LaGOV LaGOV Version Draft 1.0 Updated: July 25, 2008 Agenda - - PowerPoint PPT Presentation

Version Draft 1.0 Updated: July 25, 2008

Real Estate – ROW Parcels

FI-RE-004 November 13, 2008

Real Estate Real Estate – – ROW Parcels ROW Parcels

FI FI-

• RE

RE-

• 004

004 November 13, 2008 November 13, 2008

LaGOV LaGOV

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Agenda

• Logistics, Ground Rules & Introduction
• Project Timeline
• Workshop Objectives
• Business Process Review

– Process overview – AS-IS process flow – Current system alignment – Process improvement opportunities – SAP terms glossary – SAP concepts & functionality – Business process flow – Leading practices – Enterprise readiness challenges

• Next Steps –

Action items

• Questions

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Before we get started ... Logistics

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Ground Rules

• Has everybody signed in?
• Everybody participates –

blueprint is not a spectator sport

• Silence means agreement
• Focus is key –

please turn off cell phones and close laptops

• Challenge existing processes and mindsets
• Offer suggestions and ideas
• Think Enterprise
• Ask questions at any time
• One person at a time please
• Timeliness –

returning from break

• Creativity, cooperation, and compromise

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Introduction

• Roles
• Process Analyst and Functional Consultant –

lead and facilitate the discussions and drive design decisions

• Documenter –

take detailed notes to support the formal meeting minutes to be sent by the Process Analyst to all participants for review and feedback

• Team Members –

provide additional support for process discussions, address key integration touch points

• Subject Matter Experts –

advise team members on the detailed business process and participate in the decisions required to design the future state business process

Round the Room Introductions Name Position Agency

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Project Phases

 Five Key Phases

• Strategy & Approach Defined
• Project Team Training
• Business Process Definition
• Development Requirements
• Development & Unit Testing
• Integration Testing
• End-User Training Materials
• User Acceptance
• Technical Testing
• End-User Training
• Conversion
• Go-Live Support
• Performance Tuning

Project Preparation Business Blueprint Realization Go Live and Support Final Preparation

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Functionality Tentative Implementation Date Budget Prep October 2009 DOTD February 2010 Core Modules All Agencies July 2010 Additional Modules January 2011

Tentative Project Timeline

• Tentative implementation dates are planned as follows:

Project Start-Up

May – June 2008 July 2008 August – Dec 2008 January 2009

Blueprint

Phased deployment will be confirmed/updated before completion

• f Blueprint activities!

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Finance Leads Beverly Hodges – Finance Lead Drew Thigpen – Finance Lead Mary Ramsrud – Consulting Lead Logistics Leads Belinda Rogers – Logistics Lead Jack Ladhur – Logistics Lead Brad Denham – Consulting Lead Linear Assets Leads Mark Suarez – Agile Assets Lead Charles Pilson – Consulting Lead General Ledger Accts Receivable Cost Accounting Grants Mgt Asset Accounting Real Estate Management

Sue Wheeler Peter Tabone

Accounts Payable Cash Management Funds Management Project Systems Budget Prep

Project Organization - Functional Teams

Grantor

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Blueprint Schedule - Tentative

Workshop ID Process Area Date FI-RE-001 Real Estate: Master Data Sept 23 (Tue) Sept 24 (Wed) Sept 25 (Thu) FI-RE-002 Real Estate: Transactions Oct 8 (Wed) FI-RE-004 Real Estate: Right-of-Way Parcels Nov 13 (Thu) FI-RE-003 Real Estate: Leasing Oct 30 (Thu) FI-RE-005 Real Estate: Validation Session Dec 9 (Tue) Dec 10 (Wed)

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Blueprint Objectives

• Review and discuss the current or As-Is business processes
• Which helps to drive out the Business requirements

Business requirements

• As well as the integration points

integration points with other processes

• Define Master Data
• Address key integration points
• Support organizational requirements
• Consistent and appropriate use of data fields
• Define Future or To-Be business processes based on:
• Best Practices inherent in SAP
• Intellectual capital from other SAP implementations
• State business requirements
• Identify development requirements
• Which could result in the need for a form, report, interface,

conversion, enhancement, or workflow (FRICE-W)

