Sappress Service and Support

Gerhard Oswald

SAP® Service and Support

Focusing on Continuous Customer Satisfaction

089.book Seite 3 Donnerstag, 30. März 2006 1:32 13

5Contents

Contents

Preface to Third Edition 9

Introduction 11

1 IT-Powered Business Innovation—The Changing Role of IT 15

1.1 SAP’s Strategy ................................................................................................... 16

1.2 The Chief Information Officer (CIO) as Chief Process Innovation Officer ............................................................................................ 20

2 SAP’s Service Philosophy 21

3 SAP Ecosystem 27

4 SAP’s Service Offering 31

4.1 Team and User Training: Knowledge Transfer ............................................ 334.1.1 Knowledge Transfer Methods and Programs ................................. 344.1.2 The Education Portfolio .................................................................... 364.1.3 The Portfolio Map ............................................................................. 37

4.2 Enabling Support and Operations ................................................................. 394.2.1 SAP Customer Competence Center Program ................................ 404.2.2 The Organization of an SAP CCC .................................................... 494.2.3 SAP Empowering ............................................................................... 50

4.3 Quality and Risk Management (Considering SAP Safeguarding as an Example) .................................................................................................. 54

4.4 Business and IT Strategy Consulting ............................................................ 59

4.5 Technology Architecture Design ................................................................... 62

4.6 Solution and Architecture Design ................................................................. 624.6.1 Solution and Architecture Design ................................................... 624.6.2 Enterprise Services Architecture Adoption Program ..................... 63

4.7 Solution Integration ........................................................................................ 67


Contents6

4.8 System Landscape Optimization ................................................................... 67

4.9 Technical Quality Assurance for Implementations, Operations, and Upgrades .................................................................................................... 724.9.1 SAP MaxAttention ............................................................................. 724.9.2 SAP Expertise on Demand ................................................................ 81

4.10 Implementing and Optimizing Support and Operations .......................... 834.10.1 Best-Run IT ......................................................................................... 834.10.2 SAP Solution Management Optimization ....................................... 87

4.11 Program and Project Management ............................................................... 90

4.12 Business Process Design ................................................................................. 90

4.13 Application Implementation ........................................................................... 91

4.14 Developing and Maintaining Custom SAP Solutions ................................ 934.14.1 SAP Development Services ............................................................... 944.14.2 SAP Development Maintenance Services ....................................... 95

4.15 SAP Managed Services—Hosting and Application Management Services ...................................................................................... 994.15.1 SAP Hosting Services ......................................................................... 994.15.2 SAP Application Management Services .......................................... 103

4.16 Business Process Outsourcing ....................................................................... 107

5 Generating Value Through Support 111

5.1 Support Offerings ............................................................................................. 1135.1.1 SAP Standard Support ....................................................................... 1145.1.2 SAP Premium Support ....................................................................... 1195.1.3 SAP MaxAttention ............................................................................. 120

5.2 Maintenance Strategy ..................................................................................... 1215.2.1 Maintenance Phases .......................................................................... 1215.2.2 Maintenance Periods for Specific Releases ..................................... 123

6 From Professionals for Professionals—SAP Services in Practice 127

6.1 First Steps Toward an Enterprise Services Architecture ............................ 1286.1.1 Background ......................................................................................... 1286.1.2 Mapping an Evolutionary Path to ESA ............................................ 1296.1.3 Implementing Enterprise Services ................................................... 1316.1.4 Business Benefits ................................................................................ 133

6.2 Designing and Realizing a Strategy for Growth and Efficiency ................ 1346.2.1 Background ......................................................................................... 1346.2.2 Challenges ........................................................................................... 1356.2.3 Initial Analysis ..................................................................................... 1366.2.4 Detailed Findings ............................................................................... 1376.2.5 Preparation for Implementation ...................................................... 140


7Contents

6.2.6 Suggested Approach ......................................................................... 1406.2.7 Approach and Implementation ........................................................ 1416.2.8 Results ................................................................................................. 146

6.3 Standardized Process for Implementing an SAP Solution ........................ 1486.3.1 Strategy and Planning ....................................................................... 1516.3.2 Project Realization ............................................................................. 1526.3.3 Implementation Results .................................................................... 156

6.4 Creating a Custom Composite Application ................................................. 157

6.5 Global SAP System Rollout with Provision for Smooth Operations ....... 1616.5.1 Standardizing the SAP Systems ........................................................ 1626.5.2 Lighter IT Workload with Application Management .................... 163

6.6 SAP MaxAttention: Risk Reduction and Continuous Optimization ........ 1656.6.1 Strategy ............................................................................................... 1666.6.2 Organizational Changes with SAP MaxAttention

(Management Component) .............................................................. 1686.6.3 Expert Services Component ............................................................. 170

6.7 Upgrading with SAP Ramp-Up ...................................................................... 1796.7.1 Participation in the SAP Ramp-Up Program .................................. 1806.7.2 Fast Track to Going Live ................................................................... 181

6.8 Planning and Executing Upgrades ................................................................ 1836.8.1 Feasibility Study ................................................................................. 1846.8.2 Preparing and Executing the Upgrade Projects ............................. 1866.8.3 Outcome ............................................................................................. 196

6.9 System Landscape Consolidation .................................................................. 1976.9.1 The SLO Procedure Model ............................................................... 1986.9.2 Project Phases for System Consolidation ....................................... 1996.9.3 Advantages of the SLO Services ...................................................... 202

6.10 Improving Operations and Support for SAP Solutions ............................. 2036.10.1 Strategy ............................................................................................... 2036.10.2 SAP Operations Competence Assessment ..................................... 2046.10.3 Empowering Engagement ................................................................ 205

6.11 Planning to Source Selected Support Tasks for Operations and Applications ............................................................................................... 2066.11.1 Cost Analysis for Operations and Support ..................................... 2076.11.2 Upgrade to mySAP ERP 2005 .......................................................... 2086.11.3 Increased Availability ........................................................................ 209

6.12 Steps Toward a Best-Run IT Organization ................................................... 2096.12.1 Review and Evaluation of Present Situation .................................. 2096.12.2 Enablement and Realization ............................................................. 2116.12.3 Optimization ...................................................................................... 212

7 SAP Service and Support Infrastructure 213

7.1 SAP Solution Manager .................................................................................... 2137.1.1 Implementation ................................................................................. 2167.1.2 Monitoring ......................................................................................... 218


Contents8

7.1.3 Service Delivery ................................................................................. 2217.1.4 Service Desk ....................................................................................... 2237.1.5 Management of Change Requests and Release Upgrades ............ 226

7.2 SAP Service Marketplace and Portals ........................................................... 229

7.3 How SAP Solution Manager and SAP Service Marketplace Interact ....... 2437.3.1 Cross-Platform Service and Support Processes .............................. 2447.3.2 Enhanced Support Infrastructure to Enable New Processes ........ 246

8 Cost Transparency with SAP TCO Framework 251

8.1 SAP TCO Framework ....................................................................................... 252

8.2 Building Blocks of SAP TCO Framework ...................................................... 2538.2.1 SAP TCO Model ................................................................................. 2548.2.2 SAP TCO Reference Parameters ....................................................... 2568.2.3 SAP TCO Database ............................................................................ 2578.2.4 SAP TCO Reduction Procedures ...................................................... 258

8.3 Reducing Costs with SAP TCO Framework ................................................. 261

A Quick Links for SAP Service Marketplace and the Portals 263

B Glossary 267

C The Publisher 281

D Acknowledgements 283

Index 287


9Preface to Third Edition

Preface to Third Edition

This book is not just a revised and updated version of the SAP Service andSupport book; rather, it is a completely new and unique portrayal of SAP’sentire service portfolio. With numerous additions dealing with contem-porary issues, it provides an excellent overview of the services from theareas of support, consulting, education, custom development, and man-aged services, and shows how they interact in terms of customer require-ments and solution orientation.

Based on the phases in the lifecycle of an SAP solution and on the level ofSAP’s engagement, the book outlines the entire offering. Individual sce-narios reflect the challenges confronting today’s businesses—from imple-menting an SAP solution through operating, optimizing, and upgrading—and furthermore, we show you how your IT projects can be enhanced bySAP’s integrated approach spanning all service areas.

This complete view of the portfolio would not have been possible with-out the efforts of numerous experts from the respective business depart-ments. I would like to take this opportunity to thank them all for theircontributions. Their hard work will certainly have been worthwhile if, aswe hope, this book inspires you in your daily work to find ways of lever-aging SAP solutions in your organization to reduce expenditure and cre-ate room for innovation.

Gerhard OswaldWalldorf, St. Leon-Rot, April 2006


11Introduction

Introduction

In which situation does which SAP service provide optimal support for acustomer? This is the question that this book strives to answer. The mostsuitable time to use a service depends partly on the lifecycle phase of anSAP solution. Company circumstances—size, IT resources and budget, IT-related experience and know-how—also govern which services areappropriate, as do customer requirements, which are dictated by thecompany’s business strategy, and might include whether the customerintends to outsource specific tasks to external service providers.

The purpose of this book is to show you how, by using effective servicesat the right time, you can leverage IT for your company and meet yourbusiness objectives. The book’s primary concern lies with strategic con-siderations and carrying out IT projects, and not with providing detailedtechnical instructions on how a service should be delivered.

Book structureThe book consists of three main parts:

� Introductory chapters (Chapters 1 to 3)

� A description of the service and support offering both in theory and inpractice, including maintenance services, which comprises the heart ofthe book (Chapters 4 to 6)

� Basic details of SAP’s service and support infrastructure and TCOFramework, which reduces the total cost of ownership (TCO) for SAPcustomers (Chapters 7 and 8)

More specifically, the individual chapters deal with the following issues:

Chapter 1 briefly explains how the role of IT in business has changed inrecent years, and how this affects CIOs and corporate IT strategies.

Chapter 2 examines SAP’s service philosophy and the guidelines SAP fol-lows when developing and delivering services.

