Commercial Project Management

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1 Solution in Detail R&D Engineering Executive Summary Contact Us Commercial

2 Deliver More for Less More for Less Efficiency Companies that sell projects often need to professionalize core business processes to scale their business model for each job and deliver more for less. Profitability 80% of companies report a lack of seamless integration between project and resource management systems Source: SAP Performance Benchmarking To professionalize their customers project business processes, companies need to improve process efficiency, increase process transparency, and optimize overall project profitability. Relevant data about projects, however, is often spread across different systems. Such systems typically have low end-user acceptance, as well. 2 / 31 This means that decisions may be based on inaccurate or outdated data. Rather than steering the project and making correct decisions, project managers and project controllers wind up spending too much time searching for information. Ultimately, such organizations lack transparency into project status, changes, and their impact on project costs and budget overruns. SAP solutions can help you to control and speed up your customer project-related business processes and optimize project efficiency and profitability.

3 Efficient Commercial Delivery More for Less Efficiency Control all aspects of your commercial project business and speed up processes by combining functions and merging data from various applications and systems. Profitability Efficient execution of commercial projects requires robust project management functionality along with tight integration and visibility into all relevant data and processes. Maintaining accurate project information and real-time transparency into financial data, project progress, and issues, and being able to anticipate the impact of potential changes are essential ingredients for sound business decisions. effectiveness also depends on the productivity of the professionals involved. To improve productivity and efficiency, project participants must be empowered to focus on their business tasks instead of spending time searching for and collecting relevant information. SAP solutions help companies to reduce project failure rates and increase effectiveness by managing project scopes, timelines, and budgets with tight integration and greater transparency. 3 / 31

4 Commercial Profitability More for Less Efficiency Profitability Companies can increase project efficiency and profitability by integrating and aligning business processes with project planning and providing real-time transparency into relevant data and processes. Flexible, intuitive interfaces allow business users to take advantage of applications such as using Microsoft Excel, for example, for financial planning to improve productivity. Integrate management of customer projects across applications and systems 73% Of organizations have limited ability to collaborate with contractors and customers to track project risks from identification to resolution Source: SAP Performance Benchmarking Enhance real-time transparency into critical activities, project progress, and items such as change requests and potential budget overruns Enhance productivity of team members and project professionals Increase accuracy and traceability of bid estimates and baseline plans 4 / 31

5 More for Less Efficiency Profitability Advanced analytics enable real-time transparency into commercial project portfolio health. Flexible project workspaces and planning and mobile apps differentiate the user experience and improve productivity. Accelerated business processes improve project effectiveness. Analytics solutions provide flexible dashboards, including tabular and graphical representations, to enable insights into the health of complete project portfolios and individual customeroriented projects. Flexible project workspaces are tailored to the needs of project professionals and their roles, and provide real-time access to accurate data across project-related objects and applications. Tools for estimating, planning, and forecasting costs, revenues, and quantities integrate with the SAP ERP application and leverage business intelligence functionality and Microsoft Excel user interfaces. Flexible planning processes and powerful analytics improve efficiency and differentiate the user experience. Mobile solutions provide access to commercial project and portfolio information and improve user productivity. 5 / 31

6 Optimize Commercial Profits Portfolio Issue and Change Resource Financials Enterprise Portfolio and Why SAP? Portfolio Manage and monitor commercial project portfolios. Manage commercial projects throughout the lifecycle by integrating functions across applications and systems. Issue and Change Manage and monitor project-related issues, change requests, and their financial impact. Resource Plan and level commercial project-related resource demands along priorities, resource availabilities, skills, and costs. Financials Unify management of project quantities, costs, and revenues throughout the project lifecycle. 6 / 31

7 Solution Process Map Portfolio Planning Selling and Evaluation Planning Execution, Issue, and Change Billing, Forecasting, and Closing Portfolio Issue and Change Resource Portfolio Manager Account Manager Portfolio Define Portfolio/ KPIs Long- Term Planning Create Opportunity Decision Send Quotation Issue and Change Portfolio Analysis Resource Portfolio Analysis Portfolio Analysis Financials Financials Enterprise Portfolio and Why SAP? Back Office Manager Create Master / Item Create Contract Create Detail Master / Staffing/ PO Creation Resource /Material Planning Procurement Monitor Progress Issue Clarification Create Change Request Approve Change Request Billing Closing Controller Create Estimate Costing/ Create Baseline Adopt Cost Plan Forecasting Team Member Time Recording Create Issue 7 / 31

