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Commercial Project Management on S/4HANA

EKT - Overview Session
Dr. Martin Effenberger, SAP SE
March 2016

EKT Awareness
Session

Legal Disclaimer
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is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
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Agenda

What is Commercial Project Management (CPM)?

CPM Landscape

Differences between CPM for S/4H and CPM for ERP

CPM Project Workspace

CPM Project Financial Planning

CPM Project Issues & Change Management

Summary and Follow on Session(s)

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What is Commercial Project Management?

Business leaders need to digitally transform across five key pillars

Assets and
Internet of Things
Analyze sensor data from
products, and deliver outcomebased experiences
Monitor assets on the factory
floor to predict failure and
decrease downtime

Customer
Experience
Omnichannel
Engage customers more
personally with one-to-one
marketing
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?

Suppler Collaboration and

Business Networks

How can I increase supplier

collaboration?

How can I digitize my core?

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Todays 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 3rd 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
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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

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Procurement
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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
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End-to-end process with SAP Commercial Project Management

CPM Workspace

Controlling and
Analytics

Client and
Project
Acquisition

C4C, S/4H Sales

CPM Workspace
WIP, Billing,
Invoicing

S/4H Sales,
Financials

CPM Issue and

Change Mgmt
Issue and
Change
Management

CPM Financial
Planning

Project
Lifecycle

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S/4H Project Control

Project Setup
and Planning
CPM Workspace,
Financial Planning
Resource
Management

Forecasting

S/4H, Concur

CPM Financial
Planning
Bid Estimation

Time and
Expenses

SAP MRS

Procurement
S/4H Procurement
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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 3rd Party

Proj.

Scheduling
Doc.
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

On-Demand solutions

SAP S/4 HANA OP 1511

Project Cost and Revenue Planning

Project Issue and Change Management
Based on SAP S/4 HANA OP 1511

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Open architecture that supports different SAP S/4 HANA

OP 1511 solution architectures at the customer, e.g.
Usage of Sales & Project Control (for full functionality)
Usage of Sales only
Usage of PPM Project Management (planned)
Usage of 3rd party scheduling solutions
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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

AnyDB

SP08

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

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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

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CPM Workspace

Integrated View provided by Project Manager Workspace

Project Manager Workspace

Contracts and
Billing

Resource
Management

Project
Scheduling

Purchasing

Quality
Assurance

Document
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
Issue
Management

Financial
Planning

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Change
Management

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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, WIP 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
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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

This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This

2016 SAP SE or an SAP affiliate company. All rights

reserved.
document
is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose,

Public

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Demo Project Workspace

This presentation and SAPs strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This

2016 SAP SE or an SAP affiliate company. All rights

reserved.
document
is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose,

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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

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...

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

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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

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Plan vs. Actual

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Project Financial Planning

Unified Project Financial Planning and Forecasting

High-Level
Estimate

Bid Estimate

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Contract

Baseline Plan

Execution Version
1 + (N)

...

Forecasting ETC,
EAC

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Architecture Financial Planning

SAP BusinessObjects Analysis for Excel

SAP S/4HANA
Hierarchical
Structure

BW-IP
Planning Engine

Project Financial Planning

BW Cube

Characteristics
Key Figures (by period)
Resource Type Resource
Rate
Quantity Cost
Revenue
Plan Line Item 1 Labor
Project Mgr
800
20
16.000
20.000

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

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MRS
Resource
Request

Depending on assigned
object

Financials
WBS

WBS 2

Cost /
Revenue

WBS 1.2

Network
Activity
Cost

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Demo Project Financial Planning

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CPM Project Issues & Change Management

Project Issue and Change Management

Issue
Processing

Overview Business Process Flow

Issue not relevant

No change in
cost or time

Change in
cost or time

Change Request
Identified /
Documentation

Change
Processing

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

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Dispute Resolution
Process

Settlement of
Change Order

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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
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Demo Project Issue and Change Management

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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

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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

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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

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Thank you
Contact information:

Dr. Martin Effenberger

CPM Solution Owner
SAP SE
+49 6227 7 44166
martin.effenberger@sap.com