Accenture Advanced Enterprise

Performance Management
Solution for SAP
Helping oil and gas companies exploit todays insight
and fuel tomorrows high performance
Todays global energy market forces are
dictating that companies in the oil and
gas industry cut through operational
complexity to act and grow with greater
speed, efficiency and accuracy.
The down economy coupled with in-
creasing demand for oil and gas equate
to significant price volatility that is hard
to monitor. More oil exploration and
production projects could be delayed as
companies respond to a lack of avail-
able capital, higher financing costs (such
as rig rates, construction and material
costs) and fears of a lower return on in-
vestment from lower oil prices. Bringing
additional pressures is more stringent
environmental and emissions legislation,
from lowering sulfur fuels and phasing
out methyl tertiary butyl ether to boost-
ing requirements for renewable fuel use.
Then, geophysical occurrencessuch as
earthquakes and faulting, permafrost
and frozen ground phenomena, flood-
ing, ice, current and sediment hazards
potentially threaten business success on
a daily basis.
Navigating the challenges in ways that
drive high performance means having
the ability to extract and interpret key
sales, investment, compliance, drilling
and development or other operational
insight to shape your business strategy,
closely monitor and adjust the levers of
value and better adapt to market condi-
tions and opportunities. At Accenture,
obtaining this ability is called enterprise
performance management (EPM).
1 The Changing Role of the Finance Organization in
a Multi-Polar World: Accenture High Performance
Finance Study 2008, Accenture 2008, available
at: http://www.accenture.com/Global/Research_
and_Insights/By_Subject/Finance_Mgmt/Finance_
Operations/TheChangRole2008.htm
In the recent Accenture
High Performance
Finance Study
1
, those
companies that described
their EPM capabilities as
advancedencompassing
enterprise-wide value-
driving initiatives and
standardizationwere
much more satisfied than
others (38 percent vs. 6
percent respectively) with
the contribution of finance
to overall performance and
a number of key drivers of
high performance.
Insight to turn nance
into a key contributor of
high performance
Oil and gas companies can best meet
market pressures by adopting an "ad-
vanced" EPM approachwider in scope
than is common. Advanced EPM includes
governance, risk and compliance for a
holistic view on enterprise performance,
business intelligence for thorough analyt-
ics and enterprise information manage-
ment for data integration. By adopting
such an approach, enterprises can be
more proactive in turning their finance
organizations into a value creator
ensuring that the business possesses the
understanding, strategies, capabilities and
information to compete globally while
controlling and containing costs.
The benefit potential is significant in
driving competitive advantage, increased
profitability, and market dominance (see
Figure 1) through:
2
Better execution of strategies, allowing
optimal resource allocation and
maximizing sustained shareholder
value.
Translation of strategic goals into
tactical execution.
Enhanced monitoring of strategy
execution across the organizational
dimensions.
More insightful, faster decision
making.
Optimized business performance across
a single enterprise or business network.
Greater connection between the
nance and IT departments, including
shared business goals and strategies.
Yet, many oil and gas companies have
Insight-
driven
value
Operational
More lean manufacturing
targets
Better profit margin
management
Increased speed
to market
Financial
Lower operating
costs
Better management
of R&D spending
Increased product
profitability
Reduced capital
expenditure cost
Performance
Right tools and information to make decisions in a timely manner
Knowledge of where to focus scarce resources
Reliable plan more focused on strategy
Avoiding complex budget planning
struggled to achieve such benefits
through comprehensive enterprise
insight. Large amounts of data and
poor data quality coupled with limited
integration across multiple data sources
often cause indecision, decision delays or
missed opportunities to link performance
measures to shareholder value.
Energy companies that run on SAP have
a significant opportunity to turn this
situation around. EPM process and tech-
nology innovation now bring together
strategic, business intelligence, opera-
tional and financial planning, consolida-
tion, and control processes throughout
the mainstream enterprise and synchro-
nizes them with the right metrics, report-
ing and analytics. SAP-based information
and systems can now be integrated to
such a degree that it is finally possible to
obtain an accurate, comprehensive and
consolidated view of an organizations
health and potential.
