Software Implementation

Methodology

Chokchai A.

29/02/2008 CONFIDENTIAL 1
Agenda

 Today’s Business & IT Challenges

 Critical Success Factors for a Software

Implementation

 Example SAP Method/ Risk Management

 Typical SAP Implementation Timeline

CONFIDENTIAL 2
Today’s Business & IT Challenges

In the recovering economy, companies are once again searching for

growth of revenue and profit

Companies need to respond faster to market changes and adapt

quickly to stay ahead of competitors

At the same time, there is intense pressure to reduce total IT costs

which limits development and implementation initiatives

Companies need to reallocate money within their organizations in

order to create sustainable value and innovation

Organizations are re-thinking their current strategies and developing

new business models to reflect the changed market conditions

CONFIDENTIAL 3
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

CONFIDENTIAL 4
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

CONFIDENTIAL 5
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

CONFIDENTIAL 6
Critical Success Factors for a Software 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

CONFIDENTIAL 7
Implementation Methodology

Stage I Stage II
Program Management
Business

Project Business Final Go Live Organization

Evaluation Realization Sustain
Preparation Blueprint Preparation and Application
Support
Architecture
Operations

Risks:
• Development of risk
conscious culture for the
project

CONFIDENTIAL 8
Example SAP Method

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
 Designed to support complex programs of work with multiple concurrent projects
 Integrates key project work streams
 Provides the roadmap and description of work which must be accomplished tailored to
specific industry value chain
 Supports an integrated team concept and serves as the project documentation
repository

Program Management

Business

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

Operations

CONFIDENTIAL 9
Typical Client SAP Method
•Implementation methodology has been mapped across the phases of an software
implementation and enhanced with the addition of two phases – Evaluation and Sustain
•This method complies with the key concepts of ITIL.

Typical Software Project Lifecycle

Program Management
Business

Realization
Preparation

Preparation
Evaluation

Business
Blueprint

Sustain
Project

Organization

Support
Go Live
Final

and
Application
Architecture
Operations

SAP AG TM for AcceleratedSAP

• Approach Philosophy • Project Phases

 Implementation methodology is designed to be scalable and  Phase 0 - Evaluation
encourage the iterative definition and refinement of deliverables  Phase 1 - Project Preparation
throughout the project lifecycle. The project lifecycle is composed  Phase 2 - Business Blueprint
of activities that are organized by phase and domain views.  Phase 3 - Realization
These activities represent specific activities and deliverables  Phase 4 - Final Preparation
(outputs).  Phase 5 - Go Live and Support
 Phase 6 - Sustain

CONFIDENTIAL 10
Example SAP Method

Phase 0 – Evaluation
Objective: Program Management

Realization
Preparation

Preparation
Evaluation
Business

Go Live and
Business
Blueprint
 Develop and / or confirm

Sustain
Project

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

Operations
Activities: Sample Key Deliverables/ Results:
• Understand Customer Strategy and Market Position.
• Understand Strategic Opportunities  Strategy, Market Position Analysis Document
• Understand the Client’s Readiness for Change  Prioritized List of Strategic Opportunities
• Conduct Senior Executive Level Workshop Covering:  Preliminary Change Readiness Assessment
– Project Strategies Confirmation  Completion of Executive Level Confirmation
– Project Scope
Workshops
– Organization Readiness
– Demonstration of Software Capabilities and Impacts  Project Strategies are complete and signed-off by
• Build planning for the Software project the project sponsors
• Establish Project Organization  Project scope is signed-off by the project sponsors
• Assign resources  Project Plan is delivered
Risks:  The project kickoff meeting is held
 The Steering Committee is in place
• Analyis business and financial risk that will impact the forecasted timeline  The project team is staffed
• Evaluate possible risk of change in business requirement affecting the expected
business benefit
• Measure the business risk of the customer against initial project requirements.
CONFIDENTIAL 11
Example SAP Method

Phase 1 – Project Preparation

Objective: Program Management

Preparation

Preparation
Realization
Evaluation
Business
 Perform detailed project

Go Live and
Business
Blueprint

Sustain
Project

Support
Final
planning & scoping, Organization

establish the project team, Application

and refine documents Architecture
created in evaluation Operations

Activities: Sample Key Deliverables/ Results:

 Create Project Charter
 Refine Project Team Organization  Project Charter
 Refine Earned Value Milestones  Project Team Organization Structure
 Develop Detailed Workplan  Milestone Program Plan
 Define Project Methods, Standards, Procedures, and  Detailed Workplan
Tools  Document Methods, Standards, Procedures, and
 Understand Risks and Critical Success Factors
 Conduct Team Orientation
Tools
 Define Technical Infrastructure Organization  Project Risks and Critical Success Factors
Assessment
Risks:  Team Orientation meeting is held
• Lack of key project resources  Technical Infrastructure Organization Document
• H/W performance issues
• Slippages against plan
• Key Project resources

CONFIDENTIAL 12
Example SAP Method

Phase 2 – Business Blueprint

Program Management
Objective:

Preparation

Preparation
Realization
Evaluation
Business

Go Live and
Business
Blueprint

Sustain
Project
 Create a detailed description

Support
Final
Organization
of your business information Application
requirements
Architecture

