Our techno-commercial proposal to CementCo for providing end to end services on (a) SAP consulting (b) IT infrastructure and facilities

planning and deployment (c) Maintenance services for SAP and IT infrastructure

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Table of Contents
EXECUTIVE SUMMARY ....................................................................................................................................... 4 OUR UNDERSTANDING OF CEMENTCO’S REQUIREMENTS.................................................................... 5 OUR UNDERSTANDING OF CEMENT INDUSTRY SCENARIO AND CHALLENGES ............................. 6 OUR UNDERSTANDING OF KEY BUSINESS DRIVERS AND IT LEVERS ............................................... 14 OUR PROPOSED TEAM FOR CEMENTCO..................................................................................................... 16 SUMMARY OF RELEVANT PROJECTS DELIVERED BY OUR TEAM MEMBERS ............................... 17 OUR PARTNERSHIP WITH SAP........................................................................................................................ 19 OUR VALUE PROPOSITION FOR PROVIDING END TO END SAP AND IT INFRASTRUCTURE IMPLEMENTATION AND MAINTENANCE SERVICES FOR CEMENTCO ............................................. 20 OUR RECOMMENDATIONS ON RIGHT ERP FOR CEMENTCO............................................................... 22 OUR RECOMMENDATIONS ON RIGHT ERP FOR CEMENTCO............................................................... 23 CEMENT INDUSTRY SPECIFIC REQUIREMENTS SUPPORTED BY SAP............................................... 24 HOW SAP SUPPORTS INTEGRATED PROCESS FLOW IN A CEMENT PLANT ................................................................ 25 EXAMPLE 1: COST AND PROFITABILITY MANAGEMENT ......................................................................................... 26 EXAMPLE 2: PRODUCTION PLANNING FOR CEMENT INDUSTRY .............................................................................. 31 EXAMPLE 3: SALES AND DISTRIBUTION FOR CEMENT INDUSTRY ........................................................................... 32 EXAMPLE 4: PURCHASE OF RAW MATERIALS FOR CEMENT INDUSTRY ................................................................... 33 SUCCESSFUL SAP IMPLEMENTATIONS IN CEMENT INDUSTRY.......................................................... 34 ADVANTAGES OF A GREEN FIELD IMPLEMENTATION.......................................................................... 36 “BEST PRACTICES” SOLUTION MAP OF SAP FOR CEMENT INDUSTRY ............................................ 37 OUR PROPOSAL FOR PHASE WISE IMPLEMENTATION OF SAP AT CEMENTCO............................ 38 OUR PROPOSED SCOPE FOR FIRST PHASE AT CEMENTCO .................................................................. 39 OUR PROPOSED IMPLEMENTATION METHOD: ASAP FOCUS .............................................................. 41 EVOLUTION OF ASAP FOCUS METHOD .................................................................................................................. 41 ASAP FOCUS METHOD – KEY STAGES AND DELIVERABLES ................................................................................... 46 HOW INNOVATIVE CONSULTANTS PLAN TO ADAPT ASAP FOCUS METHOD FOR CEMENTCO IMPLEMENTATION ... 47 OUR VALUE PROPOSITION TO CEMENTCO BY ADAPTING ASAP FOCUS METHOD .................................................. 47 OUR PROJECT GOVERNANCE MODEL......................................................................................................... 48 OUR PROPOSED RESPONSIBILITY MATRIX FOR PROJECT DELIVERABLES .................................. 50 OUR PROPOSED IT INFRASTRUCTURE MODEL AND FACILITIES SOLUTION FOR CEMENTCO52 Page No. 2 of 62

OUR DEPLOYMENT METHODOLOGY........................................................................................................... 53 OUR PROPOSED SCOPE FOR SAP MAINTENANCE SERVICES ............................................................... 55 OUR SAP MAINTENANCE SERVICES DELIVERY METHOD .................................................................... 56 EXCLUSIONS FROM MAINTENANCE SCOPE .............................................................................................. 57 COMMERCIAL PROPOSAL FOR SAP PROJECT (PHASE I)....................................................................... 59 COMMERCIAL PROPOSAL FOR ANNUAL MAINTENANCE SERVICES FOR SAP.............................. 60 PAYMENT TERMS................................................................................................................................................ 61 SAP LICENSES ....................................................................................................................................................... 61 SAP CONSULTING SERVICES .................................................................................................................................. 61 ANNUAL MAINTENANCE CONTRACT ..................................................................................................................... 61 BUDGETARY PROVISION FOR OTHER EXPENSES.................................................................................... 62