We created the Accenture Advanced En-
terprise Performance Management Solu-
tion for SAP specifically for organizations
that manage their finance operations on
SAP, with a view to fully incorporating
value-added EPM insight throughout
operations to better manage the business
and outpace the market.
Figure 1. Sample impact of advanced EPM in oil and gas.
2 Enterprise Performance Management: Transforming
nance in the journey to value-based management,
Accenture 2006, available at: http://www.
accenture.com/Global/Consulting/Finance_Mgmt/
Enterprise_Performance_Mgmt/R_and_I/
EnterpriseValueBasedManagement.htm
A proven approach for
creating distinctive EPM
capabilities
The Accenture Advanced Enterprise Per-
formance Management Solution for SAP
is a financial and commercial planning
and analysis solution that helps organi-
zations take advantage of the integra-
tion of SAP technology excellence in
business intelligence, financial planning,
compliance and controls to gain a con-
sistent, coherent view of enterprise-wide
performance. It is works in conjunction
with the Accenture Advanced Enterprise
Solution for Energy, helping oil and
gas companies maximize the strategic
potential of enterprise systems and ac-
celerate enterprise-wide business value
for lasting competitive advantage.
The Advanced Enterprise Performance
Management Solution enables finance
departments to more easily access and
deliver the accurate and actionable
information their organizations need to
formulate strategic plans, make the right
decisions about markets, products and
promotions, and report to stakeholders
in a timely manner. By combining our
unique insight and experience in enter-
prise performance, finance and func-
tional processes with market-leading
system integration skills, Accenture has
formulated a holistic, results-driven ap-
proach to tap the full benefit of EPM.
Key solution features:
Accenture Enterprise Performance
Management Framework, a holistic,
phased and results-driven approach
to fully integrating EPM functional
processes and tools (see Figure 2). The
patent-pending framework illustrates the
components that must incorporate key
performance metrics into core manage-
ment processes as well as supporting
tools, leadership behavior and culture.
Firmly grounded in driving total return to
shareholders, the framework consistently
defines and models the key drivers of
both current and future value and helps
translate performance-oriented strate-
gies into tangible actions.
Comprehensive core set of tools with
flexibility to customize to company spe-
cific requirements and processes. These
include: value and portfolio analysis
tools; planning, budgeting and forecast-
ing methods; and reporting and analytic
methods.
Figure 2. Accenture Enterprise Performance Management Framework (patent pending).
Incentives and Rewards Standardized Processes
Integrated IT Architecture
Leadership and Capability Data Structures and Controls
Enablers
Monitor
Operate
Business Strategy
Target Setting
Integration of Information and Management Processes Enablers (People, Process and Technology)
Determine Key
Measures of Success
Assess Portfolio Value
Set Targets for Key
Measures of
Accountability
Cascade Targets to
Lower Level Metrics/
Organization
Determine Key Value
Drivers
Refine Corporate
Vision and Strategic
Objectives
Develop Plans to
Achieve Targets
Allocate Resources
(all categories) to
Achieve Plans
Review, Challenge and
Finalize Plans and
Forecasts
Develop Action Plans,
Re-allocate Resources
and Update Forecast
Review Performance
with Executive
Management
Monitor Key
Measures of Business
Performance
Performance-enabling technology
from SAP, taking full advantage of
the recent and ongoing integration of
the SAP BusinessObjects portfolio that
supports core EPM functions. Each
component of the framework is enabled
by SAP software, a key in integrat-
ing vital data dimensions, which helps
clients to tap into more business insight
for compliance, financial planning and
growth. From our extensive work with
enterprise systems and SAP, Accenture
understands how SAPs applications that
enable EPM have evolved and con-
tinue to evolve to be a viable tool that
encompasses enterprise-wide initia-
tives and standardization to help drive
broad business valueboth nancial and
non-nancial, tangible and intangible.
