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SAP Presentation for Projects

Venkat SRP

29/02/2008

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Agenda

Todays Business & IT Challenges Why implement SAP? Critical Success Factors for a SAP Implementation Example SAP Method/ Risk Management

Typical SAP Implementation Timeline

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Todays Business & IT Challenges


In the recovering economy, companies are once again searching for growth of revenue and profit Companies need to respond faster to market changes and adapt quickly to stay ahead of competitors At the same time, there is intense pressure to reduce total IT costs which limits development and implementation initiatives Companies need to reallocate money within their organizations in order to create sustainable value and innovation Organizations are re-thinking their current strategies and developing new business models to reflect the changed market conditions

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Economic Trends: Enterprises are responding to global economic pressures through actions to control costs, achieve efficiencies and find pockets of global growth
Globalisation, as enterprises expand into new markets to boost sales and secure low cost production facilities Consolidation, as enterprises focus on achieving scale economies and creating complimentary brand portfolios Specialisation, as enterprises divest non-core operations to increase cost efficiencies across the enterprise and improve shrinking margins

Increased Diligence, as enterprises bracing for years of wealth global economies exercise better cost management and more rigorous focus on return on invested capital

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Strategic Trends: Enterprises demand better alignment of their business and technology strategies
E-business maturation, forcing enterprises to migrate existing legacy applications to the web Best Business Process Practice, as enterprises attempt to improve business and eliminate applications based on sub-optimal business assumptions Business Application Standardisation,, as enterprises try and reduce application customisation Business Application Interoperability,, as enterprises promote enterprise wide integration and look to participate in net-markets, next generation business models and multi enterprise networks Integrated Global Resource Utilisation, as enterprises realise the cost advantage of using lower cost labour resources to achieve cost efficiency goals

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Buying Environment Trends: Enterprises are seeing dramatic shifts in how, why and by whom IT investments are made
Increased Receptivity Towards Outsourcing, as enterprises differentiate on the basis of products, services and knowledge rather than business processes and I.T. support

Increased receptivity of Application Management, as enterprises become comfortable with and often demand multi-vendor and multi- country resources for AD/M
Increasing emphasis on ROI, as enterprises are demanding more business value and productivity improvement from expensive technology investments Continued Demand for skilled I.T. Resources, especially for specialised applications core to industry competitiveness

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Why implement SAP?


Flexible: Real-time:
Updates information immediately in the system as the data is saved Provides improved access to real-time, integrated information Because of its integration Configuration of the SAP modules to suit Client business needs

Audit Trail:
All transactions can be tracked to the person entering or changing data by their SAP user ID

Online:
Display information and reports as you need them

Integrated:
Provides an enterprise with a common business language and the ability to develop Client wide processes and data structures Increases the coordination of departments Client business workflow orientation versus stand-alone applications Real-time ripple effect of data through all Client business functions Seamless integration of data between Client business functions (e.g., automatic financial postings based on transactional processing in all modules) One-time data entry ensuring data consistency and reliability
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Critical Success Factors for a SAP Implementation


Executive Buy-in and Go-ahead Identified Business Problem and its solution via flexible IT infrastructure Robust, flexible solution Reuse Sufficient input and support (cooperation) from the business Project Governance defined (for project / foundation for enterprise) People and rules, organization and functions are clear Project Roadmap is defined Description of all essential work items Timeline and assurance for planned projects on the road Milestones and measurements accepted by everybody
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Example SAP Method

Stage I

Stage II
Program Management Business

Evaluation

Project Preparation

Business Blueprint

Realization

Final Preparation

Go Live and Support

Sustain

Organization Application Architecture Operations

Risks: Development of risk conscious culture for the project


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Example SAP Method


This example method was developed to address the six key focus areas of a complete life-cycle implementation.
Key Aspects of the method
Supports the easy integration of methods when more than one is applicable to a project and allows for tailoring to suit the needs of the industry or client Aligns with SAPs tools and methods but extends beyond method and other vendorspecific methods Designed to support complex programs of work with multiple concurrent projects Integrates key project work streams Provides the roadmap and description of work which must be accomplished tailored to specific industry value chain Supports an integrated team concept and serves as the project documentation repository
Program Management Business Evaluation Project Preparation Business Blueprint Realization Final Preparation Go Live and Support Organization Sustain Application Architecture Operations

