Getting to the Finish Line: How to Increase Your Chances of Success When Turning on Your New SAP...

ATUL PATANKAR[ASUG INSTALLATION MEMBER MEMBER SINCE: 2000

LINDA WILSON[ASUG INSTALLATION MEMBER MEMBER SINCE: 1999

JUERGEN LINDNER[SAP POINT OF CONTACT MEMBER SINCE: 1998

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] Getting to the Finish Line: How to Increase Your Chances of Success

When Turning on Your New SAP System

[April 7th 2011Brenda McCue & Jeff BooneAce Hardware Corporation

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Real Experience. Real Advantage.

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Introduction Overview of Ace Cutover Framework for Projects Early Strategic Plans Detailed Cutover Plans Cutover Controlled Hypercare Key Take Aways

Agenda

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Introduction

About Ace Hardware Founded in 1924 by a small group of Chicago

hardware store owners, Ace changed the retail landscape by allowing individual stores to purchase merchandise in bulk to save money and buy at the lowest possible price.

Each Ace store is independently owned and operated by local entrepreneurs – hard-working, passionate business owners who are involved with and, many times, reside in the communities where their stores are.

4,400 Ace stores around the world We are your local hardware store and we are a part

of your community.3

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Introduction

SAP at Ace Hardware First SAP implementation in 2008 – “Build the

Foundation” Implemented Order to cash processes (SD, MM) Core ordering applications still tied into legacy systems

Second SAP implementation in 2010 – “Business Transformation” Implemented core financials (FI/CO) and purchasing

(MM) Chart of Accounts, Accounts Receivable, Accounts Payable,

Inventory Improved the Order to cash processes (SD, Vertex,

FSCM) Sales Order, Credit, Delivery, Interfaces with our legacy

DMPS/WMS Implementation partner - IBM 4

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Introduction

Today’s goals What do we mean by “Cutover”

Business Process Technical Implementation Organizational Transition

Importance of the Go Live Checklist Executing the Go Live Checklist can be a project

itself

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Introduction Overview of Ace Cutover Framework for Projects Early Strategic Plans Detailed Cutover Plans Cutover Controlled Hypercare Key Take-Aways

Agenda

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Overview

SAP Go Live Checklist Excellent tool Tells what needs to be done, but not how to get it

done

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Overview

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BUSINESS PROCESS

Certification of new Business Process

Business Shutdown

Controlled Start

TECHNICALIMPLEMENTATION

Technical Components

Time Installs to new Business Process

Contingency plans

ORGANIZATIONALTRANSITION

Training

Change ManagementACE’

S CU

TOVE

R FR

AMEW

ORK

Using a disciplined project management method to implement SAP systems should lead to a boring Go Live and Hypercare

Early strategic plans

Detailed cutover plans

Cutover time period(s)

Controlled Hypercare

User Access and IT Controls

Cutover Management

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Overview

Key Aspects of Ace’s Cutover Framework Can be used for large complex programs of work or

smaller scale projects (smaller projects can scale down the steps executed that are not necessary)

Driven by the Go Live Checklist Integrates key project work streams: business

process, technical implementation, organizational transition, internal controls

Provides the roadmap and descriptions of each unit of work which must be accomplished

Supports an integrated team concept

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Overview

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Early Strategic Plans

Detailed Cutover Plans

ControlledHypercare

Strategic Rollout plan

Internal Controls

Disciplined Project Management

Cutover

Technical Strategy

Org Impact Assessment

Training Strategy

Certification of testing

Detailed Cutover Plan

Training

Org Change Mgmt

Execute Cutover Plan

Issue Management

Conversion Validations

Metric Reporting

Bus & Tech Validations

Defect & Issue Mgmt

Transition to Operations

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Introduction Overview of Ace Cutover Methodology for Projects Early Strategic Plans Detailed Cutover Plans Cutover Controlled Hypercare Key Take Aways

Agenda

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ControlledHypercare


Internal Controls


Cutover

Technical Strategy


Training Strategy



Training

Org Change Mgmt


Issue Management


Metric Reporting



Defect & Issue Mgmt

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Cutover activities occur throughout the life of the project.

Many project team members and non-project team members participant in cutover activities at different stages of the project.

It is critical to begin implementation planning steps early in the project.

The activities listed in the “Early Strategic Plans” section should be done in the initial stages of the project.

