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-1- SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved Connected Project Management in the Oil, Gas & Chemicals Industry Defining the digital future of capital projects

Connected Project Management in the Oil, Gas & Chemicals Industry

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Connected Project Management in the Oil, Gas & Chemicals Industry Definingthe digital future of capital projects

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Executive Summary 3

Challenges In The Oil, Gas & Chemicals Industry 4

Capital Project Management Overview

What Is Capital Project Management?

What Are Some Of The Leading Practice Reports and Dashboards?

What Value Would An Organization Derive From An Implementation?

How Does An Organization Decide Which Technology Platform To Use?

5

6

10

13

14

How Can SAP Help?

Power Of SAP S4/HANA To Enable Capital Project Management

Solution Suite

Customer Successes

16

17

23

24

Final Thoughts 27

TABLE OF CONTENTS

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

EXECUTIVE SUMMARY

The Digital Project Revolution

Oil, Gas & Chemicals is a capital intensive industry that has as a fundamental business requirement to increase project profitability for all capital projects. Why? Most companies are experiencing:

1. Increasing shareholder expectations and compliance requirements

2. A higher than acceptable rate of project budget overruns, delays, and even project failures

3. Increasing project complexity and shortening of delivery dates for projects

4. An increasing level of fragmented process and data management

The most effective approach to achieving this requirement of increased project profitability is by gaining improved insight and control and optimized process efficiency within each of the capital projects and across the investment portfolio.This approach also drives a reduction in project risk through improved transparency and data consistency. As a result, each capital project team is able to achieve better quality and faster response times enabled via enhanced process standardization and flexibility.

SAP is committed to partnering with its customers as they transform into digital Oil, Gas & Chemical companies by helping:

1. Reimagine business models to find new revenue and profit sources by offering innovative approaches to addressing market challenges

2. Reimagine business processes and use digital technology to optimize business outcomes by converging information and operational technologies

3. Reimagine the role and structure of the workforce to support future business by incorporating wearable technology, 3D printers, and geospatial technologies

Our vision is to help the Oil, Gas & Chemicals industry digitally transform in order to drive profitable growth, build customer intimacy and grow talent. This document offers our point of view on how Capital Project management must be implemented, how SAP can help and some of the leading practices we have seen.

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

Technology Platform

Project Management

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CHALLENGES IN THE OIL, GAS & CHEMICALS INDUSTRY

The New Normal

There are 5 major trends that we see in the Oil, Gas & Chemicals industry when it comes to Capital projects:

LABOR SHORTAGE

There is a greater need for reallocation of work, that

considers staffing/sourcing solutions for point or

transactional skills thereby releasing scarce talent. This

requires a change in operating model related to contingent

labor management enabling the active management of the

contractor workforce.

EVOLVING CONTRACTING MODELS

Contracting models that vary depending on scope,

location, local content, resource availability (operator and

contractor), financing etc. and the use of service

intermediaries to support vendor management, contract

management and claims management.

GLOBAL PURCHASING POWER

High in-country labor costs, skill availability, in-country

fabrication capacity and complex technologies have seen a

movement towards offshore fabrication and modular

development. This manifests itself in the development of

an international purchasing organization, low cost country

sourcing strategies and distributed development teams.

DATA CONSISTENCY

Common applications that enable migration of staff

between projects and a common application, technical and

data architecture supports portfolio and project reporting

and decision making. Integration ensures less process

handoffs and improves data integrity.

FACT BASED DECISION MAKING

Tools and decision support centers that enable the

visualization of project data for timely decision making and

the use of analytics to understand leading and lagging

indicators. This capability is enabled through the common

toolset and associated data model.

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

REIMAGINING

What is Capital Project Management?“To manage their projects, oil, gas and chemicals project professionals

today typically use their own spreadsheet-based, custom-developed applications; these fragmented solutions are not connected to corporate systems. As a consequence, project managers often find it difficult to get up-to-date and real-time information on projects, detect project risks, and obtain the current project status. In addition, they tend to spend a great deal of time manually consolidating data from different sources – or be forced to make high-risk decisions based on inaccurate or outdated data.”

Ken Evans, Vice President Oil and Gas Industry Business Unit, SAP

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Is Capital Project Management?

