run sap overview

Making the Most of Your SAP Projects

John KrakowskiSenior ConsultantSAP Solution ManagerSAP Active Global Support

Greg PikeSenior Vice President SAP Active Global SupportSAP Americas

Why the Run Phase can’t be an Afterthought!

© SAP 2008 /

The Nature of Business Is ChangingBusiness Networks Lead to More Innovation and Faster Integration

2000 2007 2010

» INCREASED SAP LANDSCAPE INTEGRATION

Business NetworksNo. of users

Every customer has mission-critical applications along with integration needs

SAP landscapes have become more sophisticated the more comprehensive and integrated they are

Technological innovation is accelerating based on a business need for differentiation and advantage

SAP provides advanced support options to manage innovation and integration, risk, and TCO

Today’s business reality:

Managing high speed of innovation and integration, risk and total cost of operations is at the heart of End-to-End Solution Operations

© SAP 2008 /

Running business applications through thecomplete life-cycle is a challenge

© SAP 2008 /

How to Survive in Today’s Fast Pace IT Environment

Customers must masterComplexityTechnologySkillsResources

RisksCosts

Availability? Performance?

Compliance?

Administration?

Process and Data Transparency?

HOW TO Implement End-to-End Operations for mission-critical processes?

© SAP 2008 /

Reasons to Consider Solution Operations Impact on SAP Operational Costs

0

20K

40K

60K

80K

100K

ApplicationMgmt. IT Infrastructure

Aver

age

Cos

t per

FTE

(USD

)

Average Cost per FTE

L0

L1

L2

L4

L3

L5

Incident Mgmt.

BPI & AMService Level Mgmt.

AvailabilityMgmt.

SecurityMgmt.

CapacityMgmt.

ContinuityMgmt.

ProblemMgmt.

ConfigMgmt.

ChangeMgmt.

ReleaseMgmt.

Strengths in Key Capability AreasHigher levels of maturity around Key Capabilities (right) correlate to lower costs in the corresponding operations area (lower right).

For example, release, problem, and configuration management have impact on costs in infrastructure and application management (lower right).

The impacted operational areas are highlighted in the model (below) illustrating the different business and IT stakeholders in SAP solution operations.

LessMature

MoreMature

LessMature

MoreMature

Run SAP facilitates the implementation of End-to-End Solution Operations

Run SAP is ASAP for OperationsIt provides Best Practices, Content, Services, Training

and tools for E2E Solution Operations

© SAP 2008 /

Implement End-to-End Solution Operations with Run SAP

SAP Standards for Solution Operations

Define central E2E operations tasks

RoadmapAccelerate the

implementation of E2E operations

Trainings &Certification

Provide up-to-date skills for the ecosystem

ServicesEngage SAP to implement E2E operations

SAP Solution ManagerProvides all tools for E2E operations

Run SAP

The Importance of a Methodology for the Run Phase

© SAP 2008 /

Leverage What you Already Know to Implement Operational Change

Management attentionStakeholders from business and ITProject manager Periodic reporting proceduresClearly defined escalation path

Need for organizational changeIdentification of technical prerequisitesChange control management

Clearly defined budgetProject plan and work breakdown structureStructured timelineMilestones

Requirements managementScope managementAgreement of project volume

Plan and Schedule Responsibility

Targets EnvironmentProject management

© SAP 2008 /

Project management methodology ensures quality, measurable changes and can be applied to Operational Phase of the Solution Lifecycle

© SAP 2008 /

Run SAP is a phased methodology based on world-class knowledge

Application management

Technicaloperations

Business process operations

End-user support

Technicalinfrastructuremanagement

Change management

Customdevelopmentmanagement

Application management concept

Technicalinfrastructure design

Technical operationsconcept

Change managementconcept

End-usersupport concept

Business process operationsconceptCustom Dev.managementconcept

Technical operationsimplementation

Application managementimplementation

Change management implementation

End-user supportimplementation

Technicalinfrastructureimplementation

Business process operationsimplementationCustom Dev.managementimplementation

Project setup

Scope definition

Operationalrequirements analysis

Governancemodel for operations

Solution transition to enterprise SOA

Technical requirements and architecture

Final testing and sign-off

Knowledge transfertraining andcertification

Handover

Go live ofoperations

Assessment &Scoping

Design of Operations

Setup ofOperations

Handoverinto Production

Operations andOptimization

E2E Solution Operations

Enterprise SOA

Readiness

© SAP 2008 /

Quality & Innovation Management; Protection of InvestmentEstablish One Single Source of the Truth

