Manage Customer Projects from Bid-to-Execution with SAP Commercial Project Management
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1 Manage Customer Projects from Bid-to-Execution with SAP Commercial Project Management Dr. Martin Effenberger, Yvonne Waibel Solution Management ASUG Session 2205
2 Agenda Motivation Processes and Scenarios Functional Overview (including system demonstration) Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Mobile Applications Summary & Outlook Q&A
3 End2End Scenario Engineering-to-Order (ETO) Overview Opportunity, Quote & Contract Management Project Management & Engineering Project Driven Manufacturing, Procurement & Logistics Project Financials Project Management Project Structuring Resource Requirement Planning Project Planning Project Execution Controlling & Forecast Sales Opportunity & Quote Management Negotiation and Contract Management Project Billing Engineering Concept Development Detailed Engineering & Design Change Management Change Management (Sales & Engineering & Production) Project Costing and Simultaneous Costing Production, Planning & Operation Procurement, Shipping & Assembly Manufacturing & Sourcing Investigations Vendor Inquiry Project driven Production Planning and Scheduling Project driven Procurement Manufacturing Execution Shipping & Transportation Quality Planning & Control Assembly & Start-Up
4 End2End Scenario Engineering-to-Order (ETO) Areas affected by SAP Commercial Project Management Opportunity, Quote & Contract Management Project Management & Engineering Project Driven Manufacturing, Procurement & Logistics Project Financials Project Management Project Structuring Resource Requirement Planning Project Planning Project Execution Controlling & Forecast Sales Opportunity & Quote Management Negotiation and Contract Management Project Billing Engineering Concept Development Detailed Engineering & Design Change Management Change Management (Sales & Engineering & Production) Project Costing and Simultaneous Costing Production, Planning & Operation Procurement, Shipping & Assembly Manufacturing & Sourcing Investigations Vendor Inquiry Project driven Production Planning and Scheduling Project driven Procurement Manufacturing Execution Shipping & Transportation Quality Planning & Control Assembly & Start-Up
5 SAP Commercial Project Management: Business Priorities Sell General Manager Increase profitability Ensure consistent processes Scale the business Plan Project Director Detect project risks early Transparent and accurate status on projects Execute Monitor & Control Project Manager Up-to-date and realtime information on project financials and project progress Reduce effort to manually consolidate data
6 SAP Commercial Project Management: Our Solution Sell Plan Execute Monitor & Control Project Cost and Revenue Planning Project Issue and Change Management Project Workspace SAP Business Suite Opportunity Management, Contract Management, Billing, Project Structuring, Procurement, etc.
7 SAP Commercial Project Management: Our Solution Sell Plan Execute Monitor & Control Connect the end-to-end front-office reality to a central and fully integrated ERP solution Improve consistency of processes, Project Cost transparency, and Project accuracy, Issue and Change control Project Workspace Revenue Planning Management Highly usable and flexible User Interfaces SAP Business Suite Opportunity Management, Contract Management, Billing, Project Structuring, Procurement, etc.
8 Agenda Motivation Processes and Scenarios Functional Overview (including system demonstration) Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Mobile Applications Summary & Outlook Q&A
9 Commercial Project Management Example End-to-End Process Selling Planning Execution Control & Monitoring Account Manager Project Admin Project Manager Project Estimator Project Director CRM Create CRM opportunity Workspace 2 Create Master Project Fin. Planning Perform Bid Estimate 1 4 Send Estimate to customer Workspace Workspace Fin. Planning 7 Maintain 8 9 Maintain project Perform base reporting team members line planning attributes 3 ERP PS Worksp. Setup WBS structure 5 ERP SD Worksp. 6 Contract Setup ERP MM Create purchase order 10 Workspace Fin. Planning Workspace ERP SD Worksp. PICM / Fin. Plan Review project Monthly Monthly Status Create Change Trigger Billing performance Forecasting Reporting Request ERP Recording of actuals 11 Workspace 16 Review project performance
10 Agenda Motivation Processes and Scenarios Functional Overview (including system demonstration) Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Mobile Applications Summary & Outlook Q&A
11 System Demonstration 1. Project Workspace 2. Project Cost and Revenue Planning 3. Project Issue and Change Management
12 Project Workspace Key Features Provide an integrated view of the project Bundling of existing business objects (e.g. CRM opportunity, SD order, PS project, cproject) via new master project object Embedded analytics E.g. Cost Status Report, WIP Report, Progress Report Configurable views dependent on user role Pre-defined views for Project Commercials, Procurement etc. Enhanced Project Management Status Reporting & Trends Rule based Alerts Roles & Responsibilities Reporting Attributes Contract Management Enhancements Rate Card Application Billing Plan Manager Billing Cockpit
13 Project Cost and Revenue Planning Key Features Planning and forecasting of quantities, costs and revenues through the complete project lifecycle High-level estimates in bid stage based on bid structure Detailed baseline cost and revenue plans Forecasting and ETC processes during project execution Support for planning resources, materials, expenses and 3rd party Flexible and user-friendly user interfaces (support for planning with Excel)
14 Architecture Financial Planning SAP BusinessObjects Analysis for Excel Hierarchical Structure SAP ERP Project Financial Planning BW Cube Characteristics Key Figures (by period) Resource Type Resource Rate Quantity Cost Revenue Plan Line Item 1 Labor Project Mgr BW-IP Planning Engine MRS Resource Request WBS elements and network activities including date constraints Depending on assigned object cprojects ERP SD ERP PS ERP CO Project WBS WBS 1 WBS 2 Cost / Revenue WBS 1.1 WBS 1.2 Network Activity 1 Activity 2 Network Activity Cost
