System Landscape Optimization (SLO) group

Overview

May, 2013

© 2013 SAP AG. All rights reserved. 2

Agenda System Landscape Optimization

The challenge of reflecting business requirements to your SAP landscape

SAP’s answer: System Landscape Optimization

SLO Services Portfolio

Benefits of using SLO services

© 2013 SAP AG. All rights reserved. 3

Challenging Factors That Put Pressure on IT

to Transform

Translate business

requirements to the IT

level

+

Show the business

value of IT

innovations

IT shifting from

managing information

systems to supporting

business processes

Pressure on IT to

deliver more with less

Complexity is rising

and time frames for

adapting complex IT

landscapes are

decreasing

IT Transformation

© 2013 SAP AG. All rights reserved. 4

IT Standardization, Consolidation & Migration Are

Top Priorities

Source: Capgemini, Application Landscape Report 2011

© 2013 SAP AG. All rights reserved. 5

Strategic

business

transformation M&A M&A

Value chain

transformation

IT landscape

transformation

Typical IT Transformation Drivers

• Maximize cost savings

• Reduce transformation time

• Ensure business continuity

• Support upcoming changes in

business

• Accurate and timely

financial reporting and

controlling

• Reduce transformation

time

• Convert currencies

• Ensure business

continuity

• Reduce transformation

time

• Support upcoming

changes

• More efficient HR

services

• Globally standardized

HR processes

• Reduce transformation

time

Bu

sin

es

s Im

pac

t

• Maximize net profit

• Reduce overall timeframe

• Reduce risk endangering

transaction

• Maximize net profit

• Reduce time for integration

and synergies

• Ensure business running

smoothly

M&As Divestitures Restructuring

Finance&Controlling Logistics & Operations HCM

System harmonization & consolidation

• Reduce run and project costs and IT spending

• Reduce complexity in operations and development

• Ensure business continuity

• Support changes in business

© 2013 SAP AG. All rights reserved. 6

Business transformation

Increased agility

Process innovation

Ease M & A and outsourcing

Management of IT complexity

Development efficiency

Operations efficiency

Landscape consolidation

Reduction of migration risk

Business process productivity

Business process quality

Increased insight

Business

strategy

Processes and

organization

IT management

From Business Strategy To IT Architecture

supplier enterprise customer

physical & IT resources

© 2013 SAP AG. All rights reserved. 7

Agenda System Landscape Optimization

The challenge of reflecting business requirements on your SAP landscape

SAP’s answer: System Landscape Optimization

SLO Services Portfolio

Credentials and Benefits of using SLO

© 2013 SAP AG. All rights reserved. 8

Transformation Needs Realized Via SLO Services

Set up test

landscapes

(TDMS)

Performance

Optimization

Decommission

legacy systems

(ILM)

Develop

transformation

road maps

Document

transformation

results

Carry out

technical

analyses

Minimize

system

downtime

Process

optimization

Structural

optimization

Data

harmonization

= = = =

Region 1

Region 2

Region 3

BU

1

BU

1

BU

1

Change

Transformation scenarios

Merge

Split

Specific project requirements

© 2013 SAP AG. All rights reserved. 9

How Transformation Requirements Are Realized Via SLO

services

How to:

Minimize risks ?

Software-based in-depth

analysis of as-is situation

Consideration of

business objectives

Analysis of technical

requirements and

optimization potential

Estimation of efforts and

costs

Creation of solution

approaches

encompassing all

possible transformation

scenarios

Setting-up a project plan

Implement a blueprint

Carry out technical

transformation activities

Use accelerators for

specific technical

requirements ...

