Proposal for SAP Solution (Final) REDACTED

ISiS Partnership Proposal for SAP Solution

Variant Bid Volume 2

Section C 3

28th November 2006

Proposal for SAP Solution

IBM Response to ISiS ITN Volume 2 – Section C3

IBM Confidential


Key messages Your ambition is that the partnership will invest in “world class” technologies.

SAP is a truly “world class” application that can underpin the ambitions of ISiS, including the growth objectives of the JV.

TDBC needs to replace their systems, and this short term requirement could be accommodated by migrating to Cedar and Trent, but this approach is challenged by the wider ISiS objectives.

We believe that starting an SAP implementation will address the short term issues of the Councils and begin the journey to delivering ISiS ambitions.

Highlights of our approach Creation of a “back office” integrated system which enables the wider

transformation agenda by:

Developing “best practice” processes that deliver efficiency gains;

Delivering a tailored system to support these processes and assist with compliance to them;

Giving employees opportunities to develop careers around the new systems and processes;

Addressing some of the current issues that you have highlighted to us, like reporting across systems and enabling self service; and

Integrating with the Customer Access ambitions of ISiS.

How you will benefit Improved service delivery

Current system issues are addressed – bespoke systems replaced, improved reporting across systems

Ability to drive out efficiency savings enabled – self service implemented and interfacing reduced

Employees freed from transaction processing activity, with more time to focus on value adding/advisory activities


IBM Confidential


Shared Services and SAP at a glance . . .

Delivering “best practice” processes and world class systems capable of continuous

improvement

Why is this important to Taunton Deane and Somerset?

Key, Up front messages

There is little justification for the Councils having different processes and systems in those areas where the transactional and support services provided are essentially the same. There are benefits to be had by standardising processes and sharing support services.

The drive towards best practice and reducing the cost of transaction processing means re-designing processes, increasing automation and adopting new ways of working. There are “world class systems” that can support this journey. We propose to implement SAP.

We propose to introduce widely recognised “world class” systems that will support both Taunton Deane Borough Council and Somerset County Council in the move to these new ways of working as well as the wider ambitions of ISiS.

By improving transactional services, employees will have more time to focus on value adding/ advisory activities.

Context: The Councils are both “good” in “use of resources”. The systems used by both Councils have contributed to their achievements so far. Both councils aspire to be “excellent” in the “use of resources.” However, budget constraints, central government directions and rising customer expectations create a need for modernising, improving and reducing the costs of transactional and support services.

What’s our compelling idea?

What outcomes are we striving for?

What we do to make this happen?

1

2

3

4

TheBig Idea

A performance culture

“Best Practice”transaction processes

• Deliver improved processes on an “end to end” basis. This work will be based upon work done in both Local Government and in other sectors

• Benchmark the processes against “best practice”using our experience of other public and private sector implementations

• Test redesigned processes with users to ensure that they are suitable for the shared services

• Ensure that the principle of standardisation is adopted where there is no business case for adopting non-standardised processes

• Implement the appropriate modules from SAP R/3 based on work done in Local Government and other sectors to ensure the approach to transaction processing is fully automated

• Extend the SAP “footprint” to replace as many legacy systems as possible. This will increase automation and reduce integration costs

• Adopt SAP as standard and only use other systems or bespoke developments where there is a business case for doing so

• Use the combined research and development capability of both IBM and SAP to ensure continuous improvement of the SAP system and system integration

• Develop a Service Level Agreement for the provision of shared services and deliver to this level of performance

• Use the information available from an integrated SAP system to create better performance management information for both Councils

• Ensure that the business cases for improving the systems and process are fed into the change management programme and continuous improvement becomes a norm

• Develop and extend the support servicesoffered to other organisations and thereby continue to reduce the overheads of the shared service centre

• Deliver the training materials and training management required to migrate people to the new ways of working

• Support not only those migrating to the new ways of working, but also support those remaining in the “legacy”organisation with the change

• Develop an organisation structure for transaction processing that supports the new ways of working

• Recruit people for the new roles in the shared services centre – this may mean re-training staff or recruiting new staff.

A system tailored to support new processes

People adopting the new ways of

working


Delivering “best practice” processes and world class systems capable of continuous

improvement

Why is this important to Taunton Deane and Somerset?

Key, Up front messages

There is little justification for the Councils having different processes and systems in those areas where the transactional and support services provided are essentially the same. There are benefits to be had by standardising processes and sharing support services.

The drive towards best practice and reducing the cost of transaction processing means re-designing processes, increasing automation and adopting new ways of working. There are “world class systems” that can support this journey. We propose to implement SAP.

We propose to introduce widely recognised “world class” systems that will support both Taunton Deane Borough Council and Somerset County Council in the move to these new ways of working as well as the wider ambitions of ISiS.

By improving transactional services, employees will have more time to focus on value adding/ advisory activities.

Context: The Councils are both “good” in “use of resources”. The systems used by both Councils have contributed to their achievements so far. Both councils aspire to be “excellent” in the “use of resources.” However, budget constraints, central government directions and rising customer expectations create a need for modernising, improving and reducing the costs of transactional and support services.

What’s our compelling idea?

What outcomes are we striving for?

What we do to make this happen?

