RISE With SAP For Construction

RISE with SAP for Construction
Accelerating Digitalization
June 2021
Shenaz Bilkis, SAP
Engineering, Construction and Operations (EC&O), Industry Business Unit (IBU), SAP
PUBLIC
EXTERNAL
Global megatrends and disruptions are reshaping construction,
accelerating the need for sustainable business model innovation
Trends Today Vision Strategic priorities
Expertise and
knowledge
Complexity Siloed information BIM-based

collaboration Connected
construction
Intercompany
collaboration
Workforce experience Manual process Automation Commissioning

and operations
Digital supply chain

Connected
Low productivity Disparate suppliers supply chain
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Construction companies pursue 5 strategic priorities
Strategic priority Call to action
Put knowledge into a digital format, and deliver to people at the time, place and format they
Expertise and knowledge need it to be effective
Connected construction Establish manufacturing-like construction site and have coordinated off-site fabrication
Connect the project team to share the latest information while delivering at the lowest
Intercompany collaboration
possible costs using model-based collaboration
Commissioning Improve the transition from the construction phase to the operational phase with seamless
and operations transfer of data and models
Digital supply chain Achieve on-time, on-quality supply chain with minimal need for manual expediting activities

Construction company end-to-end value chain
Opportunity management Talent management Supply chain management Project execution Operations and maintenance
KPI: Win rate KPIs: Talent performance, KPIs: Fill rate, delivery time KPIs: Schedule, cost KPIs: Maintenance costs,
retention
Deal Employee skills Submittal Estimate Commissioning

qualification and calendar processing transformation and handover
Search for
Lead Opportunity Learning and Material Forecasting Financial As-built and Maintenance
Onboarding qualified
management management development expediting and billing planning spare parts and repair
resources
Manage Requirement Equipment Collaborative Schedule Portfolio Energy mgmt. and

Bid analysis Estimating Recruiting
performance planning planning execution integration management sustainability
Closing and Workforce Supply chain Procurement and Building

contracts planning reporting change mgmt. intelligence
Supporting end-to-end processes in an intelligent and modular fashion

SAP point of view: Intelligent construction enterprises will lead the way
Strategic view Value chain view
CEO CDO CTO CIO Head of sales Head of HR Head of supply chain Head of projects Head of facilities
• Growth and market share • New-project revenue • Talent performance • Fill rate • Schedule • Maintenance costs
• Shareholders and market • Win rate • Retention • Delivery time • Cost • Incidents
capitalization
• Sustainability and strategic longevity
Opportunity Talent Supply chain Project Operations and

Enterprise transformation
management management management execution maintenance
Expertise and
knowledge
The Intelligent Enterprise
Connected construction
Intercompany collaboration
End-to-end Next-generation Platform for Environmental

Commissioning
value chain user experience growth awareness
and operations
Best Practices Next Practices Vertical Edge

Example: On-time supply chain
With SAP S/4HANA as their digital foundation, metal companies can provide their customers with individualized products faster and at a lower cost.
BEST PRACTICE: Material expediting

 Cumbersome and
manual expediting
 Delivery delays
common
Delivery of
prefabricated
Little visibility is
available into
Expeditor
manages urgent
Project is slightly
delayed but
Costs and project
closer manages to
 Manual work needed
to ensure quality
10%–20%
structure on critical manufactured delivery on site manages to avoid fall within contingency Increase in on-time
standards delivery performance
path is required and delivery date albeit with slight hefty penalties
delay
42%
Reduction in response
NEXT PRACTICE: Material expediting+ times, enabling faster
service delivery
 Automated and real-
time expediting
 Better visibility into
Real-time tracking QR code is on-site Progress data Materials are delivered Building is completed
delivery risks
 Better control of
5%–8%
Reduction in days
of production to see materials is available in and fitted on time, with timeline and quality in inventory
progress is progress, reducing the cloud across no delays to on time – move-in on
possible using operational risk locations; interdependent tasks time, reputation is
mobile technology shipping is just preserved
in time
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *Source: SAP Performance Benchmarking 6
Optimize and transform: SAP’s Intelligent Enterprise architecture
Optimize with Transform with

Best Practice Next Practice
A stable and reliable business An agile and flexible platform
foundation to run end-to-end for innovating quickly in the
processes as effectively areas where differentiation
and efficiently as possible drives competitive advantage
BUSINESS NETWORK
ACROSS ALL FUNCTIONS: Design to Operate | Lead to Cash
BUSINESS PROCESS INTELLIGENCE
EXPERIENCE MANAGEMENT
INTELLIGENT SUITE INDUSTRY CLOUD
Transform
SUSTAINABILITY MANAGEMENT
BUSINESS TECHNOLOGY PLATFORM
SAP DATA CENTER OR HYPERSCALER