Transformation

requirements

Realization via SLO services

Analysis and

evaluation

End To End

support

Requirements

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Value of Transformation Via SLO Services

High

Re-implementation required

Change management Impact on daily

business

Minimum

No disruption of business processes

Only Need for harmonization & testing

High

New setup & alignment of processes required

Manual

effort

Minimum

Migration done via proven SAP technologies

- No manual posting procedure

- Production migration on the weekend

Harmonizing only conflicting data

(e.g. Repository, Customizing)

Low

Not possible

Limited

Destruction of document flow

Data access only via old structure

Business

value

High

Transfer of complete and open processes

Preservation of all historical data

Continuation of document flow

Data continuity and consistency

Saving time and money by operating on

database level

SLO approach Standard approaches

© 2013 SAP AG. All rights reserved. 11

Agenda System Landscape Optimization

The challenge of reflecting business requirements on your SAP landscape

SAP’s answer: System Landscape Optimization

SLO Services Portfolio

Credentials and Benefits of using SLO

© 2013 SAP AG. All rights reserved. 13

Sell, Buy and Restructure

Integrate newly acquired companies

Adapt system landscape to new or changed business requirements

Introduction of global business templates

Realignment of existing business processes and company portfolio

Exploit synergies in M&A scenarios

Realize carve-out scenarios

Realize complex reorganization scenarios without impacting ongoing

business operations

Leverage

Sell, Buy

and Restructure

Typical transformation requirements

M&As Divestitures Restructuring

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The Solution

SLO Services For Sell, Buy And Restructuring Scenarios

Initial assessment of individual technical integration or approach to divestiture

Software-based technologies and standardized methods combined with the flexibility to fulfill special customer requirements

Scenario-based and comprehensive services for acquisitions, divestitures and reorganizations

Application of performance optimization measures to minimize downtime during productive conversion

“Ajinomoto decided for the

System Landscape

Optimization group within

SAP Consulting due to its

superior quality and

efficiency.”

Alexandre Telles Systems manager, Ajinomoto do

Brasil ind. e Com. de alimentos

Ltda.

“

Key features

Sustained, undisrupted business operations due to experience and know-how of SAP experts throughout realization phase

Reduced maintenance and project costs: Intelligent use of services and careful design of target landscape

Meet legal and regulatory requirements through safeguarding of all historical data

Business benefits

© 2013 SAP AG. All rights reserved. 15

Sell, Buy And Restructure

Customer Successes

Challenges and Opportunities

Merge 3 companies into 1 in 4

months with 2 going-live events

Execute merger process in parallel

with 2 other major projects,

maintaining control over all

project-related activities

Objectives

Harmonize and unify processes,

master data, and transactional

data

Execute merger at minimal cost

and effort in the business, service,

and it areas

Facilitate future mergers and

acquisitions

Benefits

Reduced project time from 10

months to 4, when compared to

a conventional scenario

Reduced project and operational

effort

Lowered impact on user by

maintaining organizational

structure codification

Reduced implementation costs

Challenges and Opportunities

Merge 2 companies with different

company codes into the same

SAP software landscape

Implement a secure solution as

soon as possible with minimal

impact on production processes

Fortify financial, accounting, and

tax structures

Objectives

Unify data, processes, and

transactions

Implement merger at reduced cost

and effort and minimize risks while

maintaining business continuity

Benefits

Significant savings in effort and

resources in comparison to a

conventional project realization

Minimal impact on the users

Increased competitiveness

Lower cost of business

operations

© 2013 SAP AG. All rights reserved. 16

M&A and divestiture scenarios:

Acquisition of entire company,

business unit (BU) or asset (e.g.

factory),

Divest company or part of company

Target company or business unit to

be either integrated or kept as

separate subsidiary

Migration of one SAP system into

another SAP system

Conversion from regional to

business unit oriented organization

(or vice versa)

Complete business processes to be

outsourced or establishment of

shared services

Company Carve-Out

Plant Split

Plant Reallocation

Business requirements

Major

Transformation Solutions

Company Code Split / Transfer

Sell, Buy And Restructure

Overview on major transformation scenarios

Company Code Merge

M&As & Divestitures

Restructuring

© 2013 SAP AG. All rights reserved. 17

Harmonize & Unify Data

Typical transformation requirements

Harmonize & Unify

Data

Finance&Controlling Logistics & Operations HCM

Finance & Controlling

Manage regional disparities (e.g. languages, tax

regulations)

