“You can’t cross the sea merely by standing and staring at the water.” – Rabindranath Tagore
It is imperative that organizations align budgeting / planning / forecasting with the corporate strategy. Without being tied to a larger strategy, a plan or budget is simply an exercise in matching numbers.
SAP Strategy Management is a tool in the SAP EPM suite that can be used to define, capture and measure your corporate strategy. Utilizing SAP technology, high-level strategic plans can be cascaded down the organization to define goals at every granularity of the corporation.
“What is measured, improves” – Peter Drucker
By compiling the corporate strategy in to a set of measurable objects, for which each entity with the organization has a measurable goal, SAP SCM enables the company to validate progress towards those goals and quickly align resources to address necessary changes. Goal at all levels drives accountability and collaboration.
Beyond publishing and providing measurement tools for the corporate strategy, SCM can also be integrated with SAP Business Planning and Consolidation (BPC) to pull the strategic details form SCM into BPC for inclusion in financial budget and forecasts.
SAP Strategy Management allows users to:
- Define a corporate strategy and the KPI’s used to measure them
- Visually represent and communicate strategy through strategy maps
- Indicate status through dynamic status indicators
- Facilitates communication of the strategic plan
- Drives understanding of the cause and effect relationships between objectives
- Helps focus on individual themes (sub-components) within the strategy
- Allows for rapid navigation to more detailed views