GDC SLO Sap World Tour KL Final.ppt %5BRead-Only%5D %5BCompatibility Mode%5D

System Landscape OptimizationServices (SLO)Reflecting changed business requirements in SAP

SLO, Field Services & SupportOlaf Haisch16th of July 2009

1. Typical Business Challenges2. The SLO Service Portfolio

2.1. Consolidate & Unite2.2. Buy & Sell2.3. Harmonize & Unify2.4. Convert Currencies

3. Our Delivery Model4. The Benefits

Agenda

ReduceIT cost

Adaptingto changes

Ensurefast and safe

realization

Plan

Re-model

Typical Business challenges

Increaseagility

Sell & buy

Consolidate& unitesystem

landscapes

Value driver … and typical business scenarios

Build Run

Harmonize &unify data

DataAccuracy

CurrencyChanges

Simplify

System Consolidation

Reducing IT TCO / TCI

Centralization or De-Centralization

Internal re-organizations (divisional or functional)

Legal changes

Mergers & Acquisitions

Divestitors

Shared Service Center HR

Optimise system efficiency

Currency Conversion

Align Acquired Company to Group Standards

Align Controlling Standards (IFRS)

Financial Data Harmonization

Operations & Logistic Data Harmonization

System Landscape Optimization- How to reflect customer challenges to IT

© SAP 2008 / Page 4

SLOPortfolio

Governance & Legal changes

Organisational & Businesschanges

TCO & System efficiency

SLO support you to adapt IT due to

Buy & Sell

Consolidate &Unite

Harmonize &Unify

ConvertCurrencies




Agenda

Business scenarios forSystem Landscape Optimization

Adapt your system landscapeThe need to integrate or to restructure companies, or part of companiesconstantly increases. Are you planning to adapt your system landscape tonew or changed business requirements in the near future?

Buy & Sell

Consolidate & unite system landscapesCreating a more flexible and simplified system landscape becomes moreand more important. Are you currently planning to consolidate andharmonize your SAP systems or applications?

Consolidate &Unite

Harmonize business processesProviding accurate data is a crucial factor for a successful business. SAPData Harmonization services enable you to significantly increase the qualityof your company data. Unify and align your financial and controllingprocesses.

Harmonize &Unify

Convert currenciesThe introduction of a new currency - for example US Dollar - is only onereason to convert the local currency within your SAP system. SAP CurrencyConversion services help you to realize your individual requirements.

ConvertCurrencies

© SAP 2008 / Page 6

SLO Consolidation andMigration services

Client Transfer

System/Client Merge

Business Process Migration

HR System Merge & Split

Business ScenarioConsolidate & Unite

© SAP 2008 / Page 7

System A System B

Client 010

Client 020

Client 030

System A

System B

System C

Client 030Client 020

Client 010

Client 040

Reduce number of systemsRedesign system landscapeImplement new Business Templates

Set-up a multi client environment viaClient Transfer

Keep your system landscape current in the face ofmergers, acquisitions, and divestituresReduce the complexity of your system landscape asyou restructure your business organization and alignyour business processesMinimize your total cost of ownership

Business Challenges

Transfer one or more clients from one or moresource systems to a multiclient systemReduce maintenance costs and costs for upgrade orsupport packagesRe-centralize, consolidate servers and applicationsPrepare target environment - reduce size of systemlandscape and simplify

Reasons for a Client Transfer

© SAP 2008 / Page 8

System A System B

Client 010

Client 020

Client 030

Target SystemSource System

3

Client Transfer

Performance issuesApplication specific problems

Client transfer requiresseveral test runs prior toproductive conversion

Analysis of cross-clientcustomizingAnalysis of R/3 RepositoryAnalysis of user exits

Analysis by SAP SystemLandscape Optimization

RepositoryCross client customizingUser existsSupport packages

System harmonizationbased on the results ofthe system analysis

System alignment

2

Analysis1. Repository2. Cross ClientCustomizing

?

