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    2007 Wellesley Information Services. All rights reserved. 2006 Wellesley Information Services. All rights reserved.

    Critical Steps andConsiderations forYour mySAP ERPUpgrade Plan

    Dale YoungCapgemini

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    General Questions

    How many of you are still deciding whether or not to

    upgrade your R/3 system?

    How many of you understand the business benefits ofESA and NetWeaver?

    How many of you have secured approval to move

    forward with a mySAP ERP upgrade? How many of you have actually started your upgrade

    project?

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    Before We Get Started

    Top 3 reasons why SAP customers havent upgraded yet:

    1. I really enjoy all the calls from systems integrators asking me

    if I need help it helped me miss the calls from politicians

    during last falls election

    2. My end users dont like change they also want to keep

    their Beta-max VCRs, 8-Track tape players, and rotary

    dial phones3. I was ready to upgrade to mySAP ERP March 26, 8 a.m.

    version when SAP announced a 3:45 p.m. versionand Ive

    heard rumors of a 7:56 p.m. version!

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    In All Seriousness

    SAP has drawn a line in the sand with mySAP ERP 2005

    The time to upgrade is now

    The next generation of mySAP offers a new set of valueand capabilities

    Do you understand the opportunities and implications?

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    What Well Cover

    Is the upgrade really warranted? Cutting through confusion to determine hard

    and fast ROI

    Setting realistic scope, timeline, and cost estimates There are no shortcuts to gaining project approval!

    Wrap-up

    Conduct Project

    Assessment

    Create

    the Value

    Proposition

    Finalize Scope

    And

    Timeline

    Obtain

    Project

    Approval

    Upgrade?

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    Customers at a Crossroad

    Todays business environment is VERY different fromwhen R/3 was originally inst ituted Change is a constant and the veloci ty is increasing

    Self-service and collaboration are givens

    There is less t ime to operationalize business changes There is a new generation of technology savvy users

    The original IT strategy and architecture is likely morethan 5 years old Business has changed

    Technology has matured New demands are being placed on IT everyday

    SAP has moved in the integration space

    SAP has undergone a Step Change in itsarchitecture and solutions Increased collaboration, integration, analytical

    capability

    Increased capabili ties in data and information mgmt.

    Maturation of solut ions such as CRM, SupplyChain, and SRM

    Third-party capabilities (e.g., Duet, Adobe IAF)

    Architecture

    Infrastructure

    Business Processes

    Future State SAPRoadmaps must addressthree dimensions:

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    Looking Back to Move Forward Did History Repeat Itself?

    1980s

    Limited businessvalue through IT

    IT only for fewclient needs

    Simplification

    Integration

    Promised retirementof legacy

    ERP Renaissance

    Increasing IT interfacesand exploding IT costs

    Multitude of IT vendors

    Legacy remains

    Business Evolution

    Hard-wired

    applications/processes

    Multiple SAPInstances

    Legacy/third partyremains

    Hurdle for growthand innovation

    IT

    High integrationcost

    Speed of change Poor data quality

    People as humanintegrators

    Mainframe,legacy etc.

    Singularapplications

    (FI/CO, R/2, HR)

    Legacy

    Legacy

    R/3 R/3

    LegacyCRM

    1

    Legacy

    SCM

    ()

    OS

    HW

    CRM2

    OS

    HW

    OS

    HW

    OS

    HW

    PortalOS

    HW

    Its like deja vu all over again!

    Business

    Impacts

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    Is This Upgrade Warranted?

    TechUpgrade

    NetWeaverComponents

    Upgrade

    InfrastructureUpgrade/Migration

    m

    ySAPER

    P

    R/3

    SOAEna

    bled

    Enter

    prise

    Enterprise Information Mgt Strategy

    FutureStateDe

    sign

    CRMxApps

    SRM

    SCM

    IndustryInnovation

    MDMSolutions

    Analytics

    EIMFoundation

    MDM BI etc

    ProcessInnovation

    Duet

    Adobe

    Take a holistic approach that focusesfirst on a low risk move to the nextgeneration of SAP while positioningyourself to rapidly exploit the nextgeneration of your enterprise platform

    Transition to a supported,more capable hardwareand software environment

    Develop a deeperunderstanding of thebusiness

    improvement/innovationcapabilities of your newSAP platform

    Define your set of businessimprovement initiativesand align your organization

    around them

    Retrofit

    1

    SAP Modernization Revolution through Evolution

    Yes, particularly when viewed strategically

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    What Well Cover

    Is the upgrade really warranted? Cutting through confusion to determine hard

    and fast ROI

    Setting realistic scope, timeline, and cost estimates There are no shortcuts to gaining project approval!

