I nt n t r od o d uc uc t i on t o SA P Re a l Es t a t e Management Christian Mnich Solution Manager, SAP AG Rome, October 11, 2006
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
R e a l Es E s t a t e B u s i n e s s Pr Pr o c e s s e s
Develop
Buy land
Find investors
Prepare development plan
Construct
Ensure funding
…
Use
Create architectural design
Maintain and repair buildings and equipments
Organize space and move management
Prepare and organize construction construction work
Manage lease and service contracts
Assign employees to rooms
Plan modernization and refurbishment
Manage events and meeting room reservation
…
...
Request building permits
Operate
Buy construction services and material …
I m p r o v i n g Co r e B u s i n e s s o f Pr o f e s s i o n a l Re a l Es t a t e M a n a g e r s
Office Center Managers Facility Managers Housing Companies
Land Developers
Real Estate Investment Trusts (REITs)
Shopping Center Managers
Pr o f e s s i o n a l R e a l Es t a t e M a n a g e r s : Pa i n Po i n t s
Facility Managers
Optimize offer handling & standardize service processes
Reduce administrative costs & issue invoices promptly
Housing Authorities
Standardize and manage contracts safely
Automate communication with tenants, service provider & banks
Real Estate Investment Trusts
Portfolio transparency & detailed performance measurement
Support multiple national legal regulations
Shopping and Office Space Managers
Optimize customer relationships
Increase efficiency of administrative processes
Pr o f e s s i o n a l Re a l Es t a t e M a n a g e r s : K e y Ch a l l e n g e s & T r e n d s
Key Challenges*
Adapt technology
Improve workforce development
Face business competition
Optimize risk management
Market Trends
Augmented portfolio diversity through market globalization
Increased market consolidation
Higher dependency on capital markets
Higher awareness for legal compliance
* Source: IREM Institute of Real Estate Management: Transforming Real Estate Management: Four Strategic Issues 2006
Op t i m i ze Co r p o r a t e Re a l Es t a t e M a n a g e m e n t
Airports
Insurance Banking
Public Services
Oil & Gas
Railways
Energy Suppliers
Postal Services
Telecommunication Retailers
Co r p o r a t e Re a l E s t a t e M a n a g e r s : Pa i n P o i n t s
Airports
Manage plenty of percentage rent agreements Repair & maintain highly-technical facilities
Financial Services
Manage headquarters and local affiliates
Public Services
Create portfolio transparency & complete master data Optimize space utilization & reduce service costs
Retail Companies
Professionalize land development & transaction management Increase level of process automation
Telecommunications and Utilities Companies
Optimize lease-in of facilities for technical infrastructure
Co r p o r a t e Re a l Es t a t e M a n a g e r s : K e y Ch a l l e n g e s & T r e n d s
Key Challenges *)
Provide optimized real estate services
Increase space utilization
Raise revenues with third parties
Decrease operative costs
Market Trends
Higher interest for real estate management at c-level
Increased need to integrated to other corporate departments
Demand for space changes more often
Increased cost pressure
* Source: Feedback from SAP customers
Pa i n p o i n t s Re c e n t e c o n o m i c d e v e l o pm e n t
High vacancy levels in many commercial properties
Increased pressure to lower internal space costs
Need to offset declining results in other business areas
M a r k e t g l o b a l i za t i o n
Expansion of subsidiary network to new markets
Manage more complex property portfolios and real estate activities
Mergers and/or redistribution of property portfolios according to changes in company structure
Em p h a si s o n c a p i t a l m a r k e t i n d e c i s i o n m a k i n g
Benchmarking of maintenance and service charges between properties
Increased need to compare return on investment (ROI) of property
Necessity to achieve competitive risk-return ratio
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Wh a t i s SA P Re a l Es t a t e M a n a g e m e n t ?
SAP Real Estate Management ..
