SAP Commercial Project Management Make every project business a best-run business

Transcription

1 SAP Commercial Project Management Make every project business a best-run business

2 Agenda Motivation Processes and Scenarios Functional Overview Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Summary Q&A

3 Business leaders need to digitally transform across five key pillars Assets and Internet of Things Customer Experience Omnichannel Core Business Processes Workforce Engagement Suppler Collaboration and Business Networks Analyze sensor data from products, and deliver outcomebased experiences Monitor assets on the factory floor to predict failure and decrease downtime Gain instant visibility into whereabouts of in-transit materials to drive new scheduling efficiencies Engage customers more personally with one-to-one marketing Personalize products and offerings by slicing and dicing customer data on the fly Predict customer behavior, and make context-relevant product recommendations Move away from lengthy and timeconsuming batch processes React quickly to market signals happening in realtime across the value chain Connect my enterprise to people, devices, business and social networks Attract and retain talent by clearly communicating business impact Enhance decision making with a crossdevice, personalized user experience Gain full visibility into critical human resource gaps to prevent business disruption Extend business processes, and deliver new value to customers Gain the flexibility to customize to changing customer demands in shorter planning cycles Orchestrate profitability with realtime sensing of demand-and-supply data How can I better utilize my products and assets? How can I deliver an omnichannel experience? How can I digitize my core? How can I better engage my workforce? How can I increase supplier collaboration? 3

4 Today s challenges in managing customer projects or capital investment projects Project related data and processes are often distributed over multiple tools and applications Many processes (e.g. Project estimation, Forecasting, Issue Management, Change Management, Risk Management) are often done in Excel or in specialized 3 rd party solutions The different tools and applications are often not or only poorly integrated with the Enterprise Management (ERP) backbone system This leads to the following challenges Lack of single version of the truth with different tools capturing redundant information Delays in reporting due to periodic synchronizations & manual reconciliation Missing transparency in the organization about the true status of the projects Missing ability to learn from previous projects for future projects Missing consistent change management with negative impact on the project margins Project Managers spend too much time with internally focused activities

5 SAP Commercial Project Management: Our solution Initiate / Sell Plan Execute Monitor & Control Project Cost and Revenue Planning Project Issue and Change Management Project Workspace optional SAP Business Suite / S/4HANA Opportunity Management, Contract Management, Billing, Project Structuring, Procurement, etc. ERP PS ERP SD ERP MM SAP EPC 3 rd party scheduling Primavera, MS Project

6 Digitize project management processes with SAP Commercial Project Management Integrated Project Cost Planning One single source of truth between financial system and project management system eliminating the need for reconciliation between the two systems Near real-time forecasting to achieve transparency on expected project outcome Financial planning and forecasting based on flexible planning model (cost, revenue, cash flow, productivity etc.) Single access to all project relevant data Integrated view on all aspects of a project (billing, procurement, cost planning, risks, issues, changes, documents, status reports etc.) Embedded Analytics including alert functionality for early identification of issues Transparent Issue and Change Management Change Management fully integrated with financial planning

7 SAP Commercial Project Management: Business Priorities Initiate / Sell Plan Execute Monitor & Control General Manager Project Director Project Manager Increase profitability Ensure consistent processes Scale the business Detect project risks early Transparent and accurate status on projects Up-to-date and realtime information on project financials and project progress Reduce effort to manually consolidate data

8 Typical customer pain points in project management Missing repeatability and transparency Due to their unique nature projects have a tendency to fail or to result in cost overruns. To avoid such failures one needs - Better possibilities to learn from previous projects - Increased transparency on the true status of the projects Financial Planning with Excel Financial Planning is often done out side the ERP system using Excel solutions for bid estimation, base line planning and forecasting. This results in - Cumbersome information exchange between controlling and project management - Missing process control - Poor data quality Internal focus of Project Managers Project Managers spend too much time with internally focused activities (often due to not adequate system support with multiple fragmented solutions) No proper change management Insufficient handling of change requests leads to reduced project profitability

9 SAP Commercial Project Management: Our Solution Initiate / Sell Plan Execute Monitor & Control Project Cost and Revenue Planning Project Issue and Change Management Project Workspace SAP Business Suite Opportunity Management, Contract Management, Billing, Project Structuring, Procurement, etc.

