1 Accenture Advanced Enterprise Performance Management Solution for SAP Helping oil and gas companies exploit today s insight and fuel tomorrow s high performance
2 In the recent Accenture High Performance Finance Study 1, those companies that described their EPM capabilities as advanced encompassing enterprise-wide valuedriving initiatives and standardization were much more satisfied than others (38 percent vs. 6 percent respectively) with the contribution of finance to overall performance and a number of key drivers of high performance. Today s global energy market forces are dictating that companies in the oil and gas industry cut through operational complexity to act and grow with greater speed, efficiency and accuracy. The down economy coupled with increasing demand for oil and gas equate to significant price volatility that is hard to monitor. More oil exploration and production projects could be delayed as companies respond to a lack of available capital, higher financing costs (such as rig rates, construction and material costs) and fears of a lower return on investment from lower oil prices. Bringing additional pressures is more stringent environmental and emissions legislation, from lowering sulfur fuels and phasing out methyl tertiary butyl ether to boosting requirements for renewable fuel use. Then, geophysical occurrences such as earthquakes and faulting, permafrost and frozen ground phenomena, flooding, ice, current and sediment hazards potentially threaten business success on a daily basis. Navigating the challenges in ways that drive high performance means having the ability to extract and interpret key sales, investment, compliance, drilling and development or other operational insight to shape your business strategy, closely monitor and adjust the levers of value and better adapt to market conditions and opportunities. At Accenture, obtaining this ability is called enterprise performance management (EPM). 1 The Changing Role of the Finance Organization in a Multi-Polar World: Accenture High Performance Finance Study 2008, Accenture 2008, available at: and_insights/by_subject/finance_mgmt/finance_ Operations/TheChangRole2008.htm
3 Insight to turn finance into a key contributor of high performance Oil and gas companies can best meet market pressures by adopting an "advanced" EPM approach wider in scope than is common. Advanced EPM includes governance, risk and compliance for a holistic view on enterprise performance, business intelligence for thorough analytics and enterprise information management for data integration. By adopting such an approach, enterprises can be more proactive in turning their finance organizations into a value creator ensuring that the business possesses the understanding, strategies, capabilities and information to compete globally while controlling and containing costs. Figure 1. Sample impact of advanced EPM in oil and gas. Operational More lean manufacturing targets Better profit margin management Increased speed to market The benefit potential is significant in driving competitive advantage, increased profitability, and market dominance (see Figure 1) through: 2 Better execution of strategies, allowing optimal resource allocation and maximizing sustained shareholder value. Translation of strategic goals into tactical execution. Enhanced monitoring of strategy execution across the organizational dimensions. More insightful, faster decision making. Optimized business performance across a single enterprise or business network. Greater connection between the finance and IT departments, including shared business goals and strategies. Yet, many oil and gas companies have Financial Lower operating costs Better management of R&D spending Increased product profitability Reduced capital expenditure cost struggled to achieve such benefits through comprehensive enterprise insight. Large amounts of data and poor data quality coupled with limited integration across multiple data sources often cause indecision, decision delays or missed opportunities to link performance measures to shareholder value. Energy companies that run on SAP have a significant opportunity to turn this situation around. EPM process and technology innovation now bring together strategic, business intelligence, operational and financial planning, consolidation, and control processes throughout the mainstream enterprise and synchronizes them with the right metrics, reporting and analytics. SAP-based information and systems can now be integrated to such a degree that it is finally possible to obtain an accurate, comprehensive and consolidated view of an organization s health and potential. We created the Accenture Advanced Enterprise Performance Management Solution for SAP specifically for organizations that manage their finance operations on SAP, with a view to fully incorporating value-added EPM insight throughout operations to better manage the business and outpace the market. Insightdriven value Performance Right tools and information to make decisions in a timely manner Knowledge of where to focus scarce resources Reliable plan more focused on strategy Avoiding complex budget planning 2 Enterprise Performance Management: Transforming finance in the journey to value-based management, Accenture 2006, available at: accenture.com/global/consulting/finance_mgmt/ Enterprise_Performance_Mgmt/R_and_I/ EnterpriseValueBasedManagement.htm
4 Figure 2. Accenture Enterprise Performance Management Framework (patent pending). Business Strategy Target Setting Determine Key Measures of Success Determine Key Value Drivers Refine Corporate Vision and Strategic Objectives Monitor Assess Portfolio Value Develop Action Plans, Re-allocate Resources and Update Forecast Set Targets for Key Measures of Accountability Enablers Incentives and Rewards Integrated IT Architecture Standardized Processes Review Performance with Executive Management Leadership and Capability Data Structures and Controls Cascade Targets to Lower Level Metrics/ Organization Operate Monitor Key Measures of Business Performance Develop Plans to Achieve Targets Allocate Resources (all categories) to Achieve Plans Review, Challenge and Finalize Plans and Forecasts Integration of Information and Management Processes Enablers (People, Process and Technology) A proven approach for creating distinctive EPM capabilities The Accenture Advanced Enterprise