SAP RE-implementation

Whether you are doing a single instance reimplementation, a system consolidation, or an upgrade rollout you will need to blueprint the differences between your current state and what needs to change for your future state.  Depending on your SAP reimplementation approach there are several key considerations in the SAP reimplementation blueprint. 

All three approaches require a few key steps: 

1. rationalize your landscape,
2. consolidate your functionality scope,
3. evaluate data differences and consolidate custom field requirements,
4. inventory and eliminate as much custom code as you can,
5. design for usability

SAP System of Record

Probably the first decision will be the SAP system of record.  This simple concept seems to escape many consultants, clients, and project managers.  Deciding which system will be the “source of truth” for any particular processing stream is critical.  That decision determines landscape architecture, how data conversion decisions are made, interfaces, and how to reconcile data.  I’ve seen so many meetings and discussions which spin forever because there is no clearly defined “system of record” for a particular processing stream.

If you have a single instance of SAP and are looking to undo some of the prior custom coding then this decision is easy.  If you have a diverse SAP landscape it would be hard to imagine that you do not have one of them that you do financial consolidations or house a central chart of accounts.  That system would most likely be the candidate for the “system of record”.

Depending on how fragmented your SAP landscape is with multiple SAP instances in various locations the decision may not be so easy.  Even with a central system where you do financial consolidations or official reporting it may not be the best candidate if there has been a lot of custom development work.  One of the “satellite” SAP instances may be a better starting point if it has remained fairly close to standard.  You will have to carefully evaluate which system works best for your needs.  Ideally this system would be the one which has the least amount of custom coded requirements.

SAP Organization Structure

You will want to take a hard look at reconciling and adjusting your SAP organization structure.  Whether it is a system consolidation, a rollout, or a single system reimplementation the organization structure is the base you build the system on.  The organization structure becomes the foundation for your master data requirements, reporting requirements, and key functionality decisions. 

A properly done organization structure can enhance reporting functionality without dramatically increasing the amount of master data maintenance.  However when it is poorly designed, as you may have discovered, it can create a data maintenance nightmare and still not provide key actionable information.  This raises another consideration for a re-implementation –, if you have a significant investment in custom developed reports they will need to be revisited.

In some cases, even the extra expense of the additional reporting requirements may be justified if the new organization structure provides you with enhanced reporting capabilities or simplifies some of your processes.  The key to remember here is to look past the short term to the TCO (Total Cost of Ownership).  If the changes might have a 3 – 5 year payback horizon it may be justified.  Especially when you consider any future upgrades with the more “stable” organization structure, quicker turnaround, lower cost, less regression testing, outside talent which can come up to speed quicker, etc.

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

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Related Posts:

• SAP Reimplementation Method Key Considerations
• SAP Reimplementation for Little More Cost than a Technical Upgrade Part 2
• SAP Reimplementation For Little More Cost than a Technical Upgrade Part 1
• How to Execute an SAP Reimplementation
• SAP Offshore Development Project Experience

SAP Reimplementation

Among three variations for SAP software re-implementations there are two key approaches.  You either make the changes to your existing production system (or a cloned copy of it) or you make the changes in a pristine, newly designed environment. 

SAP Cloned Production System “Re”-Implementations

Making changes in your existing production system (more likely in a cloned instance of it) helps ensure data consistency and ease of adjustment, however there are several difficulties involved.  If you have a significant number of custom-coded solutions you will have to fight them every step of the way.  You will have to work around them, deal with them throughout the process, adjust any out of date coding, and most likely will end up keeping many of them.  As you can tell, I’m not a big fan of an SAP reimplementation in a production system with lots of custom coding.

You either make the changes in your existing production system or in a newly installed instance with no data.

For example if you decided to consolidate organization structures from a multi-system environment you might quickly discover lots of hard coded values in custom programs.  These hard-coded values in the programs themselves, rather than using table driven values and parameters, can cause system consolidation nightmares.  This is just one type of problem from many of the custom-coded solutions so often provided.

Another problem occurs with any of the existing system configuration.  If you make changes to existing objects that are already in production you have the challenge of timing and coordinating your cutover to prevent disruption to existing processes.  Depending on your circumstances if you decide to do a transition in your own production system with the eventual goal of moving away from it and into  cleaner environment then it may be best to create all new custom configuration objects.  You have to make that determination.

Clean SAP Re-Implementation with Old Legacy SAP for History

The other approach to SAP re-implementation is to do a re-implementation in a clean, non-modified system.  That approach assumes that after conversion to the newly designed environment you will leave your old “legacy” SAP system in place for reference and historical data only.  Using a new system for a re-implementation means that you do not have to work around any of the bad setup or design decisions that were made previously.  You avoid all of the headaches with the custom programs and only bring in those custom programs that are really business critical.

If necessary, and if you already have a BI / BW / or other reporting system it will require some additional work to integrate old data structures with new.  However even that will be easier with standard functionality.  The SAP BI / BW / BObj reporting options already contain a number of standard extractors that can be used more easily and with less expense.

The Optimum Solution is a Phased SAP Global Instance Harmonization

The most cost effective way I have found over the years to do a reimplementation is to bring in an operation that is moving to SAP in a “clean” environment.  It is not particularly complicated to integrate two SAP systems using ALE (Application Link Enabling).  In this way you create a new environment, with more up to date and more standard functionality that you can eventually migrate other business units into.

