PPM Optimization Workbench™SAP PPM 5.0 + SmartOrg Portfolio Navigator®

Systems integration by Platinum DB Consulting

Systems integration by PlatinumDB Consulting

PPM Optimization

Driving profitable growth by : Selecting the most promising

projects and products based on optimizing economic value

Focusing decision making on both strategic and tactical value

Dealing effectively with risk and uncertainty

Allocating resources to highest value projects

PPM Workbench Process Flow Chart

Implementation Options

Scenario # 1

Scenario # 3

Portfolio Navigator

Stand-alone Portfolio Navigator

Scenario # 2

Stand-alone SAP PPM 5.0

PPM Optimization workbench

Portfolio Navigator

PPM Optimization workbench integrated with SAP FinancialsSAP ECC

Systems integration by PlatinumDB Consulting

• Task: Create item Create via PPM item

creation Default Portfolio SmartOrg Logon: teapot PW:welcome21 Enter next available number

“CP99” Bucket=Corporate Item type = SmartOrg (CPG) Click on Start Function Enter Project ID “ CP77” Enter Project Name “CP77” Select cproject template

NPDI 4 Gate” Save Item

R&D Manager

Create project (item) in PPM 5.0

Systems integration by PlatinumDB Consulting

• Task: Add item to Review/What If

used for SmartOrg integration

Config setting ? Select review ID =

PN_RPM_R_1 Add item CP77 to review COMMENT: Desirable to

add item automatically to Review/what when item type = SmartOrg

Select What If = XXXTHURSDAYWHATIF

Save Item

R&D Manager

Add project (item) to Review/What If

A

Systems integration by PlatinumDB Consulting

Product Portfolio Manager

• Task: Transfer Item to PN and

begin optimization• Solution: PPM Workbench• Benefits: Seamless transition fro

portfolio management to optimization scenario playing

Select project (item) to evaluate

Systems integration by PlatinumDB Consulting

• Task: Create item Create via PPM item

creation Default Portfolio SmartOrg Logon: teapot PW:welcome21 Enter next available number

“CP99” Bucket=Corporate Item type = SmartOrg (CPG) Click on Start Function Enter Project ID “ CP77” Enter Project Name “CP77” Select cproject template

NPDI 4 Gate” Save Item

R&D Manager

Send project (item) to Portfolio Navigator®

Systems integration by PlatinumDB Consulting

Select Value Map template from library

Systems integration by PlatinumDB Consulting

Assess and enter data via templates.

Systems integration by PlatinumDB Consulting

Review initial project results

Key value drivers Cash Flow NPV Calculation Summary

Calculation Results Decision Tree

Systems integration by PlatinumDB Consulting

Compare projects to others in portfolio

Probability of Development Success

Commercial Value Given Development Success

Potential Project Cost

Expected Project Value CFO (“Bang for Buck”) Curve Risk/Reward Chart

Return results to PPM 5.0

Systems integration by PlatinumDB Consulting

Systems integration by PlatinumDB Consulting

• Task: PN portfolio optimization

results are used to allocate resources to the right projects

• Solution: PPM 5.0• Benefits: Right resources for the right

projects.

Collaboration

Check resources in PPM 5.0

Systems integration by PlatinumDB Consulting

Collaboration

Review capacity situation

Systems integration by PlatinumDB Consulting

• Task: PN portfolio optimization

results are used to allocate resources to the right projects

• Solution: PPM 5.0• Benefits: Right resources for the right

projects.

Collaboration

Allocate resources to most valuable projects

Systems integration by PlatinumDB Consulting

Review and update: PPM 5.0 >==< Portfolio Navigator.

Probability of Development Success

Commercial Value Given Development Success

Potential Project Cost

Expected Project Value CFO (“Bang for Buck”) Curve Innovation Screen (Technical Success vs. Commercial Value

Selected outputs from Portfolio Navigator™

Initial Review

1st Quarter Review

Systems integration by PlatinumDB Consulting

Collaboration

Track portfolio value throughout development

Initial Review

1st Quarter Review

Systems integration by PlatinumDB Consulting

Collaboration

Track risk/reward throughout development

• Chevron Research and Technology: R&D portfolio management• Cisco Systems: strategic business forecasting• Dow AgroSciences: global portfolio management 24/7• Sara Lee: innovation portfolio• Bayer CropScience: R&D decision support

Systems integration by PlatinumDB Consulting

How companies use system to improve profitable growth of R&D, NPD and Innovation

Sample users of value-based portfolio management

SAP PPM

SAPPPM BW

Content

SAPPNBW

Content

SmartOrgPortfolio Navigator

(PN)

SAPPPM BOBJ

DataMart

SAPPN

BOBJDataMart

SAP BUSINESS OBJECTS ANALYTICS

OPERATIONAL VIEW STRATEGIC VIEW

All PN data-Project data-Financial Data-CFO data-Baseline-Forecast-Scenario A-Scenario B

All PN data-Project data-Financial Data-Resource Data-Baseline-Forecast-Scenario A-Scenario B

Web-service

Optional

Optional

PPM Workbench™ Workbench Roadmap (PPM 5.0, BOBJ, Portfolio Navigator)