solution in detail engineering, construction, and operations commercial real estate

8/10/2019 Solution in Detail Engineering, Construction, And Operations Commercial Real Estate

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Solution in Detail

Engineering, Construction, and Operations

Commercial Real Estate

Executive Summary Solution Overview Contact Us

2013 SAP AG or an SAP affiliate company. All rights reserved.


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2 / 23 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Boost Your Real Estate Portfolio

To succeed during times of globalization, real

estate managers need to ensure compliance with

tenant, tax, and financial reporting regulations.

For example, operational leases have to be

accrued according to U.S. GAAP. And in the

future, once the planned new International

Financial Reporting Standards (IFRS) for leases

is deployed, you must be able to capitalize leases

for the balance sheet.

To achieve sustainability targets,you need a

way to carefully track the energy consumption of

commercial buildings, as well as accurately

allocate costs for energy consumption to tenants.

To fight competition, you need to make more

informed investment decisions regarding

construction and modernization projects. You

also need a way to monitor projects closely,

improve tenant relations, and standardize and

automate real estate processes to reduce

administrative overhead costs (for example,

for lease administration and maintenance).

SAP solutions help you by supporting compre-

hensive real estate lifecycle management.

They cover investment, construction, sales,

marketing, land ease, and space management,

maintenance, and more.

Higher operating margin for firmsin North America, Europe, the

Middle East, and Asia with an

enterprise-wide performance

management discipline

Source: SAP Performance

Benchmarking

Managing corporate real estate has long been low on the executive priority list.

But pressure to reduce operational spending and carbon footprints as well as strict

financial regulations, have changed this.Optimized Management

Portfolio Management

SAP Innovations

Improved Profitability


40%
https://valuemanagement.sap.com/disclaimer/https://valuemanagement.sap.com/disclaimer/https://valuemanagement.sap.com/disclaimer/


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To optimize investment and construction,

you need a way to analyze your property

portfolio, track investment decisions, handle

construction services bids and awards, monitor

projects and contractors, and manage cash.

Sales and marketing departments need

tools that drive campaigns for vacant space,

help them qualify leads, match spaceswith prospective tenants, process and track

concrete opportunities, and create lease offers.

Managing lease and space effectively demands

that you track approval workflows, post leases

according to accounting standards, escalate

rents, and settle rents and service charges.

You also need to track workplace occupancy

and automate moves and room reservations.

Optimizing maintenance and repair requires

that you monitor budgets, measure energyconsumption, recover expenses from common

area maintenance, and handle maintenance,

repair, and service orders.

SAP solutions address all of these activities

in an integrated way that supports end-to-end

processes.

Optimizing Real Estate Management

SAP solutions help improve investment decisions, reduce project risks, accelerate

lease-out processes, boost lease revenues, and control key dates. You can

increase workspace utilization, reduce maintenance overhead, improve energy

consumption reporting, and facilitate compliance with financial reporting standards.


Optimized Management


SAP Innovations


Best Run Engineering,Construction, and Operations
http://www.youtube.com/watch?v=67M584EVNPo


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For real estate managers, the benefits of end-to-end real estate lifecycle

management are enormous. You can increase return on investment by making

better decisions and reduce instances of overruns by controlling budgets.

You can reduce vacancies through faster lease-outs and increase revenues

by invoicing more accurately. SAP solutions also help you lower administrative

costs by automating processes and facilitating compliance, resulting in:

Improve Portfolio Profitability

Higher return on procurement, construction, and modernization investments

Reduced project risks

Fewer vacancies

Increased lease revenues

Faster energy reporting

Reduced administrative cost

Full compliance with financial reporting standards

36%Higher operating margin fororganizations using IT to

enable strategic and

competitive advantages


Benchmarking




SAP Innovations



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Integration between the SAP Customer

Relationship Management and SAP Real

Estate Management applications supports

close collaboration between sales and

marketing teams and lease administration staff.

SAP Real Estate Management also supports

activity planning for real estate units and makes

it easy to adjust sales gradings in leases. In

addition, it enables full Single Euro PaymentArea (SEPA) compliance and faster periodic

postings and reversals. Thanks to integration

with the SAP Common Area Maintenance

Expense Recovery application, its easier to

handle service charge settlements according

to North American and Australian business

practices (and based on tenant agreements).