8 Portfolio Portfolio SAP solutions help you monitor and control customer-oriented project portfolios to improve transparency and optimize efficiency. Companies running cost- and resourceintensive customer-oriented projects often lack insight into the overall commercial project portfolio. SAP supports commercial project portfolio management with functionality for long-term planning of financials and capacities, decision-making support, and monitoring potential and ongoing projects on a portfolio level. The SAP Portfolio and application helps you align projects with your portfolio strategy, reduce project failure rate, and increase overall project portfolio profitability. 8 / 31

9 Do the Right s Portfolio The SAP Portfolio and application enables you to monitor and control customer-oriented project portfolios and align them with your enterprise strategy and available resources. Long-term planning and capacity functionality, comparison with actual data and available resources, and rich analytical functionality provide transparency into your commercial portfolio for ongoing and potential projects. Decision process support through questionnaires and scoring models helps you select the right projects and reduce project failure rate. 9 / 31

10 Increase Commercial Portfolio Profitability Portfolio Selecting projects based on resources available and transparency into projects and opportunities helps you execute on the right projects and increase portfolio profitability. For resource- and capital-intensive commercial projects, executing on the right projects is key to optimizing the overall profitability of the commercial portfolio. Using questionnaires and scoring models, the SAP Portfolio and application supports your decision-making processes based on the technical feasibility and risks of projects. The application enables sound long-term planning and plan-actual comparisons for ongoing and potential projects. Portfolio analytics provides transparency into the commercial project portfolio and enables you to take timely corrective measures. 10 / 31

11 Innovations for Commercial Portfolio Portfolio Gain real-time transparency into commercial project portfolio health with advanced analytical dashboards and mobile apps. Silicone Silicone Insert image # here 20% Higher availability of realtime insights into business processes for organizations that use analytics to track strategic KPIs Source: SAP Performance Benchmarking Analytics solutions with flexible dashboards, including tabular and graphical representations, enable insights into the health of complete project portfolios, including customer-oriented projects. You can compare long-term financial and capacity demands with detailed plans for project opportunities and actuals for ongoing projects, and analyze defined key performance indicators (KPIs). Mobile solutions offer alternative access options for commercial project portfolio information. You can provide the right level of information and enable decision making with up-to-date portfolio information delivered in real time to mobile devices. 11 / 31

12 Commercial SAP solutions enable commercial project management and improve efficiency and transparency across the lifecycle of customer projects. SAP solutions, including the SAP Commercial application, SAP ERP application, and SAP Portfolio and application, enable enterprise commercial project management. SAP solutions help you handle customer projects throughout the lifecycle with accurate data and functionality integrated with enterprise applications and systems. The solutions enhance employee productivity and increase project profitability with real-time insights and control of project processes. 12 / 31

13 Doing s Right 86% Lower finance costs for expertise subprocesses when organizations focus on accurate planning and forecasting Source: SAP Performance Benchmarking Success depends on recognizing and taking advantage of opportunities early. But crucial data often is spread across systems, planning activities are decoupled from execution, visibility is lacking, and end-user application acceptance is low. The result is poor employee productivity and reduced project profitability. SAP solutions, including SAP Commercial, SAP ERP, and SAP Portfolio and, improve transparency and provide robust and mature project management tools for project planning and execution. Workspace functionality enables you to bundle existing business objects related to customer projects, such as opportunities and documents, for an integrated view across systems and applications. SAP solutions help you reduce project failure rates by managing project scope, timelines, and budgets to enhance the productivity of team members. 13 / 31

14 Optimize Profitability SAP solutions enable commercial project management and help optimize project efficiency, improve productivity, and increase profitability. With integrated project management, planning, and enterprise processes and the use of accurate, real-time data, the software helps you to execute commercial projects efficiently. You can better manage commercial projects to reduce failure rates and keep within scope, on time, and on budget. Advanced, flexible, and user-friendly workspaces and monitoring tools help you integrate data across applications and systems. professionals can spend less time searching for relevant data and more time on value-added tasks, increasing the productivity of team members. By optimizing project efficiency and enhancing employee productivity, you can increase overall project profitability. 14 / 31

