Beruflich Dokumente
Kultur Dokumente
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Develop
Buy land Find investors Prepare development plan Request building permits Ensure funding
Construct
Create architectural design Prepare and organize construction work Buy construction services and material
Operate
Maintain and repair buildings and equipments Manage lease and service contracts Plan modernization and refurbishment
Use
Organize space and move management Assign employees to rooms Manage events and meeting room reservation ...
Land Developers
Housing Authorities
Standardize and manage contracts safely Automate communication with tenants, service provider & banks
Key Challenges*
Adapt technology Improve workforce development Face business competition Optimize risk management
Market Trends
Augmented portfolio diversity through market globalization Increased market consolidation Higher dependency on capital markets Higher awareness for legal compliance
* Source: IREM Institute of Real Estate Management: Transforming Real Estate Management: Four Strategic Issues 2006
Airports Banking
Public Services
Railways
Telecommunication
Financial Services
Manage headquarters and local affiliates
Public Services
Create portfolio transparency & complete master data Optimize space utilization & reduce service costs
Retail Companies
Professionalize land development & transaction management Increase level of process automation
Corporate Real Estate Managers: Key Challenges & Trends Key Challenges *)
Provide optimized real estate services Increase space utilization Raise revenues with third parties Decrease operative costs
Market Trends
Higher interest for real estate management at c-level Increased need to integrated to other corporate departments Demand for space changes more often Increased cost pressure
* Source: Feedback from SAP customers
Pain points
Recent economic development High vacancy levels in many commercial properties Increased pressure to lower internal space costs Need to offset declining results in other business areas Market globalization Expansion of subsidiary network to new markets Manage more complex property portfolios and real estate activities Mergers and/or redistribution of property portfolios according to changes in company structure Emphasis on capital market in decision making Benchmarking of maintenance and service charges between properties Increased need to compare return on investment (ROI) of property Necessity to achieve competitive risk-return ratio
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management
Lease Management
Condition Adjustment
Legal Compliance
Space Management
Room Reservation
Move Management
Construction
Service Management
Support Processes
Accounting
Controlling
Tools
Integration to SAP Industry Solutions Real Estate Solution Map, Edition 2006
Accounting processes such as third-party tenant receivables, landlord payables Corporate cost accounting (Controlling) Asset accounting, project management, and technical facility management processes (mySAP Product Lifecycle Management) Integration to external systems e.g., Graphical Information System (GIS), ComputerAided Design (CAD)/Computer-Aided Facility Management (CAFM) Dynamic reporting possibilities (SAP Information System and SAP BI)
Portfolio Management
Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management
Portfolio Management helps you define your business' real estate infrastructure and manage business partner relationships. SAP Real Estate Management can help you do the following:
Analytical tools to support you in strategic, tactical and operation decisions Standard reports on costs, revenues, vacancies, measurements, contracts, conditions, maintenance and service costs and more Defining flexible object structures according to architecture, usage and building services Recording of property characteristics, fixtures, fittings and equipments Entering master data to tailor your real estate infrastructure to accommodate primary business activities Transparent views of your contractual partners Mapping of processes concerning the acquisition and disposal of your assets
Commercial Real Estate Managers such as Shopping Center Managers, Housing Authorities and Facility Managers are looking for a solution to cover their core business based on an ERP solution. Their key challenge is to make technological adaptation work. SAP Real Estate Management provides them with:
Matching vacant properties to prospect tenants Creating contract offers Managing lease and vendor contracts Monitoring lease deadlines and renewal options Carrying out rent adjustments Managing percentage rent agreements Calculating chargeable expenses, balances, advance payments, and adjustments Tracking settlement results Handling correspondence for rental processes Handling mandates and management contracts Supporting country specific legal requirements
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 15
Corporate Real Estate Managers such as Airports, Retailers and Public Services want to integrated the very important area of property management in the overall processes such as Controlling, Reporting and Financials. Their key challenge is to increase the space utilization, prevent budget violations, and user-friendly service management. SAP Real Estate Management provides them with: Comprehensive space management Managing corporate portfolios Assigning resources to spaces Managing framework agreements Reservation of objects and booking of additional services Efficient move management Improved options of cost allocation
