Mr. Zeeshan Guest Speaker

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    Zeeshan R Haryani

    SAP - FICOAn Open Discussion

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    Agenda

    INTRODUCTION TO SAP

    COST OF SAP IMPLEMENTATION

    ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE

    CHALLENGES IN SAP IMPLEMENTATION

    SAP AS A CAREER

    Q&A

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    Agenda

    INTRODUCTION TO SAP

    COST OF SAP IMPLEMENTATION

    ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE

    CHALLENGES IN SAP IMPLEMENTATION

    SAP AS A CAREER

    Q&A

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    What is SAP? (the company)

    Started in 1972 five former IBM employees

    Top 5 software company (MS, Oracle, IBM, Google)

    Trades on NYSE: SAP

    Headquartered in Walldorf, Germany (near Heidelberg)

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    What is SAP? (the name)

    The good names

    Pronounced S A P NOT Sap

    Systems, Applications and Products in Data Processing

    The other names

    Stops All Progress

    Start And Pray

    Software Acquires Problems

    Satans Accounting Program Sada Aii Parashani

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    Who Uses SAP?

    the Worlds best run companies.

    80% of Fortune 500 Coke

    Conagra

    Caterpillar

    Exxon Mobile (over 60 instances)

    Chevron

    Marathon Oil Cooper Industries

    Nike

    General Electric

    Baker Hughes

    Enron.?

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    SAP ERP and Data Flow

    Manufacturing most popular

    Growth out of MRP

    9 basic modules

    Interconnected andindependent

    R/3

    MM

    FI CO

    SD PP

    PLM

    QM WM HR

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    SAP End to End Cycle

    Quote toCash

    Plan toProduce

    Requisition to Check

    Sales Order

    Sales &

    Operations

    Planning

    Demand

    Planning

    Inventory

    Sourcing

    Material

    Requirements

    Planning

    Delivery

    Planned OrderProduction

    Order

    Production

    Control

    Purchase

    Requisition

    Vendor

    Selection

    Purchase

    OrderGoods Receipt

    Invoice

    Verification

    Vendor

    Payment

    Cost Controlling

    Financial and Logistics Reporting

    Business Information Warehouse

    BillingQuote Customer

    PaymentSD

    PP

    MM

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    Agenda

    INTRODUCTION TO SAP

    COST OF SAP IMPLEMENTATION

    ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE

    CHALLENGES IN SAP IMPLEMENTATION

    SAP AS A CAREER

    Q&A

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    Costs of Implementing SAP

    What does it cost?

    Hardware Software

    Bioware

    Cultural changes

    Different organization Change management

    Process changes

    Where to start?

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    SAP Implementation Costs

    50-100 million, typical

    One company, 50 million for current system

    Previous company, >100 million

    Everything in-house

    Highly customized

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    SAP Hardware Costs

    Do you have data center?

    Fire detection and prevention

    Above 50 year flood level?

    In hurricane, earthquake, or tornado zone?

    Do you have a hot or cold backup site?

    5-10 million depending on size Multi-mirrored

    Real-time backup

    Application, database, load balance

    Do we need new PCs?

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    Software Costs

    10-25 million up front

    SAP licenses (various modules) Oracle or other database licenses

    BW or other analytics

    Administration tools

    Backup and recovery software (real time?)

    Annual licensing/maintenance fees 22%

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    Costs of SAP Expertise

    10-45 million on hardware and software

    10-40 million on bioware

    SAP eliminates 10/hr data entry clerks

    Now you need 100,000+/yr Basis administrators

    Consultants can be expensive

    You want the expensive ones

    Know business and technical

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    SAP Consultants

    Lots of consultants

    Few have the skills Find, a finder!

    Lots of billing rates

    SAP Platinum consultant - $300/hr

    Quality, independent - $150/hr

    Someone who read an SAP book not worth the time

    Good consultants know the business!