15 Project Issue and Change Management Key Features Project Issues Attachments Link to reference objects (e.g. SD orders, WBS elements) Assignment of partner roles Change Requests Creation with reference to one or multiple issues possible Change Document History Collective Change Requests Activity Management Activity Management for Issues and Change Requests Activities can be based on templates or can be freely defined Flexible rule definition to create new activities Approval processes Internal and external approvals Integration with Financial Planning Multiple Cost Estimation Alternatives per Change Request supported
16 Project Issue and Change Management Overview Business Process Flow Change Processing Issue Processing Issue Identified/ Documentation Change Request Identified / Documentation External Approval Impact on Time and additional cost need to be approved externally Detailed Cost Estimation of Change Request Clarification /RFI Evaluation Change in cost or time Internal/could not be settle external Approved Change Order (items) Issue not relevant Project/ Budget Update No change in cost or time Archived for analytical purpose Execution of work Revised Change Order Dispute Resolution Process Rejected Change Order (items) Settlement of Change Order
17 Mobile Project Inspection by Mindtree Based on SAP Commercial Project Management 1.0 Availability itunes (minspect) SAP Store Business Value Eliminate paperwork related to project inspections Capture progress information accurately with Digital media (Photos/Video) Manages supervisor schedule and calendar. Use Cases Carry out project inspections, audit and checklists on mobile Access project inspections, audit & checklists offline Report deviations from inspections digitally View, search & organize assigned inspections
18 Mobile Project Workspace by Mindtree Based on SAP Commercial Project Management 1.0 Availability itunes (mworkspace) SAP Store in progress Business Value Provides Project managers and Execs real time data of key project parameters Draws manager attention to any critical project related event providing alerts and trends and take actions on them. Access pre-built analytics for costs & revenue, Work in Progress, Earned Value etc Use Cases Browse all management related information of multiple Use Cases projects Carry out project inspections, audit and checklists on mobile Get KPI values, alerts & trends of your projects Access Act on alerts project & inspections, trends audit & checklists offline Report Deep dive deviations into project from analytics inspections digitally
19 Agenda Motivation Processes and Scenarios Functional Overview (including system demonstration) Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Mobile Applications Summary & Outlook Q&A
20 SAP Commercial Project Management rapid-deployment solution SAP Commercial Project Management rapid-deployment solution Provides cross-industry best practice integrated E2E content through the entire project management business process cycle: selling, planning, execution and control & monitoring. Accelerates and guarantees SAP Commercial Project Management implementation and offers consequent TCI savings. Content Preconfigured best practices processes content for Project Workspace, Cost and Revenue Planning as well as Issue and Change Management Automated activation of the your selected scope of the preconfigured content Services Clear fixed price predefined and modular scope options that guarantee go-live in weeks. This allows to Adapt the offered preconfigured scenarios to your needs Enhance the Workspace, PFP and PICM according to your requirements Integrate SAP Commercial Project Management with your installed base Pre trained consultants. And proven implementation approach Enablement How to guides for creating extra functionalities Project accelerators and ready to use assets for the project team
21 Further information n Blog Links to recorded Webinars Links to documentation Registration to upcoming Webinars Etc. n Rapid-deployment solution: n Detailed product documentation:
22 Summary SAP Commercial Project Management extends the SAP Business Suite and improves the end-to-end process coverage of customer projects User friendly and flexible user interface with focus on project / engagement Easy integration into existing solution architectures Complete view on all project relevant aspects (resources, financial planning, billing, procurement, status, issues, change management etc.) Benefits Increase profitability of projects through increased insight and control Reduce project risks Enhance employee productivity Language availability* English, German, Spanish, French, Japanese, Portugese, Russian, Chinese *as of September 2013
23 Agenda Motivation Processes and Scenarios Functional Overview (including system demonstration) Project Workspace Project Cost and Revenue Planning Project Issue and Change Management Mobile Applications Summary & Outlook Q&A
24 Q&A
25 Thank you Contact information: Martin Effenberger E martin.effenberger@sap.com T
26 APPENDIX
27 Architecture of SAP Commercial Project Management Component Architecture Functional Architecture Proj. Scheduling New solutions Mandatory Optional SAP (pre-built integration) Optional 3 rd Party CPD* PICM Doc. Mgmt. New solutions SAP ERP EhP6 SAP Netweaver 7.31 New Add-On 1 (CPD) IAM 1.0 SAP Netweaver Workspace and Financial Planning - Based on SAP ERP 6.0 EhP6 New Add-On 2 (PICM) - Project Issue and Change Management - Based on SAP Netweaver 7.31 and IAM (Issue and Activity Management) Can be deployed on same system or separately *CPD = Commercial Project Delivery CRM 3rd Res. 3rd CRM MRS Open architecture that supports different SAP ERP solution architectures at the customer, e.g. Usage of SD & PS (for full functionality) Usage of SD only Usage of cprojects ERP EhP6 SD & PS for full functionality SAP Netweaver Usage of SAP CRM or 3rd party CRM Usage of 3rd party scheduling solutions PPM cpro On-Demand solutions
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