Project- and Project Portfolio Management with SAP

Mario Wolff Solution Management mySAP PLM und SAP xApps

Project Management Portfolio Management Idea & Concept Management ...with SAP
SAP Solution Portfolio
- Overview

Project Management with C-Projects - Components in Detail Portfolio Management with SAP xRPM
- Experiences at Federal Office for IT (BIT)
(Bundesamt fr Informatik & Telekommunikation)

Project Management Portfolio Management Idea & Concept Management ...with SAP
SAP Solution Portfolio
- Overview

Project Management with C-Projects - Components in Detail Portfolio Management with SAP xRPM
- Experiences at Federal Office for IT (BIT)
(Bundesamt fr Informatik & Telekommunikation)

Pain points in Portfolio and Project Management

Portfolio Lifecycle
Initiating Planning Executing Controlling

Incomplete overview on planned and proposed projects and other activities Insufficient project registration

Lack of strategic alignment Underestimation of cost, time and capacity Incomplete statement of requirements Insufficient due diligence before development

Insufficient monitoring of primary key performance indicators across portfolio Lack of strategic alignment No clear responsibilities and commitments on project deliverables (e.g. tasks and due dates) Inefficient resource staffing process Slow reaction to unplanned events or scope changes

SAP AG 2002, Title of Presentation, Speaker Name 4

How Billions are Lost Annually on IT Projects

23%

28%

23% Successful projects 49% Challenged projects 28% Impaired/Cancelled projects

49%

Successful Projects (23%):

Project is completed on-time and on-budget With all the features and functions as initially specified

Challenged Projects (49%):

Project is completed and operational Over-budget (~180%, resulting in $55 billion in losses) Over the time estimate Offers fewer features and functions than originally specified

Impaired/Cancelled Projects (28%):

Project is canceled at some point during the development lifecycle Resulting in about $80 billion in losses
Source: The Standish Groups CHAOS 2001 Research
SAP AG 2002, Title of Presentation, Speaker Name 5

Why Implement a Comprehensive Solution

Portfolio Lifecycle
Initiating Planning Executing Controlling

Manage Portfolios Increase Visibility Enable Communication Enforce Governance

Aligned with strategy? Will meet business performance targets? What is the resource demand and what is the capacity? Aggregate information for Management Drill down to individual portfolio item (e.g. projects, operational services, concepts)

Top to bottom (strategy) or Bottom up (escalation) Exchange information with partners efficiently Registration and enforcing an enterprise decision-making process for approving portfolio items Standard compliance (process methodologies)

SAP AG 2002, Title of Presentation, Speaker Name 6

SAP Solutions: mySAP ERP Solution Map 2004

End-User Service Delivery Analytics Strategic Enterprise Management Financial Supply Chain Management Financial Analytics Operations Analytics Workforce Analytics

Financials

Financial Accounting

Management Accounting

Corporate Governance

Human Capital Management Procurement and Logistics Execution Product Development and Manufacturing

Talent Management

Workforce Process Management Inventory and Warehouse Management Enterprise Asset Management Professional-Service Delivery

Workforce Deployment

Procurement

Supplier Collaboration

Inbound and Outbound Logistics

Transportation Management Life-Cycle Data Management Incentive and Commission Management Quality Management

Production Planning

Manufacturing Execution Aftermarket Sales and Service Project Portfolio Management

Product Development

Sales and Service

Sales Order Management Real Estate Management

Global Trade Services

Corporate Services

Travel Management

Environment, Health and Safety

SAP NetWeaver

People Integration

Information Integration

Process Integration

Application Platform

SAP AG 2002, Title of Presentation, Speaker Name 7

Terminology
The planning, execution, and control of projects is commonly referred to as Project Portfolio Management. This is a subset of the SAP solution SAP tracks the entire portfolio (concepts, projects and operational services) for an area of business: R&D, IT, Professional Services, others. Strategic Portfolio Management from SAP provides the ability to better align activities with business priorities Operational Portfolio Management provides visibility into all portfolio items operations (services), projects, and concepts Operational Project Management supports all project-related activities Project and Portfolio Management from SAP is a comprehensive solution, which supports various scenarios (industry-specific, across industries and business areas)
SAP AG 2002, Title of Presentation, Speaker Name 8

Leveraging SAPs Solutions to Meet Business Needs

Scenarios (e.g. NPDI*) INVENT DEFINE DEVELOP LAUNCH

Strategic Portfolio Management Business Processes Resource Management Idea & Concept Management Operational Project Management (Planning, Execution, Accounting)

