NonGasoline
Products &
Services
Increase Customer Value
Operational Excellence

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t
Understand
Consumer
Segments
Unplanned
Downtime
Share of Target
Segment
New program
Introduction Rate
Best-In-Class
Franchise
Teams
Dealer Quality
Rating
Win-Win Relations
with Dealers
Mystery Shopper Rating

Consumer Feedback
Volume vs. Industry

Premium Ratio
Improve Inventory
Management
Improve
Environmental,
Health and
Safety
Inventory Levels
Run-Out Rate
On-Spec
On-Time
Quality
Index
Good Neighbor
Industry Cost
Leader
Activity Cost vs.

Competition
Environment al
Incidents
Safety Incidents

Climate for Action
Personal Alignment
Personal BSC
Employee Feedback
Competencies
Functional Excellence
Leadership Skills
Integrated View
Technology
SAP
Strategic Job Coverage

Ratio
Systems Milestones
SAP AG 2001
The Strategy Map is a newer way to visualize the structure of a given Balanced Scorecard.
The scorecard perspectives are shown with their respective focus.
Each perspective contains strategic objectives and their assigned measures.
The cause-and-effect chains linking the strategic objectives are clearly visible here and they tell the
story of the strategy of the respective organization.
From the cause-and-effect chains you can tell how the management team assumes the business to
work and how they want to achieve their strategic goals.
What is not visible here are the strategic initiatives, which can be seen in the perspective-focused
display.
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F2.
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Cash flow
Net margin
Cash expense (cpg) vs. industry
Volume growth rate vs. industry
Premium ratio
Non-gasoline revenue
C1. Delight the Target Consumer (Fast, Friendly,

Clean)
C2. Improve Dealer Profitability
Consumer feedback
Mystery Shopper rating
Dealer profit growth
Dealer survey
I1. Build the Franchise

Create non-gasoline products
I2. Increase Customer Profitability
Understand consumer segments
Best-in-class franchise teams
I3. Operational Excellence
Improve hardware performance
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New program introduction rate
I4.
Return on Capital Employed

Cash Flow
Profitability
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L1. Organization Alignment

L2. Core Competencies and Skills
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Share of target segment

Dealer quality rating
Unplanned downtime
Inventory levels
Run-out rate
Quality index
Activity cost vs. competition
Employee survey
Staff with personal BSC (%)
Strategic job coverage ratio
Strategic system milestones
SAP AG 2001
Example of objectives with possible measures.
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SAP AG 2001
Strategy formulation with the Balanced Scorecard has three levels of abstraction:
The corporate vision or corporate mission statement, addressing three major topics:
-
What are our core competencies?
Which products / services do we want to sell based on our competencies?
Which markets do we want to target with our products / services?
The overall strategy is composed of a set of strategic objectives, which are structured by scorecard
perspective and by single strategy.
The strategic objectives are linked together by cause-and-effect linkages.
Each strategic objective is assigned one or more measures, which can be called KPIs. The reading
of the assigned measures is assumed to indicate to what extent the strategic objective is realized.
The measures of the Balanced Scorecard are used not only for reporting purposes, but also for
target setting with respect to the strategy.
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Increase Profitability through being the Best Fashion Retailer in United States
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Operating Income
Sales vs. Last Yr
20% Increase
12% Increase
$xxx
Return Rate
Quality
Other
Customer Loyalty
Ever Active %
# units
Reduce by
50% each yr
$xxx
% of Merchandise
from A factories
Items in-Stock vs.
Plan
>70%
Revenue
Growth
Customer
Product
Quality
Shopping
Experience
Internal
A Class
Factories
Line Plan
Management
% of Strategic
Learning
Staff
Competencies
Improve
Communication
Systems
Skills Available
Information
Coverage rate
60%
2.4 units
$xxx

Increase
Market Share
in North
America
Improve Quality
management
Customer loyalty
$xxx
Corporate
Factory
Development
Program
75%
$xxx
Hire Qualified
People
90%
$xxx
Invest in IT
>95%
SAP AG 2001
Measures will be used on a BSC to track the performance of our strategy.
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This is the Balanced Scorecard view. On the left is the scorecard hierarchy where all the scorecards
are listed. On the detail screen the selected scorecard is displayed with all the defined perspectives.
A scorecard is time dependent and shows the indicators for the chosen period. The menu bar reveals
various options to use when recalling the information from a scorecard.
The purpose of the Balanced Scorecard is to view the elements created and linked to the scorecard in
customizing in context. The Balanced Scorecard component offers various viewing options for the
presentation of the enterprises current performance and the inter-relationships between key figures
that might otherwise go unnoticed when viewed in isolation.
Use of the Balanced Scorecard relies on the elements already created. During customizing, the
technical properties (description, technical name, etc.) of the elements are determined in the
presentation of the Balanced Scorecard. These objects are viewed from a business perspective.
When using a Balanced Scorecard, the same database is accessed as when the components SEM-BPS
and SEM-BIC are used.
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SAP AG 2001
This Cause-and-Effect Chain view shows the Strategy Map of a Scorecard with all objectives, the
respective status icon and the cause-and-effect linkages between the objectives.
The vertical axis is structured by the perspectives of the Scorecard
The horizontal axis is structured by the single strategies.
The single strategies can be interlinked by cause-and-effect chains.
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Display Measures Display
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SAP AG 2001
In this example, the cause-and-effect screen is focused on one single strategy of a Scorecard and is
showing all the objectives, measures and their respective statuses. in addition to telling us how the
objectives interrelate.
By doing this, the system is creating a powerful prescription for action.
The right subscreen is used for a tabular analysis view of objectives and measures, or of objectives
and initiatives.
The column structure of the table view is user definable.
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With the function, one of the various breakdowns of the element hierarchy can be selected. The
selected element breakdown will display its specific properties as defined in configuration, and
displays under the various tab pages on the right-hand side of the screen.
This Analysis screen displays the whole Scorecard in one hierarchy.
The hierarchy type can be switched between several different types:

Perspective / Objective / Measure
Strategy / Perspective / Objective / Measure

Perspective / Objective / Initiative
Strategy / Perspective / Objective / Initiative

Strategy / Initiative
Perspective / Measure
The right part of the screen is used for a tabular analysis view of objectives and measures, or of
objectives and initiatives.
The column structure of the table view is user definable.
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7-24
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SAP AG 2001
Detail screens are available for the various elements of a Scorecard.
The objective detail screen shows information about the selected objective:
The definition of the objective (name, purpose, owner, etc.)
The performance rating indicated by the status icon and assigned automatically or by the owner
The textual assessment of the owner
Comments to the textual assessment by other Scorecard users
Assigned measures and assigned strategic initiatives

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The initiative detail screen shows information about the selected initiative:
The definition of the initiative (name, purpose, owner, etc.)
The performance rating indicated by the status icon and assigned by the owner
Assigned objectives
Budget and budget consumed, and expected benefits
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SEM010
7-25
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SAP AG 2001
The measure detail screen shows information about the selected measure:
The definition of the measure (name, purpose, owner, formula, etc.)
The performance rating indicated by the status icon and assigned automatically or by the owner
Measure graphs
Measure time series
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SEM010
7-26
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SAP AG 2001
The screen design shows an example for a Measure Driver Tree visualization.
To the right, a navigation area allows the user to choose the part of the tree, which is displayed in the
main part of the screen.
The mathematical formula of the relation between the boxes is provided as a mouse-over function.
Driver Trees visualize how Key Performance Indicators are influenced by other measures
Driver Trees show quantitative and qualitative linkages.
Quantitative relations within trees allow sensitivity and what-if-analysis.
Qualitative relations show directional influence of measures on the KPI.
Driver Trees support Value Based Management.
Visualization of value driver maps for the seven Key Value Drivers
Visualization of advanced Value Metrics, HJ, Economic Value Added (EVA)

