Real Estate Lifecycle Management PDF

Solution in Detail
Passenger Travel and Leisure
Executive Summary
Solution Overview
Contact Us
Real Estate Lifecycle Management
2013 SAP AG or an SAP affiliate company. All rights reserved.
Executive Summary
Solution Overview
Contact Us
Boost Your Real Estate Portfolio

Portfolio Mgmt.
Optimized Mgmt.
Managing passenger transportation and logistic real estate has long been low on
the executive priority list. But pressure to reduce operational spending and carbon
footprints as well as strict financial regulations, have changed this.
Improved Profitability
SAP Innovations
40%
Higher operating margin for firms
in North America, Europe, the
Middle East, and Africa with an
enterprise-wide performance
management discipline
Source: SAP Performance
Benchmarking
To succeed during times of globalization, real

estate managers need to ensure compliance with
tenant, tax, and financial reporting regulations.
For example, operational leases have to be
accrued according to U.S. GAAP. And in the
future, once the planned new International
Financial Reporting Standards (IFRS) for leases
is deployed, you must be able to capitalize leases
for the balance sheet.
To achieve sustainability targets, you need a
way to carefully track the energy consumption of
buildings and facilities, as well as accurately
allocate costs for energy consumption to tenants.
2 / 23
To fight competition, you need to make more

informed investment decisions regarding
construction and modernization projects. You
also need a way to monitor projects closely,
improve tenant relations, and standardize and
automate real estate processes to reduce
administrative overhead costs (for example,
for lease administration and maintenance).
SAP solutions help you by supporting comprehensive real estate lifecycle management.
They cover investment, construction, sales,
marketing, land ease, and space management,
maintenance, and more.
2013 SAP AG or an SAP affiliate company.

All rights reserved.
Executive Summary
Solution Overview
Contact Us
Optimizing Real Estate Management

Portfolio Mgmt.
Optimized Mgmt.
SAP solutions help improve investment decisions, reduce project risks, accelerate
lease-out processes, boost lease revenues, and control key dates. You can
increase workspace utilization, reduce maintenance overhead, improve energy
consumption reporting, and facilitate compliance with financial reporting standards.
SAP Innovations
To optimize investment and construction,
you need a way to analyze your property
portfolio, track investment decisions, handle
construction services bids and awards, monitor
projects and contractors, and manage cash.
Optimizing maintenance and repair requires

that you monitor budgets, measure energy
consumption, recover expenses from common
area maintenance, and handle maintenance,
repair, and service orders.
Managing lease and space effectively demands

that you track approval workflows, post leases
according to accounting standards, escalate
rents, and settle rents and service charges. You
also need to track workplace occupancy and
automate moves and room reservations.
SAP solutions address all of these activities in

an integrated way that supports end-to-end
processes.
3 / 23

Executive Summary
Solution Overview
Contact Us
Improve Portfolio Profitability

Portfolio Mgmt.
Optimized Mgmt.
SAP Innovations
For passenger transportation and logistic real estate managers, the benefits of endto-end real estate lifecycle management are enormous. You can increase return on
investment by making better decisions and reduce instances of overruns by controlling
budgets. You can reduce vacancies through faster lease-outs and increase revenues
by invoicing more accurately. SAP solutions also help you lower administrative costs
by automating processes and facilitating compliance, resulting in:
Higher return on procurement, construction, and modernization investments
Reduced project risks
36%
Higher operating margin for
organizations using IT to
enable strategic and
competitive advantages
Fewer vacancies
Increased lease revenues
Faster energy reporting
Reduced administrative cost
Full compliance with financial reporting standards

