run sap: the importance of using the right methodology

Run SAPSmooth Operation of Business Processesand SAP®SolutionsThe Importance of Using the Right Methodology

SAP Active Global SupportDec. 2009

© SAP 2008 /

Challenges of today’s IT

Solution: Standardization of solution operations

Implementing Standards

Summary

Agenda

1

2

3

4

© SAP 2008 /

The Nature of Business Is ChangingBusiness networks lead to increasing innovation and integration speed

2000 2007 2010

Every customer has mission-critical applications alongwith integration needs

SAP landscapes become moresophisticated the morecomprehensive & integratedthey are

SAP provides advanced supportoptions to manage innovationand integration, risk andTCO

R/3R/3LegacySystemLegacySystem

ManguisticsManguistics

» INCREASED SAP LANDSCAPE INTEGRATION

Business NetworksNo. of users

MANAGING HIGH SPEED OF INNOVATION AND INTEGRATION, RISK ANDTOTAL COST OF OPERATIONS IS AT THE HEART OF RUN SAP

© SAP 2008 /

These Changes Bring New ChallengesComplexity & control loss lead to cost & innovation challenges

How to maintain innovation & competitive advantage with issues like:Supplier integration across the value chainMergers & acquisitionsRapid growthGovernance requirementsProliferation of new, enhanced technologies like SOA and Web 2.0… all of which require rapid & continuous technological improvement

CHALLENGE #1: Continuous Innovation & Differentiation

Key Challenges for a chemicals giant with multiple geographies is theintegration of suppliers directly in his supply chain.

Agreement of standardized data formats to enable electronically data exchangeIntegration external suppliers in electronic data interchange (EDI) processes in oneend-to-end monitoring systemSet-up cross company monitoring and issue tracking incl. agreed SLA’s

© SAP 2008 /




Key challenges of a leader in skincare and beauty products whenintegrating new acquired business unit:

Define business requirements and derive IT and operations requirementsRoll-out new processes and toolsEnable users, key-users and operations teamAdjust quality management processes and SLA‘s with hosting partner

© SAP 2008 /




Key challenges of a European telecom firm to cut costs and boostproductivity, while ADSL-business is rapidly growing:

New business line must be integrated in existing processes and IT landscapeUnexpected increase of contract volume and data volumeShorter ramp-up time for new product introductionEnabling of growing no. of employees in shorter timeframe incl. scalable user support concept

© SAP 2008 /




Key challenges of a large food and beverages company while fulfillingthe legal directive for traceability of all foodstuffs, animal feeds andingredients in all stages are:

Integrate new requirements throughout the supply chain, e.g. via implementation of RFID-enabled processes

– Ensure data is every time of high quality and available in order to meet governancerequired via additional reporting

– Set-up process and data flow documentation as part of the solution documentation

© SAP 2008 /




Key challenges of a large telecommunication company while and afterimplementing Service-oriented Architecture are:

Enablement of the organization to be ready for SOA (company organization and roles/skills)Harmonization and consolidation of the current IT implementationEnhancement of the operations procedures for change management to fit for web servicesrequirements

© SAP 2008 /

Downtime


Increasing Complexity is the #1Cause of System Failure.Economist Intelligence Unit, 2007

30% of issues incur time-to-resolutionof more than one day.Forrester, 2006

67% of mission-critical applicationshave more than 9 hours of downtimeper month.The Standish Group

ERP downtime costs $6,400 to $7,600per minute.BMC, 2006

CHALLENGE #2: Increased Cost & Risk

© SAP 2008 /



CHALLENGE #2: Increased Cost & Risk

EFFECTS

Delay of invoicing

Delay of company revenue

Loss of employee productivity

Downtime

© SAP 2008 /

Run SAP Helps to Reduce TCO and gives theFreedom to Invest in new Innovations

*Averages from various IT analyst reports e.g.Gartner Group, 2001; TCO = Total cost of ownership

Typical TCOSplit*

Implemen-tation

OtherLicenses

Operations

Infrastructure,systems

OptimizedOperations releases

investments

**

*

*

*40%

22%

20%

13%

5%provides access to further scale effectsApplying SAP E2E-Standardizationprovides access to further scale effectsin operations