* NPDI = New Product Development and Introduction

SAP AG 2002, Title of Presentation, Speaker Name 10

Leveraging SAPs Solutions to Meet Business Needs

Scenarios (e.g. NPDI*) INVENT DEFINE DEVELOP LAUNCH

Strategic Portfolio Management Business Processes Resource Management Idea & Concept Management Operational Project Management (Planning, Execution, Accounting) SAPs Solution for SAP Products & Components
Product Innovation Management (PIM) SAP xApp Resource and Portfolio Management (xRPM) + SAP xApp Product Definition (xPD)

* NPDI = New Product Development and Introduction ** SAP xRPM has connectivity to different SAP and non- SAP project management applications
SAP AG 2002, Title of Presentation, Speaker Name 11

SAPs Support for NPDI

Strategy

Portfolio Mgmt.

Control

Project, Resource and Cost Management

Execution

Product Development

Strategic Sourcing Supply Chain Planning

Prototyping Production Ramp-Up

Market Launch

SAP AG 2002, Title of Presentation, Speaker Name 12

Leveraging SAPs Solutions to Meet Business Needs

Scenarios (e.g. NPDI*) INVENT DEFINE DEVELOP LAUNCH

Strategic Portfolio Management Business Processes Resource Management Idea & Concept Management Operational Project Management (Planning, Execution, Accounting) SAPs Solution for SAP Products & Components
Product Innovation Management (PIM) Project and Portfolio Management (PPM)

SAP xApp Resource and SAP xApp Resource and Portfolio Management (xRPM) Portfolio Management (xRPM)** + + SAP xApp Product Definition (xPD) cProject Suite / Project System (part of mySAP ERP)

* NPDI = New Product Development and Introduction ** SAP xRPM has connectivity to different SAP and non- SAP project management applications
SAP AG 2002, Title of Presentation, Speaker Name 13

Project Portfolio Management with SAP xRPM

Project Proposal High Level Project Planning Approval Creating Projects in underlying Project Management Systems

Time Planning Costs Planning Budget Planning Strategic Planning and Managing of Project Portfolios Material Planning Project Resource Planning Collaboration with Partners Simulate and Prioritize Portfolios

Aggregation Integration Analysis

Simulation Confirmation ...

Company wide Resource Planning

SAP xRPM
SAP AG 2002, Title of Presentation, Speaker Name 14

Project Management System

Leveraging SAPs Solutions to Meet Business Needs

Scenarios (e.g. NPDI*) INVENT DEFINE DEVELOP LAUNCH CONTROL

Strategic Portfolio Management Business Processes Resource Management Idea & Concept Management Operations

Operational Project Management (Planning, Execution, Accounting) SAPs Solution for SAP Products & Components
Product Innovation Management (PIM) Project and Portfolio Management (PPM) Operational Portfolio Management

SAP xApp Resource and Portfolio Management (xRPM)** + + SAP xApp Product Definition (xPD) cProject Suite / Project System
(part of mySAP ERP)

mySAP ERP
* NPDI = New Product Development and Introduction ** SAP xRPM has connectivity to different SAP and non- SAP project management applications
SAP AG 2002, Title of Presentation, Speaker Name 15

Component View I

Strategic and Operational Portfolio Management SAP xRPM

programs projects services
Six Sigma Project Portfolio(s) Enterprise IT Portfolio Professional Services Portfolio(s)

R&D Portfolio(s)

Idea and Concept Management

SAP xPD

cProjects, Project System, 3rd party systems

Project Management

Service Management

(availability, skills, org str)

SAP AG 2002, Title of Presentation, Speaker Name 16

HR

(budget/actuals)

Financials/ Controlling

(time tracking)

Labor

Component View II
SAP SAP xRPM xRPM

Strategic Portfolio Management

SAP xPD

Registration Monitoring Governance

Alignment Simulation

cProjects Project System Operative Project Management

Planning Scheduling Execution Monitoring

Fac Mtc Plt Mtc Srv Mgr

Idea and Concept Management

Integration Legend
Delivered Custom Ideation Manage Funnel

Service Management

3rd party Project Management Systems (e.g. MS Project)