1

200 100100 200200

100

Three step set up of a multi client system

© SAP 2008 / Page 9

100

Set-up a single client environment viaSystem / Client Merge

Leverage data knowledge and data consistencyEnsure high data qualityEnable clear and transparent reportingLower administration costCombination of upgrade and system consolidation inone project

Benefits

Reduce and simplify your system landscapeFacilitate maintenanceDownsize and recentralize existing structureIntegrate companies currently running on a separateinstanceHarmonize business structures and processes

Reasons for a Client/System Merge

© SAP 2008 / Page 10

System A

System B

System C

Client 030

Client 020

Client 010

Client 040

Target System

Source Systems

SystemCopy

P 04

System / Client Merge

SAP R/3 3.1HSource Systems

SAP R/3 4.7ext. 2.0

Target System

Data transfer from sourcesystems into target systemStep 5

P 02

P 01

P 08P 03

P 06

P 05

P 07

P 00

P 09

Existing System Landscape

© SAP 2008 / Page 11

Activities after transferStep 6

Preparation of sourcesystemStep 4

Preparation of targetsystem – incl. upgradeStep 3

Create system copy ofP06 as target system P21Step 2

Analysis of the existingsystem landscapeStep 1

P21






Client 100

MarubeniSystem / Client Merge

System / Client Merge

Key ChallengesConsolidate 10 SAP R/3 systems into asingle target systemUpgrade from release 3.1H to 4.7 ext. 2.0Transfer existing company code –distributed across 9 systems into asingle system/serverMerge purchasing organization (distributedacross 4 systems, used in SD and MMoperations) into a single client/system

HighlightsConsolidation and migration in a singleprojectSource and target systems running ondifferent releases of SAP R/3 softwareSuccessful data transfer of Marubeni-specific development into the new targetsystemHarmonization of master and transactiondata

Project ObjectivesConsolidation of multiple systemsSystem upgradeReduction in IT infrastructure and total costof ownership

General FiguresProductive conversion during “GoldenWeek”Number of servers reduced – significantdecrease of hardware

© SAP 2008 / Page 12

Business Scenarios forSystem Landscape Optimization


Buy & Sell

Consolidate & unite system landscapesCreating a more flexible and simplified system landscapes becomes moreand more important. Are you currently planning to consolidate andharmonize your SAP systems or applications?

Consolidate &Unite


Harmonize &Unify


ConvertCurrencies

© SAP 2008 / Page 13

Business ScenarioBuy & Sell

SLO organizational structurechanges

Company code delete

Company code carve out

Plant reallocation

Controlling area merge/separationPr

ior t

o M

igra

tion

System 1

0800

0800

0810

0800

System 20605

605

Afte

r Mig

ratio

n

0800

0801

0801

0800

0800

0810

0810

0810

Incl. FI, CO, FM reallocation and rebuild

0820

0820

0820

Restructuring business organizationsMergers, acquisitions and divestituresAlignment with best-of-industry business processesReduction of IT complexity

Harmonization of accounting & naming rulesCC transfer + Split of CC & FM areaCC transfer + Split of Controlling& FM Area (not Company Code)CC transfer + Split of Company Code

© SAP 2008 / Page 14

Both systems nowcontain only relevant

controlling areas

Both systems nowcontain only relevant

controlling areas

© SAP 2008 / Page 15

Restructure your System Landscape viaCompany Code Deletion

Leverage data knowledge and data consistencyEnsure high data qualityEnable clear and transparent reportingLower administration cost

Benefits

Divestiture of a legally independent company orparts of a company:

System copy of sold or separated part of thecompany to new hardwareAdjustment of data structure

