SAP Enterprise PPM
World-Class Portfolio & Project Management
Arend Weil, SAP AG
October 20th , 2011
Enterprise Portfolio & Project Management
Introduction: The importance of Capital Projects
Capital project growth in
all segments
Example: Utilities
(IEA says $13.5 Trillion until 2030)
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3
Innovations like
renewables and smart grid
are more capital-intense
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Governance is challenging
since it cuts across many
silos and stakeholders
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Selected PPM customer Examples
5000+ customers using SAP Project System
600+ customers using advanced Portfolio Management
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Enterprise Portfolio & Project Management
How you achieve Visibility, Collaboration and Governance
Enterprise Portfolio and Project Management by SAP
Portfolio Management
Strategic Level
Do the right things
Portfolio Management
Enterprise
Portfolio
and Project
Management
Portfolio Analytics
Silicone
Tactical Level
Do the things right
Project Management
Operations
SAP PPM Project management
SAP Project System
Logistics
Resources
PP
HR
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Financial data
Project
Accounting
Get the things done
Operations - SAP ERP
PLM
Aggregate
Initiate
Project Mgmt
Time
Financials/
Controlling
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From Long-Term Plan to Asset Delivery
An End2End Enterprise Process with many stakeholders and departments
Portfolio Planning & Monitoring
- Long Term Investment & Portfolio Planning
- Risk Assessment, Prioritization
- High Level Cost Planning
- High Level Resource Planning
- Capital Pre-Approval
 Project Management
- Project Scheduling
- Detailed Resource Planning
- Detailed Cost Planning & Approval
- Scheduling & Dispatching
- Regulatory Reporting
- Document Management
Core Enterprise Processes / Activities
- Engineering Design for technical Infrastructure Projects
- Processing of Construction measures
- Processing of work orders for construction & maintenance
- Update of Asset register (financial and technical assets)
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SAP Capital Project Management Offering
Designed for the End2End Process: Plan, Build, Commission Assets
SAP Portfolio and Project Management 5.0
Portfolio Planning & Monitoring
- Long Term Investment & Portfolio Planning
- Risk Assessment, Prioritization
- High Level Cost Planning
- High Level Resource Planning
- Capital Pre-Approval
SAP Enterprise Project Connection
Mapping Project-View
with Operations
SAP Project System (PS)*
SAP Portfolio and
Project Management 5.0*
Project Management
 Project Management & Execution
- Project Scheduling
- Detailed Resource Planning
- Detailed Cost Planning & Approval
- Scheduling & Dispatching
- Regulatory Reporting
- Document Management
Others
* For financial aspects WBS / IOs
in ERP will be used
SAP ERP for Logistics,
Financials, HR, Maintenance
3rd party Project
Management
tools:
Core Enterprise Processes / Activities
- Engineering Design for technical Infrastructure Projects
- Processing of Construction measures
- Processing of work orders for construction & maintenance
- Update of Asset register (financial and technical assets)
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The Portfolio View
A portfolio of Projects, Proposals, Programs
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Structuring the Portfolio
Buckets to “slice and dice”
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Planning the portfolio
Financial planning on bucket level
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Process Step: Identify Opportunities
Strategic fit
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Statoil Standard Process for Asset Modifications
Governance model implemented from Initiation to Asset Operation
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Process Step: Identify Opportunities
Review by commercial and technical (here only the technical approval)
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Operational Project Management
Orchestrating the Enterprise Processes through Projects
Project Builder, embedded into ERP
 Management of
large and complex
projects in all
industries
 Hierarchical and
network oriented
structuring options
 Strong integration
into core enterprise
processes (PLM,
SCM, FIN, SRM,
EAM)
 Reporting back into
the Portfolio Views
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Decision Making
Net Present Value, Versus Cost And Assessed Project Risk
 Informed
decision making
Silicone
Silicone
 Prioritization of
projects
according to
KPIs
 Performance
Analysis
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SAP Enterprise Project Connection
Bi-directional, closed loop integration between SAP and Primavera
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Enterprise Portfolio & Project Management
Why SAP for Enterprise Portfolio and Project Management
PPM process maturity: Mostly Ad-hoc
Lack of process maturity cost time, money, resources
Inconsistencies
Broken Processes
Re-Inventing
Knowledge Transfer
Lack of Transparencies
Level 5: Enterprise Orientation
Level 4: Increase Efficiency
Level 3: Initial Integration
Level 2: Emerging Dicipline
Level 1: Reactive
Level 0: Ad Hoc
Gartner„s Maturity Model for PPM:
Five Dimensions (People, PPM Processes,
Technology, Financial Management,
Relationships) across 6 progressive Levels
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Forrester PPM Wave: SAP is a PPM Leader due to
versatile offering, strong product and corporate focus
“Forrester evaluated 14 project portfolio management vendors using 80-plus
criteria and found that CA, HP, Planview, Oracle, and SAP led the pack due to
versatile offerings combined with strong product and corporate focus“
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Source: Forrester Wave™: Project Portfolio Management For IT-Driven Portfolios, Q4 2009; Distribution rights available
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Evolution of Project Management Applications
Generation
Sample Applications Comment
1 – PC-Based
MS Project, P3
2 – Client-Server Primavera Enterprise,
MS Project Server
3 – EPM
Microsoft EPM,
Primavera P6
4 – OPM
SAP PPM
5 – Distributed
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Silo
Silo
Some Vertical
Integration
Horizontal, vertical
and supply chain
integration
Emerging (Mobility!)
Web-Service based,
 Sybase?! ByDesign? Cloud Computing
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Evolution of Project Management Applications II