• Understand and communicate any organizational impacts / Enterprise

Readiness challenges

• Gather system security authorizations and district-wide training

requirements

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Work Session Objectives

Our Goal

To develop a clear and common picture of the capabilities required (of your solution) for managing real estate Focus on the ‘WHAT’ (requirements) and not on the ‘HOW’ (process realization) Focus on business process design and true business requirements Utilize standard SAP functionality wherever possible Reduce the cost of business by shaping business processes that are enabled by SAP

Our Approach

1.

Identify, review, evaluate and prioritize your core “to-be” business processes (within the entire value chain)

2.

Determine the functionalities required to support your “to-be” business processes

• Identify most critical core functionalities
• Identify integration related functionalities
• Identify useability expectations
• Identify “nice-to-have” functionalities

3.

Do a Fit-Gap-Analysis related to required functionalities, what’s in standard, what needs to be enhanced etc.

Legacy System / Functionalities

Existing processes are often based and designed on legacy applications and their capabilities – and are not aligned to the overall corporate strategy It‘s essential to avoid a 1:1 transfer of legacy functionalities and processes without having a strategy and without reviewing your business processes

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“AS IS” …..

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As-Is Process Flow

Acquire Property Appraisal Consultant Contracts Cost Estimation Expropriation Joint Plan and Review Mineral Lease Application Abandonment, Rem., Excess ROW Mineral Lease Award Public Sale Relocation, Non Residential Relocation, Residential RoW Stage Relocation Plan Title Work

DOTD Real Estate Process Sub-Process Facility Planning – Real Estate Process Sub-Process Right of Way Process Sub-Process

Lease - 5K+ Sq Ft Lease - Term Options Lease - Under 5K Sq Ft

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Current Systems Alignment

Agency Name Application Name Truncated Description ERP Related Functions DOTD

Process Improvement Opportunities (Pain Points)

• The aim?

– To improve the flow of data across the agencies.

• The means?

– An end-to-end SAP software-based solution.

• The result?

– Increased visibility, greater productivity, and lower maintenance costs.

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…. “TO BE”

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To-Be Process Flows that impact RE-FX

Acquire Property Abandonment, Rem., Excess ROW Public Sale

DOTD Real Estate Process Sub-Process Right of Way Process Sub-Process

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Business Process Hierarchy

Business Scenario Business Process

Process Step(s)

At a high level, a set of processes that define a business task in a broad and self-contained manner (i.e. scope clarification and business alignment). “Set of logically related activities performed to achieve a defined business outcome”

(Davenport & Short (1990))

(i.e. process requirements). An elementary activity performed to complete a business process (i.e. functional requirements).

Example: Master Data Management

Transaction(s) Business view “As-is”  “To-be” Software View

Example: Business Entity, Building, Land, etc. Example: Process Building REBDBU: Process Building

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Real Estate Solution Map

Business Scenario Group Business Scenario

Workshop 1 – Master Data Workshop 3 – Right of Way

Integration to Project Systems & Plant Maintenance

Workshop 2 – Transactions Workshop 4 – Leasing

Integration to Financials & Controlling

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Process Overview

Business Scenario Group Business Scenario Business Processes

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SAP Glossary

 Public Web

http://www.sap.com/realestate

 SAP Service Marketplace (log-on required)

http://service.sap.com/re

 Documentation and Release Notes

http://help.sap.com  SAP ERP  ERP Central Component  Financials  Flexible Real Estate Management (RE-FX)

 Training courses: RE010 / RE200

RE010 Business Processes in SAP Real Estate Management RE200 Flexible Real Estate Management (see http://www.sap.com/education)

 ASUG: Real Estate Special Interest Groups

http://www.asug.com

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Designing your Real Estate Lifecycle in SAP

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Workshop 4 – Leasing Lease Management

Business Processes

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Business Processes (Acquisition)

What is it?: Processes for the acquisition of Right-of-Ways.