    Wrap-up

    Conduct Project

    Assessment

    Create

    the Value

    Proposition

    Finalize Scope

    And

    Timeline

    Obtain

    Project

    Approval

    Upgrade?

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    Conducting the Project Assessment: Fact Finding

    mySAP ERP can be a complex proposition with many

    moving parts

    Before asking for approval, you will need to have all ofyour facts compiled and documented:

    What areas of functionality do we use today?

    What legacy/third-party applications are sti ll being leveraged

    and why?

    What new features or functionality can we use after the upgrade

    (e.g., ECC, SAP NetWeaver) and what are their prerequisites?

    What are the current support issues in your environment? What projects are active and what projects are scheduled to

    start in the next six months to one year?

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    TechnicalTechnical

    Review Technical

    Architecture and Custom

    Development with

    Development/Basis Leads

    Collect Custom Object

    Information (Forms, Reports,

    Interfaces, Enhancements,

    BDC)Collect Data Dictionary/

    Source Code Modifications,

    SAP Note information

    Determine System

    Landscape, InstanceStrategy, Client Strategy

    Review Technical

    Architecture and Custom

    Development with

    Development/Basis Leads

    Collect Custom Object

    Information (Forms, Reports,

    Interfaces, Enhancements,

    BDC)

    Collect Data Dictionary/

    Source Code Modifications,

    SAP Note information

    Determine System

    Landscape, InstanceStrategy, Client Strategy

    FunctionalFunctional

    What areas of functionality

    do we use today?

    Review End-to-End

    Processes with Module

    and Process Leads

    Determine Modules and

    Sub-Modules in use

    Determine Points of Pain,Enhancement

    Opportunities and ROI

    Determine Unit test scripts

    readiness

    Determine Integration test

    scenario readiness

    What areas of functionality

    do we use today?

    Review End-to-End

    Processes with Module

    and Process Leads

    Determine Modules and

    Sub-Modules in use

    Determine Points of Pain,Enhancement

    Opportunities and ROI

    Determine Unit test scripts

    readiness

    Determine Integration test

    scenario readiness

    Areas to Be Assessed

    TCO ASSESSMENTTCO ASSESSMENT

    Evaluate Impact of Upgrade

    on Technical Landscape

    Explore Replatforming

    Considerations

    Viability of combining

    Upgrade with Platform

    Migration

    Explore the role of SAPNetWeaver in ROI and TCO

    Reduction

    Consider the use of SAP

    NetWeaver in the existing

    landscape and a potentialtransition plan

    What legacy/3rd party

    applications are still being

    leveraged and why?

    Evaluate Impact of Upgrade

    on Technical Landscape

    Explore Replatforming

    Considerations

    Viability of combining

    Upgrade with Platform

    Migration

    Explore the role of SAPNetWeaver in ROI and TCO

    Reduction

    Consider the use of SAP

    NetWeaver in the existing

    landscape and a potentialtransition plan

    What legacy/3rd party

    applications are still being

    leveraged and why?

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    Conducting the Project Assessment: Fact Finding

    Conducting a formal assessment workshop can provide: An excellent opportunity to educate people

    A start to the process of building excitement

    Establishment of buy-in from the business units

    Momentum from the business units up through the project

    sponsors and CXO levels

    Be realistic about the potential organizational problemsyou can solve, as well as the costs and resources

    associated with your upgrade

    Identify upgrade benefits that can justify the upgradecosts (e.g., legacy decommissioning, maintenance,

    process improvements, hardware consolidations/

    migrations)

    Tip

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    Formal Assessment Workshop

    Understand upgrade complexities

    Whats new wi th mySAP ERP

    Demonstrate the art of the possible

    Current business/IT expectations

    Lessons learned from the original implementation project

    Conduct breakout sessions (both functional and technical)

    Determine benefits of new functionality

    Review new functionality deltas between mySAP ERP and your current

    release (SAP NetWeaver, architecture)

    Alignment and Concurrence

    Develop business case and detailed project plan

    Finalize Scope (technical, functionality included)

    Timeline and resources Develop launch strategy

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    Do You and Your Users Know The Art of the Possible?