1

2

3

4

TheBig Idea

A performance culture

“Best Practice”transaction processes

• Deliver improved processes on an “end to end” basis. This work will be based upon work done in both Local Government and in other sectors

• Benchmark the processes against “best practice”using our experience of other public and private sector implementations

• Test redesigned processes with users to ensure that they are suitable for the shared services

• Ensure that the principle of standardisation is adopted where there is no business case for adopting non-standardised processes

• Implement the appropriate modules from SAP R/3 based on work done in Local Government and other sectors to ensure the approach to transaction processing is fully automated

• Extend the SAP “footprint” to replace as many legacy systems as possible. This will increase automation and reduce integration costs

• Adopt SAP as standard and only use other systems or bespoke developments where there is a business case for doing so

• Use the combined research and development capability of both IBM and SAP to ensure continuous improvement of the SAP system and system integration

• Develop a Service Level Agreement for the provision of shared services and deliver to this level of performance

• Use the information available from an integrated SAP system to create better performance management information for both Councils

• Ensure that the business cases for improving the systems and process are fed into the change management programme and continuous improvement becomes a norm

• Develop and extend the support servicesoffered to other organisations and thereby continue to reduce the overheads of the shared service centre

• Deliver the training materials and training management required to migrate people to the new ways of working

• Support not only those migrating to the new ways of working, but also support those remaining in the “legacy”organisation with the change

• Develop an organisation structure for transaction processing that supports the new ways of working

• Recruit people for the new roles in the shared services centre – this may mean re-training staff or recruiting new staff.

A system tailored to support new processes

People adopting the new ways of

working


IBM Confidential



How will we make this happen?

We will work with both Councils to deliver improved processes, an integrated ERP system and a shared service environment.

What else? The use of methodologies and related experience helps to reduce the risk of an implementation and also helps to speed up implementations since it reduces the need to “reinvent the wheel”.

The use of a “world class” ERP software supplier like SAP will ensure that the application has sufficient investment in its research and development to meet the current and future aspirations of ISiS.

The use of a “world class” ERP software supplier like SAP also provides opportunities for “office systems”integration (like Microsoft Office) as well as “back office” integration (including applications like SWIFT).

Shared services and the use of SAP will create employment opportunities for existing staff. It will also create roles that will be attractive to other employees currently working in this environment in different parts of the UK.

1

2

3

We will make this happen by adopting the relevant parts of our of our methodologies for business process re-engineering, SAP implementations and Share Service implementations.

HBS have wide experience of using a “Lean” methodology for redesigning processes within Local Government.

IMB have wide experience of using both its Ascendant SAP implementation methodology and its Shared Services methodology.

We will make this happen by running projects to improve processes, integrate systems and establish shared services in parallel as part of the project activity following “transition”. The schematic below broadly describes the approach:

1

2

3We will make this happen by making sure that the key interdependencies with the rest of the change programme are documented and managed – i.e. the interdependencies with the creation of a business centre to locate shared services, the upgrading of the infrastructure to support new systems and ways of working, the implementation of a SAP CRM system and the need to continue to deliver support services whilst this project activity is undertaken.

We will make this happen by phasing the “roll out” of SAP functionality and “rolling in” parts of the Councils to the share service centre.

We will make this happen by ensuring that there is appropriate governance of the changes to the design of the systems and processes over time to ensure that service levels are not undermined and sub-optimal processes are not adopted.

4

5

4

Start with consolidation/ standardisation within ISiS

Efficient Delivery of In Scope

Services

Enterprise WideTransformation

Social and Economic

Development

Improved public services through

multi agency Working

Creating Shared Services within ISiS:• Finance and Procurement• HR and Payroll• Property transactionsOnce created, adopting continuous improvement

Extending Shared Services offering:• To other parts of the Councils• To other Councils in the region• To the wider public/voluntary sector

Developing Shared Services offering:• Attracting business from outside the region

Enabling Efficiency & Modernisation

Extend to other parts of the Councils and the wider public sector

Extend to other sectors/regions



Services


Social and Economic

Development










Services


Social and Economic

Development










How will we make this happen?

We will work with both Councils to deliver improved processes, an integrated ERP system and a shared service environment.

What else? The use of methodologies and related experience helps to reduce the risk of an implementation and also helps to speed up implementations since it reduces the need to “reinvent the wheel”.

The use of a “world class” ERP software supplier like SAP will ensure that the application has sufficient investment in its research and development to meet the current and future aspirations of ISiS.

The use of a “world class” ERP software supplier like SAP also provides opportunities for “office systems”integration (like Microsoft Office) as well as “back office” integration (including applications like SWIFT).

Shared services and the use of SAP will create employment opportunities for existing staff. It will also create roles that will be attractive to other employees currently working in this environment in different parts of the UK.

1

2

3

We will make this happen by adopting the relevant parts of our of our methodologies for business process re-engineering, SAP implementations and Share Service implementations.

HBS have wide experience of using a “Lean” methodology for redesigning processes within Local Government.

IMB have wide experience of using both its Ascendant SAP implementation methodology and its Shared Services methodology.

We will make this happen by running projects to improve processes, integrate systems and establish shared services in parallel as part of the project activity following “transition”. The schematic below broadly describes the approach:

1

2

3We will make this happen by making sure that the key interdependencies with the rest of the change programme are documented and managed – i.e. the interdependencies with the creation of a business centre to locate shared services, the upgrading of the infrastructure to support new systems and ways of working, the implementation of a SAP CRM system and the need to continue to deliver support services whilst this project activity is undertaken.

We will make this happen by phasing the “roll out” of SAP functionality and “rolling in” parts of the Councils to the share service centre.

We will make this happen by ensuring that there is appropriate governance of the changes to the design of the systems and processes over time to ensure that service levels are not undermined and sub-optimal processes are not adopted.

