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SAP Contract Requirements for a Center of Expertise

July 2nd, 2012 by
Deliver SAP Excellence

Deliver SAP Excellence

If not all, most new SAP contracts and agreements contain provisions which require customers to create a “Center of Expertise” (or CoE). This is a customer’s, and SAP’s, first line of maintenance support. The CoE terms and conditions define a great aspiration that your organization will support “efficient implementation, innovation, operation and quality of business processes and systems” based on the Phase 6 RUN SAP ASAP Methodology. Good luck with all that!

However, back on planet earth, the RunSAP Methodology is a good starting point. Although SAP references the need to go further the delivered methodology only covers basic technical operations. As we look at SAP Enabled Business Transformation for IT Leadership it is apparent that the RunSAP Methodology is all about Internal IT Focus. The SAP delivered CoE requirement doesn’t deliver much on How To Navigate the SAP Business Transformation Journey around Enterprise Integration or External Business Drivers.

What ARE SAP Center of Expertise Requirements (as defined in their Terms and Conditions)?

For background and insight, here is an actual SAP Terms and Conditions excerpt from the SAP ENTERPRISE SUPPORT SCHEDULE (“Schedule”):

4. Customer Center of Expertise.

4.1 Role of the Customer Center of Expertise. In order to leverage the full potential value delivered as part of SAP Enterprise Support, Licensee is required to establish a Customer Center of Expertise (“Customer Center of Expertise”, or “Customer COE”). The Customer COE is designated by Licensee as a central point of contact for interaction with the SAP support organization. As a permanent center of expertise, the Customer COE supports Licensee’s efficient implementation, innovation, operation and quality of business processes and systems related to the SAP Software Solution based on the Run SAP methodology provided by SAP (for more information on the Run SAP methodology, refer to http://service.sap.com/runsap). The Customer COE should cover all core business process operations. SAP recommends starting the implementation of the Customer COE as a project that runs in parallel with the functional and technical implementation projects.

4.2 Basic Functions of the Customer COE. The Customer COE must fulfill the following basic functions:

  • Support Desk: Set-up and operation of a support desk with a sufficient number of support consultants for infrastructure/application platforms and the related applications during regular local working hours (at least 8 hours a day, 5 days (Monday through Friday) a week).
  • Licensee support process and skills will be jointly reviewed in the framework of the service planning process and the certification audit.
  • Contract administration: Contract and license processing in conjunction with SAP (license audit, maintenance billing, release order processing, user master and installation data management).
  • Coordination of innovation requests: Collection and coordination of development requests from the Licensee and/or any of its affiliates provided such affiliates are entitled to use the Enterprise Support Solutions under the Agreement. In this role the Customer COE shall also be empowered to function as an interface to SAP to take all action and decisions needed to avoid unnecessary modification of Enterprise Support Solutions and to ensure that planned modifications are in alignment with the SAP software and release strategy.
  • Information management: Distribution of information (e.g. internal demonstrations, information events and marketing) about Enterprise Support Solutions and the Customer COE within the Licensee’s organization.
  • CQC and other remote services planning: Licensee regularly engages in a service planning process with SAP. The service planning starts during the initial implementation and will then be continued regularly.

4.3 Customer COE Certification. Licensee must establish a certified Customer COE upon the later to occur of the following: (i) within twelve (12) months after the Effective Date; or (ii) within six (6) months after Licensee has started using at least one of the Enterprise Support Solutions in live mode for normal business operations. To obtain the then-current primary Customer COE certification or re-certification by SAP, the Customer COE undergoes an audit procedure. Detailed information on the initial certification and re-certification process and conditions, as well as information on the available certification levels, is available on the SAP Service Marketplace (http://service.sap.com/coe).

What the SAP Center of Expertise (or CoE) is NOT

As previously noted, even though there are several great aspirations in the CoE requirement the details are all about a focus on technical competence. In many respects this makes sense to SAP, you make sure your internal resources are the first line of defense. You cover your own maintenance and then only if you really can’t resolve the issue internally you turn to SAP.

Several critical components of a good Enterprise level integration program are completely missing from the real detailed requirements:

  • Governance (although it is referenced in the RunSAP methodology)
  • Program or Release Management
  • Enterprise Architecture
  • Business / IT convergence or integration

It is unfortunate that the RunSAP Methodology only covers the entry level stage of support. To move to something I call the “Center of Excellence” rather than the “Center of Expertise” you must focus on much more than just the CoE step 1 of 3 Development Phases for SAP Center of Excellence Maturity. To move past the first stage requires moving from an SAP Service Provider to Business Peer Through Center of Excellence Maturity.




