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SAP WORLD TOUR 09 meets

3rd SAPience.be TECHNOLOGY DAY

Project & Portfolio Management with SAP


Enabling portfolio managers to better identify, select, prioritize
and manage organization's projects

Dirk Raemdonck
Solution Architect PLM, SAP BeLux
SAP Lounge, Vilvoorde
June 3-4, 2009
Questions

Whom of you already use a Project Management Tool?


E.g. SAP Project System (PS), SAP cProjects, MS Project,
Primavera

Which functionality of the software do you actually use?


Budgeting, planned costs, actual costs
Activities and network, project scheduling
Resource assignment, capacity planning

Whom of you already use a software tool for Portfolio Management?

© SAP 2009 / Page 2


Agenda

1. Introduction
2. Portfolio Management
3. Project Management
4. Resource Management
5. Wrap-up
6. Questions & Answers

© SAP 2009 / Page 3


Project Success is Key
Bad projects impact growth, margin, working capital

Strategic Projects
Troubled projects
Area Issues Progress
increase working
Product Budget issues Tbd capital
Plant 2 ECV not 60% ?
confirmed
Late projects may
represent loss of
IT Project Risk Over time
needed cash inflow
management
Late, over-budget
projects impact profit
margin

© SAP 2008 / Page 4


Active Management of Project Portfolios

“Succeed with the right projects – powered by SAP RPM” “Run the project”

PS

FI/CO

Collect Evaluate & Balance Approve Integrate


Adobe, Import, Online Finance, Resource, Risk Gates, Workflow, Versions Finance, Progress, HR
Integrated Project Management
Better execution, integrating all project dimensions

Gartner‘s Maturity Model for PPM:


Five Dimensions (People, PPM Processes,
Technology, Financial Management,
Relationships) across 6 progressive Levels
Portfolio and Project Management
Key Stakeholders & Objectives – Example

“Integrated PPM requires careful assessment of


opportunities and risks, prioritization of projects,
and excellence in execution and handover”
COO/CFO

Steeering Committee PMO, Project Manager Resource Manager

Project
Portfolio Management Resource Management
Management

How do I assess risks and How do I make sure projects How do I align resources
opportunities to avoid wrong are executed on time and on available to incoming demand
investment decisions? budget? and future requirements ?

Average break-even time % of projects in time, Resource utilization


Average planned ROI budget and scope Average time to access
deviation % Overdue project tasks project staffing
Total deviation of planned Project profitability
Number of escalations
budgets % of external versus
% Projects with high risk Earned Value internal resources
Agenda

1. Introduction
2. Portfolio Management
3. Project Management
4. Resource Management
5. Wrap-up
6. Questions & Answers

© SAP 2009 / Page 8


Portfolio Management

Portfolio Management Assess investment opportunities


and orchestrate project portfolios

Portfolio Resource
Project Management
Management Management
Portfolio Management
Objectives, Issues, Capabilities and Benefits

Objective:
Optimal portfolio decisions and project execution
Align project portfolio to support growth and strategy

Best practice solution:


Integrated portfolio and project management to assess investment opportunities
regarding risk and priorities and govern the execution of the projects

Issues Capabilities

Objective selection Evaluation, simulation


criteria and scoring
Effort of decision- Structured risk
making evaluation
Lack of governance Gated approval process
Cost over-runs Visibility
Governance based on
operational data
Portfolio Management
Integration Process Strategy Mgt <> Portfolio Mgt

Strategy
A strategy is expressed in one or
SAP Strategy more objectives
Management
To each objective one or more
initiatives are linked
Objective
Objective
Objective To each initiative one or more KPI’s
are linked
To each KPI a project portfolio can
be linked e.g.
KPI for the initiative can be fed from
KPI
KPI Project project portfolio data
KPI Portfolio
SAP Resource
& Portfolio
Management
Strategy Management
Strategy to Execution - Balanced Scorecard Objectives
Strategy Management
Strategy to Execution - Balanced Scorecard Initiatives
Strategy Management
Strategy to Execution - Balanced Scorecard KPI
Strategy Management
Strategy to Execution - Balanced Scorecard KPI
Portfolio Management
Item Dashboard
Portfolio Management
Reporting Cockpit
Portfolio Management
Item Details
Portfolio Management
Questionnaires
Portfolio Management
Portfolio Optimizer
Portfolio Management
Portfolio Reporting
Portfolio Management
Portfolio Reporting
Portfolio Management
Objectives, Issues, Capabilities and Benefits

Objective:
Optimal portfolio decisions and project execution
Align project portfolio to support growth and strategy

Best practice solution:


Integrated portfolio and project management to assess investment opportunities
regarding risk and priorities and govern the execution of the projects

Issues Capabilities Benefits

Objective selection Evaluation, simulation Reduced risk


criteria and scoring Streamlined planning
Effort of decision- Structured risk Better resource usage
making evaluation
Better contracts
Lack of governance Gated approval process
through visibility
Cost over-runs Visibility
Real-time visibility
Governance based on
operational data
Portfolio Management
SAP Solution

SAP Solution

Strategy Management to communicate


business goals
Integrated from idea stage to closing
Flexible phase gate process
Integration with operations
Operationalized governance
SAP RPM, SAP Strategy Management, SAP
Business Objects

SAP Differentiators

Decision support: Fact based, real time, from strategy to project

Integration: Seamlessly integrated with ERP, and SAP NetWeaver

Flexibility: Data and Process Model


Agenda

1. Introduction
2. Portfolio Management
3. Project Management
4. Resource Management
5. Wrap-up
6. Questions & Answers

© SAP 2009 / Page 25


Project Management

Projects
Efficient management of projects
fully integrated with operations

Project Resource
Portfolio Management
Management Management
Project Management
Objectives, Issues, Capabilities and Benefits

Objective:
Efficient delivery of high quality projects in time, budget and scope

Best practice solution:


Execute the project in a consistent way that ensures that expectations for quality,
timeliness and costs are met, or even exceeded

Issues Capabilities

Lack of control Planning leveraging


Deviations unnoticed templates
for too long
Continuous progress
Material control and cash flow control
Collaboration
depends on emails Logistical postings
and individuals against project

Structured collaboration
Project Management
Project Structure
Project Management
GANTT Chart
Project Management
Project Costing
Project Management
Project Milestone Trend Analysis
Project Management
Objectives, Issues, Capabilities and Benefits

Objective:
Efficient delivery of high quality projects in time, budget and scope

Best practice solution:


Execute the project in a consistent way that ensures that expectations for quality,
timeliness and costs are met, or even exceeded

Issues Capabilities Benefits

Lack of control Planning leveraging Compare in a


Deviations unnoticed templates meaningful structure
for too long
Continuous progress Immediate reaction to
Material without and cash flow control issues
Collaboration
depends on emails Logistical postings Visibility of costing and
and individuals against project progress

Structured collaboration No loss of information


Project Management
SAP Solution

SAP Solution

Structured information exchange


Planning and accounting based on
work break-down and networks
Procurement related to project
Progress monitoring
SAP Resource and Portfolio Management,
SAP cProjects, SAP Project System

SAP Differentiators

Integration: Enterprise oriented project execution with tight integration

Scalability: All scenarios, multiple workflows, languages, etc.

Collaboration: Exchange via collaboration folders.


Agenda

1. Introduction
2. Portfolio Management
3. Project Management
4. Resource Management
5. Wrap-up
6. Questions & Answers

© SAP 2009 / Page 34


Resource Management

Resources
Align and optimize resources
along corporate objectives

Resource
Portfolio Management Project Management
Management
Resource Management
Project Roles
Resource Management
Resource Manager
Resource Management
Cross Application Timesheet (CATS)
Resource Management
Resource Dashboard Application
Resource Management
SAP Solution

SAP solution

Resource search and assignment


Overview of demands and
resources, soft and hard bookings
Reverse search
Service procurement
SAP Resource and Portfolio Management,
SAP cProjects, SAP Project System, SAP Multi
Resource Management

SAP differentiators

Complete Process Flow: Flexible role support


Global Capabilities: Efficient allocation across organizations and
geographies
Analytical Insights: Resource utilization forecasting
Agenda

1. Introduction
2. Portfolio Management
3. Project Management
4. Resource Management
5. Wrap-up
6. Questions & Answers

© SAP 2009 / Page 41


Portfolio and Project Management
End to End Process – Example

“The SAP solution connects business planning, portfolio assessment, project


management, and operations to ensure efficiency and effectiveness”

• COO/CFO

Steering Committee PMO, Project Manager Resource Manager

Portfolio Project Management Resource Management


Management

COO, CFO Long-term Capital Program Project Strategic


Controlling
Planning Budgeting Governance Accounting Planning

PMO Initiate Project Project Demand


Project Planning
Project Execution Controlling Management
Project Manager

Human Resource Talent


Management
Talent

Engineering Document Time & Expense


Management recording
VP, Engineering

Supply Chain General


Procurement Collaboration
VP, Supply Chain
Contracts
Why SAP?

