Managing and Meeting Custom

Development Requirements in an
SAP Implementation or Upgrade
Donna Gregory
SAP
SAP Custom Development: Tailoring to Your Needs
Using Our Methodology: A Systematic Approach
Ensuring 3C Alignment: Core, Corporate, Consulting
Sharing Progress: Internal and External Customers
Staying Best Fit: Exercising on Results
Wrap-up: 7 Key Points
 The Value of SAP Custom Development
REAL CHALLENGES
! Have unique business
processes and need
unique software solution
! Run disparate systems
needing intensive
integration
! Require custom
developments to fit with
SAP release strategy
! Lacking internal talent for
custom development
initiatives
! Minimize long-term
maintenance costs for
custom applications
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PREMIER ORGANIZATION
! 7 development centers
worldwide
! 600+ employees
! 200+ projects in 2004
! 45% growth in 2005
headcount
! Leverages $1.5 billion in
SAP R&D
DELIVERED VALUE
! Enables innovation while
addressing unique
business requirements
! Accelerates time-to-
market
! Leverages 30+ years of
development experience
! Mitigates business risk
! Increases return on SAP
investment
! Protects investment with
long-term maintenance
options
 Introduction

Thinking of customizing?
Worried about your unique needs in
an SAP implementation?
Sometimes feel like you are holding
a bull by the tail?

" Off-the-shelf solutions do not meet 100% of needs of unique business processes

" Disparate systems need intensive integration to work together

" Custom developments need to fit SAPs release and upgrade strategy

" Dont have talent required for custom development initiatives

" Long-term maintenance cost for custom applications needs to be minimized

" Competitive market opportunities may be missed if solution is not available now

Engage SAP Custom Development

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 30 Years Experience Across Industries

Industry Specific Solution:

Industry Portolios:
! Aerospace and Defense
! Aerospace & Defense
! Automotive
! Automotive
! Banking
! Banking
! Chemicals
! Chemicals
! Consumer Products
! Consumer Products
! Defense and Security
! Defense & Security
! Engineering, Construction, and Operations
! Engineering, Construction & Operations
Premier service fulfillment across !
!
!
Healthcare
Financial Service Providers
Higher Education and Research
! Healthcare
industries and technologies that !
!
High Tech
Higher Education & Research
! Industrial Machinery and Components
! High Tech
" Meet your business needs !
!
Insurance
Industrial Machinery & Components
! Life Sciences
! Insurance
" Help you gain competitive advantage !
!
Logistics Service Providers
Media
! Media
! Mill Products
! Mill Products
! Mining
! Mining
! Oil & Gas
Leveraging the knowledge of 30 !
!
Oil and Gas
Pharmaceuticals
! Pharmaceuticals
!
years of SAP development !
!
Professional Services
Postal Service
Public Sector
! Professional Services
experience, with !
!
!
Retail
Public Sector
Service Providers (+ Hospitality, Logistics,
! Retail
" Proven Custom Development Postal, Railway, and Technical Service
! Railway
Providers)
! Telecommunications
successes !
!
Telecommunications
Utilities
! Utilities
! Wholesale

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 SAP Custom Development Around The Globe
NEWTOWN
CHICAGO ST. INGBERT
SQUARE
WALLDORF

TOKYO

BRUSSELS
SHANGHAI
PALO ALTO

ATLANTA

BANGALORE
7 development centers

600+ employees

200+ projects of all sizes executed in 2004 Development

Sales
45% growth in 2005 (Headcount) Both

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 Value Added Services

Solution tailoring that meets your unique business needs

Comprehensive recognized range of proven services

Custom
Development SAP Custom Development Projects ISO
Projects Certified

Premium SAP Custom Development Strategic Planning

2005
Custom SAP Custom Development Project Management
European
Development SAP Custom Development Quality Assurance Risk
Services SAP Custom Development Risk Assessment Award

Custom
Development SAP Custom Development Maintenance
Continuous SAP Modification Clearing
Improvement

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 Specializing in Custom Development Services

SAP Custom Development Projects

Deliver custom-developed solutions that meet unique business needs. We provide direct access
to SAP project teams that have the knowledge and experience to plan and execute high-quality
custom development projects.
SAP Custom Development Strategic Planning
Planning your custom development strategy is just as important as executing the development
itself. SAP Custom Development Strategic Planning is a service that offers development
evaluations that define a strategy for moving forward with custom development.

SAP Custom Development Project Management

Managing a software development project is quite different from managing a software
implementation project. SAP Custom Development Project Management provides specialized
management resources for custom development projects.

SAP Custom Development Quality Assurance

Monitors the quality of custom development throughout the development lifecycle. It provides a
plan that specifies clear development requirements, establishes realistic schedules, and
executes the right reviews at the right time to ensure high-quality custom development.

