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1 Premier Partner: Supported by: Produced by:

2 David Beach Partner Pro PPM (USA) An Overview Portfolio and Project Management Functionality

3 The Evolution of Project Management Tools: The 80 s Tools of Trade Plan Meetings Phone Calls Paper Forms Manual Signatures IT Limit Prepare/Store Mastering Project & Portfolio Management with SAP

4 The Evolution of Project Management Tools: The 90 s Advancement of Tools Process Tools Process Analysis Electronic Forms PMO Office Standards LAN Directories Mastering Project & Portfolio Management with SAP 2012

5 The Evolution of Project Management Tools: The 00 s Social Media / ianything Visual Design Simple User Friendly Project Management Standards ERP Best Practices

6 Main Message Big Change! Real Fast! Web Based Everything. Many Project Management Fads Come and Gone. Mid Point Things Got Too Complex, Many Costly Mistakes, Processes Broke Down, Systems Became to Costly. The Industry Got Smart, Learned and Improved and Finally Has Matured. SAP PPM and Other Applications are the Result. Capitalize of This History of Project Management Software Evolution.

7 David Beach, Pro PPM, SAP Project Systems / PPM 17 Years SAP as Project Systems and PPM Independent Telecommunications Utility (water, electric) Legal Pharmaceutical Hi Tech Manufacturing Automotive (R&D) Music and Entertainment Mining Chemical Manufacturing Engineering and Construction Public Sector Non Profit (NGO) Mastering Project & Portfolio Management with SAP

8 Pro-PPM USA Pro - PPM Firm USA Based that Specializes in SAP Project Systems and PPM. Pro-PPM Tom Martin (Last Year s Key Note Speaker) Resources with experience implementing: PPM experience spans all product releases of PPM (xrpm, cprojects) Project Systems veteran SAP resources that started in the early 90 s Business experience as portfolio and project managers Mastering Project & Portfolio Management with SAP

9 What I ll Cover What is a Portfolio and Project Management system (PPM)? Who are the competitors? Industry Evaluations? Why SAP PPM vs. Standalone Third Party PPM? PPM Realization Methods? PPM Industry Best Practice Examples How Industries are Using PPM. PPM Technical Architecture and How it Integrates to Other Modules and Applications Key Functionality Overview / Where ROI can be Realized. Mastering Project & Portfolio Management with SAP

10 SAP Project Systems The Good Stuff Brings together project accounting and logistics that is fully integrated in real time. Built in Information System with drill down to source documents Scalable solutions that fit all projects in any industry. Centralized transactions Project Builder and Planning Board, single transaction to accomplish most project functions. The Not So Good Stuff Difficult to use and screens not optimally user friendly Time consuming process for planned projects No portfolio integration Too much detail, difficult to focus on areas that need attention Too many options available, confuses users. Large training and retraining required. Mastering Project & Portfolio Management with SAP

11 SAP Responds, PPM is Created xrpm and cprojects the original names. SAP renamed xrpm to PPM (Portfolio and Project Management) to align with the industry name. SAP is on the 4 th release (worked through the bugs and expanded functional offerings). Current Version PPM 5.0: SAP has focused on input from customers and industry product rankings. Industry specific solutions available, including rapid deployment Mastering Project & Portfolio Management with SAP

12 ECC Project Pain Points Lack of insight into project pipeline Decision making process is not transparent Limited project resources Inaccurate project and resource forecasts (rolling forecast concept missing) Lack of project and capacity visibility No portfolio visibility, cost control and profitability ECC PS information overload, lost in details Project managers spending too much time in PS, not enough time project managing Lack of training, lack of available skilled resources with PS Incomplete project data, large exceptions to process Too many places to go to accomplish job functions Too many options in ECC transactions Departments created just to do SAP PS functions Mastering Project & Portfolio Management with SAP

