Deloitte AMS

©2006 Deloitte Touche Tohmatsu

SAP Application Post-

Implementation Support.

March 2008

Mark Seele


Objective of Presentation

•To give an overview of SAP Application post-implementation support

–Application Support Overview

–Staffing

–Benefits of outsourcing

–About Deloitte Application Management Services (AMS)

–How a typical support model works


Most client’s focus is on going live, however, post-implementation support needs to be considered at the earliest stage……….

Support Strategy

Scope

Staffing


Don’t under estimate the cost of providing support…

Acquisition and implementation costs constitute less than 30% of the TCO during a 5 year period

Gartner

Application Support Overview


Typical SAP Application Support Objectives

• Rapid response to problems, changes requests, enhancements

• Reduce development, project lead time and maintenance costs

• Make good use of scarce resources by leveraging implementation, operations and business process skills

• Reduce attrition costs for expert internal resources due to planned career paths

• Decrease duplication of data and integration efforts

• Provide over all program management that is consistent across projects & production systems

• Build on past experience

• Opportunity for business collaboration throughout enterprise

• Reduce support time/costs

Gartner

Date: 27 June 2006

Title of article: Gartner Looks at SAP


Tactical

Business

Processes

PlanStrategy,

direction and

governance

PlanStrategy,

direction and

governance

The Application Lifecycle has 3 main phases…

Operational

Tactical

StrategicRun

Support operations

and technical

infrastructure

BuildContinuous business

improvement, system

development and

projects

Typica

lly outsource

below this lin

e


Tactical

Business

Processes

Typical activities in each phase…

•Programme

management

•Project

management

•IT Strategy

•Roadmap –

development

and

maintenance

•IT Strategy

•Roadmap –

development

and

maintenance

•Incident

resolution

•Change

Requests

RunBuildPlan

Operational

Tactical

Strategic

•SLA and contract

Management

•Align with service

delivery trends &

business

requirements

•Configuration

•Developments

•Testing and sign

off

………

Staffing


Considerations for Internal Staffing

•Superusers

•Business Analysts/Architects

•Business Process Owners

•Service Delivery Manager

Benefits of outsourcing…


Benefits of Outsourcing Application Management• Staffing

– Allows clients to focus on core business

– Flexible: can increase or decrease support capacity required at relatively short notice

– Resource recruitment, training and retention is managed externally

– No under utilised resources: only pay for percentage you need, not whole FTE

– Allows Architects/Business Analysts to focus on longer term plan and business requirements, not incidents

– Intellectual Property is spread amongst support resources

– Access to skilled resources who have knowledge of new application developments and trends

• Services

– Continuity of service

– Predictability of service and costs

– 24 x 7 availability (Call Centre)

– Service level management easier: arms’ length

• Processes

– Metrics and trends analysis and reporting

– Tried and tested support methodologies, procedures and processes for Deloitte AMS and client use

How our model works…


AMS Management Structure

Directors

Technical

(Basis & Security)Functional Call Centre

Development

(ABAP, BI,

Workflow)

Operations

Manager

Service Delivery

Manager


AMS Macro Processes

Application Management Services

Manage client

relationships

Maintain client interface

Manage Help Desk

services

Manage functional

support

Manage technical

support

Manage client support

Facilitate end user

education

Manage adherence to

service level agreement

Manage

communications

Manage escalation

process

Manage client contracts

Maintain SAP

Knowledge Warehouse

Manage support of IT

strategy

Manage SAP licence

administration

Manage security

administration

Provide client reporting

Manage change control

Manage transition

process

Transfer knowledge

Plan transition

Support transition

Maintain client services Manage client contact

Present client reports

Manage developments

Manage configuration

Provide process

optimisation consulting

Provide call resolution

(2nd and 3rd level)

Manage basis

administration

Manage basis

enhancements


(2nd and 3rd level)

Route support calls


(1st level)

Manage IT services

Maintain Infrastructure

support

Provide end user

education

Macro process Process Sub processKEY (Out of scope)

Manage change control

process

Customised to suit client requirements.


Components of our service offering

•Service Delivery

–Transition

–Availability Management

–Service Level Management

–Customer Relationship Management

•Service Support

–Service Desk

–Functional Services

–Technical Services

Governance in terms of change control

procedures and call management processes


AMS calls are classified into incidents and change requests

Incidents

• System incidents that

– Are not part of the standard / expected operation of the defined service at the client site

– Cause, or may cause, an interruption to the service

– Cause, or may cause, a reduction in the quality of the service

Change Requests

• Enhancements

– An enhancement is any change from the original state of the system as defined in the contract

– Change Requests/Work Orders are limited to a maximum project size of 500 hours

– Implementation of new modules e.g. portals/CRM

– Additional Sites added to the system

– Additional fields to be added to an existing custom or system report

– Request for version upgrade

– Change in legislation

– Product or Vendor Change

– Continuous improvement process reviews

• Projects

– A project is any work order that is not a break fix problem or an enhancement i.e. over 500 hours.

• Training


Typical Service Levels

Priority Urgency Definition Response Time Maximum

Commencement

Time

Resolution to Agreed Target

Time

1 Critical A critical client service is unavailable or very seriously impaired by a problem. The impact on your business is severe with users having no readily available alternative way of performing their normal work, or there is a serious, adverse business / financial impact. e.g. system unavailable or unable to support critical business processes on SAP such as payroll, month end, execute production orders, dispatch final product.

