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8/6/2019 Van Tang and Flatscher 1 Nov
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SAP EC& OIndus t ry Va lue Ne tw ork : RIB in Foc us
Van Tang, Direct or, SAP Discrete Industries, EMEAWolfgang Flatscher, Director, RIB InternationalBusiness
Contributors: Carsten Dietze-Selent, Director IBU EC&O, SAP
Michael Kastner, IBU EC&O, SAP
Michael Quadt, IBU EC&O, SAP
Zach van der Walt, SAP South Africa
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SAP‘s Vis ion for Indus t ry Solu t ions
… a s f o u n d at i o n f o r t h e s t r a t e g y i n EC& O
VISIONTo enable every customer to become a best run business
Achieve undisputed market and platform leadership in all industries wherewe compete
Executing industry growth strategies by assembling SAP and partnerapplications into industry-leading solutions:
•Translate industry trends and best practices into solutions and business opportunities for customers, partners and SAP•Assemble complete industry solutions based on industry, generic, and partnerapplications•Demonstrate thought leadership around E-SOA and deliver on the promise – early!
•Building a healthy industry ecosystem for the SAP platform•Develop critical industry-specific applications
MISSION
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SAP Engineering, Construction & Operations
SAP EC&O Industry Value Network
SAP & RIB
Path Forward
AGENDA
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H o w w e s ee t h e EC& O i n du s t r y
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The Cons t ruc t ion En t e rp r i se
Core Enterprise•Financial Mgmt.•Workforce Mgmt.•Procurement•CRM•IT
Owners
Construction•Project Mgmt.•Change Mgmt.•Procurement•Billing•Workforce Mgmt.•Document Mgmt•Schedule
Materials Suppliers
Architects/
Engineers
Subcontractors/Vendors
Facility Operations•Maintenance•CRM•Scheduling•Dispatch
Equipment
Design & Engineering•Project Mgmt.•Resource Mgmt.•Workforce Mgmt.•Contract Billing•Change Management
Pro jec t
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Comm erc ia l Cons t ruc t ion Sub-Segment s –H o w w e Go t o M a rk e t
OtherGeneral
Contractors
GeneralConstruction
Heavy /Infrastructure
ConstructionManagers
GeneralBuilding
Contractors
Industrial(Power/ Petrol.)
Highway/Transportation
Real Estate
Developers
PropertyManagers
ProjectOwners
Special TradeConstruction
Mechanical/Electrical/Plumbing
(MEP)
OtherSpecial Trade
Civil(Water/ Sewer/Environmental)
Construction /Mfg. Hybrid
ETO
Companies
FacilityOwners & Operators
EPC / PlantContracting
ConstructionMaterials
Management CompaniesControlled RiskLower Margin
Self-Perform CompaniesPerformance Risk
Higher Margin
Financial / ControlProject CostChange ManagementSubcontract ManagementFacility Operations
Financial / ControlProject Cost
Change ManagementSubcontract Management
Facility OperationsProject Logistics
Materials ManagementWork Management
Production
productivity and profitability
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SAP fo r EC& O Cus tom ers Base Grow t h 2001 - 2006
441
747
100
44
44
02001 2002 2003 2004 2005 2006
400
500
600
700
800
• Growth consistent and sustained• Significant new well-known customers added in 2005 and 2006• Strong growth in the Midsize and Small Market
6850
Source: MKIS as of December 2006
C A G R = 1 1 %
No. of EC& O Customers Wo rldw ide
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SAP has 747 E& C Cust om ers Worldw ide
By Region
By Segment
592
APA(122)
Americas(120)
EMEA(505)
34556
115
Shipb uilding
Plant Contracting
& Construction
Key Takeaways
747 SAP for EC&O customers are spread allover the world. 68% in EMEA (mainly Europe), 16% inAPA and 16% in the Americas.
SAP for EC&O customers are distributed to 46% onPlant Contracting & Construction, 31% on SpecialTrade Contractors, 15% on Homebuilding, and 8% onShipbuilding
The structure of SAP for Engineering, Construction &Operations customers is dominated by companieswith less than 5.000 employees.More than three quarters are belonging to thismagnitude
Source: MKIS as of January 2006
Homebuilding
231Special Trade Contractors
Range of Employees No.