SAP Custom Development Risk Assessment

Mitigate risk factors to ensure that the project is on time and within budget and that the
custom-developed software meets the customer's needs and doesn't interrupt operations

SAP Custom Development MANY MORE SERVICES

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 SAP Custom Development
Creating the Perfect Fit

SAP Custom Development: Tailoring to Your Needs

Using Our Methodology: A Systematic Approach
Ensuring 3C Alignment: Core, Corporate, Consulting
Sharing Progress: Internal and External Customers
Staying Best Fit: Exercising on Results
Wrap-up: 7 Key Points
 Hierarchical Development Phase Lifecycle

Four Primary Phases

Evaluation Development
&
Test

SAP Custom Development

Global
Methodology Customer
Acceptance
&
Delivery
Maintenance

Project, Quality, Risk, Controlling Management Fusion

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 Methodology Advantage: Modularity

Choice in Building Blocks

Based on Project Type and Size
Guideline Cookbook
Repository Template Repository
Repository
Samples
PIL ASAP

Project Management
Qualification Budget Team Product Validation Technical Dev
Q-Gates Design
Sheet Plan Charter Std Plan Checklist Docs Readiness

Project Meeting Production Project Status ABAP Solution KM User

QM Plan
Charter Minutes Request Manual Report Dictionary Implement Guide

Risk Management
Solution Execution Project Project Test Customer PPMS Product Customer
Controlling

Definition Plan Plan Setup List Strategy Status Rpt. Checklist Std. Report Delivery

Risk Project Issue & Req. Change Test Test Validation

Spec
Assessment Prioritization Resolutions Matrix Request Readiness Cases Report

Project NDA Spec Sign Off Work Pack Code Review Test Customer
Comm. Plan
Estimation Agreement Review Document Handover Checklist Report 1st Steps

Business Phase Action Item Review Maintenance Validation Code Review QM Status Project
Case Sign-Off List Results Plan Decision Results Report Closure

Maintenance Lessons Close Project QM Project Maintenance Maintenance Maintenance Name

Handover Learned Out Archive Report Handbook Plan Quest Spacing
Quality Management

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 Simplicity for Flexibility Rich for Custom Flavoring

Activities
by role

Detailing
Available

Learn and
Contribute

Staying
Current Process
Alignment

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 Evaluation

SAP Custom Development

Methodology

Evaluation

Contract
Evaluation
Negotiation

A streamlined approach to
evaluating, defining, and agreeing
on mutual business rewards

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 Development and Test

SAP Custom Development

Methodology

Development
and Test

Specification Design

Realization Test

Realizing the how and what

Assuring correctness and excellence

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 Customer Acceptance/Delivery and
Maintenance Phases
SAP Custom Development
Methodology

Customer
Acceptance
and Delivery
Component
Customer
Validation/
Assembly
Acceptance

Following through Maintenance

on commitments
and supporting
you in the future

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 Management and Controlling

SAP Custom Development

Methodology

Project Management

Quality Management

Project Controlling

Risk Management

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 SAP Custom Development
Creating the Perfect Fit

SAP Custom Development: Tailoring to Your Needs

Using Our Methodology: A Systematic Approach
Ensuring 3C Alignment: Core, Corporate, Consulting
Sharing Progress: Internal and External Customers
Staying Best Fit: Exercising on Results
Wrap-up: 7 Key Points
 Aligned Methodologies

Ensures effective, continuous tracking, and

aggregation of risk-related information on a
corporate-wide basis across LOBs
Risk Management
Alignment to ASAP Business
Blueprint, Realization, Final Prep,
ORM
Go-Live and Support Phases
ASAP Methodology
Share process/product
standards, Quality Systems
CORPORATE

governance, and Solution

3C Alignment
PIL Road
CONSULTING

Methodology Map Repository

Solution
Repository
CORE

CD
CD
Methodology
Methodology

By leveraging the Project Solution

Repository, and utilizing code that
has already been created for other
projects, we are able to more
efficiently develop new solutions
to meet your needs

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 Product Innovation Lifecycle Methodology

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 ASAP Methodology

Project Business Realization Final Go-Live &

Preparation Blueprint Preparation Support

Provide initial Implement business Cut over to

planning and and process live productive
preparation for requirements based operation and
your SAP project on the Business continuous
Blueprint support

Documents the
business process Complete the
requirements of preparation for
the company Go-Live
Roadmaps

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 Establishing Relationships

Corporate Risk Management

! Activity compliance

! Addressed in E&E and throughout project lifecycle

! Information entered into corporate risk repository

Consulting
! Implementation blueprint sharing

! Map location and methodology relationships

! Working together to make sure our pieces fit

Core
! Functional, technical, and business relationships

! Standards and Quality System sharing

! Tool and resource capitalization

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 SAP Custom Development
Creating the Perfect Fit

