CONFIDENTIAL29/02/2008 1

SAPPresentation for Projects

Venkat SRP

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Agenda

Today’s Business & IT Challenges

Why implement SAP?

Critical Success Factors for a SAP Implementation

Example SAP Method/ Risk Management

Typical SAP Implementation Timeline

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Today’s Business & IT Challenges

In the recovering economy, companies are once again searching for growth of revenue and profit

Companies need to respond faster to market changes and adapt quickly to stay ahead of competitors

At the same time, there is intense pressure to reduce total IT costs which limits development and implementation initiatives

Companies need to reallocate money within their organizations in order to create sustainable value and innovation

Organizations are re-thinking their current strategies and developing new business models to reflect the changed market conditions

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Economic Trends: Enterprises are responding to global economic pressures through actions to control costs, achieve efficiencies and find pockets of global growth

Globalisation, as enterprises expand into new markets to boost sales and secure low

cost production facilities

Consolidation, as enterprises focus on achieving scale economies and creating

complimentary brand portfolios

Specialisation, as enterprises divest non-core operations to increase cost efficiencies

across the enterprise and improve shrinking margins

Increased Diligence, as enterprises bracing for years of wealth global economies

exercise better cost management and more rigorous focus on return on invested capital

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Strategic Trends: Enterprises demand better alignment of their business and technology strategies

E-business maturation, forcing enterprises to migrate existing legacy applications to the

web

Best Business Process Practice, as enterprises attempt to improve business and

eliminate applications based on sub-optimal business assumptions

Business Application Standardisation,, as enterprises try and reduce application

customisation

Business Application Interoperability,, as enterprises promote enterprise wide integration

and look to participate in net-markets, next generation business models and multi enterprise

networks

Integrated Global Resource Utilisation, as enterprises realise the cost advantage of using

lower cost labour resources to achieve cost efficiency goals

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Buying Environment Trends: Enterprises are seeing dramatic shifts in how, why and by whom IT investments are made

Increased Receptivity Towards Outsourcing, as enterprises differentiate on the

basis of products, services and knowledge rather than business processes and I.T.

support

Increased receptivity of Application Management, as enterprises become

comfortable with and often demand multi-vendor and multi- country resources for

AD/M

Increasing emphasis on ROI, as enterprises are demanding more business value

and productivity improvement from expensive technology investments

Continued Demand for skilled I.T. Resources, especially for specialised

applications core to industry competitiveness

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Why implement SAP?

Flexible: – Configuration of the SAP modules to suit Client business needs

Real-time:– Updates information immediately in the system as the data is saved – Provides improved access to real-time, integrated information

Audit Trail: – All transactions can be tracked to the person entering or changing data by

their SAP user ID Online:

– Display information and reports as you need them Integrated:

– Provides an enterprise with a common business language and the ability to develop Client wide processes and data structures

– Increases the coordination of departments– Client business workflow orientation versus stand-alone applications– Real-time “ripple” effect of data through all Client business functions– Seamless integration of data between Client business functions (e.g.,

automatic financial postings based on transactional processing in all modules)

– One-time data entry ensuring data consistency and reliability

Because of its integration

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Critical Success Factors for a SAP Implementation

Executive Buy-in and Go-ahead

Identified Business Problem and its solution via flexible IT infrastructure– Robust, flexible solution– Reuse– Sufficient input and support (cooperation) from the business

Project Governance defined (for project / foundation for enterprise)– People and rules, organization and functions are clear

Project Roadmap is defined – Description of all essential work items– Timeline and assurance for planned projects on the road

Milestones and measurements accepted by everybody

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Project Preparation

Business Blueprint

Realization Go Live and

Support

Sustain

Program Management

Business

Organization

ApplicationEvaluation Final

Preparation

Architecture

Operations

Stage I Stage II

Example SAP Method

Risks:• Development of risk

conscious culture for the project

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This example method was developed to address the six key focus areas of a complete life-cycle implementation.