By Employee Size
Total : 747
346
208
75
118
Small
MidmarketEnterprise
Not Assigned
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Our EC& O indus t ry so lu t i on app roac h
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The Bus iness Process P la t fo rm t o Br idge Tw o Wor lds
SAP NetWeaver SAP NetWeaver
SAP Appl ic at ion
E R P
C R M
P L M
S R M
S C M
PRODUCTIVITYDIFFERENTIATION
REUSE PROCESS STEPS AN DENTERPRISE SERVICES IN
CUSTOM PROCESSES
ENTERPRISESERVICES
Cus tomer Appl ica t ion
SAP Appl icat ion
Par tne r Appl ica t ion
EnterpriseServices
Repository
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SAP ERP 6 .0 – St able Foundat ion for t he Nex t 5 yrs
200 6 20 07 20 08 20 09 2 010
SAP ERP 6.0
SAP NetWeaver
Enhancement Packages
2005
Enhanceme nt pack ages del ive r c o n t i n u ou s i n n o va t i o n w i t h o u tupgrades and can inc lude …
Technical and functional enhancements
New enterprise services
Composite applications
2011
Nextrelease
Delivery of new developments and continuous without a release upgrade!
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In t r oduc ing . .. Enhancem ent Pac k ages- More Innovation, More Quickly, More Accessible to Customers
2006 20102007 2008 2009
CompositeApplications
Enterprise Services
Legal Changes
FunctionalEnhancements
Areasof
innovation
MandatoryCore -modifying
OptionalNon core -modifying
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Serv ice Enab lement o f Indus t ry Sc enar iosExample: Project Planning & Scheduling
Design Tender Execute OperateDevelop Estimate
Planning & Scheduling
CreateProject Structures CreateEstimate ScheduleProject
ResourcePlanning
QuantityTake-OffProcessStep
Desegregation of Process into Process Steps
Create/UpdateProject Objects
Create/UpdateCost Plan
ScheduleNetwork/Project(*)
UpdateNetwork
Attach MaterialComponents
SAPServices
Composition of the Process with Enterprise Services
Def in i t ion o f Serv ices : Jo in t ly w i th Par tne rs and ( in fu tu re ) Cus tom ers
Enterprise Services RepositoryDefinition of processes, enterpriseservices, data types, and mappingsService metadataCentral modeling and design environment
Service Bundle for Projects (EhP 3)
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Ent erpr i se Serv ic es : Connec t ing Is lands and Dr ive Co-Innova t ion
To build a partner ECO-system
To leverage new technologies
To simplify development – fromcode to model-driven
To deliver Enhancement Packages
Enterprise Services are the pre-condition for Simplification and efficient cooperation with partners
Our Objective: Service Enablement of EC&O Core Scenarios
Ente rp r i seSe rv icesRepos i to ry
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SAP‘s Leadersh ip in t he EC& O Indus t ry
Industry Segments Example SAP Customers SIC Codes
Operative Builders1531
Residential Construction 1521, 1522,2451
General Construction, non-residential 1541, 1542
Road, Highway, ElevatedHighway 1622
Infrastructure & HeavyConstruction 1623, 1629
Special Trade Contractors1700-1799
Shipbuilding, Boat Building andRepairing 3731, 3731
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SAP‘s Leadersh ip in t he EC& O Indus t ry
Industry Segments Example SAP Customers SIC Codes
Operative Builders1531
Residential Construction 1521, 1522,2451
General Construction, non-residential 1541, 1542
Road, Highway, ElevatedHighway 1622
Infrastructure & HeavyConstruction 1623, 1629
Special Trade Contractors1700-1799
Shipbuilding, Boat Building andRepairing 3731, 3731
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SAP Engineering, Construction & Operations
SAP EC&O Industry Value Network
SAP & RIB
Path Forward
AGENDA
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SAP Ec osys tem – New Dim ens ions o f Co l l abora t ion
B u s
i n e s s
P r o c e s s
Customer-driven business process insights
Business partners, individuals
Industry Knowledge
Communities for Innovation
Products and Services
Platform with application functionality
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SAP‘s Indus t ry Solu t ion Map for EC& O
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Ent erpr i se Serv ices Enabled Key Sc enar ios for EC& O
• Focus on scenarios – Project Planning &
Scheduling, ProjectExecution
– Procurement of Services andMaterials
– 2008: Design & Engineering• Current Partner Status
– Primavera approved for EBSPartnership (in solutionqualification)
– RIB: Nominated – Intergraph, NRX: Nominated
Do we miss Scenarios and Software Vendors with the potential for broad adoption?
