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SAP Functions in Detail SAP Solutions for Small Businesses and Midsize Companies

EFFICIeNT PROJeCT MANAGemeNT
DRiVE PROJEct SUccEss WitH SAP® Business ByDesign™

The SAP® Business ByDesign™ solution helps you optimize project management efficiency, transparency, and collaboration. It provides comprehensive functionality that supports end-to-end project management, giving project man­ agers the tools and visibility required for efficient exe­ cution and ongoing control.

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CONTENT ^ 4 Project Management Challenges ^ 7 Project Planning and Execution 7 Project Planning and Scheduling 8 Project Resource Management 8 Project Procurement 9 Time Recording 9 Assignments 9 Working Time 9 Time Confirmations and Payroll Processing 9 Expense Recording 9 Change Management 9 Project Invoicing ^ 10 Accounting for Projects 10 Project Accounting ^ 11 The Power of Integrated Project Management Functionality 11 Find Out More ^ 12 Quick Facts .

tracks costs. 4 SAP Functions in Detail – Efficient Project Management . how well your organization manages projects. Whether you are creating a new product or launching a state-of-the-art marketing campaign. and identifies and addresses project-related issues can have a big impact on your bottom line. stand-alone project management applications. such as financials and HR. most likely you lack the endto-end process support you need to ensure success. If these applications are not integrated with other areas of your organization. you may experience serious gaps in visibility and information flow. End-tO-End PROcEss Successfully meeting today’s business challenges requires effective project management. which could reduce the productivity of your employees and make it difficult to run cost-effective projects.PROJeCT MANAGemeNT CHALLeNGeS THE NEEd fOR an IntEGRatEd. But if your company still relies on traditional.

• Project managers and others stakeholders lack transparency into projects. How do I improve? Centralize resource allocation. and efficiently to collect customer payments earlier Automate and integrate time recording and billing. • Project data is scattered across different applications and even handwritten notes – rather than centralized – which minimizes visibility for project managers and other key stakeholders and Figure 1: SAP® BusinessByDesign™ and Project Management makes project reporting a costly. revenues from new offerings. improve collaboration. making it hard to access the information needed for fact-based decision making. from basic cost col­ lectors to sophisticated. expand offers via contractors. error-prone process. increase project insight or payroll systems – tie up resources. and marketing. project cost by project and cost structure Time and expense recording that is tightly integrated with procurement and financials Operating metrics: Operating costs for staffing. • The true costs of projects are never captured. integration with all areas. These problems are all too familiar to most project management professionals. and billing Financial results: Days sales outstanding and cash flow #3 Bill more quickly. making it difficult to staff projects efficiently with the right people. focus on profitable projects What does SAP® software enable? Planning and resource project management. new product development. accurately. recording time and expenses. project profitability Operating metrics: Number of projects finalized on time and within budget What can be improved? #1 Maximize utilization of talents. percentage of profitability per project Financial results: Revenues from projects. optimize staffing. increase the chance of payroll and contractor payment errors. for example. number of new offerings. • Project managers do not have visibility into available resources. • Inefficient manual processes – such as rekeying time-sheet data into HR SAP Business ByDesign supports all types of projects. improve operational efficiency Enhance project setup. you may be facing the following types of challenges: • Projects run over budget without anyone knowing until the project is completed. so it’s hard to plan for new initiatives. they can’t identify when projects are running over budget in time to adjust project staffing and head off losses. fullscope projects in areas such as research. innovate service portfolio. collaborate better with external parties SAP Functions in Detail – Efficient Project Management 5 . and drive up overall costs.As a result. increase transparency Support for end-toend processes and ad hoc collaboration Financial results: Project profitability and costs overview. built-in analytics #2 Reduce service delivery and project-related costs. Stand-alone project management applications were never designed to What can I achieve? Operating metrics: Capacity utilization.

the SAP® Business ByDesign™ solution is a complete and adaptable on-demand business solution. That’s why you need project management functionality that supports your organization from an end-to-end process perspective – which requires that project management information flows automatically into processes used by other departments in your company. and collaboration and supports all phases of project management (see Figure 1).meet the comprehensive needs of an entire organization. Designed specifically for midsize companies. This integration is the key to enhancing efficiency. 6 SAP Functions in Detail – Efficient Project Management . and collaboration at both project and corporate levels. At the same time. Project managers are free to plan and structure projects in a manner that works best for them. transparency. transparency. The powerful functionality supporting project management helps you optimize project management efficiency. the software helps you ensure that projects meet the needs of other departments and the overall enterprise – for example. The execution and success of your projects have a far greater impact on your company than simply making it to the next milestone on time. by making it easier to gather and report on project data. and they have instant access to the tools and visibility they require for efficient execution and ongoing control.

