SCM Upgrade & Instance Consolidation Dennis Marcinek & Christine Johnson, PepsiCo
Disclaimer: The views and opinions expressed in this document and presentation are those of the author and do not necessarily reflect those of the company.
Learning Points
PepsiCo Overview
Our SCM Upgrade & Instance Consolidation Project
Key Lessons Learned
Question & Answer
Todays Agenda
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Learning Points
Process of taking an SAP upgrade project from ideation to approval
Strategies and execution used to mitigate project cost and risk
Practical lessons learned by PepsiCo during go-live cutover and stabilization
Who We Are
Global Beverages Global Snacks Global Nutrition
Brands
22 billion-dollar
brands
Performance
More than $65 billion
revenue
Scale
>200 countries & territories
People
~300,000 employees
PepsiCo is a global food and beverage powerhouse.
Our broad range of more than 3,000 delicious products offers consumers
convenient, nutritious and affordable options in nearly every country around the world.
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Our SAP North American Journey
RELEASE 3
Mfg & Logistics
Financials
Equipment Service Management
RELEASE 1
Indirect Procurement
RELEASE 4
Integrated Supply Chain Planning
RELEASE 6
Trade - Funds,
Promotions & Claims
Financial Planning
Order to Cash & ESM Upgrade
RELEASE 7
Order to Cash
RELEASE 9
Payroll &
Human Capital Management
2006 2007 2008 2009 2010 -12
R3 R1 R2 R5 R4 R6
RELEASE 2
Order to Cash
Demand Planning
RELEASE 5
Financial Planning
R9 R7
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Our project scope: North America ISCP Landscape
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Our project at a glance
Opportunity Upgrading SCM 4.1 to 7.02 platform creates an SCM landscape simplification opportunity
Enables significant annual labor and infrastructure savings
Additional annual savings through elimination of SAP *CDP maintenance contract
Scope Upgrade SCM/APO environment from version 4.1 to 7.0 Enhancement Pack 2
Consolidate SCM/SNC Customer Collaboration functionality onto upgraded SCM 7.02 environment
Retire obsolete SCM/SNC landscape
Timeline 32 week project duration; go-live target: P2 2013
Operational necessity as SCM 4.1 currently in extended maintenance until April 2013
Cost Considerations PepsiCo and contractor labor
Project landscape and consolidated instance sizing requirements
SAP AGS support
Benefits Inherent performance improvement with upgraded liveCache architecture mitigates SLA risk
Ability to leverage newer SCM 7.02 capabilities
Tailwind for strategy to further simplify ISCP landscape and expand SAP footprint
Risks Delaying upgrade postpones consolidation savings and prevents benefits realization
Expensive SAP time & material support beyond extended maintenance (4/2013); no Service Packs or patches
Disruption to overall SAP Upgrade Roadmap schedule
*Customer Development Project
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Developing a strong business case is key to obtaining upgrade project funding
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Business Case benefits breakdown
Reduce *Support Costs
Reduce Infrastructure Costs
Eliminate Annual CDP Costs
*BASIS, Security, DBA, UNIX/Storage
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We developed an internal proposal to compete in Request for Proposal process
PepsiCo
Supplier B
Supplier A
PepsiCo
Process steps: 1. Develop Request for Proposal
(RFP) and invite suppliers to participate
2. Evaluate written proposals and select suppliers for oral presentations
3. Select preferred suppliers for deeper dive
4. Make decision
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In-sourcing the project using internal PepsiCo resources had many advantages
Deep knowledge of complex ISCP solutions
SAP/SCM expertise
Strong relationships with business partners
Partnerships with integration teams
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Our strategy to mitigate project cost and risk
Technical upgrade only Excluded bundling of business funded enhancements
Document simplification opportunities for follow-up
No activation of Enhancement Pack functionality EHP2 applied with all Business Functions/Switches deactivated
Split-node landscape approach Share break/fix environments vs. project landscape build-out
Utilize Upgrade Accelerator Tool to expedite custom code remediation and landscape consolidation
Mixture of Project & Baseline funded resources Ease transition to Sustainment organization
Partner with SAP AGS Dedicated upgrade expertise support
OSS escalation
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Split-node approach reduced project landscape cost
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An innovative approach was required to deliver our project within available Center funding budget
Challenge Approach
Partnered with Enterprise Planning & Delivery to
conduct tool evaluation
Reduce Project Cost
Utilize Upgrade
Accelerator
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We utilized multiple smartShift tools on our project
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smartShift provided bang for the buck value
Additional project savings realized by using smartShift to remediate complex Customer Development Project vs. SAP
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It takes a village to pull off a successful upgrade
Project staffing involves multiple teams
Functional Expertise
SAP Development
SAP BW
SAP Security
BASIS
Portal
ECC Integration
(CIF)
Middleware
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Project Phases Highlights/Recommendations
Blueprint
Software upgrade
Unit test upgrade code remediation
Mocks
At least 2 mock upgrades and a cutover rehearsal
SAP AGS involvement : dedicate days to experts to support
Realization
System Test : Prioritize code remediation
Allows lead time on OSS messages
Regression Test: Quality of solution remains in-tact
2 rounds and involve super users in testing
Performance Test : before upgrade/after upgrade benchmarks are critical to understand SLA impacts
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Project Execution Phases Highlights/Recommendations
User Acceptance
Involve key end users
Mock and Cutover Rehearsals
SAP AGS dedicated service plan support
TQM Lead for OSS escalation
Involve super users in check-outs
They know the data and will spot things typical IT support wouldnt
Go-Live
2-3 Week Hyper-Care
Plan with 24/7 support for all areas
Involve super users and business end users in check-outs
War Room Set-Up
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Key Learning / Best Practices
1. Project environment needs to mirror production as closely as possible in terms of infrastructure, integration, and data volume
2. Upgrade Accelerator tools are no magic pill. Additional development work and functional review is required
3. Practice makes perfect. Incorporate as many cutover rehearsals as possible into project plan
4. Collaborate with business partners to develop a comprehensive contingency plan
5. Involve business Super Users in testing cycles
6. Dont declare victory until full planning cycle is executed; daily & weekly
7. Inherent performance improvements are a reality!
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Contact Information
www.Pepsico.com
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Questions
Is there anything we can help clarify?
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