    New SAPPossibilities

    Process Design/

    Innovation: Change how you do

    business

    Collaboration, SelfService, Process

    Extension

    SolutionDeployment andUser Types:

    Who interacts withyour organization?

    How they interactwith you and witheach other?

    Collaborative

    Solutions

    Web

    Enablement/IntegrationEnterprise LandscapeB

    usinessEcosystem

    Back officeSAP

    Understanding the Art of the Possible:

    SAP Discovery System for Enterprise SOA

    www.sdn.sap.com/irj/sdn/developerareas/esa/esadiscovery

    Tip

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    Plan Key Activities Deliverables Responsibilities

    Introduce purpose of activity

    Conduct Intro Workshop to gather baseline info

    Kickoff Presentation Workshop Template Project Profile templates

    Assessment team

    Workshop Notes

    Interview Schedule Key Contacts

    Assessment team

    AssessmentTeam

    Kick-off and Intro WorkshopKick-off and Intro Workshop

    Sample Two Week Assessment Plan Workshop

    1

    Conduct Round 2Workshops

    Conduct Round 2Workshops

    Conduct Round 1Workshops

    Conduct Round 1Workshops

    Conduct Follow UpWorkshops

    Conduct Follow UpWorkshops

    Sponsor

    Check-inSponsor

    Check-in

    Confirm/Schedule InterviewsConfirm/Schedule Interviews

    Conduct Round 1 WorkshopsConduct Round 1 Workshops

    Conduct Round 2 WorkshopsConduct Round 2 Workshops

    Develop ReportDevelop Report

    Confirm and Identify additional subject matter experts,business managers, technical managers

    Establish interview schedule and logistics

    Perform Workshops

    Record notes, summarize findings, determine follow

    up needs

    Workshop Notes Assessment Team to carry outworkshops

    IT and Business Leads

    Debrief FindingsDebrief Findings Management Team and Assessment

    Team

    Final Summary Presentation Project Roadmap

    Final Summary Presentation Project Roadmap

    Consolidate interview notes

    Summarize findings and develop report/debrief

    Schedule/confirm debrief session with sponsor

    Conduct debrief communication session

    2 3 4 5 6 7 8 9 10DAY

    Week 2Week 1

    Kickoff& IntroWork-shop

    Confirm/Schedule

    Interviews Develop ReportDevelop Report

    DebriefFindings

    Perform Workshops

    Record notes, summarize findings, determine followup needs

    Assessment Team to carry outworkshops

    IT and Business Leads

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    Project Assessment Summary

    Summary

    Take time to conduct the assessment the deliverables from

    this phase will save time and effort later

    Gain famil iarity will all the functional deltas between your

    current R/3 release and mySAP ERP (the earlier your source

    release, the greater the deltas)

    Involve both IT and the business Understand project challenges and roadblocks

    Competing projects

    Current project support issues Business issues (mergers or acquisitions)

    Getting this part right can accelerate securing project approval!

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    Conducting the Project Assessment

    Avoid these pitfalls:

    Dont make decisions without

    considering the entire

    architecture and

    interdependencies

    Properly estimate all of your

    costs (e.g., HW, SW, resource

    backfill)

    Be realistic when determining

    items that could/should be in

    scope (e.g., SAP NetWeaver

    components)

    Dont oversell the scope to thebusiness until the project has

    been finalized and approved

    An upgrade from a pre-4.6

    release may require more time

    The number of customizations

    and SAP modifications wi llimpact the assessment time

    The number of SAP components

    may impact time

    Beware of hidden costs; such astechnical rework and

    optimization)

