BTS CP Program Quality Assurance - websmp102.sap …sapidp/012002523100017589522014E/... · BTS CP...

BTS CP Program Quality Assurance

Carola Feind-Just

Head Consumer Products MEE

Business Transformation Services Public

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

SAP supports its customers reducing project cost and time through a best

practice/ benchmarking study

Initial

situation

Goals of

the study

• Demonstrate improvement potentials through optimization of the program methodology,

program governance and used program standards

• Compare customer’s program management methodology and standards with best practice

(Global top five CP industry peers considered in peer comparison)

• Quantify identified improvement potentials wherever possible taking into consideration

customer’s initial situation

• Derive clear recommendations to reduce program cost and time

• Describe concrete actions to implement the relevant recommendations

• Customer is planning a regional or global template program and wants to minimize

costs or time for the program

• Customer sent out a RFP to delivery partners and wants to cross-check costs and

times to evaluate delivery partner’s proposals

• Customer is currently developing a global template or rolling out a global template

and wants to compare it’s approach to best practice in single program phases

• Customer Design Authority wants to learn about best practice template development

and roll-out to cross check customer organization and standards


SAP will benchmark all relevant program key activities with best practice and

derive cost and time potentials T

em

pla

te D

evelo

pm

ent

Local R

oll-

ou

t

Template Built

Strategy & Scope

Template Roll-out

Strategy

Governance, Roles,

and Responsibilities

Processes: As Is, To Be,

Mapping

Testing

Training

Cutover Preparation

Local Project

Preparation

Local Business

Blueprint

Local Realization

Local Final Preparation

Go Live & Support

Program Methodology

Example Key activities

SAP Program Methodology

Benchmarking

• SAP will be able to benchmark all typical program key activities with

CP industry best practices

• Broad range of detailed quantitative best practice information available

based on SAP experience with it’s global CP customers

• Relevant key activities for the benchmarking study have to be

chosen by the customer based on expected improvement potential

• Customer approach, governance structures, standards each chosen

key activity are compared with peers and industry best practices

• Customer performance is evaluated for each key activity related

to peer performance

• Improvement potentials could be implemented by customer and

customer delivery partner

• Improvement potentials each program phase concerning cost and time, risk aspects will be considered

explicitly

• Detailed description of peer behavior in all relevant program phases and description of detailed actions

to realize improvement potentials

Program

phase

Key

activities


After choosing the relevant key activities the bench-marking study is based

on a four step approach

1 2

3 4

Understand Customer’s Method Identify cost/ time driver each key activity

Benchmark against peers Derive Customer specific recommendation

• Customer’s program approach has to be

understood in order to map it against SAP best

practice information

• SAP has to map Customer’s program approach to

SAP methodology to make available benchmarking

information comparable

• Comparison of Customer

approach to peers is

based on clearly described

cost driver each key activity

• Cost driver based project

approach allows to quantify

improvement potential

based on better compara-

bility of data

Degree of centrally

predefined test cases &

criteria

No

t

exis

tin

g

Om

ni-

pre

se

nt

B A C

Time / Cost Drivers Rating

Degree of centralized test

organization & execution

De

ce

ntr

al

Ce

ntr

al

B AC

A

B

…

• Comparison of com-

pany’s approach

to peers/ best


• Detailed information

on peer behavior is

provided to evaluate

Customer’s approach

Customer’s initial

situation/ culture

Best practice

approach

Recommendation

to save cost/time

Overall

alignment

Each key

activity, each

cost driver

Consolidated on kea activity

and overall approach level

Derivation of actions to save

time and cost + action plan to

execute

Degree of centralized test

organization & execution

A

Degree of centrally

predefined test cases &

criteria

B

Additional cost drivers

relevant Focused interviews have to be conducted with

Customer program management

…

Own

company

Peers


Having chosen the two relevant key activities the benchmarking study is

based on a four step approach

Understand

customer’s approach

Identify cost/ time

driver each key activity

Benchmark against

peers

Derive customer-

specific

recommendations

1 2 3 4

• Understand customer’s

program approach

• Map customer to SAP

best practice

information to make

information

comparable

• Define relevant criteria

to assess benchmar-

king comparison to

peers

• Select criteria based

on customer’s current

situation

• Comparison of

customer’s approach to

peers/ SAP best


• Depict discrepancy to

peer/ SAP best practice

information

• Derive recommenda-

tions based on

customer’s current

situation and SAP best

practice

• Describe concrete

actions to implement

recommendations

• Focused interviews with

Proj. Mgt./ area experts

(~ 5-7 interviews,

~1 h each)

• 1 presentation to

Project Mgmt./ area

experts, 1,5h total

• Validating discussions

with area experts (~2-3

interviews, 0,5h each)

• Send out to program

mgmt. and experts for

validation (optional: 1

presentation, 1 h)

• Supportive: Focused

expert interviews (2

interviews, ~ 1h each)

• Finding presentation to

Project Mgmt./ area

experts,(1 presentation

of 1 hour)

• customer experts

involved in action plan

preparation (~ 2

meetings, 1h each)

• Final presentation to

Project Mgmt.

