crm implementations and upgrades

© 2008 BearingPoint, Inc. All rights reserved.

SAP CRM Implementations and Upgrades: A Step-by-Step Guide

Peter WareBearingPoint

22

What We’ll Cover …

• Introduction• Project initiation • Project planning• SAP solution manager and services• Functional execution• Technical execution• Change management• Training• Wrap-up

33

Main Focus of This Session

• Project management techniques, tools and lessons-learned from SAP CRM Projects

• All topics that are an essential part of CRM projects Cover what works and what doesn’t work

• Applies to IT and project managers and team members with an imminent SAP CRM implementation

• Intended to inform, offer guidance, and help you negotiate the learning curve a little less painfully

4

Before We Start — Anatomy of a CRM Project

• Based on a recently completed SAP CRM 5.0 Global Service Management implementation project for a high-tech manufacturer Addressed Service Order Management, Contact Center,

Technical Support, Project Cases, Scheduled Maintenance, Product Service Letters, Scheduling and Dispatch, Confirmations, Contracts Management, Billing and Service Finance, Business Intelligence and Field Service Mobility via Blackberry devices

Implemented in US, EU and Asia,14 countries, 2,200 users, in 15 months

• Also other valid lessons learned from 30 years project management experience History tends to repeat itself

55



6

Project Initiation

• Defining the problem to be solved• The importance of involving stakeholders early• Defining the business requirements• Determining the Return on Investment (ROI)

7

Defining the Problem to Be Solved

• Strategic considerations Ideally a project should evolve from strategic considerations

The corporation creates a vision for the future with goals for the next 5-10 years

The division determines how it will support, and what it should do to realize the vision and goals

This then would include some form of business transformation with objectives defined to realize the goals

• Tactical considerations A business transformation will compete for investment in

the corporation If it is not a foundation of the overall strategic plan it may be at risk

downstream from competition for funding A solid ROI and payback to justify the investment is necessary

8

Stakeholder Management

• Stakeholders set the vision, direction, and requirements for the project

• Get stakeholder influence inputs early in the life-cycle — later in the project cycle is more costly to change

• Stakeholders: executives, management, users, internal and external customers

9

Building Blocks to the New Business Model

10

Defining the Business Requirements

• When the need for the project is identified, start defining the requirements and process for the new business model

• Options1. Define the current and future states of the business model

2. Minimize the current model and focus on the future state model

3. Don’t do either; use the SAP standard processes and capabilities as the guideline for the future state model of the business

11

Option 1: Documenting the Current State

• Pros Identifies business as usual that must be supported in addition

to the new changes that must occur A framework to analyze current state process issues and

translate them into the potential ROI Defining today’s requirements eases the leap to tomorrow

• Cons An investment that is often judged as not required Adds time and cost to the project timeline

12

Option 2: Documenting the Future State

• Pros Essential to define the requirements to support the new

business model — new strategic capabilities Confirms ROI by identifying processes that capture benefit Identifies business areas that require more definition Participation provides the leverage for adoption (ownership)

• Cons The future state can develop beyond the basic requirements to

satisfying wish lists or non-essential (to the business case) functionality

Could define a model that is outside standard SAP functionality (e.g., has a high enhancement component, thus increasing risk and cost)

13

Option 3: Using SAP Standard Processes As the Future State Model

• Pros Out-of-the box capability, as is, the software would require no

enhancements Definitely the least cost and time to implement

• Cons May offer significant change from existing processes, making it

a hard change to adopt May not deliver the process improvements you are looking for

in the benefits case The missing business as usual requirements are detected and

require definition in design, causing delay The devil is always in the details; discovery sometimes hurts

14

Criteria for Requirements Definition

• Involve and or represent all stakeholders in the process• Give each requirement a unique tracking number• Sections

Function and sub-function: A statement summarizing the specific requirement

Description: A more detailed explanation of the requirement Importance: A rating of assessed need, expressed as

1=Business mandatory, 2=Highly desirable, 3=Nice to have, 4=Not required

Vendor rating: A rating or an assessment of requirements “fit,” expressed as S=Standard functionality, P=Partial functionality, A=Add-on (third-party), C=Custom functionality, O=Other

Comments: A free-form multi-purpose field, may be used to further qualify or define requirement

15

Later Purposes for the Requirements Listings

• Provide traceability to the SAP functions Tie the requirements to the SAP functions in the modules

satisfying the requirement Planning: Identifies standard functions versus gaps Feedback to stakeholders: “We listened” Design: Provides specific information on functionality

• Indicate which requirements or SAP functions are tied to planned ROI and benefits

• Repository for requirements and functionality for future releases — never can do everything at once

16

Relationship of Requirements and Process

A LEVEL

B LEVELB LEVEL

ENTERPRISE

CLEVEL

CLEVEL

PROCESS

REQUIREMENTS

REQUIREMENTS

ABCCorp

CALL CENTER

CALL RECEIPT

CALL RECEIPT

DOMAIN

DOCUMENTATION SCHEMA

17

Determine the ROI

• Interview the leadership on their view of opportunity• Piggy-back off the definition of current state process• Conduct a workshop with a cross-section of

the organization Middle managers, supervisors, workers and finance

• Supply a pre-prepared hit list of typical issues• Ask the question “What problems exist today across the

organization?”• Identify every match, calculate an order of

magnitude estimate• Rank the top 20 based on results

18

Determine the ROI (cont.)

