Dear,
Recently, we finished a Proof of Concept of SAP Performance Management for Financial Services (FS-PER), in a client which implemented Bank Analyzer – AFI some years ago.
SAP has always had strong Cost Management and Accounting functionalities, even in SAP R2, which was the first SAP system I ever put my hands on.
Today, we have SAP Finance and Controlling, Business Planning and Consolidation, and some Cost Management and Accounting Functionalities in Bank Analyzer (Profit Analyzer), so, when I first heard about SAP Performance Management for Financial Services, I thought it should have an overlapping with other SAP Systems.
I was wrong, SAP Performance Management for Financial Services covers an important gap that we had with previous Cost Management systems in Financial Services.
One of the main challenges we have in Banking implementations is the data collection from multiple legacy systems, with different sets of master and transactional data. It’s very difficult to find a Bank which has a Single Source of Truth for Operational data. Usually, Business Partners, Contracts, Products, etc. are stored in multiple systems with a different set of values in every legacy system of the bank.
In SAP Bank Analyzer, we have the Source Data Layer for building a Single Source of Truth of Operational Data, but the Source Data Layer Primary Objects are oriented to the management and storing of “banking” master and transactional data (business partners, financial transactions, business transactions, positions, etc.)
On the other hand, managing “non-banking” data like process-costs, assets-amortization costs, etc. in the Bank Analyzer Source Data Layer, is not that simple.
Actually, these costs and revenues are more easily managed with the Accounting Management modules of SAP-ECC or SAP Business Planning and Consolidation. But, what happens when we want to merge banking and non-banking data in a Cost Analysis model, or the client stores the Cost Management data in a legacy system?
For instance, let’s look at the direct cost that a foreign bank charges to our bank because our clients use the foreign bank ATM machine; this cost is posted as an invoice for a service provided by a vendor. If the foreign bank gives us the list of the ATM-cards using its ATM machine, we should post these costs as a direct cost of every account related to each of the ATM-cards.
With SAP Performance Management for Financial Services, we can easily collect the invoice cost from the Vendor’s Invoice and post it in the Bank Analyzer – Results Data Layer. Once in the Results Data Layer, we can include the ATM-card costs of the foreign bank in the cost and profit analysis of our client’s accounts (Financial Transactions).
In my opinion, this is the main advantage of SAP Performance Management for Financial Services, its capacity of integrating in a cost analysis model, data from different and heterogeneous sources.
SAP Performance Management for Financial Services supports data collection from the Bank Analyzer Source Data Layer, the General Ledger, HANA tables, external data, etc. and write the results in Business Warehouse or Business Planning and Consolidation Infocubes, or, as I mentioned before, in the Bank Analyzer Results Data Layer.
Additionally, SAP Performance Management for Financial Services offers data cleansing capabilities, that we also can find in other SAP systems (BW for instance). The advantage is we can optimize the process of data transformation by having all the elements in the same system.
In terms of Data Transformation and Calculation, SAP Performance Management for Financial Services comes from a very rich library of functions for Costs Settlement, Funding Price Calculation, etc.
Finally, SAP Performance Management for Financial Services comes with two pieces of Business Content; Sample Content for Profitability and Efficiency Management and Business Content on Solvency II. The business content can be used as a template for our own Financial Calculations and Transformations, accelerating the implementation process.
Combining the functionalities of SAP Performance Management for Financial Services with the functionalities of the new Financial Services Data Platform and the high performance computing of HANA, SAP is offering us a powerful business suite for Profit Analysis in complex banking landscapes.
Looking forward to read your opinions.
K. Regards,
Ferran.
www.capitency.com
Join the SAP Banking Group at: https://www.linkedin.com/groups/92860
Visit my SAP Banking Blog at: http://sapbank.blogspot.com/
Let's connect on Twitter: @FerranFrancesGi
Ferran.frances@capitency.com
Recently, we finished a Proof of Concept of SAP Performance Management for Financial Services (FS-PER), in a client which implemented Bank Analyzer – AFI some years ago.
SAP has always had strong Cost Management and Accounting functionalities, even in SAP R2, which was the first SAP system I ever put my hands on.
Today, we have SAP Finance and Controlling, Business Planning and Consolidation, and some Cost Management and Accounting Functionalities in Bank Analyzer (Profit Analyzer), so, when I first heard about SAP Performance Management for Financial Services, I thought it should have an overlapping with other SAP Systems.
I was wrong, SAP Performance Management for Financial Services covers an important gap that we had with previous Cost Management systems in Financial Services.
One of the main challenges we have in Banking implementations is the data collection from multiple legacy systems, with different sets of master and transactional data. It’s very difficult to find a Bank which has a Single Source of Truth for Operational data. Usually, Business Partners, Contracts, Products, etc. are stored in multiple systems with a different set of values in every legacy system of the bank.
In SAP Bank Analyzer, we have the Source Data Layer for building a Single Source of Truth of Operational Data, but the Source Data Layer Primary Objects are oriented to the management and storing of “banking” master and transactional data (business partners, financial transactions, business transactions, positions, etc.)
On the other hand, managing “non-banking” data like process-costs, assets-amortization costs, etc. in the Bank Analyzer Source Data Layer, is not that simple.
Actually, these costs and revenues are more easily managed with the Accounting Management modules of SAP-ECC or SAP Business Planning and Consolidation. But, what happens when we want to merge banking and non-banking data in a Cost Analysis model, or the client stores the Cost Management data in a legacy system?
For instance, let’s look at the direct cost that a foreign bank charges to our bank because our clients use the foreign bank ATM machine; this cost is posted as an invoice for a service provided by a vendor. If the foreign bank gives us the list of the ATM-cards using its ATM machine, we should post these costs as a direct cost of every account related to each of the ATM-cards.
With SAP Performance Management for Financial Services, we can easily collect the invoice cost from the Vendor’s Invoice and post it in the Bank Analyzer – Results Data Layer. Once in the Results Data Layer, we can include the ATM-card costs of the foreign bank in the cost and profit analysis of our client’s accounts (Financial Transactions).
In my opinion, this is the main advantage of SAP Performance Management for Financial Services, its capacity of integrating in a cost analysis model, data from different and heterogeneous sources.
SAP Performance Management for Financial Services supports data collection from the Bank Analyzer Source Data Layer, the General Ledger, HANA tables, external data, etc. and write the results in Business Warehouse or Business Planning and Consolidation Infocubes, or, as I mentioned before, in the Bank Analyzer Results Data Layer.
Additionally, SAP Performance Management for Financial Services offers data cleansing capabilities, that we also can find in other SAP systems (BW for instance). The advantage is we can optimize the process of data transformation by having all the elements in the same system.
In terms of Data Transformation and Calculation, SAP Performance Management for Financial Services comes from a very rich library of functions for Costs Settlement, Funding Price Calculation, etc.
Finally, SAP Performance Management for Financial Services comes with two pieces of Business Content; Sample Content for Profitability and Efficiency Management and Business Content on Solvency II. The business content can be used as a template for our own Financial Calculations and Transformations, accelerating the implementation process.
Combining the functionalities of SAP Performance Management for Financial Services with the functionalities of the new Financial Services Data Platform and the high performance computing of HANA, SAP is offering us a powerful business suite for Profit Analysis in complex banking landscapes.
Looking forward to read your opinions.
K. Regards,
Ferran.
www.capitency.com
Join the SAP Banking Group at: https://www.linkedin.com/groups/92860
Visit my SAP Banking Blog at: http://sapbank.blogspot.com/
Let's connect on Twitter: @FerranFrancesGi
Ferran.frances@capitency.com
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