SAP Implementation Life Cycle SAP Implementation is the whole of processes that defines a complete method to implement SAP software in an organization. It is based on best practices and case studies from various literature sources and presents a collection of processes and products that make up a complete implementation method to allow any organization to plan and execute the implementation of SAP (ERP) software The SAP implementation process is made up out of four main phases, The project preparation where a vision of the future-state of the SAP solution is being created, a sizing and blueprinting phase where the solution stack is created and training is being performed, a functional development phase and finally a final preparation phase, when the last tests are being performed before the actual go live.
The data table below provides a summary of all the concepts addressed in the process-data diagram. Concept
Definition
CHANGE MANAGEMENT
***Activities involved in (1) defining and installing new values, attitudes, norms, and behaviors within an organization that support new ways of doing work and overcome resistance to change; (2) building consensus among customers and stakeholders on specific changes designed to better meet their needs; and (3) planning, testing, and implementing all aspects of the transition from one organizational structure or business process to another. (www.gao.gov)
CHANGE MANAGEMENT DOCUMENTATION
All documentation that is required and being delivered whilst performing change management, e.g. the functional test cases and all the other documents a new end-user of SAP requires and the various tools and approaches used to manage change by the TSO. (Anderson, 2003)
Determination of where and when the costs are inquired within COST OF OWNERSHIP the context of the SAP solution stack and ongoing operations. ANALYSIS The analysis addresses all internal and external costs, both one-time as well as recurring (Anderson, 2003) CUTOVER
The process of transitioning from one system to a new one (Anderson, 2003)
CUTOVER PLAN
All documentation related to planning, preparing and executing cutover, describing how to lock down the system from a technical change management perspective, preparing the TSO for its new role and rolling out the SAP graphical user interface to all future end users. (Anderson, 2003)
DATA CENTER
A data center is a facility used for housing a large amount of electronic equipment, typically computers and communications equipment. (www.wikipedia.org)
DATA CENTER REQUIREMENT
A requirement for the SAP data center, i.e. a physical requirement like power requirements, a rack requirement, a network infrastructure requirement or a requirement to the network server. (Anderson, 2003)
DISASTER RECOVERY Requirement that focuses on downtime that lasts many hours to (DR) REQUIREMENT days or even weeks (Anderson, 2003) FUNCTIONAL TEST CASE
A set of conditions or variables under which a tester will determine if a certain business process works (www.wikipedia.org)
HIGH AVAILABILITY (HA) REQUIREMENT
Requirements that describes the amount of time that the system needs to be available to satisfy the needs of the users. (Anderson, 2003)
INSTALLATION DOCUMENTATION
All documentation related to the installation of an end-to-end SAP solution (Anderson, 2003)
The collection of current state system documentation, day-to-day and other regularly scheduled operations tasks, various OPERATIONS MANUAL installation and operations checklists and how-to process documents. (Anderson, 2003)
SAP
SAP AG is the name of the biggest European software company. The head office is in Walldorf, Germany. SAP was founded in 1972 as Systemanalyse und Programmentwicklung ("Systems Analysis and Product") by five former IBM employees in Mannheim, Germany. (www.wikipedia.org)
SAP IMPLEMENTATION PROJECT PLAN
A comprehensive project plan that contains all products that are delivered whilst performing an SAP implementation project (Anderson, 2003)
SOLUTION STACK
Set of software subsystems or components needed to deliver a fully functional solution, e.g. a product or service. (www.wikipedia.org)
SOLUTION STACK PARTNERS LIST
A list of all vendors that deliver the products that make up the SAP solution stack (Anderson, 2003)
SOLUTION VISION
A vision of the future-state of the SAP solution (Anderson, 2003)
STRESS TEST PLAN
A test plan that is focused at determining the stability of a given system or entity. It involves testing beyond normal operational capacity, often to a breaking point, in order to observe the results. (www.wikipedia.org)
TEST PLAN
A detail of how the test will proceed, who will do the testing, what will be tested, in how much time the test will take place, and to what quality level the test will be performed. (IEEE 829)
TRAINING
The acquisition of knowledge, skills, and attitudes as a result of the teaching of vocational or practical skills and knowledge that relates to specific useful skills (www.wikipedia.org)
TRAINING PLAN
Consisting of training units, a training plan is the result of hierarchical decompositions of a training goal, tailored according to the learning preferences and prior knowledge of the trainee. A plan is the means by which the trainee satisfies the goal. (www.ece.eps.hw.ac.uk/)
TSO
Technical Support Organization. The people that are committed to implementation and management of SAP. (Anderson, 2003)
TSO CHART
A chart that depicts the structure of the TSO. (Anderson, 2003)
Activity table The following table provides a summary of all of the activities that form the SAP implementation process. These activities will be described with more detail and elaborated with examples in the rest of this entry. Activity
Sub-Activity
Description
Craft solution vision
Refine and communicate a SOLUTION VISION of the future-state of the SAP solution, to sketch a design that meets both business and financial requirements. The focus should be on the company’s core business and how the SAP solution will better enable that core business to be successful.