System cleanup:Company codes are no longer in useNew storage capacity available

Reasons for a Company Code Deletion

Controllingarea0002

PlantB002

Companycode002

System CopySource System

Controllingarea0001

Companycode001

PlantA001

Controllingarea0002

PlantB002

Companycode002

Controllingarea0001

Companycode001

PlantA001

Original businessunit

Original businessunit

Sold businessunit

Sold businessunit

Company A Company B

Deletion of irrelevantcontrolling areas and

company codes

Deletion of irrelevantcontrolling areas and

company codes

Rieter – realize buy and sell scenario viaCompany Code Deletion

Company carve out via Company Code Deletion

Project ObjectivesSale and divestiture of the division „TextileSystems“Company code carve outSafeguard all historical dataCreate target system containing all relevantcompany codes for the divested division,ready for handover to the buyer

HighlightsFull-scale system analysis to determine theexact percentage of all relevant transactiondataFinal deletion performed withoutinterrupting day-to-day business

Key ChallengesIdentify all relevant organizationalstructures (e.g. company codes, salesorganizations, plants, business units)during the first test conversionDeletion of all sensible data from the targetsystem sold to the acquiring companyDeletion of all data in the source systemonly relevant to the divested subsidiary

Key FiguresProject completed within 3 months2 full test cycles1.3 terabyte systemDeletion of 11 company codes

© SAP 2008 / Page 16

Rieter performs SLO serviceCompany Code Deletion

P 12P 12

Source System Target System

CCs to bedeleted

CCs tobe kept

CC 6000

CC 6100

CC 0001

CC 0020

CC 0040

CC 0050

CC 3900CC 4000

CC 8000

CC 2000

CC 4200

CC 7000

CC 5000CC 6000

CC 6100

CC 0001

CC 0020

CC 0040

CC 0050

CC 3900

CC 4000

CC 8000

CC 2000

CC 4200

CC 7000

CC 5000

© SAP 2008 / Page 17

Create complete system copyStep 1

Deletion of all unneededCCs in target systemStep 2

Deletion of all CCs related tothe divested divisionStep 3

Both systems now containonly the relevant CCsTarget system is ready forhandover to the buyer

Step 4



Buy & Sell


Consolidate &Unite


Harmonize &Unify


ConvertCurrencies

© SAP 2008 / Page 18

Business ScenarioHarmonize & Unify

SLO data harmonizationChart of Accounts Conversion

Customer and Vendor Conversion

Fiscal Year Conversion

Material Number Conversion

Controlling Area Rename/Merge

Data HarmonizationIntroduce unified accounting standards and roll-out global template forcost accountingUnify and standardize financial and controlling processesIncrease reporting reliabilityAlign Business Information Warehouse data

© SAP 2009 / Page 19

Chart of Accounts Conversion

© SAP 2008 / Page 20

Consolidate financial reportingEase global reportingHeighten transparancyLower administrative costs

Benefits

Introduction of a global chart of accounts due tocountry specific requirements and regulationsIntroduction of International Financial ReportingStandards (IFRS)Business driven change due to corporationrestructuringIntroduction of a unified chart of accounts

Reasons for a Chart of AccountsConversion

Prior to chart ofaccounts

conversion

After successfulchart of accounts

conversion

ControllingArea

CompanyCode

Chart ofAccounts

ControllingArea

CompanyCode

Chart ofAccounts

Handan Iron and Steel GroupChart of Accounts Conversion

Chart of Accounts ConversionProject Objectives

Introduction of chart of accounts for newChinese Accounting Standard (China GAAP)Fully align all accounts within ERP and BWsystemSubstantial harmonization of customizing

Activities/scopeProject planningSAP(SLO) - delivery of the system analysisand the technical conversionCustomer – mapping, customizing,adaptations and test runsCutover planning and go-live

Key ChallengesIS-MILL solution especially challengingbecause production must not be interruptedCommitment item conversion is included inthe projectConversion affected not only ERP, but alsoBusiness Warehouse conversion.