    Finally, the number of SAP

    modules may impact the time

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    Areas of ROI Consideration

    Application Rationalization &Process Renovation

    Architecture Alignment &Rationalization

    Infrastructure Alignment &Rationalization

    Service-Oriented ArchitectureOrchestrating Software and Data as Services

    Service-Oriented InfrastructureOrchestrating Virtualized Resources

    Business ProcessesCollaboration & Differentiation

    ExternalInformation

    ExternalActions

    mySAP ECC/ Bus. Suite

    SAP NetWeaver

    Enterprise SOA

    BusinessImprovement

    Portfolio

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    Benefit Differentiation

    Tangible benefits

    Reduced maintenance costs

    Opportunity to decommission

    legacy applications by utilizingnew mySAP ERP functionality

    Reduction in third-party software

    license expense by using mySAP

    ERP functionality (e.g., SAP XI,

    Data Warehouses)

    Intangible benefits

    Decommission workarounds

    using standard mySAP ERP

    functionality

    Better reporting and dashboard

    capabili ties with BW

    Enhanced ease of use for

    end users

    New functionality and features in

    mySAP ERP modules

    Improved abili ty to integrate

    technology and solutions through

    the use of SAP NetWeaver

    Productivity and efficiency

    improvements

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    SAP Solution Browser Shortcut for DefiningBusiness Benefits

    solutionbrowser.erp.sap.fmpmedia.comTip

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    Commonly Overlooked ROI Considerations

    Who you have deployed to

    Are you reaching all potential

    users (internal and external)

    How they access Portal

    Adobe Interactive Forms

    Duet

    How you integrate Internally (A2A)

    Externally (B2B)

    Architecture Technology Rationalization

    Service Oriented Architecture

    Enablement

    Legacy Retirement/Retro Fit

    Instance Strategy

    Single/Multiple

    Releases

    Infrastructure Rationalization Hardware

    OS

    Services Management

    Maintenance

    May be less expensive

    (no penalties)

    Business processimprovements/renovations

    Elimination of manual systems

    and activities

    Business Efficiencies

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    SOA Made SimpleWhat Business Am I? Consider the following three food service related

    processes: Eat, Order, Pay

    Now, arrange them differently:

    Order, Pay, Eat

    Order, Eat, Pay

    Pay, Eat

    Pay, Order, Eat

    Eat, Order, Pay

    Eat

    Fast Food (e.g. McDonalds)

    Traditional Restaurant (e.g. Olive Garden)

    Buffet (Chinese Buffet)

    Sit Down Buffet (e.g. Chesapeake Seafood House)

    Home Food Party (e.g. Impromptu Gourmet)

    Soup kitchen (e.g. Salvation Army)

    The same 3 processes, assembled differently,

    support 6 different business models

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    SOA Made Practical Enterprise Hubs and Edges

    Enterprise DataHub

    Enterprise ApplicationsSpoke

    Market FacingDepartments

    The Edges Outside Edge

    Activity inside thecompany

    Activity outside thecompany

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    SOA Made Practical The Role of SAP

    Enterprise DataHub

    Enterprise ApplicationsSpoke

    Market FacingDepartments

    The Edges Outside Edge

    MDM/

    BW/XI

    ECC

    Orde

    rtoCa

    sh

    Purcha

    seto

    PayFinancials

    HiretoR

    etireCRM

    SCM

    SRM

    HCM

    NetWeaver./ESA

    Enterprise Portal

    XI

    xAp

    ps

    Enterprise SOA(eSOA) is SAPsversion of SOA

    SAP NetWeaver isthe technologyenablement of

    their architecture

    Enterprise SOA(eSOA) is SAPsversion of SOA

    SAP NetWeaver isthe technologyenablement of

    their architecture

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    mySAP Speed to Value

    Sample

    Goals:

    Reduced Costs $10B Organization Increased Sales

    Optimized SCM Global Reporting Reduced Inventory

    Share Holder Value Market Confidence Customer Satisfaction

    mySAP ERP:

    No Maint. Cost Full SW solution Future Growth

    SAP NetWeaver:

    Integration Consolidations Architecture

    mySAP CRM:

    Leads => demand Sales Management Mktg Optimization

    mySAP SCM:

    Process improvements Reduce IOH Demand Pull

    mySAP BW:

    Sales Reporting Financial Rollups Exec. Dashboard

    Organizational:

    Tax opportunities Sarbanes Oxley Regulatory reqs

    mySAP ERP: Organizational Behavior

    More access to data to make better business decisions Productivity gains (finance, sales, operations, etc.) Business and IT coordination

    Perfect platform to grow the company

    Benef

    its

    Identify IT Benefits and Business Benefits

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    Summary: Documenting High-Level Business Benefits

    Do

    Set realistic goals and benefits

    Understand the art of the

    possible with SOA and SAP

    NetWeaver and leverage it!

    Be sure to document long-term

    opportunities of the mySAP ERP

    platform (e.g., middleware

    replacement with SAP NetWeaver)

    Socialize the benefits within the

    organization

    Remember: Think 3-5 years out!

    Dont

    Dont over-commit business

    benefits dont paint too

    rosy a picture!

    Always remember: There is a

    potential roadblock to success

    based on a disconnect between IT

    and the business they can have

    very different views of benefitsand ROI

    Dont try to do everything at once

    Do not fail to continue to measure

    the benefits throughout the project

    Don'tForget

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    What Well Cover

    Is the upgrade really warranted? Cutting through confusion to determine hard

    and fast ROI

    Setting realistic scope, timeline, and cost estimates There are no shortcuts to gaining project approval!

    Wrap-up

    Conduct Project

    Assessment

    Create

    the Value

    Proposition

    Finalize Scope

    And

    Timeline

    Obtain

    Project

    Approval

    Upgrade?

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    Determining Scope, Timeline, and Costs

    The key to successfully planning an upgrade project is to

    have a complete understanding of the following areas:

    Scope

    Is this a technical upgrade or will you be adding

    new functionality?

    What is the strategy for Unicode conversion?

    What are the infrastructure impacts? Approach

    Is the project phased?

    What is the projects roadmap and timeline? Cost

    Provide a total project cost with capital vs. operating

    expense breakout

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    Key Questions That Impact Project Scope

    Will you conduct a technicalupgrade? Or a functionalupgrade?

    If technical, what are your plans for leveraging your new

    platform?

    Are you decommissioning workarounds?

    Incorporating in to ECC?

    Re-developing using SAP NetWeaver?

    Will you be implementing new functionality/features?

    What new modules should you implement? (e.g., MM/SD?)

    Can you take advantage of new capabili ties (SAP

    NetWeaver, BI, MSS, ESS)?

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    Reasons for Upgrading

    To take advantage of new functional capabilities

    To position your enterprise platform for futurefunctional enhancements, business changes

    Deploy a more flexible platform

    To reduce Total Cost of Ownership (TCO)

    To achieve compliance

    None of these are mutually exclusive!

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    Evaluating Your Overall Upgrade Options

    Technical Upgrade

    Application Maintenance Focus

    Consolidated Infrastructure Platform

    Business Context Limited Impact

    Functional Upgrade

    Reduction of Customization

    Complexity, Core Modifications

    Elimination of CustomerModif ications, Development, Bolt-ons

    Increase col laboration, integration, and Web-enablement

    Strategic Business Improvement Upgrade

    Rollout of New/Optimized Business Process Based on Core Functionality

    Deploy New Functionality

    Implement Extended Application

    Infrastructure

    ProcessesProcesses

    Info

    rmational S

    trategic

    CostRed

    uction

    CostAvoida

    nce

    Reven

    ueEnhancement

    Retr

    ofit

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    Technical Upgrades: Fact or Fiction?

