System Landscape Optimization (SLO) group
Overview
May, 2013
© 2013 SAP AG. All rights reserved. 2
Agenda System Landscape Optimization
The challenge of reflecting business requirements to your SAP landscape
SAP’s answer: System Landscape Optimization
SLO Services Portfolio
Benefits of using SLO services
© 2013 SAP AG. All rights reserved. 3
Challenging Factors That Put Pressure on IT
to Transform
Translate business
requirements to the IT
level
+
Show the business
value of IT
innovations
IT shifting from
managing information
systems to supporting
business processes
Pressure on IT to
deliver more with less
Complexity is rising
and time frames for
adapting complex IT
landscapes are
decreasing
IT Transformation
© 2013 SAP AG. All rights reserved. 4
IT Standardization, Consolidation & Migration Are
Top Priorities
Source: Capgemini, Application Landscape Report 2011
© 2013 SAP AG. All rights reserved. 5
Strategic
business
transformation M&A M&A
Value chain
transformation
IT landscape
transformation
Typical IT Transformation Drivers
• Maximize cost savings
• Reduce transformation time
• Ensure business continuity
• Support upcoming changes in
business
• Accurate and timely
financial reporting and
controlling
• Reduce transformation
time
• Convert currencies
• Ensure business
continuity
• Reduce transformation
time
• Support upcoming
changes
• More efficient HR
services
• Globally standardized
HR processes
• Reduce transformation
time
Bu
sin
es
s Im
pac
t
• Maximize net profit
• Reduce overall timeframe
• Reduce risk endangering
transaction
• Maximize net profit
• Reduce time for integration
and synergies
• Ensure business running
smoothly
M&As Divestitures Restructuring
Finance&Controlling Logistics & Operations HCM
System harmonization & consolidation
• Reduce run and project costs and IT spending
• Reduce complexity in operations and development
• Ensure business continuity
• Support changes in business
© 2013 SAP AG. All rights reserved. 6
Business transformation
Increased agility
Process innovation
Ease M & A and outsourcing
Management of IT complexity
Development efficiency
Operations efficiency
Landscape consolidation
Reduction of migration risk
Business process productivity
Business process quality
Increased insight
Business
strategy
Processes and
organization
IT management
From Business Strategy To IT Architecture
supplier enterprise customer
physical & IT resources
© 2013 SAP AG. All rights reserved. 7
Agenda System Landscape Optimization
The challenge of reflecting business requirements on your SAP landscape
SAP’s answer: System Landscape Optimization
SLO Services Portfolio
Credentials and Benefits of using SLO
© 2013 SAP AG. All rights reserved. 8
Transformation Needs Realized Via SLO Services
Set up test
landscapes
(TDMS)
Performance
Optimization
Decommission
legacy systems
(ILM)
Develop
transformation
road maps
Document
transformation
results
Carry out
technical
analyses
Minimize
system
downtime
Process
optimization
Structural
optimization
Data
harmonization
= = = =
Region 1
Region 2
Region 3
BU
1
BU
1
BU
1
Change
Transformation scenarios
Merge
Split
Specific project requirements
© 2013 SAP AG. All rights reserved. 9
How Transformation Requirements Are Realized Via SLO
services
How to:
Minimize risks ?
Software-based in-depth
analysis of as-is situation
Consideration of
business objectives
Analysis of technical
requirements and
optimization potential
Estimation of efforts and
costs
Creation of solution
approaches
encompassing all
possible transformation
scenarios
Setting-up a project plan
Implement a blueprint
Carry out technical
transformation activities
Use accelerators for
specific technical
requirements ...
