Critical Steps and

Considerations for
Your mySAP ERP
Upgrade Plan
Dale Young
Capgemini
© 2006
2007 Wellesley Information Services. All rights reserved.
General Questions

• How many of you are still deciding whether or not to

upgrade your R/3 system?
• How many of you understand the business benefits of
ESA and NetWeaver?
• How many of you have secured approval to move
forward with a mySAP ERP upgrade?
• How many of you have actually started your upgrade
project?

2
Before We Get Started…

• Top 3 reasons why SAP customers haven’t upgraded yet:

1. I really enjoy all the calls from systems integrators asking me
if I need “help”… it helped me miss the calls from politicians
during last fall’s election
2. My end users don’t like change … they also want to keep
their Beta-max VCRs, 8-Track tape players, and rotary
dial phones
3. I was ready to upgrade to mySAP ERP March 26, 8 a.m.
version when SAP announced a 3:45 p.m. version…and I’ve
heard rumors of a 7:56 p.m. version!

3
In All Seriousness …

• SAP has “drawn a line in the sand” with mySAP ERP 2005
ΠThe time to upgrade is now
• The “next generation” of mySAP offers a new set of value
and capabilities
ΠDo you understand the opportunities and implications?

4
 What We’ll Cover …
Create Finalize Scope Obtain
Conduct Project
Upgrade? the Value And Project
Assessment
Proposition Timeline Approval

• Is the upgrade really warranted?

• Cutting through confusion to determine hard
and fast ROI
• Setting realistic scope, timeline, and cost estimates
• There are no shortcuts to gaining project approval!
• Wrap-up

5
 Customers at a Crossroad
• Today’s business environment is VERY different from
when R/3 was originally instituted
ΠChange is a constant and the velocity is increasing
ΠSelf-service and collaboration are givens
ΠThere is less time to operationalize business changes
ΠThere is a new generation of technology savvy users
• The original IT strategy and architecture is likely more
than 5 years old
ΠBusiness has changed
ΠTechnology has matured
Future State SAP
ΠNew demands are being placed on IT everyday Roadmaps must address
ΠSAP has moved in the integration space three dimensions:
• SAP has undergone a “Step Change” in its
Business Processes
architecture and solutions
ΠIncreased collaboration, integration, analytical Architecture
capability Infrastructure
ΠIncreased capabilities in data and information mgmt.
ΠMaturation of solutions such as CRM, Supply
Chain, and SRM
Œ Third-party capabilities (e.g., Duet™, Adobe IAF)
6
 Looking Back to Move Forward – Did History Repeat Itself?

It’s like deja vu all over again! Impacts

Portal Business
CRM OS
OS 2 HW
Legacy Legacy • “Hard-wired”
HW
CRM
1
applications/
Legacy processes
Legacy (…) • Multiple SAP
•Mainframe, Instances
legacy etc.
R/3 R/3 • Legacy/third party
•Singular remains
applications SCM
(FI/CO, R/2, HR) • Hurdle for growth
OS OS OS and innovation
HW HW HW

IT

• High integration
• Limited business • Simplification • Increasing IT interfaces cost
value through IT • Integration and “exploding” IT costs
• IT only for few • Multitude of IT vendors • Speed of change
• Promised retirement
client needs of legacy • Legacy remains • Poor data quality
• People as “human
1980s ERP Renaissance Business Evolution integrators”

7
 Is This Upgrade Warranted?
Yes, particularly when viewed strategically
CRM SAP Modernization – Revolution through Evolution
xApps
Industry
Innovation
Process • Take a holistic approach that focuses
Innovation
first on a low risk move to the next
SCM generation of SAP while positioning
yourself to rapidly exploit the next
SRM generation of your enterprise platform

SO En
A ter
Future State Design

En pr
m

Ret
rofi 1
Transition to a supported,
ab ise
yS

t 9
Duet

le
more capable hardware
d
AP

Tech
Upgrade and software environment
ER

Adobe
9 Develop a deeper
P

Infrastructure
Upgrade/ understanding of the
Migration business
MDM improvement/innovation
Solutions capabilities of your new
NetWeaver
EIM
Foundation
SAP platform
Components
R/3 Upgrade
• MDM
• BI Analytics
9 Define your set of business
• etc… improvement initiatives
and align your organization
Enterprise Information Mgt Strategy
around them
8
 What We’ll Cover …
Create Finalize Scope Obtain
Conduct Project
Upgrade? the Value And Project
Assessment
Proposition Timeline Approval

• Is the upgrade really warranted?