First functionality is delivered with SEM 2.0b (Measure Tree showing quantitative relations of
measures).
SAP AG
SEM010
7-27
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SAP AG 2001
With this function, you can compare two or more Scorecards with each other over a time frame of up
to 25 periods.
Before you can select a scorecard for comparison, two conditions have to be fulfilled:
You must be authorized to view the scorecard.
The scorecards to be compared must be based on the same fiscal year variants.
SAP AG
SEM010
7-28
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Measure Readings
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The SEM database is fed with data from several SEM components.
SEM-BIC sources external data and ERP data.
SEM-BPS provides the plan data.
SEM-BCS provides consolidated financial data.

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As part of SEM-CPM, the Balanced Scorecard software accesses the data in the central SEM
database.
It also provides the possibility to feed back some measure data to the database (via the direct link
with SEM-BPS).
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Example: Multiple measures can be assigned to a particular objective. It is now possible to determine
the overall status for the objective by applying a weighting factor to each of the measures, as
opposed to a simple average.
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Automatic (flexible) calculation of score, aggregation from measure level up to the

Scorecard level
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For the comparison of several different scorecards, the Multi Scorecard Comparison view is
available (from 3.0a).
Scorecards can be compared in user-defined sets.
With the concept of Common Objectives the SAP Balanced Scorecard software provides an
infrastructure to compare scorecards even if their strategies are not exactly the same.
The hierarchy tree on the left side can work in two different ways:
All objectives of all compared Scorecards are displayed.
Only the objectives of the Scorecard in the left column are displayed (Leading Scorecard).
n
In the example, the time series for a measure is displayed for the set of Scorecards in a subscreen. On
this Scorecard comparison view, the measure Return on Capital Employed (ROCE ) of the common
objective more efficient asset utilization is selected in all compared Scorecards.
In the subscreen at the bottom, the time series of ROCE for all compared Scorecards is displayed.
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7-33
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7-34
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SEM010
7-35
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SAP AG 2001
A particular Management Cockpit setting is a hierarchy with a fixed structure.
There are up to four Walls, representing different perspectives of the organization.

Black Wall for key financial ratios and critical success factors
Red Wall for market, customers and competitors
Blue Wall for internal processes, productivity and quality improvement
White Wall for monitoring strategic projects

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Each Wall is structured into up to six Logical Views.
Each Logical View contains up to six Frames.
Each Frame visualizes one KPI and two KPIs in relation to each other.
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SEM010
7-36
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SAP AG 2001
The Management Cockpit can be used in two different ways:

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As an 2QOLQH 5HSRUWLQJ 7RRO, it provides the user with online real-time access to essential KPI
information, displayed as ergonomic optimized visualization.
The software is designed to display simultaneously on six standard screens connected to the
same personal computer. This way the user can analyze a large set of measures quickly.
The user can navigate through the cockpit hierarchy, perform drill-down analysis, change the
time settings, etc.
Traffic light exception reporting for early warning is available.
In addition, the optional 0DQDJHPHQW &RFNSLW 5RRP serves as a three-dimensional interface to the
displayed KPI information.
The room is a meeting room equipped with the Wall Display System to display all the visuals of
the cockpit hierarchy and the Flight Deck, providing online analysis capabilities.
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SEM010
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This is an example of a Logical View.
A Logical View has a specific title and is dedicated to a question that is relevant to the strategic
performance of the organization.
A Logical View contains six Frames, each displaying vital performance information in an easy-tounderstand visualization.
The example shows the Main Logical View, which is giving a quick answer to the question Are we
generally in good shape?
SAP AG
SEM010
7-38
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SAP AG 2001
Management Cockpit Room Package(1) including:
Software (SAP SEM)
Consulting package for

-
Executive Briefing
Ergonomic advice in room design
Ergonomic advice in KPI visualization
Executive and Cockpit Officer Training
Hardware
-
Set of backlit panels
Six-screen video card for Flight Deck

Not included:(2)
Management consulting for KPI identification
Software and hardware implementation services
(1)
Provided by SAP subsidiaries in cooperation with N.E.T. Research
(2)
List of certified implementation partners available
SAP AG
SEM010
7-39

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The Management Cockpit is a tool that supports management teams in translating a corporate
strategy into action.
The strategy is represented by the cockpit structure, consisting of Walls, Logical Views and Frames
displaying KPIs.
The visualization in a specially equipped meeting room supports communication about the facts
displayed within the management team.
The decision process becomes quicker and more efficient.
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The Management Cockpit can be used on various management levels.
In addition to the use on organizational levels, as depicted here, the Management Cockpit can also be
for monitoring of strategic projects like an ERP implementation in a company or a construction
project.
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SEM010
7-41
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SAP AG 2000
SAP AG
SEM010
7-42
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SAP AG 2001
The Wall element is subordinate to the Cockpit element. A presentation may contain one to four
Wall elements. The Wall element corresponds to a physical wall in the presentation room and serves
to summarize information of a particular type.
The Walls of the Cockpit with their Logical Views and Frames are filled on the right of the screen.
By clicking on a Wall, a Logical View or a Frame, it is possible to open a new window where the
selected presentation object is displayed. In the case of a Logical View, a window is displayed
showing the selected View with its corresponding Frames. When showing the presentation, the
current data is obtained from the data source that is determined for each Frame when the Cockpit is
set up.
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SEM010
7-43
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The Logical View element is subordinate to the Wall element. A Wall element consists of up to six
Logical Views. Logical Views serve to summarize information of a particular type.
A Logical View is created to focus in more detail on the subject area presented on a Wall (for
example, internal view). At the same time, a Logical View can be used to define a general business
factor (for example, product quality) that results from several key figures (for example, scrap rate,
sales returns, guarantees).
The Frames are defined so that they can be grouped using the Logical View, or be assigned to the
Logical View directly. The Logical View can be incorporated with all of its sub-objects into other
Cockpits.
When defining a Logical View, several steps need to be completed in sequence. The status of these
steps is indicated by a traffic light function.
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SAP AG 2001

