SAP Model -Smarterenergyconsulting.com
- 1. SAP Presentation for Projects Gary Francis
- 2. Agenda Today’s Business & IT Challenges Why implement SAP? Critical Success Factors for a SAP Implementation Example SAP Method/ Risk Management Typical SAP Implementation Timeline
- 3. Today’s Business & IT Challenges In the recovering economy, companies are once again searching for growth of revenue and profit Companies need to respond faster to market changes and adapt quickly to stay ahead of competitors At the same time, there is intense pressure to reduce total IT costs which limits development and implementation initiatives Companies need to reallocate money within their organizations in order to create sustainable value and innovation Organizations are re-thinking their current strategies and developing new business models to reflect the changed market conditions
- 4. Economic Trends: Enterprises are responding to global economic pressures through actions to control costs, achieve efficiencies and find pockets of global growth Globalisation, as enterprises expand into new markets to boost sales and secure low cost production facilities Consolidation , as enterprises focus on achieving scale economies and creating complimentary brand portfolios Specialisation, as enterprises divest non-core operations to increase cost efficiencies across the enterprise and improve shrinking margins Increased Diligence, as enterprises bracing for years of wealth global economies exercise better cost management and more rigorous focus on return on invested capital
- 5. Strategic Trends: Enterprises demand better alignment of their business and technology strategies E-business maturation, forcing enterprises to migrate existing legacy applications to the web Best Business Process Practice, as enterprises attempt to improve business and eliminate applications based on sub-optimal business assumptions Business Application Standardisation,, as enterprises try and reduce application customisation Business Application Interoperability ,, as enterprises promote enterprise wide integration and look to participate in net-markets, next generation business models and multi enterprise networks Integrated Global Resource Utilisation , as enterprises realise the cost advantage of using lower cost labour resources to achieve cost efficiency goals
- 6. Buying Environment Trends: Enterprises are seeing dramatic shifts in how, why and by whom IT investments are made Increased Receptivity Towards Outsourcing, as enterprises differentiate on the basis of products, services and knowledge rather than business processes and I.T. support Increasing involvement in LOB and C-level Execs, in all aspects of I.T. purchasing, as business strategy and technology capabilities increasingly become interdependent Increased receptivity of Application Management, as enterprises become comfortable with and often demand multi-vendor and multi- country resources for AD/M Increasing emphasis on ROI, as enterprises are demanding more business value and productivity improvement from expensive technology investments Continued Demand for skilled I.T. Resources, especially for specialised applications core to industry competitiveness
- 7. Why implement SAP? Flexible : Configuration of the SAP modules to suit Client business needs Real-time : Updates information immediately in the system as the data is saved Provides improved access to real-time, integrated information Audit Trail : All transactions can be tracked to the person entering or changing data by their SAP user ID Online : Display information and reports as you need them Integrated : Provides an enterprise with a common business language and the ability to develop Client wide processes and data structures Increases the coordination of departments Client business workflow orientation versus stand-alone applications Real-time “ripple” effect of data through all Client business functions Seamless integration of data between Client business functions (e.g., automatic financial postings based on transactional processing in all modules) One-time data entry ensuring data consistency and reliability Because of its integration
- 8. Critical Success Factors for a SAP Implementation Executive Buy-in and Go-ahead Identified Business Problem and its solution via flexible IT infrastructure Robust, flexible solution Reuse Sufficient input and support (cooperation) from the business Project Governance defined (for project / foundation for enterprise) People and rules, organization and functions are clear Project Roadmap is defined Description of all essential work items Timeline and assurance for planned projects on the road Milestones and measurements accepted by everybody
- 9. Example SAP Method Stage I Stage II Risks: Development of risk conscious culture for the project Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 10. This example method was developed to address the six key focus areas of a complete life-cycle implementation. Key Aspects of the method Supports the easy integration of methods when more than one is applicable to a project and allows for tailoring to suit the needs of the industry or client Aligns with SAP’s tools and methods but extends beyond method and other vendor-specific methods Designed to support complex programs of work with multiple concurrent projects Integrates key project work streams Provides the roadmap and description of work which must be accomplished tailored to specific industry value chain Supports an integrated team concept and serves as the project documentation repository Example SAP Method Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations Domains