.. is an application that is made specifically for real estate business
.. is part of standard mySAP ERP
.. is made for professional real estate managers as well as for corporate real estate managers
.. includes about 15 years experience of SAP with real estate software
.. is available in it’s new version since mySAP ERP and R/3 Enterprise Extension Set 2.00
.. is already successfully used by customers in about 20 industries in more than 40 countries
.. supports globalization trend and growth into new markets
So l u t i o n M a p – SA P Re a l Es t a t e M a n a g e m e n t Portfolio Management
Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management
Support Processes
Real Estate Analytics
Real Estate Search
Lease Management
Master Data Management
Condition Adjustment
Space Management
Partner Management
Percentage Rent Cost Recovery
Transaction Management
Third Party Management
Room Reservation
Legal Compliance
Move Management
Construction
Modernization & Refurbishment
Maintenance & Repair
Service Management
Accounting
Controlling
Tools
Integration to SAP Industry Solutions
Clear representation of core processes
Extensive application integration:
Real Estate Solution Map, Edition 2006
– Accounting processes such as third-party tenant receivables, landlord payables – Corporate cost accounting (Controlling) – Asset accounting, project management, and technical facility management processes (mySAP Product Lifecycle Management) – Integration to external systems – e.g., Graphical Information System (GIS), ComputerAided Design (CAD)/Computer-Aided Facility Management (CAFM) – Dynamic reporting possibilities (SAP Information System and SAP BI)
Comfortable user interface
Customizing (flexibility)
Easy add-on development
Po r t f o l i o M a n a g e m e n t Portfolio Management
Real Estate Analytics
Master Data Management
Partner Management
Transaction Management
Portfolio Management helps you define your business' real estate infrastructure and manage business partner relationships. SAP Real Estate Management can help you do the following:
Analytical tools to support you in strategic, tactical and operation decisions
Standard reports on costs, revenues, vacancies, measurements, contracts, conditions, maintenance and service costs and more
Defining flexible object structures according to architecture, usage and building services
Recording of property characteristics, fixtures, fittings and equipments
Entering master data to tailor your real estate infrastructure to accommodate primary business activities
Transparent views of your contractual partners
Mapping of processes concerning the acquisition and disposal of your assets
Co m m e r c i a l Re a l Es t a t e M a n a ge m e n t Commercial Real Estate Management
Real Estate Search
Lease Management
Condition Adjustment
Percentage Rent Cost Recovery
Third Party Management
Legal Compliance
Commercial Real Estate Managers such as Shopping Center Managers, Housing Authorities and Facility Managers are looking for a solution to cover their core business based on an ERP solution. Their key challenge is to make technological adaptation work. SAP Real Estate Management provides them with:
Matching vacant properties to prospect tenants Creating contract offers Managing lease and vendor contracts Monitoring lease deadlines and renewal options Carrying out rent adjustments Managing percentage rent agreements Calculating chargeable expenses, balances, advance payments, and adjustments Tracking settlement results Handling correspondence for rental processes Handling mandates and management contracts Supporting country specific legal requirements
Co r p o r a t e Re a l Es t a t e M a n a g e m e n t Corporate Real Estate Management
Space Management
Room Reservation
Move Management
Corporate Real Estate Managers such as Airports, Retailers and Public Services want to integrated the very important area of property management in the overall processes such as Controlling, Reporting and Financials. Their key challenge is to increase the space utilization, prevent budget violations, and user-friendly service management. SAP Real Estate Management provides them with:
Comprehensive space management
Managing corporate portfolios
Assigning resources to spaces
Managing framework agreements
Reservation of objects and booking of additional services
Efficient move management
Improved options of cost allocation
T e c h n i c a l Re a l Es t a t e M a n a ge m e n t Technical Real Estate Management
Construction
Modernization & Refurbishment
Maintenance & Repair
Service Management
Technical Real Estate Management supports all processes related to building operations, including maintenance on rental objects, service management, the administration of available spaces, and building operations. SAP Real Estate Management can help you do the following:
Conducting scheduled and unscheduled maintenance on your rental objects
Displaying costs in integrated reports
Assigning services to externals
Monitoring modernization and maintenance tasks
Handling malfunctions and problems reported via phone
Preparing and procuring good and external services
Managing available spaces
Maintaining space and rooms as graphical representations with CAD/CAFM systems
Su p p o r t Pr o c e s s e s Support Processes
Accounting
Controlling
Tools
Integration to SAP Industry Solutions
Support processes help you in rental accounting and controlling activities. Additional processes additional Tools are available to create and manage correspondence and related documents with your business partners. SAP Real Estate Management can help you do the following:
Periodic postings for real estate contracts and objects
Tenant account maintenance
Planning of costs and revenues
Settlement of costs incurred by real estate objects
Correspondence and document management for all real estate processes
Graphical depiction via integration to CAD/CAFM and GIS systems
Additional tools to adapt and enhance the SAP Real Estate Management solution to external systems and services
Integration to SAP Industry Solutions such as Public Sector Management
SA P Re a l Es t a t e M a n a g e m e nt c a n s u p p o r t y o u i n… Co m m e r c i a l Re a l Es t a t e M an ag em e n t
Lease Management Condition Adjustments Cost recovery Percentage rent agreements
