Business Planning &

Reporting for Higher

Education

Tuesday 6th

July 2010

Olly Hinton - Column5

Principal Solutions Consultant ohinton@column5.com

Santosh Takoor - SAPHead of GRC & EPM Business

Development for EMEAIsantosh.takoor@sap.com

Agenda

© SAP 2007 / Page 3

10.15 Arrival: tea, coffee and pastries. Water also available.

10.30 – 11.15 BPC – Column 5 / SAP – speakers TBC

11.15 – 11.30 Questions

11.30 – 11.40 BI BOBJ on Demand with demonstration: Matthew Gordon, Sales Manager, Absoft

11.40 – 11:50 Questions

11.50 – 12:00 Coffee break

12.00 – 12.20 Student Accounting Implementation at MMU –

Best practice and benefits: Andy Hollingsworth and Fran Collett, Manchester Metropolitan University

12.20 – 12.30 Questions

12.30 – 12.45 The benefits of HERUG becoming a SIG under the UK&I User Group

Craig Dale, Head of SAP UK & Ireland User Group

12.45 – 12.55 Questions

13.00 – 13.30 Lunch (buffet lunch with orange/water/tea/ coffee)

13.30 – 14.00 Discussion around Testing Tools: Andy Reynolds, Solutions Engagement Manager – IT Excellence, SAP

14.00 – 14.10 Questions

14.15 – HERUG Meeting (with tea, coffee and biscuits)

© SAP 2008 /

Page 4

© SAP 2008 / Page 4

The SAP® BusinessObjects™ Portfolio

Data Integration

Data Quality Management

Master Data Management

Metadata Management

Information

Management

Governance, Risk,

and Compliance

RiskManagement

Access Control

Process Control

Global Trade Services

Environment, Health and Safety

Business

Intelligence

ReportingQuery, Reporting, and Analysis

Dashboards and Visualization

Search and Navigation

Advanced Analytics

Enterprise Performance

Management

Strategy Management

Business Planning

Profitability andCost Management

Consolidation

Spend andSupply Chain

SAP BusinessObjects BPC Customers

column5 –

column5

one stop shop

vision & thought

leadership

ability to Execute

scale and Reach

• business process

consulting

• technical consulting

• solution design

• application

implementation

• extended support

• training

• international

presence

• unrivalled capability

• listed clients &

household names

• SAP & Microsoft

partner

• cross sector

experience

• Published research

• business process

maturity modelling

• pragmatic, practical

& intelligent

• Process

benchmarking

• accounting & finance

Expertise

• SAP EPM suite, Xcelcius,

integrated detail, BI, XBRL

• over 400 BPC

implementations

• Unrivalled capability and

experience

• best practices

and starter kits

SAP’s largest EPM Partner

Relentless Pressures on Higher Education

Pressure to Perform Is Immense – External and Internal

Factors

Is your organisation in control of performance?

Political Challenges

Globalisation

Industry Challenges

Financial Conditions

Disruptive Technology

Some Recent Press

"These are testing times" - Sir Alan Langlands, Chief Executive of HEFCE

„ " we face the very real prospect of many universities being forced to close, over

14,000 staff losing their jobs and some of the biggest class sizes in the world," „ -General secretary of the University and College Union Sally Hunt

How does the Higher Education sector put itself in the best possible situation to not

only survive, but flourish amidst a back drop of savage cuts?

• decrease in teaching funding of 1.6 per cent in real terms, compared with 2009-10

• 14.9 per cent reduction capital funding in cash terms on the 2009-10 allocation.

• 7 per cent reduction in special funding for national programmes and initiatives, in

cash terms on 2009-10.

• Funding for research is to be maintained

Source: HESA

Premise: Financial Process Maturity is

Important

Managing variability

Staying on top of market demands

Frequent change and substantial variability

Forecasting cash flow in times of uncertainty

Spreadsheets and point solutions issues

Multiple versions of the truth

Too much time number crunching and reconciling

Forces most analysis to a high level – impacting decision making

Cannot react fast enough to new circumstances

Less regular monitoring of progress

Cannot deliver unification, reducing flexibility, agility and effectiveness

Information consistency and accuracy

Getting valid information that is truthful for its time period

Getting accurate forecast information on all levels

Inaccurate or unavailable data

Too much data

What is needed is a

more holistic approach

to management

processes.

