SAP Strategic Enterprise Management (SEM) offers intelligent tools for developing and monitoring strategic plans, evaluating performance metrics, and aligning resources with long-term objectives.
By integrating financial, operational, and strategic data in a single interface, the SEM platform provides a comprehensive view of organizational health, enabling executives to make informed decisions, adapt to market changes, and drive sustainable growth.
This article explores how SAP SEM supports enterprise-wide strategy and helps businesses stay agile and competitive in a fast-paced business landscape.
What is Strategic Enterprise Management (SEM)?
SAP Strategic Enterprise Management is a powerful suite within the SAP ecosystem designed to help organizations achieve strategic goals through effective planning, performance management, and business insight. It provides an integrated environment for effectively managing an organization’s strategic development objectives and ensuring timely business decisions.
The SAP SEM system can operate as a standalone application or together with the company’s existing ERP system, empowering organizations to navigate complex business structures and maintain a competitive edge in the market. This solution supports key business processes and provides comprehensive functionality for fully integrated, strategic enterprise management.
Key Components of SAP SEM
SAP Strategic Enterprise Management is based on SAP’s Business Process Framework (BPF) and intelligent Business Application Programming Interface (BAPI) technology, facilitating the effective implementation of new solutions in an existing SAP landscape. It helps managers make data-driven decisions by providing accurate and timely information for strategic enterprise resource planning.
The SEM application comprises five key components: Business Planning and Simulation, Business Information Collection, Business Consolidation, Corporate Performance Monitor, and Stakeholder Relationship Management. These components are supported by the Business Information Warehouse, enabling the effective analysis, management, and query of multidimensional data across the existing technical landscape.
Business Planning and Simulation (SEM-BPS)
The Business Planning and Simulation solution provides intelligent tools to create dynamic simulations and connect different planning levels for a fully integrated planning model. This application makes it easier for companies to model, simulate, and manage complex, nonlinear relationships between competitors, markets, and other areas of the enterprise.
The planning processor function also enables users to model key business activities for each planning unit and in the corresponding plan sections ranging from material requirements, costs, sales volume, capacity, and headcount planning.
Business Information Collection (SEM-BIC)
The Business Information Collection platform provides the necessary infrastructure for SAP SEM’s data collection strategy, automating the collection, management, and maintenance of structured data within the SAP system. It also provides advanced functionality for facilitating the efficient collection of information from the Internet and integrating it into the existing software.
Business Consolidation (SEM-BCS)
The Business Consolidation application provides the functionality for legally required consolidation and management consolidations, helping companies accelerate the complete consolidation process and automate economic profit calculations.
SEM-BCS supports effective consolidation processes, including the exception of intra-group turnovers and the recalculation of currencies, to support reporting according to international standards and the transformation of records to IFRS standards and other key regulations.
Corporate Performance Monitor (SEM-CPM)
The Corporate Performance Monitor feature provides innovative functionality to facilitate the efficient management, interpretation, and visualization of key performance indicators, further improving performance management across internal teams.
It also provides the Management Cockpit to structure, visualize, and consolidate performance indicators across integrated data structures, accelerate team communication, and improve the analysis of the core planning process.
Stakeholder Relationship Management (SEM-SRM)
The Stakeholder Relationship Management platform supports the effective communication of enterprise strategy, current plan data, and other strategic initiatives for key stakeholder groups. It provides intelligent tools for managing stakeholder expectations and incorporating them into strategic enterprise management processes.
SEM-SRM makes it easier for companies to manage the comprehensive stakeholder database to support critical communication strategies and enhance relationships across business units and functions.
Implementing SAP SEM
SAP SEM helps companies operationalize their enterprise strategy to the business unit level, align company activity with shareholder expectations, and integrate the executive office with individual employee duties. It supports the effective management of performance monitoring and decision-making processes, reduces data inconsistencies and input errors, and makes it easier to consolidate financial data accurately and efficiently across the system.
The SEM applications consolidate a collection of different modules based on SAP’s data warehouse and built-in reporting and analysis functions within the Business Warehouse. It can be installed as a standalone application, a data mart linked with an existing data warehouse, or as an SAP BW application.
How Can We Help?
From assessing your current ERP software landscape and identifying key improvement areas to optimizing the entire strategic management process, integrating critical business execution systems within your technical landscape, and maintaining effective communication across teams, Surety Systems is here to help.
Our senior-level, US-based SAP consultants have the skills and experience to handle your critical project needs and prepare your internal teams for long-term success and improvement.
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For more information about our SAP consulting services or to get started on a project with our team of expert consultants, contact us today.
