First successful experience of sap erp implementation in iran

سازي پيادهتجربه موفق اولين سمينار SAP ايراندر

رياستيانمحسن سيد

1387 ارديبهشت 23، شريف صنعتيدانشگاه

Sharif University of Technology ,1387.02.23 , Riasatian

Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR

Prerequisite for ERP

TUGA SAP Project

Q&A


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


ERP

Enterprise Multi-national, multi-divisional, multi-functional

Integrated business processes

Based on knowledge and Best Practices

Free DB, Free OS, Free Language

Resource Looks all of the organisations’ resources

– Material ,Man, Time, Money,Machine

Planning Plans and controls where these resources are consumed to meet the

organisational goals

– Material Requirement Planning

– Production Planning


Necessity for ERP

Competition

Enhancement & Development

Disipline

Resource Constraint

Information Volume

Process Complexity


Solution-Hierarchical

Where is your company going?

What is the future?

What are the goals and metrics?

How do we get there?

What is the operational roadmap?

What is the shape of teams and

how should we organize?

What is the methodology

and detail action plan?

What are the business practices?

What are the technology

and support requirements?

Measures

Strategy

Strategy

Activities

Process, Technology, and Support

Organization

Vision


Solution-Integration

People /

Skills

Strategy

Process Technology

Organization

Strategy People Technology Process

Sales

Marketing

Production

Organization

+ + + +

A Best Practice based

ERP system should

coherently and

efficiently integrate all

major components of

a business enterprise


This is what a previous client looked like pre-SAP…..

Accounts Payable

Index to systems map

Existing legacy system i/f s

BACSWAY

Cheques &

Remittances

EDI VANs TRADANET, IBMIN,

BTNET

Prism

Factored Brands

Asset Management

General Ledger

PRICE

Purchase Ordering

PROBE

Project Managmnt

CARMS

Accounts Receivable

MRO

Promotions Call Rota

Telesales

Orders on

Suppliers

Stock

Reconciliation

Load Plan Picking Mother Depot

Delvery Note

Print & Action Receipting

Payroll

Pensions

Bristol

PAYSLIPS

P60, P45 CASHIERS PC

/ Cheques

Norton Waugh

EXPENSES PC

Norton Waugh HYPERION

PRIDE

(with Retro) PRODUCT DB

CUSTOMER DB

Stock Accounting

SWIFT LOANS Sales Statistics

FOCUS

(M/F)

COMMON

EXTRACT

WALKER

SYSTEMS

TADIS

DIPS

DAMS

TAMWORTH

TAKE HOME

TAKE HOME

ELDRIDGE

POPE MURCO

Blue Track

CTS

AS400 Delivery

Note Printing

SPEX

EDI

OTHERS

DISCOVERR

Quick Scheduler

Crystal Reports

Eric

Comet

OPUS

Mercia foreasting

COGNOS LOANS Notes

Time Recording

TATAP T&A

Chris HR

Oracle Sales &

Financials

Linx

Schedule X

POMS Forest &

Trees Reports

Deal Maker Customer Info

System Account Activity Sales Info System

Mobile Extract and build

PHD

Mailing

Microlise

TELESALES

MIS

ELDRIGE POPE

BREWMASTER

Returns

RMDS CMA Spool

Natwest Payaway

& Bankline

Great Plains

Handhelds


Index to systems map

Existing legacy system i/f s

Cheques &

Remittances

EDI VANs TRADANET, IBMIN,

BTNET

Prism

MRO

HYPERION

Blue Track

COGNOS

Deal Maker Customer Info

System Account Activity Sales Info System

Mobile Extract and build

PHD

Mailing

Natwest Payaway

& Bankline

…..and post-SAP


Before and After ERP


Major ERP Benefits

As a concept, all ERP applications provide the following:

Process Integration

Data Integration

People Integration

Security

Availability

Re-Enginereeing

Re-Organization

Prevention for Redundant data, User errors

JIT management

Real-time Insight & Response

Relationship Management

Continuous Re-Invention

Planning

Controlling

Best Practice Processes

Reduce TCO for I.T.

Stable Technologies

Substructure for Decision Making Systems


Return On Equity

Return on Equity : percentage of profits that were obtained from investment in a

company's shares over a given period of time (measure the efficiency of the use of

funds from shares)


Where has ERP come from?


Agenda

Intoduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


SAP’s Strengths are:

SAP grew from a manufacturing environment

Oracle came from Finance

PeopleSoft came from HR

Baan came from high-tech and aerospace

Sieble came from Insurance system

JDE came from, well, who cares anymore

Sage, Axepta,IFS,… are for small business

Anything else just isn’t on the radar…..

