SAP R/3 Implementation

Purpose:
There are many steps on the road to a successful enterprise resource
planning (ERP) implementation. Key components of the relatively complex
(multi-site, multi-country) implementation.
Agenda:
1. Business Case 2mins.
2. Project Scope 2mins.
3. Program Approach 2mins.
4. Implementation Methodology 16mins.
5. Technical Infrastructure 4mins.
6. Q & A 6mins.

SAP Implementation Presentation

The Enterprise Resource

Planning Package SAP R/3
Real-time Processing
SD

Sales &
Distribution

MM

Open System

Flexibility

Materials
Mgmt.

CO

SAP Implementation Presentation

Controlling

PP

SAP R/3

QM

Client/ Server
Architecture

Production
Planning

Quality
Management PM
Plant Maintenance

HR

Human
Resources

Worldwide Usage

FI

Financial
Accounting

Integration
Integrated
processes and data
Application
integration
Technical integration

AM

Fixed Assets
Mgmt.

PS

Project
System

WF

Workflow

IS

Industry
Solutions

Business Intelligence
Decision Support
Early Warning
Reporting
Analysis

Headcount Management How powerful would it be to know how many

employees we have, where they are, and what they are qualified to do?
IT Application Support How much money would be saved if we supported
centrally a single technology and application based on standard data?
Financial Analysis What strategic analyses could be performed if financial
analysts did not spend 70% of their time gathering and transforming the
data?
Project Management Imagine integrating project management, financial, and
HR processes with the ability to perform project scheduling & capacity
planning.

Using common processes and real-time, global

information.

SAP Implementation Presentation

Program Approach
Training Training starts with the education of the
project team in system and project management,
and ends with the training of the users
Project control Project control should be carried
out during the whole project, following the project
control cycle. The project team must identify and
continually measure deviations from the project
schedule
Risk management Potential risks must be
identified at an early stage, and thoroughly
analyzed, and appropriate preventive measures
must be initiated to avoid the risk identified.
Change management Users may perceive
changes either positively or negatively. These
change cycles must be actively managed by the
respective leader.

SAP Implementation Presentation

Implementation Will Require

Major Organizational Change
Technolog
y

Installing,
configuring, and
running the software
Standardizing and
centralizing
technology
Data standardization
and clean-up

Process

Fundamentally rethinking
how to perform business
processes
Willingness to sacrifice
uniqueness for the greater
good

People

Realizing the
benefits of the
major change
investment
Changes in
behaviors to be
consistent with
the new business
model

Which component will be the most challenging?

SAP Implementation Presentation

 Implementation strategy: A fundamental decision

must be taken as to the implementation strategy:
step-by-step, big bang or roll-out.
o Step by step- Modules are implemented
consecutively
o Big bang- All modules are implemented
simultaneously
o Roll-out- A model implementation at one site,
which is then rolled out to other sites
o Hybrid- A rollout approach implemented as a big
bang or a step-by-step

SAP Implementation Presentation

Project Scope: Functionality

Valuation
&
Control

Order to
Cash
Purchase
to Pay
Financial
Reporting
& Planning

Project
Management
Processes

SAP Implementation Presentation

Project
Planning &
Scheduling
Resource &
Capacity
Planning
Time &
Expense
Reporting
Materials
Management

Human
Resources

Personnel
Administrati
on
Compensati
on &
Benefits
Admin
Organizatio
nal
Developmen
t

Supply Chain
Management

Quality
Mgmt.
Mfg.
Operations
& MAPS
Forecastin
g&
Planning
Inventory
Planning

Implementation Methodology

6 of 7 Stages
A logical grouping of components
Component

15 Components
A logical grouping of activities

5 Gates
A decision point; determine whether the project has
met the local implementations stage requirements

SAP Implementation Presentation

Propose Stage
Business Impact
Analysis

Conduct Model
Office

Detailed
Requirements

Goals:
Using increasing
levels of detail,
describe the
business needs.

Project
Proposal

Affiliate
Assessment

Project Plan &

Validation Plan

Release Project
Plan

Business
Requirements

SAP Implementation Presentation

Design Stage
Technical
Assessment

Design
Specification

Goals:
Prepare for
Informal Integration
Testing
(IIT)
Build Setup Dev
Environment
Development
Environment

Test Plan

SAP Implementation Presentation

Translate
requirements into a
workable design.
Plan testing.
Prepare the
environment for
construction
activities

Construct Stage
Goals:

Source Code

Application
Development &
Unit Testing

Informal
Integration
Testing

Training
Administration For
Existing &
New Users

Completed Test
Plan

SAP Implementation Presentation

Completed SOPs,
Training Manuals &
User Manuals

Implement design by
coding and/or
integrating software.
Execute planned
testing. Complete
supporting materials
such as SOPs, user
manuals and
training materials.
Formally turn
system over for
acceptance testing.

Test Stage
Acceptance
Testing

Execute Test
Plan
Completed Test
Plan

Execute
Formal
Integration
Testing (FIT)

Validation
Reporting
Validation
Report

SAP Implementation Presentation

Goals:
Complete user
acceptance testing
and validation
reporting.