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Reuse o f Se rv ices : In teg ra t ion w i t h Pr imavera & RIB(planned)
EnterpriseServices
Repository
Tender Execute OperateDevelop
ProjectView
ProcessView
Estimate
ERP
View
Subcontractor
Exchange of projectinformation (e.g.schedule, tasks)
Design toQuantify
Estimate toContract
Tender forPurchase
…
Enterprise Services
Customer
Primavera
ERP Application Components
Design
Analytics
ERP ProcessMasterdata
…… … … … … … … …
Primavera
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SAP Engineering, Construction & Operations
SAP EC&O Industry Value Network
SAP & RIB
Path Forward
AGENDA
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RIB Overvi ew
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RIB Prof i leEx per i ence i s t he Bas i s fo r Fu t u re Innovat ions
Experience is the basis for future innovations
2008 RIB visual
2006 First customer in Middle East - Orascom2005 Founding of R&D Center in China2004 First customer in China - Vanke2003 First customer in United Kingdom – Network Rail2002 First customer in the USA - Fluor Corporation1998 Fully integrated pre- and post contract software
1986 First integrated civil engineering solution1972 First structural engineering software
with FEM method1961 Founded by Prof. Dr. Ing. Volker Hahn, Stuttgart
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RIB Suc c ess St ory
RIB Success Story
– Over 45 years of experience – More than 100,000 RIB-installations worldwide – Over $ 35 million revenue (2006)
– > 350 highly skilled staff worldwide – Head office Stuttgart, Germany.
Offices in UK, Eastern Europe, Asia, USA – 35 % of the German tender volume (about $ 180 bn) – 100 % of the top 10 internationally operating German
building Groups work successfully with RIB software – 80% of construction projects (> $ 1 m) in Germany are managed with
RIB Software
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Think Globa l , Ac t Loc a l
RIB Markets and Sites
Research andDevelopment
Consulting,services, sales
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SAP & RIB Indus t ry So lu t i on
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J o ined So lu t ion Overv iew SAP - RIB
Cus tomer Des ign /Engineer ing
Subcon t r ac to r Ma te ri al Su pp li er H R Se rv ic e Pr ov id er
Pro jec t L i fe -cyc le
Leverage des igni n f o r m a t i o n f o r p r o j e c t
e x e c u t i o n
A c c e s s t o t a s k s a n dschedule , Time
record ing onl ine
R e a l t i m ea v a i l a bi l i t y c h e c k
and de l iveryi n f o r m a t i o n
Externa l payro l lprocess ing
Exchange of rea lt i m e p r o j e c t
in format ion (e .g .change reques t s )
SAP ERP SD, MM , PS, FI, CO, HRERPView
Pro jec tView
ProcessView
SA PCRM
Opera teDesign Es t im a t e Tend er Ex ec u t eDevelop
SA PFM, BI
Ente rp r i seSe rv ices
Repos i to ry
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Cons t ruc t ion CompanyClient
Quantity Take Off
Suppl ier S u b c o n t r a c t o r SA PRI B
Bill of Quantities
Material (Commodities)Equipment / Plant
Labour
Subcontractor
Estimate Indirect Cost
Allocation / Allowances
Optimization of Bid
Final BidEvaluation of Bids
ContractAward Contract
Budget
Historic Price Data
Create Sales Order
Create PS Project
Estimate Direct Cost
Cost
Price
CRM
Contract Management
HR
Equipment / Plant Cost
Procurement
RFQ
Quotes
Supplier
Import RFQ
Estimate
Send ElectronicBid
Subcontractor
Major Items Only
Estimating Process
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Cons t ruc t ion CompanyClient
Award Contract
S u b c o n t r a c t o r SA PRI B
Packaging
Tender Documents
Import Quotes
Transfer Quotes toEstimates
Update Budget
