SAP implementation is the whole of processes that defines a complete method to implement the SAP ERP enterprise resource

planning software in an organization. The SAP implementation method described in this entry is a generic method and not a specific implementation method as such. It is based on best practices and case studiesfrom various literature sources and presents a collection of processes and products that make up a complete implementation method to allow any organization to plan and execute the implementation of SAP software.

Introduction
The implementation of SAP software, such as SAP R/3 is almost always a massive operation that brings a lot of changes in the organization. The whole process can take up to several years. Virtually every person in the organization is involved, whether they are part of the SAP technical support organization (TSO) or the actual end-users of the SAP software. The resulting changes that the implementation of SAP generates are intended to reach high level goals, such as improved communication and increased return on information (as people will work with the same information). It is therefore very important that the implementation process is planned and executed with the usage of a solid method. There are various SAP implementation methods. An example of how one company, Robert Bosch GmbH, implemented SAP R/3 over 10 years is available. This study shows that designing IT architecture is very critical in SAP implementation practices.

Concept

Definition

CHANGE MANAGEMENT

***Activities involved in (1) defining and installing new values, attitudes, norms, and behaviors within an organization that support new ways of doing work and overcome resistance to change; (2) building consensus among customers and stakeholders on specific changes designed to better meet their needs; and (3) planning, testing, and implementing all aspects of the transition from one organizational structure or business process to another. (www.gao.gov)

CHANGE MANAGEMENT DOCUMENTATION.

All documentation that is required and being delivered whilst performing change management, e.g. the functional test cases and all the other documents a new end-user of SAP requires and the various tools and approaches used to manage change by the TSO. (Anderson, 2003)

Determination of where and when the costs are inquired within the context COST OF OWNERSHIP of the SAP solution stack and ongoing operations. The analysis addresses ANALYSIS all internal and external costs, both one-time as well as recurring (Anderson, 2003)

typically computers and communications equipment. (Anderson. 2003) DISASTER RECOVERY Requirement that focuses on downtime that lasts many hours to days or (DR) REQUIREMENT even weeks (Anderson. 2003) OPERATIONS MANUAL The collection of current state system documentation.e.CUTOVER The process of transitioning from one system to a new one (Anderson. (Anderson. (Anderson. 2003) SAP SAP AG is the name of the biggest European software company. a network infrastructure requirement or a requirement to the network server. 2003) FUNCTIONAL TEST CASE A set of conditions or variables under which a tester will determine if a certain business process works (www. describing how to lock down the system from a technical change managementperspective.org) DATA CENTER REQUIREMENT A requirement for the SAP data center. preparing the TSO for its new role and rolling out the SAP graphical user interface to all future end users. preparing and executing cutover. 2004) CUTOVER PLAN All documentation related to planning. a physical requirement like power requirements. day-to-day and other regularly scheduled operations tasks. The .org) HIGH AVAILABILITY (HA) REQUIREMENT Requirements that describes the amount of time that the system needs to be available to satisfy the needs of the users.wikipedia. i. (www. 2003) DATA CENTER A data center is a facility used for housing a large amount of electronic equipment. a rack requirement.wikipedia. various installation and operations checklists and how-to process documents. (Anderson. 2003) INSTALLATION DOCUMENTATION All documentation related to the installation of an end-to-end SAP solution (Anderson.

Germany. skills. (www.org) SOLUTION STACK PARTNERS LIST A list of all vendors that deliver the products that make up the SAP solution stack (Anderson.eps. It involves testing beyond normal operational capacity. Germany. 2003) SOLUTION STACK Set of software subsystems or components needed to deliver a fully functional solution. A plan is the means by which the trainee satisfies the goal. (IEEE 829) TRAINING The acquisition of knowledge.head office is in Walldorf.ac.org) TEST PLAN A detail of how the test will proceed.wikipedia. 2003) SOLUTION VISION A vision of the future-state of the SAP solution (Anderson. a training plan is the result of hierarchical decompositions of a training goal. often to a breaking point. (www. SAP was founded in 1972 as Systemanalyse and Programmentwicklung ("Systems Analysis and Product") by five former IBM employees in Mannheim.org) TRAINING PLAN Consisting of training units.g. e. and to what quality level the test will be performed.ece.wikipedia. what will be tested.wikipedia.org) SAP IMPLEMENTATION PROJECT PLAN A comprehensive project plan that contains all products that are delivered whilst performing an SAP implementation project (Anderson. 2003) STRESS TEST PLAN A test plan that is focused at determining the stability of a given system or entity.uk/) .hw. (www. (www. and attitudes as a result of the teaching of vocational or practical skills and knowledge that relates to specific useful skills (www.wikipedia. who will do the testing. in how much time the test will take place. a product or service. tailored according to the learning preferences and prior knowledge of the trainee. in order to observe the results.