SAP’s focus is always on the recipients of the services, namely SAP cus-tomers. SAP customers are embedded in the SAP Ecosystem, which ispresented in Chapter 3. Besides customers, SAP and its partners are alsopart of this community. The SAP Ecosystem allows its members to sharetheir knowledge and exchange information, which ultimately enables theservice offering to be improved on an ongoing basis.

Following these introductory sections, Chapter 4 turns to the heart of thebook, SAP’s service offering itself. A matrix has been used to structure the


Introduction12

information, with one axis showing the three phases in a product’s lifecy-cle, and the other axis showing the five levels of engagement that cus-tomers can request from SAP. The service offerings come from the areasof support, consulting, education, managed services, and custom devel-opment, including system landscape optimization. This chapter illustratesthose situations in which the service packages should be used and howthey benefit a company.

For SAP customers, software support is a key element of SAP’s serviceand support offering. Chapter 5 is therefore dedicated to SAP StandardSupport, SAP Premium Support—a new support offering with enhancedservices—and SAP MaxAttention. It also describes SAP’s maintenancestrategy and the three maintenance phases—mainstream, extended, andcustomer-specific maintenance.

From theory to practice, Chapter 6 describes different tasks—such asimplementing or upgrading an SAP solution—as typically encountered byforward-looking companies today. You may even recognize some of thechallenges from your own experience at work. The project descriptionsshow which services have proven themselves in different situations andhow companies can profit from these services. We should also stress thatall SAP services are interrelated, regardless of the department in whichthey were developed.

These customer scenarios provide answers to widespread contemporaryquestions, such as:

� How can we implement, run, and continually optimize our SAP solu-tion efficiently and cost effectively?

� How can we consolidate our system landscape, or boost the effective-ness of our support organization?

� How can we upgrade smoothly—with minimal downtime and withinthe available time and budget?

These goals aren’t achieved overnight. Careful preparation is required, allthose involved must cooperate effectively, and experienced specialistsmust actively support the entire process. The resulting benefits speak forthemselves. As the project descriptions show, the offerings in SAP’s ser-vice and support portfolio are tailored to the customer’s individualrequirements and complement one another.

To cooperate optimally, customers, SAP, and their partners need a high-performance service and support infrastructure, which is described in


13Introduction

Chapter 7. With its portals for specific target groups, SAP Service Market-place provides a reliable platform for communication, and together withSAP Solution Manager—SAP’s service and support platform—enables theintensive exchange of information and effective collaboration throughoutthe SAP Ecosystem.

The theoretical descriptions in Chapters 4 and 7 are supplemented by aseries of reports from enterprises that have used SAP's service and sup-port offerings, or currently use SAP Solution Manager. In these reports,customers assess how their company has benefited from the services andfrom SAP’s service and support infrastructure. One thing that is madevery apparent in the reports, SAP’s service and support portfolio does notonly exist in theory; customers are actively using the services and prod-ucts offered.

Chapter 8 introduces the SAP TCO Framework and the way in which SAPhelps its customers to minimize the TCO for their software and acceleratereturn on investment (ROI).

The Appendices contain a glossary, which briefly explains the key termsused in the SAP world. They also include a list of quick links, which giveyou immediate access to the most up-to-date information on service andsupport-relevant topics regarding SAP Service Marketplace.

Whether you decide to read the book from beginning to end or are inter-ested in only specific chapters, it provides you with useful informationand valuable food for thought. You will often draw parallels to your dailyworking environment and begin to question how the issues describedwould actually be handled in your own company. How do we deal withthat? Couldn’t we also make substantial improvements in this area?Couldn’t we also reduce our SAP costs by using SAP services? To this end,the book provides you with ideas and suggestions that you can discuss inyour company. If you have any further questions, you can contact SAPdirectly anytime at [email protected].


127From Professionals for Professionals—SAP Services in Practice

6 From Professionals for Profession-als—SAP Services in Practice

This chapter describes the challenges typically encountered throughout the lifecycle of an SAP solution, as well as tried-and-tested ways of mastering such challenges with the help of appropriate SAP services.

Based on the experiences of real customers (customer names have beenremoved), this chapter describes how SAP Services can help customers toimprove the availability of their IT, cut costs, and increase business value.

The first example demonstrates how changing from business applicationsto Enterprise Services Architecture (ESA) allows SAP customers tostrengthen their competitive position. The next scenario looks at deter-mining the business value of IT projects to aid with decision-makingwhen it comes to investments. Our third customer scenario deals withthe implementation of an SAP solution, while the fourth scenariodescribes the development of customer-specific functions. The fifthexample illustrates how a large corporation might roll out an SAP imple-mentation internationally.

The individual support afforded by SAP MaxAttention for mission-criticalIT solutions is outlined in the sixth customer scenario. The next examplelooks at implementing a new SAP solution that is part of the SAP Ramp-Up program. The eighth scenario describes how a company mightupgrade various different systems—starting with the initial assessment ofbusiness value, through planning and realization. SAP also providesproven services for consolidating system landscapes, as illustrated by thesubsequent case. The tenth scenario shows how SAP Empowering helpscustomers to standardize and optimize their support and administrationprocesses.

The eleventh example describes how SAP can help customers if they wantto analyze the costs for operations and support, or to outsource systemsor specific tasks for application support that are currently performed in-house. The final scenario focuses on the Best-Run IT service program as away of optimizing operational systems during the operating phase.


From Professionals for Professionals—SAP Services in Practice128

6.1 First Steps Toward an Enterprise Services Architecture

By describing a fictitious midsize media company, this first example dem-onstrates how SAP Consulting provides the expert advice and assistancethat customers require in order to put enterprise services architecture(ESA) to work for their business. Of course, needs and challenges varygreatly—from industry to industry, and from company to company—andit is unlikely that any two ESA projects will ever be identical. This scenariosimply illustrates how SAP Services can help customers take their firststeps toward an ESA and from there, plan their way forward.

6.1.1 Background

The company used in this example is based in the United Kingdom andemploys a staff of around 200. It designs and sells advertising space invarious leading national newspapers and magazines. It also markets clas-sified ads and banners for websites. The enterprise has been running SAPsoftware successfully for several years. In addition to SAP R/3 for coreERP tasks, the company deploys industry-specific solutions from the SAPfor Media portfolio, such as the SAP Classified Advertising Managementapplication. The software landscape also includes a number of non-SAPsystems.

The company was an early adopter of web-based solutions, launching anInternet ad-sales portal in the late 1990s. This allowed customers to enterorders via a user-friendly GUI, thereby streamlining processes and signifi-cantly reducing manual effort. The online channel proved to be very pop-ular.

Businesschallenge

In 2004, the enterprise began to examine ways in which to furtherenhance online collaboration with customers and business partners.Because the original portal covered all the newspapers and magazines forwhich the company sold advertising space, users sometimes had prob-lems locating the specific information and functions they needed. Toresolve this issue, the company decided to create dedicated online chan-nels for different publications and customer groups; however, the tech-nology on which the legacy solution was based had reached its limits.Coupled with inflexible, hardwired processes, this made it extremely dif-ficult to reuse established portal functions in a new context.


129First Steps Toward an Enterprise Services Architecture

Against this background, the company decided to look into new ways ofleveraging its existing IT investments in order to:

� Make its online offerings more differentiated and user friendly

� Increase responsiveness to changing market needs

� Provide innovative services quickly and cost-effectively via multipleportals in order to address different groups of customers

� Automate key activities

� Significantly reduce the development effort required to create newprocesses and modify existing ones

� Reduce administrative overhead

� Boost employee productivity

In addition, the company wanted to outline a new business-driven mid-to long-term IT strategy built around SAP’s ESA blueprint. To help achievethese goals, it called in SAP Consulting.

6.1.2 Mapping an Evolutionary Path to ESA

As part of the ESA Adoption Program, SAP’s business and technology con-sultants sat down with experts from the company to determine how theESA blueprint could best support the customer’s objectives. In a series ofworkshops, SAP Consulting and the customer created a roadmap chartinga company-specific route to implementing ESA. From the outset, it wasclear that the customer favored an evolutionary approach over a big-bangapproach. This is in line with SAP’s flexible ESA adoption methodology,which lets companies determine the scope and pace that suits them.

Roadmap in five steps

Deploying a clearly structured, standard procedure, SAP’s consultantscreated the company’s roadmap in five stages:

1. Align ESA strategy with customer strategyDuring this initial phase, SAP’s consultants focused on gaining a clearunderstanding of the customer's overall business and IT strategy, andhow ESA could support it.

2. Gain insight into business processes, the IT landscape, and how theyinterrelateNext, SAP Consulting and the customer's specialists examined thecompany’s existing business processes and IT landscape. In addition,workshops were held to draw up a list of initial candidates for enter-prise services.



3. Evaluate potential for enterprise servicesSAP’s experts leveraged a proven consulting methodology to identifythe most promising ESA candidates in terms of business value. On thebasis of their findings, the SAP consultants created a matrix showingwhich enterprise services should be prioritized. This provided a foun-dation for a phased introduction, ensuring that the customer wouldreap added value with each stage.

4. Design ESASAP Consulting and the company conducted workshops to match thecandidates identified in Step three to SAP applications and SAPNetWeaver components. The SAP experts went on to plan the short-listed enterprise services and created a high-level ESA design matrix.

5. Define ESA strategy and roadmapLastly, the results from the preceding steps were combined and consol-idated to create the final roadmap. This comprised a customer-specificimplementation schedule, taking into account the company’s andSAP’s release plans. Consideration was also given to any dependenciesbetween IT and business projects, and it was determined what servicesshould be implemented and when this should occur to achieve maxi-mum business value.

