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© 2013 Acxiom Corporation. All Rights Reserved. © 2013 Acxiom | Company Confidential

Rob Jenkins

May 2013

Discover Best Practices for Integrated Planning and Profitability

Integrating SAP Business Planning and Consolidation, SAP Profitability and Cost

Management and Salesforce.com to bring the power of activity-based costing and

pipeline analytics to the budgeting & forecasting cycle

© 2013 Acxiom Corporation. All Rights Reserved.

Agenda

• About Acxiom

• Project Objectives

• Existing Planning / Costing Environment / Process

• Project Challenges and Solution Design

• SAP Business Planning and Consolidation, SAP Profitability and Cost

Management & CRM Integration

• Plan Forward

• Q&A

2 ©2013 Acxiom | Company Confidential


About Acxiom

• Acxiom is an enterprise data, analytics and software-as-a-service company

• We create and use data, analytics and software to strengthen connections between

people, business and their partners

• Better connections enable more effective marketing, greater customer value and

improved margins

• For over 40 years, we’ve been an innovator across every important source and use of

data

• We power 50 trillion transactions/year and 15,000 databases for 7,000 clients around

the world


Better Connections. Better Results.


Project Objectives


• Implement application to facilitate Acxiom’s business planning and consolidation processes &

reporting of Actuals, Budget, Forecast

• Retire Hyperion Essbase

• Develop planning process linked to profitability application SAP Profitability and Cost Management

leveraging common Finance data warehouse and data management tools

• Automate “Revenue Walk” calculations using CRM source data

• Deploy Finance self-service application (IS coding no longer required) to reduce change

management cycle time

• Automate planning process for increased efficiency/speed (including workflow approvals and

collaboration)

• Increase what-if scenario capabilities to optimize planning for $1B budget

• Enhance reporting and analysis capabilities using standard desktop and BI tools already owned

(drillable, assumptions, SAP BusinessObjects business intelligence compatible)


Various Flat File Loading

ABM Data Warehouse

Essbase

Key Data Sources • Process Data

(mainframe, servers) • Time Data (3 systems) • Org data (PeopleSoft

HR data)

• Cost Allocation

• Budgeting • Forecasting • Close out

PeopleSoft

Human Resources Asset

Management Accounts Payable

Purchasing Billing A/R General Ledger

Excel Plugin

Internal Portal

Management Reporting

Various Flat File Loading

Existing Environment / Process


Before the Project


Solution Deployment – Business Line P&L


After SAP Profitability and Cost Management Deployed

Implemented SAP Profitability and Cost Management for Business Line Profitability in 30

days

Cycle time:

Decrease in model change cycle time (Finance self-service): 45 days to 1 day

Reduced model calculation time: 5 hours to 20 minutes

New capability of preliminary close reporting: day 10 to day 2

Accuracy:

Improved accuracy through more direct assignments and fewer allocations

Simple:

Increased transparency and analytics through activity cost pools and drillable data sets

Eliminated support of Essbase reporting environment and maintenance required

Resources:

Reduced FA inputs enabling more focus on analysis

Decreased IS support resulting in headcount re-deployment


Solution Deployment – Customer P&L


After SAP Profitability and Cost Management Deployed

Implemented SAP Profitability and Cost Management for Customer Profitability in 90 days

• Initiated data sourcing and application setup prior to model configuration

• Model built with Actual, Budget, Forecast

• Model Development & Reporting lessons learned:

Model size:

Rolled up customer bill_to = 40K to 12K

Implemented pre-calc routines, console mgr., alt. hierarchies

IT infrastructure enhanced: larger server, maxed VM memory

Reporting: Lack of reporting warehouse/BI tool

Business Line P&L production process with common resources

Network Connectivity: Terminal server needed to address network latency

• SAP Profitability and Cost Management is effective multi-dimensional calculation engine but

requires relational DB environment for efficient reporting solution for model of this size


SAP Business Planning & Consolidation Project Challenges


• Multi-dimensional planning

Revenue plan inclusive of a Backlog walk (Backlog, New Business, Churn, New Logo)

Expenses by Org, Customer, Market/Geo, Product, Account, Activity

Labor Expense – 6000 Associates

• Integration of SalesForce.com data

No PeopleSoft common key

No other Contracts system to manage Backlog / Bookings

• Integration of SAP Profitability and Cost Management Actuals for allocation of Budget

