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The Dos and Don'ts in SAP Implementations(or, What Is SAP and How To Get IT Right)
Slide 2 BCS Noth Staffordshire - What Is SAP?
SAP ERP Implementation
What is SAP ERP
System Landscape and Architecture
Standard Functionality, Customisation and Extensions
Dos and Donts
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Process-oriented information concepts
International SAP-consultancy and development
Services in the SAP-environment
Foundation: April, 1996
Business Areas ERP Business Intelligence Business Integration
Affiliates PIKON Deutschland AG PIKON Belgium NV PIKON UK Ltd.
Preferred Supplier of SAP AGSAP Services PartnerSAP Special Expertise Partner
PIKON International Consulting Group
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Slide 6 BCS Noth Staffordshire - What Is SAP?
What is SAP ERP?
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Who is and what SAP?
The company SAP was founded in 1972 by four former IBM employees
SAP is today the worlds largest enterprise software company, the biggest software
company in Europe and one of the biggest software companies in the world.
Corporate headquarters: Walldorf, Germany
Size (2010): 12.5 billion EUR revenue, 1.8 billion EUR profit, 53,500 employees in
over 50 countries.
Main Products SAP ERP (formerly known as R/3)
SAP Business Intelligence (Business Warehouse & SAP BusinessObjects portfolio)
SAP Business Suite (incl. ERP, CRM, SCM, SRM, PLM)
SAP BusinessOne (SME solution)
SAP Business ByDesign (software as a service offering)
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What is an ERP system?
ERP (Enterprise Resource Planning) Acronym first employed by the Gartner Group in 1990 (as an extension of MRP)
Integrates internal and external information with regards to the companys business processes across the whole organisation.
ERP systems Automate the information integration
With the purpose to facilitate the flow of information between all business functions along the companys processes inside the organisation and to enable the connectionto outside stakeholders.
Pre mid 1990s: mainframe architecture
Since mid 1990: client-server architecture
Typical characteristics Integrated, real time operation
One common database
Consistent look and feel
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SAP ERP the Product
SAP ERP SAPs flagship product
Targets the business software requirements of mid-size to large organisations in all
industries and sectors.
Worldwide approx. 100.000 customers and 12 million users
World market share in 2005: 28.7% (Gartner Dataquest)
Probably the most comprehensive and sophisticated ERP solution on the market
Covers all typical organisational functions
Processes and functions are customisable through setting of parameters on the
database (approx. 20,000 tables).
Standard functionality can also be enhanced with new code at predefined points in
the code of standard programs (customer exits, user exits, business add-ins,
SAP ERP comes with its own development environment (for enhancements or own
Source code is fully supplied by SAP.
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SAP ERP Modules
SAP ERP includes several modules, which are similar to the typical departmental structure of an organisation.
Accounting FI Financial Accounting (G/L, AR, AP etc.)
CO Management Accounting / Controlling
IM Investment Management
PS Project System
Logistics (operations) SD Sales and Distribution MM Materials Management
PP Production Planning
PM Plant Maintenance
CS Customer Service
QM Quality Management
Human Resources (Personnel, Time, Payroll, )Cross-component
The modules are all fully (real-time) integrated but can be activated separately over time.
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A process-oriented ERP-introduction makes sure that all business processes are fully supported.
SAP ERP Integrated Processes
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SAP ERP - History
History 1973: SAPs program RF (later called R/1)
R/2 - mainframe-based ERP system
2001: mySAP ERP
2007: SAP ERP
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SAP ERP - Architecture
Three-tier client-server architecture Database server data storage (relational SQL database, e.g. Oracle, MS SQL-
Server, DB2, Informix etc.)
Application server business application logic (SAPs programming language
ABAP/4, runtime environment SAP Kernel in C)
Presentation layer (client) data presentation and input
Recommended system landscape Development system (only development and customizing)
Test system (testing and QA)
All linked by the transport system to ensure consistent and controlled implementation
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SAP Implementation Projects
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Common Misconceptions (1)
SAP projects are IT projects: No, its a joint task of business and IT. The business needs to take ownership and management needs to support the project.
SAP projects are all about customising and development: Forget customising. Customizing is easy. SAP Projects are all about proper (reliable and stable) concepts and good change management.
Pre-configured systems are much better and cheaper than starting from scratch: Forget pre-configured systems. Customising is based on organizational data. These are unique for your company, so you need to start from scratch. Better than pre-configured systems are process templates which describe how industry-specific processes can be implemented in SAP. But keep in mind: Using pre-configured, state-of-the-art processes does not make you better in comparison to your competitors. No problem for standard processes and financials. But for the processes in which you have competitive advantages, you might want a tailor-made solution (within the SAP standard).
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Common Misconceptions (2)
Cant have the tail wagging the dog: Sooner or later, the business will ask if they should adopt their processes to the way SAP works. The answer is: Yes.
By choosing to work with standard software an organisation chooses to adapt
themselves to some extent to the software. Do not modify the SAP standard
unless you must. Even with modifications you will never achieve the comfort an
individual solution, but you will lose the advantages of standard software. You
will be trapped in the middle.
Data takeover is an easy technical exercise: Do not underestimate the task. It is also necessary to cleanse data which is not possible without the
business input. Start early with your data migration concept.
All users have to be trained for weeks before go-live: User training is good, but training on the job is very good. With a tight budget provide basic
training to all users but rather spend more on after go-live support.
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Common Misconceptions (3)
By using ERP software we will standardise our processes automatically:Usually IT does not have the power (and sometimes knowledge of the
environment) to force business units to use standardised processes. An ERP
system enables process standardisation but cannot guarantee it. The first step
in process standardisation has to be made by the business. To ensure the
maximum standardisation possible through IT, use the Global & Local Blueprint
Detailed system documentation is too expensive: Good documentation does not only describe what has been done (that anyone can see in the system)
but much more why it was done in this way. Otherwise youll spend the money
twice over as maintenance and support becomes much more expensive.
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The Dos (and Donts) in SAP Implementation
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Project Team & Project Goals
Dos Project Team Usually organisations do not have enough internal IT resources with sufficient
capacity and expert knowledge to implement SAP EPR on their own, hence the early
selection of an appropriate consulting partner is essential.
Implement a key user concept and empower the key users to make binding
Define interested employees, who know the organisations processes as key users.
Usually managers are not well-suited as they have other priorities. Dont forget to
backfill as key users will at times not be available to do their normal job.
Ensure the project team (internal and external) remains stable throughout