Results The company's map featured:

� Major implementation milestones

� Supporting projects, such as Web design, change management,employee training from SAP Education

� Temporal and contextual dependencies, regarding business perfor-mance, for instance, strategic projects, or solution availability

� Implementation priorities

� Customer release schedule

� Timelines for realizing long-term objectives

� Impact on related areas, partners within the group, and external par-ties

� Required decisions

� Recommendations for further steps

� Risks to be addressed in the individual phases



SAP NetWeaver components to implement

The roadmap also included suggestions for the company's mid- to long-term IT strategy. On the basis of their findings, SAP’s consultants advisedthe customer to implement the following SAP NetWeaver componentsstep-by-step over a three-year period:

� SAP NetWeaver PortalProviding rapid, role-based access to information, and streamlined col-laboration between employees, customers, and partners

� SAP NetWeaver Business IntelligenceEnabling flexible reporting and analysis in line with real-world require-ments

� SAP NetWeaver Exchange InfrastructureEnabling end-to-end processes across multiple applications and sys-tems

� SAP NetWeaver Application ServerProviding a complete environment for developing and running soft-ware based on ABAP and Java

� SAP Solution ManagerSupporting the implementation, testing, rollout, and ongoing opera-tion of SAP software

� SAP NetWeaver Master Data ManagementEnsuring that master data is accurate, non-redundant, and effectivelymanaged

� SAP Composite Application FrameworkEnabling the straightforward creation of new applications and theorchestration of legacy applications by reusing existing functions

6.1.3 Implementing Enterprise Services

As explained, instead of introducing ESA immediately across its entire ITand business landscape, the company opted to focus initially on optimiz-ing the processes for sales of different kinds of advertisements via its por-tal. In the third step of creating the roadmap, SAP’s specialists confirmedthis was the area that promised greatest value from existing software andhardware investments.



Figure 6.1 Overview of the Planned Solution

Analyzingprocesses

Working together with the customer, the SAP consultants analyzed thevarious advertising sales processes supported by the online channel,breaking them down into many distinct logical units common to all.These included:

� Creating new users

� Selecting design templates

� Accessing available products

� Providing ad content

� Calculating prices

� Creating orders

� Processing payments

Modeling asenterprise services

Each individual step was then modeled as a self-contained enterprise ser-vice. These modular services are stored in a dedicated repository and canbe combined flexibly to create new process flows. Based on the openWeb Services Description Language (WSDL) standard, each serviceencapsulates functions from the company's SAP software and makesthem available via an intuitive web frontend.

As the company’s repository grows, it will become possible to configureprocesses rapidly simply by plugging services together, significantlyreducing development outlay, and accelerating projects. Accordingly, the

Internet

SAP R/3

Intranet

Primary Services Secondary services

Ad selling

Technical ad - related data

Commercial ad - order data

SAP R/3 internal Business logic layer implemented as Web services

Customer

Payment collection

Ad management

Encashment

Ad - Produktion Ad production User management

Order history

Web portal

Product

Product

Product

Web portal

Product

Product

Product

Web portal

Product

Product

Product

Partner CIC

Product

Product

Product

In - house CIC

Product

Product

Product

ADX - DB

…

… Ad publishing

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer



company will be able to create new customer or product-specific onlineofferings quickly and cost-effectively in any portal environment.

With the expert support of SAP Consulting, the enterprise transformed itsportal in just three months. Leveraging open enterprise services, it nowoperates four separate online resources, covering different publicationsand serving the needs of specific customer groups and partners. Eachonline resource provides seamlessly integrated, end-to-end self-services,enabling users to design, order, and pay for ads quickly and easily by usinga series of easy-to-understand user interfaces. The initial response hasbeen very positive, and the company anticipates a significant increase inthe number of users over the coming years.

6.1.4 Business Benefits

By adopting an ESA-based approach to its portal solutions, the enterprisehas reaped a host of benefits. Its enterprise services encapsulate functionsand processes already available in its SAP and non-SAP systems, linkingthem to create fully integrated, end-to-end online offerings. This hasdecreased the TCO by reducing the amount of costly, time-consumingdevelopment and maintenance tasks, and by eliminating the need fornew IT investment.

Additional functions

Thanks to the loose coupling of the interface, business logic, and back-end systems, the new portals have retained the familiar look and feel ofthe original online resources, while providing a wealth of additional infor-mation, such as prices and copy deadlines. This has increased user accep-tance and loyalty, and reduced the number of telephone and fax inquiriesto the company's customer service center, freeing up staff for other tasks.

The enterprise has also been able to automate the vast majority of onlinead ordering tasks. For example, whenever a transaction is completed inthe portal, the resulting advertisement is sent automatically to print-ing/production, and all relevant details are forwarded to the company’sfinancial accounting system for invoicing—eliminating time-consuming,error-prone manual processing and increasing employee productivity.While some customers continue to use traditional channels, and not alladvertising tasks can be completed online, the company's streamlinedprocesses have halved the cost of selling advertising space.

Next stepsEuropean legislation requires public-sector requests for proposals to bepublished in local newspapers. To date, many organizations have placedtheir orders by fax. Using its new enterprise services, the company has



created a portal specifically for this purpose. Since many of the activitiesinvolved in the process are similar to those in advertising sales, it was ableto establish the new offering with very little development effort.

In line with SAP’s recommendations, the enterprise now plans to imple-ment the SAP NetWeaver platform as a basis for the phased rollout of theESA blueprint across the entire enterprise, thus enabling the creation ofmore innovative offerings and the provision of enterprise services to aneven wider variety of customers.

6.2 Designing and Realizing a Strategy for Growth and Efficiency

The fictitious company described in this section is a European-basedautomotive component supplier. It manufactures a wide variety of smallplastic parts for many leading European automakers and engineeringcompanies and has recently started moving into the U.S. and Asian mar-kets. Founded in the late 1970s, the enterprise has grown continuouslyover the years. Today, it has around 8,000 employees, operates five pro-duction facilities, and has a worldwide sales network with 10 dedicateddistribution centers.

6.2.1 Background

The component supplier expects to grow significantly over the next fewyears by developing innovative new products to enable it to win new cus-tomers and extend its business beyond the automotive industry. To sup-port this strategy, it has plans for a major acquisition. However, becauseits systems have evolved piecemeal over a period of years, they includeda large number of heterogeneous standalone solutions—some datingback to the company’s foundation. It was therefore decided to revampand consolidate the entire IT landscape in preparation for the proposedtakeover. In 2000, the company took the first step by migrating financialaccounting, human resources, and some supporting systems to the pre-decessor of mySAP ERP (SAP R/3), thereby considerably increasing effi-ciency.

Heterogeneouslandscape

As well as SAP R/3, the company had some 30 IT systems, includinghomegrown solutions and aging legacy systems. This presented majorobstacles to business—particularly in sales, production planning, andlogistics. What’s more, the enterprise recognized that production ineffi-ciencies required urgent attention. Another top priority was to improvecustomer relationship management. This area had been fraught with


135Designing and Realizing a Strategy for Growth and Efficiency

problems due to the many ad-hoc business processes used to deal withthe very diverse needs of customers, suppliers, production units, andmaintenance departments. Poor visibility into supply and demand alsoimpacted the efficiency of these processes, as well as the reliability ofinformation for key performance indicators (KPIs) such as lead times,quality ratios, and process costs. Figure 6.2 provides an overview of thesupply chain.

Figure 6.2 The Company’s Supply Chain

6.2.2 Challenges

Issues identifiedThe company’s senior management was aware that the organization haddeveloped around manufacturing and that other key areas had beenneglected as a result. While it had insight into some core activities, thecomponent supplier lacked an understanding of its processes as a whole.It became readily apparent that the existing structures could not supportthe company’s strategy and urgently needed reengineering. The followingissues were identified:

� Inadequate understanding and documentation of procedures madeoptimization impossible.

� The company could no longer achieve the levels of flexibility andtimely delivery demanded by customers.

� Increasing production capacity would merely exacerbate the problems.

� Valuable time would be lost if completely new processes and inter-faces had to be defined and developed following the acquisition andintegration of another enterprise.

CUSTOMERS REGIONAL DISTRIBUTION CENTERS

INTERNATIONAL DISTRIBUTION CENTERS PLANT/RESOURCES SUPPLIERS

C1

C2

C3

C4

C5

C6

C000 ‘ s

RDC6

RDC7

RDC8

RDC9

RDC10

IDC1

IDC3

IDC4

RDC5

P1

P2

P3

P4

P5

R1

SUP1

SUP2

IDC2

RDC1

RDC2

RDC4

RDC3



Process optimi-zation

The company was no longer able to conduct business effectively withoutformalized procedures. It therefore needed to optimize its processes inorder to increase employee productivity, maximize capital investments,cut costs, and grow the business. In particular, its goal was to continue toexpand outside its original core markets.

To overcome these problems, the enterprise’s senior management recog-nized that it would be necessary to closely align the processes and busi-ness strategy, while developing a flexible, state-of-the-art IT landscapethat was capable of meeting customers’ requirements and growing withthe company.

6.2.3 Initial Analysis

To get a clear picture of the overall state of affairs, the company requiredadvice and assistance from external experts. On the basis of positiveexperience gained during the SAP R/3 implementation some years earlier,the company turned to SAP Consulting. Its initial goals were to identifycritical business processes requiring optimization, to determine whichinterfaces would have to be created, and to map out the necessarychange processes. Other tasks included developing a corresponding ITstrategy and assessing the potential value of the investment and the pro-posed changes. The company’s senior management—and above all, itsinvestors—wanted a well-structured breakdown of the expected benefitsof process improvements, as well as a forecast of the costs and savings.So, the enterprise engaged the Business Consulting group of SAP Con-sulting to conduct a six-week assessment. This assessment comprised theSAP Business and Value Assessment service, which analyzed the relevantproduction and logistics processes and targeted problems, and the SAP ITPlanning service to define a roadmap for making the proposed improve-ments by implementing an SAP solution.

SAP Business and Value Assessment

Within the scope of SAP Business and Value Assessment, experienced SAPconsultants leveraged proven methodologies and best practices to helpidentify areas for improvement. They also showed how leading edge SAPtechnology could be deployed to achieve the component supplier’s goals.SAP Consulting helped the company to validate critical success factors andpotential benefits in the run-up to the project. This provided a reliablebasis for justifying future investments in terms of benefits and cost, andestablished a clear link between IT investments and business results.



