SAP Functions in Detail
SAP Solutions for Small Businesses
Efficient Project Management
Drive Project Success with SAP®
Business ByDesign™
and Midsize Companies
The SAP® Business
ByDesign™ solution helps
you optimize project man-
agement efficiency, trans-
parency, and collaboration.
It provides comprehensive
functionality that supports
end-to-end project manage-
ment, giving project man­
agers the tools and visibility
required for efficient exe­
cution and ongoing control.
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

 Project Management
Challenges
The Need for an Integrated,
End-to-End Process

Successfully meeting today’s business challenges requires

effective project management. Whether you are creating
a new product or launching a state-of-the-art marketing
campaign, how well your organization manages projects,
tracks costs, and identifies and addresses project-related
issues can have a big impact on your bottom line. But if
your company still relies on traditional, stand-alone project
management applications, most likely you lack the end-
to-end process support you need to ensure success. If
these applications are not integrated with other areas of
your organization, such as financials and HR, you may
experience serious gaps in visibility and information flow,
which could reduce the productivity of your employees
and make it difficult to run cost-effective projects.

4 SAP Functions in Detail – Efficient Project Management

As a result, you may be facing the
following types of challenges:
• Projects run over budget without
anyone knowing until the project is
completed.
• Project managers do not have visibility
into available resources, making it
difficult to staff projects efficiently
with the right people.
• The true costs of projects are never
captured, so it’s hard to plan for new
initiatives.
• Project data is scattered across differ-
ent applications and even handwritten
notes – rather than centralized – which
minimizes visibility for project manag-
ers and other key stakeholders and
makes project reporting a costly,
error-prone process.
• Inefficient manual processes – such
as rekeying time-sheet data into HR
SAP Business ByDesign
supports all types of proj-
ects, from basic cost col­
lectors to sophisticated, full-
scope projects in areas such
as research, new product
development, and marketing.
or payroll systems – tie up resources,
increase the chance of payroll and
contractor payment errors, and drive
up overall costs.
• Project managers and others stake-
holders lack transparency into projects,
making it hard to access the information
needed for fact-based decision mak-
ing; for example, they can’t identify
when projects are running over budget
in time to adjust project staffing and
head off losses.
These problems are all too familiar to
most project management profession-
als. Stand-alone project management
applications were never designed to

Figure 1: SAP®
BusinessByDesign™ What can be How do I What does SAP® What can I achieve?
and Project improved? improve? software enable?
Management
#1 Maximize utiliza- Centralize resource Planning and Operating metrics: Capacity utilization;
tion of talents; allocation; expand resource project number of new offerings; percentage of
innovate service offers via contrac- management; profitability per project
portfolio; focus on tors; increase integration with
profitable projects project insight all areas; built-in
analytics Financial results: Revenues from
projects; revenues from new offerings;
project profitability

#2 Reduce service Enhance project Support for end-to- Operating metrics: Number of projects
delivery and setup; optimize end processes and finalized on time and within budget
project-related staffing; improve ad hoc collaboration
costs; improve collaboration;
operational increase
efficiency transparency Financial results: Project profitability
and costs overview; project cost by
project and cost structure

#3 Bill more Automate and inte- Time and expense Operating metrics: Operating costs for
quickly, accurately, grate time recording recording that is staffing, recording time and expenses,
and efficiently to and billing; collabo- tightly integrated and billing
collect customer rate better with with procurement
payments earlier external parties and financials
Financial results: Days sales
outstanding and cash flow

SAP Functions in Detail – Efficient Project Management 5

meet the comprehensive needs of an
entire organization. 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. 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.
This integration is the key to enhancing
efficiency, transparency, and collabora-
tion at both project and corporate levels.
Designed specifically for midsize com-
panies, the SAP® Business ByDesign™
6 SAP Functions in Detail – Efficient Project Management
solution is a complete and adaptable
on-demand business solution. The
powerful functionality supporting project
management helps you optimize project
management efficiency, transparency,
and collaboration and supports all phases
of project management (see Figure 1).
Project managers are free to plan and
structure projects in a manner that works
best for them, and they have instant
access to the tools and visibility they
require for efficient execution and ongoing
control. At the same time, the software
helps you ensure that projects meet
the needs of other departments and
the overall enterprise – for example, by
making it easier to gather and report on
project data.
Project Planning and Execution
Supporting the Complete Project Lifecycle

