Hosted by
Thrive After go Live:
Continuous Business Evolution
with SAP R/3
Barry Wilderman Michael Doane
META Group, Inc.
Hosted by
Protecting Your SAP Investment
80% of SAP installed base clients express
disappointment in:
Benefits attained
Measurability of benefits
User competency
20% created post-ERP IT/Business
organizations (CoE)
End User Competency is sorely neglected
Hosted by
The Fog of SAP War
 A Business Case justifies the endeavor (was it
measurable?)
 Software and SI are selected
 Project begins – client grows ‘cost conscious’
 Benefits are forgotten/training is reduced
 “We didn’t get what we expected”
Overview of an SAP Implementation Project
Hosted by
0
Vision
& Strategy
Project Charter
Funding
Commitment
Scoping
Staffing
Benefits
Targeting
A
Enterprise
Model
Definition
R/3
Configuration
Reporting
Process
Design
Interfacing
Data
Analysis
Data
Cleansing
Project Installation
Sizing
Transfer of SAP Knowledge
IT Transition
Help Desk
Integration
Testing
Interface
Support
Data Migration
Benefits
Monitor
Interfacing
User Testing
User Training
Production
Platform
Process
Improvement
B
Client
Ownership
Hosted by
Pre-SAP Life Cycle
Information Systems Life Cycle
The perception of a need
Degradation
Project Planning
Acquisition/
Development
Maintenance/
Enhancement
Utilization
Testing & Training
Implementation
Hosted by
The SAP Life Cycle
Continuous Business Improvement Cycle
Enterprise Vision
Extended Applications
Opportunity
New Software Release
Business Process Design
Configuration
Implementation
Business Process Refined
Configuration
Expected life-span of an SAP installation=15+ years
Hosted by
Beyond Day One
Continuous Business Improvement
ROI, Extended Applications, e-Commerce
Extensions toward SCM and CRM
Yes
Core ERP Implementation
Go
Live
TO BE
CoE?
No
Incremental
Improvement
AS IS
Performance
The “TO BE” vision established during core ERP implementation is limited to near and
mid-term planning and is targeted for achievement at the point of Go Live.
At Go Live, a new “TO BE” must be established or business improvements will only be
incremental relative to the initial To Be vision.
Clients need to simultaneously a) maintain and support existing ERP functionality and
b) provide the engine to seize new benefits.
Hosted by
CIO Top Issues Matrix
(500 CIOs in 2001, 700 CIOs in 2002
US 2001
1. Business/IT Alignment
2. HCM
3. Leadership
1.
2.
3.
4.
5.
6.
Europe (w/o UK)
Business/IT Alignment
Value Management
Process Management
Operations Excellence
Leadership
Adaptive Infrastructure
1.
2.
3.
4.
5.
6.
7.
8.
US 2002
Business/IT Alignment
Value Management
Leadership
HCM
Operations Excellence
CRM
Process Management
(Adaptive) Infrastructure
1.
2.
3.
4.
5.
6.
Australia
Business/IT Alignment
Value Management
Leadership
(Adaptive) Infrastructure
HCM
Legacy Systems Upgrades
1.
2.
3.
4.
5.
6.
7.
7.
Global CIO 2002
Business/IT Alignment
Value Management
Leadership
Operations Excellence
HCM
Process Management
CRM (tied for 7th)
(Adaptive) Infrastructure
1.
2.
3.
4.
5.
6.
Asia
Business/IT Alignment
Value Management
Operations Excellence
(Adaptive) Infrastructure
Process Management
HCM
1.
2.
3.
4.
5.
5.
UK
Business/IT Alignment
Value Management
Leadership
Operations Excellence
HCM (tied for 5th)
(Adaptive) Infrastructure
CIO Concerns Worldwide = 1. Business/IT Alignment
Hosted by
Why an SAP Center of Excellence?
 An optimization of business processes that drive
business benefit
 An optimization of end user competency and
employee fulfillment of business processes
 Continued coherence and integration of
functionality and data through all process chains.
Hosted by
IT Steering
Committee
CIO
IT
Architecture/
Planning
Sourcing &
IT Financials
IT Human
Resources
Quality &
Measurement
Security
Program
Management
Business
Groups
Continuous
Education
Application
Management
Integration Mgmt
Technology
Domains
•
•
•
•
•
•
Database
Host
Middleware
Network
Desktop
etc.
Infrastructure
Development/
Engineering/
Technical
Support
Operational
Services
Technical
Support
Center of
Excellence
Operations
Change
Management
Hosted by
Client IT Domain
Enterprise Program Management
Process Owners
Users
Users
Users
Users
Client LOB
Domain
Software Vendor
Domain
Application Management Domain
Help Desk
Continuous Education
Finance
Sales
Logistics
Production
Software Configuration & Support
…
Extended apps
New apps
Upgrades
Custom Applications
Integration Management (Functional, Cross-Application)
Integration Management (Technical)
Production Control/Change Management
Client IT Domain
Hosted by
Coe Functions
 Maintenance and support of ERP and related
functions
 Optimization of current system usage
 Continuous business improvement
 Prepare the company for transformational
change.
Hosted by
Building an SAP CoE: Planning
 Create a high-level vision for a post-implementation
Center of Excellence. This vision will address:
• The scope of the center of competence: Will it support just the ERP
installation, or also legacy systems, bolt-ons, and interfaces?
•
Organization/structure: There are at minimum four basic variants
for a CoE organization depending upon a client’s size, geographic
locations, and support requirements.
 Transition Plan (High Level): defining the calendar for
migration of legacy systems to ERP as well as the
migration of legacy IT staff to new roles in the Center
of Excellence.
Hosted by
Building an SAP CoE
Development/Realization
 Create a Straw Roster for the Application Management
team:
 Establish role definitions for the post-Go Live for
Enterprise Program Management, Application
Management, and Integration Management.
 Determine which CoE functions will be outsourced
 Launch outsourcing negotiations with chosen vendors
 Create a staff transition plan
Hosted by
Realization to Final Preparation
 Complete transition education for CoE staff.
 Integration and orientation of outsourced CoE
functions should commence as the build phase reaches
the final preparation phase.
 Initial end user training should include an introduction
to CoE user support functions and the Help Desk should
be in place.
Hosted by
Go Live +
 The Center of Excellence is operational, with all
elements in place for continuous business evolution.
 After Go Live, the balance of legacy IT staff will be a)
transitioned to the new SAP-centric organization, b)
re-assigned with the organization, or c) terminated.
Hosted by
IT Migration from Tradition to ERP
 Development System - Installation
Implementation
 Master Data Conversion
 Interfaces (one time and permanent)
 Reports –
 Customizing to satisfy Gaps
 Production Installation





Performance Monitoring/Scalability
Interface maintenance
Connectivity (ALE, EDI, Web…)
User support
Data/Business Intelligence
Post-Implementation
Hosted by
Bottom Line
 ROI should be measured from the beginning of
the project and carried through time
 Cost is only half of the equation
 ROI has no ceiling (nor does a To Be Vision)
 Continuous business evolution is the goal, not
just implementation