SAP NetWeaver

mySAP ERP Human Capital Mgmt Human Resource Management

Skills Availability Source Org Structure

mySAP ERP Financials

Financials
Planned/Actual Cost Centers IOs/POs/WBS

SAP AG 2002, Title of Presentation, Speaker Name 17

The Evolution of Project Management LEVERAGING EXISTING INVESTMENTS

Project Management Maturity Across Industries

YESTERDAY

TODAY
Project and Portfolio Management*

SAP NetWeaver xRPM**

Visibility and Collaboration

xRPM**

cProjects Project System Project System

cProjects Project System

Integrated processes

Business Application and Technology Advances

* SAPs Solution for Project Portfolio Management consists of the products xRPM and cProjects/Project System. SAP xRPM = SAP xApp Resource and Portfolio Management; cProjects = Collaboration Projects ** SAP xRPM has connectivity to different SAP and non- SAP project management applications
SAP AG 2002, Title of Presentation, Speaker Name 18

Supporting Various Business Scenarios

Enterprise IT Portfolio Management (all industries):
Optimize base operations Align IT activities with corporate priorities Support IT projects and services Reduce overhead and administration associating with status reporting

Professional Services:
Handle complete lead-to-cash process Monitor performance of customer deliverables Forecast resource demand, match to supply

New Product Development & Introduction (all manufacturing industries):

End-to-end management of the product innovation lifecycle Select optimal portfolio Allocate resources to priority initiatives

Other (e.g. Six Sigma)

Improve resource allocation and information sharing across multiple portfolios (Six Sigma and non Six Sigma, etc.) Focus on process improvement as well as projects delivering change or new products
SAP AG 2002, Title of Presentation, Speaker Name 19

Benefits and Differentiators

Three reasons why comprehensive and enterprise-wide project and portfolio management is best from SAP: Reason 1: Higher portfolio and project visibility
Managing all portfolio items across enterprise with one solution Adressing all stakeholders from C-level to project/service team member Seamlessly integrating information from mySAP ERP (logistics, financials and human resources), analytical applications (e.g SAP BW), and user interface (SAP NetWeaver Portal)

Reason 2: Better cost control

Alignment with business strategy and portfolio optimization Efficient ressource allocation and support of sourcing strategies Compliance with standards, corporate policies, and best practises

Reason 3: Leverages existing IT investment

Open system architecture, supports heterogenous IT infrastructure Flexible and scalable solution Service Oriented Architecture powered by SAP NetWeaver

SAP AG 2002, Title of Presentation, Speaker Name 20

SAP xApp Resource and Portfolio Management (SAP xRPM)

SAP xRPM maximizes portfolio value and aligns it to organizational objectives by combining human, financial, and other operative aspects of your portfolio.
Align portfolio to organizational objectives through simulation and prioritization Forecast resource demand and match to supply Monitor portfolio performance through increased visibility into operations and sophisticated analytics Maximize return on existing investments in systems, skills, and people Identify and deploy the right resources to the right activities at the right time Pre-Integrated to SAP and 3rd party systems (Microsoft Project, Primavera,) Make fact-based decisions SAP xApps are composite applications that snap-on to an existing, heterogeneous IT environment to implement new, cross-functional business processes
SAP AG 2002, Title of Presentation, Speaker Name 21

Reference Customers
Colgate, Lilly, VW, Buehler, BIT, General Mills, Sun, Agile, Aepex

Availability
SAP xRPM v.2.0 generally available

SAP xApp Product Definition (SAP xPD)

SAP xPD addresses the inefficiencies of the critical frontend product development processes: idea and requirements management, product definition, and design evaluation processes

Capitalize on the best ideas Standardize the front-end process for optimal go/no-go decisions Decrease time-to-market through better managed pipeline Develop products that meet market needs and are in-line with strategy

Reference Customers
Kaeser, Kimberly Clark

Availability
Version 1.0 is generally available
SAP AG 2002, Title of Presentation, Speaker Name 22

Collaboration Projects (cProjects)

cProjects supports operative project management following the phase-based process methodology with a focus on deliverables, roles and commitments.
Flexible project structuring by phases with gates, tasks, checklists Standardizes processes by using templates Scheduling via interactive Gantt-Chart Multi-project management Project versioning, simulation and status reports Integration scenarios to Project System, mySAP ERP Financials, Document Management, Quality Management

Reference Customers
Freudenberg, ZF, Mahle, Boots, Gems, Ingenics, Altim, Artesyn, SupplyOn

Availability
SAP cProjects 3.1 generally available

SAP AG 2002, Title of Presentation, Speaker Name 23

Project System
SAP`s Project System application supports all project management processes that require a tight integration into logistics and financials to solve complex problems.
Structures based on templates Various scheduling techniques Capacity Planning based on work centers Cost and budget planning Project execution with strong logistics integration Time recording Milestone or resource-related billing Project progress tracking Analytics
SAP AG 2002, Title of Presentation, Speaker Name 24

Reference Customers
Airbus, Audi, Ericsson, Norsk Hydro, Brose, LSW,

Availability
Project system is included in mySAP ERP 2004 (general available)

cProjects and Project System: When to Use What ?