Intelligent suite SAP apps Partner apps
from SAP

However, our customers are faced with multifaceted challenges that are prohibiting
their ability to realize the full potential value the Intelligent Enterprise unlocks
Too many hands to shake

and parties to hold accountable
Multiple and varying SLAs

Transformation path for application stack
not clear components
Skilled experts hard Customer acting as the

to secure orchestrator, putting solution
stack layers together
Often challenging to create the Diminishing support

value case for change with over time to help realize
outcome-driven process anticipated value
harmonization
Transformations requiring Long time-to-

high up-front costs value period

is designed to help our customers address such transformation challenges
and realize the value the Intelligent Enterprise can deliver
Comprehensive, intelligent,
customer-specific offering
SAP S/4HANA Cloud
(public or private) Be more agile and responsive – not only at the edges of your
business but also deep into the core – with the SAP S/4HANA
Cloud suite
SAP Business Flexibility to Benefit from best-of-breed cloud infrastructure providing a native
Technology choose cloud landscape powered by SAP and our hyperscaler partners
Platform infrastructure
Premier Value provider
Analyze processes, get tailored recommendations, and
Guided Journey benchmark them against industry standards using the discovery
edition of SAP Process Insights
Simplified Engagement
SAP Business Tools and services from SAP to support your whole journey that
Network Business can be augmented by SAP’s strong ecosystem
Starter Pack process
intelligence
Connect and collaborate across your company and beyond with
unified access to the world’s largest business network –
including SAP’s supplier, logistics, and asset intelligence
Custom code analyzer, networks
SAP Readiness Check, SAP Cloud Application Complement, extend, and integrate with any other solution (SAP,
Lifecycle Management, SAP Learning Hub
partner, or third party) – and use the data model and business
services on SAP Business Technology Platform to connect it all

for construction companies – unlocking two sources of differentiating value
SAP S/4HANA Cloud

(public or private)
Enabling Value Creation with Differentiating

A Business Capabilities
SAP Business Flexibility to
Technology choose Industry best and next practices that create new
Platform infrastructure
Premier Value provider revenue streams and maximize existing ones, improve
assets efficiency, enhance productivity and allow for
Guided Journey
running sustainably – from SAP and partners
Simplified Engagement
+
SAP
Business Business
Network process
Starter Pack intelligence
Custom code analyzer,

SAP Readiness Check, SAP Cloud Application Mitigate Risk, Reduce IT Cost and Accelerate Time
Lifecycle Management, SAP Learning Hub B to Value with Cloud Delivery Capabilities
Capabilities that maximize transformation readiness,
+
Cloud solutions for simplifies consumption through “as a service
construction companies experience”, ensures operational resilience and reduces
from SAP and partners overall TCO – from SAP and partners

A B
delivers differentiation with industry best practices

Manage and prioritize bids Increase visibility into
Enable ground staff to
Expertise and incl. staffing of required Attract, train, and retain resource demand, planning,
work more effectively with
knowledge skilled bid team for improved skilled workforce and allocation incl.
mobile solutions
win rate performance management
Manage service contracts

Track project progress, cost,
Support responsive material efficiently and increase
Required business capabilities

and margin with greater
Plan early capacities, costs requirement planning, wrench time through
Collect accurate time accuracy, in real time, on
Connected construction and budgets during bid prefabrication engineering, additional offline client-
information from the field any device, and optimize
phase and production planning for side features,
the change management
prefabrication processes encompassing mobile and
process with visualization
IoT capabilities
Link relevant Standardize labor contracts

Intercompany collaboration opportunities/objects in ERP and attain complete cost
Schedule and execute
and share critical information visibility across internal and
maintenance works
with external consultants external/contingent
and partners workforce Use digital twin throughout
entire supply chain
Extend production
Commissioning Link projects near Manage field service scheduling and operations;
and operations Hand over as-built asset
completion to opportunities seamlessly across the demand-driven
data seamlessly
in operations division enterprise replenishment; constraint-
based production planning
Improve operational Manage spare parts

Improve worker productivity Manage material expediting
Make an early risk efficiency and source planning incl. predictive
Digital supply chain with an integrated better with integrated view of
assessment of supplier determination for indirect maintenance and service
procurement and project cost, schedule, and material
reliability materials, and plan demand with time-series monitoring
view and service deliveries
and supply flexibly and analysis effectively
SAP S/4HANA
SAP Business Network
A B
Industry cloud solutions deliver differentiation with industry next practices and
innovations at the vertical edge
Logistics Customer
Expertise and knowledge Manage employee safety throughout project and service lifecycle and effectively track project and service time
Required business capabilities

Manage machines, equipment, tools, operating personnel, consumables, and any resources in
Connected construction the fields of construction, maintenance, industrial service, and rental equipment business
Collaborate across multiple Digitalize the complex and unique construction progress claims
Work collaboratively with
companies (subcontractors, process by automating and thereby speeding up project payment
external skills and contingent
Intercompany collaboration suppliers, consultants, authorities,
labor on a single platform
processes across organizational boundaries among clients, general
client) during bid phase contractors, and subcontractors
Improve cross-company coordination with intercompany issue and task management

Commissioning and operations linked to the digital twin, and use the digital twin throughout entire supply chain
across multiple company and through project execution until handover to client
Improve project efficiency with

mobility solutions for site staff
EC&O Project Execution

Workbench by LTI
EC&O Activity Progress
Update by LTI
EC&O Issue Management by LTI
Project Paychain by LTI
ETM.next by Bearing Point

Industry cloud Time Tracking by Replicon
solutions built by
Enterprise Health, Safety & Environment Management by Sodales
SAP and partners
SAP Project Intelligence Network
The intelligent suite – SAP S/4HANA Cloud

