SAP Rollout Project
Iskustva u vodenju globalnog projekta
Opatija, June 4, 2002
mr.sc Mirko Slovjak
Project Approach
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n
As a global company, we have a critical mission to undertake: we must successfully meet the rising challenges and complexities of business world. To get there, we need an integrated system that delivers the right blend of functionality, flexibility and technology. Moreover , we need a comprehensive solution that optimises and supports all of our global business processes. To achieve this goal we need: • a reliable strategy to analyse our business operations and new opportunities and • an integrated information system
Project approach
Case studies show that most of the successful SAP implementations are business-driven from start to end
Differences between IT-driven and business-driven SAP implementations
IT-driven implementations IT-driven implementations
•• Replacement of old IT systems Replacement of old IT systems that are difficult to maintain and that are difficult to maintain and support support •• Increase accuracy of data Increase accuracy of data •• SAP regarded as an IT solution SAP regarded as an IT solution to all business problems to all business problems
Business-driven implementations Business-driven implementations
•• Reengineering of business Reengineering of business processes in alignment with processes in alignment with corporate strategy corporate strategy Rationale for using SAP •• SAP regarded as an enabler to SAP regarded as an enabler to change the way the business is change the way the business is run run •• IT structure and business IT structure and business processes are aligned processes are aligned •• •• CEO CEO Senior management, including Senior management, including IT manager IT manager
•• ••
CIO CIO IT department IT department
•• Today’s IT users define system Today’s IT users define system requirements and architecture requirements and architecture
Key decision makers during implementation
•• Requirements based on future Requirements based on future business needs business needs
Successful companies realise from the start the importance of business-driven SAP Successful companies realise from the start the importance of business-driven SAP implementation and secure that the business focus is never lost throughout the process. implementation and secure that the business focus is never lost throughout the process.
Project approach
n
Complexity drivers for multi-site, multi-national SAP implementations
Complexity drivers Complexity drivers
••Global business issues Global business issues
– Global data standards – Global data standards – Global/standardised processes – Global/standardised processes – Global products – Global products
Multi-site, multi-national SAP implementations
••Geography and cultural issues Geography and cultural issues
– Cultural differences between international sites – Cultural differences between international sites – Communication challenges and local acceptance (buy-in) – Communication challenges and local acceptance (buy-in)
••International team structure and project organisation International team structure and project organisation
– Internationally balanced teams – Internationally balanced teams – Distributed support over regions – Distributed support over regions – Coordination of rollouts in multiple countries – Coordination of rollouts in multiple countries
••Diversity within regional IT systems in use Diversity within regional IT systems in use
– More complex configuration management – More complex configuration management – Variations in regional IT infrastructures – Variations in regional IT infrastructures – Difficult definition process for standardisation through multiple – Difficult definition process for standardisation through multiple
viewpoints viewpoints
The complexity increases significantly for global SAP implementations --putting many potential The complexity increases significantly for global SAP implementations putting many potential pitfalls and risks on the map to project success. pitfalls and risks on the map to project success.
Project approach
n
Characteristics of Global ASAP methodology
Project complexity
Global methodology
Global ASAP Global ASAP
Local methodology
ASAP ASAP
•• Clear local focus of SAP Clear local focus of SAP implementation implementation •• Process optimisation on local Process optimisation on local level level •• Benefits on local level Benefits on local level •• No business process No business process reengineering reengineering
•• Provides Global Strategy definition before starting Provides Global Strategy definition before starting implementation project implementation project •• Approach driven by global business process Approach driven by global business process orientation orientation •• Opportunity to integrate business reengineering Opportunity to integrate business reengineering and value chain improvements and value chain improvements •• Opportunity to align business processes across Opportunity to align business processes across international borders and realisation of significant international borders and realisation of significant cost reductions and enterprise-wide benefits cost reductions and enterprise-wide benefits •• Opportunity for SAP programs across all enterprise Opportunity for SAP programs across all enterprise sites, product lines and international divisions sites, product lines and international divisions •• Ideally fit for big multi-national enterprises to Ideally fit for big multi-national enterprises to prepare for the challenges of global markets prepare for the challenges of global markets
Size of company
Global ASAP is especially designed to fit the needs of multi-site, multi-national enterprises and to Global ASAP is especially designed to fit the needs of multi-site, multi-national enterprises and to help them implement global business operations, based on SAP. help them implement global business operations, based on SAP.
