Level 1: Easy; 15 minutes read
Audience: Subject Matter Experts
Author: Ramandeep Goyal, SAP S/4HANA RIG EMEA
Introduction
This blog gives an overview of the EPPM (Enterprise Portfolio and Project Management) solution and discussed various components in detail.
User Role – Project Manager / Project Planner
The above diagram shows the overall solution and various components of the EPPM solution.
On the left, we have Commercial Project Management in S/4HANA which plays an important role in the complete life cycle of a commercial project. Starting from Bid preparation and financial planning for the bid till project handover, major aspects and milestones of the project can be analyzed from the master project created in CPM. In CPM, you have Project Workspace which has following views which covers various aspects of the project –
- Overview and Reports – This view can provides vital information on the project like dates of the project, various risks levels, Status and Trends and critical reports stating the overall status / health of the project.
- Commercial view which provides information on the sales orders created against the project, Billing plan and invoices issued against sales orders.
- Procurement view which captures the information on Purchase Orders created against the project, Open Invoices, Service Entry Sheets, Purchase History and Open Purchase Requisitions.
- Issues and Changes which captures the information issues created against the project and change management requests submitted on the project. Generally, change management requests will also have financial impact on the project which can be captured in the system. Also, multiple level approvals for change requests are possible before they are put into process.
- Risk Management which captures the Risks and Opportunities arising in the project. Depending upon various factors, system can calculate the magnitude of the Risk / Opportunity.
- Financial Plan is used to create a bid structure which can later be mapped to the project structure and create various financial plans for the project. Multiple versions of financial plans can be created, and later approved version can be marked as current version. Values from the current version can be transferred to project created in S/4HANA Project Systems. This includes various resources planned for the project along with quantities and financial values.
On the top, we have SAP Portfolio and Project Management in S/4HANA which is used to manage portfolio of multiple projects or individual projects. In PPM, we can manage multiple projects in a single portfolio or multiple portfolios with multiple projects. Example – One portfolio can have separate buckets for Capital, R&D, IT & Commercial projects.
SAP Portfolio and Project Management has following object structure –
From the above shown picture, we can conclude below mentioned objects define and manage the complete structure of the portfolio/s in SAP Portfolio and Project Management in S/4HANA.
- Portfolio – Portfolios are the highest structure object of Portfolio Management. Portfolio buckets, portfolio items, initiatives and reviews always belong to a portfolio. A portfolio reflects the strategic structure of a company. There could either be one portfolio for the overall company, or different portfolios, reflecting independently managed areas. One portfolio is a single entity and not related to other portfolios. A portfolio consists of one standard hierarchy of buckets.
Authorization can be defined at portfolio level which will automatically be cascaded down to lower level objects (buckets & items) however it can also be further restricted at lower levels.
- Portfolio Bucket– The overall structure of the portfolio is reflected in the hierarchy of buckets. Using portfolio buckets, portfolio can be structured hierarchy. At the bucket level, you can perform strategic, financial and capacity planning. You can also analyze financial and capacity data of assigned portfolio items in an aggregated manner.
Please note that while creating hierarchies within portfolio buckets, you can assign items or initiatives to buckets which don’t have any lower level bucket assigned to it. It means that bucket can have either a sub-bucket assigned to it or items & initiatives assigned to it. A bucket cannot have a sub-bucket and item/ initiatives assigned at the same.
Authorization assigned at portfolio bucket level are automatically transferred to lower level objects (items & initiatives etc.) however it can also be further restricted at lower levels.
A typical example of bucket hierarchy is shown below –
- Portfolio Items & Initiatives– Portfolios items represent individual projects, proposals (which can later be converted into active / operative projects), product initiatives or services. Financial and capacity planning can be done at item level. Critical success factors like development cost, expected commercial value etc. can be defined at item level. Other factors like Probability of Technical or Commercial Success, Assessed or Derives Risks can be entered manually or automatically calculated using Questionnaire or Scoring models.
Planned and actual values for financial and capacity related data can be rolled up into items from the project management and back office system using Internal Orders, Time Sheets and WBS Elements etc. This information can then be aggregated at bucket level.