ResultsThanks to the service, the customer gained:

� Qualitative analysis of business benefits, promoting buy-in and com-mitment from key stakeholders

� Insight into how the transformation project would affect businessoperations

� Full understanding of return on investment (ROI), ensuring that IT isaligned with business goals

� A clear picture of how the proposed SAP solution would meet its spe-cific needs

SAP IT Planning

The SAP IT Planning service enabled the company to develop a highlyeffective IT architecture, aiding with the transition from an initial ITframework to a comprehensive IT strategy aligned with business goals.

SAP’s consultants provided the enterprise with the following:

� Technology strategy—in the form of a feasible IT plan

� IT portfolio management—recommendations for where to increase ordecrease IT investments

� Security strategy—analysis and specification of an appropriate level ofinformation security

� Rollout plan—helping to define and plan implementation projects,including timelines, milestones, and dependencies

� Software change management—helping to organize and control theimplementation of changes to software and associated processes

6.2.4 Detailed Findings

SAP Consulting’s experts identified and documented the following prob-lems.

Forecasting and planning

The company’s planning and forecasting processes were handled usingheterogeneous systems and required spreadsheets and considerablemanual effort. Consequently, it was unable to generate timely, reliableforecasts and lacked the high-quality information necessary to developaccurate business plans.



The sales-planning process used by the company could not balance sup-ply and demand effectively over periods of several weeks or for individualproducts. Moreover, it took many weeks to create a demand plan. Con-siderable time and effort was also required to plan, gain consensus acrossbusiness units, and link demand signals to revenue goals. As a result,planning and forecasting was confined entirely to the short term.

The enterprise had only limited insight into demand. It constantly had toresolve problems, and planners lacked time for strategic and contingencyplanning. Furthermore, manual processing made it impossible to forecastdemand down to the levels of stock keeping units (SKUs) and locations.

Production planning and scheduling

The company has some 1,350 work centers with 900 injection moldingmachines at its five production facilities. Work-in-process materials hadto be routed through two to six work centers. Any individual step for aparticular product can be executed at one of several work centers. Theenterprise faced the challenge of efficiently scheduling its work centers,effectively tackling the many possible product-routing permutations,planning manufacturing in line with capacity constraints, and prioritizingproduction.

Low productivity These difficulties were compounded by the organization’s schedulershaving to deal with non-core tasks, such as answering incoming phonecalls. Consequently, there were issues with high work-in-process inven-tory, inconsistent utilization of work centers, and low employee produc-tivity. Nevertheless, utilization was high at those work centers wherework-in-process inventory was queued upstream and high levels of safetystock were maintained.

Tracking work-center performance and tracing the source of products

To meet certain customers’ requirements, the company needed to certifythe quality of specific products and record the work centers they passedthrough during the manufacturing process. Furthermore, the companyhad to find ways of identifying the root cause of product quality issues. Italso needed to monitor and enhance the performance of work centers.But, the company’s existing processes provided only limited visibility intooperations at individual work centers, impacting its ability to identify andresolve problems. Due to rapid growth over a period of years, the com-pany was still operating equipment with widely divergent capabilities—some of it dating back to the 1980s, and some acquired very recently.



Order fulfillment

The company has several hundred customers and generates some 7,500bills of lading every month. Order values and the numbers of line itemsand customers vary considerably at the individual business units. Thecompany lacked standard order-handling processes. Order fulfillment andassociated processes had become particularly complex due to the highnumber of SKUs (around 38,000 in 2004).

Inventory of finished goods

High storage costsThe company’s products have lifecycles of two or more years, and somecan be held in inventory for several years. As a result, the company placedlittle emphasis on managing its inventory of finished goods, believing thatwhat it manufactured would eventually be sold. But it had no real under-standing of what this attitude was costing. Although products did even-tually move, they sometimes remained in stock so long that storage costshad eaten up the entire profit.

Raw materials

The approximately 650 raw materials that the company uses account foraround 50 percent of its product costs. The most important of these arethermoplastics. Fluctuations in the price of raw materials have a consid-erable impact on profitability, and competitive pressures in the com-pany’s markets make it difficult to pass cost increases on to customers.While it uses only a small number of different grades of thermoplastics,the company tended to maintain excessively high buffer stock to ensure ithad sufficient material to meet demand.

Perfect order rates

Develop standard processes

The enterprise discovered it had limited ability to deliver finished goodsin full and on schedule, including all necessary paperwork such asinvoices. The company worked jointly with SAP’s business consultants todefine a perfect order rate as a composite of order fulfillment character-istics. This revealed significant opportunities for improvement acrossorder-related dimensions. The consultants also discovered that the vari-ous production sites had adopted different approaches and processes,and therefore recommended developing standard processes across allunits.



6.2.5 Preparation for Implementation

On the basis of these findings, SAP’s consultants and the company wenton to examine how best to standardize processes and procedures,increase transparency, and eliminate structural weaknesses to enhancethe company’s competitive edge.

Applying leanenterpriseprinciples

The enterprise also worked closely with SAP’s business consultants toevaluate its order-to-cash (O2C) and manufacturing processes. The mainobjectives included minimizing costs, enhancing customer service, andmaximizing throughput across the complex network of work centers. Inaccordance with lean enterprise principles, they focused on increasingthe efficiency of business processes and eliminating any steps that did notadd value. The company realized the importance of improving IT in thisendeavor. This would drive optimization by providing additional informa-tion and greater visibility into daily sales activities, sales trends, days’ salesoutstanding, manufacturing, compliance with production schedules, andgeneral efficiency.

IT infrastructure Further assessments conducted by SAP Consulting revealed that it wouldalso be necessary to optimize the IT landscape. The individual productionsites operated their own IT systems with local data storage, which weresynchronized with headquarters on a daily basis. Therefore, it was impos-sible to adapt plans rapidly to accommodate changing orders, which sig-nificantly impacted the flexibility of the company’s production.

6.2.6 Suggested Approach

On the basis of these findings, SAP’s consultants proposed the followingapproach:

� Begin by adopting a step-by-step approach to optimize O2C and tomodel it within the ERP system. In a second phase, migrate productionplanning and control and logistics to a flexible, state-of-the-art system.The software recommended for this purpose was mySAP Supply ChainManagement (mySAP SCM), which delivers comprehensive supportfor the new, integrated, and lean processes.

� Prior to implementing these changes, enhance the company’s existingSAP R/3 software and upgrade to mySAP ERP—enabling the new pro-duction processes to be integrated seamlessly with the other businessunits. Implement data warehousing on the basis of SAP NetWeaverBusiness Intelligence.



� SAP’s consultants strongly recommended consolidating the IT land-scape and introducing central data management (SAP NetWeaverMaster Data Management).

� In the second phase of the project, following completion of the pre-ceding activities, focus on optimizing the entire supply chain and intro-ducing mySAP SCM.

ROI potential analysis

Optimize business processes

The objective of this step was to identify and quantify a number of keyfigures that would be improved by the implemented software. Besidesstandard financial indicators, process-related values, in particular, wereidentified and determined. The analysis conducted by SAP Consultingfound the following opportunities to improve the company’s businessprocesses:

� Forecast accuracyAt the time of the analysis, the accuracy of demand forecasts was 21percent. Following completion of the project, it was expected to riseto at least 45 percent.

� Financial closing cycleThe organization initially required 10 days to close its books. The goalwas to reduce this to five days short term and one day medium term(see also Section 6.2.8).

� InventoryThe target was to cut the value of stock in inventory from 85 millionEuro (approx. 101 million USD) to less than 40 million Euro (approx.48 million USD).

� Perfect order rateThe objective was to increase the perfect order rate by at least five per-centage points (from an initial figure of some 78 percent).

� UtilizationAn increase in production utilization of at least 15 percent was fore-cast.

6.2.7 Approach and Implementation

On the basis of their project planning, the SAP consultants proposed a10-month timeframe for the first phase of the implementation. The sub-sequent phase, optimizing the supply chain, was scheduled to take anadditional 11 months. Between the two phases, an interim period of



three months was slated for going live and subsequent checks. The mile-stones (largely based on SAP’s tried-and-tested ASAP methodology) areshown in Figure 6.3.

Figure 6.3 Overview Project Plan

Project prepa-ration

The six-week stage of project preparation included all the analysis andplanning tasks outlined above. It was driven primarily by SAP’s BusinessConsulting experts and set the stage for the subsequent implementation.During this step, project standards were established and initial decisionswere reached regarding organizational change management.

Boot camp—project team

training

A vital element of preparation focused on assembling the project teamand on training for all involved (provided by SAP Education). It wasdecided that a joint team would be established, with SAP Consulting incharge of project management. The team comprised SAP consultants(project managers and technical and applications specialists), as well asexperts from the company’s IT organization and user departments. Theproject as a whole had the sponsorship of the company’s CEO—a deci-sive factor in ensuring the success of initiatives of this kind. The heads ofIT and production chaired the steering committee.

Figure 6.4 Structure of the Project Team

Project preparation Boot camp – Project team training Project team kickoff Business Blueprint Realization – Phase one Final preparation – Phase one Go - live – Phase one Realization – Phase two Final preparation – Phase two Go - live – Phase two

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Business BlueprintDuring the Business Blueprint stage, a document was created collatingthe results of the assessments outlined above, as well as the findings of anadditional requirements workshop. Thanks to in-depth analyses con-ducted by SAP’s consultants during the preceding stages, the projectteam was able to design the business processes and IT landscape in detail.

Figure 6.5 Project Structure

Services delivered by the SAP consultants included SAP Technical Analysisand Design to verify the feasibility of the company’s solution. SAP Con-sulting aligned the technical design with the customer’s business require-ments, project-specific goals, timelines, and budgets, ensuring that thesystem architecture would deliver tangible business results. As part of SAPTechnical Installation, the SAP experts built a foundation for implementingthe SAP solution successfully and running it reliably over the long term.The service ensured that the customer’s IT environment would be config-ured properly for maximized performance, availability, and flexibility.