Design and initially staff the SAP TSO
Design and staff the key positions of the SAP Technical Support Organization (TSO), the organization that is
Project preparation
charged with addressing, designing, implementing and supporting the SAP solution. Perform cost of ownership analysis
Perform a COST OF OWNERSHIP ANALYSIS to determine how to get the best business solution for the least money i.e. to determine where and when the costs are incurred within the context of the SAP solution stack.
Identify high Determine all HIGH AVAILABILITY and DISASTER availability and RECOVERY REQUIREMENTS, to plan what to do with disaster recovery later downtime of the SAP system requirements
Sizing and blueprinting
Engage SAP solution stack vendors
Select the best SAP hardware and software technology partners for all layers and components of the SAP SOLUTION STACK, based on a side-by-side sizing comparison
Staff TSO
Staff the bulk of the TSO, i.e. fill the positions that directly support the near-term objectives of the implementation, which are to develop and begin installation/implementation of the SAP data center.
Execute training
Train the various members of the SAP TSO, like data center specialists, high availability specialist and network specialists and train the end-users to give all the required SAP knowledge and skills
Build a new SAP DATA CENTER facility or transform Setup SAP DATA the current data center into a foundation capable of CENTER supporting the SAP SOLUTION STACK Perform installations
Install the (My)SAP components and technological foundations like a web application server or enterprise portal.
Identify and staff the remaining TSO roles, e.g. roles that Round out support relate to help desk work and other such support providing for SAP work.
SAP functional development
Address Change Management
Develop a planned approach to the changes in the organization. The objective is to maximize the collective efforts of all people involved in the change and minimize the risk of failure of implementing the changes related to the SAP implementation.
Address SAP systems and operations management
Create a foundation for the SAP systems management and SAP computer operations, by creating a SAP OPERATIONS MANUAL and by evaluating SAP management applications.
Perform functional, integration and regression tests
Test the SAP business processes, by executing functional tests to ensure that business processes work, integration tests to ensure that the organization’s business processes work together with other business processes and regression tests to prove that a specific set of data and processes yield consistent and repeatable results.
Perform systems and stress tests
Plan, script, execute and monitor SAP STRESS TESTS, to see if the expectations of the end users, defined in service level agreements, will be met.
Prepare for cutover
Plan, prepare and execute the CUTOVER, by creating a CUTOVER PLAN that describes all cutover tasks that have to be performed before the actual go-live
Final Preparation
Go Live
Turn on the SAP system for the end-users
Implementation processes Project preparation The project preparation phase, depicted below, focuses at two main activities, i.e. to make a setup for the TSO and to define a solution vision. These activities allow an organization to put in on the right track towards implementation.
Figure 2: Project preparation phase Design and initially staff the SAP TSO
Figure 3: TSO chart example
The first major step of the project preparation phase is to design and initially staff an SAP technical support organization (TSO), which is the organization that is charged with addressing, designing, implementing and supporting the SAP solution. This can be programmers, project management, database administrators, test teams, etc. At this point, the focus should be at staffing the key positions of the TSO, e.g. the high-level project team and SAP professionals like the senior database administrator and the solution architect. Next to that, this is the time to make decisions about choosing for internal staff members or external consultants. The image at the right shows a typical TSO chart. Craft solution vision The second project preparation job is to define a so-called solution vision, i.e. a vision of the future-state of the SAP solution, where it is important to address both business and financial requirements (budgets). The main focus within the vision should be on the company’s core business and how the SAP solution will better enable that core business to be successful. Next to that, the shortcomings of the current systems should be described and short but clear requirements should be provided regarding availability (uptime), security, manageability and scalability of the SAP system.
