1. ATUL PATANKAR [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2000 LINDA WILSON [ ASUG INSTALLATION MEMBER MEMBER SINCE: 1999 JUERGEN LINDNER [ SAP POINT OF CONTACT MEMBER SINCE: 1998 [ ] Getting to the Finish Line: How to Increase Your Chances of Success When Turning on Your New SAP System [ April 7 th 2011 Brenda McCue & Jeff Boone Ace Hardware Corporation

2. [ Real Experience. Real Advantage. The Helpful Place 2  Introduction  Overview of the Cutover Framework for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take Aways Agenda

3. [ Real Experience. Real Advantage. The Helpful Place Introduction  About Ace Hardware  Founded in 1924 by a small group of Chicago hardware store owners, Ace changed the retail landscape by allowing individual stores to purchase merchandise in bulk to save money and buy at the lowest possible price.  Each Ace store is independently owned and operated by local entrepreneurs – hard-working, passionate business owners who are involved with and, many times, reside in the communities where their stores are.  4,400 Ace stores around the world  We are your local hardware store and we are a part of your community. 3 “The Helpful Place”

4. [ Real Experience. Real Advantage. The Helpful Place Introduction  SAP at Ace Hardware  First SAP implementation in 2008 – “Build the Foundation”  Implemented Order to cash processes (SD, MM)  Core ordering applications still tied into legacy systems  Second SAP implementation in 2010 – “Business Transformation”  Implemented core financials (FI/CO) and purchasing (MM)  Chart of Accounts, Accounts Receivable, Accounts Payable  Enhanced the Order to cash processes (SD, Vertex, FSCM)  Sales Order, Credit, Delivery, Interfaces with our legacy DMPS/WMS  Implemented the Purchase to Pay processes (MM)  Purchase Orders, Inventory  Implementation partner - IBM 4

5. [ Real Experience. Real Advantage. The Helpful Place Introduction  Quick statistics on SAP 2010 implementation at Ace Hardware  Each phase (4 phases) had a cutover project plan  1,000 – 3,000 tasks  50 – 200 unique “task owners” with assignments  Duration 5 days – 2 weeks  24 hours/day, 7 days/week 5

6. [ Real Experience. Real Advantage. The Helpful Place 6  Introduction  Overview of the Cutover Framework for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take-Aways Agenda

7. [ Real Experience. Real Advantage. The Helpful Place Overview  Today’s goals  What do we mean by “Cutover”  a.k.a “Deployment” or “Implementation” or “Go Live” or “Roll out”  Key components  Business Process  Technical Implementation  Organizational Transition  Importance of the Go Live Checklist  Executing the Go Live Checklist can be a project itself 7

8. [ Real Experience. Real Advantage. The Helpful Place Overview 8 SAP Go Live Checklist

9. [ Real Experience. Real Advantage. The Helpful Place Overview  SAP Go Live Checklist  Excellent tool to ensure all aspects of the cutover are accounted for  “Brain dump” of everything needed for cutover  Tells what needs to be done, but not HOW to get it done 9 Strategic shutdown tasks Installation tasks Start up tasks Business and technical validations Assigning resources Setting up “war room” (tables, chairs, CAT-5 wiring, projectors, electrical, …) Climate control – don’t shut air conditioning down at 5:00 p.m. (24 hour shifts) Building access badges need to be extended for 24 hours Ordering food for war room (breakfast, lunch, and dinner) Purchasing garbage cans and bags for war room Making certain extra toilet paper exists for 24 weekend shifts! Strategic shutdown tasks Installation tasks Start up tasks Business and technical validations Assigning resources Setting up “war room” (tables, chairs, CAT-5 wiring, projectors, electrical, …) Climate control – don’t shut air conditioning down at 5:00 p.m. (24 hour shifts) Building access badges need to be extended for 24 hours Ordering food for war room (breakfast, lunch, and dinner) Purchasing garbage cans and bags for war room Making certain extra toilet paper exists for 24 weekend shifts!

