Finance &
Controlling
Procurement
Sales &
Distribution
Plant
Maintenance
Quality
Management
Business
Analytics
Human Resource
Management
Project
Management
The Construction & Operations industry has become one of the largest sectors over the last decade – its worldwide growth driven by rapid urbanization, rising demand for infrastructure, and increased government spending. However, today this sector is at a crossroads. On the one hand, demand continues to rise unabated, while on the other hand, challenges such as increasing complexity of projects, rising material costs, lack of skilled workforce, increased competition, unwieldy document and contract management, and shrinking profit margins are constraining reinvestment, risking the derailment of construction projects. Moreover, inefficiencies in project planning and scheduling, lapses in communication and lack of collaboration between stakeholders have kept productivity levels stagnant.
Companies are thus looking for a robust, stable and reliable digital platform that connects core enterprise processes while also offering flexibility to respond to changes. The solution should give complete visibility across the business, while enabling real-time management of opportunities & proposals, sourcing & procurement, inventory control, equipment/asset management and maintenance, project management and invoicing.
Benefits offered by SAP for
the Construction & Operations Industry
- Eliminates difficulties in keeping track of various departments
- Risk analysis reports to explicitly identify project risk
- Drill down analysis to find the root cause of a problem
- Reduction of overall process costs and maintenance cost
- Overall Improvement in TCO
- Increased business profitability
SAP for the Construction & Operations industry
Connect
- It provides a solid framework for the transition to ‘connected construction’ – a scenario where builders can connect seamlessly with suppliers and contractors, business processes are automated, and labour, equipment, and supply chain are perfectly synched to demand.
- Connectivity to all extended processes with real-time data capture and analytics enables access to a single source of truth data. This helps to resolve problems of unnecessary delays, reworks, errors, budget and schedule overruns, communication breakdowns, etc. This also results in better decision making and improved quality of construction.
- It uses the ‘digital twin’ concept across the design, planning and build phases, wherein all stakeholders have access to the digital representation of the construction object plus a consistent data record of its phase-wise construction.
Simplify
- Instead of multiple project screens for creating and maintaining project data, all data is consolidated and made accessible through a single dashboard, offering an intuitive and user-friendly experience on any device.
- There is a single point of entry for the execution of all project-related tasks. Hence, project execution is not only faster, but also more accurate.
- Work Breakdown Structure (WBS) elements are used to manage projects phase-wise with work order creation, resource allocation and cost estimation at every phase.
- SAP implementation in construction industry results in structured workflows that enable efficient management of change in project definition, cost, schedule or scope. .
Optimize
- Analytics and forecasting tools enable evaluation of past bids and performance, planning and estimation of project lifecycles, and prediction of demand, which results in more realistic bids, minimum cost overruns, and increased customer satisfaction.
- Measurement of time and budget KPI’s enables management of project performance, increasing project effectiveness, thus delivering better client satisfaction.
- Real-time MRP and monitoring of production costs and variances help reduce inventory and manufacturing costs.
- Quality Management capabilities enable companies to manage compliance with industry quality & regulatory standards and reduce penalties.
- Equipment is actively monitored for performance and productivity, and sensors help in early detection of issues. Ready access to warranty information, maintenance recommendations, and spare part replacements along with step by step visual instructions for assembly, help to minimize down-time of assets.
Grow
- An integrated solution supporting end-to-end processes empowers companies to try out new business models and offers them a foundation for further innovation and competitive differentiation.
- As they scale up the business, companies can deploy more line-of-business extensions such as workforce management, resource scheduling, business development, etc. to support their growth and drive more success.
