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The Dos and Don'ts in SAP Implementations(or, What Is SAP and How To Get IT Right)
15-02-2011, Stoke
Slide 2 BCS Noth Staffordshire - What Is SAP?
SAP ERP Implementation
Introduction
What is SAP ERP
� System Landscape and Architecture
� Integrated Processes
� Standard Functionality, Customisation and Extensions
SAP Implementation
� Misconceptions
� Dos and Don’ts
Q&A
Agenda
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Process-oriented information concepts
International SAP-consultancy and development
Services in the SAP-environment
Foundation: April, 1996
Business Areas� ERP � Business Intelligence� Business Integration
Affiliates� PIKON Deutschland AG� PIKON Belgium NV� PIKON UK Ltd.
Preferred Supplier of SAP AGSAP Services PartnerSAP Special Expertise Partner
PIKON International Consulting Group
Slide 7 BCS Noth Staffordshire - What Is SAP?
Who is and what SAP?
The company � SAP was founded in 1972 by four former IBM employees
� SAP is today the world’s largest enterprise software company, the biggest software
company in Europe and one of the biggest software companies in the world.
� Corporate headquarters: Walldorf, Germany
� Size (2010): 12.5 billion EUR revenue, 1.8 billion EUR profit, 53,500 employees in
over 50 countries.
Main Products� SAP ERP (formerly known as R/3)
� SAP Business Intelligence (Business Warehouse & SAP BusinessObjects portfolio)
� SAP Business Suite (incl. ERP, CRM, SCM, SRM, PLM)
� SAP Netweaver
� SAP BusinessOne (SME solution)
� SAP Business ByDesign (software as a service offering)
Slide 8 BCS Noth Staffordshire - What Is SAP?
What is an ERP system?
ERP (Enterprise Resource Planning)� Acronym first employed by the Gartner Group in 1990 (as an extension of MRP)
� Integrates internal and external information with regards to the company’s business processes across the whole organisation.
ERP systems� Automate the information integration
� With the purpose to facilitate the flow of information between all business functions along the company’s processes inside the organisation and to enable the connectionto outside stakeholders.
� Pre mid 1990s: mainframe architecture
� Since mid 1990: client-server architecture
� Typical characteristics� Integrated, real time operation
� One common database
� Consistent look and feel
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SAP ERP – the Product
SAP ERP� SAP’s flagship product
� Targets the business software requirements of mid-size to large organisations in all
industries and sectors.
� Worldwide approx. 100.000 customers and 12 million users
� World market share in 2005: 28.7% (Gartner Dataquest)
� Probably the most comprehensive and sophisticated ERP solution on the market
� Covers all typical organisational functions
� Processes and functions are customisable through setting of parameters on the
database (approx. 20,000 tables).
� Standard functionality can also be enhanced with new code at predefined points in
the code of standard programs (“customer exits”, “user exits”, “business add-ins”,
etc.)
� SAP ERP comes with its own development environment (for enhancements or own
(add-on) developments.
� Source code is fully supplied by SAP.
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SAP ERP Modules
SAP ERP includes several modules, which are similar to the typical departmental structure of an organisation.
Accounting� FI – Financial Accounting (G/L, AR, AP etc.)
� CO – Management Accounting / Controlling
� IM – Investment Management
� PS – Project System� …
Logistics (operations)� SD – Sales and Distribution� MM – Materials Management
� PP – Production Planning
� PM – Plant Maintenance
� CS – Customer Service
� QM – Quality Management� …
Human Resources (Personnel, Time, Payroll, …)Cross-component
The modules are all fully (real-time) integrated but can be activated separately over time.
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Customers
A process-oriented ERP-introduction makes sure that all business processes are fully supported.
Suppliers
Debitors
Vendors
SAP ERP – Integrated Processes
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SAP ERP - History
History� 1973: SAP’s program RF (later called R/1)
� R/2 - mainframe-based “ERP” system
� SAP ERP
� 1993: “R/3”
� 2001: “mySAP ERP”
� 2007: “SAP ERP”
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SAP ERP - Architecture
Three-tier client-server architecture� Database server – data storage (relational SQL database, e.g. Oracle, MS SQL-
Server, DB2, Informix etc.)
� Application server – business application logic (SAP’s programming language
ABAP/4, runtime environment “SAP Kernel” in C)
� Presentation layer (client) – data presentation and input
Recommended system landscape� Development system (only development and customizing)
� Test system (testing and QA)
� Productive system
� All linked by the “transport system” to ensure consistent and controlled implementation
of changes
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Common Misconceptions (1)
“SAP projects are IT projects”: No, it’s a joint task of business and IT. The business needs to take ownership and management needs to support the project.