Two-phase implementation

Phase one—Lay the foundations for the O2C process (10 months): Thecompany completed its upgrade to mySAP ERP and introduced supportfor subprocesses, such as purchasing, order entry, warehouse manage-ment, shipping, accounting, and spare-parts management. mySAP ERPfunctions implemented included finance and accounting, sales and distri-

ORGANIZATION GUIDELINES

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bution, materials management, and purchasing. The enterprise also intro-duced the data-warehousing capabilities of SAP NetWeaver BusinessIntelligence (SAP NetWeaver BI).

Phase two—Enable supply-chain planning and execution processes (11months): The company introduced mySAP SCM for a number of subpro-cesses, such as demand planning, supply network planning, productionplanning, and detailed scheduling. It also deployed SAP software for plantmaintenance, as well as available-to-promise capabilities.

As part of the SAP Test Management Consulting service, the SAP expertsprovided the company with a detailed testing plan. Next, they guided thecustomer through solution testing to ensure a successful go-live. The con-sultants also delivered:

� SAP Technical Migration, helping the customer to make an efficientand cost-effective transition to a new solutionThe service helped the enterprise move data from legacy systems tothe new SAP solution and to migrate operating systems and databases.

� Removing non-value-added activitiesAs the company proceeded through phases one and two, it closelyscrutinized individual process steps in accordance with lean enterpriseprinciples. The goal was to determine opportunities for eliminatingnon-value-added activities. SAP’s expert consultants worked togetherwith the customer’s team to develop the corresponding process maps.They analyzed all individual steps of the relevant transaction and deter-mined the information necessary to support them. Where the com-pany intended to eliminate steps, SAP’s consultants helped to identifythe implications for information systems. Although it made sense toremove steps that did not add value, the consultants still had to ensurethat the resulting reduction in information would not impact decision-making. The team included experts from the company who knew theimplications of eliminating these steps, and informed the managementteam about proposed changes.

Together with SAP’s consultants, the customer’s project team pains-takingly mapped out the process flows to identify potential enhance-ments. These included opportunities for pooling inventory, areaswhere visual kanban signals could be used to manage production flow,and areas where sources of production orders could be consolidated.

Decision-making processes also offered scope for improvement. Theproject team was able to move routine decisions to a lower level of the



company’s hierarchy, thereby saving time and improving accuracy. Dueto the complexity of the 1,350 work centers, it was particularly impor-tant to examine each individual step and the associated transactions.The company has now eliminated all unnecessary transactions. By con-sidering the financial and operational significance of each transaction,looking closely at every step, and adopting a highly granular approach,the company has been able to capture vital information on each workcenter. This is now leveraged to streamline operations.

� Rationalization of product linesDuring the implementation, SAP Consulting helped the customer toreduce its 38,000 SKUs to streamline processes, reduce costs, andminimize activities that did not add value. The company defined twocategories of materials: core and non-core. The former are Make-to-Stock (MTS); the latter are Make-to-Order (MTO). To enable moreaccurate production scheduling, lead times were determined for theproduction of non-core materials. The rationalization has reduced thetotal number of SKUs to 5,800.

Organizational change management

During the project, the team recognized that rationalization raised issues,because the company firmly believed it needed vast inventories to meetcommitments to customers. The transition from large volumes of costlyinventory to lean production with very low inventories was a cause forconcern in the enterprise. To address this concern, the project team rec-ommended initiating a subproject for change management to accompanythe project rollout. This was built on the SAP Project OrganizationalChange service, allowing the customer to manage modifications andenhancements to its IT infrastructure effectively and thereby ensuring asmooth transition. Furthermore, employees acquired valuable knowledgeand skills, enabling them to maximize the benefits of the SAP solution.

Within the scope of the change management subproject, SAP’s consul-tants looked into:

� Change requirementsTo identify possible gaps between current and future processes, bene-fits of changes, and organizational impact

� Potential media and channelsTo evaluate the effectiveness of communication channels, includingcost-benefit analysis and planning

� Communication requirementsTo set out key messages, planning, and communication channelsbetween the main stakeholders and target groups



The project team then drew up plans for user training and knowledgetransfer, focusing on users’ real-world requirements.

Training SAP’s consultants and the customer’s project staff realized that trainingwould have to be developed at an early stage and continue beyond go-live. Moreover, they determined that some just-in-time training would beneeded in the run-up. The project managers recognized that the majorityof business-process design documents would have to be completedbefore training materials could be developed.

The company provided 80 key users with comprehensive training on thebusiness processes enabled by SAP solutions. Another 20 employees atits production facilities were upgraded to provide colleagues with trainingin accordance with local requirements.

6.2.8 Results

Sales andoperations

planning

The implementation enabled the enterprise to enhance its process forplanning sales and operations, improve the balance between supply anddemand, integrate production constraints into planning, and align opera-tional plans with revenue commitments in its business plan. Forecastaccuracy—a key factor in planning—improved significantly, rising from 21percent to 52 percent, and planners now have better information andtools for their day-to-day work. The company also has a far better insightinto profitability per product and per customer, and into its overall finan-cial situation. Financial closing has been cut from 10 days to five, and thecustomer expects to slash this number to just one day.

Manufacturing,planning, and

scheduling

The company leverages the powerful functions of mySAP SCM to sched-ule the manufacturing of thousands of products at its 1,350 work centers.Because of the extremely large number of possible routings for eachproduct, it needed an effective solution for scheduling and for presentingthe information required by management. The majority of its 900 injec-tion-molding machines can perform identical tasks. Together with thesheer number of products, bills of material, and routings, this made itimpossible to manage master data without an integrated solution. But,the SAP software enabled the company to group products, reducing thenumber of routes through the work centers from hundreds of thousandsto just 38. Moreover, by establishing 15 capacity centers, each compris-ing multiple work centers, the SAP consultants were able to improve thecustomer’s rough-cut planning and manage capacity constraints better.



This approach, which included careful mapping of products and workcenters to SAP data structures, enabled the company to master the com-plexity of its products and production processes using standard SAP func-tions. It can now leverage a vast quantity of data to create plans and iden-tify planning options, without having to employ large numbers of staff tomaintain master data. Moreover, it can now trace the source of finishedgoods, if certification is required, and identify the cause of quality issues.

Inventory management

Since the project kickoff, enhancements to the way the supply chain isplanned and executed have reduced the company’s finished goods inven-tory (see Figure 6.6), and the value of raw material in inventory has beencut by three million Euro (approx. 3.6 million USD). There was a slightincrease in inventory toward the conclusion of the implementation dueto a strategic decision adopted by the company. Nevertheless, inventoryquality improved and most slow-moving or obsolete products were elim-inated.

Figure 6.6 Reduction in Finished Goods Inventory

Available-to-promise

mySAP SCM’s standard available-to-promise functions are used for indi-vidual customer orders. If the product ordered or a preferred locationproduct is unavailable, the software uses rules to propose alternatives.This helps to reduce inventory and enhances customer service.

Improvements to perfect order rate

As shown in Figure 6.7, perfect order rates continuously improvedthroughout the implementation as the enterprise streamlined its planningand execution processes. Results varied according to business unit.Through improvements in order fulfillment and associated areas, therewas an 83 percent reduction in backorders.

Work-center utilization

The average utilization of work centers immediately increased by 12 per-cent. During the second year, a 17 percent improvement was achieved.

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Figure 6.7 Improvement of Perfect Order Rate

Projectgovernance and

organizationalchange

management

The company established a governance committee to oversee implemen-tation and guarantee compliance with company goals. While it investedconsiderable resources—including around 30 employees—it recognizedthat effective change management would be vital to the project’s success.The initial challenge was to ensure that people understood the projectwas primarily about business processes, and not merely software.

SAP Consulting moderated and drove the change management effort.The customer focused on communicating the changes to all levels of theorganization, generating widespread buy-in. To boost awareness, thecompany issued publications and held meetings to ensure that everyonewas up to speed with progress, the current focus, the business processesto be reengineered, and the possible effects on individuals and organiza-tions. Moreover, it guaranteed that all relevant decision-makers wereclosely involved and could provide input.

Conclusion The company’s new mySAP solution and the expert services provided bySAP Consulting enabled the company to pursue its growth strategy, con-solidate its IT, and streamline key activities more effectively. Integrated,standardized processes meant that it had the necessary flexibility torespond rapidly to changing customer needs and market conditions.

6.3 Standardized Process for Implementing an SAP Solution

A midsize company registered in Europe successfully develops productsfor the special pharmaceuticals and dietary supplement markets, withpharmaceuticals accounting for approximately 70 percent of sales reve-

Year 1 Year 2 Year 3 72%

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149Standardized Process for Implementing an SAP Solution

nues. The drugs developed in this business area must be licensed by therespective regulatory authorities of the country in which the product ismarketed and, for the most part, are available only by prescription. Reg-ulations regarding dietary supplements are significantly less stringent. Thecompany develops vitamin and mineral preparations on a natural basis,which it sells primarily through direct marketing.

Unmanageable network of applications

The company is by no means new to SAP: In an extensive project in 2001,the entire IT system landscape was revised and changed over to SAP,including the business processes. Sales revenues quadrupled in 1999 and2000, the years of expansion and rapid growth, and the company founditself with a complex network of different applications and customerdevelopments, unable to cope with future requirements. Effective plan-ning and control became elusive goals. Consequently, the decision wasmade to move human resources, accounting and cost management, andproduction planning and control to SAP solutions as soon as possible inorder to secure future success. Aided by SAP Consulting, the entireproject—from planning to going live—was realized in just eight monthsand proved to be a real success.