SAP Business Technology Platform
A B
enables differentiated business outcomes that maximize shareholder

value through SAP’s industry best and next practices
The top line The bottom line The green line Strategic and transformational
Increased growth opportunities, Reduced costs, improved schedule Optimized environment impact, Improved customer satisfaction, improved
increased efficiencies for faster delivery and project profitability, reduced waste, increased agility, reduced business and technology
project delivery, new revenue increased sourcing savings compliance risk, improved decision-making
streams
 5%–15% Increase in revenue share of  0.5%–3% Optimization of capital  3%–10% Reduction in energy cost  15%–40% Improvement in customer
new customers expenditure satisfaction
 5%–7% Reduction in EH&S
 2%–10% Increase in cross-sell/up-sell  0.5%–3% Reduction in asset penalties or fines  5%–30% Increase in percentage of
revenue maintenance cost projects on time, within budget and scop
 5%–30% Reduction in lost time
 1%–5% Reduction in un-planned  5%–15% Improvement in sourcing accident frequency rate  10%–20% Increase in employee
downtime or outages savings on direct spend engagement
 10%–20% Reduction in carbon
 Improvement in project win rate  5%–15% Optimization of HR cost footprint  Improvement in equipment utilization
 5%–50% Reduction in customer

billing, credit & collections cost
 60%–95% Reduction in time to
create a configured quote
 Reduction in project governance
and risk management cost
Note: Benefits are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our
recommendation is that you work with SAP to determine the value case for your enterprise.
A B
offers cloud delivery capabilities that enable the journey to the Intelligent
Enterprise – mitigating risk, reducing cost, and accelerating time to value
Transformation “As-a-service” Operational

Operational Predictable,
readiness experience resilience
resilience lower TCO
Achieve process Access simpler Leverage SAP Gain from future-fit,

excellence* support model reference architecture flexible pricing
Leverage transformation Leverage Improve infrastructure Achieve

tools and services* periodic updates resilience hyperscaler economics
Integrate and Simplify contract Achieve Automate

extend digital core and commercials application-level technical operations
* Not exclusive to cloud security
Note: See Appendix for details

showcases how our customers in construction are “realizing” the value
Impact areas The top line The bottom line The green line Strategic
Key outcomes Increased growth opportunities, increased Reduced costs, improved schedule Optimized environment impact, reduced Improved customer satisfaction, improved
efficiencies for faster project delivery, new delivery and project profitability, waste, increased compliance agility, reduced business and technology risk,
realized revenue streams increased sourcing savings improved decision-making
What are others

accomplishing?
Mota-Engil Graham Construction Ayala Land Shapoorji Pallonji Group

“We are under pressure from every “Innovation, safety and continuous “With SAP S/4HANA, I can put up new “SAP was always by our side in
part of the business to introduce improvement are the cornerstones of companies in a flash. I can configure the entire journey, providing us the
innovative technologies that will everything we do. It’s part of the value the system in less than five days to required boost whenever required.
help improve operational efficiency. that extends beyond the materials, get them up and running using shared- The SAP team is determined to
With SAP S/4HANA, we can now talent, and timeline.” services without hiring anyone new. ensure that Shapoorji Pallonji
deploy these new solutions.” Matt Gramblicka, Vice President, IT and It makes the group more robust and achieves its desired business
Vitor Martins, Corporate IT Manager, Enterprise Applications, Graham Construction flexible as we grow.” outcomes by effectively using
Mota-Engil SGPS SA Annie Alipao, Chief Information Officer and Group SAP solutions.”
Data Protection Officer, Ayala Land Inc. Manoj Bhoota, Vice President IT, Shapoorji
Pallonji Group

Harnessing the latest innovations with SAP S/4HANA
Challenges and opportunities

 Complex IT landscape with multiple ERP systems across different business areas and geographies
 No single version of the truth
 Need for a simple user experience in the field as well as the back office
“We are under pressure from every part of

Why SAP the business to introduce innovative
 Creation of a single, groupwide business operations management platform based on SAP S/4HANA technologies that will help improve
 Consolidation of several different ERP systems based on both SAP and third-party software operational efficiency. With SAP S/4HANA,
 Two-phase migration approach, involving first moving a customized structure from the existing SAP ERP we can now deploy these new solutions.”
application, followed by a standardization of configuration settings Vitor Martins, Corporate IT Manager, Mota-Engil SGPS SA
Value-driven results
 Improved visibility across operational processes, with all enterprise-wide information in one place
 Significant performance improvements and potential reduction in IT costs, thanks to a streamlined IT
landscape and accelerated systems administrator processes
1 250
Centralized platform to Companies sharing
 Ability to take advantage of emerging technologies enabled by Intelligent ERP support groupwide a single, unified
business operations ERP solution
Mota-Engil SGPS SA Industry Products and services Employees Revenue Featured solutions
Porto, Portugal Engineering, construction, Civil construction, public works, ~41,000 €2.368 billion SAP S/4HANA
www.mota-engil.com and operations port operations, waste, water,
and logistics

Vision-to-value engagement model
1 2 3 4
Initialize the Align on vision and Build the value Plan the path Deliver business
transformation desired outcomes case forward value
Provide our POV on the case Align on business and IT Build the case for change and Create transformation Deliver quick adoption and time to
for change in the context of strategy and get buy-in across identify key initiatives with roadmap and define value, and drive continuous
industry and customer needs the organization expected outcomes deployment plan optimization and innovation
• Provide high-level • Articulate business strategy • Conduct discovery workshops • Agree on target end-state • Transition to delivery and
value cases for and required business to uncover business process enterprise architecture, and customer success team
change based on outcomes to underline digital improvement opportunities transformation roadmap • Address enablement, on-
industry ambition • Explore the art of the possible • Define target operating model, boarding, and change
requirements and • Share Intelligent Enterprise and technical migration and management requirements
with technology innovations to
customer needs deployment strategy
cloud vision, and how it enables achieve desired business • Utilize best practices for
• Socialize the the customer transformation outcomes • Validate outcomes, priorities, deployment and project
Vision-to-Value • Set engagement direction and • Baseline current technology and case for change with governance
approach executive sponsors
expected results landscape - capability and TCO • Support customer success,
• Align on scope, resources and assessment on-going value realization
timeline • Develop the case for change and optimization