4

5

4



Services


Social and Economic

Development











Services


Social and Economic

Development










Services


Social and Economic

Development










IBM Confidential


IBM Confidential


Table of Contents

1 ................................................................................................... 1 Introduction

2 .......................................................................... 3 Description of SAP Project

3 ................................................................................... 4 Scope of SAP Project

3.1 ...................................................................................... 4 Functional Scope3.2 ........................................................................ 5 Specially Written Software3.3 ......................................................................................... 5 Data Retention3.4 ...................................................................................... 5 System Cutovers3.5 .......................................................................................... 5 Data Migration3.6 ................................................................................ 6 The User Experience

4 .................................................................................... 8 Previous Experience

4.1 ................................................................................. 8 Previous Experience

5 ................................................................................ 9 Approach and Methods

5.1 ............................................................... 9 Approach, tools and techniques5.2 ......................................................... 9 Plans for the Delivery of this Project5.3 .......................................... 9 The Responsibility Matrix – In Scope Service5.4 ............................... 16 The Responsibility Matrix – “Out Of Scope” Service

6 .......................................................................................... 18 Cultural Change

6.1 ................................................... 18 SAP’s Contribution to Culture Change

7 ....................................................................................................... 20 Training

7.1 ......................................................................... 20 Background and context7.2 ................................................................... 20 How do we make this work?7.3 ............................................................ 20 Assumptions and Dependencies7.4 ................................................................... 21 Key Performance Indicators

8 .................................................................... 22 Link to Wider Transformation

8.1 ............................................................................. 22 Wider Transformation

9 ....................................................................................................... 24 Benefits

9.1 .................................................................................................. 24 Benefits


1 Introduction During the ISiS procurement process we have met with many Officers and Members from both Somerset County Council (SCC) and Taunton Deane Borough Council (TDBC).

Our analysis would suggest that:

The “back office” functions are performing well, are well respected, and appreciated by the Directorates/Headships – this is reflected in the “good” score for “use of resources”;

The short term issues for TDBC’s bespoke systems are very different to those of SCC – TDBC have a short term need to replace systems;

The approach to “back office” systems adopted by the County Council has been very successful;

There are a range of systems currently implemented, and being extended by SCC; and

Reporting across these systems is an issue.

This analysis is set against the backdrop of ISiS objectives designed to transform SCC and TDBC into “strikingly modern and progressive organisations”.

Our “standard bid” takes a practical and incremental approach to these problems:

Solving TDBC’s short term system problems by migrating to SCC’s Cedar system;

Using process improvement techniques to change the way that the Council’s work; and

Using these systems and processes to support shared service functions.

The approach in our “standard bid” consolidates around existing best practice within the Councils and uses existing systems.

However, this approach is not fully consistent with the ambition to:

Really transform the workings of the Councils in the manner expressed by the ISiS programme; and

Invest in “world class” technologies.

This proposal, as part of our “variant bid”, has all of the advantages of our “standard bid”, but creates a new, highly integrated approach to “back office” systems. In proposing to implement SAP we intend to invest in a “world class” system that has the full capability to support the aspirations of ISiS over the long term. The “end state” of our variant bid is to have consistent best practice processes supported by one integrated “back office system”, namely SAP. This will support the ISiS objectives of:

Improving delivery of customer facing services (via the integration with SAP CRM being implemented as part of our Customer Access proposal in the “standard bid”);

Modernising and reducing the costs of corporate transactional support services; and

Investing in world class technologies to improve productivity.


IBM Confidential Page 1


The benefits of the “variant bid” are covered below, but some of the other outcomes are:

Basing the ISiS partnership on a ERP vendor that has the resources to “future proof” its product;

Basing the ISiS partnership on a system that is capable of supporting our business development ambitions; and

Implementing a tool that is capable of fully underpinning the procurement transformation.

What follows in this document is:

A description of the project – what will be achieved over what period, reflecting the current issues faced by TDBC (immediate need to replace bespoke systems) and SCC (recently implemented Trent Payroll systems);

An illustration of our previous experience – highlighting the link between SAP and a shared service centre implemented for a County Council;

A description of our approach – using previous experience to accelerate the implementation and reduce the risk;

Culture Change – linking system changes to wider aspects of changes in people’s behaviour.

The links to the wider transformation objectives of ISiS – analysing the impact of this project across the stated objectives of ISiS; and

The benefits – illustrating the benefits achieved by similar implementations as well putting SAP in context with current systems and objectives.




2 Description of SAP Project The SAP project forms the “back bone” of the ISiS objective to modernise, reduce the cost of and improve corporate, transactional and support services.

The SAP project achieves this by:

Redesigning “back office” processes in accordance with best practice;

Implementing “world class” software; and

Optimising the efficiency gains derived from implementing an integrated system.

The functional areas covered by this project include:

Finance;

Procurement;

Human resources;

Payroll; and

Property.

The project involves designing one SAP system for the Councils and then rolling out this functionality for both Local Authorities. The broad plan is illustrated below:

June

07

Go-Live 5

Go-Live 4

Go-Live 3

Go-Live 2

Go-Live 1

Stage 3:

Business Blueprint

Stage 2:

Project Preparation

Stage 1:

Evaluation

September

09

June

09

March

09

December 08

September

08

June

08

March

08

December

07

September

07

Quarter Ending

June

07

Go-Live 5

Go-Live 4

Go-Live 3

Go-Live 2

Go-Live 1

Stage 3:

Business Blueprint

Stage 2:

Project Preparation

Stage 1:

Evaluation

September

09

June

09

March

09

December 08

September

08

June

08

March

08

December

07

September

07

Quarter Ending

Review Business Case – Aug 07

Establish Project Framework – Sept 07Establish Project Framework – Sept 07

Complete Design – Dec 07Complete Design – Dec 07

Go-Live with General Ledger, and part of HR – April 08

Go-Live with remainder of Financials/HR – Oct 08

Go-Live with Payrolls at the end of the implementation in three tranches –Pensions (April 09), Officers (July 09) and Teachers(October 09)

Figure 1: Illustrated SAP plan

The payroll implementation is slightly later than a usual Local Authority implementation, but this broad plan has been created in this way to reflect the recent Go-Live of Trent Payrolls.