    Purely technical upgrades usually do not exist: Most upgrade projects involve adding new features and

    functionality, such as:

    New transaction codes New functionality

    New screens and fields

    New security features New reports

    Decommissioning workarounds and replacing with new

    standard out-of-the-box functionality

    If on an earlier release of SAP (e.g., 3.1i) limit the scope of themySAP ERP upgrade theres a lot of change in the ECC alone

    Its hard to justify the cost/benefit for a pure

    technical upgrade project

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    Factors Driving the Time and Effort of Possible Options

    Breadth of funct ionality implemented

    Number of SAP modifications

    Number of custom programs

    Number of interfaces

    Number of bolt-ons

    Geographic scope

    Number of users

    Breadth of funct ionality implemented

    Number of SAP modifications

    Number of custom programs

    Number of interfaces

    Number of bolt-ons

    Geographic scope

    Number of users

    F

    ACTORS

    F

    ACTORS

    Several factors have an impact on the

    complexity of the upgrade project andthe length of time required to execute

    LEVEL OF COMPLEXITYLEVEL OF COMPLEXITY

    LOW

    MEDIUM

    HIGH

    Upgrade Estimates (Months)

    Medium Complexity (~4-6 months)

    Low Complexity (~2-4 months)

    High Complexity (~7-10 months)

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    Understand the Complexity of Upgrading to mySAP ERP

    Upgrading to mySAP ERP can be much more complex if youreusing SAP functionality outside R/3

    Legacy applications, bolt-ons, interfaces, current SAP apps mayrequire upgrading

    SAP Enterprise Portal

    R/3 BI

    APO

    Legacy

    Systems

    Third-Party

    SoftwareInterfaces

    In this case, SAP, BI, APO, SAP Enterprise Portal, etc.,and some third-party software may need to be upgraded

    during the mySAP ERP upgrade project

    Today

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    In Summary: Document the Final Scope

    Determine the final scope:

    Type of upgrade (e.g., new functionality, modules)

    Areas for improvement

    Current issues

    Available budget and resource

    Pitfalls:

    Pay attention to the complexity of the interdependencies

    presented by the mySAP ERP architecture

    Identify the project sponsors and align the scope accordingly

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    Determine the Project Approach and Timeline

    Many factors should be considered when establishing

    your upgrade project approach:

    The project roadmap (whats in scope?)

    Project timing (when?)

    Project phases (big bang or phased rollout of functionality?)

    Project constraints (organizational activity)

    Skills/resource availabil ity

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    Legacy SAP Approximate NetWeaver Components

    Critical Consideration: Do You Have the Right Skills?

    BasisBasis

    SAPGUISAPGUI

    ALEALE

    ABAP ReportsABAP Reports

    Knowledge WarehouseKnowledge Warehouse

    Event Process Chains (EPCs)Event Process Chains (EPCs)

    ASAP methods, CCMSASAP methods, CCMS

    Web Application ServerWeb Application Server

    Enterprise Portal (EP)/Web DynproEnterprise Portal (EP)/Web Dynpro

    Exchange Infrastructure (XI)Exchange Infrastructure (XI)

    Business Warehouse (BW)Business Warehouse (BW)

    Knowledge Management (KM)Knowledge Management (KM)

    Business Process Management (BPM)Business Process Management (BPM)

    Lifecycle Management (LCM)Lifecycle Management (LCM)

    And provides newcapabilities

    CollaborationCollaboration

    Mobile Infrastructure (MI)Mobile Infrastructure (MI)

    Composite Application Framework (CAF)Composite Application Framework (CAF)

    Master Data Management (MDM)Master Data Management (MDM)

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    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    Current Projects

    SAP Upgrade

    Process/Functional Improvements

    Merger/Acquisitions Support

    Business Warehouse

    SEM

    Human Resources

    Portal

    Internet Sales Development

    CRM

    SCM

    Warehouse ManagementSarbanes-Oxley

    2005 2006 2007

    Example 1 Project Approach Upgrade Only

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    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    Current Projects

    SAP Upgrade

    Process/Functional Improvements

    Merger/Acquisitions Support

    Business Warehouse

    SEM

    Human Resources

    Portal

    Internet Sales Development

    CRM

    SCM

    Warehouse Management

    Sarbanes-Oxley

    2005 2006 2007

    Example 2 Upgrade Concurrent with New Functionality

    Take advantage of the upgradeAnd non training impacted

    new functionality

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    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    Current Projects

    SAP Upgrade

    Process/Functional Improvements

    Merger/Acquisitions Support

    Business Warehouse

    SEM

    Human Resources (e.g., ESS)

    Portal

    Internet Sales Development

    CRM

    SCM

    Warehouse Management

    Sarbanes-Oxley

    2005 2006 2007

    Example 3 Upgrade, New Functionality, and Components

    Wh t D Y R d L k Lik ?

