SAP Rollout Project

Iskustva u vodenju globalnog projekta

Opatija, June 4, 2002

mr.sc Mirko Slovjak

Project Approach
n As a global company, we have a critical mission to
undertake: we must successfully meet the rising
challenges and complexities of business world.
n To get there, we need an integrated system that delivers
the right blend of functionality, flexibility and
technology.
n Moreover , we need a comprehensive solution that
optimises and supports all of our global business
processes.
n To achieve this goal we need:
• a reliable strategy to analyse our business
operations and new opportunities and
• an integrated information system
Project approach
Case studies show that most of the successful SAP implementations are
business-driven from start to end
Differences between IT-driven and business-driven SAP implementations

IT-driven
IT-driven implementations
implementations Business-driven
Business-driven implementations
implementations
•• Reengineering
Reengineering of of business
business
•• Replacement
Replacement of of old
old IT
IT systems
systems processes
processes in
in alignment
alignment with
with
that
that are difficult to maintain and
are difficult to maintain and corporate strategy
corporate strategy
support
support Rationale for •• SAP
SAP regarded
regarded asas an
an enabler
enabler to
to
•• Increase
Increase accuracy
accuracy ofof data
data using SAP change
change the way the business is
the way the business is
run
run
•• SAP
SAP regarded
regarded as
as an
an IT
IT solution
solution
to
to all
all business
business problems
problems •• IT
IT structure
structure and
and business
business
processes
processes areare aligned
aligned

•• CEO
CEO
•• CIO
CIO
Key decision •• Senior
Senior management,
management, including
including
•• IT
IT department
department makers during IT manager
IT manager
•• Today’s
Today’s IT
IT users
users define
define system
system implementation
•• Requirements
Requirements based
based on
on future
future
requirements
requirements and
and architecture
architecture business
business needs
needs

Successful
Successful companies
companies realise
realise from
from the
the start
start the
the importance
importance ofof business-driven
business-driven SAP
SAP
implementation
implementation and
and secure
secure that
that the
the business
business focus
focus is
is never
never lost
lost throughout
throughout the
the process.
process.
 Project approach
n Complexity drivers for multi-site, multi-national SAP implementations

Complexity
Complexity drivers
drivers
••Global
Global business
business issues
issues
–– Global
Global data
data standards
standards
–– Global/standardised
Global/standardised processes
processes
–– Global
Global products
products
Multi-site, multi-national
SAP implementations
••Geography
Geography and
and cultural
cultural issues
issues
–– Cultural
Cultural differences
differences between
between international
international sites
sites
–– Communication
Communication challenges and local acceptance (buy-in)
challenges and local acceptance (buy-in)

••International
International team
team structure
structure and
and project
project organisation
organisation
–– Internationally
Internationally balanced
balanced teams
teams
–– Distributed
Distributed support
support over
over regions
regions
–– Coordination
Coordination of rollouts in multiple
of rollouts in multiple countries
countries
••Diversity
Diversity within
within regional
regional IT
IT systems
systems in
in use
use
–– More
More complex
complex configuration
configuration management
management
–– Variations
Variations in
in regional
regional IT
IT infrastructures
infrastructures
–– Difficult
Difficult definition
definition process
process for
for standardisation
standardisation through
through multiple
multiple
viewpoints
viewpoints

The
Thecomplexity
complexityincreases
increasessignificantly
significantlyfor
forglobal
globalSAP
SAPimplementations
implementations--putting
puttingmany
manypotential
potential
pitfalls and risks on the map to project success.
pitfalls and risks on the map to project success.
Project approach
n Characteristics of Global ASAP methodology
Project complexity
Global
methodology
Global
Global ASAP
ASAP

•• Provides
Provides Global
Global Strategy
Strategy definition
definition before
before starting
starting
implementation
implementation projectproject
•• Approach
Approach drivendriven by by global
global business
business process
process
orientation
orientation
•• Opportunity
Opportunity to to integrate
integrate business
business reengineering
reengineering
Local and
and value
value chain
chain improvements
improvements
methodology •• Opportunity
ASAP
ASAP Opportunity to to align
align business
business processes
processes across
across
international borders and realisation of significant
international borders and realisation of significant
cost
cost reductions
reductions and and enterprise-wide
enterprise-wide benefits
benefits
•• Clear
Clear local
local focus
focus ofof SAP
SAP
implementation
implementation •• Opportunity
Opportunity for for SAP
SAP programs
programs across
across all
all enterprise
enterprise
sites,
sites, product
product lineslines and
and international
international divisions
divisions
•• Process
Process optimisation
optimisation on on local
local
level
level •• Ideally
Ideally fit
fit for
for big
big multi-national
multi-national enterprises
enterprises to
to
prepare
prepare forfor the
the challenges
challenges ofof global
global markets
markets
•• Benefits
Benefits on
on local
local level
level
•• No
No business
business process
process
reengineering
reengineering
Size of company

