SAP Portfolio Management


Hi All, this Blog aims to throw some light on the some of the topics at an advanced level for those who are new to the SAP PPM module and eager to know what it is. In no way, this piece of information could be used as a master reference for your organisation’s SAP PPM implementation. An experienced consultant should be guiding your application in all aspects according to your organisation’s Business processes and specific requirements.SAP Portfolio Management An Organization can function in an efficient manner if the information from different sources about its investments, expenditure, resources and revenue could be brought to a single integrated Dashboard for analysis and evaluations. These assessments added with the facility of project strategic planning and resource planning would be an absolute treat for the project managers.This Blog will cover the following topics in a phased manner. Let us start with Portfolio.

Fig 1: SAP  PPM Components Overview

SAP Portfolio and Project Management (SAP PPM) consists of SAP X-RPM solution and the Collaboration Projects (c-Projects) solution in a single integrated software package. The SAP X-RPM is now known as Portfolio Management. The c-Project module is Project Management and is now renamed as Project Management Project.

Fig 1A: SAP PPM Overview- with Project Management scenario

A strategic project resides in the SAP Portfolio Management. You can perform all strategic planning activities for a project in Portfolio Management.

What is Strategic Planning?A simple one-word answer to this question is “Front End Engineering” or “front-end loading” (FEL). The more the time and effort you spend here, higher will be the success of the project.Strategic planning of a project is a process of documenting the answers to the following questions.

  •  What is this new concept or Idea?
  • Why should we do this?
  • Is it in line with the Organisation’s direction?
  • This project belongs to which program?
  • How much will it cost?
  • When can we complete?
  • What are the risks involved?
  • Can I see the risk-reward chart and cost forecast?
  • What is the financial return from this project?
  • What is the capacity requirement for the project?
  • Do we have enough resources to complete the project?

SAP RPM or SAP Portfolio Management is the SAP Module, which provides a central platform to carry out a project from strategic planning stage to the realisation phase. In this process, it stores your initial perceptions, assumptions and plans. As the project goes into realisation phase, it collects the other key figures and adds them into your financial and capacity dashboards.

Fig:2 Example Detail screens of Portfolio Item

Fig:3 Portfolio Item Financial planning

Portfolio ManagementWhat can you do here in SAP Portfolio Management?

  • Create Portfolios to represent the various programs of your Organisation
  • Create Buckets and arrange hierarchically to represent different department or Business functions.
  • Create Initiatives to document the concept, Ideas, scope, requirement, Original estimate, risk reports, risk analysis, Cost-Benefit Analysis and execution methodologies.The Initiatives usually represents multiple projects that might be required to realise the Ideas
  • Create the strategic project called Portfolio Item preferably under the Initiative
  • Report financial and capacity values of projects in Portfolio Management from one or more connected Systems
  • Create Reviews and perform prioritisation of projects using questionnaires, scoring models and scoreboard
  • Perform risk analysis for individual Portfolio Items; and
  • Execute BI Reports.

What is Portfolio? A Portfolio is strategic Organisational structure set up to achieve its goal and vision. A multinational company can have Portfolio in each country of its operation. A Car manufacturing company can have different Portfolio for each of its product models. It is good practice to have different Portfolio for totally unrelated activities. The screenshots below Shows the Portfolio details.

2015-10-25_14-58-06-Portfolio Details screen-2





Fig 4: Portfolio Details-An example screenshot what does a Portfolio contain?A Portfolio contains Portfolio Buckets. The buckets position itself in a hierarchical way under a Portfolio. There is one real hierarchical arrangement of Buckets for every Portfolio. According to the Organisation’s Business requirement, there can be many alternate hierarchical positioning of Buckets for a Portfolio. Please note Cross Portfolio reporting is not possible to Portfolio Management. BI tool is a must for Cross Portfolio reporting requirement.What is a Portfolio Bucket? A Bucket is Portfolio object that is used to contain Portfolio Items (strategic projects) and Portfolio Initiatives. A Bucket is used to report the financial and capacity related key figures in an aggregated way for all the projects contained in that Bucket. An upper Bucket in the hierarchy aggregates the key figures from the subordinate buckets.To be continued. Would you like to know what is a Portfolio Bucket? Read my next blog here.