Stakeholder Relationship Management (SEM-SRM) (SAP Library

Stakeholder Relationship Management (SEM-SRM)

Enterprises should constantly interact with their stakeholders. These include shareholders, employees, customers, suppliers, partners, state institutions and the general public. Each interest group has different expectations of the enterprise. Shareholders look for value appreciation and expect to have a certain say in the business. Employees expect fair remuneration, varied tasks, training, co-determination and job security. Customers want innovative, high-quality products with good service at attractive prices. They also look for an enterprise strategy that will allow a long lasting business relationship. The same applies for suppliers and other business partners. Regulatory authorities press for obligations to be fulfilled. Financial authorities claim taxes, levies and fees. The general public demands environmentally friendly polices and that the public welfare is taken into account. Enterprises attempt to satisfy these, at times, contradictory interests. They have to manage the stakeholder network and the expectations of the stakeholders. The SEM-SRM process supports this management task.

The SEM-SRM process consists of six elementary steps:

Identification of the stakeholder groups and important individual stakeholders,
determination of the stakeholder expectations

Assessment of the stakeholder expectations and modeling of the relationships and trade-offs between the various interest groups

Integration of the stakeholder expectations into the enterprise strategy

Monitoring of the enterprise performance, analysis of variances and trends

Stakeholder Reporting and stakeholder feedback

Development of strategic planning scenarios and deciding on the future enterprise strategy

The objective of SEM-SRM is to interactively communicate the effects of the enterprise strategy on stakeholder value, and to thereby convince the stakeholders that they have invested their trust and their stakes/resources in the right enterprise. In the context of the SEM-SRM process, the quality of the communication with the stakeholders plays a decisive role and directly influences the enterprise value.

This graphic is explained in the accompanying text

Figure 16: Stakeholder communication process with SEM-SRM

All phases of the communication process are supported by SEM-SRM functions. These can be summarized in a process-function matrix: The first four steps are supported by the function blocks Stakeholder Profile Builder and Stakeholder Communication Processor. The last two steps make use of the function blocks Stakeholder Communication Processor and Stakeholder Report Builder.

Overview of Functionality

Stakeholder Profile Builder
Stakeholder Map / Relevance Matrix	You use the Stakeholder Map to define, identify and analyze the stakeholders. The stakeholders are classified according to their risk structure (degree of commitment/stake), their objectives (interests, expectations) and their power structure (extent of their influence). The stakeholders are weighted in the relevance matrix according to their expectations, their potential influence and their investment risk. You can use this weighting as a basis to decide to what extent the interests of the various stakeholders need to be integrated into the objectives of the enterprise.
Stakeholder Questionnaire Generator	The Stakeholder Questionnaire Generator supports analysis of the stakeholders' expectations and interests. The function generates questionnaires, sends them to stakeholders, automates the evaluation of the returned information and saves the data for reports . The Stakeholder Questionnaire Generator uses SEM-BIC functions.
Stakeholder Database	The Stakeholder Database contains the following information: Address and contact data The expectations (objective structure) of the stakeholders, The degree of influence (power structure) of the stakeholders, The degree of commitment/stake (risk structure) of the stakeholders and Notes and references. The Stakeholder Contact Database contains the following information: The stakeholders' queries (what information [contact subject] was reported when [contact history], and how [contact type], to which stakeholders), The activities and initiatives undertaken for the benefit of the stakeholders (what was done [contact subject] when [contact history], how [contact type], and by whom) and also Notes and references. The database serves as a basis for communication with the stakeholders and you can evaluate it as you wish.
Stakeholder Value Proposition Modeling	In this function you can model the relationships and trade-offs between the expectations of various stakeholders. This model allows you to weigh up the various stakeholder interests against each other.

Stakeholder Communication Processor
Stakeholder Communication Processor	This function block enables automatic communication using different media such as print, fax, telephone, the Internet and e-mail. You can use the Stakeholder Communication Processor to regularly send information to the stakeholders. The Stakeholder Communication Processor also supports the automated processing of incoming information. Comments, questions or information requests from stakeholders are passed on by workflow to the relevant persons in the enterprise. The appropriate SEM-BIC functionality is used here.
Stakeholder Simulation Processor	Using the SEM-BPS functionality, SEM-SRM enables you to produce interactive, dynamic enterprise models for stakeholder groups. You can make these models available to the target group via the Internet. Stakeholders can analyze enterprise scenarios and simulate the effects of changes in exogenous data on the enterprise's key figures. You could for example provide a model for financial analysts where they can simulate the effects of exchange rate fluctuations on the enterprise.

Stakeholder Report Builder
Stakeholder Window on SAP SEM	The Stakeholder Window allows stakeholders controlled access to reporting and modeling tools in SAP SEM. It helps to meet their information requirements.
Stakeholder Value Report Builder	The Stakeholder Value Report Builder produces reports with special, target group-based information. SEM-SRM allows you to display available information in various ways so as to meet the needs of different stakeholders. Investors and analysts receive information from the enterprise regarding issues that may influence stock prices. They can request this information via the Internet. Employees, customers, partners and the general public receive information on the enterprise strategy and its value potential for the respective groups.

This graphic is explained in the accompanying text

Figure 17: Example of a shareholder value report