Enabling Business Transformation for EC&O

CONFIDENTIAL

Enabling Business Transformation for Engineering, Construction & Operations

© 2011 SAP AG. All rights reserved. 2Confidential

Agenda

•Overview of SAP’s position in the EC&O Market

•SAP EC&O Solution Roadmap

•Commercial Project Management

•EC&O Mobile Solutions

•Project Visualization with 3D Building Information Modeling

•Enterprise Asset management

•HANA

•Customer Innovation

Industry Business Scenarios Select Customers

Project Management

Project Budgeting & Cost Control

Equipment Management

Project Procurement & Subcontractor Management

Reporting and Analytics

Financial Management

SAP Industry Experience

http://www.unitedgroupltd.com/index.aspx

https://transnetext.transfield.com.au/home.nsf

http://www.eurovia.com/index.htm

http://www.dayzim.com/

http://www.kiewit.com/

http://www.hdo.in/main/index.html

http://www.high.net/

http://www.fagundes.com/port/images/portifolio/Camargo%20Correa%202.jpg



http://www.high.net/

SAP R&D Investment Impact Engineering Construction & Operations

Enterprise Services for Project System

Building Information Modeling– integration VE

Asset Data Hub – integration to NRX

Project Budgeting enhancements

Project Planning and Forecasting Application

Localization of Subcontract Retain age (US)

Subcontract Retainage Enhancement

Joint Venture Accounting Multi-Resource Scheduling Project Portfolio

Management ALC Enhancements –

Payroll – Cost Control Integration

Sourcing Collaboration for Engineered Goods

Integration to Primavera by Pipeline Software

Interactive Forms by Adobe

1996 2000

Enhanced Expediting/ Progress Tracking for Materials

Open PS Interface to MS Project

Homebuilding

EC&O Industry Vertical Established

2007 2011

Recent investments (available today) include:

Enhanced subcontract management - for progress billing, payments, and retention

Mobile Applications for Construction – Daily Work Planning and Progress, Mobile Analytics

SAP Enterprise Project Connection – Packaged integration to Primavera project scheduling application

Integration of CAD information to project estimating, budgeting, execution and procurement (includes Building Information Modeling solution Visual Enterprise)

Rapid Deployment Solution for Construction Analytics

Integration to Estimation Platform with Hard Dollar

Equipment & Tools Management

2015

Mobile Applications for Construction

Business Analytics Package

HANA Enabled Project Systems

Project Management Cockpit

* 1.7 Billion spent on R&D each year into the core solution!

Commercial Project Management

Engineering Constructions & Operations


Commercial Project Management - Processes addressed by new solutions

End-to-End scenario Commercial Project Management

Process Groups Selling Planning Execution

Control & Monitoring

related Support Scenarios

ProcessesPipeline & Forecasting Project Initiation &

StructuringTime, Expense & Quality Recording

Project Dashboards & Sheets

Resource Management

Business Development Project SchedulingProject Cost, Revenue & Quantity Forecasting

and ProgressProject Reporting Document

Management

Bid & Proposal Project Cost, Revenue & Quantity Planning

Project Risk Management Embedded Analytics Project Procurement

Contract & Engagement Setup 3rd Party Integration Project Issue and

Change ManagementProject Cash Management Project Collaboration

Project Accounting and Billing

Earned Value Analysis / WIP Quality Management

Process covered largely by new functionality

Process enhanced by new functionality

PLANNED INNOVATION

Co-Developed with our customers and Partners

Mobility for Construction


Mobilizing the Entire Enterprise Mobility coverage for EC&O

Sales Engineer & Procure Construct Operate & Maintain Corporate

Site Materials Management - Akaara

SAP ERP Quality Issue mobile app

Mobile Purchase Order

SAP EAM Work Order mobile app - ERP

SAP Field Service mobile app - CRM

SAP CRM Mobile Sales

Mobile sales analytics – BOBJ Explorer & Exploration views

Project Status Akaara

Mobile Equipment Management

Mobile Time Entry for Projects

Mobile Progress Entry for Projects

Quality & Safety Akaara

Mobile Project System TPC

SAP Employee HR Productivity mobile apps

SAP Employee Finance Productivity mobile apps

SAP GRC Access Approver

SAP GRC Policy Survey

SAP Mobile Application

Proposed Mobile Application – SAP or

Partner

Partner Mobile Application

Legend

SAP Mobile Workflow

SAP Business Objects Mobile apps

SAP Mobile Safety

Daily Work Planning

Mobile BAS


Planned Innovations Future DirectionApps today

SAP Mobile Road Map for EC&O

SAP EAM Work Order v1.0

SAP Field Service

SAP Employee HR Productivity mobile apps

SAP Employee Finance Productivity mobile apps

SAP GRC Access Approver

SAP GRC Policy Survey

Mobile Sales Analytics

SAP CRM Sales 1.0

SAP Mobile Workflow

Quality & Safety *

Mobile Project System *

*Partner Apps

SAP CRM Sales 2.0

SAP ERP Quality Issue

SAP EAM Work Order v2.0

SAP Mobile Safety

SAP Business Objects Mobile Apps.