As upgrade projects occur it is only incrementally more expensive to migrate the upgraded companies into the less customized environment.  With an upgrade you still have to do the custom ABAP program reviews, code validations, etc.  With a cleaner environment that does not have all of the custom coded artifacts it is much easier to pick and choose what is really of value and what can be replaced by new, or better understood functionality.

For additional rollout locations there is virtually no additional cost over the rollout project for bringing those companies or organizations onto the more standard SAP environment.  In fact, the reduced custom coding would tend to be less expensive because the amount of time spent regression testing custom functionality, or fixing any organization specific settings, as well as training people how to deal with some of the custom functionality would be lower.  Consulting time, and therefore consulting cost, would be lower as well because the closer you stay to standard the larger pool of resources there is available to make or adjust system settings rather than work with custom programs.

SAP Organization Structure and Master Data Harmonization

One other possible project approach is to do the SAP Org Structure harmonization in all of the separate SAP global instances and then agree on the common master data types.  At “go-live” you extend all of the existing data in each production instance to begin executing with the new structure and master data types in each production instance.  By doing this, the “legacy” data and “legacy” org structures stay in place so that little or no business disruption occurs.  A transition period of approximately a year is needed to complete at least one full annual financial close under the new structures and data in the existing production system.

By using this approach you are actually making the transition in two-steps.  First you build out the new state in your existing system,  then after flushing out and adjusting most of the issues you do a conversion or cutover to a clean system after a financial close.  This approach allows for an orderly transition from the old to the new with relatively little business disruption.  While the old SAP org structure elements and master data types are being made “obsolete” they are still available for all processing and reference purposes.

Some of the key considerations for this approach involve what to do with custom coding and how to transition the master data.  It is impossible to know what custom coding is in place that might be replaced with standard functionality.  However some new data types may help resolve the issue of moving off the custom coding in the same system.  Eventually the goal would be to upgrade away from the custom coding and into more standard functionality unless there is some clear business justification preventing this.

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• Key Design Considerations for SAP Reimplementation
• SAP Reimplementation for Little More Cost than a Technical Upgrade Part 2
• SAP Reimplementation For Little More Cost than a Technical Upgrade Part 1
• How to Execute an SAP Reimplementation
• Technical SAP Upgrade or SAP Reimplementation

SAP Reimplementation

Some time ago I started a series on doing an SAP reimplementation for little more cost than a technical upgrade.  While I have done these, there were also a couple of interesting scenarios that added new complexities which needed to be addressed.  For example, how do companies deal with a seriously fragmented application landscape?  This is esepcially true in large enterprises where each company code, location, business unit, or other area decided to implement their own SAP applications independent of the others.  Then there are the companies with rollouts or upgrades underway.  For them the situation is a little different.  As a result I have decided to try to wrap this up with a focus on three key types of situations outlined below.

To review the previous posts on this topic, please see:

• Technical SAP Upgrade or SAP Reimplementation
• SAP Reimplementation For Little More Cost than a Technical Upgrade Part 1
• SAP Reimplementation for Little More Cost than a Technical Upgrade Part 2

This topic is difficult just because there are so many “dimensions” of options to consider. As a result I’ve narrowed the focus to a few key areas.

Primary SAP Reimplementation Approaches or Options

As I pondered it more, and looked at the re-implementations I’ve done, as well as some of the system assessments and options, I finally decided to “bracket” them with a few key approaches. Because the numbers of options for re-implementation are too significant to address here I decided to stay at the high level to cover the major approaches.

1. A reimplementation of a single SAP production instance.
2. Integrating a landscape with multiple SAP production instances onto a single global instance.
3. Rollout – whether it is an ongoing project that is not complete or a fully implemented system and you are considering an upgrade.

SAP Reimplementation Assumptions

As I wrote previously, one of the crucial considerations for a re-implementation is to move away from Software Engineering and toward business process engineering. First, let’s establish a few very basic assumptions about an SAP reimplementation:

1. After you went live, or as you continued to roll out your solution, you discovered several “if we had known “x” we would have done “y.”
2. Or, you may have incorporated a significant amount of custom code, or custom application development (inside or outside of SAP) and discovered that standard functionality would have met about ~90% (more or less) of your requirements (see SAP Implementation Focus, Software Engineering or Business Process Engineering?).
3. You’ve already worked through the hard stuff in your original SAP implementation (see the section by this same title in SAP Reimplementation For Little More Cost than a Technical Upgrade Part 1). In other words, the hard decisions around the processes, organizational structures and data types have already been made.
4. You may have additional functionality or other modules you want to implement and find that custom coded “solutions” are making them difficult to bring in.
5. The custom-coding is requiring significant amounts of time for break-fix testing, integration testing, regression testing, SOX or other regulatory compliance when any new change is added.
6. As new regulatory or other industry requirements are established, in whatever jurisdictions your company operates, you have to custom-code new solutions to meet them (rather than using SAP’s standard maintenance to add the new functionality).
7. The time to work around all of the customized “solutions” when you want to add new functionality, or new modules, takes a significant amount of time.
8. In some cases adding on brand new functionality is nearly impossible because of how much your system was “hacked together.”
9. You need to upgrade, but there are probably hundreds, and in some cases thousands of custom programs to evaluate, test, integrate, and update to the newer version of ABAP.