We define Project management as the application of processes, methods, knowledge, skills and experience to achieve the project objectives. Capital Project Management is the foundation on which Business Strategy and Portfolio management sit on.

Our definition breaks Capital Project Management down into six interdependent capabilities namely:

1. Project Planning and Execution which is defined as the guiding principles that an organization uses to plan, forecast and execute projects while remaining focused on program goals, addressing appropriate risks and fulfilling stakeholder requirements.

2. Resource Management which is defined as anticipating and capturing resource demand,

Sourcing and Procurement

Human Resources

Project Planning and ExecutionEngineering

ManagementResource

Management

Contract Management

Procurement Analytics

Supplier Management

Invoice and Payables

Management

Operational Purchasing

Workforce Planning

Career and Talent

Management

Scope Management

Schedule Management

QualityManagement

Governance

Communication Management

Cost Management

Risk Management

Time Management

Simulation andAnalysis

Engineering Data

Management

Engineering Design

Resource Supply and Demand

Forecast

Resource Assignments

Contractor Labor

Management

Capital Project Management

Change Management

ProjectCloseout

Enterprise

Stage Gate Management

Finance and Accounting

Knowledge Management

Reporting and Visualization

assigning the right skilled resources to the right projects and augmenting the project with contractors should there be a shortage of employees.

2. Engineering Management which is defined as the application of engineering principles for the effective planning and efficient operations of managing a project, manufacturing or industrial operations.

3. Sourcing and Procurement which is defined as an approach to supply chain management that formalizes the way information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.

4. Human Resources which is defined as the continual process used to align the needs and priorities of the organization with those of its workforce while also maintaining and managing the talent pool.

5. Enterprise which is defined as all the activities that support the management of capital projects from Knowledge Management to Collaboration to Financial Management and Reporting.

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Is Capital Project Management?

Each capability contains specific disciplines that need to be mastered. For each of the six capabilities, there are multiple sub-capabilities that make up the process map that support the end to end Enterprise Project Portfolio Management Process as defined by SAP.

Sub-Capability Description

Governance

Defined as the processes, tools and activities that identifies how one can ensure

decision making and delivery management are focused on achieving program goals in a

consistent manner, addressing appropriate risks while fulfilling stakeholder

requirements.

Scope ManagementDefined as all of the services to be provided as a program. Identifies the deliverables,

and estimates the risks while establishing clear achievable objectives.

Schedule managementDefined as the process of developing, maintaining and communicating schedules for

time and resource.

Cost Management

Defined as the processes, tools and activities involved in identifying the program's

financial sources and resources, integrating the budget of individual program

components, estimating and developing the overall budget for the program and

controlling the costs so that the program can be completed within the approved budget.

Change ManagementDefined as the process of requesting, determining attainability, planning and

implementing changes to a project (engineering or project change request).

Time Management

Defined as the process of capturing actual time spent on an activity that is captured in

the project plan. This allows one to track actuals vs. forecasts for time spent on

completing an activity.

Risk ManagementDefined as the processes, tools and activities that aids in identifying, evaluating, and

responding to program risks that are either through internal or external factors.

Quality Management

Defined as the processes, tools and activities of the performing organization that

determine quality policies, objectives and responsibilities so that the program will

satisfy the needs for which it was undertaken.

Communication Management

Defined as the processes, tools and activities for ensuring timely and appropriate

generation, collection, distribution, storage, retrieval and ultimate disposition of

program information.

Project Closeout

Defined as the process or activities associated with finalizing the hand off of

the project deliverables to the business team and completing the administrative aspects

of closing the project.

Capability – Project Planning and Execution

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Is Capital Project Management?

Sub-Capability Description

Resource Supply and Demand

Forecast

Defined as the process of forecasting the resources required to execute a project,

comparing demand against available resources and identifying the resource gaps.

Resource Assignments Defined as the process of assigning named resources to a project.

Contractor Labor ManagementDefined as the process of identifying and managing the contractors that are required to

execute a project.

Capability – Resource Management

Sub-Capability Description

Engineering Data Management Defined as administration of documents or data related to engineering applications.

Engineering Design Defined as the process of devising a process unit to meet desired needs.

Simulation and

Analysis

Defined as the usage of simulation tools that are used for the design, development,

analysis and optimization of technical processes such as refineries, chemical plants,

power stations, complex manufacturing operations, and similar technical functions.

