SAP dassian GOVCON webcast march 2013

Five Critical Areas of Transparency Considered Best Practices of

Successful Government Contractors(must have’s in today’s environment)

Housekeeping/Logistics• Webinar Duration ‐ 60 minutes• Four Speakers• Q&A – Last 10 minutes

– Use the Chat Feature to Submit Questions

• Presentation ‐ Slideshare.net/Dassian• Recorded Webinar – http://bit.ly/dassiansap

3/14/2013 ©Copyright 2013 Dassian Inc. Page 2

Agenda• Introduction • Overview of the GOVCON Market and the Five Areas of Critical Transparency

• USIS – Managing to the Market• How SAP/Dassian are Enabling Government Contractors• Q&A


IntroductionThe Government Contracting Environment Today• Uncertainty due to the Federal budget crisis • Shrinking budgets, lower margins, and diminished profitability

for government contractors• Niche markets within government services are strong and

growing, including cybersecurity; intelligence; intelligence, surveillance and reconnaissance (ISR); specialized capabilities such as cloud computing, virtualization, analytics; health care; and energy.

This Webcast will showcase how transparency into your business can help you “weather the storm”, increase your competitive position, control costs, increase revenue, identify opportunity, ready you for the future, and steer your business towards increased profitability.


• Dan Murphy – Dassian, President & CEO

• Barb McElnea – Dassian, Director Solution Management

• Paul Constantakis – USIS, Director Financial Applications

• Patrice Cappello – SAP, Industry Principal –Professional Services


Speakers

5 Critical Areas of Transparency


Market Force Market Challenge/Opportunity

Area of Transparency Needed to Address Challenge

Uncertainty (budget issues, continuing resolutions, sequestration, etc.)

Fewer Contracts,Decreased Margins, Contract Delays

Optimize what you have with visibility at the lowest project level

“Flat is the new up” (flat or decreasing budgets)

Staff cuts, IncreasedCompetition, Efficiency Demands, Flat Revenues

Identify problems before they become problematic –thresholds/alerts

Increased Competition for Fewer Contracts

Consolidation, Efficiency Demands, Need for Real Time Trusted Information

Visibility into what type project and area of your business is most profitable – total cost ownership

Low Cost/High Quality Do More With Less, Need to streamline management of supply chain

Visibility into contract data and synchronization across entire supply chain

Anticipation in Commercial Sector, Space could be interesting

Decrease/Increasing Budgets, Shift in Areas of Spending/Contract Awards

Optimizing your solution to allow for government contracting compliance

Transparency at Lowest Level


• Ability to view costs at any level in the WBS

• Visibility to total cost ownership

• Reporting on variance against plan



















Thresholds & Alerts


• Ability to set thresholds• Ability to be alerted then a threshold

is exceeded• Ability to report on multiple metrics

• Ability to set thresholds• Ability to be alerted when a threshold

is exceeded• Ability to report on multiple metrics



















Business Profitability Analysis




















Align Supply with Contract Visibility


Purchase Orders with Contract Clauses

Purchase Orders with Contract Clauses

Priority Sales Order

Contract Clauses

Contract T & C’s

Visibility to customer contract terms and conditions is critical to properly manage your supply chain.‐ Prime contract ‐ CAS contract‐ Priority Orders DPAS rating

Synchronizing communication within supply chain to coordinate all efforts



















Industry Focused Solution


Rapidly Implement CAS & Contract Compliance for Government Contracting

SF1034 & SF1035 Invoice Forms

Incurred Cost Submission, CPR Reports

Pre‐Defined CAS Accounting, and Disclosure Statement

Training, Testing, and Process Documentation

Cost Plus, T&M, FFP Contracts & Automated Billing

Timekeeping & Payroll

Contract Flow Down

USIS – Self Service• USIS is a data company, our ability to acquire, analyze, and

turn around our own data makes us better.• Self Service Reporting

– Acquiring data use to be a development effort– Self Service BI tool suite

• Detailed real time information across the enterprise– Ability to add necessary management insight at lowest levels– Timesheets, work locations, individual productivity

• Dassian technology allows for transparency on the individual timesheet, including labor hours and work locations.

• Contract level reporting is important to our customers. • The combined Dassian and SAP BI suite allow for a greater

level of transparency into our business.


USIS – Satisfying the Customer• Transparency allows USIS to react faster

– Change position / focus of effort– Problem areas– Meet contract requirements (Awards vs. Fines)

• Maintaining the highest levels of customer satisfaction builds content in the context of supporting how critical transparency is to our business‐ Daily Forecast ‐ Decreasing backlog allows for proper timing according to the contracts

• Lower costs while increasing value• Delivering on an on‐time, on‐budget, high quality end‐user

mission• The proper level of detail and ease in which we can retrieve

and analyze the data allows us to increase the level of customer satisfaction.


