Best Practices for Managing a Large-Scale SAP System Consolidation Project

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Best Practices for Managing a Large-Scale SAP System Consolidation Project

Kevin Moore Independent Consultant

1

In This Session

• Insight into the challenges, successes, tools, methods, and

lessons learned from each major phase – project prep through go-

live

• Tips for structuring business and IT teams globally and locally to

successfully complete this type of a project

• Guidelines for successfully migrating over 100 different master

and transactional data objects across functional domains from

multiple countries

2

What We’ll Cover

• Global SAP4UCB roadmap

• Project approach/golden rules

• Project schedule and project phase highlights

• Project teams – Business and IT

• Cutover/go-live

• Lessons learned

• Wrap-up

3

SAP4UCB Program

• SAP4UCB Program – Global initiative within UCB that started in

2006 to transition the company from local processes and data on

multiple SAP and non-SAP systems to global processes and

centralized master data on a single, global SAP ERP 6.0 system

• The focus of this presentation is on the SAP4UCB_NA project that

was a large and complex SAP system consolidation project for

North America that resulted in the successful migration and

integration of users, processes, and data from three separate

legacy SAP systems in three countries (U.S., Canada, and Mexico)

to a single, global SAP system

4

Global SAP4UCB Roadmap

2007 2008 2009 2010 2011 2012 2013 >>

India Nether.

France

Spain

Germany

Russia

China

Australia Belgium

Poland

Italy

Lux.

UK

USA

Canada

Mexico

Switz. Finland

Sweden New Zeal.

Japan

SAP4GTSO

2006

5

What We’ll Cover





• Cutover/go-live

• Lessons learned

• Wrap-up

6

Project Approach/Golden Rules

Global Process & Data Template

Global & Local Processes Global & Local Data Ownership

Global & Local Approvals

Pharma GxP – OQ, PQ Required Global & Local BRSs

One Chart of Accounts No Changes to Standard SAP

First Option = Configuration

Start Together & Finish Together! All 7 Sites – USA, CAN, MEX

1 UCB

Local

Global

Not Documented = Not Done

No Training = No Authorizations Intercompany Processes and Data

7

Project Scope

12 Domains

18-Months

750+ Users

120+ Biz & IT Team

100+ Data Objects

900+ Tests

650 Transports

161 RICEFs

7 Sites

USA CANADA MEXICO

3 Legacy SAP Systems

Teams on 3 Continents

1 Global SAP 6.0 System 1 Global Template

3 3PL Locations

14 Entities

45 Global BRSs 25 Local BRSs

8

Migrated Systems

SAP R/3 4.7 UCB US, Canada

Live Since 1998

SAP R/3 4.7 Generics US, Research US

Live Since 2004

SAP R/3 4.7 UCB Mexico

Live Since 2003

Global SAP

ERP 6.0

Interfaced Systems – Internal, External

SAP4UCB NA

Project

Legacy Systems

9

SAP Landscape

DEV

Test &

Train 1

Test &

Train 2

PRO

Transport Tasks

Refresh

Transports

Test & Train1 – Formal Testing and Training Test & Train2 – Informal Testing and Training

Refresh

Transports

10

What We’ll Cover





• Cutover/go-live

• Lessons learned

• Wrap-up

11

Project Schedule

2011 2010 2012

Hypercare (10 weeks)

Biz Go-Live January 1st

Prep

Legal Entity Consolidation (Legacy Systems)

Medicare Coverage Gap

Global Budgeting/ Reporting Changes

Material Re-Stamping

End-User Training

SOP Updates

Prep Key User Training

Prep

E2E/Integration Workshops & Demos

TRAIN

DR D2 D3 D1

Cutover

Data Dual Maint.

Tech Go-Live

Cutover Planning (Data + Sites)

GO-LIVE !

Blueprint Kick Off

Fit-Gap

DESIGN Early

Development

Configuration

Development

BUILD

Formal OQ, PQ, UAT, Regression

Addit.

