Transform Your Professional Services Organization into an Intelligent Enterprise
Driving Business Innovation Together
An Industry Facing Unprecedented Disruption
Professional services firms of the future will look very different. Never before have technological advances offered more innovation, transformation, and growth opportunities for the industry.
Intelligent technologies allow firms of all sizes and types to automate basic tasks, develop digital knowledge–based products, and access a network of nonemployee workers to grow revenue and manage accelerating change without increasing headcount.
Three key trends are driving change in the industry:
Firms are rethinking their business models and delivering services digitally through subscription platforms that provide better client and employee experiences.
Rise of the virtual firm
Many companies are opting to make remote working permanent. While doing so, intelligent technologies are enabling them to improve productivity and increase workforce flexibility.
Disruptive market entrants
Technology-driven automation is lowering the cost of service delivery and transforming how services are consumed, removing many barriers to new market entrants.
knowledge workers could be replaced by automation1
could be added to global GDP by talent platforms by 20251
Three Strategic Priorities to Run as an Intelligent Enterprise
Professional services firms are often seen as the vanguard of the digital transformation of their clients. The professional services firms are experiencing this disruption themselves as major trends impact how they engage with clients, how they are structured, and who they compete against. Professional services firms must focus on three key strategic priorities to create and capture new business opportunities in a digital environment.
SAP S/4HANA® Cloud:
Cloud ERP for Every Business Need
SAP S/4HANA® Cloud can help you establish consistent leadership for the top line, the bottom line, and the green line.
- Benefits for your top line: Consistently grow with new digital business models and fully automated processes.
- Benefits for your bottom line: Consistently outperform with instant intelligence and actionable insights.
- Benefits for your green line: Consistently elevate sustainability standards with new transparency.
Example: Enabling outcome-based engagements
Clients are demanding new approaches based on tailored outcomes. These models transfer much of the project risk from the client to the service provider and require a more sophisticated pricing model based on a clear definition of outcomes and an assessment of value creation. SAP® solutions provide the modern capabilities needed in three key areas:
Bids are created from scratch with manual, bottom-up estimates and multiple iterations, resulting in costly, inaccurate, and noncompetitive bids.
Accurate, winning bids are created faster through the intelligent reuse of previous bids and estimates from previously completed projects.
- Ability to reuse previous bids to save time and effort
- Detailed analysis and insights from previous projects
- Automated project setup using agreed-on bid structure, quantities, and rates
Traditional delivery management is often manual, disconnected, fragmented, and inefficient, leading to compromised outcomes and reduced project profitability.
Profitable engagements and predictable outcomes are delivered through intelligent and proactive delivery management that is integrated, traceable, and predictable.
- Integrated project management tools
- Activity-based time recording for real-time project management and accurate billing
- Monitoring of project progress for on-time and on-budget delivery
Manual billing and accounts receivable management processes are resource-intensive and error-prone, resulting in late, inaccurate billing and poor financial visibility and control.
Project performance is improved and management costs are reduced through automated processes and integrated billing that support multiple business models.
- Highly automated project accounting, work-in-progress management, and simplified revenue recognition processing
- Flexible and timely billing process for outcome-based services
- Automated line-item matching to enhance accounts receivables
higher win rate in sales pursuits2
increase in resource utilization with large impact on overall firm profitability2
Example: Enabling Talent Networks
Clients expect the right resources to be deployed for their projects at the right time and for the right cost. Yet timely engagement staffing and visibility into the staffing pipeline are challenges that commonly occur in the professional services industry. SAP solutions help bridge the gap between strategy and execution with the modern capabilities you need in three key areas:
Lack of resource demand and supply forecasts lead to bottlenecks in project staffing and the possible benching of employees after they roll off engagements.
Clear visibility into upcoming resource demand and supply enables timely mitigation activities to prevent shortages and benching to drive high resource utilization.