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BUSINESS PROCESS Business Shutdown & Controlled Start

Define scope and sequencing of core system functions Do we implement everything in one “big bang”, or can we

implement “chunks” of functionality over time? Determine the level of risk that can be managed

How can we implement a new GL and close the books for the prior year at the same time?

Determine any key obstacles for the implementation Do not make any system changes during the yearly convention

as significant orders are placed and cannot be impacted


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TECHNICAL IMPLEMENTATION

Technical Strategy

Technical Components Determine if there are new hardware/software technologies

When we purchased FSCM, there were additional technical components required to connect the software (XI proved to be a technical challenge before, during, and after cutover

Determine technical direction as a result of the rollout plan Once the rollout strategy was set, the technical team made

design decisions based on the roll-out (versions of BAPI programs included code changes for specific releases).


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ORGANIZATIONAL TRANSITION


Training Strategy

Change Management Determine if there are significant impacts on the organization that

need special consideration Do we need a central team to maintain master data as this

would lead to new teams and roles for HR to define and recruit to fill

Do the new process changes eliminate current roles or require new roles to be defined?

Training Determine how end users will receive training and what

communications are necessary How many people will need to be trained? Do we use external training resources or do we use a train-the-

trainer approach? Do we use classroom training or web training or a

combination?

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Agenda

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ControlledHypercare


Internal Controls


Cutover

Technical Strategy


Training Strategy



Training

Org Change Mgmt


Issue Management


Metric Reporting



Defect & Issue Mgmt

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Detailed planning activities occur many weeks before the actual implementation.

You will need to dedicate project team member(s) to managing the detailed cutover plans and activities up to 8 weeks before the implementation (depending on the size of the project).

Non-project team members also participate in the cutover activities.

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BUSINESS PROCESS Certification of New Business Process

Final testing activities to certify the systems (QA Certification) Difficult business process transitions may require a test run (“Mock

test”)

Business Shutdown & Controlled Start Define business cutover steps/impacts

Certification of Testing


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Technical Components Potential new hardware/software changes may require a test run to

ensure system stability (“performance test”) Technical installations may require a test run (“Mock test”)

Time Installs to New Business Process Define technical cutover steps/impacts Align the technical installs to the best timelines surrounding the

defined business impacts

Contingency Plans Define risks that could impact the implementation. Build contingency

plans for those risks identified as critical. Define back-out strategies and plans

User Access and IT Controls Define and set up security requirements

Certification of Testing

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Org Change Management

Training

Cutover Management Discuss any special cutover security requirements First , draft high-level implementation plans for review. Then build

the detailed steps into a project plan (at minute increments if necessary)

Communicate cutover plans to all people impacted Logistics planning for project team support activities necessary

during the cutover and hypercare time periods (issue mgmt and escalations, coverage schedules, etc.)

Change Management Training for support teams for new support activities

Training End User Training materials, final training schedules, logistics for

training classes, end user communications End User Training and communications


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Example – High level plan

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Detailed Cutover PlansExample – Detailed plan

ID %Complete

PredecessorsSuccessorsTask Name Responsible Duration Start Finish

721 0% 716,712,695722 Start Load AP Invoices - after POs Conversion and AP on JDE done 0 mins Sun 01/31/10 1:45 AM Sun 01/31/10 1:45 AM722 0% 721 728 Load AP Invoices 300 mins Sun 01/31/10 1:45 AM Sun 01/31/10 6:45 AM723 0% 724 OPEN AP - LSMW Load - MIRO Sri Samara 30 mins Sun 01/31/10 1:45 AM Sun 01/31/10 2:15 AM

724 0% 723 725 OPEN AP - LSMW Load - FB60 Sri Samara 180 mins Sun 01/31/10 2:15 AM Sun 01/31/10 5:15 AM

725 0% 724 727,726 OPEN AP - Recon Files extracted - SAP Sri Samara 30 mins Sun 01/31/10 5:15 AM Sun 01/31/10 5:45 AM

726 0% 725 Reconciliation of OPEN AP Pam Tarte/Mike Chiaro 60 mins Sun 01/31/10 5:45 AM Sun 01/31/10 6:45 AM

727 0% 725 OPEN AP Business Validation Charlene Handler 60 mins Sun 01/31/10 5:45 AM Sun 01/31/10 6:45 AM