Coming up we will start to review the three key types of re-implementations: a single production instance, consolidating multiple instances into a single global instance, and a re-implementation rollout.

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• SAP Reimplementation for Little More Cost than a Technical Upgrade Part 2
• SAP Reimplementation For Little More Cost than a Technical Upgrade Part 1
• Key Design Considerations for SAP Reimplementation
• SAP Reimplementation Method Key Considerations
• Technical SAP Upgrade or SAP Reimplementation

ASAP Methodology Background

In the mid 1990’s SAP had gained a significant amount of bad press and publicity around several high profile project disasters that the company knew were completely avoidable. At that time Oracle, Baan, JD Edwards, and PeopleSoft all had sales people making the case that SAP was too expensive, too complicated, and took too long to implement. In response SAP released the ASAP Methodology in the mid-late 90’s (around 1996 or 1997) because of the number of SAP projects that were going over time, over budget, and were at risk. It has been refined, polished, enhanced, and adjusted with SAP’s supported R&D resources and efforts for about 15 years now.

The ASAP implementation methodology has leveraged the PMI (Project Management Institute) best practices around project delivery and the Carnegie Mellon CMMI (Competency Maturity Management Integration) approach for maturing the delivery process. The ASAP methodology also includes a number of ITIL (Information Technology Infrastructure Library) components in the Phase 6 Run and the ValueSAP portions of the methodology. Agile techniques are an option which can be “turned on” if you like.

The toolset includes an implementation “Roadmap” which is a WBS based project template. It has full explanations, templates, tools, resources, checklists, etc. Together with that the original version also included an MS Access, and then an MS SQL Database application for selecting your solution options which would then generate a list of processes, transactions codes, template BPPs, and a full SAP centered Blueprint document, etc.

Today all of that functionality is still available but it is housed in Solution Manager. The ASAP Roadmap is just ONE component of the entire ASAP Methodology. The Roadmap is focused on effective Program or Project Management for accelerated project delivery with high quality results.

My Experiences with the SAP ASAP Methodology

I was originally certified in the ASAP Methodology in 1998 while at Grant Thornton. In that time I have had the privilege of using ASAP on several projects and as the project manager on a few. One consistent result of using the methodology is that projects are delivered and they are usually delivered on time and on budget (although not always).

Every major SAP system integrator claims some methodology and nearly all of them are similar to, or variations of the SAP ASAP Methodology.

I have only ever seen significant problems with ASAP when a system integrator started to use the methodology and then abandoned it part way through the project. At one recent client I used it as the framework to support a LEAN implementation methodology. That LEAN methodology has served as an ongoing framework to significantly accelerate numerous rollouts at probably 25% of the normal implementation cost of other SAP projects.  This was driven by the client project manager and facilitated by using the ASAP tools. 

Starting with the ASAP Methodology

Even before the first consultant comes on board the ASAP methodology provides templates and resources to cover key project and program management areas such as

• communication planning
• decision making
• risk management
• project management master planning
• resource planning
• steering committee tools
• external links to best practice resources for reference (PMI, ITIL, Internal SAP, etc., etc., etc.).

Why ASAP Instead of a System Integrator Methodology?

First, I have nothing against the system integrator methodologies and some are very good with great resources. Unfortunately my experience has been while they have them, and may start with them, they rarely stick to them throughout the project. Since it is their methodology you have little or no insight to cross-check or validate their methodology use.  With ASAP it is yours to use as an SAP customer and you have full insight into it and control over its use.

One of the primary reasons for using the SAP ASAP Methodology is like all things SAP there has been a mountain of R&D spend, development, adjustment, and support. Every SAP client (large or small) who uses the ASAP methodology can avoid the “proprietary methodology lock-in” which the system integrators will walk out the door with. Another important reason is you own it as part of the standard Solution Manager offering. 

As you probably know Solution Manager is already a required part of your SAP landscape.  The SAP Solution Manager portion of the ASAP Methodology can house key items related to scope, configuration, documentation, the implementation roadmap, and all of the key deliverables. As the system integrator rolls off the project you have a centralized repository which is SAP specific for any future employees, support, upgrades, etc. You do NOT get that with a “custom” system integrator methodology which is probably based significantly on SAP’s ASAP Roadmap to begin with. Using an SI methodology you will NOT get the full configuration and development scope monitoring tools which Solution Manager contains either.

The entire ASAP Methodology is part of your application licensing and support you pay for. Why not at least take it for a test drive and see what it can do.

For more information on the SAP ASAP Methodology for SAP customers use your SAP OSS ID and log onto http://service.sap.com/asap .

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• SAP System Vendor Project Success Criteria 1
• SAP IT Governance, SAP Program Management, SAP PMO Metrics
• 7 Tips for Effective Client Management of SAP Consultants
• SAP Program Management Requires a Type of CMMI
• Steering Committee Governance for an SAP Center of Excellence

SAP Program Success

SAP Program and SAP Project Management can be tough.  In a recent Focus.com expert discussion the issue was raised about who a Project Manager or a Program Manager should be accountable to on business application projects.  Should it be the business or IT?  To help clarify the accountability I asked a simple question of what deliverables, metrics, and tasks would be required?  By knowing what mechanisms the program or project manager(s) would be accountable it would be possible to determine who they should answer to.  There was a nearly universal lack of response.  In other words, how do you measure performance and how do you help to ensure results if you don’t even know what the individual, group, program, or business endeavor is going to use to measure accountability?