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    What Does Your Roadmap Look Like?

    Applications

    Enterprise Architecture

    BusinessA

    rchitecture

    Infrastructure

    mySAPEnd State

    Vision

    6 Month

    12 Month

    18 Months

    Hardware

    Storage

    Etc.

    SOA Enablement

    NW Component Upgrades

    Legacyretirement

    Customizations

    Newfunctionality

    Processimprovements

    Businessinnovation

    S S Ti li d C t

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    Summary: Scope, Timeline, and Costs

    mySAP ERP requires serious and careful planning

    regarding scope

    Dont bite off too much at once plan for

    subsequent phases

    Plan for changes to your organization (people, process,

    and technology)

    Understand what is required as part of the upgrade and

    activities that can occur post-upgrade project

    Wh t W ll C

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    What Well Cover

    Is the upgrade really warranted?

    Cutting through confusion to determine hard

    and fast ROI

    Setting realistic scope, timeline, and cost estimates There are no shortcuts to gaining project approval!

    Wrap-up

    Conduct Project

    Assessment

    Create

    the Value

    Proposition

    Finalize Scope

    And

    Timeline

    Obtain

    Project

    Approval

    Upgrade?

    Socializing the Project Recommendations

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    Socializing the Project Recommendations

    Once the facts have been compiled, socialize the

    recommendation to the sponsors key business/IT leads

    to ensure buy-in

    Business benefits

    Project scope and approach

    Project timeline, resources, and cost

    Upgrade options Final recommendation and organizational impact

    Gaining Organizational Buy In for the Upgrade Project

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    Gaining Organizational Buy-In for the Upgrade Project

    Please approve my project!

    Board of Directors

    Steering Committee

    Program Management Office

    Business

    UnitsIT

    Audit Committee

    Support Organizations

    BusinessCase

    SarbanesOxley

    Strategy andCost

    Projects,Budget,

    Resources

    Funding,Initiatives

    TCO

    Resources

    Why is it Diff icult to Obtain Approval for the Upgrade Project?

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    Why is it Diff icult to Obtain Approval for the Upgrade Project?

    Costs Software licensing, addit ional

    hardware to support mySAP ERP,

    resources, consulting fees

    Timing of the project

    Business cycle (seasonality),

    budget cycle, competing projects,

    Sarbanes-Oxley, and audit

    restrictions

    Sponsorship

    Who owns this project (IT?

    Business?)

    Who is fighting for the new

    features, functionality, and

    architectural capabili ties of

    mySAP ERP?

    Business case What are the benefit realizations?

    What value is mySAP

    ERP providing?

    Resources

    Who is doing the work?

    What about backfilling

    resources? How many consul tants are we

    going to need?

    What Well Cover

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    What We ll Cover

    Is the upgrade really warranted?

    Cutting through confusion to determine hard

    and fast ROI

    Setting realistic scope, timeline, and cost estimates

    There are no shortcuts to gaining project approval!

    Wrap-up

    Resources

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    Resources

    Want to learn more?

    A free SAP ExpertsSampler CD containing more than 20relevant articles from BW Expertand SAP Professional Journal

    is available at the WIS/SAP Insider booth in the SolutionsShowcase.

    7 Key Points to Take Home

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    7 Key Points to Take Home

    Ensure that your organization is ready for the mySAPERP upgrade project

    Take the time to address the concerns of the project

    sponsors Clearly understand and articulate exactly what is in-

    scope and out-of-scope for the project

    Take the time to conduct the fact-finding exercise fully understand whats possible with SAP today Build a project roadmap to manage the functionality

    delivered with the project and what phases will follow

    Get educated on the capabilit ies and functionality inmySAP ERP and NetWeaver

    Document and track to the high-level benefits

    Your Turn!

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    Your Turn!

    How to contact me:Dale Young

    [email protected]

    Questions?