Pr o j e c t M a n a ge m e n t
Planning Budgeting Execution Settlement
Co n t r o l l i n g Pr o c e s s e s
T ec h n ic h a l Re al Es t a t e M an ag em e n t
Service Management Modernization and Refurbishment Maintenance and Repair
Comprehensive Real Estate Controlling
Accounting
Expediting procedure for overdue items Incoming payments Periodical postings
Re a l Es t a t e L i f ec y c l e Collect and analyze data
Optimize operational efficiency across all functions to improve overall business performance
Analyze performance
A Annaallyyzzee Revise strategies and (re)evaluate portfolio and investments
Control, analyze, and evaluate data and key figures
Perform operative and strategic planning of costs and revenues
Develop and optimize real estate portfolio
M Meeaassuurree
M Maannaaggee
Service Charge Settlement
Project Management Master Data Management
Technical Facility Management
O Oppeerraattee
Contract Management
Correspondence Condition Adjustment
Business Partner Management Rental Accounting
M a s t e r Da t a M a n a ge m e n t
Flexible object structure
Usage view
Architectural view
Technical view
Dynamic rental spaces
Pooled space
Rental space
Rental unit
Graphical link to CAD/CAFM systems Different usage scenarios
Internal/external usage or rental
Multiple usage
Common usage
Grouping for easy handling and administration
M a s t e r Da t a M a n a g e m e n t : RE N a v i g a t o r
ONE central transaction – unified handling
For all real estate objects (architecture, usage, contracts)
For creating, displaying, and editing
For resubmission
For reporting
User-specific views
Worklist
User-dependent object list
Favorites list
Explorer functions
Display of the hierarchical dependencies
Direct call, context-sensitive direct link (forward, backward)
History of previously selected objects
Co n t r a c t M a na g em e n t
Flexibility
Use contract as vendor and customer contract
Use contract for lease and non-lease real estate activities
Assignment of various rental objects to one contract
Generate rental objects when contract is created
Comprehensive date and deadline management
Predefined rules
Flexible conditions and calculation rules
Dependent conditions
Condition purpose (actual, vacancy, market rent)
Integration
Assignment of Central Business Partner
to Accounting and Controlling
Scale1:75
Bedroom 2
Living room
Bedroom 1
Co n t r a c t M a n a g e m e n t : T r a n s pa r e n c y Lease-in (vendor) Lease-in (vendor) Contract cleaning (vendor) (vendor) Contract-- cleaning Building 1
Contract elevatormaintenance maintenance (vendor) (vendor) Contract-- elevator Building 1 Building 1 Rental object 1
Sub-lease (customer) Sub-lease(customer) Rental object 2
Sub-lease (customer) Sub-lease(customer)
Contracts Objects
Rental object 3
Internal (cost center) center) Internallease lease(cost
Co n t r a c t M a na g em e n t
Lease Scale1:75
Living room
Term Conditions Notice/renewal Key dates and diary functions Distribution Adjustment rules Service charges Document management
Bedroom 2
Bedroom 1
Real estate object Partners Cost center/ order/project
Signature
Correspondence
ACTIVATE
Date
Processes Debit position Payment Open item management Dunning Real estate controlling
Re a l Es t a t e Pr o c e s s e s
Automated processes
Periodic Posting of contract conditions
Adjustment of Conditions
Service Charge Settlement
Sales-Based Rent Settlement
Correspondence
Rule-based
Conditions can be dependent on existing conditions
Condition adjustment rules can be predefined and reused
Mass execution
Periodic postings and payments are generated and integrated in Accounting and Controlling
Sales-based rent settlement and service charge settlement can be executed for many contracts simultaneously
Processes can be simulated and executed step-by-step and reversed
Correspondence can be generated for all objects or contracts
Re p o r t i n g i n SA P Re a l Es t a t e M a n a g e m e n t Information System
For operative purposes
Reporting for Master Data, Measurements, Conditions, Contracts, Business Partners – Service Charge Settlement, Sales-Based Rent and Controlling –
Business Information Warehouse
For management and cross-application reporting
Info cubes, roles, queries and workbooks
Reporting for Portfolio Performance, Occupancy and Vacancy Rates, Partner Performance – Costs and Revenues, Rent Revenue, Cash Flow –
Flexible reporting
Easy to adapt
Easy access and exploration of information
Support on strategic, tactical and operational decisions
Reduction of costs through quicker decisions
Integration
Integration to mySAP ERP
SAP Business Information Warehouse
SAP Accounting
SAP Controlling
SAP Business Partner
SAP Plant Maintenance/Customer Service
SAP Project System
SAP SmartForms/Adobe
SAP Document Management System/Records Management
SAP Workflow
Interfaces
CAD, CAFM and GIS systems
Building control systems
H o w Ca n Y o u M a n a g e Y o u r Re a l Es t a t e M o r e Ef f i c i e n t l y U s i n g m y S A P ERP ?
SA P Re a l Es t a t e M a n a g e m e n t STRATEGIC BUSINESS INSIGHT
Increased transparency in your real estate portfolio helps you optimize your investment decisions. Key figures and benchmarking increase efficiency in assessing performance.
DIFFERENTIATION FOR TOP LIN E GROWTH
Leasing vacant space becomes simpler and faster. Risk of lost rent revenue is reduced.
PRODUCTIVITY AN D EFFICIENCY FOR BOT TOM LI NE GROWTH
Automation of contract management saves time and money. User satisfaction increases while administrative costs in service management are reduced.
FL EX I B I L I T Y T O ACT T ODAY
Management processes become more efficient thanks to ability to visually display complex real estate data.
Op t i m i ze d De c i s i o n -M a k i n g Co n t r a c t M a n ag e m e n t a n d L an d U s e M an a g em e n t , t o g e t h e r w i t h B u s i n e s s I nf o r m a t i o n Wa r e h ou s e , a l l ow y o u t o f u l ly t r a c k y o u r r e a l e s t a t e p or t f o l io .
STRATEGIC BUSINESS INSIGHT
Y o u r A d v an t a g e s
Provides better overviews of your real estate portfolio. Data is always up-to-date, while precision and verifiability are enhanced. Decision-making processes are faster and more efficient. Your internal and external reporting become more uniform.
