Run SAP

Smooth Operation of Business Processes

and SAP®Solutions
The Importance of Using the Right Methodology

SAP Active Global Support

Dec. 2009
 Agenda

1 Challenges of today’s IT

2 Solution: Standardization of solution operations

3 Implementing Standards

4 Summary

© SAP 2008 / Page 2

 The Nature of Business Is Changing
Business networks lead to increasing innovation and integration speed

» INCREASED SAP LANDSCAPE INTEGRATION

Every customer has mission-
Business Networks critical applications along
No. of users
with integration needs
SAP landscapes become more
sophisticated the more
comprehensive & integrated
they are
SAP provides advanced support
R/3
Manguistics

options to manage innovation

and integration, risk and
Legacy
System

TCO

2000 2007 2010

MANAGING HIGH SPEED OF INNOVATION AND INTEGRATION, RISK AND

TOTAL COST OF OPERATIONS IS AT THE HEART OF RUN SAP

© SAP 2008 / Page 3

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #1: Continuous Innovation & Differentiation

How to maintain innovation & competitive advantage with issues like:

Supplier integration across the value chain
Mergers & acquisitions
Rapid growth
Governance requirements
Proliferation of new, enhanced technologies like SOA and Web 2.0
… all of which require rapid & continuous technological improvement

Key Challenges for a chemicals giant with multiple geographies is the

integration of suppliers directly in his supply chain.
Agreement of standardized data formats to enable electronically data exchange
Integration external suppliers in electronic data interchange (EDI) processes in one
end-to-end monitoring system
Set-up cross company monitoring and issue tracking incl. agreed SLA’s

© SAP 2008 / Page 4

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #1: Continuous Innovation & Differentiation

How to maintain innovation & competitive advantage with issues like:

Supplier integration across the value chain
Mergers & acquisitions
Rapid growth
Governance requirements
Proliferation of new, enhanced technologies like SOA and Web 2.0
… all of which require rapid & continuous technological improvement

Key challenges of a leader in skincare and beauty products when

integrating new acquired business unit:
Define business requirements and derive IT and operations requirements
Roll-out new processes and tools
Enable users, key-users and operations team
Adjust quality management processes and SLA‘s with hosting partner

© SAP 2008 / Page 5

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #1: Continuous Innovation & Differentiation

How to maintain innovation & competitive advantage with issues like:

Supplier integration across the value chain
Mergers & acquisitions
Rapid growth
Governance requirements
Proliferation of new, enhanced technologies like SOA and Web 2.0
… all of which require rapid & continuous technological improvement

Key challenges of a European telecom firm to cut costs and boost

productivity, while ADSL-business is rapidly growing:
New business line must be integrated in existing processes and IT landscape
Unexpected increase of contract volume and data volume
Shorter ramp-up time for new product introduction
Enabling of growing no. of employees in shorter timeframe incl. scalable user support concept

© SAP 2008 / Page 6

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #1: Continuous Innovation & Differentiation

How to maintain innovation & competitive advantage with issues like:

Supplier integration across the value chain
Mergers & acquisitions
Rapid growth
Governance requirements
Proliferation of new, enhanced technologies like SOA and Web 2.0
… all of which require rapid & continuous technological improvement

Key challenges of a large food and beverages company while fulfilling

the legal directive for traceability of all foodstuffs, animal feeds and
ingredients in all stages are:
Integrate new requirements throughout the supply chain, e.g. via implementation of RFID-
enabled processes
– Ensure data is every time of high quality and available in order to meet governance
required via additional reporting
– Set-up process and data flow documentation as part of the solution documentation

© SAP 2008 / Page 7

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #1: Continuous Innovation & Differentiation

How to maintain innovation & competitive advantage with issues like:

Supplier integration across the value chain
Mergers & acquisitions
Rapid growth
Governance requirements
Proliferation of new, enhanced technologies like SOA and Web 2.0
… all of which require rapid & continuous technological improvement

Key challenges of a large telecommunication company while and after

implementing Service-oriented Architecture are:
Enablement of the organization to be ready for SOA (company organization and roles/skills)
Harmonization and consolidation of the current IT implementation
Enhancement of the operations procedures for change management to fit for web services
requirements

© SAP 2008 / Page 8

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #2: Increased Cost & Risk

Increasing Complexity is the #1

Cause of System Failure.
Economist Intelligence Unit, 2007

30% of issues incur time-to-resolution

of more than one day.
Forrester, 2006

67% of mission-critical applications

have more than 9 hours of downtime
per month.
Downtime The Standish Group

ERP downtime costs $6,400 to $7,600

per minute.
BMC, 2006

© SAP 2008 / Page 9

 These Changes Bring New Challenges
Complexity & control loss lead to cost & innovation challenges