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The scope of the proposed first phase of implementation at CementCo includes project management including costing. This also makes the data migration process substantially less complex resulting in less business disruption during cut-over. with our partnership with SAP for enterprise solutions and a strong SAP team having 15 to 30 years experience in SAP. yy lakhs for second year and Rs. SAP’s freely available business process mapping tool Solution Composer will be of great use in this process. we recommend SAP All-in-One Enterprise Solution for CementCo. human recourse (payroll & timekeeping) and transportation management. xx lakhs. Indian statutory requirement. CementCo has an additional advantage of standardizing their business processes and leveraging best business practices of SAP from day one. controlling (cost centre accounting. We estimate an implementation time frame of 12 elapsed weeks for the above scope. accounts receivables & payables. We recommend a phase wise implementation of SAP enables your ERP to scale-up with time & growth of your business. cost and user friendliness. • • • • • • • • • • • Page No. market position. The business blueprint is signed off before contract signing and project kick-off making the implementation safe. a fast growing organization in the business of trading. We are also happy to provide annual maintenance services for 3 years for the SAP system for the scope as defined in first phase at an annual price of Rs xx lakhs for first year. we can add value to your strategic initiative of implementing SAP. asset accounting and period end reporting). deploy and maintain IT infrastructure for CementCo. add-on products. SAP has an impressive credential in Indian and global cement industry for both large and SMB segments. financial accounting (general ledger. cash management. industry vertical specialization. Rs. Based on our overall assessment of ERPs on different parameters like ability to address key business drivers. We believe that. Apart from SAP implementation and maintenance services. Since this is a proposed green field implementation. cement manufacturing and captive power generation considering implementing SAP. management reporting. We would be happy to submit a separate proposal on IT infrastructure design. deployment and maintenance after a detailed site study. CementCo will be buying xx user licenses of SAP All-in-One and additional license for payroll for a block of 500 employees. predictable and affordable for the client. 4 of 62 . scalability. internal orders). Our SAP implementation method is built on ASAP Focus method using preconfigured SAP system for cement industry. Our commercial quotation for SAP product license and consulting services for implementing the scope of work defined in first phase is Rs. zz lakhs for third year.Executive Summary • • • We understand that CementCo. we have capability and credential to design.

We will be happy to place our techno. Rs. cement manufacturing and captive power generation. is setting up a xx MTPA cement plant in Meghalaya with a captive power generation plant. one of the most successful trading business houses in India. Rs. xx crore per annum. xx crore. The trading business has a turn over of approx. 5 of 62 . Rs xx crore and that for power generation is approx. customer focus and profitability of the organization. With the above business drivers of rapid expansion through setting up of new plants. The investment for the cement plant is approx. It also includes our capabilities in facilities management services and IT infrastructure. Page No. CementCo. We are happy to place our techno-commercial proposal for the SAP ERP implementation and annual maintenance services for the same.commercial proposal for IT infrastructure and facilities management after we do a survey of your site. CementCo is considering a world-class integrated ERP like SAP which will help them to achieve significant business benefits.Our understanding of CementCo’s requirements We understand that CementCo is a fast growing organization in the business of trading.

Our understanding of cement industry scenario and challenges 1. Cement exports is poised for a steady 3.5% YOY growth Page No. Indian cement industry is poised for an unprecedented steady growth of 10% YOY 2. 6 of 62 .

the growth is largely fuelled by small and medium sector cement plants. In spite of consolidations.3. 7 of 62 . the industry as a whole is expected to be in a surplus situation putting pressures on price and profitability Page No. 4. Plants with less than 2 MTPA contribute to almost 50% of the installed base of the country. While WPI is likely to increase steadily.

5. Page No. While West Bengal is the 8th largest cement consuming state. 8 of 62 . it is not one of the highest cement producing states.

Price of cement is highest in Eastern India Page No. 9 of 62 . The Eastern region has the biggest deficit of cement (between production and domestic consumption) 7.6.

10 of 62 .8. the operating margins have remained same Page No. The capacity utilization in Eastern India is the lowest 9. Though the net margin has increased.

Energy. raw materials and freight costs remain the key cost components 11.10. The gap between the industry best practice and Indian cement plants are increasing with respect to efficiency Page No. 11 of 62 .

Most payments are on-account types and not linked to invoices. Accounting for damaged cement (bags) is necessary.• • • • • • • • • • • • • Cement requires around 80 separate and continuous operations. Cement prices in India are market driven and volatile. Page No. Transporter billing on retrospective basis is necessary. Environment. Consignments of both road and rail sometimes need to be reallocated. Even though cement companies try to create product differentiation. Prices vary from district to district and customers are invoiced at the specified rate for consignee’s location. health and safety is increasingly playing a key role in cement industry. Retrospective changes are routine. Complex system of discount and incentives. market share is highly dependent on price and hence cost control in production as well as logistics is very important. 12 of 62 . Incentives and associated debit/credit generation is complex. Delivery tracking is critical. Prices include taxes and freight and hence realisation calculation is complex.

Page No.The selection of right ERP for a cement plant is based on how the KPIs are getting addressed through the ERP solution. 13 of 62 .

14 of 62 . Page No.Our understanding of key business drivers and IT levers The IT levers of a cement industry need to align to strategic imperatives and ERP implementation priorities.

15 of 62 . Page No. which in turn helps you in achieving your profitability objectives. Right kind of IT levers helps you in deciding proper business levers.- All these IT levers mentioned in the above diagram are critical in selection for the right ERP for your company.

Most importantly. Besides. This is to ensure that we can deliver highest quality of SAP services to you through this highly experienced team. We have a strong team of consultants with deep SAP. Page No.Our proposed team for CementCo One of our strongest value propositions is the credential of our leadership team in SAP consulting business who have extensive and proven track record in large and complex SAP implementation specifically in Mill products industry sector. In case you choose us for delivering SAP services. industry and business process knowledge supporting our SAP leadership team. industry and business process knowledge supporting our SAP leadership team. they have also strong credentials in global SAP projects having managed various SAP assignments in India and abroad. Our team comes with deep industry and consulting background having served global consulting. we have a strong team of consultants with deep SAP. our leadership team not only provides overall direction to our growing SAP Practice but also is a team of hands-on SAP professionals who are actively involved in managing assignments for clients. 16 of 62 . IT and manufacturing companies in senior positions in the past. this team will be directly engaged in delivery of your very critical SAP initiative. Along with this senior leadership team.

