The Dos and Don'ts in SAP Implementations - bcs.org · 1973: SAP’s program RF (later called R/1)...

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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

BCS Noth Staffordshire - What Is SAP?

SAP ERP Implementation

Introduction

What is SAP ERP

� System Landscape and Architecture

� Integrated Processes

� Standard Functionality, Customisation and Extensions

SAP Implementation

� Misconceptions

� Dos and Don’ts

Q&A

Agenda


Introduction


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


Our Customers


What is SAP ERP?


Who is and what SAP?

The company � SAP was founded in 1972 by four former IBM employees

� SAP is today the world’s 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)


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 company’s 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 company’s 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


SAP ERP – the Product

SAP ERP� SAP’s 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”,

etc.)

� SAP ERP comes with its own development environment (for enhancements or own

(add-on) developments.

� Source code is fully supplied by 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.


Customers

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

Suppliers

Debitors

Vendors

SAP ERP – Integrated Processes


SAP ERP - History

History� 1973: SAP’s program RF (later called R/1)

� R/2 - mainframe-based “ERP” system

� SAP ERP

� 1993: “R/3”

� 2001: “mySAP ERP”

� 2007: “SAP ERP”


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 (SAP’s 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


SAP Implementation Projects


Misconceptions


Common Misconceptions (1)

“SAP projects are IT projects”: No, it’s 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).



“Can’t 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.



“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

Concept.

“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 you’ll spend the money

twice over as maintenance and support becomes much more expensive.


The Dos (and Don’ts) in SAP Implementation

Projects


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

decisions.

� Define interested employees, who know the organisation’s processes as key users.

Usually managers are not well-suited as they have other priorities. Don’t 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 the project.

Dos – Project Goals� Define and communicate clear, realistic and measurable project goals.

� Get management buy-in and support.


Project Management

Dos – Project Management� Define a clear project organisation that involves top management (steering

committee)

� Define and communicate clear roles and responsibilities (also for stakeholders)

� Have a project plan with clear milestones and deliverables in place and ensure all

changes are communicated within the team.

� Do not overcomplicate your project plan.

� Define priorities.

� Focus on core, business critical functions and processes.

� Create a prototype as early as possible – enables key users to understand the

system better.

� Allow for contingencies (min. 10%)


design build training test go livesupportoptimise

question list know-how

blueprint

training documentsconfigured system

documentation configured systemconverted dataprograms

functional designblueprint

trained usersuser documentations

tested system

operative system

configured systemtest processes

tested systemtest documentation

INPUT

OUTPUT

Project Management: Planning, Communication, Evaluation

Project Method: Project Phases


Project Communication

Dos – Communication� Communication is essential: within the project team, towards the organisation and

management and also to outside stakeholders.

� Have regular meeting with management. Inform them of progress and listen to their

concerns.

� SAP implementations bring changes, and people do not like changes. Whatever you

have estimated for the required project communication, multiply it by 10.

� Do not forget stakeholders in your communication concept (customers, vendors etc.)

� Good project communication does not only transport information, it also considers

fears and emotions.


Key success factors

Project Success

Clear Goals

Clear PlansClear Communication

Clear Commitment


Thank you for your attention!

Contact: Timo Burkard

Phone: +44 1332 63 8070

Mobile: +44 7534 506132

eMail: [email protected]

Web: http://www.pikon.com


Q&A

The Dos and Don'ts in SAP Implementations - bcs.org · 1973: SAP’s program RF (later called R/1)...

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