CHALLENGE #1: Continuous Innovation & Differentiation

CHALLENGE #2: Increased Cost & Risk

Downtime

EFFECTS

Delay of invoicing

Delay of company revenue

Loss of employee productivity

© SAP 2008 / Page 10

 Run SAP Helps to Reduce TCO and gives the
Freedom to Invest in new Innovations

Optimized
Typical TCO
Operations releases
Split*
investments
Applying SAP E2E-Standardization
provides access to further scale effects
Licenses 5% in operations
*
Other *
13% Better quality in operations avoid
expensive incidents
Infrastructure, 20%
*
systems Shorten recovery time with
optimization
Implemen- *
22%
tation Enhance Operations Automation, e.g.
Job Scheduling Management

Operations *
40% Prevent loss of your valuable business
data by implementing SAP Standards
for Data Integrity and Transactional
Consistency
*Averages from various IT analyst reports e.g.
Gartner Group, 2001; TCO = Total cost of ownership

© SAP 2008 / Page 11

 Increase Value Thru
Methodically Standardization

Standardized
Key Factors for successful Operations Key Elements for
IT Management releases Successful Standardization
Innovation

Innovation &
Differentiation PROCESSES

Risk less and reliability

E2E operations
ORGANIZATION

Lower and transparent

Cost
TOOL

© SAP 2008 / Page 12

 Agenda

1 Challenges of today’s IT

2 Solution: Standardization of solution operations

» Processes and Methodology

– Introduction of E2E Standards for solution Operations

– Value of E2E Solution Operations for customers

– Example, customer quote

» Organization
» SAP Solution Manager

© SAP 2008 / Page 13

 SAP shares world class support
knowledge for End-to-End Operations

SAP standardizes End-to-End Solution Operations

SAP Standards for Solution Operations:

Define mission-critical operations processes
Provide Best Practices and Implementation
Roadmaps
Based on a general organizational model
Trainings/Certifications are available
Available for download at
http://service.sap.com/supportstandards

THE STANDARDS ALLOW TO SET UP BEST-IN-CLASS OPERATIONS

© SAP 2008 / Page 14

 You need not only to
implement, but also to manage
the operations of business
processes after going live with
the software!

© SAP 2008 / Page 15

 Quote from Surgutneftegas on Stage at
Sapphire in Berlin on May 20th 2008

Rinat Gimranov, Surgutneftegas, Head of IT Department

Viktor Tertyshnyy, Surgutneftegas, Head of the CCC
Results from applying the E2E standards:

“ Realized Benefits due to End-to-End Solution Operations

Millions $ (on time) due to performance optimization
Millions $ p.a. due to data volume management
IT Operations productivity increased by 100% - half of the
end-user support staff is operating the same number of
users
Doubled number of productive systems by constant
number of system operations staff

Freed up resources for innovation projects

„
THE BENEFITS OF IMPLEMENTING STANDARDIZED OPERATIONS
ARE SHORTLY OVER-COMPENSATING THE PROJECT EFFORTS
© SAP 2008 / Page
SAP Services
16 / Page 16
 Agenda

1 Challenges of today’s IT

2 Solution: Standardization of solution operations

» Processes and Methodology

» Organization
– Introduction CCoE

– Value of a CCoE for customers

– Example, customer quote

» SAP Solution Manager

© SAP 2008 / Page 17

Customer Center of Expertise
Goals of the Customer COE

The Customer Center of Expertise drives transparency and integrated quality

management for resolution of critical challenges across SAP solution
operations

Standardize application management and establish a Single, Central Source of Truth

Provide transparency to challenges and top issues and bring all stakeholder to the table to address
Integrate organizational units via one end to end quality management process
Draw innovation directly from SAP to avoid unnecessary modifications
Manage in-house as well as Outsourced/Outtasked areas

BUSINESS
Global Business Process
Champion
Customer COE
End User, Program Management
Key User Office (PMO)
Regional Business Process
Champion

Application Management
QUALITY MANAGEMENT
Integrated Q- Management, One source of thetruth

Custom Business
SAP Technical Operations
Development Process Operation

IT Infrastructure

IT
 Customer Center of Expertise
Central Source of Truth and Integrated Quality Management

Global Business Process

Champion Program
Establish a Central Source of Truth
End User,
Management Office
Regional Business Process
Key User
(PMO) The Customer COE drives the quality
Champion
management process for all organizations
involved in implementing the processes
Application Management
and the systems that support the
Custom Business
enterprise’s business processes.
SAP Technical Operations
Development Process Operation
The objective is to ensure “one central
IT Infrastructure source of the truth”.
Agreed and documented scope definitions
including functional and technical
specifications
Mission Control Center and co-ownership for
each key challenge
Project status and Operational challenges
are reported with defined and agreed Top
Issues;
Top Issues are owned by one team but
managed collaboratively by all stakeholders
and organizations