The progress of an item can be represented using decision points like “In Preparation”, “Explore”, “Realize” etc. With decision points and other information (financial, capacity) in the item, you can compare various items and take informed decision about their future progress. Decision Points can also be linked with the phases of the project which is explained in the next section.
- Projects– With in SAP Portfolio and Project Management in S/4HANA, Project Management is a tool for managing operation projects. This tool is suitable for managing projects related to IT and professional services since these projects mainly need human resources and project management is capable of handling capacity planning of resources. Project can be created manually and later assigned to a portfolio item. Alternatively, project can also be automatically created from the item. For automatic creation, a template should be assigned to the item type in configuration. Otherwise, system will only create the project definition which can be used to define project hierarchy and enter further details. Phases of the project can be linked with decision points of the item and project progress can be tracked using the same.
Various project roles can be defined using standard role types and role functions. Project tasks can be assigned to these roles which can later be staffed with suitable candidates by project lead or resource managers.
At the bottom, we have core S/4HANA Enterprise Management layer which includes modules like FICO, PS, SD, PP, MM, HCM – CATS etc. The actual data with regards to financials / resources can be captured via these modules and then transferred to PPM. For example – Actual cost of the project can be captured via WBS Elements / Network Activities or Internal orders. Similarly, time booked by resources can be captured via CATS in HCM. These actuals can be transferred to Portfolio items which can be rolled up to bucket level. Similarly, planned resources / cost from the portfolio item can be transferred to project created in SAP PS.
On the right, we have 3rd party project management tools / solutions like MS Projects or Primavera. Information between PPM and MS Projects or Primavera can be exchanges via standard connector called SAP EPC (Enterprise Project Connection). The exchange of the information can happen in both directions i.e. information from SAP can be transferred to MS Project or Primavera and vice versa. With SAP EPC 3.0, standard mapping of fields is available. So, with a little setup effort, information can start flowing between 2 systems. Additional mapping can also be defined.
Additional Information –
SAP S/4HANA Discovery
- SAP help.sap.com – S/4HANA 1809 , S/4HANA Cloud
- SAP Simplification Item Catalog
- SAP Best Practices Explorer – S/4HANA Enterprise Cloud , On premise
- SAP Roadmap Viewer – Cloud , On premise, Cloud – Single Tenant Edition
SAP Fiori Library – https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/
FAQs
What is SAP enterprise portfolio and Project Management? ›
What is SAP Enterprise Portfolio and Project Management? Manage projects company-wide from a centralized repository and keep the portfolio on track – from forecasting and planning to accounting and closure.
What is included in SAP's 4HANA enterprise management? ›SAP S/4HANA Enterprise Management is the new ERP Suite from SAP. As such, it forms the digital core for innovation and business process optimisation. With SAP S/4HANA Enterprise Management, you have a modern, simplified SAP HANA-based application at your disposal.
What is the motivation behind the development of SAP S 4HANA enterprise management? ›Nucleus found that the driving factor which prompted each organization to move to SAP S/4HANA was a desire to transform parts of the company and position those parts for future growth.
What are the components of SAP EPPM? ›SAP EPPM is made up of three key components; SAP Commercial Project Management, SAP Portfolio and Project Management, and SAP Enterprise Connect.
What is the difference between PPM and Eppm in SAP? ›SAP EPPM (Portfolio and Project Management) is the enterprise solution offering from SAP that supports the planning and execution of projects. SAP EPPM includes SAP PPM and SAP PS. SAP PPM is used to collectively manage and analyze for investment a portfolio of projects.
What is Eppm vs PPM? ›Primavera P6 PPM contains decent graphics; however, users will not be able to use interactive graphics such as the ones built into the web-based version. Primavera EPPM, on the other hand, contains extraordinary and interactive graphs, pivot tables, charts, and colorful dashboards.
What are the key aspects of SAP's 4HANA? ›- Key feature 1 – Simple data modelling. ...
- Key feature 2 – Live data collection. ...
- Key feature 3 – Live, Extensible master data. ...
- Key feature 4 – Easy set-up of validations. ...
- Key feature 5 – Consolidated reporting.
