van tang and flatscher 1 nov

8/6/2019 Van Tang and Flatscher 1 Nov

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SAP EC& OIndus t ry Va lue Ne tw ork : RIB in Foc us

Van Tang, Direct or, SAP Discrete Industries, EMEAWolfgang Flatscher, Director, RIB InternationalBusiness

Contributors: Carsten Dietze-Selent, Director IBU EC&O, SAP

Michael Kastner, IBU EC&O, SAP

Michael Quadt, IBU EC&O, SAP

Zach van der Walt, SAP South Africa



SAP‘s Vis ion for Indus t ry Solu t ions

… a s f o u n d at i o n f o r t h e s t r a t e g y i n EC& O

VISIONTo enable every customer to become a best run business

Achieve undisputed market and platform leadership in all industries wherewe compete

Executing industry growth strategies by assembling SAP and partnerapplications into industry-leading solutions:

•Translate industry trends and best practices into solutions and business opportunities for customers, partners and SAP•Assemble complete industry solutions based on industry, generic, and partnerapplications•Demonstrate thought leadership around E-SOA and deliver on the promise – early!

•Building a healthy industry ecosystem for the SAP platform•Develop critical industry-specific applications

MISSION



SAP Engineering, Construction & Operations

SAP EC&O Industry Value Network

SAP & RIB

Path Forward

AGENDA



H o w w e s ee t h e EC& O i n du s t r y



The Cons t ruc t ion En t e rp r i se

Core Enterprise•Financial Mgmt.•Workforce Mgmt.•Procurement•CRM•IT

Owners

Construction•Project Mgmt.•Change Mgmt.•Procurement•Billing•Workforce Mgmt.•Document Mgmt•Schedule

Materials Suppliers

Architects/

Engineers

Subcontractors/Vendors

Facility Operations•Maintenance•CRM•Scheduling•Dispatch

Equipment

Design & Engineering•Project Mgmt.•Resource Mgmt.•Workforce Mgmt.•Contract Billing•Change Management

Pro jec t



Comm erc ia l Cons t ruc t ion Sub-Segment s –H o w w e Go t o M a rk e t

OtherGeneral

Contractors

GeneralConstruction

Heavy /Infrastructure

ConstructionManagers

GeneralBuilding

Contractors

Industrial(Power/ Petrol.)

Highway/Transportation

Real Estate

Developers

PropertyManagers

ProjectOwners

Special TradeConstruction

Mechanical/Electrical/Plumbing

(MEP)

OtherSpecial Trade

Civil(Water/ Sewer/Environmental)

Construction /Mfg. Hybrid

ETO

Companies

FacilityOwners & Operators

EPC / PlantContracting

ConstructionMaterials

Management CompaniesControlled RiskLower Margin

Self-Perform CompaniesPerformance Risk

Higher Margin

Financial / ControlProject CostChange ManagementSubcontract ManagementFacility Operations

Financial / ControlProject Cost

Change ManagementSubcontract Management

Facility OperationsProject Logistics

Materials ManagementWork Management

Production

productivity and profitability



SAP fo r EC& O Cus tom ers Base Grow t h 2001 - 2006

441

747

100

44

44

02001 2002 2003 2004 2005 2006

400

500

600

700

800

• Growth consistent and sustained• Significant new well-known customers added in 2005 and 2006• Strong growth in the Midsize and Small Market

6850

Source: MKIS as of December 2006

C A G R = 1 1 %

No. of EC& O Customers Wo rldw ide



SAP has 747 E& C Cust om ers Worldw ide

By Region

By Segment

592

APA(122)

Americas(120)

EMEA(505)

34556

115

Shipb uilding

Plant Contracting

& Construction

Key Takeaways

747 SAP for EC&O customers are spread allover the world. 68% in EMEA (mainly Europe), 16% inAPA and 16% in the Americas.

SAP for EC&O customers are distributed to 46% onPlant Contracting & Construction, 31% on SpecialTrade Contractors, 15% on Homebuilding, and 8% onShipbuilding

The structure of SAP for Engineering, Construction &Operations customers is dominated by companieswith less than 5.000 employees.More than three quarters are belonging to thismagnitude

Source: MKIS as of January 2006

Homebuilding

231Special Trade Contractors

Range of Employees No.