• Involve finance in the process (validated numbers) • For each item, conduct a detailed costing using defect

pricing techniques Estimated expense, time, frequency

• Also document the measures of the item• Select the top 10 opportunities based on the savings

realized if the problem is addressed• Calculate the return over five years• Estimate the proposed project costs and prepare an ROI• Go get funding

1919


• Introduction• Project initiation • Project planning• SAP solution manager and services• Functional execution • Technical execution• Change management• Training• Wrap-up

2020

Project Planning

• High-level project life-cycle• The planning process• Setting the scope• Technical requirements• Project organization and staffing• Project roadmap• Budgeting

21

High-Level Project Life-Cycle — Planning

• Planning and strategy Project planning and kick-off Vision and principles Process scenario definition

• Business process workshops Business process validation Requirements validation

• Solution analysis Assess requirements against

SAP CRM Conduct solution analysis Identify SAP functions to support

business scenarios and functions

22

Scope Design

• Scope definition Develop work packages

Design documents Key design decision analysis Development specs Configuration templates

• Solution design Develop design documents Development specifications

Configuration specifications Functional specifications

23

Build Deploy

• System build Develop configuration Develop configuration

documentation RICEF development

• Business Process Procedures (BPPs) Develop BPPs

• Testing Integration testing User acceptance testing

• Roll-out System cutover Go-live and support

Go-Live!!

System Cutover

Business Process Procedures

System Configuration and Development

Integration Testing

UAT

Testing

Go-Live!!

System Cutover



Integration Testing

UAT

Testing



Integration Testing

UAT

Testing

24

The Planning Process

STATEMENT OF WORK

BUSINESS REQUIREMENTS

SAP FUNCTIONS

4/2/07 2/7/08

5/1/07 6/1/07 7/1/07 8/1/07 9/1/07 10/1/07 11/1/07 12/1/07 1/1/08 2/1/08

Project Timeline Title

7/30 - 10/5Integration Testing

5/28 - 7/27CRP 4

1/7 - 1/24Go-Live

4/2/07Project Start

7/23CRP4

9/10IT1

9/24IT2

10/29UAT-C

11/12UAT-L

11/30/07Final Cutover

4/2 - 5/25CRP 3

5/21CRP3

10/8 - 11/26UA Testing

12/3 - 1/6Final Cutover

2/1/08Project complete

SCOPE

ChangeManagement

4/2/2007 5/25/2007

4/9 4/16 4/23 4/30 5/7 5/14 5/21

CRP3 Prep

Program Governance and Monitoring

SAP Functional

Configuration Baseline (60%)

SAP Technical

Technical Specs (40%)

CRP3

Configuration Docs (60%)

Development of pre-Integration Test (30%)

Change Management

BusinessBusiness Readiness

Testing

ProjectManagement

Functional Specs (60%)

Scenarios

Design Integration (Business / Functional / Technical)All

Data Clean-up / Data Migration planning & testingData

Migration

5/25CRP3 Complete

5/21CRP3 Start

Q/A Environment Setup

BPP Preparation

5/7Start

CRP Prep4/2Project Start

Change Agents

Program Management Office

Steering CommitteeAdvisory Committee

Organizational Change

Management

Workforce Transition

Field Exec/ Comms

Business Intelligence

KPI / Metrics

SAP Business Warehouse

Reporting / Analytics

Tra

cks

Key

Act

ivit

ies

Business Transformation

BPP

Process &Procedures

CRP3 / CRP4 / IT / UAT

Contact Center

Service Delivery

SAPFunctional

Design & Configuration

CRP3 / CR4 / IT / UAT

Configurations

Executive Sponsor

Technical

Infrastructure

Development

Portal

Basis

Middleware

Training

Commercial

Master Data

Customer Readiness

SAP Solution Architect

Business Architect

Performance TestLead & Team

Testing Lead& Team

Data MigrationLead & Team




Management


Field Exec/ Comms


KPI / Metrics



Tra

cks

Key

Act

ivit

ies


BPP

Process &Procedures


Contact Center

Service Delivery

SAPFunctional



Configurations

Executive Sponsor

Technical

Infrastructure

Development

Portal

Basis

Middleware

Training

Commercial

Master Data

Customer Readiness


Business Architect


Testing Lead& Team


BUDGET

SIZING

H/W REQTS

TECHNICAL ARCHITECTURE

SOFTWARE

ORGANIZATION

PHASE, TRACKS, ACTIVITIES

TIMELINE

PROJECTPLAN

25

Setting Scope

• Total scope is a function of the overall business transformation being affected

• The bigger it is, the larger the risk and change components — all the more difficult to manage

• Enterprise can absorb only a finite amount of change at one time There is a business to run and the resources are always shared

• Preferred choice should always be a series of smaller releases or successes However, it is constrained by a number of factors

26

Setting Scope (cont.)

• Infrastructure A global implementation converting a number of standalone

systems to a single system allows the luxury of bringing up a region at a time — much reduced risk

• If the system being replaced or upgraded is already global, big-bang is the only way — potentially high risk

• The larger the business transformation (e.g., operations, sales and marketing, and customer services) the more difficult it is to control the integration management of systems and processes across the enterprise

• Business dependencies create added risk

27

Setting Scope (cont.)

