July 2013
Delivering Real-Time Business Value
for Engineering, Construction, and Operations
SAP Business Suite Powered by ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
Construction projects ca...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public
Becoming an-innovation driven enterprise
Align bus...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 4Public
SAP Business Suite powered by SAP HANA
The next-ge...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public
Industry value map for EC&O
Grow with the project-...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public
Industry value map for EC&O
Grow with the project-...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public
Today
KPI improvements are high-level estimates an...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public
Today
KPI improvements are high-level estimates an...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public
Today
KPI improvements are high-level estimates an...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public
Today
KPI improvements are high-level estimates a...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public
Today
KPI improvements are high-level estimates a...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public
Next step
Business scenario recommendation and va...
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Michael Quadt
Solution Mana...
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public
Customer case: construction company in Canada
Sum...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public
Customer case: construction company in Canada
SAP...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public
Note: Use cases in the global use case repository...
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Delivering Real-Time Business Value for Engineering, Construction, and Operations

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This deck is a SoH Executive positioning document in 3 parts for Engineering, Construction, and Operations

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Delivering Real-Time Business Value for Engineering, Construction, and Operations

  1. 1. July 2013 Delivering Real-Time Business Value for Engineering, Construction, and Operations SAP Business Suite Powered by SAP HANA Public
  2. 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public The real-time opportunity Construction projects carry ever higher risk because of increasingly demanding customer requirements. Engineering, construction, and operations (EC&O) companies need to continuously innovate business operations in order to meet their customers’ needs  Maximize project performance and profit margin  Find new ways to run projects more collaboratively  Reduce risk with predictive financial forecasts  Respond rapidly to evolving trends
  3. 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public Becoming an-innovation driven enterprise Align business operations with customer needs Ensure project performance and increase margins  Monitor construction projects constantly to maximize the margins for the individual projects  Get real-time visibility into project financials and the planned vs. actual values of projects Drive profitability by running projects in an integrated way  Use building information modeling benefits for engineering along with cost comparisons  Simplify project execution by using new technologies such as mobile and integrated 3D viewer Respond to market dynamics in real time  Control complex multilevel supply chains  Create flexible business models, accessing real-time detailed data and historic business data  Respond to bursting material prices
  4. 4. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 4Public SAP Business Suite powered by SAP HANA The next-generation business platform Real-time business In-memory Business transactions Digital connections Collaborative business CloudSocial Big DataMobile One platform bringing it all together Advanced analytics
  5. 5. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public Industry value map for EC&O Grow with the project-centric enterprise Asset Management Commercial Real Estate Optimized Asset Maintenance and Facility Operations Equipment and Tools Management Bid to Contract Award Opportunity and Proposal Management Collaborative Virtual Design and Construction Project Delivery Commercial Project Management Project Issue and Change Management Subcontractor Management Environmental Health and Safety Compliance Revenue Optimization and Project Profitability Invoice to Cash Subcontractor, Owner, Engineer, and Architect Collaboration Performance Analytics for Construction Projects and Portfolios People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration
  6. 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Industry value map for EC&O Grow with the project-centric enterprise Asset Management Commercial Real Estate Optimized Asset Maintenance and Facility Operations Equipment and Tools Management Bid to Contract Award Opportunity and Proposal Management Collaborative Virtual Design and Construction Project Delivery Commercial Project Management Project Issue and Change Management Subcontractor Management Environmental Health and Safety Compliance Revenue Optimization and Project Profitability Invoice to Cash Subcontractor, Owner, Engineer, and Architect Collaboration Performance Analytics for Construction Projects and Portfolios People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration Highest real-time business value for EC&O 3 2 4 5 1
  7. 7. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA Financial performance management Business value for financial performance management  Inability to adapt (plan, replan, monitor, and control) the business model, operations, product, and services provided in volatile market environments  Need to quickly adapt finance and business operations  Long performance-management cycles with complex consolidation landscapes  Inefficiencies due to multiple disruptions between planning and closing  Real-time simulations of planning and costing scenarios  Real-time enterprise profitability with large volumes of item-level data  Real-time modeling and simulation of product costing  No latency through heterogeneous consolidation landscapes and quasi-instant response times (even with large number of very complex calculations)  Real-time closing activities  Integrated planning for new and customer-defined scenarios  Increased efficiency, reducing operating cost and improving stakeholder satisfaction Reduce Reduce monthly end- closing time by 4% operating costs by 4%
  8. 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA Subcontractor management Business value for strategic purchase optimization  Unclear what sources of supply should be negotiated and used  Long cycle time to secure new sources, and significant overhead to manage suppliers  Real-time access to high volumes of purchasing data  Fast and complete search across all related business documents Increase process efficiency by 3% Optimize working capital by 5%  Lack of visibility into organization- wide demand  High volume of maverick buying  Need for greater efficiencies and savings from purchasing  Real-time calculation of savings and simulations  Visibility into supplier relationships, performance, spend, and savings in place to reduce supply risk and missed savings opportunities
