Introduction to SAP CPM

Dr. Marco Sisfontes-Monge CPM and Balanced Scorecard with SAP Bonn Boston Contents at a Glance Foreword ............................................................................ 13 Acknowledgments ............................................................. 15 1 Introduction and Overview ................................................ 17 2 Translating Strategy into Action: The Balanced Scorecard ..................................................... 21 3 Introduction to SAP CPM .................................................. 37 4 The Measure Builder .......................................................... 79 5 Creating Your First Scorecard ............................................ 117 6 The Management Cockpit ................................................. 153 7 The Risk Management Module .......................................... 227 8 Monitoring the KPIs: The Strategy Map and the Value Driver Tree ......................................................... 261 9 SAP CPM Tips and Tricks ................................................... 293 10 Corporate Governance: SAP CPM and Sarbanes-Oxley ..... 363 11 Concluding Remarks .......................................................... 371 A Glossary ............................................................................. 377 B Bibliography ....................................................................... 379 C Author ................................................................................ 381 Index .................................................................................. 383 Contents Foreword ................................................................................................. 13 Acknowledgments .................................................................................... 15 1 Introduction and Overview ................................................ 17 1.1 How this Book is Organized ................................................... 18 1.2 Getting the Most out of this Book ......................................... 18 1.3 Summary ............................................................................... 19 2 Translating Strategy into Action: The Balanced Scorecard 21 2.1 Overview ............................................................................... 21 2.2 History of the Balanced Scorecard .......................................... 21 2.3 The Balanced Scorecard: Conceptual Foundations ................. 23 2.4 The Balanced Scorecard: Components and Structure .............. 24 2.5 The Need for a Balanced Scorecard Process ........................... 26 2.6 SAP BW: Conceptual Foundations ......................................... 27 2.7 Building SAP BW InfoCube Architecture ................................ 29 2.8 SAP CPM: Conceptual Foundations ....................................... 33 2.9 Summary ............................................................................... 35 3 Introduction to SAP CPM ................................................... 37 3.1 The Balanced Scorecard Model using SAP CPM ..................... 38 3.1.1 Managerial Approach ................................................ 38 3.1.2 Systems Approach ..................................................... 40 3.2 SAP CPM Components .......................................................... 41 3.2.1 Strategy Management and Its Components ............... 42 3.2.2 Performance Measurement and its Components ....... 64 3.3 Integration of CPM with other SAP components .................... 72 3.3.1 Integration with SAP BW .......................................... 72 3.3.2 Integration with SAP HR ........................................... 72 3.3.3 Integration with SAP Financials: FI/CO, BPS, and BIC 73 3.4 Drilldown Applications in the Management Cockpit .............. 74 3.5 Summary ............................................................................... 77 4 The Measure Builder .......................................................... 79 4.1 Overview of Measure Builder ................................................ 79 4.1.1 Performance Indicators ............................................. 80 7 Contents 4.1.2 Leading and Lagging Indicators ................................. 80 4.1.3 Balance of Measures ................................................. 81 4.2 The Measure Builder Framework ........................................... 81 4.3 Components of the Measure Builder ...................................... 84 4.4 Creating Your First Measure .................................................. 87 4.5 The Measure Configuration .................................................... 89 4.5.1 Definition Tab ........................................................... 89 4.5.2 URL Tab .................................................................... 93 4.5.3 Data Source Tab ........................................................ 95 4.5.4 Attributes Tab ........................................................... 98 4.5.5 Industry Tab .............................................................. 99 4.5.6 Benchmark Tab ......................................................... 101 4.5.7 Provider Measure Tab ............................................... 103 4.6 Assigning Measures to a Scorecard ........................................ 105 4.7 Risk Catalogs and the Measure Builder .................................. 110 4.8 The SAP Measure Catalog ...................................................... 110 4.9 Summary ............................................................................... 115 5 Creating Your First Scorecard ............................................ 117 5.1 Introduction .......................................................................... 117 5.2 Creating Your First Scorecard ................................................. 118 5.2.1 Creating Strategies and Strategy Categories ............... 118 5.2.2 Creating Perspectives ................................................ 120 5.2.3 Creating Objectives ................................................... 121 5.2.4 Creating Common Objectives .................................... 122 5.2.5 Creating Your Initial Scorecard Hierarchy .................. 123 5.2.6 Creating Measures .................................................... 128 5.2.7 Creating Initiatives .................................................... 131 5.2.8 Creating Value Fields for Navigation Display ............. 134 5.2.9 Putting it All Together ............................................... 136 5.3 Adding Data to Your Scorecard .............................................. 140 5.3.1 Adding Value Fields to your Scorecard ...................... 140 5.3.2 Linking BEx Queries to Value Fields .......................... 142 5.3.3 Configuring the Formula Tab ..................................... 144 5.3.4 Configuring the Graphics Tab .................................... 144 5.4 Lower-Level and Derived Scorecards ..................................... 148 5.5 Summary ............................................................................... 152 8 Contents 6 The Management Cockpit .................................................. 153 6.1 What is the Management Cockpit? ........................................ 153 6.2 Structure of a Cockpit ............................................................ 155 6.3 Creating Your First Management Cockpit ............................... 158 6.3.1 Creating the Cockpit ................................................. 159 6.3.2 Creating Walls .......................................................... 162 6.3.