Performance Management Solution for SAP is a financial and commercial planning and analysis solution that helps organizations take advantage of the integration of SAP technology excellence in business intelligence, financial planning, compliance and controls to gain a consistent, coherent view of enterprise-wide performance. It is works in conjunction with the Accenture Advanced Enterprise Solution for Energy, helping oil and gas companies maximize the strategic potential of enterprise systems and accelerate enterprise-wide business value for lasting competitive advantage. The Advanced Enterprise Performance Management Solution enables finance departments to more easily access and deliver the accurate and actionable information their organizations need to formulate strategic plans, make the right decisions about markets, products and promotions, and report to stakeholders in a timely manner. By combining our unique insight and experience in enterprise performance, finance and functional processes with market-leading system integration skills, Accenture has formulated a holistic, results-driven approach to tap the full benefit of EPM. Key solution features: Accenture Enterprise Performance Management Framework, a holistic, phased and results-driven approach to fully integrating EPM functional processes and tools (see Figure 2). The patent-pending framework illustrates the components that must incorporate key performance metrics into core management processes as well as supporting tools, leadership behavior and culture. Firmly grounded in driving total return to shareholders, the framework consistently defines and models the key drivers of both current and future value and helps translate performance-oriented strategies into tangible actions. Comprehensive core set of tools with flexibility to customize to company specific requirements and processes. These include: value and portfolio analysis tools; planning, budgeting and forecasting methods; and reporting and analytic methods.
5 The Accenture Enterprise Performance Management Framework is enabled by SAP s EPM applications to increase enterprise insight, accuracy, flexibility and speed. Performance-enabling technology from SAP, taking full advantage of the recent and ongoing integration of the SAP BusinessObjects portfolio that supports core EPM functions. Each component of the framework is enabled by SAP software, a key in integrating vital data dimensions, which helps clients to tap into more business insight for compliance, financial planning and growth. From our extensive work with enterprise systems and SAP, Accenture understands how SAP s applications that enable EPM have evolved and continue to evolve to be a viable tool that encompasses enterprise-wide initiatives and standardization to help drive broad business value both financial and non-financial, tangible and intangible. Our EPM approach aligns with the Accenture Advanced Enterprise Solution, a preconfigured SAP solution that uses best practices, building blocks and implementation accelerators supported by SAP to provide flexible, predictable, high-quality implementations. Across a number of initiatives, our Accenture Advanced Enterprise Solution has reduced implementation time by as much as 50 percent for a variety of companies. Accenture developed this solution for the chemicals, metals and mining industries, and is currently adapting it to the energy industry. Accenture serves as a trusted and capable guide to help organizations plan for and execute the kind of change required to incorporate the benefits of advanced EPM processes into their business and maximize the returns on their SAP investment. Our clients rely on our marked ability to link our deep understanding of business processes with our systems integration experience to enable those processes with packaged solutions.
6 High performance achieved through advanced EPM By implementing advanced EPM on the SAP platform, Accenture helps clients optimize their investments and achieve their long-term visions in a more focused way. Along with a more seamless operation, thanks to a single SAP environment, clients gain a common view of the truth with innovative business analysis capabilities for faster closing times, lower operating costs and increased revenue. For example, Shell Exploration and Production Co. (Shell EP) teamed with Accenture to harmonize, standardize and integrate its key processes and systems onto a single SAP-based IT platform with a hefty business intelligence component. The solution is enabling Shell EP to increase operational performance and efficiency through the sharing of best practices, standardization of business processes and greater transparency and comparability of information across the organization. It supports Shell EP in achieving its current priorities, including resource base growth, effective project delivery, operational excellence and a competitive cost structure. Drawing on our deep industry experience, understanding of business processes and the exceptional breadth of talent and capability across our organization, Accenture can determine from the insight gained through EPM which functions to address first in driving high performance whether strategy, finance, business intelligence, customer relationship management, supply chain, human resources or marketing. Accenture also incorporates EPM-based insight and capability into our energy industry solutions. Accenture Advanced Enterprise Solution for Energy The Accenture Advanced Enterprise Solution for Energy links industry-leading processes into a preconfigured enterprise resource planning (ERP) solution tailored to the energy industry. Our solution is built on the latest technology and is packaged with complete process documentation and tools, methods and templates as well as live systems specifically designed to speed up implementation. It can help to overcome the challenges of off-the-shelf enterprise systems that may not adequately reflect unique energy sector processes. Accenture s preconfigured solution is: Built on the latest SAP technology. Based on industry-leading business processes. Equipped with industry-specific documentation to speed up implementation Capable of providing upstream, gas and downstream specific approaches. Our ERP capabilities enable faster, better-informed decisions that help energy companies achieve high performance.
