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openSAP SAP Business ByDesign Project-Based Services

Week 1 Unit 1

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Ladies and gentlemen, welcome to Week 1, Unit 1, and let me introduce to you what Business ByDesign is all about.

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First and foremost, the important thing to understand about Business ByDesign is that it is an integrated suite,

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a suite in a box. Why is this important?

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It simply means that all of the different components which you see, financials, human resource management,

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and project management, and all of the other components, are pre-integrated by SAP into Business ByDesign.

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Nevertheless, you can extend this integrated suite with additional line-of-business solutions from SAP,

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be it Concur, be it Ariba, be it Fieldglass, be it other solutions also from other providers of cloud solutions.

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So it is an integrated suite in a box, but open for integration and extension.

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Business ByDesign has specifically fast-growing companies in mind, companies who say we are relatively small today,

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but you know what? We will be the next Google. We will be the next superstar.

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We will grow fast and we don't want to outgrow our platform. So this is one of the key value propositions of

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Business ByDesign, as it can support you to grow. If you think of one of my customers, Skullcandy,

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who started buying Business ByDesign when they were 15 people or so, then they did the IPO,

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and today they are one of the largest headphone manufacturers and sellers in the world. The key thing of Business ByDesign is that it supports you in decision-making.

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It is actually not exactly fun to put a lot of data into such a system. The key thing why you do it is you want to make smarter decisions.

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And the way how my customers use that is they predominantly use analytics to make better investment decisions.

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I met with a chief financial officer, who said, Rainer, you have no clue how many

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people come into my office and tell me, let's invest in this product, let's invest in this region, let's invest in this customer.

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In the past, I said, well, I hope the person knows what they are doing. Today, I look up the profitability analysis in Business ByDesign

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and I see the profitability of projects, products, customers, and regions, and I can make much better management decisions than I did before.

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One more aspect is the continuous innovation. One of the key features of cloud computing

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is that you are always on the latest version of a piece of software, and that we put all of the innovation that SAP can bring,

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be it machine learning, be it big data, be it Internet of Things, be it block chain,

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it is ready when you need it. So these are four key characteristics of SAP Business ByDesign.

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But we are realistic enough to understand that whatever we build will never be complete,

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will never be the 100% solution. Therefore, extensibility was as much on top of our mind when we built Business ByDesign,

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like trying to get the business content right. The ambition with Business ByDesign,

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and there we wanted to set ourselves apart from what we had done for the last 40 years, was, have we said,

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let's build a solution where the customer is as autonomous as possible, and where even the end-user is autonomous.

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So for example, when it comes to adjusting the fields that you see on the screen, when it comes to adjusting the analytical content,

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this is something the end-user can do. You don't need to have a business consultant to do that for you.

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There are more advanced topics, like you want to introduce new fields to a screen, to a form,

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with additional logic attached to it. You want to extend certain workflows.

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That is something where traditionally you needed a consultant. Today, in Business ByDesign, it is something which

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can easily be done by the key user. Last but not least, companies will find it useful

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that they are able to add their own business logic to Business ByDesign. One of the stereotypes about cloud computing is that

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everybody has exactly the same software, and therefore, everybody has to use the software in exactly the same way.

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Not so with Business ByDesign. You can have your own data, you can have your own business configuration,

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you can have your own logic if you want to do it. And more than half of all Business ByDesign customers today

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extend Business ByDesign with their own logic. Therefore, the extensibility is a key capability of Business ByDesign.

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One additional aspect which is absolutely vital to the majority of my customers, be they small or large,

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is the global reach of Business ByDesign. We deliver 19 countries out of the box.

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So these are countries where we say we deliver all of the settings, we keep them current, and you're ready to go.

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But the 19 countries are mostly not exactly those 19 countries which matter to you.

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Maybe you have your business in Latin America. Maybe you have the core of your business in Southeast Asia.

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Maybe you're active in Africa. Then, you need the capability to introduce new country versions

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and you don't want SAP to be the bottleneck. Therefore, in Business ByDesign, we put a specific

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focus on introducing one layer into our architecture where all of our globalization settings are.

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So if I'm in charge of building the financials application, or the human resource management application, or the purchasing application,

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then if I need country-specific settings, I put it into that layer, and this layer is accessible to our customers and partners

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via the "software development kit", and you can build new country versions.

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Why are we able to do so? Simply because we can leverage all of the globalization

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experience that SAP has, which we collected over the last 40 plus years in SAP Business Suite.

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And on the right side, you see country versions that my customers have built.

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So to take Business ByDesign to Serbia, to Croatia, to Bosnia Herzegovina, or to Kazakhstan,

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is as simple as using the globalization framework and getting going with the capabilities there.

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When we built Business ByDesign, we not only thought about what the kind of companies are that we want to serve as I said, the fast-growing ones.

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We also thought about the industry in which we would make the biggest contribution to the

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development of these companies. And you know that SAP traditionally comes more

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from a manufacturing background. Therefore, we said, with Business ByDesign,

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and as 60% of our target market is mostly built around service processes, let's put a specific focus on service industries.

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This slide here gives you an overview of which specific market segments we had in mind.

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You can see financial services, the services industries, as well as the public sector.

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So we want to serve all of those market segments. Not to the same level.

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You can see some areas a bit darker, some areas a bit lighter, which give you an indication of

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where we currently have the majority of our customers. But you can see the spread is fairly wide,

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and we are trying to serve all of these companies with the capabilities that we built into the solution around the

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project management and the integrated nature. If we look at all of these companies

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and we ask ourselves "how do they run their business?" then we can find three categories.

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The first category is those ones who sell project-based services. Project-based services are services which are modeled around a project plan,

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so that is where you say this is what I want to do, this is how I break down the different activities,

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this is how I allocate my resources to it, and finally, I use the flexibility in billing

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that is available through Business ByDesign. The second aspects are standardized services.

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These are repetitive services for which you don't each and every time invent a project plan, but where you mostly focus on:

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"I have a standardized service", for example, spot consulting. You sell it on a daily basis, and you focus on

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an efficient execution and a very precise and short-term billing. The third aspect is the "field services".

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Field and in-house repair. There the instrument of choice is not the project plan, but the service order.

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And for these scenarios, you also need the tight integration into logistics, because you pretty often may need spare parts.

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So these are the three aspects which we want to bring together and make available to our customers.

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This course here focuses on the project-based services. So there you will see a lot about the project management capabilities.

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The other two aspects will be covered in a subsequent course which we will introduce later this year,

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in Week 1, we'll give you, as you already see it, some of the background that you should have in mind

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when you attend this course. Week 2 will give you a holistic view on the process.

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So you see, basically, everything from preparing a project, selling the project, and delivering the project.

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Week 3 will then talk about the resource allocation part. The resource which you want to assign to individual tasks,

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the purchasing activities that you need to have, and all of the surrounding aspects.

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Week 4 touches more on the logistical aspects. One of the unique capabilities of Business ByDesign is that

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in projects, you can also purchase activities, but not only intangible goods, but also tangible goods.

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So you can say I want to run a project, and I want to order certain physical goods and attach it to my project.

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That is a key capability. Week 5 gives you more of the financial aspects

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and all of the integrations that you need to have. So we will look at cost, revenue, revenue recognition,

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and the aspects around that. With that, let me give you, as always, a quick look

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under the hood of Business ByDesign. As you know, Business ByDesign is a modeled solution,

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and here, you can see at the center of what we are doing, the project management capability here in the middle.

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And on the left, you see the integration into customer relationship management. At the top, you see the integration into financials management,

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and then human resource management, and even here, on the right side,

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the supply relationship management. The customer invoicing part at the bottom rounds off this picture,

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so here you see how the integration actually works, how we do the message integration between the different components.

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That much, as a short introduction to Business ByDesign, what we have prepared for you.

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Looking forward to seeing you in the next units. Enjoy this course.

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Thanks a lot.

Week 1 Unit 2

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Hello, and welcome to the second unit of Week 1. My name is Otfried von Geisau

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and I will be your instructor for the remainder of this week and the two final units in Week 5.

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The remainder of the first week focuses on the basic project management functionality.

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Project management functionality supporting an efficient project execution is not only key for the knowledge-based services

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that professional service providers offer, but also for companies from the other industries

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mentioned by Rainer in Unit 1. Before deep diving into the functionality in this unit,

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I will start introducing you to the ideas behind what Business ByDesign offers

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in the area of project-based services and how this supports the people using our software.