Management Process Effectiveness Gap

Despite a lack of on-

demand access,

management

processes were

rated as effective.

Source: Column5 Research

McKinsey: More

than 50% of

investment

decisions are

wrong

• Hard to use, rigid and inflexible

• Patchwork products, old architecture

• Spreadsheet hell

• No confidence in answers

• Rear-view budgeting

• No linkage to any business process

Changing the Rules for Finance

• Unprecedented usability and flexibility

• Unified product, modern architecture

• Easy interchange of MS Office and web

• Governance, risk, compliance built-in

• Adaptive and predictive planning

• Business process inherently built-in

Built for Finance

of 1990

Built for Finance

of 2010

Enterprise Performance

Management

Strategy Management

Planning, Budgeting, and

Forecasting

Profitability andCost Management

Consolidation

Spend and Supply Chain

What is Enterprise Performance Management?

“the methodologies, metrics, processes and

systems used to monitor and manage an

enterprise's business performance” Gartner Group

Methodologies: Systematic & sustainable

procedures for tracking, measuring and

improving business performance.

Metrics: Real-time measures (KPIs) focused

on key issues and critical data for dynamic

decision making & monitoring progress against

financial and operational plans.

Processes: Performance feedback loops link

strategic, operational, activity and results with

the ability to respond to dynamic market

conditions.

Systems: Technology solutions that are

financially intelligent, SOA, simple to configure,

business owned & combine methodology,

metrics and processes in an enterprise-wide

reporting and analysis environment designed to

track, understand and manage information.

Planning

Budgeting

Forecasting

Consolidations

Reporting

Data Manager

SAP BPC

Example processes:

Planning

Budgeting

Forecasting

Reporting

Scenario Analysis

KPI Reporting

Consolidation

BusinessObjects

Custom Portal

Web Browser

Microsoft Office

AdaptableUser Interfaces

Web platform with centralised database

Zero-footprint, Web-based application

Service-Oriented Architecture (SOA)

Multi-platform - Microsoft or NetWeaver / BW

Designed for scalability to thousands

Microsoft Office Integration

SAP BusinessObjects Planning and

Consolidation

The Raw

Materials

High Level Systems Model – no BI

SAP BusinessObjects

Planning &

Consolidation

“THE FACTORY”

AgressoSAP

HCMSITS

Other

Systems

e.g BI

Published

Reports

Reports owned and

created by Finance,

inc. Adhoc, slice/dice

Business Intelligence is not a requirement. BPC can feed from any source system

Applicable to Higher Education

• One version of the truth, all financial processes in one place

• Reduced cycle times by 40%+ enabling focus on analysis

• Increased accuracy and control and workflow

• Extends the useful life of underlying systems

• Brings relevant information together in one place for analysis and running of the

University

• Can delay the investment in underlying systems

• Reduces the reliance on bespoke reports and manual reports

• Can evolve with the business – e.g. as cash-flow grouping change, as its simpler,

quicker and more dynamic to maintain than ERP

• Low total cost of ownership

• Familiar interface reduces training cost and increases acceptance

Potential Processes in BPC

Performance reporting and forecasting e.g. By cost, profit centres, WBS

Variance and version analysis (Actual v Plan v Forecast v Scenarios)

Financial Statement analysis

Debtors analysis

Procurement analysis

Financial and operational planning

HEFCE reporting and forecasting

Student number forecasting and analysis (e.g. Widening participation, origin)