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 16
Technical Real Estate Management supports all processes related to building operations, including maintenance on rental objects, service management, the administration of available spaces, and building operations. SAP Real Estate Management can help you do the following:
Conducting scheduled and unscheduled maintenance on your rental objects Displaying costs in integrated reports Assigning services to externals Monitoring modernization and maintenance tasks Handling malfunctions and problems reported via phone Preparing and procuring good and external services Managing available spaces Maintaining space and rooms as graphical representations with CAD/CAFM systems
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 17
Support Processes
Support Processes Accounting Controlling Tools Integration to SAP Industry Solutions
Support processes help you in rental accounting and controlling activities. Additional processes additional Tools are available to create and manage correspondence and related documents with your business partners. SAP Real Estate Management can help you do the following:
Periodic postings for real estate contracts and objects Tenant account maintenance Planning of costs and revenues Settlement of costs incurred by real estate objects Correspondence and document management for all real estate processes Graphical depiction via integration to CAD/CAFM and GIS systems Additional tools to adapt and enhance the SAP Real Estate Management solution to external systems and services Integration to SAP Industry Solutions such as Public Sector Management
SAP Real Estate Management can support you in Commercial Real Estate Management
Lease Management Condition Adjustments Cost recovery Percentage rent agreements
Project Management
Planning Budgeting Execution Settlement
Controlling Processes
Comprehensive Real Estate Controlling
Accounting
Expediting procedure for overdue items Incoming payments Periodical postings
Analyze Analyze
Perform operative and strategic planning of costs and revenues Service Charge Settlement Technical Facility Management Correspondence
Measure Measure
Manage Manage
Operate Operate
Contract Management
Condition Adjustment
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 20
User-specific views
Worklist User-dependent object list Favorites list
Explorer functions
Display of the hierarchical dependencies Direct call, context-sensitive direct link (forward, backward) History of previously selected objects
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 22
Scale1:75
Living room
Bedroom 2
Bedroom 1
Integration
Assignment of Central Business Partner to Accounting and Controlling
Contracts Objects
Rental object 3 Internal lease (cost center) Internal lease (cost center)
Contract Management
Lease
Scale1:75 Living room Bedroom 2 Bedroom 1
Term Conditions Notice/renewal Key dates and diary functions Distribution Adjustment rules Service charges Document management Signature Date
Correspondence
ACTIVATE
Processes
Debit position Payment Open item management Dunning Real estate controlling
Rule-based
Conditions can be dependent on existing conditions Condition adjustment rules can be predefined and reused
Mass execution
Periodic postings and payments are generated and integrated in Accounting and Controlling Sales-based rent settlement and service charge settlement can be executed for many contracts simultaneously Processes can be simulated and executed step-by-step and reversed Correspondence can be generated for all objects or contracts
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 26
Master Data, Measurements, Conditions, Contracts, Business Partners Service Charge Settlement, Sales-Based Rent and Controlling
Portfolio Performance, Occupancy and Vacancy Rates, Partner Performance Costs and Revenues, Rent Revenue, Cash Flow
Flexible reporting
Easy to adapt Easy access and exploration of information Support on strategic, tactical and operational decisions Reduction of costs through quicker decisions
Interfaces
CAD, CAFM and GIS systems Building control systems
How Can You Manage Your Real Estate More Efficiently Using mySAP ERP?
Increased transparency in your real estate portfolio helps you optimize your investment decisions. Key figures and benchmarking increase efficiency in assessing performance.
Leasing vacant space becomes simpler and faster. Risk of lost rent revenue is reduced.
Automation of contract management saves time and money. User satisfaction increases while administrative costs in service management are reduced.
Management processes become more efficient thanks to ability to visually display complex real estate data.
Optimized Decision-Making
Contract Management and Land Use Management, together with Business Information Warehouse, allow you to fully track your real estate portfolio. Your Advantages
Provides better overviews of your real estate portfolio. Data is always up-to-date, while precision and verifiability are enhanced. Decision-making processes are faster and more efficient. Your internal and external reporting become more uniform.