© SAP 2008 / Page 19

 Agenda

1 Challenges of today’s IT

2 Solution: Standardization of solution operations

» Processes and Methodology

» Organization
» SAP Solution Manager
– Introduction of SAP Solution Manager

– Value of a SAP Solution Manager for customers

– Example, customer quote

© SAP 2008 / Page 20

 SAP Solution Manager Enterprise Edition
Platform for Enterprise Support and Application Management

SAP Solution Manager Enterprise Edition provides

all capabilities and enables all services for SAP Enterprise Support

Require-
SAP Solution Manager Enterprise Edition
ments
Reduces risk and lowers TCO
through standardized and integrated E2E Solution
Optimize Design
Operations
Application
Management Optimizes business benefits
through a comprehensive and integrated quality
Operate Build & Test management process

Leverages built-in innovation

Deploy
by making innovation a non-event and protecting
existing investments

© SAP 2008 / Page 21

 Application Management Lifecycle
SAP Solution Manager: Support Processes In Action

SAP Support
Services
Upgrade from R/3 to Identification of critical
SAP Business Suite business processes
Improvements of processes, Require-
ments
Innovation Management
components and solutions

Maintenance of Optimize Design Solution Documentation

SAP Solutions Application incl. custom code
Management

Root Cause Analysis Operate

Build & Solution Implementation/
Test ASAP
Deploy
Incident Management Integration Testing

Monitoring of mission- Integration Validation

critical processes

Deployment of
solution updates

© SAP 2008 / Page 22

 SAP Solution Manager Enterprise Edition
Customer Quote on Benefits

Protects investment while stimulating

innovation “
SAP Solution Manager
Enables integrated solution lifecycle addresses our entire
management infrastructure
Leverages industry-leading standards for management needs,
operations reduces risk, lowers
the cost of ownership,
Provides consistent quality management and speeds the return
process across all technology stacks & code on investment for our
bases, for the entire SAP platform online buying solution.
Supports mission-critical operations Guillaume Legros, Project
Manages the fast pace of innovation & Leader, Airbus France
SAS
integration and the total cost of operation for
customers „
Resulting in continuous improvement and successful solution
operations at lower risk & cost

© SAP 2008 / Page 23

 Agenda

1 Challenges of today’s IT
2 Solution: Standardization of solution operations

3 Implementing Standards
» Run SAP Methodology
» Run SAP Services
» Education Curriculum
» Partner Program

4 Summary

© SAP 2008 / Page 24

 Implement End-to-End Solution Operations
with Run SAP

Run SAP
Assessment Setup Operations
& Scoping Operations & Optimizations
End-to-End
Solution
Operations
Design Handover into
Operations Production

Mission
Run SAP provides a proven methodology to optimize
implementation, upgrade and ongoing management of End-
to-End Solution Operations, to reduce the Total Cost of
Operations along the entire solution lifecycle.

© SAP 2008 / Page 25

 SAP Provides Aligned Methodologies Along
the Solution Lifecycle

Run SAP provides a proven

methodology to optimize the
implementation and ongoing
management of End-to-End
Solution Operations.

AcceleratedSAP (ASAP)
provides a proven methodology
to streamline implementation
and upgrade projects.

© SAP 2008 / Page 26

 Run SAP an Experience “to-go”
Implementation methodology for E2E Solution Operations

Run SAP
Services
Engage SAP experts to implement E2E solution operations

SAP Standards for Roadmap Trainings &

Solution Operations Accelerate the Certification
Define central E2E implementation of Provide up-to-date
operations tasks E2E operations skills for the ecosystem

SAP Solution Manager

Provides the platform for E2E solution operations

RUN SAP FACILITATES THE IMPLEMENTATION OF

E2E SOLUTION OPERATIONS

© SAP 2007
2008 / Page 27
 A Proven Methodology due to Practical
Experience of the SAP Experts

„
PRACTICAL EXPERIENCE IS KEY

Leverage standardized and proven methodology

based on SAP’s 35 year experience with 47,800 +
customers
Includes a high level of standardization and
quality for support and operations procedures
Based on comprehensive knowledge how to ‘run’
SAP centric solutions
Attested the successful implementation of end-to-
end solution operations with its invaluable
benefits
Increased transparency through centralized
change management and clearly defined change
processes

© SAP 2008 / Page 28

 Run SAP is a phased methodology based on
world-class knowledge (V3.0)
End-to-End
Solution
Operations
SOA
Readiness