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There is Life after the SAP Go Live

June 25th, 2012 by
SAP Support

SAP Support

One of the areas rarely addressed in the academic literature, by consulting firms, or by many of the system integrators is the organizational acceptance, and finally full use and assimilation of the SAP package. To the extent the system integrators or consulting firms do mention post production support it is generally in the context of managed services or outsourcing. Little is done to help companies develop a thriving production environment with your own resources.

One of the biggest problems I see anywhere is a failure to blueprint and ultimately design and then deliver SAP for usability. There are several hurdles which make this difficult, some of them include:

  • The SAP User Experience is one area which is overdue for attention.
  • A lack of in depth change management including training at the business process level.
  • Very few SAP consultants have much (if any) SAP support experience and have no idea about how their design and blueprint decisions will affect end users.
  • There are not enough functionality pilots demonstrated to the affected end users during the course of the implementation project.

After designing for usability the next critical issue involves Organizational Change Management Inside the SAP IT Support Organization. For long term direction Using Your SAP Steering Committee for Business Transformation can not be overlooked either. Finally, the user community, including training, change management, and ongoing super user development must be addressed.

Build a Thriving SAP Enabled Business Community and SAP Support Organization

Work to put the broader business community in a more accepting posture for your SAP / IT organizational changes by using Change Management Strategies and Knowledge Transfer Processes for a Successful SAP Project 1. Then work diligently toward Creating a Knowledge Centered Learning Organization for Business Transformation for IT Leadership. Whether you are already live with SAP, in the middle of a project, or just starting out, I would strongly encourage you to get serious about Organizational Change Management Inside the SAP IT Support Organization.

As an academic study I recently reviewed noted:

It is during [the post-implementation stage] that the effects of uncontrolled problems in previous stages appear due to the fact that users start the exploitation and evaluation of the system. During the implementation stage, users are usually limited to learn the basic functionalities [which support going live]… As a critical mass of users start mastering the system and they see its advantages on their work and its capabilities, they start using it in a more creative way and exploring its more advanced functionalities and requiring, even more functions… These are… signs of the system’s acceptance and assimilation which is… essential for the system’s success (Kouki, Poulin, and Pellerin, Ppg. 3-4).

SAP Certified Center of Expertise

Many of today’s SAP contracts include a provision that customers must create a Center of Expertise. In plain terms this means you are required to create your own internal support organization. This works well for SAP by putting your internal IT employees on the front line of defense but does little to ensure longer term acceptance, adoption, and even assimilation of the new system into the broader organization. Do not get confused by the terminology here either, the type of support SAP wants to see which constitutes a “Certified Center of Expertise” is related to you becoming less of a burden on their support organization, and in turn reducing their support costs for your company.  While this independence helps SAP it also helps to ensure you develop sufficient internal competence with the application.  In turn it is not enough and is just the beginning of the changes you must make.

The very basic components of building an Center of Expertise is contained in the Phase 6 RUN SAP ASAP Methodology. But as I’ve previously noted, this is just the first step of a critical path and process in Business Transformation for IT Leadership.

Understand the Series on SAP Competency Center or SAP Center of Excellence to gain the important insight for ensuring long term enterprise application success. Without a greater focus on the end user you may never fully realize business benefits or it will take longer than necessary, cost more than it should, and yield limited mid-term results.

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Kouki, R., Poulin, D., and Pellerin, R. (2006). ERP Assimilation Challenge: An Integrative Framework for a Better Post-Implementation Assimilation, CIRRELT Working Paper DT-2006-DP-1




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The SAP User Experience

April 9th, 2012 by
SAP User Experience

SAP User Experience

Over a decade ago SAP embarked on a journey to revamp their outdated user interface.  Enter “nJoy” SAP with all of the new “N” transactions.  But it has been over a decade now and other than some nice refinements to the GUI not much has changed.  A decade in the technology space is like a century in other areas.  Isn’t it time to take a hard look at the application suite again?

So you have the cute “Netweaver Business Client” but there hasn’t been a lot done to change the user experience for SAP applications.

Features, Functionality, Usability, and Performance Directly Translate Into User Experience

SAP Features, Functionality, and German Engineering

Let’s look at SAP’s years of leadership in the features and functionality area of Enterprise applications:

  • No matter what any other enterprise software vendor claims they can not come close to the depth of enterprise application experience SAP has.  A recent SAP fact sheet claims more than 183,000 customers in more than 130 countries (retrieved 4/8/2012).
  • SAP supports at least 22 major industry vertical solutions [FN1] covering such diverse areas as Automotive, Banking, Chemicals, Governement (Public Sector), High Tech, Mining, Pharmaceutical, Retail, etc.  Each of these areas has its own specialized process nuances and the application additions require specialized support.