Summary of relevant projects delivered by our team members Projects from mill products industry segment SAP Implementation at SteelCo Brief on the Project: SteelCo SAP implementation was one of the largest and most complex SAP implementations in steel industry in India. Following is an excerpt on the benefits. Roles of our team members in the project: Our team members were responsible for managing the project end-to-end and were senior members of the “Core Team” deployed by SteelCo for the implementation. The scope of the project involved the following business functions for SteelCo • • • • • • • • • Order generation and fulfillment Financial Accounting Purchasing and Materials Management Production Planning Advanced Planning and Optimization for Long Products Product Costing at Product-Quality-Section Level Profitability Analysis Plant Maintenance Quality Management The project involved around 2000 user licenses. Page No. SAP Implementation at FirstSteel Brief on the Project: FirstSteel was one of the first steel companies in India to implement SAP in its manufacturing facility at Birat Nagar. The implementation was done in 1997. 17 of 62 . The business benefits from the SAP implementation in SteelCo was published in press few months after go-live. The scope of the implementation included the following business processes • • • • • • Sales and Delivery process Financial Accounting Purchasing and Materials Management Production Planning Quality Management Plant Maintenance The project involved around 500 user licenses. as quoted by SteelCo executives. The project was executed in 2 phases – the first phase for order generation and fulfillment process and the second phase involved the other business processes around the manufacturing plant in Steel Nagar.

Our team members have delivered these projects in various capacities like project management. Projects from other industry segments Apart from Mill products industry sector. etc. • • • • • Sales and Delivery process Financial Accounting Purchasing and Materials Management Production Planning Plant Maintenance The project involved around 500 user licenses. realization.Roles of our team members in the project: Our team members played key role as consultant in production planning and quality management areas. Roles of our team members in the project: Our team members were involved as independent consultant employed by Sarda for quality review of the business blueprint and system testing. • • • • • Sales and Delivery process Financial Accounting Purchasing and Materials Management Production Planning Plant Maintenance Roles of our team members in the project: Our team members were involved as team lead in plant maintenance module having end to end responsibility of business blueprinting. global roll-out managers. subject matter experts. offshore delivery managers. team leaders. our team members have played key roles in major SAP implementations in other sectors in prestigious clients both in India and abroad. This involved around 100 users. SAP Implementation at Bhuvan Minerals Brief on the Project: Bhuvan Minerals implemented SAP in its Jaipur works in 2008. SAP Implementation at Shakti Tubes Brief on the Project: Shakti Tubes implemented SAP at Steel Nagar works in 2005-6. A sample list of clients in non steel sectors serviced by our team members are given below. Page No. 18 of 62 . training and post go-live hyper-care support. This involved around 400 users.

Our partnership with SAP Page No. 19 of 62 .

Our expertise in networking technology and products from all major vendors including Cisco. 12. Global SAP experience of our team members helps us to bring global expertise in our implementations. These facility services are available on-site at customer location or remotely through our NOC based remote monitoring system. Innovative Consultants has deep experience in consulting and implementation of new IT infrastructure and data centers. Deep experience of our team members in implementing complex SAP implementations in mill products industry helps us to provide high quality implementation services. fire alarm and control. Our innovative project delivery method built on ASAP Focus method together with our industry and business process expertise is geared towards a rapid high quality implementation. Our well defined project governance model and joint responsibility of deliverables provide an efficient mechanism of managing the project with clear and fast escalation path for issue resolution. 3. Deep experience in mill products industry of our team members provide the requisite industry expertise and best practices knowledge. 10. starting from load assessment & capacity planning. Our capabilities in associated services like infrastructure management & facility management help us to provide integrated end to end services in a cost effective way. 20 of 62 . 13. HVAC/precision a/c’s and UPS/gensets. network design. Our workshop model of business blueprinting ensures optimal usage of scarce time of your business managers. Nortel. network management. 2. Our services. 5. Innovative Consultants’ facilities management services cater to every operational requirement of an IT services and data centre. 6. HP and 3Com gives our clients the flexibility to choose the network environment of their choice. 7. Our partnership with SAP for enterprise solution All-in-One enable us to be a “one stop shop” for all your SAP services. Our templates for project documentation provide standardization and fast documentation of project deliverables. 14.Our value proposition for providing end to end SAP and IT infrastructure implementation and maintenance services for CementCo We believe that we can add value to your SAP implementation as well as IT infrastructure consulting and facilities management because of the following reasons 1. 9. have established us as a single point nodal agency for large projects. Lucent. mail/messaging systems and security & change management. security & threat migration. Our services cover desk top management. Page No. 8. 4. server management. 11. assessment of power system and load. Our extensive service offerings meet most of client’s requirements in SAP space.

Section A: SAP consulting services Page No. 21 of 62 .