Source to pay is the decisive end-to-end process whose strategy covers the span of processes from spend management through to the purchasing and accounts payable.
What are the main characteristics of SAP's 4HANA? ›- Smaller total data footprint.
- Higher throughput.
- Faster analytics and reporting.
- ERP, CRM, SRM, SCM, PLM co-deployed.
- Unlimited workload capacity.
- SAP HANA multi-tenancy.
- All data: social, text, geo, graph, processing.
- New SAP Fiori UX for any device (mobile, desktop, tablet)
The three pillars of the SAP Activate Framework are SAP Best Practices, Guided Configurations, and the SAP Activate Methodology. The framework can be used with all transition scenarios to S/4HANA.
What are the 3 main benefits of SAP implementation through activate? ›
Using three key components—ready-to-run business processes, guided methodology, and tools for adoption and extensibility—SAP Activate aims to simplify implementation processes and help users build strong landscapes.
What is the release cycle of S 4HANA enterprise management on premise? ›To make it easier to stay up to date, SAP is taking steps to reduce the number of upgrades for customers and deliver even greater value: The product will move to a two-year release cycle starting with SAP S/4HANA 2023.
What are the three main components of data model structure in SAP s4 Hana? ›The key architectural components of SAP S/4HANA embedded analytics [4] include the SAP HANA database, virtual data model, analytical engine (embedded SAP BW), OData service, and interfaces as illustrated in Figure 1.
Which of the following are the main phases of a SAP managed projects? ›- Project Preparation/Planning.
- Business Blueprint.
- Realization/Implementation.
- Integration Tests.
- Final Preparation.
- Go-live.
- Production/ GO Live Support.
EPPM is the acronym commonly used for Enterprise Project Portfolio Management.
What are the two key SAP modules used in projects? ›The SAP EPPM module includes SAP PPM and SAP PS. SAP PPM is used to collectively manage and analyze for investment a portfolio of projects. In this sense, it is truly a traditional portfolio management tool. SAP PS is the project execution tool that handles project management and scheduling.
What is the difference between FPS and SPS in SAP? ›Technically, a FPS is like a SPS, but it may include non-disruptive, non-mandatory features. The numbering of FPS/SPS will be consecutive, i.e. the first SPS after a FPS3 would be consequently SPS4.
Why do you need a PPM tool? ›Project portfolio management (PPM) tools help managers effectively manage time, skills, resources, and budgets. Having this tool in your hands makes it much easier to accomplish many tasks, especially in situations where managers have to multitask.
Which is higher ppt or PPM? ›The expression above says that 1 part of a small number (ppm) equals 1,000 parts of a smaller number (ppb) which equals 1,000,000 parts of an even smaller number (ppt.)
What are the major benefits of project portfolio management PPM )? ›- Align Project Goals With Business Strategy. ...
- Improved Project Selection Process. ...
- A Clearer View of Long Term Objectives. ...
- Focus on Objective Business Goals. ...
- Collaboration Instead of Competition. ...
- Efficient Use of Resources. ...
- Accurate Project Performance Data.
When should PPM be used? ›
ppm - or parts per million - is commonly used as a unit of concentration. Parts per million - ppm - is commonly used as a dimensionless measure of small levels (concentrations) of pollutants in air, water, body fluids, etc.
What is difference between SAP HANA and SAP S4 Hana? ›It's easy to be confused about SAP HANA vs S4 HANA–the two sound very similar. To put it simply, SAP HANA is the in-memory database technology that runs the SAP landscape. S4 HANA is the business suite launched as the next-generation ERP designed to run exclusively on the HANA database.
Which are key roles of an SAP HANA project? ›AREAS OF RESPONSIBILITY:
Support implementation of the SAP S/4HANA solution to meet the specified business requirements (scoping, design, localization, testing, Go Live, transition to AM)
SAP HANA (High-performance ANalytic Appliance) is a multi-model database that stores data in its memory instead of keeping it on a disk. The column-oriented in-memory database design allows you to run advanced analytics alongside high-speed transactions – in a single system.