Capability – Engineering Management

Sub-Capability Description

Operational Purchasing

Defined as the activity of supporting the operational purchaser holistically across all

buying activities such as finding an appropriate source of supply, processing purchase

requisitions, and creating and processing purchase orders.

Contract ManagementDefined as the automated and manual processes for source assignments to operational

demands, by using source lists and purchase information records.

Capability – Sourcing and Procurement

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Is Capital Project Management?

Sub-Capability Description

Invoice and Payables

Management

Defined as the process to create supplier invoices with or without reference to a

purchase order; view and instantly correct inaccurate supplier invoices.

Supplier ManagementDefined as the process to classify and manage suppliers using attributes and master

data along with the continuous activity of supplier development.

Procurement Analytics

Defined as the ability of an organization to generate real-time insights into supplier

spend, evaluations and scores, and contracts while instantly spotting and addressing

gaps in suppliers’ performance in order to prevent the loss of business opportunities.

Capability – Sourcing and Procurement (continued)

Sub-Capability Description

Workforce Planning

Defined as the continual process used to align the needs and priorities of the

organization with those of its workforce to ensure it can meet legislative, regulatory,

service, production requirements and organizational objectives.

Career and Talent

Management

Defined as the process of using strategic human resource planning to improve business

value and to make it possible for organizations to reach their goals.

Capability – Human Resources

Sub-Capability Description

Stage Gate ManagementDefined as a phase-gate model, also referred to as a stage-gate process in which a

project is divided into stages or phases, separated by gates.

Finance and AccountingDefined as the field of accounting concerned with the summary, analysis and reporting

of financial transactions pertaining to a business.

Knowledge ManagementDefined as the process of creating, sharing, using and managing the knowledge and

information of an organization.

Reporting and VisualizationDefined as the reports and views that will enhance visibility of project status, thus

allowing teams to be aware of areas within the project that are on or off track.

Capability – Enterprise

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Are Some Of The Leading Practice Reports and Dashboards?

Capital Projects can be evaluated countless ways, but companies experience diminishing returns when criterias are redundant and overly complex. The main goal of these reports is to enable decision making with relevant and timely information.

Some of the leading practice reports that have been used by companies are:

Reports Description

Project Status Report

Allows decision makers to see how a project is progressing

throughout the different stages of a capital project.

Scope Management

Change Order Status – Identify number of change orders

requested for the project.

Change Order Impact – Identify costs of change orders

requested for the project.

Schedule Management

Allows decision makers to see how a project is progressing

throughout the major activities namely engineering,

procurement and construction.

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Are Some Of The Leading Practice Reports and Dashboards?

Reports Description

Cost Performance Index

A measure of the efficiency of expenses spent on a project.

Cost performance index (CPI) is the ratio of earned value

(EV) over actual costs (AC); therefore, CPI is equal to EV

divided by AC.

Schedule Performance index

Schedule performance index (SPI) is the ratio of the earned

value (EV) to the planned value (PV). If the SPI is less than

one, it indicates that the project is potentially behind

schedule to-date whereas an SPI greater than one,

indicates the project is running ahead of schedule.

Estimate at Completion (EAC)

Estimate at Completion (EAC) forecasts the total effort,

from start to finish, to complete a task, and deliver the

project based on actual performance to date and project

team estimates.

Estimate To Complete (ETC)

Estimate to Complete (ETC) is the remaining work of the

project.

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Are Some Of The Leading Practice Reports and Dashboards?

Reports Description

Engineering Progress

This indicator gives evidence of the progress of engineering

activities of a project taking into consideration the ratio

between the number of project released deliverables and

the related total number of deliverables to be released (e.g.

isometrics, P&IDs, etc.)

Material Availability

Highlights how current supply meets current & forecasted

demand by commodity code. Formula - ((Available Supply

- (Current + Forecasted demand) )/ Available Supply)*100

Quality Management:

Indicator on the percentage or number of non-conformities

opened by internal and external audit.

Safety

Number of days without lost time incident.

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

What Value Would An Organization Derive From An Implementation?