Ou r So l u t i o n
Management of all master data related to valuation, from real estate contracts, the real estate cadastre, and the land register. Comprehensive reporting tools, predefined roles, queries, and workbooks.
I m p r o v e d Pe r f o r m a n c e M e a s u r em e n t B y d et e rm i n i ng k e y pe rf or m a n c e i nd i c a t o r s y ou c a n m e a s u r e p o rt f o l i o pe r f o r m a n c e a n d b e n e fi t f r o m b en c h m a r k i n g .
STRATEGIC BUSINESS INSIGHT
Y o u r A d v an t a g e s
Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.
Ou r So l u t i o n
Source: DID Deutsche Immobilien Datenbank GmbH (Germany)
Statistical key figures can be determined based on data from Controlling (CO) for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.
Ef f i c i e n c y i n Pe r f o r m a n c e A s s e s s m e n t K e y i nd ic a t o rs p ro vi de y ou w i t h i np ut f or b e nc h m a r k i n g an d pe r f or m a n c e m a n a g em e n t .
Y o u r A d v an t a g e s
Key figures for your enterprise can be determined quickly and easily. Improves your ability to compare your own real estate portfolio with data on the real estate market.
STRATEGIC BUSINESS INSIGHT
Ou r So l u t i o n
Statistical key figures can be determined based on data from Controlling for real estate and of your real estate portfolio. This data can be tied into an external benchmark system for comparisons with market data.
H i g h e r Fl e x i b i l i t y Fo r Co n t r o l l i n g Re p o r t s The new Controlling reports were created using SAP Query.
SAP Query offers a wide range of options for defining individual reports using various forms of reports, such as, basic lists, statistical reports and ranking lists. Using SAP Query, it is easy to adapt existing reports to meet your requirements or define completely new reports.
STRATEGIC BUSINESS INSIGHT
M o r e Se c u r e Re n t Re v e n u e s A c t i ve p a rt n e r m a na ge m e nt i nc r e as es t h e sec urit y of rent revenues. Offered Object
RE Search Request
Credit Check
Real Estate Search
DIFFERENTIATION FOR TOP LINE GROWTH
Contract Offer
SA P N e t w e a v e r
SAP R/3
Marketplace
SAP R/3
Credit Protection Agency
Y o u r A d v an t a g e s
SAP R/3
Improved security for rent revenues.
Ou r So l u t i o n
Efficient partner management with links to Accounts Receivable and contract management. Data can be exchanged with credit protection agencies.
A u t o m a t i c Co n t r a c t M a n ag e m e n t U s in g c o m p r eh en si v e c o nt r a c t m a na ge m e n t , y ou c a n m a p c o m p l ex c o n t r a c t s a nd h an d l e f o l lo w -o n p r oc e s se s e f fi c i e nt l y . Specify contract conditions
Execute periodic posting
Process open items
Y o u r A d v an t a g e s
Central mapping of relevant contract data, such as term of contract, conditions, posting terms, and option rates. Secure, simple, automated posting. Support for country-specific accounting standards. Simple-to-execute individual postings.
Post incoming payments
Clear items
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH
Analyze tenant account
Ou t So l u t i o n
Full reflection of all real estate contracts in the system, with integrated Account Payable and Accounts Receivable. Management of tenant accounts, including incoming payments, installment agreements, and clearing. Management of sales-based rent and security deposits. Integrated Controlling.
A c t i v e Se r v i c e M an a g e m e n t A u t o m a t i c s e rv ic e m a n ag e m e n t a s s i st s y o u i n o p t i m i zi n g p r o c e s s e s , r e d u c i n g c o s t s a n d i n c r e a s i n g user satisfac t ion. Tenant/User Create Service Agreement
Real estate manager
Request Service
Create Order
Accept Order
Y o u r A d v an t a g e s
Standardizing and automating repetitive processes (from requesting service to settlement) increases speed and efficiency in handling services. You can better monitor costs and quality of services provided. Satisfaction of both users and tenants increases. Optimizing the physical facilities of your real estate becomes easier.
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH
Service provider Report & Confirm Activities
Receive Credit Memo
Settle Order
Receive Service Charge Settlement
Ou r So l u t i o n
Purchasing management, including framework agreements with suppliers and service providers. Standardized processes using call centers for accepting service and repair requests from users or tenants. Option for fully electronic (paperless) handling of orders, from vendor credit memos to apportioning costs to users. Mobile asset management Budget planning, costs controlling, order monitoring
V i s u a l Di D i s p l a y o f Co C o m p l e x Da t a I n t e g r a t i o n w i t h CA C A D/ D /G I S s y s t e m s i n c r e a s e s t h e e f f ic i c i e n c y o f re re a l e s t a t e m a n a g e m e n t b y m a k i n g i t p o s s ib i b l e t o v i s ua u a l ly l y d i s p l ay ay c o m p l e x d a t a . Architectural or Cadastral Data
A
B
C
D
Contract Structure c t 1 a r r t C o n
Contract
C o n t r a c t 3 2
FLEXIBILITY TO ACT TODAY
Y o u r A d v an an t a g e s
Visual display of complex data for controlling processes, reporting and analyses
O u r So So l u t i o n
Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard
Re d u c e d A m o u n t o f V a c a n t Sp a c e V ac a c a nc n c y r ep e p or o r t s a nd n d t h e Re R e al al E Es s t a t e Se S e ar ar c h a s s i s t y o u i n r e d u c i n g p e r i o ds ds of vacanc ies.
