Delivering Real-Time Business Value for Defense and Security

July 2013
Delivering Real-Time Business Value for
Defense and Security
SAP Business Suite Powered by SAP HANA
Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The empowered war-fighter is driving new
priorities in defense and security
 Increase mission effectiveness
 Increase cost visibility
 Achieve managed readiness targets
 Develop and care for service members
 Increase energy efficiency
 Avoid deviations from program cost and schedule baseline
Ensure effective operations of
sustainable defense teams
 Establish the combat-readiness of
service members in operations using
force generation and deployment
remotely
Utilize available forces and
resources the most effective
way possible
 Define and generate organizational
measures and support supply chain
and MILSTRIP purchasing
The empowered
war-fighter
Increase flexibility in planning
deployment and support of
operations
 Define force-element characteristics
and generation of command and
control relationships to support
interoperability

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Military Planning and Operations
Force Generation
Force Deployment
Interoperability and Information Sharing
People and
Talent
Core Human Resources
and Payroll
Talent Management
Workforce Planning
and Analytics
Budget and
Finance
Public Sector Budget
Planning
Public Sector Financials
Treasury and Financial
Risk Management
Enterprise Risk and
Compliance Management
Real Estate Lifecycle
Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Collaborative Invoice
to Pay
Regulated and
Complex Procurement
Defense Milstrip Purchasing
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management IT Strategy and Governance
Maintenance and Engineering
Defense Maintenance, Repair and Overhaul
Maintenance in Operations and Exercises
Enterprise Asset Management
Military Supply Chain
Defense Replenishment and Planning
(Defense) Equipment Management
Logistics and Order Fulfillment
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Industry value map – defense and security
Sustaining responsive, effective, mission-capable,
and integrated defense forces

Industry value map – defense and security
Sustaining responsive, effective, mission-capable,
and integrated defense forces
Military Planning and Operations
Force Generation
Force Deployment
Interoperability and Information Sharing
People and
Talent
Core Human Resources
and Payroll
Talent Management
Workforce Planning
and Analytics
Budget and
Finance
Public Sector Budget
Planning
Public Sector Financials
Treasury and Financial
Risk Management
Enterprise Risk and
Compliance Management
Real Estate Lifecycle
Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Collaborative Invoice
to Pay
Regulated and
Complex Procurement
Defense Milstrip Purchasing
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management IT Strategy and Governance
Maintenance and Engineering
Defense Maintenance, Repair and Overhaul
Maintenance in Operations and Exercises
Enterprise Asset Management
Military Supply Chain
Defense Replenishment and Planning
(Defense) Equipment Management
Logistics and Order Fulfillment
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Highest real-time
business value
for defense
3
4
5
1
2

Public sector financials
Optimized public sector financials (budget execution)
Enhance
insights and
accuracy
Reduce
Minimize
month- and year-
end closing time
operating costs
Current Situation
 Lack of easy access to real-time reporting and analysis – difficult control of financial
and budget figures
 Long-running period- and year-end processes with multiple steps to complete
 Laborious and time-consuming processes while obtaining a current understanding of
financial and budget figures
Key Innovations
 Deeper and faster insight down to the lowest level of detail
 Accelerated monitoring of year-end-closing with faster carry-forward
 Accelerated budgetary accounting operations, like account assignment changes and
reconciliation
Business Process Transformation
 Understanding revenue and expenditure streams instantly
 Real-time, end-to-end budget and financial close
 Efficient management of organizational changes
Related to
 Budget maintenance
 Execution of funds
 Budget and financial closing
and reporting (Budget execution)

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Regulated and complex procurement
Business value for strategic purchase optimization
 Lack of clarity about which sources of
supply should be negotiated and
used
 Long cycle time to secure new
sources and significant overhead to
manage suppliers
 Real-time access to high volumes of
purchasing data
 Fast and complete search across all
related business documents
Increase
process efficiency
Optimize
working capital
 Lack of visibility into organization-
wide demand
 High volume of maverick buying
 Need for greater efficiencies and
savings from purchasing
 Real-time calculation of savings and
simulations
 Visibility into supplier relationships,
performance, spend, and savings in
place to reduce supply risk and
missed savings opportunities
With SAP Business Suite
on SAP HANA

Today
Defense replenishment and planning
Business value for real-time inventory management
 No real-time insight into inventory
situation might cause inaccurate
reordering, ultimately resulting in
higher levels of stock
 Time-consuming inventory
management reporting
 Need for accurate display of actual
stock to react quickly to stock
shortfalls
 Inability to track material movements
completely
 Real-time stock insight and inventory
monitoring with high performance to
support demand-driven procurement
 New analytical inventory
management cockpit
 Real-time access to complex
inventory management data
 High-performance inventory
management with large volumes of
documents
 Real-time stock insight and inventory
monitoring
 Higher process efficiency in adjacent
procurement processes (like
purchase order or invoicing
processing)
Reduce
inventory levels
Minimize
Optimize
out of stocks
working capital
on SAP HANA

