- SAP Managed Tags:
Dear all,
Continuous improvement is one of the keys to your business’s success.
SAP Signavio Process Insights, discovery edition is the starting point for process analysis. You can read this blog to know more about this topic, but I would just like to point out that this offering is available free of charge for every SAP maintenance customer.
Discovery edition now displays the value analysis for several performance indicators. In this new “Value Analysis” section, you will start by uncovering concrete value drivers, such as reducing finance cost. You can pick one and drill down to individual indicators of performance impacting this value driver and see the monetary benefits of improving the related performance. The tool shows you the calculations and inputs, including SAP assumptions you can actually modify according to your needs or specific situation.
This capability provides easy and automated value case creation for SAP Signavio. We hope it will assist you in your value-driven discussions & decision making.
Let me show you how it works!
In the example above, let’s click on “Reduce Sales Costs”:
And then on arrow on the right for the related indicator "Sales documents created":
A panel on the right appears:
The top part of this new panel are the "Baseline State" and "Target State":
On the left, for the Baseline State, we see the current automation rate is 7,93%, we can also see when the data for the automation rate was collected and more importantly, the monetary impact. We will come back to it at the end of this blog.
On the right is the Target State, we see the improvement percentage and the target as well as its monetary impact value.
Please note: "Target State" is by default the goal of being among the best 25% performing companies for the related performance. It is possible to change this target state and the assumptions.
The bottom left is the "Input Values and Assumptions" section.
The input values come from your system -such as the "number of sales documents created in a week"-.
The assumptions are generic, like for example “Average time required to create a sales document manually” (minutes).
On the last section on the bottom right, you will see the formula to calculate the potential benefits:
Finally, the Potential Value:
The "Baseline Monetary Impact" is the maximum potential benefit (here the benefits of going from the current 7.93% automation rate to 100% automation rate). The goal is to achieve the baseline monetary impact through process improvements that lower costs, here reducing costly manual effort through increasing automation.
The "Target Monetary Impact" is the benefit of going from the targeted 76.97% automation rate to 100% automation rate.
The difference between the baseline monetary impact and the target monetary impact is the "Potential Value". Or if you prefer the estimated benefits of going from an automation rate of 7.93% to 76.97%. This is this figure we focus on.
Let's see in detail:
Baseline Monetary Impact = 3,000 outbound deliveries created in a week x 48 weeks worked per year x 1-7.93% Sales documents automatically created x 10min x 25EUR = 552.4K EUR / Year
Target Monetary Impact = 111 x 48 1-76.97% x 10min x 25EUR= 138.2K EUR / Year
Potential Value = current potential benefits - target potential benefits = 552.4K Eur – 138.2K = 414.2K Eur
Please note: The progression tab is only available on SAP Signavio Process Insights full edition as SAP Signavio Process Insights, discovery edition is a one-time report.
This capability -part of SAP Signavio Process Insights, discovery edition- is an easy first step to build your case for process transformation. Some assumptions are made by SAP, but you can change them if you feel your specific situation does not qualify for the standard inputs.
You can request SAP Signavio Process Insights, discovery edition for your productive SAP ERP or SAP S/4HANA system on https://url.sap/discovery-edition.
I am very much looking forward to provide you with your analysis very soon!
Kind regards
Rene Cedat
SAP Signavio
Continuous improvement is one of the keys to your business’s success.
SAP Signavio Process Insights, discovery edition is the starting point for process analysis. You can read this blog to know more about this topic, but I would just like to point out that this offering is available free of charge for every SAP maintenance customer.
Discovery edition now displays the value analysis for several performance indicators. In this new “Value Analysis” section, you will start by uncovering concrete value drivers, such as reducing finance cost. You can pick one and drill down to individual indicators of performance impacting this value driver and see the monetary benefits of improving the related performance. The tool shows you the calculations and inputs, including SAP assumptions you can actually modify according to your needs or specific situation.
This capability provides easy and automated value case creation for SAP Signavio. We hope it will assist you in your value-driven discussions & decision making.
Let me show you how it works!
In the example above, let’s click on “Reduce Sales Costs”:
And then on arrow on the right for the related indicator "Sales documents created":
A panel on the right appears:
The top part of this new panel are the "Baseline State" and "Target State":
On the left, for the Baseline State, we see the current automation rate is 7,93%, we can also see when the data for the automation rate was collected and more importantly, the monetary impact. We will come back to it at the end of this blog.
On the right is the Target State, we see the improvement percentage and the target as well as its monetary impact value.
Please note: "Target State" is by default the goal of being among the best 25% performing companies for the related performance. It is possible to change this target state and the assumptions.
The bottom left is the "Input Values and Assumptions" section.
The input values come from your system -such as the "number of sales documents created in a week"-.
The assumptions are generic, like for example “Average time required to create a sales document manually” (minutes).
On the last section on the bottom right, you will see the formula to calculate the potential benefits:
Finally, the Potential Value:
The "Baseline Monetary Impact" is the maximum potential benefit (here the benefits of going from the current 7.93% automation rate to 100% automation rate). The goal is to achieve the baseline monetary impact through process improvements that lower costs, here reducing costly manual effort through increasing automation.
The "Target Monetary Impact" is the benefit of going from the targeted 76.97% automation rate to 100% automation rate.
The difference between the baseline monetary impact and the target monetary impact is the "Potential Value". Or if you prefer the estimated benefits of going from an automation rate of 7.93% to 76.97%. This is this figure we focus on.
Let's see in detail:
Baseline Monetary Impact = 3,000 outbound deliveries created in a week x 48 weeks worked per year x 1-7.93% Sales documents automatically created x 10min x 25EUR = 552.4K EUR / Year
Target Monetary Impact = 111 x 48 1-76.97% x 10min x 25EUR= 138.2K EUR / Year
Potential Value = current potential benefits - target potential benefits = 552.4K Eur – 138.2K = 414.2K Eur
Please note: The progression tab is only available on SAP Signavio Process Insights full edition as SAP Signavio Process Insights, discovery edition is a one-time report.
This capability -part of SAP Signavio Process Insights, discovery edition- is an easy first step to build your case for process transformation. Some assumptions are made by SAP, but you can change them if you feel your specific situation does not qualify for the standard inputs.
You can request SAP Signavio Process Insights, discovery edition for your productive SAP ERP or SAP S/4HANA system on https://url.sap/discovery-edition.
I am very much looking forward to provide you with your analysis very soon!
Kind regards
Rene Cedat
SAP Signavio
