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
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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
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* 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”
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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
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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
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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
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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
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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
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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
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15
Create and Approve Budgets
Strategy
Project
Proposal
Project
Planning
Procurement
Execution
Monitoring
Document Decisions
▪ Document and Notes
▪ Authorizations
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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
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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
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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
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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
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25
Issue & Change Management
Strategy
Project
Proposal
Project
Planning
Procurement
Execution
Monitoring
▪ Project Issues
▪ Project Changes
▪ Cost Impact
▪ Related Objects
▪ Workflow
▪ Analytics
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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
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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
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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
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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
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31
Thank you.
Contact information:
Renato Zadro
Solution Owner EPPM
renato.zadro@sap.com
+49 6227 748326
Follow us
www.sap.com/contactsap
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