DIFFERENTIATION FOR TOP LINE GROWTH
Y o u r A d v a nt nt a g e s
Increased transparency for contract terms and vacancies. Earlier and faster re-rental of properties. Automatic update of real estate data when contract signed.
Ou r So l u t i o n
Active vacancy management Real estate search functions, with the RE search request, offer, search and contract offer. Automatic transfer of offers to contract management. Option of integration with real estate marketplaces.
P r o c e s s Ex E x a m p l e : O p t i m i ze z e d Sp Sp a c e M a n a g e m e n t DIFFERENTIATION FOR TOP LINE GROWTH
Your Advantages
Faster response to space requests
Save time & resources in contract management
Complete portfolio transparency User
Framework Agreement
Corporate Real Estate Manager Space Request
Space Search
Contract Offer
Expense Lease
Our Solution
Comprehensive Master Data Management
Real Estate Search
Contract Management
Central Business Partner Management Management
Cost Allocation in Controlling
Owner Space Assignment
Rent Payment
Cost Allocation
Pr o c e s s Ex a m p l e : Re d u c e d V a c a n c i e s a n d Fa s t e r L e a s e -Ou t
Your Advantages
Complete overview about vacancy periods Faster re-rental Process automation
Ou r So l u t i o n
DIFFERENTIATION FOR TOP LINE GROWTH
Full process support Automatic transfer of contract offers to contract management
Vacant space
Search
Request
Contract offer
Lease-out contract
On e -T i m e P o s t i n g s : I n t e r f a c e
Easy-to-use interface
Complexity of postings not visible to end user
Templates in Customizing
Great amount of flexibility
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH
I n pu t T a x T r ea t m e n t f o r Co n t r o l l i ng Ob j ec t s Input tax distribution for costs related to real estate, where the costs were posted to other objects such as, functional locations, CO orders, etc. Prerequisites
The object must be linked to a real estate object. Examples – Maintenance orders can be linked indirectly to a real estate object by means of a functional location. – Internal orders and projects can be assigned directly to a real estate object.
When you execute input tax distribution for costs related to real estate on these objects, the same rules apply as for real estate objects themselves. You enter an option rate method on the assigned real estate object. The system uses this option rate method to determine the option rates.
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH
Accrual/Deferral Accruals and Deferrals in Flexible Real Estate
As part of period-end closing, the system uses the Accrual Engine to post accruals and deferrals to the correct periods for expenses and revenues from real estate contracts. (This function is now also available for Release ERP2004.)
The accrual/deferral functions in RE-FX can be used in these instances: – Deferral for vendor contracts with payment of rent in advance – Deferral for customer contracts with payment of rent in advance – Other payables (accruals) for vendor contracts with payment of rent in arrears – Other receivables (accruals) for customer contracts with payment of rent in arrears
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH
Ea s i e r I n t e g r a t i o n t o I n d u s t r y So l u t i o n f o r Pu b l i c Se c t o r
This integration helps you benefit from unified open item accounting in Public Sector using RE-specific processes, while being able to transfer these documents to General Ledger Accounting. Processes
Contract integration: At account assignment, you can distinguish between the real estate contract and the contract object by using the new sub application indicator.
Integration with partner management: Business partners with the internal role MKK can now be assigned to a real estate contract.
Integration of contract account: Depending on the contract type, you can assign existing contract accounts to the real estate contract, or you can create a new contract account.
Additions to posting term within the posting parameters: Fund, Funds Center, Commitment Item, Functional Area, Grant, and Measure
PRODUCTIVITY AND EFFICIENCY FOR BOTTOM LI NE GROWTH
Si m p l i f i e d M a n a g e m e n t t h r o u g h V i zu a l i zu a t i o n I n t e g r a t i o n w i t h CA D/GI S s y s t e m s i n c r e a s e s t h e e f f ic i e n c y o f re a l e s t a t e m a n a g e m e n t b y m a k i n g i t p o s s ib l e t o v i s ua l ly d i s p l ay c o m p l e x d a t a . Architectural or Cadastral Data
A
B
C
D
Contract Structure c t 1 a r t C o n
Contract
C o n t r a c t 3 2
FLEXIBILITY TO ACT TODAY
Y o u r A d v an t a g e s
Visual display of complex data for controlling processes, reporting and analyses
Ou r So l u t i o n
Management of architectural and cadastral data Contract and area management Bidirectional interfaces with open standard (Business Application Programming Interfaces)
Ea s i e r a n d Fa s t e r A d a p t a t i o n o f So l u t i o n v i a St a n d a r d T o o l s
Your advantages
FLEXIBILITY TO ACT TODAY
Easy and fast adaptation and enhancements to customer-specific needs without modification
Our Solution
Easy adaptation of user interface to role-specific needs via B u s i n e s s Da t a T o o l s e t (BDT)
Modification-free implementation of specific methods such as for calculation of conditions and other enhancements via B u s i n e s s A d d I n (BAdI)
Standardization of folder structures and management of various records per folder via SA P Re c o r d s M a n a g e m e n t
Easy management of all types of documents related to your property via SA P Do c u m e n t M a n a g e m e n t Sy s t e m
High-performing mass print for all types of application data via A d o b e Integration
Comfortable creation of single print documents or CO-Planning via M i c r o s o f t Of f i c e I n t e g r at i o n
Fl e x i b l e Ca l c u l a t i o n o f Co n t r a c t M a n a g em e n t Co n d it i o n s
In relation to the management contract, there are new methods for calculating and posting management fees:
Amount per object, amount by rental status, amount per tenant changeover, share of condition group.