Version Total Revenues Fiscal year / periodStrategic Business Unit

860.000,00$
Actual
May
Pharmaceutical
May 2000
2000
Pharmaceutical
Actual
May
2000
Pharmaceutical
940.000,00$
May 2000
Pharmaceutical
940.000,00$
The Frame element is subordinate to the Logical View element. A Logical View consists of up to six
Frames. Frames serve to visualize individual key figures using various types of graphics. The
selected key figures provide information on the current status of the business factor that is assigned
to the higher level Logical View. A Frame is the most specialized element of the presentation
hierarchy.
In a newly created Cockpit, the completed definition of a Frame is at the same time a prerequisite for
presentation of the entire Cockpit. For this, at least one Frame must be defined in full. The Frame can
also be incorporated into other Cockpits.
Frames are created to determine the key figures that need to be presented. At the same time this
function is used to select an appropriate visualization arrangement of the data.
When defining a Frame element, several steps needs to be completed in sequence. The status of these
steps is indicated by a traffic light function. The type and number of steps depends on the type of
Frame element.
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SEM010
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AMGEN.
Amgen Announces R ecord
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SAP AG 2001
In configuration, the filter for characteristics and/or measures against which we wish to access
documents is set. An appropriate RFC destination, which references the same system as the RFC
destination used by the SEM-BIC component, may need to be selected. The characteristic value for
which documents are to be displayed must be selected.
Only those characteristics that have been flagged with "comment" in the SEM-BIC component are
available for selection.
SAP AG
SEM010
7-46
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SAP AG 2001
The SEM database is fed with data from several SEM components.
SEM-BIC sources external data and ERP data.
SEM-BPS provides the plan data.
SEM-BCS provides consolidated financial data.
As part of SEM-CPM, the Management Cockpit software accesses the data of the central SEM
database.
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Information is gathered from the appropriate InfoCube.
Some examples of questions that can be addressed:
How is my order pipeline per product group doing in the 10 top countries?
How have prices, quality and delivery time of my top 10 suppliers developed over the last two
years?
Why has lead time for material X increased?
Will my marketing costs still be within budget if I do the roadshow in QA?
Why is sales revenue growth (corrected for exchange rate fluctuation) below market growth?
Why is the customer satisfaction significantly lower in the northern region?
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SEM010
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Layout template
Cell types - cell styles
Header elements
Smart memory
Position of elements
Server connection
Connected charts
Mix & match BW queries with
local Excel elements
SAP AG 2001
The Business Explorer Analyzer shown here is SAP-BWs for defining and displaying reports.
It supports multidimensional drill-down analysis as well as slice and dice navigation on the
multidimensional query cube.
It is technically based on MS-Excel, extended by SAP-BW OLAP functionality.
A report consists of one or several queries embedded into a workbook.

A query is the definition of the data to select for the report.
A workbook is a MS-Excel file that displays the data of the query.

n
The usage of MS-Excel has some advantages:
As MS-Excel is well known to most users, the learning phase for the reporting tool is very short.
The powerful formatting and display capabilities of MS-Excel provide the users with the necessary
functionality to design workbooks according to the respective corporate design.
The workbooks can be enhanced with calculations, texts and graphs using normal MS-Excel
funcionality.
Workbooks can be saved as normal MS-Excel Files for further processing on the front-end PC.
n
Template workbooks can be generated to ensure that all future workbooks have the correct corporate
design.
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Visualization
Subsidiaries, plants,
warehouses, stores
Spatial aggregation
Per region, country, state,
county, city, shop
Spatial analysis
Interrelating customers with
stores
Demographics: actual vs.
potential customers
SAP AG 2001
With release 2.0, the SAP-BW features also a geographical information system.
SAP-SEM can make use of this new feature.
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Profitability analysis
Templates
Plan Actual Comp.
Keyfigures
Calc Keyfigure
Restrict. Keyfigure
Date
Time
Revenue
Geography
Country key
Germany
USA
Customer
Product
Internal
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Development
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Fiscal Year
Material group
Material
Customer no.
Columns
Plan Actual comparison
Plan
Actual
% Variance
Rows
C. key
Country key
Germany
USA
Contr. Margin
C. key
Sales Quantity
Revenue
CM1
Sales Q
Revenue
CM1
Sales Q
Revenue
CM1
Plan
Actual
Attributes
Unit
SAP AG 2001
The query definition screen allows the very convenient definition of a query based on an InfoCube.
The query definition is completely done by drag and drop.
On the left, the structure of the InfoCube is displayed. All elements displayed there, can be used for
the query definition.
InfoObjects can be dragged into the different subscreens for:
The line structure of the query
The column structure of the query
The free characteristics for navigation purposes
The filter expression.
The subscreen on the lower right displays a preview of the query structure according to definition.
On execution, the query data is retrieved and displayed in a workbook.
Workbooks can be formatted and enhanced using all MS-Excel functionality.
Workbooks can be saved in the SEM database and/or on the front-end PC.
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The Business Explorer helps analyze the data in the SAP Business Information Warehouse.
In the Business Explorer, you define queries that are based on a selection of InfoObjects or
predefined query templates for an InfoCube. By navigating through the queries, you can generate
various views of the data, which enable you to analyze and present the InfoCube data. You save the
queries in workbooks and manage them in your Favorites.
The InfoCatalog is a tool for managing queries across an enterprise. You can copy queries to various
catalogs here and then assign users to them.
The Business Explorer Browser allows you to manage and execute workbooks in the InfoCatalog
directly.
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Accumulated balance
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Custom ers
Custom ers
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You analyze the data stored in the Business Information Warehouse by defining queries for the
InfoCubes. You can picture an InfoCube as an n+1-dimensional cube from which certain parts are
cut out when characteristics and key figures are selected in a query.
Thanks to the multidimensional nature of the query data, you can create various views of the data in
an InfoCube. The OLAP processor builds the queries from the InfoCube data and provides methods
for navigating through the data in several dimensions.
The Business Explorer requests the data from the query and presents the current view of the stored
data. Only the data that is actually required in the Business Explorer is transferred from the InfoCube
to the query. If a new data view is required in the Business Explorer while you are navigating
through the data, the OLAP processor retrieves the data from the InfoCube. The data from the
current and previous Business Explorer drill-down always remains on the application server.
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SAP AG
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7-55
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Navigate within the Balanced Scorecard
Understand the purpose of the different Balanced Scorecard
elements
Having agreed that the insulin inhaler was the most promising option to
pursue, we ensured that the Diabetics Division scorecard was focused on
helping to create the environment in which this strategy can be pushed
forward.
Now we are interested in accessing the Scorecard to see how we are
progressing against our targets and, therefore, against our objectives and
overall strategies. This will provide us with valuable analysis that we can
use in the double feedback loop process.
1.
SAP AG
Navigate to Balanced Scorecards (BSCs) and access the 2YHUYLHZ 6FUHHQ for the
Division Diabetics Scorecard.
1-1
Display the Division Diabetics Balanced Scorecard for the current period
1-2
The Scorecard Overview screen displays the BSCs Perspectives and linked
Objectives & Measures. One of the Objectives is Improve Corporate
Culture. What are the measures for this Objective?
6WUDWHJLF (QWHUSULVH 0DQDJHPHQW&RUSRUDWH 3HUIRUPDQFH

0RQLWRU6WUDWHJ\ 0DQDJHPHQW %DODQFHG 6FRUHFDUG 3KDUPD6WDU
&RUSRUDWLRQ 'LDEHWHV 3URGXFWV 'LYLVLRQ (double click)
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1-3
What does the status icon against the Objective 6WUHQJWKHQ 3XUH 5HVHDUFK
&DSDELOLW\ indicate?
1-4
Click on the 2YHUYLHZ 0HDVXUH icon. What Balanced Scorecard Elements

are you now being shown?
1-5
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What are Perspectives and what is the maximum number you can have in an
SAP-SEM Scorecard?
Drilldown
2-1
Access the 'ULOOGRZQ screen to help aid your understanding of how the
components fit together.
2-2
How many strategies does the Scorecard contain and what are they?
2-3
How many Objectives does the 'ULYH ,QQRYDWLRQ strategy contain?
2-4
Which two Scorecard elements can be attached to the Objectives?
2-5
You want to see which measure(s) the Objective ,QFUHDVH 3URGXFW