Global
Global ASAP
ASAP is
is especially
especially designed
designed to
to fit
fit the
the needs
needs of
of multi-site,
multi-site, multi-national
multi-national enterprises
enterprises and
and to
to
help them implement global business operations, based on
help them implement global business operations, based on SAP. SAP.
Global ASAP
Global ASAP methodology will not substitute experience and
necessary skills, such as:

• Business acumen

• Project management

• Business process know-how

• SAP know-how

• IT architecture know-how
Global ASAP

Roll Out ASAP Roadmap

Global ASAP

1 2 3 4
Project Set-up Business Blueprint Realisation Maintenance & Support

Translate
business
Where we How to get processes
Customer
want to go there into logical
Competence
operation
Centre
of R/3
functionality
 Global ASAP Phases

Global Project
Pro ject Global Global
Global
Set--Up
Set Business Maintenance
Realisation
Blueprint and Support

•• Define
Define global
global •• Prepare
Prepare template
template •• Configure
Configure and
and •• Support
Support local
local sites,
sites,
strategy
strategy •• Define confirm
confirm template
template subsidiaries
subsidiaries
Define global
global
•• Set
Set up
up global
global business
business process
process •• Define
Define global
global •• Perform
Perform post-rollout
post-rollout
template
template project
project models
models system
system activities
activities
•• Develop management
management
Develop global
global •• Ensure
Ensure continuous
continuous
Business
Business •• Perform
Perform final
final improvements
improvements
Activities

Blueprint integration
integration test
Activities

Blueprint test
•• Execute
Execute rollout
rollout

Project Management

Change Management (Training, communication, team building, motivation, and so on)

Quality Assurance
Project Set-up activities

Define Prepare project

project
global Set up global
(template/rollout template project
strategy strategy)

•• Opportunity
Opportunity and
and •• Detailed
Detailed project
project •• Global
Global template
template project
project
readiness assessment
readiness assessment planning
planning charter
charter
•• Strategy
Strategy Study
Study •• Project
Project procedures
procedures •• Project
Project scope
scope
and standards
and standards
•• Risk
Risk Assessment
Assessment •• Project
Project plan
plan
•• CCC
CCC implementation
implementation
Activities

•• Business
Business Case •• Project
Project team
Activities

Case strategy
strategy team
•• Review
Review and
and sign-off
sign-off •• Sign-off
Sign-off of
of high-level
high-level •• Template-specific
Template-specific
of Global Strategy
of Global Strategy project
projectplan
plan standards
standards and
and
procedures
procedures
•• Review
Review and
and sign-off
sign-off
of Project Charter
of Project Charter
 Strategy Study
n Key deliverables of Strategy Study
Global
Global Strategy
Strategy for
for
Enterprise
Enterprise Scope
Scope Implementation
Implementation Approach
Approach
System Architecture
System Architecture
•• Scope
Scope of
of sites,
sites, countries
countries •• IT-system
IT-system topology
topology •• Implementation
Implementation approach
approach
•• Scope
Scope of
of processes
processes •• Network
Network overview
overview •• Outline
Outline of
of configuration
configuration strategy
strategy
(how,
(how, where, configuration
where, configuration
•• Information
Information and and process
process flows
flows •• Instances:
Instances: number,
number, locations,
locations, access,
access, and
and soso on)
on)
between enterprises
between enterprises relationship,
relationship, and so on
and so on
•• Outline
Outline of
of development
development strategy
strategy
Content
Content •• Graphical
Graphical representations
representations ofof •• Analyses
Analyses of
of distributed
distributed (how,
(how, where, development
where, development
each
each organisation
organisation and and mapping
mapping application
application alternatives
alternatives access,
access, and
and soso on)
on)
to
to SAP
SAP organisational
organisational hierarchy
hierarchy
•• Listing •• Overview
Overview ofof rollout
rollout strategy
strategy
Listing ofof all
all high-level
high-level
functional
functional gaps
gaps and
and potential
potential •• Outline
Outline of
of CCC
CCC concept
concept
solutions
solutions
•• Policy
Policy statement
statement on on how
how gaps
gaps
are
are to
to be
be resolved
resolved

