The Dos and Don'ts in SAP Implementations - · PDF file1973: SAP’s program RF...

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    The Dos and Don'ts in SAP Implementations(or, What Is SAP and How To Get IT Right)

    15-02-2011, Stoke

  • Slide 2 BCS Noth Staffordshire - What Is SAP?

    SAP ERP Implementation


    What is SAP ERP

    System Landscape and Architecture

    Integrated Processes

    Standard Functionality, Customisation and Extensions

    SAP Implementation


    Dos and Donts



  • Slide 3 BCS Noth Staffordshire - What Is SAP?


  • Slide 4 BCS Noth Staffordshire - What Is SAP?

    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

  • Slide 5 BCS Noth Staffordshire - What Is SAP?

    Our Customers

  • Slide 6 BCS Noth Staffordshire - What Is SAP?

    What is SAP ERP?

  • Slide 7 BCS Noth Staffordshire - What Is SAP?

    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 Netweaver

    SAP BusinessOne (SME solution)

    SAP Business ByDesign (software as a service offering)

  • Slide 8 BCS Noth Staffordshire - What Is SAP?

    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

  • Slide 9 BCS Noth Staffordshire - What Is SAP?

    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

    (add-on) developments.

    Source code is fully supplied by SAP.

  • Slide 10 BCS Noth Staffordshire - What Is SAP?

    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.

  • Slide 11 BCS Noth Staffordshire - What Is SAP?


    A process-oriented ERP-introduction makes sure that all business processes are fully supported.




    SAP ERP Integrated Processes

  • Slide 12 BCS Noth Staffordshire - What Is SAP?

    SAP ERP - History

    History 1973: SAPs program RF (later called R/1)

    R/2 - mainframe-based ERP system


    1993: R/3

    2001: mySAP ERP

    2007: SAP ERP

  • Slide 13 BCS Noth Staffordshire - What Is SAP?

    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)

    Productive system

    All linked by the transport system to ensure consistent and controlled implementation

    of changes

  • Slide 14 BCS Noth Staffordshire - What Is SAP?

    SAP Implementation Projects

  • Slide 15 BCS Noth Staffordshire - What Is SAP?


  • Slide 16 BCS Noth Staffordshire - What Is SAP?

    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).

  • Slide 17 BCS Noth Staffordshire - What Is SAP?

    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.

  • Slide 18 BCS Noth Staffordshire - What Is SAP?

    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.

  • Slide 19 BCS Noth Staffordshire - What Is SAP?

    The Dos (and Donts) in SAP Implementation


  • Slide 20 BCS Noth Staffordshire - What Is SAP?

    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