Public
Commercial Project Management on S/4HANA EKT - Overvi Overview ew Session Session Dr. Martin Effenberger, SAP SE March 2016
EKT Awareness
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Agenda
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What is Commercial Project Management (CPM)?
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CPM Landscape
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Differences between CPM for S/4H and CPM for ERP
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CPM Project Workspace
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CPM Project Financial Planning
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CPM Project Issues & Change Management Management
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Summary and Follow on Session(s)
What is Commercial Project Management?
Business leaders need to digitally transform across five key pillars Assets and Internet of Things
Customer Experience Omnichannel
Analyze sensor data from products, and deliver outcomebased experiences
Engage customers more personally with one-to-one marketing
Monitor assets on the factory floor to predict failure and decrease downtime
Personalize products and offerings by slicing and dicing customer data on the fly
Gain instant visibility into whereabouts of in-transit materials to drive new scheduling efficiencies
Predict customer behavior, and make context-relevant product recommendations
How can I better utilize my products and assets?
How can I deliver an omnichannel experience?
Core Business Processes
Workforce Engagement
Move away from lengthy and time-consuming batch processes
Attract and retain talent by clearly communicating business impact
Extend business processes, and deliver new value to customers
React quickly to market signals happening in real-time across the value chain
Enhance decision making with a cross-device, personalized user experience
Gain the flexibility to customize to changing customer demands in shorter planning cycles
Connect my enterprise to people, devices, business and social networks
Gain full visibility into critical human resource gaps to prevent business disruption
Orchestrate profitability with realtime sensing of demand-andsupply data
How can I better engage my workforce? How can I digitize my core?
Suppler Collaboration and Business Networks
How can I increase supplier collaboration?
Today’s challenges in managing customer projects or capital investment projects Project related data and processes are often distributed over multiple tools and applications ■ Many processes (e.g. Project estimation, Forecasting, Issue Management, Change Management, Risk Management) are often done in Excel or in specialized 3 rd party solutions ■ The different tools and applications are often not or only poorly integrated with the Enterprise Management (ERP) backbone system This leads to the following challenges ■ Lack of “single version of the truth” with different tools capturing redundant information ■ Delays in reporting due to periodic synchronizations & manual reconciliation ■ Missing transparency in the organization about the true status of the projects ■ Missing ability to learn from previous projects for future projects ■ Missing consistent change management with negative impact on the project margins ■ Project Managers spend too much time with internally focused activities
SAP Commercial Project Management: Our solution Initiate / Sell
Plan
Project Cost and Revenue Planning
Execute
Monitor & Control
Project Issue and Change Management
SAP S/4HANA Enterprise Management Project Financial Control
SAP EPC
Project Workspace
3rd party scheduling
Project Logistics Control Primavera, MS Project
Financials
Sales
Procurement
Digitize project management processes with SAP Commercial Project Management Integrated Project Cost Planning ■ One single source of truth between financial system and project management system eliminating the need for reconciliation between the two systems ■ Near real-time forecasting to achieve transparency on expected project outcome ■ Financial planning and forecasting based on flexible planning model (cost, revenue, cash flow, productivity etc.) Single access to all project relevant data ■ Integrated view on all aspects of a project (billing, procurement, cost planning, risks, issues, changes, documents, status reports etc.) ■ Embedded Analytics including alert functionality for early identification of issues Transparent Issue and Change Management ■ Change Management fully integrated with financial planning
End-to-end process with SAP Commercial Project Management CPM Workspace
Controlling and Analytics
Client and Project Acquisition
C4C, S/4H Sales CPM Financial Planning
CPM Workspace
Bid Estimation
WIP, Billing, Invoicing
S/4H Sales, Financials CPM Issue and Change Mgmt
Issue and Change Management
CPM Financial Planning
Project Lifecycle
Project Setup and Planning CPM Workspace, Financial Planning Resource Management
Forecasting
S/4H, Concur
S/4H Project Control
Time and Expenses
SAP MRS
Procurement S/4H Procurement
CPM Landscape
Architecture - SAP Commercial Project Management 1.0 for SAP S/4HANA Component Architecture
Functional Architecture CPM
CPM_S4H
Mandatory Optional SAP (pre-built integration) Optional 3 rd Party
Proj.
Scheduling Doc.