BUSINESS

Global Business ProcessChampion

Regional Business ProcessChampion

Program Management Office (PMO)

End User,Key User

Application ManagementQUALITY MANAGEMENT

Integrated Q-Management, One source of the Truth

BusinessProcess Operation

Custom Development SAP Technical Operations

IT Infrastructure

IT

Customer Center of Expertise CharterOne Single Source of the TruthIntegrated Q-ManagementAccelerated Innovation

End-to-End (E2E) Operations StandardsITIL-Based Standards Mapped to an Organizational Model

SAP standards for solution operations define operations processes aligned with stakeholders

- Exception handling

- Data integrity - Change requestmanagement

- Test management

- Upgrade mgmt.

- Qualitymanagement

- Enterprise SOA readiness

- Systemadministration

- System monitoring

- Incidentmanagement

- Root causeAnalysis

- Change ControlManagement

- Minimumdocumentation

- Remotesupportability

- Business process and interface management

- Data volume management

- Job scheduling management

- Transactional consistency

Standards are the key to unlocking quality and driving costs out of your operations!The end-to-end solution operations standards are SAP’s support process best-practices.

- Root cause analysis

- Change control management

- Systemadministration

- Business process and interface management

- Upgrade Mgmt- Quality

Management

Training curriculums available© SAP 2008 /

© SAP 2008 /

Reasons to Maintain QualityImpact on SAP Operational Costs

Costs (as % of Revenue)

0

0.002 %

0.004 %

0.006 %

0.008 %

0.01%

0.012 %

0.014 %

0.016 %

0.018 %

Headcount Technology Outsourcing Out-Tasking

All CCC/COEs

More Mature CCC/COEs

Maturity in SAP Operations Means Lower Costs.

Mature CCCs and COEs tend to have lower SAP solution operation costs as a percentage of revenueInvesting in continuous improvement of SAP solution operations requires framing the value in the context of the impact a CCC or COE can have on its company:

Smooth and reliable operation of business processesFast and successful realization of new business requirements

© SAP 2008 /

SAP Standards for Solution Operationsare implemented in steps

Installation ofRoot Cause Analysis

Tools

Implementation ofOne Transport Order

(Change Control Management)

Business ProcessIntegration

& Automation

Enterprise SOA Readiness

SAP Standards for Solution OperationsUpgrade

Enterprise SOA ReadinessRoot Cause Analysis

System Administration

Incident Management

System Monitoring

Minimal Documentation

Remote Supportability

BPM & Interface Monitoring

Data Volume Management

Job Scheduling Management

Transactional Consistency

Data Integrity

Exception Handling

Change Control Management

Change Request Management

Testing

SAP Standards for Solution Operations

© SAP 2008 / Page 13

SAP Enterprise Support

SAP Enterprise SupportManages innovation

and integration in SAP solution landscapes

+Value Prop… Enabled by…

Delivered via…

The offering…

Global Support Backbone

Mission-Critical Support

Continuous quality checksRobust SLAsSupport advisory7 x 24 root cause analysis

Run SAP

Industry-leading best practicesRun SAP methodology for end-to-end solution operationsConsulting, training, and certification available as additional offerings

Consistent standardsLifecycle managementBusiness process monitoringCustom code managementRemote supportabilityDiagnostics

InnovationContinuous improvementComplexity masked

Protection of InvestmentTCO reductionRisk reduction

End-to-EndSolution Operations

SAP Solution Manager, enterprise edition, and the SAP service infrastructureplatform On demand 7 x 24 support integrationSAP Service Marketplace