3 Scope of SAP Project

3.1 Functional Scope

The functional scope of the SAP implementation will cover:

Milestone Deliverables

General Accounting – The General Ledger, Accounts Payable, Accounts Receivable

Budgeting

Personnel Administration

Training Administration – Pilot

Organisation Management

Standard Reporting

First Go Live

Portals - Employee Self Service, Manager’s Self Service (Integration)

Income – Debtors and Sundry Debt Management

Procurement and e-Procurement (Catalogues)

Bank Reconciliation

Fixed Asset Accounting

Property Management

Premises Management

Asset Management& Planning

Property Acquisition & Disposals

Maintenance Management

Portals – Timesheet (Integration)

Second Go Live

Human Resources :Recruitment, Appraisal Administration, Absence Monitoring, Salary Planning, Compensation Planning, Benefit eligibility, Employee Asset Recording, Employee Self Service – roll out, Manager Self Service – roll out

Third Go Live Payroll – Pension

Fourth Go Live

Payroll – Officers

Fifth Go Live Payroll – Teachers

The functional scope as described above will be delivered using the configurable parts of standard SAP products and modules. Any bespoke developments required will be delivered using SAP tools (like ABAP and SAPScript).

The above approach to configuration and development is one that has been employed widely in Local Government, and we believe would meet the requirements of the Councils. One in three County Councils in the UK use SAP, as well as other public sector bodies including Police Authorities, and therefore we believe that the above approach will also meet the longer term objectives of the ISiS programme.




3.2 Specially Written Software

At this stage it is difficult to estimate the need for any specially written software. There may be a requirement to adapt SAP beyond standard configurable system changes. Bespoke developments will be used to enhance the standard SAP system using a pooled approach to resources. Within our proposal a pool of 850 consultancy days will be created and used to deliver a prioritised list of interfaces, bespoke developments and workflows. This list will be agreed with the Councils, HBS and Mouchel Parkman. This approach has been adopted to ensure that there is sufficient resource to deliver a range of developments and provide a flexible approach to managing the required resources.

3.3 Data Retention

We will address the issues facing the Council’s through an Archiving and Data Management Strategy and a data retention roadmap that will be formulated at the blueprint stage of the SAP implementation. The strategy will critically take into account guidelines laid down by the Local Government Group of The Records Management Society of Great Britain.

Taking into account the areas of Data Protection, Freedom of Information and the Local Government Act, we will produce an archiving and data management strategy that will allow the Council to store data for an amount of time decided upon by its function within the Council.

Initially we will provide a simple solution that utilises On Demand Storage that can be scaled to appropriate requirements. We would expect around three years’ data to be held on the database i.e. last year, this year and next years plans.

Archiving options, however, can be much more sophisticated and the Archiving and Data Management Strategy will consider options including optical archiving and the dynamic archiving of completed objects.

3.4 System Cutovers

A cut-over is defined as ‘the point at which the application is made available to the intended users”.

Our approach assumes a phased approach (see table above) with a number of go-lives. We have assumed that there is a single cut over at each go-live, i.e. all users intended to use the functionality cut over at this point.

By way of example we have assumed that the General Ledger will be in the first “Go-Live” in April 2008. This is defined as a single cutover point for the whole user base, i.e. including Somerset County Council and Taunton and Deane Borough Council

3.5 Data Migration

For High-Volume Business Critical Data we propose to use SAP standard file layouts to migrate data into SAP from legacy systems. The advantage of this approach is that the file layouts are supported by SAP and that all relevant, connected internal tables are correctly populated in the database.

The general principle for data migration is that we propose is that the Councils, HBS and Mouchel Parkman will be responsible for the extraction of data from




legacy systems and the formatting of that data into the text file format used by the relevant SAP standard program. IBM’s responsibility will then be to test the upload and report details of the hit-rate and reason for failures back to the Council’s, HBS and Mouchel Parkman. This iterative process continues until the hit-rate reaches the pre-defined acceptance level and the data is migrated.

For Low Volume data IBM and the implementation teams are likely to be responsible for data migration. Often this is carried out using an upload utility. This utility records an SAP transaction and creates an upload spreadsheet.

3.6 The User Experience

The above describes the SAP project from a technical/functional point of view. However, it is important to follow this through and bring this to life from a user perspective. There are ranges of ways in which SAP could impact the user, and this will be different depending on whether this is a SCC or TDBC user. However, to bring our project deliverables to life here we have focused on one illustration.

One of the important outcomes that we would expect to be facilitated by this proposal is employee self service (ESS). ESS is an important part of the efficiency gains and process re-engineering that we would expect to deliver to the Councils.

So for example we would expect employees to be able enter their own leave requests and time sheets on to SAP. The following illustrates the screen that could be used:

Figure 2: ESS Screen

The above screen is dependent on portal functionality as well as “back office” functionality, as described above. But the principles here are that:

One integrated system is used for timesheets;




The system supports standardised processes; and

Self service is a means of driving out efficiencies by avoiding paper processes and double handling of data.

In doing this we would be both joining up and modernising transaction processing.




4 Previous Experience

4.1 Previous Experience

Both IBM and HBS have extensive SAP implementation experience over a range of sectors. A full list of the Local Government SAP implementations can be provided if required. However, here are two examples of implementing SAP:

REDACTED SECTION (41) – THIRD PARTY INFORMATION SUPPLIED IN CONFIDENCE




5 Approach and Methods

5.1 Approach, tools and techniques

For projects of this scale and complexity it is important to adopt a tried and tested method. We therefore propose to use our Ascendant® methodology. This is more fully described in our Redesigning Transactional Service Delivery method statement (See Volume 2 Section C 6)

5.2 Plans for the Delivery of this Project

Up until the Business Blueprint phase the project will follow a consistent milestone path:

The “evaluation phase” will be completed by August 08;

The “preparation phase” will be completed by September 08; and

The “business blueprint” phase will be completed by December 08.