  9. 9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA Performance analytics for construction projects and portfolios (1) Business value for enterprise portfolio and project management  Long wait times along business processes that hinder project execution  Time consuming maintenance and analysis of data for complex projects  Today the engineer-to-order process is a tight combination of controlling and logistics processes. The integration into ERP logistics is key but is also a challenge due to the need to load huge data volumes.  Inability to monitor and analyze all aspects of large projects simultaneously and drill down into relevant details  Improved run time of critical project management transactions  Real-time access to large volumes of data  Higher end-to-end process efficiency and improved employee productivity  On-the-fly analysis and calculation  Complete progress monitoring along the project lifecycle  Analysis and calculation of data directly on SAP HANA database  Enhanced process transparency that improves quality of work Increase efficiency by 3% Decreas Improve lead time from development to delivery of product by 2% project profitability by 6%
  10. 10. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA Performance analytics for construction projects and portfolios (2) Business value for enterprise portfolio and project management  Time-consuming analysis and progress monitoring of complex and long-lasting projects  Poor resource productivity and project profitability  It is impossible to monitor all aspects of a project due to high volume of data and detached analytics  Project progress monitoring cannot be done sufficiently to support decision processes  Deviations in costs, time, resources, or quality are detected too late in the process  Decisions to mitigate risks and opportunity costs are taken too late  Improved run time of project monitoring reports  Combined analysis of financials and logistics data  Real-time access to large volumes of data  On-the-fly analysis, calculation, and decision making  Early insight into deviations and risks, enabling timely corrective measures Increase efficiency of work on large projects by 5% Improve Reduce transparency of project related resources by 6% project failure rate by 4%
  11. 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA Equipment and tools management Business value for asset operations and maintenance  Maintenance scheduling that consumes a great deal of time.  Manual and error-prone process of preselection of maintenance plans  Potential to miss necessary objects for maintenance calls  High number of maintenance plans that need to be scheduled frequently  Accelerated mass transactions  Instant analysis on top of transactions  Preselection of due plans, which speeds up the process significantly  Real-time analytics on all data, including machine sensor data  Scheduling of all maintenance plans within a specific timeframe  Planning several times a day (instead of once a week) results in up-to-date scheduling information in maintenance operations  Faster response times lead to more accurate maintenance scheduling Increase asset utilization and reduce unplanned asset downtime by 15% Maximize Improve asset uptime by 5% scheduling information on maintenance operations by 3%
  12. 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public Next step Business scenario recommendation and value discovery workshop  SAP offers a proven methodology and approach to discover the customer-specific business improvement areas and quantify value potential.  We suggest such a workshop with your line-of-business and IT experts.  As starting point, we recommend a performance and usage analysis of your current system.
  13. 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you Contact information: Michael Quadt Solution Management EC&O D-69190 Walldorf Dietmar Hopp Allee 16 +49-6227-764394 M: +49-170-8555610
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  15. 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public Customer case: construction company in Canada Summary validated scenarios Feasibility Businessvalue Legend LowHigh Low High SAP Business Suite on SAP HANA SAP HANA applications SAP HANA Platform Predictive analytics (US$1.5 million) Automated reporting (US$477 ,000) Optimized asset maintenance (US$1.2 million) Financial performance management (US$477,000) Phase – deployment road map Annual revenue: US$1.2 billion 1 Short term Optimized asset maintenance: Increase asset utilization, reduce equipment cost Financial performance management: Reduce operation cost 2 Medium term Automated reporting: Reduce operation cost Predictive analytics: Increase project margin 3 In evaluation Other functions – To be discussed in future discovery workshops SAP HANA use cases mapped to industry value map end-to-end solutions
  16. 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public Customer case: construction company in Canada SAP HANA Platform 2176 2176 1943 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2013 Phase 1 Phase 2 Costs SoH Applications Platform SAP HANA Platform: Anything built on the platform that is customer specific ‒ new business processes and business models SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance apps (HPAs), applications powered by SAP HANA mapped to IVM E2E solutions $’000 Currently available functionalities (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionalities (all of the end-to-end solutions on the IVM are in scope) Based on actual SAP customer business case Annual benefits, SAP HANA Platform Annual benefits, SAP HANA applications: US$1.9 million Annual benefits, SAP Business Suite on SAP HANA: US$ 2.2 million Estimated deployment costs Total transition cost SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA
  17. 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. A construction and industrial services company- financial performance management Engineering, construction, and operations Business context and goals Managing performance from a financial perspective is becoming more crucial every day. On-time results for all audit- and analysis-related inquiries and an ability to react to risks and opportunities exemplify the need for a transparent and efficient process to deliver financial information on time and accurately. You need to manage operations and related performance successfully in today’s volatile business conditions. Business challenges You need to plan, replan, monitor, and control the business model, business operations, the products and services offered, the markets served, and the technologies brought to your customers in volatile market environments. At the same time, you must increase efficiency, reduce operating costs, and improve stakeholder satisfaction. Process innovations Real-time financial close ensures accelerated closing activities through faster processes, reporting without data latency within an heterogeneous financial consolidation landscape. Contribution of SAP HANA SAP HANA offers features for custom planning with dimensions and at the aggregations level for real-time simulations. Critical-path processes and reports are accelerated in a central, comprehensive, and real-time consolidation environment. You can achieve almost instant response times – even with a large number of calculations for products or across companies. An enlarged analytical footprint for enterprise profitability is also available. Value drivers/KPIs Service-level performance. Staff alignment. Transaction-to-analysis time Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Engineering, construction, and operations - financial performance management Value potential 2 Feasibility 4 Low High 1 5 Low High 1 5
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