SAP S/4 HANA OP 1511
New solutions
Mgmt. CRM
SAP Netweaver 7.50
■ New Add-On : CPM_S4H Project Workspace
3rd
SAP S/4 HANA OP 1511
Res.
SD & PS for full functionality
3rd
MRS
SAP Netweaver
PPM
s n o i t u l o s d n a m e D n O
Project Cost and Revenue Planning Project Issue and Change Management
Open architecture that supports different SAP S/4 HANA OP 1511 solution architectures at the customer, e.g. ■ Usage of Sales & Project Control (for f ull functionality)
Based on SAP S/4 HANA OP 1511
■ Usage of Sales only ■ Usage of PPM Project Management (planned)
CPM Releases and Upgrade Paths CPM Available Upgrade Paths to CPM 1.0 S4H
CPM Available Software Releases
Source
CPM 1.0, Business Suite SP01
SP01
SP03
SP04
SP05
SP06
SP07
CPM 1.0 SP08
SP08
AnyDB
CPM 2.0, Business Suite SP01
CPM 2.0 SP02 AnyDB
CPM 2.0 SP02/SoH HDB
Target
SP02 CPM 1.0 S4H
For relevant underlying software Versions:
CPM 1.0 S4H
Link for Product Availability matrix and Installation Guide Note 2273207 - Documentation: SAP Commercial Project Management 1.0 for SAP S/4HANA, on premise edition 1601
Differences between CPM for S/4H and CPM for ERP
Differences of CPM 1.0 for S/4H to CPM 2.0 for ERP ■ Fiori apps and HANA content (VDMs) currently not part of CPM 1.0 for S/4H. HANA content is planned via CDS (Core Data Services) and new Fiori apps are planned for next release. ■ Simplification of out-of-the box delivered planning workbooks ■ C4C integration currently not supported ■ Rate Card functionality is available in S/4HANA. No further need for this specific functionality in CPM
CPM Workspace
Integrated View provided by Project Manager Workspace
Project Manager Workspace
Contracts and Billing
Project Scheduling
Resource Management
Purchasing
Issue Management
Financial Planning
Quality Assurance
Document Management
Change Management
Enhanced user experience providing a single view across systems and applications Better decision-making based on up-todate and accurate information Enhanced productivity of team members, less time spent searching and more time spent on value-added tasks Enhanced transparency about project status allows tighter monitoring and control to reduce project risks
Project Workspace – Key Features Provide an integrated view of the project • Bundling of existing business objects (e.g. Sales opportunity, Sales order, PS project) via new master project object
Embedded analytics • E.g. Cost Status Report, WI P Report, Progress Report
Configurable views dependent on user role • Pre-defined views for Project Commercials, Procurement etc.
Enhanced Project Management • • • • • •
Project Risk Management Status Reporting & Trends Checklists Rule based Alerts Roles & Responsibilities Reporting Attributes
Contract Management Enhancements • Billing Plan Manager • Billing Cockpit
Pre-delivered Project Workspace Views Views are defined by an administrator. UI blocks are assembled together based on role/context needs. New views can be configured. View
Description
Overview
Contains embedded analytics (cost status, progress, WIP, detailed project view)
Commercial View
Shows all relevant information around project commercial, contractual obligations and billing incl. A/R
Project Procurement
Shows all relevant information regarding project procurement (purchase order, open invoices, unreleased service entry sheets etc.)
Team Overview
Shows team structure and team members
Financial Plan
Serves as entry point into financial planning application
Issues and Changes
Entry point to manage issues and changes within a project
Document View
Entry into document management
Risk Management
Entry into project risk management
Demo Project Workspace
CPM Project Financial Planning
Project Financial Planning Objectives, Issues, Capabilities and Benefits
High-Level Estimate
Bid Estimate
Business Issues ■ How can I ensure accurate reliable bids? ■ How can I re-use previous bid and actual project outcomes during the bid phase? ■ How can I effectively plan cost and revenue consistently for my projects? ■ How can I keep track of my projects against plan and forecast outcomes?
Contract
Baseline Plan
Execution Version 1 (N)
Key business capabilities ■ Unified financial planning application of all aspects (resources, materials, expenses, 3rd party) ■ Bid, proposal, estimates and detailed baseline cost and revenue plans ■ Forecasting and ETC ■ Change requests / Supplements ■ Monitoring and Control ■ Process integration with core ERP master data and key downstream processes
...
