Industry EC & O

SAP for

Engineering,

Construction &

Operations

Industry Briefing

Book

Comments and questions: [email protected]

Edition 2

January 2012

mailto:[email protected]

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and SAP for Engineering,

Construction & Operations

Transformation Run Better

Proof Points Strategy

Solutions

Innovations

Drivers

Take Away

Comments and questions: [email protected]

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© 2011 SAP AG. All rights reserved. 4

Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points

What does “Run Better” mean for a

construction company?

Project margin

variance

Labor and equipment

productivity

Days revenue

outstanding

Equipment utilization

Unapproved change order

indicator

Project cash position

Average project margin

Run Better

KPIs

Examples

• Roy Anderson Corp

• Day & Zimmermann

• Hatch

Value potential



Average Operating

Margin (in %)

Days Sales

Outstanding (in days)

30 best

Large disparity between average and best

16% best

Run Better

KPIs

Examples



• Hatch

Value potential



The best are leading the way

40%

reduction in

days revenue

outstanding

50%

reduction in time

to create global

customer

invoice

17%

reduced project

cost over-runs

Run Better

KPIs

Examples



• Hatch

Value potential



Roy Anderson Corp is a

leading midsize U.S.

construction company

with 500 employees and

U.S. $650 million in

revenue.

Hindered by nonintegrated

systems and manual

processes, Roy Anderson

needed to eliminate

information silos and allow

easier retrieval of project

data. It wanted to improve

construction project

management through better

analysis of job scope and

cost.

Gained greater visibility across all levels of

the organization

Improved forecasting and gained greater cost

control

Streamlined human resources, project

management, and scheduling processes

17% reduction in project cost overruns

33% reduction in month-end closing

80% reduction in time to create new reports

Run Better

KPIs

Examples



• Hatch

Value potential



Day & Zimmermann (D&Z)

is a top global contractor

serving governments and

commercial customers

with 24,000 employees and

U.S. $2.2 billion in

revenue.

Operating in more than 150

locations worldwide, D&Z

struggled with an array of

point solutions that impeded

collaboration across

business units and made it

difficult to capture and report

cost. The company needed

to consolidate operations

and eliminate cumbersome,

nonscalable legacy systems.

Reduced enterprise complexity by mapping

dozens of business units to a single software

foundation

Eliminated costly legacy systems: 6 legacy

core business systems and 17 different labor

collection systems

Minimized support functions through

centralization and standardization

40% reduction in days sales outstanding

25% reduction in duration of billing-to-cash

cycle

increase in online sales 30%

Run Better

KPIs

Examples



• Hatch

Value potential



Hatch is a global

consulting, engineering,

and project and

construction management

company with 8,000

employees.

Based in Ontario, Canada,

Hatch provides solutions and

services to industry sectors

that include mining and

metals, energy, and

infrastructure. The company

implemented the SAP ERP

application to support its goal

of continued worldwide

growth and to standardize

business processes among

11 business units operating

across six continents.

Retirement of legacy systems

Single global instance, with minimal

customization

Eight-month implementation with big-bang

rollout of all core systems

Sandbox system to familiarize employees

with software and accelerate business

readiness

reduction in time to create final global

customer invoices

reduction in time for month-end closing

improvement in capturing global time

sheet information 50%

50%

60%

Run Better

KPIs

Examples



• Hatch

Value potential

http://www.hatch.ca/



Innovation drivers in the EC&O industry Customers demanding more flexible business models to