- 11. Typical Client SAP Method Specific to SAP AG’s AcceleratedSAP ™ (ASAP) method, the typical Client SAP method has been mapped across the phases of an SAP implementation and enhanced with the addition of two phases – Evaluation and Sustain This SAP method complies with the key concepts of ASAP. Project Phases Phase 0 - Evaluation Phase 1 - Project Preparation Phase 2 - Business Blueprint Phase 3 - Realization Phase 4 - Final Preparation Phase 5 - Go Live and Support Phase 6 - Sustain Approach Philosophy Typical Client SAP is designed to be scalable and encourage the iterative definition and refinement of deliverables throughout the project lifecycle. The project lifecycle is composed of activities that are organized by phase and domain views. These activities represent specific activities and deliverables (outputs). Typical Client SAP method enhances SAP’s standard AcceleratedSAP method by including the Evaluation and Sustain Phases, and by additional material included within the other phases. Project Preparation Business Blueprint Realization Go Live and Support Program Management Business Organization Application Final Preparation Architecture Operations SAP AG TM for AcceleratedSAP Typical Client SAP Project Lifecycle Sustain Evaluation
- 12. Phase 0 – Evaluation Example SAP Method Objective: Develop and / or confirm project scope, align scope with company strategy, and build stakeholder support Sample Key Deliverables/ Results: Strategy, Market Position Analysis Document Prioritized List of Strategic Opportunities Preliminary Change Readiness Assessment Completion of Executive Level Confirmation Workshops Project Strategies are complete and signed-off by the project sponsors Project scope is signed-off by the project sponsors Project Plan is delivered The project kickoff meeting is held The Steering Committee is in place The project team is staffed Activities: Understand Customer Strategy and Market Position. Understand Strategic Opportunities Understand the Client’s Readiness for Change Conduct Senior Executive Level Workshop Covering: Project Strategies Confirmation Project Scope Organization Readiness Demonstration of SAP BW Capabilities and Impacts Build planning for the SAP BW project Establish Project Organization Assign resources Risks: Analyis business and financial risk that will impact the forecasted timeline Evaluate possible risk of change in business requirement affecting the expected business benefit Measure the business risk of the customer against initial project requirements. Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 13. Phase 1 – Project Preparation Example SAP Method Objective: Perform detailed project planning & scoping, establish the project team, and refine documents created in evaluation Activities: Create Project Charter Refine Project Team Organization Refine Earned Value Milestones Develop Detailed Workplan Define Project Methods, Standards, Procedures, and Tools Understand Risks and Critical Success Factors Conduct Team Orientation Define Technical Infrastructure Organization Sample Key Deliverables/ Results: Project Charter Project Team Organization Structure Milestone Program Plan Detailed Workplan Document Methods, Standards, Procedures, and Tools Project Risks and Critical Success Factors Assessment Team Orientation meeting is held Technical Infrastructure Organization Document Risks: Lack of key project resources H/W performance issues Slippages against plan Key Project resources Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 14. Phase 2 – Business Blueprint Example SAP Method Objective: Create a detailed description of your business information requirements Activities: Conduct Trainings Define Information Requirements Identify Business Content Reports/ Indicators Define new Reports/Indicators Define Reports/Indicators components Perform GAP Analysis and Resolution Build Detailed Analysis Document Set up and Install Development Environment Conduct Scope Workshops Build Detailed Workplan for Remaining Phases Sample Key Deliverables/ Results: Information Requirement Forms Detailed Information Requirement Document Detailed Analysis Document Detailed Workplan for Remaining Phases Risks: Redundancy in technology and impact to business Downtime and impact to the business Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 15. Phase 3 – Realization Example SAP Method Objective: Realize the business requirements defined in the Business Blueprint & transform the requirements into an approved working system Activities: Install Business Content Indicators/Reports Build Non Business Content Indicators/Reports Conduct Test sessions Develop Training Materials Conduct Instructor and Pilot training Create Security Authorizations Define Go-Live Checklist Sample Key Deliverables/ Results: Components Test Plan Report/Indicators Test Plan Trained Project Team on Testing Methods and Supporting Tools Security Profiles and Authorizations Created Procedures and Training Materials Built and Tested Report/Indicators Knowledge Transfer Assessment Risks: Systems failure (operational, performance bottlenecks) Application integration failure Scope creep Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 16. Phase 4 – Final Preparation Example SAP Method Objective: Complete preparation of the production SAP BW system, including end user training, system management, and cutover activities Sample Key Deliverables/ Results: Cut Over Checklist Production Readiness Review Quality Review Go Live Approval Activities: Products Promote to Production Conduct System Test Refine and Execute Go Live Checklist Refine and Execute Production Support Plan Prepare and Conduct End User Training Conduct Quality Review and Obtain Final Cut Over Approval Risks: Pilot test failure Performance issues due to infrastructure scalability Knowledge/ skills transfer gap Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 17. Phase 6 – Go Live and Support Example SAP Method Objective: Transition from a pre-production environment to a live, stable, productive operation Sample Key Deliverables/ Results: Production System Ready Center of Excellence (COE) – Knowledge Management Production Capable End Users Post Implementation Project Review Activities: Provide Production Support (Help Desk) Validate Information Results Optimize System Tuning Execute Ongoing Security Administration Conduct Post Implementation Project Review Benefits Measurement Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations Risks: Go live failure due to incorrect requirement capture therefore need to have old system operational