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Usage View

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Facility

Site Parcel

Facility

Linear Structure Site

Control Section

Represents the sites acquired - which consists of one or more parcels of land per site (SAP) Represents the improvement upon the land i.e. segmented linear structure (AgileAssets)

Site 1 Site 2 Site 3 Site N

Parcel A Parcel B Parcel C Parcel D Parcel E Parcel NN

Route of Linear Structure Sites consist of 1 or more parcels per site Sites acquired (in fee or easement) establishes Rights-of-Way for Linear Structures

Parcel A Parcel B Parcel C Parcel D Parcel E Parcel NN Right of Way Right of Way Right of Way Right of Way

Definition – Parcel of Land Parcel of land is the smallest unit recorded in the land

• register. It is a section of the

earth’s surface that is recorded and administered in a land register under its own number.

Modeling Land Parcels & Linear Structure Segmentation

Rights-of-Way

Fee Easement

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

Question: If you have multiple Rights-of-Way’s that cross the same parcel of land, to which Right-of-Way does that parcel belong?

Multiple Rights-of-Way across a Single Parcel

Parcel A

Right of Way for Road 2 Right of Way for Road 2 Right of Way for Road 1 Right of Way for Road 1 Right of Way for Road 1 Right of Way for Road 3



DOTD Approach: The parcel of land belongs to the original / first Control Section along the route, i.e. Road 1.

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Uneconomic Remnants

Question: At the time of acquisition, do you know the acreage of Parcels A.1, A.2 and A.3.

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Usage Objects (UO)

Control Section State Company Code Parcel A.1 Parcel B Parcel C

DOTD

Parcel A.2 Parcel A.3

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Business Partners (Landlord, Owner etc.)

What is it?

• Business Partner can be a
• person,
• rganization, or
• group
• Can have various roles, depending on the business process involved
• Can have various relationships to other business partners
• Can automatically generate a customer or vendor master record in Financial Accounting

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Real Estate Contracts

Summary:

►The real estate contract lets you manage all contracts related to your real estate portfolio ► Any number of rental objects can be assigned to any one contract ► Contractual relationships are controlled by contract types

Lease Set-up Is The Foundation For Lease Lifecycle Processes

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Usage View

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Contract Types / Posting / Settlement

Acquisition Contract: Land RE Contract Vendor Cr Dr Dr Cr

Periodic Posting Transfer Posting

Dr Cr

CO Settlement Rule

WBS Element AUC / AMR Lease-In Contract: Land RE Contract Vendor Cr Dr Dr Cr

Periodic Posting Transfer Posting

Dr Cr

CO Settlement Rule

Cost Center (at Agency Level)

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Measurement Types – Right-of-Way’s

What is it? Measurement types represent all quantifiable attributes, such as space (ft2, m2, acres, hectares), dimensions (height, linear feet / length), volume (m3 or ft3), number of desks or internet connections, etc. Action Item: Define measurement types for ROW’s. .

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Additional Fields - Land (Parcel) Master Data

FOR DISCUSSION IN WORKSHOP

Usage Objects - Land Possible Additional Fields / Attributes



Enhance standard master data with additional fields / attributes

• n a separate tab(s) to suit

Development Parcel Maps Rights / Restrictions

Action Item: Determine parcel data to be captured.

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Additional Fields for Attributes

FOR DISCUSSION IN WORKSHOP

– Possible additional fields / attributes that will need to be considered are:

Section/Township/Range Rancho Map Size Latitude / Longitude Metes and Bounds Lot/Block/Subdivision Right-of-Way Etc Infrastructure XYZ Development ABC Rights / Restrictions Other Attributes Etc. Action Item: Determine parcel data to be captured.