Mobile Time Entry

Mobile Progress Entry **

Mobile Purchase Order **

Mobile Equipment Management **

Site Materials Management **

Project Status **

Subject to change. **Partner project Subject to change. ***Possible partner project.


Mobile Project Management App

SAP Building Information Modeling Visual Enterprise

Enterprise Asset Management


SAP Solutions for LoB Enterprise Asset Management Key Improvements with Innovations 2012

SOLUTION TODAY

Available NowKey Needs Innovation Highlight Release

Capital Projects and Portfolio Management

Prioritize investments and balance resources

Create projects directly from portfolio management

Have portfolio items aligned with the work breakdown structure

SAP Portfolio and ProjectManagement 5.0

LinearAssets

Manage linear assets as continuous assets with dynamic segmentation

Manage costs on task level while keeping the aggregated total for an entire work order

Support of linear assets (e.g. roads, pipelines)

Support of operation account assignment (monitoring cost on operations level)

SAP enhancementpackage 5 for SAP ERP

User Experience

Simplify maintenance execution processes on the shop floor

Enhanced user experience for maintenance technicians

SAP enhancementpackage 5 for SAP ERP

Operational Risk Management

Ensure compliance through effective and accepted procedures and systems managing operational risks

Holistic incident management Improved user experience Decision support with packaged

analytics

SAP EHS Management 1.0

SAP enhancement package 5 for SAP ERP

SAP BusinessObjects GRC solutions 3.0


Key Improvements with Innovations 2011New User Interface for the “Maintenance Worker”

EAM Launch Pad

Job Card

Information Center

Confirmation List with Assigned Jobs to User

Enterprise Search

Job List with Jobs


Key Improvements with Innovations 2011Maintenance Worker – Job List

Features of the Job List: Basic job information,

e.g. urgency, technical object number Detailed job information Job card for each job Job assignment to individuals and work

centers Access to additional information such as

reference technical object


Key Improvements with Innovations 2011Maintenance Worker – Job Card

Lifelike job card display and printout with embedded documents like drawings, powered by SAP Interactive Forms software by Adobe


Solution Enhancements Key Benefits

Optimized Asset Operations and Maintenance Integrated geospatial visualization

Geospatial display of critical assets, including linear

Map interactivity with assets such as accessing work orders and other technical objects

Asset information that spans both ERP and geospatial information systems (GIS)

PLANNED INNOVATIONS

Complete access to GIS information for use within EAM

Allow users to select visualization technology Asset information can be displayed

geographicallyLab Preview


Visualization in Service and Support (EAM)

•Maintenance and repair procedures

•Technical publication authoring and publishing

•Visual learning and training

Workflows

•Enabling 3D animated, step by step procedural instructions

•3D model driven document authoring & standards compliance

•Using visual information for search and query

Methods

•Accelerated time to repair, minimized asset downtime

•Proper procedure execution, improved technician productivity

•Significant reduction in document authoring and publishing costs

Value


Visualization in Service and Support (EAM)

HANA Innovations


Strategic Innovations

HANA – In Memory processing for Project Systems and Analytics

SRM/SLM – Supplier relationship/lifecycle management

Ariba – Procurement on demand

Success Factors – HR on demand


Finance

analyzes project variance data to anticipate and minimize potential cost overruns

In-memory enables construction companies to improve the bottom line by capturing opportunities & managing project costs - HANA

Business Development

Streamlines design to build effective processes and gain better business development performance and pipeline visibility

Operations

links construction operations and financials for performance analytics

• Detailed visibility into project margin variance and unapproved changes

• Understanding of dynamics between outstanding revenue and average project margin

• Instant examination of data

• Accelerated estimation and budgeting for external stakeholders

• Immediate access to engineer-procure-construct processes to facilitate purchasing and materials management

• Insight to drive cash management and cash flow capabilities to manage capital requirements


And everyone benefits from a happy IT department.

And your IT department will thank you - HANA

Empowered employees use self-servicesLess bother

Employees can define and publish their own reports, leaving IT to focus on their main tasksNo “shadow IT”

Analytical and business process data combinedOne real-time view

Start now by adding SAP HANA to your existing environmentReady to deploy

Consolidate equipment, backup, and maintenanceSimplify

Lower IT infrastructure and personnel costs by changing the way things are doneOptimize

Why? For not disrupting business and for lowering IT cost


Use Case: Invoice and Payment Management in Construction Projects - Crossgate

Business Pain and Value

Target Market and Revenue Potential

Technology Challenges

Construction process involves multiple parties (Owner, General Contractor, Subcontractor, Consultant, etc) with financial relationship tied to a certain piece of work.

Each entity requires similar information to receive/make payment.

Today this is a very manual process performed in multiple systems.

Dynamic collaboration of these activities benefits all parties, providing risk mitigation for payer and quicker receipt of payment for payee.

