SAP best practices.pdf
- 1. SAP Implementation Best Practices: Real-World Case Study Lessons Learnt from Successful Implementation at Adidas
- 2. 1 Benefits of SAP Table of contents A brief history of SAP 2 3 4 5 Introduction SAP Implementation Best Practices 6 1. Define Your Business Processes 2. Choose the Right SAP Modules 3. Plan and execute data migration 4. Develop a Customization Strategy 5. Ensure Data Quality and Integrity 6. Train Your Users SAP S/4HANA SAP Business One SAP SuccessFactors SAP Ariba SAP Concur SAP Products and Services Adidas's case study The Challenge The Solution - ADIDAS SAP Implementation
- 3. 8 Better Customer Service 9 10 11 Improved Decision-Making The Results 12 About Mindquest Increased Profitability Increased Efficiency 7 Table of contents
- 4. Introduction SAP, the world's largest enterprise software company, provides a range of solutions that can help organizations optimize their operations, improve customer service, and drive profitability. However, implementing SAP can be a complex and challenging process that requires careful planning, execution, and management. To help companies achieve a successful SAP implementation, this whitepaper explains SAP implementation best practices and presents a real-world case study from the global leader sportwear company ADIDAS as an example of successful SAP implementation. ADIDAS has implemented SAP solutions to address specific business challenges and achieve significant improvements in efficiency, decision- making, customer service, and profitability. By examining its experience, best practices, and lessons learned, this whitepaper provides valuable insights for companies considering or currently undergoing an SAP implementation. Whether you are a business leader, IT professional, or project manager, this whitepaper will help you understand how to plan, execute, and manage a successful SAP implementation that delivers tangible benefits and ROI.
- 5. A Brief History of SAP: SAP was founded in 1972 by five former IBM employees in Mannheim, Germany. Their goal was to develop software that could process and analyze data in real- time, giving businesses a more accurate picture of their operations. The company's first product, R/1, was released in 1973 and provided financial and accounting support for businesses. This was followed by R/2, which added support for other business functions like manufacturing and logistics. In 1992, SAP released R/3, which was a significant upgrade from its predecessors. It introduced a client-server architecture and a graphical user interface, making it easier for businesses to use. R/3 also had more features, including support for multiple currencies and languages. Today, SAP offers a wide range of products and services, including enterprise resource planning (ERP) systems, customer relationship management (CRM) software, supply chain management (SCM) software, and more.
- 6. SAP S/4HANA SAP Products and Services SAP's flagship enterprise resource planning (ERP) software. It is built on the SAP HANA platform, which provides real-time data processing and analytics capabilities. S/4HANA is designed to help businesses streamline their operations, improve decision-making, and drive digital transformation. It includes modules for financials, procurement, sales and distribution, manufacturing, inventory management, and more. SAP offers a wide range of products that are designed to help businesses of all sizes and industries manage their operations more efficiently and effectively. From ERP software to HR management systems to procurement and travel management solutions, SAP has a solution to meet the needs of almost any business. Some of SAP's most popular products include:
- 7. SAP CONCUR A cloud-based travel and expense management system that is designed to help businesses manage their employees' travel expenses more efficiently. Concur includes modules for travel booking, expense management, and invoice processing. It integrates with other SAP solutions like S/4HANA and Ariba to provide end-to-end travel and expense management. SAP ARIBA A cloud-based procurement software that is designed to help businesses manage their procurement processes more efficiently. Ariba includes modules for sourcing, contracts, procurement, and supplier management. It also includes a network of over 4 million suppliers that businesses can connect with to streamline their procurement processes. SAP SUCCESSFACTORS A cloud-based human resources (HR) management system that is designed to help businesses manage their employees' performance, compensation, and development. SuccessFactors includes modules for talent acquisition, onboarding, performance and goals, learning, compensation, and succession and development. SAP BUSINESS ONE A small business ERP software that is designed to help small and medium-sized businesses (SMBs) manage their operations more efficiently. It includes modules for financials, sales and purchasing, inventory, production, and customer relationship management (CRM). Business One is easy to use and can be deployed either on- premises or in the cloud.
- 8. In today's fast-paced business environment, companies need to be able to operate efficiently, make quick decisions, and stay ahead of the competition. SAP offers a range of products that can help businesses achieve these goals. By using SAP products, businesses can streamline their operations, gain better visibility into their processes, and make informed decisions based on real-time data. Here, we will explore how SAP products can help businesses improve their operations and stay competitive in today's digital landscape. We will discuss the various benefits of using SAP products, including increased efficiency, better decision-making capabilities, and improved overall performance. Whether you are a small business or a large enterprise, SAP products can help you achieve your goals and stay ahead of the curve. Later in this whitepaper, we will see how the implementation of SAP helped improve the following aspects for sportswear leader ADIDAS: Benefits of SAP INCREASED EFFICIENCY IMPROVED DECISION-MAKING INCREASED PROFITABILITY BETTER CUSTOMER SERVICE
- 9. SAP is a complex software system that can be challenging to implement and optimize. However, with the right approach and best practices, you can ensure a successful SAP implementation and get the most out of your investment. By knowing the best practices for implementing and optimizing SAP, businesses can save time, reduce costs, and make the most of their investment in the software. Let's explore some of the best practices for implementing and optimizing your SAP system. SAP Implementation Best Practices
- 10. DEFINE YOUR BUSINESS PROCESSES CHOOSE THE RIGHT SAP MODULES Before implementing SAP, it’s essential to understand your business processes and how SAP can support them. This includes defining your business requirements, mapping out your processes, and identifying any gaps or areas for improvement. By taking a process-centric approach, you can ensure that your SAP implementation is aligned with your business goals and objectives. Once you have a clear understanding of your business processes, it’s important to select the right SAP modules that align with your requirements. SAP offers a wide range of modules and applications, each designed to address specific business needs.
