Run SAP like a Factory Establishing an Operations Control Center. SAP Active Global Support

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1 Run SAP like a Factory Establishing an Operations Control Center SAP Active Global Support

2 Agenda What is Run SAP Like a Factory Operations Control Center Building Blocks of Run SAP like a Factory Central Monitors Event Continuous Improvement Deployment of Run SAP like a Factory Appendix Detailed Features 2012 SAP AG. All rights reserved. 2

3 What is Run SAP like a Factory?

4 Run SAP Like Factory Program Definition 1 st Perspective Run SAP Like a Factory is SAP s approach to efficiently operate and continuously improve SAP Business Solution operations. The objective is to operate SAP with minimal costs and effort. This is achieved by creating transparency what is going on, by operating pro-actively based on alerts, and by implementing a continuous improvement process. Further aspects are simplification, standardization and automation of operational procedures. Run SAP Like Factory provides the methodology, content, and tools combined with premium service and trainings. Available for SAP Premium Engagements like SAP MaxAttention and SAP Active Embedded SAP AG. All rights reserved. 4

5 Run SAP like a Factory as part of IT 2 nd Perspective IT Service Enhancement Incident Business Requirement IT Portfolio and Project Service Request Problem Portfolio Minor Release Urgent Change Request for Change Event and Continuous Improvement Single Source of Truth Project Major Release Design Mgmt Build Mgmt Build Execution Business Process Monitoring and Analytics Change Test Mgmt Test Execution Run SAP like a Factory Technical Monitoring Release & Deployment Mgmt Deployment execution Application Lifecycle 2012 SAP AG. All rights reserved. 5

6 Run SAP like a Factory & SAP Solution Manager 3 rd Perspective Demonstrate Value to the Business Does IT help the business to grow? Is the business using the IT solution? Is business continuity guaranteed? Is business throughput as expected? Reports & CIO Dashboard Manage Operational Efficiency Is IT on top of projects and operations? Budget, capacity and skill development on track? Operation Control Center Selected auto refreshed status monitors Autodiagnosis of core business process health and system landscape Two Operation Experts required per shift Two FTE s to run the solution Work Centers Exceptions are Auto-discovered; Guided Procedures for Resolution of Exceptions Expert Tools for root cause analysis and problem resolution 2012 SAP AG. All rights reserved. 6

7 1 st. Level Support 1 st. Level Support Operations Control Center From a Siloed to a Centralized Operations Approach Business Process Owner End User Key User Business Process Owner Operations Team End User Key User Functional Support Team (2 nd Level) Operations Team Operations Control Center 2 FTE per shift Application Middleware SAP Basis & IT Infrastructure Functional Support Team (2 nd Level) Application Middleware SAP Basis & IT Infrastructure 2012 SAP AG. All rights reserved. 7

8 Run SAP Like Factory Operations Control Center 4 th Perspective Operations Control Center (OCC) Business Process Operations Application Operations IT Infrastructure Operations Central Monitors/ Dashboards Status Core Business Processes Status Business Users Central Alert Inbox Status System Components Event Continuous Improvement Process Act Check Plan Do Problem (re-active / pro-active) Change Incident and Problem 2012 SAP AG. All rights reserved. 8

9 Run SAP like a Factory Layers to be considered Business Process Layer SolDocu Solutions Business Processes Business Process Steps and Interfaces Business Process Operations Application Layer LMDB ABAP J2EE End-Users scenarios Interfaces & Jobs Products & Applications Systems & Scenarios Databases & Operating Systems Application Operations IT Infrastructure Layer CMDB Physical & Virtual Hosts Printers Disks & Storage Network devices IT Infrastructure Operations 2012 SAP AG. All rights reserved. 9

10 Operations Control Center - Description An Operations Control Center (OCC) consists of: A set of central monitors, which permanently report the status of the business processes and related IT landscapes, including important business and technical exceptions. Non-SAP can be included as well. The central monitors are used for: Alerting: Enabling pro-active SAP operations via Event Monitoring: Presenting the current status, and supporting problem analysis Reporting / Dashboards: Providing transparency to all involved parties An infrastructure, which pro-actively monitors the solution 24x7 without manual effort, and which triggers and correlates alerts in case of problems. The alerts are bundled in an alert inbox. A small team of operators, who work on the alerts in a guided way (Event ). A Continuous Improvement process, which optimizes the overall operational setup depending on newly identified requirements. The guiding principle is to demonstrate value to business and IT SAP AG. All rights reserved. 10

