openSAP

SAP Business ByDesign Project-Based Services

Week 1 Unit 1

00:00:09 Ladies and gentlemen, welcome to Week 1, Unit 1, and let me introduce to you what Business
ByDesign is all about.
00:00:18 First and foremost, the important thing to understand about Business ByDesign is that it is an
integrated suite,
00:00:24 a suite in a box. Why is this important?
00:00:27 It simply means that all of the different components which you see, financials, human resource
management,
00:00:34 and project management, and all of the other components, are pre-integrated by SAP into
Business ByDesign.
00:00:42 Nevertheless, you can extend this integrated suite with additional line-of-business solutions
from SAP,
00:00:51 be it Concur, be it Ariba, be it Fieldglass, be it other solutions also from other providers of
cloud solutions.
00:00:59 So it is an integrated suite in a box, but open for integration and extension.
00:01:06 Business ByDesign has specifically fast-growing companies in mind, companies who say we
are relatively small today,
00:01:15 but you know what? We will be the next Google. We will be the next superstar.
00:01:19 We will grow fast and we don't want to outgrow our platform. So this is one of the key value
propositions of
00:01:27 Business ByDesign, as it can support you to grow. If you think of one of my customers,
Skullcandy,
00:01:34 who started buying Business ByDesign when they were 15 people or so, then they did the
IPO,
00:01:40 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.
00:01:54 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.
00:02:03 And the way how my customers use that is they predominantly use analytics to make better
investment decisions.
00:02:11 I met with a chief financial officer, who said, Rainer, you have no clue how many
00:02:15 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.
00:02:23 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
00:02:32 and I see the profitability of projects, products, customers, and regions, and I can make much
better management decisions than I did before.
00:02:45 One more aspect is the continuous innovation. One of the key features of cloud computing
00:02:51 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,
00:03:00 be it machine learning, be it big data, be it Internet of Things, be it block chain,
00:03:05 we bring all of that over time into the solution. So whether you now want to consume it today or
in the future,
00:03:13 it is ready when you need it. So these are four key characteristics of SAP Business ByDesign.

00:03:23 But we are realistic enough to understand that whatever we build will never be complete,
00:03:30 will never be the 100% solution. Therefore, extensibility was as much on top of our mind when
we built Business ByDesign,
00:03:40 like trying to get the business content right. The ambition with Business ByDesign,
00:03:46 and there we wanted to set ourselves apart from what we had done for the last 40 years, was,
have we said,
00:03:53 let's build a solution where the customer is as autonomous as possible, and where even the
end-user is autonomous.
00:04:01 So for example, when it comes to adjusting the fields that you see on the screen, when it
comes to adjusting the analytical content,
00:04:09 this is something the end-user can do. You don't need to have a business consultant to do that
for you.
00:04:15 There are more advanced topics, like you want to introduce new fields to a screen, to a form,
00:04:23 with additional logic attached to it. You want to extend certain workflows.
00:04:29 That is something where traditionally you needed a consultant. Today, in Business ByDesign,
it is something which
00:04:36 can easily be done by the key user. Last but not least, companies will find it useful
00:04:43 that they are able to add their own business logic to Business ByDesign. One of the
stereotypes about cloud computing is that
00:04:51 everybody has exactly the same software, and therefore, everybody has to use the software in
exactly the same way.
00:04:59 Not so with Business ByDesign. You can have your own data, you can have your own
business configuration,
00:05:06 you can have your own logic if you want to do it. And more than half of all Business ByDesign
customers today
00:05:14 extend Business ByDesign with their own logic. Therefore, the extensibility is a key capability
of Business ByDesign.
00:05:25 One additional aspect which is absolutely vital to the majority of my customers, be they small
or large,
00:05:33 is the global reach of Business ByDesign. We deliver 19 countries out of the box.
00:05:40 So these are countries where we say we deliver all of the settings, we keep them current, and
you're ready to go.
00:05:49 But the 19 countries are mostly not exactly those 19 countries which matter to you.
00:05:55 Maybe you have your business in Latin America. Maybe you have the core of your business in
Southeast Asia.
00:06:02 Maybe you're active in Africa. Then, you need the capability to introduce new country versions

00:06:09 and you don't want SAP to be the bottleneck. Therefore, in Business ByDesign, we put a
specific
00:06:16 focus on introducing one layer into our architecture where all of our globalization settings are.