support an increasingly complex environment

Innovation

Drivers

Intense

competition

Flexible delivery

models

Materials volatility

Workforce

optimization

Efficient execution



Intense competition

Firms battle

for work as the

industry

contracts

A buyer’s

market puts

the squeeze

on margins

Emerging

markets present

challenges and

opportunities

Owners

outsource more/

demand full

lifecycle services

Innovation

Drivers

Intense

competition

Flexible delivery

models


Workforce

optimization

Efficient execution



Flexible delivery models

Government

spending shifts

demand from

private to public

Drive to access

opportunities in

stronger

geographies

Regulatory

issues

associated with

public projects

create challenges

Innovation

Drivers

Intense

competition

Flexible delivery

models


Workforce

optimization

Efficient execution




Commodity

volatility remains

unpredictable

Building materials

price inflation

remains possible

Ability to

leverage buying

power reduces

cost

Innovation

Drivers

Intense

competition

Flexible delivery

models


Workforce

optimization

Efficient execution



Workforce optimization

Talent losses due to

downturn create

challenges after

recovery

Workforce efficiency

and productivity are

essential in a tight

market

Ability to

leverage talent

regardless of

geography

Innovation

Drivers

Intense

competition

Flexible delivery

models


Workforce

optimization

Efficient execution



Efficient execution

Tight margins

demand efficient

use of project

resources

Equipment, labor,

and materials

management on

projects

Complex projects

drive complex

business

relationships

Innovation

Drivers

Intense

competition

Flexible delivery

models


Workforce

optimization

Efficient execution



Without SAP Business Challenges

Transformation

Without SAP

SAP’s Value

With SAP

Designer Projects

Subcontractors Owners

Operations

Business

Development Procurement

IT HR Finance

Inefficient projects

Poor communication and

collaboration reduce

resource productivity

Increased risk

Lack of operational and

financial visibility puts

pressure on margins

Limited systems

Unable to track and manage

full service lifecycle

operations

Poor skill set allocation

Staffing issues becoming

more common amid

shrinking labor market



With SAP Coordinated and integrated systems and processes

Designer Projects

Subcontractors Owners

Optimized resources

Maximize productivity and

profitability of project

materials, equipment and

labor

Increased visibility

Make better, faster

decisions with real-time,

contextual insights

Integrated portfolio

Drive process efficiency

and business growth

Aligned skills for the

right project

Effectively attract,

develop, and retain a

talented and productive

workforce

Operations

Business


IT HR Finance

Transformation

Without SAP

SAP’s Value

With SAP



SAP helps EC&O companies confidently

expand their business

Maximizing resource

productivity and

increasing project

profitability

Bridge the gap

between design and

construction by

bringing in real-time

design information

to assess the

“constructability” of

any given design

SAP unique capability SAP unique capability SAP unique capability

Managing and mitigating

operations and financial

risk

Establishing new

revenue streams with

complete lifecycle

services

Ensure on-time, on-

budget delivery and

reduce execution risks

through in-depth

mapping of resources,

material, and

equipment to the

project plan

Deliver applications for

the full facility lifecycle,

from planning and

design, to project

management, to

operations

Transformation

Without SAP

SAP’s Value

With SAP



SAP solutions for EC&O

Solutions

IT

Finance

Procurement

HR

Business Development

Operations

SAP delivers comprehensive,

integrated solutions for all

business areas in EC&O

Operations

Business


IT HR Finance



Design & Engineering

Enable detailed design and engineering

capabilities including the management and

development of design documents,

engineering descriptions and facility/plant

modeling.

Project Management

Projects embedded into the Enterprise – making them

easier to manage and reduce risk. Leverage buying

power and manage subcontractors.

Equipment and Tools Management

Improved availability and tracking of equipment.

Flexible price and account determination. Clear

visibility of TCO and return on assets.

Operational Workforce Management

Improved utilization, profitability and client satisfaction

by assigning the right people, with the right skills at

the right rates to the right projects.

SAP solutions for operations Connect engineering‚ project management and execution in one

unified solution

Solutions

Operations

Business


IT HR Finance

1 | 2

IT

Finance

Procurement

HR


Operations



Commercial Real Estate

End-to-end real estate lifecycle management with full

integration to ERP Financials

Facility Services and Operations

Improve run-time production and reduce costs with an

integrated maintenance program that enables higher

equipment reliability and improved resource allocation.

Solutions

1 | 2

SAP solutions for operations Connect engineering‚ project management and execution in one

unified solution

IT

Finance

Procurement

HR


Operations

Operations

Business


IT HR Finance



SAP solutions for business development Streamline selling processes to accelerate buying decisions

Building Information Modeling (BIM)

Optimize project planning and delivery (cost estimating,

modeling, planning, quantity tracking, subcontractor

mgt.) while leveraging CAD design data.