10. [ Real Experience. Real Advantage. The Helpful Place Overview 10 BUSINESS PROCESS BUSINESS PROCESS Certification of new Business Process Business Shutdown Controlled Start TECHNICAL IMPLEMENTATION TECHNICAL IMPLEMENTATION Technical Components Alignment to Business Process Contingency plans ORGANIZATIONAL TRANSITION ORGANIZATIONAL TRANSITION Training Change Management CUTOVER FRAMEWORK Using a disciplined project management method to implement SAP systems should lead to a boring Go Live and Hypercare  Early strategic plans  Detailed cutover plans  Cutover time period(s)  Controlled Hypercare User Access and IT Controls Cutover Management

11. [ Real Experience. Real Advantage. The Helpful Place Overview  Key Aspects of the Cutover Framework  Can be used for large complex programs of work or smaller scale projects (smaller projects can scale down the steps executed that are not necessary)  Driven by the Go Live Checklist  Supports an integrated team concept  Integrates key project work streams: business process, technical implementation, organizational transition, internal controls  Provides the roadmap and descriptions of each unit of work which must be accomplished 11

12. [ Real Experience. Real Advantage. The Helpful Place Overview 12 Early Strategic Plans Detailed Cutover Plans Controlled Hypercare Strategic Rollout plan Internal Controls Disciplined Project Management Cutover Technical Strategy Org Impact Assessment Training Strategy Certification of testing Detailed Cutover Plan Training Org Change Mgmt Execute Cutover Plan Issue Management Conversion Validations Metric Reporting Bus & Tech Validations Defect & Issue Mgmt Transition to Operations

13. [ Real Experience. Real Advantage. The Helpful Place 13  Introduction  Overview of Ace Cutover Methodology for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take Aways Agenda

14. [ Real Experience. Real Advantage. The Helpful Place Early Strategic Plans 14 Early Strategic Plans Detailed Cutover Plans Controlled Hypercare Strategic Rollout plan Internal Controls Disciplined Project Management Cutover Technical Strategy Org Impact Assessment Training Strategy Certification of testing Detailed Cutover Plan Training Org Change Mgmt Execute Cutover Plan Issue Management Conversion Validations Metric Reporting Bus & Tech Validations Transition to Operations Defect & Issue Mgmt

15. [ Real Experience. Real Advantage. The Helpful Place Early Strategic Plans  Cutover activities occur throughout the life of the project.  Many project team members and non-project team members participate in cutover activities at different stages of the project.  It is critical to begin implementation planning steps early in the project.  The cutover strategic plan will directly impact the future business and technical design, organizational transition, and training activities.  The activities listed in the “Early Strategic Plans” section should be done in the initial stages of the project. 15

16. [ Real Experience. Real Advantage. The Helpful Place Early Strategic Plans 16 BUSINESS PROCESS  Business Shutdown & Controlled Start  Define scope and sequencing of core system functions  Determine the level of risk that can be managed  Determine any key obstacles for the implementation Strategic Rollout plan  Questions we asked:  Do we implement everything in one “big bang”, or can we implement “chunks” of functionality over time?  What business processes make sense to implement together?  Do we roll out to 14 distribution centers at once or roll them out in smaller groups?  How much change can the business or organization handle during one implementation?  How can we implement a new GL and close the books for the prior year at the same time?  Do not make any big system changes right before or during the company conventions as significant orders are placed and cannot be impacted. This is also true during key seasonal buying periods.

17. [ Real Experience. Real Advantage. The Helpful Place Early Strategic Plans 17 TECHNICAL IMPLEMENTATION Technical Strategy  Technical Components  Determine if there are new hardware/software technologies  Determine technical direction as a result of the rollout plan Strategic Rollout plan  Examples  Hardware purchases and planned upgrades were planned around the roll out plan  When we purchased FSCM, there were additional technical components required to connect the software  XI communication software proved to be a complex technical piece causing issues before, during, and after cutover  Certain programs versions included code for functionality in a release. This could not be easily changed later.  Our technical team raised concerns on system performance around high volume transactions in certain roll-out periods.

18. [ Real Experience. Real Advantage. The Helpful Place Early Strategic Plans 18 ORGANIZATIONAL TRANSITION Org Impact Assessment Training Strategy  Change Management  Determine if there are significant impacts on the organization that need special consideration  Training  Determine how end users will receive training and what communications are necessary  Organizational impacts  What people internally and externally are impacted by the changes brought by this project?  Do we need a central team to maintain master data as this could lead to new teams and roles  Do the new process changes eliminate current roles or require new roles to be defined?  Will Segregation of Duties (SoD) impact the design of process roles and user access provisioning  Training  How many people will need to be trained?  Do we use external training resources or do we use a train-the-trainer approach (Super Users)  Do we use classroom training or web training or a combination?  Documentation – Where will all business policy, control, design, and training documentation be stored? Is there a central repository?

