SAP PaPM, i.e. Profitability and Performance Management, is a modern analytical system that allows you to perform complex calculations and simulations. It helps in preparing reports and summaries for business, showing relationships between data at the lowest level of detail: individual products or even their features. Thanks to its SAP system integration, it can operate on all the data stored in the system.
The SAP PAPM solution is based on three pillars – processing data, performing calculations, and preparing simulations for business. The speed of the calculations helps save time, while their accuracy, combined with the possibility of integration with external data sources, guarantees that they are error-free. What else makes PaPM the right choice?
Thinking about large companies
The PaPM solution is aimed at a wide audience – enterprises. It was prepared for companies that have numerous external systems and prepare complex reports using the data they contain. SAP PaPM can also be used in companies with highly developed structures, many subsidiaries and production plants looking for cost optimization based on real data. It is a solution recommended for companies that are still looking for excellent reporting and analytical tools that would allow them to prepare reports based on the most granular data and analyze the impact of the smallest changes on the overall results of the company.
Terabytes of data
The system processes huge amounts of data – traditional computing programs are not always sufficient to perform large analyses. Huge concerns use terabytes of data. Closing the billing period, preparing detailed reports for the headquarters, or analyzing the profitability of a new investment with many variables can take up to several days – thanks to PaPM, this time is reduced to a minimum, while ensuring that the obtained results are accurate and all data is stored in one place.
The system works in real time and communicates with the central SAP system in both directions. All data can be downloaded from the database, e.g. SAP BW and external systems, and then the calculation results can be returned to the SAP system. In this way, an analysis completed at a specific stage can be entered into SAP and sent e.g. to other departments. The program also allows you to work on distributed data, both internal and external sources, without the need to copy and move it manually – it is transferred automatically, with maximum accuracy.
When preparing the PaPM system, SAP proposed ready-to-use solutions for specific industries. However, you do not have to use them in their original form – it is possible to modify the industry solutions preconfigured by SAP or to model business processes in the SAP PaPM system from scratch, according to the individual needs of the company. It is worth mentioning, however, that specific models have been prepared, among others, for mining, healthcare, fuel, telecommunications, utilities, and other industries. If you want to check if this solution will work for your company, see our offer.
Analyses and simulations
A system with such extensive reporting capabilities not only allows you to make realistic assessments of the company’s processes, but also performs what-if analyses based on very complex and detailed models. Importantly, in the case of the PaPM solution, there can be very many variables, much more than in the case of other solutions available on the market. This makes it possible to check how a given change will affect, for example, fixed costs or profitability at the level of a single product or its feature, not only the entire enterprise.
Optimized enterprise processes
The above-mentioned what-if analyses, as well as the results obtained by the system from the ongoing activities of the company, enable drawing conclusions regarding the company’s processes. This also provides opportunities for their optimization. And it is not just about the costs calculated in a specific currency, but also such factors as workload, raw materials needed, their transportation, or the amount of waste that can be eliminated during production. PaPM SAP allows companies to operate more efficiently. What is important, it happens in a simple way. Complicated calculations, impossible to perform by hand, laborious and error-prone when done in popular solutions, become fast, transparent, and accurate with PaPM.
What other benefits does the PaPM system provide? There are a number of features that can produce tangible results. The mentioned optimization of transportation or waste production contributes to the environmentally friendly operation of the enterprise and helps minimize its ecological footprint. There is also a number of amenities that allow you to save time when performing calculations in the system, e.g. thanks to the currency conversion function, this does not have to be done separately.
List of advantages
The advantages of the PaPM SAP solution are numerous – every user will probably notice different benefits once it is implemented in the company, depending on their profile and operations performed in the system. The most frequently mentioned include:
– the ability to work on all data, both raw and final, and trace each stage of the calculations with detailed result analyses at individual steps,
– aid in making decisions with real analysis results based on real data,
– high flexibility of the system, which allows you to use models that are both ready-made and individually tailored for a specific company,
– automation of activities, ensuring the elimination of calculation errors.
The SAP PAPM solution is a modern tool that allows enterprises to create the most optimal processes. Following the needs of modern companies, it is worth learning about the possibilities it offers and getting to know them better. Would you like to know more about PaPM? See our experience in implementing the solution and check what benefits our clients managed to achieve? Contact us and find out how your company can benefit from SAP PaPM implementation.