Key Aspects of the method Supports the easy integration of methods when more than one is applicable to a project

and allows for tailoring to suit the needs of the industry or client Aligns with SAP’s tools and methods but extends beyond method and other vendor-

specific methods Designed to support complex programs of work with multiple concurrent projects Integrates key project work streams Provides the roadmap and description of work which must be accomplished tailored to

specific industry value chain Supports an integrated team concept and serves as the project documentation repository

Project Preparation

Business Blueprint

Realization Go Live and

Support

Sustain

Program Management

Business

Organization

ApplicationEvaluation Final

Preparation

Architecture

Operations

Dom

ains

Example SAP Method

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Typical Client SAP Method

•Specific to SAP AG’s AcceleratedSAP™ (ASAP) method, the typical Client SAP method has been mapped across the phases of an SAP implementation and enhanced with the addition of two phases – Evaluation and Sustain

•This SAP method complies with the key concepts of ASAP. Pr

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SAP AG TM for AcceleratedSAP

Typical Client SAP Project Lifecycle

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• Project Phases Phase 0 - Evaluation Phase 1 - Project Preparation Phase 2 - Business Blueprint Phase 3 - Realization Phase 4 - Final Preparation Phase 5 - Go Live and Support Phase 6 - Sustain

• Approach Philosophy Typical Client SAP is designed to be scalable and encourage the iterative

definition and refinement of deliverables throughout the project lifecycle. The project lifecycle is composed of activities that are organized by phase and domain views. These activities represent specific activities and deliverables (outputs).Typical Client SAP method enhances SAP’s standard AcceleratedSAP method by including the Evaluation and Sustain Phases, and by additional material included within the other phases.

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Objective: Develop and / or confirm

project scope, align scope with company strategy, and build stakeholder support

Sample Key Deliverables/ Results: Strategy, Market Position Analysis Document Prioritized List of Strategic Opportunities Preliminary Change Readiness Assessment Completion of Executive Level Confirmation

Workshops Project Strategies are complete and signed-off by

the project sponsors Project scope is signed-off by the project sponsors Project Plan is delivered The project kickoff meeting is held The Steering Committee is in place The project team is staffed

Phase 0 – Evaluation

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Activities:• Understand Customer Strategy and Market Position.• Understand Strategic Opportunities• Understand the Client’s Readiness for Change• Conduct Senior Executive Level Workshop Covering:

– Project Strategies Confirmation– Project Scope– Organization Readiness– Demonstration of SAP BW Capabilities and Impacts

• Build planning for the SAP BW project• Establish Project Organization• Assign resources

Example SAP Method

Risks:• Analyis business and financial risk that will impact the forecasted timeline

• Evaluate possible risk of change in business requirement affecting the expected business benefit

• Measure the business risk of the customer against initial project requirements.

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Objective: Perform detailed project

planning & scoping, establish the project team, and refine documents created in evaluation

Phase 1 – Project Preparation

Activities: Create Project Charter Refine Project Team Organization Refine Earned Value Milestones Develop Detailed Workplan Define Project Methods, Standards, Procedures, and

Tools Understand Risks and Critical Success Factors Conduct Team Orientation Define Technical Infrastructure Organization

Sample Key Deliverables/ Results: Project Charter Project Team Organization Structure Milestone Program Plan Detailed Workplan Document Methods, Standards, Procedures, and

Tools Project Risks and Critical Success Factors

Assessment Team Orientation meeting is held Technical Infrastructure Organization Document

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Example SAP Method

Risks:• Lack of key project resources

• H/W performance issues

• Slippages against plan

• Key Project resources

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Objective: Create a detailed description

of your business information requirements

Phase 2 – Business Blueprint

Activities:• Conduct Trainings• Define Information Requirements• Identify Business Content Reports/ Indicators • Define new Reports/Indicators• Define Reports/Indicators components• Perform GAP Analysis and Resolution• Build Detailed Analysis Document• Set up and Install Development Environment• Conduct Scope Workshops• Build Detailed Workplan for Remaining Phases

Sample Key Deliverables/ Results: Information Requirement Forms Detailed Information Requirement Document Detailed Analysis Document Detailed Workplan for Remaining Phases

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Example SAP Method

Risks:• Redundancy in technology and impact to business

• Downtime and impact to the business

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Objective: Realize the business

requirements defined in the Business Blueprint & transform the requirements into an approved working system

Phase 3 – Realization

Activities: Install Business Content Indicators/Reports Build Non Business Content

Indicators/Reports Conduct Test sessions Develop Training Materials Conduct Instructor and Pilot training Create Security Authorizations Define Go-Live Checklist