11 Motivation for Run SAP like a Factory Benefits & Challenges Goal Benefit Challenge Transparency Global transparency for business processes and IT landscape components get central insight if business processes work as expected and all IT landscape components are operating with best performance via expert and IT Operator monitors, and via dashboards and reports. Efficiency Reduced IT support process costs... document, standardize and automate administrative tasks and procedures. Introduce analysis support by Guided Procedures. Optimization Higher end user satisfaction & faster business processes identify, analyze, and correct severe problem areas and negative business performance trends, by introducing a Continuous Improvement process. Pro-Activeness Identify issues before the business is impacted ensure that issues are automatically detected and reported 24x7, to make support experts work on these even before end users are reporting an incident. Stability Smooth & reliable processing of core business processes come to a more stable business solution (end-to-end), by orchestrating technical and business process related monitors into a central support environment (including Non-SAP) SAP AG. All rights reserved. 11

12 OCC General Implementation Concept Understand current operational challenges by answering the question: While operating SAP, what creates pain to the Business / to IT, and why? Create transparency about these challenges by setting up central monitors and a standardized monitoring process Improve the initial setup, and SAP operations in general by implementing a continuous improvement process 2012 SAP AG. All rights reserved. 12

13 1. Understand Current Operational Challenges The general concept of an OCC is to provide immediate value to business and IT, by focusing on critical operational areas. For this purpose, it is a critical success factor of having a detailed understanding of: The business / IT support processes and challenges Business process criteria and KPIs Related IT criteria KPIs is required. The most important and urgent challenges (or parts of it) should be already addressed in the start setup of the OCC. The OCC start setup does not target towards completeness. Unspecific standard setups should be avoided at all (although there are common building blocks of an OCC) SAP AG. All rights reserved. 13

14 2. Create Central Transparency Operational challenges are usually fuzzy problems, and transparency on the root cause, context and history data is often missing. Creating central transparency means: For the identified problem areas, monitoring data is continuously collected 24x7, stored in a central place, and displayed in monitors and on large screens within the OCC. The data is being used within the OCC for: - Alerting: Establish an automated and highly standardized operator driven alert monitoring process, with integration point into incident management. - Monitoring: In case of a problem, the central monitoring data helps speeding up the analysis process, with integration into problem management. - Reporting / Dash-boarding: Usage-specific reports and dashboards for all IT management levels clarify on history, and future trends. Integration points exists into various other IT support processes like capacity management, or technical administration. The central alert based monitoring process is a core OCC process, which leads to a significant efficiency gain SAP AG. All rights reserved. 14

15 3. Continuous Improvement To adapt the OCC, and SAP operations as a whole to newly identified challenges, a Continuous Improvement process is being implemented as a core OCC process. The standardized process: Identifies improvement needs and opportunities Analyzes the root cause Provides improvement proposals based on facts Initiates and tracks change proposals Measures the success of the improvement. There are several common improvement scenarios in the SAP environment, which greatly vary in the level of complexity (from a simple technical configuration change, to an adjustment of a complex business process). The initial scope depends on customer requirements. Continuous Improvement enables and requires flexibility. However, IT organizations tend to be static in its nature. Continuous Improvement therefore requires support and commitment from C-Level management SAP AG. All rights reserved. 15

16 The Control Center Room Characteristics One physical room providing transparency about the operational status of the SAP solution Large TV screens visualizing key information and incoming alerts Space for more experts in case of severe issues (e.g. escalations) Space for related teams (e.g. Service Desk) for short communication lines Detailed monitors and tools for troubleshooting Small team of IT Operators taking immediate action on alerts 2012 SAP AG. All rights reserved. 16

