SAP R/3 Implementation
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1 SAP R/3 Implementation References Bancroft et al., Implementing SAP R/3 ASAP for SAP R/3 4.6a 1 SAP R/3 Implementation Issues Why SAP (or any ERP solution, in general)? Why not? What are the risks? 1980 s technology lack of flexibility possible lack of fit with corporate strategy complexity Challenges inherent in implementing enterprise-wide information system business process reengineering (BPR)? Ability to manage flexibility and complexity skills in IT, various business processes, communication and project management 2
2 First Risk s IT Technology Not pure object-oriented (OO) design lack of true reusability, flexibility and adaptability to change Microsoft OLE (Object linking and embedding) is used only in GUI functional calls and workflow process Pooled data and flat files in 3-tier architecture are technologies evolved from old mainframe technology Poor choice for incremental extenders (20%) and true reengineers (15%) R/3 is better suited to one-time transformers (65%) SAP itself may have become a legacy system in 5 years Proprietary software language (ABAP/4) limits its openness SAP R/3 just recently released a web-based version - a feature that is desperately needed to combat Oracle ERP applications 3 2nd Risk - Lack of Flexibility R/3 is a centralized and structured system effective for control rigid disciplines are required but difficult for an internationalized, diversified enterprise Business are more sophisticated for offering customized products and services lack of ability to support rapid repositioning of business functions Fast-paced, evolving business models make to stock make to order configure to order E-business 4
3 3rd Risk - Lack of Fit with Corporate Strategy Works well for top-down organization and organization structured in the same way R/3 is structured customization and modification for other cases cause major upgrade problems Corporate strategy to allow divisions/sites to operate in unique, separate ways For example: different shipment and stocking practice Difficulty to integrate with other vendor s solutions 5 4th Risk - Complexity New technology a complete client/server information network/architecture for the entire organization user training for new technology Business reengineering identifying correct business structure for every detailed process Political issue and change management changes in job roles and organization structure easy ones difficult ones? Cross- functional who owns which data or process company position in a constantly changing environment 6
4 SAP Basis Platform Independent SAP Application Modules Platform Dependent (Basis) Communi cations R/3 Data Repository Database User Interface Operating System Hardware Platform and Environment Enterprise Network 7 R/3 IT Architecture Hardware UNIX Systems Bull IBM Digital SNI HP SUN Bull/Zenith Compaq Data General... Digital HP (Intel) IBM (Intel) NCR Sequent SNI IBM AS/400 IBM S/390 Operating systems AIX Digital UNIX HP-UX Reliant UNIX (SINIX) SOLARIS Windows NT OS/400 OS/390 Databases ADABAS D DB2 for AIX INFORMIX-OnLineOnLine ORACLE ADABAS D MS SQL Server INFORMIX-OnLineOnLine ORACLE DB2/400 DB2/390 Dialog SAPGUI Languages Windows 3.1, Windows 95, Windows NT, OSF/Motif, OS/2 Presentation Manager (PM), Macintosh, Java ABAP/4, C, C++, HTML, Java, ActiveX-Controls Windows NT, Windows 95, PM, Java 8
5 R/3 System Client/Server Configurations Central System Presentation SAP R/3 System Application Database Distributed Presentation Two-tier Client/Server Three-tier Client/Server Multi-Layer Cooperative Client/Server 9 SAP R/3 3-Tier Software Architecture Tier 1 Clients run program part USER INTERFACE User requests from PC: Show record of customer #4711 Tier 2 Clients/server runs program part APPLICATION Tier 3 Server runs program part DATABASE User requests from PC: Show record of customer ACME Customer Database Network USER INTERFACE (client role) requests customer data from APPLICATION APPLICATION (server role) processes data and delivers result to USER INTERFACE APPLICATION (client role) requests retrieval of customer data from DATABASE DATABASE (server role) delivers data to APPLICATION 10
6 SAP R/3 3-Tier Software Architecture SAP GUI Tier 1 BC Module ABAP/4 workbench System administration Business workbench Customizing Business Navigator MM Module SD Module FI Module etc. SAP Application Tier 2 SAP middleware (kernal and application service routines) SAP Database Tier 3 11 SAP Internet Enabling Architecture Presentation Internet- Enabling SAPGUI Web Browser Web Server Internet Transaction Server Application Instance Instance Database RDBMS 12
7 System Administration Computer center management system (CCMS) and system services Dispatcher: balancing loads of the server Update process: Synchronous vs. asynchronous Correction and transportation system User maintenance (authorization) Application data archiving Database administration 13 System Dispatcher Types of job processes: dialog (online) and batch dialog is the online transaction from users screens (e.g. order entry) huge off-line job with input submitted from files (e.g. long report generation) Role of dispatcher where (which server) to execute the processes when to execute the processes dialog during the day and batch during the night assign SAP modules to application servers due to different sizes of files and access patterns of different application modules 14