Better quality in operations avoidexpensive incidents

Shorten recovery time withoptimization

Enhance Operations Automation, e.g.Job Scheduling Management

Prevent loss of your valuable businessdata by implementing SAP Standardsfor Data Integrity and TransactionalConsistency

© SAP 2008 /

Increase Value ThruMethodically Standardization

Key Factors for successfulIT Management

Key Elements forSuccessful Standardization

Innovation &Differentiation

Risk less and reliabilityE2E operations

Lower and transparentCost

StandardizedOperations

releasesInnovation

PROCESSES

ORGANIZATION

TOOL

© SAP 2008 /



» Processes and Methodology

– Introduction of E2E Standards for solution Operations

– Value of E2E Solution Operations for customers

– Example, customer quote

» Organization

» SAP Solution Manager

Agenda

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2

© SAP 2008 /

SAP standardizes End-to-End Solution Operations

SAP shares world class supportknowledge for End-to-End Operations

SAP Standards for Solution Operations:Define mission-critical operations processesProvide Best Practices and ImplementationRoadmapsBased on a general organizational modelTrainings/Certifications are availableAvailable for download athttp://service.sap.com/supportstandards

THE STANDARDS ALLOW TO SET UP BEST-IN-CLASS OPERATIONS

http://service.sap.com/supportstandards

© SAP 2008 /

You need not only toimplement, but also to managethe operations of businessprocesses after going live withthe software!

© SAP 2008 /

Millions $ (on time) due to performance optimizationMillions $ p.a. due to data volume managementIT Operations productivity increased by 100% - half of theend-user support staff is operating the same number ofusersDoubled number of productive systems by constantnumber of system operations staff

Freed up resources for innovation projects

Quote from Surgutneftegas on Stage atSapphire in Berlin on May 20th 2008

Rinat Gimranov, Surgutneftegas, Head of IT DepartmentViktor Tertyshnyy, Surgutneftegas, Head of the CCCResults from applying the E2E standards:

„

“

THE BENEFITS OF IMPLEMENTING STANDARDIZED OPERATIONSARE SHORTLY OVER-COMPENSATING THE PROJECT EFFORTS

© SAP 2008 / SAP Services / Page 16

Realized Benefits due to End-to-End Solution Operations

© SAP 2008 /




» Organization

– Introduction CCoE

– Value of a CCoE for customers



Agenda

1

2

Customer Center of ExpertiseGoals of the Customer COE

The Customer Center of Expertise drives transparency and integrated qualitymanagement for resolution of critical challenges across SAP solutionoperations

Standardize application management and establish a Single, Central Source of TruthProvide transparency to challenges and top issues and bring all stakeholder to the table to addressIntegrate organizational units via one end to end quality management processDraw innovation directly from SAP to avoid unnecessary modificationsManage in-house as well as Outsourced/Outtasked areas

BUSINESS

Global Business ProcessChampion

Regional Business ProcessChampion

Program ManagementOffice (PMO)

End User,Key User

Application ManagementQUALITY MANAGEMENT

Integrated Q- Management, One source of thetruth

BusinessProcess Operation

CustomDevelopment SAP Technical Operations

IT Infrastructure

IT

Customer COE

© SAP 2008 /

Customer Center of ExpertiseCentral Source of Truth and Integrated Quality Management

Establish a Central Source of TruthThe Customer COE drives the qualitymanagement process for all organizationsinvolved in implementing the processesand the systems that support theenterprise’s business processes.The objective is to ensure “one centralsource of the truth”.

