Siemens uses CA Clarity PPM for project management of R&D for wind, solar and hydro solutions

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1 CUSTOMER SUCCESS STORY Siemens uses CA Clarity PPM for project management of R&D for wind, solar and hydro solutions CLIENT PROFILE Industry: Energy Company: Siemens AG Employees: 82,000 Revenue: Siemens AG revenue ( 78.3bn) and Energy sector revenue ( 27.3bn) BUSINESS Siemens Energy develops energy solutions that support the reduction of CO2 emissions. Its portfolio of renewable energy includes solutions for wind power, photovoltaics, concentrated solar energy and marine turbines. CHALLENGE To support innovation and maximise the company s R&D resources, projects must be carefully selected and controlled. Disparate tools and time-consuming reporting means project management is lacking efficiency. SOLUTION CA Clarity PPM (Project & Portfolio Management) enables streamlined project approvals and simplifies reporting. Custom portlets and dashboards provide full visibility of project status costs and risks. BENEFIT Today, Siemens Energy can select, plan and execute R&D projects more efficiently and make better investment decisions. As a result, it develops and delivers the renewable energy solutions its customers need. agility made possible

2 Business Providing renewable energy solutions Siemens Energy aims to boost the efficiency of power generation and transmission technologies while substantially reducing CO2 emissions. Siemens Energy, a part of Siemens AG, includes six divisions in total. The Wind Power division is based in Hamburg and provides complete solutions for offshore, coastal and land-based wind power projects in response to the demand for clean energy production and growing global usage. Siemens Solar & Hydro division combines the photovoltaics business, the concentrated solar energy unit and the marine turbines unit. These divisions are headquartered in Germany, Israel and England. Challenge Enabling effective research and development Innovation and investment in the renewable energy sector will make the accessibility of electricity more affordable compared to fossil fuels. To ensure the maximisation of its investments, the company needs consistent research and development (R&D) processes. We needed a detailed view of our R&D projects to control our projects and portfolio efficiently. Dr. Christian Holland Siemens Energy Dr. Christian Holland at Siemens Energy comments, We need full visibility of our R&D investments to manage them effectively. In particular, we must be able to measure the success of every single project. Siemens Energy was using various different project and portfolio management solutions across its two renewable energy divisions, which lacked integration. As a result, the company did not have the transparency or single view of the truth that it needed. Reports were created using Microsoft Excel and PowerPoint, but they were time-consuming to produce and lacked consistency. 02

3 To improve the governance of its R&D activities, Siemens Energy embarked on a four-phase project which involved: 1. reviewing its existing solutions and understanding its project and portfolio management requirements 2. developing a strategy for project and portfolio management regarding its research and development activities and conducting a procurement process 3. selecting a centralised solution that would best meet the defined criteria 4. implementing and configuring the chosen solution Dr. Holland comments, We needed a software based solution that would standardise reporting thereby enabling us to react faster to differences in our project plans and make the necessary decisions. Furthermore we wanted to evaluate future projects regarding their chances of success and understand the financial impact. This includes cost, risk and return on investment. The flexibility of the product along with the right implementation partner were critical to realising our concept and ensuring the success of the project. Solution Centralised and standardised project management Siemens Energy embarked on a thorough investigation of the project and portfolio management products available. It screened more than 30 solutions before selecting CA Clarity PPM (Project & Portfolio Management). Project and portfolio management specialist itdesign assisted Siemens Energy with the implementation and configuration of the CA Technologies solution. As Dr. Holland explains, We discussed our concept with itdesign in every detail and specified the migration. itdesign not only provided technical advice but also assisted with creating individual custom portlets, views and charts. The solution partner also provided large-scale data analysis and detailed reports in PDF format. The workflow processes for R&D projects had to be created exactly the way we needed. itdesign s experience and expertise helped reduce risk and speed up the deployment. itdesign also offered training for Siemens Energy s system administrators and users on a train-thetrainer basis. Implementation started in July 2011, with the first phase of the project completed in September ready for the go-live. Around 160 members of staff from the R&D departments of Siemens Wind Power and Solar & Hydro divisions now work with CA Clarity PPM. The solution is used to track approximately 80 projects, for example, the development of receivers for solar solutions and wind turbines. 03