Bid and Proposal Management

Enables EC&O companies to manage potential

opportunities, customer relationships and business

development effectively through improved sales force

productivity with account, contact and opportunity

management as well as handling of contracts and

quotation

Solutions

IT

Finance

Procurement

HR


Operations

Operations

Business


IT HR Finance



SAP solutions for procurement Close the loop of engineering, procurement and construction in the

project life

Procurement and Materials Management

Enables end-to-end sourcing and procurement by

connecting spend analysis, on-demand strategic

sourcing and contract management, and operational

procurement.

Subcontractor Management

Enable core sourcing of multiple levels of suppliers,

partners, and manufacturers to perform altogether in

delivering to projects

Solutions

IT

Finance

Procurement

HR


Operations

Operations

Business


IT HR Finance



SAP solutions for information technology Improve insight‚ productivity and operations

Operational Risk Management

Improve EHS performance and ensure operational

continuity by proactively reducing risks, preventing

incidents, and improving operating efficiency.

Manage Enterprise Risk and Compliance

Continuously monitor key risk indicators and compliance

effectiveness, business processes and IT systems to

align risks and compliance to strategy.

Solutions

IT

Finance

Procurement

HR


Operations

Operations

Business


IT HR Finance



Manage Financial Performance

Managing financial and operational performance helps

companies for accurate insight into costing, improved

financial planning and forecasting.

Treasury and Financial Risk Management

Ensure enough cash liquidity to fund business

operations.

Accounting and Financial Close

Help customers to run their accounting and financial

close processes faster, more accurate, more compliant

and less costly.

SAP solutions for finance Improve visibility and insight into enterprise risks that affect

business performance

Solutions

IT

Finance

Procurement

HR


Operations

Operations

Business


IT HR Finance



SAP solutions for human resources Find and develop the best people and talent

Core HR and Payroll for EC&O

Enables organizations to support and automate

processes that allow them to support the entire

employee lifecycle from hire to retire for a global

workforce.

Talent Management

Enables organizations to attract, recruit, appraise,

develop and retain the best talent available.

Solutions

IT

Finance

Procurement

HR


Operations

Operations

Business


IT HR Finance



Customer centric and innovation driven SAP’s strategy for EC&O companies

Solution Innovations

Technology Innovations

Delivery Innovations

Innovations

Solutions

Technology

• Mobility

• Business analytics

• In-memory computing

Delivery

• Rapid-deployment

solutions

• Customer co-innovation

• Ecosystem

• Road map

• Recent innovations

Future

• Common area maint.

• Commercial proj. mgmt



SAP solution innovations for EC&O

companies

Innovations

Solutions

Technology



Delivery


solutions


• Road map


Future



• Mobility

• Ecosystem

Operations

Business


IT HR Finance



Selected solution innovations Available today

Real estate operations

SAP Common Area Maintenance Expense Recovery application

Automatically settle common area invoices for shopping centers, retail malls, and

office environments

Fully integrated and highly flexible add-on solution to SAP Real Estate

Management application

Allows effective control of expense recoveries by automating this process

Optimize investment planning by receiving full reimbursement for common area

invoices

Dedicated subcontractor management solution that handles all related data,

processing, and retention

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





Selected solution innovations SAP Common Area Maintenance Expense Recovery

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Full

Automation

Automated process (as add-on to SAP Real Estate management with full

integration to ERP) to timely calculate common area expenses and pass-

through the correct amounts of common area charges to your tenants.

Optimized

Portfolio

Management

Effective control of expense recoveries in order to secure the sound

performance of your property portfolio. Optimize your investment planning

by receiving full reimbursement for common area invoices.

Full

Integration

SAP Common Area Maintenance Expense Recovery is a seamless and

highly flexible add-on solution to SAP Real Estate Management, with full

integration to SAP ERP and other SAP solutions.

Reduced

TCO

The solution allows a constant cost control and monitoring of all expense

types and provides a correct common area maintenance expense

calculation. It is self contained within SAP, no external interfaces

necessary.

High

Flexibility New settlement program with the option to manually adjust the results for

current period and adjust expenses during simulation. Ability for customer

specific calculation methods, including the assignment of new distribution

rules.