• Cutting through confusion to determine hard
and fast ROI
• Setting realistic scope, timeline, and cost estimates
• There are no shortcuts to gaining project approval!
• Wrap-up

9
Conducting the Project Assessment: Fact Finding

• mySAP ERP can be a complex proposition with many

moving parts
• Before asking for approval, you will need to have all of
your facts compiled and documented:
ΠWhat areas of functionality do we use today?
ΠWhat legacy/third-party applications are still being leveraged
and why?
ΠWhat new features or functionality can we use after the upgrade
(e.g., ECC, SAP NetWeaver®) and what are their prerequisites?
ΠWhat are the current support issues in your environment?
ΠWhat projects are active and what projects are scheduled to
start in the next six months to one year?

10
 Areas to Be Assessed
Technical
ΠReview Technical
Architecture and Custom
Development with
Development/Basis Leads
ΠCollect Custom Object
Information (Forms, Reports,
Interfaces, Enhancements,
BDC)
ΠCollect Data Dictionary/
Source Code Modifications,
SAP Note information
ΠDetermine System
Landscape, Instance
Strategy, Client Strategy
Functional
ΠWhat areas of functionality
do we use today?
ΠReview End-to-End
Processes with Module
and Process Leads
ΠDetermine Modules and
Sub-Modules in use
ΠDetermine Points of Pain,
Enhancement
Opportunities and ROI
ΠDetermine Unit test scripts
readiness
ΠDetermine Integration test
scenario readiness
TCO ASSESSMENT
ΠEvaluate Impact of Upgrade
on Technical Landscape
ΠExplore Replatforming
Considerations
ΠViability of combining
Upgrade with Platform
Migration
ΠExplore the role of SAP
NetWeaver in ROI and TCO
Reduction
ΠConsider the use of SAP
NetWeaver in the existing
landscape and a potential
transition plan
ΠWhat legacy/3rd party
applications are still being
leveraged and why?
11
 Conducting the Project Assessment: Fact Finding

• Conducting a formal assessment workshop can provide:

ΠAn excellent opportunity to educate people
ΠA start to the process of building excitement
ΠEstablishment of buy-in from the business units
ΠMomentum from the business units up through the project
sponsors and CXO levels
Tip
• Be realistic about the potential organizational problems
you can solve, as well as the costs and resources
associated with your upgrade
• Identify upgrade benefits that can justify the upgrade
costs (e.g., legacy decommissioning, maintenance,
process improvements, hardware consolidations/
migrations)
12
Formal Assessment Workshop
• Understand upgrade complexities
• What’s new with mySAP ERP
• Demonstrate the “art of the possible”
• Current business/IT expectations
• Lessons learned from the original implementation project

• Conduct breakout sessions (both functional and technical)

• Determine benefits of new functionality
• Review new functionality deltas between mySAP ERP and your current
release (SAP NetWeaver, architecture)

• Alignment and Concurrence

• Develop business case and detailed project plan
• Finalize Scope (technical, functionality included)
• Timeline and resources
• Develop “launch” strategy

13
 Do You and Your Users Know “The Art of the Possible?”
• “New” SAP
Possibilities

Business Ecosystem
Collaborative
• Process Design/ “Back office”
SAP
Solutions

Innovation: Web
Enablement/Integration
ΠChange how you do Enterprise Landscape

business
ΠCollaboration, Self
Understanding the Art of the Possible:
Service, Process
SAP Discovery System for Enterprise SOA
“Extension”
• Solution
Deployment and
User Types:
Tip ΠWho interacts with
your organization?
ΠHow they interact
with you and with www.sdn.sap.com/irj/sdn/developerareas/esa/esadiscovery
each other?
14
 Sample – Two Week Assessment Plan Workshop
Week 1 Week 2
DAY
1 2 3 4 5 6 7 8 9 10