You can prepare information for analysis

by migrating data from the SAP NetWeaver

Business Warehouse application powered

by the SAP HANA platform.

Mobile solutions powered by SAP Mobile

Platform support better work, service, and

inventory management, as well as efficient

auditing, approvals, and workflowmanagement. You can manage inspections

and maintenance rounds of on-site staff.

The SAP Real Estate Management rapid-

deployment solution enables a faster, better

implementation of core real estate processes.

SAP Innovations

With SAP solutions, you can consistently promote your retail, office, and residential

space. The solutions can help you identify the right offer more easily, provide fully

consistent lease abstracts, and create a validated, detailed contract offer.




SAP Innovations



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End-to-End Lifecycle Management

Property Portfolio Management

Analyze the real estate portfolio, track investment decisions, monitor projects, and

manage cash for adequate funding.

Lease and Space Management

Manage lease details, post leases according to accounting standards, escalate rents,

settle sales-based rents and service charges, and manage corporate workplace.

Posting Runs and Sustainability

Monitor budgets, handle work orders, recover expenses from tenants, and optimize

energy consumption.



Solution Overview



Why SAP?

Enterprise Asset Management


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The SAPsolution covers

investment planning to

maintenance for better decision

making, full budget control and

compliance, faster lease outs,

and reduced overhead.

Commercial Real Estate



Solution Overview



Why SAP?


Facility

Management

Investment

Lease

Administration

Accounting

Investment

Planning

Property

Acquisition

Master

Data

Real Estate

Search

Content

Offer

Rent

EscalationLease

Contingent

Rent

Service

Charge

Settlement

Space

Manage-ment

Master

Data

Move

Manage-ment

Room

Reservation Work Order

Energy

Reporting

Asset

AccountingProject

AccountingBudget

Cost

SettlementReceivables Payables

Cost

Settlement

Property Portfolio

Management

Run Postings

and Sustainability

Lease and Space

Management


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SAP solutions help you keep acquisitions and

construction projects on track. You can:

Collect and organize all investment ideas,

track approval steps, and analyze decisioncriteriaincluding costs, revenues, and

qualitative aspects

Create projects and track budgets, milestones,

deliverables, and delivery dates

Electronically invite bids from suppliers,

award contracts, handle purchase orders,

manage invoicing, and track planned,

committed, and actual costs

Manage land and building acquisition

agreementsincluding property details,

documents, postings, payments, workflows,

critical dates, and asset accounting

SAP solutions enable you to oversee

investment and construction of assets.

Decide whether, where, and when to

buy, construct, or lease propertyand

then monitor budgets, schedules, and

project scope.


14%Higher annual percentagesavings in indirect material

spend where multiple

suppliers are included in

eRFX and reverse auction

processes


Benchmarking

Capabilities

Property Portfolio

Management

Benefits

SAP Innovations

Solution Overview



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Investment planningfunctions enable you

to track all aspects of investment proposals,

approval workflows, and ongoing projects.

Property acquisition supports the acquisition

of land and buildings by helping you collect

all related documents, manage acquisitioncontracts, track their approval status, and

manage critical dates.

Construction management supports planning

and monitoring of construction projects,

including budgets, resources, milestones, work

packages, and procurement of construction

materials and services.

Master data management enables you to

maintain site, building, and land data. You

can also turn this data into visualizations using

CAD software and geographical information

systems.

Asset accounting supports the creation of

new assets so you can capitalize on acquisition

contracts and construction projects, as well as

post depreciation.

Vendor accounting enables you to post

vendor invoices against budgets and pay

open items.

14%Higher data accuracy if datawarehouse architecture is

continuously monitored and

enables easy extensions and

integration of new data


Benchmarking

Drive Better Investment Decisions


Capabilities

Property Portfolio

Management

Benefits

SAP Innovations

Solution Overview


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Now you can have insight into all investment

alternatives before you make a decision as

you explore different options with detailed

descriptions, pictures, maps, planned costsand revenues, and approval status.

Once you decide on an investment, you can

oversee all aspects of construction with full

control through functionality for tracking budgets,

resources, scope, and timelines. Its also faster

and easier to manage and collaborate with

suppliers, thanks to consistent bidding,

awarding, and purchase order processes.