Finance, HR etc processes are all relatively standard, therefore they

don’t add competitive advantage

Production is where most companies derive their advantage, hence the

strongest application in Production and related activities is often the

best choice…..


The Competition

Sage

Oracle

SAP

LEADER

CHALLENGER

FOLLOWER

0

Pe

rfo

rma

nc

e

Presence

July 2006

Microsoft

Accepta SSA

Intentia

IFS Infor Global

Solutions


SAP Competitors

SEBL

76

53

16 16 8

5

303

JDE PSFT Veritas ORCL SAP CA

SAP

59%

SEBL

11%

ORCL

15%

ITWO

2%

PSFT+

JDEC

15%

SAP‘s Main Competitors

by License Revenues

The World‘s 7 Leading Software

Companies By Equity Market

Capitalization


SAP Customers

Oil & Gas

Poewr Generation Industry


SAP R/3 Solutions


SAP University


SAP Modules

Business

processes

Open

system

Client / server

architecture

Business

Engineering

Designed

for all types

of business

Multinational

Comprehensive

functionality

Over 100,000 installations around

the world

ABAP/4

FI Financial

Accounting

CO Controlling

AM Fixed Assets

Mgmt.

PS Project System

WF Workflow

IS Industry

Solutions

MM Materials

Mgmt.

HR Human

Resources

SD Sales &

Distribution

PP Production Planning

QM Quality

Manage-ment PM

Plant Main-tenance


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


Methodology

Achieve your implementation goals through

leveraging SAP experts, services,

methodology, content and tools.

Methodology

People

and

Expertise

Content

and

Tools

Consulting

Services


Project Team

+ =

• Commercial Flexibility

Project Team

• Strong Team

• Business Knowledge

• Management Commitment

• Process Knowledge

• Defined Requirements

• Desire for Change

• Desire to Succeed

• Best Practice

• Program Management

• SAP Training

• Change Management

• Knowledge Transfer

• Quality Management

• Value for Money

• Joint Team

• Shared Objectives

• Clear Responsibilities

• Best Practice Standard

• Reduce Cost & Risk

• Support Handover

• Foundation for Growth

Customer

SAP Consultant


Description

http://service.sap.com/asap

AcceleratedSAP methodology is proven, repeatable and successful

approach to implement SAP solutions across industries and

customer environments.

AcceleratedSAP provides content, tools and expertise from

thousands of successful implementations.

More info

ASAP Methodology

http://service.sap.com/asap


ASAP Methodology

Blueprint Blueprint Benefits Realisation Benefits Realisation Project Preparation Project Preparation

SAP Best Practice IBP

Review

Business

Process

Workshops

Public Sector Best Practice

= =

As - Is Review

Identified

Benefits

Card

Validated

Benefits

Card

Benefits

Measurement

Process Redesign

Organisational Change

Continuous

Improvement Programme

=

Budgeted

Benefits

Card

+ +

Financial

Internal Customer

Growth & Innovation

Objective

Objective

Objective

Objective Metric

Metric

Metric

Metric

1. Budget Control

2. Project ROI

3. Project payback

4. Cash neutrality

Actual / plan

Benefit / cost

Time / month

Net £ position

1. Benefit achievement

2. User Mobilisation

3. Quality Solution

1. On time delivery

2. Project Efficiency

3. Risk Mgmt

1. Team Member Capability

2. Team Morale

£ benefit

% score

% score

Index

Survey Attrition

% sick days

% milestone

achievement

Project Mgmt days / delivery days

Risk Index Cost

TfL

Vision

TfL

Vision

Blueprint Blueprint Benefits Realisation Realisation Project Preparation Project Preparation