By Employee Size

Total : 747

346

208

75

118

Small

MidmarketEnterprise

Not Assigned



Our EC& O indus t ry so lu t i on app roac h



The Bus iness Process P la t fo rm t o Br idge Tw o Wor lds

SAP NetWeaver SAP NetWeaver

SAP Appl ic at ion

E R P

C R M

P L M

S R M

S C M

PRODUCTIVITYDIFFERENTIATION

REUSE PROCESS STEPS AN DENTERPRISE SERVICES IN

CUSTOM PROCESSES

ENTERPRISESERVICES

Cus tomer Appl ica t ion

SAP Appl icat ion

Par tne r Appl ica t ion

EnterpriseServices

Repository



SAP ERP 6 .0 – St able Foundat ion for t he Nex t 5 yrs

200 6 20 07 20 08 20 09 2 010

SAP ERP 6.0

SAP NetWeaver

Enhancement Packages

2005

Enhanceme nt pack ages del ive r c o n t i n u ou s i n n o va t i o n w i t h o u tupgrades and can inc lude …

Technical and functional enhancements

New enterprise services

Composite applications

2011

Nextrelease

Delivery of new developments and continuous without a release upgrade!



In t r oduc ing . .. Enhancem ent Pac k ages- More Innovation, More Quickly, More Accessible to Customers

2006 20102007 2008 2009

CompositeApplications

Enterprise Services

Legal Changes

FunctionalEnhancements

Areasof

innovation

MandatoryCore -modifying

OptionalNon core -modifying



Serv ice Enab lement o f Indus t ry Sc enar iosExample: Project Planning & Scheduling

Design Tender Execute OperateDevelop Estimate

Planning & Scheduling

CreateProject Structures CreateEstimate ScheduleProject

ResourcePlanning

QuantityTake-OffProcessStep

Desegregation of Process into Process Steps

Create/UpdateProject Objects

Create/UpdateCost Plan

ScheduleNetwork/Project(*)

UpdateNetwork

Attach MaterialComponents

SAPServices

Composition of the Process with Enterprise Services

Def in i t ion o f Serv ices : Jo in t ly w i th Par tne rs and ( in fu tu re ) Cus tom ers

Enterprise Services RepositoryDefinition of processes, enterpriseservices, data types, and mappingsService metadataCentral modeling and design environment

Service Bundle for Projects (EhP 3)



Ent erpr i se Serv ic es : Connec t ing Is lands and Dr ive Co-Innova t ion

To build a partner ECO-system

To leverage new technologies

To simplify development – fromcode to model-driven

To deliver Enhancement Packages

Enterprise Services are the pre-condition for Simplification and efficient cooperation with partners

Our Objective: Service Enablement of EC&O Core Scenarios

Ente rp r i seSe rv icesRepos i to ry



SAP‘s Leadersh ip in t he EC& O Indus t ry

Industry Segments Example SAP Customers SIC Codes

Operative Builders1531

Residential Construction 1521, 1522,2451

General Construction, non-residential 1541, 1542

Road, Highway, ElevatedHighway 1622

Infrastructure & HeavyConstruction 1623, 1629

Special Trade Contractors1700-1799

Shipbuilding, Boat Building andRepairing 3731, 3731





SAP & RIB

Path Forward

AGENDA



SAP Ec osys tem – New Dim ens ions o f Co l l abora t ion

B u s

i n e s s

P r o c e s s

Customer-driven business process insights

Business partners, individuals

Industry Knowledge

Communities for Innovation

Products and Services

Platform with application functionality



SAP‘s Indus t ry Solu t ion Map for EC& O



Ent erpr i se Serv ices Enabled Key Sc enar ios for EC& O

• Focus on scenarios – Project Planning &

Scheduling, ProjectExecution

– Procurement of Services andMaterials

– 2008: Design & Engineering• Current Partner Status

– Primavera approved for EBSPartnership (in solutionqualification)

– RIB: Nominated – Intergraph, NRX: Nominated

Do we miss Scenarios and Software Vendors with the potential for broad adoption?