1. SAP delivers an end-to-end solution for Portfolio


and Project Management

2. Lower TCO through native integration

3. Broadly adopted by industry leaders across the


value chain

4. Comprehensive process-specific
benchmarking and dashboards services to
maximize your value

5. Targeted Services from SAP Consulting and


Partners to leverage the Value Potential
efficiently and step-by-step
Oil & Gas, Mining customers using SAP for
Capital Project Portfolio Management

“Integrated Long-Term Planning, “Prioritizing and Monitoring the “Actively managing the
Budget Process and Projects Portfolio of 2000 Modifications Portfolio of Capital Projects
execution at the world’s largest to comply with Health, Safety and Investments at
platinum producer ” & Environment requirements” the Engen Refinery”
SAP RPM 4.0, SAP PS, MS-Project SAP RPM 2.0, SAP PS, SAP PM
Align strategy & capital spend 4.6 C Integration and creation of SAP RPM 4.5 implementation
Understand resource & budget Portfolio Item from PM-Notifications at Refinery in Durban for capital
constraints. Integrated and Collaboration Link to Teamsite projects in 6 month; Phased Rollout
auditable capital planning & R/3 Transactions available in the of Initiatives, Programs, Projects
monitoring Portal PS-Integration
across the business

350+ Oil&Gas and Mining companies rely on SAP:

... to mange daily project operations and maximize the value of their capital project portfolios
Financial and Public Services customers using
SAP for Project- and Portfolio Management

“PPM for strategic business “SAP RPM to speed up IT “Integrated and efficient
dealings and projects at the planning and project reporting, Requirement-
Federal Office of IT, Systems and replacing MS-Access with a Management with RPM at the
Telecommunication” packaged implementation” 3rd biggest Swiss bank”
RPM as Service used for Resource- SAP RPM linked Enterprise SAP RPM 4.5 for collection,
mgmt., IT, Strategic Planning and Planning and IT – Strategy bundling, prioritization and
political Dealings. SAP RPM 4.0, Workflow support for phases, gates management of requirements;
cProjects, CATS, SAP PS, MSPro. IT cost center budgets automatically Integrated with SAP Financials,
derived from PPM/SEM - Integration Project System and Invest. Mgmt.

500+ Financial and Public Service organizations rely on SAP:

... to mange daily project operations and maximize the value of their project portfolios
Service, Telecommunication and Utilities
customers leveraging SAP RPM and cProjects

“End-to-End project processes to “Project- & Portfolio “Improved IT project visibility,


optimize finance & unavailability Management at Corp. Systems collaboration & streamlined
at the leading player in Europe Unit of the Nordic and Baltic the processes at America’s
within renewable energy sector” telecommunications leader” most reliable electric utility”
SAP RPM & cProjects 4.0 support SAP RPM 4.0 SAP RPM 4.0 & cProjects,
project handbook & methods Implementation by the customer & integrated to SAP FICO, HCM
Long-Term Planning, Unavailability very low external consulting support 30-60-90 Day Resource Visibility
of turbines, risk evaluation Showcase approach & phased Dynamic KPIs & Project Status
PM, Internal Orders implementation at other business IT-Governance, Standard
IT PPM Support units Reporting

1000+ Service, Telecommunication and Utility companies rely on SAP:

... to mange daily project operations and maximize the value of their project portfolios
Consumer Products customers using SAP
PPM for R&D, IT and other areas

“Provide one IT project portal “Global New Product “Enterprise Portfolio Management
for project information at the Development and Introduction - that helps to ensure that projects
world largest beverage NPDI - at the world's most support the business strategy of
company” international tobacco group.” a leading Dairy Company”
Phased approach to migrate from Optimize the product portfolio with Sophisticated RPM & cProjects 2.0
multiple tools to one integrated tool SAP RPM & cProjects. Global project completed in 9 month
Initially deployed SAP RPM for process & project methodology for Phased approach IT, R&D, others
process governance and reporting portfolio, projects, documents, One fully integrated solution to
Continuous enhancement and reporting; New Products & support full visibility and
improvement Modifications decision support
of Existing

1000+ Consumer Products companies rely on SAP:

... to mange daily project operations and optimize projects across all areas
Aerospace & Defense, Industrial Machinery,
HighTech, Automotive
Customers rely on SAP to manage their Portfolio-,
Resource- and Project Management:

© SAP 2007 / Page 48


Agenda

1. Introduction
2. Portfolio Management
3. Project Management
4. Resource Management
5. Wrap-up
6. Questions & Answers

© SAP 2009 / Page 49


Q&A

© SAP 2009 / Page 50


Thank you!

© SAP 2009 / Page 51