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When looking at professional service providers and other entities as lined out by Rainer,

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we identified mainly six roles that we wanted to support for project-based, order-to-cash processes in SAP Business ByDesign.

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In the presentation, we refer to them as personas. They are our project stakeholders.

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In the beginning, we validated our approaches for the whole order-to-cash process chain

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within a network of service providers, professional service providers, which helped us to gain a deeper understanding

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of the processes, tasks, and goals involved. In this slide, we annotated the roles with names.

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You will hear these names throughout the course, since these are the names of the

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employees of our model company. The model company resides in the reference systems

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that we will be using for our demos. The systems that we are providing for your exercises,

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as well, contain the same model company. Now, please meet our stakeholders.

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For C-level executive and partner, C as in CEO, Catherine Kennedy-Woods, for the CEO of Almika, Inc.

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Peter Sellers is a project manager. Greg Taylor in his role as resource manager.

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Roberta Johnson in her role as back office staff. Robert Ducan, a consultant.

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And Iris Green, our accountant. In the following slides, you will find a short list

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of our stakeholders' primary goals and tasks. The individual goals contribute to the overall company goals.

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Based on our discovery activities, we identified where support through software was needed and possible

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and to what degree that support is necessary. The result of this assessment is what we have listed as

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system support in the personas slides. Now, before we have a concrete look at our personas,

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I would like to point you to something that will probably be repeated sometimes in the weeks to come.

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The project-based services business, although the system artifacts that we offer

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are not that numerous, is very variant-rich. This applies both to the people

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as well as to the software involved. When it comes to the people, the stakeholders,

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for the sake of simplicity we made a clear distinction between the roles.

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The project manager manages his projects, the resource manager manages resources,

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the back office team member performs invoicing. In a real-life situation, however, you will most definitely find

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project managers also doing the invoicing or some project management office setting up the projects and many more variations.

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Partners leading projects, you name it. This introduces new variants

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professional service providers plan and execute projects and invoice their services to their customers.

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Thus, two companies could use the same software implementation, right?

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From real-life example, I can tell you, wrong. In the end, certain focus aspects

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led to quite different approaches, although both companies thought differently in the beginning.

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The good thing, however, is the system's able to support a wealth of variants unknown to us

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and does not restrain its users. We will show examples for this in the next units.

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Okay, now let's have a look at the concrete personas. C-level executive's Catherine.

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The tasks and goal we listed here are mainly of a nature that required deep insights into questions

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that you usually answer with analytics capabilities. Business health refers to loads of financial reports

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that ByDesign offers out of the box, as well as analytics reports that deliver information on

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how efficiently your company runs the implemented processes. The project manager, Peter Sellers,

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needs to work on everything related to projects. Plan them, execute them, monitor them,

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deliver on time, on scope, on budget, enable high-quality invoicing and bring

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internal and external stakeholders on the same and work to their satisfaction.

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How does ByDesign support project managers? Well, there's a rich project management functionality.

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For those project managers that like to manage projects on the go,

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we offer the Project Cockpit app for tablets. This allows the project leads

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to meet their teams and stakeholders while they have the information they need with them.

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Ingo will tell you more about this in the next week. And again, ByDesign makes information available at our personas' fingertips.

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All of the aspects I mentioned above are covered by analytics reports.

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The resource manager, Greg Taylor, he needs to ensure that projects in his area of responsibility

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can be staffed with "the right people". Meaning, with people with the right skills

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that lie within the area that the company defines as their core competency.

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However, this is not only related to internal employees. Especially quickly growing companies

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usually partner with other companies that have a workforce with complementary skills.

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Alternatively, freelance consultants are also among the people a resource manager regularly talks to.

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The resource manager also must ensure that, according to his company's plans,

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he makes sure that even in his quickly growing company, the workforce is available when needed.

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It usually is a mixture of internal employees, partner companies, and freelance staff.

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Of course, the resource manager must optimize his workforce's utilization

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to contribute to his company's profitability goals. The system supports the resource manager

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with a resource search and lean skills management to find the staff he needs.

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The resource availability calendar enables him to recognize conflicts when it comes

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staffing to different projects, for example. And again, analytics helps this time

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when it comes to utilization monitoring. Back office staff, this is Roberta, you remember

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We found their tasks being related to order management and project invoicing.

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And here I reveal some detail that Ingo will focus on in the next week.

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This order is somehow linked to the object that deals with rendering the services to the company's customers.

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For invoicing or billing, ByDesign offers a highly automated functionality with billing rules

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that can be adjusted to all individual customers' needs. Ultimately, project invoice requests can be tweaked

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down to the individual expense recording. Analytics reports allow the back office staff

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to monitor time and expense recordings and the billing process. Well, the consultant our consultant is Robert Ducan.

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He needs to render the services towards the customers, which he needs to do on time

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and to the satisfaction of the customer. And of course, as well,

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to the satisfaction of the project lead. It is essential that he records

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his times and expenses accurately and on time since only in doing so does he enable his colleagues

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to send out customer invoices in high quality and as soon as possible.

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When the customer can do nothing but accept the flawless invoice, this has a positive effect on the company's cash flow.

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ByDesign supports the consultant with workflows, information about the project he's assigned to,

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and his tasks in that project, as well as with a set of comprehensive sales services.

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The most prominent are time recording and creating expense reports. Analytics, again, supports him in monitoring his own work.

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And since he is mostly not on site at his own company, ByDesign offers extra mobile apps that he can use on the go.

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The aspects that we found worth mentioning for the accountant, Iris Green,

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although they are not customer project specific, are related to accounts payables,

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accounts receivables, and management accounting. The latter helping the company's C-level

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or senior management to validate that they are on track. Revenue recognition, which you will hear about in Week 5, is a must,

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and ByDesign offers a flexible and automated process. Loads of analytics reports in the financials area

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support the accountant to get her job done. Now, I already motivated why we did what we did.

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We grouped the individual goals of our personas by company-wide goals. Out of these, we focused on growth, liquidity, and profitability.

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I will not read the individual goals and who contributes to which company-wide goal.

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I would rather like to point you to the conclusions which we came to with respect to what we needed to develop in Business ByDesign.

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This is what you find on the next slide. Now, again, we listed the company-wide goals

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and annotated them with what a software system can do to support these goals.

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We also weighted the goals and identified the areas that needed more invest than others.

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And this is really the key point to understand on this slide. It is not about where we need to invest and where we do not need to invest.

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It was about where to focus the invest. If your system, for example,

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does not support the service delivery in an efficient way, it is not worth discussing billing topics.

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It is more about a sweet spot within the functionality that we offer for project-based services.

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And there, our finding was that we should focus on billing. What convinced most of us was a meeting

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which turned out to be a synopsis from the meetings with other professional service providers that we had before.

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Their CFO's statement was: Otfried, cash flow is We are a professional services provider, not a bank.

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We need to be able to send out correct invoices to our clients as soon as possible.

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They will only pay when there is no dispute on the content of the invoice.

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Thus, we invested heavily in the project invoicing capabilities of ByDesign

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and the flexibility required in this area. Ingo will give you a deep insight into this topic in Week

2.

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With our project management capabilities, we can support organizations delivering their services

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in an efficient manner, with functionality available both the desktop as well as mobile apps.

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In resource management, we chose to offer a leaner functionality. In Week 3, Sandeep will share with you what we already have

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and what is currently under controlled availability. The one topic that goes through all goals is analytics.

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It is really an overarching and most important topic that our development organization constantly enhances

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with new features and functionalities. A powerful analytics engine based on a HANA in- memory database

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is simply the way to get real-time insight. This engine, of course, needs content.

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Most of the relevant content is available as of now. Talking about new features, we will have a look at

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the new tile capabilities in the launchpad and the overview screens in the demo

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to show how we support the stakeholders mentioned. Now, let's go for the demo.

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I am now logged on with Catherine Kennedy- Woods, who is our company's CEO.

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And, well, she's got the usual launchpad here and she extended it by herself

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with a few tiles that were important to her on improved profitability. So she sees the gross profit on sales,

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operating profit margin, maverick spending, outstanding amount for accounts payables.

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She sees the net sales revenue, the A/R overdue amounts, the accounts receivables,

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and also aging aspects for receivables. Then she can see her headcount, the cost of goods sold,

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and utilization of her consulting unit. And there is one project which she is especially interested in,

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which she put here in the very last line, which is a project for Peter Sellers.

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And then there she has a look at how much has already been invoiced, what the costs are, and what the project margin

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So this seems to be a hell of a project in terms of margin, while the other figures are maybe a bit questionable.