17 The Central Monitors / Dashboards The central monitors / Dashboards: Address key operational pain points customer may have because they are designed per customer, tailored to customer specific operational needs. Provide full transparency about the status of the core business processes and the IT landscape. Are running in auto-refresh mode, and presented on large screens in the Operations Control Center. Turn to red meaning trigger alerts - in case of major business exceptions and technical problems. The alert inbox is the first place to start for IT Operators. All information on the alert context, and what to do first, is provided there. Reports and dashboards, to provide detailed information to all IT support levels (from IT Operators to the CIO). SAP Solution Manager 7.1 is a Must-Have to establish the concept SAP AG. All rights reserved. 17

18 Continuous Improvement The Continuous Improvement process (PDCA example): Identifies improvement areas, run a detailed root cause analysis, provides an As-Is/To-Be determination, documents and judges on the case, and collects improvement proposals (PLAN phase). The proposals are tested and fine-tuned (DO phase). The results are checked, and a new standard is being defined (STUDY phase). The new standard is implemented, and the results are checked against To-Be state (ACT phase). The process can be triggered by information from the Central Monitors. SAP sees the Quality Managers for Business Continuity and Business Process Improvement as the main responsibles for driving the process. Restore/ Improve Service Act Plan Overall, the customer will gain a significant improvement quality (both Business Process and IT Support related). Check Do 2012 SAP AG. All rights reserved. 18

19 Innovation Control Center and Operation Control Center Integration with Mission Control Center Innovation Control Center Build SAP like a factory Reduce implementation cost Reduce time to value Smoothen transition to operations Avoid unnecessary modifications Mission Control Center Enhanced Back Office Direct access to unmatched expertise from SAP and ecosystem Fast issue resolution SAP Solution Manager Operations Control Center Run SAP like a factory Improve business continuity Higher degree of automation Better business performance Reduce total cost of operations Customer SAP 2012 SAP AG. All rights reserved. 19

20 Run SAP like a Factory - Summary Run SAP like a Factory: Provides transparency about the operational status of your SAP solution. Helps you increasing your IT support efficiency. Leads to a continuous improvement of your SAP solution. Changes your operational approach from re-active to a pro-active mode. Leads to a more stable business solution, thus leading to higher business user satisfaction. Demonstrates value to Business and IT. For more information, please see SAP Service Marketplace: SAP AG. All rights reserved. 20

21 Building Blocks of RunSAP like a Factory Central Monitors Event Continuous Improvement

22 Central Monitors Business Process X Business Process Y Requirement 1) Central Monitors Alerts Event Incident IT component A IT component B Requirement 2) Trends Continuous Improvement Change CIO KPI XX Requirement 3) Reports / Dashboards e.g. Capacity 2012 SAP AG. All rights reserved. 22

23 Central Monitors - Definition Central Monitors: Collect and provide information from SAP (Application Operations and Business Process Operations) and Non-SAP. The monitor content needs to be defined based on customer requirements it is customer specific. The RSLAF Workshop is a first step to identify and document those requirements. Requirements may come e.g. from: A certain core business process, whose status and performance need to be monitored. The need to automatically monitor the availability of critical IT Landscape components. A complete shift of re-active SAP operations towards a pro-active approach. The CIO request to track, report and improve a certain success KPI. There is monitoring functionality which is a Must-Have to be included in the Central Monitors (if not covered elsewhere), for instance the technical monitoring of the availability and performance of IT Landscape components. Roadmap: 1. Identify and understand your most urgent requirements 2. Address those urgent requirements in the first iteration of the Central Monitors 3. Optimize the initial setup either due to a phased implementation approach, or via the Continuous Improvement process SAP AG. All rights reserved. 23

24 Application Operations Functional Areas Value-Add functions Data Volume DVM Potential Analysis DVM Project Reporting Extended Monitoring/RCA & EMC Extended System Monitoring Extended Root Cause Analysis Exception Cockpit RSLAF Roadmap Service ABAP J2EE Must-have functions System Monitoring SAP Standard Templates Support of all technologies Technical Analytics Technical KPI Reporting Dashboards Interface & Connection Monitoring RCA & Conf. Validation Interface Channel Monitoring Connection Monitoring E2E Root Cause Analysis Configuration Validation End User Experience Monitoring Scenario Monitoring End User Experience Monitoring including E2E Trace Analysis Technical Administration & GP s Prerequisite for Application Operations Process Integration Monitoring Business Intelligence Monitoring 2012 SAP AG. All rights reserved. 24