00:06:23 So if I'm in charge of building the financials application, or the human resource management
application, or the purchasing application,
00:06:31 then if I need country-specific settings, I put it into that layer, and this layer is accessible to our
customers and partners
00:06:40 via the "software development kit", and you can build new country versions.
00:06:46 To make that easier, we have a set of preconfigured countries, pre-localized, where we deliver
already some content out of the box.
00:06:56 Why are we able to do so? Simply because we can leverage all of the globalization
00:07:02 experience that SAP has, which we collected over the last 40 plus years in SAP Business
Suite.
00:07:09 And on the right side, you see country versions that my customers have built.
00:07:14 So to take Business ByDesign to Serbia, to Croatia, to Bosnia Herzegovina, or to Kazakhstan,

00:07:21 is as simple as using the globalization framework and getting going with the capabilities there.
00:07:30 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.
00:07:39 We also thought about the industry in which we would make the biggest contribution to the
00:07:46 development of these companies. And you know that SAP traditionally comes more
00:07:51 from a manufacturing background. Therefore, we said, with Business ByDesign,
00:07:56 and as 60% of our target market is mostly built around service processes, let's put a specific
focus on service industries.
00:08:06 This slide here gives you an overview of which specific market segments we had in mind.
00:08:13 You can see financial services, the services industries, as well as the public sector.
00:08:19 So we want to serve all of those market segments. Not to the same level.
00:08:26 You can see some areas a bit darker, some areas a bit lighter, which give you an indication of

00:08:32 where we currently have the majority of our customers. But you can see the spread is fairly
wide,
00:08:39 and we are trying to serve all of these companies with the capabilities that we built into the
solution around the
00:08:47 project management and the integrated nature. If we look at all of these companies
00:08:54 and we ask ourselves "how do they run their business?" then we can find three categories.
00:09:00 The first category is those ones who sell project-based services. Project-based services are
services which are modeled around a project plan,
00:09:10 so that is where you say this is what I want to do, this is how I break down the different
activities,
00:09:16 this is how I allocate my resources to it, and finally, I use the flexibility in billing
00:09:21 that is available through Business ByDesign. The second aspects are standardized services.
00:09:28 These are repetitive services for which you don't each and every time invent a project plan, but
where you mostly focus on:
00:09:36 "I have a standardized service", for example, spot consulting. You sell it on a daily basis, and
you focus on
00:09:45 an efficient execution and a very precise and short-term billing. The third aspect is the "field
services".
00:09:54 Field and in-house repair. There the instrument of choice is not the project plan, but the
service order.
00:10:02 And for these scenarios, you also need the tight integration into logistics, because you pretty
often may need spare parts.
00:10:10 So these are the three aspects which we want to bring together and make available to our
customers.
00:10:17 This course here focuses on the project-based services. So there you will see a lot about the
project management capabilities.
00:10:26 The other two aspects will be covered in a subsequent course which we will introduce later this
year,
00:10:32 focusing more on customer relationship management and these two aspects here. If we look
at the structure of the course,
00:10:41 in Week 1, we'll give you, as you already see it, some of the background that you should have
in mind
00:10:48 when you attend this course. Week 2 will give you a holistic view on the process.
00:10:54 So you see, basically, everything from preparing a project, selling the project, and delivering
the project.
00:11:02 Week 3 will then talk about the resource allocation part. The resource which you want to
assign to individual tasks,
00:11:10 the purchasing activities that you need to have, and all of the surrounding aspects.
00:11:17 Week 4 touches more on the logistical aspects. One of the unique capabilities of Business
ByDesign is that
00:11:24 in projects, you can also purchase activities, but not only intangible goods, but also tangible
goods.
00:11:32 So you can say I want to run a project, and I want to order certain physical goods and attach it
to my project.
00:11:40 That is a key capability. Week 5 gives you more of the financial aspects
00:11:47 and all of the integrations that you need to have. So we will look at cost, revenue, revenue
recognition,
00:11:53 and the aspects around that. With that, let me give you, as always, a quick look
00:12:00 under the hood of Business ByDesign. As you know, Business ByDesign is a modeled
solution,
00:12:07 and here, you can see at the center of what we are doing, the project management capability
here in the middle.
00:12:14 And on the left, you see the integration into customer relationship management. At the top, you
see the integration into financials management,
00:12:23 and then human resource management, and even here, on the right side,
00:12:29 the supply relationship management. The customer invoicing part at the bottom rounds off this
picture,
00:12:35 so here you see how the integration actually works, how we do the message integration
between the different components.
00:12:44 That much, as a short introduction to Business ByDesign, what we have prepared for you.
00:12:51 Looking forward to seeing you in the next units. Enjoy this course.
00:12:55 Thanks a lot.
Week 1 Unit 2