The software puts project performance data at your fingertips and helps you control project tasks. The software gives them instant access to a variety of tools. The software puts project you have visibility into project data and analytics to determine and monitor trends. These interactive graphical views simplify project structuring. Your project managers can modify these templates as needed. and schedules with minimal time and effort. and schedules with minimal time and effort. your project managers can readily expand projects that are used solely for cost collection to meet more complex requirements. and planning. from basic cost collectors to sophisticated. You can quickly access up-to-date information about projects and empower your project managers to make changes to them at any point in time. to graphically plan and represent projects. They can consolidate data from past projects in order to better plan for new projects. full-scope projects in areas such as research. tasks. work breakdown structures. including phases. For example. For added flexibility. Once planned. as up-to-date reports are just a click away. you can track the following: • How project members are using their time on projects • How long it takes employees to perform certain tasks • Which tasks are taking more time than planned This insight helps your project managers anticipate potential project delays and then take proactive steps to avoid these problems. and network diagrams. SAP Business ByDesign provides a variety of nonoperational projects – or templates – that help you implement a consistent methodology and standardize processes across projects. your project managers and Project managers can plan and structure projects in any way that works best for them. from initiation and planning to execution and closing (see Figure 2). Equally important. Project managers can use this information to provide you with accurate progress and cost data. as well as use an existing project as a template for a new project. SAP Functions in Detail – Efficient Project Management 7 . performance data at your fingertips and helps you control project tasks. projects can be assigned to programs and departments within your organizational management hierarchy. costs.PROJeCT PLANNING AND EXeCUTION SUppORtinG tHE COmpLEtE PROJEct LifEcYcLE Figure 2: Covering the Complete Lifecycle Order Create opportunity Create sales quote Create sales order Manage Manage project Fulfill Perform services Create time and expense confirmations Settle Create invoice Collect payment Post to ledger Manage Define tasks phas­ es. costs. including Gantt charts. To accelerate project planning. and mile­ stones Schedule timelines Plan work and create project cost estimation Staff project (internal and external) Procure Project management functionality in the SAP Business ByDesign solution supports the entire project lifecycle. newproduct development. Project Planning and Scheduling SAP Business ByDesign supports all types of projects. milestones. Managers can select views based on their personal preferences and the type of activity they need to perform. and marketing. scheduling. and checklists as needed.

simplified recording of skills and experience Operating metrics: Higher rate of resource allocation. assign tasks. Using automatically Figure 3: SAP BusinessByDesign™ and Resource Management generated personalized time sheets based on each employee’s task list. Project Procurement Project management functions in SAP Business ByDesign are tightly integrated with purchasing. SAP Business ByDesign consolidates information on all project-related purchase requests and orders and presents What can I achieve? Operating metrics: More billable days per team member. project managers and employees can track the time required to complete each task. including costs from subcontractors 8 SAP Functions in Detail – Efficient Project Management . Throughout the resource planning and staffing process. broad service portfolio Financial results: Increased revenues from established and new clients What can be improved? #1 Increase revenues by selling more projects and by offering more services What does SAP® software enable? Optimized skills usage. they can view and edit all work packages to which they have been assigned. This provides full transparency of costs and gives managers greater control in managing projects. time-based service. where they perform most of their tasks. increased consultant satisfaction. resource managers can search for both internal employees and external resources with the appropriate skills and assign them to projects. project managers can use built-in resource analytics to support staffing decisions as well as access instant overviews of project assignments and unstaffed project tasks. Additionally. reduced turnover Financial results: Increased profitability per client and per project #3 Streamline processes related to project staffing Equip project managers with better insight on availability based on existing assignments Central pool of internal and external talents searchable by skills and availability Operating metrics: Reduced time for planning and staffing per project Financial results: Lower actual project costs. This integration enables How do I improve? Centralize resource allocation processes. Team members can collaborate via shared document centers and automated workflows. shopping carts or invoices are posted to their project so that they can approve or reject them. and track working times and task execution (see Figure 3). offer more services by using external resources your project managers to initiate and track the purchasing of goods and services – including external resources – directly within the project management work center. and availability. they can initiate purchase requests for any planned. And integrated workflows keep them informed when. higher customer satisfaction. integration of third-party service agents to increase resources #2 Boost profitability due to highly motivated professionals Evaluate and assign the most suitable resources (internal or external) to projects Linking of talent. Project team members can access all project tasks for which they are responsible. for example. demand.Project Resource Management Support for resource management makes it easier for your project managers to staff projects. the project manager can allocate members to the appropriate work packages. For example. Once team members have been assigned to a project. With online access to HR data.