Establish standard global reporting guidelines (IFRS)

Centralize and align existing financial and controlling

structures

Change local currencies or introduce a parallel currency

Logistics&Operations

Standardize & harmonize logistic processes and data

Optimize Sales & Service and Sales Order Management

HCM

Create a stand-alone

HCM system

Integrate formerly

separated HCM system(s)

© 2013 SAP AG. All rights reserved. 18

“The merger itself was

flawless and met all quality

standards. In fact, the

implementation ended up

15% below the estimated

budget.”

Christian Ø. Kristensen, IS Delivery Manager, Grundfos

The solution

SLO services for Harmonize & Unify Data scenarios

System analysis – Evaluation of all businessrelated transformation requirements

Optimization and unification of internal processes and overall operations

Adaptation of data structures to new business requirements

Harmonization of business data consistently across all systems and applications in use

Enable reporting in different currencies (e.g. for group reporting)

“

Key features

Adherence to global standards through corporatewide alignment of data structures and business processes

Transparent global reporting through unification of controlling and financial data

Consistency and reliability of your production and logistics data, without redundancies

Adaptation of IT infrastructure to reflect corporate priorities

Compliance with legal and reporting requirements

Business benefits

© 2013 SAP AG. All rights reserved. 19

Unify & Transform Data

Customer Successes

Challenges and Opportunities

Eliminate slow and resource-

intensive processes that hinder

Grundfos in establishing a new

global strategy

Unify financial structures to enable

a shared service center and to

support further globalization and

company growth

Increase transparency across

business operations worldwide

Objectives

Provide an optimized IT

infrastructure that enables

Grundfos to support decentralizing

sales and distribution units and

establishing cross-market financial

reporting

Deliver a solution to accelerate

Grundfos’ financial reporting and

business processes by merging 3

separate controlling areas

Reduce overall maintenance

efforts realize a smooth and

effective merger of 3 controlling

areas with no impact on

production

Benefits

Supported Grundfos’ global

strategy by harmonizing and

consolidating the company’s IT

infrastructure

Enabled cross-market financial

reporting

Increased transparency within

the entire organization with

decentralized sales and

distribution units

Freed up resources for strategic

tasks, thanks to optimized

controlling processes

© 2013 SAP AG. All rights reserved. 20

Financials

and

Controlling

&

Currency

Conversions

Harmonize financial data (Chart of

Accounts, Fiscal Year etc.)

Adapt currencies for financial

statements

Create central finance system

Implement parallel accounting

Align financial reporting to global

standard (e.g. IFRS)

Introduce shared service center

Harmonize controlling and profit

center processes

Unify & Transform Data

Overview on major transformation scenarios

Business requirements

Profit Center Rename / Merge

Chart of Accounts Conversion

Local /Parallel Currency

Conversion

Controlling Area Rename

Plant Rename

Change of Fiscal Periods

Major

Transformation Solutions

© 2013 SAP AG. All rights reserved. 21

Logistics

and

Operations

Standardize sales processes across

regions and business lines

Harmonize sales master data

Align customer and product master

data with suppliers and customers

Merge divisional or country based

sales organization into global sales

organization (or vice versa)

Merge service centers across

locations and business units

Harmonize supplier / customer

master data

Standardize procurement processes

and interfaces

Standardize production processes

Increase transparency in investment

and innovation processes

Harmonize material master data

Unify & Transform Data

Overview on major transformation scenarios

Business requirements

Material Group

Conversion/Merge

Duplicate Scan

Purchasing Organization Merge

Depreciation Area Change

Product Hierarchy Change

Sales Organisation Merge

Major

Transformation Solutions

© 2013 SAP AG. All rights reserved. 22

Consolidate & Unite Landscape

Typical transformation requirements

Consolidate &

Unite Landscape

Create a more flexible and simplified system landscape

Lower the total cost of ownership

Facilitate maintenance

Integrate companies currently running on a separate instance

Build up non-productive systems quickly and cost-effectively (TDMS)

