Status
Owner	Anjali Upadhyay
Stakeholders	The persons consulted or otherwise involved in making this decision. Type @ to mention people by name

Issue

Currently, there are multiple applications to manage Sysenqo's portfolio of projects. In principle, all these applications ( COLMAR, WEGO, BIARRITZ, WAVE) provide the ability to manage the lifecycle of a project from idea stage to its closure. However, these systems do not automatically integrate with the financial ERP systems to get the complete monitoring and tracking of projects. Some of these applications (such as COLMAR) are at the end of their life and require improvements and upgrades. Existence of multiple applications pose following challenges in overall Portfolio and Project Management

No single source of truth
Inconsistent reporting
Manual and disintegrated processes
No audit trail

Recommendation

Based on the analysis and evaluation of pro's and con's of the proposed options Option A - SAP S/4Hana EPPM (Enterprise Portfolio and Project Management) is recommended for effective portfolio and project management in Syensqo.

Background & Context

Syensqo’s project portfolio is largely comprised of the Capex related projects. Capex management is detailed in the CAPEX 01 procedure based on the project classification (Current, Medium, Major and Major > 50 M€). The Group Investment Committee provides the ELT with recommendations for approval of major projects (> 7M€) but some approvals and challenges are nevertheless mandatory for projects < 7M€. Capex01 procedure defines the process and guidelines for prioritizing and ranking the Capital projects based on the investment reasons that are aligned with the Group and GBU strategic objectives and envelops.

Small projects can be managed (for realization) by GBU/Sites without the help of the GEC (Group Engineering and Construction) and is not systematic. There are multiple local/site specific project management tools for detailed planning of schedule, deliverables, milestones and resources. WBS elements in SAP are used for posting financial transactions and procurement of materials and services.

OPEX is not managed using projects and OPEX costs are booked to specific cost centers.

Since, there is no strict mandate to manage all projects in single application/system, Syensqo have below portfolio and project management applications.

Application	Used by	Features/ Functionalities	Challenges
COLMAR	Group and GBUs (inconsistently)	Groupwide application intended to approve and manage all Capex projects. Major Projects (>7m€) must be registered and approved by ELT (board) Provides governance and workflow for capex approval Every Capex Project should be registered in Colmar to be created in SAP PS Projects are forecasted based on actual spend in SAP PS Reporting and data exchange with SAP is done via BW queries Document attachment functionality exists but not used religiously	Minimal data integrity & poor data quality as not all GBUs/sites use Colmar rigorously Does not provide audit trail of changes No automatic integration with SAP. Manual BW queries are used for data exchange Budgets are held in google sheets Poor adoption of tool across all GBUs ( only mandatory fields are entered) Outdated and is at end of life
Accolade (WEGO)	R&I	Portfolio and Project decision tool to manage innovations from Idea to commercialization Allows Phase gate model based on predefined deliverables and governance	Standalone tool that do not integrate with SAP (WP1/PF1) Only Portfolio Management, without visibility of real time financial impacts No tracking or visibility of project execution apart from phase and gates tracking No budgeting and forecasting Old version
Accolade (BIARRITZ)	IT	IT's Portfolio and Project management tool same as WEGO	same as WEGO
WAVE	Manufacturing Excellence	Web based Portfolio management tool for improvement initiatives ( each initiative is a project) Wave is used for lifecycle management from Idea to Implementation Potential Capex and Opex are indicative only for analyzing initiative impact.	Wave is a standalone tool not integrated with SAP (WP1/PF1) Only Initiative Management, without visibility of real time financial impacts No tracking or visibility of project execution

It is evident from above analysis that there is a lack of standardized and integrated Portfolio and Project management tool in Syensqo. This KDD intends to evaluate an integrated and consistent tool for the management of the portfolio of projects.

Assumptions

All financial and reportable non financial information resides in SAP S/4Hana for seamless integration and informed decision making process for prioritization, ranking and budget allocation of projects across all GBUs.
This KDD does not intend to remove/replace operational project management applications ( such as Microsoft projects) which are used to manage detailed operational project schedule and resources (people). Detailed operational requirements will be analyzed in detailed design phase.