SAP xRPM Strategic and Operational Portfolio Management Operational Project Management

Collaboration Projects
n Sc Integratio enarios

Project System

Phase-based process methodoloy

Logistic Integration

Collaboration with partners

Tight Financial Integration

cProjects support collaborative phase-based processes especially in IT, R&D, and Professional Services. Project System offers project accounting and logistical capabilities and is primarily used for project manufacturing, utilities, and engineering & construction industries. Integration scenarios between cProjects and Project System are possible.
SAP AG 2002, Title of Presentation, Speaker Name 25

Project Portfolio Management - Customer Successes 1/2

Freudenberg Seals / Vibration Control Tech. Germany Universal Pictures Media and Entertainment UK Boots Retail Chemists & Healthcare UK InGenics Consulting Germany Artesyn High-Tech US ZF Automotive Supplier Germany
SAP AG 2002, Title of Presentation, Speaker Name 26

Gems Consulting US Mahle Automotive Supplier Germany Altim Service Provider Spain SAP IT Germany KaVo Equipment for Dentists Germany

Project Portfolio Management - Customer Successes 2/2

Volkswagen AG, Germany

Buehler Group, Switzerland

Agile Solutions, Brazil

BIT, Federal Office for IT, Switzerland Whirlpool, USA

SBC, USA

AEPEX, Netherlands

Bristol-Myers Squibb, USA

Sercon, Germany

Linklaters, UK General Mills, USA Arla Foods, DK Pecaso, Germany

SAP AG 2002, Title of Presentation, Speaker Name 27

Project Management Portfolio Management Idea & Concept Management ...with SAP
SAP Solution Portfolio
- Overview

Project Management with C-Projects - Components in Detail Portfolio Management with SAP xRPM
- Experiences at Federal Office for IT (BIT)
(Bundesamt fr Informatik & Telekommunikation)

cProject Suite
The cProject Suite consists of two web-based applications:
cFolders for design collaboration

cProjects for phase-based project management

SAP AG 2002, Title of Presentation, Speaker Name 29

cProjects in a Nutshell
Clear definition of deliverables and responsibilities Flexible project structuring by phases with gates, tasks, checklists Standardizes processes by using templates Scheduling via interactive Gantt-Chart Multi-project management Project versioning, simulation and status reports Project Resource Planning Collaborative work on tasks with external partners using cFolders Various integration scenarios, f.ex. integration to: Project System, mySAP ERP Financials, business objects via links, Document Management (DMS), Quality Management, etc. WebServices enablement
SAP AG 2002, Title of Presentation, Speaker Name 30

cProjects supports operative project management following the phase-based process methodology with a focus on deliverables, roles and commitment management.

Key Elements of cProjects

cProjects

Structuring Scheduling Resource Management Reporting Integration Scenarios

xRPM/xPD Project System Cost Management (mySAP ERP Financials) Object Links Document Management System Quality Management cFolders WebServices Windows File Explorer

SAP AG 2002, Title of Presentation, Speaker Name 31

Structuring

Project templates for methodology based development processes Phase-based structure and deliverables defined by checklists Planning of approvals (Quality Gates) to guarantee project progress Tasks with e.g. duration, responsibilities, and relationships Task hierarchies to break down work packages

SAP AG 2002, Title of Presentation, Speaker Name 32

Multi-Project Management

Master project

Project 1
Subproject

Project 2 Mirrored Task

Projects can be divided into subprojects Tasks from other projects can be used for information and scheduling Programs can be set up to manage multiple projects Scheduling does not affect other projects directly -> only alerting

SAP AG 2002, Title of Presentation, Speaker Name 33

Project Versions & Simulations 1/2

Project versions allow the user to collect a snapshot of the project at a certain point in time The user can then perform comparisons
Comparisons between 2 versions Comparisons between the current operative project and a version
SAP AG 2002, Title of Presentation, Speaker Name 34