728 0% 722 834,730 End Load AP invoices 0 mins Sun 01/31/10 6:45 AM Sun 01/31/10 6:45 AM729 0% Reset Conversion Accts and Number Range 105 mins Sun 01/31/10 6:45 AM Sun 01/31/10 8:30 AM730 0% 728 731 Move transports DE1K904967 , DE1K907549 and DE1K907481after

MAP and Open AP conversionsAnup Nirmal 15 mins Sun 01/31/10 6:45 AM Sun 01/31/10 7:00 AM

731 0% 730 732 Run Movement Type and G/L fields status descrepancy Report RM07CUFAAnup Nirmal 60 mins Sun 01/31/10 7:00 AM Sun 01/31/10 8:00 AM

732 0% 731 Technical Validation Anup Nirmal 30 mins Sun 01/31/10 8:00 AM Sun 01/31/10 8:30 AM

733 0% 708 Paint Devaluation 120 mins Sun 01/31/10 5:00 AM Sun 01/31/10 7:00 AM734 0% 703 FIS MAP - LSMW Load - Paint Articles (RSC Locations) Sri Samara 120 mins Sun 01/31/10 5:00 AM Sun 01/31/10 7:00 AM

735 0% FIS MAP - NRIV Number Range Buffering OFF Sri Samara 15 mins Sun 01/31/10 5:00 AM Sun 01/31/10 5:15 AM

736 0% Validate Paint Map revaluation Natalie Stufflebeam 60 mins Sun 01/31/10 5:00 AM Sun 01/31/10 6:00 AM

737 0% 707 738 Start Critical Moves to Production 0 mins Sun 01/31/10 4:30 AM Sun 01/31/10 4:30 AM738 4% 737 833 Crtical Moves to Production 150 mins Sun 01/31/10 3:57 AM Sun 01/31/10 6:27 AM739 0% 740 Drain job initiators Ops Analyst 15 mins Sun 01/31/10 4:30 AM Sun 01/31/10 4:45 AM

740 4% 739 Sunday Installs (Change order #13117) 150 mins Sun 01/31/10 3:57 AM Sun 01/31/10 6:27 AM741 0% 820 DBA 4 mins Sun 01/31/10 5:39 AM Sun 01/31/10 5:43 AM742 0% AP_DDD_261 - Concur T&E System Pam Tarte 4 mins Sun 01/31/10 5:39 AM Sun 01/31/10 5:43 AM

743 0% AP_IDD_2034 - Temporary Drop Ship-Service Order AP-GL InterfaceJoan Zajac 4 mins Sun 01/31/10 5:39 AM Sun 01/31/10 5:43 AM

744 0% PR_IDD_123 - Interface PO changes to WMS Jackie Herrera 4 mins Sun 01/31/10 5:39 AM Sun 01/31/10 5:43 AM

745 0% WM_IDD_145 - IH Record from WMS to SAP to Cancel Article Michelle Scholtens 4 mins Sun 01/31/10 5:39 AM Sun 01/31/10 5:43 AM

746 0% WM_IDD_126 - WMS Receiving, Receiving Exceptions, and PGRMichelle Scholtens 4 mins Sun 01/31/10 5:39 AM Sun 01/31/10 5:43 AM

747 0% Turnovers 60 mins Sun 01/31/10 4:45 AM Sun 01/31/10 5:45 AM748 0% 749 WM_IDD_112 - PO's Downloaded from SAP to WMS Jackie Herrera 4 mins Sun 01/31/10 4:45 AM Sun 01/31/10 4:49 AM

749 0% 748 750 WM_IDD_126 - WMS Receiving, Receiving Exceptions, and PGRMichelle Scholtens 4 mins Sun 01/31/10 4:49 AM Sun 01/31/10 4:53 AM

750 0% 749 751 Change authority for all users to *public *exclude for program W4TA001 on all RSC’s Mark Yerkes 10 mins Sun 01/31/10 4:53 AM Sun 01/31/10 5:03 AM

Start Load AP Invoices - after POs Conversion and AP on JDE doneLoad AP Invoices

Sri Samara OPEN AP - LSMW Load - MIROSri Samara OPEN AP - LSMW Load - FB60

Sri Samara OPEN AP - Recon Files extracted - SAPPam Tarte/Mike Chiaro Reconciliation of OPEN AP

Charlene Handler OPEN AP Business ValidationEnd Load AP invoices

Paint DevaluationSri Samara FIS MAP - LSMW Load - Paint Articles (RSC Locations)Sri Samara FIS MAP - NRIV Number Range Buffering OFF

