SAP Commercial Project Management Make every · PDF fileSAP Commercial Project Management Make...

SAP Commercial Project ManagementMake every project business a best-run business

Agenda

Motivation

Processes and Scenarios

Functional Overviewü Project Workspaceü Project Cost and Revenue Planningü Project Issue and Change Management

Summary

How can I better utilizemy products and

assets?

Assets andInternet of Things

Analyze sensor datafrom products, anddeliver outcome-

based experiences

Monitor assets on thefactory floor to

predict failure anddecrease downtime

Gain instant visibilityinto whereabouts ofin-transit materials todrive new scheduling

efficiencies

Business leaders need to digitally transform across fivekey pillars

How can I betterengage my workforce?

WorkforceEngagement

Attract and retaintalent by clearlycommunicatingbusiness impact

Enhance decisionmaking with a cross-device, personalized

user experience

Gain full visibility intocritical human

resource gaps toprevent business

disruption

How can I deliver anomnichannelexperience?

CustomerExperience

Omnichannel

Engage customersmore personally withone-to-one marketing

Personalize productsand offerings byslicing and dicing

customer data on thefly

Predict customerbehavior, and make

context-relevantproduct

recommendations

How can I increasesupplier collaboration?

Suppler Collaborationand

Business Networks

Extend businessprocesses, and

deliver new value tocustomers

Gain the flexibility tocustomize to

changing customerdemands in shorter

planning cycles

Orchestrateprofitability with real-

time sensing ofdemand-and-supply

How can I digitize mycore?

Core BusinessProcesses

Move away fromlengthy and time-consuming batch

processes

React quickly tomarket signals

happening in real-time across the value

Connect myenterprise to people,

devices, businessand social networks

Today’s challenges in managing customer projects orcapital investment projects

Project related data and processes are often distributed over multiple tools andapplications■ Many processes (e.g. Project estimation, Forecasting, Issue Management, Change

Management, Risk Management) are often done in Excel or in specialized 3rd partysolutions

■ The different tools and applications are often not or only poorly integrated with theEnterprise 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

SAP Commercial Project Management: Our solution

Monitor & ControlExecutePlanInitiate / Sell

SAP Business Suite / S/4HANAOpportunity Management, Contract Management,

Billing, Project Structuring, Procurement, etc.

ERP PS ERP SD ERP MM …

3rd partyscheduling

Primavera, MS Project

SAP EPC

Project Cost andRevenue Planning

Project Issue and ChangeManagement

Project Workspace

optional

Digitize project management processeswith 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

SAP Commercial Project Management: Business Priorities

General Managerü Increase

profitabilityü Ensure consistent

processesü Scale the business

Project Managerü Up-to-date and real-

time information onproject financials andproject progressü Reduce effort to

manually consolidatedata

Project Directorü Detect project

risks earlyü Transparent and

accurate statuson projects

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

SAP Business Suite

SAP Commercial Project Management: Our Solution

Project Workspace

Opportunity Management, Contract Management, Billing, Project Structuring,Procurement, etc.

SAP Business Suite

SAP Commercial Project Management: Our Solution

Project Workspace

Monitor & ControlExecutePlanSell

Opportunity Management, Contract Management, Billing, Project Structuring,Procurement, etc.

■ Connect the end-to-end front-office reality toa central and fully integrated ERP solution

■ Improve consistency of processes,transparency, accuracy, and control

■ Highly usable and flexible User Interfaces

Enterprise Portfolio and Project Management by SAPBuilding Blocks

Initiate Aggregate

“ Core enterpriseprocesses & Activities”Operations - Level

“ Project Managementand Execution”Tactical Level

“ Managing andmonitoring the portfolio& programs”Strategic Level

Sales & LogisticsSD/CRMPP/SCMMM/SRM

R&DPLMEHS

ResourcesHRMRSTime (CATS)