25 Business Process Operations Functional Areas IT Operations Control Center Business Cross Database Comparison Business Process Monitoring Business Process Operations Dashboards JSM Health Check BPMon Trend Analysis Business Process Analytics Reduce IT related business process exceptions Interfaces Background jobs Technical Performance Data Consistency Reduce cross-lob related business process exceptions Master data Customizing User handling Process template adherence Reduce business related business process exceptions Revenue Inventory Supply Chain planning Period End Closing 2012 SAP AG. All rights reserved. 25

26 Integrated IT Service and Application Lifecycle SAP Solution Manager integrates Application Lifecycle and IT Service processes on a single platform. CRM 7.01 SAP Solution Manager 7.1 (with full SAP CRM stack!) ITSM SAP Solution Manager 7.0 ALM 2012 SAP AG. All rights reserved. 26

27 SAP IT Service ITIL -compliant IT service and support processes Service Level Incident & Service Request Problem Externally verified IT service and support processes Incident Installed- Base & Object Customer Change Service Request Problem Change Knowledge Knowledge Installed-Based & Object (for Configuration ) Service Level * pricelist component Source: SAP AG. All rights reserved. 27

28 IT Service Desk Enhance Productivity of IT Service Desk Agents IT Service Desk Provide IT service desk agents with an easy-to-use application interface with integrated communication toolset Benefits Easy-to-use application for rapid adoption with minimal training Empower IT service desk agents with powerful tools and information Increase customer satisfaction and service transparency Intuitive UI grants access to all processes and functions which are necessary for the agent to provide best-in-class IT services Communication management queues inbound communication, defines routing rules, and routes communication to agents Inbound communication processing and contact management enables agents to receive customer requests via phone, , fax, or chat, and to identify the customer and affected configuration item Integrated solution search enables fast and professional solution provisioning, for example by integrated solution ing Agent guidance supports IT service desk agents with rule-based alerts, interactive scripts and surveys as well as automated navigation 2012 SAP AG. All rights reserved. 28

29 Incident Increase Efficiency of Responding to User Requests Service Level Installed- Base & Object Incident & Service Request Customer Problem Change Incident Provide IT service desk agents with an easy-to-use application interface with integrated communication toolset Benefits Knowledge Increase IT support productivity Deliver the best solution in a timely manner Enhance customer satisfaction Incident creation captures all relevant information including references to configuration items and enables rule-based dispatching as well as escalation management Incident classification categorizes user requests based on multi-level categorization and enables solution suggestions as well as auto completion Solution provisioning helps the support staff to search for relevant knowledge articles in the knowledge repository and to deliver the best solution to the end user Incident completion closes user requests and notifies users; optionally it can trigger follow-up processes such as recording of working time, billing, etc SAP AG. All rights reserved. 29

30 Problem Investigate and Resolve Issues in the IT Infrastructure Problem Investigate, resolve, and document issues in the IT infrastructure as well as workarounds or solutions to them Benefits Document problem investigation in detail Speed up incident resolution Make investigation results available to all relevant parties Provide detailed information to change management Problem creation captures all relevant information with regards to the issue, including the links to all related incidents Problem classification categorizes problems based on multi-level categorization and problem class, e.g. known error Incident references establishes relationships, optionally based on system proposals, to all incidents with the same root cause and facilitates automatic incident completion once the problem is solved Problem closure documents the outcome of the investigation and triggers follow-up activities such as creation of knowledge articles for the solution repository; optionally it can trigger followup processes such as recording of working time, billing, etc SAP AG. All rights reserved. 30

31 SAP IT Service on SAP Solution Manager Integrated IT Support processes IT Service Incident Problem Change Knowledge Monitoring & Alerting Root Cause Analysis Impact Analysis Deployment Test Application Lifecycle 2012 SAP AG. All rights reserved. 31

