Impact of SAP Implementation on Org Structure
description
Transcript of Impact of SAP Implementation on Org Structure
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The Impact of SAP
Implementation on
Organizational Structures
Yousef Ahmed Al-Sharif
IT, Section Head,SAP
Sipchem, Saudi Arabia
10 March 2009
SUG-MENA 2009, March 9-11
Manama, Bahrain
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1. SAP importance as one of the leading edge ERP
2. SAP sustainability in our organization?
3. Model of typical Organizational structure (Hierarchy)
Normal Functional model
Shared Services model
Shared Services model with SAP Business Owners and Users committees
4. Real Pains!
5. Possible Org Structure model to combat drawbacks
6. Possible jobs, Functions and its related responsibilities
7. RESULTS AND DISCUSSION of some of the hypothetical studies
8. A Recommendation to SAP AG
Agenda
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The Focus How to make SAP a
successful implementation?
The talk now is the Cost
How to sustain it and best utilize it?
In this economic downturn, business is slow everywhere. Customer-service specialists have fewer customers to serve. Product
designers are seeing their project portfolios shrink. Computer
programmers are spending fewer hours writing code.
If you're in a similar position in your unit, don't let downtime become
wasted time. Use it to work intensively and deliberately on
strengthening your managerial knowledge and skills.
Practice will pay off in the long run -- if you do it right. Apply these
principles
Make it a habit. Then, when it's time to perform for real (delivering a presentation, conducting a performance review),
you won't feel the pressure.
Experiment with making small changes that add up. Get feedback (for example, from a trusted peer) on whether you're actually improving.
--- Harvard Business Publishing
Crisis Yields Opportunities
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Business Units Integration.
Business Process Control
Productivity
The Focus now is: How to sustain the
implementation?
Key Benefits of SAP
SD
MMPP
QM
PMHR
FI
CO
AM
PSIM
IS
SAP R/3
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Agenda
1. SAP importance as one of the leading edge ERP
2. SAP sustainability in our organization?
3. Model of typical Organizational structure (Hierarchy)
Normal Functional model
Shared Services model
Shared Services model with SAP Business Owners and Users committees
4. Real Pains!
5. Possible Org Structure model to combat drawbacks
6. Possible jobs, Functions and its related responsibilities
7. RESULTS AND DISCUSSION of some of the hypothetical studies
8. A Recommendation to SAP AG
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Questions?
Is there any risk in regard to
the system sustainability?
Are we facing problems in
day to day operations?
Bu
sin
ess P
ro
ce
ss
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Questions?
Have we considered the
existing Org Structure after
SAP implementation?
How are We satisfied?
G. Manager
Finance IT HR
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Key Sustainability Components!
Technology
Business
People
Resources Request
SAP System
Business Processes
People
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Agenda
1. SAP importance as one of the leading edge ERP
2. SAP sustainability in our organization?
3. Model of typical Organizational structure (Hierarchy)
Normal Functional model
Shared Services model
Shared Services model with SAP Business Owners and Users committees
4. Real Pains!
5. Possible Org Structure model to combat drawbacks
6. Possible jobs, Functions and its related responsibilities
7. RESULTS AND DISCUSSION of some of the hypothetical studies
8. A Recommendation to SAP AG
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Model of Typical Org Structure
Same Organizational Structure Before & After SAP Implementation
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Shared Services Concept
President
Shared Services
IT FINANCE HR
Production Department
Plant A
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SAP Steering
Committee
SAP
Business
Owner
SAP Power
User
SS Structure +SAP committees
Main Responsibilities:
First Line Support
Main Responsibilities :
Approve Business
processes changes
Main Responsibilities
Guide the SAP
future at the
organizaiton
If such committees & group are not reflected officially in the Organizational
Structure, the burden will be on IT department
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Agenda
1. SAP importance as one of the leading edge ERP
2. SAP sustainability in our organization?
3. Model of typical Organizational structure (Hierarchy)
Normal Functional model
Shared Services model
Shared Services model with SAP Business Owners and Users committees
4. Real Pains!
5. Possible Org Structure model to combat drawbacks
6. Possible jobs, Functions and its related responsibilities
7. RESULTS AND DISCUSSION of some of the hypothetical studies
8. A Recommendation to SAP AG
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Impact of the typical Org Structure after SAP
(Real Pains)
Business Processes
Integration & coordination
User Involvement & Training
Support & Enhancement
SAP Utilization
PurchasingMaterials
Management
Production
R&D
Sales
Requests
Pain: User turnover and the need for
proper training
Pain: Who should
do the test and
verify?