The most frequent response around accountability for program or project managers was a call for ”independence.” So when I raised the issue of project manager or program manager accountability, metrics, performance, and how to ensure project messes are avoided there were no takers.  Is it any wonder so many business application projects and programs get into trouble, go over budget and time?

SAP Program and Project Management Office Success

A good Program or Project Management Office provides the resources needed for delivery project participants to be successful.  Without this focus the value of an SAP Program or SAP Project Management Office is not realized.  The U.S. Department of Energy did a good review of performance and benchmarking for project management.  And while this was applied to a government program there is a lot of valuable insight for any SAP project or business application project [FN1].  

The U.S. Department of Energy had a committee evaluate success criteria and offered four sets or categories of performance measures to cover the 30 possible discrete measurements of project or program success.  Those four sets or categories were [FN1, pg. 1]:

• Project-level input / process measures. Assess the resources provided to deliver an individual project and the management of the project against standard procedures.
• Project-level output / outcome measures. Assess the cost and schedule variables of an individual project and the degree to which the project achieves the stated objectives.
• Program- and department-level input / process measures. Assess the total resources provided for all projects within a program or department and the degree to which program- and department-wide goals for projects and their management are met.
• Program- and department-level output / outcome measures. Assess overall project performance and the effectiveness of completed projects in supporting program and department missions.

Without this type of analysis and evaluation your project may be headed for trouble before it even begins.  When you start your large business application project what type of deliverables, output, or results do you expect from those who are leading the projects?  How will you measure and evaluate their performance?  If your evaluation of their performance is focused on how well they support the success of delivery teams, along with how well the projects are delivered (budget, scope, schedule, and quality) then you will be measuring the key project delivery values for success.

That same U.S. Department of Energy study provided guidance on the key components for a successful performance measurement system of program or project managers which can be applied to business software projects like SAP.  They noted key components of an effective performance measurement system include [FN1, pg. 7]:

• Clearly defined, actionable, and measurable goals that cascade from organizational mission to management and program levels;
• Cascading performance measures that can be used to measure how well mission, management, and program goals are being met;
• Established baselines from which progress toward the attainment of goals can be measured;
• Accurate, repeatable, and verifiable data; and
• Feedback systems to support continuous improvement of an organization’s processes, practices, and results.

The Answer for SAP Program and SAP Project Management Results

Over the years I have found the SAP ASAP Methodology helps to ensure SAP Project delivery.  The entire methodology is focused on project participant success; budget, time, and scope control; and quality control for project delivery. 

My non-cynical assessment for why it is not more widely used is because many SAP Program Managers and SAP Project Managers have not be trained to use these tools (or Solution Manager which contains them).  On the other hand there are some SAP Project and Program Managers who have a financial motive that can not be ignored.  They do not use the ASAP Methodology because it makes a client less dependent on them.  After all, why do you need an expensive program manager to deliver tools, templates, resources, guidance, quality control, and measurement utilities if you have a methodology that already contains all of this with step by step instructions to use it?

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[FN1]  Measuring Performance and Benchmarking Project Management at the Department of Energy. http://management.energy.gov/documents/performance_measures_final.pdf

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• Why Use the SAP ASAP Methodology?
• SAP Program Management Requires a Type of CMMI
• Steering Committee Governance for an SAP Center of Excellence
• SAP System Vendor Project Success Criteria 1
• The Top 5 ERP Success Factors by Project Stage from 22 Critical Success Factors

ABAP Development Revolution

Some time back I wrote about Opportunities for INNOVATION SAP, HELLO? At the time I wasn’t really expecting a lot and I’m guessing I didn’t have a lot of influence but I do find it coincidental that many of the suggestions I offered have been adopted. Some of them, like the switched framework to improve order management processing is included in ECC 6.0 EP4.

So, one thing that I have been chewing on for a long time is how to dramatically improve ABAP development and overall application enhancements.  My own requirements were to find a way to make ABAP coding simpler, improve code quality, provide better overall system performance, and make it easier to troubleshoot. Tall order I know. Impossible? No!

Welcome to the “Big Data Revolution”

This post is more about a technical issue which SAP can “easily” address that would completely revolutionize its own internal development as well as external customer development.

The New SAP Development Revolution

I’m not an SAP ABAP coder but over the years I’ve had enough exposure to it to see some great tools, resources and improvements. This development effort has been mostly on the usage side of the existing syntax.

• What if there was a way to revolutionize the way ABAP is coded that is 100% compatible with current syntax ?
• What if it dramatically improved coding quality and solution development?
• What if it improved the performance and consistency of customized ABAP solutions?
• What if it simplified the entire coding process AND made troubleshooting easier?
• What if it opened up a whole new world for coders to develop dramatically improved solutions?

You say that sounds crazy? Not only is it possible it would propel SAP’s place in the entire business application space to new levels.

Where Did This Crazy Idea Come From? And WHAT IS IT?