SAP Best Practice IBP

Review

Business

Process

Workshops

Public Sector Best Practice

= =

As - Is Review

Benefits

Measurement

Process Redesign

Organisational Change

Continuous

Improvement Programme

=

+ +

Financial

Internal Customer

Growth & Innovation

Objective

Objective

Objective

Objective Metric

Metric

Metric

Metric

1. Budget Control

2. Project ROI

3. Project payback

4. Cash neutrality

Actual / plan

Benefit / cost

Time / month

Net £ position



3. Quality Solution

1. On time delivery


3. Risk Mgmt


2. Team Morale

£ benefit

% score

% score

Index

Survey Attrition

% sick days

% milestone

achievement


Risk Index Cost

TfL

Vision

TfL

Vision

Financial

Internal Customer

Growth & Innovation

Objective

Objective

Objective

Objective Metric

Metric

Metric

Metric

1. Budget Control

2. Project ROI

3. Project payback

4. Cash neutrality

Actual / plan

Benefit / cost

Time / month

Net £ position



3. Quality Solution

1. On time delivery


3. Risk Mgmt


2. Team Morale

£ benefit

% score

% score

Index

Survey Attrition

% sick days

% milestone

achievement


Risk Index Cost

TfL

Vision

TfL

Vision

Confirm The Vision, Methodology & Scope

Confirm The Design Build & Test the Solution

Confirm The Design Confirm The Vision, Methodology & Scope


ASAP Methodology

Realisation Final Preparation Post Go-live Support

SAP SUPPORT

COMMAND CENTRE • SAP Support Team

• Rapid issue Resolution

• Support Management

• Reporting

• Escalation

• Master class assessment

• Issue Resolution

• Coaching

• Ad-hoc training

• Monitoring

• Key User Support

• Key Users

• Support Consultants

Daily ‘Prayer Meetings’• Status

• Key Issues

• Key Messages

• Training Updates

System Test

UAT

Support Risk

Assessment

Go-Live Decision

Meetings

Middle Manager Role & Process

Education

Cascade Role Education to

Functional Teams / 1:1’s

End User Training

Deliver Critical

Behaviour Education

Count

Down

Roadmap

& Plan

• Management Letter

• Role Materials

• SAP Training Materials

• Support Processes

• Go-Live Visualisation AidsCount-Down Communications

Feedback / Status

Communications

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Post Go-Live

Review

SAP Cafe

Planning & Set-up: SAP Café & SAP Support

Command Centre

FLOORWALKERS

Master Classes

Realisation Final Preparation Post Go-live Support

SAP SUPPORT

COMMAND CENTRE

SAP SUPPORT

COMMAND CENTRE • SAP Support Team

• Rapid issue Resolution

• Support Management

• Reporting

• Escalation

• Master class assessment

• Issue Resolution

• Coaching

• Ad-hoc training

• Monitoring

• Key User Support

• Key Users



• Key Issues

• Key Messages


• Key Users



• Key Issues

• Key Messages


System Test

UAT

Support Risk

Assessment

Go-Live Decision

Meetings


Education



End User Training

Deliver Critical

Behaviour Education

Count

Down

Roadmap

& Plan


• Role Materials




System Test

UAT

Support Risk

Assessment

Go-Live Decision

Meetings


Education



End User Training

Deliver Critical

Behaviour Education

Count

Down

Roadmap

& Plan


• Role Materials




Feedback / Status

Communications

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Feedback / Status

Communications

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Mgmt

Status

Post Go-Live

Review

SAP Cafe


Command Centre

SAP CafeSAP Cafe


Command Centre

FLOORWALKERSFLOORWALKERS

Master ClassesMaster Classes


Project Management expertise

Management of the implementation project

Aligned with industry standards and procedures (PMI PMBOK®)

Specific to implementation of SAP solutions

Methodology Tools

Aligns customer’s business

requirements to SAP

solutions

SAP Solution Composer

Offers AcceleratedSAP

roadmap composed to fit

specific project needs

SAP Roadmaps

Facilitates efficient solution

design, documentation,

configuration, testing and

operations

SAP Solution Manager

AcceleratedSAP toolset


How it all breaks down

In my experience in a typical SAP R/3 implementation, if you look at

the traditional ASAP methodology, the time spent in each phase

looks something like this:

Project Preparation – 11%

Business Blueprint – 14%

Realization – 50%

Final Preparation – 19%

Go Live and Support – 6%


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


Enforcing Standards

Methodology alone will not make your project successful. You need to enforce it – appoint methodology champion for the project.


Change Management

Change TasksChange Tasks

Change RolesChange Roles

Change

Structure

Change

Structure

Change

Behaviour

Change

Behaviour

Change

Culture

Change

Culture

Easy to Do

(visible)

Hard to Do

(invisible)

Increasing

Benefit

Organisation Design

Job Design

Process Design


Emotional reactions of employees to changes

Preparation Realization

Decision

100%

Time

Profits in project productivity Losses in project productivity

2. Shock,

fear

1. Apprehension,

concerns

4. Defense,

annoyance

5. Emotional

acceptance

6. Opening

curiosity,

enthusiasm

7. Integration

self-confidence 3. Rational

acceptance

Business

Blueprint

Final

preparation

Going

Live


Value Proposition/ Benefits

With change management

Without change management

D

Benefits:

1. Lower resistance of the employees

against the necessary changes

2. Higher acceptance of the new

software solution

3. Fewer workarounds and adoption

of standard processes

4. Harmonized implementation from

project into line organization

5. Accelerated realization of revenue

potential by an earlier involvement

6. Reduction of TCO by lower start up

costs and costs of proceeding

Pro

ject P

erf

orm

ance

P

roje

ct P

erf

orm

ancec

Time

Time

And, what benefits can the customer expect?

