feb 22_b

SAP Commercial Project Management

Making Every Project Business a Best Run Business

Dr. Martin Effenberger, SAP AG

February 22, 2013

© 2013 SAP AG. All rights reserved. 2

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Legal disclaimer


Agenda

Introduction

Processes and Scenarios

Functional Overview (including system demonstration)

Project Workspace

Project Financial Planning

Project Issue and Change Management

Preview on Mobile Applications

Summary & Outlook

Q&A


Business priorities in commercial project management

■ How do I increase project profitability?

■ How do I ensure consistent processes throughout the complete

project lifecycle in order to further professionalize and scale my

business ?

■ How do I achieve consistent planning from bid estimation to

project delivery?

General Manager

Project Director

Project Manager

■ How can I detect project risks early?

■ How do I get a transparent and accurate status on the projects

within my responsibility, anytime, anywhere?

■ How can I get up-to-date and real-time information on my

project financials and project progress?

■ How can I reduce the effort to manually consolidate data from

different sources (e.g. for status reporting, billing etc.)?

■ How do I get a system that fully supports me in managing my

projects?


Our Solution: SAP Commercial Project Management

Make every project business a best-run business

Extension to the SAP Business Suite leveraging

all the existing functionality (e.g. for opportunity

management, contract management, billing,

project structuring, procurement etc.)

Project Workspace as work environment for

project professionals that provides an integrated

view across systems and applications in order

to support the user to complete his tasks

Project Cost and Revenue Planning to plan

and forecast quantities, costs and revenues

throughout the complete project lifecycle (bid

stage, base line planning, execution)

Project Issue and Change Management to

systematically track project issues and change

requests.

Connect the end-to-end front-office reality to a

central and fully integrated ERP solution to

improve consistency of processes,

transparency, accuracy, and control

Highly usable and flexible User Interfaces

VALUE DRIVERS KEY FUNCTIONS

Monitor & Control Execute Plan Sell

Transparent and accurate project status (e.g.

on project financials), anytime, anywhere

Fast creation of reliable bid estimates using

Excel

Decrease percentage of un-approved change

requests

BENEFITS: EXAMPLES

PLANNED INNOVATION


Agenda

Introduction



Project Workspace




Summary & Outlook

Q&A


Commercial Project Management Example End-to-End Process

Selling Planning Execution

Create CRM

opportunity

Create Master

Project

Review project

performance

Recording of

actuals

Send Estimate

to customer

CRM

Workspace

Workspace

Control & Monitoring

Account Manager

Project Admin

Project Manager

Project Estimator

Project Director

Perform Bid

Estimate

Fin. Planning

Create

purchase

order

ERP MM

Maintain project

team members

Maintain

reporting

attributes

Perform base

line planning

Workspace Workspace Fin. Planning

ERP

Monthly

Forecasting

Fin. Planning

Monthly Status

Reporting

Workspace

Trigger Billing

ERP SD

Review project

performance

Workspace

1

2

3

4

7 8 9 Create Change

Request

PICM / Fin. Plan.

10

11

12 13 14 15

16

17

Contract Setup

ERP SD

6

Worksp.

Setup WBS

structure

ERP PS

5

Worksp.

Worksp.


Architecture of SAP Commercial Project Management

Component Architecture

SAP Netweaver 7.31

SAP ERP EhP6

CPD*

SAP Netweaver 7.31

Open architecture that supports different SAP ERP solution architectures at the customer, e.g.

■ Usage of SD & PS (for full functionality)

■ Usage of SD only

■ Usage of cProjects

■ Usage of SAP CRM or 3rd party CRM

■ Usage of 3rd party scheduling solutions

SAP Netweaver

New solutions

ERP

EhP6

SD & PS for full

functionality

PPM

cPro MRS

CRM

On-D

em

and s

olu

tions

Res.

3rd

CRM

3rd

Doc.

Mgmt.

Optional 3rd Party

Mandatory

Optional SAP (pre-built

integration)

New solutions

Proj.