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Now, let's go to the next role to see, or the next stakeholder, to see how ByDesign supports him.

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And this is now Peter Sellers. So in our model company, his user is projectsO1s.

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And, of course, he has also the launchpad. And, well, he introduced for himself a few key project KPIs.

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So, billed amount projects in his cost center, project costs, project margin, time recordings of his team for the current month,

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which is the not-yet-invoiced time recordings and expenses to customers.

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So for his cost center, for example, it looks okay-ish here, so it's yellow.

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The scale here goes from green to yellow to red. Whereas, with respect to his project,

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he should probably do some billing sometime soon. Okay, talking about overviews.

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So you saw, when you go to the launchpad, the launchpad is immediately there

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because intelligent caching algorithms are employed. And now we're on the overview page.

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So also, the reports are cached here. But let's have a look at them now.

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So Peter is, obviously, interested in project performance, invoiced project revenue, and he is, of course, also,

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and you remember what you saw on the launchpad, he's also interested in billing.

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So what has already been invoiced, what has not been invoiced.

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He's also interested in the revenue contribution of his staff, where he can, for example,

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see that, well, he invoiced

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45,000 in a certain timeframe and had to write off 10,000. This is probably something that he should think about. And there is still something more to invoice.

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Okay, with that, let's switch to the next persona. The next persona is Greg Taylor.

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And his user is directorO1s. So you will also meet these users in your demo tenants

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and will also be aware of their usernames by then. Greg is our resource manager, so he has an additional role.

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He's heading the unit to which Peter's unit belongs. He's a consulting manager.

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For his resource management work, he has a look at his reporting line unit's time recording

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for this month, last month. He has a look at the utilization of his consultants.

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And also at the forecasted utilization. And, of course, again, he's also

00:16:51

interested in his own performance. So okay, for last month his time recording is done.

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For the current month, which only started two days ago, he hasn't done any time recording so far.

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With that, let's go to our next persona, which is Roberta Johnson. Roberta Johnson's user is

salesO1s.

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Oops, sorry, a typo in there. Okay, and since, in her role as back office staff,

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she's interested in billing. So she also put some key performance indicators

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on invoiced project revenue, of the still-to-be-invoiced amount for all projects,

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has a look at the overall time recording because for, in her role as back office staff,

00:17:54

preparing invoices, it's important that she knows that really everyone has done time recording.

00:18:00

And she also has a look at the overdue amounts with respect to customer invoices.

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Well, the next role is Robert Ducan. And his user is consultant02s.

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And you see, he has only a few work centers here. So he also has restricted functionality here,

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but he decided to have a look at his time recording for this month

00:18:38

and chose to add new starting points to his launchpad. The last role we're going to have a look at is Iris Green.

00:18:52

Iris Green's user is financialO2. Okay, so, she, of course, has a lot of aspects to cover.

00:19:09

The one aspect is accounts receivables. So she has a look at the overdue amounts,

00:19:15

some aging aspects, and she also has to take care of accounts payables.

00:19:20

So again here, overdue amounts and outstanding amounts. And she chose for some periodic tasks to

00:19:37

the presentation and summarize. I introduced you to the value proposition of

00:19:41

SAP Business ByDesign for the project management stakeholders in our customer base and how we got there.

00:19:50

Thank you for the time being and see you in the next unit.

Week 1 Unit 3

00:00:07

Hello and welcome back to Unit 3 of Week 1. In this unit, I would like to discuss the question

00:00:12

"What is a project?" I will guide you from what the essence of a project

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through different use cases, to what it means when considering cost and revenue aspects.

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The idea of this course is, of course, not to introduce you to project management methodologies.

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This is something you will have already learned somewhere else. The intention is to give you the overall picture

00:00:36

with respect to Business ByDesign. So again, what is a project?

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In this course, you will hear a lot about all the terms that we depicted in the cloud tag on this slide.

00:00:48

I would like to motivate why some of the terms are here. For that, let's have a look at some of the important project characteristics.

00:00:55

Scope. First of all, the scope of a project needs to be defined. Period.

00:01:00

Usually the scope is complex so that you need to plan how to deliver on it. So if we take, for example, consultants.

00:01:08

They will work on projects since, for example, implementing software is usually something that needs

00:01:14

dedicated planning and is not a routine operation that you would always do the same way.

00:01:20

The same consultants, in many cases, also do spot consulting,

00:01:23

where they render their services in a short, well- defined time frame. The latter does not necessarily require a project,

00:01:31

and if you remember the slide Rainer showed in the first unit, we would rather consider this being a standardized service.

00:01:39

However, you will also find companies that do sell spot consulting through projects

00:01:44

since they want one and the same process for all of what they deliver.

00:01:48

Scope can comprise the services to be rendered, the product to be delivered, or even an outcome.

00:01:55

Closely related to the scope is the timeframe. The project needs to have a well-defined start and end date.

00:02:01

The expectation is that once the agreed timeframe has passed, scope has been delivered in the agreed quality.

00:02:09

A project requires staffing. The resources are assigned to the project

00:02:13

for the duration of the project, or maybe a shorter timeframe,

00:02:17

and they form a dedicated project team. Usually there's an agreement between the project

00:02:23

and either the resources line managers, or their responsible resource managers,

00:02:28

how many units of service the people are to render within the project timeframe. Resources may come from the very unit running the project,

00:02:38

or even from different organizations in different legal entities across multiple geographies.

00:02:45

Resources, of course, do not come for free. There are costs associated with them rendering their services.

00:02:52

For internal resources, the major cost driver is simply their salary.

00:02:56

For external team members who usually work on a purchase order,

00:03:00

the purchase price determines the costs. But beyond resource costs, there are other costs

00:03:06

which need to be considered. Most prominently, travel expenses.

00:03:11

The budget is something that is better not exceeded since it reduces the company's margin.

00:03:18

Especially for larger projects, which may pose a considerable risk,

00:03:26

the planned costs need to be approved by some steering committee. The costs are then closely monitored,

00:03:33

and compared with a baseline that was agreed upon, and against which the project lead is measured.

00:03:41

Which, at the end of the day, leads to a higher or lower bonus for the project manager.

00:03:46

While talking about the project characteristics, you heard me talking about the project manager,

00:03:52

the resource manager, the customer, the project team member. They are all stakeholders for the project

00:03:58

and there are many more in and outside the company running the project whom I did not mention.

00:04:04

The project lead needs to ensure that all their diverse interests are taken care of

00:04:09

to achieve the intended project outcome. In ByDesign project management,

00:04:14

we deal with some of these characteristics in a modeled fashion. When you, for example, look at the timeframe,

00:04:20

we have start and end dates for this in our business object project.

00:04:24

A business object, in case you have not yet heard this term before, is a technical artifact in SAP Business ByDesign

00:04:31

that represents a well-known entity in business life. You won't be surprised to learn

00:04:36

that we have a business object project as well as a sales order and a customer invoice,

00:04:41

to only mention a few. We, of course, also have modeled employees resources,

00:04:47

their staffing to projects, the services they render, and the planned and actual costs associated with this.

00:04:54

As to the scope, we did not explicitly model the scope. But you can attach documents to the projects.

00:05:00

Thus, if you attach a project charter to the project, you might consider this a scope definition.

00:05:06

If, however, for your very business it is very easy to define a scope within a few fields,

00:05:11

then you might want to use the extensibility features that Rainer mentioned in Unit 1.

00:05:16

And attach the relevant fields to the business object project,

00:05:20

and include them in analytics reports as well. You then have a fully modeled solution.

00:05:26

When it comes to risk management or stakeholder management, this is nothing that we offer in ByDesign.

00:05:32

Okay, we have risk indicate in the project, but I do not consider this as risk management.

00:05:38

But you could, as well, consider introducing tasks in your project that deal with risk management and stakeholder management.

00:05:45

We offer checklists in projects which you could use to define criteria to consider

00:05:50

when dealing with different stakeholders. Would you then consider this as ByDesign offering stakeholder management?

00:05:57

Some might others, maybe most of you, would The point here simply is,

00:06:02

and please remember what I told you in the last unit, the number of business objects that project management in ByDesign offers is not that large.

00:06:10

But the variance comes in through yourself and your ideas which make your projects unique.

00:06:16

Now for the second part on this page. The phases in the lifecycle of a project.