All this placed the company in an excellent position to tackle the chal-lenges that arose from continuing growth over the next few years. In2003, the company’s sales revenues cleared the one billion hurdle for thefirst time and continued to rise in 2004. A particularly dynamic sectorduring that time was the market for natural dietary supplements; the sig-nificant increase in demand was attributed to intensive marketing activi-ties at the start of 2005. The newly printed catalog, which included aneditorial, coupled with a direct marketing campaign, seemed to have tar-geted the right customers at the right time. This progress was not withoutconsiderable preparation, however. Even the subsequent analysis of thedirect marketing activities relied primarily on manual procedures—anarea identified by the marketing and sales managers as in dire need of anefficiency boost.

This growth was accompanied by a real increase in the sales organization,particularly for special pharmaceuticals, because employees in this areaconduct one-to-one sales meetings with doctors and pharmacists. Theydistribute product samples and promotional materials to increase aware-ness of the products and to demonstrate their effectiveness. This practice,however, is subject to legal requirements. In recent years, different coun-tries have revised their requirements. The observation of these require-ments, however, and documentation about compliance are essential for



the pharmaceuticals industry. Figure 6.8 illustrates a section of the com-pany’s current structure.

Figure 6.8 Overview of the Business Areas Involved

Deficits A critical analysis of sales performance conducted by the company’s man-agement body has uncovered serious deficits that cannot be resolvedsimply by restructuring the sales organization, due in part to the organi-zation’s growth and in part to increased demand. An initial analysis of thepharmaceuticals area revealed that employees spend far too long docu-menting their visits and that efficiency could be boosted if more flexibleoptions for entering and processing orders were introduced. The time-consuming and reactive processes currently in place lead to delivery bot-tlenecks one minute and excess capacity the next, which can even resultin whole batches being wasted due to product expiration dates.

In the dietary supplements area, which relies primarily on direct sales, it isrevealed that the Internet shop cannot cope with rising customerdemand. The call center will also need to expand in the near future, sincecallers already experience long waiting times at peak periods—an aspectidentified in a customer survey as most in need of improvement, alongwith the Internet shop’s poor user guide. The complicated user guide andperformance problems have recently been the cause of increasingly morelost orders as customers have canceled transactions. With all these factorsto consider, rapid action is vital.

Doctors, pharmacy Customer

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6.3.1 Strategy and Planning

Cross-selling potential

The management body sees an urgent need for an effective IT solutioncapable of boosting efficiency while also promising new and improvedcustomer service options, especially as ideas have also been suggested todovetail the two business areas more effectively. The sales managersregard direct contact between pharmaceuticals field staff and pharmacistsas a potential sales channel for vitamin products. According to an internalanalysis, this area harbors substantial cross-selling potential; however, itremains unexploited, because the data and processes from the two areasare not yet integrated. The plans for improved customer service alsoinclude a hotline for doctors and pharmacists, enabling them to contactthe manufacturer directly with urgent queries. The idea here is to run thehotline in the call center. Since the hotline will not be implementedimmediately, the new solution must be flexible enough to accommodateit quickly and without excessive external input.

mySAP CRMWith an SAP solution already in place and the experience gained fromworking with SAP Consulting on tap, the company opts for mySAP CRM,leaving planning and realization to the SAP specialists. Industry expertsfrom SAP Consulting conduct an initial analysis to determine the com-pany’s requirements and examine the current situation. They establishthat the company plans to achieve the following objectives by imple-menting mySAP CRM:

� Improve sales processes through more reliable planning, simpler pro-cedures for order entry, and more readily available information

� Retain customers better through enhanced customer service for endcustomers, doctors, and pharmacists

� Improve performance in the new Internet shop to cope with futurerequirements

� Ensure complete data and process integration with the back-office sys-tems

� Plan, execute, and control marketing campaigns better

BI and Mobile Sales

In view of these specifications, the experts propose implementing mySAPCRM with the data warehouse components from SAP NetWeaver Busi-ness Intelligence (SAP NetWeaver BI). They recommend SAP MobileSales for the mobile sales force and SAP E-Commerce for SAP R/3 as abasis for the Internet shop; the result is a solution that can be realizedquickly and cost effectively. In order to be up and running for the fall andwinter season—the company’s most important time of year—IT manage-



ment has drafted an aggressive schedule, leaving just seven months toimplement the system. On the advice of SAP Consulting, it divides theoverall project into two subprojects. The first subproject targets short-comings in the current Internet shop, with the new shop expected toyield real success in a short space of time. The bulk of the implementationproject falls in the second subproject, with the implementation of mySAPCRM with SAP Mobile Sales and SAP NetWeaver BI. Campaign manage-ment and the Interaction Center are scheduled for a later stage.

SAP SolutionManager

The company and SAP Consulting decide to use SAP Solution Manager toimplement and later to run the solution, since the company has alreadyobtained satisfying results with the implementation function availablewith this platform. SAP Solution Manager offers preconfigured content,tools, and methods to ensure high standards during the implementationand quality assurance phases. The objective is to use functions from SAPSolution Manager consistently to reduce costs and optimize the durationof the project.

The standardized implementation method ASAP is to be used throughoutto bring the entire project to a prompt and cost-effective close. Thisapproach is supported by the Implementation Roadmap, which is an inte-gral part of SAP Solution Manager. The company also intends to use BestPractices when implementing mySAP CRM, such as process templatesand Business Configuration Sets.

Figure 6.9 Project Plan for the Design and Realization of the Internet Shop

6.3.2 Project Realization

The first step is the project preparation phase, which involves document-ing the business environment, creating a project charter, and defining howthe project is to be planned and organized. This is also the time for settingstandards for documentation, reporting, and testing, as well as decidingwhich tools to deploy. Initial strategies for user training and documenta-

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tion are also compiled in this phase. Once the technical requirements anddesign are complete, the phase is concluded with a kickoff meeting.

SAP SafeguardingThe company and SAP Consulting decide to take advantage of servicesfrom the support program SAP Safeguarding, which aim to minimize therisks involved with the performance, hardware sizing, and technical sta-bility of interfaces and database systems. They appoint a Technical QualityManager (TQM) from SAP to supervise the project throughout to the go-live date and to coordinate the Safeguarding services with the projectteam.

Once the company has assembled a project team—a total of five peoplefrom the IT department and the sales and marketing areas—an initialworkshop is held in April 2005 to begin compiling a Business Blueprintfor the Internet shop and CRM implementation.

Business BlueprintThe Business Blueprint is at the core of the second project phase. It con-tains detailed plans and drafts for realizing all the customer’s require-ments. By the end of this phase, the team should have a Business Blue-print that documents in full all the tasks that must be completed duringthe project realization phase and that the appropriate decision-makershave signed off. When compiling the blueprint, the team discusses a widerange of issues relating to the forthcoming realization phase:

� Necessary organizational changes and communication of such changes

� Ongoing training for the project team

� Development of user training materials and documentation

� Design of an appropriate business and process structure

� Definition and development of authorization concepts

� Development and design of user interfaces and portals

� Documentation, definition, and initiation of any other necessarydevelopments

� Development and documentation of the technical and integrationdesign

� Definition of procedures for system administration

� Structure of the development environment

� Elaboration of technical support procedures

This is a critical phase in the project, because it is the stage at which pointall decisions concerning the functions and performance of the futuresolution are made. The extensive experience gained by the consultants in



various other pharmaceuticals projects proves extremely useful to thecompany’s team, making many decisions easier and reducing the timerequired to model processes and organizational structures. An efficientlink between the web shop and the mySAP ERP system renders additionaldevelopments and additional costs redundant. This is reflected in theconcept for the system architecture.

All information about the blueprint and a description of the processesand interfaces to be implemented are recorded in SAP Solution Manager.At the end of the Business Blueprint phase, the TQM organizes the firstSafeguarding service. The SAP Feasibility Check assesses the technical via-bility and any existing risks. A team of three SAP experts checks the blue-print, focusing on the plans for implementing the business processes andinterfaces. They draw their information from interviews with the projectteam, as well as from SAP Solution Manager. The service provides theproject team with recommendations for technical optimization. A serviceplan identifies areas for which additional services would be beneficial.One particularly critical issue is the mobile sales application for use by themobile sales force. Performance and technical stability are deemed to beproblematic.

Details of the project scope can now be ratified by the steering commit-tee. Based on the description and documentation of the processes to beimplemented, the plans for configuration and testing, as well as the inter-face design for the web shop and the development system, the projectrealization phase is given the go-ahead to begin in just three weeks.

Realization phase All the plans, designs, and content contained in the blueprint are put intopractice in the realization phase and prepared for use. The initial focus ison the Internet shop. While the company’s team receives training for thisphase, the experts initiate the first steps towards organizational changeand subsequent user training. They compile a training plan for solution-specific aspects and gather information for the contents. This plan is alsothe basis for the ensuing user training, which the company will provideitself using the train-the-trainer concept.

The basic system is set up and configured. A user interface is designed forthe web shop, which adheres to the requirements identified during theworkshop, and external web designers are engaged to create a modernand appealing interface. Careful thought must be given to legal regula-tions governing the sale of dietary supplements; customer informationand the associated documentation for this are the primary considerations.



SAP Consulting is able to draw on its pharmaceuticals experience to pro-pose a proven and reliable solution that complies with all legal require-ments.

The next step involves planning and preparing to integrate the newmySAP CRM solution and the existing mySAP ERP system. One of thesolution’s key advantages comes to the fore here, in that the customer’sprocesses are connected to the back-office system. The current solution isextremely susceptible to losing information, because the data is trans-ferred manually.

The project realization phase is also the time for planning and executing arange of integration tests, whereby the extensive system and solutiontests are not planned, prepared, or conducted until the next phase. The e-learning functions in SAP Solution Manager are deployed for user train-ing, including SAP Tutor. This tool allows you to record training materialand make it available to users for private study or documentation.

Finally, the processes and transactions have to be completed and thefunctions developed especially for the company’s web shop have to betested. At the same time, planning gets underway for the hand-over strat-egy and final rollout. The system is scheduled to go live at the end of Julyfor a limited number of test customers and be rolled out to all customersat the start of October if the test phase is successful. By the end of theproject realization phase, the new production environment has been fullyinstalled and configured, the processes and structures implemented, andthe test plans completed.