• Amount of custom work beyond standard functionality (Reports, Interfaces, Conversions, Enhancements and Forms (RICEF)), the higher the risk

• Technical requirements figure into scope Bleeding edge is high risk Un-proven software releases or latest technology are risky Technical skills are scarcer on the latest release

• Cost is directly related to the work and ultimately affected by the impact of risk

• Always consider risk when setting scope

28

Technical Requirements

• Scope drives technical architecture, sizing, software, and hardware requirements

• Within the scope, the business processes (e.g., types of transactions, volumes, and end users) are used in the sizing process

• The end result is the software combination required to support the solution set

• Hardware requirements in terms of CPU and memory are also derived from sizing

29

Project Organization




Management


Field Exec/ Comms


KPI / Metrics



Tra

cks

Key

Act

ivit

ies


BPP

Process &Procedures


Contact Center

Service Delivery

SAPFunctional



Configurations

Executive Sponsor

Technical

Infrastructure

Development

Portal

Basis

Middleware

Training

Commercial

Master Data

Customer Readiness


Business Architect


Testing Lead& Team





Management


Field Exec/ Comms


KPI / Metrics



Tra

cks

Key

Act

ivit

ies


BPP

Process &Procedures


Contact Center

Service Delivery

SAPFunctional



Configurations

Executive Sponsor

Technical

Infrastructure

Development

Portal

Basis

Middleware

Training

Commercial

Master Data

Customer Readiness


Business Architect


Testing Lead& Team


30

Staffing the Project

• Project staffing is in generic teams or tracks Project Management Office, Business, Change Management,

Functional, Technical and optionally Business Warehouse• There are also cross-track shared resources in purpose-

driven teams Performance Test, Data Migration and Cutover and Testing

• There may be special resources (e.g., SAP or business architects)

• Types of resources are based on the skills required• Timing is based on the project plan• Cost is based on activity time derived in the plan

through the life-cycle phases

31

CRM Project Roadmap

• A roadmap is a means of delivering a methodology to the individuals who might benefit from using it

• The project roadmap is the framework that ties the proposed timeline to the methodology and includes: Deliverables and ownership Stakeholder participation Milestones and phase reviews

• Used to: Manage the project Explain project status Set expectations on what the next steps are to stakeholders and

the delivery team

32

Project Roadmap — Timeline

• Timeline• Dates • Major milestones• Phase exits

33

Project Roadmap — Tracks and Activity by Phase

ChangeManagement

4/2 2007 5/25/ 2007

4 9 4/16 4/23 4/30 5/7 5/14 5/21

CRP3 Prep


SAP Functional


SAP Technical


CRP3


Development of pre- Integration Test (30%)

Change Management


Testing

ProjectManagement


Scenarios

Design Integration ( Business / Functional / Technical)All

Data Clean- up / Data Migration planning & testing

DataMigration

Q/ A Environment Setup

BPP Preparation

/Tracks / Teams

Each activity is timed and has a % planned completion to guide resource planning

34

CRP3 is:• A validation of the configured

solution at 80% complete, using end-to-end business scenarios

• Some breaks in the system process will occur

• Some RICEF components will be shown as a part of the solution

• Core Team demonstration mode• Viewed by Change Agent Team

ChangeManagement

4/2/2007 5/25/2007

4/9 4/16 4/23 4/30 5/7 5/14 5/21

CRP3 Prep


SAP Functional


SAP Technical


CRP3


Development of pre-Integration Test (30%)

Change Management


Testing

ProjectManagement


Scenarios

Design Integration (Business / Functional / Technical)All


Migration

5/25CRP3 Complete

5/21CRP3 Start

Q/A Environment Setup

BPP Preparation

5/7Start

CRP Prep4/2Project Start

Change Agents

4/2/07 2/7/08

5/1/07 6/1/07 7/1/07 8/1/07 9/1/07 10/1/07 11/1/07 12/1/07 1/1/08 2/1/08



5/28 - 7/27CRP 4

1/7 - 1/24Go-Live

4/2/07Project Start

7/23CRP4

9/10IT1

9/24IT2

10/29UAT-C

11/12UAT-L


4/2 - 5/25CRP 3

5/21CRP3




Put It All Together — With a Little Explanation

35

Each Phase Follows the Roadmap

CRP4 is:• A validation of the final configured

solution using end-to-end business scenarios

• Less breaks in the system process • More RICEF components will be

shown as part of the solution• Core Team hands-on• Viewed by Change Agent Team

ChangeManagement

5/28/2007 7/27/2007

6/4 6/11 6/18 6/25 7/2 7/9 7/16 7/23

SAP Functional

Final Configuration (100%)

SAP Technical



Development (75%)

Curriculum Development

Business

Business Readiness

Testing

ProjectManagement


Business Process Procedures (50%)

Scenarios


CRP4 Prep CRP4

Design Integration / Issue Resolution (Business / Functional / Technical)All


MigrationChange Management

Cutover Planning

PTOOppty 7/27

CRP4 Complete

7/4July 4th

7/2Start CRP4

Prep

Change Agents

5/28Memorial

day5/29

CRP4 Phase Start

7/23Start CRP4

4/2/07 2/7/08

5/1/07 6/1/07 7/1/07 8/1/07 9/1/07 10/1/07 11/1/07 12/1/07 1/1/08 2/1/08



5/28 - 7/27CRP 4

1/7 - 1/24Go-Live

4/2/07Project Start

7/23CRP4

9/10IT1

9/24IT2

10/29UAT-C

11/12UAT-L


4/2 - 5/25CRP 3

5/21CRP3




36

Budgeting

• Resource: employee or contractor• Hourly rate• Plan and actual hours• Plan and actual cost• Plan and actual expenses• Summarize by department• Accumulate long-term assignment cost• Convert plan to actual each period

3737



38

The Role of SAP Solution Manager

• SAP Business Suite implementation and upgrades Accelerates implementation by providing content Speeds up blueprint, configuration, and final

preparation phases Supports centralized control of cross-component

implementations • Change control management

Controls all software and configuration changes with approvals Ensures traceability of all changes

• Testing Single point of access to the complete system landscape Centralized storage of testing material and test results to

support integration tests

39

The Role of SAP Solution Manager (cont.)