Natalie Stufflebeam Validate Paint Map revaluationStart Critical Moves to Production

Crtical Moves to ProductionOps Analyst Drain job initiators

Sunday Installs (Change order #13117)DBA

Pam Tarte AP_DDD_261 - Concur T&E SystemJoan Zajac AP_IDD_2034 - Temporary Drop Ship-Service Order AP-GL Interface

Jackie Herrera PR_IDD_123 - Interface PO changes to WMSMichelle Scholtens WM_IDD_145 - IH Record from WMS to SAP to Cancel ArticleMichelle Scholtens WM_IDD_126 - WMS Receiving, Receiving Exceptions, and PGR

Turnovers

Michelle Scholtens WM_IDD_126 - WMS Receiving, Receiving Exceptions, and PGR

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Agenda

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Cutover

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ControlledHypercare


Internal Controls


Cutover

Technical Strategy


Training Strategy



Training

Org Change Mgmt


Issue Management


Metric Reporting



Defect & Issue Mgmt

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Cutover

The actual implementation “cutover” time period could take one day, one week, or several weeks. There can be one or many cutover time periods for a project.

Your dedicated cutover leads will manage/control this process.

Non-project team members also participate in the cutover activities.

STICK TO THE PLAN No “Cowboying”

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Cutover

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BUSINESS PROCESS Business Shutdown & Controlled Start

Execute steps in the cutover plan

Validate system conversions Document any one-time cutover or conversion activities



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Cutover

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Technical Components Execute steps in the cutover plan Validate and double-check all installs (last run of old systems & first

run of new systems)

Contingency Plans Execute back-out plans or contingency plans (if needed)

User Access and IT Controls Use cutover security Implement user access to the system Document any one-time cutover or conversion activities

Time Installs to New Business Process Work with business staff in War Room to validate systems as they are

activated or conversions are completed

Conversion Validation

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Cutover

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Issue Management

Cutover Management Validate steps in the cutover plan are executed Co-locate the project team to a central location to expedite reaction

time to issues (WAR ROOM) Monitor issues and risks Follow issue escalation processes in place with the support teams Status reporting and communications to all impacted staff

Change Management Provide assistance to end users as systems are activated and users

are given access


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Agenda

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ControlledHypercare


Internal Controls


Cutover

Technical Strategy


Training Strategy



Training

Org Change Mgmt


Issue Management


Metric Reporting



Defect & Issue Mgmt

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Once systems become active, system defects can cause chaos quickly if there is no clear escalation path

You must have a formal escalation path for everyone impacted by the changes (project team and support teams, end users, external touch points, etc.)

There must be formal structures in place to make decisions in a timely manner

Hypercare should last for a pre-determined amount of time with resources co-located in a central place

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BUSINESS PROCESS Controlled Start

Continue to execute steps in the cutover plan to monitor systems are functioning as expected

Monitor business metrics to ensure issues are found and resolved quickly

Follow issue escalation processes in place with the support teams Work with technical teams to rank and prioritize business critical

defects to be fixed


Metric Reporting

Defect & Issue Mgmt

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Time Type Purpose Responsible/Attendees8:00am Report Operations review (i.e. jobs not run, etc) IT Ops Lead, IT SE Lead9:00am Meetin

gEmergency incident review- Close incidents and changes from prior day- Call out significant incidents remaining open

Cutover Lead, IT Ops Lead and Prod Services Lead, IT Director, IT SE Lead

9:30am Meeting

Key Incident/Defect Review- Review key incidents/defects and prioritize

Cutover Lead, IT SE Lead, Business Leads

3:00pm Report Business metrics complete- Send business metrics for the day to

cutover leads

Metrics report lead, Metric owners

4:30pm Meeting

Business Impact review- Review Business Metric report

(including incident/defect metrics)- Review PMO escalation list

Cutover Lead, IT Director, Business Owners, PMO

8:00pm Report Operations review (i.e. jobs not run, etc) IT Ops Lead, IT SE Lead

All meetings to be 30 minutes in duration !!