Transformation
requirements
Realization via SLO services
Analysis and
evaluation
End To End
support
Requirements
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Value of Transformation Via SLO Services
High
Re-implementation required
Change management Impact on daily
business
Minimum
No disruption of business processes
Only Need for harmonization & testing
High
New setup & alignment of processes required
Manual
effort
Minimum
Migration done via proven SAP technologies
- No manual posting procedure
- Production migration on the weekend
Harmonizing only conflicting data
(e.g. Repository, Customizing)
Low
Not possible
Limited
Destruction of document flow
Data access only via old structure
Business
value
High
Transfer of complete and open processes
Preservation of all historical data
Continuation of document flow
Data continuity and consistency
Saving time and money by operating on
database level
SLO approach Standard approaches
© 2013 SAP AG. All rights reserved. 11
Agenda System Landscape Optimization
The challenge of reflecting business requirements on your SAP landscape
SAP’s answer: System Landscape Optimization
SLO Services Portfolio
Credentials and Benefits of using SLO
© 2013 SAP AG. All rights reserved. 13
Sell, Buy and Restructure
Integrate newly acquired companies
Adapt system landscape to new or changed business requirements
Introduction of global business templates
Realignment of existing business processes and company portfolio
Exploit synergies in M&A scenarios
Realize carve-out scenarios
Realize complex reorganization scenarios without impacting ongoing
business operations
Leverage
Sell, Buy
and Restructure
Typical transformation requirements
M&As Divestitures Restructuring
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The Solution
SLO Services For Sell, Buy And Restructuring Scenarios
Initial assessment of individual technical integration or approach to divestiture
Software-based technologies and standardized methods combined with the flexibility to fulfill special customer requirements
Scenario-based and comprehensive services for acquisitions, divestitures and reorganizations
Application of performance optimization measures to minimize downtime during productive conversion
“Ajinomoto decided for the
System Landscape
Optimization group within
SAP Consulting due to its
superior quality and
efficiency.”
Alexandre Telles Systems manager, Ajinomoto do
Brasil ind. e Com. de alimentos
Ltda.
“
Key features
Sustained, undisrupted business operations due to experience and know-how of SAP experts throughout realization phase
Reduced maintenance and project costs: Intelligent use of services and careful design of target landscape
Meet legal and regulatory requirements through safeguarding of all historical data
Business benefits
© 2013 SAP AG. All rights reserved. 15
Sell, Buy And Restructure
Customer Successes
Challenges and Opportunities
Merge 3 companies into 1 in 4
months with 2 going-live events
Execute merger process in parallel
with 2 other major projects,
maintaining control over all
project-related activities
Objectives
Harmonize and unify processes,
master data, and transactional
data
Execute merger at minimal cost
and effort in the business, service,
and it areas
Facilitate future mergers and
acquisitions
Benefits
Reduced project time from 10
months to 4, when compared to
a conventional scenario
Reduced project and operational
effort
Lowered impact on user by
maintaining organizational
structure codification
Reduced implementation costs
Challenges and Opportunities
Merge 2 companies with different
company codes into the same
SAP software landscape
Implement a secure solution as
soon as possible with minimal
impact on production processes
Fortify financial, accounting, and
tax structures
Objectives
Unify data, processes, and
transactions
Implement merger at reduced cost
and effort and minimize risks while
maintaining business continuity
Benefits
Significant savings in effort and
resources in comparison to a
conventional project realization
Minimal impact on the users
Increased competitiveness
Lower cost of business
operations
© 2013 SAP AG. All rights reserved. 16
M&A and divestiture scenarios:
Acquisition of entire company,
business unit (BU) or asset (e.g.