Resulting in improved transparency on real estate portfolio profitability by

constantly monitoring common areas and related costs



Selected solution innovations Road map – commercial project management

Project Work Space

New user experience

for project managers

Work space for

comprehensive project-

centric enterprise

solutions

Enables management

of project-specific

business processes

across systems

Extended Project

Financial Planning and

Forecasting

Extended functionality

and enhanced usability

for the planning,

forecasting, and

monitoring of projects

Enhanced front end to

support financial

planning (cost,

revenue, quantities,

cash, and progress) for

projects

Project Issue and

Change Management

Manage and track

project scope changes

(from initial change

request to the final

change order)

Enhanced process

support for cost and

revenue planning of

changes and for

updating purchasing

and contract

documents

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future


• Commercial proj mgmt

Project Management



Finance Invoice to pay

Customer to cash

Accounting and finance

Treasury and financial risk mgmt.

Travel management

Shared service for financials

Selected solution innovations Commercial project management

Human capital management Core HR and payroll

HR operations

Business development, client and opportunity mgmt Business development and marketing to customer acceptance

Customer lifecycle management

Risk and independence check

Project and engagement

management Engagement mgmt and

controlling

Engagement fulfillment

Project planning, execution, and

monitoring

Project collaboration and

knowledge management

Business and IT service

management Contract mgmt and controlling

IT financial mgmt/service centric billing

Product order management

Service request and service order mgmt

Call center operations

IT service desk

Configuration and change management

IT asset management

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future


• Commercial project

mgmt

Sell/business

development

Plan

Build/

deliver

Manage/

operate

Service/

support

Bill and

collect

Project-

centric

operations



Technology innovations

Business Analytics

Mobility In-Memory Computing

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





SAP in-memory computing for EC&O Opportunities for the business

Details

Perform complex workforce

planning simulations in “real”

real time

Refine complex workforce

models driven by strategic

revenue, full-time equivalent

(FTE), attrition rates, hiring

rates, cost, retirement age, and

so on

Target revenue and head count

across time by line of business,

location, and role, skill, and

competency

Reduce cycle time for

profitability analysis and

improve internal accounting and

decision making

Predict inbound and outbound

cash flows to effectively drive

cash requirements, risk

management, and short-term

borrowing in real time

Accelerate spend visibility to

identify areas of potential cost

savings

Accelerate estimation and

budgeting for external

stakeholders

Real time profitability by owner,

project, and market

Comprehensive pipeline and

backlog analysis in seconds

Understand owner requirements

and derive new opportunities

Highlights areas to focus on and

identify at-risk customers for

improved account management

Finance and Operations Procurement and HR

Business

Development

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





SAP in-memory computing for EC&O Finance and operations

Opportunity for the business In-memory-enabled

Innovation/SAP HANA

use cases

Capability enabled by

Financial and cost analysis ‒

Enable real-time analysis of

general ledger and invoice data to

identify cost leakage, reduce

audit costs and invoice delays,

and improve cash position

Enables real-time analysis and monitoring at the granular level

Planned standard

solution

Profitability and cost analysis ‒

Address eroding margins by

keeping track of changes in cost

dynamics and price optimization

opportunities

Analyze large data sets of cost, revenue, and customer data to reduce unprofitable projects

Available standard

solution

Enable real-time visibility to KPIs

Available standard

solution

Cash and liquidity management ‒

Predict inbound and outbound

cash flows to effectively drive

cash requirements, risk

management, and short-term

borrowing in real time

Interactive, high-performance analysis of cash-flow data in several dimensions

Planned standard

solution

Access to payment history at customer, project, and regional level

Supported by HANA 1.0

SP3

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



SAP in-memory computing for EC&O Procurement and HR


innovation/SAP HANA

use cases


Procurement spend analysis -‒

Accelerate holistic and actionable

spend visibility across the

enterprise to identify areas of

potential cost savings

• Access vast amount of data

across the entire company to gain visibility into spend and to identify areas of cost savings

Future or custom-made

Strategic workforce planning ‒

Perform simulations on demand

with insight into workforce

demographics, distribution, skills,

and so on

• Fast, collaborative simulation of multiple scenarios

Available standard

solution

• Refine complex workforce models driven by strategic revenue, FTE, attrition rates, hiring rates, cost, retirement age, and so on

• Target revenue and head count across time by LoB, location, current role, and strategic role

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



SAP in-memory computing for EC&O Business development


innovation/SAP HANA

use cases


Customer 360-degree ‒ Account intelligence highlights areas to focus on, and identifies activity-based outliers and at-risk customers for improved account management.