Thank you
Appendix 1: Industry Scenarios
A New Normal with New Realities
You cannot afford to wait. These are the TOP 5 REALITIES:
CHAMPION COST SAVINGS:

INNOVATE BEFORE Cost pressures have intensified with the pandemic making it
COMPETITORS: critical to drive cost-savings. A modern ERP delivers intelligent
As past recoveries show, the winners automation across your entire business, driving step change GROW WITH MODERN CLOUD ERP:
re-innovate their business processes and improvements in productivity by unlocking new levels of The crisis has accelerated the shift to the cloud.
models faster, deriving differentiated efficiency and intelligent personalized insight to all employees. With our new consumption models, you can now
business outcomes in the context of their easily move to our modern cloud and safeguard
industry. Intelligent enterprises apply your current ERP investment, enabling continuous
advanced technologies and best practices innovation and operational scalability with a low
3 TCO. This enables a shift from CapEx to OpEx
within agile business processes to make
organizations more resilient, profitable, and makes it easier to drive your business
and sustainable. remotely.
5
1
2
4
RUN IN UNCERTAINTY:
Running your business in today’s economic uncertainty requires a new PIVOT AT MARKET SPEED: With unpredictable changes
ERP that provides instant insight across your end-to-end business
in demand and supply chains, organizations need to dynamically
operations so you can always analyze, collaborate, prepare and plan
reallocate resources against new mission-critical priorities or to
for what’s next - and act immediately, from anywhere.
quickly adapt to disruptions, enabled by digital business operations
driven in real-time.

Run in Uncertainty
Digitalization of Expertise and Knowledge
Improving Efficiency and Productivity

Traditional scenario
• Traditional HR practices focusing on formal training programs

are too slow to work in a world of constant change; the Group training Training feedback
practices are calendar driven, static, and impersonal. Employee
• With educational plans that are course and certification driven, group 1
the shared information cannot flow quickly. The focus is on
only a few new topics and limits educational success.
• Classroom-based training creates limitations in the context
and usage of new communication methods. Top-down,
directed approaches restrict access and consumption of new Employee
learning material. group 2
A new world with SAP

Manager or learning Manager learning
• Reimaging people development by creating online learning administrator content
communities. Make development resources and relationships
widely accessible, and give every employee the power to
realize their full potential.
© 2020 SAP SE or an SAP affiliate company. All rights reserved.
• Employees are empowered to choose the medium and timing

for their learning.
• Stronger active collaboration and social aspects support
tailored course consumption that helps realize the full potential
of each employee.
• Employees can build their own learning maps from a complete
course portfolio.
Employee Analyze career plans Choose medium Personalize learning
and learning needs and timing
Top value drivers* 20%–30% 2%–3% 10%–15% 56%

Increase in worker Reduction in project Reduction in time Efficiency increase in generating financial postings;
quality delivery cost to fill 70,000 annual working hours available for other tasks
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities.
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise. 21 / 41
Run in Uncertainty
Improving Quality and Safety Processes

Disconnected systems and a high degree of

manual processes make it harder to identify
risks to health and safety in real time and to
deliver high-quality outputs consistently.
Manual Disconnected On-site coaching Retiring skilled craftspeople Low efficiency and high risk
time sheets progress report and job training and inexperienced workers

Improved, faster, and more-efficient
response to risks regarding quality and
safety standards is possible with the use of
robots, the IoT, and machine language in
combination with a strong core ERP.

Eliminating work through Real-time reporting Interactive technology Better, faster decision-making Improved efficiency and safety
automation and analysis and robotics based on real-time sensor and
experience data
Top value drivers* 10% 40% >50%

Increase in project team productivity and Lower worker acquisition time Potential savings in building time and costs
end-to-end process efficiency
Grow with Modern Cloud ERP
Simplifying the User Experience

• Multiple screens and transactions are needed to create and

maintain project data. Project bidding Project rates Various project Separated process from Project, sales, cost, revenue,
• Staffing and subcontracting are separated from the project
and estimating setup screens project definition and availability reporting
and reporting and built per application area, not across the
project as a whole.
Sales and Resource Different setup for cost Separated process from Cross-project reporting
billing setup management and revenue rates project delivery
• Obtain an intuitive user experience on any device, with a
consolidated source of truth for all project-related information
presented at the lowest level of granularity.
• Allow a single point of entry for project-related execution so
project managers can react more quickly and more accurately
to all project-related tasks.

• Improve iteratively with insights gained from experience data.
Single point of entry Master project

• Project workspace
• Project financial planning
• Issue and change management
• Cross-project analytics
Top value drivers* 95% 46%

Faster quote-to-order process when quotes Fewer customer complaints when real-time
are configured by configure, price, quote order, billing, and invoicing are available
Innovate before Competitors
Connected Construction Sites
Digitalizing the Network of Stakeholders

• Information is lost as a project progresses across different

phases with different stakeholders leading each phase.
• Manual review, commissioning, and handover processes are
inefficient and prone to error.
Disconnected departments and limited When plans are not consistently created and When companies rely on a few external
access to the business network prohibit shared, information cannot flow quickly. partners and communicate manually with
responsive planning. R&D, sourcing, sales, manufacturing, and suppliers, visibility is limited – making
planning are not aligned – wasting time and collaboration difficult, delays inevitable, and
money. the risk of error high.

