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SAP Strategy Management |
An Introduction |
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2/12/2014 |
This document highlights important features of SSM and its use and application in various business scenarios. It also talks about Balanced Score Card and how it can be implemented using SSM |
What is SAP Strategy Management?
It is a solution that aligns the strategy with our goals, initiatives and operational indicators, providing communication between all Intervenient. It helps you communicate plans and objectives, align business units and allocate resources to key priorities, monitor and report on progress, and proactively take action when issues arise.
Key features of SSM
1. Home Page: Here user can see all the related information. Initiatives, KPI summary, Alerts and operational reviews. Completely customizable as per user access and authority.
2. Strategy maps: Used to visualize status of various strategic goals. Prepare pathway diagrams to build short term and long term strategy.
3. Fishbone diagram: to identify and resolve bottleneck within an initiative by visualizing the links between strategy, goal, initiative, resource and other elements.
4. Scorecard: This tab gives a visual display of strategic objectives that shows gap between actual and target. It displays the current score and the trend and helps the user focus on critical results by providing details of various KPIs
5. Dashboards: These are used to provide information about specific operational goals and primarily used to measure and monitor operational metrics.
Key Advantages which SSM offers
1. Accountability and Alignment: Assign individual responsibility for objectives, key performance indicators, and initiatives. Improve performance and align execution with strategy by connecting goals, initiatives, and metrics.
2. Central KPI repository: Leverage a simple and centralized administration of KPIs to drive consistency. Get a quick indication of status with easy-to-interpret scorecards and drill down into more detail for additional analysis.
3. Collaboration: Empower collaborators from all levels with embedded, threaded comments for discussions, as well as the ability to create and use operational reviews and link to external content, such as defined best practices.
4. Impact and performance: Measure the impact of initiatives to best to allocate resources and compare business unit performance side-by-side or with other relevant benchmarks.
5. Exception management: Receive automatic notification of below-horizon objectives that may be in jeopardy.
6. Implement Balanced Scorecard: Measure various perspectives required for effective performance management of business.
What is Balanced Scorecard?
It is a management tool used for strategic planning and performance management. It helps align vision and strategy of organization to operational level activities. Performance is measured for different perspectives like:
1. Financial results
2. Customer Satisfaction
3. Internal Business Process efficiency
4. Learning & Growth
How is SSM different from other reporting modules?
Description | SAP Strategy Management | BW Reporting | BO Reporting |
Measure progress of strategic goals | √ | X | X |
Operational reports | X (Not Preferred) | √ | √ |
Tracking of various initiatives | √ | X | X |
Root Cause analysis | √ (Limited) | √ | √ |
Course correction for various strategic objectives | √ | X | X |
Dashboards | Limited | Limited | √ |
Balanced Score Card | √ | X | X |
Strategy Maps & Cause And Effect Chain | √ | X | X |
Periodicity (Updation of Data) | Monthly | Daily | Daily |
Input Templates for Actual, Target Data & Approval Work Flow | √ | X | X |
KPI’s (Key Performance Indicator) Source | SAP BW,Other Sources Systems,New KPI’s as per requirement | SAP BW,Other Source Systems | SAP BW,Other Source Systems |
KPI Variation Year On Year (Depending on Company Strategy) | 10-20% | Limited | Limited |
KPI Data Entry | √ | X | X |
Online Management Performance Reviews | √ | X | X |
Online Communication through mails, comments Within Reviewers | √ | X | X |
Data | Historical,Current & Future Projections | In General Limited Historical & Current | In General Limited Historical & Current |
Viewers | Mainly For Top Management includes Middle Mgmt also | Middle Management | Top & Middle Management |
Preparation Of Management Review Presentations | √ | X | X |