13 What is Portfolio and Project Management Project Management User Friendly Transactions Folders Collaboration Resource Management Single Source Portfolio / Project Portfolio Management Focus on Issues (No Info Overload) Dashboards ECC Integration Future Planning / What If BI/Portal Integration Integrated ECC, Portal, BI

14 Portfolio and Project Management Volumes of transactional data behind the scenes Focus attention to where attention needs to be focused Visual design of screens and transactions important to accomplish above Single method to execute transaction not a 100 ways to do something Eliminated learning curve, execution self explanatory Project managers can be project managers, not project administrators Portfolio managers can be strategic, not number crunchers Using portal iviews embedded from PPM to other SAP transactions (ie. BI reports, ECC transactional views* [dev]) Mastering Project & Portfolio Management with SAP

15 Forrester PPM Industry Evaluation The Forrester Wave : Project Portfolio Management, Q SAP 4.5 Solution Received Top Marks and Ranked in Its Top Tier Forrester defines the top tier to be CA, Oracle, HP, SAP, and Planview Mastering Project & Portfolio Management with SAP

16 Gartner Group Industry Evaluation Magic Quadrant for IT Project and Portfolio Management Specific to managing IT projects "Existing SAP customers can leverage SAP as a single source for portfoliolevel reporting with emphasis on costbenefit analysis.. Weakness identified, not suited if not an existing SAP customer. Mastering Project & Portfolio Management with SAP

17 Report References The Forrester Wave : Project Portfolio Management, Q by Margo Visitacion and Tim DeGennaro for Application Development & Program Management Professionals. Full report available at or SAP has license copy available on their website Magic Quadrant for IT Project and Portfolio Management. Gartner RAS Core Research Note G , Daniel B Stang, 7 June 2010 Full report available at Look for more current analysis and reports are recommended Mastering Project & Portfolio Management with SAP

18 Why SAP PPM? SAP Portfolio and Project Management is top rated by industry Bottom line: Benefits of a fully integrated, real time based system. Third party systems for PPM and ECC: Costly interface. Leads to reduced scope and not so real time information. The entire point of PPM is to give senior, portfolio and project managers information in time so that action can be effective. Why get into software development and interface a third party to ECC PS? ECC Project Systems due to multi level, multi objects creates complication to interface return of third party system diminished due to loss of real time and interface development and maintenance. Mastering Project & Portfolio Management with SAP

19 Resource Management There are 5 levels of Resource Management in SAP Portfolio Bucket Portfolio Item High-level planning offers strategic forecasting and scenario planning Detailed planning offers task assignment and qualification Project Role Project Resource Qualifications Mastering Project & Portfolio Management with SAP

20 Bose Corporation INFORMATION TECHNOLOGY REQUEST FOR CHANGE Mastering Project & Portfolio Management with SAP

21 Business Process The purpose of the Request for Change (RFC) Process is to collect and deliver information to the respective project review board to disposition proposed and monitor approved projects The review board dispositions based on business value and resource availability Project Management IT-PRB IT-PRC Project Management/ Business Close Project Go Live And Support (Go Live and Support) Finalize solution (Final Prep.) Test solution (Realization) Business or Service Units Identify improvement opportunity PPMO Built Solution (Realization) Design Solution (Blueprint) Engagement Management/ Solution Architect Create project proposal Approve project proposal Charter project Approve project charter Plan Project (Project Prep.) Project Management IT-PRC IT-PRB Project Management IT-PRB IT-PRC Mastering Project & Portfolio Management with SAP

22 Portfolios Mastering Project & Portfolio Management with SAP

23 Project Item and Questionnaires Mastering Project & Portfolio Management with SAP

24 Capacity and Financial Planning Mastering Project & Portfolio Management with SAP

25 PPM RESOURCE MANAGEMENT Mastering Project & Portfolio Management with SAP

26 Resource Management There are 5 levels of Resource Management in SAP Portfolio Bucket Portfolio Item High-level planning offers strategic forecasting and scenario planning Detailed planning offers task assignment and qualification Project Role Project Resource Qualifications Mastering Project & Portfolio Management with SAP