factory),
Divest company or part of company
Target company or business unit to
be either integrated or kept as
separate subsidiary
Migration of one SAP system into
another SAP system
Conversion from regional to
business unit oriented organization
(or vice versa)
Complete business processes to be
outsourced or establishment of
shared services
Company Carve-Out
Plant Split
Plant Reallocation
Business requirements
Major
Transformation Solutions
Company Code Split / Transfer
Sell, Buy And Restructure
Overview on major transformation scenarios
Company Code Merge
M&As & Divestitures
Restructuring
© 2013 SAP AG. All rights reserved. 17
Harmonize & Unify Data
Typical transformation requirements
Harmonize & Unify
Data
Finance&Controlling Logistics & Operations HCM
Finance & Controlling
Manage regional disparities (e.g. languages, tax
regulations)
Establish standard global reporting guidelines (IFRS)
Centralize and align existing financial and controlling
structures
Change local currencies or introduce a parallel currency
Logistics&Operations
Standardize & harmonize logistic processes and data
Optimize Sales & Service and Sales Order Management
HCM
Create a stand-alone
HCM system
Integrate formerly
separated HCM system(s)
© 2013 SAP AG. All rights reserved. 18
“The merger itself was
flawless and met all quality
standards. In fact, the
implementation ended up
15% below the estimated
budget.”
Christian Ø. Kristensen, IS Delivery Manager, Grundfos
The solution
SLO services for Harmonize & Unify Data scenarios
System analysis – Evaluation of all businessrelated transformation requirements
Optimization and unification of internal processes and overall operations
Adaptation of data structures to new business requirements
Harmonization of business data consistently across all systems and applications in use
Enable reporting in different currencies (e.g. for group reporting)
“
Key features
Adherence to global standards through corporatewide alignment of data structures and business processes
Transparent global reporting through unification of controlling and financial data
Consistency and reliability of your production and logistics data, without redundancies
Adaptation of IT infrastructure to reflect corporate priorities
Compliance with legal and reporting requirements
Business benefits
© 2013 SAP AG. All rights reserved. 19
Unify & Transform Data
Customer Successes
Challenges and Opportunities
Eliminate slow and resource-
intensive processes that hinder
Grundfos in establishing a new
global strategy
Unify financial structures to enable
a shared service center and to
support further globalization and
company growth
Increase transparency across
business operations worldwide
Objectives
Provide an optimized IT
infrastructure that enables
Grundfos to support decentralizing
sales and distribution units and
establishing cross-market financial
reporting
Deliver a solution to accelerate
Grundfos’ financial reporting and
business processes by merging 3
separate controlling areas
Reduce overall maintenance
efforts realize a smooth and
effective merger of 3 controlling
areas with no impact on
production
Benefits
Supported Grundfos’ global
strategy by harmonizing and
consolidating the company’s IT
infrastructure
Enabled cross-market financial
reporting
Increased transparency within
the entire organization with
decentralized sales and
distribution units
Freed up resources for strategic
tasks, thanks to optimized
controlling processes
© 2013 SAP AG. All rights reserved. 20
Financials
and
Controlling
&
Currency
Conversions
Harmonize financial data (Chart of
Accounts, Fiscal Year etc.)
Adapt currencies for financial
statements
Create central finance system
Implement parallel accounting
Align financial reporting to global
standard (e.g. IFRS)
Introduce shared service center
Harmonize controlling and profit
center processes
Unify & Transform Data
Overview on major transformation scenarios
Business requirements
Profit Center Rename / Merge
Chart of Accounts Conversion
Local /Parallel Currency
Conversion
Controlling Area Rename
Plant Rename
Change of Fiscal Periods
Major
Transformation Solutions
© 2013 SAP AG. All rights reserved. 21
Logistics
and
Operations
Standardize sales processes across
regions and business lines
Harmonize sales master data
Align customer and product master
data with suppliers and customers
Merge divisional or country based