Benchmarking
4 / 23

Executive Summary
Solution Overview
Contact Us
SAP Innovations
Portfolio Mgmt.
Optimized Mgmt.
With SAP solutions, you can consistently promote your retail, office, and residential
space. The solutions can help you identify the right offer more easily, provide fully
consistent lease abstracts, and create a validated, detailed contract offer.
SAP Innovations
Integration between the SAP Customer
Relationship Management and SAP Real
Estate Management applications supports
close collaboration between sales and
marketing teams and lease administration staff.
SAP Real Estate Management also supports
activity planning for real estate units and makes
it easy to adjust sales gradings in leases. In
addition, it enables full Single Euro Payment
Area (SEPA) compliance and faster periodic
postings and reversals. Thanks to integration
with the SAP Common Area Maintenance
Expense Recovery application, its easier to
handle service charge settlements according to
North American and Australian business
practices (and based on tenant agreements).
5 / 23
You can prepare information for analysis by

migrating data from the SAP NetWeaver
Business Warehouse application powered
by the SAP HANA platform.
Mobile solutions powered by SAP Mobile
Platform support better work, service, and
inventory management, as well as efficient
auditing, approvals, and workflow management. You can manage inspections and
maintenance rounds of on-site staff.
The SAP Real Estate Management rapiddeployment solution enables a faster, better
implementation of core real estate processes.

Executive Summary
Solution Overview
Contact Us
End-to-End Lifecycle Management

Solution Overview
Investment and
Construction
Lease Mgmt.
Maintenance and Repair
Real Estate Lifecycle Mgmt.
Why SAP?
Investment and Construction

Analyze the passenger transportation and logistic real estate portfolio, track
investment decisions, procure construction services, monitor projects, and manage
cash for adequate funding.
Lease and Space Management
Manage lease details, post leases according to accounting standards, escalate rents,
settle sales-based rents and service charges, and manage corporate workplaces.
Maintenance and Repair Management
Monitor budgets, handle work orders, recover expenses from tenants, and measure
energy consumption.
6 / 23

Executive Summary
Solution Overview
Contact Us
Optimized Real Estate Lifecycle Management

Solution Overview
Investment and
Construction
Investment and
Construction
Lease and Space

Management
Lease Mgmt.
Construction
Investment
Planning
Property
Acquisition
Construction
Project
Master Data
Lease
Abstract
Real Estate
Search
Contract
Offer
Space
Management
Move
Management
Room
Reservation

Why SAP?
Lease
Administration
Facility
Management
The SAP solution covers

investment planning to maintenance for better decision
making, full budget control and
compliance, faster lease-outs,
and reduced overhead.
Accounting
Asset
Accounting
Project
Accounting
Cost
Settlement
7 / 23
Lease
Receivables
Contingent
Rent
Rent
Escalation
Service
Charge
Settlement
Master Data
Work Order
Energy
Reporting
Budget
Payables
Cost
Settlement

Executive Summary
Solution Overview
Contact Us

Solution Overview
Capabilities
Benefits
SAP Innovations
14%
Higher annual percentage
savings in indirect material
spend where multiple
suppliers are included in
eRFX and reverse auction
processes
SAP solutions enable you to oversee

investment and construction of assets.
Decide whether, where, and when to
buy, construct, or lease property and
then monitor budgets, schedules, and
project scope.
Electronically invite bids from suppliers,

award contracts, handle purchase orders,
manage invoicing, and track planned,
committed, and actual costs
SAP solutions help you keep acquisitions and

construction projects on track. You can:
Collect and organize all investment ideas,
track approval steps, and analyze decision
criteria including costs, revenues, and
qualitative aspects
Manage land and building acquisition

agreements including property details,
documents, postings, payments, workflows,
critical dates, and asset accounting
Create projects and track budgets, milestones, deliverables, and delivery dates

Benchmarking
8 / 23

Executive Summary
Solution Overview
Contact Us
Invest Smarter and Construct Better

Solution Overview
Capabilities
Benefits
SAP Innovations
14%
Higher data accuracy if data
warehouse architecture is
continuously monitored and
enables easy extensions and
integration of new data
Investment planning functions enable you

to track all aspects of investment proposals,
approval workflows, and ongoing projects.
Property acquisition supports the acquisition
of land and buildings by helping you collect all
related documents, manage acquisition
contracts, track their approval status, and
manage critical dates.
Construction management supports planning
and monitoring of construction projects,
including budgets, resources, milestones, work
packages, and procurement of construction
materials and services.
Master data management enables you to
maintain site, building, and land data. You
can also turn this data into visualizations using
CAD software and geographical information
systems.
Asset accounting supports the creation of

new assets so you can capitalize on acquisition
contracts and construction projects, as well as
post depreciation.
Vendor accounting enables you to post vendor
invoices against budgets and pay open items.

