Managing Capital Projects with S/4HANA

Enterprise Portfolio and Project Management

CUSTOMER
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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Capital Projects
Opportunities and Challenges

9,5
Align project investments with strategic business
goals
Bn. invest in Balance asset operation and investments into new
new assets in businesses
2012

Detect project variances early

Central project repository

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Portfolio and Project Management
Capabilities
Business Process
Project Project Procurem
Strategy Execution Monitoring
Proposal Planning ent

Capabilities
Project Execution
Strategy Management Project Management n Phase Approvals
n Structure Project n Project Accounting
n Vision & Mission
n Schedule Tasks & Activities n Time Recording
n Define Corporate Goals
n Manage Milestones n Milestones
n Set Strategic Initiatives
n High Level Budget Planning
Project Analytics
Portfolio Management Project Procurement n Progress Tracking
n Identify Business Opportunities n Budget Control
n Plan int./external Resource Demand
n Risk Assessment n Plan vs. Actual
n Schedule Purchase Orders
n Rank Project Proposals
n Track availability of Resources
n Budget Planning

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 Capital Portfolio and Project management
Solution Components

Portfolio and Project Management

Portfolio Management and
Monitoring

Enterprise Management
SAP Commercial Project SAP Enterprise Project
Management Connection
Project Management and Execution
• Proj. Financial Planning Tactical Level
• Issue and Change Mgmt.
• Risk Management
Deep ERP Integration
The Digital Core

The Digital Core

SALES RESEARCH AND FINANCE MANUFACTURING HUMAN SERVICE
DEVELOPMENT RESOURCES

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Strategic Portfolio Planning
Top Down Budget Planning
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Strategic Budget
Planning
§ Portfolio Hierarchies
§ Buckets
§ Alternative Hierarchies
§ Aggregation
§ Portfolio Analytics

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SAP Portfolio and Project Management
Simplified Object Structure
Project-Portfolio

Portfolio-Bucket Portfolio-Bucket Portfolio-Bucket

Portfolios
Buckets

Aggregated
Financial &
Capacity Planning

Q1 Q2 Q3 Q3

1:n
Review
Program
Initiative/

(Initiative)
Item

Q1 Q2 Q3 Q3 1:n
Project
(Item)

1:1
Operational

Operational
Projects

Detailed € Project
Cost & € € 1:1
Resource Planning
PS Project
(WBS) / CO
Internal Order

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Identify Opportunities
Create Project Request
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Description of Project
§ Basic Project Data
§ Goals & Benefits
§ Expected Timeframe & Costs
§ Attachments
§ Decision Points / Gates

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Identify Opportunities
Financial and Capacity Planning
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ High-level Financial and

Capacity Planning
§ Bottom Up Demand Planning
§ Project Budget Assignment
§ Flexible Planning Periods
§ Distribution Functions
§ Embedded Analytics

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Portfolio Prioritization
Ranking of Project Proposals
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Prioritize Proposals and

Projects

§ Questionnaires
§ Scoring Model
§ Ranking
§ Portfolio Analytics

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 Create and Approve Budgets
Document Decisions
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Manage Decisions in TX CJ30

Reviews
§ Approve Projects incl.
Budget
§ Transfer Budget to ERP
§ Notifications and Approvals
in SAP Workflow

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 Create and Approve Budgets
Document Decisions
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Document and Notes

§ Authorizations

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Portfolio Simulation
Versions and What-If Scenarios
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Versions
§ Snapshots
§ Simulations
§ What-If Scenarios

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Project Initiation
Create PS Project out of Portfolio Management
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

Navigation to PS project and

§ Create Projects from reports from Portfolio Item
Approved Proposal
§ Force Usage of Project
Templates
§ Access Project Structure
or Detailed Reports Creation of PS Project based
on selected template
§ Keep Project and Portfolio
Items Automatically In-
sync
Synchronization of attributes
§ Track Costs & Dates
and status between Portfolio
Item and PS Project

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Structure Project

Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

Structure the project with

§ WBS Elements
§ Networks
§ Network Activities
§ Milestones
§ Progress tracking events

Schedule Activities
Versions and Simulations

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 Plan Resource Requirements / Costs

Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Plan Project Costs and

Resource Demand
§ Flexible Excel Based UI
§ Versions
§ Transfer to operative project
§ Forecasts

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Integration of 3rd party tools with SAP Enterprise Project Connection

Business Process
Project Project Procurem
Strategy Execution Monitoring
Proposal Planning ent

Project Initiation
n Create Project Header and Structure
n WBS, Activities and Milestones…
n Resources & Materials
n Costs
n Relationships
SAP Enterprise Project
Connection
Project Execution
n Project and Tasks
n Updated Schedule
n Actual Hours
n Progress

Detailed
Project Resource Status and
Activity Scheduling
Structure Allocation Progress
List

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Synchronization of Project Information via EPC

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 Procure Materials and Services
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Integrated Procurement
Processes
§ Purchasing and In-house
Production
§ Monitor all project related
procurement processes
§ Materials and Services

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Collect Actuals & Time Recording

Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Collect Actual Costs

§ Working Times
§ Material Consumptions
§ Costs based on hours
§ Integrated with CATS for
Time Recording

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Issue & Change Management
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Project Issues
§ Project Changes
§ Cost Impact
§ Related Objects
§ Workflow
§ Analytics

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 Project Risk Management
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Risk Management
§ Mitigation Activities
§ Financial Impact
§ Risk Scoring
§ Workflow
§ Analytics

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Monitor Project
Individual Project Forecast
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Compare Planned,
Forecasted and Actual
Values
§ Same Environment as
Planning
§ Saved as individual
Versions
§ Project Overview
§ Milestone Trend Analysis

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 Monitor Portfolio
Multi Project Information
Project Project
Strategy Procurement Execution Monitoring
Proposal Planning

§ Monitor Portfolio of Projects

§ Dashboards and KPIs
§ Alerts for Budget, Schedule,
Staffing, Risk etc.
§ Planned vs. Actuals
§ Aggregation on Various Bucket
Levels
§ Reporting Layout can be
Designed by Business User

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Summary

1 Integrated Portfolio and Project Management helps companies

keep strategic planning and operational project execution in-
sync

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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Thank you.
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