- 11. PLAN AND EXECUTE DATA MIGRATION DEVELOP A CUSTOMIZATION STRATEGY The first step in data migration is to identify the data that needs to be migrated. Then, to determine the best approach for migrating it. This may involve developing a data migration strategy, mapping the data from the legacy system to SAP, and developing a plan for cleaning and validating the data. SAP is a highly configurable system that can be customized to meet specific business needs. However, customization can also be time-consuming and costly if not done properly. To minimize the risks associated with customization, it’s essential to develop a customization strategy that balances your business requirements with SAP’s standard functionality. This can involve: Identifying any gaps or areas for improvement Evaluating the cost and benefits of customization Establishing a governance framework to manage changes to the system Once the data has been migrated, it’s crucial to carry out testing to ensure that the system is functioning correctly. This may involve testing individual transactions, testing end- to-end business processes, and performing load and performance testing. The goal of testing is to identify any issues or errors in the system before going live. Also to ensure that the system is functioning correctly and meeting the business requirements.
- 12. ENSURE DATA QUALITY AND INTEGRITY TRAIN YOUR USERS To ensure accurate and reliable data, it’s important to establish data standards, validate data quality, and implement data governance processes. This includes identifying any data dependencies or integration points, establishing data validation rules, and ensuring that data is entered consistently across the system. Finally, user adoption and training are crucial to the success of SAP implementation. End-users need to understand how to use SAP effectively. This to perform their daily tasks and make the most of the software’s features and functionalities. Providing comprehensive training and support can help to increase user adoption and ensure that the implementation is successful.
- 13. Adidas is a leading global sportswear company that operates in more than 160 countries. The company has a diverse range of products that include footwear, apparel, and accessories that cater to athletes and sports enthusiasts alike. With a strong commitment to quality and innovation, Adidas has consistently delivered top-quality products to its customers. In 2018, Adidas announced its plans to implement a modern Enterprise Resource Planning (ERP) system to support its growth strategy and streamline its supply chain processes. The company recognized the need for a more integrated and efficient system to manage its global operations and meet the increasing demands of its customers. The decision to upgrade the ERP system was based on the company's vision to become a more customer-focused and agile organization. The new system would enable Adidas to better manage its inventory, production, and distribution processes, resulting in improved efficiency and faster delivery times. The implementation of a modern ERP system was a significant investment for Adidas, but one that the company believed would provide long-term benefits. By streamlining its supply chain processes and improving its operational efficiency, Adidas can continue to provide top-quality products to its customers and remain a leader in the sportswear market. Adidas's case study
- 14. THE SOLUTION THE CHALLENGE To address the challenges faced by its supply chain processes, Adidas decided to implement a modern ERP system. The company recognized that the benefits of such a system would far outweigh the investment of time, effort, and resources required. By implementing a modern ERP system, Adidas aimed to achieve several key objectives, resulting in increased efficiency, improved decision-making, better customer service, and increased profitability. Adidas’s supply chain processes were struggling with complexity, manual work, and prone to errors. The company faced significant challenges in managing its inventory levels and meeting customer demands. These issues not only created inefficiencies but also resulted in increased costs for the company.
- 15. To enhance efficiency, the ERP system would streamline Adidas' supply chain operations. It would integrate with existing software solutions, providing real-time data visibility and analysis globally. INCREASED EFFICIENCY This would eliminate manual errors and optimize supply chain processes for improved efficiency. Manual tasks would be automated, reducing processing times and operating costs while improving collaboration across departments. The system's resource utilization capabilities would ensure efficient allocation and management of resources.
- 16. IMPROVED DECISION-MAKING The system's integration with various software solutions would ensure accurate and up-to-date information on inventory levels, order status, and delivery times. Armed with this information, Adidas could optimize inventory ordering, minimize stockouts, and reduce inventory holding costs, resulting in improved decision-making and cost efficiency. In terms of decision-making, the ERP system would provide real-time access to critical data. This would enable Adidas to make better- informed decisions, leveraging enhanced data visibility and analysis.
- 17. BETTER CUSTOMER SERVICE With improved inventory management, Adidas would be able to meet customer demands more effectively, reducing instances of stockouts and ensuring better product availability. These improvements would enhance the overall customer experience, fostering long-term relationships and increasing customer satisfaction. The implementation of the modern ERP system would also significantly contribute to better customer service. Customers would benefit from accurate, real-time information on their orders, delivery times, and product availability.
- 18. INCREASED PROFITABILITY Automation of manual tasks and the reduction of errors would lead to significant cost savings. Moreover, the system's ability to provide accurate information and enhance customer service would contribute to customer loyalty and repeat business, ultimately driving profitability for the company. Lastly, the ERP system's impact on profitability would be substantial. By optimizing supply chain processes, Adidas would improve operational efficiency and reduce costs.
- 19. The implementation of SAP's ERP system helped Adidas achieve significant improvements in its supply chain operations: 50% reduction in order- to-cash cycle time 30% reduction in inventory costs THE RESULTS These improvements not only enhanced Adidas' operational efficiency but also positively impacted customer satisfaction, financial performance, and market competitiveness. This case study serves as an example of how SAP implementation best practices can bring tangible benefits to organizations by optimizing their business processes and operations. 25% increase in delivery performance REFERENCES: Modern ERP Solution by Adidas - https://www.scribd.com/document/635392384/Modern-ERP-Solution-by-Adidas SAP and adidas Find Solutions to Use Cases and Improve UX | SAP News - https://news.sap.com/2019/11/sap-fiori-makers-adidas-use-cases-ux/
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