00:06:22

This is all offered in ByDesign. We can, of course, create projects and plan them,

00:06:26

the final optional step of this being a base line and its approval. And this is followed by project execution,

00:06:34

and finally, project closure, accompanied by controlling and monitoring capabilities.

00:06:47

But as you can see from this table, we support several use cases with project management in ByDesign.

00:06:53

As far as terminology is concerned, and this is something that you will find

00:06:57

in both the system and the documentation, we have process variant types and project types.

00:07:02

The process variant types are only exposed in the business configuration.

00:07:07

They define the features that a project supports when it is of a certain process type,

00:07:12

as well as how financials deals with the respective projects. The end users the project leads, for example will deal with project types.

00:07:20

Okay, so let's start from the top. Out of the box, we deliver two project types for customer projects.

00:07:26

The first is customer projects with sales integration. This is the project type for selling projects to your customers.

00:07:34

In the configuration, you can of course define your own project types. As an example, let's assume you want to monitor projects by t-shirt sizes:

00:07:42

small, medium, large, extra-large. Since the project type is, of course, available in the reporting,

00:07:47

you would then set up four project types: customer project small,

00:07:51

customer projects medium, and so on and so forth. And assign the process variant customer projects to them.

00:07:58

When talking about resources, I mentioned that they can come from everywhere in your organization.

00:08:04

Just consider, you have two companies in the holding, in two countries. Employees from the one company, let's call it Inovert,

00:08:11

since this is exactly the name of one of our model companies that we are using in our demos.

00:08:16

This guy is now working on a project in the other company, Almika. Then you have a case of intercompany service provisioning.

00:08:23

You will learn everything about this use case in Week 4. While selling projects will be on the agenda in the next week, Week 2.

00:08:33

I will talk in detail about the remaining process variant types and more use cases in the last week, Week 5.

00:08:40

I will only give a quick introduction here. So, we have multi-customer projects.

00:08:45

They are used whenever you have a one-time effort, which, for example, results in some product that you then sell multiple times

00:08:52

in an unchanged fashion to many customers. Say you prepare some documents and then

00:08:58

sell it to whoever approaches you and wants to buy them. Other scenarios are events.

00:09:03

You prepare an event, say a concert, and collect all costs on the project and then

00:09:07

consider revenues from ticket sales, merchandise sales, and so on and so forth.

00:09:12

Overhead cost projects have a specialty. They always have a balance of zero.

00:09:17

They collect costs, but they directly reassign them to the requesting cost center. You cannot assign revenues to those projects.

00:09:26

If you want to run an R&D project, you would use a direct cost project that, in exceptional cases, can also

00:09:32

have a customer associated and customer invoices assigned. As said, we will explain this in Week 5.

00:09:43

If you now ask yourselves, and maybe you still know the old SAP R/3 or the Business Suite,

00:09:52

where are the internal orders? Well, we don't have internal orders in Business ByDesign.

00:10:01

And the reason why I'm asking this question is, very often in the Business Suite,

00:10:12

These internal orders did not support some of the features projects were able to offer.

00:10:17

So you were always struggling back and forth, "Do I need an internal order, do I need a project?"

00:10:24

Especially if you wanted to grow an internal order, you were lost. Thus, we decided, okay, there's not going to be

00:10:31

any internal order in Business ByDesign. Especially since the internal orders were an invention of SAP,

00:10:37

and prior to us introducing them many years ago, you did not find them in any textbooks.

00:10:43

So, to make it short, no internal orders in project management in ByDesign.

00:10:49

Take projects, take the other project types for that. Okay.

00:10:56

Since I've been talking about costs and revenue a let me show you how ByDesign projects

00:11:01

are related to costs and revenues. Costs.

00:11:04

When you look at this picture in the upper lane, you see cost centers in the middle.

00:11:11

When consultants do time writing for projects, the respective project is debited, while the cost center is credited.

00:11:18

This is the blue arrow from the cost center to the with the different project processes.

00:11:25

Or process variant types. Depending on the process variant type,

00:11:30

costs are either recorded as cost of goods sold in the sales subledger as overhead costs,

00:11:36

immediately being balanced and being reallocated to the requesting cost center, or as expense.

00:11:42

For overhead costs, you have distribution and absorption mechanisms between cost centers and projects,

00:11:47

indicated by the golden lines here. And this is something I will explain in Week 5.

00:11:56

Other sources of costs in the upper line are costs supplier invoices, expense reports, or other direct costs.

00:12:04

If a project consumes materials from stock, this also debits the project with inventory costs.

00:12:13

And now for the revenue part. As already mentioned,

00:12:16

customer projects are the right process variant when it comes to selling projects to customers.

00:12:21

This leads to sales revenues. The arrow from the project pictogram, the green

00:12:27

shall indicate that the customer invoices are created based on information of project accounting time and expense recordings.

00:12:36

Direct cost projects also support the "project invoice request", but result usually in other revenues and not in sales revenues.

00:12:46

Multi-customer projects do not need a project invoice request since the intention is to sell. For example, please remember the use case I mentioned before: tickets for an event.

00:12:58

Here the invoices will be based on a sales order and not a project. For direct cost projects and multi-customer projects,

00:13:05

you can create manual invoices as well. Whereas, overhead cost projects never have revenues.

00:13:14

Now, I would like to be a bit more specific about the origin of costs for the individual process variants.

00:13:20

I already mentioned time or service confirmations. When you record a time for a project,

00:13:25

you always have to mention both the service you rendered and the task for which you worked.

00:13:30

Service costs can be attributed to any process variant, as well as material costs, or other direct costs

00:13:37

coming, for example, from supplier invoice and expense report, or by creating

00:13:47

the capabilities by process variant are a bit more complicated.

00:13:51

But you will learn more about this, as said, in Week 5. The revenues part of the table visualizes what I told you

00:13:58

on the previous slide on project-based invoices. Say it's order-based invoices and manual invoices.

00:14:04

You will see this slide again multiple times, so just to help you memorize what the different process variants in ByDesign support.

00:14:15

Now I would like to go for a quick and short demo. For this I am logged on with an administrative user.

00:14:22

The administrative user in our case is Eddie Smoke. And I restricted the work centers

00:14:29

which are currently being shown here in order not to overwhelm you.

00:14:33

So we have here the business configuration work center. When you go there, you see we have an implementation project.

00:14:40

In the implementation project we can define the project scope. And don't mix up this project with project management.

00:14:47

This is an implementation project. And when it comes to the project scope,

00:14:53

this is something Ingo will explain in a bit more detail next week. I would, or I have now opened the activity list,

00:15:02

and searched for the fine-tuning activities with respect to project. And you see here, we have an activity group Project Management, which has project types.

00:15:13

So, I opened the project types, and in the end, this is the table which I showed you in my presentation.

00:15:21

So you have here the process variants and the process types which are then exposed to your user.

00:15:30

As said, we have, for example, research and development projects here in line 23. They are for direct cost projects,

00:15:41

so they are direct cost projects. The user, the project lead, will see this as research and development projects,

00:15:48

and when a project gets created, it will be provided with a prefix RD.

00:15:53

You can also define separators to your liking. You can define a default language for the project,

00:16:02

a default unit if you want to deal with hours or working days. If you're dealing with working days,

00:16:08

you have to define how many hours there are per working day. So this may vary per country.

00:16:14

And you have a few additional indicators, so if this is an inter-company project, so you see here, at the bottom, we have an inter- company project

00:16:25

which, in the end, is a customer project, but a special customer project, and Carsten will tell you a lot about that in his week,

00:16:33

when he comes to company service provisioning. And we can already influence some capabilities

00:16:42

of the projects here when it comes to approval of time recording, approvals of base lines,

00:16:48

and whether or not an automatic snapshot gets created upon status changes.

00:16:56

Now

that concludes my demo for this week. Next week, I will show you what this really looks

like for Peter Sellers, our project lead.

00:17:12

In summary, in this unit, Unit 3, I introduced you to the characteristics of projects,

00:17:18

their typical use cases, and what ByDesign offers to support the different use cases.

00:17:23

In addition, we had to look at the project-related value flow in SAP Business ByDesign.

Week 1 Unit 4

00:00:07

Hello and welcome back to Unit 4. This unit is about functionality that ByDesign project management

00:00:14

offers to create and plan projects. Let me first talk about creation.

00:00:20

There are different ways to create projects in ByDesign. You can, for example, start with a template

00:00:25

which you copy over to your new operational project. If standardization is on your agenda, this is the way to go.

00:00:32

You can also use existing operational projects to create new projects. This way, you can immediately build on the learnings that you had in prior projects.