STRATEGIC BUSINESS INSIGHT
Our Solution
Management of all master data related to valuation, from real estate contracts, the real estate cadastre, and the land register. Comprehensive reporting tools, predefined roles, queries, and workbooks.
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 30
Improved Performance Measurement By determining key performance indicators you can measure portfolio performance and benefit from benchmarking.
Your Advantages
Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.
STRATEGIC BUSINESS INSIGHT
Our Solution
Statistical key figures can be determined based on data from Controlling (CO) for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.
Efficiency in Performance Assessment Key indicators provide you with input for benchmarking and performance management.
STRATEGIC BUSINESS INSIGHT
Your Advantages
Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.
Our Solution
Statistical key figures can be determined based on data from Controlling for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.
SAP Query offers a wide range of options for defining individual reports using various forms of reports, such as, basic lists, statistical reports and ranking lists. Using SAP Query, it is easy to adapt existing reports to meet your requirements or define completely new reports.
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 33
More Secure Rent Revenues Active partner management increases the security of rent revenues.
Offered Object RE Search Request Credit Check Real Estate Search Contract Offer
DIFFERENTIATION FOR TOP LINE GROWTH
SAP Netweaver
SAP R/3 SAP R/3 SAP R/3
Marketplace
Your Advantages
Improved security for rent revenues.
Our Solution
Efficient partner management with links to Accounts Receivable and contract management. Data can be exchanged with credit protection agencies.
Automatic Contract Management Using comprehensive contract management, you can map complex contracts and handle follow-on processes efficiently.
Specify contract conditions Execute periodic posting Process open items Post incoming payments Clear items Analyze tenant account
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
Your Advantages
Central mapping of relevant contract data, such as term of contract, conditions, posting terms, and option rates. Secure, simple, automated posting. Support for country-specific accounting standards. Simple-to-execute individual postings.
Out Solution
Full reflection of all real estate contracts in the system, with integrated Account Payable and Accounts Receivable. Management of tenant accounts, including incoming payments, installment agreements, and clearing. Management of sales-based rent and security deposits. Integrated Controlling.
Your Advantages
Standardizing and automating repetitive processes (from requesting service to settlement) increases speed and efficiency in handling services. You can better monitor costs and quality of services provided. Satisfaction of both users and tenants increases. Optimizing the physical facilities of your real estate becomes easier.
Our Solution
Purchasing management, including framework agreements with suppliers and service providers. Standardized processes using call centers for accepting service and repair requests from users or tenants. Option for fully electronic (paperless) handling of orders, from vendor credit memos to apportioning costs to users. Mobile asset management Budget planning, costs controlling, order monitoring
Your Advantages
Visual display of complex data for controlling processes, reporting and analyses
trac Con
A C
B D
t1 trac Con
t2
Contract 3
Our Solution
Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard
Reduced Amount of Vacant Space Vacancy reports and the Real Estate Search assist you in reducing periods of vacancies.
Your Advantages
Increased transparency for contract terms and vacancies. Earlier and faster re-rental of properties. Automatic update of real estate data when contract signed.
DIFFERENTIATION FOR TOP LINE GROWTH
Our Solution
Active vacancy management Real estate search functions, with the RE search request, offer, search and contract offer. Automatic transfer of offers to contract management. Option of integration with real estate marketplaces.
Owner
Space Assignment Rent Payment Cost Allocation
Our Solution
Comprehensive Master Data Management Real Estate Search Contract Management Central Business Partner Management Cost Allocation in Controlling
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 39
Your Advantages
Complete overview about vacancy periods Faster re-rental Process automation
Our Solution
Vacant space
Search
Contract offer
Lease-out contract
Request
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 40
When you execute input tax distribution for costs related to real estate on these objects, the same rules apply as for real estate objects themselves. You enter an option rate method on the assigned real estate object. The system uses this option rate method to determine the option rates.