Unit, E2E Write Unit, E2E

Scripts

Write Formal Scripts

Formal Test Prep/RA TEST

Prep

JAN JUL OCT FEB MAR MAY JUN SEP NOV DEC AUG APR JUL OCT SEP NOV DEC AUG JAN FEB MAR JUN MAY

12

Project Phases

• Fit-Gap

Brief analysis and comparison of many of the primary

processes as compared with the global system prior to the

main project

Formed initial teams of NA Key Users and SAP Central Team

Leads

Demonstrated key features of the global system to the business

• Blueprint

Typical blueprint with the following exceptions:

Legal entities changed in the middle of the phase

Several developments started for known required programs

13

Blueprint/Deliverables

Blueprint Workshops

Document Updates

NA Business Review

Kernel Guardian Review

Validation Sign-off

Solutions

BRS

Global Local

BRS Catalog

Funct. Specs (FS)

FS Catalog

UDD

UDD Index

TMX

CRQ

Requests in “Business Speak”

Requests to Location Matrix

Design “SAP Speak”

RICEF List

RICEF Design Specs

Traceability Matrix

Function, SAP T-Code to Location Matrix

SAP Change Request

14

SAP Processes/Data – NA vs. Global

Global

Chart of Accounts

Material Master

Vendor Master

Customer Master

PR/PO Approvals

Treasury Management

Budgeting Processes

Supply Chain Planning Processes

North America

Local Data Views

Class 2 Substance Orders

DEA Controls

Rebates

Chargebacks

3PL Processes

A/P Payment Approvals

PI Sheet Confirmations

15

Project Phases

• Build

On-site configuration and primary development

Some off-shore resources used for development and

authorizations

Updated processes and blueprint documentation reflecting

legal entity consolidation project

CRQs – Changes created for all requests in Remedy/ITSM

Heavy unit testing prior to transport release from DEV with

the goals of:

Maximizing the quality of the solutions implemented

Minimizing the changes needed after the build phase

Minimizing the number of errors found in formal testing

16

SAP Development

17

Interfaces

SAP BI

Global

SAP

SAP HR

Hyperion

GLIMS

Chargebacks

Rebates

Grants

Banking 3PLs

EDI

Customers

Travel

ValueTrak/FFS

Vision/SFA

…

MDM

Mobile

Medicaid

GP

…

DEA Returns

Flat File

Payroll

18

Project Phases

• Testing

Process testing

Utilized local Test Coordinator to track and manage testing

activities in HP Quality Center

Built test scripts and executed dry run/informal tests prior to

formal testing

Data testing

Utilized multiple local Test Coordinators

Ran three cycles of data testing prior to the dress rehearsal

Some dress rehearsal files were re-used for cutover

Dual maintenance process activated with dress rehearsal

19

Testing Cycles

C3

OQ + PQ

GxP

C2

Unit + E2E

GxP, Non-GxP

C4

UAT

Non-GxP

DR

M + D

WP 1 – 7

D3

M + D

WP 1 – 7

D2

M

WP 1 – 4

D1

M

WP 1 – 2

667 + 42 61 + 79 60

20+ 70+ 100+ 100+

Pro

cess

, RIC

EFs

Dat

a

Primary ETL Tools: SAP BusinessObjects Data Services (BODS), Access, Excel

Primary Testing Tool: HPQC

20

Training

• Demos

• Face-to-Face

• Online Training

• Training Required at

Role level for UserID

Creation and Role

Assignments

SAY & DO

SAY

HEAR & SEE

SEE

HEAR

READ

90 %

70 %

50 %

30 %

20 %

10 %

Memory Retention After 2 Weeks

AC

TIV

E LE

AR

NIN

G

PASS

IVE

LEA

RN

ING

Source: Edgar Dale, 1969

21

Project Phases

• Cutover

Cutover Manager coordinated and planned with business and SAP teams in all 12 domains for all 7 sites the activities related to the extraction, mapping, transformation, review, approval, loading, and post-load verification of over 100 data objects

Site-specific plans were coordinated with site managers for non-SAP data-related tasks, e.g., interfaces, printers, transition activities at go-live

Dual maintenance strategy defined for each master data object

Some dress rehearsal files re-used for cutover

Delta files allowed and used for several objects

Tools – Transformations SAP BusinessObjects Data Services (BODS), Access, Excel. Loads Primarily SAP LSMW.

22

Project Phases (cont.)

• Hypercare

Ten-week time period starting with go-live day

Hypercare rooms identified for the three largest sites and

staffed with project resources

Daily meetings held to review status, issues, solutions during

the first two weeks

All issues were tracked, prioritized, and resolved by local team

for highest priority issues

Project resources sent to the front lines to assist key users and

end users during first two weeks of go-live

Nearly all project resources rolled off as planned

Hypercare phase closed as planned without extension

23

What We’ll Cover





• Cutover/go-live

• Lessons learned

• Wrap-up

24

Business Teams/Roles

No

rth

Am

eric

a Eu

rop

e

End Users

North American Key Users

Global Key User

Global Process Owner

Local Key Users

Global Management

Domains SD MDM FI CO TR WM PUR PP QM PM Planning Interco

Business Integration Manager

Site Managers

ATL, RTP, ROC, SEY, PRI,

CAN, MEX

25

Roles and Responsibilities

• Business

Organized by domain/module, e.g., SD, WM, PP, CO, etc.