Figure 2: Covering the

Complete Lifecycle Order Manage Fulfill Settle

Create Create Create Manage Perform Create Create Collect Post to

opportu- sales sales project services time and invoice payment ledger
nity quote order expense
confirma-
tions

Manage

Define Schedule Plan work Staff pro- Procure

tasks timelines and create ject (inter-
phas­es, project nal and
and mile­ cost esti- external)
stones mation

Project management functionality in the
SAP Business ByDesign solution sup-
ports the entire project lifecycle, from
initiation and planning to execution and
closing (see Figure 2). You can quickly
access up-to-date information about
projects and empower your project man-
agers to make changes to them at any
point in time. The software puts project
The software puts project
performance data at your
fingertips and helps you
control project tasks,
costs, and schedules with
minimal time and effort.
performance data at your fingertips and
helps you control project tasks, costs,
and schedules with minimal time and
effort. Project managers can use this
information to provide you with accurate
progress and cost data, as up-to-date
reports are just a click away. Equally
important, your project managers and
you have visibility into project data and
analytics to determine and monitor trends.
For example, 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.
Project Planning and Scheduling
SAP Business ByDesign supports all
types of projects, from basic cost col-
lectors to sophisticated, full-scope proj-
ects in areas such as research, new-
product development, and marketing.
For added flexibility, your project
managers can readily expand projects
that are used solely for cost collection
to meet more complex requirements.
Project managers can plan and structure
projects in any way that works best
for them, including phases, tasks, mile-
stones, and checklists as needed. The
software gives them instant access to a
variety of tools, including Gantt charts,
work breakdown structures, and network
diagrams, to graphically plan and repre-
sent projects. These interactive graphi-
cal views simplify project structuring,
scheduling, and planning. Managers can
select views based on their personal
preferences and the type of activity they
need to perform.
To accelerate project planning, 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
can modify these templates as needed,
as well as use an existing project as
a template for a new project. They can
consolidate data from past projects in
order to better plan for new projects.
Once planned, projects can be assigned
to programs and departments within your
organizational management hierarchy.

SAP Functions in Detail – Efficient Project Management 7

Project Resource Management
Support for resource management
makes it easier for your project manag-
ers to staff projects, assign tasks, and
track working times and task execution
(see Figure 3). With online access to
HR data, resource managers can search
for both internal employees and external
resources with the appropriate skills
and assign them to projects. Once team
members have been assigned to a proj-
ect, the project manager can allocate
members to the appropriate work
packages. Project team members can
access all project tasks for which they are
responsible. Additionally, they can view
and edit all work packages to which they
have been assigned. Using automatically
generated personalized time sheets
based on each employee’s task list, proj-
ect managers and employees can track
the time required to complete each task.
Throughout the resource planning and
staffing process, 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. Team mem-
bers can collaborate via shared document
centers and automated workflows.
Project Procurement
Project management functions in SAP
Business ByDesign are tightly integrated
with purchasing. This integration enables
your project managers to initiate and
track the purchasing of goods and
services – including external resources
– directly within the project manage-
ment work center, where they perform
most of their tasks. For example, they
can initiate purchase requests for any
planned, time-based service. And inte-
grated workflows keep them informed
when, for example, shopping carts or
invoices are posted to their project so
that they can approve or reject them.
This provides full transparency of costs
and gives managers greater control in
managing projects.
SAP Business ByDesign consolidates
information on all project-related pur-
chase requests and orders and presents

Figure 3: SAP
BusinessByDesign™ What can be How do I What does SAP® What can I achieve?
and Resource improved? improve? software enable?
Management
#1 Increase reve- Centralize resource Optimized skills Operating metrics: More billable days
nues by selling allocation pro- usage; integration per team member; higher customer
more projects and cesses; offer more of third-party satisfaction; broad service portfolio
by offering more services by using service agents to
services external resources increase resources
Financial results: Increased revenues
from established and new clients

#2 Boost profitabil- Evaluate and assign Linking of talent, Operating metrics: Higher rate of
ity due to highly the most suitable demand, and avail- resource allocation; increased consul-
motivated resources (internal ability; simplified tant satisfaction; reduced turnover
professionals or external) to recording of skills
projects and experience
Financial results: Increased profitability
per client and per project