Scheduling

IAM 1.0

PICM

■ New Add-On 1 (CPD)

Workspace and Financial Planning

Based on SAP ERP 6.0 EhP6

■ New Add-On 2 (PICM)


Based on SAP Netweaver 7.31 and IAM (Issue

and Activity Management)

■ Can be deployed on same system or separately

Functional Architecture

PLANNED INNOVATION

*CPD = Commercial Project Delivery


Agenda

Introduction



Project Workspace




Summary & Outlook

Q&A


Project Workspace: Motivation

Projects have many aspects:

Resources, Financials, Risks, Scope,

Schedules, etc

Fragmented Solutions force Project

Managers to use a multitude of

different tools to do their work. This

results in inefficiency, low

acceptance of solution and outdated

and inaccurate data.

Outdated and inaccurate data

prevents identification and mitigation

of risks and challenges hidden in

project portfolio and bid pipeline

Fragmented Solutions result in high

implementation efforts and custom

built add-ons.

Contracts

and Billing

Project

Scheduling

Quality

Assurance

Resource

Management Purchasing

Document

Management

Financial

Planning

Change

Mangement

Issue

Management


Integrated View provided by Project Manager Workspace

Contracts

and Billing

Project

Scheduling

Quality

Assurance

Resource

Management Purchasing

Document

Management

Financial

Planning

Change

Management

Issue

Management

Project Manager Workspace

Enhanced user experience

providing a single view across

systems and applications

Better decision-making based

on up-to-date and accurate

information

Enhanced productivity of team

members, less time spent

searching and more time spent

on value-added tasks

Enhanced transparency about

project status allows tighter

monitoring and control to

reduce project risks


Project Workspace: Key functions

PLANNED INNOVATION

Provide an integrated view of the project

• Bundling of existing business objects (e.g. CRM opportunity, SD order, PS project, cProject) via new master project object

Embedded analytics

• E.g. Cost Status Report, WIP Report, Progress Report

Configurable views dependent on user role

• Pre-defined views for Project Commercials, Procurement etc.

Enhanced Project Management

• Status Reporting & Trends

• Rule based Alerts

• Roles & Responsibilities

• Reporting Attributes

Contract Management Enhancements

• Rate Card Application

• Billing Plan Manager

• Billing Cockpit


Agenda

Introduction



Project Workspace




Summary & Outlook

Q&A


Project Financial Planning Unified Project Financial Planning and Forecasting

PLANNED INNOVATION

Bid Estimate Baseline Plan Execution

Version 1

High-Level

Estimate Contract ... Execution

Version N

plan excel only.avi

Plan Sapphire.avi


Project Financial Planning Key Functions

■ Downstream integration to ERP (WBS, Network

activities, MRS)

Bid Estimate

PLANNED INNOVATION

Baseline Plan Execution

Version 1

■ Planning of labor, material, expenses,

3rd party

■ Planning Sheet

■ Version Management

■ Valuation Strategies

■ Transfer plan from

bid structure to

execution

structure

■ Bid Structure

■ Change Requests

■ Forecasting

■ ETC / EAC

High-Level

Estimate Contract ... Execution

Version N

Reporting

■ Version Comparison ■ Plan vs. Actual


Architecture Financial Planning

ERP PS Project

WBS 1 WBS 2

WBS 1.1 WBS 1.2

Network

Activity 1

Activity 2

ERP CO

Project Financial Planning Hierarchical

Structure

WBS

Cost /

Revenue

Network

Activity

Cost

WBS elements and network activities

including date constraints

BW Cube

Resource Type Resource Rate Quantity Cost Revenue

Plan Line Item 1 Labor Project Mgr 800 20 16.000 20.000

Characteristics Key Figures (by period)

SAP BusinessObjects Analysis for Excel

SAP ERP

MRS

Resource

Request

cProjects ERP SD

Depending on assigned

object

BW-IP

Planning Engine


Agenda

Introduction



Project Workspace




Summary & Outlook

Q&A


Project Issues

• Attachments

• Link to reference objects (e.g. SD orders, WBS elements)