• You can place your company at the center.
• Information is leveraged as the project progresses
across different phases.
• Our cloud-based solution focuses on the digital construction
experience for companies to work together in the design, plan,

and build phases of construction and capital projects. Share one plan with Accelerate time Achieve insight into Align sales and project Transform linear Enable simultaneous
all critical resources to market with future demand for execution, and improve supply chains into collaboration with all
and partners to collaboration premanufacturing customer satisfaction digital supply relevant stakeholders.
achieve visibility, between R&D and procurement, with better experience networks.
agility, and and sourcing. optimizing inventory. management.
responsiveness.
Top value drivers*

Optimized US$2 billion 10%–fold Enhanced
Operating performance Projected revenue Increase in efficiency Decision-making
conditions growth in 5 years of real-time bookings
Innovate before Competitors
Digitalization of Intercompany Collaboration
Bringing Operational Transparency to Project Execution

Traditional scenario A new world with SAP
• Each supplier, vendor, and subcontractor works on their disconnected, individual systems with • A cloud-based network enables collaboration with all project stakeholders including owner, contractor, subcontractor, engineers
little or no real-time visibility into each other’s work despite dependencies across multiple parties. and architects, facility management, and authorities.
• Rework, delays, and mistakes are the norm due to lack of communication and lack of real-time • Different disciplines are brought together, such as structure, architectural, electrical, and plumbing, as well as engineering,
transparency during project execution. logistics, project control, and service, into open building information modeling.
• Projects operate at a new level of efficiency and engagement with experience data.
Owner Supplier
Owner Supplier
Facility Asset
management manager
Facility Asset
management manager
Digital
Authority Subcontractor
Authority Subcontractor
twin
Contractor
Planner Contractor Planner
Service Engineer
Service Engineer provider
provider
Top value drivers* Reduced Continuous Improved Eliminated 15% 50%

Spend Compliance Productivity Annual need of 200,000 Cost savings achieved thanks to cost- Faster information access,
paper pages efficient and resilient cloud solutions speeding up decision-making
Champion Cost Savings
Digitalization of Commissioning and Handover
Simplifying the Process

• Multiple stakeholders are needed to manage the design,

execution, and operation of the construction object.
• All project participants produce multiple versions of drawings –
alignment of content is difficult.
• Multiple data silos lead to inconsistent data.
• Version control of drawings and calculations is time-consuming,
complex, and often incomplete.
Predesign Design Design Construction Construction Program Operation and
oversight services oversight performance activation maintenance
A new world with SAP Contractor Asset Owner and operator
The digital twin concept allows everybody to have access at any

time to a consistent data source of the construction object.
• Obtain real-time availability, enabling harmonization of
multiple data sources. Design
• Maintain preconfigured version control. Deploy

• Work with the same source to manage multiple trades more
effectively. Hand over
Plan
• Use a network approach that helps new participants to be
immediately up to date.
• Enable data handover to occur without any further efforts. Acquire Operate
Build Procure
Top value drivers* 20%‒30% 10%‒20% 3.5 days $100,000

Reduction in finance FTE Reduction in audit cost Fewer in process Saved annually through better quality
productivity approval cycle control enabled by an SAP Fiori ® app
Pivot at Market Speed
Digital Supply Chain
Connected Supply Chain

• Disconnected departments and limited access Owner

to the business network prohibit responsive planning. R&D
!
• When plans are not consistently created and shared, Sales
information cannot flow quickly. R&D, sourcing, sales, !
manufacturing, and planning are not aligned – wasting Planner Supplier II
Raw material
time and money. DRAWINGS Contractor
• When companies rely on a few external partners and Delay Delay Supplier Delay supplier
communicate manually with suppliers, visibility is limited – Engineer !
making collaboration difficult, delays inevitable, and the Supplier I
risk of errors high.
$ $ $

Owner
Our cloud-based solution focuses on the digital construction Material
experience for companies to work together in the design, plan, and Planner supplier
build phases of construction and capital projects. Sales R&D Contractor Owner
• Share one plan with all critical resources and partners to achieve
Live business
visibility, agility, and responsiveness.

• Accelerate time to market with collaboration between R&D and Planner Digital Supplier
II Component
sourcing. twin supplier
• Achieve insight into future demand for premanufacturing and Collaborative
procurement, optimizing inventory. platform
• Align sales and project execution, and improve customer satisfaction. Engineer Supplier SAP Integrated Business SAP Project
I Planning for Supply Chain
• Transform linear supply chains into digital supply networks. Intelligence Network
• Enable simultaneous collaboration with all relevant stakeholders. solution Scaffolding
• Place your company at the center.
SAP S/4HANA
Top value drivers* 10%‒15% 15%‒20% 45% US$200,000

Reduction in design and Increase in project reporting and Increase in procurement Saved annually through e-archiving
documentation cost analysis FTE productivity efficiency and automated invoice reporting
Pivot at Market Speed
Digital Supply Chain
On-Time Supply Chain

• Cumbersome and manual expediting process

• Frequent delays of material delivery on-site
• Frequent deliveries of material not meeting quality standards
Construction site work is Construction manager Materials are delivered late, Project cannot be finalized Delay of material delivery
held up by delivery of has no visibility into when impacting completion dates on time, customers are impacts costs and final
prefabricated bathroom units materials are being for interdependent tasks in dissatisfied, and contract delivery date.
for fitting on critical path. manufactured and their the project. penalties apply.
potential delivery date.