4 Enhanced visibility of project status, risks and budgets Innovation management at Siemens Energy Wind, Solar & Hydro starts with an idea being entered into CA Clarity PPM. Various criteria are used to rate this idea, such as technical targets, budget, timelines, risks and the involvement of external partners. This information supports the project agreement process, which requires approvals from various senior executives depending on the type of project and budget involved. 80 R&D projects are tracked with CA Clarity PPM Once a project is approved, the CA Technologies solution tracks its progress and delivers monthly reports. As Daniel Nadler, Project Manager at itdesign, explains, When projects require a budget increase or exceed the specified duration or technical targets are modified, a change request must be authorised. This gives the management team visibility of potential problems and can minimise the probability of failure. Project data is entered in real time, stored in the database and is directly available for analysis. Project managers get detailed information about project financials, such as actual costs, planned costs and expenses that are connected to the project. CA Clarity PPM delivers a graphical view of traffic light status, risks and milestones for each project via management dashboards. A cockpit view used by the Chief Financial Officer (CFO), Chief Technical Officer (CTO) and Project Management Officer (PMO) consolidates financial data across business units. The solution produces reports that show targets versus actual costs, deviations from specified time schedules, assessments of technical objectives, and mitigates risks for the entire project portfolio, explains Daniel Nadler. The reports also support quarterly reviews of the project. 04

5 To ensure data is accurate and consistent, CA Clarity PPM interfaces directly with SAP, Primavera and Microsoft Project Server. Now that the solution is successfully supporting Siemens Energy s project management processes, the company is extending its usage to facilitate idea management. Benefit Better project planning and delivery safeguard competitive advantage Siemens Energy has a consistent and standardised approach to approving, controlling, monitoring and reporting critical R&D projects. We have closed the gap between R&D strategy, our business goals, project approvals and ongoing review cycles in terms of technical, financial and time targets comments Dr. Holland. We have better visibility of projects and costs throughout the lifecycle, which means we can make better decisions. We have better visibility of projects and costs, which means we can make better decisions. Dr. Christian Holland Siemens Energy Using CA Clarity PPM has also helped Siemens Energy to: take advantage of best practice processes increase efficiency through automation and streamlined reporting processes enhance collaboration within and across business units Dr. Christian Holland comments, Using CA Clarity PPM, we are not only able to bring greater intelligence to project planning, but also execute each activity with greater efficiency and agility. 05

6 itdesign is a consulting company and has been a CA Technologies specialist partner for project and portfolio management since itdesign provides proven project management know-how to help IT and R&D organisations maximise their investments. itdesign develops extended solutions for CA Clarity PPM with its own modules called itd AddOns. For more information about itdesign, go to Copyright 2012 CA. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. The information and results illustrated here are based upon the speaker s experiences with the referenced software product in a variety of environments, which may include production and nonproduction environments. Past performance of the software products in such environments is not necessarily indicative of the future performance of such software products in identical, similar or different environments. CA does not provide legal advice. Neither this document nor any software product referenced herein serves as a substitute for your compliance with any laws (including but not limited to any act, statute, regulation, rule, directive, standard, policy, administrative order, executive order, and so on (collectively, Laws ) referenced herein or any contract obligations with any third parties. You should consult with competent legal counsel regarding any such Laws or contract obligations. This document is for your informational purposes only. CA assumes no responsibility for the accuracy or completeness of the information. To the extent permitted by applicable law, CA provides this document as is without warranty of any kind, including, without limitation, any implied warranties of merchantability, fitness for a particular purpose, or non-infringement. In no event will CA be liable for any loss or damage, direct or indirect, from the use of this document, including, without limitation, lost profits, business interruption, goodwill or lost data, even if CA is expressly advised in advance of the possibility of such damages. 06

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