Introduction
The SAP Strategic Enterprise Management (SEM) product provides integrated software with comprehensive functionality that allows a company to significantly streamline the entire strategic management process. The SAP SEM product can be installed independently of a SAP ERP system as it does not require a direct link to the ERP software.
The SAP SEM product can be used at the company headquarters, at business unit level, for regional organizational units, for product lines or other organizational units with their own strategic planning processes. It is possible to have one centralized SAP SEM System or several SAP SEM Systems linked together.
SAP SEM Basics
The SAP SEM product is an analytical application that uses the SAP business information warehouse. It is structured into five components; Business Planning and Simulation (BPS), Corporate Performance Monitor (CPM), Stakeholder Relationship Management (SRM), Business Consolidation (BCS), and Business Information Collection (BIC).
Business Planning and Simulation (BPS)
For strategic planning and specific operational problems, BPS provides facilities for dynamic simulations based on special tools and functions. Therefore it is possible to model and simulate the complex, non-linear relationships between markets, competitors, and a company's own enterprise. BPS integrates different planning levels and lets you build an integrated planning model from the strategic level to the resource allocation level.
BPS enables close planning integration with ERP systems. It is possible to transfer data from ERP to SAP SEM and use it for the SEM planning process. The reverse is also possible. It is possible to transfer planning results from BPS back to ERP systems. BPS supports common corporate planning strategies. You can also combine different planning strategies with each other. Planning strategies include top-down planning, bottom-up planning, mixed top-down/bottom-up planning, decentralized or distributed planning, and rolling forecast
Corporate Performance Monitor (CPM)
In the area of performance management, SEM offers reporting in the area of Key Performance Indicators (KPI). The CPM includes the Balanced Scorecard management methodology for communicating strategy and converting it into operational targets for all levels of the enterprise.
The CPM also contains the software component of the Management Cockpit. The aim with the Management Cockpit is to improve the communication of decision relevant information within the management team, to support decision-making, and to make management meetings more productive. CPM contains a function that lets you set up a reporting system in the style of a newspaper. You can create specially designed layouts with texts, graphics and tabular displays for the various receiver groups and information requirements. The CPM then supplies these layouts with current information during execution.
Business Consolidation (BCS)
The BCS component provides complete functionality for the legally required consolidation by company. It also allows management consolidations to be performed based on user-defined organizational units. BCS allows consolidation simulations, for example, to determine the effects of mergers and acquisitions, or different currency translation methods.
Business Information Collection (BIC)
BIC provides the infrastructure for SAP SEM's data collection. BIC automates the collection of data, for example, key figures from the ERP system, and supports the collection of financial figures from subsidiaries in a structured way. BIC uses the generic functionality of the SAP Business Information Warehouse to collect structured data. With this type of data it is straightforward to automate its collection and further processing.
Stakeholder Relationship Management (SRM)
Stakeholders are an important part of the success of any enterprise. There are a number of groups of stakeholders that should be considered such as investors, customers, employees, partners, and suppliers. SRM provides support for communicating enterprise strategy, plan data, and strategic initiatives to the different stakeholder groups. The SRM functionality can place investor relations queries in a workflow process and have them dealt with semi-automatically. SRM manages a stakeholder database to support the communication functions.
Summary
Strategic Enterprise Management (SAP SEM) enables you to structure your strategy, communicate your goals throughout the entire organization, collect information from external and internal sources, consolidate actuals, monitor the performance of strategic key success factors, and communicate your strategy to major stakeholders.
