SAP

Presentation for Projects

Gary Francis

29/02/2008 CONFIDENTIAL 1
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

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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

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Economic Trends: Enterprises are responding to global economic pressures
through actions to control costs, achieve efficiencies and find pockets of
global growth
Consolidation , asenterprisesfocusonachievingscaleeconomiesandcreating

complimentarybrandportfolios

Specialisation, asenterprisesdivest non-coreoperationstoincreasecost efficiencies

acrosstheenterpriseandimproveshrinkingmargins

IncreasedDiligence, asenterprisesbracingforyearsof wealthglobal economies

exercisebettercost management andmorerigorousfocusonreturnoninvestedcapital

29/02/2008 CONFIDENTIAL 4
Strategic Trends: Enterprises demand better alignment of their
business and technology strategies

E-businessmaturation, forcingenterprisestomigrateexistinglegacyapplicationstothe

web

BestBusinessProcessPractice, asenterprisesattempt toimprovebusinessand

eliminateapplicationsbasedonsub-optimal businessassumptions

BusinessApplicationStandardisation,, asenterprisestryandreduceapplication

customisation

Bu29/02/2008
sinessApplicationInteroperability ,, asenterprisespromoteenterprisewideintegration
CONFIDENTIAL 5
Buying Environment Trends: Enterprises are seeing dramatic shifts
in how, why and by whom IT investments are made

IncreasedReceptivityTowardsOutsourcing, asenterprisesdifferentiateonthe

basisof products, servicesandknowledgeratherthanbusinessprocessesandI.T.

support

IncreasinginvolvementinLOBandC-level Execs, inall aspectsof I.T. purchasing,

asbusinessstrategyandtechnologycapabilitiesincreasinglybecomeinterdependent

IncreasedreceptivityofApplicationManagement, asenterprisesbecome

comfortablewithandoftendemandmulti-vendorandmulti-countryresourcesfor

AD/M

Inc29/02/2008
reasingemphasisonROI, asenterprisesaredemandingmorebusinessvalue 6
CONFIDENTIAL
Why implement SAP?
Because of its integration
 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

29/02/2008 CONFIDENTIAL 7
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

29/02/2008 CONFIDENTIAL 8
Example SAP Method

Stage I Stage II
Program Management
Business

Project Business Final Go Live Organization

Evaluation Realization Sustain
Preparation Blueprint Preparation and Application
Support
Architecture
Operations

Risks:
• Development of risk
conscious culture for the
project

29/02/2008 CONFIDENTIAL 9
Example SAP Method

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

Program Management

Business

Domains
Project Business Final Go Live Organization
Evaluation Realization Sustain
Preparation Blueprint Preparation and Application
Support
Architecture

Operations

29/02/2008 CONFIDENTIAL 10
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.
Typical Client SAP Project Lifecycle

Program Management
Business

Realization
Preparation

Preparation
Evaluation

Business
Blueprint

Sustain
Project

Organization

Support
Go Live
Final

and
Application
Architecture
Operations

SAP AG TM for AcceleratedSAP

• Approach Philosophy • Project Phases

 Typical Client SAP is designed to be scalable and encourage the iterative  Phase 0 - Evaluation
definition and refinement of deliverables throughout the project lifecycle. The  Phase 1 - Project Preparation
project lifecycle is composed of activities that are organized by phase and  Phase 2 - Business Blueprint
domain views. These activities represent specific activities and deliverables
 Phase 3 - Realization
(outputs).
Typical Client SAP method enhances SAP’s standard AcceleratedSAP  Phase 4 - Final Preparation
method by including the Evaluation and Sustain Phases, and by additional  Phase 5 - Go Live and Support
material included within the other phases.  Phase 6 - Sustain

29/02/2008 CONFIDENTIAL 11
Example SAP Method
Phase 0 – Evaluation

Objective: Program Management

Preparation

Preparation
Realization
Business

Evaluation

Go Live and
Business
Blueprint
 Develop and / or confirm

Sustain
Project

Support
Final
Organization
project scope, align scope
Application
with company strategy, and
build stakeholder support Architecture