• IT and application support Helps manage incidents — centralized handling of

support messages• Root cause analysis

Diagnostics functions allow identification, analysis, and resolution of problems, even in heterogeneous environments

Can isolate performance bottlenecks, incidents, and changes • Solution monitoring

Real-time monitoring of systems, business processes, and interfaces

Automatic notifications

40

The Role of SAP Solution Manager (cont.)

• Service-level management and reporting Automated reporting

• Service processing Makes appropriate service recommendations Includes SAP Safeguarding, SAP Solution Management

Optimization, and SAP Empowering • Administration

Tasks are executed locally but can be accessed and triggered from a central administration console

Unified access to all SAP technology

41

Linkage from Business to Transaction

Business Scenario

BusinessProcess

ProcessStep

A business scenario is a set of processes that define a business task in a comprehensive and self-contained manner on a macro level

A business process is a set of logically related activities performed to achieve a defined business outcome (cf. Davenport & Short, 1990)

A process step is an elementary activity performed to accomplish a process

Contact to Log

Contact – Interaction Center

Identify Account

Transaction(s) CRM_IC WebIC

42

SAP Technical Feasibility Check

• First step in managing technical risks for your SAP solution, in the framework of a SAP MaxAttention or SAP Safeguarding engagement

• Follows the risk management process of identifying, quantifying, assigning, mitigating, and then monitoring risks

• Delivered by an on-site team with remote access to additional SAP consultants

• Overall process is driven by your SAP Solution Manager

43

SAP Technical Feasibility Check (cont.)

• It takes time to bring the SAP team up to speed, focus on management time versus delivery time

• Our client signed up for it, it was a little difficult at first, but the SAP folks really dug in and validated the approach

• We received a completely clean sheet• The validation is absolutely worth it and recommended,

regardless of who the primary Systems Integrator (SI) is

44

SAP GoingLive Onsite Service

• Mitigate potential risks of critical go-lives• React quickly to issues, due to fast access to SAP in-

depth knowledge• Increase technical stability, performance, throughput,

and maintainability of to-be solution• Increase the competence of your support organization

through knowledge transfer from the SAP consultants who are onsite, as well as, fast access to SAP knowledge

• Support the first run of critical processes at, and after, go-live, such as a period-end closing

45

SAP GoingLive Onsite Service (cont.)

• Document core business processes of the to-be solution• Set up key monitoring functions of the SAP

Solution Manager For example: There was a problem with a J2EE engine,

continually running garbage collection. As a result RPA scheduling notifications were not reaching the intended recipients and messages were queuing up within CRM. At the time there were approx 63,000 entries in the MapBox queue and slow performance for IPC (seven days since go-live)

This is a key service process (dispatch notification)

4646


• Introduction• Project initiation • Project planning• SAP solution manager and services • Functional execution• Technical execution• Change management• Training• Wrap-up

47

Functional Execution

• Deliverables• Planning and delivering configuration• User acceptance testing (UAT)• UAT measures

48

Functional Deliverables

• Define SAP implementation strategy• Define technical architecture and standards for

the project• Develop business process scope document • Conduct business design workshops• Design system solution• Identify and define development requirements (RICEF)• Define user roles and authorization requirements• Establish development environment

49

Functional Deliverables (cont.)

• Prepare and conduct conference room pilot (CRP) reviews CRP1, CRP2, CRP3, CRP4

• Build the SAP pilot release• Gather detailed business rules and business values

specifics for configuration• Conduct baseline configuration, testing and shadowing

with client Business Process Analysts (BPAs)• Design rework as necessary to accommodate issue

resolution and process exceptions• Complete final configuration, testing and shadowing

with client BPAs• Author detailed functional specifications

50


• Author detailed configuration documents• Resolve issues related to design and propose solutions• Integration testing — preparation, execution, and

issue resolution• Support business team in the creation of business

process procedures (BPPs)• Application role and user authorization definitions• User acceptance testing — preparation, execution, and

issue resolution• Trial and final cutovers — preparation, execution, and

issue resolution

51


• Go-live — readiness review• Go-live — preparation and execution• Post go-live — support and issue resolution• Support SAP BW functional team in activities related to

design of InfoProviders and reports

52

Planning and Delivering Configuration

• “You know when you are done when you finish” • Viewed as an art vs. a science

It can’t be planned … not! However, it is a struggle to plan for a number of reasons

• SAP CRM is tightly integrated A configuration change that satisfies one situation can

completely break an already tested and agreed upon step• The design has to be implemented and validated in a

number of cycles, each one progressively adding functionality

• Most times you don’t know what can be done or what will be a gap until you explore the capabilities of the system

53

Planning and Delivering Configuration (cont.)

• Avoid the tendency to go straight to defining a gap if the solution is not immediately obvious

• Configuration is implemented in a series of steps that culminate in a conference room pilot

• The solution, at it’s stage of development, is reviewed in the conference room pilot (CRP1 – 4)

• The users validate the solution and provide feedback and new requirements

• The later in the cycle the requirements are received, the more painful it is to include them without a schedule impact

54

User Acceptance Testing

• Conducted in 2x2 week workshop sessions, US and Asia• About 40 people in each• Representatives from every region/business group with

a target of two attendees per role • Prepared test scenarios made up of combined smaller

test scripts around core business processes• Added variations on a theme for exceptions• Tracked test performance in pass/fail mode using HP