By implementing Capital Project management; an organization can realize quantifiable value across the following areas:

Value Driver

(Source – SAP Performance Benchmarking)

Estimated Improvement Ranges

Low High

Improved capital project proposal approval rate 5% 10%

Increased revenue through faster completion of projects 10% 20%

Reduced project cost overruns 20% 30%

Reduced capital projects management cost 20% 30%

Reduced billable revenue from change requests that is rejected by clients

20% 30%

Improve user compliance and ease namely Guided End-User buying

5% 10%

Increase sourcing savings – better unit price reduction 10% 15%

Improve Transactional Procurement FTE Productivity 15% 20%

Improve Invoice Receipt and Processing FTE Productivity 15% 20%

Improved supplier compliance 5% 10%

Improve days payable outstanding 2 days 5 days

Reduce cost by improving contingent labor spend under compliance

10% 15%

Improve statement of work (SoW) project cost savings through better rate negotiation

10% 15%

Reduce Accounts Payable Error Reduction 5% 6%

Increase Sourcing Savings by Enhanced Supplier Visibility 10% 15%

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

How Does An Organization Decide Which Technology Platform To Use?

Organizations should take a holistic approach when deciding on which technology platform to use. Requirements need to be looked at from two broad categories:

1. Functional and

2. Technical

For Functional requirements; there are six categories on which a technology platform need to be assessed on:

Functional requirement category Key question(s) to be ask

1. Project Planning & Execution

How well does the technology platform support the

management of scope, costs, schedule and change

management components with respect to executing a

project? How well does the tool represent and track

(hierarchical) interdependencies? How well does the tool

tie a project back to Portfolio strategy?

2. Resource ManagementHow well does the technology platform support resource

forecasting, allocation and time tracking?

3. Engineering Management

How well does the technology platform support

management of engineering information such as P&IDs,

CAD models and simulation calculations?

4. Sourcing and ProcurementHow well does the technology platform allow an

organization to source and procure assets globally?

5. Human Resources

How well does the technology platform support the talent

management and career development of employees

assigned to a project?

6. Enterprise Functions

How well does the technology platform support the

integration with other business functions such as finance

and accounting?

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

CAPITAL PROJECT MANAGEMENT OVERVIEW

How Does An Organization Decide Which Technology Platform To Use?

For Technical requirements; there are six categories on which a technology platform need to be assessed on:

Technical requirement category Key question(s) to be ask

1. Reporting

How well does the technology platform support the

customization of personal and customized dashboards,

charts and diagrams, custom reports and report

templates, searching and filtering functionalities, save

customised reports, multiple export formats, e-mail alerts,

KPI and financial reporting?

2. Accessibility & Security

How well does the technology platform enable access

restrictions and flexibility of security concept, accessibility

via web and support of single sign on?

3. Localization & Languages

How well does the technology platform enable the usage of

multiple currencies, multiple regional calendars, multiple

region support and calculation of exchange rate effects?

4. External Interfaces

How well does the technology platform integrate with

other project management tools such as MS Project,

Oracle Primavera, Outlook / LDAP integration, export to

common desktop applications, integration with common

financial applications, common help desk applications,

common requirements management tools, and web-

portals for publication?

5. Modularity & AdaptabilityHow easy is it configure and/or customize the technology

platform?

6. Document Management

How easy is it for the technology platform to store and

archive documents, workflow integration and standard

interface to document management systems?

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

IMPLEMENTING

“While a high percentage of project profitability is determined at the bid stage, around half of all projects are not delivered to plan ‒ in fact, on average, twenty percent of project value is at risk.”

Chakib Bouhdary, Chief Transformation Officer, SAP

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

HOW CAN SAP HELP?

Power Of SAP S4/HANA To Enable Capital Project Management

SAP is positioned to help Oil, Gas & Chemical companies in managing capital projects through our HANA platform. The following use case highlights how SAP can take a project from Planning to Execution using the Enterprise Project Portfolio Management Process:

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

Process Stage /

Use Case Step User Interface

S4/HANA Suite /

Solution Capabilities

Identify

Opportunities

Submit project proposals

Follow simplified process with decision

points / gates

Enter basic project data

Enter expected timeframe & costs

Add attachments

Send for review

Create a Project

Structure the project with

WBS elements

Networks

Network activities

Milestones

Progress tracking events

Schedule activities

Versions and Simulations

SAP Enterprise Project Connection

allows customers to integrate with 3rd

party tools such as MS Project, Oracle

Primavera thereby preventing the

need to duplicate efforts

Strategy

Project

Proposal

Project Proposal

Project Process

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA RESEARCH & DEVELOPMENT

Create Project

Project Plan

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Power Of SAP S4/HANA To Enable Capital Project Management