10 SAP Commercial Project Management: Our Solution Sell Plan Execute Monitor & Control Connect the end-to-end front-office reality to a central and fully integrated ERP solution Improve consistency of processes, Project Cost transparency, and Project accuracy, Issue and and Change control Project Workspace Revenue Planning Management Highly usable and flexible User Interfaces SAP Business Suite Opportunity Management, Contract Management, Billing, Project Structuring, Procurement, etc.

11 Enterprise Portfolio and Project Management by SAP Building Blocks Enterprise Portfolio and Project Management SAP Portfolio and Project Management Portfolio Management Analytics Managing and monitoring the portfolio & programs Strategic Level SAP Commercial Project Management Financial Planning Workspace Issue and Change Management Initiate SAP Project System Project Planning and Execution Monitoring Progress Tracking Aggregate Others Project Management and Execution Tactical Level Integrate Sales & Logistics SD/CRM PP/SCM MM/SRM R&D PLM EHS Resources HR MRS Time (CATS) Financial Data Project System FI/CO Core enterprise processes & Activities Operations - Level

12 Agenda Motivation Processes and Scenarios Functional Overview Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Summary Q&A

13 Commercial Project Management Example End-to-End Process Selling Planning Execution Control & Monitoring Account Manager Project Admin Project Manager Project Estimator Project Director CRM Create CRM opportunity Workspace 2 Create Master Project Fin. Planning Perform Bid Estimate 1 4 Send Estimate to customer Workspace Workspace Fin. Planning Maintain project Project risk Perform base team members assessment line planning 3 ERP PS Worksp. Setup WBS structure 5 ERP SD Worksp. 6 Contract Setup ERP MM Create purchase order 10 Workspace Fin. Planning Workspace ERP SD Worksp. PICM / Fin. Plan Review project Monthly Monthly Status Create Change Trigger Billing performance Forecasting Reporting Request ERP Recording of actuals 11 Workspace 16 Review project performance

14 End-to-end process with SAP Commercial Project Management CPM Workspace SAP ERP WIP, Billing, Invoicing CPM Issue and Change Mgmt Issue and Change Management CPM Financial Planning CPM Workspace Forecasting Concur, SAP ERP Controlling and Analytics Project Lifecycle Time and Expenses Client and Project Acquisition Procurement C4C, SAP CRM Bid Estimation Project Setup and Planning Resource Management CPM Financial Planning SAP ERP CPM, SAP ERP SAP MRS

15 Available CPM releases Feature Package 01 = Support Package 04 FP01 CPM 2.0 Minimum req: EhP7 CPM 1.0 Minimum req: EhP6 CPM 1.0 for S/4H Functionally nearly identical to CPM 2.0, SP02 SAP ERP SAP S/4HANA

16 Agenda Motivation Processes and Scenarios Functional Overview Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Summary Q&A

17 System demonstration Project Workspace Cross-project reporting Integrated view on all aspects of the project (role based) Embedded analytics (actual vs. plan comparison, earned value management) Project management functions (risk management, status reporting, roles&responsibilities, alerts etc.) Project Cost and Revenue Planning Planning of quantities, costs and revenues using an Excel UI Seamless planning from bid to execution Highly flexible and configurable planning model Project Issue and Change Management Management and tracking of issues and changes Powerful activity management Integrated with cost and revenue planning

18 Project Workspace Key Features Provide an integrated view of the project Bundling of existing business objects (e.g. C4C or CRM opportunity, SD order, PS project, cproject) via new master project object Fiori applications for cross-project reporting Real-time insight into the business performance 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 Project Risk Management Status Reporting & Trends Milestones & Checklists Rule based Alerts Roles & Responsibilities Reporting Attributes Contract Management Enhancements Rate Card Application Billing Plan Manager Billing Cockpit

19 Cross-project reporting

20 Reporting on profitability

21 Project Risk Management

22 Project Cost and Revenue Planning Key Features Planning and forecasting of quantities, costs and revenues through the complete project lifecycle High-level estimates in bid stage based on bid structure Detailed baseline cost and revenue plans Forecasting and ETC processes during project execution Support for planning resources, materials, expenses and 3rd party Tight bi-directional integration with ERP PS Support for cash flow planning Flexible and user-friendly user interfaces (support for planning with Excel)