3URILWDELOLW\ has attached to it. Do you get any detail for the Measure(s)
(HJ, actuals/plan, etc.)? You also want to see the definition for the
Measure; how can you view this from this screen? Where is this definition
coming from?
SEM010
7-57
You are now keen to see how all the Objectives within the Drive Innovation
strategy fit together to tell the story of your strategy.
3-1
Return to the 2YHUYLHZ screen and access the Cause-Effect (C-E) chain.
3-2
What is this screen showing you?
3-3
Staying within the C-E Analysis screen, how does the Objective ,PSURYH
&RUSRUDWH &XOWXUH influence the ,QFUHDVH 6KDUHKROGHU 9DOXH Objective.
3-4
Within the 'ULYH ,QQRYDWLRQ strategy, change the current date to 010.2001,
choose the 'LVSOD\ VWUDWHJ\ DQDO\VLV option. Locate the Measure
3HUFHQWDJH RI ,PSOHPHQWDWLRQ RI HFRPPHUFH 6ROXWLRQ &RPSOHWH. What
percent of the software was implemented by period 010.2001?
Access the $QDO\VLV screen and check progress against 1HW 6DOHV.
Select the $QDO\VLV icon.

4-1
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Currently the screen variant is set to display 3HUVSHFWLYH2EMHFWLYH0HDVXUH

Change the screen variant to 6WUDWHJ\3HUVSHFWLYH2EMHFWLYH0HDVXUH
4-2
Within the (QKDQFH &XVWRPHU 0DQDJHPHQW strategy, locate the *URZ

5HYHQXH Objective and the 1HW 6DOHV Measure. Use the 7LPH 6HULHV tab to
find out if we are hitting plan for Net Sales for periods 1-6, 2001.
4-3
The results for periods 16, 2001, have been good but, as always, there is
room for improvement. View the assessment tab for period six to see the
explanation. What action is going to be taken to try and further improve the
Net Sales results?
4-4
Jump to the Cause and Effect chain. Focus on the Internal Perspective and
Learning & Growth Perspective for the Enhance Customer Management
strategy for period 006.2001. Now change the Current Period to 007.2001.
Have some new Objectives been introduced? If so what are the Objectives
called and how do they link in with the overall strategy to enhance customer
management.
SEM010
7-58
4-5
4-6
4-7
SAP AG
Return to the $QDO\VLV screen. Ensure that the &XUUHQW 3HULRG is still
007.2001. Which initiative does the Objective develop differentiating
distribution approach have attached to it?
What is the definition for this initiative and who are the team members
attached? What, in general, is the point of initiatives?
Leave the Diabetics Division Scorecard and return to the %DODQFHG

6FRUHFDUG 2YHUYLHZ screen.
SEM010
7-59
8QLW 6(0&30

7KH H[HUFLVHV LQ WKLV WRSLF DUH RSWLRQDO.
Understand the basics of the score concept
Change Status and Assessment details within your
Scorecard
Understand how the Net Sales value you planned in BPS is
displayed within your scorecard
This is an RSWLRQDO exercise that gives you the opportunity to
change some of the Balanced Scorecard settings and to see the
Net Sales you planned in the BPS exercises reflected within your
Scorecard.
To do this you will be using the SEM010-X## Scorecards. In
these (provided you pick the correct one for your group) you are
designated as the substitute for the owner.
Accessing your SEM010 X## Scorecard:

5-1
Display the 2YHUYLHZ 6FUHHQ for your scorecard (SEM010 X##) for the
current month.
6WUDWHJLF (QWHUSULVH 0DQDJHPHQW &RUSRUDWH 3HUIRUPDQFH 0RQLWRU

%DODQFHG 6FRUHFDUG 6(0 7UDLQLQJ 6FRUHFDUGV 6(0 ;
(X## being your group number)
5-2
SAP AG
Access the $QDO\VLV screen so that 1HW 6DOHV is automatically shown.
SEM010
7-60
SAP AG
Analyzing results and setting the status:

6-1
Check the 1HW 6DOHV plan for the current month. Does this match the
periodic plan that you created within the final SEM-BPS exercise?
6-2
How is the status being determined for the 1HW 6DOHV Measure?
6-3
Check the results for the 6DOHV *URZWK YV 6HJPHQW $YHUDJH Measure. How
is the status being set for this measure?
6-4
Using your own judgment, set the status and write an assessment for the
6DOHV *URZWK YV 6HJPHQW $YHUDJH Measure. Why are you being permitted
to do this when you are not the owner of the Measure?
6-5
By setting the statuses for the Measures, the Objective *URZ 5HYHQXH has
additionally had its status set. What calculation is the Objective using to
calculate the status?
SEM010
7-61
([HUFLVHV
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Navigate within the Management Cockpit
Use the various Management Cockpit analysis screens
Having checked the progress of the Division Diabetics Scorecard, you
follow this up with some deeper analysis of key figures using the
divisions Management Cockpit. In particular, you are interested to see
which products over this year have accounted for the Divisions sales, and
how sales compare to those in year 2000.
1.
SAP AG
Management Cockpit Navigation and Analysis

1-1
Open the 3KDUPD6WDU 'LDEHWHV 3URGXFWV Management Cockpit.
1-2
How many walls does the Cockpit have and what do each of the walls
represent?
1-3
How would you differentiate the theory behind the Balanced Scorecard
(BSC) from the Management Cockpit (MC)?
1-4
How many Logical Views does the Black Wall have and what are they
called?
1-5
Expand the *URZWK Logical View. How many Frames are contained in this
Logical View? What do Frames represent?
SEM010
7-62
SAP AG
1-6
Open the *URZWK Logical View. Are the Frames all graphics, or a mixture
of graphics, documents and BW reports?
1-7
Within the *URZWK Logical View select the 1HW 6DOHV 7LPH 6HULHV Frame
and compare this year s sales with last year s. What was the approximate
value of net sales for period nine, 2001?
1-8
Return to the view where you are looking at all of the Frames within the
*URZWK Logical View. Select the 6DOHV SHU 3URGXFW /LQH Frame. Which
product did we sell the most of over the year 2001?
1-9
Return to the Management Cockpit: Overview screen. You are interested in

any political news that may shape decisions with regards to the diabetics
market. Using the 5HG :DOO the )RUFH )LHOG $QDO\VLV Logical View and
the 3ROLWLFDO 'RFV Frame find out which documents are available.
SEM010
7-63
6ROXWLRQV
8QLW 6(0&30

Navigate within the Balanced Scorecard
Understand the purpose of the different Balanced Scorecard
Elements
Having agreed that the insulin inhaler was the most promising option to
pursue, we ensured that the Diabetics Division scorecard was focused on
helping to create the environment in which this strategy can be pushed
forward.
Now we are interested in accessing the Scorecard to see how we are
progressing against our targets and, therefore, against our objectives and
overall strategies. This will provide us with valuable analysis that we can
use in the double feedback loop process.
1.
Navigate to Balanced Scorecards (BSCs) and access the 2YHUYLHZ 6FUHHQ for the
Division Diabetics Scorecard.
1-1
Display the Division Diabetics Balanced Scorecard for the current period
6WUDWHJLF (QWHUSULVH 0DQDJHPHQW&RUSRUDWH 3HUIRUPDQFH