After many years working in SD (along with other modules) I had a client who needed help creating a new “smart” trade promotion execution solution. The solution had to do a LOT of things no standard SAP process handles. It needed to dynamically determine complex offers, with discounts, free goods, limits, caps, quotas, perform dynamic best price processing, provide loyalty points, etc. –, all while dynamically evaluating the customer segment and strata for offer eligibility.   The solution had to be done across a large population of order items, with multiple promotions based on the mix of products and the number of discounts or promotions that had already been given to a customer over time. The mix of products or offers could bundle multiple free goods, multiple offer discounts, or other special items, in a many to many relationship, based on the customer purchase and purchase history.  And performance HAD to be good because of the huge order volume.

The client had been asking for someone to deliver this for some time. A previous system integrator who did their upgrade couldn’t do it. I ended up spending 6 months working on a new custom coded ABAP “mini-module” in SAP that allowed them to achieve their goals by using mostly master data.

That process taught me more about ABAP programming and SAP coding than I ever anticipated. As I went through this process I was amazed at one simple thing that was completely lacking from all of this coding effort –, the amount of “VIRTUAL” SQL syntax for internal data processing in the form of loop, sort, read table (with key), append, move, move corresponding, index, etc.

Why not develop the syntax to handle all of this in the background through “virtual” select statements?  Create a new “iSelect” syntax which performs all of these functions that can be exploded.

SAP already uses internal tables in memory for processing data during the transaction stream.  By creating a new “iSelect” syntax much of this coding, looping, moving, etc., could be masked by fairly common SQL type commands. Since this would be compiled syntax the performance would likely be better and the quality would be FAR better while needing fewer lines of code to accomplish the same thing. For simplicity I will call it “internal SQL” or, iSQL.

This would be the perfect complement to SAP’s HANA in memory processing, and would help with reporting extractor and programming development of all kinds.

This type of iSQL could be developed to allow inner or outer joins on internal tables, external tables, or any combination of them. The normal SQL statements like Select Sum, Select Distinct, etc., etc., etc., could be employed throughout the entire ABAP processing stream. With internal tables in memory as well as the tables read from the database.  Still more interesting would be the ability to “explode the code” underneath this new iSQL syntax. When finer detailed control, processing, or calculations are needed, within or across joins, the underlying loop, sort, append, etc., could be exploded out and adjusted to fit the specific need. This would speed up development efforts by being able to quickly rough-out a data processing framework and then explode the code to make more detailed adjustments.

By focusing on syntax that is like SQL for the internal loops, sorts, reads, sums, append to table, move, etc., the coding complexity is reduced WHILE also providing more flexibility and options. SAP would have greater control over the development of the internal / external table processing standards and programming knowledge around actual data processing would improve.  This would be the perfect complement to SAP’s HANA in memory processing.

It would allow for faster, more reliable coding efforts with a higher performance result. Small performance tweaks or changes to the underlying compiled iSQL statements, along with that ability to explode the underlying code would create a revolution in the ability to more quickly and consistently deliver SAP solutions.

What is most important of all is this could be rolled out piecemeal and stay 100% backward compatible with no negative downstream effects. As new iSQL syntax is developed the original coding standards could remain in place without change. It would just add an additional set of power processing options. Think about all of the areas this would radically affect, custom coding, data conversion, SOA development, report development, function module creation, you name it. This could create HUGE customer benefits for outstanding development.

I’m tired of crappy, poor performance, system choking code from poor development, aren’t you? Come on SAP, YOU CAN DO THIS!!!!

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• Tactics, Strategy, ROI, TCO and Realizing Business Benefit from SAP
• SAP Offshore Development Project Experience
• The Real Reason Executive Participation Creates IT Project Success
• CRM, ERP, BI, and IT Investment — Where Do You Find the Business Benefit?
• Key Design Considerations for SAP Reimplementation

SAP Program Management

Many may be unaware that SAP provides a broad set of tools and resources for Program Management and Competency Maturity Management (or CMM). Very few are familiar with SAP’s broad set of supports for this purpose such as the “new” ASAP Methodology Phase 6 “Run” enhancement. It is loaded with key information which aligns with Program Management responsibilities and CMMI.

So, what is CMM (or CMMI as it is more properly referred to)?

“CMMI (Capability Maturity Model Integration) is a process improvement approach that provides organizations with the essential elements of effective processes, which will improve their performance… CMMI models are collections of best practices that help organizations to dramatically improve effectiveness, efficiency, and quality” [FN1].

The entire CMMI methodology and development is maintained at Carnegie Mellon’s Software Engineering Institute. These CMMI standards have been applied in a vast number of organizations together with various methodologies. The CMMI approach is well suited to engineering and software development, design, or implementation. SAP’s entire ASAP methodology, and especially the “new” Run methodology incorporates a number of CMMI principles.

SAP Program Management is all about Competency Maturity Management (or CMM)

The contract SAP program manager is accountable for providing the key tools, templates, techniques, and resources to ensure projects are properly managed and delivered for business benefit. If they are not providing this type of methodology guidance, including key templates and techniques to deliver business benefit, what are you paying them for?

SAP Program Management or Project Management Gaps

After all these years one of my biggest frustrations is the lack of SAP contract program or project managers use of the ASAP Methodology. They all talk about it, and during sales presentations they use lots of SAP’s material, but as soon as the project begins you never see it. They seem to have absolutely no idea what they are doing.