Conduct
ConductRound
Round22
Kickoff Workshops
& Intro Workshops
Work-
shop Conduct
ConductFollow
FollowUp
Up
Workshops
Workshops
Confirm/
Schedule
Interviews Develop
DevelopReport
Report

Conduct Debrief
ConductRound
Round11
Workshops Findings
Workshops

Sponsor Sponsor
Check-in Check-in

Plan Key Activities Deliverables Responsibilities

„ Introduce purpose of activity „ Kickoff Presentation „ Assessment team
Kick-off
Kick-off and
and Intro
Intro Workshop
Workshop „ Conduct Intro Workshop to gather baseline info
„ Workshop Template
„ Project Profile templates

„ Confirm and Identify additional subject matter experts, „ Interview Schedule

Confirm/Schedule
Confirm/Schedule Interviews
Interviews business managers, technical managers „ Key Contacts „ Assessment team
„ Establish interview schedule and logistics

„ Perform Workshops „ Workshop Notes „ Assessment Team to carry out

Conduct
Conduct Round
Round 11 Workshops
Workshops workshops
„ Record notes, summarize findings, determine follow
up needs „ IT and Business Leads

„ Perform Workshops „ Assessment Team to carry out

Conduct Workshop Notes
Conduct Round
Round 22 Workshops
„ workshops
Workshops „ Record notes, summarize findings, determine follow
up needs „ IT and Business Leads

„ Consolidate interview notes „ Final Summary Presentation „ AssessmentTeam

Develop
Develop Report
Report „ Summarize findings and develop report/debrief „ Project Roadmap
„ Schedule/confirm debrief session with sponsor
„ Final Summary Presentation „ Management Team and Assessment
Debrief
Debrief Findings
Findings „ Conduct debrief communication session
„ Project Roadmap Team

15
Project Assessment Summary

• Summary
Œ Take time to conduct the assessment — the deliverables from
this phase will save time and effort later
ΠGain familiarity will all the functional deltas between your
current R/3 release and mySAP ERP (the earlier your source
release, the greater the deltas)
ΠInvolve both IT and the business
ΠUnderstand project challenges and roadblocks
f Competing projects

f Current project support issues

f Business issues (mergers or acquisitions)

ΠGetting this part right can accelerate securing project approval!

16
Conducting the Project Assessment
• Avoid these pitfalls:
Œ Don’t make decisions without
considering the entire
architecture and
interdependencies
ΠProperly estimate all of your
costs (e.g., HW, SW, resource
backfill)
ΠBe realistic when determining
items that could/should be in
scope (e.g., SAP NetWeaver
components)
Œ Don’t oversell the scope to the
business until the project has
been finalized and approved
• An upgrade from a pre-4.6
release may require more time
ΠThe number of customizations
and SAP modifications will
impact the assessment time
ΠThe number of SAP components
may impact time
ΠBeware of hidden costs; such as
technical rework and
optimization)
ΠFinally, the number of SAP
modules may impact the time
17
Areas of ROI Consideration

External External
Information Actions

Application Rationalization & Business Processes

Process Renovation Collaboration & Differentiation

Architecture Alignment & Service-Oriented Architecture

Orchestrating Software and Data as Services
Rationalization

Service-Oriented Infrastructure
Infrastructure Alignment & Orchestrating Virtualized Resources
Rationalization

