SAP Commercial Project ManagementMake every project business a best-run business
© 2016 SAP AG. All rights reserved.
Agenda
Motivation
Processes and Scenarios
Functional Overviewü Project Workspaceü Project Cost and Revenue Planningü Project Issue and Change Management
Summary
Q&A
© 2016 SAP AG. All rights reserved.
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
3
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
data
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
chain
Connect myenterprise to people,
devices, businessand social networks
© 2016 SAP AG. All rights reserved.
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
© 2016 SAP AG. All rights reserved.
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
Monitor & ControlExecutePlanInitiate / Sell
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
© 2016 SAP AG. All rights reserved.
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 Cost andRevenue Planning
Project Issue and ChangeManagement
Project Workspace
Monitor & ControlExecutePlanInitiate / Sell
Opportunity Management, Contract Management, Billing, Project Structuring,Procurement, etc.
SAP Business Suite
SAP Commercial Project Management: Our Solution
Project Cost andRevenue Planning
Project Issue and ChangeManagement
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
© 2016 SAP AG. All rights reserved.
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
© 2016 SAP AG. All rights reserved.
Agenda
Motivation
Processes and Scenarios
Functional Overviewü Project Workspaceü Project Cost and Revenue Planningü Project Issue and Change Management
Summary
Q&A
© 2016 SAP AG. All rights reserved.
Commercial Project ManagementExample End-to-End Process
Selling Planning Execution
Create CRMopportunity
Create MasterProject
Review projectperformance
Recording ofactuals
Send Estimateto customer
CRM
Workspace
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
ERP
MonthlyForecasting
Fin. Planning
Monthly StatusReporting
Workspace
Trigger Billing
ERP SD
Review projectperformance
Workspace
1
2
3
4
7 8 9Create ChangeRequest
PICM / Fin. Plan.
10
11
12 13 14 15
16
17
Contract Setup
ERP SD6
Worksp.
Setup WBSstructure
ERP PS
5Worksp.
Worksp.
© 2016 SAP AG. All rights reserved.
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 FinancialPlanning
CPM Issue andChange Mgmt
CPM WorkspaceSAP ERP
CPMWorkspace
CPM, SAP ERP
C4C, SAP CRM
CPM FinancialPlanning
SAP MRS
SAP ERPConcur, SAPERP
CPM FinancialPlanning
CPM Issue andChange Mgmt
CPM WorkspaceSAP ERP
CPMWorkspace
CPM, SAP ERP
© 2016 SAP AG. All rights reserved.
Available CPM releases
SAP ERP SAP S/4HANA
CPM 1.0Minimum req: EhP6
CPM 2.0Minimum req: EhP7
FP01
CPM 1.0 for S/4H
Feature Package 01 = Support Package 04
Functionally nearly identical to CPM 2.0, SP02
© 2016 SAP AG. All rights reserved.
Agenda
Motivation
Processes and Scenarios
Functional Overviewü Project Workspaceü Project Cost and Revenue Planningü Project Issue and Change Management
Summary
Q&A
© 2016 SAP AG. All rights reserved.
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
© 2016 SAP AG. All rights reserved.
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
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
© 2016 SAP AG. All rights reserved.
Cross-project reporting
© 2016 SAP AG. All rights reserved.
Reporting on profitability
© 2016 SAP AG. All rights reserved.
Project Risk Management
© 2016 SAP AG. All rights reserved.
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)
© 2016 SAP AG. All rights reserved.
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
WBS
Cost /Revenue
NetworkActivity
Cost
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
BW-IP
Planning Engine
© 2016 SAP AG. All rights reserved.
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
…
© 2016 SAP AG. All rights reserved.
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
© 2016 SAP AG. All rights reserved.
Project Issue and Change ManagementOverview Business Process Flow
Cha
nge
Proc
essi
ngIs
sue
Proc
essi
ng
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
© 2016 SAP AG. All rights reserved.
Agenda
Motivation
Processes and Scenarios
Functional Overviewü Project Workspaceü Project Cost and Revenue Planningü Project Issue and Change Management
Summary
Q&A
© 2016 SAP AG. All rights reserved.
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
© 2016 SAP AG. All rights reserved.
Agenda
Motivation
Processes and Scenarios
Functional Overviewü Project Workspaceü Project Cost and Revenue Planningü Project Issue and Change Management
Summary
Q&A
© 2016 SAP AG. All rights reserved.
Q&A
© 2016 SAP AG. All rights reserved.
APPENDIX
© 2016 SAP AG. All rights reserved.
Architecture of SAP Commercial Project Management
Component Architecture
SAP Netweaver
SAP ERP
CPD*
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
CPM
ERP
SD & PS for fullfunctionality
PPM
cProMRS
CRM /C4C
On-
Dem
and
solu
tions
Res.
3rd
CRM
3rd
Doc.
Mgmt.
Optional 3rd Party
MandatoryOptional SAP (pre-built
integration)
CPM
Proj.
Scheduling
IAM
PICM
■ 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
© 2016 SAP AG. All rights reserved.
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
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
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
© 2016 SAP AG. All rights reserved.
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
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36
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