“SAP projects are all about customising and development”: Forget customising. Customizing is easy. SAP Projects are all about proper (reliable and stable) concepts and good change management.
“Pre-configured systems are much better and cheaper than starting from scratch”: Forget pre-configured systems. Customising is based on organizational data. These are unique for your company, so you need to start from scratch. Better than pre-configured systems are process templates which describe how industry-specific processes can be implemented in SAP. But keep in mind: Using pre-configured, state-of-the-art processes does not make you better in comparison to your competitors. No problem for standard processes and financials. But for the processes in which you have competitive advantages, you might want a tailor-made solution (within the SAP standard).
Slide 17 BCS Noth Staffordshire - What Is SAP?
Common Misconceptions (2)
“Can’t have the tail wagging the dog”: Sooner or later, the business will ask if
they should adopt their processes to the way SAP works. The answer is: Yes.
By choosing to work with standard software an organisation chooses to adapt
themselves to some extent to the software. Do not modify the SAP standard
unless you must. Even with modifications you will never achieve the comfort an
individual solution, but you will lose the advantages of standard software. You
will be trapped in the middle.
“Data takeover is an easy technical exercise”: Do not underestimate the
task. It is also necessary to cleanse data which is not possible without the
business’ input. Start early with your data migration concept.
“All users have to be trained for weeks before go-live”: User training is
good, but training on the job is very good. With a tight budget provide basic
training to all users but rather spend more on after go-live support.
Slide 18 BCS Noth Staffordshire - What Is SAP?
Common Misconceptions (3)
“By using ERP software we will standardise our processes automatically”:Usually IT does not have the power (and sometimes knowledge of the
environment) to force business units to use standardised processes. An ERP
system enables process standardisation but cannot guarantee it. The first step
in process standardisation has to be made by the business. To ensure the
maximum standardisation possible through IT, use the Global & Local Blueprint
Concept.
“Detailed system documentation is too expensive”: Good documentation
does not only describe what has been done (that anyone can see in the system)
but much more why it was done in this way. Otherwise you’ll spend the money
twice over as maintenance and support becomes much more expensive.
Slide 20 BCS Noth Staffordshire - What Is SAP?
Project Team & Project Goals
Dos – Project Team� Usually organisations do not have enough internal IT resources with sufficient
capacity and expert knowledge to implement SAP EPR on their own, hence the early
selection of an appropriate consulting partner is essential.
� Implement a key user concept and empower the key users to make binding
decisions.
� Define interested employees, who know the organisation’s processes as key users.
Usually managers are not well-suited as they have other priorities. Don’t forget to
backfill as key users will at times not be available to do their normal job.
� Ensure the project team (internal and external) remains stable throughout the project.
Dos – Project Goals� Define and communicate clear, realistic and measurable project goals.
� Get management buy-in and support.
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Project Management
Dos – Project Management� Define a clear project organisation that involves top management (steering
committee)
� Define and communicate clear roles and responsibilities (also for stakeholders)
� Have a project plan with clear milestones and deliverables in place and ensure all
changes are communicated within the team.
� Do not overcomplicate your project plan.
� Define priorities.
� Focus on core, business critical functions and processes.
� Create a prototype as early as possible – enables key users to understand the
system better.
� Allow for contingencies (min. 10%)
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design build training test go livesupportoptimise
question list know-how
blueprint
training documentsconfigured system
documentation configured systemconverted dataprograms
functional designblueprint
trained usersuser documentations
tested system
operative system
configured systemtest processes
tested systemtest documentation
INPUT
OUTPUT
Project Management: Planning, Communication, Evaluation
Project Method: Project Phases
Slide 23 BCS Noth Staffordshire - What Is SAP?
Project Communication
Dos – Communication� Communication is essential: within the project team, towards the organisation and
management and also to outside stakeholders.
� Have regular meeting with management. Inform them of progress and listen to their
concerns.
� SAP implementations bring changes, and people do not like changes. Whatever you
have estimated for the required project communication, multiply it by 10.
� Do not forget stakeholders in your communication concept (customers, vendors etc.)
� Good project communication does not only transport information, it also considers
fears and emotions.
Slide 24 BCS Noth Staffordshire - What Is SAP?
Key success factors
Project Success
Clear Goals
Clear PlansClear Communication
Clear Commitment
Slide 25 BCS Noth Staffordshire - What Is SAP?
Thank you for your attention!
Contact: Timo Burkard
Phone: +44 1332 63 8070
Mobile: +44 7534 506132
eMail: [email protected]
Web: http://www.pikon.com