Global ASAP
Global ASAP methodology will not substitute experience and necessary skills, such as: • Business acumen • Project management • Business process know-how • SAP know-how • IT architecture know-how
Global ASAP
Roll Out ASAP Roadmap
Global ASAP
1
Project Set-up
2
Business Blueprint
3
Realisation
4
Maintenance & Support
Where we want to go
How to get there
Translate business processes into logical operation of R/3 functionality
Customer Competence Centre
Global ASAP Phases
Global Business Blueprint •• •• Prepare template Prepare template Define global Define global business process business process models models •• Develop global Develop global Business Business Blueprint Blueprint Global Maintenance and Support •• Support local sites, Support local sites, subsidiaries subsidiaries •• Perform post-rollout Perform post-rollout activities activities •• Ensure continuous Ensure continuous improvements improvements
Global Pro ject Project SetSet-Up •• Define global Define global strategy strategy •• Set up global Set up global template project template project
Global Realisation •• Configure and Configure and confirm template confirm template •• Define global Define global system system management management •• Perform final Perform final integration test integration test •• Execute rollout Execute rollout
Activities Activities
Project Management Change Management (Training, communication, team building, motivation, and so on) Quality Assurance
Project Set-up activities
Define global strategy •• Opportunity and Opportunity and readiness assessment readiness assessment •• Strategy Study Strategy Study •• Risk Assessment Risk Assessment Prepare project project (template/rollout strategy) •• Detailed project Detailed project planning planning •• Project procedures Project procedures and standards and standards •• CCC implementation CCC implementation strategy strategy •• Sign-off of high-level Sign-off of high-level project plan project plan
Set up global template project •• Global template project Global template project charter charter •• Project scope Project scope •• Project plan Project plan •• Project team Project team •• Template-specific Template-specific standards and standards and procedures procedures •• Review and sign-off Review and sign-off of Project Charter of Project Charter
Activities Activities
•• Business Case Business Case •• Review and sign-off Review and sign-off of Global Strategy of Global Strategy
Strategy Study
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Key deliverables of Strategy Study
Enterprise Scope Enterprise Scope
•• Scope of sites, countries Scope of sites, countries •• Scope of processes Scope of processes •• Information and process flows Information and process flows between enterprises between enterprises •• Graphical representations of Graphical representations of each organisation and mapping each organisation and mapping to SAP organisational hierarchy to SAP organisational hierarchy •• Listing of all high-level Listing of all high-level functional gaps and potential functional gaps and potential solutions solutions •• Policy statement on how gaps Policy statement on how gaps are to be resolved are to be resolved
Global Strategy for Global Strategy for System Architecture System Architecture
•• IT-system topology IT-system topology •• Network overview Network overview •• Instances: number, locations, Instances: number, locations, relationship, and so on relationship, and so on •• Analyses of distributed Analyses of distributed application alternatives application alternatives
Implementation Approach Implementation Approach
•• Implementation approach Implementation approach •• Outline of configuration strategy Outline of configuration strategy (how, where, configuration (how, where, configuration access, and so on) access, and so on) •• Outline of development strategy Outline of development strategy (how, where, development (how, where, development access, and so on) access, and so on) •• Overview of rollout strategy Overview of rollout strategy •• Outline of CCC concept Outline of CCC concept
Content Content
Project Management Project Management Approach Approach Project Project governance governance
•• Overview on overall Project Overview on overall Project Management Approach Management Approach – Organisation structure – Organisation structure – Roles & Resposibilities – Roles & Resposibilities
Change Management Change Management
•• High-level Change High-level Change Management Strategy Management Strategy •• High-level training strategy High-level training strategy
Business Expectation
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Enabling better PLIVA position To build an Integrated IS on group level To improve communication between PLIVA’s company Real time and standardise reporting system To standardise and optimise business processes To increase level of efficiency To improve customer service Perform C&V activities according the Project Scope
Project Benefits
n
Cross application
• Accuracy of data • Cross company data availability • Elimination of double work processes
n
Finance & Controlling
• Accurate Cash Management • Group credit limits monitoring • Shortened period of reporting
n
Sales & Distribution
• Increased inventory turnover • Reduction of Customer complaints • Better stock controlling and sales forecasting
Project Benefits
n
Product Supply
• Increased inventory turnover • Reduced planning cycles • Reduction of cycle time • Shortened order availability check
n
Quality Assurance
• Decreased GMP deficiencies • Standardisation of QA data, documents and
processes
Project Assumption
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n n n n n
Key team members must be full-time on the project Scope must be controlled Where possible existing solution in PLIVA Zagreb will be sought Business change will be driven by SAP Complexity must be kept low Identification of master data must conform to global standard Team members are empowered to make decisions Core team will work closely with Country teams Organisational structure will be frozen Standard reporting will be utilised where possible Top management involvement and quick decisions making process
Project Organisation
Project Sponsor
Country Project Sponsor Country SC Project Assistant Project Manager Business Process Controlers Country Projet Sponsor Country SC Country team Brno Country Project Manager SAP Integration Manager BPM-FI; Internal Consultant-FI BPM-CO; Inte. Consultant-CO BPM-SD; Inte. Consultant-SD BPM-MM; Inte. Consultant-MM BPM-PP; Inte. Consultant-PP BPM-QM; Inte. Consultant-QM Change Management Manager C&V Manager
Business Specialist External Consultants
Implementation Management Team
Country team Krakow Country Project Manager SAP Cooridinators BPM - FI BPM - CO BPM - SD BPM - MM BPM- PP-PI BPM - QM Change Management Manager C&V Manager
Site Users External Consultant
Core team
SAP Cooridinators BPM-FI BPM - CO BPM - SD BPM - MM BPM - PP-PI BPM - QM Change Management Manager C&V Manager
Site Users External Consultants
Integration team FI team CO team SD team MM team PP-PI team QM team Change Management team C&V team
- End User Support - Telecommunication
- BC - ABAP - Telecommunication
- End User Support - Telecommunication
IT Support
Implementation Approach
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The term ”rollout project” refers to the process of repeated activation of one or more templates.