00:00:10 Hello, and welcome to the second unit of Week 1. My name is Otfried von Geisau
00:00:15 and I will be your instructor for the remainder of this week and the two final units in Week 5.
00:00:21 The remainder of the first week focuses on the basic project management functionality.
00:00:26 Project management functionality supporting an efficient project execution is not only key for
the knowledge-based services
00:00:33 that professional service providers offer, but also for companies from the other industries
00:00:38 mentioned by Rainer in Unit 1. Before deep diving into the functionality in this unit,
00:00:43 I will start introducing you to the ideas behind what Business ByDesign offers
00:00:48 in the area of project-based services and how this supports the people using our software.
00:00:57 When looking at professional service providers and other entities as lined out by Rainer,
00:01:02 we identified mainly six roles that we wanted to support for project-based, order-to-cash
processes in SAP Business ByDesign.
00:01:11 In the presentation, we refer to them as personas. They are our project stakeholders.
00:01:16 In the beginning, we validated our approaches for the whole order-to-cash process chain
00:01:21 within a network of service providers, professional service providers, which helped us to gain a
deeper understanding
00:01:28 of the processes, tasks, and goals involved. In this slide, we annotated the roles with names.
00:01:35 You will hear these names throughout the course, since these are the names of the
00:01:38 employees of our model company. The model company resides in the reference systems
00:01:43 that we will be using for our demos. The systems that we are providing for your exercises,
00:01:49 as well, contain the same model company. Now, please meet our stakeholders.
00:01:55 For C-level executive and partner, C as in CEO, Catherine Kennedy-Woods, for the CEO of
Almika, Inc.
00:02:04 Peter Sellers is a project manager. Greg Taylor in his role as resource manager.
00:02:10 Roberta Johnson in her role as back office staff. Robert Ducan, a consultant.
00:02:15 And Iris Green, our accountant. In the following slides, you will find a short list
00:02:21 of our stakeholders' primary goals and tasks. The individual goals contribute to the overall
company goals.
00:02:28 Based on our discovery activities, we identified where support through software was needed
and possible
00:02:34 and to what degree that support is necessary. The result of this assessment is what we have
listed as
00:02:40 system support in the personas slides. Now, before we have a concrete look at our personas,
00:02:46 I would like to point you to something that will probably be repeated sometimes in the weeks to
come.
00:02:52 The project-based services business, although the system artifacts that we offer
00:02:56 are not that numerous, is very variant-rich. This applies both to the people
00:03:01 as well as to the software involved. When it comes to the people, the stakeholders,
00:03:06 for the sake of simplicity we made a clear distinction between the roles.
00:03:10 The project manager manages his projects, the resource manager manages resources,
00:03:14 the back office team member performs invoicing. In a real-life situation, however, you will most
definitely find
00:03:21 project managers also doing the invoicing or some project management office setting up the
projects and many more variations.
00:03:28 Partners leading projects, you name it. This introduces new variants
00:03:33 when it comes to the system usage. When it comes to the software,
00:03:37 professional service providers plan and execute projects and invoice their services to their
customers.
00:03:42 Thus, two companies could use the same software implementation, right?
00:03:47 From real-life example, I can tell you, wrong. In the end, certain focus aspects
00:03:52 led to quite different approaches, although both companies thought differently in the beginning.