00:00:42

You could also start with creating a project from a Microsoft Project XML file.

00:00:47

Alternatively, you can, of course, also start from scratch. The information that we capture in the project

00:00:54

are only mentioned for your reference here. In the demo, I will go into the details.

00:00:59

To come back to the template, for template creation, you have the same options as for operational project creation

00:01:06

but for the MS Project upload functionality. When you open the project, the screen that appears is the Gantt chart view.

00:01:19

Let me explain what you see here. On the left-hand side, you see the project

00:01:23

with its phases, tasks, and milestones. The triangle represents the project itself,

00:01:29

sometimes also referred to as "project summary task". A phase is represented by a chevron,

00:01:36

the task by a circle, and the milestone by a diamond. And, by the way, one of the nice things in ByDesign project management

00:01:44

is that the project, the phases, and the tasks are all in the end tasks,

00:01:50

and with that, offer the same basic functionality. For other projects that we created earlier at SAP,

00:01:56

we made a distinction between networks and WBS elements. We don't have that distinction in ByDesign any more.

00:02:02

We offer both a network view and a WBS view to cover the different needs, but, for example, costing or scheduling for each of the entities works uniformly.

00:02:13

The intention of having phases as a task type is to be able to prominently structure the project

00:02:19

in a way that maybe it represents deliverables in your project. When you look at this project here,

00:02:25

this is a software implementation project, and you may consider each phase as delivering something.

00:02:31

With the Project Set-Up phase, you will have delivered the kick off workshop to the customer,

00:02:36

the Blueprint phase results in a document the customer needs to sign off, the Realization covers the doing for the implementation, and so on and so forth.

00:02:46

When you look at the chart side of this slide, you see a visualization that displays the tasks with their respective durations,

00:02:55

and their mutual relationships, or "dependencies" as they are called in ByDesign. The position in time is determined by network scheduling,

00:03:03

which I will explain later in this unit. As mentioned earlier, we don't make a distinction

00:03:11

between hierarchically ordered objects and network-like objects. We have tasks.

00:03:16

Tasks can be ordered hierarchically, and this is something that you see in the WBS view on the left-hand side.

00:03:22

WBS standing for Work Breakdown Structure. Since you can connect tasks using dependencies,

00:03:30

you can also structure your project from a sequence perspective. This is something that you can see in the network

00:03:37

on the right-hand side, in the project UI. Now let's have a look at scheduling.

00:03:44

Scheduling determines what the chronological sequence of tasks in a project is. The technical way scheduling is performed

00:03:52

is that the tasks are topologically sorted, meaning that they are brought into sequence

00:03:56

that allows an algorithm to work on the list from top to bottom, to determine the respective

00:04:01

start and end dates of all the tasks. The approach is, take the start date of the current task,

00:04:08

add the duration, considering working time calendars, of course, and thus come to the finish date.

00:04:14

Then consider the dependency and a possible lag within that dependency to determine the start date of the next task,

00:04:20

which then becomes the current task, and so on and so forth. This is known as "forward scheduling".

00:04:27

Once you've arrived at the end of the task list, the system then switches from forward scheduling to backward scheduling.

00:04:34

You then have to exchange start date and finish date, and finish date with end date. Thus, you end up with two sets of dates:

00:04:41

the earliest dates from forward scheduling, and the latest dates from backward scheduling.

00:04:46

You can, for example, see the effect of backwards scheduling when you look at the gray task in this slide here,

00:04:52

but I will also show this in the demonstration. The task is shorter than the red task above it,

00:04:57

thus, once you have determined the dates for the red task, ending on Saturday, the gray task is next.

00:05:03

And since, in our example, the lag between the two tasks is zero, the gray task ends on Monday, since this is the calculated "start date" for the backward scheduling.

00:05:15

Now, why are there red tasks and gray tasks? The explanation, once you've understood forward

00:05:21

and backward scheduling, is very simple. The tasks on the critical path are marked in red.

00:05:26

Critical path means that forward and backward scheduling lead to the same earliest and latest start and end dates for a task.

00:05:34

For the gray tasks, however, there's some slack. Thus, if you have a look at it from a project end date perspective,

00:05:41

a delay in tasks on the critical path will lead to a delay of the project itself, whereas when you look at tasks with slack,

00:05:49

depending on how long the delay is, this does not necessarily lead to a delay in the project.

00:05:58

More about this in the demo. Which is to come now.

00:06:06

Well, I'm logged in with Peter Sellers, our project lead, and we are in the Project Management work center,

00:06:16

and in the worklist Projects. In the worklist Projects, you can then create new projects.

00:06:23

So New, Project, and now you will see what I just mentioned: You have to choose the project type.

00:06:30

So the project type remember what I told you in the last unit is connected to the process variant.

00:06:37

And if, for example, you choose a research and development project,

00:06:52

We can go for an existing project, so to learn from our past experience with dealing with real projects,

00:06:59

you can upload a Microsoft Project XML file, you can start from scratch,

00:07:04

or you can use a template. For now, let's start from scratch,

00:07:13

and you get to a guided activity, where you now have to fill in a few project details.

00:07:18

Of course, you need a project ID, you need a project description: "openSAP demo".

00:07:26

You have a status, the project can be in planning, later it will be released so that people can work on this project.

00:07:34

Once you've finished a task or a project, so statuses are offered on each and every task,

00:07:41

you can complete the task, and when it comes to financial closure, as well, you can also close the tasks.

00:07:48

You can also consider situations which are more complicated, where, for example, the project

is

not running well,

00:07:54

or the customer has some issues with the project and you have to stop it, or you can block it.

00:08:00

You also need a person responsible, so that's of course me, Peter Sellers.

00:08:05

You can fill in a description, and something which you already saw in the configuration for the project types,

00:08:12

which you can overwrite here: You can define whether or not in your project

00:08:17

you would like time recordings to be approved. And this is used by a lot of customers

00:08:24

you can define whether or not a work description is required, which, in the end, can then be handed over to your customers.

00:08:32

As said, there has to be a responsible unit for the project, which, in this case, is the org unit that I, Peter Sellers, am heading.

00:08:43

Then, as said, this is a direct cost project. There may or may not be a customer.

00:08:48

So if you need to attach a customer, you have to do it here. And you can fill in the profit analysis attributes here,

00:08:58

which I will explain in more details in Week 5. Good, then in the next step, you define the team,

00:09:07

so since I created the project and assigned myself as project lead, I am already part of the team.

00:09:13

I can add additional team members here. And in the next step, I can review the project and then finish it, which saves it.

00:09:23

And if I now clicked on this link here, it would take me to the project UI. I would, however, do it

a

bit differently,

00:09:32

so I've prepared a few things here. Let me have a look at a slightly more elaborate project,

00:09:41

which I created from a template. So, we are now in the Gantt chart view of the project.

00:09:49

As said, we have the project summary task here. We have phases: Project Set-Up, Blueprint, Realization.

00:09:56

We have tasks: Preparation, Write Blueprint, set up the software, build interfaces, do some testing, and so on and so forth.

00:10:05

And we have milestones. The milestones, as explained before, for example, this kickoff here

00:10:14

is to document towards our customer that we have performed that meeting. He can also sign that off,

00:10:20

and especially when it comes to the blueprint, a customer can sign off the blueprint. When it comes to the other information which you see in here,

00:10:28

this will be part of the next unit. I would now like to quickly show you what we have here

00:10:34

in terms of work breakdown structure. So you see here, since the tasks have a hierarchical relationship

00:10:50

And, by the way, it's quite simple here. If you need, for example, another phase,

00:10:55

and phases can be subordinated either to the project summary task or to a phase, you simply drag and drop phases, tasks, or milestones into this view,

00:11:11

and can then edit the required data below here. In addition, we have the network diagram view,

00:11:19

where you can see how the sequence of tasks defined through the dependencies between the tasks can be envisioned.

00:11:33

And now for the second part of the demo, let me go back to the object work list.

00:11:37

Now let's have a look at a simple tiny project here, which already has the name "Project for scheduling" demo.

00:11:44

So we have four tasks here, and you may remember this picture from the slides I showed you.

00:11:51

This is just to explain to you how scheduling works here. So let me focus on this.

00:11:58

You see here, we have tasks 1, 2, and 4, which are in the critical path. We have comes to scheduling,

when it

00:12:08

we introduced a calendar, general calendar with seven working days, so this means,

00:12:14

when, for example, you have a look at the first task here, this takes five days, and the next one 10 days, starting from Saturday.