What is the first version of SAP S 4HANA enterprise management? ›SAP S/4HANA—first introduced in February 2015—is SAP's current ERP system as well as the core of the intelligent enterprise. It's the future state that's already here. SAP has released an upgrade to the on-premise edition each year since it first introduced SAP S/4HANA.
When was the first version of SAP S 4HANA enterprise management released? ›SAP S/4HANA is SAP's current enterprise application suite. First released in 2015, the platform is considered the biggest change to SAP's core offerings since the introduction of the R/3 system in 1992.
What are the four core processes? ›What are four core processes in a firm and how are they related? The four main processes are: Order fulfillment process Supplier relationship process Customer relationship process New Service/Product development process.
What are some of the benefits of SAP's 4HANA? ›- Easier to update business models. ...
- Simpler to bring acquisitions into the ERP environment. ...
- Lower ownership costs. ...
- Faster analytical insights. ...
- More accurate forecasting. ...
- Speedier period-end closings.
SAP S/4HANA is an abbreviation of SAP Business Suite 4 SAP HANA, an enterprise resource planning (ERP) software package. Organizations use SAP S/4HANA to integrate and manage business functions – such as finance, human resources, procurement, sales, manufacturing and service – in real time.
Which of the following are key benefits of SAP's 4HANA? ›- Boost Your Performance. With its underlying SAP HANA database technology, SAP's newest ERP platform enables real-time data insights and an overall faster access to your entire data volume. ...
- Simplify Your Processes. ...
- Improve Your User Experience. ...
- Innovate Your Business.
What are the 3 layers in SAP? ›
SAP : Three-Tier Architecture
With SAP R/3, SAP ushers in a new generation of enterprise software — from mainframe computing (client-server architecture) to the three-tier architecture of database, application, and user interface.
The six phases of the SAP Activate methodology are Discover, Prepare, Explore, Realize, Deploy and Run.
What are the roles and responsibilities of SAP s4 Hana project manager? ›Job Description
Manage all aspects of Project life cycle to facilitate successful delivery to executive team. Oversee SAP project to provide metrics for reporting to executive team on business case ROI. Provide Cost Benefit Analysis (CBA) on selected business processes to assemble input into business case.
There are two common methods of SAP implementation that are Big Bang implementation and phased project implementation.
What are the top 3 SAP modules that you can talk about in detail? ›- SAP FI.
- SAP MM.
- SAP SD.
- SAP PP.
- SAP HCM.
- SAP HANA.
- SAP Basis – for people with a technical bent.
- SAP ABAP – Helps large corporations to customize the SAP ERP.
What is ASAP Methodology? ASAP stands for Accelerated SAP Methodology. This methodology was designed by SAP for SAP project implementation in the most efficient manner to reduce time & reduce cost. We can say by using this methodology we can optimize the time, resources, quality and more.
What is S 4HANA enterprise management? ›SAP S/4HANA Enterprise Management is the new ERP Suite from SAP. As such, it forms the digital core for innovation and business process optimisation. With SAP S/4HANA Enterprise Management, you have a modern, simplified SAP HANA-based application at your disposal.
What are the three layers in SAP S 4HANA architecture? ›A Software mainly consists of three layers — Presentation Layer, Application Layer and Database Layer.
What are the two components of SAP HANA enterprise Information Management? ›SAP HANA EIM consists of two main areas, smart data integration and smart data quality, as described below.
How many layers are there in SAP HANA? ›According to the SAP architecture, there are three layers: Presentation layer. Application layer. Database layer.
What are the main elements of the enterprise structure in SAP? ›
- Client.
- Company Code.
- Personnel Area.
- Personnel Subarea.
- Organizational Key.
What are the SAP tools? Accelerated SAP (ASAP), ValueSAP and Solution Manager are the methods and tools available to manage you SAP project.
What are the 5 phases of ASAP methodology? ›- What is the ASAP Methodology Framework? ...
- Phase 1: Project Preparation. ...
- Phase 2: Business Blueprint. ...
- Phase 3: Realization. ...
- Phase 4: Final Preparation. ...
- Phase 5: Go Live and Support. ...
- Advantages of ASAP Methodology. ...
- Conclusion.