00:03:58 The good thing, however, is the system's able to support a wealth of variants unknown to us
00:04:03 and does not restrain its users. We will show examples for this in the next units.
00:04:10 Okay, now let's have a look at the concrete personas. C-level executive's Catherine.
00:04:17 The tasks and goal we listed here are mainly of a nature that required deep insights into
questions
00:04:23 that you usually answer with analytics capabilities. Business health refers to loads of financial
reports
00:04:30 that ByDesign offers out of the box, as well as analytics reports that deliver information on
00:04:35 how efficiently your company runs the implemented processes. The project manager, Peter
Sellers,
00:04:42 needs to work on everything related to projects. Plan them, execute them, monitor them,
00:04:47 deliver on time, on scope, on budget, enable high-quality invoicing and bring
00:04:53 internal and external stakeholders on the same and work to their satisfaction.
00:04:58 How does ByDesign support project managers? Well, there's a rich project management
functionality.
00:05:03 For those project managers that like to manage projects on the go,
00:05:07 we offer the Project Cockpit app for tablets. This allows the project leads
00:05:13 to meet their teams and stakeholders while they have the information they need with them.
00:05:19 Ingo will tell you more about this in the next week. And again, ByDesign makes information
available at our personas' fingertips.
00:05:27 All of the aspects I mentioned above are covered by analytics reports.
00:05:36 The resource manager, Greg Taylor, he needs to ensure that projects in his area of
responsibility
00:05:42 can be staffed with "the right people". Meaning, with people with the right skills
00:05:48 that lie within the area that the company defines as their core competency.
00:05:53 However, this is not only related to internal employees. Especially quickly growing companies
00:05:58 usually partner with other companies that have a workforce with complementary skills.
00:06:05 Alternatively, freelance consultants are also among the people a resource manager regularly
talks to.
00:06:11 The resource manager also must ensure that, according to his company's plans,
00:06:16 he makes sure that even in his quickly growing company, the workforce is available when
needed.
00:06:22 It usually is a mixture of internal employees, partner companies, and freelance staff.
00:06:27 Of course, the resource manager must optimize his workforce's utilization
00:06:31 to contribute to his company's profitability goals. The system supports the resource manager
00:06:37 with a resource search and lean skills management to find the staff he needs.
00:06:43 The resource availability calendar enables him to recognize conflicts when it comes
00:06:49 staffing to different projects, for example. And again, analytics helps this time
00:06:54 when it comes to utilization monitoring. Back office staff, this is Roberta, you remember
00:07:01 We found their tasks being related to order management and project invoicing.
00:07:06 And here I reveal some detail that Ingo will focus on in the next week.
00:07:10 The commercial side in a customer project is being dealt with in a sales order in ByDesign.
00:07:15 This order is somehow linked to the object that deals with rendering the services to the
company's customers.
00:07:22 For invoicing or billing, ByDesign offers a highly automated functionality with billing rules
00:07:29 that can be adjusted to all individual customers' needs. Ultimately, project invoice requests can
be tweaked
00:07:35 down to the individual expense recording. Analytics reports allow the back office staff
00:07:41 to monitor time and expense recordings and the billing process. Well, the consultant – our
consultant is Robert Ducan.
00:07:52 He needs to render the services towards the customers, which he needs to do on time
00:07:57 and to the satisfaction of the customer. And of course, as well,
00:08:00 to the satisfaction of the project lead. It is essential that he records
00:08:04 his times and expenses accurately and on time since only in doing so does he enable his
colleagues
00:08:10 to send out customer invoices in high quality and as soon as possible.
00:08:16 When the customer can do nothing but accept the flawless invoice, this has a positive effect on
the company's cash flow.
00:08:23 ByDesign supports the consultant with workflows, information about the project he's assigned
to,
00:08:28 and his tasks in that project, as well as with a set of comprehensive sales services.
00:08:35 The most prominent are time recording and creating expense reports. Analytics, again,
supports him in monitoring his own work.
00:08:43 And since he is mostly not on site at his own company, ByDesign offers extra mobile apps that
he can use on the go.
00:08:52 The aspects that we found worth mentioning for the accountant, Iris Green,
00:08:57 although they are not customer project specific, are related to accounts payables,
00:09:01 accounts receivables, and management accounting. The latter helping the company's C-level
00:09:07 or senior management to validate that they are on track. Revenue recognition, which you will
hear about in Week 5, is a must,
00:09:15 and ByDesign offers a flexible and automated process. Loads of analytics reports in the
financials area
00:09:22 support the accountant to get her job done. Now, I already motivated why we did what we did.
00:09:32 We grouped the individual goals of our personas by company-wide goals. Out of these, we
focused on growth, liquidity, and profitability.
00:09:40 I will not read the individual goals and who contributes to which company-wide goal.
00:09:44 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.
00:09:52 This is what you find on the next slide. Now, again, we listed the company-wide goals
00:09:59 and annotated them with what a software system can do to support these goals.
00:10:04 We also weighted the goals and identified the areas that needed more invest than others.
00:10:11 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.
00:10:20 It was about where to focus the invest. If your system, for example,
00:10:24 does not support the service delivery in an efficient way, it is not worth discussing billing topics.