Decommission legacy systems / apply retention policies (ILM)

© 2013 SAP AG. All rights reserved. 23

The Solution

SLO Services For Consolidation Scenarios

“The System Landscape

Optimization group of SAP

Consulting offered the

expertise and experience

required to get the job done

– and in the defined

time frame too…“

Verena Holz Project Manager, HOCHTIEF

Aktiengesellschaft

“

Detailed system analysis to identify conflicting data and technical pitfalls

Build up a single or multi-client environment

Merge complete SAP systems and

Process data migration – Transfer only selected data into a defined target environment

Key features

More transparency and insight into the consolidated landscape

Ability to leverage data knowledge and data consistency

High-quality data through harmonization and consolidation efforts

Clear and transparent reporting via fast and easy access to a centralized system

Lower administration costs thanks to a reduced number of data centers and systems

Hybrid consolidation approach – and optional upgrades and Unicode conversion approaches

Business benefits

© 2013 SAP AG. All rights reserved. 24

Consolidate & Unite Landscape

Customer Successes

Challenges and Opportunities

Centralize a distributed it

landscape with separate

installations of the SAP ERP

application in various countries

Provide a powerful it foundation

for the future

Objectives

Consolidate the IT environment

by transferring individual clients to

a central system, reducing

operating and maintenance costs

Upgrade to the latest release of

SAP ERP with minimum possible

downtime

Perform a Unicode conversion

Benefits

Standardized IT environment for

the entire HOCHTIEF group,

based at Capgemini’s central

data center in Frankfurt,

Germany

Minimum downtime ensured by a

combined project approach

Significant reduction in operating

and maintenance costs

More straightforward

maintenance and support

Technological basis for

introducing and leveraging state-

of-the-art functionality in the

future

© 2013 SAP AG. All rights reserved. 25

Consolidate

&

Unite

Transform from regional to

business unit oriented organization

(or vice versa)

Reduce the number of SAP

systems

Template roll-out:

Migrate existing SAP and legacy

systems to new or existing system

Consolidate clients into single-

client system

Harmonize data across functions

and systems

Client Transfer

(with or without upgrade)

System / Client Merge

Process Data Migration for ERP

Consolidate & Unite Landscape

Overview on major transformation scenarios

Business requirements

Major

Transformation Solutions

Implement TDMS

(More details)

Decommission legacy systems /

apply retention policies Implement ILM

Build up non-productive systems

© 2013 SAP AG. All rights reserved. 27

Meet compliance and governance needs

Data Governance Services

Data Quality Management Services

Information Lifecycle Management Services

Improve business strategies and insights

Data Warehousing Services

Data Integration Services

Master Data Management Services

Drive operational excellence

Data Migration Services

Data Harmonization Services

System Consolidation Services

SAP Services for EIM

© 2013 SAP AG. All rights reserved. 29

Information Lifecycle Management

System Lifecycle and Landscape Transformation

Transform

Transform

SA

P s

yste

m 1

N

on

-SA

P s

yste

m

SA

P s

yste

m 2

ILM Retention Management

SAP LT

Migration

SLO /

SBO

Migration

ILM System Decommissioning

ILM System

Decom.