Holistic support model to enable continuous improvement & successful solution operations at lower risk & cost

End-to-End Training Curriculum Available

© SAP 2008 /

© SAP 2008 /

Siemens: SAP End-to-End Change Control Management

First levelSecond level

Third level– Fourth level

– Fifth level

© SAP 2008 / Page 16

© SAP 2008 /

Siemens: SAP End-to-End Business Process Integration & Automation

First levelSecond level

Third level– Fourth level

– Fifth level

© SAP 2008 / Page 17

SAP Solution Manager is the platform for SAP Application Management and Administration

© SAP 2008 /

SAP Solution Manager the central platform for E2E Solution Operations

“Deploying SAP Solution Manager is a best practice step every customer should take to prepare for the world of enterprise service-oriented architecture.”

Derek Prior, AMR Research

© SAP 2008 / Page 18

SAP Solution Manager• Protects investment while stimulating

innovation• Enables integrated solution lifecycle

management• Provides consistent quality management

process across all technology stacks & code bases, for the entire SAP platform

• Manages the fast pace of innovation & integration and the total cost of operation for customers

© SAP 2008 /

SAP Solution ManagerFrom Awareness to Action

SAP is aware of customer pain points.

Require-ments

Design

Deploy

Build & Test

Optimize

Operate

Application Management

Pain points are addressed by best practices: SAP Standards for E2E Solution Operations

Require-ments

Design

Deploy

Build & Test

Optimize

Operate

Application Management

SAP Solution Manager provides all capabilities for E2E Solution Operations.

Implementation methodology for E2E Solution Operations: Run SAP.

Change Management

Solution Updates

Problem analysis

Monitoring Software logistics

Integration Validation

Integration Testing

Innovation Management

Transparency on Processes & Apps

Incident Management

Improvements of processes,components and solutionsMaintenance of

SAP Solutions

Root Cause Analysis

Monitoring of mission-critical processes

Deployment of solution updates

Integration Validation

Integration Testing

Innovation Management

Identification of critical business processes

Incident Management

SAP has compiled best practices for End-to-End (E2E) Solution Operations based on the experience from customer engagements over three decades.

© SAP 2008 /

Benefits from Adoption of E2E Solution Operations and SAP Solution Manager!

The right expertise leads to lower costs, fewer risks, and business value!

Aver

age

FTEs

Clients without customer COEand SAP Solution Manager

Clients with customer COEand SAP Solution Manager

-66%

Lower costs

More valueFewer risks

% o

f cus

tom

ers

repo

rtin

g

0%10%20%30%40%50%60%70%80%90%

100%

Customers reporting 98% orbetter system availability

Clients withcustomer COE andSAP Solution Manager

Clients withoutcustomer COE andSAP Solution Manager %

of c

usto

mer

sre

port

ing

0%

20%

40%

60%

80%

100%

Customer COE-delivered business value

Clients withcustomer COE andSAP Solution Manager

Clients withoutcustomer COE andSAP Solution Manager

Customer COEs with SAP Solution Manager benefit from:

Lower operational costs in SAP technology operations and SAP application managementEnhanced solution availability and reliabilityHigher reported perception of business value

Source: SAP 2007 CCC Benchmark Survey

Why Is This Important to Your Success?

Customer Issue: Short dumps/outages

Imported transports to production system out of sequence without testing/QA. Caused conflicts with objects already in production.

Required 2 days of expert intervention to manage transports

Outages disrupted mission critical systems, loss of productivity

Issues which were previously corrected were reversed, user confidence in system waned.

Implementing Change ManagementOne Transport Order (OTO)

Automates transports so they are applied in proper sequence on development and test systems before production. Assures that only authorized changes are applied.