- Intelligent resource demand forecasting based on sales pipeline and in-flight projects
- Support for preventive action and flexible responses
- Cohesive recruiting and sourcing from all talent pools
The channels, processes, and pools for recruitment of new hires and sourcing of external workers are disconnected.
Integrated processes and talent pools for recruitment and sourcing enable the agile and timely fulfillment of resource needs.
- Flexibly applying position profiles to your recruiting and sourcing activities
- Finding suitable candidates among dynamic talent pools of past applicants and talent
- Applying intelligent assistants to direct prospective candidates to your job site
Highly manual staffing is limited to specific teams, with resource managers able to oversee these teams but without proper insight into individual member’s skills and availability, resulting in multiple iterations and a lengthy staffing process.
Informed, intelligent project staffing spans the global workforce and is based on up-to-date and accurate information on skills, capabilities, and availability. Employees can apply for assignments they feel will advance their careers.
- Total visibility of skills and availability for faster project staffing
- Selective visibility for employees into upcoming engagements and candidates who may apply
- Full insight into total workforce utilization for margin optimization
higher project team productivity and end-to-end process efficiency2
lower worker acquisition time2
lower cost per hire for organizations that provide recruiting self-service for managers2
Example: Delivering Knowledge as a Service
Professional services firms are transforming their client-facing business and driving new revenue streams through innovative digital services. Provided on agile, digital platforms, these services are instantly available, accessible, and affordable. SAP solutions can support you with the modern capabilities you need in three key areas:
A lengthy manual price-quote process is performed individually for each service with no support for subscription, usage, or outcome-based digital services.
Fast, accurate, consolidated quotes are made for complex solutions, including digital offerings.
- Omnichannel commerce capabilities
- Service bundling and subscription-based business enablement
- Flexible pricing and guided configure-price-quote capabilities
No single view of all service delivery and forecast margins is available for combined offerings.
A single view of all related services provides real-time visibility into revenue and margins and facilitates forecasting and the prediction of outcomes.
- Combination of products and services in higher-margin solutions
- Automatic categorization, assignment, and answering of service tickets
- Insight into individual customer sentiment, feedback, and transactions
Several invoices are made out for one solution, with no integration of different delivery channels and different revenue recognition methods applied for each component.
A single invoice is issued across all billing types for services, projects, and products, enabling real-time revenue recognition across all business models.
- Automated processing of subscription, one-time, and usage-based scenarios
- Flexible billing process for outcome-based services
- Faster, compliant financial closes for greater insight and control
faster quote-to-order process when quotes are configured by a configure-price-quote solution2
fewer customer complaints when real-time order, billing, and invoicing are available2
RISE with SAP: Driving Business Innovation Together
Every enterprise needs to develop new business models to prevent being disrupted, gain efficiencies in fund innovation, and transform mission-critical systems without business risk. The RISE with SAP offering is the solution.
RISE with SAP is a comprehensive package with:
- Cloud ERP for every business need
- Industry next practices and extensibility
- Analytics and business process intelligence
- Outcome-driven services from SAP and partners
Built to fit your needs
The RISE with SAP offering is designed to support your business needs – for your industry, region, and regulatory requirements. SAP takes over responsibility for the holistic service-level agreement, cloud operations, and technical support. It includes:
SAP S/4HANA Cloud
Business process intelligence
Business process intelligence starter pack for RISE with SAP
Business platform and analytics
SAP Business Technology Platform (credits for CPEA)
SAP Business Network Starter Pack
Outcome-driven services and tools
How Customers Are Achieving Value from SAP Solutions
Learn More About Intelligent ERP From SAPwww.sap.com/products/s4hana-erp.html
- James Manyika, Michael Chui, Jacques Bughin, Richard Dobbs, Peter Bisson, and Alex Marrs, "Disruptive technologies: Advances that will transform life, business, and the global economy," McKinsey Global Institute, May 2013
- Benefits are based on the results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to SAP S/4HANA enhanced with line-of-business and cloud capabilities.