15 Innovations for Commercial Flexible project workspaces enable data access and analysis, and mobile solutions improve business-user productivity. Insert image # here 40% Higher employee productivity when mobile access is provided to employees across all levels of the enterprise Source: SAP Performance Benchmarking Flexible project workspaces tailored to the needs of project professionals and their roles provide real-time, accurate data across projects and individual project aspects. Your business users can access project-related objects, including opportunities, sales documents, purchasing documents, issues, and change requests. Mobile solutions provide flexible, real-time access to commercial project data and support the use of various mobile devices. Professionals can use smartphones and tablets to enable decision making while traveling or during meetings with customers. 15 / 31

16 Issue and Change Issue and Change SAP Commercial, option for issue and change management, helps you manage projectrelated issues and change requests, and reduce the number of unapproved changes. With project issue and change management functionality, you can document, clarify, and track project-related issues as well as change requests. The functionality integrates with SAP Commercial, option for cost and revenue planning. Activity management functionality helps you further clarify issues and support approval processes. SAP software helps you reduce unapproved project changes and increase the profitability of your projects. 16 / 31

17 Manage Issues and Changes Issue and Change The SAP Commercial application, option for issue and change management, enables you to capture, document, and bundle all project-related issues and change requests. It supports issue clarification and approval processes with activity management functionality. Integration with project-financial planning functionality enables you to plan alternative changes to project costs and revenues based on change requests. issue and change management functionality helps you reduce unapproved changes, increase the productivity of project professionals, enhance transparency into project issues and potential cost overruns, and increase the profitability of your projects. 17 / 31

18 Reduce Unapproved Changes Issue and Change Our project issue and change management functionality enables you to document and control your projectrelated issues and change requests, along with their financial impacts. SAP Commercial, option for issue and change management, enables you to systematically record and clarify project issues, manage change requests, and understand their financial impact. You can reduce inefficient manual and spreadsheet-based processes and get an overview of all project changes and their impact on project cost and budget overruns. The application helps speed issue clarification and change approval processes, reduce unapproved changes, and improve project profitability. 18 / 31

19 Innovations for Issue and Change Issue and Change Enhance transparency into project issues and change requests and optimize project change processing. Insert image # here Differentiate the user experience for documenting, clarifying, and approving project-related issues and changes. Reduce unapproved project changes and accelerate approval processes for project changes. Enable transparency into project-related issues and change requests and their potential impact on projects with enhanced analytics and functionality for mobile devices. 19 / 31

20 Commercial Resource Resource SAP solutions enable commercial project management and help you optimize resource utilization, avoid resource bottlenecks, and streamline staffing and procurement processes. A lack of resources focused on high-value projects and inefficient staffing and procurement processes can result in resource bottlenecks and utilization issues and increased operating costs. SAP solutions enable closedloop resource control, from high-level capacity planning to detailed time entry and resource consumption. Integrated resource demand-planning, projectplanning, and costing functionality and support for staffing and project-driven procurement processes enable you to optimize resource management and significantly reduce operating costs. 20 / 31

21 Effective Resource Handling Resource SAP solutions help you specify the demand for resources required during project execution according to the project schedule, work planned, and quali-fications required. You can identify suitable internal and external resources, and staff project resource demands according to resource availabilities and skills. Integration with processes including HR, procurement, and accounting helps you avoid redundant data maintenance and streamlines resource planning and time recording processes. With the solutions, you can manage project resources and perform advanced staffing activities. You can optimize resource utilization, avoid resource bottlenecks, and significantly reduce operating costs. 21 / 31

22 Resource Reduce Operating Costs Through Efficient Resource Reduce operating costs by optimizing resource utilization, avoiding resource bottlenecks during project execution, and streamlining staffing and procurement processes. SAP solutions help you plan project resources and align demand with project financial planning, project schedule, and qualifications required for accurate resource assignment along priorities, skills, and costs. Advanced and efficient staffing and procurement processes and increased visibility into current status, availability, and criticality of project resources help avoid resource bottlenecks and utilization issues affecting project profitability and operating costs. 22 / 31

23 Innovations for Commercial Resource Resource Improve resource management efficiency and transparency through improved planning and analysis. Insert image # here Flexible, spreadsheet-based resource demand planning and costs and revenue data is integrated with the SAP Multiresource Scheduling application. Cost and revenue data is automatically derived from resource planning information and not entered individually. Planning and analytics functionality and highly granular plan-actual comparisons enable improved efficiency and transparency. 23 / 31