32 Incident and Problem Business User IT Support 1 st Level IT Support 2 nd Level IT Experts Create Incident message Search solutions & Dispatch Analysis Handover to Problem Create Problem message Lock related incidents Deep issue investigation Provide solution & Update Incident(s) Handover to Change Mngmt. Create Request for Change Multiple inbound channels Create notifications Create tasks Create Knowledge Article 2012 SAP AG. All rights reserved. 32

33 Event Event : Event ensures Business Processes and IT Landscape components are continuously monitored. The structured process defines what happens between alert arrival, and alert closure. The IT Operator action starts from the individual alert. Context information, documentation and guidance is being provided in the alert details. In case the alert reason cannot be solved, the alert is transferred into an incident for next level support to process. Deep integration (process wise, Service Desk interface) with the Incident process is therefore desired. Documentation and guidance on first analysis per alert type Potential transfer towards Incident Alert arrives in the alert inbox First IT Operator action Alert is confirmed 2012 SAP AG. All rights reserved. 33

34 Dependencies Guided Procedures Skills Documented Analysis Procedures Responsibilities IT Operators Operator Tools Event Task Alerting Notification Incident 2012 SAP AG. All rights reserved. 34

35 Manual Event Process - Example 2012 SAP AG. All rights reserved. 35

36 Continuous Improvement - Introduction As an essential part of an OCC, SAP positions the Continuous Improvement Process. Motivation for a Continuous Improvement process: A static setup of central monitors (and a corresponding static setup of an IT support organization) appears to be insufficient to address new upcoming problems and challenges in a highly dynamic business world. Event as such does not any generate value, or improvement. It just keeps the system running (which is a fair customer expectation anyway), but not more. In that sense, Event costs money, which is not available for innovation. Continuous Improvement addresses improvement items which are really hurting the business, in a structured way. Continuous Improvement is often missing in customer IT: Setting it up in a right way and supported by central monitors - brings large value to the customer SAP AG. All rights reserved. 36

37 Continuous Improvement Theory Continuous Improvement: Definition: Is an ongoing effort to improve products, services, or processes. These efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once. Delivery (customer valued) processes are constantly evaluated and improved in the light of their efficiency, effectiveness and flexibility. 1) There are several Continuous Improvement theories like PDCA (Deming), or DMAIC. Act The simple PDCA cycle is like this: Plan Plan: Plan the improvement sequence Do: Test quickly first ideas in reality Check: Check the results, and define new standard Act: Implement the new standard Check Do 1): Wikipedia.com 2012 SAP AG. All rights reserved. 37

38 Continuous Improvement With SAP The Continuous Improvement process in an SAP centric environment follows the same general structure. Although one can speak about THE Continuous Improvement process, there are usually several different process scenarios, which greatly vary in the number of process steps, complexity, number of people involved, processing time, number and complexity of the change items being triggered : Within the individual phases (e.g. PLAN phase ), there are similar activities concept wise ( Running Root Cause Analysis ). Obviously, the holistic analysis for a complex business process is a more advanced procedure than the analysis of a single program. The aim is to: Make the customer familiar with the general Continuous Improvement concept. Find and establish a limited set of process scenarios, which bring immediate value to the customer SAP AG. All rights reserved. 38

39 The Four Phases More Details Implementation of the new standard Measurement of success Act Plan Identification of areas which require improvement Root Cause Analysis As-Is / To-Be determination Problem description, judgment, and prioritization Collection of improvement proposals Check Concept check and validation Development of the new standard Plan for changes Do Early try and test Judgment on efforts and benefits Optimization of the proposal 2012 SAP AG. All rights reserved. 39

40 Continuous Improvement - Involved Roles Technical and functional support experts Developers IT Architects QM for BC and QM for BPI Act Plan Service Desk Analyst OCC team lead QM for Business Continuity and QM for Business Process Improvement Technical and functional support experts and team leads IT Architects Business Process Experts & Champions Check QM for BC and QM for BPI Business Process Champions & Experts CAB Do Technical and functional support experts Developers IT Architects 2012 SAP AG. All rights reserved. 40

41 Example Continuous Improvement Business Process Improvement Methodology Control BP Analysis by BP Monitoring should show no red alerts BP Analytics Trend Analysis should show decreasing trend Implement Create Action Plan & Execute Action Items Define Decide on Work Streams/ Processes to start with Measure Set up BP Analytics Analyze Root Cause Analysis 2012 SAP AG. All rights reserved. 41