The TQM now prepares the SAP Technical Integration Check. SAP expertswork with the project team to identify any problems relating to the pro-cesses and interfaces that have been implemented. They complete anaction plan detailing how the SAP specialists can help the project teamduring the forthcoming integration tests with regard to the performanceand technical stability of the interfaces.

Final preparation phase

The final preparation phase covers user training (provided by SAP Educa-tion) and concluding tests. A complete functional and performance test isconducted with selected users, who took part in the first training coursemid June. The final performance test and assistance from the SAP expertscan optimize performance by 30 percent. During the SAP GoingLiveCheck, the final technical parameters are configured for the SAP applica-tion components and the database systems in use.



This is accompanied by final preparations for going live:

� All users attend the relevant courses. Basic training helps the companyreach its goals much faster, by ensuring that the solution is used effec-tively and productively from the outset.

� The results from the SAP GoingLive Check and other functional andsystem tests are checked and documented.

� Support structures are put in place for the production system.

The documentation for the technical landscape and the business pro-cesses is used to set up monitoring functions for the solution in SAP Solu-tion Manager. System monitoring focuses on the technical infrastructure,whereas business process monitoring targets technical aspects of thebusiness process with regard to performance and error scenarios. The SAPBusiness Process Management support service is available during thisphase and gives the company’s project team and support team access toadvice from SAP experts.

User support The service desk is set up in SAP Solution Manager to provide technicalsupport for users. The technical help desk therefore has access to theinformation in the documented processes and interfaces. The company’ssupport organization can also forward issues that it cannot resolve to SAP.

The production solution is handed over to the users mid July, two weeksbefore the planned date. A few days later, the Internet shop is openedofficially, initially for 50 selected test customers. It is opened to generalcustomers as early as mid September.

6.3.3 Implementation Results

In the months immediately after going live with the new solution, thecompany reported that Internet sales were up by almost 20 percent, andhad not impacted negatively on other channels. The number of customercomplaints fell by 65 percent. Feedback from various customers showsthat many older customers are now ordering over the Internet, becausethe Internet shop is easy and intuitive to use. Efficiency has been boostedin the back office, too. Three or four employees used to enter Internetorders in the mySAP ERP system, whereas now, only one employee isrequired to monitor and control the process. These extra resources will bevaluable in the company’s planned call center.

ROI in thesecond year

Direct access to the knowledge and industry expertise of the consultantsfrom SAP Consulting enables the solution to be implemented in record


157Creating a Custom Composite Application

time at minimal expense. The company can put the advantages to use inthe same year in its most important sales period, contributing greatly tothe amortization of the solution in the second year. With its hard workaffirmed by this success, the project team can turn its attention to newprojects, such as implementing SAP Mobile Sales and the InteractionCenter.

6.4 Creating a Custom Composite Application

Our fictitious enterprise is a large multinational organization. Like manycompanies, it was under pressure to strengthen its risk-managementpractices. Regulatory requirements like the Sarbanes-Oxley Act, KonTraG(German business supervision and transparency act), and Basel II calledfor a corporate-wide process for managing risk. In addition, risk-manage-ment practices were increasingly influencing the company’s businessdecisions, external negotiations, and capital market ratings.

Risk-management model

The enterprise did not have strong reporting capabilities for corporate riskmanagement to help it achieve its business objectives. It therefore beganby creating a corporate risk-management model that defined a processfor managing risk and described the high-level organizational prerequi-sites for sustaining risk-management capabilities. The model containedthe following process steps:

� Risk planningTo determine the approach to risk management in each business areaor project

� Risk identificationTo detect the operational risks facing each business area or projectbefore they become problematic

� Risk analysisTo evaluate risk attributes and prioritize the risks

� Risk responseTo decide how to handle risks

� Risk monitoringTo keep track of risks and evaluate the effectiveness of responseactions

Risk planning primarily involves defining processes and rules. All but thisfirst topic needed to be included in the new risk-management applica-tion.


287Index

Index

Numerics24/7 Support 1195-1-2 Maintenance Strategy 121

AAdaptive Business Strategies 15Adubos Trevo SA 92Advanced Problem Solving for

Customer SAP Support 206Advisory Council 49Alias 263Americas’ SAP Users’ Group (ASUG)

25, 49, 231Application Implementation 91Application Management 99, 103

Business Process Management 105Continuous Change 105Continuous Improvement 105Continuous Maintenance 104Second-Level Support 104SLA Management 105Solution Optimization 105Support Enabling 104

ASAP Methodology 142, 152ASUG 25, 49, 231Availability 209

BBasel II 157BC Sets 118, 216Best Practices 118Best Practices for Solution

Management 222, 246, 267Best-Run IT 21, 83, 209BOS 106BPO Powered by SAP 108Building 31Business and IT Strategy Consulting 59Business Blueprint 143, 153Business Configuration Sets (BC Sets)

118, 152, 216, 267Business Consulting 59Business Process Design 90Business Process Management 105

Business Process Monitoring 25, 163, 218

Business Process Outsourcing (BPO) 107

Business Processes, Innovation 17

CCanada Post 97Carl Edelmann GmbH & Co. KG 102CATT 217CCC → s. SAP Customer Competence

Center (SAP CCC)CCMS 219Certification 37, 84Certification, SAP NetWeaver 52Change Management 226

Tools 117Change Request Management with

SAP Solution Manager 206Chief Information Officer (CIO) 20Chief Process Innovation Officer

(CPIO) 20Chief Technology Officer (CTO) 20Client Consolidation 267Client Merge 200Client Migration Server (CMIS) 267Client Transfer 201Community 267Complete Execution 33Compose 17Composite Applications 19, 158Computer-based Training 36Computing Center Management

System (CCMS) 219, 267Consolidation 15, 17, 197Consulting 37Continuous Change 105Continuous Improvement 105, 267Continuous Maintenance 104, 267Contract Management 47Conversion Technology 267Conversion Workbench (CWB) 69,

200, 267Coordination of Development

Requests 47


Index288

Core Processes 16Cost Categories 252, 254Cross-Solution Services 222Custom Development 268Custom SAP Solutions 93Customer Messages 233Customer Relationships 15Customer Service Management 268Customer-specific Maintenance 114,

122, 268

DDaimlerChrysler AG 242Data Analysis 175Data Management and Archiving

Strategy 175Demands on Business IT 15Development Support 268Documentation 34, 36DSAG 231

EeCATT (Extended Computer Aided

Test Tool) 118, 217, 268Education 84Education Portfolio 36E-Learning 36, 112, 228Enablement 32Enterprise Services 18

Implementing 131Enterprise Services Architecture → s.

ESAESA 16, 18, 63, 128

Innovation through 19ESA Adoption Program 62, 63, 129

Phases 64Expert Guidance 32Expert Guidance Services 22Extended Computer Aided Test Tool

(eCATT) 118, 217, 268Extended Maintenance 114, 122, 269

FFresenius AG 89

Hhameln pharmaceuticals 228Hosting 99

Hot Spots 112HR Support Packages 115

IImplementation Guide (IMG) 118Implementation Roadmaps 116Information Management 47Innovation Velocity 15Instructor-led Training 36Integration Broker 159International SAP CCC Community 49Internet Transaction Server (ITS) 268INVISTA Resins&Fibers GmbH 39IT Infrastructure Library (ITIL) 43, 268IT Risk Management 54IT Service Management 86IT Strategy 59itelligence AG 226items GmbH 220ITIL 261iView 246

KKey Performance Indicators (KPIs) 219Knowledge Management 23, 268Knowledge Productization Services

(KPS) 268Knowledge Transfer 117KonTraG 157

LLHI Leasing GmbH 65Life Cycle of an IT Solution 31

MMainstream Maintenance 114, 121, 269Maintenance 269Maintenance Options 113Maintenance Phases 114Maintenance Strategy 121Marubeni Corporation 70Message Processing 224, 245Migration Technology 269Migration Workbench (MWB) 69, 194,

200, 269Multi-Display Multi-Processing

(MDMP) 184mySAP All-in-One 237


289Index

mySAP Business Suite 269mySAP Customer Relationship Mana-

gement (mySAP CRM) 151, 165mySAP ERP 124, 140, 179, 184mySAP ERP 2005 208mySAP Supply Chain Management

(mySAP SCM) 140, 165, 203

NNote Assistant 269

OOnline Catalogs 234Online Messages 118On-site Services 222, 235, 269Optimization Services 88Organizational Change Management

145OS/DB Migration 195Outsourcing 107, 207

PPartner Categories 28Partner Network 19Partner Program 84Planning 31Porsche AG 57Postbank AG 80Primary Support 269Proactive Services 117Product CCC 42, 44Product Maintenance 32Productization 23Program and Project Management 90

QQuality Management 32Quality Management Services 22Quick Links 230, 263

RRemote Function Call (RFC) 269Remote Services 222, 269Risk Management 54, 157Roadmaps 116, 118, 216, 227, 269Running 31RWD InfoPak 37

SSAP Accelerated Value Assessment 187SAP Active Global Support 269SAP Adaptive Computing 259SAP Advanced Planning & Optimi-

zation (SAP APO) 163SAP Application Hosting 102, 270SAP Application Integration 67, 270SAP Application Management 44, 85,

209, 211, 279SAP Best Practices 260, 270SAP Business and Value Assessment

60, 136, 270SAP Business Applications Upgrade

Consulting 92, 270SAP Business One 237SAP Business One Customer Portal

229, 238, 270SAP Business Process Improvement

91, 270SAP Business Process Management

(BPM) 88, 156, 206, 212, 270SAP Business Process Optimization 91,

170SAP Business Process Performance

Optimization (BPPO) 88, 170, 270SAP Business Strategy 60, 270SAP CCC 230SAP CCC Community 25, 48, 203SAP CCC Program 203, 204SAP CCCNet 231SAP Channel Partner Portal 229, 237,