Award (Sub) Contract
Execution
Evaluation
Benchmarking
Supplier Database
Contract Management
Updated Baseline
Create Purchase Order
Controlling
Contract Award
Import RFQ (e-bid)
Estimate
Send Electronic Bid
Subcontract Procurement
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Material Procurement
Cons t ruc t ion CompanyClient
Contract Award
Suppl ier SA PRI B
Request forProcurement
Create/Send RFQ(Request for Quotation)
RFQSend RFQ(Request for Quotation)
Send Quotation toContractorEvaluation of Quotes
Create Contract / Order
Evaluation of Quotes
Create Purchase Order Purchase Order
Update Cost
Delivery
Invoice
Payment
ReconcileGRN vs Invoice
Transfer Payment
Enter GRN(Goods Receipt Note)
Workflow Site Procurement
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Cost Engineering, Applications for Payment
Cons t ruc t ion CompanyCl ient
Awarded Contract
S u b c o n t r a c t o r SA PRI B
Budgeted Cost of WorkScheduled (BCWS)
Awarded Contract
Value Reconciliation
Payment Certificate
Variations
Payment Transfer
Map Estimate to Activities
WBS/Activities
Primavera
Sequencing
Time-phased Estimate
Budgeted Cost of WorkPerformed (BCWP)
Actual Cost of WorkPerformed (ACWP)
Stage of
CompletionProgress Measurement
Application
Prepare Invoice
Valuation of Changes
Value Reconciliation
Payment Certificate
Change ManagementClient
Change Management
Subcontractor
Send Invoice
Accounting
Payment Transfer
Receive Payment
Execution of Work
Variations
Application
Prepare Invoice
Invoice
Receive Payment
Change Management
Cont ro l l ing / Forecas t
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Great Brands , Grea t Rela t ionships
Joint Customers SAP/RIB
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SAP Engineering, Construction & Operations
SAP EC&O Industry Value Network
SAP & RIB
Path Forward
AGENDA
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Value Pro to t yp ing Pow ered by Cen te r o f Exc e l l ence
• Bring your challenge to a lab and accelerate innovation!
Center of ExcellenceWalldorf - Palo Alto – Newtown Square – BangaloreMinsk -Sofia – Atlanta - Montreal - Gorinchem/NL
Service Level:Target price for fuzzy scope in 1 hourReady to start lab in 5 daysAccess to all lastest technologies and solutionsTangible results every 2 weeks
The high performance collaboration platform for customers, partners and SAP
to drive innovation from vision to reality.
Value Pro to t yp ingReduce risks and accelerate realization of value opportunities.
powered by Center of Excellence
Services:CoachesArchitectsExpertsSystems
SupportFacilityHelpdeskMethods
Contact:Secure your lab through the respecitive field representative, business unit or directly with the registration office
[email protected] + 49 170 22 00 156
“With the rapid prototyping and rapid implementation approach, the project was 3 times faster and 5 times cheaper than with the classical approach.” – Lars Radoor, Lego Supply Chain Executive
1,000+ prototypes over 6 years for customers from more than 25 countries and all industries
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High Perfo rmanc e Col l abora t ion
Solutions•SCM Lab SRM Lab•CRM Lab SEM Lab•PLM Lab HCM Lab•Adaptive Manufacturing Lab•MDM & Data Cleansing Lab•Service Parts Mgt Lab
Technologies•Integration Lab
•High Performance Lab•BI Accelerator Lab•Composite Lab•Adaptive Computing Lab
Focus Areas•eSOA Lab•Duet Lab•RFID Lab•EP & Knowledge Mgt Lab•Analytics Lab
Industries•Automotive•Logistics Service Providers•...
Types•R&D Lab
•Beta Lab•Ramp-up Lab•Best Practice Lab
Methods•Proof-of-Concept Lab•Innovation Lab•Pilot Lab•Discovery Lab
Industries•Retail•Public Sector•Banking•Aerospace & Defense•...