Our recommendations on right ERP for CementCo
We have assessed ERP solutions for CementCo on the basis of the following criteria • Ability to address key business drivers: Many ERPs (or nERPs) claim to support the basic business functions like accounting, costing, sales and distribution, materials management, etc. – But the devil lies in the details! – One has to deep dive into the features and assess whether they achieve to address the real business drivers of the industry. Industry vertical specialization: The ERP product must cater to the unique requirements of the cement industry – Many ERPs (nERPs) have broad category of industry specialization e.g. process industry, manufacturing industry, mill products industry solution, etc. – But cement industry needs deeper specialization supporting specifically building materials industry. Indian statutory requirements: The ERP product need to support Indian statutory requirements like excise, sales tax, various registers, etc Scalability: The ERP product should be able to support your expansion and diversification plans without having to throw away the ERP product and go for a new product in near future. Market position of the ERP product: This is important from the following perspectives – Investment protection – Proven capabilities in relevant industry segment – Consistent product strategy – State of the art technology and timely upgrade – Availability of consulting services and support Add-on products: The ERP should provide add-on products like business process management tools, best practice scenarios, pre-configured clients, templates, documents and research paper for accelerated implementation. Cost: The ERP deployment and maintenance need to be cost effective. User Friendliness: The ERP product should be user friendly for easy training and adaptation

• • •

• •

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Our recommendations on right ERP for CementCo
Category Fitment to address business drivers Subcategory Base functionalities in accounting, sales and distribution, materials management, production planning Key business drivers like multi-level product costing, profitability analysis, integrated plant maintenance, project systems and quality management, etc Manufacturing industry Process Industry Mill products industry Building materials industry (including cement) Production, sales and procurement processes addressing bulk, packaged and serviced cement business processes Indian statutory requirements related to excise, sales tax, etc. Whether scalable to address advanced requirements like CRM, SRM, Environment, Health and Safety, Internal Audit, Compliance, etc Current position in ERP market Proven capabilities in the industry segment Consistent product strategy State of art technology and timely upgrade Availability of consulting services and support Add-on products Best practices repository Pre-configured client Accelerators, templates and documents Business Information system Business Process Management tool Cost License cost Implementation cost through ASAP Focus method** Maintenance cost User Friendliness User friendliness SAP Enterprise Solution SAP Business One++ Other Known ERPs*

Industry specific solution

Indian statutory requirements Scalability

Market Positioning

* ERPs who position themselves comparable to SAP Enterprise solutions ++ Including other ERPs positioning themselves with SAP’s Business One solution ** With our deep industry and SAP experienced team and SAP’s ASAP Focus method, we provide an accelerated implementation path which helps to reduce the implementation costs significantly.

On overall assessment, we recommend SAP All-in-One Enterprise Solution for CementCo.

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Cement industry specific requirements supported by SAP

Solution Composer, a Business Process Management tool provided by SAP, has a special section on Building Materials with built-in best practices for building materials industry including cement. The best practices scenarios are available pre-configured.

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25 of 62 . Page No.How SAP supports integrated process flow in a cement plant SAP has the capability to support the integrated business process flow in a cement plant.

26 of 62 .Example 1: Cost and profitability management Cost is one of the key business drivers of cement industry. The subsequent screenshots show how • • • • Estimating standard cost estimate including itemization Cost component-wise fixed and variable cost estimates Activity-wise cost estimate Actual costing including multi-level price estimates Profitability Analysis • Page No. demonstrates how SAP assists in cost management. taken out of one of the pre-configured scenario documents in SAP. This example.

Material Cost Estimate with Quantity Structure Cost Components showing Fixed & Variable Costs Page No. 27 of 62 .

Page No.Costing – full itemization SAP’s extensive feature on costing allows you to estimate the standard cost. 28 of 62 . capture the actual cost and measure variances at the lowest level.

Page No. 29 of 62 .

30 of 62 .SAP provides complete visibility at multi-levels on actual cost and profitability thereby assisting in controlling the cost of production and sale. Page No.

Page No.Example 2: Production planning for cement industry The preconfigured production planning scenarios for building materials industry specifically caters to both bulk and packaged production planning requirements of cement industry. 31 of 62 .

etc Page No. rush orders. transportation management. 32 of 62 .Example 3: Sales and distribution for cement industry The preconfigured sales and distribution scenarios for building materials industry specifically caters to both bulk and packaged requirements of cement industry. It includes features like credit management.

Example 4: Purchase of raw materials for cement industry • • The preconfigured purchasing and inventory management scenarios for building materials industry specifically caters to bulk and packaged raw materials procurement of cement industry. etc Page No. invoice verification. It includes features like incoming quality control. 33 of 62 .

34 of 62 .Successful SAP implementations in cement industry SAP has an impressive credential in cement industry in India and globally Page No.

Page No. 35 of 62 .

Examples of some companies who have reaped the benefit of a green field SAP implementation – Haldia Petrochemicals – Arvind Mills – SteelCo CRM plant Page No. complexity as well as the cost. This phase out the effort. Organizational change management is easy.Advantages of a green field implementation Greenfield stage of any company is the right time to implement SAP • • • • • • • • You have the opportunity to standardize your business processes from day one. You can manage your project phase through SAP. 36 of 62 . You have the opportunity to leverage best industry practices from day one. Data migration is absent – this reduces the implementation time upto 20 – 30% compared to brown field projects. There is no disruption in business during cut-over. You can phase your implementations according to your project commencement timelines.

Page No. plan. and implement a coherent.“Best Practices” Solution Map of SAP for Cement Industry • • SAP solution map for Cement industry is a multilevel blueprint of processes to help you understand and implement these processes effectively. This tool helps you visualize. and comprehensive information technology solution. integrated. 37 of 62 .

production to sales & distribution. This unique characteristic of SAP enables your ERP to scale-up with time and growing volume & size of your business. back office. from project execution. and customer relationships at macro assessment level. This phase wise approach gives you enterprise-wide integrated process. resulting in multiplicity of business benefits. Page No. 38 of 62 .Our proposal for phase wise implementation of SAP at CementCo • • • SAP fits your requirements to manage supply chain.