270SAP Classified Advertising Mana-

gement 128SAP Composite Application

Framework 131SAP Configuration 91, 270SAP Consulting 151SAP Currency Conversion 69SAP Custom Development 158, 161,

270SAP Customer Competence Center

(SAP CCC) 25, 40, 230, 271Advantages 45Basic Functions 46Certification 46, 47Functions 43Organization 49


Index290

Processes 43Strategic Positioning 42Tasks 40

SAP Customer Competence Center Net 231

SAP Customer Competence Center Program 40, 45, 47

SAP Customer-Based Upgrade 191SAP Customer-specific Portals 229SAP Data Harmonization 68SAP Data Volume Management 88,

170, 174, 195, 196, 212, 253, 271SAP Developer Network (SDN) 85,

229, 235, 271SAP Development Consulting 91, 271SAP Development Maintenance 95,

271SAP Development Review 92, 271SAP Development Services 94, 271SAP Development/Prototype Hosting

101, 271SAP Downtime Assessment 191, 196SAP EarlyWatch Alert 23, 89, 182, 219,

244, 271SAP EarlyWatch Check 89, 112, 167,

244, 271SAP Ecosystem 18, 25, 27, 28, 84, 117,

213, 271SAP Education 36, 142

Measuring Success 38Specific Requirements 38Target Groups 38

SAP Education Portfolio 35SAP Empowering 50, 203, 271SAP Empowering Workshops 35, 205,

271SAP Enterprise Buyer (SAP EB) 164SAP Evaluation Hosting 101, 271SAP Expertise on Demand 72, 81, 170,

172, 272SAP Feasibility Check 56, 170, 175, 272SAP Feasibility Study 63, 272SAP for Automotive 206SAP for Media 128SAP for Oil & Gas 184SAP Globalization and Language

Consulting 62, 272

SAP GoingLive Check 56, 112, 117, 155, 182, 272

SAP GoingLive Functional Upgrade Check 58, 117, 188, 272

SAP Help Desk 272SAP Help Portal 34, 229, 241, 272SAP Hosted E-Learning 101, 272SAP Hosting 196, 272SAP Hosting Services 99SAP HotNews 232, 272SAP Implementation Hosting 101, 272SAP Interface Management 67, 88, 272SAP Internet Transaction Server (SAP

ITS) 180SAP IT Assessment 62, 272SAP IT Planning 62, 137, 272SAP IT Risk Management 90, 272SAP IT Service & Application

Management 36, 43, 44, 273SAP IT Service Management 44SAP IT Strategy 60, 273SAP Knowledge Shop 273SAP Knowledge Transfer Optimization

193SAP Learning Solution 37SAP Legacy System Migration Work-

bench (LSMW) 202, 273SAP Life-Cycle Framework 84SAP List Viewer Conversion 273SAP Managed Services 99, 106, 162,

207, 273SAP Master Data and Content Mana-

gement Consulting 91, 273SAP MaxAttention 72, 113, 114, 120,

165, 166, 273Elements 74Expert Services 74Front and Back Office 79Management Component 168Outsourcing 79Phases 77

SAP MaxSecure 76SAP Mobile Sales 151SAP Modification Clearing 188, 273SAP NetWeaver 18, 63

Certification 52SAP NetWeaver Application Server

131, 180


291Index

SAP NetWeaver Business Intelligence 131, 140, 151, 180

SAP NetWeaver Development 273SAP NetWeaver Empowering 51SAP NetWeaver Exchange Infra-

structure 131SAP NetWeaver Management 44, 210,

211SAP NetWeaver Master Data Mana-

gement 131, 141SAP NetWeaver Portal 131, 246SAP Notes 273SAP Notes Database 118SAP Notes Search 232SAP Online Knowledge Products

(OKP) 35, 273SAP Operations Competence

Assessment 51, 203, 273SAP Organizational Structure Change

68SAP OS/DB Migration Check 57, 117,

274SAP Partner Directory 274SAP Partner Portal 229, 239, 274SAP Partner Program 28SAP Premium Support 113, 119, 274SAP Product Innovation Lifecycle (PIL)

34SAP Program Management 90, 274SAP Project Management 90, 274SAP Project Organizational Change

90, 274SAP Project Review 92, 274SAP Quick Upgrade Evaluation 193SAP R/3 Enterprise 124SAP Ramp-Up 179, 208, 274SAP Ramp-Up Hosting 101, 274SAP Ramp-Up Knowledge Transfer 34,

183, 274SAP Ramp-Up Knowledge Transfer

Program 35, 48SAP Remote Applications Operation

274SAP Remote Performance

Optimization 88, 275SAP Risk Assessment 60, 275SAP Safeguarding 54, 153, 175, 275

Implementation 56

SAP Operations Readiness Assessment 56

Services 55SAP Safeguarding Checks 54SAP Safeguarding for Contract

Accounting (FI-CA) 59SAP Safeguarding for Implementation

55, 275SAP Safeguarding for SAP Bank

Analyzer 59SAP Safeguarding for Solution Impro-

vement 57, 275SAP Safeguarding for Upgrade 58, 275SAP Safeguarding Planning 56SAP Safeguarding SCM 59SAP Security Concepts 275SAP Security Concepts and Implemen-

tation 91SAP Security Optimization 88SAP Service Catalog 235, 245, 275SAP Service Channel 245SAP Service Marketplace 25, 28, 112,

117, 213, 229, 275Access 230and SAP Solution Manager 243Quick Links 263Structure 230

SAP Services 21, 275SAP Software Catalog 235SAP Software Distribution Center 234,

275SAP Software Shop 275SAP Solution Expert Consulting 91, 275SAP Solution Implementation

Consulting 91, 275SAP Solution Management

Assessment (SMA) 43, 55, 57, 67, 166, 167, 276

SAP Solution Management Optimi-zation 83, 87Areas 88Optimization Services 88

SAP Solution Manager 24, 117, 131, 152, 166, 213, 214, 276and SAP Service Marketplace 243Best Practices 246Change Management 226E-Learning 228


Index292

Expertise on Demand 81Graphical Interface 218Implementation 216Monitoring 218On-site Services 222Operations 221Remote Services 222Roadmaps 227SAP Tutor 228Self Services 221Service Desk 156, 223Testing 228

SAP Solution Manager Starter Pack 276

SAP Solution Prototyping 63, 276SAP Solution Review 92, 276SAP Solution Testing 92, 276SAP Standard Support 59, 113, 114, 165,

276SAP Storage Subsystem Optimization

88, 276SAP Strategic Enterprise Management

(SAP SEM) 165SAP Strategic Organizational

Alignment 60, 276SAP Strategic Outsourcing Consulting

276SAP Support 278SAP Support Academy 276SAP Support Alliance Manager 278SAP Support Portal 229, 231, 276SAP System Administration 88, 170,

173, 212, 277SAP System Architecture Planning 62,

277SAP System Fitness Check 209SAP System Landscape Consolidation

& Harmonization 68SAP TCO Analysis 60, 277SAP TCO Database 254, 257SAP TCO Framework 251, 252, 277

Building Blocks 253SAP TCO Model 254SAP TCO Reduction Procedures 254,

258SAP TCO Reference Parameters 256SAP Technical Analysis and Design 91,

143, 277

SAP Technical Feasibility Check 67, 154SAP Technical Installation 91, 143, 277SAP Technical Integration Check 56,

67, 155, 170, 176, 277SAP Technical Migration 91, 144, 277SAP Technical Program and Project

Management 90, 277SAP Technical Review 92, 277SAP Technical Upgrade Consulting 92,

277SAP Test Data Migration Server (SAP

TDMS) 278SAP Test Management Consulting 144SAP Test Management Optimization

88, 192, 278SAP TopNotes 233, 278SAP Tutor 37, 228, 278SAP Unicode Workshop 189SAP Upgrade Coach 190SAP Upgrade Hosting 101, 278SAP Upgrade Road Map 116, 185, 187SAP Upgrade Weekend Support 194SAP Value Measurement 91, 278SAP Volume Test Optimization (VTO)

88, 278Sarbanes-Oxley Act 157SDCC 219Second-Level Support 104, 278Self Services 221, 278Self-learning Materials 36Service and Support Infrastructure 278Service Data Control Center (SDCC)

219, 278Service Delivery 221Service Desk 156, 213, 223Service Infrastructure 24Service Level Agreement (SLA) 219,

225Service Level Agreement Mana-

gement/Service Reporting 278Service Level Management 218, 278Service Level Reports 219Service Offering 22, 31, 33

Constant Evolution 25Service-oriented Architecture (SOA)

18, 63Siemens Communications 60Sizing 278


293Index

SLA Management 105SLA Monitoring 225SLO Expert Packages 69Solution and Architecture Design 62Solution CCC 42Solution Integration 67Solution Optimization 105Sony Electronics Inc. 53Strategic Outsourcing Consulting 102Support Advocate 168, 278Support Alliance Manager (SAM) 74,

168Support Desk 46Support Enabling 104Support Enabling/Coaching 279Support Offerings 113Support Package Stack 115, 260Support Packages 115, 279Support Process Consulting 279Support Services 112Support Strategy Consulting 279Support Tool Consulting 279System Data Maintenance 232System Landscape Consolidation 197System Landscape Design & Planning

279System Landscape Optimization (SLO)

67, 194, 198, 279Procedure Model 198

System Management & Monitoring 279

System Merge 201System Monitoring 218System Switch Upgrade 260

TTeam Training 33Technical Quality Manager (TQM) 74,

153, 166, 279Tasks 76

Technology Architecture Design 62Test Workbench 217, 279Testing 118, 228Training Catalog 279Training Program 36

UUnicode 185, 196

Upgrade 58, 115, 179, 183, 226, 260mySAP ERP 2005 208

User Data Administration 234User Training 33

VValue of Maintenance 111

WWeb Services 18, 63


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