© 2013 SAP AG or an SAP affiliate company. All rights reserved. 18

What is SAP Seeing Today?Gov Con and Professional Services Challenges

Lack of visibility and control of talent and resources

• Inefficient allocation of resources based on skills across geographical or organizational boundaries and availability

• Quality and profitability issues in project execution due lack of optimization of skill fit in resource assignment

• Not using sub-contractors strategically

Bidding on the wrong contracts• Lack of visibility into effective

rates• Lost time bidding on the less

profitable contracts• Expense bidding on lost

contracts erodes profitability

Poor visibility to performance• Lack of visibility and insight into operational

performance (i.e. project, service line, contract, etc)• Difficult to balance opportunities for growth with cost of

risk avoidance• Insufficient planning capabilities (i.e. talent , finances, IT

costs, etc.)•

High cost of and lack of visibility intoservice delivery• Lack of standardization of service processes• Insufficient allocation of costs to projects or contracts• Lack of speed and accuracy in invoicing process• Inefficient sourcing and service procurement• Inaccurate WIP management and invoicing


Effective Resource Management Attract and retain top talent Develop the right skill sets and manage talent Use subcontractors more strategically to…

Increase resource utilization Improve margin on subcontractors

Service Delivery Excellence Automate and streamline processes that support the full project lifecycle

Optimize resource and subcontractor staffing Real time insight into project performance Timely and accurate billing

Capture Management Focus on most profitable contracts Better insight into rates and level of effort

to bid work more accurately Focus on profitable contracts & services

to: Increase win rate Increase margins

Subcontractors

Enterprise Performance Management Become compliant and maintain status Forecast demand and revenue accurately Real time access to business performance

What is SAP Doing to Address These Challenges?


Industry Sub-segments Served Consulting Audit & Tax Legal IT Services/Outsourcing Business Services/Government Contractors

Collaboration with Customers ASUG (American SAP User Group) Professional

Services industry special interest group Executive Advisory Council Annual Industry Value Network Sapphire – SAP’s annual user conference

Professional Services Commitment Industry-specific market focus over 17 Years Dedicated sales, marketing, development organizations More than 20,000 Professional Services customers SAP for Professional Services industry solution

LargestInstalled Base

By Industry

Forums toCapture

Industry Needs

ServingKey Industry

Sub-segments

SAP for Professional ServicesRetaining our leadership in the Professional Services Industry


Did You Know?SAP - Not Just for Large OrganizationsOver 75% of SAP installations worldwide are in companies with $1.5B or less in revenue…

~90% of SAP Professional Services Customers are companies with $1.5B or less in revenue

Total Customers:> 100,000

% SAP PROFESSIONAL SERVICESCUSTOMERS BY REVENUE

Annual sales

Large

Upper Mid

Lower Mid

Small

$1.5bil

$500mil -$1.49bil

$200 -$499mil

< $200mil

10%

4%

46%

40%


SAP Professional Services Benchmarking InsightsExample: Managing Engagement Processes and Talent Supply Chain is Critical for Operational Efficiencies

Best Practice

Source: ASUG/SAP SCP Benchmarking Study, Based on Professional Services participants only (SAP Customers and Non-Customers)

Low Coverage

98 days“Fully Integrated Client to Cash processes allow for timely and accurate billing, facilitating prompt customer payment and improved customer sat.”

Influence of Best Practice Coverage on Key KPIs for Professional Services Companies

High Coverage

“Formal, globally applicable processes to manage and close the organizations financial records and provide reporting on a monthly basis”

4 days15 days

“Resources are the key asset for Service companies, as they represent the value proposition that you are offering to your client base. Continuously developing the employee base directly impacts satisfaction and retention. “

14%35% 60%

73%

76%

30 days120 days 75%““Automated processes for managing the Talent Supply Chain to ensure qualified candidates can be quickly identified and managed through the recruiting and on-boarding.process.”

X %Performance Improvement Opportunity

Effective Service Delivery

Month-End Closing Process

Streamline the Talent Supply Chain process

Employee Development and Retention Employee Turnover

Time to Close Books

Days Sales Outstanding

24 days

Time to Hire

16.5 %27.2 % 39%““Automated processes for managing operational aspects of a Professional Services firm have a direct impact on Sales, General and Administrative Expenses and overall profitability”

Efficient Operations & Support SGA Expense (% of Revenue)

Summary Points• Contractors that ready themselves with the right level of transparency enable

‐ Competitive position/insight‐ Identify problems before they become problematic

‐ Understand where best to spend precious marketing and B&P resources and dollars

• You can prosper and grow, do not accept “flat”, you just need to be enabled to do so


Q/AUse the Chat Feature to Submit Questions


Thank You!


•6900 East Camelback Rd. Suite 805Scottsdale, Arizona 85251

•Phone: 480‐922‐1700•Email: [email protected]

Dan MurphyDassian

President & CEO

Webcast Replay― http://bit.ly/dassiansap

Join our LinkedIn Group: SAP Dassian for Government Contracting

Slideshare.net/Dassian

LinkedIn http://linkd.in/145eL3I

YouTube.com/Dassianinc

FB – facebook.com/dassianinc

Twitter ‐@dassianinc

www.dassian.com

Documents

SAP dassian GOVCON webcast march 2013