Reuse o f Se rv ices : In teg ra t ion w i t h Pr imavera & RIB(planned)

EnterpriseServices

Repository

Tender Execute OperateDevelop

ProjectView

ProcessView

Estimate

ERP

View

Subcontractor

Exchange of projectinformation (e.g.schedule, tasks)

Design toQuantify

Estimate toContract

Tender forPurchase

…

Enterprise Services

Customer

Primavera

ERP Application Components

Design

Analytics

ERP ProcessMasterdata

…… … … … … … … …

Primavera





SAP & RIB

Path Forward

AGENDA



RIB Overvi ew



RIB Prof i leEx per i ence i s t he Bas i s fo r Fu t u re Innovat ions

Experience is the basis for future innovations

2008 RIB visual

2006 First customer in Middle East - Orascom2005 Founding of R&D Center in China2004 First customer in China - Vanke2003 First customer in United Kingdom – Network Rail2002 First customer in the USA - Fluor Corporation1998 Fully integrated pre- and post contract software

1986 First integrated civil engineering solution1972 First structural engineering software

with FEM method1961 Founded by Prof. Dr. Ing. Volker Hahn, Stuttgart



RIB Suc c ess St ory

RIB Success Story

– Over 45 years of experience – More than 100,000 RIB-installations worldwide – Over $ 35 million revenue (2006)

– > 350 highly skilled staff worldwide – Head office Stuttgart, Germany.

Offices in UK, Eastern Europe, Asia, USA – 35 % of the German tender volume (about $ 180 bn) – 100 % of the top 10 internationally operating German

building Groups work successfully with RIB software – 80% of construction projects (> $ 1 m) in Germany are managed with

RIB Software



Think Globa l , Ac t Loc a l

RIB Markets and Sites

Research andDevelopment

Consulting,services, sales



SAP & RIB Indus t ry So lu t i on



J o ined So lu t ion Overv iew SAP - RIB

Cus tomer Des ign /Engineer ing

Subcon t r ac to r Ma te ri al Su pp li er H R Se rv ic e Pr ov id er

Pro jec t L i fe -cyc le

Leverage des igni n f o r m a t i o n f o r p r o j e c t

e x e c u t i o n

A c c e s s t o t a s k s a n dschedule , Time

record ing onl ine

R e a l t i m ea v a i l a bi l i t y c h e c k

and de l iveryi n f o r m a t i o n

Externa l payro l lprocess ing

Exchange of rea lt i m e p r o j e c t

in format ion (e .g .change reques t s )

SAP ERP SD, MM , PS, FI, CO, HRERPView

Pro jec tView

ProcessView

SA PCRM

Opera teDesign Es t im a t e Tend er Ex ec u t eDevelop

SA PFM, BI

Ente rp r i seSe rv ices

Repos i to ry



Cons t ruc t ion CompanyClient

Quantity Take Off

Suppl ier S u b c o n t r a c t o r SA PRI B

Bill of Quantities

Material (Commodities)Equipment / Plant

Labour

Subcontractor

Estimate Indirect Cost

Allocation / Allowances

Optimization of Bid

Final BidEvaluation of Bids

ContractAward Contract

Budget

Historic Price Data

Create Sales Order

Create PS Project

Estimate Direct Cost

Cost

Price

CRM

Contract Management

HR

Equipment / Plant Cost

Procurement

RFQ

Quotes

Supplier

Import RFQ

Estimate

Send ElectronicBid

Subcontractor

Major Items Only

Estimating Process




Award Contract

S u b c o n t r a c t o r SA PRI B

Packaging

Tender Documents

Import Quotes

Transfer Quotes toEstimates

Update Budget

Award (Sub) Contract

Execution

Evaluation

Benchmarking

Supplier Database

Contract Management

Updated Baseline

Create Purchase Order

Controlling

Contract Award

Import RFQ (e-bid)