00:10:30 It is more about a sweet spot within the functionality that we offer for project-based services.
00:10:35 And there, our finding was that we should focus on billing. What convinced most of us was a
meeting
00:10:42 with a professional service provider in the US who explained to us very vividly his point of
view,
00:10:47 which turned out to be a synopsis from the meetings with other professional service providers
that we had before.
00:10:54 Their CFO's statement was: Otfried, cash flow is We are a professional services provider, not
a bank.
00:11:01 We need to be able to send out correct invoices to our clients as soon as possible.
00:11:06 They will only pay when there is no dispute on the content of the invoice.
00:11:11 Thus, we invested heavily in the project invoicing capabilities of ByDesign
00:11:15 and the flexibility required in this area. Ingo will give you a deep insight into this topic in Week
2.
00:11:22 With our project management capabilities, we can support organizations delivering their
services
00:11:28 in an efficient manner, with functionality available both the desktop as well as mobile apps.
00:11:34 In resource management, we chose to offer a leaner functionality. In Week 3, Sandeep will
share with you what we already have
00:11:42 and what is currently under controlled availability. The one topic that goes through all goals is
analytics.
00:11:49 It is really an overarching and most important topic that our development organization
constantly enhances
00:11:55 with new features and functionalities. A powerful analytics engine based on a HANA in-
memory database
00:12:02 is simply the way to get real-time insight. This engine, of course, needs content.
00:12:08 Most of the relevant content is available as of now. Talking about new features, we will have a
look at
00:12:14 the new tile capabilities in the launchpad and the overview screens in the demo
00:12:19 to show how we support the stakeholders mentioned. Now, let's go for the demo.
00:12:26 I am now logged on with Catherine Kennedy- Woods, who is our company's CEO.
00:12:33 And, well, she's got the usual launchpad here and she extended it by herself
00:12:39 with a few tiles that were important to her on improved profitability. So she sees the gross
profit on sales,
00:12:46 operating profit margin, maverick spending, outstanding amount for accounts payables.
00:12:53 She sees the net sales revenue, the A/R overdue amounts, the accounts receivables,
00:12:59 and also aging aspects for receivables. Then she can see her headcount, the cost of goods
sold,
00:13:07 and utilization of her consulting unit. And there is one project which she is especially interested
in,
00:13:14 which she put here in the very last line, which is a project for Peter Sellers.
00:13:20 And then there she has a look at how much has already been invoiced, what the costs are,
and what the project margin
00:13:27 So this seems to be a hell of a project in terms of margin, while the other figures are maybe a
bit questionable.
00:13:35 Now, let's go to the next role to see, or the next stakeholder, to see how ByDesign supports
him.
00:13:45 And this is now Peter Sellers. So in our model company, his user is projectsO1s.
00:13:57 And, of course, he has also the launchpad. And, well, he introduced for himself a few key
project KPIs.
00:14:07 So, billed amount projects in his cost center, project costs, project margin, time recordings of
his team for the current month,
00:14:20 for the previous month, the same time recordings for himself, and time recordings current
month, and also the inventory,
00:14:29 which is the not-yet-invoiced time recordings and expenses to customers.
00:14:35 So for his cost center, for example, it looks okay-ish here, so it's yellow.
00:14:42 The scale here goes from green to yellow to red. Whereas, with respect to his project,
00:14:50 he should probably do some billing sometime soon. Okay, talking about overviews.
00:14:58 So you saw, when you go to the launchpad, the launchpad is immediately there
00:15:01 because intelligent caching algorithms are employed. And now we're on the overview page.
00:15:07 So also, the reports are cached here. But let's have a look at them now.
00:15:14 So Peter is, obviously, interested in project performance, invoiced project revenue, and he is,
of course, also,
00:15:23 and you remember what you saw on the launchpad, he's also interested in billing.
00:15:29 So what has already been invoiced, what has not been invoiced.
00:15:35 He's also interested in the revenue contribution of his staff, where he can, for example,
00:15:42 see that, well, he invoiced
45,000 in a certain timeframe and had to write off 10,000.
00:15:50 This is probably something that he should think about. And there is still something more to
invoice.
00:15:57 Okay, with that, let's switch to the next persona. The next persona is Greg Taylor.
00:16:07 And his user is directorO1s. So you will also meet these users in your demo tenants
00:16:16 and will also be aware of their usernames by then. Greg is our resource manager, so he has
an additional role.
00:16:25 He's heading the unit to which Peter's unit belongs. He's a consulting manager.
00:16:32 For his resource management work, he has a look at his reporting line unit's time recording
00:16:39 for this month, last month. He has a look at the utilization of his consultants.
00:16:46 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.
00:16:58 For the current month, which only started two days ago, he hasn't done any time recording so
far.
00:17:06 With that, let's go to our next persona, which is Roberta Johnson. Roberta Johnson's user is
salesO1s.
00:17:19 Oops, sorry, a typo in there. Okay, and since, in her role as back office staff,
00:17:37 she's interested in billing. So she also put some key performance indicators
00:17:42 on invoiced project revenue, of the still-to-be-invoiced amount for all projects,
00:17:49 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.
00:18:09 Well, the next role is Robert Ducan. And his user is consultant02s.
00:18:26 And you see, he has only a few work centers here. So he also has restricted functionality here,