Sizing and blueprinting The next phase is often referred to as the sizing and blueprinting phase and forms the main chunk of the implementation process. The phase is illustrated below.
Figure 4: Sizing and blueprinting phase Perform cost of ownership analysis
Figure 5: Solution stack delta analysis This phase starts with performing a total cost of ownership analysis (TCO analysis) to determine how to get the best business solution at the lowest costs. This means to compare SAP solution stack options and alternatives and then determine what costs each part of the stack will bring and when these costs will be incurred. Parts of the stack are for example the hardware, operating system and database, which form the acquisition costs. Next to that, there should be taken a look at recurring costs like maintenance costs and downtime costs. Instead of performing a complete TCO analysis for various solution stack alternatives that would like to compare, it can be wise just to do a so-called delta analysis, where only the differences between solutions (stacks) are identified and analyzed. The image at the right depicts the essence of a delta analysis. Identify high availability and disaster recovery requirements
The next step is identifying the high availability requirements and the more serious disaster recovery requirements. This is to plan what to do with later downtime of the SAP system, caused by e.g. hardware failures, application failures or power outages. It should be noted that it is very important to calculate the cost of downtime, so that an organization has a good idea of its actual availability requirements. Engage SAP solution stack vendors
Figure 6: Simplified SAP solution stack A true sizing process is to engage the SAP solution stack vendors, which is the next step. This means selecting the best SAP hardware and software technology partners for all layers and components of the solution stack, based on a side-by-side sizing comparison. The most important factors that are of influence here are the estimated numbers of (concurrent) users and batch sizes. A wise thing to do is to involve SAP AG itself to let them create a sizing proposal stating the advised solution stack, before moving to SAP’s technology partners/SAP vendors, like HP, Sun Microsystems and IBM. A simplified solution stack is depicted at the right, showing the many layers for which software and hardware has to be acquired. Note the overlap with the OSI model. Staff TSO The TSO is the most important resource for an organization that is implementing SAP, so staffing the TSO is a vital job which can consume a lot of time. In a previous phase, the organization should already have staffed the most vital positions. At this point the organization should staff the bulk of the TSO, i.e. fill the positions that directly support the near-term objectives of the implementation, which are to develop and begin the installation/implementation of the SAP data center. Examples are: data center experts, network infrastructure experts, security specialists and database administration experts. There are many ways to find the right people within or outside the organization for all of the TSO positions and it depends on the organization how much time it wants to spend on staffing. Training One of the most vital stages of the implementation process is training. Very few people within an organization are SAP experts or even have worked with SAP software. It is therefore very important to train the end users but especially the SAP TSO: the people who design and
implement the solution. Many people within the TSO need all kinds of training. Some examples of these positions: • • • • •
SAP Network Specialists SAP Database Administrators SAP Security specialists Documentation specialists Et cetera
All of these people need to acquire the required SAP knowledge and skills or even SAP certifications through training. Moreover, people need to learn to do business in a totally new way. To define how much SAP training every person needs, a company can make use of a skillset matrix. With this matrix, a manager can identify who possesses what knowledge, to manage and plan training, by defining the height of expertise with a number between e.g. 1 and 4 for each skill for each employee. Setup SAP data center The next step is to set up the SAP data center. This means either building a new data center facility or transforming the current data center into a foundation capable of supporting the SAP solution stack, i.e. all of the technology layers and components (SAP software products) in a productive SAP installation. The most important factor when designing the data center is availability. The high availability and disaster recovery requirements which should have been defined earlier, give a good idea of the required data center requirements to host the SAP software. Data center requirements can be a: • • • •
Physical requirement like power requirements Rack requirement Network infrastructure requirement or Requirement to the network server.