Constraints

No constraints identified in this phase. Further assessments will be done in detailed design phase.

Impacts

Implementation of SAP S/4Hana EPPM as following impacts

Requires separate license to use EPPM
Requires consolidation of data from various applications for consolidated portfolio management
Other projects - There are other projects to upgrade the existing applications ( such as COLMAR) will be impacted by this decision. Timelines need to be assessed
Requires change management to get business buy in for adoption of core and common solution across all GBUs.

Business Rules

Existing business rules and procedure such as Phase/gates and CAPEX01 procedure and guidelines can be adopted in implementation of SAP EPPM. Further details will be analyzed during detailed design phase.

Options considered

Option A: SAP S/4Hana Enterprise Portfolio and Project Management (EPPM)

SAP S/4Hana Enterprise Portfolio and Project Management (EPPM) is an integrated module that helps organizations to manage their projects and portfolio of projects effectively. It provides the ability to manage enterprise wide portfolio across each lifecycle phase to align project investments and activities with strategic objectives of the organization. EPPM allows management of different kinds of projects portfolios.

Capital portfolios - Based on managing the investments and capitalizing the costs
Research and development (R&D) and Innovation Portfolios - Focus on optimizing the capital spend and resources in innovation cycle. Integrates with Idea management applications
IT Portfolios - Align IT related activities and resources with business strategy
Commercial Project Portfolios - Focus on execution of customer projects

EPPM consists of :

Portfolio Management which is about doing the right projects, provide the central repository of all project proposals, programs and projects. Each Project/Proposal has a clearly defined phase/gates which helps in structured decision making. It allows prioritization/ranking of projects using common process framework, underpinned by consistent metadata and metrics. Approved projects proceed to the project execution post prioritization. Portfolio management also provides enterprise wide reporting of all projects based on various dimensions such a financial, operational or organizational. It allows risk and issue management and provides overall project health reporting.
Project Management which is about doing the projects right allows tight integration with financial and logistic processes. It provides ability to detail project structuring, planning ( Costs, schedule and resources), execution and monitoring. Project operational management and accounting rolls up into the portfolio management to provide a consolidated financial view of all projects. Budgets allocation to the projects is done based on prioritization and controlled against overruns.

Below picture shows the integrated portfolio and project management lifecycle.

SyWay Project > KDD003 - Integrated Project Portfolio Management Solution > image-2024-7-3_17-22-59-1.png

Option B: Continue as-is (multiple applications) but with integrated reporting solution

Continue using the existing multiple applications for managing portfolio of projects. Since, not all existing applications are integrated with SAP, an integrated reporting solution should be implemented to bring all the projects together from various sources to provide the overall reporting, tracking and decision making of all projects.

This approach may require updating CAPEX01 procedure to be aligned with the GBU specific project management framework such as phases/gates, metrics and deliverables.

Evaluation

Below table outlines the comparison of the proposed options for effective portfolio and project management.

	Option A - S/4Hana EPPM	Option B - Multiple Applications with integrated reporting
Pro	Provides standardization and alignment of Portfolio with Group's vision and goals through common Prioritization methods and scoring model Provides simulation and what-if analysis for making informed decisions Allows monitoring of the performance of the portfolio through detailed visibility into projects across the entire enterprise Provides integrated process and governance through stage gate reviews Provides aggregated view of Portfolio, programs and projects Allows Integrated Risk and Issue management for individual projects Provides native integration with Finance, Procurement, HR and EAM for project realization Allows multiple languages to cater to country specific needs	No or minimal change management required as continue as-is No additional training costs needed Provides Integrated reporting by sourcing data from multiple applications
Con	Requires upfront License, implementation and deployment costs Requires Change management and business buy-in from all GBUs	Does not provide standardization and alignment of portfolio across all GBUs Does not provide integration with Finance, Procurement, HR and EAM for project realization Does not provide single source of truth Requires cost of ownership and maintenance for multiple applications Does not provide integrated audit trail