Test Director• Re-tested all failed scenarios and scripts following

the workshops

55

UAT Measures

• Scenarios complete• Scripts executed• Scripts passed

Executed scripts

0%

20%

40%

60%

80%

100%

120%

11/1

3/20

07

11/1

4/20

07

11/1

5/20

07

11/1

6/20

07

11/1

7/20

07

11/1

8/20

07

11/1

9/20

07

11/2

0/20

07

China

Taiw an

Singapore

Japan

Korea

US

Goal

Passed Scipts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

11/13

/200

7

11/14

/200

7

11/15

/200

7

11/16

/200

7

11/17

/200

7

11/18

/200

7

11/19

/200

7

11/20

/200

7

China

Taiwan

Singapore

Japan

Korea

US

Goal

Scenarios complete

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

11/13

/200

7

11/14

/200

7

11/15

/200

7

11/16

/200

7

11/17

/200

7

11/18

/200

7

11/19

/200

7

11/20

/200

7

China

Taiwan

Singapore

Japan

Korea

US UAT

Goal

5656



57

Technical Execution

• Deliverables• RICEF• Rework• CRM middleware• Data migration and cutover• Importing and migrating custom code• Performance testing• IT department touch-points

58

Technical Deliverables

• Environment setup — QA, PERF, PROD• Environment setup support to client for training• CRP 3 — support preparation and execution• Author detailed technical specifications• CRP 4 — support preparation and execution• Resolve issues related to system setup and environment• RICEF — development and unit testing• Author technical documentation for RICEF items• Manage RICEF workload distribution between client,

vendor, and third-party• Track RICEF allocation and delivery status in

shared system

59

Technical Deliverables (cont.)

• Update the program plan with RICEF status • Integration testing — support preparation, execution,

and issue resolution• Application role and user authorization —

implementation of roles• User acceptance testing — support preparation,

execution and issue resolution• Cutovers

Trial — in CRP 1 – 3 Final — support of preparation, execution and issue resolution

• Go-live — readiness review• Go-live — preparation and execution• Post go-live — support and issue resolution

60

RICEF

• Always a critical and difficult area to manage• Clear definition of scope is required up front, followed by

formal change management to avoid scope creep • Delivery is typically a mix of onshore and offshore• The combination of managing onshore and offshore

delivery is complex and potentially problematic• Fortunately there are mitigation steps that can be taken

61

RICEF — Reports

• Historical, operational performance Export data to SAP BW daily Requires development of data extractors Requires development of data cubes Specialized design area Expensive resource, not too many around in CRM

• Real-time, tactical, operational performance Address through online reporting Keep it simple and avoid giving them ability to bring the system

to its knees

62

RICEF — Interfaces and CRM Middleware

• Most companies grow a heterogeneous environment that evolves over time Then along comes SAP to offer a standard platform

• Middleware provides standard integration between back-office and front-office SAP systems

• Very few CRM implementations are standard• The gaps are usually picked up by modifications to the

standard middleware and custom interfaces• A typical service SAP CRM project has many more

interfaces in addition to the middleware supplied

63

RICEF — Conversions

• Required to transfer the data from the legacy or source systems to the new SAP CRM system For an upgrade it is SAP to SAP

SAP R/3 to SAP CRM middleware SAP CRM SAP CRM middleware

Standalone CRM or linked to SAP R/3 Legacy to SAP CRM combo of middleware and custom

Key service requirement is to build the Ibase As-built Equipment has configurable components Component-level data comes from Manufacturing or build

systems outside service Multi-step process: extract, clean up, build, load

Middleware is useful but rarely supplies all the answers

64

RICEF — Enhancements

• Always try to configure to meet the requirements If you can’t, it is a gap that is plugged by an enhancement

• Enhancements are always a potential risk area due to complexity

• Complexity ranges from: Simple: Adding and maintaining a data element on Web IC Complex: Writing a module to manage entitlement under

varying conditions in the Contracts module• Functional specifications

Written by functional team and distributed to technical team who produce technical specifications, develop, and test

• Risk occurs in interaction between offshore and onshore resources in the development and acceptance testing process

65

RICEF — Forms

• Typically easy and saved until the end Usually a conversion of one type of form to a CRM form Layout, etc., is know

• Forms require special attention In one SAP R/3 implementation, it was assumed that the new

CRM forms would be a copy of the old However, users were not using the SAP R/3 forms

They were using creative ways to extract and modify invoices, quotes, credit and debit memos

• Forms deserve their own CRP and UAT sessions

66

RICEF — Work Distribution

• High-level decision criteria Cost Available resources Skills Complexity Criticality Physical location Knowledge

67

RICEF — Work Assignment Factors

• Reports Driven by the BI business with the business Much trial and error interaction BI focus onshore design onshore or offshore build

• Interfaces Key knowledge: Legacy and SAP CRM onshore design

offshore build• Conversions

Key knowledge: Legacy and SAP CRM onshore design offshore build

Complexity very high onshore build

68

RICEF — Work Assignment Factors (cont.)

• Enhancements Complexity very high onshore design onshore build Complexity medium onshore design offshore build Complexity low onshore design offshore build Offshore locations may have skills differences. This must weigh

in where there are multiple choices CRM knowledge

• Forms Seldom complex, always the last items to be fixed Onshore design offshore build testing requires data

generated by end to end process execution

69

Offshore Challenges

• Very attractive based on cost — an essential part of delivery now

• RICEF involves knowledge transfer from business to functional to technical resources across continents

• Communication must be clear and frequent, distance adds language and time delays to the mix

• Track progress through a shared Web-based tool —workflow pushes the deliverable to the next person

• To meet technical requirements without error depends on more than the developer understanding of the code, understanding the impact of changes is important

• Rework is a fact of life and a killer of schedule

70

Rework Is a Certainty — Minimize It!

• Offshore rework cycle Offshore sends to onshore Four hours onshore response — busy Two hours test time 16 hours time difference One hour communication Four hours offshore — busy Two hours rework Offshore sends to onshore Total cycle time 29+ hours

• Complex developments Take up to 30 cycles

• How do you minimize it?