Process Stage /

Use Case Step User Interface

S4/HANA Suite /

Solution Capabilities

Conduct Financial

Planning at Project

and Portfolio Level

High-level financial and capacity

planning

Roll-up planning on bucket level

Flexible planning periods

Distribution functions

Embedded analytics

ERP integration

Plan Resource

Requirements and

Costs

Plan project costs and resource demand

Using flexible excel based user

interface

Maintain versioning

Transfer to operative project

Conduct forecasting

ERP Integration

Direct creation of project from

portfolio item

Synchronize attributes and status

between portfolio item / project and

portfolio item decision point / WBS

elements or network activities

Enhanced financial and capacity data

integration including financial

download options

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

Project

Planning

Project

Planning

Project Level Financial Planning

Portfolio Level Financial Planning

Financial Planning

HOW CAN SAP HELP?

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA FINANCE

Project

PlanningSAP S/4HANA FINANCE

Resource Management

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Process Stage /

Use Case Step User Interface

S4/HANA Suite /

Solution Capabilities

Review Material

Shortage

Review project material requirements

Review material shortage

Enter material order

Analytics and

Insights

Check budget overview

Check average supplier delivery

performance

Review detail report

Select Supplier

Choose best supplier

Complete material order entry

Power Of SAP S4/HANA To Enable Capital Project Management

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

Procurement

Procurement

Procurement

Material Order Review

Review Shortages

Select Supplier

HOW CAN SAP HELP?

SAP S/4HANA SOURCING & PROCUREMENT

SAP S/4HANA SOURCING & PROCUREMENT

SAP S/4HANA SOURCING & PROCUREMENT

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Process Stage /

Use Case Step User Interface

S4/HANA Suite /

Solution Capabilities

Execute Change

Requests and

Identify Issues

Using S4/HANA Workflow and Analytics

Identify project issues

Create and execute project changes

Conduct cost impact assessment

Identify Risks

Using S4/HANA Workflow and Analytics

Identify risks

Conduct financial impact of risk

Conduct risk scoring

Review and agree on risk mitigation

approach

Engineering

Management

Central platform enabling systems

engineering and mechatronics

Engineers single user interface

Create bill of materials

Central access point to all data

Platform for integrating design tools

MCAD/ECAD. Multi-CAD PMI Support

Technical data package (TDP)

publishing

Visual work instructions and

procedures

Power Of SAP S4/HANA To Enable Capital Project Management

Execution

Execution

Execution

HOW CAN SAP HELP?

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

Create Change Requests

Issue Management

Risk Management by Project

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA RESEARCH & DEVELOPMENTManage Engineering Drawings

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Process Stage /

Use Case Step User Interface

S4/HANA Suite /

Solution Capabilities

Review and

Confirm

Contingent Labor

Using SAP Fieldglass

Create, distribute and interview

candidates

Create and activate work order

Contractors submit time and

expenses; organization pays and

exports to accounts payable

Onboard, Train

and Retain Capital

Project Skilled

Workforce

Using SAP SuccessFactors manage

Employee through one tool

Create and track performance goals

and compensation

Hire, onboard and retain talent

Provide a platform for learning

Conduct workforce planning and

analytics

Submit and

Review Travel and

Expenses

Using SAP Concur manage

Travel – book anytime, anywhere on

convenient web and mobile

applications

Expense – get visibility from receipt

capture to reimbursement. Manage

expenses anytime, anywhere

Invoice – Validate spend before

it happens. Capture all spend

via paper and electronic invoices. Pay

vendors on your schedule. Maximize

supplier savings

Power Of SAP S4/HANA To Enable Capital Project Management

Execution

Execution

Execution

HOW CAN SAP HELP?