You gain full control of all acquisition and

disposal agreements on land and buildings

by tracking all terms, conditions, and related

documents. You can also help ensure fullfinancial compliance by capitalizing property

acquisition and construction projects and

automatically executing depreciation postings.

And finally, you can create open items on

the vendor accounts of the landlords and

construction companies faster and easier,

as well as efficiently take care of payments.

Empower real estate managers to make

better investment decisions, reduce

project risk, improve the purchase of

construction services, and fully track

property acquisitions.

Invest Smarter and Monitor Projects More Closely

53%More employees use analyticaldata when given access to

advanced analytical tools

without dependence on IT


Benchmarking


Capabilities

Property Portfolio

Management

Benefits

SAP Innovations

Solution Overview


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Insert

image #here

The SAP Portfolio and Project Management

application makes it easier to manage

investment ideas, consistently align portfolio

planning with project definition and execution,and gain more insight into financial planning

and resource management.

The SAP Enterprise Project Connection

application provides an interface to legacy

project management solutions.

Innovations for Property Portfolio Management

The SAP ERP application helps you efficiently

manage data for large projects and plan dates

for plant maintenance, customer service orders,

and network activities simultaneously.

68%Higher operating margin forfirms in North America, Europe,

the Middle East, and Asia

with mature IT strategy and

business alignment practices


Benchmarking

SAP solutions enable better investment

planning and project management

for construction, modernization, and

refurbishment.


Capabilities

Property Portfolio

Management

Benefits

SAP Innovations

Solution Overview


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To help you efficiently manage leases and

space, SAP offers integrated, comprehensive

real estate lifecycle management solutions that

support:

Management of all lease details

Straight-lining of operational leases for

accounting purposes

Rent escalations based on price indexes

Settlement of sales-based rents for retail

tenants

Recovery of common area maintenance

expenses

Tracking of employee workspace and room

reservations

Payments from tenants to landlords

Planning and analysis of costs and revenues

from leases

Allocation of space utilization costs to cost

centers and projects

In a competitive environment, you need

to increase rental income and reduce

rental expenses while increasing

corporate workspace utilization. SAP

software helps you do all this and more.


14%Higher data completeness fororganizations with systems

that integrate internal, external,

structured, and unstructured data


Benchmarking

Capabilities

Lease and Space

Management

Benefits

SAP Innovations

Solution Overview



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Manage leases from contract closure to

termination, including payments, dunning,

installments, sales-based rent settlements, rent

escalations, and service charge settlements.

Lease management supportscomprehensive

lease tracking, timely lease postings, andmonitoring of critical dates and visualization in

CAD software.

Contingent rent enables the settlement of sales-

based rent agreements.

Rent escalationsupports consumer price

index rent adjustments, contingent-based rent

settlements, or other criteria.

Space managementfacilitates employeeworkspace assignments and space cost

allocations.

Move managementsupports move plans

development and employee room assignment

updates.

Room reservationsupports room planning,

including service delivery and cost allocations.

Cost accountinghelps you plan costs and

revenues, input activities, track actual cost and

revenues, and calculate figures.

Accounts receivables and payablesenable

the creation of invoices, payments, dunning,

and installments.

28%Lower IT spend whereorganizations have a

consolidated single solution

or platform landscape


Benchmarking

Manage Leases and Spaces Efficiently


Capabilities

Lease and Space

Management

Benefits

SAP Innovations

Solution Overview


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The benefits of this solution are far-reaching.

For example, you can lower costs from expense

leases and increase revenues from income

leasesall while reducing administrativeoverhead by automating rent calculations,

postings, and more.

Automation helps you invoice contingent rents

earlier (via automated calculation and settlement

processes) and escalate rents in a timely

manner (based on changes in the consumer

price index or other criteria).

Organizationally, its easier to manage corporate

workplaces, plan moves, and manage room

reservations. The software centrally tracks

workplaces and meeting rooms, the assignmentof employees and service orders, and more.

It also helps you efficiently create postings on

accounts receivables and payables, create

invoices, handle payments and collections, run

dunning procedures, create installment plans,

and withdraw open items. You can also quickly

allocate real estate costs and revenues to cost

centers, projects, and orders).

With this SAP solution, you can improve

lease performance and facilitate full

compliance with financial reporting

standards. Reporting functions help

you to make better lease management

decisions.