71

Minimizing Rework

• Visit vendor’s off-shore facilities Assess: skills, availability, references, management, quality and

infrastructure • Bring sufficient key technical people onshore

during design Ground them in the design docs — team lead levels

• Start technical specifications onshore and monitor quality

• Have the key technical people return offshore and recruit the team

72

Minimizing Rework (cont.)

• Review the resumes and experience• Send low, medium, and some high complexity offshore

as appropriate based on capability• Retain very high complexity for onshore• Bring the key technical resources onshore towards the

end of Realization phase for acceptance testing and the inevitable rework

73

CRM Middleware Capabilities

Products SAP R/3 SAP CRM

Replicate materials from SAP R/3 to SAP CRM

SAP R/3 is the system of record for configured products

Installed Base SAP R/3 SAP CRM

Equipment record created in SAP R/3 needs to trigger the creation of installed base individual object in SAP CRM

Business Partners SAP R/3 SAP CRM

Download of customers in SAP R/3 to SAP CRM as organizations

Org Structure SAP R/3 SAP CRM

Download of organizational structure

Sales Order Replication SAP R/3 SAP CRM

Standard sales order replication

74

CRM Middleware Capabilities (cont.)

Employees SAP R/3 SAP CRM

Standard employee replication

Groupware Integration to Microsoft Outlook and IBM Lotus Notes

VC SPA R/3 SAP CRM

Variant configuration

Pricing Config SAP R/3SAP CRM

Pricing rules

75

Data Migration and Cutover

• Involves preparing and sequentially building the data that is required for the new system

• When the plan has been put together, we recommend at least three trial cutovers are planned Test execution and develop the required level of detail and

quality assurance • The longest most difficult part of the data migration for

service is always the building the Ibase • Data migration requires resources from the business

who know the data — they usually have other jobs to do • This is a critical activity and always a potential risk area

76

Sample Scope of Data Objects for Cutover

Data ObjectCurrent SourceSystem

Target System

Migration Method

Sale Organization Structure R/3 CRMInitial download via middleware. Manually change the description of the sale org.

Customer R/3 CRMInitial download via Middleware. Any additional information in Clarify will need to be evaluated and populated in the CRM customer master.

Contacts Legacy CRM Initial download via developed interface.

Employee Legacy CRMInitial download via developedInterface.

Employee (Field Engineers,

Sales Partners)R/3 CRM

Initial download via enhanced Middleware interface.

Business Partner

RelationshipsR/3, Legacy CRM

Business Partner relationships will need to be created in CRM based oninformation in R/3 and legacy HR.

Products (Materials) R/3 CRM Initial download via middleware.

Products (Configurable

Service Offerings)R/3 CRM Initial download via middleware.

Products (Non-configurable

Service Offerings)R/3 CRM

Manual data entry in CRM as ServiceProducts.

77

Sample Scope of Data Objects for Cutover (cont.)

Data ObjectCurrent Source

SystemTarget System Migration Method

Spare Parts R/3 CRM Initial download via middleware.

Tooling R/3 CRM Initial download via middleware.

Resource Skills Training System CRMManual data entry until developed interface is available in subsequent release.

Resource Calendar N/A CRM Manual data entry.

Pricing R/3 CRM Initial download to via middleware.

Installed Base –

Top Level ToolR/3 CRM Initial download via middleware.

Installed Base (As-Built) Manufacturing CRMOne time download and ongoing download via custom developed interface.

Installed Base Legacy CRMOne time extraction and load clean data via custom program.

Service Contracts R/3 CRM Automated initial download via custom program.

78

Sample Scope of Data Objects for Cutover (cont.)

Data ObjectCurrent SourceSystem

Target System Migration Method

Warranties R/3 CRMAutomated initial download via custom program. (Middleware should be the basis for the interface.)

Open Cases (incl. FSRs) Legacy CRM Automated initial download via custom program.

Closed Cases with DMRs Legacy CRM Manual data entry.

Historical Cases Legacy N/A No data migration required.

Open Quotations R/3 CRMManual data entry of open quotations into CRM service quotations.

Open Parts Orders R/3 CRMAutomated initial download and conversion via custom program of open parts order into CRM service orders.

Open Debit Memo

RequestsR/3 CRM

Manual data entry and conversion may be required due to changes in service product offerings and invoicing process.

79

Cutover Approach

• First pass: Frames the skeleton plan that is inserted in the project plan with dependencies

• Each cutover has objectives that put flesh on the skeleton based on progressive elaboration

• Trial cutovers progressively explore and discover the endpoint requirements for final cutover

• It is a case of “You don’t know what you don’t know when you start” For example: Number of plan line items grew from 80 250 for

final cutover as understanding grew

80

Trial Cutover Sequence — Planned

Aug Sept Oct Nov Dec Jan

Test Conversion Programs – ~75% success rate, small samples of data

~95% success rate -Training Sys – Master Data - conversion only – Ran middleware downloads

~99% success rate = Final Cutover – Timings – Performance Testing

Trial Cutover 1 (Q/A)

Trial Cutover 2

Trial Cutover 3

Final Cutover

8/20 9/6

9/17 10/19

10/22 11/16

11/19 1/6

81

Trial Cutover Sequence — Reality

• The planned sequences elongated due to issues, eventually running three in parallel

• This stretched resources to the utmost• Ultimately all parts of the cutover were tested multiple

times until the piece parts executed without defects• Ibase conversion was complicated by the introduction of

a new universal serial number • Contracts conversion ran very slowly due to variant

configuration copied from SAP R/3 and > 30 lines in the contract

• Added multiple parallel sessions to enhance performance

82

Importing Custom Code

• Package solution Project environment• Identify re-usable source code• Create transport requests in source system• Import requests into target system• Limitation — versions have to be compatible

If versions are not compatible, still use as reference• Benefit is speed, saves time• Perform functional test

83

Migrating Custom Code

• In an upgrade situation, development team must supervise

• Analyze What is obsolete? What is re-usable?