19. [ Real Experience. Real Advantage. The Helpful Place Early Strategic Plans 19 Example - Early strategic roll out plan

20. [ Real Experience. Real Advantage. The Helpful Place 20  Introduction  Overview of Ace Cutover Methodology for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take Aways Agenda

21. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans 21 Early Strategic Plans Detailed Cutover Plans Controlled Hypercare Strategic Rollout plan Internal Controls Disciplined Project Management Cutover Technical Strategy Org Impact Assessment Training Strategy Certification of testing Detailed Cutover Plan Training Org Change Mgmt Execute Cutover Plan Issue Management Conversion Validations Metric Reporting Bus & Tech Validations Transition to Operations Defect & Issue Mgmt

22. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  Dedicate a project manager(s) to plan, assemble, and manage the detailed activities needed for the cutover plan well in advance of the actual implementation.  Pick the “cutover manager(s)” carefully. This person(s) must pay attention to detail and be extremely thorough. 22 Look at how the stress of the cutover turned me gray! (not actually me)

23. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  Solicit information from known and unknown stakeholders:  Who are all of the stakeholders?  What needs to be done?  What is the sequence of the activities?  Business and technical team members need to determine proper sequencing of activities based on interdependencies.  Who needs to know the status of the activities?  Who needs to be communicate to?  What needs to be communicated?  How does the status need to be communicated?  Conference status calls? Email? Intranet? Extranet?  How often does the status need to be communicated? 23

24. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans 24 BUSINESS PROCESS  Certification of New Business Process  Final testing activities to certify the systems (QA Certification)  Document Business validation procedures for conversions  Test user access roles based on Segregation of Duties (SoD)  Be involved in the test run (“Mock test”)  Business Shutdown & Controlled Start  Define systematic business pre & post cutover steps/validations Certification of Testing Detailed Cutover Plan

25. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans 25  QA Certification – bring all testing activities to completion  The team will test for a year if you let them, there’s always “just one more test”  Business user acceptance testing  Business determines the functionality is working as designed  End-to-end testing is complete (includes regression testing) – test interdependencies of all systems throughout all areas of the company (internally & externally)  Quick Statics  During phase 3 cutover – Order To Cash, there were 1187 test scenarios  Defect management  Determine if all defects need to be resolved before cutover. Risk rank defects: 1 = Cannot go live with cutover until resolved 2 = Workaround exists, can go live, must be fixed within 30 days of cutover 3 = Cosmetic, Does not impact system functionality  Security (role) testing  Do the users have access to the needed T-Codes?  What “special” roles are needed for cutover?  SoD – Segregation of Duties – users should only have access to what they need

26. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  Determine Technical and Business Validation steps  Technical  Ensure core systems and processes are successfully up and running from a “technical” perspective  Be specific as to what will be tested - Have a plan  Business  Validate business functionality  Be specific as to what will be tested - Have a plan  How much testing during cutover?  Determine adequate level of validations before moving on to next steps in project plan  Sign-offs  Consider capturing sign-offs from technical and business staff that validations were successful enough to move on to the next activities  Don’t forget to make the auditors happy! 26

27. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  Business Shutdown & Controlled Start  Define systematic business cutover steps/impacts  Shutdown = business & technical activities to temporarily stop processes to prepare for cutover execution  Controlled Start = business & technical “baby steps” to test core functionality on a limited basis before turning on processes stopped in Shutdown  Shutdown examples:  Freeze on Master Data (Pricing, Vendors, Customers, etc…)  No G/L account changes  Hold Sales Orders before conversions from legacy to SAP  Controlled Start examples:  Create 1 of each “flavor” of a purchase and sales order  Create an invoice and validate the journal entries are correct 27

28. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans 28 TECHNICAL IMPLEMENTATION Detailed Cutover Plan  Technical Components  Potential new hardware/software changes may require a test run to ensure system stability (“performance test”)  Technical installations may require a test run (“Mock test”)  Alignment to Business Process  Define technical cutover steps/impacts/validations  Align the technical installs to the best timelines surrounding the defined business impacts  Contingency Plans  Define risks that could impact the implementation. Build contingency plans for those risks identified as critical.  Define back-out strategies and plans  User Access and IT Controls  Define and set up security requirements Certification of Testing

29. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  “Mock” cutover simulation recommended  Practice executing the cutover project plan in the “war room” until you get it “right”  Benefits of “mock” cutover  Uncover and resolve issues with design, timing, and sequencing of activities.  Execute risk response plans (what if execution doesn’t go “right”?)  Ensure the primary & backup resources can successfully execute the plan  Simulation harvests a comfort-level based on preparedness and readiness at go- live for the entire project team.  Will most likely not be a one-time activity – allow iterations of this process to also test risk response, contingency, and back-out plans.  Make this process a well-oiled machine before going live! 29

30. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  Quick Statistics on Phase 3 SAP “mock cutover” at Ace Hardware  14 data conversions  Approximately 1000 transports + hundreds of legacy code changes (COBOL,.NET, Broker, etc…)  4 “mock” cutovers were needed before smooth operations were achieved (24 * 7)  1 st – 9 days  2 nd – 7 days  3 rd – 4 days  4 th – 3 days  (23 days total) 30

31. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans 31 ORGANIZATIONAL TRANSITION Org Change Management Training  Cutover Management  Discuss any special cutover security requirements  First, draft high-level implementation plans for review. Then build the detailed steps into a project plan (at minute increments if necessary)  Communicate cutover plans to all people impacted – garners inclusion, enthusiasm, and ownership.  Logistics planning for project team support activities necessary during the cutover and hypercare time periods (issue mgmt and escalations, coverage schedules, etc.)  Change Management  Training for support teams for new support activities  Training  End User Training materials, final training schedules, logistics for training classes, end user communications  End User Training and communications Detailed Cutover Plan

32. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans  Goal: Transition from the project teams to the organization  Examples of training  Edit and publish training materials  Execute Classes, Webinars, User guides, Online/on-demand learning  Examples of Business Policies to be communicated  Fixed asset capitalization limits  Types of asset costs to be capitalized  Approval process for inbound freight invoices (domestic)  User role approval matrix – who authorizes which roles per department?  Get all the stakeholders excited and involved!  Hold question and answer sessions  Create an informational web site (intranet/extranet) – let everyone know what is going on & when.  Internal staff  Trading partners  Customers 32

33. [ Real Experience. Real Advantage. The Helpful Place Detailed Cutover Plans 33 Example – High level plan Extract Open AR from JDE 2AM – 3AM Transports & Validate 4 AM – 9:30 PM Fri 5/14Sat 5/15Sun 5/16 Extract Stmt Data 3AM – 3:30 AM Load & Validate Statement Data 2:00 PM – 5:00 PM Load and Validate Open AR 3:00 AM – 1:30 PM Install legacy and WMS changes Executive approval to begin cutover B System start-up Extract Print Flags, Area / Location, Routes, Customer Retail Prices Levels by Dept, Credit Master Load & Validate Credit Master Data 10:00 PM – 9:30 AM 3 Convert & Validate GA01 Open Sales Orders 8:00 PM – 11:00 PM Load & Validate Area / Location Update Article 1:00 PM – 5:30 PM Load & Validate Service Articles 10:00 PM 12:00 AM Load & Validate Print Flags 10:00 PM – 1:00 AM Load & Validate AR Commitments to FSCM 2:00 PM – 8:00 PM Load & Validate Customer Retail Price Levels By Dept 10:00 PM – 3:30 AM Load & Validate Routes 1:00 PM – 3:30 PM Load & Validate Credit Collections 2:00 PM – 7:00 PM Load Purchase History for Hotsheets 9:00 PM – 2:00 AM Add SAP Invoice numbers to On Base Index 2:00 PM – 3:30 AM Load & Validate Credit Data: Loans, Stock & Notes, International Approved Bulletin Order Amounts 2:00 PM – 4:00 PM 2 BI Quiet Time 11:30 PM – 6:30 AM Post receipts Queued in WMS 6:30 AM – 8:30 AM 6 5 B I/ECC Transports 10 PM – 11 PM B I/ECC Manual Steps 11 PM – 12 AM BI Only Transports 12 AM – 12 PM B I Manual Setup 12 PM – 2 PM Load & Validate Articles for GSI 2:00 PM 5:30 PM 4 B - Indicates system back up, backout, & decision points

34. [ Real Experience. Real Advantage. The Helpful Place 34 Detailed Cutover Plans Example – Detailed plan

35. [ Real Experience. Real Advantage. The Helpful Place 35  Introduction  Overview of Ace Cutover Methodology for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take Aways Agenda

