Newcomer IPPM Debuts an Asset Lifecycle Portfolio and Project Management (PPM) Solution

⇨ IPPM is developing AI-enhanced lifecycle PPM solutions that integrate finance and project management, addressing gaps in existing SAP offerings and improving governance in project approval and delivery.

⇨ The integration of finance with enterprise asset management operations allows organisations to track and align costs related to asset acquisition and maintenance in real-time, ultimately leading to better financial decision-making and efficiency.

⇨ Companies should focus on maximising cross-functional process automation by linking operational scheduling and financial modules in SAP, facilitating adjustments based on financial constraints and optimising resource use.

In the world of enterprise asset management, one of the areas underserved by existing software and services offerings is the linkage between estimating, cost forecasting, scheduling and financial management. One of the SAP partners at the recent Mastering SAP Connect event on the Gold Coast, Australia, IPPM (Intelligent Portfolio Project Management), is a new market entrant developing a blend of professional services, architecture, and software, with a focus on delivering lifecycle PPM solutions, mitigating existing gaps in SAP solutions. Enhanced using AI, the solution provides data which improves governance across project approval and delivery, while reducing manual effort through the integration of finance, including cost forecasting, variation management and operational scheduling in real-time. The automated business case builder provides KPIs, asset capitalisation timelines, suggested work breakdown structures for optimal delivery and proposed benefits that can be monitored thoughout the lifecycle.

In many organisations, asset capitalisation and subsequent recognition in maintenance asset registers is a significant issue with a disconnect between project delivery, finance and asset management business units. Integrating directly with SAP PS, PPM and Project Collaboration, IPPM aims to address this late capitalisation of assets on balance sheets, using AI to manage assets and expenses, creating a database that integrates with SAP modules, enhancing project management and finance alignment. The AI-enabled solution the company has built for BTP creates a visual hierarchy and automatically scopes and assigns assets. The solution also injects specialist knowledge at critical moments, embedding policies and accounting knowledge for improved project management. The objective is to enable customers to update finance in real-time as schedules are adjusted, providing a comprehensive view up to the CFO level.

“We see our company as a services provider with significant software offerings, filling gaps in the market,” said Steve McKenna, co-founder at IPPM. “We plan to focus on value-based outcomes rather than just technology, targeting smaller deals that larger competitors may not pursue.”

The co-founders, with backgrounds in SAP and BTP development, are self-funded and have established relationships with major clients like Emirates and Brisbane City Council. They target asset-intensive industries like mining, utilities, energy, and manufacturing, and are exploring global markets. Initial customer feedback highlights the novelty of connecting the historically disconnected financial and operational scheduling domains.

“It’s important to plan for change adoption and management as part of this operational and financial shift,” said IPPM’s Shiraz Allie and SAP transformation specialist. “Otherwise, companies risk not realising the full potential impact on their business. To understand the timing of resource requirements for project delivery over say a 10-year lifecycle with associated ranking and prioritisation of projects provides significant opportunity to all organisations.”

What this means for Mastering SAP insiders

Marriage of operations and finance unlocks efficiencies and performance gains. Integrating finance with enterprise asset management operations allows organisations to track the costs associated with asset acquisition, maintenance, and depreciation in real-time. It ensures alignment between operational spending and financial budgets, reducing the risk of overspending or underfunding critical asset-related activities. Finance and operations integration enables data-driven decisions on whether to repair, replace, or retire assets based on financial metrics and operational performance.

Identify and track specific KPIs where incremental gains from operations/finance linkage will show up. Companies should start with a set of financial metrics like Capital Expense Efficiency, which monitors the effectiveness of investments in new assets and reflects the alignment of CapEx with operational needs and financial priorities. In addition, companies would be well-served to monitor Maintenance Cost per Unit of Output, which tracks the cost of maintenance relative to asset productivity, where insights from both operational and financial data will optimise cost-efficiency. More on the operational side, asset management organisations should also track Inventory Turnover Ratio, which monitors how quickly spare parts and materials are used, where a solution like IPPM is offering should align operational data with financial data and improve inventory management and reduce inventory holding costs.

Maximise cross-functional process automation within SAP and outside of SAP. Extract maximum value from linking SAP S/4HANA Asset Management for operational scheduling and financial modules like SAP Controlling (CO) and Asset Accounting (FI-AA). For complex projects involving assets, SAP Projects System (PS) can bridge operations and financials by integrating planning, execution, and budgeting, where IPPM intends to integrate and multiply the value potential. Integrating operational and financial asset management business processes can enable companies to adjust operational schedules based on financial constraints, such as budget cycles or cash flow availability. In addition to exploring the offerings of new entrants like IPPM, SAP customers should look at integrating SAP Capacity Requirements Planning (CRP) with financial planning to ensure optimal use of resources within budget limits.