• Automated and real-time expediting process
• Better, real-time visibility into delivery risks
• Better control of material delivery timelines and quality
standards
Production of required Subcontractors on-site Operational data on progress Materials are delivered Building is completed
materials can be tracked in can scan a QR code of materials is available in and fitted on time, with no on time. Owners are
real-time through a mobile on plan to see which the cloud across locations. delays to interdependent able to move in on time.
app that is continuously materials are in progress. Shipping is just in time. construction tasks. The reputation of the firm
updated. Operational risk can be is preserved.
identified.
Top value drivers* 10%‒20% 5%–8% 2.5% 2.5 days 56% 42%
Increase in on-time Reduction in days Decrease in macro- Reduction in staff’s personal Overall efficiency improvement in Reduction in response
delivery performance in inventory logistics costs reimbursement time procurement cost management times, enabling faster
service delivery
28 / 41
© 2021AsSAP
eachSE
enterprise
or an SAPis ataffiliate
a different level of maturity,
company. All rightsour recommendation
reserved. ǀ PUBLICis that you work with SAP to determine the value proposition for your enterprise.
28
Grow w/ Modern Cloud ERP
Reimagine Finance
The role of finance is evolving toward active engagement with business partners, simplifying and automating processes, enabling new questions to be asked that were never
possible, and delivering new insights during the decision-making process.
Reimagine Record-to-Report Process to Enable Finance to Focus More on Strategic Tasks
Delayed close activities that Risk of regulatory noncompliance due to lack Manual, time-consuming, Financial data that needs to be Executive conversation limited to
do not begin until period end of transparency and manual monitoring of and effort-intensive replicated from the financial system static presentations, and ad hoc
processes processes into the consolidation system, requiring questions and analysis that need to
Multiple ledgers that require data aggregation and transformation be taken offline for a later discussion
time-consuming and error-prone Risk of penalties and fines with insufficient,
reconciliations manual, and error-prone tax audit processes

Financial accounting Management reporting Compliance and tax Entity close Consolidation Reporting and analytics
Event-triggered execution enabled End-to-end visibility and steering Faster, efficient, and compliant Real-time consolidation enabled by Transformed boardroom experience
through real-time derivation of capabilities for local periodic legal close process instant data access from integrating with real-time business intelligence, ad
profitability characteristics reporting transaction and master data hoc reporting at a granular level, and
what-if analysis to make decisions
No reconciliation needed because Continuous, self-auditing,
of one universal journal entry that tax-monitoring processes
provides a single source of truth
29 / 41
Champion Cost Savings
Reimagine Indirect Procurement

Companies need to collaborate with suppliers in real time and manage the entire purchasing process while controlling spending, finding new sources of savings, and building a
healthy supply chain.
Simplify Procure-to-Pay Process
Limited and outdated data that hinders the Time-intensive supplier discovery and qualification Manually set catalogs and unguided tools, resulting in Paper- and e-mail-based invoices; manual,
ability to extract meaningful insights process inefficiencies, errors, and missed savings ad hoc processes; and check-based payments
that result in reconciliation issues, administrative
Disparate and disconnected data sources, Inefficient bid management Manual and cumbersome buyer-supplier delays, inefficiencies, and missed discounts
resulting in information delay collaboration, leading to an extended transaction cycle
Mismanaged and misplaced paper-based contracts

Increased visibility into internal Automated and intelligent supplier, bid, and contract management Stronger buyer-supplier collaboration and efficient, No-to-low-touch accounts payable processes and value-based
and external data compliant processes cash management
Access to a global supplier pool, with ready visibility into preferred
360%–degree view of spend and supplier and qualified sources of supply Access to an online marketplace with consumer-grade Network-based rules engine for price, tax, tolerance, and process
and market data through business network experience and guided buying through right policies, compliance
integration Supplier data enrichment and dynamic, multipronged evaluation preferred suppliers, and negotiated prices
criteria Automated three-way match for efficient, error-free processing
Dynamic analysis of purchasing spend Relevant purchasing documents created automatically and
with multidimensional reporting Comprehensive request for management with reverse- and forward- integrated into the relevant systems Invoice automation, monitoring, and exception handling using
capabilities and variance tracking auction capabilities for optimized cost savings and faster sourcing machine learning for higher efficiency and accuracy
cycles Automated, faster, and consistent supplier connections
Holistic working capital strategy for terms extension, static and
Contract lifecycle management including authoring, negotiation, dynamic discounts, supply chain finance, and payment channels
execution, and digital signature
30 / 41
Appendix 2: SAP S/4HANA Value
EC&O: SAP S/4HANA Capabilities Delivering Differentiated Business Value
To Drive
Shareholder Value
Revenue Growth Profitability Asset Efficiency Strategic
Focus on Key Increased upsell and cross-sell Reduced Costs, Increased Sourcing Savings High cash conversion cycle efficiency Improved customer satisfaction, Reduced
Outcomes opportunities, Increased portfolio of TCO, Improved Agility, Reduced Business and
Products/Services, New Revenue Streams Technology Risk, Improved Decision Making
SAP S/4HANA can • 1%–20% Reduction of customer churn • 1%–5% Reduction of total logistics cost • 1%–5% Reduction of un-planned downtime or  5%–30% Improvement of on-time delivery
help achieve • 2%–10% Increase in revenue from cross- • 5%–15% Improvement of sourcing savings on direct outages performance
sell/up-sell spend • 2%–15% Reduction of days in inventory • 10%–20% Increase in employee engagement
• 1%–8% Reduction of time to market for new • 2%–20% Reduction of finance cost • 15%–40% Improve customer satisfaction
products  10%–25% Improvement in supplier/external partner • 5%–30% Increase % of projects on time, budget
compliance and scope
 1%–5% Reduction of project delivery cost
 10%–20% Improvement in procurement FTE
productivity
 60%–95% Reduce time to create a configured quote
Digitalization of Opportunity Management

expertise and Learning Learning
knowledge
Strategic Priorities and Key Capabilities
Connected Advanced Transportation