Deliver Higher Lease Performance and Space Utilization

14%Fewer days to close quarterlybooks if financial systems

support internal and external

accounting requirements


Benchmarking


Capabilities

Lease and Space

Management

Benefits

SAP Innovations

Solution Overview


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Insert

image #here

Applications

Lease administration functionality powered by

the SAP Real Estate Management application

gives people an enhanced user experience thatincreases efficiency. For example, its easier to

change organizational assignments, and

leveraging full support of the SEPA mandate,

they can automatically create real estate

contracts. Grading rules in sales-based rent

agreements can be readily updated via

automated adjustments.

Innovations in Lease and Space Management

Individual service charge settlementspowered

by the SAP Common Area Maintenance Expense

Recovery applicationcan be run faster and in

a compliant manner for customers.

Innovations enable a faster, more

efficient process for lease administration.


Capabilities

Lease and Space

Management

Benefits

SAP Innovations

Solution Overview


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SAP solutions help integrate, streamline, and

automate facilities operations, helping users

gain process and spending visibility.

The software can assist in monitoring budgets

via alerts and sophisticated reporting.

It helps create, process, and monitor

maintenance and repair orders using standard

processes that improve service levels.

The software can automatically process service

charge settlements, helping streamline

processes.

Users can access reports on energy consumption

and related costs for each facility, helping them

discover problems and implement cost-saving

measures.

The software can help allocate and recover

expenses for common-area maintenance from

tenants.

SAP solutions provide the tools needed to

enhance service levels while facilitating

commercial real estate property management.

Effective management of posting

runs can help prevent delays and

mismatches that cut into margins and

the bottom line. Automating manual and

paper-based processes saves time and

money for service-charge settlements.

The right support can also help

accurately track energy consumption

across multiple facilities.


30%Lower rework time whenmaintenance is streamlined

through the automation of

monitoring, notification, and

problem resolution processes


Benchmarking

Capabilities

Posting Runs and

Sustainability

Benefits

SAP Innovations

Solution Overview



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With SAP solutions, you can proactively and

efficiently manage maintenance, repairs, and

energy use.

Master data managementenables full tracking

of buildings and equipment so you can plan

maintenance and visualize master data with CADsoftware.

Work order functionsenable work order creation

based on ad hoc requests or maintenance plans.

Monitor work orders and check budget utilization

based on committed and actual costs.

Service charge settlementcalculates the

portion owed by a tenant based on time of

occupancy and energy consumption and posts

to tenant accounts.

Energy reportingtracks energy usage by

assigning meters to buildings and creating

measurement documents and compiled reports.

Budgetinghelps you control budgets and

avoid overruns via extensive monitoring.

Accounts payablesfunctions support vendor

invoice processing, including postings and

payments.

Cost accountinghelps you plan costs, input

activities, track revenue, and prepare key

statistical figures.

14%Lower forecast cycle timewhen plans, measurements,

and simulations are

continuous and based on

recent insights


Benchmarking

Manage Postings and Sustainability


Capabilities

Benefits

SAP Innovations

Solution Overview

Posting Runs and

Sustainability


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With SAP software, you can tightly control

maintenance spending by effective planning and

close monitoring of budgets via sophisticated

reporting and alerts. You can also use automatedwork order creation and service confirmation

tracking to manage maintenance, repair, and

service activities more efficiently.

This results in better asset management that

improves the overall state of your buildings and

equipment. For example, you can establish

preventive maintenance based on time and

usage intervals to head off issues.

You can improve operational efficiencies by using

automated vendor invoice processing to reduce

the overhead of invoice verification. And detailed

meter readings and automated consumptioncalculations and reporting help you produce

compliant energy reporting quickly and cost-

effectively.

You can recover expenses for common-area

maintenance from tenants in a faster, more

compliant way by tracking tenant individual

agreements and automating the settlement

procedure process.

Armed with integrated functions and

timely insight, you can proactively budget

projects, lower overhead costs, fulfill

service level agreements, and allocate

energy consumption by location.