Global Process Owner

Ensured process alignment across countries

Global Key User

Worked closely with NA team to align NA requirements with

global SAP processes and data

North American (NA) Key User

Domain lead across all NA sites

Worked closely with SAP Domain lead

Local Key User

Subject Matter Experts for a domain at site-level

26

Roles and Responsibilities (cont.)

• Business (cont.)

Site Managers

Ensured requirements across all domains utilized by the site

were identified and met in SAP

Managed availability of site business and IT resources

Business Integration Manager

Ensured integration across domains/modules in SAP along

with SAP Central Team Integration Manager

Led workshops featuring global system functionality along

with SAP Central Team Integration Manager

Supported NA Key users to stay aligned with global team

27

Asi

a

SAP IT Teams/Roles

Euro

pe

N

ort

h A

mer

ica

SAP Central Team Leads

Global SAP Kernel Guardians (Solution Architect Leads)

SAP Central Team Members

Valid. Testing

Training Auth

SAP Central Team Manager

Global IT/SAP Management

ABAP Lead

Data

SAP Integration Manager

SAP Site

Leads

Configuration Development ------------------ Global Service Owners ---------------------

Valid. Testing Leads

Auth Local

Data Lead

ABAP Lead

ABAP Local

Training Admin

Data Analysts

FI, CO, TR, SD, WM, PUR, PP, QM, PM MDM, Planning, Interco

Auth Off

shore

ABAP Off shore

SAP Program Managers

28

Roles and Responsibilities

• SAP/IT

SAP Program Managers

Selected resources for entire project team

Led weekly meetings with business site managers and NA

key users; led SAP4UCB_NA Project Steering Committee

meetings

Aligned with parallel project leads, including BI, and others

SAP Central Team Manager

Manager of SAP Team Leads

Ensured NA SAP Team deliverables were completed

SAP Central Team Leads

SAP Team Lead by domain, e.g., SD, WM, PP, CO, etc.

29

Roles and Responsibilities (cont.)

• SAP/IT (cont.)

Services – One global service owner per service. Each service

spans all domains.

Development/ABAP

Validation/Testing

Training

Authorizations

Data

Each global service owner needs a local coordinator to follow the

day-to-day activities of the service and manage the local resources

for the service

30

Tips for Team Building

• Define your team structure early in an overall governance strategy

Each team should have a team lead responsible for planning,

status updates, and deliverable completion

Each team lead from the local project team should work closely

with his/her global team counterpart

Each business lead should work closely with the SAP/IT lead

• If your project is not first in the roll-out schedule, leverage the

templates, deliverables, experience, and lessons learned from

previous rollouts

Leverage the resources from the previous rollouts on your

project, if they are willing and available

31

Tips for Team Building (cont.)

• If you define your teams in a domain approach, you will need to

add resources to cover the integration for end-to-end processes

Order-to-Cash, Procure-to-Pay, etc.

• Learn to appreciate language and cultural differences

The best ideas come from collaborating across teams globally

• Take time to show appreciation for the team

Organize team building events, sports outings, selected

downtime for team members to interact on a non-business level

• Especially for managers and team leads, seek first to understand

an issue before jumping to conclusions, and learn to master the

art of public praise and private criticism

Treat others as you want to be treated

32

Tips for Resource Selection

• Team leads should be senior resources in your industry

Select team leads with strong leadership, communication, and

people skills, not just strong SAP skills

• Interview multiple people for every role

Avoid selecting someone based only on a resume

If the interviewee gets all the answers to your questions

correct, then you haven’t asked enough critical questions.

Everyone has limits on their abilities. You should know them

before they start working for you.

