Solution in Detail Oil and Gas Executive Summary Contact Us Planning, Building, and Commissioning Assets 2013 2014 SAP SE or an SAP affiliate company.
Effective Management of Asset Development Managed Asset Development Control of Portfolios Operational Excellence Appropriate prioritization and sound resource management are vital for effective asset development. Without this, oil and gas organizations can suffer from operational inefficiency and poorly integrated processes. Achieving an appropriate ROI is critical for commercial success. This makes asset management a core competency for the industry. To optimize capital investments, organizations must objectively select, approve, direct, and administer capital project portfolios. They must select, prioritize, and execute projects and manage related resources, as well as cost and budget data, effectively throughout the capital project lifecycle. However, relevant project data is often spread across disparate systems with business decisions made based on information that is neither timely nor accurate. Companies can improve efficiency by incorporating effective project controls and collaboration tools, increasing process transparency and optimizing overall project profitability. Establishing an effective capital portfolio and project management strategy can help improve project performance, success rates, and revenues. It also reduces budget overruns, start-up delays, and underutilized resources. A defined project lifecycle process across all units is essential to measure success and mitigate the risk of overruns. 2 / 27
Gain Control of Capital Portfolios Managed Asset Development Control of Portfolios Operational Excellence Oil and gas companies must improve transparency across capital project investments and manage risks, activities, budgets, and costs within individual projects. They must reach organizational goals on time and within budget while gaining control over project business processes by combining functions and integrating data from various applications and systems. Organizations need visibility into all aspects of ongoing and proposed capital projects to align business objectives effectively with capital project portfolios. Strategic business and capital investment decisions can be made objectively based on readily available information, such as portfolio value, capital budgets, and financial and project performance data. Aligning objectives consistently with portfolios requires that companies manage scope, progress, issues, resources, budgets, and costs by using tightly integrated information and well-defined processes. Information generated throughout the project lifecycle must be captured in a timely fashion and made available to support informed, timely, and sound business decisions. The SAP Portfolio and Project Management application enables organizations to align organizational goals with capital portfolio strategy in an integrated, efficient, and highly transparent manner to increase overall portfolio effectiveness. 3 / 27
Achieving Operational Excellence Managed Asset Development Control of Portfolios Operational Excellence Asset-intensive companies can gain substantial benefits by improving transparency, timeliness, and accuracy in their capital portfolio and project management information systems. Companies can optimize project selection and execution across the portfolio to maximize ROI. SAP solutions help organizations choose the right projects and execute correctly, leading to operational excellence. Align organizational strategy with capital portfolio Improve visibility into current and proposed projects 22% Of organizations have enterprise frameworks to evaluate and create balanced project portfolios based on risk, value, and strategic fit Collaborate effectively with engineering procurement construction teams Balance risks and rewards Reduce project delays and failure rates Reduce variances in project schedules and costs Integrate together the project scope, timeline, and budget management Direct key resources to high-value projects 4 / 27
Managed Asset Development Control of Portfolios Operational Excellence SAP solutions that support the planning, building, and commissioning of assets leverage cutting-edge technology to enable a faster response to market dynamics. The software delivers real-time visibility into assets, projects, timelines, and strategy alignment. It also provides flexible deployment options and reduces costs and risk. Full integration with the SAP ERP application supports streamlined processes. Analytics solutions support advanced modeling and optimization throughout the capital portfolio lifecycle. The software helps ensure data completeness, quality, and integrity. Mobile apps provide program and project management professionals with 24x7 access to status updates, exception reporting, and alerts. This helps ensure quick response times and supports better decision making while minimizing project risks and improving productivity. Database solutions such as the SAP HANA platform enable program, project management, and asset information professionals to monitor high volumes of variable information internal and external as well as quantitative and qualitative in real time. This includes purchase orders, shipments, project progress information, and unstructured data that enriches analytics, enabling predictive forecasting and mitigating risk. Cloud-based solutions, such as the business network from Ariba, an SAP company, allow for fast, low-risk deployment. This minimizes the IT footprint while supporting long-term scalability and process integration. 5 / 27
Optimizing Capital Portfolio Management Capital Portfolio Mgmt. Capital Project Mgmt. Project Financials Asset Information Process Documents Why SAP? Capital Portfolio Management Align projects with the portfolio strategy, reduce the risk of failure, and increase portfolio effectiveness. Capital Project Management Enhance visibility into planned and actual costs and commitments for all projects in the portfolio. Use third-party products for greater flexibility. Financials for Commercial Projects Increase transparency over cost and profit drivers and generate alternative cost and forecasting scenarios. Asset Information Creation and Governance Evaluate current asset master data with predefined content for information stewards and data services. Manage Business Process Documents Systematically manage business content and connect it to business processes. 6 / 27