Higher Asset Value Through Efficient EnergyManagement

35%Lower maintenance cost as apercentage of replacement

value when planning includes

skills, materials, tools, and job

instructions


Benchmarking


Capabilities

Benefits

SAP Innovations

Solution Overview

Posting Runs and

Sustainability


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Insert

image #here

Applications

SAP applications deliver key functionality to

optimize asset maintenance and repair. The SAP

Linear Asset Management application helps youmanage rails, pipelines, and cables. The SAP

Enterprise Asset Management solution makes

it easier to manage maintenance orders,

notifications, maintenance plans, task lists, and

more. The SAP Multiresource Scheduling

application makes it easier to align resources

for projects, maintenance, and service.

Innovations for Posting Runs and Sustainability

Visualizations

The 2D and 3D functionality in the SAP 3D Visual

Enterprise Viewer application and SAP

Enterprise Asset Management increase closurerates of maintenance notifications and increase

technician efficiency.

29%Lower annual service andmaintenance cost when all

facilities track the same key

performance indicators


Benchmarking

The SAP Commercial Real Estate

application and related solutions

support sustainability initiatives with

better maintenance and repair

management through linear asset

handling. The solutions provide

enhanced resource scheduling and

the real-time visualization of assets.


Capabilities

Benefits

SAP Innovations

Solution Overview

Posting Runs and

Sustainability


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Commercial Real Estate Value Map

The SAP solution covers

investment planning to

maintenance for better

decision making, full budget

control and compliance, faster

lease-outs, and reduced

overhead.


Commercial Real

Estate

Property

Portfolio

Management

Space

Management

Lease

ManagementPosting Run

Equipment and

Tools Management

Equipment

Planning and

Scheduling

Shipping and

Tracking

Pricing and

Billing

Asset Maintenance

and Facility

Operations

Asset Planning

and Scheduling

Mobile Asset

Management

Facility

Operations and

Maintenance

Service

Procurement

Spare Parts

Management


Solution Overview



Why SAP?



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Lower IT spend per employee

when organizations have a

single solution to manage

your business


Benchmarking

Why SAP?

SAP provides an integrated, complete real estate management lifecycle

management solution thats ideal for all types of real estate, including office,

retail, industrial, residential, and land assets.

Tight Integration Across a Complete Solution

SAP software provides a lower total cost of ownership than stand-alone point solutions thanks tonative integration with the SAP ERP Financials solution and the various applications providing

functionality.

Proven Real Estate Management Best Practices

Customers in more than 70 countries spanning all industries have successfully deployed our

solution.

Fast Time to Value for Core Real Estate ProcessesThe solution has been broadly adopted by leaders across industries and offers comprehensive

best practices that, when adopted, reduce time to value.


24%


Solution Overview



Why SAP?



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Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAPavailable free to SAP customers and select prospects.

The SAP benchmarking program has helped more than 3,000 organizations assess their

strengths, uncover areas for improvement, and identify best practices and IT strategies that

generate clear, tangible valuenot someday, but today.

Go Live in Weeks

Heres the fastest way to run your business better: our rapid-deployment solutions. In onepackage, you get everything you need to be up and running quickly including preconfigured

software and implementation servicesin just weeks. With a defined scope and predictable

costs, there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.

It lets members help one another solve problems, learn, and invent new ways to get things

donefaster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization CanBecome Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

https://valuemanagement.sap.com/http://www1.sap.com/solutions/rdshttp://www.sdn.sap.com/irj/scnhttp://www.sdn.sap.com/irj/scnhttp://www1.sap.com/solutions/rdshttps://valuemanagement.sap.com/https://websmp105.sap-ag.de/solutionpackages


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Solution in Detail

Engineering, Construction, and Operations Executive Summary Solution Overview Contact Us

Build more knowledge. Visit us online at:

http://www.sap.com/eco

http://scn.sap.com/community/engineering-construction-and-operations

http://www.sap.com/realestate

Also visit us on:

http://twitter.com/SAPConstruction

http://www.youtube.com/watch?v=c9PGkjiH0Cg&feature=related

CMP 24870 (13/06)

http://www.sap.com/ecohttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://twitter.com/SAPConstructionhttp://www.youtube.com/watch?v=c9PGkjiH0Cg&feature=relatedhttp://www.youtube.com/watch?v=c9PGkjiH0Cg&feature=relatedhttp://twitter.com/SAPConstructionhttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://scn.sap.com/community/engineering-construction-and-operationshttp://www.sap.com/eco


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