Ask why they are available and why they want to work with you

• If selected resources aren’t effective, replace them as soon as

possible

33

What We’ll Cover





• Cutover/go-live

• Lessons learned

• Wrap-up

34

Cutover Planning

Master Data

+ Dynamic

Data

Atlanta, GA

Seymour, IN

Princeton, NJ

Rochester, NY

Raleigh, NC

Toronto, CA

Mexico City, MX

35

Cutover Data

Materials (MDM)

15 Views

Customer

G/L

14 CoCodes

Vendor

Cost Center

Assets

Inventory Bins

Tran

spo

rts/

Tech

Go

-Liv

e

WBS

PUR

SD

Open PO

Open SO

B/S

MFG

Act Type

Open Process Orders

Open A/P

Open A/R

Bank

Bu

sin

ess

Go

-Liv

e

QM I/O

Profit Center

Examples, More Objects Apply

Planning

I/C

WM

PM

CO

Business GO-LIVE TECH GO-LIVE

Primary Load Tool: SAP LSMW, Cutover Tracking Tool: Excel

36

Material Master Dependencies

BOM

Recipe

Inventory

QIR

PIR

Source List

Pricing

CMIR

Batch

Prod Vers

Open Purchase Orders

Open Sales Orders

Mtl Det

Open Process Orders

Bu

sin

ess

Go

-Liv

e

Examples, More Objects Apply

Tran

spo

rts/

Tech

Go

-Liv

e

Material Master

(MDM)

15 Views

Multiple MFG and 3PL

Locations

AMPL

Insp Plan

Business GO-LIVE TECH GO-LIVE

37

Tips for Data Migration

• Identify all objects in scope by system and domain early; especially note objects with major dependencies, e.g., material master

Clean legacy data on source systems. It’s never too early to start!

Decide how much data to migrate, e.g., how many years – 2, 5, 10

• Select the data migration tool(s) early

• Select experienced, data-centric resources

Note that process-oriented resources are not always the best resources for data migration. Ask for references and call them!

• What will you do with your legacy system?

Consider keeping the legacy system alive for several years to minimize the amount of historical data to migrate

38

Tips for Data Migration (cont.)

• Test many combinations of the data across many processes

Test multiple material types, customer account groups, vendor

account groups, sales order types, etc.

Test end-to-end processes: Order-to-Cash, including SD

documents, FI/CO postings, output documents, and reporting.

Then compare the results to spot any gaps or issues.

• Test with multiple currencies and review postings

Easy to invert the conversion factors

100 USD = 135 EUR or

135 USD = 100 EUR?

• Test with multiple units of measure

1 EA could be a single unit in a box, one box in a case, etc.

39

Cutover Data Approval Process

Pre-Load Approval

Global SAP

LOAD

Dual Maint

Map

Transform

Create Load Files

Pre-Load Approval

Extracts USA, CAN Branded

Extracts US Generics

Extracts MEX Pre-Load

Approval

Local Data Owners

NA Key User

(All)

Validation

Post-Load Signoff

IT

IT

Local Data Owners

(Non-GxP)

IT

Global Extracts

Pre-Load Approval

Pre-Load Approval

Post-Load Signoff

Post-Load Signoff

Post-Load Signoff

* For GxP Objects, Validation + IT +

NA Key User

Pre-Load Approval

Biz QA (GxP Only)

GxP = BOMs, Recipes, Prod Vers, Batches, QM

Local Data Owners

GxP*

Legacy Systems

40

What We’ll Cover





• Cutover/go-live

• Lessons learned

• Wrap-up

41

Challenges

Time Impact

No

. of

Do

mai

ns/

Site

s Im

pac

ted

LOW HIGH

Material Re-Stamping

Approvals

Authorizations

Training Delivery

Parallel Projects Company Code Consolidation During Blueprint

Documentation

Communications / Time Zones

Process Testing

Data Testing Duration

Resource Availability

LOW

HIGH

42

Challenges (cont.)

• Company code consolidation during blueprint

Blueprint was started in July, but in September it was decided that the legal entity structure for the US was changing in two legacy SAP systems at the end of the year

Good news – Fewer entities to manage the following year

Bad news – Processes, documentation, etc., required updates and many key resources from the business and IT were needed for 3-4 months

• Data testing duration

Resource challenges as well as late decision on tools to use

Data from three legacy systems migrating to a fourth live system

In the end, it took longer, but the data was tested with three test load cycles plus a dress rehearsal prior to cutover

43

Challenges (cont.)

• Resource availability

Most business resources continued in their daily jobs. Only a

few business resources were allocated 100% to the project.

• Approvals

All changes required local and global approval from business

and IT. The global team was mostly in Europe, and due to some

time zone challenges, multiple sites, other global SAP projects,

and support, additional time was required to get final approvals.

The fastest approvals occurred when meetings were

scheduled to review and update documents together verbally

and directly vs. the approach of sending numerous emails to

each other with questions, issues, and requests for feedback

and updates

44

Successes SU

CC

ESS

LEV

EL

Cutover Planning & Execution

Business Continuity

Hypercare

Data & Process Alignment Global/Local

E2E/Integration Workshops

SAP Configuration/ Development

GOOD

GREAT

Warehouse RF

Leadership

Blueprint Workshops

EDI Senior Resources

Business Effort

Process Test Execution

I/C Processes

Fit-Gap

45

Successes (cont.)