39 of 62 .Our proposed scope for first phase at CementCo Page No.

QM Plant MainteMaintenance Client/Server PS Client/Server PM ABAP/4 WF ABAP/4 Workflow Human Resources Industry Solutions Project System IS SAP’s honeycomb structure depicting the various modules Page No.• • Based on the above business scope. 40 of 62 . SD Financial Accounting FI MM Product Planning PP R/3 R/3 HR CO Controlling TR Treasury Quality Mgmt. we propose to implement the following SAP modules and sub-modules in first phase – Project Management including Project Costing – Financial Accounting • General Ledger • Accounts Payables • Accounts Receivables • Cash Management • Asset Accounting • Period end reporting – Controlling • Cost center accounting • Internal Orders – Procurement and Inventory Management • Capital goods procurement • Sundry purchases – Management Reporting – Human Recourse Management – Payroll and Timekeeping – Logistics Execution-Transportation Management We propose to implement the following geographical scope – Head Office of CementCo at … – Project site at … Sales & Distribution Materials Mgmt.

Our Proposed Implementation Method: ASAP Focus Evolution of ASAP Focus method “Four Toos” myths about SAP Page No. 41 of 62 .

42 of 62 .SAP All-in-One – breaking the myths SAP All-in-One – value proposition Page No.

Defined price. Automobiles.g. Cement.g. Consumer Products. production) Processes specific to Industry Sectors (e. Mill Products. Stone. etc ) Processes specific to Industry Micro-vertical (e. Ltd. ) In some countries the micro-verticals are standardised e. Building Materials. Primary Metals. CementCo Pvt. glass and concrete. etc ) Processes specific to Your company Specific (e. Flat Glass.g. Affordable Generic Generic Business Processes (e.g. Oil and Gas. implementation Business expertise ASAP Focus – Safe. sales. Manufacturing. Financial Services.Traditional Deployment Customerspecific requirements + SAP Best Practices + SAP Consulting Packaged Solution Roadmap & Accelerators Rapid installation Fixed scope. etc ) Processes specific to Industry Mini-vertical (e.g. clay. etc) Processes specific to Industry Vertical (e. 43 of 62 . Communication.g.g. Accounting. etc) Processes specific to Industry Groups (e. logistics. Concrete. Business processes – generic to specific (example – cement industry processes) Page No. Petroleum and coal products. US has around 1350 micro-verticals. Predictable..g. Forest and Paper.

• Consultants from implementation partners will configure and customise the rest during the implementation phase. still there was significant amount of configuration and/or customisation to be done by consultants during implementation. • This reduced the degree of configuration/ customisation. • PREDICTABLE: the testing method was not rigorous as it dependent on the consultants’ expertise from project to project. Configured/ customised by implementation partners on project to project basis Traditional SAP implementations (adapted in the 1990s) SAP standard • In 2000 SAP came up with industry solutions e. • The process was still NOT • SAFE • PREDICTABLE • AFFORDABLE SAP Industry solutions Configured/ customised by implementation partners on project to project basis SAP implementations with ASAP method (adapted in the 2000s) Page No. IS-Banking. • However. • The process was NOT • SAFE: the configuration was done for the specific project and was not proven. etc.g. IS-Auto. IS-Oil.SAP standard • SAP standard product was available only at generic business process level. • AFFORDABLE: the implementation timeframe and number of consultants as well as users required were high leading to high cost. 44 of 62 .

such cases should be few and far between • This process makes SAP implementation Pre-configured microverticals by SAP/ Partner On-site configuration/ customisation • SAFE: The configuration is proven in other microindustries in the same sub-vertical and/or microvertical • PREDICTABLE: The configuration is tested chances rigorously at SAP’s lab in Walldorf and chances of failure is minimal • AFFORDABLE: The cost of implementation as well as the timeframe is significantly lower as there is very little configuration to be done on-site for the project SAP Industry solutions SAP pre-configured sub-verticals SAP implementations with ASAP Focus method (Introduced in 2007 globally and 2008 in India) Page No. 45 of 62 .• ASAP Focus method and pre-configured industry subtremendously verticals has reduced on-site configuration tremendously SAP standard • SAP Partners like Innovative Consultants. with deep industry knowledge. develops pre-configured microverticals (if not provided by SAP) • Only process specific to your company (beyond the micro-vertical your company belongs to) need to be configured on-site practices • With extensive research from SAP and best practices of sub-verticals global companies belonging to the same sub-verticals and micro verticals built-in and India specific statutory requirements also built-in.

46 of 62 .ASAP Focus method – key stages and deliverables SAP ASAP Focus Methodology Evaluation Roadmap Evaluation Present solution/ implementation approach Validate customer fit Set expectations with customer Create Proposal Document Review and submit proposal Implementation Roadmap Pre-Project Activities Project Preparation Plan project Build project charter Set up Implementation standards and procedures Execute kick-off System setup (DEV&QA) Production hardware installation Quality check: Project preparation Delta Requirements Present prototype system Assess data complexity Identify Delta requirements Design Delta solution Get customer to sign off blueprint with Delta Finalize Statement of work Realization Validate organizational configuration Validate business processes Realize delta requirements Conduct organizational change management Planning for production support and cutover Run Integration & acceptance test Plan end user training Internal review Final Preparation Refine cutover plans Establish long term support plan Train end users Create & staff help desk System management Execute cutover Quality check: Final preparation Start of production Go Live & Support Monitor live environment Close open issues Start long term support plan Quality check: Go Live Project closing Review data requirements and data cleansing plan Train project team Prepare Organizational Change management Set up project team environment Decide system landscape and Install hardware Order SAP BP Start Customer qualified Contract signature Project kick-off GoLive time Key difference between ASAP and ASAP Focus method: Business Blueprint sign-off happens before contract signing Page No.

