Bringing Best Practices in Performance

Management to T-Mobile

SAP 2008 / SAPPHIRE / OR3276> Page 1

 Agenda

Background and Challenges

Assessment and Roadmap

Driver Based Planning

Selecting BPC

F1 - Implementing BPC

Benefits

What is Next?

SAP 2008 / SAPPHIRE / OR3276> Page 2

 T-Mobile USA

A national provider of wireless voice, messaging, and data

services capable of reaching over 268 million Americans
where they live, work, and play
Total Customers: 28.7 Million*
Revenue: $19 Billion*
Cell Sites: 37,900*
Headquarters: Bellevue, Washington
Number of Employees: 36,000
Deutsche Telekom AG (NYSE: DT)
* 3/4/08 Press Release - 2007 Year-end results
SAP 2008 / SAPPHIRE / OR3276> Page 3
December 2006 Initial Assessment

SAP 2008 / SAPPHIRE / OR3276> Page 4

 Summary of Initial Assessment
Maturity Challenges
Heavy reliance on MS
Organization
Excel
Lack of consistent driver
Process
definitions / planning
Most reports being
Tools manually generated in
MS Excel

Reporting Very limited drilldown

Multiple versions of the
Emerging Defined Leading
same number
Developing Advanced
SAP 2008 / SAPPHIRE / OR3276> Page 5
T-Mobiles legacy planning environment

SAP Enterprise-wide
SEM BPS (Budget) (Forecast) Forecast
(FP&A)

Business Area
Forecasts
(~10 spreadsheets)

Program Level
Forecasts
(~100 spreadsheets)

Detailed Forecast
Related Analysis
(~500 spreadsheets)

SAP 2008 / SAPPHIRE / OR3276> Page 6

Planning Transformation Roadmap

Sixteen Month Timeline

Technology Selection
Define Business Drivers

Op-Ex Budget / Forecast

Op-Ex Plan
Push Down

Cap-Ex BPF

Rolling
Forecast

Report Development

SAP 2008 / SAPPHIRE / OR3276> Page 7

 Driver Based Planning Concept

Budget / Plan / Forecast Input Reporting and Variance Analysis

Forecast Actuals
Calculated Actuals Volume
Volume
X = Expense Expense = X
Forecast Calculated
Rate Rate

SAP 2008 / SAPPHIRE / OR3276> Page 8

 Defining Business Drivers with Regression

Good Fit Poor Fit

MOUs Bad Debt

Customers Service Plan Revenue

SAP 2008 / SAPPHIRE / OR3276> Page 9

Driver Based Planning Model

SAP 2008 / SAPPHIRE / OR3276> Page 10

Nearly 80% of Expenses Planned
by Drivers

Headcount Direct Input

Driven / Trend
18% 21%

Operationally Driven
61%

(Based on January 2007 Forecast)

SAP 2008 / SAPPHIRE / OR3276> Page 11

 Technology Selection

The Original Finance and Best of Breed v. IT and Standardization

Challenge

The Solution OutlookSoft + SAP = BPC

Cross function team review

The Due
Functionality review
Diligence
Cost comparison and negotiations
SAP 2008 / SAPPHIRE / OR3276> Page 12
 F1 First Phase Project Overview

OPEX Monthly Forecast

Scope
Driver-based Scenario Analysis

Rate and Non-driver Forecast from Business Areas

Approach Centrally Planned Major Drivers
Account and Cost Center Level

Team Joint T-Mobile, Deloitte Consulting, and SAP

SAP 2008 / SAPPHIRE / OR3276> Page 13

Basic Architecture, Complex Calculations

Over 30 custom
templates
Hundreds of
driver * rate
calculations in
script logic
Multiple
hierarchies
Driver, rate, and
top-line scenarios
Under a minute to
calculate
SAP 2008 / SAPPHIRE / OR3276> Page 14
Design with SAP Road Map in Mind

BPC Data Integration Environment

Business User

Budget Forecast
WD7 SAP BW 3.5 or
SAP
FP&A SAP/BPC Planning
Plan NetWeaver BI
2004s
Query
Sequel Server Essbase
A/BPF Cube
Actuals and
Master Data:

Actuals fed every

two hours during
WD3 and

close; daily
otherwise
WD5

Twice a
Up month
lo
Budget / Forecast a d
/ Plan data at
Account Cost SAP R/3
Center Level
Actuals, Budget,
Plan, and
Forecast Versions

SAP 2008 / SAPPHIRE / OR3276> Page 15

 Benefits

Common financial language used by finance,

accounting and business areas
Alignment
Standardized reporting

Automated forecast to actuals reporting with drilldown

Automation Ad hoc reporting enabled
Accelerated forecasting process

Automated variance analysis of level one drivers

Driver-Based Dialogue now focused on driver / rate performance
Increased visibility to operational performance
SAP 2008 / SAPPHIRE / OR3276> Page 16
 What Weve Learned About BPC . . . So far

Able to handle complexity

Reporting is more challenging than expected

Ad hoc analysis is great

Users are able to learn it fast

SAP 2008 / SAPPHIRE / OR3276> Page 17

 Keys to Success

Executive Commitment

Business Led

Strong IT Partnership

Core Data Available

Sufficient Time Proving Budget and Forecast Models

Top BPC Architect

SAP 2008 / SAPPHIRE / OR3276> Page 18

 Looking Ahead

Budget and Plan

CAPEX

Long-Range Planning

SAP NetWeaver BI: Migration/Upgrade

Broader CPM Capabilities

SAP 2008 / SAPPHIRE / OR3276> Page 19

Access SAPPHIRE 08
Orlando Online
Watch video recordings, download audio files
in MP3 format, and view the slides from
all keynotes and presentation sessions.

www.sap.com/us/sapphire