Today
Logistics and order fulfillment
Business value for insight-driven supply chain planning
 Lack of near-real-time information
 No ad hoc operational reporting
 Time-consuming data loads in
traditional reporting tools
 Need to create reporting, queries,
and dashboards by each customer
individually
 Inability to run subdaily planning jobs
and analyze the results because of
long data-preparation times in the
data warehouse that prevent a fast
response to ad hoc queries from
customers – which may result in
lost sales
 Decision-support based on near-real-
time information
 Standard analytical reporting possible
with streamlined data load
 Advanced data-retrieval and
computing capabilities of
SAP HANA used to optimize the
reporting of data in supply chain
planning
Reduce
supply chain costs
Optimize
Increase
inventory levels
customer service
level
on SAP HANA

Today
Defense maintenance, repair, and overhaul
Business value for maximized asset utilization and uptime
 Maintenance scheduling consumes a
great deal of time
 Manual and error-prone process of
preselection of maintenance plans
 Possibility of missing needed objects
for maintenance calls
 High number of maintenance plans
that need to be scheduled frequently
 Accelerated mass transactions
 Instant analysis on top of
transactions
 Preselection of plans due speeds the
process significantly
 Real-time analytics on all data,
including machine-sensor information
 Scheduling of all maintenance plans
within a specific timeframe
 Planning several times a day (instead
of once a week) for up-to-date
scheduling information in
maintenance operations
 Faster response times for more
accurate maintenance scheduling
Increase
asset utilization
and reduce
unplanned asset
downtime
Maximize
Use
asset uptime
up-to-date scheduling
information on
maintenance
operations
on SAP HANA

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As starting point, we recommend a performance
and usage analysis of your current system.

Customer case: Defense and security organizations
Summary of validated scenarios
Feasibility
Businessvalue
Legend
LowHigh
Low High
SAP Business
Suite on
SAP HANA
SAP HANA
Applications
SAP HANA
Platform
Financial
expenditure
reporting
Operational
reporting for
public sector
financials
Maintenance
optimization
Material
requirements
planning
Phase – deployment road map
SAP HANA Platform: customer-specific
SAP HANA products: SAP NetWeaver BW on
SAP HANA, high-performance applications (HPAs),
apps powered by SAP HANA
SAP Business Suite on SAP HANA
Scenario
(business value)
1 Short term
Financial expenditure reporting
Maintenance optimization
Material requirements planning
2 In evaluation
Operational reporting for public sector financials
3 In evaluation
Other functions – tbd in future discovery
workshops
SAP HANA use cases mapped to
industry value map end-to-end solutions

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
Financial operational reporting for public sector financials
Defense and security
Business context and goals
 Use case: Financial operational reporting for public sector financials
 Business value:
1. Effective financials operational reporting – especially at end of fiscal year and quarter when
near-real-time decisions are being made based on the question of what money needs to
be obligated
2. Reduced wait time for reports
3. Effective and efficient financial-close process
Business challenges
 Impact on an ability to perform financial analysis
 Reports that time-out and cause operational inflexibility and delays
 Inability to complete expenditures at end of quarter or year because the status of funds and
obligations not visible
Contribution of SAP HANA
 Military agencies have seen the potential for improved reporting that may become available to
other departments that have similar needs. Any government organization needs a clear view of
the status of funds – especially near the end of fiscal quarters and years, when heavy
transaction loads prevail.
Value drivers/KPIs
 Time to run financial reports
 Service-level performance
 Period-end closing times
 Budget cycle time
Innovation scope
SAP HANA Platform (customer-specific)
End-to-end (E2E) solution
Defense and security – SAP HANA Platform
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
Material requirements planning (MRP)
Defense and security
Business context and goals
 This arm of the military has a requirement to conduct MRP within its SAP software environment
Business challenges
 During early 2012 while this program was undergoing its prefielding planning, the government
program office identified MRP scalability as one of the program’s major risks. SAP escalated this
issue to Bill McDermott at the request of the customer. SAP successfully identified several policy
and implementation areas that needed to be addressed by the government and the system
integrator.
 In regard to MRP scalability, SAP believes that the customer has data-setup and data-integrity
issues and an inability to run relevant reports and perform analysis. Both are likely to be bottlenecks
to scaling up the solution to an estimated 160,000 users from the current user base of 3,000.
Contribution of SAP HANA
 SAP HANA would help the MRP run ingest and process the anticipated volume of data
Value drivers/KPIs
 Supply chain cost
 Bill of material management
 Supply chain readiness
 Inventory levels
Innovation scope
SAP Business Suite on SAP HANA
(now and in the future)
End-to-end (E2E) solution
Defense and security – defense replenishment
and planning
Value potential 5
Feasibility 4
Low High
1 5
Low High
1 5

Delivering Real-Time Business Value for Defense and Security

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