TSO Technical Support Organization. Design and staff the key positions of the SAP Technical Design and initially staff Support Organization (TSO). These activities will be described with more detail and elaborated with examples in the rest of this entry. 2003) TSO CHART A chart that depicts the structure of the TSO. to determine where and when the costs are incurred within the context of the SAP solution stack. and how the solution enables success. (Anderson. Sizing and blueprinting Perform cost of ownershipanalysis Perform a COST OF OWNERSHIP ANALYSIS to determine how to get the best business solution for the least money i. the organization that is the SAP TSO charged with addressing. 2003) Activity table The following table provides a summary of all of the activities that form the SAP implementation process. value propositions. implementing and supporting the SAP solution. business benefit.e. to plan what to do with later downtime of the SAP system . (Anderson. to sketch a design that meets both business and financial requirements. The people that are committed to implementation and management of SAP. The focus should be on the company’s core business and how the SAP solution will better enable that core business to be successful. Identify high availability anddisaster recoveryrequirements Determine all HIGH AVAILABILITY and DISASTER RECOVERY REQUIREMENTS. designing. and success includes focusing on competitive pressures. Some of the guidance and key requirements for how to put together an ERP and SAP business case for ROI. Activity Sub-Activity Description Craft solution vision Project preparation Refine and communicate a SOLUTION VISION of the future-state of the SAP solution.

The objective is to maximize the collective efforts of all people involved in the change and minimize the risk of failure of implementing the changes related to the SAP implementation. which are to develop and begin installation/implementation of the SAP data center. like data center specialists. fill the positions that directly support the near-term objectives of the implementation. high availability specialist and network specialists and train the end-users to give all the required SAP knowledge and skills Setup SAP DATA CENTER Build a new SAP DATA CENTER facility or transform the current data center into a foundation capable of supporting the SAP SOLUTION STACK Perform installations Install the (My)SAP components and technological foundations like a web application server or enterprise portal. roles that relate to help desk work and other such support providing work. Address SAP systems and operations management Create a foundation for the SAP systems management and SAP computer operations. by creating a SAP OPERATIONS MANUAL and by evaluating .e.Engage SAPsolution stackvendors Select the best SAP hardware and software technology partners for all layers and components of the SAP SOLUTION STACK. Executetraining Train the various members of the SAP TSO. i. SAP functional AddressChange development Management Develop a planned approach to the changes in the organization. e. Round out support for SAP Identify and staff the remaining TSO roles.g. based on a side-by-side sizing comparison Staff TSO Staff the bulk of the TSO.

e. Perform systems and stress tests Final Preparation Prepare for cutover Plan. etc. These activities allow anorganization to put in on the right track towards implementation.e. Design and initially staff the SAP TSO The first major step of the project preparation phase is to design and initially staff an SAP technical support organization (TSO). by creating a CUTOVER PLAN that describes all cutover tasks that have to be performed before the actual go-live Go Live Turn on the SAP system for the end-users Implementation processes Project preparation The project preparation phase. Next to that. database administrators.g.SAP management applications. this is the time to make decisions about choosing for internal staff members or external consultants. Plan. the focus should be at staffing the key positions of the TSO. Craft solution vision . This can be programmers. The image at the right shows a typical TSO chart. the high-level project team and SAP professionals like the senior database administrator and the solution architect. by executing functional tests to ensure that business processes work. designing. implementing and supporting the SAP solution. depicted below. i. project management. integration tests to ensure that the organization’s business processes work together with other business processes and regression tests to prove that a specific set of data and processes yield consistent and repeatable results. Perform functional. script. to see if the expectations of the end users. focuses at two main activities. test teams. to make a setup for the TSO and to define a solution vision. will be met. integration and regression tests Test the SAP business processes. execute and monitor SAP STRESS TESTS. At this point. defined in service level agreements. which is the organization that is charged with addressing. prepare and execute the CUTOVER.