(1,5h total)

Pro

cedure

A

ctivitie

s

Cu

sto

me

r

Engagem

ent

Deliv

era

ble

s

Fully understood and

documented summary

of customer’s approach

for selected key area(s)

Set of relevant criteria

(cost/ time drivers) to

compare customer’s

performance to peers

customer’s perfor-

mance in respective

key activity in relation

to peers/ SAP best

practice

Recommendations to

save cost/ time

& action plan to

execute


Concrete actions will be defined to execute on the identified cost and time

reduction potentials

Improvement

potentials

identified based

on peer comparison

Improvement po-

tentials directly trans-

ferable based on

detailed description

of peer approach

Improvement

potentials

not directly

transferable Adapt identified

improvement

potentials based

on Customer initial

situation

No transfer to

Customer possible

Calculate potentials

and derive actions

to implement im-

provement potentials

Calculate potentials

and derive actions

to implement im-

provement potentials

Recommendations to adapt program approach, governance, or program standards will be translated

into detailed actions to implement improvements and realize potentials

Calculation of im-

provement potential

is based on quanti-

tative cost and time

information of peer

approach each

key activiy

Customer initial

situation

and culture considered

Customer initial

situation

and culture considered


The approach has been successfully executed together with Top Five Global

Consumer Product companies

Customer Customer program/ project scope Result

Top 5 SAP

Consumer Products

Customer

• Large regional template build and roll-out project

• Project conducted based on RFP information

• Program not started, program in preparation phase

• Program methodology benchmarking of all template

development phases executed

• Template roll-out phases not considered

• High improvement potentials

in process definition/ mapping

• Additional cost improvement

potentials in testing

• Development and send out

of new RFP to supplier

• Reduction of fully loaded

project costs by 15%

Top 5 SAP

Consumer Product

• Global template build and roll-out

• Template realization finished

• Focus of methodology benchmarking on testing, training,

and governance, roles, and responsibilities based on

program status

• High improvement potentials

in testing and training through

centralization and realization

of specialization improvement

• New overall testing strategy

developed based on bench-

marking results

… … …


The project approach and project deliverables are demonstrated

based on a project example

1. The relevant key activities

are detailed

3. Recommendation is derived

based on initial situation

4. Detailed peer characterization

helps to make information

comparable

5. Cost driver related quantitative

Peer information helps to quantify

improvement potentials

2. Customer is benchmarked

against peers based on cost

driver‘s


Project example – Program phase testing (1/5): The relevant key activities are

detailed

All key activities are detailed

to be able to identify the right

cost driver each key activity

All customer key activities

have to be fully understood

and mapped against the

SAP methodology to make

peer data comparable

Clear description of customer

key activity to make sure that

a full understanding is given

as basis for all further

comparison and evaluation


Project example – Program phase testing (2/5): Customer is benchmarked

against peers based on cost drivers

Own company is benchmarked

against peers

Best practice could be

identified each cost driver

All peer data is compared

based on a set of cost driver

each key activity to make

data comparable and to

be able to use quantitative

information

A detailed description of

the best practice (also

of don'ts) helps to understand

the peer data. Specific patterns

in peer behavior are identified


Project example – Program phase testing (3/5): Recom-mendation is derived

based on initial situation

Recommendation taking into

consideration customer intial

situation and culture

High level recommendation

as starting point for

quantification in this example

Recommendation leads

to detailed action plan

to implement the

recommendations and realize

the identified potentials

Specific pattern in peer

behavior which is considered

best practice.

Different peers could follow

a best practice approach

depending on the different cost

drivers

Detailed understanding of

customer’s program

methodology required

Focused interviews to be

conducted with Customer

program management


Project example – Program phase testing (4/5): Peer characterization helps to

make information comparable

Peer characterization each

key activity

General information on

peer approach


Project example – Program phase testing (5/5): Quanti-tative peer information

helps to quantify improvements

Detailed information on peer

approach detailed by cost driver

Quantitative date to be able

to quantify improvement

potentials

Most important cost driver

to be discussed for a

detailed estimation of

improvement potentials

Qualitative description of

peer behavior and peer

approach related to the

relevant key activity and

cost driver


SAP BTS CP follows an efficient best practice approach

Only key activities with high improvement potentials should be chosen to focus on high cost or

time reduction potentials

SAP will get most of the relevant information from it’s network of SAP consultants with a broad

knowledge of the Customer program approach reduction of Customer internal personnel costs to

conduct the study

The overall effort is depending on the number of chosen key activities, the level of detail of the

peer comparison each key activity, and quantification needs to derive improvement potentials

The approach will mainly be an outside in approach bringing in peer and best practice information

To understand the Customer approach, program governance, and standards and to understand

the Customer initial situation several focused interviews with key stakeholders of the project have to

be conducted

Overall effort will sum up to 30 – 70 MD’s depending on the above mentioned criteria

SAP will need access to all program/ methodology related information and documentation available

SAP will need to work onsite being in close contact with program management


Example for next steps

Discuss and identify the relevant key activities to be benchmarked

Organize initial meeting with program manager to present and discuss detailed project approach

Set up project organization

Identify Customer experts to be interviewed and align on project plan

Organize kick-off meeting

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Contact

Contact information:

Carola Feind-Just

Head Consumer Products MEE

Business Transformation Services

[email protected]

+49 151 5711 8299

BTS CP Program Quality Assurance - websmp102.sap …sapidp/012002523100017589522014E/... · BTS CP...

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