sales organization into global sales
organization (or vice versa)
Merge service centers across
locations and business units
Harmonize supplier / customer
master data
Standardize procurement processes
and interfaces
Standardize production processes
Increase transparency in investment
and innovation processes
Harmonize material master data
Unify & Transform Data
Overview on major transformation scenarios
Business requirements
Material Group
Conversion/Merge
Duplicate Scan
Purchasing Organization Merge
Depreciation Area Change
Product Hierarchy Change
Sales Organisation Merge
Major
Transformation Solutions
© 2013 SAP AG. All rights reserved. 22
Consolidate & Unite Landscape
Typical transformation requirements
Consolidate &
Unite Landscape
Create a more flexible and simplified system landscape
Lower the total cost of ownership
Facilitate maintenance
Integrate companies currently running on a separate instance
Build up non-productive systems quickly and cost-effectively (TDMS)
Decommission legacy systems / apply retention policies (ILM)
© 2013 SAP AG. All rights reserved. 23
The Solution
SLO Services For Consolidation Scenarios
“The System Landscape
Optimization group of SAP
Consulting offered the
expertise and experience
required to get the job done
– and in the defined
time frame too…“
Verena Holz Project Manager, HOCHTIEF
Aktiengesellschaft
“
Detailed system analysis to identify conflicting data and technical pitfalls
Build up a single or multi-client environment
Merge complete SAP systems and
Process data migration – Transfer only selected data into a defined target environment
Key features
More transparency and insight into the consolidated landscape
Ability to leverage data knowledge and data consistency
High-quality data through harmonization and consolidation efforts
Clear and transparent reporting via fast and easy access to a centralized system
Lower administration costs thanks to a reduced number of data centers and systems
Hybrid consolidation approach – and optional upgrades and Unicode conversion approaches
Business benefits
© 2013 SAP AG. All rights reserved. 24
Consolidate & Unite Landscape
Customer Successes
Challenges and Opportunities
Centralize a distributed it
landscape with separate
installations of the SAP ERP
application in various countries
Provide a powerful it foundation
for the future
Objectives
Consolidate the IT environment
by transferring individual clients to
a central system, reducing
operating and maintenance costs
Upgrade to the latest release of
SAP ERP with minimum possible
downtime
Perform a Unicode conversion
Benefits
Standardized IT environment for
the entire HOCHTIEF group,
based at Capgemini’s central
data center in Frankfurt,
Germany
Minimum downtime ensured by a
combined project approach
Significant reduction in operating
and maintenance costs
More straightforward
maintenance and support
Technological basis for
introducing and leveraging state-
of-the-art functionality in the
future
© 2013 SAP AG. All rights reserved. 25
Consolidate
&
Unite
Transform from regional to
business unit oriented organization
(or vice versa)
Reduce the number of SAP
systems
Template roll-out:
Migrate existing SAP and legacy
systems to new or existing system
Consolidate clients into single-
client system
Harmonize data across functions
and systems
Client Transfer
(with or without upgrade)
System / Client Merge
Process Data Migration for ERP
Consolidate & Unite Landscape
Overview on major transformation scenarios
Business requirements
Major
Transformation Solutions
Implement TDMS
(More details)
Decommission legacy systems /
apply retention policies Implement ILM
Build up non-productive systems
© 2013 SAP AG. All rights reserved. 27
Meet compliance and governance needs
Data Governance Services
Data Quality Management Services
Information Lifecycle Management Services
Improve business strategies and insights
Data Warehousing Services
Data Integration Services
Master Data Management Services
Drive operational excellence
Data Migration Services
Data Harmonization Services
System Consolidation Services
SAP Services for EIM
© 2013 SAP AG. All rights reserved. 29
Information Lifecycle Management
System Lifecycle and Landscape Transformation
Transform
Transform
SA
P s
yste
m 1
N
on
-SA
P s
yste
m
SA
P s
yste
m 2
ILM Retention Management
SAP LT
Migration
SLO /
SBO
Migration
ILM System Decommissioning
ILM System
Decom.