The Accenture Enterprise Performance Management
Framework is enabled by SAPs EPM applications to increase
enterprise insight, accuracy, flexibility and speed.
Our EPM approach aligns with the Ac-
centure Advanced Enterprise Solu-
tion, a preconfigured SAP solution that
uses best practices, building blocks and
implementation accelerators supported
by SAP to provide flexible, predictable,
high-quality implementations. Across a
number of initiatives, our Accenture Ad-
vanced Enterprise Solution has reduced
implementation time by as much as 50
percent for a variety of companies. Ac-
centure developed this solution for the
chemicals, metals and mining indus-
tries, and is currently adapting it to the
energy industry.
Accenture serves as a trusted and capa-
ble guide to help organizations plan for
and execute the kind of change required
to incorporate the benefits of advanced
EPM processes into their business and
maximize the returns on their SAP in-
vestment. Our clients rely on our marked
ability to link our deep understanding
of business processes with our systems
integration experience to enable those
processes with packaged solutions.
High performance
achieved through
advanced EPM
By implementing advanced EPM on
the SAP platform, Accenture helps
clients optimize their investments and
achieve their long-term visions in a
more focused way. Along with a more
seamless operation, thanks to a single
SAP environment, clients gain a com-
mon view of the truth with innovative
business analysis capabilities for faster
closing times, lower operating costs and
increased revenue.
For example, Shell Exploration and
Production Co. (Shell EP) teamed with
Accenture to harmonize, standardize and
integrate its key processes and systems
onto a single SAP-based IT platform
with a hefty business intelligence com-
ponent. The solution is enabling Shell EP
to increase operational performance and
efficiency through the sharing of best
practices, standardization of business
processes and greater transparency and
comparability of information across
the organization. It supports Shell EP in
achieving its current priorities, including
resource base growth, effective project
delivery, operational excellence and a
competitive cost structure.
Drawing on our deep industry experience,
understanding of business processes
and the exceptional breadth of talent
and capability across our organiza-
tion, Accenture can determine from
the insight gained through EPM which
functions to address first in driving high
performancewhether strategy, finance,
business intelligence, customer relation-
ship management, supply chain, human
resources or marketing.
Accenture also incorporates EPM-based
insight and capability into our energy
industry solutions.
Accenture Advanced
Enterprise Solution for
Energy
The Accenture Advanced Enterprise
Solution for Energy links industry-leading
processes into a preconfigured enterprise
resource planning (ERP) solution tailored
to the energy industry.
Our solution is built on the latest tech-
nology and is packaged with complete
process documentation and tools,
methods and templates as well as live
systems specifically designed to speed up
implementation. It can help to overcome
the challenges of off-the-shelf enterprise
systems that may not adequately reflect
unique energy sector processes. Accen-
tures preconfigured solution is:
Built on the latest SAP technology.
Based on industry-leading business
processes.
Equipped with industry-specic
documentation to speed up
implementation
Capable of providing upstream, gas and
downstream specic approaches.
Our ERP capabilities enable faster, bet-
ter-informed decisions that help energy
companies achieve high performance.
Accenture and SAP have a strong history of partnering,
and working together, we have developed deep domain
knowledge and skills for the benefit of our customers.
SAP now has a fully configured portfolio for enterprise
performance management, including strategy, forecasting,
reporting and analytics, that works seamlessly with
our Intelligence Platform and Business Suite to enable
customers to close the loop between strategy and
execution. Together with our trusted partner Accenture,
we can deliver high return on investment and rapid time
to market for customers.
John Schwarz
Former CEO, SAP BusinessObjects solution portfolio, and
member, SAP Executive Board
Accenture Plant and
Automation Solutions
Accenture Plant and Automation Solu-
tions is a series of solutions and assets
in which EPM is applied. For example,
we understand that energy businesses
need close to real time data that they
can trust. That is why we developed an
integrated Production Optimization solu-
tion, as part of the Accenture Plant and
Automation Solutions, to monitor and
improve energy operations. With this
SAP Business Objects-based solution,
data is transferred in very high frequen-
cies on a minute by minute basis giving
management better transparency and
analysis functionality of their operations.