27 Resource Management: Portfolio Level

28 Resource Management: Item Level Mastering Project & Portfolio Management with SAP

29 Resource Management: Project Level Mastering Project & Portfolio Management with SAP

30 Resource Management: Multi-Resource Scheduling 18 Month Project Manager Capacity vs. Demand Balanced by Cross-Project Scheduling Tools Use sub-contractors to plug short term gap and start hiring to meet future demand Use overcapacity to train new project managers Ramp-up New Hires Hard Book Individual Resources Soft Book Individual Resources Understand Risk Adjusted Pipeline Demand for Role-Level Capacity Planning Today Time Sold Committed Pipeline Mastering Project & Portfolio Management with SAP

31 Resource Management: MRS Planning Board Mastering Project & Portfolio Management with SAP

32 Reporting Mastering Project & Portfolio Management with SAP

33 BMS RESOURCE MANAGEMENT Mastering Project & Portfolio Management with SAP

34 Business Application: BMS Capital Planning and Budgeting Project Lifecycle Automatic AFE Approval Processing SAP / ECC Integration Integrated with Project Systems and Investment Mangement Mastering Project & Portfolio Management with SAP

35 Dashboard and Configurable Gate Reviews Mastering Project & Portfolio Management with SAP

36 Cost Benefit and Adobe Form Approvals Mastering Project & Portfolio Management with SAP

37 Approval Web Work Flows and Audit Trails Mastering Project & Portfolio Management with SAP

38 Approval Triggers ECC Project Creation Final Approval Triggers Automatic Project Creation in PS, Networks and Activities Fully Populated Mastering Project & Portfolio Management with SAP

39 iviews to ECC SAP Transactions Monthly, Quarterly Projections Recorded in Custom iview Mastering Project & Portfolio Management with SAP

40 PPM RESOURCES AND TECHNICAL Mastering Project & Portfolio Management with SAP

41 Organization Aligned To Third Party Application If SAP ECC runs your company, reconsider as with any interfacing strategy your company is faced with: Costly custom development. Error prone, difficult to achieve real time information. Often leads to duplicating some job functions. SAP Enterprise Project Connection Application Integrates SAP project (ECC PS and/or SAP PPM) data with external third party PPM systems. Example Primavera P6 Or scenario if you don t have ECC project systems. Eliminate custom development in exchange for configuration. System of ownership object concept Reduce Errors and cost of ownership Mastering Project & Portfolio Management with SAP

42 PPM Architecture PPM 5.0 (Also Available As Ready to Run Rapid Deployment) SAP NETWEAVER 7.0 EHP1, EHP2 or EHP3 or SAP NETWEAVER 7.3 EHP1 Support Stack SAP enhancement package 5 for SAP ERP 6.0 Mastering Project & Portfolio Management with SAP

43 Portfolio and Project Management Resources SAP Press Portfolio Management with PPM and cprojects Mastering Project & Portfolio Management with SAP

44 Technical Information Important with any SAP function or application to implement to read the OSS FAQ s to assist in your PPM project cost proposal: Note FAQs - SAP Portfolio and Project Management 5.0 Note : Administrator Personalization Web Dynpro ABAP PPM 5.0: Performance Sizing SAP Portfolio and Project Management, Version 5.0. December PPM 5.0: Supported Browsers, Java versions, etc. Mastering Project & Portfolio Management with SAP

45 Workshop Further details to be provided in the workshop: Detail review of BMS Capital and R&D Portfolio and Project Process Detail review of Bose IT Capital Change Request Management Process Interactive Workshop Solution Architect Your PPM System Mastering Project & Portfolio Management with SAP

46

47 How to contact me: David Beach Pro-PPM Phone DavidDonaldBeach

48 Premier Partner: Supported by: Produced by:

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