GoLive

„Valley of tears“

KickOff


Change Management


Change Management Approach – Holistic View


Three Phases to Delivering Change Management

Preparing for Change: Understanding the Mission, Vision, and Objectives of

Tuga and the SAP implementation project. Analyse the gap between the

current situation and the future goals and set realistic expectations. Allows a

customised approach to implementing change for Tuga.

Implementing Change: Doing what we say we are going to do during the preparing for change stage.

Reinforcing Change: Checking that our initial expectations have been met.


Agenda

Introduction of Mapna

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


We can

Do BPR without buying an ERP solution,

– unusual

Implemented ERP solution without doing any BPR(Implementation normally involves BPR but depends on…

The question is not whether ERP functions or not without BPR

Key question: whether every company that implements ERP has to

reengineer its processes

At first BPR implemented then ERP

At first ERP implemented then BPR

ERP & BPR implemented simultaneous

ERP & BPR


BPR Steps

Understanding

Preparation:Understa

nd the existing

systems associated

with all the

functionalities by

chose the Best Key

User

Simplifying &

Improvement

Automation

Blue Print: Draft &

frame the

possibilities & ways

to simplify or

Improve or eliminate

the processes by

chose of Best

Practice

Realization: Implement

with the help of Best

ERP

1

3

2 Improvement

Enhancement:Certain

ly after a while we

can improve the

process again Upgrade

4

5

Support: install new

Patch or new

version

BPR & ERP


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


Prerequisite For ERP

Vision

Mission

Maturity of the Management

Organizational Acceptence

Infrustructure

Suitable Team

Policy

Business Process

Management Commitment


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A



Sample of Status Report CW 18/2007

Milestones

Riasatian,Axt

Topic: Date, Reporter:

Project Status Project Phases:

Integration Test

Decisions

Chart covers only the 1st stage of the project

Overall Project Status

Progress: 100% To Be: 100 %

Out of control

Risks ahead

In control

Solution Timeline

Project Start 2006/07/17

A.1 Preparation 2006/08/24

A.2 Business Blueprint 2006/09/30

A.3 Realization Baseline 2006/11/30

A.4 Int.Test Stream 1 2007/02/15

A.5 Final Prep.Stream 1 2007/03/10

A.6 Go-Live Sup.Stream 1 2007/03/30

TUGA RUNS SAP

FI,CO,SD,MRP,PU,LE,

IM,PP(SF),PS

Have been gone Live


Sample Of Status Report

Integration Tests stream 2 SAP/TUGA

Migration Preparation SAP/TUGA

Master Data corrections TUGA

After Go-Live support st.1 SAP/TUGA

Setup tasks for stream 2 SAP

FI FARSI development TUGA

FI farsi development support SAP

Task, worked on

Actual Critical Points / Risks*:

Next steps

Overall Risk Monitoring

Deliverables Integration Test

Final preparation stream 2 SAP/TUGA

Data migration SAP/TUGA

Go / no go decision Go-Live 2 TUGA

Cut-over activities SAP/TUGA

Risk Impact Prob.of Occurence

Masterdata delivery 5 90%

Riasatian Topic: Date, Reporter: Project Status

Project Phases: Integration Test

Open Items

Job role TUGA

Asset Master data TUGA

TDM Development TUGA

Barcode Printing and

Processing

TUGA/SAP

SI(SF,IM)

New material status needs

to be clarified TUGA (PLM)

print out for Reservation and Purchase requisition

needs to be defined TUGA

Clarification for Spare part process

SAP SI

Invoice verification only

based on unrestricted

stock type

SAP SI

(PU,IM,QM)

Stage 2

Report for quantity goods

on the way

SAP SI (PU)

* For further information see the TUGA risk register.


Sample of Status Report CW 43/2007

Riasatian,Piotrowski

Topic: Date, Reporter:

Project Status Project Phases:

Go-Live Support

Chart covers only the 2nd stage of the project

Overall Project Status

Progress: 100 % To Be: 100 %

-

Milestones

Out of control

Risks ahead

In control

Solution Timeline

Kick Off 2007/04/04

A.1 Preparation 2007/05/01

A.2 Business Blueprint 2007/05/31

A.3 Realization Baseline 2007/06/30

A.4 Integration Test 2007/08/31

A.5 Final Preparation 2007/09/30

A.6 Go-Live Support 2007/10/31

Decisions

PM, CS, QM, DMS,

WM,PP(CL)

Have been gone live


Agenda

Introduction

ERP

SAP

ASAP Methodology

Change Management

ERP & BPR


TUGA SAP Project

Q&A


Question?

Tel : 0261 6630010

Mobile : 0912 1791087

Email : [email protected]

Thanks for Your Kind Attention