Thereafter each work stream will follow a different path for the remaining phases of our method in meeting the following “go-live” programme:

Milestone Deliverables

First Go Live

April 2008

See above for deliverables

Second Go Live

October 2008


Third Go live

April 2009


Fourth Go Live

July 2009


Fifth Go Live

Oct 2009


The phased approach to the SAP “go-lives” is proposed in order to manage the risk of the implementation and smooth the amount of project activity/resources required to deliver back office systems. It should however be noted that this is longer than a standard implementation timetable for the same level of functionality in a Local Authority. This is because the payroll elements of the implementation have been deferred until the end of the programme in recognition of the recent “Go-Lives” on the Trent/Midland payroll system and the proposed migration of TDBC to this system.

5.3 The Responsibility Matrix – In Scope Service

In meeting the above timetable above there needs to be a clear understanding of who is responsible for what task. This is important as the overall objective here is to ensure that the service delivery under ISiS is not compromised by the SAP




implementation. In the responsibility matrix below therefore we have separated out the responsibilities of the “ISiS Operating Team” and the “ISiS Project Team”:

The ISiS Operating Team are those staff working in the Joint Venture (i.e. from SCC, TDBC, IBM, HBS and Mouchel Parkman) delivering the “in-scope” services;

The ISiS Project Team are those staff working in the Joint Venture (i.e. from SCC, TDBC, IBM, HBS and Mouchel Parkman) delivering the project defined in the Business Blueprint.

The broad responsibilities of these two groups are described below:

Responsibility Matrix

Phase/Task ISiS Operating Team Responsibilities

ISiS Project Team Responsibilities

Phase 1: Evaluation

Business Case Review

Provide data and resources to review the project costs and benefits

Prepare a revised business case

Method Adoption Workshop

Provide resources to agree upon the implementation method

Prepare method statement

Phase 2: Project Preparation

Appoint Project Team Provide resources for the project duration.

Provide the lead project resources for the preparation phase. Appoint appropriate skilled resources to join the project as and when required by the subsequent project deliverables.

Fully equipped project room including network connections and access to a shared drive repository.

Provide appropriate access to the building and other working environments. Provide equipped office – i.e. PC’s, network connections etc. Provide office support – i.e. administration. Provide network logons, email facilities, access to shared area.

Hold Event to mark Project Launch.

Book venue. Invite Attendees. Produce presentation material. Present particular “slots”.

Produce presentation material. Present particular “slots”. Facilitate discussions.

Quality Plan Contribute to and Sign Off Quality Plan.

Prepare Quality Plan

Project Plan Contribute to preparation of the Project Plan and on-going update.

Prepare and maintain a milestone plan, programme plan and detailed project plan.

Project Charter

Draft Key Sections. Contribute to completion. Sign-off Charter. Identify stakeholders. Circulate

Provide template charter documents, project management methodologies and tools. Conduct Charter







Charter to all interested parties.

workshops. Draft key sections. Advise on its completion.

Install SAP System Provide location for system. Install SAP GUI on project team PC’s.

Prepare system for installation. Complete installation.

Install Ascendant Tool-kit

Provide appropriate Notes server.

Undertake installation.

Train Project Team for Blueprint Phase

Provide some standard Training Material. Attend training.

Prepare training material for SAP training, Ascendant toolset and methodologies. Deliver training. Deliver knowledge transfer.

Initial Risk Register Developed

Contribute to initial risk register.

Prepare initial risk register and tools to monitor.

Stage 3: Business Blueprint

Facilities to conduct process Workshops

Provide suitable venues and facilities for process workshops.

Information about legacy systems

Provide information and/or demonstrations of legacy system functionality.

Business Blueprint Design Process

Provide existing documentation on current business processes. Ensure that appropriate stakeholders attend the design workshops.

Provide the business blueprint design process. Provide material to support business blueprint sessions. Advise on best business practice in Local Government and the Public Sector so as to ensure the agreed Business Case benefits can be achieved. Provide expert advice to review gaps in the solution and make proposals to meet gaps. Document all standard SAP interface file formats being used.

Business Baseline Provide existing/available business baseline materials. Sign-off of the business baseline.

Define Business Baseline contents. Provide appropriate benchmarks to measure benefits against.

Business Blueprint Solution Agreed

Assist in and contribute to new business process design. Provide design decisions in line with the Project Plan. Agree the format of outputs in the business blueprint (Payslips, Purchase Orders, etc.). Sign-off the Business Blueprint.

Lead on the Business Blueprint Design. Oversee the development of the Blueprint and ensure an integrated solution is produced. Express the design in Plain English terms.

Portal Software Installed and linked to Intranet and Lotus Notes

Provide suitable site. Provide trained staff to assist in/learn from the installation. Sign off hardware delivery. Resolve any infrastructure issues –

Lead the initial Portal Design. Manage the installation of the SAP Portal hardware and software. Provide knowledge





i.e. the network. Provide ongoing development and administration of the portal.

transfer.

System Build preparation

Prepare configuration plan.

Data Migration and System Cutover

Recommend SAP standard file formats for high volume business critical master-data.

Stage 4: Realisation

System Build

Undertake configuration. Provide configuration quality control. Maintain and manage SAP clients. Identify and manage resolution of all SAP integration issues. Co-ordinate go-live preparation activities.