7 Accenture and SAP have a strong history of partnering, and working together, we have developed deep domain knowledge and skills for the benefit of our customers. SAP now has a fully configured portfolio for enterprise performance management, including strategy, forecasting, reporting and analytics, that works seamlessly with our Intelligence Platform and Business Suite to enable customers to close the loop between strategy and execution. Together with our trusted partner Accenture, we can deliver high return on investment and rapid time to market for customers. John Schwarz Former CEO, SAP BusinessObjects solution portfolio, and member, SAP Executive Board Accenture works with many of the world's leading energy companies to help them achieve high performance. Surrounding the advanced EPM solutions we deliver to our clients are outstanding Accenture resources and skills, among them: Decades of industry experience, working with more than 150 energy clients worldwide and with 97 percent of the Fortune Global 500 energy companies. More than 16,000 people within the Accenture EPM group with deep technology skills, functional experience and industry knowledge including more than 7,000 SAP-skilled practitioners, more than 2,300 SAP Business Intelligence resources and more than 1,000 SAP BusinessObjectstrained professionals. Accenture Delivery Suite for SAP with proven delivery methodologies and tools for cost-effective delivery. Accenture Global Delivery Network that offers 24/7 access to skills in more than 50 delivery centers at carefully chosen locations across the globe. Accenture Plant and Automation Solutions Accenture Plant and Automation Solutions is a series of solutions and assets in which EPM is applied. For example, we understand that energy businesses need close to real time data that they can trust. That is why we developed an integrated Production Optimization solution, as part of the Accenture Plant and Automation Solutions, to monitor and improve energy operations. With this SAP Business Objects-based solution, data is transferred in very high frequencies on a minute by minute basis giving management better transparency and analysis functionality of their operations. Key solution features include an operations performance management system, insightful dashboards, online access to data, ad-hoc and deep dive data analysis and online reporting. The ability to connect to other data types and applications offers a balanced view on operations and makes it easier for management to better understand and act faster on the developments inside their organizations. Accenture has gathered all its experiences about production optimization and EPM, along with other industry leading practices, in its Accenture Plant and Automation Solutions to develop the most suitable solutions for our energy clients. Backed by the power of Accenture and SAP The Accenture-SAP alliance is unlike any other. It is rooted a long-time strategic relationship with executive-level commitment, complementary strategies and talent, and joint developments. SAP brings great performance-enabling technology products while Accenture brings a thorough technological understanding of the SAP business user suite, honed from 30 years of SAP experience. The combination helps clients to uncover the hidden benefits of an integrated SAP technology platform and tap into more business insight for compliance, financial planning, and growth. In fact, Accenture is SAP s primary ally in implementing and integrating its enterprise resource planning central component, business intelligence, and master data management software which are critical enablers of EPM. Getting started From our experience as a global leader in systems integration, Accenture takes an industrialized approach to EPM on the SAP platform that combines leveraging solution methodologies and assets and tailoring them to your organization s precise business needs. We work with our clients to help them assess their existing enterprise performance capabilities, plot a vision for where they want to go and guide them, step by step, like no other in leveraging SAP technology to enable the processes that deliver the transformation to achieve high performance.
8 Contact Us For more information or to sign up for a workshop on how Accenture can help you define your organization s approach to enterprise performance management leveraging your SAP environment, send an to About Accenture Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With approximately 176,000 people serving clients in more than 120 countries, the company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, Its home page is About SAP SAP is the world s leading provider of business software*, offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With approximately 76,000 customers (includes customers form the acquisition of Business Objects) in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol SAP. (For more information, visit *SAP defines business software as comprising enterprise resource planning and related applications Copyright 2010 Accenture All rights reserved. Accenture, its logo and High Performance Delivered are trademarks of Accenture. SAP is a trademark of SAP AG, Germany