• Make a copy of the system• Apply the new version• Remove the obsolete code• Work over the re-usable code• Regression test

84

Performance Testing

• Objective To prove that the designed CRM hardware, software,

middleware, network, SAP R/3 and Portal solution will provide acceptable performance to support the business and be scalable for predicted growth

• Approach Develop test transaction sets based on “A day in the life”

around standard business processes Assume 80% of the work is based on 20% of the

business processes Determine volumes and create “virtual users” on the load

testing software application to simulate multiple users per test PC

85

Performance Testing (cont.)

• Tools HP Load Runner IBM® Rational® Performance Testing solutions, Rational

Performance Tester Extension for SAP Solutions “Load-Injector” servers connected to the WAN in the remote

geographical regions containing virtual users and execution scripts 1 Gig RAM, P4, Intel Core Dual Processors 1 Virtual User is equal to approx. 10 normal users

Windows NT boxes loaded with ADoW in remote geographical regions communicating to a centrally located box, monitoring and reducing “trips” between boxes

86

Performance Testing (cont.)

• ADoW GUI doesn’t usually have a response time problem Portal usually does have a response time problem SAP Application Delivery over the WAN Software

Dramatically improves portal performance over the WAN Calculate a four to six times improvement with ADoW

Six seconds with ADoW would be 24 to 36 seconds without Our portal applications response time was 4.1 seconds or less

in Asia from the US ADoW provides an 8:1 reduction in traffic over the WAN

87

Performance Testing the CRM Solution

• End-to-end tests of all the parts connected by middleware SAP R/3 CPU scalability: Max utilization >60% @ 300% load SAP CRM CPU scalability: Show excess utilization capacity SAP R/3 Main Memory scalability: Support 200% load SAP CRM Memory scalability: 20%of memory paged

out @ 200% Workload sharing across servers: Show equal distribution End-user response time: Target < 6 seconds

• Considerations Must have the core transactions and middleware working Can make exceptions for low volume transactions or processes Concentrate on 80/20 rule and execute all processes in parallel

88

Sample Plan vs. Tested Results

• “Big Bang” test from six regions: 200% of planned load US, Singapore, Taiwan, Japan, China, Korea Injected load from same regions over the WAN

0100020003000400050006000700080009000

Iterations

ServiceCase

ReleaseCase

ScheduleRPA

FSR SpareParts

Business Process

Plan Transactions v. TestedBig Bang test, achieved load

2008 estimated transaction load

89

IT Department Touch-Points

• BASIS Systems and middleware System performance

• Security Access and authorizations

• Systems and version management SAP R/3 SAP CRM Portal Backup and recovery

• Transport management Approvals Sarbanes-Oxley (SOX)

• Desk-top services

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91

Change Management

• Significance • Deliverables• Managing stakeholder buy-in• Readiness assessment• Communications

92

Significance of Change Management

• A CRM system implementation is seldom, if ever, a pure technology swap (i.e., legacy out, SAP CRM in)

• The capabilities rarely stand still and are usually the drivers for the implementation

• New capability gives rise to policy, process, procedural, job content and required behavioral change for the stakeholders

• The capture of benefits associated with a CRM implementation relies on adoption of the required behavioral changes

• Change management is an essential CRM critical success factor, and yet it is often marginalized or ignored

93

The Mission

• A CRM Implementation is always undertaken to achieve an ROI

• ROI is gained by real people adopting the new system and processes and using it as intended

• Training is not enough in itself• Changing behavior is critical to achieving ROI • The focus of change management is changing behavior

94

Change Management Deliverables

• Organizational risk and readiness assessment• Change strategy• Stakeholder analysis• Leadership action plan• Global communications strategy and plan• Mobilize and alignment plan• Job impact assessment• Work force transition plan• Customer impact assessment• Communications materials• Organizational impact assessment

95

Change Management Methodology

Mobilize & Align

Leaders

Design ChangeStrategy

SupportWorkforce

AlignOrganization

Engage &Communicate with

Stakeholders

Articulate ABusiness Case

& Vision forChange

AssessOrganizational

Risk &Readiness

BearingPoint’s Change Management Approach

Focuses on UserAdoption and

Sustainable Change

Mobilize & Align

Leaders

Design ChangeStrategy

SupportWorkforce

AlignOrganization

Engage &Communicate with

Stakeholders

Articulate ABusiness Case

& Vision forChange

AssessOrganizational

Risk &Readiness

BearingPoint’s Change Management Approach

Focuses on UserAdoption and

Sustainable Change

• Assess organizational risk and readiness• Articulate vision for change• Design change strategy• Mobilize and align leaders• Align organization• Support the workforce• Engage and communicate

with stakeholders

96

Managing Stakeholder Buy-In

• You saw earlier the importance of the Stakeholder • Stakeholders come in all shapes and sizes: executives,

management, users, internal and external customers• They all share a common trait expressed as “WIIFM”

What is in it for me?• Find the magic formula and they will buy-in

97

Managing Stakeholder Buy-In (cont.)

• Executives and management $$$$$, corporate goals, personal goals

• End users Job satisfaction — Will it make my job easier? Why am I doing

this? Are you nuts? • Internal and external customers

Customer Satisfaction — How will my life improve because of what you are doing?