Page No. 6. Innovative Consultants will request CementCo to award the contract and make the first payment. • We offer an AFFORDABLE solution o o o o There is no financial investment or commitment of funds from CementCo during the business blueprint stage. Innovative consultants will engage CementCo’s key users (core team members) in workshops and demonstrate the pre-configured processes and identify gaps. The commitment of fund happens only after the acceptance of business blueprint. 3. 4. The reduction is project implementation time reduces the implementation cost significantly (can be upto 50% compared to a traditional implementation) The time commitment required from the core users during implementation is significantly less thereby indirectly saving precious cost and time of key managers of CementCo. Our value proposition to CementCo by adapting ASAP Focus method • We offer a SAFE implementation method o The pre-configured business processes for cement industry provided by SAP is tried and tested in multiple cement industries in mid-size segment and is expected to perform without any bugs and problems which are usually discovered post go-live. 2. Upon sign-off of the business blueprint. 47 of 62 . Innovative Consultants will engage CementCo’s key users for second workshop to validate and sign-off the prototyped processes. The whole process is expected to take one elapsed month and is expected to engage 10 to 12 core users of CementCo. 5. Innovative consultants will import pre-configured system for cement industry provided by SAP best practices in SAP system installed at Innovative Consultants premises. Experienced consultants of Innovative Consultants will resolve the gaps through additional configuration and customization. Demonstration of the prototype before the contract sign-off ensures acceptance of the configured processes by the users before embarking on the SAP project. The post go-live pains are significantly less and user adaption is higher. o o • We offer a PREDICTABLE implementation method o o o Extensive use of pre-configured client from SAP tested thoroughly at SAP Labs reduces the “surprise elements” significantly. The experienced consultants from Innovative Consultants with deep experience in mill products industry configure the minor gaps and demonstrate to the users before the contract sign-off. The expected time involvement of each core user is expected to be 4 to 5 working days.How Innovative Consultants plan to adapt ASAP Focus method for CementCo implementation 1. This makes the project timeline predictable and go live issues minimal.

Our Project Governance Model Our project governance model is based on the following principles • • • • • Joint project team between CementCo and Innovative Consultants Shared project deliverable responsibility between CementCo and Innovative Consultants Joint high level steering committee between CementCo and Innovative Consultants Well defined project status reporting based on pre-defined template Easy escalation path for fast decision making and resolution of issues Project Sponsor Sr. Execs from CementCo Director or equivalent from Innovative Consultants Jt. Innovative Consultants will be represented in the Steering Committee by one of the Directors or equivalent. We recommend that the overall Project Sponsor be from CementCo. approval to any major change of scope and approval of completion of key milestones of the project. Steering Committee Project Lead Normal Communication Channels Project Lead Business Process Owners Escalation Route Team Members CementCo SAP Project Team Innovative Consultants SAP Project Team Roles and Responsibilities of the Project Team Steering Committee: The Steering committee is the highest decision making body of the project. guidance on efficient management of the project. 48 of 62 . We recommend that CementCo appoints relevant senior executives like Directors/ VPs in the Steering Committee. Hence the steering committee needs to be represented by senior executives from CementCo and Innovative Consultants. approval to any major change of business process. Page No. resolution of any issues escalated to the steering committee by the project team. The Steering Committee provides oversight to project.

purchasing. Team leaders will work closely with the business process owners from CementCo. They need to be full-time dedicated for the project duration. production. etc. however. The Project Lead from CementCo should also be a person with adequate influence within the organization to drive this massive organizational transformation exercise. Hence they should be persons with adequate seniority and having relevant knowledge and experience. Innovative Consultants always attempts to assign a Project Leader who has deep experience in SAP as well as in the industry relevant for the client. validating the to-be processes and owning and communicating the changed processes for CementCo. assisting in post implementation hyper-care support. but their full-time involvement during the full length of the project will not be required. be responsible for the deliverables in their respective areas. the Project Leader would normally be a Principal Consultant or equivalent. Business Process Owners (CementCo): Business Process Owners are recommended to be managers/ senior managers from various departments (sales. They will be working under the guidance of their respective team leads. Knowing that the time of these senior managers is scarce. They will be responsible for assisting the team leads in business blueprinting. etc) from CementCo. Hence they will be required to participate in the targeted workshops during business blueprinting and they will need to provide overall guidance to the team members. The business process owners are responsible for communicating the business requirements. For CementCo. Some of the key members whose profiles have been shared and/or similar members will be assigned the Team Leader roles.Project Leader (CementCo and Innovative Consultants): Project Leaders from CementCo and Innovative Consultants have the overall responsibility of delivering the project end-to-end. They would. Project Leader will be assigned from one of the members whose pen profiles have been shared earlier. They will work under the guidance of their respective business process owners assisting them in providing inputs on business requirements. end user acceptance testing. The ABAP and BASIS members of the team will have relevant IT experience in programming and system administration. materials. From Innovative Consultants. our workshop model ensures that their time is effectively used. documenting the to-be process design. will be of relevant industry background and will have relevant SAP knowledge in the respective areas. production. configuration and customization of system as per the blueprint. Team leaders deployed by Innovative Consultants will have deep understanding of business process in their respective area. 49 of 62 . unit testing and integration testing. Team Leaders (Innovative Consultants): Team Leaders from Innovative Consultants will have responsibility for designing and delivering SAP system one business area (sales. Team Members (CementCo and Innovative Consultants): Team members of Innovative Consultants will be SAP consultants with adequate business process and industry knowledge. Page No. etc) jointly with the corresponding business process owners of CementCo. end user training through train-the-trainer programs. The team members from CementCo are recommended to be junior executives/ engineers/ supervisors. purchasing. assisting CementCo’s team members in data migration and training.

