Industry EC & O

SAP for
Engineering,
Construction &
Operations
Industry Briefing
Book
Comments and questions: david.clemens@sap.com
Edition 2
January 2012

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and
SAP for Engineering,
Construction & Operations
TransformationRun Better
Proof Points Strategy
Solutions
Innovations
Drivers
Take Away
Comments and questions: david.clemens@sap.com

© 2011 SAP AG. All rights reserved. 4
Drivers Innovations Take AwayStrategyRun 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 sales30%
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

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 HRFinance
 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
Development
Procurement
IT HRFinance
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 capabilitySAP 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
Development
Procurement
IT HRFinance

 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
Development
Procurement
IT HRFinance
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
Development
Procurement
IT HRFinance

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
Development
Procurement
IT HRFinance

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
Development
Procurement
IT HRFinance

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
Development
Procurement
IT HRFinance

 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
Development
Procurement
IT HRFinance

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
Development
Procurement
IT HRFinance

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
Development
Procurement
IT HRFinance

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

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

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
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
MobilityIn-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

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

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

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
DetailsDetails DetailsDetails
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
DetailsDetails
Innovations
Solutions
Technology
• Mobility
Delivery
solutions
• Ecosystem
• Road map
Future

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 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

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

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

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.
1
2
3
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.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
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
their respective companies. Data contained in this document serves
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”)
for informational purposes only, without representation or warranty of
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
services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be
construed as constituting an additional warranty.

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