Benchmarking
9 / 23

Executive Summary
Solution Overview
Contact Us
Invest Smarter and Monitor Projects More Closely

Solution Overview
Capabilities
Benefits
SAP Innovations
53%
More employees use analytical
data when given access to
advanced analytical tools
without dependence on IT
Benchmarking
Empower real estate managers to make

better investment decisions, reduce
project risk, improve the purchase of
construction services, and fully track
property acquisitions.
Now you can have insight into all investment

alternatives before you make a decision as you
explore different options with detailed descriptions, pictures, maps, planned costs and
revenues, and approval status.
Once a decision on an investment has been
made, it is possible to oversee all aspects of
construction with full control through functionality
for tracking budgets, resources, scope, and timelines. Its faster and easier to manage and
collaborate with suppliers, due to consistent bidding, awarding, and purchase order processes.
You gain full control of all acquisition and

disposal agreements on land and buildings
by tracking all terms, conditions, and related
documents. You can also help ensure full
financial compliance by capitalizing property
acquisition and construction projects and
automatically executing depreciation postings.
And finally, you can create open items on
the vendor accounts of the landlords and
construction companies faster and easier,
as well as efficiently take care of payments.
10 / 23

Executive Summary
Solution Overview
Contact Us
Innovations for Investment and Construction

Solution Overview
Capabilities
Benefits
SAP solutions enable better investment

planning and project management for
construction, modernization, and
refurbishment.
Insert
image #
here
SAP Innovations
68%
Higher operating margin for
firms in North America, Europe,
the Middle East, and Africa
with mature IT strategy and
business alignment practices
The SAP Portfolio and Project Management

application makes it easier to manage
investment ideas, consistently align portfolio
planning with project definition and execution,
and gain more insight into financial planning
and resource management.
The SAP Enterprise Project Connection

application provides an interface to legacy
project management solutions.
The SAP ERP application helps you efficiently
manage data for large projects and plan dates
for plant maintenance, customer service orders,
and network activities simultaneously.

Benchmarking
11 / 23

Executive Summary
Solution Overview
Contact Us
Lease and Space Management

Solution Overview
Lease Mgmt.
Capabilities
Benefits
SAP Innovations
14%
Higher data completeness for
organizations in North America,
Europe, the Middle East, and
Africa with systems that integrate
internal, external, structured, and
unstructured data
Benchmarking
In a competitive environment, you need

to increase rental income and reduce
rental expenses while increasing
corporate workspace utilization. SAP
software helps you do all this and more.
To help you efficiently manage leases and

space, SAP offers integrated, comprehensive
real estate lifecycle management solutions that
support:
Management of all lease details
Straight-lining of operational leases for
accounting purposes
Rent escalations based on price indexes
Settlement of sales-based rents for retail
tenants
Recovery of common area maintenance

expenses
Tracking of employee workspace and room
reservations
Payments from tenants to landlords
Planning and analysis of costs and revenues
from leases
Allocation of space utilization costs to cost
centers and projects
12 / 23

Executive Summary
Solution Overview
Contact Us
Manage Leases and Spaces Efficiently

Solution Overview
Lease Mgmt.
Capabilities
Benefits
SAP Innovations
Manage leases from contract closure to

termination, including payments, dunning,
installments, sales-based rent settlements, rent
escalations, and service charge settlements.
Lease management supports comprehensive
lease tracking, timely lease postings, and
monitoring of critical dates and visualization in
CAD software.
Contingent rent enables the settlement of salesbased rent agreements.
28%
Rent escalation supports consumer price index

rent adjustments, contingent-based rent
settlements, or other criteria.
Room reservation supports room planning,

including service delivery and cost allocations.
Lower IT spend where

organizations have a
consolidated single solution
or platform landscape
Space management facilitates employee

workspace assignments and space cost
allocations.
Cost accounting helps you plan costs and

revenues, input activities, track actual cost and
revenues, and calculate figures.
Move management supports move plans

development and employee room assignment
updates.
Accounts receivables and payables enable

the creation of invoices, payments, dunning,
and installments.