• Account intelligence ‒ a mobile

analytic application with super-fast

access to real-time customer

interactions, operational results,

and customer satisfaction in a

central view.

Planned standard

solution

Real-time sales analysis ‒ Timely evaluation of sales pipeline to compare actual vs. projected backlog enables accurate forecasting.

• Real-time sales analysis Access and analyze vast amounts

of sales data by customer/project/location in real time Identify where project volume

varies greatly from forecast, so funds or resources can be redirected to meet opportunities

Planned standard

solution

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Mobility for EC&O Opportunities for the business

Business

Development

Details Details Details Details

Project

Operations

Project

Performance IT

Provide business development staff anywhere, anytime access to critical SAP CRM data using smart phones, such as iPhones and Windows Mobile devices

Provide full access to SAP CRM accounts, contacts, leads, opportunities, activities, and analytics from a mobile device

Increase business development efficiency

Gain efficiency by enabling on-site project procurement and materials management

Maximize labor and equipment productivity by enabling mobile equipment management on-site

Help ensure safety and compliance by enabling on-device safety observation reporting and audits

Increase the efficiency and accuracy of capturing time and attendance

Link construction operations and financial performance with time-relevant reporting on device

Increase visibility of project performance for project managers, engineers, and superintendents in the field

Simplify sharing of project status by providing updates on mobile devices

Reduce manual and double entry of project task input and updating

Leverage the industry’s most powerful solution for managing and securing mobile data, devices, and applications.

Allow mobile workers to receive and manage processes supported by SAP software on their mobile device of choice

Build your own mobile applications to receive a competitive edge on a single platform

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





Mobility for EC&O Project performance use cases

Opportunity for the business Mobility-enabled

innovations/Mobility

use cases


Gain efficiency by enabling on-site project procurement and materials management

• Mobile purchasing and

purchase requisitions for

projects

Future and custom-

made

• Mobile materials receiving and

materials management for

projects

Maximize labor and equipment productivity by enabling mobile equipment management on site

Mobile equipment management

Future and custom-made

Help ensure safety and compliance by enabling on-device safety observation reporting and audits

Project safety reporting and tracking

Future and custom-made

Increase the efficiency and accuracy of capturing time and attendance

• Time and expense entry Future and custom-made

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Mobility for EC&O Project operations use cases



use cases


Link construction operations and financial performance with time-relevant reporting on device

• Mobile analytics for

construction

• Based on mobile SAP

Business Objects

Explorer software

(available) with

customer-specific

analysis

• Future

Increase visibility of project performance for project managers, engineers, and superintendents in the field

Simplify sharing of project status by providing updates via mobile device

Reduce manual and double entry of project task input and updating

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Mobility for EC&O Business development use cases



use cases


Provide business development staff anywhere, anytime access to critical SAP Customer Relationship Management (SAP CRM) application data using smart phones, such as iPhones and Windows Mobile devices

• Sales on device • Based on Sybase

Mobile Sales

application

Provide full access to SAP CRM accounts, contacts, leads, opportunities, activities, and analytics from a mobile device

Mobile sales analytics

• Based on mobile SAP

BusinessObjects

Explorer with customer-

specific analysis

Increase business development efficiency

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Mobility for EC&O Information technology use cases



use cases


Leverage the industry’s most powerful solution for managing and securing mobile data, devices, and applications.

• Mobile device management

• Afaria mobile device

management solution

Allow mobile workers to receive and manage processes supported by SAP Business Suite software on their mobile device of choice

• Mobile workflow management

• Sybase Mobile

Workflow application for

SAP Business Suite

Build your own mobile applications to receive a competitive edge on a single platform

• Mobile platform

• Sybase Unwired

Platform

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Business analytics for EC&O Opportunities for your business