Project Silo
(1st and 2nd
Generation)
EPM Silo
(3rd
Generation)
SAP: OPM
(4th Generation)
Individual
Projects;
Project-Centric
Enterprise;
Project-Centric
Beyond
Enterprise;
Org. Ecosystem
Traditional Project
Manag. Functionality
Yes
Yes
Yes
Horizontal Integration
(ERP)
No
Limited
Yes
Vertical Integration
(Corporate Strategy)
No
Limited
Yes
Supply-Chain
Integration (Customers,
Partners, Suppliers)
No
Limited
Yes
Characteristic
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Enterprise Portfolio and Project Management
Maturity and Project Excellence through Integration
Concept/
Initiation
Feasibility/
Planning
Idea
Execution
Transfer/
Closeout
PPM Item
Project
WBS
Activities/Schedule
Assets
PPM
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PPM
PPM
PPM
EPC
AM
IM
IM
HR
PM
PS
PS
FICO
MM
MRP
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PPM with SAP is Different…
Part 1
Automated Calculation of Standard Cost Rates
Handling of Project Stock
Automatic Allocations for Internal Services
Overhead Allocations for Shared Services
(Planned and Actual)
Multiple Cost Plan Versions for Rolling Forecasts
Full Participation in Corporate Budgeting Process
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PPM with SAP is Different…
Part 2
Integration with MRP
Project Creation Triggered through Sales
Milestone or Progress Billing with Automatic
Consideration in Finance, Sales and Project
Capitalization of Project Results as AuC or Asset
Seamless Integration of Capital and Maintenance
Integrated Supply Chain Management
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PPM with SAP is Different…
Part 3
Use of Internal Production Management
Processes for Internally Produced Materials
Complete Drill-Down Capabilities in Corporate
Reports from Company Total to Most Detailed
Project Expense
And many, many more
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But What About the People?
SAP
PPM, PS,
PM…
EPC
Primavera
P6
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Enterprise Portfolio & Project Management
Outlook
Product Evolution SAP for PPM
SAP Portfolio and Project Management 5.0
SAP Portfolio
and Project
Management
5.0
SAP RPM 4.0
SAP RPM 4.5
SAP xRPM 2.0
cProjects 4.0/4.5
SAP Enterprise
Project
Connection 1.0
cProjects
2.0/3.0/3.1
Realtime
Project
Accounting
SAP
Project System
R/2
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R/3
SAP
Project System
2002
SAP
Project System
2008
SAP ERP Project System
2010
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Next Steps of SAP’s Enterprise PPM Solution
Planned Areas of Innovation
Portfolio Management
Enterprise
Portfolio
and Project
Management
Initiate
Aggregate
SAP PS
Resources
PLM
Financial data
Project
Accounting
HR
Commercial Project
Management
Project Portfolio
Orchestration and
Collaboration
Rapid-Deployment
Solutions
3D Visualization
Project Orchestration
and Integration
Mobility
Customer Connection
HANA-Based Analytics
Silicone
SAP PPM Project management
Logistics
Continuous Product and
Service Innovation
Portfolio Analytics
Project Mgmt
PP
Managing Innovation
Time
Financials/
Controlling
Solution Today
© 2011 SAP AG. All rights reserved.
Future Topics
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Major Innovation Areas for Enterprise PPM
Continuous Product and
Service Innovation
Project Portfolio
Orchestration and
Collaboration
3D Visualization
Mobility
HANA-Based Analytics
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Continuous Product and Service Innovation
Strengthen innovation capabilities through risk management, portfolio
decision support and optimization and SAP Streamwork integration
Project Collaboration
Collaboration platform for project orchestration of contractors,
business partners, customers, suppliers
Visual Enterprise
3D visualization of products and assets in the context of Innovation
Management and Capital Asset projects
Mobility
Leverage the Sybase Unwired Platform (SUP) to make relevant
information available to stakeholders and project team members
Planning & Analytics
Facilitate project analytics, costing, predictive analytics, and decision
support
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Thank You and
большое спасибо!
Contact information:
Arend Weil
arend.weil@sap.com
http://de.linkedin.com/in/arendweil
Appendix
Technical Details
Integration Examples
Flexible Implementation Options
Engen: Phase in by Location, Grow Maturity and Functional Scope
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Building Blocks of SAP’s solution for Project Management
and Project Portfolio Management
Portfolio Management
Project Management (PPM: project methodology, state-gate,
checklists, collaboration...,
PS: detailled planning, calculation, procurement...)
Project Controlling (cost account assignment)
Project Logistics / Procurement
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Could cover
different views
Portfolio / Strategic Buckets
Optional Checklists
Portfolio Initiative (Program)
Portfolio Item (Project / Proposal)
SAP Portfolio and Project Management
High Level
Costing
optional: Project, Phases, Tasks,
Checklist Items...
Detailed
Scheduling
IM Program
Project
Costing
Model
Base Planning
Object
Asset Planning &
Operations
Project Planning &
Execution
Long Term Planning
& Monitoring
High Level Architectural View: Project and Program
Planning
WBS
IM Positions
Network Activities
SAP ERP Project System
Asset
management
SAP ERP Plant Maintenance
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How to install SAP Portfolio and Project Management?
SAP NetWeaver Portal
on the same
machine with
you ERP!
Single Instance
Separate Instances
SAP NetWeaver
Business Client
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Key Differentiator 'Integration' (integration into ERP
processes, option 1 to link to WBS elements)
Project
Project
WBS Element 1
Phase
Task 1.1
Task 1.2
Task 1.3
WBS Element 2
Phase 2
Task 2.1
SAP Portfolio and Project
Management
© 2011 SAP AG. All rights reserved.
SAP ERP Project System
40
Long Term Planning
& Monitoring
Key Differentiator 'Integration' (integration into ERP
processes, option 2 to link to WBS elements)
SAP Portfolio and Project Management
Asset Planning &
Operations
Project Planning &
Execution
1
2
NWA 1
3
NWA 2
3
NWA 3
NWA 5
4
NWA 6
NWA 4
4
NWA 7
...
SAP ERP Project System
OV 21
PM Order 1
OV 22
OV 51
OV 23
OV 52
OV 53
PM Order 2
SAP ERP Plant Maintenance
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Key Differentiator 'Integration' (integration into
ERP processes, financial download)
leading system
for Rough Plan
Portfolio Item / Project
Project
Rough
Plan
2010
2011
2012
2013