Project Versions & Simulations 2/2

Project simulation allows the user to capture a version of the operative project that can be manipulated and changed. In this way, it is possible to perform what-if analysis regarding:
Allocation of resources Changes to schedule Changes to structure

After completing the simulation, it is then possible to apply these changes to the operative project via reconciliation
SAP AG 2002, Title of Presentation, Speaker Name 35

Easy Task Entry

It is now possible to quickly enter Phase-related tasks in cProjects which will expedite data entry
SAP AG 2002, Title of Presentation, Speaker Name 36

Customer Fields

New tab and customerSpecific fields

It is now possible to append tables in cProjects which will allow the use of customer-defined fields and tabs Development work is performed in the backend WAS using SE38 and instructions available in the IMG
SAP AG 2002, Title of Presentation, Speaker Name 37

Scheduling

Graphical maintenance of dates and relationships Manual or system supported scheduling of phases and tasks Visualization of critical path
SAP AG 2002, Title of Presentation, Speaker Name 38

Microsoft Project up- and download

Exchange cProject data with Microsoft Project (supported releases MS Project 2000 and XP) Use MS Project for
Offline viewing (travel) and offline presentations Printing the GANTT chart*
* With cProjects 4.0 it is planned to enable Gantt chart printing
SAP AG 2002, Title of Presentation, Speaker Name 39

Resource Management 1/2

1

Skills Availability Organization

3
Project Team

Clear responsibility for each project element, e.g. phase, task, or checklist item Cross department project teams with roles Role assignment with search functions based on skills Flexible ressource planning based on availability (with WFM)
SAP AG 2002, Title of Presentation, Speaker Name 40

Resource Management 2/2

Work list for Resource Manager: Resource Managers get a work list with project roles that need to be staffed. The work list includes filter mechanisms. Staffing Process: Resource management supports a multi-level staffing process. Resource managers receive personalized information telling which project roles need to be staffed. You are able to delegate the responsibility for project staffing to other resource managers within the company, e.g. in case where a regional resource manager is only allowed to search locally and hands over to a global resource manager for staffing on an international base. Alerts for Resource Management: Exception-based alerts inform resource managers in their inbox or on their mobile device in case a threshold value was exceeded, e.g. a resources availability is exceeded or a project role is not fully staffed. Enhancements in search result list: In the search result list (table view) for each candidate the location and cost rate will be displayed.
Note: Use of WFM required

SAP AG 2002, Title of Presentation, Speaker Name 41

Groupware Integration

Only available when cProjects is installed on a CRM platform

Integration into MS Exchange and Lotus Domino

Assigned resources receive appointments in groupware application Availability based on HR master data + appointments in groupware

Hard- and soft booking

Soft book a resource for a project which is in scope but not 100% confirmed

SAP AG 2002, Title of Presentation, Speaker Name 42

Resources - Reporting

Provide a complete picture of Resource demand & allocation Booked and available resources Capacity Periodic date planning for role & resource (e.g. every Monday)
SAP AG 2002, Title of Presentation, Speaker Name 43

Reporting

Flexible reports inside cProjects including threshold values Full BW connection for
Multi-Project Reporting Reporting across cProjects & R/3 Project System BW reports e.g.:
Role assignment to tasks Project dates and effort - and much more
SAP AG 2002, Title of Presentation, Speaker Name 44

Project Status Report

Automatic creation of Project Status Reports Possible to add comments into the report Distribution of Status Report to multiple receivers Persistent storage of reports directly in the project
SAP AG 2002, Title of Presentation, Speaker Name 45

cProjects - Integration Scenarios

Automatic replication into Project System Logistic integration Hierarchical project controlling

2
Account assignment of internal order Collects all project costs on one object

cProjects

SAP PS

Object Links Link carries dates, costs, budget

1
Document

ECC* or R/3
WBS element Project definition Inspection Plan Material Network Network activity

Only available when cProjects is installed on a CRM platform

*ECC (ECC 5.0) stands for ERP Central Component and is the technical successor of SAP R/3 Enterprise.
SAP AG 2002, Title of Presentation, Speaker Name 46

Cost Management - Planning

cProjects
CO

Easy Cost Planning: Project Lead 20 Days Engineer Travel 10 Days 20.000 10.000 5.000 35.000

Full project costing functionality Automatic cost element planning based on resource assignments Template-based cost planning for additional expenses Leverage proven mySAP ERP Financials controlling functionality for costing Account assign any project related business activity to incorporate cost in project cost plan Assign budget to project
SAP AG 2002, Title of Presentation, Speaker Name 47