Master Data Loaded Cleansing data prior to loading into SAP. Running the programs to upload Master data. Reconciling uploaded data to its legacy sources.

Provide supervision during the Data load.

SAPGUI Loaded Provide standard desktop build PC. User Acceptance Testing of the SAP GUI and Portal user interface. Installing SAPGUI on the Councils’ user PC desktop.

Provide SAPGUI software on CDROM. Instruct the Councils’ staff in SAPGUI installation method.

End to end testing completed

Provide staff capable of testing the system including interfaces. Provide office for system testing. Finalise all test schedules. Draft User Acceptance Test (UAT) scripts. Record all tests included in the programme. Compile a consolidated report on the results of the UAT (i.e. identifying the system changes required). Sign off UAT.

Design end to end testing strategy. Develop end to end testing plan. Provide template for UAT scripts and to capture the results of the system testing.

Interface Development

Extract test data from feeder systems. Provide data in the file format requested for the upload. Run data upload/ interface programs. Reconcile postings.

Manage the design, development and delivery of data upload/ interface programs. Ensure programmes work as required. Assist with reconciliation of postings. Provide on-the-job training on running interface programs.





Stage 5: Final Preparation

Complete System Build

Respond to the consolidated report on the results of the skeleton system testing (i.e. identifying the system changes required). Provide team leaders on configuration areas, support ISiS operating staff in configuration and configure the system. Provide configuration quality control. Maintain and manage clients. Complete prioritised reports.

Reports Developed Provide staff for report development training. Undertake User Acceptance Testing of Reports.

Undertake report development in accordance with the prioritised list in the Business Blueprint.

Roll Out of SAP Software

Undertake software roll-out Ensure that Desktop PC’s meet the minimum required specification for the SAP GUI.

Advise ISiS operational staff on the software roll out.

Wide Area Network Preparation/ testing to enable roll out of service.

User set up and security

Undertake the setting up of users and attachment of appropriate profiles.

Provide guidance material and training in setting up users and security profiles.

User procedures ready

Define the scope of user documentation. Create user documentation.

Provide advice on developing user procedures. Provide user procedure templates.





Prepare and deliver training for “Go-Lives”

Identify accommodation suitable for delivering training. Specify SAP Training needs. Recruit appropriate trainers. Develop training schedule. Administer course attendance, room facilities and printing of course material. Identify and invite staff for training. Agree templates to be used and prepare training documentation. Deliver initial training and training material with controlled revisions to training material Deliver programmed retraining. To monitor non – attendance and ensure that managers are accountable for the impact of non- attendance

Develop and manage SAP training plan. Assist in establishing SAP Training needs. Provide advice on delivering training sessions. Provide template for training material if required, and the ongoing management of this material. Train the SAP trainers. Facilitate post implementation review / evaluation. To provide advice and guidance on the non-attendance of training courses


Extract and cleanse data to be migrated.

Stage 6: Go Live and Support


Run data migration programs. Reconcile migrated data. Jointly migrate low volume data items.

Test the Council’s data prior to upload and report back on success rate. Jointly migrate low volume data items. Assist reconciliation of migrated data.

Conduct final test Provide resources and accommodation for the final testing activity. Conduct and sign off final test.

Provide support to the ISiS operating team in conducting the final tests.

Readiness for Go-live Report

Contribute to readiness report. Sign off readiness report.

Provide template go-live checklist. Prepare readiness report.

Stage 6: Post go-live

Complete rollout to end-users

Provide first line support

Run period end procedures

Decommission replaced Council systems

Completing the phased rollout to end-users in accordance with detailed project plan. Logging and managing first line User enquiries or problems and escalation to the project team during the agreed support period, SAP or hardware supplier as appropriate. Running and testing month and year end procedures and reports. Maintaining and managing all SAP business and technical support internally. ‘Monitoring system performance’ e.g. tune database. Decommissioning of replaced Councils’

Provide on-site post go-live support for one month. Conduct a Post Implementation review with joint team. Handover from implementation team to managed service team.





systems. Preparing and conducting a post implementation. Monitor success of business benefits realisation against defined benchmarks and business case. Handover from implementation team to ISiS operating team.


5.4 The Responsibility Matrix – “Out Of Scope” Service

In implementing a system such as SAP it is inevitable that this will impact on the “out of scope” services. It is also inevitable that this will place responsibilities on the “out of scope” service to provide some resources to meet these responsibilities. Without this level of engagement across the services it is unlikely that this project will succeed.

The broad responsibilities of the “out of scope” services are described below:


Phase/Task Out of Scope Services’ responsibilities

Phase 1: Evaluation

Business Case Review

Provide data and resources to review the project costs and benefits

Phase 2: Project Preparation

Hold Event to mark Project Launch.

Attend project launch to understand the nature, scope and impact of the project.

Stage 3: Business Blueprint

Information about legacy systems

Provide information and/or demonstrations of legacy system functionality.

Business Blueprint Design Process

Provide existing documentation on current business processes. Ensure that appropriate stakeholders attend the design workshop.

Business Baseline Provide existing/available business baseline materials. Sign-off of the business baseline.

Business Blueprint Solution Agreed

Assist in and contribute to new business process design. Provide design decisions in line with the Project Plan. Agree the format of outputs in the business blueprint (Payslips, Purchase Orders, etc.). Sign-off the Business Blueprint.

Stage 4: Realisation

Master Data Loaded Cleansing data prior to loading into SAP. Running the programs to upload Master data. Reconciling uploaded data to its legacy sources.

End to end testing completed

Provide staff capable of testing the system including interfaces.

Interface Development

Extract test data from feeder systems. Provide data in the file format requested for the upload. Reconcile postings.