which are to develop and begin the . HP and IBM. This means selecting the best SAP hardware and software technology partners for all layers and components of the solution stack. before moving to SAP’s technology partners/SAP vendors. A simplified solution stack is depicted at the right. The phase is illustrated below. Perform cost of ownership analysis This phase starts with performing a total cost of ownership analysis (TCO analysis) to determine how to get the best business solution at the lowest costs. it can be wise just to do a so-called delta analysis. i. The most important factors that are of influence here are the estimated numbers of (concurrent) users and batch sizes. manageability and scalability of the SAP system. The image at the right depicts the essence of a delta analysis. hardware failures. Engage SAP solution stack vendors A true sizing process is to engage the SAP solution stack vendors. At this point the organization should staff the bulk of the TSO. which form the acquisition costs. a vision of the futurestate of the SAP solution. security. It should be noted that it is very important to calculate the cost of downtime. A wise thing to do is to involve SAP AG itself to let them create a sizing proposal stating the advised solution stack. The main focus within the vision should be on the company’s core business and how the SAP solution will better enable that core business to be successful. where only the differences between solutions (stacks) are identified and analyzed. showing the many layers for which software and hardware has to be acquired. Instead of performing a complete TCO analysis for various solution stack alternatives that would like to compare. the shortcomings of the current systems should be described and short but clear requirements should be provided regarding availability (uptime). Identify high availability and disaster recovery requirements The next step is identifying the high availability requirements and the more serious disaster recovery requirements. based on a side-by-side sizing comparison. so staffing the TSO is a vital job which can consume a lot of time. so that an organization has a good idea of its actual availability requirements. like Accenture. there should be taken a look at recurring costs like maintenance costs and downtime costs. the organization should already have staffed the most vital positions. This means to compare SAP solution stack options and alternatives and then determine what costs each part of the stack will bring and when these costs will be incurred.e. Parts of the stack are for example the hardware. fill the positions that directly support the nearterm objectives of the implementation. In a previous phase. operating system and database. This is to plan what to do with later downtime of the SAP system. Note the overlap with the OSI model.The second project preparation job is to define a so-called solution vision. Staff TSO The TSO (Technical Support Organisation) is the most important resource for an organization that is implementing SAP. which is the next step. i.e. application failures or power outages. caused by e. Next to that. where it is important to address both business and financial requirements (budgets). Sizing and blueprinting The next phase is often referred to as the sizing and blueprinting phase and forms the main chunk of the implementation process. Next to that.g.

installation/implementation of the SAP data center. The high availability and disaster recovery requirements which should have been defined earlier. Very few people within an organization are SAP experts or even have worked with SAP software. people need to learn to do business in a totally new way. 1 and 4 for each skill for each employee.e. There are many ways to find the right people within or outside the organization for all of the TSO positions and it depends on the organization how much time it wants to spend on staffing. i. It is therefore very important to train the end users but especially the SAP TSO: the people who design and implement the solution. To define how much SAP training every person needs. This means either building a new data center facility or transforming the current data center into a foundation capable of supporting the SAP solution stack. to a state ready for business process configuration.g. by defining the height of expertise with a number between e. to manage and plan training. a manager can identify who possesses what knowledge. Examples are: data center experts. security specialists and database administration experts. With this matrix. give a good idea of the required data center requirements to host the SAP software. prepare the database server and then start installing SAP software. Perform installations The following step is to install the required SAP software parts which are called components and technological foundations like a web application server or enterprise portals. Some examples of these positions:      SAP Network Specialists SAP Database Administrators SAP Security specialists Documentation specialists Et cetera All of these people need to acquire the required SAP knowledge and skills or even SAP certifications through training. a company can make use of a skillset matrix. Moreover. Many people within the TSO need all kinds of training. Training One of the most vital stages of the implementation process is training. Data center requirements can be a:     Physical requirement like power requirements Rack requirement Network infrastructure requirement or Requirement to the network server. The most important factor when designing the data center is availability. Setup SAP data center The next step is to set up the SAP data center. all of the technology layers and components (SAP software products) in a productive SAP installation. The most vital sub steps are to prepare your OS. network infrastructure experts. Here it is very important to use installation .