Cost Management - Tracking

CO

cProjects
Phase X Check List

SCM

CO

Time Tracking CATS II Target Task A M T W T F 6 8 2 3 8 4 5 4

Item 1 confirmation Item 2

Execution within SAP applications

Task B

Seamless Integration into mySAP ERP Financials

Task

Task Task

Seamless integration into time confirmation (released tasks show up in CATS worklist) Costs are determined and posted to CO, times into cProjects Complete reporting capabilities Budget / plan / actual comparisons Cost element reporting Cross project reporting

SAP AG 2002, Title of Presentation, Speaker Name 48

Microsoft File Explorer Integration

Integration of Project Structures into Windows File Explorer Enables e.g. save to task in Microsoft Word Seamless Easy check in / check out of documents using standard functions such as double click, drag & drop etc

SAP AG 2002, Title of Presentation, Speaker Name 49

Document Management System (DMS) Integration

Use of SAP Document Management System as storage for documents Create, Change and Access to documents directly from cProjects Transfer of documents to and from cFolders possible

SAP AG 2002, Title of Presentation, Speaker Name 50

cProjects for Advanced Product Quality Planning (APQP)

cProjects APQP Methodology

Object links ECC or R/3

Control Plan

Plan Generation

Q-Notifications (create, change, display)

Inspection lot Document Insp. plan

BOM

Routing Insp. plan

Problem Mgmt. 8D processing

FMEA PPAP

Statistical Process Control

Quality assurance agreements, technical delivery terms, specifications, etc.

QM plan

FMEA = Failure Method & Effect Analysis PPAP = Production Part Approval Process
SAP AG 2002, Title of Presentation, Speaker Name 51

Central Alert Server

Checklist Item marked as not ok! Your Task is due in 10 days! Alert Inbox Enterprise Portal Phase due date can not be reached! Approval declined!

Event

Alert Push

Push

SAPconnect: E-Mail, Fax, SMS, Pager, ...

NetWeaver cProjects 3.1 Central Alert Server

Alerts can be sent anytime in project execution based on custom defined formulas.
SAP AG 2002, Title of Presentation, Speaker Name 52

WAP Alert Inbox

Project Management Portfolio Management Idea & Concept Management ...with SAP
SAP Solution Portfolio
- Overview

Project Management with C-Projects - Components in Detail Portfolio Management with SAP xRPM
- Experiences at Federal Office for IT (BIT)
(Bundesamt fr Informatik & Telekommunikation)

SAP xRPM -- Introduction

SAP xApp Resource and Portfolio Management (SAP xRPM) delivers the foundation of strategic portfolio management by enabling portfolio planning and giving visibility into the execution from a financial, strategic and operational angle across the entire portfolio. SAP xRPM enables you to:
Align your entire project portfolio with corporate objectives through simulation and prioritization Monitor the performance of your portfolio through increased visibility into projects across the entire enterprise Forecast resource demand Identify and deploy the right resources Enforce governance Make fact-based decisions Maximize return on existing assets

SAP AG 2002, Title of Presentation, Speaker Name 54

Project Portfolio Management with SAP xRPM

Project Proposal High Level Project Planning Approval Creating Projects in underlying Project Management Systems

Time Planning Costs Planning Budget Planning Strategic Planning and Managing of Project Portfolios Material Planning Project Resource Planning Collaboration with Partners Simulate and Prioritize Portfolios

Aggregation Integration Analysis

Simulation Confirmation ...

Company wide Resource Planning

SAP xRPM
SAP AG 2002, Title of Presentation, Speaker Name 55

Project Management System

SAP xRPM - Benefits

Portfolio Transparency and Forecasts Easier Resource Forecasting Demand / Supply Balance Avoidance of Bottlenecks Validate Planning Model Collaboration, Workflows & Process Automation Portfolio Prioritization Increased Expected Value of Portfolio Scenario Modeling / What-If Analysis Reduced Decision Time Faster Execution Faster Resource Allocation Time To Market

Business Alignment

Higher Data Quality / Consistency Increased Data Visibility/ Transparency & Availability Timely Monitoring of Project Performance IT Infrastructure / Data Integration (HR, Financials, Project Management)
SAP AG 2002, Title of Presentation, Speaker Name 56

Earlier Stop Decisions, FactBased Decision Support Cost Savings Alerts Less Overspends Leverage IT Investment

SAP xRPM -- Key Capabilities

Projects
Portfolio Management Resource Management
BU Div Dep Project Team Role

Financials

SAP xRPM

Skills

Program Monitoring

Expertise Management

Skill-based Project Opportunities

Collaboration
SAP AG 2002, Title of Presentation, Speaker Name 57

Key Capability: Portfolio Management

Portfolio Management
Portfolio Inventory Scenario Modeling Portfolio Monitoring

Align your entire project portfolio with corporate objectives through simulation and prioritization. Monitor the performance of your portfolio through increased visibility into projects across entire enterprise.