8 Application Servers with Separate Modules Sales Department Servers running SD Module SAP Database Server Sales Department Servers running SD Module Customer Database 15 Network R/3 Update Process - Asynchronous Update For quicker response to user dialog, R/3 uses asynchronous, instead of synchronous, update Synchronous Update User has to wait for database to commit the update Online Transaction--Order Entry Data records from user dialogs update database tables SAP Database Tables Asynchronous Update User does not wait for database to commit the update Online Transaction Continuous Background Task Order Entry to Update SAP Database Data records from user dialogs SAP Database Tables Data records from user dialogs SAP Database Tables 16
9 Monday Tuesday Wednesday Thursday Friday Saturday Sunday R/3 Correction and Transport System (CTS) Workbench organizer: coordinate members of the development team in the creation of programs, data, documentation and configuration objects Transportation system: (integration or quality assurance system: a production-like testing environment) Development Team Reserve Object Development and Test Production Test Business Team Test Object Production Development System Report A Report B Transport Report A Report B Transport Integration System Report A Report B Production System 17 Release Object Object OK User Maintenance What objects can be accessed? What can be done to objects? By what users? User Master Record Authorization Profile Authorization Objects Windows 2000 John Doe AUTH_PROF1 AUTH_PROF2 AUTH_A AUTH_B AUTH_C Windows 2000 not a good system leh. Linux is best choice for company OS system 1999 February
10 Accelerated SAP - ASAP ASAP is SAP s implementation solution Over 600 projects in 1999 worldwide (<100 in 1998 and none in earlier years) have gone live with ASAP Applicable for customers with sizes ASAP significantly speeds up the implementation process project duration % of projects < 3 months months months months 29 > 12 months 8 19 ASAP Implementation Phases 20 Phase 1: Project Preparation Determine project organization Define project procedures Phase 2: Business Blueprint Identify business processes Check quality of business blueprint Phase 3: Realization Business Process Master List (generated by Q&Adb from phase 2) End user training Phase 4: Final Preparation Phase 5: Go Live & Support
11 Time Required for Each Phase Phase Time 1. Project preparation 12% 2. Business blueprint 18% 3. Realization 51% 4. Final preparation 19% TOTAL 100% 5. Go live & support 8% 21 ASAP Tools 1. Implementation Assistant (IA): documents of implementation approaches 2. SAP Concept Check (SAP CC): checklists to analyze the project and implementation work. The check should be carried out throughout the entire Project Preparation and Business Blueprint phases 3. Q&Adb: business blueprint draw-up via Q&A and EPC models 4. ASAP Admin Tool: management of projects, ASAP users 22
12 ASAP tool icon IA ASAP Tools Demo Phase 2: business blueprint Work package: 2.5 organization structure definition Activities: define business organization structure Tasks: ~ Phase 1: Project Preparation Defining your project goals and objectives Clarifying the scope of your implementation Defining your implementation strategy Defining the overall project schedule and implementation sequence Establishing the project organization and committees Assigning resources 24
13 Work Packages of Project Preparation Initial Project Planning Project Procedures Training Project Planing Phase Project Kickoff Technical Requirements Planning Quality Check Project Preparation Phase 25 Initial Project Planning The purpose of this work package is to allow you to start detailed planning for the project create and issue project charter define, review and refine implementation strategy establish project team working environment determine project organization prepare project plan 26
14 Project Charter Mission statement Goals and objectives Scope Critical success factors High-level project plan Organization/staffing requirements Management responsibility Resource allocation Cost/benefit analysis Risk assessment 27 Project Team Organization Demo: refine organization and roles links team organization chart template (ET_KB004.PPT) 28
15 <Customer Name> SAP Project Team Organization Steering Committee <Enter Name> Project Sponsor Name 1 - Project Sponsor Name 2 Name 3 Name 4 Name 5 Name 6 Name 7 <Enter Name> Project Manager <Enter Name> SAP Project Manager <Enter Name> Project Engineer/ Administration <Enter Name> Technical Team Lead <Enter Name> Change Management Team <Enter Name> Processl Team Lead External Accounting & Finance Management <Enter Name> Process Team Lead Business Planning & Control <Enter Name> Process Team Lead Sales Logistics <Enter Name> Process Team Lead ProcurementLogistics <Enter Name> Process Team Lead Production Logistics <Enter Name> Process Team Lead Organization & Human Resources Project Plan Preparation Company goals and objectives Project scope Desired implementation time frame: Work Plan Resource assignments (internal and external): Resource Plan Budget: Budget Plan Organizational Change Management Goals & Objectives 30