Domains 10

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Typical Client SAP Method


Specific to SAP AGs AcceleratedSAP (ASAP) method, the typical Client SAP method has been mapped across the phases of an SAP implementation and enhanced with the addition of two phases Evaluation and Sustain This SAP method complies with the key concepts of ASAP.
Typical Client SAP Project Lifecycle
Program Management
Project Preparation Realization Final Preparation

Evaluation

Business Sustain Go Live and Support Organization Application Architecture Operations

Business Blueprint SAP AG


TM

for AcceleratedSAP

Approach Philosophy
Typical Client SAP is designed to be scalable and encourage the iterative definition and refinement of deliverables throughout the project lifecycle. The project lifecycle is composed of activities that are organized by phase and domain views. These activities represent specific activities and deliverables (outputs). Typical Client SAP method enhances SAPs standard AcceleratedSAP method by including the Evaluation and Sustain Phases, and by additional material included within the other phases.

Project Phases Phase 0 - Evaluation Phase 1 - Project Preparation Phase 2 - Business Blueprint Phase 3 - Realization Phase 4 - Final Preparation Phase 5 - Go Live and Support Phase 6 - Sustain 11

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Example SAP Method Phase 0 Evaluation


Objective:
Project Preparation Final Preparation Realization Evaluation
Program Management

Develop and / or confirm project scope, align scope with company strategy, and build stakeholder support

Go Live and Support

Business Blueprint

Sustain

Business Organization Application Architecture Operations

Activities:
Understand Customer Strategy and Market Position. Understand Strategic Opportunities Understand the Clients Readiness for Change Conduct Senior Executive Level Workshop Covering: Project Strategies Confirmation Project Scope Organization Readiness Demonstration of SAP BW Capabilities and Impacts Build planning for the SAP BW project Establish Project Organization Assign resources

Sample Key Deliverables/ Results:


Strategy, Market Position Analysis Document Prioritized List of Strategic Opportunities Preliminary Change Readiness Assessment Completion of Executive Level Confirmation Workshops Project Strategies are complete and signed-off by the project sponsors Project scope is signed-off by the project sponsors Project Plan is delivered The project kickoff meeting is held The Steering Committee is in place The project team is staffed

Risks:
Analyis business and financial risk that will impact the forecasted timeline

Evaluate possible risk of change in business requirement affecting the expected business benefit Measure the business risk of the customer against initial project requirements.

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Example SAP Method Phase 1 Project Preparation


Objective:
Project Preparation Final Preparation Realization Evaluation
Program Management

Perform detailed project planning & scoping, establish the project team, and refine documents created in evaluation

Go Live and Support

Business Blueprint

Sustain

Business Organization Application Architecture Operations

Activities:
Create Project Charter Refine Project Team Organization Refine Earned Value Milestones Develop Detailed Workplan Define Project Methods, Standards, Procedures, and Tools Understand Risks and Critical Success Factors Conduct Team Orientation Define Technical Infrastructure Organization

Sample Key Deliverables/ Results:


Project Charter Project Team Organization Structure Milestone Program Plan Detailed Workplan Document Methods, Standards, Procedures, and Tools Project Risks and Critical Success Factors Assessment Team Orientation meeting is held Technical Infrastructure Organization Document

Risks:
Lack of key project resources H/W performance issues Slippages against plan Key Project resources

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Example SAP Method Phase 2 Business Blueprint


Project Preparation Final Preparation Realization Evaluation

Objective:
Create a detailed description of your business information requirements

Program Management

Go Live and Support

Business Blueprint

Sustain

Business
Organization Application Architecture Operations

Activities:
Conduct Trainings Define Information Requirements Identify Business Content Reports/ Indicators Define new Reports/Indicators Define Reports/Indicators components Perform GAP Analysis and Resolution Build Detailed Analysis Document Set up and Install Development Environment Conduct Scope Workshops Build Detailed Workplan for Remaining Phases

Sample Key Deliverables/ Results:


Information Requirement Forms Detailed Information Requirement Document Detailed Analysis Document Detailed Workplan for Remaining Phases

Risks:
Redundancy in technology and impact to business Downtime and impact to the business CONFIDENTIAL
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Example SAP Method Phase 3 Realization


Objective:
Project Preparation Final Preparation Realization Evaluation
Program Management

Realize the business requirements defined in the Business Blueprint & transform the requirements into an approved working system

Go Live and Support

Business Blueprint

Sustain

Business Organization Application Architecture Operations

Activities:
Install Business Content Indicators/Reports Build Non Business Content Indicators/Reports Conduct Test sessions Develop Training Materials Conduct Instructor and Pilot training Create Security Authorizations Define Go-Live Checklist