SAP AG 2002, Title of Presentation, Speaker Name 58

Portfolio Management
Portfolio Inventory Scenario Modeling Portfolio Monitoring

Projects and Proposals Dashboards

View information about projects and proposals:
Budget Schedule Cost Expected benefits Risk Priority Dependencies Resource demand Available and qualified resources

SAP AG 2002, Title of Presentation, Speaker Name 59

Portfolio Management
Portfolio Inventory Scenario Modeling Portfolio Monitoring

Portfolio Prioritization
Define critical success factors (objectives) for your business. Determine the potential impact of each proposed and active project on achieving the objectives. Receive a ranked list of proposed and active projects and proposed distribution of scarce financial and human resources.

SAP AG 2002, Title of Presentation, Speaker Name 60

Portfolio Management
Portfolio Inventory Scenario Modeling Portfolio Monitoring

What-If Analysis
Define unique business case scenarios. Perform simulation by varying resource demand and allocation, budget allocations and time frames. Make educated decisions regarding which projects to fund more or less, which ones to cancel, continue or to postpone.

SAP AG 2002, Title of Presentation, Speaker Name 61

Portfolio Management
Portfolio Inventory Scenario Modeling Portfolio Monitoring

Project Dashboard
Centrally view all relevant project data including key performance metrics on budgets, schedules and staffing. Personalization allows to easily add customer specific KPIs.

SAP AG 2002, Title of Presentation, Speaker Name 62

Portfolio Management
Portfolio Inventory Scenario Modeling Portfolio Monitoring

Portfolio Reports
Evaluate the entire portfolio or individual projects using various key performance indicators, such as: Expected Commercial Value Risk Project Costs Spending Levels

SAP AG 2002, Title of Presentation, Speaker Name 63

Key Capability: Resource Management

Resource Management
Demand Definition Project Staffing Capacity Management

Forecast resource demand Identify and deploy the right resources at the right time.

SAP AG 2002, Title of Presentation, Speaker Name 64

Resource Management
Demand Definition Project Staffing Capacity Management

Demand Definition
Define high level resource demand on project level before approval of resource assignments. Planned resource demand is considered in What-If Simulations.

SAP AG 2002, Title of Presentation, Speaker Name 65

Resource Management
Demand Definition Project Staffing Capacity Management

Project Staffing
Automated workflows for staffing projects. Project Managers define project roles based on time demand and qualifications profile. Resource Managers assign resources to roles according to their availability and qualifications.

SAP AG 2002, Title of Presentation, Speaker Name 66

Resource Management
Demand Definition Project Staffing Capacity Management

Capacity Management
Create role-based resource forecasting. Report and consolidate demand for resources across multiple projects via global roles. Provide complete picture of:
Resource demand and allocation Booked and available resources Total workload Capacity

SAP AG 2002, Title of Presentation, Speaker Name 67

Key Capability: Expertise Management

Expertise Management
Skills Management Project Opportunities

Discover organizational expertise

SAP AG 2002, Title of Presentation, Speaker Name 68

Expertise Management
Skills Management Project Opportunities

Skills Management
Managers locate skills and knowledge across the organization. Employees maintain up-to-date information on skills and expertise.*

* Available through usage of standard SAP Employee Self-Service (ESS) within SAP Enterprise Portal

SAP AG 2002, Title of Presentation, Speaker Name 69

Expertise Management
Skills Management Project Opportunities

Project Opportunities
Team members can apply for new projects. They can search for projects by category, subcategory, location, and through profile matching. They can view a list of roles and apply for open project opportunities.

SAP AG 2002, Title of Presentation, Speaker Name 70

Key Capability: Program Monitoring

Program Monitoring
Project Definition Project Planning Project Management

Attain visibility into all projects of your portfolio Make informed decisions

SAP AG 2002, Title of Presentation, Speaker Name 71

Program Monitoring
Project Definition Project Planning Project Management

Project Definition
Create proposal Review project Approve project

SAP AG 2002, Title of Presentation, Speaker Name 72

Program Monitoring
Project Definition Project Planning Project Management

Project Planning
Upload project plans from heterogeneous project management systems. Consolidate planned cost and budget information from financial systems.