- 18. Phase 7 – Sustain Example SAP Method Activities: Provide Production Support (Help Desk) Optimize System Tuning Benefits Measurement Sample Key Deliverables/ Results: Center of Excellence (COE) – Knowledge Management Post Implementation Project Review Objective : Help ensure that there is a framework in place to sustain and improve the performance of the system after go-live Risks: Lack of skilled resources to maintain the operation running of the system in its early years transition risks due to unclear system design Project Preparation Business Blueprint Realization Go Live and Support Sustain Program Management Business Organization Application Evaluation Final Preparation Architecture Operations
- 19. Typical SAP Implementation Timeline Go-Live <Date> Focus Getting the project started Identifying Team members Developing a high level plan Deliverables Project Standards and Procedures Project Charter Scope & Approach OCM Strategy Project Plan Project team training plan Project Kickoff Meeting Project Preparation 0.5-1 month Focus Understanding the Client’s Business Goals / Requirements Gaining a high level understanding of SAP Developing Business Blueprint Deliverables Project Team Training Org Structure Communications Plan End-User Training Strategy Business Process Master List Approved Business Blueprint Refined Project Plan R/3 Development system Blueprint 1-2 months Focus Configuration / Development of the system (Including unit and Integration testing) Preparation of end-user training Organizational Change Management Deliverables Test Plans (Unit, Integration, User Acceptance, System) Configured system according to blueprint R/3 Quality Assurance System R/3 Training System User Roles & Authorizations End-User Training materials Realization 2-4 months Focus End-user training User Acceptance Preparations for Cutover Organization Change management Deliverables System validation: (Security, Data, Configuration, Development, Technical Infrastructure) Production Support Plan (Help Desk) Cutover Plan End-User Training Go / No-Go Decision R/3 Production System Final Preparation 1-2 months Focus Cutover and validation of the production system Supporting the end-users Issue resolution Deliverables Production Environment Production Support Go-Live review Project close letter Transition to Hosting services Go-Live and Support 1-2 months
- 20. Many companies are faced with the task of driving growth and reducing costs, while in parallel rapidly transforming and there core and non core operations Driving Profitable Growth Persistent low growth, “zero” inflation Globalization of commerce and culture Transforming Operations Increased need to focus on Brand, Customer, Consumer Focus from non-core to core business operations Managing Business & IT Complexity Regional and global requirements Collaboration with Customers and consumers Rapid advancements in IT technology and SAP functionality Supporting Regional & Global operations Mergers and acquisitions Cross process and organizational integration Category/LOB geographic expansion Industry Drivers Strategic Imperatives Focus on Core Functions to Drive Growth New business and IT transformation initiatives to focus on revenue and growth targets New functionality and capabilities required; CRM, TPM, PLM, SEM, customer collaboration Rapidly reduce costs to fund the core with new business models Leverage business partners to create new operating models Shift internal personnel to support core initiatives Lock in contractual savings and efficiency gains Provide Flexible & Scaleable Environment Adaptive technology and infrastructure to support new business models Non-core support functions scaled to support global operations End to end integration to ensure benefits realization and lowest cost
- 21. Pressure to change Spending Model Differentiated Processes Marketing Product Development Sales Account Management Non-Differentiated Processes Finance Human Resources Procurement Information Technology Customer Service 0% 100% EBITDA 12-18% 32-47% Spend as % of Sales Core Business Processes and Components 23-27% Raw Materials Non-Core Business Processes and Components 13-28% 50%
- 22. Client pain points around application management? 57% 47% 46% 44% 34% 30% 30% 26% 24% 23% 20% 19% 11% 7% 6% 3% 0% 10% 20% 30% 40% 50% 60% Lack of resources Lack of applications skills / knowledge Cost reduction Focus to our core competencies To reduce workload on internal IT staff To address a lack of infrastructure To provide predictable costs To improve flexibility/scalability To improve speed to market To provide training skills/knowledge To provide business process skills / knowledge To reduce risks To gain expertise in enterprise application strategies To provide predictable schedules To provide consistent remote locations adoption / support Other
- 23. CONSULTANT DETAIL Name : G Francis Email : Technology.solutions@yahoo.com M : 079503 09267 Copy write @ 2008