Accrual/Deferral
Accruals and Deferrals in Flexible Real Estate
As part of period-end closing, the system uses the Accrual Engine to post accruals and deferrals to the correct periods for expenses and revenues from real estate contracts.
(This function is now also available for Release ERP2004.)
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
Easier Integration to Industry Solution for Public Sector This integration helps you benefit from unified open item accounting in Public Sector using RE-specific processes, while being able to transfer these documents to General Ledger Accounting. Processes
Contract integration: At account assignment, you can distinguish between the real estate contract and the contract object by using the new sub application indicator. Integration with partner management: Business partners with the internal role MKK can now be assigned to a real estate contract. Integration of contract account: Depending on the contract type, you can assign existing contract accounts to the real estate contract, or you can create a new contract account. Additions to posting term within the posting parameters: Fund, Funds Center, Commitment Item, Functional Area, Grant, and Measure
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LINE GROWTH
Your Advantages
Visual display of complex data for controlling processes, reporting and analyses
trac Con
A C
B D
ct 1 ntra Co
Contract 3
Our Solution
Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard (Business Application Programming Interfaces)
t2
Your advantages
Easy and fast adaptation and enhancements to customer-specific needs without modification
Our Solution
Easy adaptation of user interface to role-specific needs via Business Data Toolset (BDT) Modification-free implementation of specific methods such as for calculation of conditions and other enhancements via Business Add In (BAdI) Standardization of folder structures and management of various records per folder via SAP Records Management Easy management of all types of documents related to your property via SAP Document Management System High-performing mass print for all types of application data via Adobe Integration Comfortable creation of single print documents or CO-Planning via Microsoft Office Integration
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 46
Flexible Calculation of Contract Management Conditions In relation to the management contract, there are new methods for calculating and posting management fees: Amount per object, amount by rental status, amount per tenant changeover, share of condition group. BAdI (Business Add In) for implementing your own custom procedure (RECD_CALC_RULE and RECD_DIST_RULE). The new methods outlined above were already included in the logic of this BAdI.
FLEXIBILITY TO ACT TODAY
Correspondence
Starting with this Release, Adobe is the standard tool for correspondence. The following forms are available as PDFbased Adobe forms.
Master Data and Contract
Master Data Summaries Notice
FLEXIBILITY TO ACT TODAY
Accounting
Contract Account Sheet Invoice Dunning
Auditing: DART and AIS Data Retention Tool (DART) for RE-FX
FLEXIBILITY TO ACT TODAY
Income tax laws in some countries require that the taxpayer retains certain financial documents related to the tax return in a sequential file format.
The Data Retention Tool (DART) assists you in meeting these legal requirements. You can use this tool to extract and display master data and flow data in sequential files. The data export also makes it possible for the data to be analyzed using external software.
The starting point for the extraction (in relation to RE) is normally the FI document. That means, the RE-specific data is extracted to a document that is suitable for "explaining" the document.
Upgrade (Downtime)
Classic RE / on mySAP ERP 2005 Live System RE-FX on mySAP ERP 2005
Time
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 50
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Project Objectives
Replace central, homegrown legacy solution Achieve global rollout
Key Benefits
Integrated business processes Consistent data basis Accelerated processes and data flows Decentralized contract management Ability to react more flexibly to future market requirements
Implementation Highlights
Expansion of software to manage consolidation of property expenses, revenues and incomes of Australian funds, the Commonwealth Bank, and property and fund management of its New Zealand business
Having a complete end-toend solution is a significant gain, which consequently leads to reduced costs, advance data integrity and greater profits.
Mr. B. Nicholls, Systems Executive, Colonial First State Property - Australia
Key Benefits
Increased improvements in business efficiency and reporting Deployment of system to external partners and clients
Key Challenges
Streamline and automate management of extensive real estate portfolio Improve visibility into building and space utilization at building level Enhance effectiveness of lease administration and occupancy tracking Increase charge-back capabilities for business units to bare cost of building expenses
Wells Fargo will continue to expand aggressively and SAP Real Estate Management is critical to helping us manage that expansion.