depending on suitability and appropriateness) supported by secondary owner. 50 of 62 . Our recommended responsibility breakup for the key deliverables of the project is as follows: Page No. Hence all project deliverables need to be jointly owned by CementCo and Innovative Consultants teams. However. we recommend that for each deliverable there is a primary owner (who can be either from CementCo or Innovative Consultants. to ensure that there is accountability in the whole process.Our proposed responsibility matrix for project deliverables We believe a joint responsibility and close teamwork between CementCo and Innovative Consultants members is a key to success of the project.

51 of 62 .Section B: Our capability in IT infrastructure and facilities planning and deployment Page No.

52 of 62 . quality/testing and production. A virtual private network (VPN) is a network to provide remote offices with secure access to their organization’s network.Our proposed IT infrastructure model and facilities solution for CementCo Routers VPN Users Server Room Users Head Office Site Office Our proposed IT infrastructure model for CementCo - For the proposed SAP implementation at CementCo. we propose you to create a datacenter. The servers at your site office at Site Office and corporate office at ABC will be connected through VPN. This LAN connection helps you in sharing the data and information within your office. you will require three servers for development. the servers would be connected with the PCs through routers. Page No. Based on the number of user licenses. For the smooth running of your day to day activity and security of data.

This hardware includes servers. 8 GB RAM. • Hardware Sizing. rodent control.This activity includes the understanding the specifications of hardware required for your SAP implementation. the deployment of network will be done. 3 x 300 GB internal HDD for data in RAID 5 configuration – price would be approximately 5 lakhs each c) For Quality and Development / Sandpit servers. 1 as Production server and 1 as hot standby) 2 x Quad-core Intel Xeon processors. wires and cables for LAN & VPN.The network designing for SAP.x Quad-core Intel Xeon processor. in order to minimize any chance of disruption.Soon after the network designing. 8 GB RAM. • Network designing for SAP.Our deployment methodology Based on our proposed IT infrastructure and facilities solution. switches etc. 2 x 145 GB mirrored HDD for OS. Operating System. So it is necessary to provide a reliable infrastructure for IT operation. 8 GB RAM.After the purchase of all required hardware. Our services include. Civil & Architecture of the data centre Air-conditioning of the data centre UPS option creation Electrical wiring designing Fire detection & alarm system Fire suppression system Pest control. 2 x 145 GB mirrored HDD for OS. One of their main concerns is business continuity. Page No. 53 of 62 . so we are giving you the specifications for servers only. • Network Deployment for SAP. o Servers– you may choose either Option a or b for production server a) Intel based Servers running Windows 2003 or higher Enterprise Edition (for Production Server) High availability clustered using 2 x Quad-core Intel Xeon processors. water leak detection Building management system Networking Our deployment methodology enables our customers to get the benefit through less disruption in their day to day work and timely delivery. we will install them at client’s site. routers. As the project office is yet to be constructed. • VPN Connectivity. we have segregated our activities in the following manner. clustering kit. both for the site at Meghalaya and ABC can be determined after detailed survey of the proposed sites. 3 x 145 GB HDD in RAID 5 configuration – price would be approximately 3 lakhs each • Hardware Installation. both of your offices will be connected through VPN (Virtual Private Network).IT operations are a crucial aspect of most organizational operations. • Facilities management services for your datacenter/server room.After the deployment of required network at your ABC office and site office at Meghalaya. 3 x 300 GB external HDD for data in RAID 5 configuration – price would be approximately 15 lakhs b) Intel based Servers running Windows 2003 or higher Standard Edition (2 servers proposed.

Section C: Our maintenance services for SAP Page No. 54 of 62 .

Our proposed scope for SAP maintenance services Maintenance services of SAP involves a set of components L1 Help Desk (logging calls. etc) We will be happy to provide all the three levels of support to CementCo. Page No. assisting in correcting data errors. basic user administration) L2 Help Desk (solving “how to” questions. 55 of 62 . analysing whether the issue is a product or config/ customisation problem) Fixing Config Issues L3 Support Fixing Customi sation Issues Minor Enhance ments Product Bug Fixing (source code corrections. We have the support of SAP’s global team for any product related issues. segregating SAP issues and routing. user administration. identification of patches) System Maintenance (BASIS) (performance tuning. patch application.