Example - Daily Status Activities in Hypercare

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Example - Business Metrics Reporting for Order to Cash cycle

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BT Phase 3 Metrics Dashboard - all results show prior day activity Wed Thu

KPI #

Status Process Owner Metric Metric Assigned

Pre Go-Live Baseline

Criteria for Yellow Criteria for Red 9/1 9/2

2 G Total number of lines for SOAs and Stock Reserves

Murphy 43000 Decrease between 15% and 30% from baseline

Decrease of more than 30% from baseline

36,285 26,493

3 G ACENET transaction failures (measure of errors)

Zeman 3.89% Between 10% and 25% higher than baseline

More than 25% higher than baseline

4.86% 4.70%

5 G Number of sales order idocs into SAP Janke 100% 100% 100%6 G Number of sales order in queue (not sent to

WMS yet)Janke 0 0

7 G Percent of orders on credit block (Numbers of orders on credit block / total number of orders daily)

McCue < 10% 10% to 15% > 15% 3.3% 3.1%

8 G DMPS Start Time Oh 6:45 PM NA Later than 6:45 PM 6:45PM 6:45PM

R DMPS Run Time(Delivery Creation through BOS)

Oh 3.0 Hours NA More than 3.75 Hours 2.0 Hrs 3.25 Hrs (RE)

8 G DMPS Start Time Oh NA Later than 7PM 6:45PM 6:45PM


Oh 3.0 Hours NA More than 3.75 Hours 3.25 Hrs (RE)

4.25 Hrs (RE)

8 G DMPS Start Time Oh NA Later than 7PM 6:45PM 6:45PM


Oh 3.0 Hours NA More than 3.75 Hours 2.75 Hrs 3.25 Hrs (DC)

14 G PGI percentage Janke 100% 98% 95% 97.92% 98.9115 y ASNs Failure - ALL types Janke 100% 98% 95% 564 18316 R Invoice Failure (AP Net to retailers) Janke 100% 2 4 14,922 7,653 17 Number of invoices not posted Smith 0% > 0% > 0% 18/1445 225/1642

24 G Total ACCC Interactions Zeman Varies by day Between 25% and 50% greater than baseline

50% greater than baseline

113% 129%

26 R Total ACCC Service Level Zeman Team Goal 85% or >

Between 85% and 75% less than 75% 85% 82%

28 R Total ACCC Abandoned Rate Zeman Team Goal 8% or <

Between 8% and 12% greater than 12% 9% 11%

#3 WMS & Inventory

WMS DirectorPrescott Valley

#1 RetailRetail Tech

Director

#2 Process Order

Order Mgmt & Credit Directors

#4 PGIOrder Mgt

Director#5 Accounts Receivable

A/R Director

#3 WMS & Inventory

WMS DirectorSacramento#3 WMS & Inventory

WMS DirectorMoxee

#7 SupportKlaus

Example - Metric results for Order to Cash cycle

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TECHNICAL IMPLEMENTATION Technical Components

Continue to execute steps in the cutover plan to monitor systems are functioning as expected

Follow issue escalation processes in place with the support teams Manage defects and implement fixes in a controlled manner (follow

release management processes to ensure controls are followed)


Defect & Issue Mgmt

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ORGANIZATIONAL TRANSITION Cutover Management

Continue to validate steps in the cutover plan are being executed to monitor systems are functioning as expected

Co-locate the project team to a central location to expedite reaction time to issues (WAR ROOM)

Monitor issues and risks Follow issue escalation processes in place with the support teams Status reporting and communications to all impacted staff

Change Management Follow up with End Users, provide sandboxes for ongoing training End User Training and communications



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Agenda

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Key Take Aways

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BUSINESS PROCESS

Certification of new Business Process

Business Shutdown

Controlled Start

TECHNICALIMPLEMENTATION

Technical Components

Time Installs to new Business Process

Contingency plans

ORGANIZATIONALTRANSITION

Training

Change ManagementACE’

S CU

TOVE

R FR

AMEW

ORK

Using a disciplined project management method to implement SAP systems should lead to a boring Go Live and Hypercare

Early strategic plans

Detailed cutover plans

Cutover time period(s)


User Access and IT Controls

Cutover Management

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Key Take Aways

These methods can be applied to any project Cutover management is a project within itself War room tactics are critical to success during the

implementation Stick to the Plan No Cowboys

A controlled business start is critical to success immediately after implementation

A controlled process to manage defects and business issues is critical to success for the months and years after implementation

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Questions?

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] Thank you.

Getting to the Finish Line: How to Increase Your Chances of Success When Turning on Your New SAP...

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