Research & commercial project forecasting, analysis and reporting

HCM Staff planning and cost analysis

Facilities/real estate management

Capex and asset forecasting

Cashflow analysis, reporting and forecasting

Track budget against commitment against burn

No further software modules needed,

just add processes as desired

• Users are guided through business processes to

complete submissions

• Communicates common, and best, practices and

encourages collaboration

• Managers can track status of submissions by viewing

process reports

• Review steps require management sign off before staff

can progress

• Reduces training as users click on a link to perform

tasks

• Reduces handover risk as staff move roles

• Increases self service to important policies and

documentation

Value of Business Process Flows

University

Drivers

Calculate

Operating

Expenses

Economic

drivers

Student Data

HEFCE Drivers

Calculate

Teaching

Revenue

Calculate

Research

Revenue

HR Data

Capex Drivers

Calculate Staff

Costs

Model New Staff,

Leavers, Promotions

etc

Model Expense lines

by % increases,

trending, 4-4-5

phasing, one offs etc

Model HEFCE

Revenue

Model Research

Revenue

Calculate Other

Revenue

Model Revenue from

Hospitality, Property,

Business Ventures

Model Fixed Assets,

acquisitions, capital

projects

Asset

Movements

Profit And Loss

Balance Sheet

Cash Flow

P&L Generates most of

Balance Sheet

Balance Sheet

Generates Cash Flow

Repeat Cycle

Other Data

Column5 Higher Education Planning Model

Entering planning drivers

Entering Top Up Fees

Entering Non-Home Student Fee Data

Entering Staff Benefits Data

Setting 5 Year Targets

Student Attrition

• Student attrition rates may be entered or automatically calculated by the system based on

latest actuals or forecast in granular detail

• Graphical analyses help spot exceptions and excellent performers to aid knowledge sharing

and learning

Student Planning

• Students leavers are automatically calculated based on attrition rates

• Students are automatically advanced in time and academic year

• Transfers to other courses, and other adjustments can be input manually here

Student Movement reporting

• Reports enable people to look without being able to change figures

• This report allows staff to vary rows and columns to have different views of the

data

HEFCE Reporting Made Easy

• Using loaded data, input data and drivers, the system automatically places

student numbers into A-D bands and calculates grant in granular detail

• Example of a HEFCE funding report by course and mode of attendance

Summary – HE Financial Performance

Extends solution to provide one

version of the truth

Removes “Excel Hell”

Office interface significantly reduces

training and increases speed of

acceptance

Future proofing – enables faster

adaptability to HEFCE and other

business changes

Provides control, ensures best

practices and processes are followed

Reduces reporting risk by improving

consistency and accuracy of reporting

Example High Level Plan

• Parts of the build can run in parallel

• Actual project plan would depend on scope and detailed requirements

• Most projects run between 12 and 16 weeks depending on complexity

• Multiple phases of work would use a similar approach

• Projects are most successful when staffed with consultants and internal

implementation staff who have a deep understanding of requirements

• Suitable training courses are available to match learning with need as

the project progresses

Project Timeline W01 W02 W03 W04 W05 W06 W07 W08 W09 W10 W11 W12 W13 W14 W15 W16

PROJECT INITIATION

DESIGN

TECHNICAL & INSTALL

Iteration 1 - DIMENSIONS & APPLICATIONS

Iteration 2 - SOURCE DATA MAPPING & MIGRATION

Iteration 3 - BPC RULES AND CALCULATIONS

Iteration 3 - INPUT SCHEDULES & REPORTS

WORKFLOW

SECURITY & OTHER FEATURES 1

TEST & DEPLOY -

GO-LIVE & TUNE

PROJECT MANAGEMENT

Total Days

In Summary - Key Takeaways

© SAP 2007 / Page 35

1) SAP BusinessObjects Business User Suite

• Complete Coverage for the Business User

• Stable, mature Business User platform

• Recognition in marketplace as Best in Class

2) Why SAP BusinessObjects BPC for Business Planning & Reporting?

• Single unified platform

• Finance owned

• MS Office integration

3) Dedication and Investment into Higher Education

• Over 70 existing SAP/BusinessObjects HE customers

• Higher Education Starter Kit

Q&A

© SAP 2007 / Page 37

Olly Hinton

+44 7850 600203

ohinton@column5.com

www.column5.com

Santosh Takoor

+44 7808 575561

Santosh.takoor@sap.com

www.sap.com