Forecasting ETC, EAC
Benefits ■ Better usability and transparency resulting in a more efficient planning process ■ Improved decision making and better prediction of the future using integrated planning framework ■ End to End structured estimating and financial planning and forecasting process for projects ■ Timely and increased visibility and transparency into cost drivers, productivity and profitability of a project
Project Financial Planning Key Functions High-Level Estimate
Bid Estimate
Contract
■ Bid Structure
■ Import plan data from S/4H Project Controls
Baseline Plan
Execution Version 1
■ Transfer plan from bid structure to execution structure
Execution Version N
■ Change Requests ■ Forecasting ■ ETC / EAC
■ Downstream integration to S/4H (WBS, Network activities, MRS)
■ Planning of labor, material, expenses, 3rd party
■ Planning Sheet
■ Cash flow planning
■ Valuation Strategies
■ Version Management
Reporting ■ Version Comparison
...
■ Plan vs. Actual
Project Financial Planning Unified Project Financial Planning and Forecasting
High-Level Estimate
Bid Estimate
Contract
Baseline Plan
Execution Version 1 + (N)
...
Forecasting ETC, EAC
Architecture Financial Planning SAP BusinessObjects Analysis for Excel
SAP S/4HANA Hierarchical Structure
BW-IP Planning Engine
Project Financial Planning BW Cube Characteristics
MRS
Key Figures (by period)
Resource Type Resource Rate Quantity Cost Revenue Project Mgr 800 20 16.000 20.000 Plan Line Item 1 Labor
WBS elements and network activities including date constraints
PPM Project Management
Sales
Project Controls Project WBS 1 WBS 1.1 Network Activity 1 Activity 2
Depending on assigned object
Financials WBS
WBS 2
Resource Request
Cost / Revenue
WBS 1.2
Network Activity Cost
Demo Project Financial Planning
CPM Project Issues & Change Management
Project Issue and Change Management Overview Business Process Flow g n i s s e e u c s o r s P I
Issue not relevant
No change in cost or time
Change in cost or time
Change Request Identified / Documentation
g n i e s g s n e a c h o r C P
Clarification /RFI Evaluation
Issue Identified/ Documentation
Archived for analytical purpose
Detailed Cost Estimation of Change Request
Internal/could not be settle external
Project/ Budget Update
Execution of work
Impact on Time and additional cost need to be approved externally
Approved Change Order (items)
External Approval
Rejected Change Order (items) Revised Change Order
Dispute Resolution Process
Settlement of Change Order
Project Issue and Change Management – Key Features Project Issues • Attachments • Link to reference objects (e.g. SD orders, WBS elements) • Assignment of partner roles
Change Requests • Creation with reference to one or multiple issues possible • Change Document History • Collective Change Requests
Activity Management • Activity Management for Issues and Change Requests • Activities can be based on templates or can be freely defined • Flexible rule definition to create new activities
Approval processes • Internal and external approvals
Integration with Financial Planning • Multiple Cost Estimation Alternatives per Change Request supported
Demo Project Issue and Change Management
Summary SAP Commercial Project Management extends SAP S/4HANA and improves the end-to-end process coverage of customer projects and capital investment projects
User friendly and flexible user interface with focus on project / engagement Complete view on all project relevant aspects (resources, financial planning, billing, procurement, status, issues, change management etc.)
Benefit
Increase profitability of projects through increased insight and control
Enhance employee productivity
Language availability*
English, German, Arabic, Spanish, French, Japanese, Korean, Dutch, Portugese, Russian, Turkish, Chinese
CPM Next Awareness Session Delta info session for CPM for S/4HANA April 22nd 2016 • 9 am CET • 4 pm CET
Transition CPM 1.0 S4H is for SAP's next generation business suite S/4 HANA. For installed base, business suite customers transition to S/4HANA is required. This is a pre-requisite of using CPM 1.0 S4H How to transition from current business suite to S/HANA is beyond the scope of this document. Relevant information can be found at the link: https://help.sap.com/s4hana_op_1511 CPM 1.0 or CPM 2.0
Net New deploy new installation
CPM 1.0 S4H
SAP Business Suite on anyDB customer
Installed Base
upgrade to latest EHP, migrate database to SAP HANA, deploy exchange innovation
SAP Business Suite on HANA customer
deploy exchange innovation
CPM 1.0 S4H