As I have often said, I never believe that a client / customer of project management or program management services has the primary responsibility for this knowledge. If they did why bother hiring outside help and paying the rates for this service except for that contract “expertise?”

Contract SAP program management or SAP project management that is not able to deliver on clearly understandable methodology development are fakes. Anyone can call themselves a program manager, but what does that mean? What is the contract SAP Program Manager accountable for? What are they on the hook to deliver and how is their performance measured?

Using SAP ASAP and CMMI to Mature the SAP Enabled Enterprise

The SAP ASAP Methodology, in particular the Phase 6 Run section, should be studied by every SAP program manager before they start doing project or program work. Even though it is in the last ASAP Methodology phase, its greatest effectiveness is realized when you begin your internal SAP delivery maturity planning from the beginning of your SAP project.

One of the critical benefits of starting your CMMI related planning right from the beginning is your SAP project can be structured to support business integration at the outset. Using this type of maturity model integration as part of your project guidance can have significant benefits to the enterprise:

“Many CMMI using businesses have beneficial results to their bottom line… including improvements in schedule and cost performance, product and service quality, forecasting accuracy, productivity, customer satisfaction, return on investment, and other measures of performance” [FN2].

SAP has already done a significant amount of the work for you. All your program manager has to do is adjust the plans, alter the templates, follow the ASAP Methodology instructions, and build the resources to support this transition. You really must question SAP program manager service providers who do not keep up with the ASAP tools and delivery methodology that SAP provides and supports.

SAP’s Competency Maturity Model Starting Point

The following maturity model is just one small example of a powerful tool that is critical for long term technology and business integration [FN3]:

This model, provided freely by SAP as part of their standard ASAP methodology is a great starting point. Your contract SAP program manager should be able to use this as it is, or adjust it to fit your particular organizational needs. This is just one very small component of the Run Phase and an even smaller component of the entire ASAP Methodology toolset.

In many cases you would be better off sending your own internal employees to SAP ASAP certification courses and Microsoft Project classes and making use of their new found knowledge. At least then you would have a knowledgeable employee who could help keep an integrator who claims to use ASAP honest. And if they claim to use ASAP in their sales materials or sales pitches GET THAT CLAIM IN YOUR STATEMENT OF WORK AND YOUR CONTRACT WITH THEM!

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For more information on related topics please see:

• SAP Project Manager – SAP Program Manager, Lessons from the Trenches
• Effective Results from SAP Project Managers – SAP Program Managers
• SAP IT Convergence Beyond Business to IT Alignment
• Create SAP Convergence Instead of Business to IT Alignment
• Integrating Business Stakeholders as Part of SAP IT Convergence
• Steps to Achieve SAP IT Convergence
• SAP IT Convergence is About Business Focused Integration
• Steering Committee Governance for an SAP Center of Excellence
• Using Your SAP Steering Committee for Business Transformation

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[FN1] CMMI Overview: Software Engineering Institute at Carnegie Mellon University, retrieved November 5, 2011. http://www.sei.cmu.edu/cmmi/

[FN2] Why CMMI: Software Engineering Institute at Carnegie Mellon University, retrieved November 5, 2011. http://www.sei.cmu.edu/cmmi/why/

[FN3] SAP ASAP Methodology version 7.1, WBS 6.2.1 – Table 1: Maturity Level Characteristics. For more information on the SAP ASAP Methodology please go to http://www.sap.com/services/more/servsuptech/asap.epx

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• Steps to Achieve SAP IT Convergence
• Steering Committee Governance for an SAP Center of Excellence
• ERP and SAP Business Case for ROI, Business Benefit, and Success
• Why Use the SAP ASAP Methodology?
• SAP IT Governance, SAP Program Management, SAP PMO Metrics

Business Systems

The day after I released my last post (SAP IT Governance – Achieve Business IT Engagement) techrepublic.com published a review of the CIO future direction. While I do not agree with all of the Gartner conclusions they published I certainly agree with the “new CIO manifesto” (TechRepublic: Get drastic: 15 IT best practices to kill). Reading through the comments left on the TechRepublic post was enlightening, most of the comments focused on the details of one or two points of disagreement while missing the focus of the entire message.

Denial of the purpose of any IT initiative, especially SAP business solutions, will only lead to significant levels of outsourcing. IT areas and functions that become more like “commodities,” or, as one commentator calls these functions “taxes” on the enterprise are quick to be outsourced. While these “taxes” are necessary infrastructure components (such as e-mail, phone, wide area networks, and even PCs or laptops), other areas are starting to be seen as commodities subject to significant cuts.

SAP Consultants Must Get Serious About Customer Focused Value (or find another career)

Unless more functional SAP application consultants get serious about understanding business and helping stop the fakes then enterprise applications will become a commodity as well. This isn’t just idle speculation. Those of us who have been around SAP for 10 years or more (and some of us approaching 20 years or more) remember the days when ABAP skills were sky high–, now they are a commodity which is frequently outsourced to India, Malaysia, or China. The same commodity status is true of SAP Basis–, it is outsourced overseas or to hosting providers. Without real value SAP (or Oracle, MS Dynamics, etc.) are soon to follow.

The Coming SAP Business Technology Revolution

The TechRepublic post hit on a key theme which is the focus of this site–, helping business realize (and recognize) value from their SAP projects. Under the subtitle “New CIO manifesto” TechRepublic notes:

“information [may be] more important than information technology” and the majority of IT spend will be used to “measurably improve… financial conditions of an enterprise” by supporting “revenue generating rather than expense related business processes.”

