July 2013
Delivering Real-Time Business Value
for Engineering, Construction, and Operations SAP Business Suite Powered by SAP HANA
Public
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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
Cloud Social
Big Data Mobile
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 Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
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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 Experience Data 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%
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8 Public
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 9 Public
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%
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10 Public
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%
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 11 Public
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%
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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.
© 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
© 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. 15 Public
Customer case: construction company in Canada Summary validated scenarios
Feasibility
Bu
sin
ess v
alu
e
Legend
Lo
w
Hig
h
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
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17 Public
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