36. [ Real Experience. Real Advantage. The Helpful Place Cutover 36 Early Strategic Plans Detailed Cutover Plans Controlled Hypercare Strategic Rollout plan Internal Controls Disciplined Project Management Cutover Technical Strategy Org Impact Assessment Training Strategy Certification of testing Detailed Cutover Plan Training Org Change Mgmt Execute Cutover Plan Issue Management Conversion Validations Metric Reporting Bus & Tech Validations Transition to Operations Defect & Issue Mgmt

37. [ Real Experience. Real Advantage. The Helpful Place Cutover  Execute the “actual” cutover just like practiced in the “mock”!  The actual implementation “cutover” time period could take one day, one week, or several weeks. There can be one or many cutover time periods for a project.  Your dedicated cutover leads will manage/control this process.  Cutover team (primary & backup) task owners are ready-to-go  Install “Escalation Committee” – decision makers/management are available to make authoritative decisions  Non-project team members also participate in the cutover activities.  STICK TO THE PROJECT PLAN  No “Cowboying” – do not deviate from the project plan unless it was already validated in the “mock” cutover as a risk execution tactic  Execute from the established “war room”  Physically centralize the cutover team for synergistic execution and problem solving 37

38. [ Real Experience. Real Advantage. The Helpful Place Cutover 38 BUSINESS PROCESS  Business Shutdown & Controlled Start  Execute steps in the cutover plan  Validate system conversions  Document any one-time cutover or conversion activities Conversion Validations Execute Cutover Plan Validations Technical = ensure core systems and processes are successfully up and running from a “technical” perspective (before handing off for Business Validations) Business = validate business functionality is correct

39. [ Real Experience. Real Advantage. The Helpful Place Cutover 39 TECHNICAL IMPLEMENTATION Execute Cutover Plan  Technical Components  Execute steps in the cutover plan  Validate and double-check all installs (last run of old systems & first run of new systems)  Contingency Plans  Execute back-out plans or contingency plans (if needed)  User Access and IT Controls  Use cutover security  Implement user access to the system  Execute & document any one-time cutover or conversion activities  Remove cutover security at adequate time  Alignment to Business Process  Work with business staff in War Room to validate systems as they are activated or conversions are completed Conversion Validation

40. [ Real Experience. Real Advantage. The Helpful Place Cutover 40 ORGANIZATIONAL TRANSITION Issue Management  Cutover Management  Validate steps in the cutover plan are executed  Co-locate the project team to a central location to expedite reaction time to issues (WAR ROOM)  Monitor issues and risks  Follow issue escalation processes in place with the support teams  Status reporting and communications to all impacted staff  Change Management  Provide assistance to end users as systems are activated and users are given access Keep a log of all significant issues and appropriately follow up based on prioritization and urgency until closed Execute Cutover Plan  COMMUNICATE!  Let all stakeholders know which milestones were completed, are executing, and coming up so they can understand where they are at in the cutover plan.

41. [ Real Experience. Real Advantage. The Helpful Place 41  Introduction  Overview of Ace Cutover Methodology for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take Aways Agenda

42. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 42 Early Strategic Plans Detailed Cutover Plans Controlled Hypercare Strategic Rollout plan Internal Controls Disciplined Project Management Cutover Technical Strategy Org Impact Assessment Training Strategy Certification of testing Detailed Cutover Plan Training Org Change Mgmt Execute Cutover Plan Issue Management Conversion Validations Metric Reporting Bus & Tech Validations Transition to Operations Defect & Issue Mgmt

43. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare  Once systems become active, system defects can cause chaos quickly if there is no clear escalation path  You must have a formal escalation path for everyone impacted by the changes (project team and support teams, end users, external touch points, etc.)  There must be formal structures in place to make decisions in a timely manner  Consider appointing “super users” (experts) to be main contact for initial issue evaluation. They will determine if issue exists, suggest workarounds, and prioritize business impact  Hypercare should last for a pre-determined amount of time with resources co- located in a central place  If there is no planned end for Hypercare, it will keep going and going and going…. 43

44. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 44 End User Super User Project Team Support Groups Care Center/Help Desk Super Users are first line of support for end users Project team members to assist the Super Users Project team members and operations staff monitoring systems will find issues End Users and Super Users will find issues Project Team Project team members and support staff will resolve issues/incidents/defects Operations Retailer Note: Super users for Retailers are part of the Support Desk (retail) Log in System Example – Problem Escalation

45. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 45 BUSINESS PROCESS  Controlled Start  Continue to execute steps in the cutover plan to monitor systems are functioning as expected  Monitor business metrics to ensure issues are found and resolved quickly  Follow issue escalation processes in place with the support teams  Work with technical teams to rank and prioritize business critical defects to be fixed Bus & Tech Validations Metric Reporting Defect & Issue Mgmt

46. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 46 Example - Business Metrics Reporting for Order to Cash cycle

47. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 47 Example - Metric results for Order to Cash cycle

48. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 48 Example - Business Impacts / Key Issues Log

49. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 49 TECHNICAL IMPLEMENTATION  Technical Components  Continue to execute steps in the cutover plan to monitor systems are functioning as expected  Monitor first time jobs run, etc..  Follow issue escalation processes in place with the support teams  Manage defects and implement fixes in a controlled manner (follow release management processes to ensure controls are followed) Bus & Tech Validations Defect & Issue Mgmt Formal daily/weekly meetings with business and technical teams Prioritize defects based on business & technical impact, cost, and available resources Determine which defects need immediate resolution (“emergency”) and which can go into a scheduled software release (“planned”) Formal approval for “emergency” defects to be implemented

50. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 50 TimeTypePurposeResponsible/Attendees 8:00amReportOperations review (i.e. jobs not run, etc)IT Ops Lead, IT SE Lead 9:00amMeetingEmergency incident review - Close incidents and changes from prior day - Call out significant incidents remaining open Cutover Lead, IT Ops Lead and Prod Services Lead, IT Director, IT SE Lead 9:30amMeetingKey Incident/Defect Review - Review key incidents/defects and prioritize Cutover Lead, IT SE Lead, Business Leads 3:00pmReportBusiness metrics complete - Send business metrics for the day to cutover leads Metrics report lead, Metric owners 4:30pmMeetingBusiness Impact review -Review Business Metric report (including incident/defect metrics) - Review PMO escalation list Cutover Lead, IT Director, Business Owners, PMO 8:00pmReportOperations review (i.e. jobs not run, etc)IT Ops Lead, IT SE Lead All meetings to be 30 minutes in duration !! Example - Daily Status Activities in Hypercare

51. [ Real Experience. Real Advantage. The Helpful Place Controlled Hypercare 51 ORGANIZATIONAL TRANSITION  Cutover Management  Continue to validate steps in the cutover plan are being executed to monitor systems are functioning as expected  Co-locate the project team AND support teams to a central location to expedite reaction time to issues (WAR ROOM)  Monitor issues and risks  Follow issue escalation processes in place with the support teams  Status reporting and communications to all impacted staff  Change Management  Follow up with End Users, provide sandboxes for ongoing training  End User Training and communications  Ensure any new support teams are included in issue escalation process Transition to Operations Bus & Tech Validations Created “user pods” after cutover where users for each functional area had a central location to meet and “practice” in the system. Project team members were assigned to each pod to answer questions.

52. [ Real Experience. Real Advantage. The Helpful Place 52  Introduction  Overview of Ace Cutover Methodology for Projects  Early Strategic Plans  Detailed Cutover Plans  Cutover  Controlled Hypercare  Key Take Aways Agenda

53. [ Real Experience. Real Advantage. The Helpful Place Key Take Aways 53 BUSINESS PROCESS BUSINESS PROCESS Certification of new Business Process Business Shutdown Controlled Start TECHNICAL IMPLEMENTATION TECHNICAL IMPLEMENTATION Technical Components Alignment to Business Process Contingency plans ORGANIZATIONAL TRANSITION ORGANIZATIONAL TRANSITION Training Change Management CUTOVER FRAMEWORK Using a disciplined project management method to implement SAP systems should lead to a boring Go Live and Hypercare  Early strategic plans  Detailed cutover plans  Cutover time period(s)  Controlled Hypercare User Access and IT Controls Cutover Management

54. [ Real Experience. Real Advantage. The Helpful Place Key Take Aways  These methods can be applied to any project  Cutover management is a project within itself at times  War room tactics are critical to success during the implementation  Stick to the Plan  No Cowboys or Cowgirls  Focus on a controlled business start – avoid the chaos  Formal issue escalation process is critical  Follow a disciplined defect prioritization process  There will be issues, it’s how you react to the issues that determine your degree of success 54

55. [ Real Experience. Real Advantage. The Helpful Place Questions? 55

56. [ Real Experience. Real Advantage. The Helpful Place 56 ]  Thank you.  Brenda McCue – bries@acehardware.combries@acehardware.com  Jeff Boone – jboon@acehardware.comjboon@acehardware.com