Operations

Activities: Sample Key Deliverables/ Results:

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

Risks:
• Redundancy in technology and impact to business
• Downtime and impact to the business
CONFIDENTIAL 13
Example SAP Method

Phase 3 – Realization
Objective: Program Management

Preparation

Preparation
Realization
Evaluation
Business

Go Live and
 Realize the business

Business
Blueprint

Sustain
Project

Support
Final
Organization
requirements defined in the
Business Blueprint & Application
transform the requirements Architecture
into an approved working Operations
system
Activities: Sample Key Deliverables/ Results:
 Install Business Content Indicators/Reports  Components Test Plan
 Build Non Business Content  Report/Indicators Test Plan
Indicators/Reports  Trained Project Team on Testing Methods and
 Conduct Test sessions Supporting Tools
 Develop Training Materials  Security Profiles and Authorizations Created
 Conduct Instructor and Pilot training  Procedures and Training Materials
 Create Security Authorizations  Built and Tested Report/Indicators
 Define Go-Live Checklist  Knowledge Transfer Assessment
Risks:
• Systems failure (operational, performance bottlenecks)
• Application integration failure
• Scope creep
CONFIDENTIAL 14
Example SAP Method

Phase 4 – Final Preparation

Objective: Program Management

Preparation

Preparation
Realization
Evaluation
Business

Go Live and
 Complete preparation of

Business
Blueprint

Sustain
Project

Support
Final
Organization
the production system,
including end user Application
training, system Architecture
management, and Operations
cutover activities
Activities: Sample Key Deliverables/ Results:
• Products Promote to Production • Cut Over Checklist
• Conduct System Test • Production Readiness Review
• Refine and Execute Go Live Checklist
• Quality Review
• Refine and Execute Production Support Plan
• Prepare and Conduct End User Training • Go Live Approval
• Conduct Quality Review and Obtain Final Cut
Over Approval
Risks:
 Pilot test failure
 Performance issues due to infrastructure scalability
 Knowledge/ skills transfer gap
CONFIDENTIAL 15
Example SAP Method

Phase 6 – Go Live and Support

Objective: Program Management

Preparation

Preparation
Realization
Evaluation
Business

Go Live and
 Transition from a pre-

Business
Blueprint

Sustain
Project

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

Activities: Sample Key Deliverables/ Results:

• Provide Production Support (Help Desk) • Production System Ready
• Validate Information Results • Center of Excellence (COE) – Knowledge
• Optimize System Tuning Management
• Execute Ongoing Security Administration • Production Capable End Users
• Conduct Post Implementation Project • Post Implementation Project Review
Review
• Benefits Measurement
Risks:
 Go live failure due to incorrect requirement
capture therefore need to have old system
operational
CONFIDENTIAL 16
Example SAP Method

Phase 7 – Sustain
Objective: Program Management

• Help ensure that there

Preparation

Preparation
Realization
Evaluation
Business

Business
Blueprint

Sustain
Project

Support
Go Live
Final
Organization
is a framework in place

and
Application
to sustain and improve
Architecture
the performance of the
Operations
system after go-live

Activities: Sample Key Deliverables/ Results:

• Provide Production Support (Help • Center of Excellence (COE) – Knowledge
Desk) Management -> Knowledge Based
• Optimize System Tuning • Post Implementation Review (PIR) – Lesson
• Benefits Measurement Learn
Risks:
• Lack of skilled resources to maintain the operation
running of the system in its early years
• transition risks due to unclear system design

CONFIDENTIAL 17
Typical SAP Implementation Timeline
Go-Live
<Da te>

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

 Focus  Focus  Focus  Focus  Focus

 Getting the project  Understanding the  Configuration / Development  User training  Cutover and
started Client’s Business of the system  UAT on QAS validation of the
 Identifying Team Goals / Requirements  Unit and Integration testing production system
 Preparations for
members  Gaining a high level on DEV Cutover  Supporting the end-
 Developing a high understanding of  Preparation of user training users
 Organization
level plan Processes  Organizational Change Change  Issue resolution
 Developing Business Management (OCM) management
Blueprint
 Deliverables  Deliverables  Deliverables  Deliverables  Deliverables
 Project Standards  Project Team Training  Test Plans (Unit, Integration,  System validation:  Production
and Procedures  Org Structure User Acceptance, System) (Security, Data, Environment
 Project Charter  Communications Plan  Configured system according Configuration,  Production Support
 Scope & Approach Development,
 User Training to blueprint  Go-Live review
Technical
 OCM Strategy Strategy  Develop programs according  Project close letter
Infrastructure)
 Project Plan  Business Process to RICEFW  Transition to
 Production Support
 Project team training Master List  User Roles & Authorizations Plan (Help Desk) Hosting services
plan  Approved Business  User Training materials  Cutover Plan
 Project Kickoff Blueprint  Prepare testing environment  User Training
Meeting  Refined Project Plan (QAS)
 Go / No-Go
Decision
 Prepare Production
environment

CONFIDENTIAL 18
Top pain points around application management?

Lack of resources 57%

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

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

CONFIDENTIAL 19