Benchmarking
13 / 23

Executive Summary
Solution Overview
Contact Us
Deliver Higher Lease Performance and Space Utilization

Solution Overview
Lease Mgmt.
Capabilities
Benefits
SAP Innovations
14%
Fewer days to close quarterly
books if financial systems
support internal and external
accounting requirements
Benchmarking
With this SAP solution, you can improve

lease performance and facilitate full
compliance with financial reporting
standards. Reporting functions help you
to make better lease management
decisions.
The benefits of this solution are far-reaching.

For example, you can lower costs from expense
leases and increase revenues from income
leases all while reducing administrative
overhead by automating rent calculations,
postings, and more.
Automation helps you invoice contingent rents
earlier (via automated calculation and settlement
processes) and escalate rents in a timely
manner (based on changes in the consumer
price index or other criteria).
Organizationally, its easier to manage corporate

workplaces, plan moves, and manage room
reservations. The software centrally tracks
workplaces and meeting rooms, the assignment
of employees and service orders, and more.
It also helps you efficiently create postings on
accounts receivables and payables, create
invoices, handle payments and collections, run
dunning procedures, create installment plans,
and withdraw open items. You can also quickly
allocate real estate costs and revenues to cost
centers, projects, and orders).
14 / 23

Executive Summary
Solution Overview
Contact Us
Innovations in Lease and Space Management

Solution Overview
Lease Mgmt.
Capabilities
Innovations enable a faster, more

efficient process for lease administration.
Benefits
Insert
image #
here
SAP Innovations
Applications
Lease administration functionality powered by
the SAP Real Estate Management application
gives people an enhanced user experience that
increases efficiency. For example, its easier to
change organizational assignments, and
leveraging full support of the SEPA mandate,
they can automatically create real estate
contracts. Grading rules in sales-based rent

agreements can be readily updated via
automated adjustments.
Individual service charge settlements powered
by the SAP Common Area Maintenance Expense
Recovery application can be run faster and in
a compliant manner for customers.
15 / 23

Executive Summary
Solution Overview
Contact Us
Efficient Maintenance and Repair

Solution Overview
Capabilities
Benefits
SAP Innovations
30%
Lower rework time when
maintenance is streamlined
through the automation of
monitoring, notification, and
problem resolution processes
Benchmarking
With effective maintenance and repair

management, you can operate more
efficiently to avoid budget overruns that
hurt margins and the bottom line, as
well as accurately track energy
consumption.
SAP solutions help you integrate, streamline,

and automate facilities operations and increase
process and spending visibility. At the same
time, they make it easier to:
Monitor budgets via alerts and sophisticated
reporting
Create, process, and monitor maintenance
and repair orders using standard processes
that improve service levels
Collaborate electronically with service

providers
Automatically process vendor invoices
Report energy consumption and related

costs for each facility
Recover expenses for common area
maintenance from tenants
16 / 23

Executive Summary
Solution Overview
Contact Us
Manage Maintenance Repairs and Energy