#3 Streamline pro- Equip project man- Central pool of Operating metrics: Reduced time
cesses related to agers with better internal and exter- for planning and staffing per project
project staffing insight on availability nal talents search-
based on existing able by skills and
assignments availability
Financial results: Lower actual
project costs, including costs from
subcontractors

8 SAP Functions in Detail – Efficient Project Management

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

Project managers and financial analysts
need to manage and control project
costs. The project accounting function-
ality in SAP Business ByDesign gives
The project accounting func-
tionality in SAP Business
ByDesign gives your project
managers and you detailed
information regarding project
your project managers can focus on
project management activities, such as
planning and execution, while the finance
department handles the financial aspects
of a project. Both the project manager
and the financial professional working on
a project have access to current project
data, giving them needed insight into
costs, tasks, and schedules. Financial
analysts have access to projects from
their own work center for cost and
revenue management; they can monitor
existing projects.
Using built-in analytics, your project
managers and you can analyze central-
ized project data to answer vital ques-
tions 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,
the current planned costs, and actual
costs and deviations by project ele-
ment, service or product, account, or
period?

costs – information that sup- Project Accounting

ports decision making, helps
control project spend, and
equips everyone involved to
proactively manage project
performance.
your project managers and you detailed
information regarding project costs –
information that supports decision mak-
ing, helps control project spend, and
equips everyone involved to proactively
manage project performance.
The solution decouples project logistics
data from financial data – a significant
innovation. This decoupling means that
Financial integration of project manage-
ment within SAP Business ByDesign
addresses all aspects of project account-
ing and controlling. Your project manag-
ers and you can view reliable, up-to-date
information about project-related costs
incurred as a result of time recordings,
travel expenses, and other cost-related
postings to project tasks. Time record-
ings for both employees and external
service providers can be tracked for
each project. Within project accounting,
project managers can post supplier
invoices and record the consumption
of materials for internal projects. The
solution records the provision of internal
services and enables the calculation
of overheads for specific projects.

10 SAP Functions in Detail – Efficient Project Management

 The Power of Integrated Project
Management Functionality
Enabling Visibility and Data Sharing
Across Departments

Now you can realize the benefits of Find Out More

Explore. See how SAP project management functionality that’s
Business ByDesign integrated with other functional areas To learn how SAP Business ByDesign
within your core business software. can help you manage projects more
can help you be a With SAP Business ByDesign, project effectively, contact your SAP represen-
best-run business. managers and team members enter tative or visit www.sap.com/solutions
data only once, and it is available to the /sme/businessbydesign.
Evaluate. Determine if relevant functions. For example, work-
time confirmations are posted simulta-
software as a service neously in a project task as actual and
(SaaS) is right for you. in financials as costs. Because data is
available automatically to all depart-
ments, such as purchasing, HR, and
Experience. Learn to financials, all areas of your company
adapt SAP Business have reliable, up-to-date information
and reports; greater visibility into proj-
ByDesign to meet your ect activities and costs; and more con-
changing business trol over projects. This integration – and
the automation and transparency it
needs. enables – is available only when you
deploy the project management func-
tionality in conjunction with other areas
of SAP Business ByDesign.

SAP Functions in Detail – Efficient Project Management 11

Quick facts www.sap.com /contactsap

Summary
The SAP® Business ByDesign™ solution provides flexible, scalable support for project
management and integrates with other core operations within your company, such as
accounting, procurement, and project management.

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, fact-based decision making

Key Features
• Project planning and scheduling – Structure a project using interactive graphical views,
plan project tasks, and assign team members
• Project resource management – Staff projects, track working times and task execution,
and leverage built-in analytics to support staffing decisions
• Project procurement – Initiate and track the purchase of goods and services, including
external resources, for cost transparency and greater control
• Time recording – Record, 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; view
reliable, up-to-date information about project-related costs; and analyze data

Business Benefits
• People-centric collaboration among employees, partners, and management thanks
to multiple communication channels
• Increased transparency through access to reliable, accurate project data about project
progress and deviations, actual consumption of resources, and “red flag” issues
• Efficient planning, tracking, and reporting of projects with a variety of graphical,
interactive tools
• High degree of flexibility through support for all types of projects, from cost collectors
that measure costs for corporate programs to sophisticated, full-scope projects
50 090 409 (10/02)
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