Expenses

• Level of Detail:

3K+ Cost Centers by 100+ Accounts by 250+ Activities by 12K+ Customers


Allocated Costs (by Bus Line & Cust)

Solution Architecture & Data Flows Design


ETL Processing

Job Automation

Metadata Management

Source Data Layer

EIM Layer

SAP Performance Management Layer

Monthly GL Actuals HR Data

Sales Forecast

$ and Drivers

$, Pipeline Data, HR Data

Cost Allocations, Metadata

Actual, Budget, Forecast

Reporting

Driver Volumes


CRM / SAP Business Planning and Consolidation Integration – Process Steps


Bu

dge

t /

Fore

cast

A

ctu

al

2) Calc Fixed Revenue from

Prior Year Closed

Contracts

1) Import & calc: A) fixed portion of

Renewals, B) Up-sell (Closed & Open*) and C) New logo (Closed &

Open*) Revenue

3) Financial Forecast of Revenue by

Client by Product

SF.com Excel Planning and Consolidation

Input Table

1) Import & calc: A) fixed portion of

Renewals, B) Up-sell (Closed only) and C)

New logo (Closed only) Revenue

4) Variable Revenue by Client = (3 –

sum of 1 & 2) SF.com

Planning and Consolidation Calculation

3) Actual Revenue by

Client by Product

Billing System

*Factored


SAP Business Planning and Consolidation Solution Architecture


Revenue Planning Model Sales & Volume to drive revenue By Customer, Product, Entity and Account line (RevWalk) SalesForce.com integration

Expense Planning Plan Cost blocks such as HW, SW, 3rd Party, Depr., Telco, T&E. Cost Center level detail PCM integration for cost allocation to Business Lines

Labor Plan Salary, Fringe, HC by named employee

Management Reporting Automate reporting for P&L Capture and report on P&L lines by Clients and Products

Long-Range Planning High-level Strategic Scenario Analysis 3 year forward-looking P&L Modeling

Management

Reporting

(P&L)

Revenue Planning

Labor

Expense Planning

(OPEX by GL account)

Long Range

Planning


Solution Successes


• Revenue Planning

Revenue with Backlog / Pipeline / New Business analytics

Set up for next step of Channel-based analytics

• Budget / Forecast Profitability analytics

Business Line Profitability & Customer profitability

Next Phase is Product BY Customer profitability

• Integration of Strategic Plan with Annual Budget

• Ease of reporting – interactive, drillable reporting templates

• Empowered Users

Several team members trained and participated in development of solution

Able to create their own set of reports


Next Steps for Closed Loop Performance Management


• Reporting / Business Objects – Visualization, Mobile, Dashboards

• SAP Business Planning and Consolidation

Extend to Global with Local currency inputs

CapEx Planning

Depreciation/Amortization Calcs

Balance Sheet / Cash Flow statement

• SAP Profitability and Cost Management

Actuals for Channel

Integrate Product BY Customer Profitability


Roadmap to an Integrated Solution with SAP Analytics


Un

ivers

e

Desig

n T

oo

l

SAP Profitability and Cost Management

Detailed Calculations and Allocations

Actual P&L

SAP Business Planning and Consolidation

Budgeting/Planning P&L, Cash Flow Balance Sheet Consolidation

Business Intelligence Universe

Executive Dashboards

Web Intelligence & Live Office

Crystal Reports

Senior Executives

Operations Mgmt

Financial Analysts

Ad hoc Reporting

Business Intelligence Analytics

Enterprise Performance Management

EPM: Planning-Profitability-BI Internal Systems

Operational Systems

PeopleSoft GL

Clarity

Other Time Track Sys

Finance DW

EPM Add-in

• Top-down planning and bottoms-up budgeting by Segment/Market

• Income Statement, Balance Sheet, Cash Flow planning

• Drillable analysis back to line item detail revenue and expense assumptions

• Easy-to-use browser-based BI reporting tools enabling graphs, charts, dashboards and mobile delivery – in addition to Excel

• Best practice data retrieval speed

• Network problems being addressed for global data access and delivery

Value Points

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