Project
ProjectManagement
Management Change
Change Management
Management
Approach
Approach
•• Overview
Overview onon overall
overall Project
Project •• High-level
High-level Change
Change
Project
Project Management Approach
Management Approach Management
Management Strategy
Strategy
–– Organisation
Organisation structure
structure •• High-level
High-level training
training strategy
strategy
governance
governance
–– Roles
Roles &
& Resposibilities
Resposibilities
Business Expectation
n Enabling better PLIVA position
n To build an Integrated IS on group level
n To improve communication between PLIVA’s
company
n Real time and standardise reporting system
n To standardise and optimise business
processes
n To increase level of efficiency
n To improve customer service
n Perform C&V activities according the Project
Scope
Project Benefits
n Cross application
• Accuracy of data
• Cross company data availability
• Elimination of double work processes
n Finance & Controlling
• Accurate Cash Management
• Group credit limits monitoring
• Shortened period of reporting
n Sales & Distribution
• Increased inventory turnover
• Reduction of Customer complaints
• Better stock controlling and sales forecasting
Project Benefits
n Product Supply
• Increased inventory turnover
• Reduced planning cycles
• Reduction of cycle time
• Shortened order availability check

n Quality Assurance
• Decreased GMP deficiencies
• Standardisation of QA data, documents and
processes
Project Assumption
n Key team members must be full-time on the project
n Scope must be controlled
n Where possible existing solution in PLIVA Zagreb will
be sought
n Business change will be driven by SAP
n Complexity must be kept low
n Identification of master data must conform to global
standard
n Team members are empowered to make decisions
n Core team will work closely with Country teams
n Organisational structure will be frozen
n Standard reporting will be utilised where possible
n Top management involvement and quick decisions
making process
 Project Organisation
Project Sponsor

Business Process
Project Assistant Project Manager
Country Project Controlers Country Projet
Sponsor Sponsor
Implementation Management Team
Country SC Country SC

Country team Krakow Core team Country team Brno

Country Project Manager Country Project Manager

SAP Cooridinators SAP Integration Manager SAP Cooridinators Integration team

BPM - FI BPM-FI; Internal Consultant-FI BPM-FI FI team

BPM - CO BPM-CO; Inte. Consultant-CO BPM - CO CO team

BPM - SD SD team
BPM - SD BPM-SD; Inte. Consultant-SD

BPM-MM; Inte. Consultant-MM BPM - MM MM team

BPM - MM

BPM- PP-PI BPM-PP; Inte. Consultant-PP BPM - PP-PI PP-PI team

BPM - QM BPM-QM; Inte. Consultant-QM BPM - QM QM team

Change Management Change Management Change

Change Management Manager
Manager Manager Management team

C&V Manager C&V Manager C&V Manager C&V team

Business Specialist Site Users

Site Users
External Consultants External Consultants
External Consultant
- BC
- End User Support - End User Support
- ABAP IT Support
- Telecommunication - Telecommunication
- Telecommunication
Implementation Approach
n The term ”rollout project” refers to the process of
repeated activation of one or more templates.

n The main effort during the Business Blueprint phase

will be develop global template
n It’s possible that some business processes will be
optimised during the project, due to better practice
either in PLIVA Krakow or PLIVA Lachema

n One of the areas in which there can be no SAP

standard is the motivation for collaboration between
local and global levels
Implementation Approach

Global
Template Local
Requirements

Documentation Country Local

Versions developments

Master Data
IMG structures Local
documents
and settings processes

Global
Organizational Global and
Developments
structure integrated
processes
Implementation Approach

n Global – A process is global when it is integrated

throughout the enterprise

n Standard – A process is standardised if it must be

executed in the same way in the enterprise

n Local – A process is local if it is not possible or it

makes no sense to define as global or standardised
Timeline Impacts

Availibility of
resources to support Number of sites and
the Project activities business units involved

Degree of readiness Complexity of extended

(preparation status, previous requirements
internal experience) Duration of the
SAP Roll-out
Project
Existing SAP
installations Geographical scope
(SAP know-how)
Functional scope of
implementation