Pain: Coordination
between functions
like payroll &
finance, Material
master & other
master data admin
Pain: Big resources needed for
the support & Enhancements has
no single owner
Pain: limited use of SAP best
practice, Diversion from base
configuration
Implications: People (IT,
Business)as a resource need
to make a lot of efforts to
coordinate the integration
Implications:
Backlog increase
Implications: People from IT
department will bear the burden
to call the business owners,
functional managers to max
utilization
Implications: IT People will
lose focus on system
Implications: IT people to take the responsibility
Changes?
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Preparation Blue Print RealizationFinal
PreparationGo-Live & Support
Change Management Role
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1. SAP importance as one of the leading edge ERP
2. SAP sustainability in our organization?
3. Model of typical Organizational structure (Hierarchy)
Normal Functional model
Shared Services model
Shared Services model with SAP Business Owners and Users committees
4. Real Pains!
5. Possible Org Structure model to combat drawbacks
6. Possible jobs, Functions and its related responsibilities
7. RESULTS AND DISCUSSION of some of the hypothetical studies
8. A Recommendation to SAP AG
Agenda
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Technology Job design factors Ability and skill
Organization design
factors
Dimensions of
organization
structure:
1.Formalization
2.Complexity
3.Centralization
Organizational
effectiveness:
1.Production
2.Satisfaction
3.Efficiency
4.Adaptiveness
5.Development
6.Survival
Managerial decisions:
1.Division of labor
2.Departmental
bases
3.Departmental
size
4.Delegation of
authority
Technology
Environmental
uncertainty
Strategy
Managerial
choice
Task requirements
Technology as an important Factor
Possible Org Structure & Job design
Fig.1 Organizations:Behavior,Structure,Process by J.Gibson
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Task
factors
Job
analysis
Job
design
Perceived
Job content
Job
performance
Human
factors
Technological
factors
Individual
differences
Social setting
differences
Fig.2 Conceptual Model of Job Design & Job performance by J.Gibson
Job Responsibilities
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Business Analyst Job
SAP Section or Department?
Possible Org Structure & Job design
System Utilization Department
SAP Competency Center
SAP Training Unit
Power User, Key User Job
Business/Process Owner Job SAP Trainer Job
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SAP Org Structure Fit
Process User Data
Bu
sin
ess
Pro
ce
ss
x
Z A B
Y
SDMM
PP
QMPM
HR
FICOAM
PSIM
IS
SAP R/3Fit
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1. SAP importance as one of the leading edge ERP
2. SAP sustainability in our organization?
3. Model of typical Organizational structure (Hierarchy)
Normal Functional model
Shared Services model
Shared Services model with SAP Business Owners and Users committees
4. Real Pains!
5. Possible Org Structure model to combat drawbacks
6. Possible jobs, Functions and its related responsibilities
7. RESULTS AND DISCUSSION of some of the hypothetical studies
8. A Recommendation to SAP AG
Agenda
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Hypothetical Studies*
SAP system will affect organizations & improve those areas that are
tied to organizational effectiveness measures related to IP model
SAP system will affect organizations & improve those areas that are
tied to organizational effectiveness measures related to RG model
A successful implementation of ERP system has to be followed by organizational changes efforts that will improve org effectiveness associated to HR model
A successful implementation of ERP system has to be followed by organizational changes efforts that will improve org effectivness associated to OS model
ER
P S
yste
m I
mp
act
on
Org
an
izati
on
s
IP model
RG Model
HR Model
OS Model
IP:Internal Process, RG:Rational Goal, HR:human Relations, OS:Open System
*Study by Jonas Hedman & Andreas Borell 2003
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SAP to consider the org structure & Job design options as part of best practises
packages.
Recommendations for SAP AG
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Thank you!