This manifesto is more aligned to sales, marketing, and innovation. These areas of the enterprise are in line with CEO priorities (see e.g. What is the Proper Relationship for the CIO, CEO, and CFO?). The TechRepublic post then goes on to note that:

“IT has to stop thinking of itself as a business utility and start seeing itself as a business catalyst. In order to do that, it’s going to have to think in business terms and economic impact for everything it does…”

What Can Skilled SAP Consultants Do to Prevent Becoming Commodities?

FIRST do what you can to educate clients around consultant screening (for details see Protecting Yourself from SAP Consulting Fraud). For example, if you find out a client is looking for consultants ask them if they have received that candidate’s references from their last three projects and whether they directly asked for confirmation of experience from those references?

As clients continue to see marginal or substandard results from so many of these frauds they will consider you the same and rate pressure will quickly move you to commodity status. Worse still, you may be on a project where you have to do so much clean up and correction behind an incompetent consultant just to get your own area working that you do not have the time to deliver on real value that will set you apart.

SECOND make sure you focus your consulting efforts on delivering value to your clients. When I say value I mean in terms of business benefit and return on what you are being paid for. Don’t just do some configuration because that is what you are being told, or because that is what is in scope. Do it in such a way that it helps the client long term. For example, just because SAP supports a particular type of functionality the ongoing maintenance after go live may not be in the client’s best interests. Carefully consider the short and long term effects on your customer of what you do. If you take this approach you may lose out on a little extra billable time in the short term, BUT you will stand out to them as someone who looks out for their interests. When it comes time to upgrade or add on additional functionality a call from you could land you a direct client without the middle man staffing firm. You can avoid competing with so many of the frauds the staffing companies try to place which may destroy a client project and damage the value you can add.

The choice is yours. You can start working to be more client and customer focused to generate value or you can watch the marketplace move you to commodity status. In the end no matter how good you are as the marketplace erodes your value in it does as well. It’s time to start acting like a consultant, a paid advisor to give your client the best possible direction you can and in doing so you also help to protect your own future as well. For more insight on delivering SAP enterprise value focus on the components of ERP II or ERP III (see ERP vs. ERP II vs. ERP III Future Enterprise Applications).

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• Tactics, Strategy, ROI, TCO and Realizing Business Benefit from SAP
• Competitive Pressures and Value Propositions, Is Lean the Answer?
• The Real Reason Executive Participation Creates IT Project Success
• Using SAP to Improve Revenue and Profitability
• SAP IT Convergence Beyond Business to IT Alignment

SAP fake consultant

One of the most pervasive problems with SAP or any other ERP project is the sheer amount of fraud.  It is so rampant with such huge financial effects in any other area it would be seen as organized crime.  I’ve previously written about SAP consulting screening methods and required skills, but there is one key method to filter through the huge number of frauds–, simple experience verification.

Many organizations that have SAP periodically need experienced consultants to help with specialized requests, requirements, new functionality, or to occasionally backfill employees.  Because contract staffing is not a key portion of their business they turn to staffing firms or recruiters.  Unfortunately too many of the staffing firms and recruiters have only one interest–, to collect a paycheck.  Very few of these recruiters care about how they get that payday so it is up to you as the customer to ensure you are not getting ripped off.  There is no incentive for them to carefully screen candidates–, no background checks, no former project verifications, nothing.  A recruiter’s goal is to get them through the interview and have your organization hand over the cash.  The cheaper the resource they can find (i.e. read “fake”) the fatter their margin if they can convince you to use them.

The consulting fraud in the SAP arena (and ALL of the business application space) is widespread and out of control.  For more background and information on some of my experiences with this you may wish to see some of the following posts:

• Screening and Interview Methods to Find the Right SAP Consultant
• Screening and Interview Methods to Find the Right Consultant – Part 2
• A Cautionary Tale About SAP Knowledge Transfer
• Corporate and Personal Liability for Fake Consultants
• SAP Technicians or Experts
• ERP Consultants: Is the Promise of Knowledge Transfer just part of the Sales Pitch?
• Successful SAP Project Team Composition – Technicians or Experts?
• The Consultant Certification Ruckus

Just in case you think this is just complaining, take a look at an actual timeline of consulting at a real company where an internal employee periodically posts some of the horror stories they are dealing with; http://sapmesideways.blogspot.com/.  Although the employee at that company does not come out and say they are dealing with frauds, con artists, fakes or “SAP freshers,” I’ve seen this so many times that if that company checked these “con”sultant’s backgrounds I could guarantee a very high percentage of SAP fakes or “freshers.”

Protecting Your Organization from the SAP Fakes and SAP Frauds

If your organization would like something different you can do at least one small thing to protect yourself.  AFTER a staffing or recruiting firm has submitted a candidate demand they include references, from the last 3 projects listed on that consultant’s resume.  The ONLY references I accept are client resources, still at those organizations, and on an e-mail address that is clearly at that organization.  If they cannot provide these then my immediate assumption is they are a fake.  If the staffing firm doesn’t get the message you will not accept fakes then do not do business with them EVER!

The ONLY references I accept are client resources, still at those organizations, and on an e-mail address that is clearly at the organization.

