- Value creation
- Connectivity of information
To understand value creation of an organization and to assess its business model's long term viability, it is key to not only look at the financial outcomes and forecasts, but also to understand the most relevant value drivers. SAP identifies four KPIs which are relevant for steering the company – two of them "traditional" (financial) KPIs, two of them value drivers ("non-financial KPIs). SAP monetarizes material non-financial KPIs: this does not, of course, demonstrate strict causalities, but correlations. However, this gains very positive feedback from providers of financial capital, as it gives a flavour of the impacts of these value drivers, despite being subjective. Value creation is showcased by means of the ‘SAP ellipse’ which has often been considered to be an example of <IR> best practice by report users.