How SAP Professional Services Solutions Increase Profits
In today’s complex Professional Services environment, one of the most critical aspects of achieving project profitability is Effective Project Management and Profitable Resource Management (PPM).
What are some of the characteristics of successful PPM Resource Management?
First off, you must have a system that provides reliable project accounting and controlling. This system must have the ability to:
- Accurately allocate Time and Expenses to projects
- Accurately manage Work-In-Process (WIP) and invoicing
- Provide speedy and accurate invoicing processes
- Enable optimization of sourcing and service procurement
The second major requirement is to provide an effective enterprise class project management system which provides:
- Full visibility into project status
- Project team collaboration
- On-time delivery of projects, within budget
Finally, the third major requirement is an efficient resource management system. An efficient resource management system provides:
- Information about which resources are available and the ability to book resources tentatively
- Doesn’t take too long to staff project roles
- Quickly onboards resources who are ready to work
- Visibility of resources assigned to projects and their activities
What issues can SAP Engagement Management help Professional Services firms address:
- Provide the ability to create accurate proposals and quotations
- Prevent revenue leakage and high DSO (Days Sales Outstanding)
- Reliably provide an overview of overall engagement margin and profitability
- Provide highly effective reporting of work in progress using Executive Dashboards such as the this sample dashboard.
The Project Management functionality of the SAP Professional Services solution can also:
- Provide timely information about which resources are available
- An ability to tentatively book resources
- Quickly staff project roles
- Provide visibility of resources assigned to the project and their activities
This is just a small taste of the of the solution. Our aim here is, of course, to show some of the analysis capabilities built into the solution, which can be tailored to your specific requirements.
Lonnie D. Ayers, PMP
President, SAP BW Consulting, inc.