Name: Using the Modeling Tool in SAP SuccessFactors Incentive Management
Uploaded: 2019-12-10
Duration: 357 s
Description: This video will demonstrate the Modeling tool in SAP SuccessFactors Incentive Management.

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<div><div><div><div>This video will demonstrate the Modeling tool in SAP SuccessFactors Incentive Management. </div></div></div></div>

Using the Modeling Tool in SAP SuccessFactors Incentive Management

Hi, my name is Lily. In this video, I will show you how to use the modeling tool to predict the impact of proposed changes. This video will take approximately 7 minutes. What is modeling? The model's workspace in commissions provides the administrator the tools and ability to better predict the impact or proposed changes to a compensation plan. The benefit of using this feature is to gain a greater understanding of potential changes and their impacts along with control over compensation spending. For example, let's say that it's mid-year and management is discussing the following year's sales compensation structure. They are thinking of increasing quarterly bonus rates in hopes that it will motivate the sales representatives to sell more. However, management wants to know what type of financial risk this increase to the quarterly bonus will be if sales remain the same. You can use the Models tool to update or change an existing compensation plan, run real transactions, and calculate compensation without truly changing the current plan. Let me show you how it works. To create a model, you must first determine the following. What do you want to model? What plan do you want to model? What objects or data do you need to change? What periods do you want to model? Are you going to use the data already loaded or do you need to load new data? I'll create a model for the Sales Representative Plan. I want to see what would happen if sales increased 5%. I want to get my data from January 2018 to March 2018. First, I'll login to Commissions and click Models and Manage Plan Data. Then I'll click create and I'll set my preferences for the model. I'll name my model 2019 sales model. The description is optional. The model is always going to be based on a calendar. And based on that calendar, I can choose my source date range and my effective date range. Source date means where am I going to get my historical data from. In this case, I've decided to get it from January 2018 to March 2018. Here I have the effective date of the model if promoted to production. On the right hand side I have budget type. I have two choices budget for model period and calculate budget as a percentage of transaction value. I'll select budget for model period and leave these blank. Source period input. Use only measurement from the source period is default. This means that I want to use historical data and I'm going to use the measurement values. All the calculations for the future will be based on measurement values instead of transactions. The measure is aggregating all the credits for one person. I'm not sure which option to use, use this option. Use transactions in the source period. For example, I'm using the January to March 2018 period and will use those transactions. Additional uploaded transactions can be used along with source period transactions. Use new model transaction only. This means that you will be prompted to upload a set of transactions. You would do this by downloading a template. Optional Uplift. This is where you would put an assumed growth in sales. For example, sales management anticipates an increase in sales of 5%. This number can also be negative. What if sales decrease by 2% next year? I'll click Create. Now I'll select a specific plan that I will model. I'll click the Create Plan Plus icon and select Sales Representative 2018 and click Add, then I'll click Back. I can click a plan and manually make changes to components in that plan and then run a model. I'll click Save and now I have a model. Now I'll click Run. If you have run a pipeline before, this will look very familiar. First, I'll select the plan to be processed, then choose the periods to run the calculation for, and select who I want to run the calculation for. Do I want to enable Advanced Login? I'll say no. I want to run this now, and I'll check the summary to make sure everything here is the way I want it, and I'll click Start. Now it will process your request. Once the model has been processed, I'll go back to Models to see the results. In the Model Summary tab, I can compare the model by measurement. What effect will this have on total sales? If I compare the model by incentive, it'll give me the effect this will have on my payouts. This is the exact amount on my earnings. If I choose Deposit, it'll give me the amount paid out by period. In this case, I'll choose Incentive, USD, Load Results. As you can see, the modeled value is 5% higher in this period. You can use this data to examine the specific compensation plan chosen for the modeled run. Depending on the results, you can then make changes to the plan based on your company goals. Now I'll click Promote. Promote enables you to take the model and make it your production environment. There are a couple of things to keep in mind when promoting a model. You'll need to make sure the Promote permission is enabled for the person using the model. In the Commissions workspace, go to Security in the Manage Setup workspace and click Roles. Then click Permissions, then click Models, and check Promote. Promotions cannot be reverted. If you promote a model to a production, you cannot change your mind. As a best practice, we recommend that you start from scratch. Thanks for watching.