SAP implementation (Systems, Applications & Products implementation) refers to the name of the German company SAP SE, and is the whole of processes that defines a method to implement the SAP ERP enterprise resource planning software in an organization. The SAP implementation method described in this entry is a generic method and not a specific implementation method as such. 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 software.
Introduction
The implement of SAP software, such as SAP R/3
is almost always a massive operation that brings a lot of changes in
the organization. The whole process can take up to several years.
Virtually every person in the organization is involved, whether they are
part of the SAP technical support organization (TSO) or the actual end-users
of the SAP software. The resulting changes that the implementation of
SAP generates are intended to reach high level goals, such as improved communication and increased return on information
(as people will work with the same information). It is therefore
important that the implementation process is planned and executed using a
solid method. There are various SAP implementation methods. An example
of how one company, Robert Bosch GmbH,
implemented SAP R/3 over 10 years is available. This study shows that
designing IT architecture is critical in SAP implementation practices.
IEEE scholar journal reports an industrial case in which the
senior management successfully dealt with a troubled SAP R/3
implementation in an international fast-moving consumer goods (FMCG)
company during 2001 and 2002. (Lui 2008)
Overview
| 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) |
| COST OF OWNERSHIP ANALYSIS | Determination of where and when the costs are inquired within the context of the SAP solution stack and ongoing operations. 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 system |
| DATA CENTER | A data center is a facility used for housing a large amount of electronic equipment, typically computers and communications equipment. |
| 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 (DR) REQUIREMENT | Requirement that focuses on downtime that lasts many hours to 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 |
| 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) |
| OPERATIONS MANUAL | The 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. (Anderson, 2003) |
| SAP | SAP SE is Europe's biggest software company. The head office is in Walldorf, Germany. SAP was founded in 1972 as Systemanalyse and Programmentwicklung ("Systems Analysis and Program Development") by five former IBM employees in Mannheim, Germany. |
| 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. |
| 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. |
| 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.practicalsap.com) |
| 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 |
|---|---|---|
| Project preparation | 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. Some of the guidance and key requirements for how to put together an ERP and SAP business case for ROI, business benefit, and success includes focusing on competitive pressures, value propositions, and how the solution enables success. |
| Design and initially staff the SAP TSO | Design and staff the key positions of the SAP Technical Support Organization (TSO), the organization that is charged with addressing, designing, implementing and supporting the SAP solution. | |
| Sizing and blueprinting | 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 availability and disaster recovery requirements | Determine all HIGH AVAILABILITY and DISASTER RECOVERY REQUIREMENTS, to plan what to do with later downtime of the SAP system | |
| 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 | |
| Setup SAP DATA CENTER | Build a new SAP DATA CENTER facility or transform the current data center into a foundation capable of supporting the SAP SOLUTION STACK | |
| Perform installations | Install the (My)SAP components and technological foundations like a web application server or enterprise portal. | |
| Round out support for SAP | Identify and staff the remaining TSO roles, e.g. roles that relate to help desk work and other such support providing 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. | |
| Final Preparation | 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 | |
| Go Live | Turn on the SAP system for the end-users | |
Implementation processes
Project preparation
Mission Key is also what defines slack.
Design and initially staff the SAP TSO.
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 and designing a
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.
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 is 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
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
SE itself to let them create a sizing proposal stating the advised
solution stack, before moving to SAP's technology partners/SAP vendors,
like Accenture, HP 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 (Technical Support Organisation) 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.
Few people within an organization are SAP experts or even have worked
with SAP software. It is therefore important to train the end users but
especially the SAP TSO: the people who design and implement the
solution. The usual activity is to train a group of key users who in
turn train the staff (source: practicalsap.com). The organisation's key
users must be involved in the implementation project and testing of the
system. 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 important to use installation
guides, which are published for each SAP component or technology
solution by SAP SE. 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
- mySAP HCM — Human Capital 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.
Realization
The next phase is the functional development phase, where it is all about change management and testing. This phase is depicted below.
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
- End-User regular activities
- 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 important before going live with any system. Before
going live with a SAP system, it is vital to do 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.
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.
Final preparation
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 SE 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
