22774 Strategic Enterprise Management Systems

Subject level: Postgraduate

Handbook description

This subject provides knowledge of advanced concepts in management accounting and advanced skills in implementing these concepts in integrated information systems (enterprise systems, data warehouses). Commercial strategic enterprise management systems packages are used as tools to demonstrate both the management (accounting) aspects and the information systems aspects of the strategic performance management. Students learn how to design strategic performance management tools for a virtual enterprise, and also acquire skills implementing it using complex enterprise software.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Understand and design strategic management accounting instruments such as corporate performance measurement, value-chain analysis, EVA, and Balanced Scorecards
2. Discuss and create strategic plans for enterprises
3. Understand issues in the implementation of Balanced Scorecards
4. Understand the role of data warehouses and OLAP tools in financial consolidation
5. Understand the functionality and architecture of a mainstream data warehouse and OLAP application
6. Use a mainstream data warehouse and OLAP application to implement strategies and monitor the performance of an enterprise.

Contribution to graduate profile

As value creation has become the most important goal for every executive, the need for value-building strategies has taken on a new urgency. However, simply defining the right strategy is not enough. What distinguishes top performing companies is the ability to successfully execute powerful strategies throughout the entire organization. This is increasingly difficult in larger or more complex organizations, where the distance between those who formulate the strategy and those who carry it out is significant. With size and complexity comes the necessity for communicating strategic intent and for providing a management framework that aligns the capabilities of the business with the requirements of the competitive marketplace. The challenges to successfully implementing strategy have never been so formidable.

The management accounting discipline has developed advanced concepts to support the objectives mentioned above, with the Balanced Scorecard™ (BSC) and the Economic Valued-Added™ (EVA) concepts clearly dominating the discussion. But implementing concepts such as the BSC are a challenge both for management and information systems experts. The performance measures in a BSC are aggregate key figures from all functional areas of the enterprise. Being able to generate these figures within short periods of time requires highly integrated operational databases (e.g. ERP systems) which are supplemented by efficient, integrated data stores, namely data warehouses.

SAP Strategic Enterprise Management is an advanced planning and analysis tool which 'sits on top' of the SAP data warehouse (BW™), which – again – usually retrieves data from operational (OLTP) systems. This architecture ensures that a BSC can actually be implemented and operated effectively and efficiently.

Understanding both the management accounting and the information systems aspects of contemporary strategic management accounting tools is a core competency of the management accountant, business consultant and manager of the future. This subject provides students with sound knowledge of both dimensions.

Teaching and learning strategies

A variety of teaching and experimental learning methods and strategies are applied, including teamwork, discussions, and, above all, hands-on experience with enterprise systems (SAP SEM, BW and ECC). Lectures and seminars are fully integrated, i.e. each lecture topic is presented using the SAP systems, and students can immediately apply the knowledge and practice on the system. This interactive approach facilitates the understanding of otherwise complex processes.

Students are allowed to use the integrated SAP systems outside normal class hours. During specified time periods, in which the system is monitored, students can access the system for training purposes and in order to complete their case study assignments.

Case studies are used for both the conceptual part of the subject and the application part. Each student will work in his/her virtual enterprise-segment and build and monitor his/her own BSC.

Content

• Strategic Management Accounting: Concepts and Cases
• Strategic Planning and Simulation
• Value-Chain Analysis
• EVA
• The Balanced Scorecard
• Stakeholder Relationship Management
• Introduction to SAP SEM
• Building Blocks and Functionality
• Functionality: Overview
• Architecture
• Understanding the engine: SAP BW
• Business Planning and Simulation
• Financial Statement Planning
• Investment Planning
• Business Analytics
• Cost and Profit Centre Analysis
• Liquidity Analysis
• Sales Analysis
• Strategy Management and Performance Measurement
• The Balanced Scorecard
• Value Based Management
• The Management Cockpit
• Stakeholder Relationship Management

Assessment

Recommended text(s)

Wieder, B., Ossimitz, M.L. (2008). Strategic Management Accounting with SAP SEM™, forthcoming, Sydney.

Meier, M., Sinzig, W., Mertens, P. (2003). Enterprise Management with SAP SEM™/Business Analytics. Springer. Berlin et al.