SAP EPPM (Portfolio and Project Management) is the enterprise solution offering from SAP that supports the planning and execution of projects. SAP EPPM includes SAP PPM and SAP PS. SAP PPM is used to collectively manage and analyze for investment a portfolio of projects.
What is the difference between EPPM and PPM? ›Primavera P6 PPM contains decent graphics; however, users will not be able to use interactive graphics such as the ones built into the web-based version. Primavera EPPM, on the other hand, contains extraordinary and interactive graphs, pivot tables, charts, and colorful dashboards.
What is the purpose of enterprise portfolio management? ›The main objective of EPPM is to provide a high-level, 360-degree view of all projects, programs, portfolios, and collective efforts of an organization. This overview is critical to running a business smoothly and adapting to change effectively.
What is SAP portfolio management? ›SAP PPM (Portfolio and Project Management) is the solution offering from SAP that supports the planning and execution of projects and portfolios of projects. It is often confused with SAP EPPM (Enterprise Portfolio and Project Management), which is the official name of the solution from SAP.
What is enterprise portfolio management? ›Enterprise project portfolio management (EPPM) is the practice of taking a high-level business strategy and breaking it into smaller initiatives in order to understand the work that needs to be done at a more tactical level.
What is SAP in project management? ›SAP Project System (PS) is a project management software tool that integrates with other components of the SAP Enterprise Resource Planning (SAP ERP) system.
What is a SAP enterprise management system? ›The enterprise management layer is a service that is also based on SAP Best Practices, but with enhanced content specifically for multinational customers and with a focus on localization topics and additional functionality such as intercompany processes.
What is the point of portfolio management? ›
Portfolio management is the selection, prioritisation and control of an organisation's programmes and projects, in line with its strategic objectives and capacity to deliver. The goal is to balance the implementation of change initiatives and the maintenance of business-as-usual, while optimising return on investment.
What are the types of projects in SAP? ›- Business Processes Consulting.
- Audit And Training.
- Maintenance Support Services.
In simple terms, portfolio management is the process of choosing and managing a set of investments to meet the specific financial goals of a company or an individual. There is a science behind selecting the right investment mix for a client and perfectly balancing the risk tolerance.
What are the 3 types of portfolio management? ›- Active Portfolio Management. The aim of the active portfolio manager is to make better returns than what the market dictates. ...
- Passive Portfolio Management. ...
- Discretionary Portfolio Management. ...
- Non-Discretionary Portfolio Management.
What is an EPMO vs. a PMO? An EPMO, or enterprise project management office, reports to people at an executive level within a company and offers guidance at the top of an organization. In contrast, a PMO exists within or as its own department and provides lateral guidance to employees working directly on the projects.
Why portfolio management is important to an enterprise? ›Portfolio management will be able to show you the probable ROI of a particular project, how much effort and company resources are likely to be used before the project is completed, as well as the longevity of the benefits of that project.
What are the roles and responsibilities of SAP project management? ›Develop Project Plans, Coordinate Team Meetings and Status Meetings. Managed project scope, schedule, budget, risk mitigation and defect/issue resolution. Reported project status to both PMO leadership and stakeholders on a regular basis throughout the lifecycle of the project.
What are the project manager roles and responsibilities in SAP? ›SAP Project Manager manages all activities related to SAP implementation projects. Ensures that all SAP project goals are accomplished according to specifications and business objectives. Being a SAP Project Manager requires a bachelor's degree in area of specialty. Typically reports to top management.
What are the SAP project phases? ›- Project Preparation/Planning. This is the start phase we were talking about earlier that leads to the SAP implementation project failure. ...
- Business Blueprint. ...
- Realization/Implementation. ...
- Integration Tests. ...
- Go-live. ...
- Production/ GO Live Support.
SAP is one of the world's leading producers of software for the management of business processes, developing solutions that facilitate effective data processing and information flow across organizations.
What type of platform is SAP enterprise? ›
The intelligent enterprise takes a big step forward
That's the power of SAP Business Technology Platform (BTP), SAP's open platform that helps integrate SAP and third party applications, extend application capabilities and exploit data to solve business problems.