Estimate

Send Electronic Bid

Subcontract Procurement



Material Procurement


Contract Award

Suppl ier SA PRI B

Request forProcurement

Create/Send RFQ(Request for Quotation)

RFQSend RFQ(Request for Quotation)

Send Quotation toContractorEvaluation of Quotes

Create Contract / Order

Evaluation of Quotes

Create Purchase Order Purchase Order

Update Cost

Delivery

Invoice

Payment

ReconcileGRN vs Invoice

Transfer Payment

Enter GRN(Goods Receipt Note)

Workflow Site Procurement



Cost Engineering, Applications for Payment

Cons t ruc t ion CompanyCl ient

Awarded Contract

S u b c o n t r a c t o r SA PRI B

Budgeted Cost of WorkScheduled (BCWS)

Awarded Contract

Value Reconciliation

Payment Certificate

Variations

Payment Transfer

Map Estimate to Activities

WBS/Activities

Primavera

Sequencing

Time-phased Estimate

Budgeted Cost of WorkPerformed (BCWP)

Actual Cost of WorkPerformed (ACWP)

Stage of

CompletionProgress Measurement

Application

Prepare Invoice

Valuation of Changes

Value Reconciliation

Payment Certificate

Change ManagementClient

Change Management

Subcontractor

Send Invoice

Accounting

Payment Transfer

Receive Payment

Execution of Work

Variations

Application

Prepare Invoice

Invoice

Receive Payment

Change Management

Cont ro l l ing / Forecas t



Great Brands , Grea t Rela t ionships

Joint Customers SAP/RIB





SAP & RIB

Path Forward

AGENDA



Value Pro to t yp ing Pow ered by Cen te r o f Exc e l l ence

• Bring your challenge to a lab and accelerate innovation!

Center of ExcellenceWalldorf - Palo Alto – Newtown Square – BangaloreMinsk -Sofia – Atlanta - Montreal - Gorinchem/NL

Service Level:Target price for fuzzy scope in 1 hourReady to start lab in 5 daysAccess to all lastest technologies and solutionsTangible results every 2 weeks

The high performance collaboration platform for customers, partners and SAP

to drive innovation from vision to reality.

Value Pro to t yp ingReduce risks and accelerate realization of value opportunities.

powered by Center of Excellence

Services:CoachesArchitectsExpertsSystems

SupportFacilityHelpdeskMethods

Contact:Secure your lab through the respecitive field representative, business unit or directly with the registration office

[email protected] + 49 170 22 00 156

“With the rapid prototyping and rapid implementation approach, the project was 3 times faster and 5 times cheaper than with the classical approach.” – Lars Radoor, Lego Supply Chain Executive

1,000+ prototypes over 6 years for customers from more than 25 countries and all industries

mailto:[email protected]

mailto:[email protected]



High Perfo rmanc e Col l abora t ion

Solutions•SCM Lab SRM Lab•CRM Lab SEM Lab•PLM Lab HCM Lab•Adaptive Manufacturing Lab•MDM & Data Cleansing Lab•Service Parts Mgt Lab

Technologies•Integration Lab

•High Performance Lab•BI Accelerator Lab•Composite Lab•Adaptive Computing Lab

Focus Areas•eSOA Lab•Duet Lab•RFID Lab•EP & Knowledge Mgt Lab•Analytics Lab

Industries•Automotive•Logistics Service Providers•...

Types•R&D Lab

•Beta Lab•Ramp-up Lab•Best Practice Lab

Methods•Proof-of-Concept Lab•Innovation Lab•Pilot Lab•Discovery Lab

Industries•Retail•Public Sector•Banking•Aerospace & Defense•...