42 Business Process Improvement Standardized Methodology with Business Process Analytics Get Global Transparency 5 Identify Org Units to be analyzed 6 Identify Poten- tial for old Data Reduction Perform Detail Analysis Identify Root Causes (RC) Create Frequency Diagram of RC Define Action Plan Visualize Impact on Benefit/Value Categories Control Achievements via Trend Analysis 2012 SAP AG. All rights reserved. 42

43 SAP Quality Managers The Quality Managers for Business Continuity (BC) and Business Process Improvement (BPI) play a significant role in the Continuous Improvement process. These are two QMs out of four, which are required when setting up an advanced Customer Center of Expertise (CCOE): The QM for BC is responsible for driving technical improvement items. He / she is in charge of providing status information of the productive SAP solution. He / she should be able to set up the required team for analyzing technical items in detail, and to propose improvement proposals. The QM for BPI is responsible for driving functional improvement items. He / she has established interface to the business units, and can bring into the process resources from the business. He / she should be able to set up the required team for analyzing functional items in detail, and to propose improvement proposals. A detailed role description can be found at SAP AG. All rights reserved. 43

44 Overview RSLaF Organization and Roles Operations Control Center, Project Support, and Operations Support Business End User, Key User Global Business Process Champion Regional Business Process Champion Change Advisory Board Portfolio & Program Office (PMO) Integrated Quality SAP MCC 4 Operations Control Center 1 2 Integration Validation Innovation Control Center 1st Level Support Business Process Operations (Functional Support Teams) Application Operations (Middleware /Technical Support Teams) IT Infrastructure Application Project Teams 3 rd Level Support Custom Development CTO / Innovation, Enterprise Architecture IT Run SAP Like a Factory - Team ALM - Team 1 2 Quality Manager for Business Continuity 3 IT Operators Quality Manager for Business Process Improvement 4 SAP Mission Control Center 2012 SAP AG. All rights reserved. 44

45 Run SAP Like a Factory Deployment

46 Value Exploitation Strategies Customer individual path to better operations 3 3 Operations Control Center Central monitors Continuous improvement process Business Process Business process Monitoring, Interfaces, Jobs, Data Consistency Starting Point: Basic Configuration Time 1 Application System monitoring, alerting and incident management 2012 SAP AG. All rights reserved. 46

47 Run SAP Like a Factory - Delivery Model Example Demand / Opport. Positioning Program Set-Up Implmentation / Enterprise Roll-Out Continuous Improvement CW1-4 CW5-6 CW7-10 CW CW16-20 CW º Benefits Proposal KPI Framework buy-in Roll Out KPI Result Improvements KPI Result Opportunity Identification Approval KPI Target RSLAF Workshop AppOps Roadmap Service BPOps Roadmap Service Program Plan Kick-off Program Improvements identification Project Phase 1 Project Phase 2 Project Phase 1 Project Phase 2 Project Phase 1 Project Phase 2 Customer effort Sign-off Service Service Service EoDs EoDs EoDs 2012 SAP AG. All rights reserved. 47

48 Effort Efforts for Setting Up and Running an OCC Customer investment is required for initial setup of the central monitors. The initial setup should already address major operational pain points right from the beginning. Once set productive, the OCC may uncover significant improvement potential, resulting in many changes of both coding, and the central monitors. Customer will soon reach the payback phase, where the effort strongly decreases. A large return of investment is given by a much higher IT service quality, and system stability. Initial setup OCC GoLive Initial OCC optimization Investment Phase Ongoing continuous improvement Payback Phase Time 2012 SAP AG. All rights reserved. 48

49 OCC Implementation Project Roadmap Implementation details are described in the three project roadmaps for Application Operations, Business Process Operations, and OCC: The roadmaps describe the sequence of activities to be performed in a certain implementation phase. Accelerators help performing a certain step. The roadmaps can be exported to MS Project, to initially populate the project structure skeleton. The roadmaps are part of ST-ICO (implementation content of SAP Solution Manager; transaction RMMAIN), and are available as HTML content which can be displayed in a browser SAP AG. All rights reserved. 49