Financial DataProject SystemFI/CO

SAP CommercialProject Management

Financial PlanningWorkspaceIssue and ChangeManagement

SAP Project SystemProject Planning and ExecutionMonitoringProgress Tracking

Others

Portfolio Management Analytics

Integrate

Enterprise Portfolio and Project ManagementSAP Portfolio and Project Management

Agenda

Motivation

Summary

Commercial Project ManagementExample End-to-End Process

Selling Planning Execution

Create CRMopportunity

Create MasterProject

Review projectperformance

Recording ofactuals

Send Estimateto customer

Workspace

Control & Monitoring

Account Manager

Project Admin

Project Manager

Project Estimator

Project Director

Perform BidEstimate

Fin. Planning

Createpurchaseorder

ERP MM

Maintain projectteam members

Project riskassessment

Perform baseline planning

Workspace Workspace Fin. Planning

MonthlyForecasting

Fin. Planning

Monthly StatusReporting

Workspace

Trigger Billing

ERP SD

Review projectperformance

Workspace

7 8 9Create ChangeRequest

PICM / Fin. Plan.

12 13 14 15

Contract Setup

ERP SD6

Worksp.

Setup WBSstructure

ERP PS

5Worksp.

Worksp.

End-to-end process with SAP Commercial ProjectManagement

ProjectLifecycle

Client andProject

Acquisition

Bid Estimation

ResourceManagement

Project Setupand Planning

ProcurementTime andExpenses

Forecasting

Issue andChange

Management

WIP, Billing,Invoicing

Controllingand Analytics

C4C, SAP CRM

CPM FinancialPlanning

SAP MRS

SAP ERPConcur, SAPERP

CPM Issue andChange Mgmt

CPM WorkspaceSAP ERP

CPMWorkspace

CPM, SAP ERP

C4C, SAP CRM

SAP MRS

SAP ERPConcur, SAPERP

CPM Issue andChange Mgmt

CPM WorkspaceSAP ERP

CPMWorkspace

CPM, SAP ERP

Available CPM releases

SAP ERP SAP S/4HANA

CPM 1.0Minimum req: EhP6

CPM 2.0Minimum req: EhP7

CPM 1.0 for S/4H

Feature Package 01 = Support Package 04

Functionally nearly identical to CPM 2.0, SP02

Agenda

Motivation

Summary

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

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 newmaster 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

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

Cross-project reporting

Reporting on profitability

Project Risk Management

Project Cost and Revenue Planning – Key Features

Planning and forecasting ofquantities, costs and revenuesthrough 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 withERP PS

Support for cash flow planning

Flexible and user-friendly userinterfaces (support for planning withExcel)

Architecture Financial Planning

ERP PSProject

WBS 1 WBS 2

WBS 1.1 WBS 1.2

Network

Activity 1

Activity 2

ERP CO

Project Financial PlanningHierarchicalStructure

Cost /Revenue

NetworkActivity

WBS elements and network activitiesincluding date constraints

BW Cube

Resource Type Resource Rate Quantity Cost RevenuePlan Line Item 1 Labor Project Mgr 800 20 16.000 20.000

Characteristics Key Figures (by period)

SAP BusinessObjects Analysis for Excel

SAP ERP

MRSResourceRequest

cProjects ERP SD

Depending on assignedobject

Planning Engine

Project Cost and Revenue Planning: Project Managementand Controlling

CPM ERP CO

■ Operative planning by projectmanagers, project planners etc.

