What it’s SAP CPM? & Which it’s the difference with SAP PPM?
I have been present in a conference call with a SAP employee about SAP CPM, and some kind of click passed into my mind on that moment. The future it’s in our hand and I will give you some details about this.
At every project that I participated, always asked me myself –> Which is the best way to implement this solution?
In past just with implement SAP PS in a company was a real solution, but in present this implementation of SAP PS solution it’s not enough.
User experience has improved the use of software and new technologies of web or cloud solution. This user experience was translated to the rest of SAP solution in SAP World as this strategy:
This kind of UX strategy are builded it from this instance, that help to users to identify the best way of manage and use of new technologies with a global vision.
So comparing SAP PS with new Project Management technologies, it’s not enough and SAP have been developed SAP CPM for the Commercial Project Management.
This new strategy came with SAP CPM, and now we will view all detail of this solution:
1) What it’s SAP CPM?
SAP Commercial Project Management is a tool to manage business projects oriented to clients or sell project to clients. Provides solutions that address the core business process requirements of companies that offer project-based services to their customers. Covers multiple processes in an end-to-end scenario spanning the selling, planning, executing, monitoring, and controlling of projects. Companies that sell projects (for example, in the professional services or the engineering, construction, and operations industries) can use these solutions to further professionalize their core business processes and expand beyond back office capabilities.
SAP CPM it’s usually uses in Engineering, construction and operation (in SAP this is not an Solution Industry, just business process). You can see it in https://solutionexplorer.sap.com/solexp/ui/#/search?facets=IND-I_ECO
There are 3 three important packages into SAP CPM:
- Project Workspace: Highly user-friendly and flexible work enviroment that provides an overview about all relevant information across systems and applications.
- Project Financial Planning: Unified planning and controlling of quantities, costs and revenues throughout the complete project lifecycle (bid, plan, forecasting, execution).
- Issue and Change Management: Recording and tracking of project issues and change requests and their cost revenue impact.
2) Which it’s the difference with SAP PPM?
SAP Portfolio & Project Management & SAP CPM are two differents solutions with an integration at process Asset Management –> Real Estate Lifecycle Management –> Investment and Construction for investment projects. They are in the same solution landscape of Enterprise Portfolio and Project Management.
SAP CPM helps companies analyze investment alternatives and details; track project budgets, milestones, and delivery; and communicate electronically on bids. Our software also helps companies manage process steps; automate payments and deadline reminders; and track architectural, usage, and land data. Management, monitoring, and collaboration functionality help managers keep projects on track, communicate with suppliers, meet deadlines, and provide consistent data to support better decision making. Companies can get a clear view into investments and property portfolios, gain project insights and budget control, reduce project risk, save time in supplier collaboration, and improve the bidding process.
The SAP Portfolio and Project Management application gives high-level visibility over the entire project portfolio, portfolio analytics, and resources. Portfolio management involves five basic areas: strategic planning, resource and schedule planning, cost management and control, information transparency, and improved management oversight. This allows the alignment of portfolios with corporate objectives, including portfolios of projects, programs, and services within R & D, professional services, for capital investment projects, and IT.
- Portfolio and bucket hierarchy management
- Decision flow management
- Financial and capacity planning
- Resource management
- Portfolio monitoring
- Reporting cockpit
One company would have different project types, one oriented to clients (Commercial or Opex) and others oriented to investment (assets), so it’s possible that this tools will work together.
Soon I will write more details.
Nice post Mariano. There is obviously some functional overlap between PPM and CPM, but there are some distinct differences as well. In a nutshell, PPM does Portfolio Management better than CPM, and CPM does project planning and execution better and more robustly than PPM.
Thank you Ken!! Your appreciation was correct.
I think that SAP CPM was created to get focus to business target & leadership in this kind of solutions. SAP PPM don't has commercial direction and only get focus in Portfolio Management as you say.
Important companies in future they will have Project Manager Offices to all kind of project.
Mariano, Great post. Congratulations! That's true, We were together in a couple of meetings with a SAP Expert of SAP CPM and I would like to enrich your post. SAP CPM can be used in every industry but the main focus is in the Engineering construction and Operation (EC&O) industry. We can browse by industry in the solution explorer to confirm that. On the other hand, SAP CPM have a very nice integration with SAP SD to create the invoices, as you explain in the post, SAP CPM is oriented to companies that sells projects.
Thank you Adrian for your response & appreciation!! Was a pleasure to work with you. Good projects and good people don't repeat again.
That's true, SAP CPM has a good integration with SAP SD & SAP CRM.
I hope that we have more SAP CPM implementations.
CPM fits a Professional Services company almost better than EC&O. It adds functionality to Resource Related Billing that is not available in ECC.
Resource Related Billing it is available on ECC I have implemented, however it not user friendly.
Excelent Mariano, Very clear explanation. CPM is more oriented to ETO Engineering to Order process. PPM is more generic to use in Project management and usefull when you have differents types of projects but you want to get a high level unified vision
Thank you Claudio for your appreciation & time!! You are right!
I hope there's more SAP PPM implementation projects in Europe.
Soon I will add more technical details.
Thank you for your post. Is it possible to find manuals for this functionality?
We want to implement a management solution portfolio and project management in an engineering company, but I think CPM fits better than PPM+PS and I would like to perform a series of tests.
Thank you for all.
If you are looking for a Portfolio Management (aggregate many projects) then PPM would be a better fit. PPM Projects are also integrated to CPM out of the box. CPM is a project centric tool.
Thank you for your answer.
Yes, we have a lot of them. Now we are in SAP CPM version 2.0 with SP3. A good step to know more about this solution it's checking SAP CPM RDS solution.
Please check the follow links:
SAP Commercial Project Management 2.0, SP03 – SAP Help Portal Page
Also, you have a solution that are integrated SAP PPM and SAP CPM (called EPPM) for different industries and known processes like CAPEX Projects.
As Ken Melching post's you have different solutions to integrate, but this will depends of business needs.
These documents are very interesting! Thank you for your time and help.
We are using SAP PPM 6.1 with SP04 and now we are looking for implementing SAP CPM. I have a few queries on that:
1. Can we use CPM together with PPM? What would be the integration scenario/points in this case?
2. How about the Licensing for CPM users? Do we need to buy additional licenses or we can upgrade our current PPM licences with CPM?
3. We have a lot of custom enhancements in PPM, How much should we concerned about them while implementing and integrating with CPM?
4. How should we start with CPM installation in our SAP systems? Any step by step road map for it is available?
Thanks & Regards
I respond your question:
Thanks for your reply (after 3 years though :-D). You mentioned there is a solution called EPPM and with some integration at project creation. is there any deployment solution or SAP help page for it to understand and set up this integration?
We are actually setting it up for a client and we observed financial planning with CPM are way better than in PPM. Hence, looking to integrate CPM project with PPM item for better planning capabilities.
We are in S4 Hana 1909.
Hi Mariano - We are implementing CPM 2.0 SP06. We have a requirement to save documentation related to the project within CPM - this would be like drawings, customer specs etc. Are you aware of best practices for Document Management within CPM. How are you doing it? We would prefer to integrate with one of our document management systems. Thanks - Jim
To integrate Document Management with SAP CPM, you can use the follow solutions:
When using CPM does the Cost Plan developed during the Sales cycle (bid) seamlessly flow into the SD and PS modules ? If integrated with MRS would the resource plan also flow seamlessly into the SD and PS modules ?