n
n
The main effort during the Business Blueprint phase will be develop global template It’s possible that some business processes will be optimised during the project, due to better practice either in PLIVA Krakow or PLIVA Lachema
n
One of the areas in which there can be no SAP standard is the motivation for collaboration between local and global levels
Implementation Approach
Global
Template
Local Requirements
Documentation
Country Versions
Local developments
IMG structures and settings Global Developments
Master Data documents
Local processes
Organizational structure
Global and integrated processes
Implementation Approach
n
Global – A process is global when it is integrated throughout the enterprise Standard – A process is standardised if it must be executed in the same way in the enterprise Local – A process is local if it is not possible or it makes no sense to define as global or standardised
n
n
Timeline Impacts
Availibility of resources to support the Project activities
Number of sites and business units involved
Degree of readiness (preparation status, previous internal experience)
Duration of the SAP Roll-out Project
Complexity of extended requirements
Existing SAP installations (SAP know-how) Functional scope of implementation
Geographical scope
doc_131938388.pdf
Iskustva u vodenju globalnog projekta
Opatija, June 4, 2002
mr.sc Mirko Slovjak
Project Approach
n
n
n
n
As a global company, we have a critical mission to undertake: we must successfully meet the rising challenges and complexities of business world. To get there, we need an integrated system that delivers the right blend of functionality, flexibility and technology. Moreover , we need a comprehensive solution that optimises and supports all of our global business processes. To achieve this goal we need: • a reliable strategy to analyse our business operations and new opportunities and • an integrated information system
Project approach
Case studies show that most of the successful SAP implementations are business-driven from start to end
Differences between IT-driven and business-driven SAP implementations
IT-driven implementations IT-driven implementations
•• Replacement of old IT systems Replacement of old IT systems that are difficult to maintain and that are difficult to maintain and support support •• Increase accuracy of data Increase accuracy of data •• SAP regarded as an IT solution SAP regarded as an IT solution to all business problems to all business problems
Business-driven implementations Business-driven implementations
•• Reengineering of business Reengineering of business processes in alignment with processes in alignment with corporate strategy corporate strategy Rationale for using SAP •• SAP regarded as an enabler to SAP regarded as an enabler to change the way the business is change the way the business is run run •• IT structure and business IT structure and business processes are aligned processes are aligned •• •• CEO CEO Senior management, including Senior management, including IT manager IT manager
•• ••
CIO CIO IT department IT department
•• Today’s IT users define system Today’s IT users define system requirements and architecture requirements and architecture
Key decision makers during implementation
•• Requirements based on future Requirements based on future business needs business needs
Successful companies realise from the start the importance of business-driven SAP Successful companies realise from the start the importance of business-driven SAP implementation and secure that the business focus is never lost throughout the process. implementation and secure that the business focus is never lost throughout the process.