BAdI (Business Add In) for implementing your own custom procedure (RECD_CALC_RULE and RECD_DIST_RULE).
The new methods outlined above were already included in the logic of this BAdI.
FLEXIBILITY TO ACT TODAY
Correspondence Starting with this Release, Adobe is the standard tool for correspondence. The following forms are available as PDFbased Adobe forms.
Master Data and Contract – Master Data Summaries – Notice
Real Estate Search – Lease Abstract – Contract Offer
Accounting – Contract Account Sheet – Invoice – Dunning
Service Charge Settlement Sales-Based Rent Settlement Condition Adjustment Etc.
Old Forms as SAP Smart Forms
As of SAP ECC 6.00, development is not continuing for the sample forms for SAP Smart Forms. However, customers can continue to use the sample forms and self-created forms.
FLEXIBILITY TO ACT TODAY
A u d i t i n g : DA RT a n d A I S
Data Retention Tool (DART) for RE-FX
FLEXIBILITY TO ACT TODAY
Income tax laws in some countries require that the taxpayer retains certain financial documents related to the tax return in a sequential file format. – The Data Retention Tool (DART) assists you in meeting these legal requirements. – You can use this tool to extract and display master data and flow data in sequential files. – The data export also makes it possible for the data to be analyzed using external software.
The starting point for the extraction (in relation to RE) is normally the FI document. That means, the RE-specific data is extracted to a document that is suitable for "explaining" the document.
AIS (Audit Information System) for RE-FX
AIS is a tool that allows an external auditor to check data in the SAP System. In this case, this involves accounting data generated by the Flexible Real Estate Management (RE-FX) component. The auditor receives (read) access to explanatory data related to accounting.
A u t o m a t i c M i g r a t i o n i n m y SA P ERP 2 0 0 5 Sy s t e m 1 : L i v e
Sy s t e m 2 : Pr o j e c t a n d T e s t S y s t e m
Classic RE Live System Project Start
Copy of Live System (e.g. 4.6C) Upgrade of Project System
Classic RE mySAP ERP 2005
Upgrade (Downtime) Migration (Downtime) Project End
Time
Upgrade of Live System
Classic RE / on mySAP ERP 2005 Live System RE-FX on mySAP ERP 2005
Import of Migration Decisions, Start Migration
RE-FX mySAP ERP 2005
Migration Programs, Decisions
A u t o m a t i c M i g ra t i o n : Co n st r a in t s
Data migration from Classic RE to RE-FX is supported only after an upgrade to mySAP ERP 2005 (or higher) within the same system and the same client.
After the upgrade, you can continue to work with Classic RE until the right time for the actual migration (from your business perspective).
You are not allowed to create RE-FX data before the migration and until after it is completed.
Process data for completed processes is not migrated (such as, old service charge settlements). Only that part of the process data is migrated that is needed for followon processes (such as information on historical rent adjustments). Data from add-ons (COA, LUM, CRE) is excluded from automatic migration. This data can be migrated using BAPIs after the automatic migration. (A solution to be applied by consultants is planned.)