Catherine Parkhurst, Business Systems Consultant, Wells Fargo Corporate Properties Group - USA
Key Benefits
Increased awareness by business units of expenses, resulting in cost reductions Improved utilization of assets and enhanced revenue opportunities Greater visibility into corporate physical assets
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 55
Key Challenges
Create central support for external leasing of unused space Integrate leasing processes of the seven regional boards
Key Benefits
Increased revenue from external leasing of unused space Streamlined property maintenance Standardized real estate management processes Integrated real estate processes with other departments and systems Improved support for long-term goals
More References
Airports Banks Energy suppliers Harbors Insurance companies Postal services Public sector Railways Retailers
Facility Managers
Housing companies
REITs
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Release Strategy Functions and Features Country Availability User Specific Enhancements Migration Tools
Notes regarding SAP Real Estate Management can be downloaded via http://service.sap.com/notes
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 60
For more information on the availability of SAP Real Estate Management for specific countries please check availability http://service.sap.com/re and read SAP Note 771098.
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 62
Italy
Imposta Comunale sugli Immobili (county tax) Imposta di Registro (registration tax) Imposta di Bollo (stamp tax) Summarization of tax lines
Switzerland
Correspondence based on Swiss tenancy law External heating expenses settlement Lease-in with ISR Calculation of fuel consumption Rent adjustment according to Swiss law
Portugal/Spain
Withholding tax
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 64
Availability
Continuous Innovation
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 66
2006
2007
2008
2009
2010
Areas of innovation
Optional Adoption
Enhancement Packages
Enhancement Packages
Optional
Enterprise Services
Switch Framework
New/Improved Functionality
Support Packages
Mandatory
2006
2007
2008
2009
2010
Enhancement Packages
mySAP ERP 2005 is the Go-To Release for SAP R/3 Customers.
SAP R/3
Enterprise 4.70*2.00
SAP R/3
Basics
Start of availability
Pilots
Maintenance Strategy
mySAP ERP 2005
Extended Maint. (17% + 2%) Extended Maintenance (17% + 4%) CustomerSpecific Maintenance
RampUp
Mainstream Maintenance
RampUp
Mainstream Maintenance
Customer-Specific Maintenance
RampUp
Mainstream Maintenance
Customer-Specific Maintenance
Mainstream Maintenance
Customer-Specific Maintenance
Mainstr. Maint.
Customer-Specific Maintenance
Mar
Dec
Dec
Dec
Dec Mar
Dec
Mar
Dec
Mar
Mar
Mar
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
This strategy is also valid for all Industry Add-Ons based on the releases above. SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 71
Mar
Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management
Lease Management
Condition Adjustment
Legal Compliance
Space Management
Room Reservation
Move Management
Construction
Service Management
Support Processes
Accounting
Controlling
Tools
Industries
Public Sector Integration*
Integration
First steps towards Enterprise Service Architecture CAD/GIS Interfaces DUET Integration of Room Reservation in MS Outlook Meeting Request
*) **) Please observe that SAP can not provide any binding statements regarding new features in SAP Real Estate Management in release mySAP ERP 2007 at this time. More precise information will be published at a later date. According to German law only
SAP Real Estate Management supports professional real estate managers as well as corporate real estate managers. With mySAP ERP SAP Real Estate Management provides important enhancements for more usability, enhanced process integration and additional scenario support. SAP Real Estate Management in mySAP ERP - Why should you upgrade now?
More efficiency and productivity Increased transparency Enhanced process integration Differentiation in competition Increased value of property portfolio
Contacts
Christian Krmer Director Solution Management SAP Real Estate Management SAP AG c.kraemer@sap.com Franz Wilhelm Kehrein Solution Manager SAP Real Estate Management SAP AG franz.wilhelm.kehrein@sap.com
Christian Mnich Solution Manager SAP Real Estate Management SAP AG christian.mnich@sap.com
Contacts)
Contact
Christian Mnich, SAP AG (christian.mnich@sap.com)
SAP AG 2006, Introduction toSAP Real Estate Management / Christian Mnich / 76