The SAP application suite is massive as well.  If you’ve ever looked at an SAP price list you’ve probably been thoroughly confused and overwhelmed.  The SAP enterprise application footprint is gigantic.  SAP R&D spend for 2011 was about 13.5% of gross revenue (or about 1.9B Euros) and with a few exceptions SAP R&D spend is generally in the double-digit area of gross revenue.  Think about that, 1.9B Euros in R&D spend is more than the gross revenue of most of their competitors enterprise application sales.

Consider the depth and breadth of application functionality in the context of the various solution options available (see Footnote 2 below for a SMALL sample from ONE Application Component area) [FN2].  If you’ve ever had to deal with an SAP price-list trying to develop enterprise solution architecture, or license requirements, you may quickly become overwhelmed by the massive feature and functionality landscape. 

SAP Performance Options

Many of SAP’s products are hardware and database agnostic.  I don’t mean that it will run on any hardware, or any database, but it will run on most major platforms.  Because of the way the applications are structured they will also run in what SAP callls “2 tier” or “3 tier” landscapes.  This means the applications are scalable, in both size and performance, to whatever level of hardware investment you decide.

With the introduction of SAP’s HANA in memory computing solution(s), performance within the application is changing by orders of magnitude.  Massive amounts of data and programs are now loaded into, and then read from memory rather than from hard drives.

Whether you want to scale up or use HANA system performance should never be an issue.

Usability, Usability on the Wall, Who’s the Fairest of Them All?

Now we get to the heart of the matter.  As demonstrated SAP is a GREAT engineering company with huge R&D spend, a comprehensive industry solution portfolio, and a mountain of enterprise application options.  They’re German, what did you expect? Scalability and performance are not issues so the only area left is usability.

The “nJoy” program is about a decade and a half old.  In technology terms that is like the difference between the Stone Age and the industrial Revolution.

Unfortunately on the user experience curve they are in the IT Stone Age.  While there are great functionality enhancements coming out in the various enhancement packs at the same time the ability to use the application suffers.  Each major version of the SAP GUI offers a more pleasing screen, but it is still the same underlying data entry requirement–, the same fields, the same tabs, the same screens, the same old everything with a little bit of “lipstick” added.  But it is still the same fat, bloated, over-engineered user experience. 

SAP User Experience Customizing Pain

Please, don’t tell me about GUI XT or any of the other “customizing” options for screen layouts.  The starting point stinks and then you expect a customer to pay (consulting time, employee time, system integrator time, etc.) to enhance or modify the screens.  The SAP enhancement or modification option is not simple either — a simple screen enhancement is a significant engineering undertaking.  Unlike several modern “drag and drop” applications SAP requires development work to add new fields, change field labels, populate data in those fields during transaction run time, screen development is needed to “build” a new screen layout, and then you have to reassign a new “Z” transaction with copies of the modified underlying programs, adjust security, etc.  It takes a major engineering effort to make SMALL changes to the user experience.  SAP you have GOT to change this!  Your customers should be able to focus on the user interface without having to worry about all of the underlying engineering.

A Model for the SAP User Experience

Recently I offered The PERFECT SAP Acquisition Target in a CRM application called “SugarCRM.” As an SAP consultant who wants to see SAP continue to do well there are a lot of lessons that can be learned from them.  They are a cloud vendor who has set their target on Salesforce.com.  They provide a great navigation and ease of use experience.  And best of all, you can alter field labels, hide fields, add custom fields, completely change the layout of screens, and a whole host of other things without having to do any coding at all. Even if this isn’t an acquisition possibility for SAP it might help some of those German engineers in the SAP CRM space to download the opensource version and explore it.  Maybe they will learn a little something from a scrappy upstart who recently received $46 million in venture capital.  And this was from several VC organizations so a number of investors are betting millions on SugarCRM’s marketplace viability–, even in a marketplace saturated by salesforce.com and Microsoft.

Apple has Proven that User Experience Can MAKE the Market by Addressing Customer Pain Points

It’s been a long time SAP since you have seriously considered a remake of the user experience.  Since then Apple has proven that addressing customer “pain points” is a market winner. It’s about time to take another hard look at the user interface and user interactions because SAP “usability” has always been a customer pain point.  The “nJoy” program is about a decade and a half old.  In technology terms that is like the difference between the Stone Age and the industrial Revolution.  Don’t you think it’s time to get really serious about the user experience paradigm?