Project Performance

Management

Business Performance

Management

Analyze margin and margin variance for a

project in execution and investigate the

source of margin variance – multilevel

analysis of revenue, costs, and productivity

for a project

Analyze cash position and cash-in and cash-

out for a project and investigate various

causes of variance in cash flow

Analyze materials requirement for a job and

plan material purchasing and delivery as per

execution schedule to ensure just-in-time

availability

Analyze project execution progress in terms

of schedule and earned value and forecast

project completion

Analyze resource productivity and equipment

utilization for a project and their impact on

project progress and project costs

Analyze correlated historical bids, backlog,

and profitability information to optimize the

bid – maximize probability of winning and

profitability

Analyze profitability indicators for project

portfolios, lines of work, and markets

Analyze cash position and cash flow for

various jobs and assess cash requirements

for meeting short-term commitments

Analyze progress of various projects in

execution and assess impact on revenue,

cost, and profitability

Analyze firm’s performance on safety

standards and its impact on financial risk

and profitability of the firm

Details Details

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





Business analytics for EC&O Project performance management use cases

Opportunity for the business Analytics-Enabled

innovations/Analytics

use cases

Capability enabled

by

Analyze margin and margin variance for a

project in execution and investigate the

source of margin variance – multilevel

analysis of revenue, costs, and productivity

for a project

Profitability Plan to develop and

release the solution by

Q2/2012

Analyze cash position and cash-in and

cash-out for a project and investigate

various causes of variance in cash flow

Cash flow

Analyze materials requirement for a job and

plan material purchasing and delivery as

per execution schedule to ensure just-in-

time availability

Materials planning

Analyze project execution progress in terms

of schedule and earned value and forecast

project completion

Project delivery

Analyze resource productivity and

equipment utilization for a project and their

impact on project progress and project

costs

Resource productivity and utilization

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Business analytics for EC&O Business performance management use cases

Opportunity for the business Analytics-Enabled

innovations/Analytics

use cases

Capability enabled

by

Analyze correlated historical bids, backlog,

and profitability information to optimize the

bid – maximize probability of winning and

profitability

Bid planning and optimization

Plan to develop and

release the solution by

Q2/2012

Analyze profitability indicators for project

portfolios, lines of work, and markets

Profitability

Analyze cash position and cash flow for

various jobs and assess cash requirements

for meeting short-term commitments

Liquidity

Analyze progress of various projects in

execution and assess impact on revenue,

cost, and profitability

Project delivery (portfolio)

Analyze firm’s performance on safety

standards and its impact on financial risk

and profitability of the firm

Risk management

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Back



Delivery innovations

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





SAP ERP rapid-deployment solution for operational reporting with SAP HANA

software

Opportunity for the business Solution

Ready-to-run, SAP ERP rapid-deployment solution

for operational reporting with SAP HANA software

is essential reporting software with fixed scope,

predefined services at a predictable price with the

flexibility for future extension.

Shifting from a reactive business model, EC&O

companies can immediately respond to productivity

and profitability changes and proactively detect

project cost overruns and scope change.

Real-time, detailed visibility into project margin variance and unapproved change orders

Immediate, self-service access to engineer-procure-construct processes to facilitate on-time purchasing and materials management

Instantly examine high-volume internal and external design, build, and estimate/submittal data

This SAP Rapid Deployment solution provides a set of models from the business areas of sales, financial, shipping, procurement, and master data. The usage via in-memory technology will ensure good performance even with high data volumes (which cannot currently be provided without in-memory technology). Different clients can be used to visualize the results.

Business models and reports including:

Financial reports

Sales reports

Procurement reports

Master data reports

Rapid-deployment solutions

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future





Customer co-innovation

SAP Community Network This online hub supports customers, partners, consultants, experts, and SAP employees.

Companies can find answers to questions and benefit from the expertise of other community

members as they develop their own products.

the idea place Just launched – an open online forum for customers and ecosystem partners to connect and

provide feedback on new developments from SAP.

SAP BusinessObjects innovation center This interactive online forum lets customers sample SAP technology that is in development.

Companies can download prototype software and offer their feedback.

SAP Premier Customer Network Successful companies that SAP has selected to collaborate and share ideas. Network members

participate in programs designed to cultivate, diversify, and transform ideas into tangible business

improvements.