Engineering and Construction Companies, Facility Owners, Project Owners, and Developers

1800+ worldwide EC&O customers, plus SAP clients with Capital Expenditure Budgets (Banks, Retail Organizations, etc.)

North America focused market: 100+ immediate opportunities

General Contractor

Subcontractor

Architect

Owner /

Developer

Paym

ent

Invo

ice, I

nsur

ance

Docum

ents,

Lien

Waiv

er, e

tc.

Disparate accounting/information systems exchanging payment and invoice information.

Release of payment predicated on multiple steps/processes being complete.

EX: Release of payment from General Contractor to Subcontractor is only done when payment from Owner to General Contractor has been completed AND proper documentation from Subcontractor to General Contractor is accounted for.

Progress of project

Payment

Invoice,

Documentation

Payment

Invoice

,

Documentatio

n


Use Case: Construction material specification coordination and verification (submittal processing) - Crossgate

Business Pain and Value

Target Market and Revenue Potential

Technology Challenges

Construction process involves multiple parties (Owner, Architect, General Contractor, Subcontractor, Consultant, etc) responsible for coordinating complex material requirements for projects

Specification information is passed from the design team to the construction team where they prepare submittals to confirm their understanding of the requirements for review by the designers.

Today this process is performed using different systems sometimes on a project by project basis. This causes inefficiency, and often dual entry.

Enabling all parties to use their preferred system and coordinating data transfer would greatly increase efficiency.

Architecture, Engineering and Construction Companies, Facility Owners, Project Owners, and Developers

1800+ worldwide EC&O customers, plus SAP clients with Capital Expenditure Budgets (Banks, Retail Organizations, etc.)

North America focused market: 1000+ immediate opportunities

Requires passing of documents as well as data , including drawing, photos, etc.

Consultants

Subcontractor

Architect Owner /

Developer

General Contractor

Material Supplier

Subcontractor

Specification distribution

Material Submission

Submittal Verification


Analyze project variance data to anticipate and minimize potential cost overruns

Link construction operations and financials for performance analytics

Streamline design to build processes and gain better business development performance and pipeline visibility

Harness the power of in-memory computing for construction companies - HANA

Improvement in bottom line by maintaining healthy project margins and reducing project margin variance

Better project cash position and liquidity with accelerated processing and cost of changes to project scope determined

Capture opportunity by identifying subtle changes in labor and equipment productivity to accurately deploy and maintain optimal use

Result Result Result

Customer Innovation

© SAP 2008 /

Driving Innovation with Our Customers

Industry Advisory Council for Construction includes:

Bouygues Eurovia Royal BAM Group Kiewit Hindustan Construction Company Transfield Al Fanar Ensul Meci Alstom Turner Construction Company Hochtief United Group

Business Process Expert Community

SAP Developer Network

Enterprise Services Community

EC&O Global Industry Advisory Council

Communities of innovationCommunities of innovation

Communities

Customer-based communities share best practices and set standards for the future




Subcontractor Management – Process Overview (EHP5E)

Subcontract

Down Payment or Payment

Partial Invoice

Down payment

Final Invoice

Final Payment

Down payment Request

Clearing of Retentions

./. Retentions Postings Seletion of required posting type Automatic deduction of default

retentions and additional cost with the option to manually change

Payments with FI standard transactions or payment run

Payments are autommatically assigned to the contractCorrections

./. Additional Cost

./. Guarantee Retention

Contract Specifies link to Project and Acounts to be used Default retentions Default additional cost Verifications (e.g. Certificates and validity)

SAP and SuccessFactorsBetter TogetherSAP and SuccessFactors – Better Together


Product Direction across cloud & on-premise

SAP and SuccessFactors are combining SuccessFactors Business Execution (BizX) suite with SAP offerings to provide the most comprehensive and innovative HCM solutions to the market, benefitting existing and prospective customers.

Talent Management

Core HR

HCM Planning & Analytics

On-Premise/Cloud Integration


Product Direction – Workforce Planning & Analytics

Workforce Analytics: Combination of best-in-class solutions• SAP HANA platform and solutions

from SAP Business Objects portfolio• Rich HCM content and benchmarking

data from SuccessFactors

Workforce Planning• SuccessFactors Workforce Planning

is go-forward solution • Business Objects Strategic Workforce

Planning: development will be stopped


SAP is Committed to Listening to You

Get an early insight into SAP product plans

Influence the product development

Closely collaborate in a structured approach during the full development cycle at SAP

Network with peers around one topic

•-> Example: Building Information Modeling

•-> Example :CPM

Securely exchange information in a clear legal framework for customers and SAP


Final Thoughts on Why To Choose SAP Solutions and Partnership

Top Solutions Sold to NON SAP ERP Customers

•Business Planning & Consolidation (BPC)

•Business Intelligence

•Business Objects – Reporting & Analytics

•Sybase and Afaria for Mobility

•CRM – Business Development

•HCM and SSF - HR

Enabling Business Transformation for EC&O

Technology

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