The software automatically generates personalized time sheets based on each employee’s task list. Confirmation data is sent automatically to your purchasing clerk. employee time confirmations are made available automatically for payroll processing. Change Management SAP Business ByDesign supports change management by helping your project managers accurately track subsequent changes to the original project plan or baseline. You can flexibly assign expenses as a percentage of the overall expense report or by individual receipt. In addition. built-in compliance functionality supports adherence with country. External resources can perform their time confirmations in the solution. you can decide to invoice single items immediately. goods and services receipts. and employees can view their assignments in a personalized work list. Working Time External project-team members record working time in SAP Business ByDesign so your project managers always know who is working on what project. Assignments Project managers can assign project tasks to employees. The solution enables team members to readily submit travel and other expenses. and goods issues and returns. and project cost and revenue management. When required. supplier invoices and credit memos. as well as directly access the original documents. Line managers and project managers can confirm time for internal and external resources for tight project control. enabling your employees to efficiently record working times. work. For example. or not at all – if you are going to write them off completely. A project can have several previous baselines in addition to the active baseline. Internal and external team members can record working times directly within projects. project managers can make changes to project baselines and. each task. The following sections describe how you can benefit when project management functions leverage personnel data maintained by your HR department. Both HR staff and project managers work from the same centralized data source – eliminating the need to retype time-sheet data into payroll systems. they are used by the software to calculate and assign project costs and to track project progress.the information in a structured overview – so your project managers can view the entire document flow. at a later time. SAP Functions in Detail – Efficient Project Management 9 . if needed. route changes for management approval before activating them. Time Confirmations and Payroll Processing Because of the integration between project management and HR functions within the solution. expense reports. forecast. and baseline data such as cost. The software also enables project managers to take “snapshots” that freeze a project at a certain point in time for documentation and deviation analysis. Without the need for additional handling. They can set up and schedule the time intervals for the snapshots individually by project type. enabling both your employees and you to track the time required to complete Expense Recording Project team members should spend their time meeting project objectives. they can analyze the actual. Time Recording With SAP Business ByDesign.and company-specific regulations and allows you to define approval cycles involving auditing clerks and managers. Your employees can use the solution to confirm their time recordings for each task or service. You can automatically create invoice requests based on sales-order and projectexpense data. invoicing. When an invoice request is created. not on routine administrative tasks. and schedule by project task. time recording is integrated with project management functions. which can include time sheets. who confirms that the purchased service is fulfilled and triggers invoice generation to the supplier. Project Invoicing Take advantage of the integration of project management and financials when creating invoice requests for services delivered as part of a project. Once working times are confirmed. and project managers can set up an approval process for time records. including those of external payroll processing companies. you can use expense data in subsequent processes including reimbursement. which can be allocated automatically to an overall project as well as individual project tasks.