Combined ILM System
Decommissioning and SBO Approach
CREATE RUN RETIRE
SAP
SAP
© 2013 SAP AG. All rights reserved. 30
Information Lifecycle Management
SAP NetWeaver ILM – Retention Management
Customer Pain Points
Data volume growing exponentially
Financial audits and tax requirements
Data retention requirements from governments
and legal entities
Data destruction only in legally compliant manner
The SAP NetWeaver ILM solution supports you
in:
Efficiently managing information from its creation
to destruction
Centrally managing and enforcing retention
policies
Maintaining separate archives per retention
period and responsibly destroying data after
retention period expired
Finding and protecting data in case of
law suits
Expiration
Date
Data Archives
Expiration
Date
SAP with ILM
Data Archives Data Archives
Retention
Policy
Management
© 2013 SAP AG. All rights reserved. 31
Information Lifecycle Management
SAP NetWeaver ILM – System Decommissioning
Customer Pain Points
Large and complex system landscapes
Growing energy costs and pressure to become
greener
Financial audits and tax requirements
Data retention requirements from governments
and legal entities
The SAP NetWeaver ILM solution supports
you in:
Extracting and consolidating your legacy data
into a central instance
Completely shutting down SAP and/or non-SAP
legacy systems
Retaining on demand access to data from
legacy systems
Respond to tax audits and create financial
reports
SAP and
Non-SAP
SAP NW ILM Retention
Warehouse
SAP SAP
SAP
SAP
SAP ILM
© 2013 SAP AG. All rights reserved. 32
Agenda System Landscape Optimization
The challenge of reflecting business requirements on your SAP landscape
SAP’s answer: System Landscape Optimization
SLO Services Portfolio SAP Landscape Transformation (SAP LT)
Credentials and Benefits of using SLO
© 2013 SAP AG. All rights reserved. 33
Center of Expertise (CoE)
SA
P
SL
O C
on
su
ltin
g
Serv
ices
P
artn
er E
ng
ag
em
en
ts fo
r SA
P L
T
SAP LT Support Services
SAP Premium Engagements
Transformation Platform SAP Landscape Transformation software
Preconfigured
Transformation Solutions
Tailored object-based
transformations
E2E
Transformation Solutions
Highly automated and
standardized transformations
Custom-Built
Transformation Solution
Default platform for any SAP
transformation requirement
Complementing SAP Consulting Services
SAP Landscape Transformation (LT) Software
© 2013 SAP AG. All rights reserved. 34
SAP Landscape Transformation (LT) Software
Analysis & Transformation Capabilities
Engine: basic (mandatory)
Engine: organizational change
Carve-Out:
Company
Codes
Reorganize:
Profit Centers
Merge:
Company
Codes
Controlling
Areas
Profit Center
Cost Center
Sell, Buy, and Restructure
Engine: value chain harmonization
Convert:
Chart of
Accounts
Cost Center
Profit Center
Fiscal Year
Asset Classes
Asset Account
Determination
Customer
Numbers
Vendor
Numbers
Rename:
Controlling
Areas
Company
Codes
Material
Numbers
Unify and Transform Data
Engine: consolidation
Transfer:
Set up Multiclient System
Environment
Consolidate & Reduce IT Cost
Analyses & Technology Platform
SAP NetWeaver Analysis
ECC Business Application Analysis
Company Code Object Analysis
Report Variant Analysis & Coding Scan
Repository & Customizing Comparison
Scenario-Specific Analyses
© 2013 SAP AG. All rights reserved. 35
Agenda System Landscape Optimization
The challenge of reflecting business requirements on your SAP landscape
SAP’s answer: System Landscape Optimization
SLO Services Portfolio
Overview on SLO Approaches
Credentials and Benefits of using SLO
© 2013 SAP AG. All rights reserved. 36
SLO Technology
General Technical Approach
Table pool
ABAP gene-
rator (write)
Control
DB
Source system(s) Target system(s) Migration and conversion:
Read and change data on
the fly
DB read data
via RFC write data
via RFC
Domains
Tables
Fields
Logic
ABAP gene-
rator (read)
© 2013 SAP AG. All rights reserved. 37
Efficient tool-based
analysis of as-is
situation
Identification and
quantification of
optimization potential
SLO knowledge and
experience
Check of several
possible solutions
Recommend the best
