1. Hosted by Thrive After go Live: Continuous Business Evolution with SAP R/3 Barry Wilderman Michael Doane META Group, Inc.

2. Hosted by Protecting Your SAP Investment 80% of SAP installed base clients express disappointment in: Benefits attained Measurability of benefits User competency 20% created post-ERP IT/Business organizations (CoE) End User Competency is sorely neglected

3. Hosted by The Fog of SAP War A Business Case justifies the endeavor (was it measurable?) Software and SI are selected Project begins – client grows ‘cost conscious’ Benefits are forgotten/training is reduced “We didn’t get what we expected”

4. Hosted by Overview of an SAP Implementation Project ScopingStaffingBenefitsTargetingScopingStaffingBenefitsTargeting EnterpriseModelDefinitionProcessDesignDataAnalysisEnterpriseModelDefinitionProcessDesignDataAnalysis R/3ConfigurationReportingInterfacingDataCleansingR/3ConfigurationReportingInterfacingDataCleansing IntegrationTesting Data Migration Interfacing User Testing User Training IntegrationTesting Data Migration Interfacing User Testing User Training Client Ownership Client Ownership Help Desk InterfaceSupportBenefitsMonitorProcessImprovement InterfaceSupportBenefitsMonitorProcessImprovement IT Transition B Transfer of SAP Knowledge A 0 Vision & Strategy Project Charter FundingCommitment FundingCommitment Project Installation SizingSizing ProductionPlatform

5. Hosted by The perception of a need Project Planning Acquisition/Development Testing & Training Implementation Utilization Maintenance/Enhancement Degradation Pre-SAP Life Cycle Information Systems Life Cycle

6. Hosted by Continuous Business Improvement Cycle The SAP Life Cycle Enterprise Vision Business Process Design Configuration Implementation Business Process Design Configuration Implementation Extended Applications Opportunity New Software Release Extended Applications Opportunity New Software Release Business Process Refined Configuration Business Process Refined Configuration Expected life-span of an SAP installation=15+ years

7. Hosted by AS IS TO BE GoLiveGoLive Incremental Improvement Incremental Improvement Continuous Business Improvement ROI, Extended Applications, e-Commerce Extensions toward SCM and CRM Core ERP Implementation The “TO BE” vision established during core ERP implementation is limited to near and mid-term planning and is targeted for achievement at the point of Go Live. At Go Live, a new “TO BE” must be established or business improvements will only be incremental relative to the initial To Be vision. Clients need to simultaneously a) maintain and support existing ERP functionality and b) provide the engine to seize new benefits. The “TO BE” vision established during core ERP implementation is limited to near and mid-term planning and is targeted for achievement at the point of Go Live. At Go Live, a new “TO BE” must be established or business improvements will only be incremental relative to the initial To Be vision. Clients need to simultaneously a) maintain and support existing ERP functionality and b) provide the engine to seize new benefits. CoE?CoE? No Yes Performance Beyond Day One

8. Hosted by CIO Top Issues Matrix (500 CIOs in 2001, 700 CIOs in 2002 CIO Concerns Worldwide = 1. Business/IT Alignment

9. Hosted by Why an SAP Center of Excellence? An optimization of business processes that drive business benefit An optimization of end user competency and employee fulfillment of business processes Continued coherence and integration of functionality and data through all process chains.

10. Hosted by ITArchitecture/Planning Sourcing & IT Financials IT Human Resources CIO TechnicalSupport Operations Security Quality & Measurement IT Steering Committee TechnologyDomains DatabaseDatabase HostHost MiddlewareMiddleware NetworkNetwork DesktopDesktop etc.etc. ApplicationManagement InfrastructureDevelopment/Engineering/TechnicalSupport OperationalServices ProgramManagement Change Management Change Management Integration Mgmt BusinessGroups Center of Excellence Excellence ContinuousEducation

11. Hosted by Integration Management (Technical) Finance Sales Logistics … Process Owners Production Control/Change Management Client LOB Domain Client IT Domain Software Vendor Domain Client IT Domain Enterprise Program Management Production Help Desk Users Continuous Education Users Application Management Domain UsersUsers Integration Management (Functional, Cross-Application) Extended apps New apps Upgrades Custom Applications Software Configuration & Support

12. Hosted by Coe Functions Maintenance and support of ERP and related functions Optimization of current system usage Continuous business improvement Prepare the company for transformational change.

13. Hosted by Building an SAP CoE: Planning Create a high-level vision for a post-implementation Center of Excellence. This vision will address: The scope of the center of competence: Will it support just the ERP installation, or also legacy systems, bolt-ons, and interfaces? Organization/structure: There are at minimum four basic variants for a CoE organization depending upon a client’s size, geographic locations, and support requirements. Transition Plan (High Level): defining the calendar for migration of legacy systems to ERP as well as the migration of legacy IT staff to new roles in the Center of Excellence.

14. Hosted by Building an SAP CoE Development/Realization Create a Straw Roster for the Application Management team: Establish role definitions for the post-Go Live for Enterprise Program Management, Application Management, and Integration Management. Determine which CoE functions will be outsourced Launch outsourcing negotiations with chosen vendors Create a staff transition plan

15. Hosted by Realization to Final Preparation Complete transition education for CoE staff. Integration and orientation of outsourced CoE functions should commence as the build phase reaches the final preparation phase. Initial end user training should include an introduction to CoE user support functions and the Help Desk should be in place.

16. Hosted by Go Live + The Center of Excellence is operational, with all elements in place for continuous business evolution. After Go Live, the balance of legacy IT staff will be a) transitioned to the new SAP-centric organization, b) re-assigned with the organization, or c) terminated.

17. Hosted by IT Migration from Tradition to ERP Development System - Installation Development System - Installation Master Data Conversion Master Data Conversion Interfaces (one time and permanent) Interfaces (one time and permanent) Reports – Reports – Customizing to satisfy Gaps Customizing to satisfy Gaps Production Installation Production Installation  Performance Monitoring/Scalability  Interface maintenance  Connectivity (ALE, EDI, Web…)  User support  Data/Business Intelligence Implementation Post-Implementation

18. Hosted by Bottom Line ROI should be measured from the beginning of the project and carried through time Cost is only half of the equation ROI has no ceiling (nor does a To Be Vision) Continuous business evolution is the goal, not just implementation