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

SAP S/4HANA HUMAN RESOURCES

SAP S/4HANA SOURCING & PROCUREMENT

SAP S/4HANA SOURCING & PROCUREMENT

Book Travel

Claim Expenses and Pay Invoice

Manage Employees

Review Labor Shortage

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

Process Stage /

Use Case Step User Interface

S4/HANA Suite /

Solution Capabilities

Monitor Individual

Project

Using S4/HANA Workflow and Analytics

Compare planned, forecasted and

actual values

Review individual projects and view

detailed project information

Drilldown into financial documents

Conduct milestone trend analysis

Monitor Portfolio

of Projects

Monitor portfolio of projects

Using dashboards and KPIs

Set alerts for budget, schedule,

staffing, risk etc.

Review planned vs. actuals

Aggregate information on various

portfolio levels

Reporting layout can be designed by

business user

Monitor Projects

at a Company’s

Board Of Directors

Level

Monitor portfolio of projects at Board

level using SAP’s Digital Boardroom

application

One experience and one view of your

business

Use Board of Directors agenda topics

to view reports and gain insights real-

time

Power Of SAP S4/HANA To Enable Capital Project Management

MonitoringStrategyProject

Proposal

Project

PlanningProcurement Execution1 2 3 4 5

Enterprise Project Portfolio Management Process

HOW CAN SAP HELP?

Monitoring

Monitoring

Monitoring

Fiori based Project dashboard

Portfolio Review

Digital Boardoom

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA RESEARCH & DEVELOPMENT

SAP S/4HANA ENTERPRISE MANAGEMENT

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

HOW CAN SAP HELP?

Solution Suite

The above use case highlights how SAP’s S4/HANA solution suite utilizes the digital core to:

SAP S4/HANA is able to the execute on the above by using our solution offerings that touches on every aspect of an organization’s line of business:

Immediate

Business

Empower users doing business with insights to act in the moment – anywhere,

anytime

Intelligent and

Smart Business

Provide an user with predictive suggestions and simulations based on pattern and

analysis to deliver the right information, product, service or action at the right time

Improved

Data Quality

Provide an user with data that is enriched by digital capabilities and IoT (Internet of

Things)

Integrated and

Connected Business

Allow an organization to be fully connected to the consumer, customers, suppliers

and workforce

SAP Solutions for Capital Project Management

Key –

SAP S/4HANA MARKETING ANDCOMMERCE

SAP S/4HANA HUMAN RESOURCES

SAP S/4HANA MANUFACTURING

SAP S/4HANA SUPPLY CHAIN

SAP S/4HANA SALES

SAP S/4HANA FINANCE

SAP S/4HANA SERVICE

SAP S/4HANA SOURCING & PROCUREMENT

SAP S/4HANA ASSET MANAGEMENT

SAP S/4HANA RESEARCH & DEVELOPMENT

Th

e D

igita

l Co

reT

he

Dig

ita

l Co

re

Enterprise ManagementStreamlined

Procure to PayAccelerated Plan to

ProductOptimized Order

to Cash

Enhanced Request to

Service

HRConnectivity

Core Finance

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

HOW CAN SAP HELP?

Customer Successes

Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture.

Integrated SAP Project System and Primavera

Delivered tailored configuration with only 200 service hours

Legacy customer of solution –co-development effort that forms the basis of the existing out of the box routine maintenance and STO solution.

Participated in EPC 2.0 customer Validation and Ramp-up

GenOn Energy, Inc. (NYSE: GEN) is one of the largest competitive generators of wholesale electricity in the United States. With power generation facilities located in key regions of the country and a generation portfolio of approximately 22,000 megawatts, GenOn is helping meet the nation’s electricity needs.

Integrated SAP Project System and Primavera to support Routine Plant Maintenance and Turnaround

Legacy customer of solution that migrated to the SAP Enterprise Project Connection 2.0 , as well as enhancing workflows to support additional Plants.

Participated in Ramp Up and is now live on SAP Enterprise Project Connection 2.0 as of September 2012.

BCHydro operates 31 hydroelectric facilities and three thermal generating plants, totaling 12,000 megawatts (MW) of installed generating capacity. Our hydroelectric facilities provide over 95 per cent of the total electricity we generate and are located throughout the Peace, Columbia and Coastal regions of B.C. Our three thermal generating plants provide the remaining electricity generation.

Integrated SAP Project System and Primavera

Legacy customer of solution that migrated to the SAP Enterprise Project Connection 2.0 platform, as well as enhancing kflows to support additional Business scenarios.