Assessment & Design Setup Handover Operations and

Scoping Operations Operations into Production Optimization

Operational
End-user End-user support Operational End-user
requirements
support concept implementation Enablement support
analysis
Change Change
Transition Change
Scope definition management management
Management management
concept implementation
Technical SAP Application SAP Application
Transition into SAP Application
requirements and management management
production management
architecture concept implementation
Business process Business process Business
Project setup operations operations Sign-off process
concept implementation operations
Governance Custom code Custom code
operations operations Custom code
model for
concept implementation operations
operations
SAP Technical SAP Technical
SAP Technical
operations operations
operations
concept implementation
Technical Technical Technical
infrastructure infrastructure infrastructure
design setup management

© SAP 2009 / Page 29

 Run SAP for Industries

Run SAP for Industries

Available with Roadmap Version 2:

Run SAP for Retail,
Run SAP for Utilities and
Run SAP for Banking

Planned with Roadmap Version 3:

Run SAP for Automotive

© SAP 2008 / Page 30

 Agenda

1 Challenges of today’s IT
2 Solution: Standardization of solution operations

3 Implementing Standards
» Run SAP Methodology
» Run SAP Services
» Education Curriculum
» Partner Program

4 Summary

© SAP 2008 / Page 31

 SAP Services
Supporting End-to-End Solution Operations

Program
Continuously improve and
Mgr successfully operate solutions
more efficiently with higher
PROJECT
reliability and availability
Hub Partner
Fully protect your solution
Local
Global environment and ensure stability
Practice Delivery

Support mission-critical
operations
Utilize industry-leading standards
with consistent methods,
processes, and tools for the
ecosystem

SAP can help you to standardize your IT Operations

via SAP MaxAttention, SAP Safeguarding and SAP Consulting Services
based on the experience of over 47,800 customers

© SAP 2008 / Page 32

 Why SAP Services?
The breadth and depth you need to succeed

35+ years of experience

Strategic solutions in more than 25 major

industries

20,000+ SAP Services experts

Global 24/7 customer and partner support

Complete ecosystem with 3,850 partners

covering strategy to execution

YOUR SUCCESS IS OUR SUCCESS!

© SAP 2008 / Page 33

 Agenda

1 Challenges of today’s IT
2 Solution: Standardization of solution operations

3 Implementing Standards
» Run SAP Methodology
» Run SAP Services
» Education Curriculum
» Partner Program

4 Summary

© SAP 2008 / Page 34

Run SAP Training and Certification

Project Management Technical Management

3 days
Test Management
(Q1 2010)

© SAP 2009 / Page 35

 Agenda

1 Challenges of today’s IT
2 Solution: Standardization of solution operations

3 Implementing Standards
» Run SAP Methodology
» Run SAP Services
» Education Curriculum
» Partner Program

4 Summary

© SAP 2008 / Page 36

 Run SAP Implementation Partner
Profile

Prerequisite – SAP Services Partner

Adopt Run SAP methodology into own SAP

implementation standards
Implementation of End-to-End Solution Operation
Standard/Methodology
How to become Run SAP
Partner! Create own Run SAP Practice
35 certified Support consultants for Global Services
Partners – two regions minimum
Apply for participation via AGS
Partner Enablement & Training 11 certified Support Consultants for Local Services
Partners
Certify your resources for
training via SAP Education Two Step Certification Process
Role Based Training
Partner Resources to pass certification exam to become
Adopt the Run SAP certified SAP Support Consultants in the various roles
Methodology Partner organizations to pass audit based on adoption of
Run SAP
Develop Go To Market
Strategies

Build a Run SAP practice

© SAP 2009 / Page 37

 Agenda

1 Challenges of today’s IT

2 Solution: Standardization of solution operations

3 Implementing Standards

4 Summary

© SAP 2008 / Page 38

 Key Points to take Home on Run SAP

End-to-End Solution Operations ensure efficient

application management, and
Reduce time to resolve incidents and correct data inconsistencies
Improve resource utilization for problem diagnosis
Improved end-user perception due to reliability of IT solutions
Increased transparency through centralized change management
and clearly defined change processes
Provide comprehensive knowledge transfer

Value of Run SAP Methodology

Improved expertise and skills
High level of standardization and quality
Efficient tools and processes
Successful implementation of your solution operations end-to-end
Reduced total cost of operations

© SAP 2008 / Page 39

 More about Run SAP and End-to-End Solution
Operations

Service Market Place

www.service.sap.com/e2e
www.service.sap.com/runsap

Public Information
www.sap.com/supportstandards
www.sap.com/education/e2e

© SAP 2008 / Page 40

 Thank You for Your Attention

© SAP 2008 / Page 41

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