Planning, Building, and Commissioning Assets Capital Portfolio Mgmt. Capital Project Mgmt. Asset Portfolio Management Capital Project Management Monitoring Capital Investments Project Financials Asset Information Portfolio Manager Define Portfolio and KPIs Long-Term Planning Portfolio Analysis Create and Manage Opportunities Decision Management Portfolio Analysis Portfolio Analysis Portfolio Review Process Documents Back Office Master Project and Item Staffing and Contracting Procurement Project Closeout KPI Tracking Why SAP? Project Manager Create Project Detail Project Resource and Material Planning Monitor Project Progress Change Request (Yes/No) Adjust Project Plan SAP solutions for planning, building, and commissioning assets help companies to plan, execute, and monitor projects. Project Controller Project Team Member Costing and Baseline Time Recording Adjust Plan Forecasting 7 / 27
Capital Portfolio Management Capital Portfolio Mgmt. Align projects with portfolio strategy, reduce the risk of failure, and increase portfolio effectiveness. SAP Portfolio and Project Management provides functionality for financial and capacity planning, decision-making support, and portfolio monitoring. 14% Higher data accuracy when data warehouse architecture is continuously monitored enabling easy integration of new data Companies running cost- and resourceintensive projects that are customer-oriented often lack insight into the overall commercial project portfolio. But that can change when they have project portfolio management with functionality for long-term planning of financials and capacities, decision-making support, and monitoring potential for ongoing projects on a portfolio level. SAP Portfolio and Project Management helps managers monitor and control operational assets to help optimize asset efficiency and align the corporate strategy with asset portfolio initiatives. 8 / 27
Do the Right Projects Capital Portfolio Mgmt. Invest the right resources in the right projects to advance your strategies while completing quality work on schedule and within budget. 13% More data completeness reported by organizations with information systems optimized for stability and scalability SAP Portfolio and Project Management enables organizations to monitor and control customer-oriented project portfolios and align them with their business strategy and available resources. With this application, you can: Synchronize project and portfolio management with corporate strategy for better insight into your pipeline Monitor performance and analyze activities, costs, and risks Stay on track downstream in the product lifecycle and collect feedback to power future innovation initiatives With the ability to facilitate long-term planning and capacity, comparison of actual data and available resources, and rich analytics, users have visibility into the entire commercial portfolio for ongoing and potential projects. Plus, the decision process can be supported through questionnaires and scoring models to help select the right projects and reduce the project failure rate. 9 / 27
Make the Project Portfolio More Profitable Capital Portfolio Mgmt. For resource- and capital-intensive commercial projects, executing on the right projects is key to optimizing the overall profitability of the commercial portfolio. Selecting projects based on resources available and transparency into projects and opportunities helps organizations execute on the right projects and increase portfolio profitability. Using questionnaires and scoring models, SAP Portfolio and Project Management supports a decision-making process. based on the technical feasibility and risks of projects. The application enables sound longterm planning and plan-to-actual comparisons for ongoing and potential projects. Portfolio analytics provides transparency into the commercial project portfolio and enables users to take timely corrective actions. 10 / 27
Innovations for Capital Portfolio Management Capital Portfolio Mgmt. Gain real-time transparency into the health of the commercial project portfolio with advanced analytical dashboards and mobile apps. Insert image # here 85% Of organizations believe cloud solutions will have a major impact through efficiencies, innovation, or competitive differentiation Analytics solutions with flexible dashboards such as tabular and graphical representations enable insights into the health of complete project portfolios, including customer-oriented projects. Organizations can compare long-term financial and capacity demands with detailed plans for project opportunities and actuals for ongoing projects. And they can even analyze defined key performance indicators (KPIs). Mobile solutions offer an alternative option for accessing commercial project portfolio information. Organizations can provide the right level of information and support decision making with up-to-date portfolio information delivered to mobile devices in real time. 11 / 27
Capital Project Management Capital Project Mgmt. Manage commercial projects and improve efficiency and transparency across the lifecycle of capital projects. 22% Higher new-product revenue when program teams have access to dashboards that deliver project execution metrics SAP solutions integrate all financial, logistics, and analytical applications and support real-time decision making. Throughout the project process, users are guided and alerted to any risks, constraints, or issues that my impact the timeline. Handle customer projects throughout their lifecycle with accurate data and functionality integrated with enterprise applications and systems. This enhances employee productivity and increases project profitability with real-time insights and control of project processes. 12 / 27