00:12:23

Since the calendar which we've been using doesn't consider any vacation time.

00:12:27

So if now we change the calendar to a meaningful say, to "USA with five working days",

00:12:34

since the project is not yet released, it gets automatically scheduled.

00:12:39

This is going to change once it's released, because you don't want to change everything

00:12:44

with respect to scheduling once you've already started and there's a minor delay, so this happens automatically, while still in planning.

00:12:54

And obviously on Monday, there's a holiday, so the next task starts here on Tuesday,

00:13:00

goes for 10 days, one, two, three, four, and five, and one makes 10.

00:13:05

And then the next task is attached here. When we now have a look at the task and go to the Dependencies tab,

00:13:16

you will see here that this task has a finish-to- start relationship to task 3, which is this one here,

00:13:26

and it has a finish-to-start relationship to task 2, which is the upper one here. The kind of dependencies, or the type of dependencies we offer

00:13:37

are the usual dependencies you would expect when it comes to network scheduling. So we have finish-to-finish relationships which really start at the end of the first task

00:13:47

and go to the beginning of the next task. You can also have finish to finish, start to finish, or start to start.

00:13:59

And as also mentioned, you can have a lag between the respective tasks, so you could, for example,

00:14:05

introduce a day here, and then you would see that task 3 is now shifted one day to the future.

00:14:15

Okay let's go to 0, because I want to make it as simple as possible for explaining scheduling.

00:14:23

You see here, we now have a look at the earliest dates. So the scheduling works as explained before.

00:14:29

You start here, find out, okay end is here, next tasks are to start here.

00:14:35

Then, since this is forward scheduling, both tasks start here. The upper one has a longer duration,

00:14:44

and thus, since there's a relationship finish to start between these two tasks here,

00:14:59

In this case, you start scheduling from the end. So backwards scheduling gave us the information

00:15:06

the project is starting on this very day here, which is the 6th of March.

00:15:11

We go back and then, since this is now backwards scheduling, this task which has slack in backwards scheduling,

00:15:18

starts at this very date. Okay, and so on and so forth.

00:15:22

And with that, you determine the respective dates forward: the earliest dates and the latest dates.

00:15:30

What you can do in addition, is you can set constraint types and dates, depending on whether

00:15:37

it's forward scheduling or backward scheduling. So you have the start constraint type for forward scheduling.

00:15:45

So "Earliest possible" is the default, this is not a constraint at all. But you could also introduce a constraint "Must start on/at",

00:15:55

so independent of what the other tasks would sort of behave like, the start date of this very task,

00:16:02

would always be on the date which you specified here. And there are similar finish constraints

00:16:08

when it comes to backwards scheduling. So "Latest possible" is the default.

00:16:12

You could also indicate a certain task must end on a certain date, or must not finish before a certain date,

00:16:20

or must not be finished later than a certain date. You should also keep in mind that once you've started

00:16:28

a project, and once time recordings have been affected, actual start dates would also be considered a constraint.

00:16:35

Well, this now concludes the demo for this unit. Let me go back to the presentation and summarize.

00:16:42

In this unit, I presented to you what artifacts we're using in project management in SAP Business ByDesign,

00:16:49

and the views which we offer in our project UI. And, in addition, I introduced you to scheduling in project management.

00:16:58

See you in the next unit, goodbye.

Week 1 Unit 5

00:00:10

Hello, and welcome back to Unit 5. This unit is the second part about functionality

00:00:16

that ByDesign project management offers to create and plan projects.

00:00:21

When talking about project characteristics in one of the previous units,

00:00:25

time and duration was one aspect. Other aspects were costs, resources, and scope.

00:00:32

On this slide, you see where you find them in the project UI. Time equals duration,

00:00:38

we already discussed in the previous slides in one of the previous units.

00:00:42

And, now for scope. Scope is related to the quantity of services

00:00:46

that get rendered within the work packages of a project. One of the work packages is displayed on Work tab in the project UI.

00:00:55

Planned project costs consists of three parts: first, work costs. Work costs are the planned work hours

00:01:01

multiplied by either a resource cost rate or a service cost rate.

00:01:06

Ingo will introduce you to the valuation sequences for both planned and actual costs in Unit 1 of Week 5.

00:01:15

Second: material costs. Next to services, you can also plan materials

00:01:20

either non-stock or stock materials in a project. The valuation of the planned quantities

00:01:25

then leads to material costs. Expenses are directly planned as values.

00:01:31

The resource aspect is covered on the Team and Staffing tab in the project UI. Please note that we allow both internal employees

00:01:40

and service agents to be staffed to the projects. In this example,

00:01:44

Charly West comes from a supplier of Almika's, and John Tompson from Innovat,

00:01:50

which is covered in an intercompany scenario, since Innovat and Almika in our model company

00:01:57

are companies in one holding. Another feature that helps to standardize processes is to use checklists.

00:02:07

Checklists offer very simple status management, with statuses reflecting whether a checklist item

00:02:13

is still open or has been dealt with, and is okay or not okay,

00:02:17

or maybe even not relevant for this very project. The rationale for the statuses can simply be maintained as a note.

00:02:27

Up to now, we only talked about operational projects. Once you're done with the project creation and the planning,

00:02:33

you release it so that the people planned to do the work can really start rendering their services.

00:02:40

If need be, you can adjust the project. Once the scope has been delivered,

00:02:45

a project then gets completed, and you can no longer perform work with respect to that project,

00:02:51

because you simply can't do time recordings. Once all postings with respect to that project have been done,

00:02:57

you would close the project. Depending on the scope criticality or planned costs,

00:03:05

you may decide to use project baselines. Baselines, once created,

00:03:09

are changeable until agreed upon, and then, after an approval, are locked for changes.

00:03:16

Should anything unforeseen happen, or a good case the customer wants to extend the scope,

00:03:21

a new baseline can get created, and after approval, replaces the previous baseline.

00:03:35

project snapshot is the functionality to go for. There are runs that allow you to schedule regular snapshot creation,

00:03:43

and there are, of course, analytical reports that allow you to evaluate both baselines and snapshots.

00:03:49

With that, let's now go for the demo. Okay, I'm now logged on with Peter Sellers, our project lead.

00:03:59

And I would like to show you what I told you about on the previous slide, in an operational project.

00:04:06

So, my project is CPSO6. It's some software implementation,

00:04:12

which we already met in one of the previous units. I would now expand the whole project

00:04:19

and talk you through all the relevant features. So, the duration is the first, in the basic filter,

00:04:27

which you see here, which comes up when you open the project UI.

00:04:32

You then see the duration for each and every task here. We already discussed this in detail

00:04:37

when talking about scheduling. The next topic, then, is work.

00:04:42

Let's go, for example, to this preparation task here,

00:04:46

and then we go to the Work tab. So, we see here,

00:04:50

different people are staffed to that task. Since it's the preparation task,

00:04:56

which is followed by the kickoff milestone, the four team members which we have in this project are all staffed,

00:05:03

and they are planned with a certain amount, or quantity of work. So everyone: four hours.

00:05:10

They already started working on the project. And Ingo will tell you all about project execution.

00:05:16

But just to show you what it looks like here in the project UI, we also see the actual work here,

00:05:24

where Tonia Gartner recorded five hours instead of four. In addition, we also see the costs here,

00:05:31

and Ingo will tell you all about costs in Unit 1 of Week 5. So we see the cost rate for the individual persons here, and the total cost.

00:05:43

What you can also do is display the history. So, in this case,

00:05:48

with Peter having done one time recording, you would see, okay, the provision date for this service was February 6th,

00:05:56

and it was created on February 15, and he confirmed four hours.

00:06:03

You could as well, if necessary, so, for such a short task,

00:06:07

this is not necessary, but when, for example,

00:06:09

you consider, especially the software setup task here, which takes 13 days, you might want to consider editing period plans,

00:06:18

where you can really define subdivisions below task level. So, let's assume you have a lengthy task,

00:06:26

and one of the guys only has to do a few days of work in the very beginning, and a few days of work at the very end.

00:06:32

In that case, you would introduce period plans here. Okay, in addition, we also have the Remaining Work here, which is worth mentioning.

00:06:45

And this is so since, when you start working, so you have planned four hours and you're recording, say, two hours,

00:06:52

in that case, the system would simply derive the remaining work, planned minus actual, equals remaining: two.

00:06:59

But then, as usual, something goes wrong, and you have to do more work,

00:07:04

or maybe you're even very good and you have to do less.