Severity Level 1 2 3 4 Response Time 30 mins 4 hrs 1 working day 3 working days 8 hrs 1 working day 2 working day None Resolution Time 48 hrs 3 working days 10 working days As per estimate and mutually agreed schedule • We propose to follow the following definition for the severity levels of the issues Severity Level Definition 1 Disruption of entire business resulting from a total outage of the SAP system. We have the provision of having our consultants sign appropriate non disclosure agreement to ensure that your confidential data is protected. After 1 month of hyper-care support. payroll processing at month-end has stopped. we will continue to support the users of CementCo through an on-site/ off-site model. This will be clubbed with the on-site support for infrastructure. Examples . The services of the team of consultants are likely to be shared with other companies. This will also include minor enhancements. The Level 2 and 3 support services will be provided from our offshore delivery center situated at … The Level 2 and 3 support services will be provided by a team of SAP consultants located at our XYZ office. In case of Severity 1 and 2 calls. etc 3 Disruption of processes leading to minor inconvenience but business can be managed through workarounds or manual processes temporarily. one team will be available in your location based on requirement. 56 of 62 . Examples .(a) a new customised report (b) adding or modifying a G/L account © changing the layout of purchase order Page No.(a) goods receipt in stores have stopped (2) invoice cannot be printed (3) purchase documents cannot be printed (4) production orders not getting recorded 4 No disruption in business but the fix is essential for improvement in business process. Examples .Total outage of SAP production system 2 Disruption of key business functions which might have significant financial impact. We propose to provide the SAP maintenance services on the basis of the following service level objectives. Examples . We will have one or two support personnel on-site to cater to the Level 1 support requirements of the users.despatch of goods has stopped.Our SAP maintenance services delivery method • • • • • • • • • Our maintenance services will include 1 month of hyper-care support at project site and user locations immediately after go-live.

Implementation of additional modules/ sub-modules apart from those enumerated in the current scope of work. Roll-out of SAP in additional plants. Additional reports subsequent to those identified during the project implementation. warehouses and sales offices apart from those identified in the current scope of work. Services related to upgrade of SAP from the current version which is mySAP ERP 2005 on ECC 6. • • • • • Any change of system configuration due to any change of business rules of CementCo subsequent to business blueprint sign-off.0 Page No. Innovative Consultants is however happy to engage with CementCo for these services through a separate contract.Exclusions from maintenance scope The following services will be excluded from the current maintenance scope of work. should CementCo feel any need of the same. 57 of 62 .

58 of 62 .Section D: Commercial proposal Page No.

This price assumes xx user licenses of SAP and licenses for using payroll functionality for a block of 500 employees. as applicable. Travel and living costs of consultants traveling for project work outside ABC 2. Page No. Service taxes and VAT on the price.Commercial proposal for SAP project (Phase I) Our proposed price and fees for SAP product license. consulting fees for implementation is as below. 59 of 62 . The above costs will be charged on actual basis. It also includes the last time connectivity hardware costs. These charges exclude the following 1.

• • • • Page No. network and sitting arrangement of support personnel of Innovative Consultants located at CementCo’s premises o Last mile connectivity between CementCo’s office at ABC to Innovative Consultants’ office at ABC This price assumes the following o Project start date of not later than 2 months after license buy o Project duration of approximately 3 months This price assumes the following o YOY productivity improvement of 10% o YOY system stabilization factor of 10% o YOY cost escalation of 10% The AMC is effective from the date of sale of SAP licenses. o On-site hyper-care supports for 1 month post go live of SAP. o Telephone and other communication costs with the users of CementCo for consultants of Innovative Consultants located at Innovative Consultants’ office.Commercial proposal for annual maintenance services for SAP • • We propose a consolidated AMC for SAP This price includes o Infrastructure cost of computers. related software required for support costs of the consultants stationed at Innovative Consultants’ premises in XYZ. This price excludes o Services taxes as applicable o Computers. network. 60 of 62 .

0% on business blueprint sign-off 30% advance on contract signing and project kick-off for mobilization of resources 40% on completion of realization phase 20% on go live 10% on completion of 1 month of hyper-care support Annual Maintenance Contract 1. The remaining amount for the particular year’s AMC is to be paid in equal quarterly installments at the beginning of the quarter. 4. We would request a payment against the invoice not later than 30 days from the raising of the invoice. 3. SAP licenses 1. 61 of 62 .Payment terms We propose the following payment terms for the various categories products and services. • • We will raise the relevant invoices within 15 days of the completion of the concerned milestone. Page No. 20% of the license sale value on order booking 2. Rs xx lakhs is to be paid one-time every year at the beginning of each AMC year. 3. 80% of the license sale price on delivery of software SAP consulting services 1. For the first year. the payment for Item No 2 will be due immediately after go live. 2. 2. 5.

go live and hyper-care stage will be billed on actual. irrespective of the project. We recommend to budget for the following capex. Cost Heads Database license (Oracle) SAP Server Equipment for last mile connectivity Total Budget (Rs. CementCo will be directly dealing with relevant vendors and/or service providers for obtaining these products and services and the actual price will depend on the terms and conditions between the vendor/service provider and CementCo.Budgetary provision for other expenses We recommend CementCo to provision for the following expenditure for deployment of SAP. This excludes cost of PCs. xx Lakhs/annum for annual rental for 256 kbps connection (last mile connectivity) from our office at … to your office at . which is assumed to be existing or being set up.. We recommend you to make a provision of Rs. Page No. 62 of 62 . The estimated cost of the same is Rs xx lakhs. LAN and general software like MS Office. This estimate is provided purely as assistance to CementCo to make the budgetary provisions. Lakhs) Travel expenses of consultants to the project site during realization.. E-mail.

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