Key solution features include an opera-
tions performance management system,
insightful dashboards, online access to
data, ad-hoc and deep dive data analysis
and online reporting. The ability to con-
nect to other data types and applications
offers a balanced view on operations
and makes it easier for management to
better understand and act faster on the
developments inside their organizations.
Accenture has gathered all its experi-
ences about production optimization and
EPM, along with other industry leading
practices, in its Accenture Plant and Au-
tomation Solutions to develop the most
suitable solutions for our energy clients.
Backed by the power of
Accenture and SAP
The Accenture-SAP alliance is unlike any
other. It is rooted a long-time strategic
relationship with executive-level com-
mitment, complementary strategies and
talent, and joint developments.
SAP brings great performance-enabling
technology products while Accenture
brings a thorough technological under-
standing of the SAP business user suite,
honed from 30 years of SAP experience.
The combination helps clients to uncover
the hidden benefits of an integrated SAP
technology platform and tap into more
business insight for compliance, financial
planning, and growth. In fact, Accenture is
SAPs primary ally in implementing and in-
tegrating its enterprise resource planning
central component, business intelligence,
and master data management software
which are critical enablers of EPM.
Accenture works with many of the world's
leading energy companies to help them
achieve high performance. Surrounding
the advanced EPM solutions we deliver
to our clients are outstanding Accenture
resources and skills, among them:
Decades of industry experience,
working with more than 150 energy
clients worldwide and with 97 percent
of the Fortune Global 500 energy
companies.
More than 16,000 people within
the Accenture EPM group with deep
technology skills, functional experience
and industry knowledgeincluding
more than 7,000 SAP-skilled
practitioners, more than 2,300 SAP
Business Intelligence resources and
more than 1,000 SAP BusinessObjects-
trained professionals.
Accenture Delivery Suite for SAP with
proven delivery methodologies and
tools for cost-effective delivery.
Accenture Global Delivery Network that
offers 24/7 access to skills in more than
50 delivery centers at carefully chosen
locations across the globe.

Getting started
From our experience as a global leader
in systems integration, Accenture takes
an industrialized approach to EPM on
the SAP platform that combines leverag-
ing solution methodologies and assets
and tailoring them to your organizations
precise business needs. We work with our
clients to help them assess their existing
enterprise performance capabilities, plot
a vision for where they want to go and
guide them, step by step, like no other in
leveraging SAP technology to enable the
processes that deliver the transformation
to achieve high performance.

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All rights reserved.
Accenture, its logo and
High Performance Delivered
are trademarks of Accenture.

SAP is a trademark of SAP AG,
Germany
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company. Combining unpar-
alleled experience, comprehensive capa-
bilities across all industries and business
functions, and extensive research on the
worlds most successful companies,
Accenture collaborates with clients to
help them become high-performance
businesses and governments. With
approximately 176,000 people serv-
ing clients in more than 120 countries,
the company generated net revenues
of US$21.58 billion for the fiscal year
ended Aug. 31, 2009. Its home page is
www.accenture.com.
About SAP
SAP is the worlds leading provider of
business software*, offering applications
and services that enable companies of all
sizes and in more than 25 industries to
become best-run businesses. With ap-
proximately 76,000 customers (includes
customers form the acquisition of Busi-
ness Objects) in over 120 countries, the
company is listed on several exchanges,
including the Frankfurt stock exchange
and NYSE, under the symbol SAP. (For
more information, visit www.sap.com)
*SAP defines business software as com-
prising enterprise resource planning and
related applications
Contact Us
For more information or to sign up for
a workshop on how Accenture can help
you define your organizations approach
to enterprise performance management
leveraging your SAP environment, send
an e-mail to energy.erp@accenture.com.