Stage 5: Final Preparation

Reports Developed Provide staff for report development training and undertaking User Acceptance Testing of Reports

User set up and security

Assist in designing users and attachment of appropriate security profiles.

Prepare and deliver training for “Go-Lives”

Assist in specifying SAP Training needs. Assist in identifying staff requiring training. Assist in monitor non – attendance and ensure that managers are accountable for the impact of non- attendance








Assist in the cleansing of data to be migrated.

Stage 6: Go Live and Support

Conduct final test Provide resources for any final testing activity. Conduct and sign off final test.

Readiness for Go-live Report

Engage in the readiness report.

Stage 6: Post go-live

Post Implementation Review

Engage in the post implementation review.


6 Cultural Change Our culture change method, the “Magic Carpet” is set out below.

Why “magic carpet”?

Efforts to achieve cultural change often rely on a few levers of change. Given the complex nature of personal behaviour, these seldom achieve a lasting result. However, if a coordinated approach is taken with as many levers as can be used, then desired change will ‘get off the ground’, just like a magic carpet. The diagram below illustrates the “magic carpet”:

How a person’s physical and virtual environment shapes their styles of working and modes of interaction

How a person’s physical and virtual environment shapes their styles of working and modes of interaction

How a person is rewarded and

sanctioned

What a person’s objectives are and

how they are assessed

What training a person receives and whether the

content is placed in behavioural context

How a person is engaged in communication and whether behavioural

aspects of the message are covered

What types of person people see being

recruited and promoted

How a person’s role is defined, and work reporting lines &

relationships exist

How a person is influenced by the behaviours of

leaders, others they regard highly and peers

What processes, policies and procedures

a person is asked to work with

•Objective

1

•Objective

2

•Objective

3

•Objective

4

•Objective

5

How a person is rewarded and

sanctioned

What a person’s objectives are and

how they are assessed

What training a person receives and whether the

content is placed in behavioural context

How a person is engaged in communication and whether behavioural

aspects of the message are covered

What types of person people see being

recruited and promoted

How a person’s role is defined, and work reporting lines &

relationships exist

How a person is influenced by the behaviours of

leaders, others they regard highly and peers

What processes, policies and procedures

a person is asked to work with

•Objective

1

•Objective

2

•Objective

3

•Objective

4

•Objective

5

Figure 3: The Magic Carpet: 9 levers for culture change

Our People Excellence approach describes this in more detail (See Volume 2 Section A 3).

6.1 SAP’s Contribution to Culture Change

This SAP project contributes towards culture change within ISiS by introducing tools which support efficient processes.

The example given above shows how SAP can assist in “self service” transactions. By giving staff access to such tools and encouraging or requiring staff to use them reduces paper transactions and the re-keying of information required to complete a transaction.

However to truly develop a “self service” culture this tool needs to be considered in the wider context of culture change. The table below considers this wider context using some of the culture change levers referred to above:




Culture change lever SAP project deliverables that will help apply the lever

A person’s objectives, and how they are assessed

Staff roles redefined (including new SAP processes), including objectives focused on an efficient processing of transactions.

What training a person receives, and whether the content is placed in a behavioural context.

Training around new SAP system and processes, providing input on: How things are changing Why they are changing How to succeed in using the new system and

processes

How a person is engaged in communication and whether behavioural aspects of the message are covered

There will be an integrated two way communication programme for all ISiS development initiatives through life of partnership (see the Culture and Partnership section)

How a person’s role is defined, and their reporting lines and relationships

Staff roles redefined (including new SAP processes) in terms that clearly reflect the ISiS values and key behaviours – i.e. role definition to ensure that appropriate approvals are in for a “self service” transaction

What policies, processes and procedures a person is asked to work with

SAP system configured to support policies and procedures, with reporting on exceptions.




7 Training

7.1 Background and context

The recommendations contained in this section are based on information available at the time of the preparation of this document. It is imperative that a full assessment of the training requirements for this stream is carried out during the Evaluation & Preparation Phase of the Implementation Programme.

The approach also considers the existence of a Training Manager and Training Administrator for this stream that will complement the responsibility of the Training Programme Manager who is part of the Change Management Team.

7.2 How do we make this work?

For the Enabling Efficiency & Modernisation learning and training requirements we propose applying the blended and modular solution as follows:

Face-to-Face Collaboration

InteractionInformation1 2

43

Static reference materialsOn-line help

• SAP content sensitive• Quick Reference Guide• Job Aids & Practice Guides

Policies & ProceduresPortal for Knowledge Management databaseContinuous Improvement

Interaction with mediaStep-by-Step simulations with 3 modes:

• ‘Show me’• ‘Guide me’• ‘Let me’• Self evaluation

ELearning via Portal• video/audio simulations• Conceptual learning &

knowledge checkers/tests

Access to expertsOn-line interactive guidance via Portal:

• FAQ Database• Learner Support Site• Community & Team

Rooms• messaging, Wikis and

BlogsCommunities of PracticeSuper Users & ChampionsOnline FAQ databases

Classroom based learningInstructor led trainingPre Go Live Training

• Role based• Blended – simulation & hands

on in training client• Further practice in training

sandpitWorkshopsPost Go Live Training

• Key User Support• On-the-Job coaching

Face-to-Face Collaboration


43 Face-to-Face Collaboration


43

Static reference materialsOn-line help

• SAP content sensitive• Quick Reference Guide• Job Aids & Practice Guides

Policies & ProceduresPortal for Knowledge Management databaseContinuous Improvement

Interaction with mediaStep-by-Step simulations with 3 modes:

• ‘Show me’• ‘Guide me’• ‘Let me’• Self evaluation

ELearning via Portal• video/audio simulations• Conceptual learning &

knowledge checkers/tests

Access to expertsOn-line interactive guidance via Portal:

• FAQ Database• Learner Support Site• Community & Team

Rooms• messaging, Wikis and

BlogsCommunities of PracticeSuper Users & ChampionsOnline FAQ databases

Classroom based learningInstructor led trainingPre Go Live Training

• Role based• Blended – simulation & hands

on in training client• Further practice in training

sandpitWorkshopsPost Go Live Training

• Key User Support• On-the-Job coaching

Figure 4: Approach to Learning and Training

7.3 Assumptions and Dependencies

For our proposed solution to work the following is required:

The evaluation of the learning programme to assess end user performance and the effectiveness of training. The use of the industry standard Kirkpatrick method would be the basis for this evaluation

Availability of the Councils’ resources to work alongside IBM team members during the blueprint phase and the preparation of business processes

Availability of the Councils’ resources to work alongside IBM team members during the preparation, design and delivery of training




7.4 Key Performance Indicators Individuals are able to use both SAP and related business processes

effectively and adopt new culture and behaviours

Individuals use SAP without a significant drop in performance




8 Link to Wider Transformation

8.1 Wider Transformation

The implementation of SAP “back office” systems links to the wider ISiS transformation objective in the following way:

ISiS objective Impact Key ERP inputs Outcomes

1. To improve access to and the delivery of customer facing services.

Low

Standardisation of data and processes to improve the quality of information available when answering queries

Information integrated with the “front office” requirements of a Customer Relationship Management solution

2. To modernise, reduce the cost of and improve corporate, transactional and support services. High

The advantage of using SAP is the avoid costly interfaces between disparate system, avoid the re-keying of data and improve the delivery of integrated automation (i.e. workflow)

Cost reductions in the processing of transactions in the areas of finance, procurement, HR and payroll – to be finalised as part of the implementation.

3. To help modernise and transform the overall workings of the County Council and the Borough Council.

Medium

Implementing processes and technology used in world class organisations.

Providing a platform for integrated “self service”.

Freeing up resources from transaction process to enable a greater focus of “value adding” strategic/advisory services

4. To invest in world class technologies to improve productivity.

High

SAP is a world class ERP system with large R&D investment to ensure that it continues to improve.

“Future proofing”

5. To create an excellent working environment and a more sustainable employment for council staff in the future.

Medium

Staff will be trained in the use of SAP and this represents an opportunity for staff development

Core staff with superior skills and competencies.

6. To generate economic investment by attracting a partner

willing to invest in Somerset.

Low

SAP is recognised ERP system in all sectors of economy.

A greater chance of attracting additional work to the ISiS partnership from others (in






ISiS objective Impact Key ERP inputs Outcomes

sector/region), which will have the impact of reducing the overheads of “back office” transaction processing.

7. To promoting sustainability and ethical business practices

Low

SAP has powerful reporting tools the help manage business practices.

Better information in monitoring the effectiveness of business practices.


9 Benefits

9.1 Benefits

The benefits of implementing SAP and process re-engineering in similar organisations are estimated to be:

Creditor Invoice processing – revised processes and greater efficiency. This is estimated to have a benefits value of £XXX over 10 years;

Debtor Invoice processing - revised processes and greater efficiency. This is estimated to have a benefits value of £XXX over 10 years;

Budget Monitoring - revised processes and greater efficiency. This is estimated to have a benefits value of £XXX over 10 years;

Property management – integrated systems. This is estimated to have a benefits value of £XXX over 10 years;

HR and Payroll management – improved payroll/HR transaction processing and better management of absences. This is estimated to have a benefits value of £XXX over 10 years.

The total savings arising from the SAP implementation are estimated to be approximately £ XXX - £XXX over 10 years. It should be noted that this estimate is conservative compared to IBM experience, and very conservative when compared to SAP’s estimate of potential savings from such an implementation.

However at this stage in the procurement and with the level of analysis undertaken it is important to keep these figures in context. These figures need to be validated and agreed. It is also important to keep in context the benefits arising from SAP in relation to the wider objectives of ISiS and the systems currently used by the Councils. In considering these wider benefits we have assessed “types of integration”, “types of vendor” and “types of market”:

Types of Integration:

Back Office functionality coverage – SAP has recognised “world class” integrated payroll/HR functionality that has been implemented in Local Government in the UK. Cedar acquired a small UK payroll/HR vendor in June 2004.

Front Office functionality - SAP has recognised “world class” integrated CRM functionality that has been implemented in Local Government in the UK. Cedar has no known CRM functionality.

Tactical Systems – SAP has modules which allow the replacement of Local Government “tactical” (i.e. Directorate systems like SWIFT), and these have been implemented in Local Government in the UK.

Office Systems – SAP has integration to “office” systems (Microsoft Office). Cedar has no known ability to integrate with office systems.

SAP is clearly a highly integrated product and this has the benefits of easier cross system reporting and avoids the costs of building and maintaining system interfaces.

REDACTED Commercial Sensitivity Section 43 (2)






Types of Vendor

SAP is an $8.5billion global organisation with all that comes with it – skills, experience, research and development etc. Cedar is a $60million UK based organisation.

SAP is clearly a “world class” system and meets the ISiS objective of investing in “world class technologies”. A benefit of working with this type of vendor is that SAP has the product development capability capable of responding to the ambitions of ISiS.

Types of Market

SAP has a broad footprint across all sectors, including the public sector and specifically including Local Government. This footprint is reflected across the globe.

SAP is committed to the UK Local Government Market and has the benefit of bringing to bear developments in other markets (i.e. from the global government market).

Proposal for SAP Solution (Final) REDACTED

Documents

Transcript of Proposal for SAP Solution (Final) REDACTED