0RQLWRU6WUDWHJ\ 0DQDJHPHQW %DODQFHG 6FRUHFDUG 3KDUPD6WDU
&RUSRUDWLRQ 'LDEHWHV 3URGXFWV 'LYLVLRQ (double click)
The current month will be shown automatically.
1-2
The Scorecard Overview screen displays the BSC s Perspectives and linked
Objectives & Measures. One of the Objectives is Improve Corporate
Culture. What are the measures for this Objective?
Locate the ,PSURYH &RUSRUDWH &XOWXUH Objective in the Learning and
Growth Perspective.
Expand the ,PSURYH &RUSRUDWH &XOWXUH Objective.
The two attached Measures are Average Length of Service and Employee
Satisfaction.
SAP AG
SEM010
7-64
1-3
What does the status icon against the Objective 6WUHQJWKHQ 3XUH 5HVHDUFK
&DSDELOLW\ indicate?
Locate the 6WUHQJWKHQ 3XUH 5HVHDUFK &DSDELOLW\ Objective within the
Internal Perspective and take note of the status icon.
Select the 6FRUH /HJHQG button; this will tell you what the status icon
represents.
Answer will vary depending on current period.
1-4
Click on the 2YHUYLHZ 0HDVXUH icon. What Balanced Scorecard Elements

are you now being shown?
Select the 2YHUYLHZ 0HDVXUH icon.
You are now being shown just the Measures (with statuses) within the
Perspectives.
As an overview screen, this option is intended to give an instant picture of
our objectives and measures with their respective statuses. We can then
drilldown to analysis from here. Therefore, this screen does not give too
much detail.
1-5
What are Perspectives and what is the maximum number you can have in an
SAP-SEM Scorecard?
Perspectives provide an aid to translating strategy by asking what the key
Objectives of the strategy are financially, and also what the Objectives are
with regard to the internal processes, customers and environment that we
need to create for all of these other Objectives to be achieved. Essentially
the four traditional Perspectives enable companies to track financial results
while simultaneously monitoring progress in building capabilities and
acquiring intangible, weightless assets that are needed for current and future
growth
You can have a maximum of eight Perspectives per Scorecard.
Drilldown
2-3
Access the 'ULOOGRZQ screen to help aid your understanding of how the
components fit together.
Select the 'ULOOGRZQ icon.
2-4
How many strategies does the Scorecard contain and what are they?
Select the 'LDEHWHV 3URGXFWV 'LYLVLRQ box.

Select the 6WUDWHJLHV icon.
This Scorecard has three strategies: Drive Innovation, Enhance Customer

Management, and Maximize Operational Efficiency.
SAP AG
SEM010
7-65
2-3
How many Objectives does the 'ULYH ,QQRYDWLRQ strategy contain?
Select the Drive Innovation strategy and then select the 2EMHFWLYHV icon.
The strategy contains eight Objectives.
2-4
Which two Scorecard elements can be attached to the Objectives?

Measures and Initiatives
2-6
You want to see which measure(s) the Objective ,QFUHDVH 3URGXFW

3URILWDELOLW\ has attached to it. Do you get any detail for the Measure(s)
(HJ, actuals/plan, etc.)? You also want to see the definition for the
Measure; how can you view this from this screen? Where is this definition
coming from?
Select the ,QFUHDVH 3URGXFW 3URILWDELOLW\ Objective and then select the
0HDVXUHV icon.
The Measure attached is 1HW 6DOHV RI 1HZ 3URGXFWV.
Yes you do get information with regards to the measure status, and the value
fields (HJ, actual, plan, etc.) that have been defined in the Scorecard
configuration.
If you want to see the measure definition, run your mouse over the Measure
with your mouse. The definition is accessed from the Measure Builder.
You are now keen to see how all the Objectives within the Drive Innovation
strategy fit together to tell the story of your strategy.
3-2
Return to the 2YHUYLHZ screen and access the Cause-Effect (C-E) chain.
Select the %DFN (green back arrow) icon to return to the 2YHUYLHZ screen.
Select the &DXVH(IIHFW FKDLQ icon.

3-2
What is this screen showing you?

The C-E Analysis screen is showing us how the Objectives within our
Scorecard are linked and, therefore, helps us to understand the actions that
need to be taken to be successful in our strategies. Essentially, the C-E
Analysis tells the story of our strategy.
SAP AG
SEM010
7-66
3-3
Staying within the C-E Analysis screen, how does the Objective ,PSURYH
&RUSRUDWH &XOWXUH influence the ,QFUHDVH 6KDUHKROGHU 9DOXH Objective?
Improve Corporate Culture has a direct influence on Meeting Customer
Service Expectations. If we can meet these Customer Service Expectations,
then this should help us Increase Customer Satisfaction. Happy customers
will carry on buying our existing products, which will contribute to Revenue
Growth, which in turn will help to Increase Shareholder Value.
3-4
Within the 'ULYH ,QQRYDWLRQ strategy, change the current date to 010.2001,
choose the 'LVSOD\ VWUDWHJ\ DQDO\VLV option. Locate the Measure
3HUFHQWDJH RI ,PSOHPHQWDWLRQ RI HFRPPHUFH 6ROXWLRQ &RPSOHWH. What
percent of the software was implemented by period 010.2001?
Change the Current Period to 010.2001 (the objective will only appear on
the Scorecard from period 007, as explained later in the exercise).
Within the Drive Innovation strategy column, right click and select 'LVSOD\
6WUDWHJ\ $QDO\VLV.
Within the /HDUQLQJ DQG *URZWK Perspective, you will find the ,PSURYH
7HFKQRORJ\ ,QIUDVWUXFWXUH Objective. Within this you will find the
3HUFHQWDJH RI ,PSOHPHQWDWLRQ RI HFRPPHUFH 6ROXWLRQ &RPSOHWH
Measure.
The value should be 34 percent actual completion against a plan of 30
percent.
Access the $QDO\VLV screen and check progress against 1HW 6DOHV.
4-2
Currently the screen variant is set to display 3HUVSHFWLYH2EMHFWLYH0HDVXUH

Change the screen variant to 6WUDWHJ\3HUVSHFWLYH2EMHFWLYH0HDVXUH
Select the KLHUDUFK\ icon(in upper left corner) and choose the
Strategy/Perspective/Objective/Measure variant
4-2
Within the (QKDQFH &XVWRPHU 0DQDJHPHQW strategy, locate the *URZ

5HYHQXH Objective and the 1HW 6DOHV Measure. Use the 7LPH 6HULHV tab to
find out if we are hitting plan for Net Sales for periods 1-6, 2001.
Follow this menu path within the 6WUDWHJ\3HUVSHFWLYH2EMHFWLYH0HDVXUH
screen:
(QKDQFH &XVWRPHU 0DQDJHPHQW )LQDQFLDO 3HUVSHFWLYH *URZ
5HYHQXH 1HW 6DOHV
Double click on the 1HW 6DOHV Measure so that the Measure Detail tabs are
displayed on the right hand side of the screen
Select the 7LPH 6HULHV tab.
SAP AG
SEM010
7-67
4-3
The results for periods 16, 2001, have been good but, as always, there is
room for improvement. View the assessment tab for period six to see the
explanation. What action is going to be taken to try and further improve the
Net Sales results?
Change the Current Period to 006.2001.
Select the $VVHVVPHQW tab; we have been successful to date but have issues
concerning competitor activity and customers demanding a more flexible
distribution approach.
From July, we are going to introduce two new Objectives: Improve
Technology Infrastructure and Develop Differentiating Distribution
Approach. Additionally, we are going to introduce an initiative (improve
distribution process) to align resources around the Develop Differentiating
Distribution Approach Objective.
4-8
Jump to the Cause and Effect chain. Focus on the Internal Perspective and
Learning & Growth Perspective for the Enhance Customer Management
strategy for period 006.2001. Now change the Current Period to 007.2001.
Have some new Objectives been introduced? If so what are the Objectives
called and how do they link in with the overall strategy to enhance customer
management.
Select the &DXVHHIIHFW DQDO\VLV icon.
Change the Current Period to 007.2001.