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
Cu s t o m e r Ca s e : I V G I m m o b i l i e n A G/Eu r o p e e y Ch a l l e n g e
Implement a flexible, internationally usable software platform
r o j e c t Ob j e c i v e s
Replace central, homegrown legacy solution
Achieve global rollout
e y Be n e fi t s
Integrated business processes
Consistent data basis
Accelerated processes and data flows
Decentralized contract management
Ability to react more flexibly to future market requirements
Cu s t o m e r Ca s e : Co l o n i a l Fi r s t St a t e Pr o p e r t y e y Ch a l l e n g e s Consolidation
of 2 parts of business – funds and corporate real estate
Outsourced
property management
Allocation
of occupancy expenses and management of external tenants
I m p l e m e n t a t i o n H i g hl i g h Expansion
of software to manage consolidation of property expenses, revenues and incomes of Australian funds, the Commonwealth Bank, and property and fund management of its New Zealand business
e y Be n e fi t s Increased
improvements in business efficiency and reporting
Deployment
of system to external partners and clients
“Having a complete end-toend solution is a significant gain, which consequently leads to reduced costs, advance data integrity and greater profits.” Mr. B. Nicholls, Systems Executive, Colonial First State Property - Australia
Cu s t o m e r Ca s e : We l l s F a r g o Co r p o r a t e Pr o p e r t i e s G r o u p /U SA
e y Ch a l l e n g e s
Streamline and automate management of extensive real estate portfolio
Improve visibility into building and space utilization at building level
Enhance effectiveness of lease administration and occupancy tracking
Increase charge-back capabilities for business units to bare cost of building expenses
e y Be n ef i t s
Increased awareness by business units of expenses, resulting in cost reductions
Improved utilization of assets and enhanced revenue opportunities
Greater visibility into corporate physical assets
“Wells Fargo will continue to expand aggressively and SAP Real Estate Management is critical to helping us manage that expansion.” Catherine Parkhurst, Business Systems Consultant, Wells Fargo Corporate Properties Group - USA
Cu s t o m e r Ca s e : T o r o n t o Di s t r i c t Sc h o o l B o a r d /Ca n a d a
e y Ch a l l e n g e s
Create central support for external leasing of unused space
Integrate leasing processes of the seven regional boards
e y Be n ef i t s
Increased revenue from external leasing of unused space
Streamlined property maintenance
Standardized real estate management processes
Integrated real estate processes with other departments and systems
Improved support for long-term goals
M o r e Re f e r e n c e s
Airports
Banks
Energy suppliers
Harbors
Insurance companies
Postal services
Public sector
Railways
Retailers
Pr o f e s s i o n a l R e al Es t a t e M a n a g e r Re f e r e n c e s
Facility Managers
Housing companies
REITs
Real estate companies
Shopping center managers
Real Estate Market Challenges & Trends Solution Overview Customer Cases & References Outlook & Further Information
I m p o r t a n t SA P N o t e s
443311
Release Strategy
517673
Functions and Features
771098
Country Availability
690900
User Specific Enhancements
828160
Migration Tools
N o t e s r e g a r d i n g SA P Re a l Es t a t e M a n a g e m e n t c a n b e d o w n l o a d e d v i a h t t p ://s e r v i c e .s a p .c o m /n o t e s
Education
Two standard trainings are available
AC 290 for Classical Real Estate based on R/3 Enterprise 4.6c (5 days)
AC 295 for Flexible Real Estate based on mySAP ERP 2004 (5 days)
Trainers – Nigel Adams – Dirk Breitinger – Annemiek van Enk (Avecres) – Heike Fiedler-Phelps – Melinda Guppy – Alexander Kraft – Dmitri Miagkov – Leo Sweerts (Smart Solutions) – Sabine Toman – Peter Werner
– Et al. SAP Service Marketplace: http://service.sap.com/education
Co u n t r y A v a i l a b i l i t y w i t h m y SA P ERP 2 0 0 5
For more information on the availability of SAP Real Estate Management for specific countries please check availability http://service.sap.com/re and read SAP Note 771098.
Co u n t r y A v a i l a bi l i t y a n d L o c a l i za t i o n Flexible Real Estate Management is localized on a country basis in an initiative with the responsible SAP Subsidiary. The Flexible Real Estate solution in mySAP ERP 2005 is currently released for the following countries, and available in the following languages. Further localization are planned*. Please read also SAP Note 771098. Released Austria, Belgium, Canada, Germany, Israel, Italy, The Netherlands, Switzerland, United Kingdom, USA Languages German, English, Dutch, French, Czech, Finnish, Italian, Japanese, Portuguese, Russian Current Localization Plans* Japan, Poland, Portugal, Russia, Switzerland * The release planning for delivery of localized functionality is still to be concluded. With this planning SAP is not obliged to complete localization. SAP has the right to change these plans.
L e g a l Co m p l i a n c e f o r M o r e Co u n t r i e s Austria
Condition adjustment – “main rent statement” for residential contracts – “fifteenths” for commercial contracts
Summarization of tax lines
Italy
Imposta Comunale sugli Immobili (county tax) Imposta di Registro (registration tax) Imposta di Bollo (stamp tax) Summarization of tax lines
Switzerland
Correspondence based on Swiss tenancy law External heating expenses settlement Lease-in with ISR Calculation of fuel consumption Rent adjustment according to Swiss law
Portugal/Spain
Withholding tax
L a n g u a g e s a n d Re l e a s e s
Please also read note: 771098 SAP Service Marketplace: service.sap.com/re
Availability
m y S A P ERP 2 0 0 5 I s t h e G o -T o Re l e a s e Pr o v i d es a l o n g -t e r m f o u n d a t i o n f o r e x c e l l e n c e a n d i n n o v a t i o n
300+ functional enhancements
Enterprise services enabled
Dramatic user experience improvements
Delivers 28 configurable industry solutions
Continuous Innovation
I n t r o d u c i n g … En h a n c e m e n t Pa c k a g e s M o r e in n o v a t i o n , m o r e q u i c k l y , m o r e a c c e s s i b l e t o c u s t o m e r s
2006
2007
2008
2009
2010
Areas of innovation
Enterprise Services
Industry-specific capabilities Talent Management
Functional enhancements Technical enhancements Enterprise services
Financial Collaboration
Optional Adoption
En h an c e m e n t Pa c k a g es De l i v e ri n g n ew c a p a b i l it i e s a l o n g w i t h c r i t i c a l up d a t e s
En h an c e m e n t Pa c k a g es Optional
Enterprise Services
Switch Framework New/Improved Functionality
Su p p o r t P a c k a g e s
Legal/Tax Changes, Corrections
Mandatory
N e w Re l e a s e St r a t e g y St a b i l i zi n g t h e c o r e w h i l e d e l iv e r i ng c o n t i n u o u s i n n o v a t i o n
2006
2007
2008
2009
Enhancement Packages
mySAP ERP 2005
2010
Next Major ERP Release
SAP NetWeaver
m yS A P ERP 2 0 0 5 i s t h e Go -To Re l e a s e f o r SA P R/3 C u s t o m e r s .