Business mySAP ECC/Bus. Suite

Improvement
Portfolio
SAP NetWeaver
Enterprise SOA

18
Benefit Differentiation
• Tangible benefits
ΠReduced maintenance costs
ΠOpportunity to decommission
legacy applications by utilizing
new mySAP ERP functionality
ΠReduction in third-party software
license expense by using mySAP
ERP functionality (e.g., SAP XI,
Data Warehouses)
• Intangible benefits
ΠDecommission workarounds
using standard mySAP ERP
functionality
ΠBetter reporting and dashboard
capabilities with BW
ΠEnhanced ease of use for
end users
ΠNew functionality and features in
mySAP ERP modules
ΠImproved ability to integrate
technology and solutions through
the use of SAP NetWeaver®
ΠProductivity and efficiency
improvements
19
 SAP Solution Browser – Shortcut for Defining
Business Benefits

solutionbrowser.erp.sap.fmpmedia.com
Tip 20
Commonly Overlooked ROI Considerations
• Who you have deployed to
ΠAre you reaching all potential
users (internal and external)
• How they access
ΠPortal
ΠAdobe Interactive Forms
Œ Duet™
• How you integrate
ΠInternally (A2A)
ΠExternally (B2B)
• Architecture
ΠTechnology Rationalization
ΠService Oriented Architecture
Enablement
ΠLegacy Retirement/Retro Fit
• Instance Strategy
ΠSingle/Multiple
ΠReleases
• Infrastructure Rationalization
ΠHardware
ΠOS
ΠServices Management
• Maintenance
ΠMay be less expensive
(no penalties)
• Business process
improvements/renovations
ΠElimination of manual systems
and activities
ΠBusiness Efficiencies
21
SOA Made Simple Æ What Business Am I?

• Consider the following three food service related

processes: Eat, Order, Pay
• Now, arrange them differently:
Œ Order, Pay, Eat Æ Fast Food (e.g. McDonalds)
Œ Order, Eat, Pay Æ Traditional Restaurant (e.g. Olive Garden)
Œ Pay, Eat Æ Buffet (Chinese Buffet)
Œ Pay, Order, Eat Æ Sit Down Buffet (e.g. Chesapeake Seafood House)
Œ Eat, Order, Pay Æ Home Food Party (e.g. Impromptu Gourmet)
Œ Eat Æ Soup kitchen (e.g. Salvation Army)

The same 3 processes, assembled differently,

support 6 different business models
22
 SOA Made Practical – Enterprise Hubs and Edges

Enterprise Data Enterprise Applications

“Hub” “Spoke”
Activity inside the
company

Market Facing
Departments
“The Edges” Outside Edge

Activity outside the

company

23
 SOA Made Practical – The Role of SAP

Enterprise Data Enterprise Applications

NetWeaver./ESA
“Hub” “Spoke”

SC
M
99 Enterprise
EnterpriseSOA

y
SR
SOA

Pa
(eSOA) is SAP’s

M
(eSOA) is SAP’s

to
Fi
“version”
“version”ofofSOA

na

se
SOA

ha
ci

rc
al
99 SAP
SAPNetWeaver
NetWeaverisis

Pu
s
the
thetechnology
technology ECC
enablement
enablementofof
xApps

MDM/

XI
their
theirarchitecture
architecture BW/XI

h
as

H
C

ire
to

to
er
M

R
rd

Market Facing
R

et
C
O

ire CM
Departments

H
“The Edges” Outside Edge

Enterprise Portal

24
Identify IT Benefits and Business Benefits
• Reduced Costs • Optimized SCM • Share Holder Value
Sample
• $10B Organization • Global Reporting • Market Confidence
Goals: • Increased Sales • Reduced Inventory • Customer Satisfaction