00:18:33 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
00:19:27 enhance the launchpad with a few quick start capabilities. Okay, with that, let me get back 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
00:00:17 through different use cases, to what it means when considering cost and revenue aspects.
00:00:25 The idea of this course is, of course, not to introduce you to project management
methodologies.
00:00:30 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?
00:00:40 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,
00:03:22 and with that, have an impact on a company's financial result should they fail,
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.
00:06:41 I did not yet talk about invoicing since this week is mostly about the project business object.
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,
00:10:05 you were using internal orders as, sort of projects, but you always had an issue.
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
00:13:42 a journal entry voucher in the system. When it comes to overhead cost projects,
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.
00:17:29 Thanks for the time being and see you back in the next unit.
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,
00:06:43 you will end up with a direct cost project. Then, as said, we have different sources for the
project creation.
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
00:10:43 as well as maybe a network relationship, they are displayed here in a hierarchical view.
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... when it
comes to scheduling,
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,
00:14:51 this task is only to start at the indicated point in time. Now we change to backwards
scheduling, so "Latest Dates".
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.
00:03:28 The baseline planning is usually what a project lead is measured against. If you want to see
how projects develop over time,
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.
00:07:10 And the remaining work comes with a date when that change was performed.
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.
00:11:34 And if, for example, I said, "Uh, no. This is not okay." And in that case, the overall status would
be Not 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... you will stay on the Work tab. And then add the additional services and
people there.
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,
00:15:24 and now it turned out that we're running into an issue during our software setup phase.
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... it's myself, it's Peter Sellers. And I have to do, say, another
30 hours.
00:16:52 And in addition to that... no, not Checklist but Scheduling... we know it's not going to take 13
days,
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.
00:20:08 So, it's still "In Planning". What I would do now is I would close the project,
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... So, under Project
Management, we have the Change Management work center view,
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,
00:24:13 and introduced you to project change management. Well, with that, thanks for now and see
you back in the next unit.
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.
00:03:44 When I say "usually", I'm referring to the fact that you can also introduce structure nodes,
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... this
Consulting Canton group became too big,
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,
00:07:42 invoicing for customer invoices, supplier invoices. As well, they do master data and user
management stuff,
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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