The document discusses the integration of SAP Business Suite powered by SAP HANA, emphasizing the need for engineering, construction, and operations (EC&O) companies to innovate to meet client demands and maximize profitability. It highlights various business value areas including real-time financial performance management, subcontractor management, and project analytics, aimed at enhancing operational efficiency and decision-making. Additionally, it outlines a recommendation for a business scenario workshop to identify customer-specific improvement areas and quantify value potential.

1. July 2013
Delivering Real-Time Business Value
for Engineering, Construction, and Operations
SAP Business Suite Powered by SAP HANA
Public

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

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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

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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

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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. © 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

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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%

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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. © 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. © 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. © 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. © 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. © 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. © 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

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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

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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

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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