Sample Key Deliverables/ Results:


Components Test Plan Report/Indicators Test Plan Trained Project Team on Testing Methods and Supporting Tools Security Profiles and Authorizations Created Procedures and Training Materials Built and Tested Report/Indicators Knowledge Transfer Assessment

Risks:
Systems failure (operational, performance bottlenecks) Application integration failure Scope creep CONFIDENTIAL
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Example SAP Method Phase 4 Final Preparation


Objective:
Project Preparation Final Preparation Realization Evaluation
Program Management

Complete preparation of the production SAP BW system, including end user training, system management, and cutover activities

Go Live and Support

Business Blueprint

Sustain

Business Organization Application Architecture Operations

Activities:
Products Promote to Production Conduct System Test Refine and Execute Go Live Checklist Refine and Execute Production Support Plan Prepare and Conduct End User Training Conduct Quality Review and Obtain Final Cut Over Approval

Sample Key Deliverables/ Results:


Cut Over Checklist Production Readiness Review Quality Review Go Live Approval

Risks:
Pilot test failure

Performance issues due to infrastructure scalability


Knowledge/ skills transfer gap
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Example SAP Method

Phase 6 Go Live and Support


Objective:
Project Preparation Final Preparation Realization Evaluation
Program Management

Transition from a preproduction environment to a live, stable, productive operation

Go Live and Support

Business Blueprint

Sustain

Business

Organization
Application Architecture

Operations

Activities:
Provide Production Support (Help Desk) Validate Information Results Optimize System Tuning Execute Ongoing Security Administration Conduct Post Implementation Project Review Benefits Measurement

Sample Key Deliverables/ Results:


Production System Ready Center of Excellence (COE) Knowledge Management Production Capable End Users Post Implementation Project Review

Risks:
Go live failure due to incorrect requirement capture therefore need to have old system operational
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Example SAP Method

Phase 7 Sustain
Objective:
Help ensure that there is a framework in place to sustain and improve the performance of the system after go-live
Final Preparation Project Preparation Realization Evaluation Business Blueprint Go Live and Support Sustain
Program Management Business Organization Application Architecture Operations

Activities:
Provide Production Support (Help Desk) Optimize System Tuning Benefits Measurement

Sample Key Deliverables/ Results:


Center of Excellence (COE) Knowledge Management Post Implementation Project Review

Risks:
Lack of skilled resources to maintain the operation running of the system in its early years transition risks due to unclear system design
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Typical SAP Implementation Timeline


0.5-1 month
Project Preparation

Go-Live <Date>
1-2 months
Go-Live and Support

1-2 months
Blueprint

2-4 months
Realization

1-2 months
Final Preparation

Focus Getting the project started Identifying Team members Developing a high level plan

Focus Understanding the Clients Business Goals / Requirements Gaining a high level understanding of SAP Developing Business Blueprint Deliverables Project Team Training Org Structure Communications Plan End-User Training Strategy Business Process Master List Approved Business Blueprint Refined Project Plan R/3 Development system

Focus Configuration / Development of the system (Including unit and Integration testing) Preparation of end-user training Organizational Change Management Deliverables Test Plans (Unit, Integration, User Acceptance, System) Configured system according to blueprint R/3 Quality Assurance System R/3 Training System User Roles & Authorizations End-User Training materials

Focus End-user training User Acceptance Preparations for Cutover Organization Change management Deliverables System validation: (Security, Data, Configuration, Development, Technical Infrastructure) Production Support Plan (Help Desk) Cutover Plan End-User Training Go / No-Go Decision R/3 Production System

Focus Cutover and validation of the production system Supporting the endusers Issue resolution

Deliverables Project Standards and Procedures Project Charter Scope & Approach OCM Strategy Project Plan Project team training plan Project Kickoff Meeting

Deliverables Production Environment Production Support Go-Live review Project close letter Transition to Hosting services

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Client pain points around application management?


Lack of resources Lack of applications skills / knowledge Cost reduction Focus to our core competencies To reduce workload on internal IT staff To address a lack of infrastructure To provide predictable costs

57%

47% 46% 44%


34% 30% 30% 26% 24% 23% 20% 19%

To improve flexibility/scalability
To improve speed to market To provide training skills/knowledge To provide business process skills / knowledge To reduce risks To gain expertise in enterprise application strategies To provide predictable schedules To provide consistent remote locations adoption / support Other

11% 7% 6% 3%
10% 20% 30% 40% 50% 60%

0%

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CONSULTANT DETAIL

Name : Email : M:

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