24 Commercial s Financials Financials SAP Commercial, option for cost and revenue planning, can increase project profitability via accurate bid estimates, project financial plans and forecasts, and improved traceability. Finance functionality in the SAP Commercial application enables project controllers to estimate, plan, and forecast quantities, costs, and revenues for customer projects throughout the project lifecycle. The unified, flexible, and user-friendly interface enables processes from bid stage to baseline planning to execution. Integrated with project planning, execution, issue and change management, and enterprise accounting, finance functionality helps you improve estimating, planning, and forecasting accuracy and provides transparency into cost drivers, deviations, and productivity. 24 / 31

25 Efficient Financial Data Handling Financials Inaccurate financial planning and estimating and nonintegrated planning tools can result in inaccurate project data and cumbersome data synchronization activities. Finance functionality in the SAP Commercial application provides a unified financial planning application for all processes along the lifecycle, including resource, material, expense, and revenue management. Powerful bidding functionality lets you transfer high-level estimates into detailed project costing and baselines. During project execution, planned costs and revenues form the basis for forecasting and other processes as well as monitoring project financials. The flexible, user-friendly interface uses a Microsoft Excel front end and advanced versioning and analysis functionality. It integrates with the SAP ERP application and resource planning functionality for effective, accurate financial data management. 25 / 31

26 Increase Financial Data Accuracy Financials Efficient, integrated project financial data management increases the accuracy of project estimates, financial plans, and forecasts and improves project profitability. Finance functionality in the SAP Commercial application provides flexible, user-friendly tools for consistent handling of project financial data along the project lifecycle. Integrated project planning, execution, accounting, and resource planning enables efficient project financial data control and a high level of data accuracy. This allows increased visibility into bid estimates and baseline plans in comparison with actuals. Accurate project financial data improves visibility into cost drivers and project productivity and profitability. Early insights into financial deviations enable you to take corrective measures in time and optimize project profitability. 26 / 31

27 Innovations for Commercial s Financials Financials estimation, planning, and forecasting functionality integrates with SAP ERP and differentiates the user experience. Insert image # here 22% Lower cycle time for forecasts when online forecasting models are accessible globally for analysis Source: SAP Performance Benchmarking SAP Commercial, option for cost and revenue planning, provides flexible planning and analysis functionality that improves end-user experience through integration with SAP ERP. Throughout the project lifecycle, business users can employ a single tool to estimate, plan, and forecast quantities, costs, and revenues on a monthly, weekly, or daily basis. The definition of bid structures and resources, additional characteristics for planning, and valuation and data transfer strategies provide a new level of planning customization and highly granular plan-actual comparisons. 27 / 31

28 Enterprise Portfolio and Value Map Portfolio Continuous Product and Service Innovation Idea Portfolio Resource Enterprise Connection Issue and Change Capital Portfolio and Asset Portfolio Capital Monitoring Capital Investments Resource Financials Commercial Portfolio Issue and Change Resource Financials Enterprise Portfolio and Why SAP? IT Portfolio and Portfolio and Resource 28 / 31

29 Why SAP? Portfolio SAP Commercial provides configurable, flexible business tools and user interface. The application integrates and improves the efficiency of business processes along the project lifecycle and helps optimize profitability. Issue and Change Resource Financials Enterprise Portfolio and Why SAP? Transparent Across the Lifecycle Bring together data and functions across applications and systems for optimized management of customer-oriented projects. Enable long-term portfolio planning, bid and opportunity management, project planning and execution, and handling of changes, billing, and closure. Process and User Efficiency Monitor and control project-related business processes leveraging SAP Business Suite software and highly flexible and user-friendly workspaces. Leveraging Technology Innovations Benefit from the latest planning innovations, user interfaces, and mobile solutions. 29 / 31

30 Find Out More About How Your Organization Can Become Best-Run Benchmark Your Performance Position your organization for dominance in this new economy with the business performance benchmarking program from SAP available 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 value not someday, but today. Go Live in Weeks Here s the fastest way to run your business better: our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly including preconfigured software and implementation services in just weeks. With a defined scope and predictable costs, there are no surprises. Join Your Community of Practices Visit valuemanagement.sap.com >> Visit sap.com/solutions/rds >> 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 done faster. Find out how to connect with people, content, and resources. Visit scn.sap.com >> 30 / 31

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