e. to these changes. it is most important to create a solid project team dedicated to change management and to communicate the solution vision and goals of this team. Examples of SAP components are:          R/3 Enterprise — Transaction Processing mySAP BI — Business Information Warehouse mySAP CRM — Customer Relationship Management mySAP KW — Knowledge Warehouse mySAP PLM — Product Lifecycle Management mySAP SCM — Supply Chain Management mySAP SEM — Strategic Enterprise Management mySAP SRM — Supplier Relationship Management mySAP HCM — Human Capital Management Round out support for SAP Before moving into the functional development phase. day-to-day and . roles that relate to helpdesk work and other such support providing work. Address change management The next challenge for an organization is all about change management / change control. Functional development The next phase is the functional development phase. by creating a SAP operations manual and by evaluating SAP management applications. The implementation of SAP software will most surely come with many changes and an organization can expect many natural reactions.e.g. The manual is a collection of current state system documentation. To fight this. which are published for each SAP component or technology solution by SAP AG. This phase is depicted below. which means to develop a planned approach to the changes the organization faces. i. where it is all about change management and testing.guides. The objective here is to maximize the collective efforts of all people involved in the change and to minimize the risk of failure of implementing the changes related to the SAP implementation. denial. the organization should identify and staff the remaining TSO roles. This team should be prepared to handle the many change issues that come from various sources like:      End-user requests Operations Data center team DBA group Systems management SAP systems and operations management Next thing is to create a foundation for the SAP systems management and SAP computer operations.

Final preparation Prepare for cutover The final phase before going live with SAP is often referred to as the cutover phase. This can be done with SAP’s standard application benchmarks. Go-live means to turn on the SAP system for the end-users and to obtain feedback on the solution and to monitor the solution. do not make any more changes to the SAP system Go live All of the previously described phases all lead towards this final moment: the go-live. More information on this topic:    Product Software Adoption: Big Bang Adoption Product Software Adoption: Parallel Adoption Product Software Adoption: Phased Adoption Critical success factors . Examples of cutover tasks are:  Review and update all systems-related operations procedures like backup policies and system monitoring    Assign ownership of SAP’s functional processes to individuals Let SAP AG do a GoingLive check. Agreements will be met.other regularly scheduled operations tasks. prepare and execute the cutover.e. various installation and operations checklists and howto process documents. a test plan should be created at first. The organization needs to plan.e. Before going live with a SAP system. Again. integration and regression testing Testing is very important before going live with any system. to get their blessing to go live with the system Lock down the system. to benchmark the organization’s configurations against configurations that have been tested by SAP’s hardware technology partners. it is vital to do many different kinds of testing. since there is often a large. Functional. i. Both requirements as well as quality parameters are to be tested. i. It is also the moment where product software adoption comes into play. complex infrastructure of hardware and software involved. which is the process of transitioning from one system to a new one. Important types of testing are:  Functional testing: to test using functional use cases. a set of conditions or variables under which a tester will determine if a certain business process works   Integration testing Regression testing All tests should be preceded by creating solid test plans. by creating a cutover plan that describes all cutover tasks that have to be performed before the actual go-live.

and also masters this area on SAP. In fact a blueprint is bringing the strategy of a company into execution through defining its processes across all business areas. Also this person knows SAP FI because has gained by the corresponding training. For this the SAP Consultant has the business skills of the business area he/she is working with. specially managers. and a manual error automated could be repeated infinitely. An SAP Consultant is a professional who has the skills to speak to the managers of a company and help them creating the blueprint. or the course on the SAP Partner Academy or similar. So it is very important to get the support from all the people that are involved in implementing SAP.. A blueprint should never be a merely mapping of IT systems. because there are many known projects that failed because of a lack of support and SAP knowledge. if this is SAP FI (accountancy) Consultant. 5) Test the SAP hardware and software rigorously by testing your business processes. .. and to ensure that the end-users are ready to use SAP before going live. 3) The Blueprint is the keystone used as the lighthouse who must guide the whole project. but more important the participation and commitment of all levels. SAP many times could save you time and money as it allows your organization to automate many processes. of the company. 2) SAP R/3 implementation is not an IT project. in fact is an Organization Project impacting all levels of a company. "This has always been done like this and the Consultant should replicate it on SAP" is the start of a big problem. 4) Always consider changing the way things have been done before implementing SAP. but with no business skills and so defining something that works. there are several things that are of great importance: 1) Choose the correct SAP Consultants to have the correct blueprint. processes must change across time. Just remember.wrongly. this person is an expert on accountancy and payments. For example. Benefits: As this person knows about Accountancy he or she will understand the needs of the business and will bring it into reality.In order to successfully implement SAP in an organization. gained through experience or by the corresponding studies at the University. 6) Design and execute a Change Management Program by communicating as early as needed all the information that end users should have to accept the new technology and designing and executing a training plan in order to reassure a knowledge base within the organizations. Many projects have failed because the focus was on having people with SAP knowledge.

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