mySAP Speed to Value

mySAP ERP: mySAP CRM: mySAP SCM:
B • No Maint. Cost • Leads => demand • Process improvements
• Full SW solution • Sales Management • Reduce IOH
e • Future Growth • Mktg Optimization • Demand Pull
n SAP NetWeaver: mySAP BW: Organizational:
e • Integration • Sales Reporting • Tax opportunities
• Consolidations • Financial Rollups • Sarbanes Oxley
f • Architecture • Exec. Dashboard • Regulatory req’s
i
mySAP ERP: Organizational Behavior
t • More access to data to make better business decisions
s • Productivity gains (finance, sales, operations, etc.)
• Business and IT coordination
• Perfect platform to grow the company 25
Summary: Documenting High-Level Business Benefits
Do
9 Set realistic goals and benefits
9 Understand the “art of the
possible” with SOA and SAP
NetWeaver – and leverage it!
9 Be sure to document long-term
opportunities of the mySAP ERP
platform (e.g., middleware
replacement with SAP NetWeaver)
9 Socialize the benefits within the
organization
9 Remember: Think 3-5 years out!
Don’t
f Don’t over-commit business
benefits — don’t paint too
rosy a picture!
f Always remember: There is a
potential roadblock to success
based on a disconnect between IT
and the business — they can have
very different views of benefits
and ROI
f Don’t try to do everything at once
f Do not fail to continue to measure
the benefits throughout the project

Don't
Forget

26
 What We’ll Cover …
Create Finalize Scope Obtain
Conduct Project
Upgrade? the Value And Project
Assessment
Proposition Timeline Approval

• Is the upgrade really warranted?

• Cutting through confusion to determine hard
and fast ROI
• Setting realistic scope, timeline, and cost estimates
• There are no shortcuts to gaining project approval!
• Wrap-up

27
Determining Scope, Timeline, and Costs

• The key to successfully planning an upgrade project is to

have a complete understanding of the following areas:
ΠScope
f Is this a technical upgrade or will you be adding
new functionality?
f What is the strategy for Unicode conversion?

f What are the infrastructure impacts?

ΠApproach
f Is the project phased?

f What is the project’s roadmap and timeline?

ΠCost
f Provide a total project cost with capital vs. operating
expense breakout
28
Key Questions That Impact Project Scope

• Will you conduct a technical upgrade? Or a functional

upgrade?
ΠIf technical, what are your plans for leveraging your new
platform?
• Are you decommissioning workarounds?
ΠIncorporating in to ECC?
ΠRe-developing using SAP NetWeaver?
• Will you be implementing new functionality/features?
• What new modules should you implement? (e.g., MM/SD?)
• Can you take advantage of new capabilities (SAP
NetWeaver, BI, MSS, ESS)?

29
Reasons for Upgrading

• To take advantage of new functional capabilities

• To position your enterprise platform for future

functional enhancements, business changes
Æ Deploy a more flexible platform

• To reduce Total Cost of Ownership (TCO)

• To achieve compliance

• None of these are mutually exclusive!

30
 Evaluating Your Overall Upgrade Options
• Technical Upgrade
ΠApplication Maintenance Focus

l
nt

na
St
me

t io

ra
nce
ΠConsolidated Infrastructure Platform

ma

te
ha

g
or

ic
En
ΠBusiness Context РLimited Impact

Inf
nce

ue
ven
a
oid
Functional Upgrade

Re
•

Av
Processes

st
Co

n
ΠReduction of Customization

o
cti
du
Complexity, Core Modifications Infrastructure

Re
Retrofit

st
Co
ΠElimination of Customer
Modifications, Development, Bolt-ons
ΠIncrease collaboration, integration, and Web-enablement
• Strategic Business Improvement Upgrade
ΠRollout of New/Optimized Business Process Based on Core Functionality
ΠDeploy New Functionality
ΠImplement Extended Application

31
Technical Upgrades: Fact or Fiction?

• Purely technical upgrades usually do not exist:

ΠMost upgrade projects involve adding new features and
functionality, such as:
f New transaction codes
f New functionality
f New screens and fields
f New security features
f New reports
f Decommissioning workarounds and replacing with new
standard out-of-the-box functionality
ΠIf on an earlier release of SAP (e.g., 3.1i) limit the scope of the
mySAP ERP upgrade – there’s a lot of change in the ECC alone

It’s hard to justify the cost/benefit for a pure

technical upgrade project 32
 Factors Driving the Time and Effort of Possible Options