Think about that a minute, even if you miss out on someone who has the actual experience you are looking for, do you really want to pay those kinds of rates for someone who was so uninspiring that no one even remembers them?  What about their consulting skills?  Were they a bump on a log that hid in the background and made little or no contribution to the direction or success of the SAP project?

Step by Step to Find the Real SAP Consultants

If you decide to use a staffing or recruiting firm, make it a hard requirement that they provide ONLY candidates who can provide an e-mail reference STILL EMPLOYED at each of that consultant’s last 3 clients.  This is basic employment verification stuff but few if any of the staffing firms do this unless you insist it is a requirement.  And nothing less than a direct verification from someone who is still at that organization will work because I have seen many “stories” about how they have some other reference or the person left and are now working at “XYZ” company instead.  Would you accept that from a permanent employee candidate?

The next step, AFTER the 3 prior project references still at those companies (on the company e-mail address / domain) is copy that portion of the resume listing that consultant’s experience at that company into an e-mail message to their reference.  Send the message with a notice they used this information on their resume to indicate their experience and you would like to know if they can verify that the candidate’s experience is consistent with what is listed.  If that cannot, or will not, then that is the end of the screen for that person.  I do not bother to waste any time with a phone screen until that verification step is complete.

What are some of your thoughts or suggestions for screening out the fakes, frauds, charlatans and con artists?

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• How the SAP Consulting Peter Principle Works
• Reduce SAP, ERP, or Technology Project Stress: Part 2
• Screening and Interview Methods to Find the Right Consultant – Part 2
• Some Reasons SAP Projects are Over Budget and Over Time
• SAP System Vendor Project Success Criteria 1

SAP Offshore Development Cost

If you are capable of providing detailed design specs where there is almost no deviation or thought required then this is a great option.  The instant your SAP design requires a measure of experience and insight to make judgment calls, or to look for data or processing that is not explicitly spelled out in detail, you are headed for huge hidden costs. 

The level of detailed spec design work by SAP functional consultants merely shifts the development time and costs to the higher priced resources where it is “hidden” from TCO and sales quotes.  If you are capable or writing “functional” specs that are really more like technical specs with specific table and fields spelled out in detail, program pseudo-logic defined, every possible alternative anticipated, and no detail left out then SAP offshore development works well.  If you are not prepared for that level of detail and “perfect specs” then you are likely headed for a much larger invoice in change order costs and hidden functional time than you ever anticipated.

Offshore resources are often smart, industrious, and hardworking but the ugly reality no one talks about are the real rates because these resources do NOT have any significant amount of SAP experience.

This is the final post in this series.

• Part 1 – SAP Offshore Development Project Experience
• Part 2 – Hidden SAP Offshore Development Costs
• Part 3 – Where Does SAP Offshore Development Make Sense?

A quick “test” for the SAP outsourcing or SAP offshore fit is the nature of the work.  “Commodity” services are a perfect fit for SAP outsourcing or SAP offshore work. 

If the effort involves any type of innovation, business transformation or needs any level of change management then SAP outsourcing or SAP offshore development may be dangerous and it WILL cost you far more than you are led to believe.

SAP Upgrades Might Support SAP Offshore Development

One area I have seen where SAP offshore development work makes sense is with upgrade projects.  Much of the development work there is re-working existing objects where the requirements from previous projects have been well tested and adjusted.  Or, if there are enhancements the gaps are well-known and understood so that the detailed SAP development requirements can be easily defined.  From this standpoint SAP offshore review and adjustment of existing code makes sense.  There is little in the way of experience needed to use the syntax checker and to do the occasional program adjustment.  And other than poor coding which causes performance problems the risk is lower.

SAP Production Support Might Work With SAP Offshore Development

In a fairly stable production environment, where there are not a lot of enhancement or new functionality requests SAP offshore support might work well.  The “fix” requirements are very specific and limited so that these types of small adjustments or corrections work well in an offshore environment.  Even for some of the smaller and less complicated enhancements or improvements SAP offshore support might work well.  However, for more extensive troubleshooting, or very complex requirements, you are likely better with some sort of local or onsite support. 

For a more details see Outsourcing Your SAP Application Support.  This provides some insight and a little framework for understanding the SAP outsourcing or SAP offshore fit.

Conclusion on SAP Offshore Development

Regardless of the hype and sales pitches SAP Off Shore development has far more Total Cost of Ownership than anyone has been led to believe.  There is a place for it but that is rarely in a new project or an extensive rework of complex processing requirements.  While you may not see the costs, the offshore project model will cost you unless you are fully aware of the requirements and hidden costs that are never defined in any of the sales pitches or materials.  Of course they will never tell you SAP offshore development might cost you far more than higher priced local resources in many situations.  If they had that level of integrity you would never engage with them for those services. 

For more information and insight on this topic see IT Outsourcing, Off Shore Support, Cost Cutting and IT Department Changes.  That post provides some additional insight on helping to understand where SAP internal resources should focus as well as where offshore support might make sense.

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175

=========================

Related Posts:

• Hidden SAP Offshore Development Costs
• SAP Offshore Development Project Experience
• More on Stupid SAP Vendor – Partner Selection RFI-RFP Processes
• How the SAP Consulting Peter Principle Works
• Steering Committee Governance for an SAP Center of Excellence