Advanced Transportation
construction sites
Purchase Contract Management

Digitalization of
intercompany Invoice Processing
collaboration Invoice Collaboration Invoice Collaboration
Source Assignment
Classification and Segmentation
Supplier Evaluation
Project Management
Digitalization of
commissioning Maintenance Execution
and handover
Digital supply Self-Service Requisitioning
chain Mobile Asset Management
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
32
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
Primary Value Drivers improved In EC&O Industry by SAP solutions
Impact Areas Revenue Growth Profitability Asset Efficiency Strategic-Other
Increased upsell and cross-sell Reduced Costs, Increased High cash conversion cycle efficiency Improved customer satisfaction, Reduced TCO,
Key Outcomes Realized opportunities, Increased portfolio of Sourcing Savings Improved Agility, Reduced Business and
Products/Services, New Revenue Streams Technology Risk, Improved Decision Making
 5%–15% Increase in revenue  0.5%–3% Optimization of capital  3%–10% Reduction in energy  15%–40% Improvement in
share of new customers expenditure cost customer satisfaction
Primary
 2%–10% Increase in cross-  0.5%–3% Reduction in asset  5%–7% Reduction in EH&S  5%–30% Increase in percentage
Value Drivers
sell/up-sell revenue maintenance cost penalties or fines of projects on time, within budget
and scop
 1%–5% Reduction in un-planned  5%–15% Improvement in sourcing  5%–30% Reduction in lost time
downtime or outages savings on direct spend accident frequency rate  10%–20% Increase in employee
engagement
 Improvement in project win rate  5%–15% Optimization of HR cost  10%–20% Reduction in carbon
footprint  Improvement in equipment
 5%–50% Reduction in customer utilization
billing, credit & collections cost
 60%–95% Reduction in time to

create a configured quote
 Reduction in project governance

and risk management cost
 Reduce revenue loss due to stock-  Optimize research and development  Reduce days sales outstanding  Reduce days to close annual books
Other Key outs expense  Improve days payable outstanding  Increase financial forecast accuracy
Value Drivers  Increase revenue from new  Increase project margin
products/services  Reduce Audit Cost
 Increase service revenue  Reduce project delays
 Reduce Manufacturing cycle time  Reduce Sales Cost
 Reduce inventory carrying cost
 Reduce service and support cost
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ** based on (a) Contribution to the Impact Areas (b) Solution Business Capabilities provided by S4HANA (with a priority on Incremental 33
Capabilities as compared to ECC (c) SAP’s view on the Primary Value Drivers that drives Strategic Priorities of this industry
Appendix 3: RISE Value Framework
Offers cloud delivery capabilities that enable the journey to the Intelligent
Enterprise - mitigating risk, reducing cost and accelerating time to value
Transformation “As-a-Service” Operational

Readiness Experience Resilience
Resilience Lower TCO
Achieve Process Access Simpler Leverage SAP Gain from Future-Fit,

Excellence* Support Model Reference Architecture Flexible Pricing
Leverage Transformation Leverage Improve Infrastructure Achieve

Tools and Services* Periodic Updates Resilience Hyperscaler Economics
Integrate and Extend Digital Simplify Contract Achieve Application Automate

Core to Accelerate Innovation & Commercials Level Security Technical Operations
* Not exclusive to cloud

“As-a-Service” Operational Predictable,
Transformation Readiness Resilience
Experience Lower TCO
Improve transformation readiness and accelerate innovation
10 – 15% 2 Improved process efficiency

Achieve Process With BPI, identify process bottlenecks,
Excellence design to-be processes, simulate and
achieve significant business improvements 50 – 80% 3 Less cost to manage customizations
Reduce time-to-value for B2B network benefits
10 – 15% 4 Sourcing savings (Ariba Network)

Leverage transformation Reduce complexity of customizations and
tools and services maximize use of standard functionality using Up-to 3% 4 Lower asset maintenance cost (AIN)
SAP tools and services
Up-to 5% 4 Lower logistics cost (LBN)
Up-to 15% 4 Lower days In inventory (LBN)

Integrate and Extend Optimize and extend processes that
Digital Core to accelerate cloud innovations with Business Faster time to market for innovations
Accelerate Innovation1 Technology Platform and Business Networks
within and beyond enterprise boundaries Improved employee engagement with task automation
1
Other LOB bundlers to be introduced across 2021, starting with HXM
2
IDC survey showed 10%–15% drop in operating costs
3
SAP customer case studies and experience
4
Improvement range based on SAP’s benchmarking with a model company of $2B in Revenue and 15% margin. Only applies to assets/spend/logistics which flow through the respective SAP systems
Transformation “As-a-Service” Operational Predictable,
“As-a-Service” Resilience
Readiness Experience Lower TCO
Experience
Simplify software consumption and realize a better SaaS experience
Access Simpler One SLA for the full application stack,

Support Model simpler governance and faster issue
20 – 30% 1 Reduced governance costs
resolution
Up-to 98% 2
Reduced downtime
Leverage Periodic SAP managed support packages and

Updates patches. One technical upgrade p.a. for Up-to 3% 3 Operational cost
private cloud and quarterly for public cloud
Up-to 5% 3 Administrative cost
Up-to 1.9x 3 # of processes with visibility