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Design of Additional Fields / Attributes

FOR DISCUSSION IN WORKSHOP

– The design of additional fields / attributes tables (in SAP) should be such that, inter alia, the following type of information can be captured:

• Parcels that have multiple attributes
• Development and/or infrastructure data (that is associated with

a parcel)

• Rights / Restrictions (date sensitive)
• Other attributes (to be determined, depending upon customer requirements)

– Capabilities to search parcels according to any attribute

Action Item: Determine parcel data to be captured, searching capabilities and reporting requirements.

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Possible Table Structures – refer LUM

Land Use Management – Parcel of Land This table will allow the capture

• f multiple attributes per parcel



STR (Section/Township/Range)



Map Sizes



Rancho’s



Rights-of-Ways



Etc

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BE - Location

What is it? A field that identifies the location or town within a specific geographic region. Action Item: Discuss / determine requirements for the location description for your sites (BE’s).

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BE – District Locations

What is it? Field to further classify a site into districts. Action Item: Discuss / determine requirements for a further breakdown of your sites (BE’s) into districts.

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BE – Transport Connections

What is it? Transportation connections are useful to help Property Managers identify sites where specific transportation connections are available. Example Action Item: Discuss / determine requirements for creating transport connections for BE’s (sites)..

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BE – Infrastructure Characteristics

What is it? Field that allows you to specify how far the real estate object (i.e. site) is from user-defined geographical

• points. These specifications are optional.

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Land – Property Type

What is it? A described property characteristic (informational).

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Land - Location Qualities

What is it? A description of the location quality of properties. The characteristic is informational only. Action Item: Define locations. Example 1. Outskirts, 2. Prime location

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Land – Ground Type

What is it? A field to specify the possible ground types for properties. The characteristic is informational only. Action Item Discuss possible use for this field.

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Land – Overall Condition

What is it? A field to specify the overall condition of ground types for properties. The characteristic is informational only. Action Item Discuss possible use for this field.

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Land – Productive Holdings

What is it? A number of fields that describe the municipality and topographical location of land. Available fields

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Land – Infrastructure Characteristics

What is it? Field that allows you to specify how far the land real estate object is from user-defined geographical points. These specifications are optional. Example Action Item: Discuss / determine requirements for creating infrastructure characteristics for land.

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Land – Building Law and Usage

What is it? A number of fields that describe the building law and usage characteristics of land. Usage type in the development plan can be used to identify what the land record is zoned for. Heritable building right can be used to indicate if the right to develop the land in a certain way can take place,

• r is inherited, or associated with this land.

Action Item: Discuss / determine requirements for capturing data in these fields.

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Leasing Out Uneconomic Remnants

Rental Objects

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Rental Objects (UO)

What is it? Rental Objects represent properties that may be leased. Rental Objects are uniquely assigned either to a Building or Land record, and their number range is unique within the Business Entity (BE). It is a spatial entity that is subject to occupancy. There are three types of rental objects: Pooled Space (PS) This is the overall available space within a given usage type, within a Building or Land. It is used for space that is ‘dynamically’

• ccupied, where changes in assignment often take place, and it does not

require major structural changes, such as open floor office space, or parking space, etc. Rental Space (RS) This is space that is extracted from the Pooled Space (i.e. available space) to be occupied and assigned to a real estate contract for a specified period. Rental Unit (RU) This is a spatial entity within a building or land that can also be occupied, but it would require major structural changes in order to change its dimensions, such as apartments, housing units, one car garages, and storage units

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Usage Types Allowed for Rental Spaces per Pooled Space

What is it? You might have a need to extract multiple rental spaces from a pooled space that has a given usage type, and you want the rental spaces to have different usage types, or more specific settings for the usage type. In this case, you can assign these usage types to the usage type

• f the pooled space

Action Item Determine usage types and sub-usage types (if any).

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Usage View

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• Add potential organizational impacts and training

impacts Enterprise Readiness Challenges

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• Prepare and send out meeting minutes to

invitees.

• Draft Design Document is prepared.
• Follow up on action items identified during the

workshop.

• Schedule off-line meeting (s) to discuss areas of

special concern

• Plan follow on workshops, as required.
• Plan validation workshop.
• Ensure all to-do’s are appropriately documented

Next Steps

Questions?

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?