Campaigns &Programs•Retool Lab (Bye-bye I2)•Retool Lab (Bye-bye Siebel)

Engagement teams bring the challenges to a lab Experienced coaches build the teams and guide them to success

The registration gurantees direct access to all capabilities

Project Labs

Satellite & Remote Project Labs

CustomerLab

CustomerLab

CustomerLab

CustomerLab

SAP Lab

SAP Lab

SAP Lab

SAP Lab

Partner Lab

Partner Lab

Partner Lab

Partner Lab

CustomerLab

CustomerLab

PartnerLab

PartnerLab

R e g i s t r a t i o n

Coaching

Solutions

Technologies

Industries

Capability Labs

Methodes

Systems

Support

Helpdesk Facilities

Capability LabsHub LayoutCapability Labs



Va l ue P ro t o t y p i ng A p p r o ac h e s & M e t h o d s

Classic Implementation

•Architecture and technology proven against key business challenges/opportunity•Touchable lab environment with strategic reference template on latest technology•Reduced technology risk, know-how risk, acceptance risk, budget risk•Easier scoping and effort estimation

Short-cut Implementation / Roll-out or Fast Deployment

•Processes proven against real-live data and operation•Touchable pilot environment with a reference process template•No technology risk, no know-how risk, acceptance risk, budget risk•Clear scope and effort to contract out-sourcing, off-shoring, hosting partners

Innova t ion Lab

P r o o f

& Q u a

l i f y

R e s e a r c

h & D e s i g n

D i s c o v e r

& E n v

i s i o n

C a p

t u r e

& P r o m o

t e

ThinkTank to Value max 6 weeks - 2-5 FTE

Pi lo t Lab

F i n e - t u n e

& C o n f i r m

P r e - c o n

f i g u r e

& V a l

i d a

t e

S c o p e

& A s s e s s

A n

i m a

t e & S i m u l a

t e

L o a

d & L a u n c h

LiveDrive to Value max 8-10 weeks – 2-5 FTE

L e a r n

& T r a n s f e r

L e a r n

& T r a n s f e r

From Vision to Concept !

From Concept to Reality !

Proof o f Concep t Lab ( Proof & Qualify )Proof & Qualify of a given solution outline/designmax 2-3 weeks with 2-5 FTE



Innova t ion Cent e r

Innovation Center10 MiniProjects of 50-150 man days and 3-4 iteration cycles of 2 weeks on average

Send your thought leaders with thevision & challenge to a Innovation Lab !(3 workshops of 1,5 days)

From Vision to Concept !

Have your power users validate thesolution in a Pilot Lab !(3-4 workshops of 1,5 days)

From Concept to Reality !

Give you IS competence team earlyaccess to the latest solutions &technologies as needed and desired !(workshop or full-time)

Gain Insight, Confidence and Speed in Innovation

Sample Topics:•“eSOA”•“The Perfect Plant”•“High Speed Analytics”•“Order-to-Cash”•“Strategic Procurement”, etc.

InnovationLab

PilotLab

PilotLab

Inn. Lab

PilotLab

Inn. Lab

PilotLab

Qualified Ideas

DeploymentQuality gate

…



Benef i t s o f Pro to t yp ing

Customers are more and more excited about the opportunity to use an ideal labenvironment and appreciate this highly value adding services

•To improve the decision making•To get the buy-in from stakeholders and power users•To reduce risk and total cost of implementation•To accelerate implementation and deployment•To develop scenario specific know-how efficiently

with•Limited initial investment and resource needs•Touchable results, control and exit points every 2 weeks•No need to freeze scope and gather detailed requirements up front•Time of customer key people limited to concentrate step stone workshops•Keeping the focus on the business challenge rather than on technology

Fas t , Predic t ab le Paybac ktime

cash

AccelerateTime-to-Benefit

ShorterPayback

Time

Reduce InitialInvestments

See ing i s Be l i ev ing



SAP Cen t e r o f Ex c e l l ence Trac k Rec ord

1,000+

prototypes over 6years

Customers frommore than 25

countries and allindustries

“With the rapid prototyping and rapid implementation approach, the project was 3 times faster and 5 times cheaper than a classical approach.” – Lars Radoor, Lego Supply Chain Executive

"With the rapid prototyping approach we were able to globally break into the logistics area... It reduced the engagement time and risk significantly... " – Gunther Fonteyne, Account Executive