Combined ILM System

Decommissioning and SBO Approach

CREATE RUN RETIRE

SAP

SAP

© 2013 SAP AG. All rights reserved. 30

Information Lifecycle Management

SAP NetWeaver ILM – Retention Management

Customer Pain Points

Data volume growing exponentially

Financial audits and tax requirements

Data retention requirements from governments

and legal entities

Data destruction only in legally compliant manner

The SAP NetWeaver ILM solution supports you

in:

Efficiently managing information from its creation

to destruction

Centrally managing and enforcing retention

policies

Maintaining separate archives per retention

period and responsibly destroying data after

retention period expired

Finding and protecting data in case of

law suits

Expiration

Date

Data Archives

Expiration

Date

SAP with ILM

Data Archives Data Archives

Retention

Policy

Management

© 2013 SAP AG. All rights reserved. 31

Information Lifecycle Management

SAP NetWeaver ILM – System Decommissioning

Customer Pain Points

Large and complex system landscapes

Growing energy costs and pressure to become

greener

Financial audits and tax requirements

Data retention requirements from governments

and legal entities

The SAP NetWeaver ILM solution supports

you in:

Extracting and consolidating your legacy data

into a central instance

Completely shutting down SAP and/or non-SAP

legacy systems

Retaining on demand access to data from

legacy systems

Respond to tax audits and create financial

reports

SAP and

Non-SAP

SAP NW ILM Retention

Warehouse

SAP SAP

SAP

SAP

SAP ILM

© 2013 SAP AG. All rights reserved. 32

Agenda System Landscape Optimization

The challenge of reflecting business requirements on your SAP landscape

SAP’s answer: System Landscape Optimization

SLO Services Portfolio SAP Landscape Transformation (SAP LT)

Credentials and Benefits of using SLO

© 2013 SAP AG. All rights reserved. 33

Center of Expertise (CoE)

SA

P

SL

O C

on

su

ltin

g

Serv

ices

P

artn

er E

ng

ag

em

en

ts fo

r SA

P L

T

SAP LT Support Services

SAP Premium Engagements

Transformation Platform SAP Landscape Transformation software

Preconfigured

Transformation Solutions

Tailored object-based

transformations

E2E

Transformation Solutions

Highly automated and

standardized transformations

Custom-Built

Transformation Solution

Default platform for any SAP

transformation requirement

Complementing SAP Consulting Services

SAP Landscape Transformation (LT) Software

© 2013 SAP AG. All rights reserved. 34

SAP Landscape Transformation (LT) Software

Analysis & Transformation Capabilities

Engine: basic (mandatory)

Engine: organizational change

Carve-Out:

Company

Codes

Reorganize:

Profit Centers

Merge:

Company

Codes

Controlling

Areas

Profit Center

Cost Center

Sell, Buy, and Restructure

Engine: value chain harmonization

Convert:

Chart of

Accounts

Cost Center

Profit Center

Fiscal Year

Asset Classes

Asset Account

Determination

Customer

Numbers

Vendor

Numbers

Rename:

Controlling

Areas

Company

Codes

Material

Numbers

Unify and Transform Data

Engine: consolidation

Transfer:

Set up Multiclient System

Environment

Consolidate & Reduce IT Cost

Analyses & Technology Platform

SAP NetWeaver Analysis

ECC Business Application Analysis

Company Code Object Analysis

Report Variant Analysis & Coding Scan

Repository & Customizing Comparison

Scenario-Specific Analyses

© 2013 SAP AG. All rights reserved. 35

Agenda System Landscape Optimization

The challenge of reflecting business requirements on your SAP landscape

SAP’s answer: System Landscape Optimization

SLO Services Portfolio

Overview on SLO Approaches

Credentials and Benefits of using SLO

© 2013 SAP AG. All rights reserved. 36

SLO Technology

General Technical Approach

Table pool

ABAP gene-

rator (write)

Control

DB

Source system(s) Target system(s) Migration and conversion:

Read and change data on

the fly

DB read data

via RFC write data

via RFC

Domains

Tables

Fields

Logic

ABAP gene-

rator (read)

© 2013 SAP AG. All rights reserved. 37

Efficient tool-based

analysis of as-is

situation

Identification and

quantification of

optimization potential

SLO knowledge and

experience

Check of several

possible solutions

Recommend the best

solution for the given

project

Reliable estimation of

work required

Implementation by

SLO experts

Application of SLO

Services

Proven methods:

- Conversion

- Migration

Generic environment

for development

Performance

Consulting

Archiving

DB-Migration

Technical

Consulting

Co-operation with other SAP teams if required

... Business

Consulting

Blueprint Implementation Analysis

Standardized And Software-Based Delivery Process

Ensuring High Quality And Reliability Of Results

SLO

Development

Project management

© 2013 SAP AG. All rights reserved. 38

Typical Project Execution

High Level Milestone Plan

Legend: SLO activity milestone prepare test system customer testing

2013 July August September October November December

Preparation

Conception

Implementation

Testing

• Functional test

• User / Acceptance

Test

• Final rehearsal

Go Live

Scoping workshop

January February

2014

Sign off scenario

Sign off concept

Go live

Project Phases

© 2013 SAP AG. All rights reserved. 39

Agenda System Landscape Optimization

The challenge of reflecting business requirements on your SAP landscape

SAP’s answer: System Landscape Optimization

SLO Services Portfolio

Overview on SLO Approaches

Credentials and Benefits of using SLO

© 2013 SAP AG. All rights reserved. 40

System Landscape Optimization Group

Overview

Where we are

Over 280+ dedicated resources

world-wide in over 20 cities

Headquarters in Germany, Walldorf

Development & Support in

Germany and India

3 Hub sites in APJ: Singapore,

Sydney, Tokyo

What we do

Business driven IT Transformation

work

Deliver >80% productized services

to cover transformation

requirements

Realize customer-specific

transformation requirements

Delivery services around TDMS,

ILM and SAP Landscape

Transformation (SAP LT)

Who we are

System Landscape Optimization

(SLO) Group

Experts for IT transformation

scenarios (Consolidation,

Harmonization, Unification,

Optimization)

Thought Leaders for SAP

Transformation Software and

Services

How we do it

Over 20 years experience during

planning, architecture, execution

and support

Lower the SAP TCO through best

practices, standardized

methodologies and technologies,

and expert consulting

Technologies / Products support

project setup as well as execution

© 2013 SAP AG. All rights reserved. 41

Benefits From SLO Services I

Unique, technology-based and method-based approach

Full service offering from strategy to implementation

High degree of standardization: fast, safe, flexible and

cost-efficient

High quality of tried-and-tested solutions

Flexible adaptation to customer-specific requirements

Extensive knowledgebase; one-stop shop for all relevant

services

Experience

More than 20 years experience in transformation projects

More than 10,000 migration, harmonization, and

consolidation projects worldwide.

© 2013 SAP AG. All rights reserved. 42

Benefits From SLO Services II

Easy transfer of all data and documents into target

structure Particularly important for long-term projects

Availability of data and document flow for all completed and

open transactions in target structure

High performance conversion

No key date Technical conversion not bound to key date

Technical implementation with special features

© 2013 SAP AG. All rights reserved. 43

System Landscape Optimization

Project excellence and successes

… and many more

© 2013 SAP AG. All rights reserved. 44

Further Information

SLO Overview documents:

SLO Overview Brochure

SAP LT Overview Brochure

SLO Dashboard – Central access to SLO documents (Sales version)

IM:

Golden Pitch - Overview of SAP's solutions portfolio for IM

Services Portfolio - Overview of SAP Services portfolio for IM

ILM:

ILM Solution Brief - Managing the information lifecycle

ILM Service Brief - SAP NetWeaver ILM Implementation Services

Thought Leadership Paper - Implementing an Enterprise Information Management Strategy

System Landscape Optimization group

Web Pages:

SAP Service Marketplace: http://service.sap.com/slo

SAP.com pages: www.sap.com/slo

Thank You!

© 2013 SAP AG. All rights reserved. 47

© 2013 SAP AG. All rights reserved.

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