Key FiguresOverall project duration of 3 months3 test cycles – last one exclusively fordowntime minimization purposesProductive conversion within one weekendConversion covered mapping of1046 accountsDatabase size of 600 GB

© SAP 2008 / Page 21

© SAP 2008 / Page 22

Handan Iron and Steel GroupChart of Accounts Conversion

1000

2000

1000

INT

ControllingArea

CompanyCode

Chart ofAccounts

INT

INT

AccountNumber

………

11010000

11010001

11010002

AccountNumber

11010000Merging

accounts

Renaming

accounts

4000000 50000000

4001000 50010000

INT

INT

INT

Chart ofAccounts

Prior to conversion After conversion



Buy & Sell


Consolidate &Unite


Harmonize &Unify


ConvertCurrencies

© SAP 2008 / Page 23

Business ScenarioConvert Currencies

Introduction of a new currency due to:changed legal requirementsIntroduction of a parallel currencyChanging the number of decimal points

ERP

1st Local Currency(Functional Currency) Group Currency

Copy

Convert

Controlling Currency

FI-Solution

CO-Solution

$ € €

$

CO-Area

CO-PA

PC

Conversion of…HCM

BI

SLO Currency Conversion

Local Currency Conversion

Group Currency Conversion

Parallel Currency Introduction

Controlling Currency Conv.

Currency Decimal Conversion

© SAP 2008 / Page 24

Other SAP

Currency Conversion

Key ChallengesBoth - group currency and profit centercurrency - cannot be changed from RMB toUSD simply by standard customizing dueto system constraints.The group currency is able to change withthe system strategy in system migration,but not for system upgrade with historicaldata

HighlightsSLO conversion tool, as a special solution,to change group currency and profit centercurrency and convert all affected historicaltransaction data from RMB to USD.Combination with upgradeAll historical data could be included intothe conversion

Project ObjectivesUSD is decided to be the future profitcenter and group currency and replacesthe RMB in the SAP systemTransaction data in controlling area, FIspecial ledger and material ledger are allset up with group currency RMB and needto be considered

General FiguresLarge database (about 1,4 TB)2 full test cycles and Go Live

Lenovo realizes aCurrency Conversion

© SAP 2008 / Page 25

Individual Customer Solution:Accelerated by tool-based method

Preconfigured SLO modules guarantee a highly-standardized andflexible solution approach for customer-specific needs

SAP SLO offers more than 50 “technical” services

SAP Systems & Clients

Organizational Units

Master Data

Currencies

ArchivesRepositoryObjects

tailoredcombination

SLO Construction Kit:Tool-based method

FAST – SAFE – EFFECTIVEImplementation of business-driven

changes or harmonizationrequirements

SLO Service PortfolioHow to come to a Customer specific solution?

System Landscape Optimizationproject excellence and successes

© SAP 2008 / FS SLO Hub / Kick-off 2008 / MW / Page 27

… and many more




Agenda

The SAP SLO team

© SAP 2008 / Page 29

The SAP SLO team consists of experts for SLO issuesfrom all areas of SAP development and consulting

SLO has its own development groupand a specialized SLO consulting team

SAP System Landscape Optimization

SLOConsulting

SLODevelopment

Best practices, numerous successful projects,and longstanding experience The SLO service portfoliodelivered by expert teams uniting development andconsultancy skills

Productivemigration /conversion on aweekend

SLO Standardized Project Approach

© SAP Deutschland AG & Co.KG 2008 / Wolf Konrad Kothe / Stefan Hoeltl / FamilyMart / Page 30

Set up scope

Set up project plan

Kick Off

IVI

Technical analysis

Technicalspecification

II

Conflict solution

III

Application specificconcept

II. TestConversion/Migration

III. Test Conversion/Migration

I. TestConversion/Migration

TechnicalRealization/

QualityCycles

GoLive /Post GoLive

Support

Analysis &BlueprintProject preparations

Post Go-LiveSupport

Customer specific 1 – 2 Months 2 – 4 Months 1 – 2 Weeks

* Timeline based on completed SLO projects till date

© SAP 2008 / Page 31

SLO Delivery mixGD joined delivery

SLO Hub Resourcescore resourcesdelivery of the whole SLO Portfolioregardless of the maturity level

3rd Party / Special ExpertisePartners

filling the lack of expertise(e.g. IS-U)delivery of specific services (BI)

SLO Customer Project

AGS-SLO Standard Deliveryutilized for a defined set of serviceshighly standardized services only

Global Delivery (GD)utilized for a defined set of servicesoffering of complementary services




Agenda

© SAP Deutschland AG & Co.KG 2008 / Wolf Konrad Kothe / Stefan Hoeltl / FamilyMart / Page 33

=

SLO Standardized Project Approach- project benefits -

1.