Operations

Activities:
• Understand Customer Strategy and Market Position. Sample Key Deliverables/ Results:
• Understand Strategic Opportunities  Strategy, Market Position Analysis Document
• Understand the Client’s Readiness for Change  Prioritized List of Strategic Opportunities
• Conduct Senior Executive Level Workshop Covering:  Preliminary Change Readiness Assessment
– Project Strategies Confirmation  Completion of Executive Level Confirmation
– Project Scope
– Organization Readiness
Workshops
– Demonstration of SAP BW Capabilities and Impacts  Project Strategies are complete and signed-off by
• Build planning for the SAP BW project the project sponsors
• Establish Project Organization  Project scope is signed-off by the project sponsors
• Assign resources  Project Plan is delivered
Risks:  The project kickoff meeting is held
 The Steering Committee is in place
• Analyis business and financial risk that will impact the forecasted timeline  The project team is staffed
• Evaluate possible risk of change in business requirement affecting the expected
business benefit
• Measure the business risk of the customer against initial project requirements.
29/02/2008 CONFIDENTIAL 12
Example SAP Method
Phase 1 – Project Preparation
Objective: Program Management

Preparation

Preparation
Realization
Business

Evaluation
 Perform detailed project

Go Live and
Business
Blueprint

Sustain
Project

Support
Final
planning & scoping, Organization

establish the project team, Application

and refine documents Architecture
created in evaluation Operations

Activities: Sample Key Deliverables/ Results:

 Create Project Charter
 Refine Project Team Organization  Project Charter
 Refine Earned Value Milestones  Project Team Organization Structure
 Develop Detailed Workplan  Milestone Program Plan
 Define Project Methods, Standards, Procedures, and  Detailed Workplan
Tools  Document Methods, Standards, Procedures, and
 Understand Risks and Critical Success Factors
 Conduct Team Orientation Tools
 Define Technical Infrastructure Organization  Project Risks and Critical Success Factors
Assessment
Risks:  Team Orientation meeting is held
• Lack of key project resources  Technical Infrastructure Organization Document
• H/W performance issues
• Slippages against plan
• Key Project resources
29/02/2008 CONFIDENTIAL 13
Example SAP Method
Phase 2 – Business Blueprint
Program Management
Objective:

Preparation

Preparation
Realization
Business

Evaluation

Go Live and
Business
Blueprint

Sustain
Project
 Create a detailed description

Support
Final
Organization
of your business information Application
requirements
Architecture

Operations

Activities: Sample Key Deliverables/ Results:

• Conduct Trainings  Information Requirement Forms
• Define Information Requirements  Detailed Information Requirement Document
• Identify Business Content Reports/ Indicators  Detailed Analysis Document
• Define new Reports/Indicators  Detailed Workplan for Remaining Phases
• 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

Risks:
• Redundancy in technology and impact to business
• Downtime and impact to the business
29/02/2008 CONFIDENTIAL 14
Example SAP Method
Phase 3 – Realization

Objective: Program Management

Preparation

Preparation
Realization
Business

Evaluation

Go Live and
 Realize the business

Business
Blueprint

Sustain
Project

Support
Final
Organization
requirements defined in
the Business Blueprint & Application

transform the requirements Architecture

into an approved working Operations
system
Activities: Sample Key Deliverables/ Results:
 Install Business Content Indicators/Reports  Components Test Plan
 Build Non Business Content  Report/Indicators Test Plan
Indicators/Reports  Trained Project Team on Testing Methods and
 Conduct Test sessions
Supporting Tools
 Develop Training Materials  Security Profiles and Authorizations Created
 Conduct Instructor and Pilot training  Procedures and Training Materials
 Create Security Authorizations  Built and Tested Report/Indicators
 Define Go-Live Checklist  Knowledge Transfer Assessment
Risks:
• Systems failure (operational, performance bottlenecks)
• Application integration failure
• Scope creep
29/02/2008 CONFIDENTIAL 15
Example SAP Method

Phase 4 – Final Preparation

Objective: Program Management

Preparation

Preparation
Realization
Business

Evaluation

Go Live and
 Complete preparation of

Business
Blueprint

Sustain
Project

Support
Final
Organization
the production SAP BW
system, including end Application

user training, system Architecture

management, and Operations
cutover activities

Activities: Sample Key Deliverables/ Results:

• Products Promote to Production • Cut Over Checklist
• Conduct System Test • Production Readiness Review
• Refine and Execute Go Live Checklist • Quality Review
• Refine and Execute Production Support Plan
• Prepare and Conduct End User Training
• Go Live Approval
• Conduct Quality Review and Obtain Final Cut
Over Approval
Risks:
 Pilot test failure
 Performance issues due to infrastructure scalability
 Knowledge/ skills transfer gap
29/02/2008 CONFIDENTIAL 16
Example SAP Method

Phase 6 – Go Live and Support

Objective: Program Management

Preparation

Preparation
Realization
Business

Evaluation

Go Live and
 Transition from a pre-

Business
Blueprint

Sustain
Project

Support
Final
Organization
production environment
Application
to a live, stable,
Architecture
productive operation
Operations

Activities: Sample Key Deliverables/ Results:

• Provide Production Support (Help Desk) • Production System Ready
• Validate Information Results • Center of Excellence (COE) – Knowledge
• Optimize System Tuning Management
• Execute Ongoing Security Administration • Production Capable End Users
• Conduct Post Implementation Project • Post Implementation Project Review
Review
• Benefits Measurement
Risks:
 Go live failure due to incorrect requirement
capture therefore need to have old system
operational
29/02/2008 CONFIDENTIAL 17
Example SAP Method

Phase 7 – Sustain

Objective: Program Management

• Help ensure that there is a

Preparation

Preparation
Realization
Business

Evaluation

Business
Blueprint

Sustain
framework in place to

Project

Support
Go Live
Final
Organization
sustain and improve the

and
Application
performance of the system
after go-live Architecture

Operations

Activities: Sample Key Deliverables/ Results:

• Provide Production Support (Help • Center of Excellence (COE) – Knowledge
Desk) Management
• Optimize System Tuning • Post Implementation Project Review
• Benefits Measurement
Risks:
• Lack of skilled resources to maintain the operation
running of the system in its early years
• transition risks due to unclear system design
29/02/2008 CONFIDENTIAL 18
Typical SAP Implementation Timeline
Go-Live
<Date>
0.5-1 month 1-2 months 2-4 months 1-2 months 1-2 months

Project Preparation Blueprint Realization Final Preparation Go-Live and Support

 Focus  Focus  Focus  Focus  Focus

 Getting the project  Understanding the  Configuration / Development  End-user training  Cutover and
started Client’s Business of the system (Including unit  User Acceptance validation of the
 Identifying Team Goals / Requirements and Integration testing)  production system
Preparations for
members  Gaining a high level  Preparation of end-user Cutover  Supporting the end-
 Developing a high understanding of SAP training  Organization users
level plan  Developing Business  Organizational Change Change  Issue resolution
Blueprint Management management

 Deliverables  Deliverables  Deliverables  Deliverables  Deliverables

 Project Standards  Project Team Training  Test Plans (Unit, Integration,  System validation:  Production
and Procedures  Org Structure User Acceptance, System) (Security, Data, Environment
 Project Charter  Communications Plan  Configured system according Configuration,  Production Support
 Scope & Approach to blueprint Development,  Go-Live review
 End-User Training
 R/3 Quality Assurance Technical
 OCM Strategy Strategy  Project close letter
Infrastructure)
 Project Plan  Business Process System  Transition to
 Production Support
 Project team training Master List  R/3 Training System Hosting services
Plan (Help Desk)
plan  Approved Business  User Roles & Authorizations
 Cutover Plan
 Project Kickoff Blueprint  End-User Training materials
 End-User Training
Meeting  Refined Project Plan
 Go / No-Go
 R/3 Development
Decision
system
 R/3 Production
System

29/02/2008 CONFIDENTIAL 19
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
Industry Drivers Strategic Imperatives
Driving Profitable Growth Focus on Core Functions to Drive Growth
 Persistent low growth, “zero” inflation
 New business and IT transformation initiatives to focus on
 Globalization of commerce and culture
revenue and growth targets
 New functionality and capabilities required; CRM, TPM, PLM,
SEM, customer collaboration

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
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

29/02/2008 CONFIDENTIAL 20
Pressure to change Spending Model

Differentiated Processes
 Marketing 12-18%
100%
 Product Development
EBITDA
 Sales 13-28%
Core
Spend as % of Sales

 Account Management Business

Processes
and
32-47% Components
Non-Differentiated Processes
Non-Core  Finance
50% Business
Processes  Human Resources
and
Components  Procurement
23-27%
 Information Technology

Raw Materials
 Customer Service

0%

29/02/2008 CONFIDENTIAL 21
Client pain points around application management?

Lack of resources 57%

Lack of applications skills / knowledge 47%
Cost reduction 46%
Focus to our core competencies 44%
To reduce workload on internal IT staff 34%
To address a lack of infrastructure 30%
To provide predictable costs 30%
To improve flexibility/scalability 26%
To improve speed to market 24%
To provide training skills/knowledge 23%
To provide business process skills / knowledge 20%
To reduce risks 19%
To gain expertise in enterprise application strategies 11%
To provide predictable schedules 7%
To provide consistent remote locations adoption / support 6%
Other 3%

0% 10% 20% 30% 40% 50% 60%

29/02/2008 CONFIDENTIAL 22
CONSULTANT DETAIL

• Name : G Francis

• Email : Technology.solutions@yahoo.com

• M: 079503 09267

• Copy write @ 2008

29/02/2008 CONFIDENTIAL 23