Rough
Plan
2010
2011
2012
2013

Internal
60
70
120
50
300
Overall
90
320
250
70
730
External
30
250
130
20
430
Overall
90
320
250
70
730
SAP Portfolio and Project
Management
© 2011 SAP AG. All rights reserved.
SAP ERP Project System
42
Key Differentiator 'Integration' (integration into
ERP processes, financial + capacity upload)
Project
Portfolio Item / Project
Rough
Plan
2010
2011
2012
2013

Rough
Plan
2010
2011
2012
2013

Internal
60
70
120
50
300
Overall
90
320
250
70
730
External
30
250
130
20
430
Overall
90
320
250
70
730
2010
2011
2012
2013

Internal
50
80
130
60
320
External
30
250
160
40
480
Forecast
Overall
80
330
290
100
800
Actuals
2010
2011
2012
2013

Internal
50
30
0
0
80
External
30
100
0
0
Overall
80
130
0
0
Forecast
SAP Portfolio and Project
Management
© 2011 SAP AG. All rights reserved.
leading system
for Forecast and
Actuals
2010
2011
2012
2013

Internal
50
80
130
60
320
Material
20
170
110
30
330
Services
10
80
50
10
150
130
Actuals
2010
2011
2012
2013

210
Internal
50
30
0
0
80
Material
20
70
0
0
90
Services
10
30
0
0
40
SAP ERP Project System
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Further thoughts: SAP Portfolio and Project Management
vs. SAP Investment Management (1)
SAP Portfolio and Project Management
© 2011 SAP AG. All rights reserved.

Investments are structured in a portfolio
and bucket structure (e.g. according to
business units)

Project proposals / projects are represented
by portfolio items

Gives an holistic view on investments –
financial and capacity planning, chances,
risks (e.g. via freely definable key figures,
questionnaires)

Simulation support (what-if scenarios)

Supports balancing and prioritizing the
investments (e.g. via scoring models)

Portfolio dashboards and alerting to get
aware of budget overruns early
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Key Differentiator 'Integration' (integration into HCM
processes)
Projects
Organizational Structure
Business Partners
Qualifications
- Adress Daa
- Communication
- Availability
SAP Portfolio and Project Management
Organizational Structure
Employees
Qualifications
- Adress Data
- Communication
- Availability
SAP Human Capital Management
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