Reduces time required to perform transports Expert skill levels no longer required to perform complicated transportsQuality control built in, less risk for processes that are outsourced

E2E Change Control Management

© SAP 2008 /

Value of Change Management in SAP Solution Manager

Mature Change Management Processes result in:

Positive Impact on Incident Management17% average reduction of incident volumeQuicker & more efficient tracking and analysis of changesDrives lower operational costs and operational efficiencies

Positive Impact on Resources

Controlling Frequency of ChangesReduced changes within the SAP ladscapeIncreased availability (98.6%) and reliability (93.1%)

02468

1012141618

BusinessProcess

Champions

ProgramMgmt.Office

ApplicationMgmt.

BusinessProcess

Operations

IT InfrastructureCustomDevelopment

All CCC/COEs

Low Maturity ChangeManagement CCC/COEsHigh Maturity ChangeManagement CCC/COEs

FTE’

s

Reference: SAP E2E Benchmarking Study

© SAP 2008 /

End-to-End Solution Operations and Run SAP The Value for You

End-to-End Solution Operations ensure efficientapplication management, and

Reduce time to resolve incidents and correct data inconsistencies

Improve resource utilization for problem diagnosis Improved end-user perception due to reliability of IT solutions

Increased transparency through centralized change management and clearly defined change processes

Provide comprehensive knowledge transfer

Value of Run SAP Methodology Improved expertise and skills

High level of standardization and quality

Efficient tools and processes

Successful implementation of your solution operations end-to-end

Reduced total cost of operations

© SAP 2008 / Page 23

Transforming Pain Points to Success with SAP Support Services

Value Realized by our Customers:

Reduction of period-end close by 2 days

Improved performance of core business processes by 64.3%

Report generation time reduced by 30%

Average critical issue time-to-resolution improved by 50%

Transformed support organization from reactive to proactive

Reduced average system response time by 58%

Data archiving strategy enabled potential cost savings over $16 million over 10 years

Improved time-to-resolution by 18% while increasing users by 120% users & 134% workload

61% improvement and total time savings of 8.9 hours for report run time

Improved response time for 10 million records from 72 hours to 2 hours

Initial response times reduced from 2 minutes to 8 seconds

© SAP 2008 /

Value of Incident Management in SAP Solution Manager

Mature Incident Management Processes result in:

Reduced Total Cost of Operations through...Positive impact on Resources

Increased clarity in roles & responsibilities Standardized methods, skills, tools enhances resource versatility– Dramatically reduces cost per FTEAverage of 65% cost reduction to manage SAP technical operationsAverage of 23% cost reduction for headcount costs

Positive impact on TechnologyAverage of expected cost reduction for technology was 51% over the solution lifecycle

Positive impact on Solution PerformanceHigher maturity correlates to enhanced SAP solution operation performanceAverage availability for these customers increased by 3% annually

© SAP 2008 / Reference: SAP E2E Benchmarking Study

Value of Business Process Integration & Automation in SAP Solution Manager

Mature Business Process Integration & Automation Processes result in:

Improved business process availability and continuity by average of 42%

Increased potential to maximize operational efficiencies in areas of:

Business Process Operations

Application Mangagement

SAP Technology Operations

Improved business preception of value from IT by:

Maximizing solution reliability and continuity

Preventing cost-intensive business process downtime

© SAP 2008 /

NOTE: 72% of customers surveyed did not have a process and 96% of those that did had BPI&A had an immature process


© SAP 2008 /

Benefits of Adopting SAP Solution Manager for IT & the Business

Business perception of value from ITMost Important Factors for Business How SAP Solution Manager Helps

High Availability and continuity of business processes E2E Business ProcessIntegration & Automation

Fast and efficient user support E2E Incident Management

Fast and successful realization of new businessrequirements E2E Change Control Management

Total Cost of Operations See graphic below. Automating processes in SAP Solution Manager provides enhances resource efficiency

Average Cost per FTE140K120K100K80K60K40K20K

0

Aver

age

Cos

t per

FTE

(USD

)

Business ProcessChampions

Program Mgmt. Application Mgmt. Business ProcessOperations

SAP TechnicalOperations

IT Infrastructure

All CCC/CoE’s

CCC/CoE’s w/high adoption Of Sol Man


© SAP 2008 /

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