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

[FN1] Retrieved 4/8/2012 from http://help.sap.com/industries.  Along with this there are “sub” solutions within several of the industries and across industries.

[FN2]

SAP Application Components

like SAP Auto-ID Infrastructure, SAP BOBJ Spend Performance Mgmt, SAP CRM, SAP ERP, SAP SCM, SAP SNC, SAP SRM, …

SAP Best Practices

SAP Best Practices packages are available in different country versions for various industries

SAP BusinessObjects portfolio

like Address Directories & Reference Data, Crystal Reports Viewer, SBOP Data Federator, SBOP Enterprise, SBOP Extended Analytics, SBOP Text Analysis, …

SAP Business One

like SAP Business One 8.8, SAP Business One 2007, Crystal Reports for B1, Remote Support Platform for B1, …

SAP Connectors

like Business Connector, …

SAP Content

like BI CONT, SAP Business ByDesign CONTENT, …

SAP Cryptographic Software

like SAP Cryptographic Library, …

SAP Development Projects

like customer-specific development projects software, …

SAP Education Products

like Acrobat Con Learning by Adobe, Knowledge Acceleration, RWD Info Pak Suite, SAP Productivity Pak by RWD, SAP UEM by KNOA, Training Content for SAP KW, …

SAP Frontend Components

like NetWeaver Business Client, SAP GUI for Windows, SAP GUI for JAVA, SAP ITS, SAP IGS, …

SAP In-Memory (SAP HANA)

like SAP HANA Enterprise Edition, SAP HANA Enterprise Ext. Edit., SAP HANA Platform Edition

SAP Mobile Solutions

like MOB ACCAPROVER INT, MOB HR APPROVAL INT, MOB MGR INSIGHT IPD, …

SAP NetWeaver and complementary products

like SAP NetWeaver, SAP NetWeaver CE, SAP NetWeaver Mobile, SAP NW Identity Management, SAP MDM, SAP Content Server, …

SAP On-Demand Solutions

like SAP Sales OD Integration

SAP Rapid Deployment solutions

like SAP Business Communication Management rapid-deployment solution, SAP CRM rapid-deployment solution for Sales, Marketing, and Service, SAP IT Service Desk Operation rapid-deployment solution, …

SAP Solution Extensions by Partners

like BOBJ XBRL Publishing UBMatrix, SAP CPS Full (Scheduler), SAP Ext. Diagn. by CA Wily, SAP IncentivePayback by Vistex, SAP Quality Center by HP, …

SAP Solutions for Governance, Risk, and Compliance

like SAP Global Trade Services, SAP GRC Access Control, SAP Process Control, SAP Risk Management, SAP Nota Fiscal Electronica, …

SAP Technology Components

like LV for Solution Manager, Remote Support Component, SAP Landscape Transformation, SAP Solution Manager, SAP Support Enablement Package, SAP TAO, …

Adapters

like Informatica, IWay, Seeburger, for SAP NetWeaver 04 (EP Edition), for SAP XI 2.0, …

Composite Applications

like Industry Composites Applications (SAP COMP App for BOP, for E-Tax) SAP DOCB, SAP CQM, SAP XIEP, SAP XLPO, SAP SOP, …

Country-specific Add-Ons

like HR-CIS, SAP Core CEE, SAP E-Recruiting – LOCFR, SAP HR-CEE, SAP IS-U/LOCIN, SAP IS-UT CEE, SAP Real Estate CEE, …

Fuzzy! Products

like Fuzzy! Analyzer, Fuzzy! Bank, Fuzzy!Boykottcheck, Fuzzy! Double, Fuzzy! Post, Fuzzy! Umzug, …

Industry-specific Components

like Banking Services from SAP, SAP Bank Analyzer, SAP CFM, SAP Deposits Management, SAP Discrete Industries, SAP Insurance, SAP IS-U, SAP Mill Products, SAP Oil & Gas, SAP Patient Management, SAP Retail, SAP Trade Industry Demand Mgmt, …

Miscellaneous Components

like AppServer LINUXx86 64 on 6.40, Convergence Tool, SAP Kernel, …

Plug-Ins

like SAP Plug-In, SAP Enterprise Portal Plug-In, SAP Solution Tools, …

Supplementary Components for Cross Industry Solutions

like Project Management, Life-Cycle Data Management (SAP PLM Integrations), SAP Railcar Management, SAP Test Data Migration Server, SAP Visual Basis, …

Sybase Products

like AFARIA, Sybase Mobile Sales, Sybase Mobile Workflow, Sybase Unwired Platform, …




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