16 Project Work Plan Demo: create project work plan links ASAP work plan 6-month timeline (ET_pp6mo.xls) 31 Sample Project WorkPlan Major Work Step Step 30: HR Line Manager Meetings Timing May 19XX June 19XX Week 3 Week 4 Week 1 Week 2 Deliverable Step 31: HR Risk Assessment Step 32: Develop HR Risk Profile Step 33: Conduct HR Risk Workshop Risk Score & Implementation Risks Risk Profile Report Preliminary Action Plan Step 34: Create Feedback Packages Line Manager Feedback Packages Step 35: IT Line Manager Meetings Holiday Week 32
17 Resource Plan Workdays July-1999 August-1999 September-1999 Original Original Plan Actual Variance Plan Actual Variance Project Phases Phase 1: Project Preparation Internal Resources 49 External Resources 14 Summary Phase 1 63 Original Plan Actual Variance Phase 2: Business Blueprint Internal Resources External Resources Summary Phase Phase 3: Realization Internal Resources External Resources Summary Phase 3 Phase 4: Final Preparation Internal Resources External Resources Summary Phase 4 Phase 5: Go Live and Support Internal Resources External Resources Summary Phase 5 Internal Resources External Resources Total per Month (Project Phases) Cumulative View Internal Resources External Resources Total per Month (Project Phases) Budget Plan Currency = Tsd EUR July-1999 August-1999 September-1999 Project Phases Original Plan Actual Variance Phase 1: Project Preparation Internal Resources 21 External Resources 16 Summary Phase 1 36 Original Plan Actual Variance Phase 2: Business Blueprint Internal Resources External Resources Summary Phase Original Plan Actual Variance Phase 3: Realization Internal Resources External Resources Summary Phase Phase 4: Final Preparation Internal Resources External Resources Summary Phase 4 Phase 5: Go Live and Support Internal Resources External Resources Summary Phase 5 Internal Resources External Resources Total per Month (Project Phases) Cumulative View Internal Resources External Resources Total per Month (Project Phases)
18 Work Packages of Project Preparation Initial Project Planning Project Procedures Training Project Planing Phase Project Kickoff Technical Requirements Planning Quality Check Project Preparation Phase 35 Project Procedures 36 Purpose: to establish the principal elements that determine how the SAP project is accomplished For all project team members to operate in an effective manner, it is necessary that project standards and procedures are established to avoid redundant and unnecessary work maintain consistency facilitate communication Activities: define project management standards and procedures define implementation standards and procedures define system landscape strategy
19 Defining Project Standards and Procedures 37 Define project management standards and procedures Steering committee meeting schedule How change management is handled Project monitoring and status reporting Meeting schedules for core team and extended project team Overall project communication methods and processes Project documentation Define implementation standards and procedures Overall configuration standards for the project Initial system authorization standards How system enhancements are handled How and when testing occurs Work Packages of Project Preparation Initial Project Planning Project Procedures Training Project Planing Phase Project Kickoff Technical Requirements Planning Quality Check Project Preparation Phase 38
20 Training Project Planning Phase Purpose: to create a project team training plan including business processes SAP system functionality change Activities: Create project team training plan Align end user training and documentation strategy 39 Work Packages of Project Preparation Initial Project Planning Project Procedures Training Project Planing Phase Project Kickoff Technical Requirements Planning Quality Check Project Preparation Phase 40
21 Project Kickoff Purpose: to formally announce to the company the initiation of the SAP project, which includes overall goals detailed task plans processes Activities: kickoff meeting project team standards meeting 41 Kickoff Meeting Agenda Executive kick off Overview of project organization and structure Technical environment overview Technical kick off Demo: kickoff meeting links project kickoff agenda template (ET_kb012.doc) 42
22 Work Packages of Project Preparation Initial Project Planning Project Procedures Training Project Planing Phase Project Kickoff Technical Requirements Planning Quality Check Project Preparation Phase 43 Technical Requirement Planning Purpose: to identify the technical requirements needed to implement the SAP System Activities: identify technical requirements hardware procurement Demo: identify technical requirement links IT infrastructure document (ET_TA001.doc) 44