SAP Custom Development: Tailoring to Your Needs

Using Our Methodology: A Systematic Approach
Ensuring 3C Alignment: Core, Corporate, Consulting
Sharing Progress: Internal and External Customers
Staying Best Fit: Exercising on Results
Wrap-up: 7 Key Points
 Sharing Progress

SAP Custom Development Internal

! Communication plan
! Identifies Personnel: Groups, Teams,
Stakeholders, and Contacts
! Identifies Processes: Channels,
Information Distribution, Escalation

! Project Manual

! Charters: Project and Team

! Management status report

! Cross-team shared project plans

Established Formal
! Access granted to project Guidelines and Templates
share directories

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 Keeping Our Customer Informed

1.
Customers

See Your
Project
Status
Report
3.
2.

1. Access via SAPs Service Marketplace

2. Past reports kept in cFolders
3. User ID is regular S/D/I/C-number

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 Nothing to Hide Customer Status Report
Category Content
Schedule Project
Executive Dashboard
Milestones/Deliverables Dates and Duration
Status
and
Schedule

Percent Complete Budget Planned vs. Forecast vs.

Effort and Cost Project to Date Actual Costs

Costing

Resources Quality Issues

Quality

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 SAP Custom Development
Creating the Perfect Fit

SAP Custom Development: Tailoring to Your Needs

Using Our Methodology: A Systematic Approach
Ensuring 3C Alignment: Core, Corporate, Consulting
Sharing Progress: Internal and External Customers
Staying Best Fit: Exercising on Results
Wrap-up: 7 Key Points
 Excelling as an Organization

Feedback Collection
" Methodology Feedback Tool

" Regional Methodology Contacts

" Formal Q-Gates

" Quality Monitoring

" Quality Audits

" Project and Methodology KPIs

" Project Closure Process

" Product Standards SMEs

" Lessons Learned Process

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 Serious About Lessons Learned

Goal Purpose
Prevent adverse To learn from
practice Adverse
mistakes and successes
reoccurrence Practices

d
Correct

M
on
an
sp
Effective
Effective

ag
Practices
Practices Improve

Re
Capitalize on To share

e
Kn
effective Project
Project knowledge!

&
practices Needs
Needs Lessons Educate

ow
e
ur
Learned

le
pt

Single

dg
Ca

Needs Communicate

e
Be Better & Best
Improve Improve Augment Build
Performance Quality Comm. Teamwork
Efficiently provide Increase internal and
training based on Effectively Reduce Increase external customer
real experiences Train Risk Satisfaction satisfaction

Value Added
SAP AG 2005, 28
 Collecting and Acting on Lessons Learned

Formalized Process
! Process definition was Operational Excellence Initiative
! Process guideline and template was part of our methodology
! Process training made available via virtual classroom recording

Session Types
! Internal: Cross organizational project team members
! External: Customer and project team representatives

Process Insight
! Project mandatory
! Recognized industry information gathering methods used
! Lessons learned repository
! Results reported to team, senior management, and customer
! Acted upon

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 SAP Custom Development
Creating the Perfect Fit

SAP Custom Development: Tailoring to Your Needs

Using Our Methodology: A Systematic Approach
Ensuring 3C Alignment: Core, Corporate, Consulting
Sharing Progress: Internal and External Customers
Staying Best Fit: Exercising on Results
Wrap-up: 7 Key Points
 7 Key Points

SAP Custom Development

# Ensures quality and speed of delivery with proven development
methodology and direct access to 30 years of development experience
and expertise
# Allows for methodology alignment with core development and
consulting delivering requirements on time and with the highest
degree of quality
# Lowers TCO and accelerates delivery by providing predefined packages
of services and solutions
# Optimizes access to global SAP resources for lower delivery cost and
greater flexibility
# Enables continued innovation and enhanced return on SAP investment
by providing unique solutions on the SAP business process platform
# Mitigates business risk by synchronizing with SAP release strategy
# Protects your investment with long-term maintenance options

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 Resources

To learn more about SAP and SAP Custom Development,

visit our site:
! http://www.sap.com
! http://www.sap.com/services/customdev

To speak to someone in SAP Custom Development

! Christopher Farrell
Newtown Square Office, Pennsylvania, United States
T +/610/661/8029
! Ellen Thiele
Newtown Square Office, Pennsylvania, United States
T +/610/661/1435

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 Contact

Donna Gregory
Quality Manager
SAP Custom Development

SAP America, Inc.

3999 West Chester Pike
Newtown Square, PA 19073 USA

T 1-610-661-0883
F 1-610-661-0884
E donna.gregory@sap.com
http://www.sap.com

SAP AG 2005, 33
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SAP AG 2005, 34