Solution working in production 4 months from contract signature

“Between F2008 and 2012, BC Hydro’s investment in capital projects is planned to grow by 84%. Accompanying this growth is increasing project complexity, project interdependence and increased reporting requirements to stakeholders. Confero from *SOALogix was chosen after proven out of the box capability and we were able to move to production within four months after contract signature.”

Bryan BakerProject Owner

BCHydro

* SOALogix acquired by SAP in December, 2009

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

HOW CAN SAP HELP?

Customer Successes

IESA is a leader in the Construction of Oil and Gas assets. Its objective was to simplify, centralize and collaboratively master the complex project of six vessels. It undertook the construction of six floating production, storage and offloading vehicles and turned to SAP for a solution to meet the objectives while complying with international regulations for complex, ultra deep offshore oil and gas production.

Implementation of a 3D HTML5 application and integration with ERP backend within 5 months

Visual context for a heterogeneous IT Landscape

Better collaboration between the EPC areas by visualizing engineering and business data in 3D

CS Energy is a Queensland Government owned energy provider with a unique mix of technology and an innovative approach, powered by experienced, skilled and talented people.

Integrated SAP Project System and Primavera

Delivered tailored configuration in support of Capital Project management

Transfield Services is an operations, maintenance and construction services business, operating globally in the resources, energy, industrial, infrastructure, property and defense sectors.

Integrated SAP Project System and Primavera

Partner delivered tailored configuration in support of service delivery business.

“I transferred all of my GCN3 outage orders from SAP to Primavera. I transferred 234 work orders with a total of 328 operations. SAP Enterprise Project Connection (EPC) streamlined processing and saved me at least a good 2 days of data entry in Primavera.”

Chad Hufnagel

Maintenance Services Planner

RRI Energy, Inc.

“Having a seamless interface that was scalable, supportable with future Primavera upgrades and readily re-

configurable as infrastructure, applications and business workflows evolved was crucial in selecting

SOALogix* as our partner.”

John Long

System Analyst Global Refining, Pascagoula MS

Chevron Corporation

* SOALogix acquired by SAP in December, 2009

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

TRANSFORMING

Final Thoughts “Today’s employees and consumers are networked and on the

move. Great products alone are no longer enough to earn their

loyalty. Businesses have to provide a next-generation experience,

tailored completely to the individual. SAP is driven by a relentless

passion to help our customers innovate to win. We deliver the

industry solutions and the real-time platform for enterprises to

run like never before.”

Bill McDermott, Chief Executive Officer, SAP

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

FINAL THOUGHTS

In summary, implementing SAP’s S4/HANA Capital Project Management solution allows an organization to:

1. Provide visibility into the decision making process while ensuring alignment to corporate strategy

2. Provide for one central project repository

3. Replace disconnected solutions through a consolidated work environment thereby reducing total cost of ownership

4. Ensure that project and portfolio Management is integrated into other business processes (Finance, Procurement, Human Resources, Sourcing and Procurement and Engineering Management) in the ERP as part of the solution

5. Help establish project governance and control projects from idea to project execution to operations and

6. Streamline the reporting generation process and improve data quality by eliminating manual steps through a real time reporting environment

SAP’s vision is to help the world run better and improve people’s lives. We remain focused on the success of our customers as they are at the heart of our ambitions. We recommend that companies that are strongly considering implementing Capital project management to engage with us by leveraging our Value Engineering approach to identify use cases, build a business case for change and execute on a proof of concept to see how SAP can help organizations provide greater shareholder value on current of future capital investments.

National Oil Companies

Oil Field Services

Midstream & Refining Downstream & Retailing

Integrated Majors

Exploration & Production

The Oil, Gas & Chemicals Industry repeatedly chooses SAP as their strategic partner.

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SAP Connected Project Management Whitepaper (02/17) © 2017 SAP SE. All rights reserved

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The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP provides this information as guidance only to illustrate estimated costs and benefits of the predicted delivery project. These materials may be based upon information provided by you, information provided by other companies and assumptions that are subject to change. These materials present illustrations of potential performance and cost savings, and do not guaranty future results, performance or cost savings. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Authors:

Ashwin MenonIndustry Value Advisor [email protected]

Adam DuranSolutions Management – Enterprise Portfolio and Project Management and 3D Visual [email protected]