Sap implementation

Basics about SAP implementation that should be considered while planning the roadmap.

1. SAP Implementation
Basic aspect of the implementation

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SAP implementations are not easy though
they are not difficult!
SAP products are around for many years and most popular for quite some
time with more than 100,000 installations worldwide in almost every business
and industry.
SAP as product has evolved over years adding a large variety of solutions and
processes addressing almost every process in every business and have
enormous experience in successfully implementing the solutions in various
business domains.
Similarly most businesses have evolved and reengineered adapting best
practices and practices apart from having globally experienced talent.
However, even after proven performance and collective experience, many new
clients initiating the implementation of the product experiences the similar
difficulties and complexities that were faced by the early implementations.
Of course ever increasing product and business complexities have fuelled it
further. In any case a planned approach is essential for a successful
implementation.
Different organizations follow different approaches thought the basic project
management remains same and thus the end results vary, sometimes turning
unfavorable. Individual organization’s culture, processes and users are
important factors that make a difference here.

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The modular design allows clients to select the
components as per business requirement and budget
Started as solution to manage the core business requirements, SAP now has a
wide suit of sub solutions catering to different business requirements. It has
components to address different parts of business like core manufacturing to
complex supply chain management to deep customer relations management.
There are also Industry solutions that cater to specific industry requirement
like Oil & Gas, Utility, etc
However every business may not need all the solutions due to nature and size
of the business. The modular design allows clients to select the required
solution as per business need helping manage the complexity and cost.
Clients also can first implement one components which in most cases will be
core ERP first followed by the extension solutions like SCM and BI. It helps
easier change management, incremental user acceptance and staggered
investment.
All different solutions can easily communicate with each other even if
implemented in phases due to what is called as “seamless integration” thus
avoiding necessity of complex middleware or interfaces.
The solutions can also communicate with other / non SAP solutions but may
require middleware and interfaces.

4. 4
Use the standard functionality to best
possible extend.
The solution processes in the product are result of basic design which is
evolved over years, input from experts from different domains across the
world and SAP’s experience with large number of customers.
Unless you are in a very different and new type of business, most of the
requirements can be mapped in the many options of standard processes
offered by the solution.
Try your best to utilize the standard functionality offered as it helps you with
proven process and reduces the risk of failure and enables easier maintenance
in future.
Align business process to the solution process than customizing the solution to
meet business process which was designed in other environment.
(refer slide 3)
In fact it is advisable to (re) design the business processes before designing the
solution processes. One time effort during implementation helps easier user
training and transaction operations in addition to easier application
maintenance and lower maintenance cost. It can also help improve the
business as the solution processes are claimed as “Best Practices”.

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Build logic and automation in system so as to
improve the Speed, Productivity and Cost.
Business processes are often created considering the existing or planned
system support. Adapting the same processes in new ERP environment will
unnecessarily complicate the solution and probably perform some non value
added processes. Recreate or redesign the business processes knowing the new
solution capabilities to make it leaner and fully value added.
E.g.
An organization had General Manager approval as mandatory step in the
business process. It was necessary as management and budget control in the
traditional environment with un-integrated legacy systems and lack of business
logic driven system processes.
In SAP (or possibly in other ERP) environment the budget limits and levels can
be set up in the system which automatically runs the checks as desired by the
logic, every time the transaction is performed. You have to build them while
designing the solution, once. In live operations, the physical signature or system
intervention from the respective General Manager is not required as system is
now managing it on behalf of the business.
Thus a manual and expensive activity can be eliminated not only reducing the
cost but speeding up the process and improving the organizational
productivity.

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Fine balance the customized developments and
implementation of additional components
In most implementation, clients find that the solution being implemented is
not meeting some key business requirement either as complete gap or a
partial one. Its possible that another solution from the product suite like SCM
is capable of managing the requirement but is not in scope or planned in later
phase.
First option should be check if business can manage the respective
requirement either in legacy system or manually.
Next option is to implement the solution component that is capable of
managing the requirement. E.g. Capacity driven scheduling is possible in
SCM solution. But the challenge comes if it is not in scope or planned in later
phase.
In such case the process can be created with customized development and
make it run in collaboration with the standard process. This not addresses
key business requirement but keeps the cost under control. The solution can
deactivated once the new solution component is implemented in future or one
may run it as it is.
Please note that this is possible only where the gap is limited to a part of
process or a simple complete process. It will very expensive option otherwise.

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Everyone in the team need not know
everything
It is common to expect that every project team member must be expert in
various aspect of the implementation journey like Project management,
Domain knowledge and Solution expertise.
Like any other project team, the respective member must be expert in her
area. It may be good to know more in other area and will surely help the
project, they cant be expert in everything.
E.g.
Many times a project manager is expected to be expert in the domain or know
the solution. Project manager must be expert in handling the project task and
know how to steer the project till end without com promising solution and
budgets. Similarly, domain experts must know the practices and processes in
the given domain and how best they can be designed.
Expecting project manager to all solution components or expecting domain
expert to know how to create risk plan will stress the team unnecessary and
probably increase the cost.
See next slide describing typical team structure and characteristics.

8. 8
Typical team structure and key
characteristics
Steering committee
Project Management
Solution Architects and
Subject Matter experts
Consultants and team
members
Strategic support
Budgets
Business decisions
Stake holder management
Budget and schedule governance
Scope and requirements
Business process requirements
Solution mapping and design
Integration
Domain knowledge
Data design
Solution configuration and testing
Quality and time schedules
User training
Data migration and user support

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Change management is key success factor
SAP implementation is not a “software installation” where respective experts
design, develop and run the application. It is a business tool that will be used
by everyone in the business process chain.
It is different than customized development where the solution (software) is
developed as per the processes leaving the process as it is. It does not enforce
any change to user except getting familiar with a new tool operation.
It not only impacts the transaction users but also the managers who may not
operate the system themselves but are impacted as the application now runs
as per the decisions and business logics given by them which are “woven” in
the solution.
It is tightly integrated solution where each process drives or impacts many
other processes in the application. Everyone must work with discipline like
what is required by each member of an excellent performing band.
The implementation thus requires parallel and planned effort to
communicate, train and guide every stakeholder and not just limit the activity
to the implementation team members.

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Summary
Redesign the business processes to take full advantage of the
solution.
Try best to utilize the standard functionality before deciding on
customized developments.
Keep it simple. Start simple and then grow.
Select best resources to work on the project. They are key to a
rewarding implementation.
Make the team capable and responsible to meet the process decisions
and time schedules requirements.
Everyone doesn’t need to be expert in project management and
domain knowledge. Different team members have different roles and
hence differ in the expertise required.
Change management is important and necessary.

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Thank you.
Sanjay Vispute

IT operations, SAP projects and
solutions.