50 Appendix - OCC in an hosted environment

51 Motivation for Run SAP like a Factory Hosted Scenario Goal Hosting Partner Hosted Customer Transparency Efficiency Optimization Pro-Activeness Automated standard reporting and dashboards. Monitoring data and alerts from SAP Non-ABAB systems. Strong interest to increase internal efficiency by automation, standardization, shared knowledge and resources. Drill-down options from monitors or alerts to quickly identify and understand the problem. Strong interest to optimize internal processes No interest in optimizing customer solution (contract dependent) Basic standardized alert monitoring in place. However usually customer needs to open a ticket (re-active mode) Usually lack of operational transpacency Strong demand for gaining transparency ( What is my hosting partner doing? What is going on?) Getting more by paying less money to the hosting partner No further interest how this is being implemented by the hosting partner Very high customer expectations, which are often not fulfilled by the hosting partner Very high customer expectations, which are often not fulfilled by the hosting partner Slow re-active ticket solving, no transparency about the status and action taken so far Quality of service depends on the hosting contract Very high customer expectations, which are usually fulfilled by the hosting partner within the boundaries of the hosting contract but not more Stability 2012 SAP AG. All rights reserved. 51

52 Customer, Hosting Partner and SAP SAP s Perspective Implementation Techncal Happy customer Low TCO Full transparency Functional Implementation Partner Partner OCC (PCC) Partner OCC (PCC) Tight and efficient integration and interaction w/ the hosting partner(s) Hosting partner is capable and willing to solve as much problems as possible w/o help from SAP 2012 SAP AG. All rights reserved. 52

53 Customer SAP Solution Manager as a Central Integration Point Customer SAP Solution Manager is the only integration point where all parties involved in SAP operations, can meet and collaborate. Transparency about the operational status Reports & Dashboards Status of Business Processes Functional alerts and Business KPIs In future stronger cooperation between the hosting partners will be expected by the customer. Own tools for monitoring and incident management Customer Partner X (functional support) Own tools for monitoring and incident management SAP Solution Manager helps clarifying who is responsible and in charge for solving a problem. The customer and, in case the problem cannot be solved, SAP as well - has full transparency about the analysis status. KPI history Analysis done so far Expert tools and remote access SAP Partner Y (technical support) Status of landscape components Technical alerts and technical KPIs Own tools for monitoring and incident management 2012 SAP AG. All rights reserved. 53

54 Motivation for Run SAP like a Factory SAP s Expectation for a Hosted SAP Scenario Goal Transparency Efficiency Optimization Pro-Activeness Hosting Partner There is one integration point for ALL parties, and this is the customer SAP Solution Manager Partner commitment is to provide a true operational status (via reports and dashboards; w/ help from SAP) Integration on alert / incident management level required High level of standardization and automation (from manually compiled daily health checks towards E2E automation based on alerts) The partner is a joint member of a customer OCC (e.g. depending on the hosting scenario, provides the IT Operators). Clear process & policy for problem management (e.g. RCA done and documented before sending incident to SAP) Provide business value: Strong will to support the continuous improvement process which is owned by the customer (e.g. by providing the required data or improvement proposals, w/ involvement of SAP) Conterpart for the customer QM s for Business Continuity and Business Process Improvement Standardized set of central monitors and alert settings to be implemented in the customer OCC From re-active to pro-active operations: Efficient event management process established Full transparency for the customer on alerts and incidents Stability Stability and customer satisfaction will increase automatically in case all goals from above are being implemented This gives the hoster a competitive advantage, and the opportunity to create premium offerings for hosted scenarios 2012 SAP AG. All rights reserved. 54

55 Points of Interests for Hosting Partners Hosting partners may have the following points of interest: Development of an operational template which can be consistently provided to hosted customers. The template may define: The definition of an integrated event and incident management process. Alert threshold definitions and auto-reactions. Standardized and automated set of IT reports, dashboards and Balanced Score Cards, which can be provided to the hosted customer. A standardized set of tools which will be used in a defined way in case of RCA (also in agreement with other hosting partners in a multi-provider environment). To increase overall IT support efficiency, the automated creation of incidents in the Service Desk tool of the hosting partner based on alerts in SAP Solution Manager is of particular interest. This requires a standardized interface between Service Desk tools. As a new business opportunity, the hosting partner may offer the setup of the OCC to the customer (including infrastructure, tools, monitors, and processes). As an advanced option, the hosting partner may offer the integration of Non-SAP components into an OCC SAP AG. All rights reserved. 55