23 SAP Technical Architecture and Infrastructure Capacity Planning/Sizing Number of SAP Systems Geographic Locations Number of SAP Clients Hardware Platform Relational Database Networking 45 Phase 2: Business Blueprint Conducting requirements workshops to create the business blueprint Documenting the business process requirements Reaching common understanding of how the company intends to run its business within the SAP system In addition: Refine the original project goals and objectives Define the Baseline scope Refine the overall project schedule and implementation sequence 46
24 Documenting Business Blueprint - Templates and Tools Templates in roadmap of implementation assistant (IA) meeting agenda project plan, etc Templates in Q&Adb templates for reports CI templates / questionnaires (*.dot) Master lists (*.xlt) functional specification (development.dot) and technical specification (TecSpec.dot) Tools: Q&Adb, Implementation Guide (IMG), R/3 online documentation 47 Work Packages of Business Blueprint Project management business blueprint phase Organizational change management Training business blueprint phase System environment development Organizational structure definition Business process definition Quality check business blueprint phase 48
25 Conducting Organization Workshops 1. Conduct Session 1 Integrated business process overview Questionnaires and reports in Q&Adb (demo) 2. Design a proposed organization structure 3. Conduct Session 2 Definition of organization structure Demo: Conduct Organization Structure Workshop links organization structure presentation (ET_AS003.ppt) 49 Work Packages of Business Blueprint Project management business blueprint phase Organizational change management Training business blueprint phase System environment development Organizational structure definition Business process definition Quality check business blueprint phase 50
26 Business Process Definition Purpose: to define the company requirements based on SAP business processes, to provide the required functions Activities: Prepare for Business Process Workshops Conduct General Requirements Workshops Conduct Business Process Workshops Conduct Detailed Requirements Workshops Complete Business Blueprint Blueprint Document Review and Sign Off 51 Conducting Business Process Workshop Determine Business Requirements Determine the Need for Extended Functions Determine Reporting Requirements Determine Required Interfaces Determine Conversion Requirements Determine Required Enhancements Clarify Deficient Areas Refine Business Process Descriptions and Models Determine Need for Additional Detailed Workshops Schedule Detailed Requirements Workshops 52
27 Determining Business Process Requirements Use Question & Answer database (Q&Adb) questions and the corresponding process models to facilitate and frame the gathering of company input (demo) 1. Answer corresponding business questions 2. Answer customer input (CI) template questions Get the business process owner, or power user, to give you information about the way they will use this business process in an SAP system environment While there will be a lot of as is discussion, keep in mind that you are configuring to be Generate business process master list (BPML) for Phase 3 realization 53 Business Process Questions 54
28 Business Process Transactions 55 Business Process Diagram Explorer - Enterprise Area (Matrix View) 56
29 Business Process Diagram Explorer - Business Scenario (Aggregated View) 57 Business Process Diagram Explorer - EPC Detailed View 58
30 Generating Reports/Lists for Realization Organization structure list, business process master list, development list, authorization list 59 Success Factors Pick a good team. A dedicated Basis team will be more effective than having an existing staff handle the Basis tasks as part of their current work assignments. Do not underestimate the amount of technical work involved. Budget accordingly Upper management commitment is extremely valuable. If the technology is new to you (e.g. NT, Unix, etc.), invest in some experience and team training. 60
31 More Success Factors 61 Manage the scope...a critical factor for the success of any project. Scope creep kills projects. This requires a manager with clear project control. There is no substitute for testing. Do mock conversions (multiple times). Test your DB recovery plan BEFORE you go live. Test your upgrade strategies. Planning is important, but recognize that no plan survives contact with the enemy. Be prepared for unplanned, unexpected client requests. Relating to the above, structure the technology accordingly. Example: Have plenty of extra disk space for that last-minute emergency request. More Success Factors Do not underestimate the amount of end-user training required. Not everyone is PC literate and has a Pentium Win95 machine at home. Tuning is an ongoing task, and is everyone responsibility. Also, fast computers can make up for a multitude of sins. Physically isolating a team, in one location, helps the team focus on the new project, and reduces interruptions relating to past responsibilities. Finally, fish or cut bait: do not get hung up for weeks on every decision. 62
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