• Business continuity

Business continued due to significantly tested data and

processes prior to go-live, as well as detailed cutover planning

and execution

• Cutover

Detailed planning started 2-3 months prior to the start of

cutover

All objects planned with business and IT by domain and object,

and especially noting dependencies by object and high-priority

objects, e.g., material master, batch master, inventory, etc.

• Hypercare

Close support for users for ten weeks after go-live

Locating selected team resources on the front line

46

Successes (cont.)

• Business effort

Strong support from senior management globally and locally

Competent and experienced key business users in every domain

• Data and process alignment – Global/local

All changes reviewed and approved globally by Global Business Process Owner and Global Solution Architect

Local changes allowed for legal, tax, and compliance reasons

• Fit-Gap

Started with a fit-gap project with selected senior resources in each domain prior to the full project

Provided key users with an early view of the global SAP system prior to formal blueprinting

47

Successes (cont.)

• Leadership

Senior Management – Sets the appropriate strategy,

governance, team structure, budget, etc., prior to the project

starting. During the project, guides the team and removes

obstacles to keep the project on track.

Project/Program Management must set clear expectations and

hold people accountable during each phase

Stops people from wasting time on low ROI activities

• People

Get the right people and you’ll get the best results

Best Resources + Effective Leaders = Success!

48

Successes (cont.)

• Preparation

Tasks and deliverables must have owners and due dates before

a phase starts. The rules for completing a task or deliverable

must be clear.

Tip – At least one week before a phase starts, review the

schedule and deliverable template(s) in detail with the team.

Start with realistic examples by filling in key sections of a

deliverable and review together so everyone knows what the

final product should look like and what success looks like.

• Communication/clarity

A focused 30-60 minute meeting with the right people will

replace numerous emails and hours of work and re-work

49

Successes (cont.)

• Location

It is necessary to centralize some tasks globally, but it is also

wise to locate SAP resources near business teams for efficient

collaboration, requirements analysis, testing, and training

• Data/information

Clean legacy system data, define clear data mapping rules, and

build user-friendly processes, procedures, and reports to

provide the information needed in a timely manner

• Planning

For the cutover plan, create the plan a few months prior to the

technical go-live for all data objects and site-related tasks

Fine-tune the cutover plan over time to produce the most

efficient and effective cutover/go-live possible

50

What We’ll Cover





• Cutover/go-live

• Lessons learned

• Wrap-up

51

Where to Find More Information

• Jim Collins, “Good to Great,” (Jim Collins’ blog, October 2001).

www.jimcollins.com/article_topics/articles/good-to-great.html

• “Jim Collins: How to manage through chaos” (Fortune, September

2011).

http://management.fortune.cnn.com/2011/09/30/jim-collins-

great-by-choice-exclusive-excerpt/

• Edgar Dale

http://en.wikipedia.org/wiki/Edgar_Dale

• Jayesh Wala, “Lessons Learned from Geese for Team Building”

(SlideShare, December 2008).

www.slideshare.net/jbwala/lessonsfrom-geese-for-team-

building-presentation

http://www.jimcollins.com/article_topics/articles/good-to-great.html






http://management.fortune.cnn.com/2011/09/30/jim-collins-great-by-choice-exclusive-excerpt/













http://en.wikipedia.org/wiki/Edgar_Dale

http://www.slideshare.net/jbwala/lessonsfrom-geese-for-team-building-presentation











https://www.insights.com/564/insights-discovery.html

52

7 Key Points to Take Home

• Backfill business and SAP/IT resources in the day-to-day jobs so

they have time to work on the project full-time

• Build teams with senior resources and ensure team leads have

leadership and communication skills, not just strong SAP skills

• Minimize parallel projects and major initiatives

• Dedicate strong resources to data migration and remember that

strong SAP process skills may not lead to strong data skills

• Don’t underestimate material master and other key object

dependencies – Identify all objects in scope early in the project

• Start with a Fit-Gap Project to identify the scope of the project and

to get early buy-in

• Select and retain the best resources!

53

Your Turn!

How to contact me:

Kevin Moore [email protected]

www.linkedin.com/pub/kevin-moore/63/79/53a

Please remember to complete your session evaluation

mailto:[email protected]

http://www.linkedin.com/pub/kevin-moore/63/79/53a



54

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Best Practices for Managing a Large-Scale SAP System Consolidation Project

Technology

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