Project approach
n
Complexity drivers for multi-site, multi-national SAP implementations
Complexity drivers Complexity drivers
••Global business issues Global business issues
– Global data standards – Global data standards – Global/standardised processes – Global/standardised processes – Global products – Global products
Multi-site, multi-national SAP implementations
••Geography and cultural issues Geography and cultural issues
– Cultural differences between international sites – Cultural differences between international sites – Communication challenges and local acceptance (buy-in) – Communication challenges and local acceptance (buy-in)
••International team structure and project organisation International team structure and project organisation
– Internationally balanced teams – Internationally balanced teams – Distributed support over regions – Distributed support over regions – Coordination of rollouts in multiple countries – Coordination of rollouts in multiple countries
••Diversity within regional IT systems in use Diversity within regional IT systems in use
– More complex configuration management – More complex configuration management – Variations in regional IT infrastructures – Variations in regional IT infrastructures – Difficult definition process for standardisation through multiple – Difficult definition process for standardisation through multiple
viewpoints viewpoints
The complexity increases significantly for global SAP implementations --putting many potential The complexity increases significantly for global SAP implementations putting many potential pitfalls and risks on the map to project success. pitfalls and risks on the map to project success.
Project approach
n
Characteristics of Global ASAP methodology
Project complexity
Global methodology
Global ASAP Global ASAP
Local methodology
ASAP ASAP
•• Clear local focus of SAP Clear local focus of SAP implementation implementation •• Process optimisation on local Process optimisation on local level level •• Benefits on local level Benefits on local level •• No business process No business process reengineering reengineering
•• Provides Global Strategy definition before starting Provides Global Strategy definition before starting implementation project implementation project •• Approach driven by global business process Approach driven by global business process orientation orientation •• Opportunity to integrate business reengineering Opportunity to integrate business reengineering and value chain improvements and value chain improvements •• Opportunity to align business processes across Opportunity to align business processes across international borders and realisation of significant international borders and realisation of significant cost reductions and enterprise-wide benefits cost reductions and enterprise-wide benefits •• Opportunity for SAP programs across all enterprise Opportunity for SAP programs across all enterprise sites, product lines and international divisions sites, product lines and international divisions •• Ideally fit for big multi-national enterprises to Ideally fit for big multi-national enterprises to prepare for the challenges of global markets prepare for the challenges of global markets
Size of company
Global ASAP is especially designed to fit the needs of multi-site, multi-national enterprises and to Global ASAP is especially designed to fit the needs of multi-site, multi-national enterprises and to help them implement global business operations, based on SAP. help them implement global business operations, based on SAP.
Global ASAP
Global ASAP methodology will not substitute experience and necessary skills, such as: • Business acumen • Project management • Business process know-how • SAP know-how • IT architecture know-how
Global ASAP
Roll Out ASAP Roadmap
Global ASAP
1
Project Set-up
2
Business Blueprint
3
Realisation
4
Maintenance & Support
Where we want to go
How to get there
Translate business processes into logical operation of R/3 functionality
Customer Competence Centre
Global ASAP Phases
Global Business Blueprint •• •• Prepare template Prepare template Define global Define global business process business process models models •• Develop global Develop global Business Business Blueprint Blueprint Global Maintenance and Support •• Support local sites, Support local sites, subsidiaries subsidiaries •• Perform post-rollout Perform post-rollout activities activities •• Ensure continuous Ensure continuous improvements improvements
Global Pro ject Project SetSet-Up •• Define global Define global strategy strategy •• Set up global Set up global template project template project
Global Realisation •• Configure and Configure and confirm template confirm template •• Define global Define global system system management management •• Perform final Perform final integration test integration test •• Execute rollout Execute rollout
Activities Activities
Project Management Change Management (Training, communication, team building, motivation, and so on) Quality Assurance
Project Set-up activities
Define global strategy •• Opportunity and Opportunity and readiness assessment readiness assessment •• Strategy Study Strategy Study •• Risk Assessment Risk Assessment Prepare project project (template/rollout strategy) •• Detailed project Detailed project planning planning •• Project procedures Project procedures and standards and standards •• CCC implementation CCC implementation strategy strategy •• Sign-off of high-level Sign-off of high-level project plan project plan
Set up global template project •• Global template project Global template project charter charter •• Project scope Project scope •• Project plan Project plan •• Project team Project team •• Template-specific Template-specific standards and standards and procedures procedures •• Review and sign-off Review and sign-off of Project Charter of Project Charter
Activities Activities
•• Business Case Business Case •• Review and sign-off Review and sign-off of Global Strategy of Global Strategy
Strategy Study
n
Key deliverables of Strategy Study