• You have to be able to satisfactorily answer the questions, and provide constant communications and feedback reinforcing the message

98

The Role of Change Agents

• Someone who affects the acceptance of change brought about by the new system and process in a positive or negative way

• Identify and create change agents, persons of influence who will help implement the new system

• Try to get the “water-cooler influencers” on your side, especially if they have a reputation of resistance to change Converts are worth their weight in gold

• The very same change agents can be Subject Matter Experts (SMEs) who will also double as trainers in a Train-the- Trainer strategy

99

Organizational Risk and Readiness Assessment

• How ready is the organization to receive the proposed systems and operational solution?

• Are they aware of the impact on their jobs?• Are they aware of the changes in policy, process,

and procedure?• Do they understand what is being done?• What are their reactions to the changes?

100

Job Impact Analysis

• Analysis documenting the changes in affected roles and responsibilities.

• The existing job specification is the start-point.• What job specification? • Don’t forget policy, process and procedure in addition to

system related actions.• There may potential OSHA requirements.

101

Customer Impact Analysis

• Determine the impacts to the customer at the touch-points. Is the delivery process changing? What are the required

different behaviors? For example: You now must use a unique serial number to

open a case.• Tell them what you are doing and what might happen so

they are not blind-sided, keep the complaints down. • What reactions will you get from customer, and your

people will have to explain? “So now you have this new system your costs will go down,

how about my contract price being reduced?”

102102



103

Training

• Planning considerations• Challenges • Instructor-led training• Web-based training• Curriculum development options

104

Planning Considerations

• Who needs to be trained? What are the job roles that are affected?

• What needs to be trained? What are the program’s learning objectives? What processes need to be trained by job role? What are the user interfaces involved? How will you measure based on learning objectives? How will you report progress? How will you identify learning gaps? How will you close the gaps? Refresher training?

105

Planning Considerations — Where, When?

• Where are they located? Are they remote? Can they get to a central location?

• When do we need to do it? How long will it take to train based on the delivery method? When will the system be ready for screen prints, etc.?

106

Choice of User Interface

• There are a variety of technology-based solutions available to support a business process in SAP

• The decision regarding the best fit is not always about functionality; the end user has to be trained

• To present a number of user interfaces would be confusing and also greatly increase the training workload at all levels

• The choice of user interfaces was the subject of a business decisions document Recommendation shown on the next slide

107

Selection of User Interfaces

SL. No Role / Functions Proposed SAP User Interface

1. Back Office Functions

Installed Base Management

Service Quotations

Service Contracts Management

Primary interface is SAP GUI.

Secondary interface can be Enterprise Portals using CRM Business Packages

2. Billing & Invoicing Primary interface is SAP GUI.

Secondary interface can be Enterprise Portals using CRM Business Packages

3. Field Resources Field Service Rep Portal (custom on Enterprise Portal)

4. Field Resources – Mobile Blackberry – Antenna Solution

5. Interaction Center Interaction Center – WebClient within Enterprise Portal. This will be transparent to user since it will reside in the Enterprise Portal.

6. Service Resource Planners Resource Planning Application within Enterprise Portal. This will be transparent to the Resource Planner since it will reside in the Enterprise Portal.

7. Service Managers Enterprise Portals using CRM Business Packages

8. BW Reporting & Analytics Web Reporting

108

Challenges Faced in Training Development

• The schedule stays the same and system delivery is late, which pushes training development

• Enhancements are often late, screen prints are always last minute updates

• Knowledge transfer What the system does and why, has to go from the SME, to the

training curriculum developer • Where they are different, the learning curve can be very

painful and demands significant time of business people

109

Instructor-Led Training

Pros• Interactive, allows questions• More satisfying for the student• Allows trainer to monitor better• Allows customization• Is more effective than WBT• Allows change aspects beyond

the materials to be discussed• In the language of the trainee

Cons• Must have trainers trained• Preparation time is the same

for every trainer• Takes three sessions to get

familiar and comfortable with the material

• Logistically, magnitudes greater to implement than WBT

• Balance lecture, demo, and hands-on

• No more than 15 – 20 minutes of lecture or lose the audience

110

Web-Based Training

Pros• No train-the-trainer required• Reaches a wider, dispersed

audience• Doesn’t require group

scheduling unless via a WebEx• Allows the student to train in

off-peak times, reduces conflict with the ongoing job

Cons• Can only sustain interest in 30

minute bites• Usually in English with local

sub-titles• More expensive to prepare than

trainer slide materials

111

Curriculum Development Options

Onshore Development• Cost

Higher initial, saves in rework

• Ease Facilitated knowledge transfer Fewer communication problems Option to have the business

people develop the curriculum with expert guidance

Less rework

• Production Do it offshore

Offshore Development• Cost

Lower More rework/cycles

• Ease Travel required for knowledge

transfer More communication problems Rework and cycles higher

• Production Lowest cost Easy to manage

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Resources

• Project Management Institute www.PMI.org

• SAP Safeguarding — Reduce implementation or upgrade risk and cost and ensure proper performance www.service.sap.com/safeguarding

• SAP MaxAttention — comprehensive support www.service.sap.com/MaxAttention

• SAP Solution Manager www.sap.com/services/newsevents/press.epx?pressid=6549 www.sap.com/platform/netweaver/components/

solutionmanager/index.epx

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7 Key Points to Take Home

• Don’t forget that today’s business has to be supported tomorrow — define ahead of need

• Conduct solution reviews earlier than you are told you can

• If you are going to incur a delay, take it when you first detect it, waiting doesn’t lessen it, it creates more work

• Rework will kill your schedule, use the mitigation • Plan for the multi-tasking and definition that users have

to do, it can delay your project • Cutover always takes much longer than you think • Work smarter not harder

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Your Turn!

How to contact me: Peter [email protected]

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