90% within 30 working minutes

90% within 1 working hour

90% within 4 working hours

2 High A non-critical client service is unavailable or impaired by the problem. There is a minor impact on the client business. The Users are having difficulty performing part of their normal work but are able to do so through a workaround or can undertake other work while the problem is being rectified.




3 Normal A non-critical service is unavailable or impaired by the problem. There is no direct immediate impact on the client’s business. The client’s staff are inconvenienced by the problem. The Users have readily available alternative ways of performing normal work



90% within 5 working days

4 Change request

Request for variable work or enhancements requiring approval from the business.



As agreed with user


Service Window

Service Area Hours of service

Call centre 24 x 7

Functional and Technical support

07h00 – 17h00 (GMT+2)

Standby services are available


Bucket Model

•Call Centre

–Based on number of calls received

•Functional support

–Based on number of modules x support effort required

•Technical support

–Security effort based on number of users

–Basis effort based on number of installations

•Management and Administrative overhead

–Typically 10% of bucket


Typical Bucket Guidelines

– The bucket of hours is a fixed quantity of INCIDENT support hours for which the Deloitte AMS plans the required resource capacity to meet the targeted Service levels

–Work done outside the bucket will be done on a “best endeavours”basis

– The bucket consumption will be reported on, and will be jointly monitored on a weekly basis

– The actual bucket size (hours), utilised in full or not, is billed every month using the offsite or onsite rate applicable to all areas

– The bucket can be re-sized by mutual agreement every 3 months, based on the average usage for the previous 3 months as well as any planned scope changes, but the bucket may not be reduced by more than 10% in a 3 month period

– The actual mix of support capacity by category is managed by Deloitte AMS, unless the limit is exceeded by more than 50% in which case, we may require a 6 week notice period.

About our Application Management Services (AMS)…


•BPAS is a Deloitte Touche Tohmatsu Group business unit

– BPAS forms part of the global network of outsourcing services, founded in 1999

– BPAS was created in order to complete the Consulting services offered by Deloitte to its clients, using a global model defined to provide services from a network of centres, both remotely or on-site from our suppliers’installations.

About Business Process Application Solutions (BPAS)


The AMS is part of the Business Process Applications Solutions (BPAS) Service AreaIn order to adequately serve our clients we have a flexible dynamic organisation based on a cross-

functional model in which we combine the Industry dimension, which is responsible for contributing its

vision of the key industry aspects and managing relations with our clients, with the Service Areas

dimension, which shapes our professionals’ specialisation in the types of services we provide to the client.

This cross-functional model enables us to supplement our professionals’ skills in the various Service Areas with the extensive industry knowledge that characterises our firm.

FinancialServices

TMT&EUConsumerBusiness Manufacturing Public Sector

SER

VICE A

REA

S

INDUSTRIES

CONSULTINGSTRATEGY & OPERATIONS

HUMAN CAPITAL

TECHNOLOGY ADVISORY

ENTERPRISE APPLICATIONS

ENTERPRISE RISK SERVICES

LEGAL AND TAX COUNSELING

FINANCIAL ADVISORY SERVICES

AUDIT

BPASBUSINESS PROCESS AND APPLICATIONS

SOLUTIONS

AMS AND BPO


Our distinctive offerOur distinctive offer

• Flexibility and permanent availability of

specialised resources and multidisciplinary

teams.

• Easy-to-implement technological and

organisational solutions.

• Human capital policies which ensure high

stability of our resources.

• Unlimited service expansion capacity.

• Consolidated know-how based on both

domestic and international experience.

• Previous success in the applications

maintenance services (AMS) and development

operations.

• Effective methodology, tools and processes

which support implementation.

• Access service management processes which

minimise risk and ensure the quality of our

remote services.

• The global service offering of the Deloitte

Group.

�AMS uses a client-oriented modelwhich forms a key part of our service offering, guaranteeing direct contact and close collaboration in the assumption of end-to-end responsibilities in its support.

�We provide a team of multi-skilled specialists who work at our Solutions Centre, or on-site (if required)

�AMS reduces service costs and ensures quality service, thanks to the implementation of quality methodologies which are recognised worldwide.

�The global nature of Deloitte’s service provision due to the different industries and service areas makes us more than a mere technology provider: we offer a distinctive range of services.

About Application Management Services (AMS)

Our distinctive valueOur distinctive value


Some AMS Facts• The South African AMS Centre supports approximately 5000 application users (SAP and Oracle / JD Edwards)

• Users are spread across South Africa, the Netherlands, Brazil, Singapore, Australia, United Kingdom and the United States

• The Centre currently handles more than 2200 calls per month.

• AMS Call Management tool = ITSM

• ‘’Stack and Pop’’ process


Our AMS People

• The South African AMS employs a professional team of around 120 people

• Several teams of 3 – 15 people work across the spectrum of products and services offered and functional areas/ business processes supported

AMS staff

Professional certified consultants

Call Centre operators

Management


Some of our Clients


For further information, please contact

Darren Cherry

Deloitte & Touche (M.E)

City Tower 2, Suite 2001A

Sheikh Zayed road

P.O. Box 4254, Dubai

UAE

Tel :+971 (4) 332 2484

Fax :+971 (4) 332 2296

Mobile : +971 (50) 550 2835

[email protected]

www.deloitte.com

Deloitte & ToucheMember ofDeloitte Touche Tohmatsu

Deloitte AMS

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