    Technical aptitude

    Communication skills

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    Cultural Changes

    Immediate fear

    Job losses Job changes

    Management oversight

    Dashboards

    Drilldown

    Centralized/Shared processes and resources

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    Cultural Changes

    Unbelievable level of complexity

    Learn to speak SAPaneese Arguments change

    What is the correct authorization object?

    Which movement types are considered consumption?

    Allocation of costs

    Data is a valuable asset

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    Process Changes

    What changes?

    Nothing Everything

    Optimize your process first!

    Streamline

    Leverage technology

    Only one big change

    Document, document, document

    Communicate, communicate, communicate

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    Is it Worth It?

    YES!!!If done correctly Eliminate non-value added steps

    Improve management information

    Significant soft cost saving

    Focus resources

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    Agenda

    INTRODUCTION TO SAP

    COST OF SAP IMPLEMENTATION

    ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE

    CHALLENGES IN SAP IMPLEMENTATION

    SAP AS A CAREER

    Q&A

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    IBM Globa l Se rv ices

    2 0 0 5 IB M C o r p o ra t io n67 March -2005ERP / SA P Overv iew | 1 .01

    Organizat ional Structu re in S A P R/3

    Hum an ResourcesHum an ResourcesControll ingControll ingClientCl ientCl ient

    C o m p a n yC o m p a n yCodeCode

    PurchasingPurchasingOrganizat ionOrganizat ion

    PersonnelPersonnelAreaArea

    Production PlanningProduction Planning

    Sales and D istributionSales and Distr ibution M ater ia ls M anagementM ater ia ls M anagement

    Financial Accoun tingFinancial Accoun ting

    SalesSalesAreaArea

    Controll ingControll ingAreaArea

    PlantPlant

    Org Structure

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    Getz Org Structure

    C h a r t

    f

    c c

    ts

    t z

    C o n t ro l l i n g

    r

    a

    G e t z

    C o m p a n y C o d e

    G e t z

    e a l t h

    2 0 0 0

    C o m p a n y C o d e

    G e t z

    h a rm a

    1 0 0 0

    C o s t c e n t e r G ro u p

    L e v e l

    p e ra t i o n

    C o s t c e n t e r G ro u p

    L e v e l

    ro d u c t i o n

    C o s t c e n t e r

    G ro u p

    L e v e l

    i n a n c e

    C o s t c e n t e r

    G ro u pM a r k e ti n g

    C o s t c e n t e r

    G ro u pH u m a n

    e s o u r c e

    C o s t c e n t e r

    G ro u pP ro d u c ti o n

    C o s t c e n t e r

    G ro u pQ u a lit y C o n tro l

    Q u a li t y

    s a s u ra n c e

    C o s t c e n t e r

    G ro u pS u p p ly C h a in

    C o s t C e n tre C o s t C e n treC o s t C e n t re C o s t C e n tre C o s t C e n treC o s t C e n tre

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    Thal Org Structure

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    Dewan Group

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    Tripack Org Structure

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    Agenda

    INTRODUCTION TO SAP

    COST OF SAP IMPLEMENTATION

    ORGANIZATIONAL STRUCTURE WITH LIVE EXAMPLE

    CHALLENGES IN SAP IMPLEMENTATION

    SAP AS A CAREER

    Q&A

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    Challenges in SAP Implementation(Implementer's Side)

    Project Preparation Phase Project Scope

    Project Plan (Detail)

    Business Blue Print Phase Lack of Ownership

    Non Availability of Users

    Slow Decision Making

    Realization Phase Reporting Requirements

    User Acceptance Test

    Train the Trainer

    Final Preparation Phase Data Migration

    Availability of cut over data

    Golive & Support Teething Problems

    End User Training

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    Challenges in SAP Implementation(Companys Side)

    Fundamental Issues

    does management fully understand its current business processes, and can it make

    implementation decisions in a timely manner? Is management ready to undertake drastic business process reengineering efforts to yield

    dramatic outcomes?

    Is management ready to make any changes in the structure, operations, and culturalenvironment to accommodate the options configured in the ERP system?

    Is the organization financially and economically prepared to invest heavily in an ERPimplem