solution for the given
project
Reliable estimation of
work required
Implementation by
SLO experts
Application of SLO
Services
Proven methods:
- Conversion
- Migration
Generic environment
for development
Performance
Consulting
Archiving
DB-Migration
Technical
Consulting
Co-operation with other SAP teams if required
... Business
Consulting
Blueprint Implementation Analysis
Standardized And Software-Based Delivery Process
Ensuring High Quality And Reliability Of Results
SLO
Development
Project management
© 2013 SAP AG. All rights reserved. 38
Typical Project Execution
High Level Milestone Plan
Legend: SLO activity milestone prepare test system customer testing
2013 July August September October November December
Preparation
Conception
Implementation
Testing
• Functional test
• User / Acceptance
Test
• Final rehearsal
Go Live
Scoping workshop
January February
2014
Sign off scenario
Sign off concept
Go live
Project Phases
© 2013 SAP AG. All rights reserved. 39
Agenda System Landscape Optimization
The challenge of reflecting business requirements on your SAP landscape
SAP’s answer: System Landscape Optimization
SLO Services Portfolio
Overview on SLO Approaches
Credentials and Benefits of using SLO
© 2013 SAP AG. All rights reserved. 40
System Landscape Optimization Group
Overview
Where we are
Over 280+ dedicated resources
world-wide in over 20 cities
Headquarters in Germany, Walldorf
Development & Support in
Germany and India
3 Hub sites in APJ: Singapore,
Sydney, Tokyo
What we do
Business driven IT Transformation
work
Deliver >80% productized services
to cover transformation
requirements
Realize customer-specific
transformation requirements
Delivery services around TDMS,
ILM and SAP Landscape
Transformation (SAP LT)
Who we are
System Landscape Optimization
(SLO) Group
Experts for IT transformation
scenarios (Consolidation,
Harmonization, Unification,
Optimization)
Thought Leaders for SAP
Transformation Software and
Services
How we do it
Over 20 years experience during
planning, architecture, execution
and support
Lower the SAP TCO through best
practices, standardized
methodologies and technologies,
and expert consulting
Technologies / Products support
project setup as well as execution
© 2013 SAP AG. All rights reserved. 41
Benefits From SLO Services I
Unique, technology-based and method-based approach
Full service offering from strategy to implementation
High degree of standardization: fast, safe, flexible and
cost-efficient
High quality of tried-and-tested solutions
Flexible adaptation to customer-specific requirements
Extensive knowledgebase; one-stop shop for all relevant
services
Experience
More than 20 years experience in transformation projects
More than 10,000 migration, harmonization, and
consolidation projects worldwide.
© 2013 SAP AG. All rights reserved. 42
Benefits From SLO Services II
Easy transfer of all data and documents into target
structure Particularly important for long-term projects
Availability of data and document flow for all completed and
open transactions in target structure
High performance conversion
No key date Technical conversion not bound to key date
Technical implementation with special features
© 2013 SAP AG. All rights reserved. 43
System Landscape Optimization
Project excellence and successes
… and many more
© 2013 SAP AG. All rights reserved. 44
Further Information
SLO Overview documents:
SLO Overview Brochure
SAP LT Overview Brochure
SLO Dashboard – Central access to SLO documents (Sales version)
IM:
Golden Pitch - Overview of SAP's solutions portfolio for IM
Services Portfolio - Overview of SAP Services portfolio for IM
ILM:
ILM Solution Brief - Managing the information lifecycle
ILM Service Brief - SAP NetWeaver ILM Implementation Services
Thought Leadership Paper - Implementing an Enterprise Information Management Strategy
System Landscape Optimization group
Web Pages:
SAP Service Marketplace: http://service.sap.com/slo
SAP.com pages: www.sap.com/slo
Thank You!
© 2013 SAP AG. All rights reserved. 47
© 2013 SAP AG. All rights reserved.
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