Two new objectives have been added: Improve Technology Infrastructure
and Develop Differentiating Distribution Approach.
Developing an e-commerce solution will help us to provide a new (and
potentially more cost effective) approach to distributing the drugs. This in
turn is deemed likely to improve order fulfillment, which will help us to
meet customer service expectations. This will increase customer
satisfaction, which will help us build the revenue for our existing products
(which is vital to help us bridge the gap between the introduction of our
inhaler and the resultant sales), overall grow revenue, and increase
shareholder value.
4-9
Return to the $QDO\VLV screen. Ensure that the &XUUHQW 3HULRG is still
007.2001. Which initiative does the Objective develop differentiating
distribution approach have attached to it?
Select the KLHUDUFK\ icon and choose the 3HUVSHFWLYH2EMHFWLYH,QLWLDWLYH

variant.
The Develop Differentiating Distribution Approach Objective has the
Improve Distribution Process initiative attached.
SAP AG
SEM010
7-68
4-10
What is the definition for this initiative and who are the team members
attached? What, in general, is the point of initiatives?
Double click on the Improve Distribution Process initiative.
The definition of the initiative is as follows:
To enhance our distribution process we intend to differentiate in a
more accurate fashion between different types of customers. As a
first step within this initiative, customers are to be grouped by
their profitability and potential. Key customers are to be identified.
Furthermore, services have to be rethought as to provide
appropriate offers for each such group of customers.
Select the 7HDP PHPEHUV tab.
The team members are Hans Kuehne, Keith Howard and Diane
MacDonald.
Initiatives are attached to Objectives in order to drive them forward. but
most importantly to enable us to place budget against these strategic
Objectives. According to studies (HJ, &)2 magazine), one of the main
reasons for strategy not being executed successfully is the failure to put a
budget behind the strategic objectives.
4-11
Leave the Diabetics Division Scorecard and return to the %DODQFHG

6FRUHFDUG 2YHUYLHZ screen.
Select 2YHUYLHZ icon.
SAP AG
SEM010
7-69
8QLW 6(0&30

7KH H[HUFLVHV LQ WKLV WRSLF DUH RSWLRQDO.
Understand the basics of the score concept
Change Status and Assessment details within your
Scorecard
Understand how the Net Sales value you planned in BPS is
displayed within your scorecard
This is an RSWLRQDO exercise that gives you the opportunity to
change some of the Balanced Scorecard settings and to see the
Net Sales you planned in the BPS exercises reflected within your
Scorecard.
To do this you will be using the SEM010-X## Scorecards. In
these (provided you pick the correct one for your group) you are
designated as the substitute for the owner.
Accessing your SEM010 X## Scorecard:

5-3
Display the 2YHUYLHZ 6FUHHQ for your scorecard (SEM010 X##) for the
current month.
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%DODQFHG 6FRUHFDUG 6(0 7UDLQLQJ 6FRUHFDUGV 6(0 ;
(X## being your group number)
Double click on your Scorecard to select it.
The current month will be shown automatically.
5-4
Access the $QDO\VLV screen so that 1HW 6DOHV is automatically shown.
Within )LQDQFLDO 3HUVSHFWLYH, expand the *URZ 5HYHQXH Objective.
Double click on 1HW 6DOHV Measure; this will take you through to the
$QDO\VLV screen and will ensure that Net Sales is displayed automatically.
Alternatively, select the $QDO\VLV icon.
SAP AG
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Analyzing results and setting the status:

6-1
Check the 1HW 6DOHV plan for the current month. Does this match the
periodic plan that you created within the final SEM-BPS exercise?
The plan value for Net Sales should match that which you determined in the
final SEM-BPS exercise. This is because the Net Sales Measure on your
Scorecard has been configured to look to the same InfoCube that planning
was carried out on, and, additionally, to look for the plan result with
reference to your plan version, ;
6-4
How is the status being determined for the 1HW 6DOHV Measure?
Select the 6WDWXV tab for Net Sales.
Select the &XVWRPL]LQJ button on the tab.

The status is being determined by the system, although you can overwrite
the result manually.
6-5
Check the results for the 6DOHV *URZWK YV 6HJPHQW $YHUDJH Measure. How
is the status being set for this measure?
Select the 6WDWXV tab for 6DOHV *URZWK YV 6HJPHQW $YHUDJH Measure.
The status is being determined manually.

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Using your own judgment, set the status and write an assessment for the
6DOHV *URZWK YV 6HJPHQW $YHUDJH Measure. Why are you being permitted
to do this when you are not the owner of the Measure?
Select the 6WDWXV tab.
Select the 'LVSOD\&KDQJH icon so that you are able to change the settings.
Change the status.
Select the $VVHVVPHQW tab and then select the $VVHVVPHQW button.
Write an assessment as you see fit.
You are permitted to change such settings because you have been set-up in
the configuration as a substitute for the measure owner: Anne Miller.
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By setting the statuses for the Measures, the Objective *URZ 5HYHQXH has
additionally had its status set. What calculation is the Objective using to
calculate the status?
Double click on the *URZ 5HYHQXH Objective.
Select the 6WDWXV tab.

The status is being determined by averaging the scores of the attached
measures.
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At the conclusion of this topic, you will be able to:
Navigate within the Management Cockpit
Use the various Management Cockpit analysis screens
Having checked the progress of the Division Diabetics Scorecard, you
follow this up with some deeper analysis of key figures using the
division s Management Cockpit. In particular, you are interested to see
which products over this year have accounted for the Division s sales, and
how sales compare to those in year 2000.
1.
Management Cockpit Navigation and Analysis