Perform installations The following step is to install the required SAP software parts which are called components and technological foundations like a web application server or enterprise portals, to a state ready for business process configuration. The most vital sub steps are to prepare your OS, prepare the database server and then start installing SAP software. Here it is very important to use installation guides, which are published for each SAP component or technology solution by SAP AG. Examples of SAP components are: • • • • •
R/3 Enterprise - Transaction Processing mySAP BI - Business Information Warehouse mySAP CRM - Customer Relationship Management mySAP KW – Knowledge Warehouse mySAP PLM - Product Lifecycle Management
• mySAP SCM - Supply Chain Management • mySAP SEM - Strategic Enterprise Management • mySAP SRM - Supplier Relationship Management Round out support for SAP Before moving into the functional development phase, the organization should identify and staff the remaining TSO roles, e.g. roles that relate to helpdesk work and other such support providing work.
Functional development The next phase is the functional development phase, where it is all about change management and testing. This phase is depicted below.
Figure 7: Functional development phase Address change management The next challenge for an organization is all about change management / change control, which means to develop a planned approach to the changes the organization faces. The objective here is to maximize the collective efforts of all people involved in the change and to minimize the risk of failure of implementing the changes related to the SAP implementation. The implementation of SAP software will most surely come with many changes and an organization can expect many natural reactions, i.e. denial, to these changes. To fight this, it is most important to create a solid project team dedicated to change management and to communicate the solution vision and goals of this team. This team should be prepared to handle the many change issues that come from various sources like: • End-user requests
• • • •
Operations Data center team DBA group Systems management
SAP systems and operations management Next thing is to create a foundation for the SAP systems management and SAP computer operations, by creating a SAP operations manual and by evaluating SAP management applications. The manual is a collection of current state system documentation, day-to-day and other regularly scheduled operations tasks, various installation and operations checklists and how-to process documents. Functional, integration and regression testing Testing is very important before going live with any system. Before going live with an SAP system, it is vital do to many different kinds of testing, since there is often a large, complex infrastructure of hardware and software involved. Both requirements as well as quality parameters are to be tested. Important types of testing are: • Functional testing: to test using functional use cases, i.e. a set of conditions or variables under which a tester will determine if a certain business process works • Integration testing • Regression testing All tests should be preceded by creating solid test plans.
Final preparation The last phase before going live can be referred to as the final preparation phase and is depicted below.
Figure 8: Final preparation phase Systems and stress testing
Another vital preparation activity before going live with SAP is systems and stress testing. This means planning, scripting, executing and monitoring system and stress tests, to see if the expectations of the end users, defined in service level agreements, will be met. This can be done with SAP’s standard application benchmarks, to benchmark the organization’s configurations against configurations that have been tested by SAP’s hardware technology partners. Again, a test plan should be created at first. Prepare for cutover The final phase before going live with SAP is often referred to as the cutover phase, which is the process of transitioning from one system to a new one. The organization needs to plan, prepare and execute the cutover, by creating a cutover plan that describes all cutover tasks that have to be performed before the actual go-live. Examples of cutover tasks are: • Review and update all systems-related operations procedures like backup policies and system monitoring • Assign ownership of SAP’s functional processes to individuals • Let SAP AG do a GoingLive check, to get their blessing to go live with the system • Lock down the system, i.e. do not make any more changes to the SAP system
Go Live All of the previously described phases all lead towards this final moment: the go-live. Go-live means to turn on the SAP system for the end-users and to obtain feedback on the solution and to monitor the solution. It is also the moment where product software adoption comes into play. More information on this topic: • Product Software Adoption: Big Bang Adoption • Product Software Adoption: Parallel Adoption • Product Software Adoption: Phased Adoption
Critical success factors In order to successfully implement SAP in an organization, there are several things that are of great importance. First it is very important to get the support from all the people that are involved in implementing SAP, but also the people that will actually use the SAP software. Second it is essential to create a solution vision at the beginning of the implementation track, so that everybody within the organization knows why SAP is being implemented. Third and last it is very important to test the SAP hardware and software rigorously and to ensure that the end-users are ready to use SAP before going live, because there are many known projects that failed because of a lack of support and SAP knowledge...