Agreed and documented scope definitionsincluding functional and technicalspecificationsMission Control Center and co-ownership foreach key challengeProject status and Operational challengesare reported with defined and agreed TopIssues;Top Issues are owned by one team butmanaged collaboratively by all stakeholdersand organizations

Global Business ProcessChampion

Regional Business ProcessChampion

ProgramManagement Office

(PMO)End User,Key User

Application Management

BusinessProcess Operation

CustomDevelopment SAP Technical Operations

IT Infrastructure

© SAP 2008 /




» Organization


– Introduction of SAP Solution Manager

– Value of a SAP Solution Manager for customers


Agenda

1

2

© SAP 2008 /

SAP Solution Manager Enterprise EditionPlatform for Enterprise Support and Application Management

© SAP 2008 / Page 21

SAP Solution Manager Enterprise Edition

Reduces risk and lowers TCOthrough standardized and integrated E2E SolutionOperations

Optimizes business benefitsthrough a comprehensive and integrated qualitymanagement process

Leverages built-in innovationby making innovation a non-event and protectingexisting investments

SAP Solution Manager Enterprise Edition providesall capabilities and enables all services for SAP Enterprise Support

Require-ments

Design

Deploy

Build & Test

Optimize

Operate

ApplicationManagement

© SAP 2008 /

Require-ments

Design

Deploy

Build &Test

Optimize

Operate

ApplicationManagement

© SAP 2008 / Page 22

Application Management LifecycleSAP Solution Manager: Support Processes In Action

Innovation Management

Monitoring of mission-critical processes

Solution Implementation/ASAP

Identification of criticalbusiness processes

Integration Validation

Incident Management

Root Cause Analysis

Solution Documentationincl. custom code

Upgrade from R/3 toSAP Business Suite

Maintenance ofSAP Solutions

Integration Testing

Deployment ofsolution updates

Improvements of processes,components and solutions

SAP SupportServices

© SAP 2008 /

SAP Solution Manager Enterprise EditionCustomer Quote on Benefits

Protects investment while stimulatinginnovationEnables integrated solution lifecyclemanagementLeverages industry-leading standards foroperationsProvides consistent quality managementprocess across all technology stacks & codebases, for the entire SAP platformSupports mission-critical operationsManages the fast pace of innovation &integration and the total cost of operation forcustomers

© SAP 2008 / Page 23

Resulting in continuous improvement and successful solutionoperations at lower risk & cost

SAP Solution Manageraddresses our entireinfrastructuremanagement needs,reduces risk, lowersthe cost of ownership,and speeds the returnon investment for ouronline buying solution.

Guillaume Legros, ProjectLeader, Airbus FranceSAS „

“

© SAP 2008 /




» Run SAP Methodology

» Run SAP Services

» Education Curriculum

» Partner Program

Summary

Agenda

1

2

3

4

© SAP 2008 /

Implement End-to-End Solution Operationswith Run SAP

Mission

Run SAP provides a proven methodology to optimizeimplementation, upgrade and ongoing management of End-to-End Solution Operations, to reduce the Total Cost ofOperations along the entire solution lifecycle.

Run SAPAssessment& Scoping

SetupOperations

Operations& Optimizations

End-to-EndSolution

Operations

Handover intoProduction

DesignOperations

© SAP 2008 /

SAP Provides Aligned Methodologies Alongthe Solution Lifecycle

AcceleratedSAP (ASAP)provides a proven methodologyto streamline implementationand upgrade projects.

Run SAP provides a provenmethodology to optimize theimplementation and ongoingmanagement of End-to-EndSolution Operations.

© SAP 2008 / © SAP 2008 / Page 27© SAP 2007 / Page 27

Run SAP an Experience “to-go”Implementation methodology for E2E Solution Operations

RUN SAP FACILITATES THE IMPLEMENTATION OFE2E SOLUTION OPERATIONS

SAP Solution ManagerProvides the platform for E2E solution operations

SAP Standards forSolution Operations

Define central E2Eoperations tasks

RoadmapAccelerate the

implementation ofE2E operations

Trainings &Certification

Provide up-to-dateskills for the ecosystem

ServicesEngage SAP experts to implement E2E solution operations

Run SAP

© SAP 2008 /

A Proven Methodology due to PracticalExperience of the SAP Experts

„ Leverage standardized and proven methodologybased on SAP’s 35 year experience with 47,800 +customersIncludes a high level of standardization andquality for support and operations proceduresBased on comprehensive knowledge how to ‘run’SAP centric solutionsAttested the successful implementation of end-to-end solution operations with its invaluablebenefitsIncreased transparency through centralizedchange management and clearly defined changeprocesses

