Managing Capital Projects with S/4HANA Enterprise Portfolio and Project Management Renato Zadro, Solution Owner EPPM July, 2020 PUBLIC Today’s Challenges of Project Organizations Complex Overview Current Projects Portfolio / Innovation Topics L2/L3 ▪ Disparate variety data, different sources ▪ No consolidated view ▪ Poor efficiency manual planning & monitoring Demand CAPEX Controller Customer Engagement Manager Sign off Project 1 Documentation Project 1 Program View Network Resources Build Team Manager Resources Project 1 Project Status Project 1 Build Team Expert Project Manager Network Project Project Team Member Network © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Program Challenges & Risks Resources Build Team Costs Project 1 Budget External Partners Approval Costs Project1 ▪ Difficult decision making, lack of integration on: ▪ Demand ▪ Project Portfolio ▪ Production Planning ▪ Resource Planning ▪ Financial / Controlling ▪ Changes, Issues, Risks ▪ Etc. Material All Build + PO 2 SAP S/4HANA – The Digital Core for Projects Digital Control Stakeholders Immediate Finance & Logistics Customers Ideas Sales Orders ▪ Single source of truth ▪ Instant access Portfolio Integrated Changes Approvals Project Proposal Budget Documents Revenues Digital Core S/4HANA Project Issues ▪ Platform that “connects” all project participants (internally and externally) ▪ Integration to business functions Costs Resources Risks Purchase Order Demand Time Entry Project Team Expert Resources © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Interactive Demand Digital Project Timeline & Deliverables ▪ Real-time project analytics ▪ Role-Based User Interface built on SAP Fiori Apps 3 Capital Projects Opportunities and Challenges 1,7 Tr. Energy Investments 2016* Align project investments with strategic business goals Balance asset operation and investments into new businesses Detect project variances early Central project repository © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC * Taken from the report ‘World Energy Investment 2017’, published by the International Energy Agency on July 11 th, 2017 4 Enterprise Portfolio and Project Management A Project Management Platform “Enterprise” Portfolio and Project Management Portfolio Management Resource Management Project Management Capital “Manage and control enterprise wide, project related investments” R&D, Innovation “Optimize strategic resource & financial management of the innovation process” IT “Help IT organizations to align activities & resources with business strategy” Commercial “Manage customer project lifecycle from opportunity to billing and closure” © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5 Capital Portfolio and Project Management End-to-End Process Business Process Strategy Project Proposal Project Planning Project Management Strategy Management ◼ Vision & Mission ◼ Define Corporate Goals ◼ Set Strategic Initiatives Procurement Execution Project Execution ◼ Phase Approvals ◼ Structure Project ◼ Project Accounting ◼ Schedule Tasks & Activities ◼ Time Recording ◼ Manage Milestones ◼ Milestones ◼ High Level Budget Planning Portfolio Management ◼ Identify Business Opportunities ◼ Risk Assessment ◼ Rank Project Proposals ◼ Budget Planning © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Monitoring Project Analytics Project Procurement ◼ Plan int./external Resource Demand ◼ Schedule Purchase Orders ◼ Progress Tracking ◼ Budget Control ◼ Plan vs. Actual ◼ Track availability of Resources 6 Personas in Capital Portfolio and Project Management Strategy Officer Strategy Project Proposal Portfolio Management © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Project Planning Procurement Execution Monitoring Project Management 7 Key Personas in Capital Projects Mission & Goals – Strategy Management ◼ Facilitating and driving key strategic initiatives ◼ Executing and monitor corporate strategic initiatives ◼ Ensuring departmental/unit strategic planning projects reflect organizational strategic priorities Do the right projects – Project Portfolio Management ◼ Complete visibility of all current and proposed projects ◼ Plan and forecast financials and capacity demands for sound decision support ◼ Make decisions on clear and valuable information like portfolio value, balance, financial figures and strategic alignment ◼ Know your current projects as well as your capabilities Do the projects right – Project Management ◼ Managing scope, timeline and budget of projects in an integrated way ◼ Plan and monitor your detailed project costs and cash flow ◼ Track and control the execution and progress of your projects ◼ Manage project risks and changes © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8 Strategic Portfolio Planning and Reporting Strategy Project Proposal Project Planning Procurement Execution Monitoring Gain Insights into Portfolio Performance ▪ Digital Board Room ▪ Aggregated Project Information ▪ Investment Categories ▪ Budget availability ▪ Financial and Capacity situation ▪ Project Risk vs Reward ▪ Portfolio Analytics © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9 SAP Portfolio and Project Management Simplified Object Structure Portfolios Buckets Project-Portfolio Portfolio-Bucket Aggregated Financial & Capacity Planning Q1 Q2 Q3 Portfolio-Bucket Q4 1:n Initiative/ Item Portfolio-Bucket Review Program (Initiative) Q1 Q2 Q3 Q4 1:n Project (Item) Operational Projects 1:1 Detailed € € € Cost & Resource Planning © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Operational Project 1:1 PS Project (WBS) / CO Internal Order 10 Create Project Request Strategy Project Proposal Project Planning Procurement Execution Monitoring ▪ Create Project Request via Fiori App* ▪ Simplified User Interface ▪ Budget Demand ▪ Priority ▪ Start / End Date *Consulting Solution © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11 Identify Opportunities Strategy Project Proposal Project Planning Procurement Execution Monitoring Create Project Request ▪ Description of Project ▪ Basic Project Data ▪ Goals & Benefits ▪ Expected Timeframe & Costs ▪ Attachments ▪ Decision Points / Gates © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12 Identify Opportunities Strategy Project Proposal Project Planning Procurement Execution Monitoring High-level Financial and Capacity Planning ▪ Bottom Up Demand Planning ▪ Project Budget Assignment ▪ Flexible Planning Periods ▪ Distribution Functions ▪ Embedded Analytics © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13 Portfolio Prioritization Strategy Project Proposal Project Planning Procurement Execution Monitoring Ranking of Project Proposals ▪ Prioritize Proposals and Projects ▪ Questionnaires ▪ Scoring Model ▪ Ranking ▪ Portfolio Analytics © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14 Create and Approve Budgets Strategy Project Proposal Project Planning Procurement Execution Monitoring TX CJ30 Document Decisions ▪ Manage Decisions in Reviews ▪ Approve Projects incl. Budget ▪ Transfer Budget to ERP ▪ Notifications and Approvals in SAP Workflow © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15 Create and Approve Budgets Strategy Project Proposal Project Planning Procurement Execution Monitoring Document Decisions ▪ Document and Notes ▪ Authorizations © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16 Portfolio Simulation Strategy Project Proposal Project Planning Procurement Execution Monitoring Versions and What-If Scenarios ▪ Versions ▪ Snapshots ▪ Simulations ▪ What-If Scenarios © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17 Project Initiation Strategy Create PS Project out of Portfolio Management Project Proposal Project Planning Procurement Execution Monitoring Navigation to PS project and reports from Portfolio Item ▪ Create Projects from Approved Proposal ▪ Force Usage of Project Templates ▪ Access Project Structure or Detailed Reports ▪ Keep Project and Portfolio Items Automatically Insync ▪ Track Costs & Dates © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Creation of PS Project based on selected template Synchronization of attributes and status between Portfolio Item and PS Project 18 Structure Project Strategy Project Proposal Project Planning Procurement Execution Monitoring Structure the project with ▪ WBS Elements ▪ Networks ▪ Network Activities ▪ Milestones ▪ Progress tracking events ▪ Link to PM orders (STO) ▪ Schedule PM Orders (STO) Schedule Activities © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19 Structure and Schedule Project in PPM Strategy Project Proposal Project Planning Procurement Execution Monitoring Structure the project with ▪ Phases ▪ Tasks ▪ Check-Lists ▪ Milestones ▪ Dependencies ▪ Constraints Schedule Activities Versions and Simulations © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20 Plan Resource Requirements / Costs Strategy Project Proposal Project Planning Procurement Execution Monitoring ▪ Plan project costs and resource demand ▪ Flexible Excel based UI ▪ Versions ▪ Transfer to operative project ▪ Forecasts © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21 Integration of 3rd Party Tools with SAP Enterprise Project Connection Business Process Strategy Project Proposal Project Planning Procurem ent Execution Monitoring Project Initiation ◼ Create Project Header and Structure ◼ WBS, Activities and Milestones… ◼ Resources & Materials ◼ Costs SAP Enterprise Project Connection ◼ Relationships Project Execution ◼ Project and Tasks ◼ Updated Schedule ◼ Actual Hours ◼ Progress Project Structure © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Detailed Activity List Scheduling Resource Allocation Status and Progress 22 Synchronization of Project Information via EPC © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23 Procure Materials and Services Strategy Project Proposal Project Planning Procurement Execution Monitoring ▪ Access Procurement Information from Project Environment ▪ Integrated Procurement Processes ▪ Purchasing and In-house Production ▪ Monitor all project related Procurement Processes ▪ Materials and Services © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 24 Collect Actuals & Time Recording Strategy Project Proposal Project Planning Procurement Execution Monitoring ▪ Collect Actual Costs ▪ Working Times ▪ Material Consumptions ▪ Costs based on hours ▪ Integrated with CATS for Time Recording © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25 Issue & Change Management Strategy Project Proposal Project Planning Procurement Execution Monitoring ▪ Project Issues ▪ Project Changes ▪ Cost Impact ▪ Related Objects ▪ Workflow ▪ Analytics © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26 Project Risk Management Strategy Project Proposal Project Planning Procurement Execution Monitoring ▪ Risk Management ▪ Mitigation Activities ▪ Financial Impact ▪ Risk Scoring ▪ Workflow ▪ Analytics © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27 Monitor Project Strategy Project Proposal Project Planning Procurement Execution Monitoring Individual Project Forecast ▪ Compare Planned, Forecasted and Actual Values ▪ Saved as individual Versions ▪ Project Overview ▪ Earned Value Analysis ▪ Milestone Trend Analysis © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28 Monitor Portfolio Strategy Project Proposal Project Planning Procurement Execution Monitoring Digital Board Room* ▪ Monitor portfolio or individual projects ▪ Aggregation on various bucket levels ▪ Dashboards and KPIs based on real time data ▪ Alerts for budget, schedule, staffing, risk etc. ▪ Planned vs. actuals ▪ Layout changes by business user *requires SAP Analytics Cloud © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29 Capital Portfolio and Project management Solution Components Portfolio and Project Management Portfolio Management and Monitoring Enterprise Management SAP Commercial Project Management • • • Project Management and Execution Tactical Level Proj. Financial Planning Issue and Change Mgmt. Risk Management SAP Enterprise Project Connection SALES © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC RESEARCH AND DEVELOPMENT FINANCE MANUFACTURING HUMAN RESOURCES SERVICE The Digital Core The Digital Core Deep ERP Integration 30 Summary 1 Integrated Portfolio and Project Management helps companies keep strategic planning and operational project execution insync 2 Integration into Logistic, Human Resources and Financial Accounting automates reporting and provides reliable data 3 Alternative User Interfaces to enable casual users to access project related information © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 31 Thank you. Contact information: Renato Zadro Solution Owner EPPM renato.zadro@sap.com +49 6227 748326 Follow us www.sap.com/contactsap © 2019 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. 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