Solution Overview
Capabilities
Benefits
SAP Innovations
With SAP solutions, you can proactively and

efficiently manage maintenance, repairs, and
energy use.
Master data management enables full tracking
of buildings and equipment so you can plan
maintenance and visualize master data with CAD
software.
Work order functions enable work order creation
based on ad hoc requests or maintenance plans.
Monitor work orders and check budget utilization
based on committed and actual costs.
14%
Lower forecast cycle time
when plans, measurements,
and simulations are
continuous and based on
recent insights
Benchmarking
Service charge settlement calculates the

portion owed by a tenant based on time of
occupancy and energy consumption and posts to
tenant accounts.
Energy reporting tracks energy usage by
assigning meters to buildings and creating
measurement documents and compiled reports.
Budgeting helps you control budgets and

avoid overruns via extensive monitoring.
Accounts payables functions support vendor
invoice processing, including postings and
payments.
Cost accounting helps you plan costs, input
activities, track revenue, and prepare key
statistical figures.
17 / 23

Executive Summary
Solution Overview
Capabilities
Benefits
SAP Innovations
35%
Lower maintenance cost as a
percentage of replacement
value when planning includes
skills, materials, tools, and job
instructions
Benchmarking
Solution Overview
Contact Us
Increase the Value of Assets via More Efficient

Maintenance
Armed with integrated functions and
timely insight, you can proactively budget
projects, lower overhead costs, fulfill
service level agreements, and allocate
energy consumption by location.
With SAP software, you can tightly control

maintenance spending by effective planning and
close monitoring of budgets via sophisticated
reporting and alerts. You can also use automated
work order creation and service confirmation
tracking to manage maintenance, repair, and
service activities more efficiently.
Operational efficiency can be improved by using

automated vendor invoice processing to reduce
the overhead of invoice verification. And detailed
meter readings and automated consumption
calculations and reporting help you produce
compliant energy reporting quickly and costeffectively.
This results in better asset management that

improves the overall state of your buildings and
equipment. For example, you can establish
preventive maintenance based on time and
usage intervals to head off issues.
You can recover expenses for common-area

maintenance from tenants in a faster, more
compliant way by tracking tenant individual
agreements and automating the settlement
procedure process.
18 / 23

Executive Summary
Solution Overview
Contact Us
Innovations in Asset Maintenance and Repair

Solution Overview
Capabilities
Benefits
SAP innovations improve maintenance

via linear asset management and better
resource scheduling and asset
visualization.
Insert
image #
here
SAP Innovations
29%
Lower annual service and
maintenance cost when all
facilities track the same key
performance indicators
Benchmarking
Applications
SAP applications deliver key functionality to
optimize asset maintenance and repair. The SAP
Linear Asset Management application helps you
manage rails, pipelines, and cables. The SAP
Enterprise Asset Management solution makes it
easier to manage maintenance orders,
notifications, maintenance plans, task lists, and
more. The SAP Multiresource Scheduling
application makes it easier to align resources for

projects, maintenance, and service.
Visualizations
The 2D and 3D functionality in the SAP Visual
Enterprise Viewer and SAP Enterprise Asset
Management applications increase closure rates
of maintenance notifications, and increase
technician efficiency.
19 / 23

Executive Summary
Solution Overview
Contact Us
Operations and Asset Management Value Map

Solution Overview
Investment and
Construction
Maintenance
Repair and
Overhaul
Maintenance
Programs and
Configuration
Management
Asset Planning
and Fleet Asset
Planning and
Scheduling
Line and Base

Maintenance
Complex Asset
and Component
Maintenance
Spare Parts
Management
Operational
Risk
Management
Incident
Management
Environment,
Health, and
Safety Risk
Assessment
Management
of Change
Maintenance
Worker Safety
Management
Work Permit
Management
Real Estate
Lifecycle
Management
Investment and
Construction
Lease and
Space
Management
Maintenance
and Repair
Lease Mgmt.
Why SAP?
The SAP solution covers

investment planning to maintenance for better decision
making, full budget control
and compliance, faster leaseouts, and reduced overhead.
20 / 23

Executive Summary
Solution Overview
Contact Us
Why SAP?
Solution Overview
Investment and
Construction
SAP provides an integrated, complete real estate management lifecycle

management solution thats ideal for all types of real estate, including office,
retail, industrial, residential, and land assets.
Lease Mgmt.
Why SAP?
Tight Integration Across a Complete Solution