Simplify Contracts One commercial offer and contract for RISE
& Commercials with SAP. SAP and services partner work in
Up-to 7% 3 Complete + On-time shipments
tandem leveraging each partner’s unique
strengths
1
SAP customer case studies and experience
2
Study by IDC on SAP S/4HANA Cloud, private edition
3
The Value of Upgrading ERP: Maintaining Modern Technology (by Aberdeen Group)
Transformation “As-a-Service” Operational
Readiness Experience Resilience
Resilience Lower TCO
Improve operational resilience running on hyperscale infrastructure
Leverage SAP Proprietary SAP reference architecture to Reduced infrastructure

30 - 60% 1
Reference ensure optimal performance and platform overprovisioning
Architecture independence across multi-cloud ecosystem
Up-to 98% 2 Reduced Downtime

Improve Choice of hyperscaler to ensure highly
Infrastructure resilient, global, secure and scalable Cloud
Resilience infrastructure 2.8%
Reduced cybersecurity value-at-risk
of Revenue 3
Reduced SAP application delivery time

Achieve Reduce cybersecurity risk and high overhead
Application-Level costs to address cybersecurity, privacy and
Reduced risk of penalties (e.g. due to GDPR violations)
Security ensure business continuity
1
Bain and Co. - Optimize when migrating to the Cloud
2
IDC TCO study on SAP S/4HANA Cloud
3
Accenture – The cost of cybercrime
Transformation “As-a-Service” Operational Predictable,
Predictable,
Readiness Experience Resilience Lower TCO
Lower TCO
Achieve predictable, lower TCO with pricing and infrastructure operations optimization
Gain from Future- Flexible subscription pricing, better aligned

Reduced TCO
Fit, with future requirements based on simpler
Flexible Pricing metrics (e.g. Full Usage Equivalent)  Reduce IT governance costs
 Reduce infrastructure costs
20% 1
 Reduce IT operational costs
Achieve Reduce infrastructure costs, while  Reduce shelf-ware
Hyperscale leapfrogging complexity and learning curve  Improve IT user productivity
Economics of using a public IaaS/PaaS platform
Reduced 3rd party software and support fees
Automate Better service availability and cost efficient

Technical Operations operations leveraging SAP best practice Faster time-to-market for new capabilities and applications
cloud operations
1
Study by IDC on SAP S/4HANA Cloud, private edition
Appendix 4: RISE Framework - Partners
Business transformation as a service requires our ecosystem
Preconfigured applications and solutions by
partners as repeatable accelerators
Industry cloud
solution from SAP
SAP S/4HANA
Partner Cloud Recurring
innovations and (public or private) application
integrations management
built on SAP services by
BTP partners
Industry solution
SAP Business Partner app 1 from SAP
Technology Flexibility
Platform to choose
infrastructure
+
(SAP BTP) Premier value provider
RISE with
SAP for
Guided industry
SAP journey
Business Business Partner-built
Network Simplified process industry
Starter engagement intelligence Partner app 2 integrations,
Pack (BPI) accelerators,
content, and
SAP Business Business data
Network advisory services
activation by partners
services by that leverage
partners BPI from SAP
Custom code analyzer, Partner-defined industry reference
SAP Readiness Check, SAP Cloud ALM, architecture – solutioning beyond
SAP Learning Hub SAP
Rapid migration and implementation

services by partners
= Ecosystem value add
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀǀ PUBLIC 41

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RISE with SAP for Construction

Complexity Siloed information BIM-based

Workforce experience Manual process Automation Commissioning

Digital supply chain

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Strategic priority Call to action

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Deal Employee skills Submittal Estimate Commissioning

Manage Requirement Equipment Collaborative Schedule Portfolio Energy mgmt. and

Closing and Workforce Supply chain Procurement and Building

Supporting end-to-end processes in an intelligent and modular fashion

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Strategic view Value chain view

Opportunity Talent Supply chain Project Operations and

End-to-end Next-generation Platform for Environmental

Digital supply chain

Best Practices Next Practices Vertical Edge

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BEST PRACTICE: Material expediting

Optimize with Transform with

ACROSS ALL FUNCTIONS: Design to Operate | Lead to Cash

BUSINESS PROCESS INTELLIGENCE

INTELLIGENT SUITE INDUSTRY CLOUD

BUSINESS TECHNOLOGY PLATFORM

SAP DATA CENTER OR HYPERSCALER

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Too many hands to shake

Multiple and varying SLAs

Skilled experts hard Customer acting as the

Often challenging to create the Diminishing support

Transformations requiring Long time-to-

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SAP S/4HANA Cloud

Enabling Value Creation with Differentiating

Custom code analyzer,

Capabilities that maximize transformation readiness,

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delivers differentiation with industry best practices

Manage service contracts

Required business capabilities

Link relevant Standardize labor contracts

Improve operational Manage spare parts

Required business capabilities

Improve cross-company coordination with intercompany issue and task management

Improve project efficiency with

EC&O Project Execution

EC&O Issue Management by LTI

Project Paychain by LTI

ETM.next by Bearing Point

The intelligent suite – SAP S/4HANA Cloud

enables differentiated business outcomes that maximize shareholder

 5%–50% Reduction in customer

Transformation “As-a-service” Operational

Achieve process Access simpler Leverage SAP Gain from future-fit,

Leverage transformation Leverage Improve infrastructure Achieve

Integrate and Simplify contract Achieve Automate

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What are others

Mota-Engil Graham Construction Ayala Land Shapoorji Pallonji Group

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Challenges and opportunities

“We are under pressure from every part of