2.

3.

4.

5.

6.

More than 15 years experience inreorganization projects

Experience of more than 2300reorganization projects

Flexible adaptation to specialrequirements

Extensive knowledgebase; one-stop shopfor all relevant services

High quality of tried-and-tested solutions

data consistency retained by changing alldata (including historical data)

Six reasons for choosingSAP SLO consulting

1.

2.

3.

4.

5.

6.

Project on time and within budget

Fast and cost-effective implementation ofchanges

High quality of tried-and-tested solutions

To be sure to have a SAP supportedsolution

To minimize the downtime of theproductive system

Post Go-live support from SAP

Your project success / benefit

High degree of standardization: fast, safe, flexible and cost-efficient

SAP System Landscape Optimization- business benefits -

The Challenge

Adapting systemlandscape to changedrequirements

Data HarmonizationInternal reorganizationSystem mergeSplit of organizationalunits

Tailor landscape tobusiness

The Solution

System LandscapeOptimizationTechnology-based servicesStandardized projectapproach (templates,plans)Project guidanceFull service packages(from planning toimplementation)Long-standing projectexperienceExtensive knowledge basedelivered via contentpackagesConfigurable, extendablesolutions for newrequirements

The Benefits

Reduce operating costsReduce IT complexityAlign with best-of-industrybusiness processes and/orIT strategiesLeverage SAP and partnerexpertiseImprove efficiency of ITsystemsCentralize distributedsystemsApply a proven andstandardized technology




The Solution

System LandscapeOptimizationTechnology-based servicesStandardized projectapproach (templates,plans)Project guidanceFull service packages(from planning toimplementation)Long-standing projectexperienceExtensive knowledge basedelivered via contentpackagesConfigurable, extendablesolutions for newrequirements




The Solution




© SAP 2009 / Page 34

The System LandscapeOptimization group offersin-depth knowledge, experttools, and the experience,not only to perform atechnical merge, but alsoto guarantee processcontinuity after go-live asuccessful data transfer.”

Thomas Wind, Project Manager,Heidelberger DruckmaschinenAG

Unique, technology-based and method-based approach

Full service offering from strategy to implementation

Benefits from SLO services I

High degree of standardization: fast, safe, flexible andcost-efficientHigh quality of tried-and-tested solutionsFlexible adaptation to special requirements

Extensive knowledgebase; one-stop shop for allrelevant services

Experience

More than 15 years experience in reorganization projectsMore than 2300 successfully completed projects world-wideOver 7500 successful local currency conversionsProjects are completed on time and within budget

© SAP 2009 / Page 35

The combination of SAPapplications and technicalknowledge, as well as theextensive experience ofexperts at armasuisse andthe System LandscapeOptimization group wereessential for the success ofthe project.”

Max Bär, Leader of the DataMigration Subproject,armasuisse

Technical implementation with special features

Benefits from SLO services II

Easy transfer of all data and documents into targetstructure

Particularly important for long-term projects or ordersOperation of source system not necessary since alldata are available in target structure after systemmerge

High performance conversion

NO key dateTechnical conversion not bound to key date

© SAP 2009 / Page 36

Further Information

SAP Service Marketplacehttp://service.sap.com/slo

Pricing and conditionsContact your local SAP Subsidiary

General enquiriesSend an e-mail to [email protected]

http://service.sap.com/slo

mailto:[email protected]

Thank you!

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party web

companies

simplified

slo service

unifyproviding

profit center

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