Learn how Corporate Functions like HR and Finance can leverage sophisticated solutions for predictive modeling, data mining and advanced visualization. Follow me on twitter @hschliebs

1. Predictive Corporate Functions
Henner Schliebs, July 2013

2. Predictive Finance

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Finance Excellence: Guidance on, Guiding for the future
Core functions of effective
finance organizations include:
 Reporting of historic financial
information
AND
 Guidance on and guiding
expected (future) results
source: Association of Accountants and Financial Professionals in Business (IMA): Conceptual Framework for Managerial Costing

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The Finance Conundrum: What is the future ?
Plans tell us where we want to go (vision), not where we are heading (direction)
Based on the past, what is likely going to happen ? Which factors are correlated with or impact the future ?
Vision (Plan)
Direction (Reality)
Indicators (Trends)
Past Performance

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SAP Predictive Analysis - Finance Use Cases (examples)
Cost, margin and other financial trends
 Time series (Forecasting)
Profitability analysis (A also bought XYZ)
 Associations (Identification)
Optimized performance management
 Classification (Decision Trees)
Proactive detection of financial risks
 Outliers (Anomaly detection)
Late payers - attributes (Receivables)
 Clustering (Segmentation)
Company performance (external factors)
 Classification (Correlations)
AnalyzeOptimize

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SAP Predictive Analysis - Key Finance process component
SAP Predictive Analysis allows end-to-end SAP coverage for the record-to-act management
process. Results of the analysis process step are used to take action (plan, re-plan, or management
action outside SAP system)
Record Report Analyze Act
 SAP Predictive Analysis
 SAP Net Margin Analysis
 SAP Business
Planning
 SAP ERP
 SAP EPM
 BOBJ BI platform
 SAP Accelerators
 SAP ERP foundation
 SAP Accelerators
Record-to-act management process

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Manage Financial Risk
SAP Predictive Analysis - Finance Value Proposition
Optimize business
opportunities
Outperform Financial
Objectives
 Reach your business goals faster by
turning dormant data into new opportunities
 Stay agile and gain a competitive edge with
efficient forecasting and planning
 Solve problems before they happen by
exposing hidden risks and hazards

8. Flow of people

9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15
SuccessFactors BizXWhat if we better understand the Flow of People at SAP?
…We could show our internal talents a much broader range
of realistic and proven paths for professional development
and career progression at SAP and in this way promote
triple career pathing.
… We better understand the internal flow of talents and could think what to do to increase the number of key
positions filled successfully internally
…We could identify critical patterns that more often than not
result in less successful internal movements, analyze the
route causes and probably define actions to improve selection
(match-to-job) and/ or improve onboarding to increase
sustainability
Currently our focus in communication and supporting career
planning/ pathing is on movements within or job families, real life
teaches us many people move between functional areas.
…We could tell Early Talent that once they join SAP “they don´t need to change when they are up for a change”
and contribute to a strong Employer Branding towards Milleniums

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Examples for considerations/ business impact that could be derived
from understanding the Flow of People at SAP
Increase Flexibility
and Agility of the
Organization
Support Career
Planning for
Individuals
Understand and
Forecast Internal
Supply Chain
Globally 30% of open positions in
Marketing were filled with people
coming from Sales & Pre-Sales
functions.
People who move out of
Development rather join Pre-Sales &
Sales (50%) than Consulting (30%)
20% of people moving from a
Development function into a
Marketing function other than
“Solution Marketing” have left SAP
within 12 months after their move or
had performance ratings below
“meets expectations”
We are facing a paradigm shift in
Marketing (pull vs. push, social
marketing) and a change in the
regional/ solution focus.
With these changes ahead can we
assume the same numbers for internal
supply for Marketing in the future
coming from Sales & Pre-Sales?
Potential Impact Dimension of
Flow of People Analysis
Example of Findings
Considerations /
Follow Up Actions What can we do to
increase the flow into
Consulting roles from the
internal workforce in
Development? As also
sales/ pre-sales people
travel mobility cannot be
the only hindering factor.
Understand from Marketing
perspective of Marketing more
inclusion of talent from Development
is desired, if so consider related
actions to support onboarding/
improve selection and consider
alternative ways to support inclusion
e.g. job rotation/ fellowships.

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SAP Predictive Analysis – SAP Internal Use Case for HR
„Flow of People“
Focus: Analysis of internal transfers across job
families and functional areas
Expected Results: Identify re-curring and
unhealthy patterns of career moves, classify and
segmentated job groups as basis for further
analysis by HR BPs
Business drivers:
 Increase organizational agility
 Reduce talent attrition,
 Increase employee engagement

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SAP Predictive Analysis – SAP Internal Use Case for HR
„Flow of People“
Employee Performance Analysis
 Time series (Forecasting)
Effectiveness Analysis (successful career
path)
 Associations (Identification)
Optimized career path management
 Classification (Decision Trees)
Turnover- attributes
 Clustering (Segmentation)
AnalyzeOptimize

13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20
SAP Predictive Analysis – HR Use Cases (examples)
Employee Performance Analysis
 Time series (Forecasting)
Effectiveness Analysis (successful career
path)
 Associations (Identification)
Optimized career path management
 Classification (Decision Trees)
Proactive detection of talent turnover
 Outliers (Anomaly detection)
Turnover- attributes
 Clustering (Segmentation)
Workforce performance (movements)
 Classification (Correlations)
AnalyzeOptimize

14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 21
Manage Retention
Risk
SAP Predictive Analysis – HR Value Proposition
Optimize employee
performance
Outperform HR
Objectives
 Evaluate your most important asset
(employee) like you do for all other assets to
create a performing and efficient organization
 Stay agile and gain a competitive edge with a
strong employer brand and a sophisticated
workforce plan
 Keep your high potentials and top performers
within your organization - proactively

15. © 2013 SAP AG or an SAP affiliate company. All rights reserved.
Henner Schliebs
Analytics Product Marketing
@hschliebs
henner
henner.schliebs@sap.com
hschliebs
Predictive Finance Demo: http://bit.ly/PF-demo
Predictive Finance Slides: http://bit.ly/PF-slides
Predictive Finance Radio Show: http://bit.ly/PF-Radio1
Flow of people blog: http://bit.ly/SAP-TA-blog
Talent Analytics Video: http://bit.ly/TA-YT