00:07:06

In that case, you can manually adjust the remaining work.

00:07:16

So, whenever you then do an additional time recording, which is valid for a point in time before that date,

00:07:24

the remaining work will not be affected. If, however, you then do a time recording

00:07:29

behind the date for which you created the remaining work information,

00:07:33

the system will, again, start subtracting the work. One important aspect here is valuation does not come automatically.

00:07:46

And when I talk about valuation, it's about the cost information that we have here.

00:07:51

There's a Valuate button, so you have to press this one time in the very beginning,

00:07:56

to really get the valuation started. Okay, the next thing is materials.

00:08:06

We switch to the Materials tab. And it turned out, for some reason,

00:08:09

the monitor in our meeting room was broken, so we needed a new monitor.

00:08:13

We planned it here, obviously, didn't record the consumption so far.

00:08:18

But this also leads to a cost rate. And to have an overall picture,

00:08:25

we can, for example, go here, change the Show filter,

00:08:31

and then you would see, aggregated at task level, we have a certain amount of work cost, which is USD 1,520.

00:08:41

And you see the USD 463.33 from this material here. Then, switching to Expenses,

00:08:49

and since this is the task where people needed to travel, we planned, well, something for meals and for lodging,

00:08:56

and this also shows up here. Okay, you have further work filters here:

00:09:05

Scheduling. So you would see all the information

00:09:09

on earliest start dates, latest start and finish dates,

00:09:13

and so on and so forth. You have an All option,

00:09:17

which would really show you all. But my recommendation here would really be,

00:09:20

and then that's why we start with basic, it takes a bit more time to really retrieve

00:09:26

all of the information, so I would always choose the suitable aspect here.

00:09:33

And you also have information on work. So we would see here, remember, this task,

00:09:39

four people were working on it, four hours each, and, so, this makes 16 hours, and they recorded 17 hours.

00:09:48

And now, one interesting thing is the Standard tab here, where you would see that you have checklists attached.

00:10:03

And I think I do have a checklist attached. I'm a bit astonished here.

00:10:09

So, I don't have it. Then let's do it differently.

00:10:17

You see, this project has already been worked on, it's released. And this phase here is completed.

00:10:24

So, I would revoke the completion here, because I saw something is missing.

00:10:30

And I go to the Checklists part, and I introduce a checklist here.

00:10:36

Meeting preparation

"Meeting prep". Okay, good.

00:10:40

Then we add a checklist item, say, "Book room". "Inform team about customer".

00:10:58

And, say, "Prepare slides". So, during the preparation, I did all these tasks.

00:11:08

Yes, I did book the room. So, you see the status of the checklist is Open.

00:11:13

I booked the room so I'm good. I did not have to inform the team about the customer,

00:11:22

since they were already involved with the customer before. And I prepared the slides so I'm okay.

00:11:29

And, you see, with that, the status of the checklist gets OK.

00:11:42

or if it's still open, it would be Open. And by now, you should also see, in this overview here, that there is a checklist.

00:11:56

From that we would switch to the team now. So, we have a Team and Staffing tab up here.

00:12:02

And you already saw the four people working on the team. This is an aggregated view of who is in the team,

00:12:09

and you see Tonia and Peter I am Peter. We are from Almika.

00:12:16

Charly West is a freelance consultant from Excellent Consulting. And John Tompson is in Innovat,

00:12:23

the other company in our holding. Okay, Sandeep will talk you through the other details,

00:12:31

since this is related to resource management. I would now like to switch to additional views here.

00:12:39

So, when it comes to staffing, the one way you can do it is you go to the Gantt chart and you go through the list of tasks,

00:12:48

click each individual task, then go to the Work tab. Of course, when you switch from task to task,

00:12:52

the Work tab will stay people there.

you will stay on the Work tab. And then add the additional services and

00:13:00

But you could also do it differently. And for this we have two views.

00:13:04

You could do the Staff by Structure, so you see everything here. And when, for example, someone is not yet staffed,

00:13:12

here, for example, for the test activity, in that case, you could then staff this with a team member,

00:13:20

and say, "This needs to be Tonia." And then this will change, and you see Tonia being staffed here.

00:13:28

Okay, and we have an alternative view, where you see the task assignments

00:13:34

or the work packages by team member, and we also see we still have a few work packages here,

00:13:41

which are not yet staffed. Okay, going from there to the Products tab,

00:13:49

we have a view here where we see all the products and a product is a generalization of service and material

00:13:55

where we see the services and the material, which have been planned in the project.

00:14:00

And down here you would see how this breaks down to the individual tasks. And we also have the respective other view, where we start from the tasks,

00:14:08

and where you would see what the respective services are by task. Okay, and then Carsten will tell you everything about purchasing.

00:14:18

So we also have information on purchase requests, purchase orders, and project stock orders,

00:14:25

when it comes to working together with the SCM functionality in Business ByDesign. When you have customer projects,

00:14:35

you need a sales order for that, and you would also see the sales order information here.

00:14:39

Ingo, in Week 2, will tell you about this functionality. And, finally, for this part of the demo,

00:14:48

let's go to the Project Overview. So you have a few reports here.

00:14:52

For example, planned actual costs and revenue. So you see the total planned costs, the total incurred costs,

00:14:58

total planned revenue, and total invoiced revenue. And below here,

00:15:06

you can start navigation to a few relevant reports. Okay, so much about the project management functionality.

00:15:15

Now let's go to the change management. So you see, this here is a project which is already ongoing,

00:15:34

And for that, we have to extend the scope. But to really show you what this looks like,

00:15:43

I would first like to open a report. And here the important one is one I created from scratch,

00:15:53

which is Report: Baseline vs. Current Plan. And let's simply go for it.

00:16:01

So what you would see here is, for our base project and the individual tasks,

00:16:07

who's working on the project, and, then, when it comes to cost planning,

00:16:13

what the planned costs are, and which G/L Account they would hit once confirmed.

00:16:19

So, for the time being, our planned cost for the project is something like $32,000. And now we're going for a change.

00:16:28

So, we will introduce a new line here. Say, we need some additional senior consultancy.

00:16:39

And the team member shall be 30 hours.

it's myself, it's Peter Sellers. And I have to do, say, another

00:16:52

And in addition to that days,

no, not Checklist but Scheduling

we know it's not going to take 13

00:17:01

but we need at least, say, 20. Then you see that the duration of this bar is now longer.

00:17:11

Still, the scheduling was not triggered so far, because once you've released a task,

00:17:21

it's really important to note that on these changes, we do not, sort of, destroy the project by automatically scheduling.

00:17:28

So, you might want to decide to go on with a project like this. So, okay, we do have the relationships here,

00:17:36

but maybe it turned out this very task here, the Interfaces task, is maybe not dependent on the end of the previous task,

00:17:44

then you will probably be good to go. But you could as well decide,

00:17:47

"Okay, I can't help it. I have to schedule it." And in that case,

00:17:53

the longer duration then leads to a longer project duration. Okay, now, since this is critical to our project,

00:18:04

we decide, or Peter Sellers, I decide to create a baseline from the project, because I want this baseline to be approved by my management.

00:18:13

In the end, the thing that happened is it's due to some glitch with the customer and it's not my fault,

00:18:21

but we need to have additional functionality in place. And for some reason, the customer doesn't have to pay for that.

00:18:29

But I don't want to be the bad guy, who's causing more costs now for us.

00:18:36

So, the baseline name would be, say, well, "Major issue". And since I want it approved, I could also add a comment here.

00:18:48

I would now have created a baseline and send it for approval. Now let me save it.

00:18:58

And once this has been saved, the information would also be available in this baseline here.

00:19:04

So, I go now to the report and refresh the report. And then you see, we had an active baseline before.

00:19:11

And now we have a new baseline: number 2. The old one is still active but there are pending changes.

00:19:18

And the new one is "In Approval". And we see that here, for example, we introduced

00:19:27

or we changed the assignment for Tonia Gartner, and we introduced Peter Sellers on the setup task.

00:19:34

And in the end, it leads to a higher cost. Okay, I've set up for demo purposes this system in a way that I, myself, can approve it.

00:19:44

You would, of course, do it differently. So I would now go back.

00:19:51

Well, I don't approve the baseline. I would send it back for revision.

00:19:58

And what I can do then is I can either

so you would also see the status change here.

00:20:13

because there are alternative ways of dealing with this situation. So, the baseline itself is editable, as mentioned in the presentation.