ƒƒ Breadth
Breadth of
of functionality
functionality implemented
implemented
Several factors have an impact on the ƒƒ Number
Number of
of SAP
SAP modifications
modifications
FF
complexity of the upgrade project and AA ƒƒ Number
Number of
of custom
custom programs
programs
the length of time required to execute CC
TT ƒƒ Number
Number of
of interfaces
interfaces
O
O
RR ƒƒ Number
Number of
of bolt-ons
bolt-ons
SS
ƒƒ Geographic
Geographic scope
scope
Upgrade Estimates (Months) ƒƒ Number
Number of
of users
users

HIGH High Complexity (~7-10 months)

MEDIUM Medium Complexity (~4-6 months)

LOW Low Complexity (~2-4 months)

LEVEL
LEVEL OF
OF COMPLEXITY
COMPLEXITY

33
Understand the Complexity of Upgrading to mySAP ERP
• Upgrading to mySAP ERP can be much more complex if you’re
using SAP functionality outside R/3
• Legacy applications, bolt-ons, interfaces, current SAP apps may
require upgrading
SAP Enterprise Portal
T Legacy
o R/3 BI
d Systems
a
y Third-Party APO
Interfaces
Software

In this case, SAP, BI, APO, SAP Enterprise Portal, etc.,

and some third-party software may need to be upgraded
during the mySAP ERP upgrade project
34
In Summary: Document the Final Scope

• Determine the final scope:

ΠType of upgrade (e.g., new functionality, modules)
ΠAreas for improvement
ΠCurrent issues
ΠAvailable budget and resource
• Pitfalls:
ΠPay attention to the complexity of the interdependencies
presented by the mySAP ERP architecture
ΠIdentify the project sponsors and align the scope accordingly

35
Determine the Project Approach and Timeline

• Many factors should be considered when establishing

your upgrade project approach:
Œ The project roadmap (what’s in scope?)
ΠProject timing (when?)
ΠProject phases (big bang or phased rollout of functionality?)
ΠProject constraints (organizational activity)
ΠSkills/resource availability

36
Critical Consideration: Do You Have the Right Skills?

“Legacy” SAP Approximate NetWeaver Components

Basis
Basis Web
WebApplication
ApplicationServer
Server
SAPGUI
SAPGUI Enterprise
EnterprisePortal
Portal(EP)/Web
(EP)/WebDynpro
Dynpro
ALE
ALE Exchange
ExchangeInfrastructure
Infrastructure(XI)
(XI)
ABAP
ABAPReports
Reports Business
BusinessWarehouse
Warehouse(BW)
(BW)
Knowledge
KnowledgeWarehouse
Warehouse Knowledge
KnowledgeManagement
Management(KM)
(KM)
Event
EventProcess
ProcessChains
Chains(EPCs)
(EPCs) Business
BusinessProcess
ProcessManagement
Management(BPM)
(BPM)
ASAP
ASAPmethods,
methods,CCMS
CCMS Lifecycle
LifecycleManagement
Management(LCM)
(LCM)
Collaboration
Collaboration
And provides new Mobile
MobileInfrastructure
Infrastructure(MI)
(MI)
capabilities Composite
CompositeApplication
ApplicationFramework
Framework(CAF)
(CAF)
Master
MasterData
DataManagement
Management(MDM)
(MDM)

37
 Example 1 – Project Approach – Upgrade Only
2005 2006 2007
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Current Projects
SAP Upgrade
Process/Functional Improvements

Merger/Acquisitions Support
Business Warehouse
SEM
Human Resources
Portal
Internet Sales Development
CRM
SCM
Warehouse Management
Sarbanes-Oxley

38
Example 2 – Upgrade Concurrent with New Functionality
2005 2006 2007
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Current Projects
Take advantage of the upgrade
SAP Upgrade And non training impacted
Process/Functional Improvements
new functionality