Sample Key Deliverables/ Results: Components Test Plan Report/Indicators Test Plan Trained Project Team on Testing Methods and

Supporting Tools Security Profiles and Authorizations Created Procedures and Training Materials Built and Tested Report/Indicators Knowledge Transfer Assessment

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Example SAP Method

Risks:• Systems failure (operational, performance bottlenecks)

• Application integration failure

• Scope creep

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Objective: Complete preparation of

the production SAP BW system, including end user training, system management, and cutover activities

Phase 4 – Final Preparation

Sample Key Deliverables/ Results:• Cut Over Checklist• Production Readiness Review• Quality Review• Go Live Approval

Activities:• Products Promote to Production• Conduct System Test• Refine and Execute Go Live Checklist• Refine and Execute Production Support Plan • Prepare and Conduct End User Training • Conduct Quality Review and Obtain Final Cut

Over Approval

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Example SAP Method

Risks: Pilot test failure Performance issues due to infrastructure scalability Knowledge/ skills transfer gap

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Objective:Transition from a pre-

production environment to a live, stable, productive operation

Phase 6 – Go Live and Support

Sample Key Deliverables/ Results:• Production System Ready • Center of Excellence (COE) – Knowledge

Management• Production Capable End Users• Post Implementation Project Review

Activities:• Provide Production Support (Help Desk)• Validate Information Results • Optimize System Tuning• Execute Ongoing Security Administration• Conduct Post Implementation Project

Review• Benefits Measurement

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Example SAP Method

Risks: Go live failure due to incorrect requirement

capture therefore need to have old system operational

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Phase 7 – Sustain

Activities:• Provide Production Support (Help

Desk)• Optimize System Tuning• Benefits Measurement

Sample Key Deliverables/ Results:• Center of Excellence (COE) – Knowledge

Management• Post Implementation Project Review

Objective:• Help ensure that there

is a framework in place to sustain and improve the performance of the system after go-live

Example SAP Method

Risks:• Lack of skilled resources to maintain the operation

running of the system in its early years

• transition risks due to unclear system design

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Typical SAP Implementation TimelineGo-Live Go-Live <Date><Date>

Focus Getting the project

started Identifying Team

members Developing a high

level plan

Deliverables Project Standards

and Procedures Project Charter Scope & Approach OCM Strategy Project Plan Project team training

plan Project Kickoff

Meeting

Project Preparation

0.5-1 month

Focus Understanding the

Client’s Business Goals / Requirements

Gaining a high level understanding of SAP

Developing Business Blueprint

Deliverables Project Team Training Org Structure Communications Plan End-User Training

Strategy Business Process

Master List Approved Business

Blueprint Refined Project Plan R/3 Development

system

Blueprint

1-2 months

Focus Configuration / Development

of the system (Including unit and Integration testing)

Preparation of end-user training

Organizational Change Management

Deliverables Test Plans (Unit, Integration,

User Acceptance, System) Configured system according

to blueprint R/3 Quality Assurance

System R/3 Training System User Roles & Authorizations End-User Training materials

Realization

2-4 months

Focus End-user training User Acceptance Preparations for

Cutover Organization

Change management

Deliverables System validation:

(Security, Data, Configuration, Development, Technical Infrastructure)

Production Support Plan (Help Desk)

Cutover Plan End-User Training Go / No-Go

Decision R/3 Production

System

Final Preparation

1-2 months

Focus Cutover and

validation of the production system

Supporting the end-users

Issue resolution

Deliverables Production

Environment Production Support Go-Live review Project close letter Transition to

Hosting services

Go-Live and Support

1-2 months

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57%47%

46%44%

34%30%30%

26%24%23%

20%19%

11%7%6%

3%

0% 10% 20% 30% 40% 50% 60%

Lack of resourcesLack of applications skills / knowledge

Cost reductionFocus to our core competencies

To reduce workload on internal IT staffTo address a lack of infrastructure

To provide predictable costsTo improve flexibility/scalability

To improve speed to marketTo provide training skills/knowledge

To provide business process skills / knowledgeTo reduce risks

To gain expertise in enterprise application strategiesTo provide predictable schedules

To provide consistent remote locations adoption / supportOther

Client pain points around application management?

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CONSULTANT DETAIL

• Name :

• Email :

• M: