SAP implementation at Global Retail

Company






KUMAR GAURISH
13810043

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Table of Contents

1. Introduction .................................................................................................................................. 2
1.1. Project Name .......................................................................................................................... 2
1.2. Project Team ........................................................................................................................... 2
1.3. Project Description ................................................................................................................. 2

2. Background and problem definition .............................................................................................. 3

3. Measurable Organisational Value (MOV): .................................................................................... 3

4. Key benefits realised ...................................................................................................................... 5

5. Quantifying MOV ........................................................................................................................... 5

6. Real Challenges of SAP Implementations ...................................................................................... 6

7. Framework for Implementation .................................................................................................... 7

8. Value Realization .......................................................................................................................... 11

9. Recommendations ........................................................................................................................ 12


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1. Introduction

1.1. Project Name: SAP implementation at Global Retail Company


1.2. Project Team: The team consists of basically

1. Steering committee: The members of this particular committee include Project
Director, Executive Sponsor, Customer representative and Customer
Decision maker.
2. Project Manager
3. Consultants
4. Technical members.
5. Change managers
6. Operations team which include people like inventory manager
7. Financial Consultant

1.3. Project Description:

The client is the US branch of a global Retail company. As a result of organic and
inorganic growth over the years, the business system landscape became
fragmented and inefficient. In order to position the company for future growth, the
client needed to integrate and standardize their business processes and systems.











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2. Background and problem definition

The client is truly global company with operations in several countries across
Europe, North America, and Asia. The US branch of the company serves the North
American marketplace and includes both headquarters and manufacturing
operations. The company recognized the strategic advantage that an integrated SAP
platform could bring for its North America operations. The company was also aware
of the many challenges which stood in the way of their goal of continued growth and
efficient operations:

Many financial and operational processes were highly manual
Compliance requirements demanded solid integration
An integrated solution was required to manage the increasingly complex
organization
The company needed a better platform to improve collaboration between the
growing number of business units to take advantage of future opportunities
The legacy applications were becoming outdated

One of the clients main objectives for the project was to establish a scalable, flexible
platform which would address these challenges and allow them to quickly integrate
planned acquisitions and support future business expansion.



3. Measurable Organisational Value (MOV):

Real-time access to higher quality information
More structured data forming a basis for informed strategic and operational
decisions
A consolidated, single view of the business
More efficient working practices, thanks to standardized, integrated business
processes
Ability to manage the growing complexity of purchasing processes
Improved inventory management
Better coordination of work across multiple locations
Comprehensive business insight and analysis, supporting faster decision-
making and tighter control
Support for significant business growth with seamless, quick and easy
integration of newly
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Business Benefits:
There are some benefits which an SAP implementation should always bring irrespective
of the customer's industry.

1. Reduced purchasing costs due to:

a. Ability to view entire purchasing history with suppliers and negotiate future
discounts

b. Channelling all spend through preferred vendors, thus increasing contract
compliance to leverage discounts

c. Elimination of maverick or non-compliant requisitioning amongst the user
base

d. Greatly reduced procurement team intervention in the purchase order
creation function.

e. Improved productivity through the utilisation of simple and user-friendly
screens built on internet best-practise

2. Instil purchasing process compliance by deploying a small set of
requisitioning processes applicable to all types of spend

3. Reduce maverick buying by having a centralised requisitioning system
with built in controls and an efficient but all-encompassing approval pro


4. Process efficiency without losing the necessary control due to:

a. Deploying best practise requisitioning, approval, purchase order creation
and
output processes which have been tried and tested at various customers
for nearly 10 years.

b. A fully integrated and auditable approval process, which allows all
requisitions to be approved by the necessary people in the quickest
possible time

5. A high user acceptance as a result of:

a. Easy to use screens and logical processes.

b. Reduced transactional times.
c. Full transparency of errors and warnings when needed.

d. Planning and carrying out the necessary change management and
training tasks.

6. Complete audit trail is available for any and all transactions

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4. Key benefits realised

Implement pan-European system processes to enforce purchasing
compliance.

Leverage future price discounts by being able to track purchasing spend.

Reduce training costs and improve user acceptance through the
implementation of a 'Buying Channel Framework'.

Onboard all vendors through global and local catalogues and contracts.

Minimise disruption to the business and enable a smooth transition



5. Quantifying MOV

The table below shows examples of the quantifiable benefits SAP can realise :



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6. Real Challenges of SAP Implementations

How to structure an SAP technical support organization
How to encourage apples-to-apples SAP sizing exercises, and then evaluate
each vendors solution approach on a level playing field
How to determine realistic high-availability and performance requirements
How to plan for and develop an SAP Data Center
What to include in an SAP Operations Manual
How to plan for and execute both functional and load/stress tests
How to really leverage your SAP system landscape for training and testing
What training is really required across user and technical boundaries, and
when it should be delivered
What role the help desk and SAP Operations teams must be both staffed for
and prepared to play
The infrastructure or basis tasks that need to be addressed, and when, to actu-
ally make it to Go-Live
How to build buy in with the business folksthe owners and end users of
the system.

















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7. Framework for Implementation




Project Definition and Description

Project type

Naming, roles, language

Project standards (Status, keywords, documentation types)

Timeframe



Define System Landscape

Development

Quality Assurance

Production



Define Business Blueprint via Business Process Repository

Customer Business Process requirements, analysis, documentation and
management /Scoping

Visualization of Standard Business Process by scenario description, product
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documentation, demos, and transactions.

Project-specific adaptation, for example, new Processes, documentation at
each level (Requirements, print outs, reports, concepts).

Generation of Blueprints.



Project Issue Management, Status Management



SAP Feasibility Check






Configuration

Configuration guides for Standard Business Scenarios

Configuration support per scoped structure element, for example, product
documentation, IMG, non-ABAP configuration, BC sets, and CATTs

Project documentation, for example, customizing, modification,
enhancements

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Customizing Synchronization

Testing

Define and maintain test cases, test catalogue

Organize and perform testing

Manage problems in Service Desk




Ensures that Customizing of certain objects is in-sync across systems

Reuses Customizing (e.g. of SAP R/3) in other systems
(e.g. SAP CRM)

Avoids redundant Customizing activities in a solution landscape


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Train End Users for SAP ERP 2004

Web based end user training

5 SAP Tutor (recorder) licenses


Deliver SAP GoingLive Check


Handover to Support Organization
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8. Value Realization

After identifying elements of potential ROI, organizations can then continue to look at
elements over time after the implementation to measure actual ROI. Calculate ROI using
this simple equation:

ROI = [(Payback - Investment)/Investment)]*100

When determining payback, be sure to consider all business processes that are
impacted by the new SAP system. Look at all time savings, cost savings, and increased
revenues that can be attributed to the new system. Similarly, when calculating
investment, consider all costs detailed in this paper, including acquisition, training,
Implementation, maintenance and so on.










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9. Recommendations

Almost every company in the Forbes Global 2000and many near misseshas
introduced enterprise resource planning (ERP) systems in-house. To be sure, there's a
lot more than just SAP ERP being implemented out there. Oracle and Microsoft have
robust ERP offerings, as do several midsize and smaller niche players. Thus, most
experts speak of implementing ERP as being less about "changing the game" and more
about simply leveling the playing field.
ERP as a broad business solution is no longer perceived as innovative. Yes, the
opportunity exists for innovative business processes and practices to be introduced, but
implementing ERP is generally perceived as a necessary component of doing business
and less of a strategic differentiator than 10 or 15 years ago. Fortunately (for SAP and
tens of thousands of customers around the globe) the same can't be said of the robust
supply chain, product lifecycle, and customer relationship management business
applications available todayapplications that still hold the promise of changing the
game for those firms who introduce and leverage them for competitive advantage.