• Assignment of partner roles

Change Requests

• Creation with reference to one or multiple issues possible

• Change Document History

• Collective Change Requests

Activity Management

• Activity Management for Issues and Change Requests

• Activities can be based on templates or can be freely defined

• Flexible rule definition to create new activities

Approval processes

• Internal and external approvals

Integration with Financial Planning

• Multiple Cost Estimation Alternatives per Change Request supported

Project Issue and Change Management: Key functions

PLANNED INNOVATION


1. Cross-project view: Overview of projects within responsibility

2. Review analytics (cost status, progress, WIP)

3. Perform forecasting

4. Record an issue

5. Record status for management reporting

6. Trigger billing

System Demonstration: A day in a life of a project

manager


Agenda

Introduction



Project Workspace




Summary & Outlook

Q&A


Mobile Project Pad (Concept) Based on SAP Commercial Project Management 1.0

Use Case

Review of engagements within own responsbility

Preparation of visit to client (WIP, A/R status etc.)

Business Value

Early identification of project risks

Transparent and accurate status on engagements

Get accurate and real-time information on engagements


Digital Issue Management (Concept) Based on SAP Commercial Project Management 1.0

Use Case

Capture issue with smart phone camera, make

annotations with fingers, invite other project staff

and send it to project office. (SAP)

Business Value

Eliminate delay in reporting issues

Empower project staff to report issues instantly

Reporting project issues made simple

Click Annotate Invite


Digital Checklists & Project Issues by Mind Tree Based on SAP Commercial Project Management 1.0

Use Cases

Issue update from supervisor on a pre-defined

checklist

Prioritization of issues and managing supervisor

schedule.

Ability for both offline and real time reporting on

issues

Ability to create Issues

Business Value

Eliminate paperwork related to Supervision checklists

Capture progress information accurately with Digital

media (Photos/Video)

Manages supervisor schedule and calendar.

Supervisor checklist for managing issues digitally

Availability

Preview version: March 2013 (available via Apple store)

Integrated version : April 2013 (available on SAP Store)


Commercial Project Dashboard by Mind Tree Based on SAP Commercial Project Management 1.0

Use Cases

Browse status information of multiple projects

Dive into cost and revenue information

Get trend, alerts & notifications of your projects

Dive into earned value analysis

Business Value

Provides Project managers and Execs real time data

of key project parameters

Draws manager attention to any critical project

related event providing alerts

Project dashboard to monitor and manage multiple projects

Availability

Preview version: March 2013 (available via Apple store)

Integrated version : April 2013 (available on SAP Store)


Agenda

Introduction



Project Workspace




Summary & Outlook

Q&A


Summary

SAP Commercial Project Management extends the

SAP Business Suite and improves the end-to-end

process coverage of customer projects

User friendly and flexible user interface with focus on project

/ engagement

Easy integration into existing solution architectures

Complete view on all project relevant aspects (resources,

financial planning, billing, procurement, status, issues,

change management etc.)

Benefit

Increase profitability of projects through increased insight

and control

Enhance employee productivity

Language availability*

English, German, Spanish, French, Japanese, Portugese,

Russian, Chinese

*as of February 2013

PLANNED INNOVATION


Rapid Deployment Solution

for SAP Commercial Project Management

Services

• Fixed scope and price ➜ maximum

predictability & lower risk

Content

• Proven business value through best

practices, implementation accelerators &

tools

Enablement

• Accelerated solution adoption through

guides & educational materials


Development Outlook

It is planned to continue developments in the area of commercial project

management

• Continuous improvements of existing functionalities / Round-offs

• New functions

If you are interested to participate in respective customer engagement

activities please let us know

• Contact: Martin Effenberger ([email protected])

FUTURE DIRECTION

mailto:[email protected]


Upcoming Webinars

Registration under: http://scn.sap.com/blogs/cpm

Topic Presenter Date Time

Project Workspace Andy Sargent Friday, March 8th 9 am CET

4 pm CET

Project Cost and Revenue

Planning

Jonathan Rhodes Friday, March 15th 9 am CET

4 pm CET

Project Issue and Change

Management

Michael Kastner Friday, March 22nd 9 am CET

4 pm CET

http://scn.sap.com/blogs/cpm


Q&A

Thank you

Contact information:

Martin Effenberger

E [email protected]

T +49 6227 7 44166

mailto:[email protected]

feb 22_b

Documents

project business

project risks

project structuring

project financials

project delivery

project progress

project profitability

sap ag