1-1
Open the 3KDUPD6WDU 'LDEHWHV 3URGXFWV Management Cockpit.
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(double click)
Accept the current period as the default.
1-2
How many walls does the Cockpit have and what do each of the walls
represent?
The Cockpit has the maximum four walls. The black wall shows financial
indicators, the blue wall shows internal indicators, the red wall shows
external indicators and the white wall concentrates on current initiatives and
projects.
1-3
How would you differentiate the theory behind the Balanced Scorecard
(BSC) from the Management Cockpit (MC)?
Primarily, the Balanced Scorecard provides a framework to translate and
communicate strategy throughout the business, and therefore has a focus on
Measures that will help us drive the strategy, through analysis and feedback,
over the long term.
The Management Cockpit is more focused on the analysis of a wider set of
indicators, both of strategic and operational performance. Evidently there
are similarities between the two tools (four walls, four perspectives, etc.)
and they can be used together to good effect. The PharmaStar example
highlights this inasmuch as in the BSC we got some Net Sales information
that was driving our Grow Revenue objective. Now, in the MC, we are
going to see some additional, supplementary information with regard to Net
SAP AG
SEM010
7-72
Sales that will give us a more holistic view, which may not have been
appropriate in the BSC.
1-4
How many Logical Views does the Black Wall have and what are they
called?
The Black Wall has six Logical Views: Profitability/Growth/Cash
Flow/Risk Management/Shareholder Management/Stakeholder
Management.
1-5
Expand the *URZWK Logical View. How many Frames are contained in this
Logical View? What do Frames represent?
Expand the *URZWK Logical View.
The Logical View has six Frames.
Frames are the visual representations of Key Figures. They are intended to
be easy-to-understand visual interfaces to the system. The results you are
seeing are coming directly from the BW database.
1-6
Open the *URZWK Logical View. Are the Frames all graphics, or a mixture
of graphics, documents and BW reports?
Double click on the *URZWK Logical View.
The frames are all graphics.
1-7
Within the *URZWK Logical View select the 1HW 6DOHV 7LPH 6HULHV Frame
and compare this year s sales with last year s. What was the approximate
value of net sales for period nine, 2001?
With the *URZWK Logical View open, you only need to click once on the
relevant Frame to get an expanded view of it.
Select the 1HW 6DOHV 7LPH 6HULHV Frame.
The Net Sales for period nine, 2001, were just over $1 billion.
Close the Frame.
1-8
Return to the view where you are looking at all of the Frames within the
*URZWK Logical View. Select the 6DOHV SHU 3URGXFW /LQH Frame. Which
product did we sell the most of over the year 2001?
Select the *URZWK button.
From within the *URZWK Logical View, select the 6DOHV SHU 3URGXFW /LQH
Frame.
The insulin inhaler was our strongest performing product over the year.
SAP AG
SEM010
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1-9
Return to the Management Cockpit: Overview screen. You are interested in

any political news that may shape decisions with regards to the diabetics
market. Using the 5HG :DOO the )RUFH )LHOG $QDO\VLV Logical View and
the 3ROLWLFDO 'RFV Frame find out which documents are available.
Return to the Management Cockpit: Overview screen by selecting the %DFN

WR 2YHUYLHZ icon in the upper left corner..
Within the Red Wall, expand the )RUFH )LHOG $QDO\VLV Logical View.
Select the 3ROLWLFDO 'RFV Frame.
There are numerous available documents.
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In todays business environment, competitive pressures have reached a boiling point. We have to
constantly justify our place in the value chain because there is literally a world full of competitors
looking to convince customers, investors, etc., that they can add more value than we can.
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This is particularly important in an environment where the huge majority of our corporate value is
made up of intangible or weightless assets. As a result, a great deal of our corporate value is
vulnerable to market sentiment, etc. Let analysts and general investors form the opinion that you do
not run a tight ship, and you may well suffer harsh penalties as their investment capital flows to your
competitors.
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Shareholder value can be enhanced by increasing communication and knowledge about the external
market This may then reduce any perceived value gap, or, by being more communicative, may
reduce the perceived risk. This reduction in uncertainty could also lead to an increase in shareholder
value.
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One of the main ways to prevent this kind of situation from developing is to convince stakeholders
that you are practitioners of good corporate governance. The key to this is consistent communication
with your stakeholders.
As the slide shows, this kind of communication is important because it can directly affect your
corporate value. In this example, the market does not understand or believe your view of how the
corporate value is going to increase over time. The company will remain undervalued until you can
convince them of your figures/strategy, etc.
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If you do not communicate strategy in todays environment, more often than not it will be assumed
that you do not have one. This kind of poor communication on your part will have a detrimental
effect on your corporate value. Poor communication will lead to uncertainty over intentions, which
will, in turn, increase the risk of investing in you and decrease the availability of funds available to
you. Your cost of capital will therefore increase. This will decrease shareholder value and you are in
danger of entering a vicious circle
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Communication is the key to keeping stakeholders happy and confident in our abilities. SEM-SRM is
designed to facilitate this communication in a number of ways, from the provision of Contacts and
Master databases to handle stakeholder details, to the provision of a stakeholder Web portal, through
which we will provide stakeholders with plenty of relevant content.
Stakeholder Web portal is scheduled for a future release.
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Personal data, objective structure,

power structure, risk structure,
notes & comments
Information requirements,
actions & initiatives,
notes & comments
The following information is stored in the Stakeholder Master Database:
Personal dates of stakeholders (name, title, occupation, company, address, telephone, fax, email,
language, country)
Expectations (objective structure) of stakeholders
Extend of influence (power structure) of stakeholders
Amount of stake (risk structure) of stakeholders
The Stakeholder Contact Database covers data for the contact management:
Information requirements of stakeholders (what information was reported to which stakeholder

and when)
Actions and initiatives concerning stakeholders (what was undertaken with which stakeholder and
when and where)
SAP AG 2001
The Stakeholder and Contacts databases were delivered with SEM-SRM in 3.0a. The content
includes InfoCubes for the shares held by stakeholders, information requests, contacts and
expectations.
Additionally, queries concerning stakeholders, contacts, documents, information requests and

expectations are delivered for stakeholder analysis.
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The Stakeholder Questionnaire Generator supports the analysis of the stakeholders

expectations. This function includes the ability to generate questionnaires, send them to
stakeholders, automate analysis of the returned questionnaires and automatically feed
the data in the SEM-CPM for reporting.
SAP AG 2001
A Stakeholder Questionnaire Generator is planned for a future release. This will enable us to send,
receive and enter data from the returns into the database. This may also prove to be useful in
complementing SEM-BIC by substantiating some of the information that may have been collected
from the Web.
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various medias like print media, fax, telephone, Internet and e-mail.
Furthermore, this function allows us to send information to stakeholders on a regular

basis.
The Stakeholder Communication Processor supports the automatic processing of

incoming data. Received comments, questions or information requierements by
stakeholders are channeled via workflow to the right person.
SAP AG 2001
The Communications Processor is planned for a future release, although an e-mail push service was
available with 3.0a. Working in tandem with the databases, the e-mail push service is able to
automatically or manually send mail to stakeholders.
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Date
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2.3.99
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Peter Smith
London
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The share price constantly increases.
...
answer
Best regards
Mails, like comments and questions, cannot automatically be forwarded. They must be sorted
manually and sent to the right person.
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The Stakeholder Value Report Builder builds reports with target-group-related information.
SEM-SRM allows us to present existing data in different ways in order to meet stakeholders
requirements.
Management uses the Management Cockpits and Scorecards of SEM-CPM.
Investors and analysts receive details about share price development and can monitor reports via the
Internet.
Employees get information about company strategy, market value, remuneration and corporate
contributions.
Customers receive information about new products and services and how the achieved cash flow will be
invested in research and development.
The society is informed about taxes per capita, employment and environmental pollution.
SAP AG 2001
The Stakeholder Value Report Builder will build reports with target-group-related information.
SEM-SRM will, in the future, allow us to present existing data in different ways in order to meet
stakeholders requirements.
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Potential Market
Market Share
Diabetes Patients
Consump. per Patient
Sales Price
r st s
Cost of Goods sold
t
24,516,130 ST
62 %
15,200,000.600 ST
2 ST
0.25 USD
24,600,000 ST
50 %
12,300,000 ST
2 ST
0.25 USD
24,900,000 ST
45 %
11,205,000 ST
2 ST
0.26 USD
25,200,000 ST
40 %
10,080,000 ST
2 ST
0.26 USD
25,500,000 ST
40 %
10,200,000 ST
2 ST
0.26 USD
q
25,800,000 ST
40 %
10,320,000 ST
2 ST
0.26 USD
7,600,000.30 USD 6,150,000.00 USD 5,826,600.00 USD 5,241,600.00 USD 5,304,000.00 USD 5,366,400.00 USD
-5,200,000.00 USD -5,200,000.00 USD -5,200,000.00 USD -5,200,000.00 USD -5,200,000.00 USD -5,200,000.00 USD
Total Selling Cost