Enterprise Scope Enterprise Scope
•• Scope of sites, countries Scope of sites, countries •• Scope of processes Scope of processes •• Information and process flows Information and process flows between enterprises between enterprises •• Graphical representations of Graphical representations of each organisation and mapping each organisation and mapping to SAP organisational hierarchy to SAP organisational hierarchy •• Listing of all high-level Listing of all high-level functional gaps and potential functional gaps and potential solutions solutions •• Policy statement on how gaps Policy statement on how gaps are to be resolved are to be resolved
Global Strategy for Global Strategy for System Architecture System Architecture
•• IT-system topology IT-system topology •• Network overview Network overview •• Instances: number, locations, Instances: number, locations, relationship, and so on relationship, and so on •• Analyses of distributed Analyses of distributed application alternatives application alternatives
Implementation Approach Implementation Approach
•• Implementation approach Implementation approach •• Outline of configuration strategy Outline of configuration strategy (how, where, configuration (how, where, configuration access, and so on) access, and so on) •• Outline of development strategy Outline of development strategy (how, where, development (how, where, development access, and so on) access, and so on) •• Overview of rollout strategy Overview of rollout strategy •• Outline of CCC concept Outline of CCC concept
Content Content
Project Management Project Management Approach Approach Project Project governance governance
•• Overview on overall Project Overview on overall Project Management Approach Management Approach – Organisation structure – Organisation structure – Roles & Resposibilities – Roles & Resposibilities
Change Management Change Management
•• High-level Change High-level Change Management Strategy Management Strategy •• High-level training strategy High-level training strategy
Business Expectation
n n n
n n
n n n
Enabling better PLIVA position To build an Integrated IS on group level To improve communication between PLIVA’s company Real time and standardise reporting system To standardise and optimise business processes To increase level of efficiency To improve customer service Perform C&V activities according the Project Scope
Project Benefits
n
Cross application
• Accuracy of data • Cross company data availability • Elimination of double work processes
n
Finance & Controlling
• Accurate Cash Management • Group credit limits monitoring • Shortened period of reporting
n
Sales & Distribution
• Increased inventory turnover • Reduction of Customer complaints • Better stock controlling and sales forecasting
Project Benefits
n
Product Supply
• Increased inventory turnover • Reduced planning cycles • Reduction of cycle time • Shortened order availability check
n
Quality Assurance
• Decreased GMP deficiencies • Standardisation of QA data, documents and
processes
Project Assumption
n n n
n n n
n n n n n
Key team members must be full-time on the project Scope must be controlled Where possible existing solution in PLIVA Zagreb will be sought Business change will be driven by SAP Complexity must be kept low Identification of master data must conform to global standard Team members are empowered to make decisions Core team will work closely with Country teams Organisational structure will be frozen Standard reporting will be utilised where possible Top management involvement and quick decisions making process
Project Organisation
Project Sponsor
Country Project Sponsor Country SC Project Assistant Project Manager Business Process Controlers Country Projet Sponsor Country SC Country team Brno Country Project Manager SAP Integration Manager BPM-FI; Internal Consultant-FI BPM-CO; Inte. Consultant-CO BPM-SD; Inte. Consultant-SD BPM-MM; Inte. Consultant-MM BPM-PP; Inte. Consultant-PP BPM-QM; Inte. Consultant-QM Change Management Manager C&V Manager
Business Specialist External Consultants
Implementation Management Team
Country team Krakow Country Project Manager SAP Cooridinators BPM - FI BPM - CO BPM - SD BPM - MM BPM- PP-PI BPM - QM Change Management Manager C&V Manager
Site Users External Consultant
Core team
SAP Cooridinators BPM-FI BPM - CO BPM - SD BPM - MM BPM - PP-PI BPM - QM Change Management Manager C&V Manager
Site Users External Consultants
Integration team FI team CO team SD team MM team PP-PI team QM team Change Management team C&V team
- End User Support - Telecommunication
- BC - ABAP - Telecommunication
- End User Support - Telecommunication
IT Support
Implementation Approach
n
The term ”rollout project” refers to the process of repeated activation of one or more templates.
n
n
The main effort during the Business Blueprint phase will be develop global template It’s possible that some business processes will be optimised during the project, due to better practice either in PLIVA Krakow or PLIVA Lachema
n
One of the areas in which there can be no SAP standard is the motivation for collaboration between local and global levels
Implementation Approach
Global
Template
Local Requirements
Documentation
Country Versions
Local developments
IMG structures and settings Global Developments
Master Data documents
Local processes
Organizational structure
Global and integrated processes
Implementation Approach
n
Global – A process is global when it is integrated throughout the enterprise Standard – A process is standardised if it must be executed in the same way in the enterprise Local – A process is local if it is not possible or it makes no sense to define as global or standardised
n
n
Timeline Impacts
Availibility of resources to support the Project activities
Number of sites and business units involved
Degree of readiness (preparation status, previous internal experience)
Duration of the SAP Roll-out Project
Complexity of extended requirements
Existing SAP installations (SAP know-how) Functional scope of implementation
Geographical scope
doc_131938388.pdf