PRACTICAL EXPERIENCE IS KEY

© SAP 2009 /

Run SAP is a phased methodology based onworld-class knowledge (V3.0)

SAP Applicationmanagement

SAP Technicaloperations

Businessprocessoperations

End-usersupport

Technicalinfrastructuremanagement

Changemanagement

Custom codeoperations

SAP Applicationmanagementconcept

Technicalinfrastructuredesign

SAP Technicaloperationsconcept

Changemanagementconcept

End-usersupport concept

Business processoperationsconceptCustom codeoperationsconcept

SAP Technicaloperationsimplementation

SAP Applicationmanagementimplementation

Changemanagementimplementation

End-user supportimplementation

Technicalinfrastructuresetup

Business processoperationsimplementationCustom codeoperationsimplementation

Project setup

Scope definition

Operationalrequirementsanalysis

Governancemodel foroperations

Technicalrequirements andarchitecture

TransitionManagement

OperationalEnablement

Sign-off

Assessment &Scoping

DesignOperations

SetupOperations

Handoverinto Production

Operations andOptimization

End-to-EndSolution

Operations

Transition intoproduction

SOAReadiness

© SAP 2008 /

Run SAP for Industries

Available with Roadmap Version 2:

Run SAP for Retail,

Run SAP for Utilities and

Run SAP for Banking

Planned with Roadmap Version 3:

Run SAP for Automotive

Run SAP for Industries

© SAP 2008 /

SAP ServicesSupporting End-to-End Solution Operations

Continuously improve andsuccessfully operate solutionsmore efficiently with higherreliability and availability

Fully protect your solutionenvironment and ensure stability

Support mission-criticaloperations

Utilize industry-leading standardswith consistent methods,processes, and tools for theecosystem

© SAP 2008 / Page 32

SAP can help you to standardize your IT Operationsvia SAP MaxAttention, SAP Safeguarding and SAP Consulting Services

based on the experience of over 47,800 customers

PROJECT

ProgramMgr

Local

Partner

GlobalDelivery

Hub

Practice

© SAP 2008 /

Why SAP Services?The breadth and depth you need to succeed

35+ years of experience

Strategic solutions in more than 25 majorindustries

20,000+ SAP Services experts

Global 24/7 customer and partner support

Complete ecosystem with 3,850 partnerscovering strategy to execution

YOUR SUCCESS IS OUR SUCCESS!

© SAP 2008 / Page 33

Technical ManagementProject Management

Run SAP Training and Certification

© SAP 2009 /

Test Management

(Q1 2010)

3 days

© SAP 2009 /

Run SAP Implementation PartnerProfile

Prerequisite – SAP Services Partner

Adopt Run SAP methodology into own SAPimplementation standards

Implementation of End-to-End Solution OperationStandard/Methodology

Create own Run SAP Practice35 certified Support consultants for Global ServicesPartners – two regions minimum11 certified Support Consultants for Local ServicesPartners

Two Step Certification ProcessPartner Resources to pass certification exam to becomecertified SAP Support Consultants in the various rolesPartner organizations to pass audit based on adoption ofRun SAP

How to become Run SAPPartner!

Apply for participation via AGSPartner Enablement & Training

Certify your resources fortraining via SAP Education

Role Based Training

Adopt the Run SAPMethodology

Develop Go To MarketStrategies

Build a Run SAP practice

© SAP 2008 /

Key Points to take Home on Run SAP

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

Reduce time to resolve incidents and correct data inconsistencies

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

Increased transparency through centralized change managementand clearly defined change processes

Provide comprehensive knowledge transfer

Value of Run SAP MethodologyImproved expertise and skillsHigh level of standardization and qualityEfficient tools and processesSuccessful implementation of your solution operations end-to-endReduced total cost of operations

© SAP 2008 /

More about Run SAP and End-to-End SolutionOperations

Service Market Place

Public Information

www.service.sap.com/e2e

www.service.sap.com/runsap

www.sap.com/supportstandards

www.sap.com/education/e2e

http://www.service.sap.com/e2e

http://www.service.sap.com/runsap

http://www.sap.com/supportstandards

http://www.sap.com/education/e2e

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run sap: the importance of using the right methodology

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