Total Admin. Cost
Total R & D Expenses
2,400,000.30 USD
-100,000.00 USD
-100,000.00 USD
-150,000.00 USD
950,000.00 USD
-100,000.00 USD
-100,000.00 USD
-150,000.00 USD
626,600.00 USD
-100,000.00 USD
-100,000.00 USD
-150,000.00 USD
41,600.00 USD
-100,000.00 USD
-100,000.00 USD
-150,000.00 USD
104,000.00 USD
-100,000.00 USD
-100,000.00 USD
-150,000.00 USD
166,400.00 USD
-100,000.00 USD
-100,000.00 USD
-150,000.00 USD
Other Income / Cost

Taxes on Income
2,050,000.30 USD
-120,000.00 USD
0.00 USD
600,000.00 USD
-120,000.00 USD
0.00 USD
276,600.00 USD
-110,000.00 USD
0.00 USD
-308,400.00 USD
-100,000.00 USD
0.00 USD
-246,000.00 USD
-80,000.00 USD
0.00 USD
-183,600.00 USD
-60,000.00 USD
0.00 USD
Chg Current Assets

Chg Fix Asset i Depr
1,930,000.30 USD
60,000.00 USD
-220,000.00 USD
480,000.00 USD
60,000.00 USD
-220,000.00 USD
166,600.00 USD
50,000.00 USD
-220,000.00 USD
-408,400.00 USD
40,000.00 USD
-220,000.00 USD
-326,000.00 USD
40,000.00 USD
-220,000.00 USD
-243,600.00 USD
30,000.00 USD
-220,000.00 USD
2,090,000.30 USD
640,000.00 USD
336,600.00 USD
-228,400.00 USD
-146,000.00 USD
-53,600.00 USD
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SEM010
9-15
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Division Diabetics
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Assumptions document
Division Diabetics
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share and potential market
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patients / net sales /
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plan formulas
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9-16

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24,900,000 ST
45 %
11,205,000 ST
2 ST
0.26 USD
25,200,000 ST
40 %
10,080,000 ST
2 ST
0.26 USD
25,500,000 ST
40 %
10,200,000 ST
2 ST
0.26 USD
24,516,130 ST
62 %
15,200,000.600 ST
2 ST
0.25 USD
Cost of Goods sold
r st s
t
24,600,000 ST
50 %
12,300,000 ST
2 ST
0.25 USD
Potential Market
Market Share
Diabetes Patients
Sales Price
25,800,000 ST
40 %
10,320,000 ST
2 ST
0.26 USD
Total Selling Cost

Total Admin. Cost
2,400,000.30 USD 1,210,000.00 USD 1,016,600.00 USD

-100,000.00 USD
-90,000.00 USD
-90,000.00 USD
-100,000.00 USD
-92,000.00 USD
-91,500.00 USD
-150,000.00 USD -144,750.00 USD -143,250.00 USD
431,600.00 USD
-90,000.00 USD
-91,500.00 USD
-143,250.00 USD
624,000.00 USD
-90,000.00 USD
-91,500.00 USD
-144,000.00 USD
686,400.00 USD
-90,000.00 USD
-91,500.00 USD
-143,700.00 USD
Other Income / Cost

Taxes on Income
2,050,000.30 USD
-120,000.00 USD
0.00 USD
883,250.00 USD
-120,000.00 USD
0.00 USD
691,850.00 USD
-110,000.00 USD
0.00 USD
106,850.00 USD
-100,000.00 USD
0.00 USD
298,500.00 USD
-80,000.00 USD
0.00 USD
361,200.00 USD
-60,000.00 USD
0.00 USD
Chg Current Assets

1,930,000.30 USD
60,000.00 USD
-220,000.00 USD
763,250.00 USD
60,000.00 USD
-220,000.00 USD
581,850.00 USD
50,000.00 USD
-220,000.00 USD
6,850.00 USD
40,000.00 USD
-220,000.00 USD
218,500.00 USD
40,000.00 USD
-220,000.00 USD
301,200.00 USD
30,000.00 USD
-220,000.00 USD
2,090,000.30 USD
923,250.00 USD
751,850.00 USD
186,850.00 USD
398,500.00 USD
491,200.00 USD
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SEM010
9-18
6WUDWHJLF 6FHQDULR
Scenario Business as Usual
Division Diabetics
Scenario Cost Cutting
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SAP AG 2001
SAP AG
SEM010
9-19

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24,900,000 ST
62 %
15,438,000 ST
2 ST
0.27 USD
25,200,000 ST
63 %
15,876,000 ST
2 ST
0.27 USD
25,500,000 ST
64 %
16,320,000 ST
2 ST
0.28 USD
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Market Share
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Sales Price
24,516,130 ST
62 %
15,200,000.600 ST
2 ST
0.25 USD
Cost of Goods sold
r st s
t
24,600,000 ST
55 %
13,530,000 ST
2 ST
0.25 USD
25,800,000 ST
65 %
16,770,000 ST
2 ST
0.28 USD
Total Selling Cost

Total Admin. Cost
-100,000.00 USD -103,500.00 USD -103,500.00 USD -100,800.00 USD
-97,200.00 USD
-97,200.00 USD
-100,000.00 USD
-92,000.00 USD
-91,500.00 USD
-91,500.00 USD
-91,500.00 USD
-91,500.00 USD
-150,000.00 USD -173,700.00 USD -157,575.00 USD -157,575.00 USD -155,520.00 USD -155,196.00 USD
Other Income / Cost

Taxes on Income
2,050,000.30 USD
-120,000.00 USD
0.00 USD
714,800.00 USD 2,452,445.00 USD 2,835,965.00 USD 3,646,980.00 USD 3,899,304.00 USD
-120,000.00 USD -110,000.00 USD -100,000.00 USD
-80,000.00 USD
-60,000.00 USD
0.00 USD
0.00 USD
0.00 USD
0.00 USD
0.00 USD
Chg Current Assets

1,930,000.30 USD
60,000.00 USD
-220,000.00 USD
60,000.00 USD
50,000.00 USD
40,000.00 USD
40,000.00 USD
30,000.00 USD
-220,000.00 USD -220,000.00 USD -220,000.00 USD -220,000.00 USD -220,000.00 USD
2,090,000.30 USD
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SAP AG 2001
SAP AG
SEM010
9-21
6WUDWHJLF 6FHQDULR
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document
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SAP AG 2001
SAP AG
SEM010
9-22

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