56 Real Live Hosted Customer Example Customer scenario SAP Retail customer in EMEA, MAXATTENTION support contract (pre-condition). Parts of SAP (e.g. ERP) are already live, but the customer is still in project mode (large MAINFRAME environment, will be completely replaced by SAP). Technical support is being provided by a large hosting partner XYZ, functional support is in customers responsibility. The customer is very unhappy with the current situation (see next slide). Customer is willing to set up a joint OCC. Change driver Customer High expectations from the business, that SAP overall behaves similar like the old MAINFRAME environment with respect to stability, performance There are major IT support changes already planned, e.g. moving the service desk from BMC Remedy towards Service Desk in SAP Solution Manager Hosting Partner It is a key customer in EMEA, the partner must react on the IT support changes requested by the customer. The partner already realizes the limitations of the support concept, which is classical and XX years old. The plan is to derrive a standard setup including packaged customizing settings, which can be transferred (sold) to other hosted customers as well SAP AG. All rights reserved. 56

57 Hosted Scenario Start Scenario SAP BI SAP PI BMC Remedy Customer SAP ERP Hosting Partner Partner Monitoring Suite HP SC L2 Support Limitations Monitoring suite ok for infrastructure and SAP ABAP components, but insufficient for new SAP components (BI, PI, Portal ) No transparency for alerts; Customer perception is, that the hosting partner purely works reactively (no action w/o incidents in HP SC) No transparency for incidents; Manual content / status update only Very slow troubleshooting procedures leading to business dissatisfaction No further benefits from reporting No operational support concept for application support High license cost for BMC Remedy 2012 SAP AG. All rights reserved. 57

58 RSLAF - Transition Area Item Action Tools Partner Monitoring Suite Use partner suite for infrastructure only All SAP related monitoring data will be created, stored, and evaluated by SAP Solution Manager BMC Remedy Replaced by Service Desk in SAP Solution Manager HP SC Replaced by new Partner Service Desk Bi-Directional interface between the 2 service desk tools Central Monitors Central monitors showing technical and functional data Technical alerts (manually/automatically) create incidents in Service Desk, which are forwarded to the new Partner Service desk Processes Event True Event process for technical and functional alerts Customer has full transparency on technical alerts Incident Fully integrated and transparent incident management process no manual copying between tools Option to pass incidents to SAP Teams IT Operators Technical operators are payed by the customer, and facilitated by the partner. They sit next to L2 technical support tight integration across teams SAP AG. All rights reserved. 58

59 Hosted Scenario Final Scenario SAP BI SAP PI Service Desk SAP Solution Manager Central Monitors Customer SAP ERP SAP L1 Support L2 Support Hosting Partner Partner Monitoring Suite Partner Service Desk L2 Support Benefits Full monitoring of all SAP components Pro-active alerting IT Operators work in an efficient and standardized way on alerts IT Operators act as an additional line of support protecting valuable L2 resources Transparency on alerts Transparency on incidents One data platform for monitoring, troubleshooting, reporting and dash boards (SAP Solution Manager) Seamless integration with SAP Reduced licensing costs 2012 SAP AG. All rights reserved. 59

60 Scenario Standardization Customer A SAP Service Desk SAP Solution Manager Central Monitors L1 Support SAP Partner Service Desk Customer B SAP SAP Service Desk SAP Solution Manager Central Monitors L2 Support Hosting Partner Standardizing setup for speeding up scenario configuration of the next hosted customer: MAI templates including a set of KPIs for: Monitoring (e.g. during Root Cause Analysis) Reporting Alerting Alert thresholds Auto-reaction for converting alerts into incidents Customizing of the service desk interface (SAP part) Mid term: Queries, BW reports and dashboards for reporting 2012 SAP AG. All rights reserved. 60

61 Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent SAP AG. All rights reserved. 61

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