SAP Solution BriefHigh-Performing Assets

For years managing facilities and real estate has been low on the priority list for senior management. But with the emphasis on cost cutting in today’s eco-nomic environment, even C-level execu-tives see this area of their business as an untapped source of potential cost savings, revenues, and sustainability improvements. And for good reason: • Real estate is one of the most costly

line items on a company’s list of fixed assets – in most cases, second only to payroll. Because most real estate managers rely on manual processes or fragmented data and systems, they can’t report accurately on these costs and help you make informed decisions that bring costs under control.

• If your company is acting as a com-mercial real estate manager, you’re likely under pressure to boost the profitability of those investments. This is no easy task, as new business models, new markets, and mergers and acquisitions mean frequent port-folio changes that may hinder effec-tive, holistic portfolio management.

• With rising energy prices, new corpo-rate social responsibility reporting demands, and requirements to comply with Leadership in Energy and Environ-mental Design (LEED) and other envi-ronmental standards, reducing energy consumption and CO2 emissions aren’t choices anymore – they are significant parts of the corporate strategy.

But without the right systems in place, addressing these challenges is extremely difficult. As long as real estate managers use manual, paper-based processes; spreadsheets; or fragmented data and systems to manage a dispersed property

portfolio and a complex network of in-ternal and external parties, it’s nearly impossible to have a consolidated view of your company’s entire real estate portfolio. There’s no opportunity to gain insight into processes and inefficiencies or to identify opportunities to reduce costs and meet sustainability targets. Nor can real estate managers maximize rev-enues by developing and reshaping their global property portfolio in a flexible way.

What’s needed is a way to integrate, automate, and unify all real estate–related data, business processes, and reporting to enable holistic real estate manage-ment. SAP® solutions work together to deliver the visibility and control you need to minimize facilities costs, facili-tate sustainable energy consumption, and make your property portfolio a more profitable area of the business – now and in the future.

Maximizing Returns on Your Property Portfolio

With integrated solutions from SAP, now you can manage the entire real estate lifecycle in a strategic way that optimizes returns for your business. The solutions, which you can implement incrementally or all at once, enable effec-tive investment planning as well as acquisition, construction, lease, space, facilities, and accounting management aligned with corporate objectives. They work together to give you a consolidated view of your entire real estate portfolio, insight into how and where you can cut costs, and support for streamlined pro-cesses that enhance customer service levels.

In a tough economy, you can’t afford failed real estate investments and uncontrolled costs. SAP® solutions let you integrate real estate lifecycle management for a consolidated view of your portfolio, gain insight into where to cut costs, and streamline processes that enhance customer service levels.

REAL ESTATE LIFECYCLE MANAGEMENTSOLUTIONS TO OPTIMIZE COSTS, REVENUES, AND COMPLIANCE

ensure that projects align with corporate strategy. This is possible because the software supports an integrated process linking investment planning, property acquisition, and construction project management. Now you can capture and analyze data to properly assess all investment alternatives and proposals. In addition, you can:• Manage all contract details, docu-

ments, postings, payments, and workflows associated with property acquisition

• Automatically turn investment deci-sions into projects

• Track budgets, milestones, bidding processes, deliverables, and delivery dates

• Instantly access up-to-date project and asset accounting

• Communicate electronically with suppliers

• Automatically make payments and re-ceive reminders for all critical dates

As a result, you benefit from full trans-parency across all investment alterna-tives, tight control over the acquisition process, complete project insight, and effective budget controls. You can also expect to save time and effort when collaborating with suppliers.

Native integration between SAP appli-cations – and the processes they sup-port – links different departments across your business. As a result, you can align the key stakeholders involved in your real estate lifecycle – including senior management, asset managers, property managers, and facilities man-agers – and enable them to:• Gain full insight into your property

portfolio• Increase the quality of your invest-

ment decisions • Manage construction projects within

budget• Keep facility management costs low• Align facilities operations with sus-

tainability goals• Increase corporate workspace

utilization

All software used to enable integrated real estate lifecycle management is highly scalable, so it can support your business processes regardless of your organiza-tion’s size or project complexity.

Collaborative, Integrated Real Estate Lifecycle Management

The SAP solutions enabling integrated real estate lifecycle management deliver functionality that supports investment management, project management, procurement, financials, asset manage-ment, real estate management, environ-mental compliance, and business intelli-gence. Taken together, this functionality can be deployed to optimize:• Acquisition and construction

management• Lease and space management• Facilities management

While each delivers value incrementally, the solutions are designed to work to-gether on a single platform to integrate, automate, and unify all real estate–related data, business processes, and report-ing – the key elements of holistic real estate management.

Acquisition and Construction ManagementManaging acquisitions and construction projects is among the most challenging aspects of real estate management. For example, how do you decide the right investment approach – whether, where, and when to buy, construct, or lease – and control project costs, com-pletion times, and delivered scope? And when you rely on paper-based pro-cesses, collaborating with suppliers and overseeing the bidding process are time-consuming activities, and you’re more likely to miss critical dates during property acquisitions.