SAP AG 2002, Title of Presentation, Speaker Name 73

Program Monitoring
Project Definition Project Planning Project Management

Task Dashboard
Complete overview of all project tasks. Manage task status and % complete.

Project Dependencies
Create and manage project dependencies (project/milestone/task level. Example: Starting a task in one project depends on the outcome of a task in a different one.

SAP AG 2002, Title of Presentation, Speaker Name 74

Program Monitoring
Project Definition Project Planning Project Management

Project Collaboration
Create a shared workspace for each project. Project team members can share documents and project information and have threaded discussions.

Time Reporting
Project members record their time they have been working on projects.*

* Available through usage of standard SAP Employee Self-Service (ESS) within SAP Enterprise Portal

SAP AG 2002, Title of Presentation, Speaker Name 75

Outline

Challenges Facing Project Organizations SAP xRPM Product Overview SAP xRPM Business Scenarios SAP xRPM 2.0 Whats New SAP xRPM Architecture SAP xRPM Shipment SAP xRPM Customer Successes Information and Contacts
SAP AG 2002, Title of Presentation, Speaker Name 76

SAP xRPM Business Scenarios

SAP xRPM focuses on three primary business scenarios:
Scenario 1: Enterprise IT Portfolio Management Complete management and strategic alignment of the IT portfolio including projects, programs, and baseline IT services. Scenario 2: Product Innovation Management (PIM) End-to-end management of the product innovation lifecycle. Collection of product ideas and product enhancements during product definition. Product concepts to be commercialized are delivered to the portfolio - leveraging strategic planning and analytical capabilities. Scenario 3: Portfolio Management for Professional Services Complete visibility across the operational portfolio of projects and services.

SAP AG 2002, Title of Presentation, Speaker Name 77

Scenario: Enterprise IT Portfolio Management

Portfolio Management
Define Strategic Objectives / Policy Propose Project Idea

Resource Management

Project Management

Build Business Case

Prioritize Approve Initiate Project*

Resource Leveling

Allocate Project Resources**

Create Project Schedule

Assign Tasks

Monitor Portfolio

Manage Project

SAP AG 2002, Title of Presentation, Speaker Name 78

Scenario: Product Innovation Management (PIM)

Idea Management
Assess Opportunity Submit Idea Assess Idea Relate Ideas Draft Concept Screen Concepts Initiate and Work on Business Case Propose Project Enhance Business Case Prioritize Approve* Initiate Project** Resource Leveling Allocate Project Resources*** Create Project Schedule Assign Tasks Manage Project

Concept Development

Portfolio Management
Define Strategic Objectives / Policy

Resource Management

Project Management

Monitor Portfolio

SAP AG 2002, Title of Presentation, Speaker Name 79

Scenario: Professional Services Portfolio Management

Opportunity Management Portfolio Management Resource Management
Resource Leveling Initiate Project Opportunity Allocate Project Resources** Initiate Project*

Project Management

Create Project Schedule

Assign Tasks

Monitor Portfolio

Manage Project

SAP AG 2002, Title of Presentation, Speaker Name 80

SAP xRPM -- Architecture SAP xRPM

All components in this box get shipped to the customer.

SAP Enterprise Portal 6.0

JCO/RFC http

http

SAP xRPM Core on WAS 6.20

BW 3.5

ALE / BAPI

SAP XI 2.0 (optional)

SAP Financials 4.6B

Base Systems

SAP Human Resources 4.0B

SAP xApp Product Definition 1.0

Project Management*

Time**

*SAP Project System 4.6B; SAP cProjects 3.1; Microsoft Project 98, 00, 02; Microsoft Project Server 2002/2003 ** SAP LO CATS 4.6B
SAP AG 2002, Title of Presentation, Speaker Name 81

SAP xRPM Customer Successes

Volkswagen AG, Germany Buehler Group, Switzerland

Agile Solutions, Brazil

BIT, Federal Office for IT, Switzerland Whirlpool, USA

SBC, USA

AEPEX, Netherlands Bristol-Myers Squibb, USA

Sercon, Germany

Linklaters, UK General Mills, USA

SAP AG 2002, Title of Presentation, Speaker Name 82

Arla Foods, DK

Pecaso, Germany