Campaigns &Programs•Retool Lab (Bye-bye I2)•Retool Lab (Bye-bye Siebel)
Engagement teams bring the challenges to a lab Experienced coaches build the teams and guide them to success
The registration gurantees direct access to all capabilities
Project Labs
Satellite & Remote Project Labs
CustomerLab
CustomerLab
CustomerLab
CustomerLab
SAP Lab
SAP Lab
SAP Lab
SAP Lab
Partner Lab
Partner Lab
Partner Lab
Partner Lab
CustomerLab
CustomerLab
PartnerLab
PartnerLab
R e g i s t r a t i o n
Coaching
Solutions
Technologies
Industries
Capability Labs
Methodes
Systems
Support
Helpdesk Facilities
Capability LabsHub LayoutCapability Labs
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Va l ue P ro t o t y p i ng A p p r o ac h e s & M e t h o d s
Classic Implementation
•Architecture and technology proven against key business challenges/opportunity•Touchable lab environment with strategic reference template on latest technology•Reduced technology risk, know-how risk, acceptance risk, budget risk•Easier scoping and effort estimation
Short-cut Implementation / Roll-out or Fast Deployment
•Processes proven against real-live data and operation•Touchable pilot environment with a reference process template•No technology risk, no know-how risk, acceptance risk, budget risk•Clear scope and effort to contract out-sourcing, off-shoring, hosting partners
Innova t ion Lab
P r o o f
& Q u a
l i f y
R e s e a r c
h & D e s i g n
D i s c o v e r
& E n v
i s i o n
C a p
t u r e
& P r o m o
t e
ThinkTank to Value max 6 weeks - 2-5 FTE
Pi lo t Lab
F i n e - t u n e
& C o n f i r m
P r e - c o n
f i g u r e
& V a l
i d a
t e
S c o p e
& A s s e s s
A n
i m a
t e & S i m u l a
t e
L o a
d & L a u n c h
LiveDrive to Value max 8-10 weeks – 2-5 FTE
L e a r n
& T r a n s f e r
L e a r n
& T r a n s f e r
From Vision to Concept !
From Concept to Reality !
Proof o f Concep t Lab ( Proof & Qualify )Proof & Qualify of a given solution outline/designmax 2-3 weeks with 2-5 FTE
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Innova t ion Cent e r
Innovation Center10 MiniProjects of 50-150 man days and 3-4 iteration cycles of 2 weeks on average
Send your thought leaders with thevision & challenge to a Innovation Lab !(3 workshops of 1,5 days)
From Vision to Concept !
Have your power users validate thesolution in a Pilot Lab !(3-4 workshops of 1,5 days)
From Concept to Reality !
Give you IS competence team earlyaccess to the latest solutions &technologies as needed and desired !(workshop or full-time)
Gain Insight, Confidence and Speed in Innovation
Sample Topics:•“eSOA”•“The Perfect Plant”•“High Speed Analytics”•“Order-to-Cash”•“Strategic Procurement”, etc.
InnovationLab
PilotLab
PilotLab
Inn. Lab
PilotLab
Inn. Lab
PilotLab
Qualified Ideas
DeploymentQuality gate
…
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Benef i t s o f Pro to t yp ing
Customers are more and more excited about the opportunity to use an ideal labenvironment and appreciate this highly value adding services
•To improve the decision making•To get the buy-in from stakeholders and power users•To reduce risk and total cost of implementation•To accelerate implementation and deployment•To develop scenario specific know-how efficiently
with•Limited initial investment and resource needs•Touchable results, control and exit points every 2 weeks•No need to freeze scope and gather detailed requirements up front•Time of customer key people limited to concentrate step stone workshops•Keeping the focus on the business challenge rather than on technology
Fas t , Predic t ab le Paybac ktime
cash
AccelerateTime-to-Benefit
ShorterPayback
Time
Reduce InitialInvestments
See ing i s Be l i ev ing
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SAP Cen t e r o f Ex c e l l ence Trac k Rec ord
1,000+
prototypes over 6years
Customers frommore than 25
countries and allindustries
“With the rapid prototyping and rapid implementation approach, the project was 3 times faster and 5 times cheaper than a classical approach.” – Lars Radoor, Lego Supply Chain Executive
"With the rapid prototyping approach we were able to globally break into the logistics area... It reduced the engagement time and risk significantly... " – Gunther Fonteyne, Account Executive