your project managers and you detailed information regarding project costs – information that supports decision making. Both the project manager and the financial professional working on a project have access to current project data. and actual costs and deviations by project element. Using built-in analytics. The solution records the provision of internal services and enables the calculation of overheads for specific projects. and equips everyone involved to proactively manage project performance. This decoupling means that your project managers can focus on project management activities. such as planning and execution.EnabLinG EffEctiVE COst ManaGEmEnt and COntROL ACCOUNTING FOR PROJeCTS Project managers and financial analysts need to manage and control project costs. service or product. The solution decouples project logistics data from financial data – a significant innovation. helps control project spend. Time recordings for both employees and external service providers can be tracked for each project. Financial analysts have access to projects from their own work center for cost and revenue management. account. up-to-date information about project-related costs incurred as a result of time recordings. The project accounting functionality in SAP Business ByDesign gives The project accounting functionality in SAP Business ByDesign gives your project managers and you detailed information regarding project costs – information that supports decision making. tasks. while the finance department handles the financial aspects of a project. project managers can post supplier invoices and record the consumption of materials for internal projects. the current planned costs. and equips everyone involved to proactively manage project performance. travel expenses. helps control project spend. and other cost-related postings to project tasks. they can monitor existing projects. and schedules. Within project accounting. 10 SAP Functions in Detail – Efficient Project Management . giving them needed insight into costs. Your project managers and you can view reliable. or period? Project Accounting Financial integration of project management within SAP Business ByDesign addresses all aspects of project accounting and controlling. your project managers and you can analyze centralized project data to answer vital questions such as: • What are the total actual costs for individual projects? • What are the total actual costs for all of my projects? • What are the original planned costs.

such as purchasing. Now you can realize the benefits of project management functionality that’s integrated with other functional areas within your core business software. Find Out More To learn how SAP Business ByDesign can help you manage projects more effectively. contact your SAP representative or visit www. Because data is available automatically to all departments. project managers and team members enter data only once. and more control over projects. Determine if software as a service (SaaS) is right for you. SAP Functions in Detail – Efficient Project Management 11 .com/solutions /sme/businessbydesign. Learn to adapt SAP Business ByDesign to meet your changing business needs. Experience. With SAP Business ByDesign. all areas of your company have reliable. See how SAP Business ByDesign can help you be a best-run business. Evaluate. up-to-date information and reports. worktime confirmations are posted simultaneously in a project task as actual and in financials as costs. HR. For example.THe POWeR OF INTeGRATeD PROJeCT MANAGemeNT FUNCTIONALITY EnabLinG VisibiLitY and Data SHaRinG AcROss DEpaRtmEnts Explore. greater visibility into project activities and costs.sap. and financials. and it is available to the relevant functions. This integration – and the automation and transparency it enables – is available only when you deploy the project management functionality in conjunction with other areas of SAP Business ByDesign.

.QUICK FACTS www. SAP NetWeaver. scalable support for project management and integrates with other core operations within your company. fact-based decision making Key Features • Project planning and scheduling – Structure a project using interactive graphical views. Business Challenges • Lack of visibility into available resources for project staffing • Extensive manual administration of project management activities that drives up costs • Limited control over – and visibility into – projects for timely. plan project tasks. National product specifications may vary.sap. and analyze data Business Benefits • People-centric collaboration among employees. and assign team members • Project resource management – Staff projects. ByDesign. PartnerEdge. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only. and SAP Group shall not be liable for errors or omissions with respect to the materials. and reporting of projects with a variety of graphical. Data contained in this document serves informational purposes only. These materials are subject to change without notice. up-to-date information about project-related costs. review. and approve employee and third-party working times • Project invoicing – Take advantage of integrated project billing based on sales-order and project-expense data • Project accounting – Carry out all aspects of project accounting and controlling. 50 090 409 (10/02) ©2010 SAP AG. Crystal Reports. view reliable. partners. and leverage built-in analytics to support staffing decisions • Project procurement – Initiate and track the purchase of goods and services. Clear Enterprise. BusinessObjects. actual consumption of resources. if any. interactive tools • High degree of flexibility through support for all types of projects. contact your SAP representative or visit www. and project management. Crystal Decisions. accurate project data about project progress and deviations. Business Objects and the Business Objects logo. and management thanks to multiple communication channels • Increased transparency through access to reliable. SAP. tracking. 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. R/3. and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP France in the United States and in other countries.sap. All rights reserved. Duet. SAP BusinessObjects Explorer. All other product and service names mentioned are the trademarks of their respective companies. and “red flag” issues • Efficient planning.com/solutions/sme/businessbydesign. for cost transparency and greater control • Time recording – Record. including external resources. full-scope projects For More Information To learn how SAP Business ByDesign can help you manage projects more effectively. procurement. without represen­ tation or warranty of any kind. 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. from cost collectors that measure costs for corporate programs to sophisticated. track working times and task execution. Nothing herein should be construed as constituting an additional warranty. such as accounting. Web Intelligence.com /contactsap Summary The SAP® Business ByDesign™ solution provides flexible. Xcelsius.