Deploy Stage

Cutover

Installation
Qualification
Critique &
Sponsor
Feedback

Go-live

SAP Implementation Presentation

Goals:
Move a fully
functioning system
into production.
Assess system with
Sponsor in postimplementation
review.

Support Stage

Operations

Functional
System

Goals:

Maintenance

SAP Implementation Presentation

Controlled
Maintenance
Processes

Operate the system

according to the
specified
requirements and
procedures.
Maintain the system
using a change
control process.

Technology

SAP Implementation Presentation

Technology
Definition: Single Instance Technology- An
instance is a single database and hardware
environment where the system resides. All
programs and data are stored here.
Benefits:
Higher level of global business integration across the
enterprise
o

Business functions within sites and across globe are

integrated

Integration facilitates rapid deployment of upgrades,

fixes, or enhanced technology worldwide
More streamlined, yet still a complex infrastructure

SAP Implementation Presentation

Technology
We have 6 separate SAP environments that are
actively used as a part of release cycle or
production support
We run 1 environment (initial installation) that is for
Basis prototyping
We run 12 different SAP applications that run a total
of 61 different databases
Our standard platform configuration is Sun Solaris
Unix servers running Oracle databases
We have a total of 54,746 users in the production
SAP system
The implementation is accessible in 17 countries

SAP Implementation Presentation

The Final Word

Understand the magnitude
Appreciate the complexity
Embrace the challenge

SAP Implementation Presentation

Backup Slides

SAP Implementation Presentation

Business Case: The Drivers

Marketplace

Customer demands
Innovation
Customer service

Intense competition
Shorter product life
cycles
New competitors

Changing markets
Globalization
Advances in
technology

Smaller margins

SAP Implementation Presentation

Lack of integration
Lack of consistent,
accurate data
Minimal global data
Lack of flexibility
Inefficient use of
resources

Business Case: The Benefits

Reduced complexity and cost

Faster decision-making
More flexibility
Increased ability to manage
change

SAP Implementation Presentation

Project Scope:GBIP
Global
Locations
Global
Locations
Albania
Algeria
Angola

Australia

Austria

Argentina
Aruba
Azerbaijan
Bahrain
Bangladesh
Belarus
Belize
Belgium
Benin
Bolivia
Bosnia
Botswana

Brazil
Bulgaria
BurkinaFaso
Cambodia

Canada

Chile

China

Columbia
Congo

Costa Rica
Croatia
Curacao
Cyprus

Czech
Ghana
Republic

Greece
Denmark
Guatemala
Dominican Republic
Guyana
Ecuador
Haiti

Egypt
Honduras
El Salvador

Hong
Enfield, CT
Kong
Estoria

Hungary
Ethiopia
Iceland
Finland

India

France

Indianapol
Fresno, CA
is, In
Gabon

Indonesia
SAP
Implementation
Presentation

Germany

Israel

Irel
and

Ital
y
Ivory Coast
Jamaica

Jap
an
Jordan
Kazakstan
Kenya

Kor
ea

Lebannon
Libya
Lithuania
Macau
Macedonia
Madagascar

Mala
ysia
Malawi
Mali
Malta
Mauritania
Mauritius

Mexi

Mongolia
Morocco
Mozambique
Myanmar
Namivia
Nepal
Netherlands
New Guinea

New
Zealand
Nicaragua
Niger
Nigeria
Norway

Pakistan
Palestine
Panama
Paraguay

Peru

Philipp
ines

Poland

Portug
al

Puerto
Rico
Qatar
Uganda

Rwanda
Saudi Arabia
Senegal

Singapo
re
Slovak Republic
Slovoria

South
Africa

Spain
Sri Lanka
Sudan
Suriname
Swaziland

Syria
Tadjikistan

Taiwan
Tanzinia

Thailand
Togo
Trinidad/Tobago
Tunisia

Turkey
Turkmenistan
Ukraine
United Arab
Emirates

United

United
States
Uzbekistan

Venezue
la

Vietnam
Yugoslavia
Yemen
Zaire
Zambia
Zimbabwe

Program Approach, continued

Set the standard for large-scale global business
process redesign and SAP implementations
Fundamentally change the way client will conduct
business
o Design key business processes
Based on industry, SAP and client best
practices
o Impact future organizational structure
o Make available the key data people need to
make better decisions
Managed centrally using standard methodologies,
templates, and practices
Focused on quality (GMP, CSQ & Project
Management Discipline)

SAP Implementation Presentation

Project Methodology

The System Engineering Framework (SEF) is a system development

and support guide that is aligned with generally accepted project
management and software engineering standards
SEF is aligned with the Project Management Body of Knowledge
(PMBOK) provided by the Project Management Institute (PMI) and
International Organization for Standardization (ISO) standards for
creating and managing software

SAP Implementation Presentation

The Challenge of Change

Enterprise optimization increases the emphasis on processes and
process integration, reducing the emphasis on functions
Common business processes will challenge the concepts of
initiative and uniqueness that are sometimes a source of local pride
New business processes will lead to different jobs and roles, new
competency requirements, and new organization structures

Within an organization everyone will have to change in some way.

SAP Implementation Presentation