23 Architecture Financial Planning SAP BusinessObjects Analysis for Excel Hierarchical Structure SAP ERP Project Financial Planning BW Cube Characteristics Key Figures (by period) Resource Type Resource Rate Quantity Cost Revenue Plan Line Item 1 Labor Project Mgr BW-IP Planning Engine MRS Resource Request WBS elements and network activities including date constraints Depending on assigned object cprojects ERP SD ERP PS ERP CO Project WBS WBS 1 WBS 2 Cost / Revenue WBS 1.1 WBS 1.2 Network Activity 1 Activity 2 Network Activity Cost

24 Project Cost and Revenue Planning: Project Management and Controlling CPM ERP CO Operative planning by project managers, project planners etc. Excel UI Flexible characteristics and key figures User controlled versioning - What-If Analysis, Simulations Forecasting Plan vs. Actual Comparison Bid Versions Baseline Transfer Result Analysis (Revenue Recognition) Reporting and Monitoring by cost elements Version 1 Forecast Snapshots Simulations Current Version 0

25 Project Issue and Change Management Key Features 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

26 Project Issue and Change Management Overview Business Process Flow Change Processing Issue Processing Issue Identified/ Documentation Change Request Identified / Documentation External Approval Impact on Time and additional cost need to be approved externally Detailed Cost Estimation of Change Request Clarification /RFI Evaluation Change in cost or time Internal/could not be settle external Approved Change Order (items) Issue not relevant Project/ Budget Update No change in cost or time Archived for analytical purpose Execution of work Revised Change Order Dispute Resolution Process Rejected Change Order (items) Settlement of Change Order

27 Agenda Motivation Processes and Scenarios Functional Overview Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Summary Q&A

28 Summary SAP Commercial Project Management extends S4/HANA resp. 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.) Benefits Reduce cost-overruns of projects through increased insight and control Reduce project risks Enhance employee productivity Language availability* English, Arabic, Chinese, Dutch, French, German, Japanese, Korean, Portugese, Russian, Spanish, Turkish *as of December 2016

29 Agenda Motivation Processes and Scenarios Functional Overview Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Summary Q&A

30 Q&A

31 Thank you Contact information: Martin Effenberger E martin.effenberger@sap.com T

32 APPENDIX

33 Architecture of SAP Commercial Project Management Component Architecture Functional Architecture Proj. Scheduling CPM Mandatory Optional SAP (pre-built integration) Optional 3 rd Party CPD* PICM Doc. Mgmt. CPM SAP ERP SAP Netweaver Add-On CPD IAM SAP Netweaver - Workspace and Financial Planning - Based on SAP ERP Add-On PICM - Project Issue and Change Management - Based on SAP Netweaver and IAM (Issue and Activity Management) Can be deployed on same system or separately *CPD = Commercial Project Delivery CRM 3rd Res. 3rd CRM / C4C MRS 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 ERP SD & PS for full functionality SAP Netweaver Usage of PPM Project Management (cprojects) Usage of C4C, SAP CRM or 3rd party CRM Usage of 3rd party scheduling solutions PPM cpro On-Demand solutions

34 Mobile Project Inspection by Mindtree Based on SAP Commercial Project Management 1.0 Availability itunes (minspect) SAP Store Business Value Eliminate paperwork related to project inspections Capture progress information accurately with Digital media (Photos/Video) Manages supervisor schedule and calendar. Use Cases Carry out project inspections, audit and checklists on mobile Access project inspections, audit & checklists offline Report deviations from inspections digitally View, search & organize assigned inspections Report any new issues found during inspections

35 Mobile Project Workspace by Mindtree Based on SAP Commercial Project Management 1.0 Availability itunes (mworkspace) SAP Store 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 and trends and take actions on them. Access pre-built analytics for costs & revenue, Work in Progress, Earned Value etc Use Cases Use Browse Cases all management related information of multiple projects Carry out project inspections, audit and checklists on mobile Get KPI values, alerts & trends of your projects Access Act on alerts project & inspections, trends audit & checklists offline Report Deep dive deviations into project from analytics inspections digitally

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