Re l e a s e St r a t e g y SA P Re a l Es t a t e M a na g e m e n t SAP R/3
SAP R/3
SAP R/3
4.6c
Enterprise 4.7*1.10
Enterprise 4.70*2.00
mySAP ERP 200 4
mySAP ERP 200 5
Enhancement Pa c k a ge s f ür m ySAP ERP 2005
Corporate Use Residential Use
Basics
Commercial Use
Start of availability
Pilots
Flexible Real Estate Migration
Migration
Classic Real Estate End of availability
M a i nt e n an c e St r a t e g y
m ySAP ERP 2005
RampUp
m ySAP ERP
RampUp
2004
SAP R/3 Enterprise
RampUp
SAP R/3 3 .1 I – 4 .6 B
c e D
Extended Maint. (17% + 2%)
2003
Extended Maintenance (17% + 4%)
Extended Maint. (17% + 2%)
c e D
2004
Extended Maint. (17% + 2%)
Extended Maint. (17% + 2%)
Mainstream Maintenance
Mainstr. Maint.
2002
Mainstream Maintenance
Mainstream Maintenance
Mainstream Maintenance
SAP R/3 4.6C
c e D
2005
r a M
2006
Extended Maint. (17% + 2%)
Extended Maintenance (17% + 4%)
Extended Maintenance (17% + 4%)
Extended Maintenance (17% + 4%)
Extended Maintenance (17% + 4%)
CustomerSpecific Maintenance
Customer-Specific Maintenance
Customer-Specific Maintenance
Customer-Specific Maintenance
Customer-Specific Maintenance
c e D
2007
c e D
2008
r a M
2009
c r e a D M
2010
r a M
r a M
2011
2012
This strategy is also valid for all Industry Add-Ons based on the releases above.
r a M
2013
r a M
2014
SA P Re a l Es t a t e M a n ag e m e n t – Fu t u r e H i g hl i g h t s Portfolio Management
Commercial Real Estate Management Corporate Real Estate Management Technical Real Estate Management
Support Processes
Real Estate Analytics
Real Estate Search
Lease Management
Master Data Management
Condition Adjustment
Space Management
Partner Management
Percentage Rent Cost Recovery
Room Reservation
Transaction Management
Third Party Management
Legal Compliance
Move Management
Construction
Modernization & Refurbishment
Maintenance & Repair
Service Management
Accounting
Controlling
Tools
Integration to SAP Industry Solutions
Outlook
Commercial Real Estate
Different currency in contract conditions
Rent adjustment according to cost efficiency analysis **)
Correction items for input tax distribution **)
Corporate Real Estate Management
Multiple use of common space
Move Management
Room Reservation
Industries
Public Sector Integration*
Integration
*) **)
First steps towards Enterprise Service Architecture
CAD/GIS Interfaces
DUET – Integration of Room Reservation in MS Outlook Meeting Request
Please observe that SAP can not provide any binding statements regarding new features in SAP Real Estate Management in release mySAP ERP 2007 at this time. More precise information will be published at a later date. According to German law only
I n c r e a s e d V al u e t o Y o u r Pr o p er t y Po r t f o l i o - Ex e c u t i v e Su m m a r y
SAP Real Estate Management supports p r o f e s s i o n al r e a l e s t a t e m a n a g e r s as well as c o r p or a t e r e a l es t a t e m a n a g e r s . With mySAP ERP SAP Real Estate Management provides important enhancements for m o r e u s a bi l it y , e n h an c e d p r oc e s s i nt e g r at i o n and a d d i t i o n a l s c e n a r i o s u p p o r t . SAP Real Estate Management in mySAP ERP - Why should you upgrade now?
M o r e e f f ic i e n c y a n d p r od u c t i v it y
I n c r e a s e d t r a n s p a r en c y
En h a nc e d p r o c e s s i n t e g r a t i o n
Di f f er e n t i a t i o n in c o m p e t i t i o n
I n c r e a s e d v a lu e o f p r o p e r t y p o r t f o l i o
Contacts Christian Krämer Director Solution Management SAP Real Estate Management SAP AG
[email protected] Franz Wilhelm Kehrein Solution Manager SAP Real Estate Management SAP AG
[email protected]
Christian Mnich Solution Manager SAP Real Estate Management SAP AG
[email protected]
I n t e r n a t i o n al Co n t a c t s (s e r vi c e .s a p.c o m /r e
Contacts)