SAP Strategic Enterprise Management (SEM) comes as a set of software applications imparting value in managing the overall performance of the organization by adopting special strategies according to the situation and the demands of the organization. The SEM solution covers the functional areas that include planning, budgeting, forecasting, preparation of consolidated financial reports, managing the overall corporate performance based on score cards also taking the risk factors in consideration.
SEM provides the essential value based management to the organizations regarding the possibilities of better profitability or creating a better market for its products. This raises the drive of the organization and also lowers the cost. It embeds special value and improves the work culture of the organization by identifying the productive and non- productive units.
Proper allocation of resources is very important for the organizations that affect the margins and SEM solution contributes a lot in this resource allocation. It provides definite strategies in resource allocations that help in deriving better returns from the projects.
1. SEM provides the detailed financial reports collected from different units and different locations. Based on these reports SAP SEM generates the consolidated financial reports for the business organizations located globally. It also effectively integrates the various data collected from various SAP and non SAP sources.
2. The SEM modules of planning, budgeting and forecasting helps in the proper planning and budgeting related to the different cost centers and sales units and forecasting the upcoming market situations.
3. It adopts various scorecard methodologies through the KPI methods that results in a well balanced scorecard based on various financial and non- financial data and by linking the strategic and the operational plans.
4. SAP SEM effectively identifies and analyzes the business risks in the different production units of the organization and supplies various methodologies that help in reducing such risks.
5. SEM application contributes a lot in connecting and communicating the different points all over the organization. By careful study of the historic views and the predictive ones, it combines those views to set definite targets. For this analysis it integrates the external and the internal data very efficiently to develop new plans and set new targets.
1. It improves financial management and organization culture.
2. Supports all the requirements with the changing market scenario.
3. Helps in running the business according to the strategies and plans adopted.
4. Improves the efficiency in operations leading to better productivity.
5. Manages the business risks effectively preventing serious damages.
6. Optimizes the cost in IT infrastructure.
7. Helps to retain the best performers by laying out well developed plans.