Merger/Acquisitions Support

Business Warehouse

SEM

Human Resources

Portal

Internet Sales Development

CRM

SCM

Warehouse Management

Sarbanes-Oxley

39
Example 3 – Upgrade, New Functionality, and Components
2005 2006 2007
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Current Projects

SAP Upgrade

Process/Functional Improvements

Merger/Acquisitions Support

Business Warehouse

SEM

Human Resources (e.g., ESS)

Portal

Internet Sales Development

CRM

SCM

Warehouse Management

Sarbanes-Oxley

40
 What Does Your Roadmap Look Like?

ƒ New Business Architecture mySAP

functionality
ƒ Process End State
improvements Vision
ƒ Business
innovation

18 Months
Applications

ƒ Legacy
retirement 12 Month
ƒ Customizations

6 Month

Enterprise Architecture Infrastructure

ƒ SOA Enablement ƒ Hardware
ƒ NW Component Upgrades ƒ Storage
ƒ Etc.
41
Summary: Scope, Timeline, and Costs

• mySAP ERP requires serious and careful planning

regarding scope
• Don’t bite off too much at once – plan for
subsequent phases
• Plan for changes to your organization (people, process,
and technology)
• Understand what is required as part of the upgrade and
activities that can occur post-upgrade project

42
 What We’ll Cover …
Create Finalize Scope Obtain
Conduct Project
Upgrade? the Value And Project
Assessment
Proposition Timeline Approval

• Is the upgrade really warranted?

• Cutting through confusion to determine hard
and fast ROI
• Setting realistic scope, timeline, and cost estimates
• There are no shortcuts to gaining project approval!
• Wrap-up

43
Socializing the Project Recommendations

• Once the facts have been compiled, socialize the

recommendation to the sponsor’s key business/IT leads
to ensure buy-in
ΠBusiness benefits
ΠProject scope and approach
ΠProject timeline, resources, and cost
ΠUpgrade options
ΠFinal recommendation and organizational impact

44
Gaining Organizational Buy-In for the Upgrade Project
Please approve my project!
Business
Case
Board of Directors
Sarbanes
Audit Committee Oxley
Strategy and
Cost Steering Committee
Program Management Office Projects,
Budget,
Resources

Funding, Business
Initiatives IT
Units TCO

Resources
Support Organizations

45
Why is it Difficult to Obtain Approval for the Upgrade Project?

• Costs • Business case

ΠSoftware licensing, additional ΠWhat are the benefit realizations?
hardware to support mySAP ERP, ΠWhat value is mySAP
resources, consulting fees ERP providing?
• Timing of the project • Resources
ΠBusiness cycle (seasonality), ΠWho is doing the work?
budget cycle, competing projects, ΠWhat about backfilling
Sarbanes-Oxley, and audit resources?
restrictions
ΠHow many consultants are we
• Sponsorship going to need?
ΠWho owns this project (IT?
Business?)
ΠWho is fighting for the new
features, functionality, and
architectural capabilities of
mySAP ERP?
46
What We’ll Cover …

• Is the upgrade really warranted?

• Cutting through confusion to determine hard
and fast ROI
• Setting realistic scope, timeline, and cost estimates
• There are no shortcuts to gaining project approval!
• Wrap-up

47
Resources

• Want to learn more?

ΠA free SAP Experts Sampler CD containing more than 20
relevant articles from BW Expert and SAP Professional Journal
is available at the WIS/SAP Insider booth in the Solutions
Showcase.

48
7 Key Points to Take Home

• Ensure that your organization is ready for the mySAP

ERP upgrade project
• Take the time to address the concerns of the project
sponsors
• Clearly understand and articulate exactly what is in-
scope and out-of-scope for the project
• Take the time to conduct the fact-finding exercise
Æ fully understand what’s possible with SAP today
• Build a project roadmap to manage the functionality
delivered with the project and what phases will follow
• Get educated on the capabilities and functionality in
mySAP ERP and NetWeaver
• Document and track to the high-level benefits
49
Your Turn!

Questions?

How to contact me:

Dale Young
dale.young@capgemini.com
50