Doing Projects Right Capital Project Mgmt. Improve transparency with applications, including SAP Commercial Project Management, SAP ERP, and SAP Portfolio and Project Management. These applications provide comprehensive and advanced project management tools for project planning and execution. 67% Lower lifecycle management costs when product data is centralized across the entire development process Success depends on recognizing and taking advantage of opportunities early. However, critical data is often spread across systems. Planning activities can be decoupled from execution when visibility is lacking and enduser application acceptance is low. The result is poor employee productivity and reduced project profitability. A workspace functionality enables organizations to bundle existing business objects related to customer projects such as documents for an integrated view across systems and applications. By managing project scope, timelines, and budgets to enhance the productivity of team members, organizations can reduce the rate of project failures. 13 / 27
Optimize Project Profitability Capital Project Mgmt. Improve commercial project management practices to increase project efficiency, productivity, and profitability. 33% Lower external spend when project information and processes are managed in an integrated environment With integrated project management, planning, and business processes and the use of accurate and real-time data, organizations can execute commercial projects efficiently. They can better manage commercial projects to reduce failure rates and stay within scope and budget and deliver on time. Advanced, flexible, and user-friendly workspaces and monitoring tools help integrate data across applications and systems. Project professionals can spend less time searching for relevant data and more time on value-add tasks, increasing the productivity of team members. By optimizing project efficiency and enhancing employee productivity, organizations can increase overall project profitability. 14 / 27
Innovations for Capital Project Management Capital Project Mgmt. Facilitate data access and analysis and improve business-user productivity with flexible workspaces and mobile solutions. 32% Of organizations enable their project managers to reconcile planned and actual costs or the schedule of a project on a real-time basis Flexible project workspaces tailored to the needs of project professionals and their roles provide real-time, accurate data across projects and individual project aspects. 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 a variety of mobile devices. Professionals can use smartphones and tablets to enable decision making, while traveling or during customer meetings. 15 / 27
Project Financials for Commercial Projects Project Financials Increase project profitability through accurate bid estimates, project financial plans and forecasts, and improved traceability. 20% Higher revenue per employee in organizations that are using information to identify strategic and competitive advantages The finance functionality of the SAP Commercial Project Management application, option for cost and revenue planning, enables project controllers to estimate, plan, and forecast quantities, costs, and revenues throughout the project lifecycle. The unified, flexible, and user-friendly interface supports processes from bidding and baseline planning to execution. By integrating project planning, execution, issue and change management, and enterprise accounting, organizations can improve the accuracy of its estimates, plans, and forecasts and gain visibility into cost drivers, deviations, and productivity. 16 / 27
Efficient Financial Data Handling Project Financials 28% Of organizations have driven project management process maturity by using standardized templates Gain a single tool for developing estimates, bid structures, proposals, cost baselines, forecasts, revenue plans, and change requests. SAP Commercial Project Management integrates core enterprise resource planning processes and enterprise accounting with advanced financial planning, monitoring, and control functions. The powerful bidding functionality of SAP Commercial Project Management lets organizations 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 of the application uses Microsoft Excel and provides an advanced versioning and analysis functionality. It integrates with SAP ERP and supports resource planning for effective, accurate financial data management. 17 / 27
Reduce Unapproved Project Changes Project Financials Document and control project-related issues and change requests, along with their financial impacts. 17% Of organizations adopted scoring models for portfolio projects based on quantitative KPIs and qualitative criteria SAP Commercial Project Management, option for issue and change management, enables organizations to systematically record and clarify project issues, manage change requests, and understand their financial impact. The number of inefficient manual and spreadsheetbased processes can be reduced, while users receive an overview of all project changes and their impact on project cost and budget overruns. With this application, organizations can accelerate issue clarification and change approval processes, reduce unapproved changes, and improve project profitability. 18 / 27
Innovations for Project Financials for Commercial Project Financials Enhance transparency into project issues and change requests, while optimizing project change processing. 40% Higher employee productivity when mobile access is provided to employees across all levels of the enterprise 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 / 27
Asset Information Creation and Governance Asset Information Effectively manage and govern enterprise information to take advantage of new market drivers such as Big Data, cloud computing, in-memory databases, and mobile technology. This capability enables organizations to make moreinformed decisions and help ensure regulatory compliance. 60% Reduction in IT costs, while achieving data quality control with SAP solutions Source: SAP Customer Success Profile, Alliander With the volume, rate of change, and variety of structured and unstructured data growing exponentially, how can companies maximize the business value of this data flow across the organization? To turn data into actionable information, organizations need to simplify governance and access to all enterprise data, devices, and social media sources. To do this, organizations need enterprise-wide information management software that helps them seize business opportunities and gain real-time insights into market dynamics. Transforming structured and unstructured data into actionable and trusted information enables organizations to respond quickly to critical events and provide the agility to make fast, profitable decisions. Delivery of timely and accurate information to all employees, devices, and applications puts that information to work throughout the enterprise and across the globe. It enables transparency, efficiency, and a clear understanding of enterprise data models that provide a 360-degree view of the company and its customers. 20 / 27