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Road map


Future



Business analytics for construction

Commercial project management

• Ecosystem

http://www.kiewit.com/



Ecosystem

Consulting and integration

System integrators for EC&O

Qualified SAP Business All-in-One partner solutions for EC&O

Independent software vendors for building information modeling

For more details, see the SAP Communities site on SAP.com: SAP Communities

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



http://www.sap.com/index.epx

http://ecohub.sap.com/catalog/

http://www.et-alia.com/index.html

http://www.b4-consulting.com/index.php



Key trends driving future innovations

Innovations

Solutions

Technology

• Mobility



Delivery


solutions


• Ecosystem

• Road map


Future



Business Development Collaborative Bid & Proposal Capability

Enhance Pipeline and Forecasting Capability

Enable Digital Construction / Building Information Modeling

Project Management Comprehensive Project-centric Enterprise Solutions

Complete Construction Life-Cycle Solutions

Collaborative Approach to Project Stakeholders

Risk and Performance Management Reporting / Analytics BAS

Risk-based performance management

Extended Capabilities Offer new level of project visualization, integrating CAD,

simulation tools, engineering-centric data management applications



References and results

Proof Points

High Companies

Larsen & Toubro

http://www.kiewit.com/

http://www.hatch.ca/



Proof Points

High Companies

Larsen & Toubro

Larsen & Toubro (L&T) is a

diverse technology,

engineering, construction,

and manufacturing company

with 60,000 employees and

$9.8 billion in revenue.

L&T wanted to establish a

single database for its

employees, to improve local as

well as global access to

employee information.

Leveraged cost-effective shared services and

single HR platform

Created common template for rollouts across

all businesses

Retired multiple stand-alone custom-built

systems and paper–based processes

Gained process scalability to support future

growth

Used employee data in different systems,

saving time and improving HR productivity

25% reduction in response time for

HR data analysis requests

30% reduction in HR transaction

processing time

95% reduction in time to generate HR

reports



Proof Points

High Companies

Larsen & Toubro

The High® Companies, a US

based engineering,

construction and operations

innovator , has 2,400

employees and specializes in

steel fabrication and

precast/prestressed concrete

system projects.

Legacy IT solutions kept track

of production history – but

couldn’t help management

track day-to-day inventory or

accurately forecast completion

of projects. Closer tracking of

materials and labor was

needed in addition to creating

best practices–based job-

costing processes and

implementing postmortem

profitability reporting.

Replaced antiquated IT solutions

Eliminated high volumes of custom reports

Reduced materials waste and loss

Enhanced ability to manage labor allocations

Reduced number of FTEs in accounts

payable

40% reduction in time needed to close

accounting period

25 number of reports needed, reduced

from several hundred



SAP solutions help EC&O companies run

better

Strategy Business value “End to end” processes for multi industry value chains

combining horizontal and industry specific solutions

Collaborate better: Capture new revenue by enabling

complete lifecycle services

Adapt better: Increase project profitability with real-time

insight

Decide better: Align design and construction to maximize

productivity

Operate better: Manage and mitigate risks to improve

operational results

SAP innovations

enable business

transformation Mobility Business

Analytics

In-Memory

Computing

IT value Orchestration across on premise, on demand, and on device

providing flexibility, security, and scalability on a single IT

platform

Easily consumable through implementable steps

Quick ROI through rapid-deployment solutions

Secure reliable operations tuned for your business



Take Away

Completely integrated - SAP offers the only enterprise

platform that provides construction customers with a

solution across the entire value chain and project lifecycle.

Better communication and collaboration - SAP’s

innovations in mobility and real-time analytics enable

construction users to complete all of their daily functions

and tasks for managing their projects in the field.

Operations focused - SAP integrates operational data with

backend data, across all systems, not just financials and

controlling.

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Take Away

© 2011 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP

BusinessObjects Explorer, StreamWork, and other SAP products and

services mentioned herein as well as their respective logos are trademarks

or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal

Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business

Objects products and services mentioned herein as well as their respective

logos are trademarks or registered trademarks of Business Objects

Software Ltd. Business Objects is an SAP company.

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other Sybase products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of Sybase, Inc.

Sybase is an SAP company.

All other product and service names mentioned are the trademarks of

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informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials

are provided by SAP AG and its affiliated companies (“SAP Group”)

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any kind, and SAP Group shall not be liable for errors or omissions with

respect to the materials. The only warranties for SAP Group products and

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Industry EC & O

Technology

Transcript of Industry EC & O