SAP solutions help asset managers oversee acquisitions and construction projects of all sizes and types to keep them on track – while helping executives

With integrated solu-tions from SAP, now you can manage the entire real estate life-cycle in a strategic way that optimizes returns for your business.

The solutions, which you can implement incrementally or all at once, enable effec-tive investment planning as well as acquisition, construction, lease, space, facilities, and accounting management aligned with corporate objectives.

Lease and Space Management In this economy, you can’t afford bad lease performance, slow lease-out pro-cesses, and low utilization of costly corporate workspace. To improve lease performance and increase space utiliza-tion, you need a way to monitor costs and revenues, utilization, and critical dates in real time, as well as streamline key processes.

Integrated real estate lifecycle manage-ment solutions from SAP deliver a comprehensive way to address the challenges of lease and space manage-ment. The solutions enable you to:• Streamline tenant searches, manage

lease offers, and create leases automatically

• Establish periodic posting, rent esca-lation, and percentage rent manage-ment, complete with full integration into accounting

• Assign employees to space, plan moves, and manage room reservations

• Manage critical dates, such as lease renewals, via automatic reminders

• Use sophisticated reporting to achieve cost-effective management of properties

As a result, you can benefit from higher rental income and lower rental expenses, faster lease-outs, and better space man-agement. And by leveraging analytics and reporting, you can make more-informed lease and space management decisions – the key to optimizing port-folio management.

Facilities Management Facilities management is typically fraught with budget overruns that cut into margins – and ultimately hurt the

bottom line. And because facilities managers tend to use manual, paper-based processes, placing orders and processing invoices for repairs and maintenance services can be more time consuming and costly than neces-sary. At the same time, few companies can accurately allocate energy con-sumption across their various facilities– an increasingly important aspect of facilities management and cost control.

By enabling integrated real estate life-cycle management, SAP solutions help you streamline and automate facilities operations and increase process and spending visibility. Now you can:• Plan budgets (and monitor spending

against them) via alerts and sophisti-cated reporting

• Collaborate with suppliers electronically• Automatically process vendor invoices

and allocate costs via full integration with finance functions

• Create, process, and monitor mainte-nance and repair orders (including completion times and costs) using standard processes that enable higher service levels

• Capture energy consumption and emissions per facility

• Recover maintenance-related costs for common areas

Armed with integrated functionality and timely insight, you can keep projects within budget, lower processing costs, consistently fulfill service-level agree-ments, and allocate energy costs by location for more proactive cost management.

Key Benefits

SAP solutions offer important benefits that accompany integrated real estate lifecycle management. With these solu-tions in place, you can:• Save money: Now you can complete

projects on time and within scope and budget, gain full control of opera-tional spend with regard to real estate and facilities management, and in-crease efficiency through automated, integrated processes.

• Control energy consumption: The solutions enable full transparency of energy consumption (based on meter readings), as well as full cost account-ability for consumption, from cost settlement to originator.

• Gain complete portfolio insight: You benefit from control over your global investment planning process; faster, accurate reporting for better decision making; and close monitoring of all critical dates.

Software for Real Estate Lifecycle Management

Integrated software from SAP can pro-vide you with the functionality needed to enable comprehensive real estate lifecycle management. For more infor-mation about these solutions, contact your SAP representative or visit us on the Web at www.sap.com/solutions/executiveview.

SAP software works togeth-er to deliver the visibility and control you need to minimize facilities costs, facilitate sustainable energy consump-tion, and make your property portfolio a more profitable area of the business.

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Summary SAP® solutions enable holistic real estate management by integrating, automating, and uni-fying all real estate–related data, business processes, and reporting. Now you can have the visibility and control you need to minimize facilities costs, facilitate sustainable energy con-sumption, and make your real estate portfolio more profitable.

Business Challenges • Manage complex portfolios • Comply with changing legal requirements • Minimize operational costs• Boost revenues from real estate portfolios• Meet sustainability targets

Key Features• Acquisition and construction management – Analyze investment alternatives; manage

contract details, payments, and workflows; automate project setup; track budgets, mile-stones, and bidding processes; communicate electronically with suppliers; automatically make payments; and receive reminders for critical dates

• Lease and space management – Streamline real estate searches; manage lease offers; automatically create leases; establish periodic posting, rent escalation, and percentage rent management; manage critical dates; assign space usage; and run reports to enable better decisions

• Facilities management – Plan budgets and monitor spending; create and monitor mainte-nance and repair orders; collaborate with suppliers electronically; automatically process vendor invoices; and allocate and recover maintenance-related costs for common areas

Business Benefi ts• Reduced costs through more effective project management, full control of operational

spend, and increased efficiency enabled by automated and linked processes • Controlled energy consumption through full transparency and cost accountability for

consumption by location• Complete portfolio insight enabled by effective control of global investment planning

processes; faster, accurate reporting for informed decisions; and close monitoring of all critical dates

For More InformationTo learn more about how integrated software from SAP can help your organization, call your SAP representative today or visit us on the Web at www.sap.com/solutions/executiveview.