SAP provides a lower total cost of ownership than stand-alone point solutions thanks to native
integration with the SAP ERP Financials solution and the various applications providing
functionality.
Proven Real Estate Management Best Practices
Customers in more than 70 countries spanning all industries have successfully deployed our
solution.
Fast Time to Value for Core Real Estate Processes
The solution has been broadly adopted by leaders across industries and offers comprehensive
best practices that, when adopted, reduce time to value.
21 / 23

Executive Summary
Solution Overview
Contact Us
Find Out More About How Your Organization Can

Become Best-Run
Benchmark Your Performance
Position your organization for dominance in this new economy with the business performance
benchmarking program from SAP available free to SAP customers and select prospects.
The SAP benchmarking program has helped more than 3,000 organizations assess their
strengths, uncover areas for improvement, and identify best practices and IT strategies that
generate clear, tangible value not someday, but today.
Visit valuemanagement.sap.com >>
Go Live in Weeks
Heres the fastest way to run your business better: our rapid-deployment solutions. In one
package, you get everything you need to be up and running quickly including preconfigured
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Join Your Community of Practices

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It lets members help one another solve problems, learn, and invent new ways to get things
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22 / 23

Solution in Detail
Passenger Travel and Leisure
Executive Summary
Solution Overview
Contact Us
CMP 26244 (13/06)
SAP public Web site:

www54.sap.com/solution/industry/transportation-logistics.html
SAP Service Marketplace: https://websmp203.sap-ag.de/tl
Travel and Logistics Community:
http://scn.sap.com/community/transportation-and-logistics
LinkedIn group SAP Enterprise Asset Management:
www.linkedin.com/groups/SAP-Enterprise-Asset-Management-EAM
-2680933?trk=myg_ugrp_ovr
LinkedIn group SAP Travel and Transportation:
www.linkedin.com/groups?gid=3966133&trk=myg_ugrp_ovr
LinkedIn group SAP User Group for Railways:
www.linkedin.com/groups/SUGRail-SAP-User-Group-Railways-4366195/about

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Solution in Detail

Passenger Travel and Leisure

Real Estate Lifecycle Management

2013 SAP AG or an SAP affiliate company. All rights reserved.

Boost Your Real Estate Portfolio

To succeed during times of globalization, real

To fight competition, you need to make more

2013 SAP AG or an SAP affiliate company.

Optimizing Real Estate Management

Optimizing maintenance and repair requires

Managing lease and space effectively demands

SAP solutions address all of these activities in

2013 SAP AG or an SAP affiliate company.

Improve Portfolio Profitability

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

You can prepare information for analysis by

2013 SAP AG or an SAP affiliate company.

End-to-End Lifecycle Management

Investment and Construction

2013 SAP AG or an SAP affiliate company.

Optimized Real Estate Lifecycle Management

Lease and Space

Maintenance and Repair

Real Estate Lifecycle Mgmt.

The SAP solution covers

2013 SAP AG or an SAP affiliate company.

Investment and Construction

SAP solutions enable you to oversee

Electronically invite bids from suppliers,

SAP solutions help you keep acquisitions and

Manage land and building acquisition

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Invest Smarter and Construct Better

Investment planning functions enable you

Asset accounting supports the creation of

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Invest Smarter and Monitor Projects More Closely

Empower real estate managers to make

Now you can have insight into all investment

You gain full control of all acquisition and

2013 SAP AG or an SAP affiliate company.

Innovations for Investment and Construction

SAP solutions enable better investment

The SAP Portfolio and Project Management

The SAP Enterprise Project Connection

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Lease and Space Management

In a competitive environment, you need

To help you efficiently manage leases and

Recovery of common area maintenance

2013 SAP AG or an SAP affiliate company.

Manage Leases and Spaces Efficiently

Manage leases from contract closure to

Rent escalation supports consumer price index

Room reservation supports room planning,

Lower IT spend where

Space management facilitates employee

Cost accounting helps you plan costs and