Manage Business Process Documents Process Documents Make business process documents simpler to find, govern, use, and share. By thoroughly defining the lifecycle, availability, and accessibility of this content, organizations can systematically manage business content and connect it to business processes enhancing collaboration productivity. 20% Higher revenue per employee in organizations that are using information to identify strategic and competitive advantages Business documents are linked to business transactions capturing information that is legally binding and subject to litigation. For example, procurement processes include a number of document types, such as contracts. Procurement officers need to access this information making it important for the content lifecycle to include archiving and retrieval options. For the end user, the provisioning of these documents helps support everyday responsibilities. Records should be structured accordingly and comprise of all related documents. Classification schemes, alerts, and notifications need to be significant and tailored to the user type. And collaborative scenarios should include third-party suppliers and contractors with appropriate access. 21 / 27
Provide Relevant Content When It Is Needed Process Documents Give users a single source of the truth to support agility and innovation anytime and anywhere. Maintain compliance and security, while addressing the challenges of an increasingly complex and dynamic regulatory landscape. 80% Of companies do not have seamless integration of project and resource management systems The SAP Extended Enterprise Content Management application by Open Text supports an information governance strategy that reduces risk and controls the cost of growing volumes of content in the enterprise. By establishing a consistent governance policy across any type of content, organizations can manage the flow of information from capturing through archiving and disposition. This gover- nance must be adapted to the needs of the user building it into the business processes and applications they work in every day. Besides the provisioning of information, standard content creation tools empower users to create content and integrate it with business applications. Plus, classification schemes and structures guide the user to comply with the overall content strategy. 22 / 27
Drive Productivity, Efficiency, and Compliance Process Documents Store, archive, and retrieve all types of documents in a manner that protects the business from litigations regarding operations and the sensitive environment of the oil and gas industry. 54% Lower personnel costs for companies that manage product lifecycle resources through project prioritization Information management considers many aspects of managing documentation, such as the lifecycle, accessibility, governance, and compliance. By embedding content in an enterprise resource planning system, organizations can support employees as they manage their daily responsibilities. More important, this capability helps the IT function better manage information properly and link together structured and unstructured content on the basis of common objects and classification schemes. SAP solutions can help ensure unified retention management and a permanent audit trail for all data and enterprise content. When organizations want to delete data or content, they can automate destruction of the data and synchronization of the entire system. 23 / 27
Process Documents for Managing Business Process Documents Integrate content and application to help keep information safe, compliant, and quickly accessible. 33% More reports created when business users use selfservice analysis SAP Extended Enterprise Content Management provides users with rapid and streamlined access from any device, or any location Web, desktop, or mobile. When integrated with Microsoft Outlook, organizations can capture e- mails and relate them with the proper business transaction. This includes monitoring, archiving, and management of on-premise and cloud e-mail solutions. In addition, new forms of collaboration such as social media feeds and mobile texts can be recorded and managed. 24 / 27
Why SAP? Capital Portfolio Mgmt. For oil and gas organizations, managing investments requires long-term planning as well as management of activities along the lifecycle of a project. Seamlessly integrating strategy and execution helps ensure control and profitability. Capital Project Mgmt. Project Financials Asset Information Process Documents Why SAP? Tightly Integrated and Comprehensive Business Solutions With almost two decades of delivering industry solutions on top of its core applications, SAP has gained a high reputation for precisely matching an organization s particular needs. Application of Breakthrough Innovations The SAP solution portfolio is based on the industry s most innovative technology foundation, including the SAP HANA platform, mobile apps, analytics, and cloud solutions. This enables business process optimization and efficiency at the lowest possible cost. A Long-Term Partnership Most of the world s largest oil and gas companies rely on the innovative power of SAP solutions on the basis of a strategic partnership. 25 / 27
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Solution in Detail Oil and Gas Executive Summary Contact Us Studio SAP I 31802enUS (14/07) Visit us on our community pages to find out more: http://www.linkedin.com/groups/sap-oil-gas-4546067 https://twitter.com/sapoilandgas http://www.linkedin.com/groups/sap-oil-gas- 4546067?ref=tn_tnmn#!/SapOilAndGas http://scn.sap.com/community/oil-and-gas 2013 2014 SAP SE or an SAP affiliate company.
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