■ Excel UI

■ Flexible characteristics and key figures

■ User controlled versioning

- What-If Analysis, Simulations

■ Forecasting

■ Plan vs. Actual Comparison

■ Result Analysis (Revenue Recognition)

■ Reporting and Monitoring by costelements

Bid Versions Baseline

CurrentForecast SnapshotsSimulations

Version 1

Version 0

Transfer

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

Project Issue and Change ManagementOverview Business Process Flow

Issue Identified/Documentation

Clarification/RFI Evaluation

No change incost or time

Change incost or time

Executionof work

Change RequestIdentified /Documentation

Detailed CostEstimation ofChange Request

Archived foranalyticalpurpose

Issue not relevant

Internal/couldnot be settleexternal

Dispute ResolutionProcess

Impact on Time and additional costneed to be approved externally

ExternalApproval

Settlement ofChange Order

Approved ChangeOrder (items)

RejectedChange Order (items)

Project/BudgetUpdate

RevisedChange Order

Agenda

Motivation

Summary

SAP Commercial Project Management extendsS4/HANA resp. the SAP Business Suite andimproves the end-to-end process coverage ofcustomer projectsü User friendly and flexible user interface with focus on project

/ engagementü Easy integration into existing solution architecturesü Complete view on all project relevant aspects (resources,

financial planning, billing, procurement, status, issues,change management etc.)

Benefitsü Reduce cost-overruns of projects through increased insight

and controlü Reduce project risksü Enhance employee productivity

Language availability*ü English, Arabic, Chinese, Dutch, French, German, Japanese,

Korean, Portugese, Russian, Spanish, Turkish*as of December 2016

Agenda

Motivation

Summary

Thank you

Contact information:

Martin EffenbergerE martin.effenberger@sap.comT +49 6227 7 44166

APPENDIX

Architecture of SAP Commercial Project Management

Component Architecture

SAP Netweaver

SAP ERP

SAP Netweaver

Open architecture that supports different SAP ERPsolution architectures at the customer, e.g.■ Usage of SD & PS (for full functionality)■ Usage of SD only■ Usage of PPM Project Management (cProjects)■ Usage of C4C, SAP CRM or 3rd party CRM■ Usage of 3rd party scheduling solutions

SAP Netweaver

SD & PS for fullfunctionality

cProMRS

CRM /C4C

Optional 3rd Party

MandatoryOptional SAP (pre-built

integration)

Scheduling

■ Add-On CPD- 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

Functional Architecture

*CPD = Commercial Project Delivery

Mobile Project Inspection by MindtreeBased on SAP Commercial Project Management 1.0

Business Valueü Eliminate paperwork related to project inspections

ü Capture progress information accurately with Digital media(Photos/Video)

ü Manages supervisor schedule and calendar.

Business Valueü Eliminate paperwork related to project inspections

ü Capture progress information accurately with Digital media(Photos/Video)

ü Manages supervisor schedule and calendar.

Availabilityü iTunes (mInspect)ü SAP Store

Use Casesü Carry out project inspections, audit and checklists on mobileü Access project inspections, audit & checklists offlineü Report deviations from inspections digitallyü View, search & organize assigned inspectionsü Report any new issues found during inspections

Mobile Project Workspace by MindtreeBased on SAP Commercial Project Management 1.0

Use Casesü Carry out project inspections, audit and checklists on

mobileü Access project inspections, audit & checklists offlineü Report deviations from inspections digitally

Use Casesü Carry out project inspections, audit and checklists on

mobileü Access project inspections, audit & checklists offlineü Report deviations from inspections digitally

Business Valueü Provides Project managers and Execs real time data of

key project parametersü Draws manager attention to any critical project related

event providing alerts and trends and take actions onthem.

ü Access pre-built analytics for costs & revenue, Work inProgress, Earned Value etc

Business Valueü Provides Project managers and Execs real time data of

key project parametersü Draws manager attention to any critical project related

event providing alerts and trends and take actions onthem.

ü Access pre-built analytics for costs & revenue, Work inProgress, Earned Value etc

Availabilityü iTunes (mWorkspace)ü SAP Store

ü Use Casesü Browse all management related information of multiple

projectsü Get KPI values, alerts & trends of your projectsü Act on alerts & trendsü Deep dive into project analytics

ü Use Casesü Browse all management related information of multiple

projectsü Get KPI values, alerts & trends of your projectsü Act on alerts & trendsü Deep dive into project analytics

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