Building and Sustaining a SAP Center Of Excellence

From Weeding to Marriage

Miguel MejiaNov 2013

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SAP COEInternal organization aimed to sustain and evolve our SAP implementation, driving business benefits continually trough the optimization of Business Process.

Optimization of end-user competency and employee fulfillment of business process

Continue coherence and integration of functionality and data trough all process chains

Not an IT Only objective. This has to be a Business Strategy with strong participation of user community

In summary Continuous business improvement SAP as the backbone of our IT strategy, Systems Infrastructure and Business Processes COE is integrated by IT and Business representatives

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From the wedding to the real marriage.SAP strategy goes beyond the implementation or stabilization, we have to recognize this is a long term commitment. With low chances to get divorced

Continuous

Change

CoE

Implementation Scope1-3 Years

Wedding

SAP Life Spam>15 YearsMarriage

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SAP Maturity Model

Business - IT Dynamics

Link IT & Business

BPM

KPI Measured

BP transformation trough PMO

BP Chang led by KPI Performance

Applications Management

No overcustomization & Core

implementation complete

ERP is the backbone & interfacing is

complete

Apps portfolio is inventoried

Apps portfolio has been rationalized

Apps portfolio has been optimized

End Users

Basic end user training complete

Users work without too much HD support

Users receive periodic refreshing

training

Users trained in BP & continuous training is

in place

User performance is linked to BP performance

Value Management

Some success measures are in place

Business results tracked trough the

system

KPIs established for all levels

BP Changes directed by KPI results

BP changes guided by Business Intelligence

Matu

rity

Level 1 Core Applications

Super Users• Help Desk

supporting the organization

• Complete implementation

L2 Stable Applications

SAP Team

Interfaces Completed

Process documented

Organization Trained

SAP Org established

Stable utilization across all functions

L3 COE Defined

SAP Competency Center level

Business & IT Aligned

KPIs established

Apps Portfolio Ready, rationalization started

Stability, predictability,

Small incremental opportunities

Extend to available functionality

Do Things Right

L4 COE Managed

KPI and Value driving improvements

A capable Organization Proactively engaged & Integrated with business

Looking for value propositions and competitive advantage

Do the right things

L5 COE Evolving

COE Responsive to treats and opportunities

KPIs are system integrated

BPs continuously improved based on KPIs and strategies

KPIs Benchmarked

Maturity Progression Journey

Ultimate Goal is Business Transformation

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Transforming our build team to a COE… Our Game Plan

Initiation and assessment

Evolution Planning

InitiationSAP Maturity Assessment

Organizational vision

Define Charter

Charter Branding

Refine OrgMaps / Gaps

Staffing strategy

KPIs

Finalize evolution

plan

Initiation & Assessment• Establish High level goals • Team Composition & Organization

Gaps (size, skills, competencies)

Justification• Draft future organization• Refine Gap analysis (vs assessment)• Get charter approval and buy in

Evolution Planning• Refine org maps & skill/staffing gaps.

Knowledge transfer / acquisition• Define all IT and B-Users integration • KPI inventory that rules the process• Timeline and budget• Evolution Plan approval

Justification

Continuous run of evolution plan

Continuous evangelizing

SAP COE Target Organization Real Life Example

SAP COE

SAP BPT & Support

IT Management

Legacy Applications

Service Operations

SAP Center Of Excellence

Service Support

Infrastructure Operations

IT Governance (PMO)

Continuous Education (HR)

Business Executives

Integration Management

Help Desk

Super Users

Users

IT Governance

SAP Core Teams

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Building a COE …Kickoff actions of a real exampleRecognize SAP as the centerpiece of our IT strategy and …

Business - IT Dynamics L1. Link IT & Business.

L2. Sufficient IT & Business resources to maintain stability Build SAP Org - Hiring & Training

L3. COE is defined

L3 Business ownership of business process BPM

End Users L1 End users are adequately trained

BP and BPPs L2 End Users are functional, Reinforce Super User program and secure participation L3 Continuous and refresh training

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Building our COE …Kickoff actions of a real example…Take a long term approach to SAP

Applications Management L1 Finish Rollout / add of major applications L1 IT Staff is adequately trained

SAP Certification Plans, Cross training L2 SAP Operations reliable

Confirm stabilization L3 Energetically retire Legacy systems

Applications portfolio

Value Management L1 Tangible success measures

Inventory, Documented processes L2 Measure of our current KPIs

KPIs redefined by Policy Deployment L3 Demand Management being drive by Enabled Value