00:20:23

But once agreed upon, it's not changeable anymore. Or if you changed it, it would lead to a new baseline.

00:20:28

So what I'm going to do now is I go to the Project Management work center,

00:20:32

and look for the baselines. And here now, for my favorite project, CPSO6,

00:20:40

we have two baselines the one with the major issue. And I would now edit this baseline.

00:20:48

Because I've got some guidance that, say, here in the software setup,

 

00:20:57

we introduced these additional 30 hours here. And my boss had a good idea.

00:21:04

So this reduces the impact to 20. In this case, also

or I would save it first.

00:21:16

And I would simply activate it. So my boss is okay with it, and this way it simply gets active.

00:21:26

The good thing is, if you now said, "Well, you can tweak it", yes, you can, but I guess you will only do it once,

00:21:33

because your boss is going to be able to find out that you did do it, and so you're probably only going to do it once.

00:21:39

Okay, let's go back to the report, refresh it. Now we see

it should be

 

00:21:49

sorry, it should be active by now. Maybe I didn't save it.

00:22:01

I probably didn't save it. Let me go back.

00:22:05

Okay, the first one is Obsolete now and the second one is Active. Since you made the change in the baseline now,

00:22:14

you would have to manually do the change in the operational project. So, I think there's quite some variance.

00:22:20

And it's really about you deciding how to use the functionality, whether to start from the project.

00:22:25

Always do the changes in the project, and then create the baseline from this.

00:22:29

Or maybe if you don't want to change the project, but want to work on the baseline,

00:22:34

to show your management that when you do certain things, the effect would be a certain effect,

00:22:41

in that case, it would also be a valid approach to really do the changes in the baseline.

00:22:48

Okay, there is one more thing I would like to mention. We went to reporting.

00:22:56

When we go to the list, to the report list, and, for example, you enter baseline here

00:23:03

oops, if you enter it correctly: base, E-L-I-N-E, then you run into a few reports which are relevant for here.

00:23:14

And you could, for example, have a look at the Work Trend Analysis, or Project Variance by Project Structure.

00:23:21

This, especially, would show you the more logistical aspects. Logistics in the sense that it's about the time aspect, and not the financials aspect.

00:23:34

To quickly show you where we have this functionality in the system Management, we have the Change Management work center view,

So, under Project

00:23:42

with baselines, and you have a similar

You saw the object work list for the baseline,

00:23:46

so you have a similar one for the snapshots. And since you can, on the one hand, manually create a snapshot,

00:23:55

you can also create a run here. Okay, with that, I'm done with the demo,

 

00:24:01

and I will go back now to the slides. And here's a quick summary of what you learned in this unit.

00:24:09

I introduced you to the artifacts and views that we have in ByDesign project management,

Week 1 Unit 6

00:00:11

Hello, and welcome back, to the last unit of Week In this unit, we will extend the project-centric view to the prospect's view

00:00:19

and talk about the link between what we have in the operational transactions and financials. When we look at a process, we have events

00:00:31

that must lead to evaluation and financials. These business transactions call to source documents,

00:00:38

and journal entries and financials. A journal entry contains a valuation of the event,

00:00:44

together with an account assignment. What I'm telling you here is only to put what we have in project management into perspective.

00:00:52

If you want to have some deep insight into financials in ByDesign, I would like to refer you to our openSAP course on ByDesign financials.

00:01:00

Now, let's have a look at the main business scenario that we are covering in this course: the Order-to-Cash Project-Based Services scenario.

00:01:09

We have business transactions from quite a few areas in ByDesign, which can be accounts assigned to a project.

00:01:15

In the next weeks, you will learn everything in detail that I present here. The main use case is most definitely time recording.

00:01:23

Then, we have expense reports, and when external services are confirmed,

00:01:28

we have goods and services receipts, and once we get invoiced from our suppliers,

00:01:33

we have the supplier invoice. So, these are all the blue boxes here.

00:01:40

These documents will all introduce costs that are debited to our projects.

00:01:44

A customer invoice the green box here account assigned to project as well,

00:01:50

will lead to project revenues. How is this now visible to ByDesign users?

00:01:57

Throughout ByDesign, we offer the "document flow". Don't try to understand what the individual boxes here mean.

00:02:05

It's something you will learn in the next few weeks. It is important to understand the concept.

00:02:09

The document flow displays the documents that are created while you work on, say, a project, and whenever there's a business transaction that needs to be recorded in financials,

00:02:20

you can jump from the document flow to the journal entry created for the business transaction.

00:02:26

In the journal entry, which we see down here, in the demo, the given example,

00:02:34

we see deferred costs of goods sold and unbilled payables. A journal entry always contains a general ledger part,

00:02:42

where the accounting will happen to a combination of general ledger account, profit center, and segment.

00:02:49

When it comes to subledgers, in this case, dealing with customer projects, posting information for the sale's subledger

00:02:55

are contained in the journal entry, relating both to a project task and a sales order item.

00:03:01

Ingo will tell you the details about this in the next week. One important aspect which we did not cover so far in this week is organizational management.

00:03:11

You heard that the responsible unit, a cost center, is mandatory when you create a project.

00:03:17

But I did not yet tell you what this means in ByDesign. Let's have a look at the organizational structure

00:03:25

of the two model companies in our reference systems that we are using for this course.

00:03:30

In the organizational structure, we have nodes that represent an organizational unit.

00:03:36

An organizational unit usually has a number of org. unit definitions assigned, which have different meanings and backgrounds.

00:03:50

such as the holding in our case. When it comes to the company and business residence characteristics,

00:03:56

these are legally relevant flavors. Roughly said, a company in ByDesign represents

 

00:04:01

an organizational unit that is legally and financially independent and that has registered under business law.

00:04:08

In our case, by the way, we are simply assuming that no legally relevant entity exists for the holding.

00:04:15

The flavors that we are more interested in in this course are the financial definitions. Here, we have the segment and the profit center

00:04:25

that I already referred to on the previous slide, as well as the cost center.

 

00:04:31

From a reporting aspect, the reporting line unit and the program are relevant definitions. While the latter is seldom used,

00:04:38

you will always find the reporting line unit as a characteristic on an organizational unit when people are staffed to that organizational unit.

 

00:04:48

Next to the org. unit definition. We can also assign functions to org. units.

00:04:53

These then describe what business processes that unit supports. Now let's go to the system and have a look at a concrete doc flow.

00:05:04

As said, Carsten will tell you about the details of the ordering process. So, we have a purchase order here, and someone did a time recording:

00:05:14

this time recording led to a goods and services confirmation. From this service confirmation here, I jump to general ledger entry,

 

00:05:26

and you see here

let's go to the deferred cost of goods sold

we see here, on the one hand,

the general ledger accounting,

 

00:05:35

with the GL account, the profit center, and the segment. And, we also have the sales subledger accounting information here,

00:05:45

with our project, CPSO6, and the respective task, CPSO6_1110. Ingo will tell you about why the sales order item is not yet here.

00:05:58

Now, let's have a look at this part here. So we have the profit center and the segment.

 

00:06:03

Where do you find this in ByDesign? For demo purposes, I assigned the Organizational Management work center to Peter Sellers.

00:06:13

Normally, of course, you wouldn't do so. And I already opened our organization.

00:06:21

So we have you remember the picture we have the holding, we have the two companies, Almika and Innovat.

00:06:30

And we see that this is the unit that Peter Sellers is heading, and we still have something below that.

 

00:06:40

And you would see the definitions for this unit here. And maybe I'm going to switch to tabular view,

00:06:49

which makes it much easier to see. So you very easily see where the company is.

 

00:06:54

So Almika is a company, Almika Pro Canton is a business residence, as well as a segment profit center and cost center.

00:07:03

So we have many cost centers here, as well as reporting line units. We have here, if you Consulting Canton group became too big,

this

00:07:14

so we introduced two subgroups, and these subgroups are not yet cost centers. Okay, when it comes to the functional definitions

00:07:27

Let me switch to the Finance department, and when we go to the functions here, you will see that, of course,

00:07:35

the Finance department supports finance functions, so cash flow management, financial and management accounting,

00:07:51

and they are also the guys who are doing the purchasing. Okay, with that, let me go back to the presentation and summarize.

00:08:05

I introduced you to business transactions, source documents, journal entries,

00:08:14

and the relationships to the organizational structure. Thank you for attending Week 1.

00:08:20

Ingo will guide you through Week 2. Prior to that, good luck for the weekly assignment,

00:08:24

and see you again at the end of the course. Goodbye.

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